Congressional Documents

                                     42 408                                 



                                       1997                                  



                          105 th Congress  1st Session                      



                                       F                                    



                            HOUSE OF REPRESENTATIVES                        



                                      Report                                 



                                      105 206                                 



                                                                             



                                                                         





                                                                         









             DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 1998             







                                                                           





                               R E P O R T                               





                                  of the                                 





                       COMMITTEE ON APPROPRIATIONS                       





                              Together with                              





                             DISSENTING VIEWS                            





                         [To accompany H.R. 2266]                        





[Graphic Image Not Available]



   July 25, 1997.--Committed to the Committee of the Whole House on the  

 State of the Union and ordered to be printed                            



                            C O N T E N T S                             

         Bill Totals                                                      1

         Committee Budget Review Process                                  4

            Introduction                                                  4

            Quadrennial Defense Review                                    5

            Rationale for the Committee Bill                              6

         Major Committee Recommendations                                  6

            Addressing High Priority Unfunded Shortfalls                  6

            Ensuring a Quality, Ready Force                               7

            Modernization Programs                                        8

            Reforms/Program Reductions                                    9

            U.S. Forces in Bosnia                                         11

            NATO Expansion                                                12

            Budget Formulation Issues                                     13

            Abuse of Traditional Acquisition and Appropriations Practices 14

            Ship Self-Defense                                             16

            Chemical and Biological Defense Programs                      17

         Committee Recommendations by Major Category                      19

            Active Military Personnel                                     19

            Guard and Reserve                                             19

            Operation and Maintenance                                     19

            Procurement                                                   20

            Research, Development, Test and Evaluation                    20

         Forces to be Supported                                           21

            Department of the Army                                        21

            Department of the Navy                                        21

            Department of the Air Force                                   22

         Special Interest Items                                           23

         Government Performance and Results Act                           23

         Title I. Military Personnel                                      25

            Programs and Activities Funded by Military Personnel Appropria25

            Summary of Military Personnel Recommendations for Fiscal Year 25



   Overall Active End Strength                                             



        26                                                                      



   Overall Selected Reserve End Strength                                   



        26                                                                      



          Adjustments to Military Personnel Account                     



        27                                                                      



   Overview                                                                



        27                                                                      



   Special Pays and Allowances                                             



        27                                                                      



   End Strength Adjustments                                                



        27                                                                      



   Temporary Early Retirement Authority                                    



        27                                                                      



   Foreign Currency                                                        



        27                                                                      



   Contingency Operations Funding                                          



        27                                                                      



   Military Personnel Compensation                                         



        28                                                                      



   Personal Financial Management Training                                  



        28                                                                      



   ``Aim High'' Program                                                    



        28                                                                      



   Full-Time Support Strengths                                             



        28                                                                      



   Military Leave for Reservists                                           



        29                                                                      



          Military Personnel, Army                                      



        29                                                                      



          Military Personnel, Navy                                      



        30                                                                      



          Military Personnel, Marine Corps                              



        30                                                                      



          Military Personnel, Air Force                                 



        30                                                                      



          Reserve Personnel, Army                                       



        31                                                                      



          Reserve Personnel, Navy                                       



        31                                                                      



   Magic Lantern                                                           



        31                                                                      



   Navy Reserve Forces                                                     



        32                                                                      



          Reserve Personnel, Marine Corps                               



        32                                                                      



          Reserve Personnel, Air Force                                  



        32                                                                      



          National Guard Personnel, Army                                



        33                                                                      



          National Guard Personnel, Air Force                           



        33                                                                      



   Title II. Operation and Maintenance                                     



        35                                                                      



          Operation and Maintenance Overview                            



        35                                                                      



   Real Property Maintenance                                               



        38                                                                      



   Flying Hour Shortfall                                                   



        38                                                                      



   Readiness Training                                                      



        38                                                                      



   Depot Maintenance                                                       



        39                                                                      



   Quadrennial Defense Review Reductions                                   



        39                                                                      



   Headquarters and Administrative Costs                                   



        39                                                                      



   Industrial Preparedness                                                 



        39                                                                      



   Contingency Operations Funding                                          



        40                                                                      



   Reprogramming in Operation and Maintenance Accounts                     



        40                                                                      



   Reporting on the Execution of Real Property Maintenance Funding         



        41                                                                      



   Budget Justification and Execution Data                                 



        41                                                                      



   Purchases of Foreign Made Goods                                         



        41                                                                      



   Environmentally Safe Fuel Storage Tanks                                 



        41                                                                      



   Federal Firefighting Pay                                                



        42                                                                      



   Recruiting and Advertising                                              



        42                                                                      



   Classified Programs                                                     



        42                                                                      



          Operation and Maintenance, Army                               



        42                                                                      



   Low Rate Initial Production (LRIP) for Abrams XXI                       



        42                                                                      



   Depot Maintenance                                                       



        43                                                                      



   National Training Center Rotations                                      



        43                                                                      



   Army Logistics Automation                                               



        43                                                                      



   High Risk Automation Systems                                            



        43                                                                      



   Program Recommended                                                     



        43                                                                      



          Operation and Maintenance, Navy                               



        46                                                                      



   CNET Distance Learning                                                  



        46                                                                      



   National Oceanography Partnership Act                                   



        47                                                                      



   Software Program Managers Network                                       



        47                                                                      



   High Risk Automation Systems                                            



        47                                                                      



   Asbestos Eradication                                                    



        47                                                                      



   Electrotechnologies                                                     



        47                                                                      



   Program Recommended                                                     



        47                                                                      



          Operation and Maintenance, Marine Corps                       



        50                                                                      



   Program Recommended                                                     



        50                                                                      



          Operation and Maintenance, Air Force                          



        52                                                                      



   Instrument Routes 102 and 141                                           



        52                                                                      



   Air Force Manufacturing Technology Assistance Pilot Program             



        52                                                                      



   Misawa Antennas                                                         



        52                                                                      



   Children's Association for Maximum Potential                            



        53                                                                      



   REMIS                                                                   



        53                                                                      



   High Risk Automation Systems                                            



        53                                                                      



   Air Force Institute of Technology                                       



        53                                                                      



   Malmstrom Air Force Base                                                



        53                                                                      



   Program Recommended                                                     



        53                                                                      



          Operation and Maintenance, Defense-Wide                       



        56                                                                      



   JCS Exercises                                                           



        56                                                                      



   Special Operations Command                                              



        57                                                                      



   Within-Grade Increases                                                  



        57                                                                      



   Defense Finance and Accounting Service                                  



        57                                                                      



   Defense Human Resources Field Activity                                  



        58                                                                      



   White House Communications Agency                                       



        58                                                                      



   Automated Document Conversion                                           



        58                                                                      



   Improved Cargo Methods and Technologies                                 



        58                                                                      



   DLA DWCF Transfer                                                       



        59                                                                      



   Security Locks                                                          



        59                                                                      



   Federal Energy Management Program                                       



        59                                                                      



   Military Personnel Information System                                   



        59                                                                      



   Environmental Restoration                                               



        59                                                                      



   OSD Commissions and Studies                                             



        60                                                                      



   Travel Reengineering                                                    



        60                                                                      



   High Risk Automation Systems                                            



        60                                                                      



   Quadrennial Defense Review--Defense Agency Reduction                    



        60                                                                      



   QDR Restructuring Reserve                                               



        60                                                                      



   Use of Re-Refined Oil                                                   



        61                                                                      



   Nutrition                                                               



        61                                                                      



   Vint Hill Farms                                                         



        61                                                                      



   Department of Defense Dependents Schools                                



        61                                                                      



   Adjustments                                                             



        61                                                                      



   Family Counseling and Crisis Services                                   



        61                                                                      



   Social Work Fellowship Program                                          



        62                                                                      



   Program Recommended                                                     



        62                                                                      



          Operation and Maintenance, Army Reserve                       



        64                                                                      



   Program Recommended                                                     



        64                                                                      



   Commercial Construction and Material Handling Equipment                 



        66                                                                      





   Reserve Units in Central Florida                                        



        66                                                                      



          Operation and Maintenance, Navy Reserve                       



        66                                                                      



   Program Recommended                                                     



        66                                                                      



   NSIPS                                                                   



        68                                                                      



   Navy Reserve Center in Mansfield, Ohio                                  



        68                                                                      



          Operation and Maintenance, Marine Corps Reserve               



        68                                                                      



   Program Recommended                                                     



        68                                                                      



          Operation and Maintenance, Air Force Reserve                  



        70                                                                      



   Program Recommended                                                     



        70                                                                      



   WC 130 Weather Reconnaissance Mission                                   



        72                                                                      



   March Air Reserve Base                                                  



        72                                                                      



          Operation and Maintenance, Army National Guard                



        73                                                                      



   Program Recommended                                                     



        73                                                                      



   Domestic Chemical/Biological Counter Terrorism Mission Planning         



        75                                                                      



   Software Acquisition and Security Training                              



        76                                                                      



          Operation and Maintenance, Air National Guard                 



        77                                                                      



   Program Recommended                                                     



        77                                                                      



   159th Air National Guard Fighter Group                                  



        79                                                                      



          Overseas Contingency Operations Transfer Fund                 



        79                                                                      



          United States Court of Appeals for the Armed Forces           



        79                                                                      



          Environmental Restoration, Army                               



        79                                                                      



   Rocky Mountain Arsenal                                                  



        79                                                                      



          Environmental Restoration, Navy                               



        80                                                                      



   Naval Air Station Bermuda                                               



        80                                                                      



          Environmental Restoration, Air Force                          



        80                                                                      



          Environmental Restoration, Defense-Wide                       



        80                                                                      



          Environmental Restoration, Formerly Used Defense Sites        



        80                                                                      



    Newmark                                                                



        81                                                                      



          Overseas Humanitarian, Disaster, and Civic Aid                



        81                                                                      



    Humanitarian Demining                                                  



        81                                                                      



          Former Soviet Union Threat Reduction                          



        81                                                                      



          Quality of Life Enhancements, Defense                         



        82                                                                      



   Title III. Procurement                                                  



        83                                                                      



          Estimates and Appropriation Summary                           



        83                                                                      



   Reduced Use of Solvent Adhesives                                        



        85                                                                      



   Alternative Fueled Vehicles                                             



        85                                                                      



   Commander's Tactical Terminal/Joint Tactical Terminal                   



        85                                                                      



   Classified Programs                                                     



        85                                                                      



          Aircraft Procurement, Army                                    



        85                                                                      



   Committee Recommendations                                               



        86                                                                      



   Authorization Changes                                                   



        86                                                                      



   Fixed Wing Aircraft                                                     



        86                                                                      



   Guardrail Common Sensor                                                 



        86                                                                      



   Rotary Wing Aircraft                                                    



        86                                                                      



   UH 60 Blackhawk                                                         



        86                                                                      



   Kiowa Warrior                                                           



        87                                                                      



   EH 60 Quickfix Modifications                                            



        87                                                                      



   ASE Modifications                                                       



        87                                                                      



   Other Support Equipment                                                 



        87                                                                      



   Training Devices                                                        



        87                                                                      



   Common Ground Equipment                                                 



        87                                                                      



   Program Recommended                                                     



        87                                                                      



          Missile Procurement, Army                                     



        89                                                                      



   Committee Recommendations                                               



        89                                                                      



   Authorization Changes                                                   



        89                                                                      



   Other Missiles                                                          



        89                                                                      



   Patriot                                                                 



        89                                                                      



   Hellfire                                                                



        89                                                                      



   MLRS Rocket                                                             



        90                                                                      



   MLRS Launcher Systems                                                   



        90                                                                      



   BAT                                                                     



        90                                                                      



   Modification of Missiles                                                



        90                                                                      



   Patriot Mods                                                            



        90                                                                      



   Program Recommended                                                     



        90                                                                      



          Procurement of Weapons and Tracked Combat Vehicles, Army      



        92                                                                      



   Committee Recommendations                                               



        92                                                                      



   Authorization Changes                                                   



        92                                                                      



   Tracked Combat Vehicles                                                 



        92                                                                      



   Bradley Base Sustainment                                                



        92                                                                      



   Field Artillery Ammunition Support Vehicle                              



        92                                                                      



   Modification of Tracked Combat Vehicles                                 



        92                                                                      



   Carrier Modifications                                                   



        92                                                                      



   Howitzer, 155MM M109A6 (Mod)                                            



        92                                                                      



   Program Recommended                                                     



        92                                                                      



          Procurement of Ammunition, Army                               



        94                                                                      



   Committee Recommendations                                               



        94                                                                      



   Authorization Changes                                                   



        94                                                                      



   Ammunition Shortfalls                                                   



        94                                                                      



   Mortar Ammunition                                                       



        94                                                                      



   120mm Full Range Practice (M931)                                        



        94                                                                      



   Tank Ammunition                                                         



        95                                                                      



   120MM Heat MP T M830A1                                                  



        95                                                                      



   Artillery Ammunition                                                    



        95                                                                      



   105MM DPICM XM915                                                       



        95                                                                      



   Rockets                                                                 



        95                                                                      



   Bunker Defeating Munition                                               



        95                                                                      



   Ammunition Production Base Support                                      



        95                                                                      



   Provision for Industrial Facilities                                     



        95                                                                      



   Program Recommended                                                     



        95                                                                      



          Other Procurement, Army                                       



        97                                                                      



   Committee Recommendations                                               



        97                                                                      



   Authorization Changes                                                   



        97                                                                      



   Tactical and Support Vehicles                                           



        97                                                                      



   Semi-Trailer, Container Transporter                                     



        97                                                                      



   Semi-Trailer, Tank, 5000 Gallon                                         



        97                                                                      



   Semi-Trailer, Tank 7500 Gallon                                          



        98                                                                      



   Family of Medium Tactical Vehicles                                      



        98                                                                      



   Family of Heavy Tactical Vehicles                                       



        98                                                                      



   Armored Security Vehicles                                               



        98                                                                      



   Truck, Tractor, Line Haul                                               



        98                                                                      



   Self-Loading/Off-Loading Trailer                                        



        98                                                                      



   Communications--Satellite Communications                                



        99                                                                      



   Defense Satellite Communications System                                 



        99                                                                      



   Satellite Terminals, EMUT                                               



        99                                                                      



   NAVSTAR Global Positioning System                                       



        99                                                                      



   SCAMP                                                                   



        99                                                                      



   Global Broadcast Service                                                



        99                                                                      



   Communications--Combat Communications                                   



        99                                                                      



   Army Data Distribution System                                           



        99                                                                      



   SINCGARS Family                                                         



        100                                                                     



   Combat Survivor Evader Locator                                          



        100                                                                     



   Electronic Equipment, TIARA                                             



        100                                                                     



   All Source Analysis System                                              



        100                                                                     



   IEW--Ground Base Common Sensors                                         



        100                                                                     



   Electronic Equipment--Electronic Warfare                                



        100                                                                     



   Shortshop                                                               



        100                                                                     



   Sentinel                                                                



        100                                                                     



   Night Vision Devices                                                    



        100                                                                     



   Electronic Equipment--Tactical C2 Systems                               



        101                                                                     



   Maneuver Control System                                                 



        101                                                                     



   Standard Integrated Command Post System                                 



        101                                                                     



   Electronic Equipment--Automation                                        



        101                                                                     



   Automated Data Processing Equipment                                     



        101                                                                     



   Reserve Component Automation System                                     



        101                                                                     



   Electronic Equipment--Test Measurement Equipment                        



        101                                                                     



   Integrated Family of Test Equipment                                     



        101                                                                     



   Maintenance Equipment                                                   



        101                                                                     



   Items Less Than $2.0 Million                                            



        101                                                                     



   Rail Float Containerization Equipment                                   



        102                                                                     



   Railway Car, Flat, 100 Ton                                              



        102                                                                     



   Training Equipment                                                      



        102                                                                     



   SIMNET/Close Combat Tactical Trainer                                    



        102                                                                     



   Tactical Facsimile System                                               



        102                                                                     



   Gun Laying Positioning System                                           



        102                                                                     



   Radio Frequency Technology                                              



        102                                                                     





   Lightweight Laser Designator/Range Finder                               



        102                                                                     



   Combat Synthetic Training Assessment Range                              



        103                                                                     



   Airborne Command and Control System                                     



        103                                                                     



   Avenger Slew to Cue                                                     



        103                                                                     



   Palletized Loading System Enhanced                                      



        103                                                                     



   Program Recommended                                                     



        103                                                                     



          Aircraft Procurement, Navy                                    



        106                                                                     



   Committee Recommendations                                               



        106                                                                     



   Authorization Changes                                                   



        106                                                                     



   Combat Aircraft                                                         



        106                                                                     



   F/A 18E/F Hornet                                                        



        106                                                                     



   Modification of Aircraft                                                



        107                                                                     



   EA 6 Series                                                             



        107                                                                     



   H 1 Series                                                              



        107                                                                     



   P 3 Series                                                              



        107                                                                     



    2 Series                                                               



        107                                                                     



   Common Avionics Changes                                                 



        107                                                                     



   Aircraft Support Equipment and Facilities                               



        107                                                                     



   Common Ground Equipment                                                 



        107                                                                     



   Program Recommended                                                     



        108                                                                     



          Weapons Procurement, Navy                                     



        110                                                                     



   Committee Recommendations                                               



        110                                                                     



   Authorization Changes                                                   



        110                                                                     



   Ballistic Missiles                                                      



        110                                                                     



   Trident Advance Procurement                                             



        110                                                                     



   Other Missiles                                                          



        110                                                                     



   ESSM                                                                    



        110                                                                     



   Standard Missile                                                        



        111                                                                     



   Aerial Targets                                                          



        111                                                                     



   Spares and Repair Parts                                                 



        111                                                                     



   Program Recommended                                                     



        111                                                                     



          Procurement of Ammunition, Navy and Marine Corps              



        113                                                                     



   Committee Recommendations                                               



        113                                                                     



   Authorization Changes                                                   



        113                                                                     



   Ammunition Shortfalls                                                   



        113                                                                     



   Navy Ammunition                                                         



        113                                                                     



   Practice Bombs                                                          



        113                                                                     



   5 Inch/ 54 Gun Ammunition                                               



        113                                                                     



   20MM PGU 28                                                             



        114                                                                     



   Program Recommended                                                     



        114                                                                     



          Shipbuilding and Conversion, Navy                             



        116                                                                     



   Committee Recommendations                                               



        116                                                                     



   Authorization Changes                                                   



        116                                                                     



   Other Warships                                                          



        116                                                                     



   CVN Refueling Overhauls                                                 



        116                                                                     



   CVN Refueling Overhauls--Advance Procurement                            



        117                                                                     



   DDG 51                                                                  



        117                                                                     



   Cruiser Overhauls                                                       



        117                                                                     



   Auxiliaries, Craft, and Prior Year Program Costs                        



        117                                                                     



   LCAC Landing Craft                                                      



        117                                                                     



   ADC(X)                                                                  



        118                                                                     



   Program Recommended                                                     



        118                                                                     



          Other Procurement, Navy                                       



        120                                                                     



   Committee Recommendations                                               



        120                                                                     



   Authorization Changes                                                   



        120                                                                     



   Ships Support Equipment                                                 



        120                                                                     



   LM 2500 Gas Turbine                                                     



        120                                                                     



   Navigation Equipment                                                    



        120                                                                     



   Other Navigation Equipment                                              



        120                                                                     



   Other Shipboard Equipment                                               



        120                                                                     



   Firefighting Equipment                                                  



        120                                                                     



   Pollution Control Equipment                                             



        121                                                                     



   Submarine Batteries                                                     



        121                                                                     



   Strategic Platform Support Equipment                                    



        121                                                                     



   Communications and Electronic Equipment                                 



        121                                                                     



   Radar Support                                                           



        121                                                                     



   Ship Sonars                                                             



        121                                                                     



   AN/SQQ 89 Surface ASW Combat System                                     



        121                                                                     



   SSN Acoustics                                                           



        121                                                                     



   Carrier ASW Module                                                      



        121                                                                     



   Electronic Warfare Equipment                                            



        122                                                                     



   C3 Countermeasures                                                      



        122                                                                     



   Reconnaissance Equipment                                                



        122                                                                     



   Combat Direction Finding Equipment                                      



        122                                                                     



   Battle Group Passive Horizon Extension (BGPHES)                         



        122                                                                     



   Other Ship Electronic Equipment                                         



        122                                                                     



   Navy Tactical Data System                                               



        122                                                                     



   Advanced Tactical Data Link Systems                                     



        122                                                                     



   Aviation Electronic Equipment                                           



        122                                                                     



   Automatic Carrier Landing System                                        



        122                                                                     



   ID Systems                                                              



        122                                                                     



   Other Shore Electronic Equipment                                        



        122                                                                     



   JMCIS Tactical/Mobile                                                   



        122                                                                     


   Submarine Communications                                                



        123                                                                     



   Submarine Communication Equipment                                       



        123                                                                     



   Shore Communications                                                    



        123                                                                     



   NSIPS                                                                   



        123                                                                     



   JEDMICS                                                                 



        123                                                                     



   Aviation Support Equipment                                              



        123                                                                     



   Sonobouys                                                               



        123                                                                     



   AN/SQQ 53 (DIFAR)                                                       



        123                                                                     



   AN/SQQ 62 (DICASS)                                                      



        123                                                                     



   Aircraft Support Equipment                                              



        123                                                                     



   Aviation Life Support                                                   



        123                                                                     



   LAMPS MK III Shipboard Equipment                                        



        123                                                                     



   Ship Missile Systems Equipment                                          



        124                                                                     



   NATO Seasparrow                                                         



        124                                                                     



   Ship Self-Defense System                                                



        124                                                                     



   AEGIS Support Equipment                                                 



        124                                                                     



   Surface Tomahawk Support Equipment                                      



        124                                                                     



   Fleet Ballistic Missile Support Equipment                               



        124                                                                     



   Strategic Missile Systems Equipment                                     



        124                                                                     



   Other Ordnance Support Equipment                                        



        124                                                                     



   Unmanned Seaborne Target                                                



        124                                                                     



   Other Expendable Ordnance                                               



        124                                                                     



   Surface Training Device Modifications                                   



        124                                                                     



   Civil Engineering Support Equipment                                     



        125                                                                     



   Construction and Maintenance Equipment                                  



        125                                                                     



   Amphibious Equipment                                                    



        125                                                                     



   Pollution Control Equipment                                             



        125                                                                     



   Command Support Equipment                                               



        125                                                                     



   Other                                                                   



        125                                                                     



   Spares and Repair Parts                                                 



        125                                                                     



   Program Recommended                                                     



        125                                                                     



          Procurement, Marine Corps                                     



        129                                                                     



   Committee Recommendations                                               



        129                                                                     



   Authorization Changes                                                   



        129                                                                     



   Weapons and Combat Vehicles                                             



        129                                                                     



   Items Under $2 Million (Tracked Vehicles)                               



        129                                                                     



   Other Communications and Electronics Equipment                          



        129                                                                     



   Intelligence Support Equipment                                          



        129                                                                     



   Tactical Vehicles                                                       



        129                                                                     



   High Mobility Multi-Purpose Wheeled Vehicles                            



        129                                                                     



   General Property                                                        



        129                                                                     



   Field Medical Equipment                                                 



        129                                                                     



   Program Recommended                                                     



        130                                                                     



          Aircraft Procurement, Air Force                               



        132                                                                     



   Committee Recommendations                                               



        132                                                                     



   Authorization Changes                                                   



        132                                                                     



   Combat Aircraft                                                         



        132                                                                     



   Advanced Tactical Fighter (F 22) Advance Procurement                    



        132                                                                     



    16                                                                     



        133                                                                     



   Airlift Aircraft                                                        



        133                                                                     



   C 17                                                                    



        133                                                                     



   C 17 Advance Procurement                                                



        133                                                                     



   Civil Air Patrol                                                        



        133                                                                     



   Other Aircraft                                                          



        134                                                                     





    8C                                                                     



        134                                                                     



   Modification of Inservice Aircraft                                      



        134                                                                     



   B 52 Modifications                                                      



        134                                                                     



    15 Modifications                                                       



        134                                                                     



    16 Modifications                                                       



        135                                                                     



   C 130 Modifications                                                     



        135                                                                     



   Aircraft Support Equipment and Facilities                               



        135                                                                     



    15 Post Production Support                                             



        135                                                                     



   War Consumables                                                         



        135                                                                     



   Miscellaneous Production Charges                                        



        135                                                                     



   Program Recommended                                                     



        136                                                                     



          Missile Procurement, Air Force                                



        139                                                                     



   Committee Recommendations                                               



        139                                                                     



   Authorization Changes                                                   



        139                                                                     



   Other Missiles                                                          



        139                                                                     



   AMRAAM                                                                  



        139                                                                     



   Modification of Inservice Missiles                                      



        139                                                                     



   Conventional ALCM                                                       



        139                                                                     



   Space Programs                                                          



        139                                                                     



   Global Positioning System (GPS) Space Segment                           



        139                                                                     



   Medium Launch Vehicles                                                  



        140                                                                     



   Defense Support Program                                                 



        140                                                                     



   Special Programs                                                        



        140                                                                     



   Program Recommended                                                     



        140                                                                     



          Procurement of Ammunition, Air Force                          



        142                                                                     



   Committee Recommendations                                               



        142                                                                     



   Authorization Changes                                                   



        142                                                                     



   Wind Corrected Munitions Dispenser                                      



        142                                                                     



   Cartridges                                                              



        142                                                                     



   20MM PGU 28                                                             



        142                                                                     



   Program Recommended                                                     



        142                                                                     



          Other Procurement, Air Force                                  



        144                                                                     



   Committee Recommendations                                               



        144                                                                     



   Authorization Changes                                                   



        144                                                                     



   Cargo and Utility Vehicles                                              



        144                                                                     



   Items Less than $2 Million                                              



        144                                                                     



   Special Purpose Vehicles                                                



        144                                                                     



   HMMWV, Armored                                                          



        144                                                                     



   Items Less Than $2 Million                                              



        144                                                                     



   Materials Handling Equipment                                            



        145                                                                     



   60K A/C Loader                                                          



        145                                                                     



   Intelligence Programs                                                   



        145                                                                     



   Intelligence Data Handling System                                       



        145                                                                     



   Electronic Programs                                                     



        145                                                                     



   Strategic Command and Control                                           



        145                                                                     



   Special Communications-Electronics Projects                             



        145                                                                     



   C 3 Countermeasures                                                     



        145                                                                     



   Air Force Communications                                                



        145                                                                     



   Base Information Infrastructure                                         



        145                                                                     



   Air Force Satellite Control Network                                     



        146                                                                     



   Organization and Base                                                   



        146                                                                     



   Items Less Than $2 Million                                              



        146                                                                     



   Personnel Safety and Rescue Equipment                                   



        146                                                                     



   Night Vision Goggles                                                    



        146                                                                     



   Electrical Equipment                                                    



        146                                                                     



   Floodlights Set Type NF2D                                               



        146                                                                     



   Base Support Equipment                                                  



        146                                                                     



   Medical/Dental Equipment                                                



        146                                                                     



   Program Recommended                                                     



        146                                                                     



          Procurement, Defense-Wide                                     



        149                                                                     



   Committee Recommendations                                               



        149                                                                     



   Authorization Changes                                                   



        149                                                                     



   Major Equipment                                                         



        149                                                                     



   Automated Document Conversion                                           



        149                                                                     



   Ballistic Missile Defense Organization (BMDO)                           



        149                                                                     



   Special Operations Command                                              



        149                                                                     



   PC, CYCLONE Class                                                       



        149                                                                     



   SOF Intelligence Systems                                                



        149                                                                     



   Chemical and Biological Defense Program                                 



        150                                                                     



   Individual Protection                                                   



        150                                                                     



   Collective Protection                                                   



        150                                                                     



   Program Recommended                                                     



        150                                                                     



          National Guard and Reserve Equipment                          



        152                                                                     



   Committee Recommendations                                               



        152                                                                     



   MELIOS AN/PVS 6                                                         



        152                                                                     



   T 39 Replacement Aircraft                                               



        152                                                                     



   Program Recommended                                                     



        152                                                                     



   Miscellaneous Equipment                                                 



        154                                                                     



          Information Resources Management                              



        154                                                                     



   REMIS                                                                   



        155                                                                     



   JEDMICS                                                                 



        155                                                                     



   Sustaining Base Information Services                                    



        155                                                                     



   Army Logistics Automation                                               



        155                                                                     



   Automated Document Conversion                                           



        155                                                                     



   Military Personnel Information Systems                                  



        156                                                                     



   Software Program Managers Network                                       



        157                                                                     



   High Risk Automation Systems                                            



        157                                                                     



   Title IV. Research, Development, Test and Evaluation                    



        159                                                                     



          Estimates and Appropriation Summary                           



        159                                                                     



   Federally Funded Research and Development Centers (FFRDCs)              



        161                                                                     



   Basic Research                                                          



        161                                                                     



   NATO Research and Development                                           



        162                                                                     



   Tactical Radios                                                         



        162                                                                     



   Special Access Programs                                                 



        162                                                                     



   Combat Survivor Evader Locator (CSEL) Survival Radio                    



        163                                                                     



   Institute for Defense Analyses                                          



        163                                                                     



   Classified Programs                                                     



        163                                                                     



          Research, Development, Test and Evaluation, Army              



        163                                                                     



   Committee Recommendations                                               



        164                                                                     



   Authorization Changes                                                   



        164                                                                     



   Basic Research                                                          



        164                                                                     



   In-House Laboratory Research                                            



        164                                                                     



   Defense Research Sciences                                               



        164                                                                     



   University and Industry Research Centers                                



        164                                                                     



   Army Research Institute for Behavioral and Social Sciences              



        164                                                                     



   Exploratory Development                                                 



        164                                                                     



   Sensors and Electronic Survivability                                    



        164                                                                     



   Aviation Advanced Technology                                            



        165                                                                     



   Combat Vehicle and Automotive Technology                                



        165                                                                     



   Chemical, Smoke and Equipment Defeating Technology                      



        165                                                                     



   Joint Service Small Arms Program                                        



        165                                                                     



   Weapons and Munitions Technology                                        



        165                                                                     



   Electronics and Electronic Devices                                      



        165                                                                     



   Countermine System                                                      



        166                                                                     



   Human Factors Engineering Technology                                    



        166                                                                     



   Environmental Quality Technology                                        



        166                                                                     



   Military Engineering Technology                                         



        166                                                                     



   Medical Technology                                                      



        166                                                                     



   Neurofibromatosis                                                       



        166                                                                     



   Prostate Disease                                                        



        167                                                                     



   Advanced Development                                                    



        167                                                                     



   Medical Advanced Technology                                             



        167                                                                     



   Aviation Advanced Technology                                            



        167                                                                     



   Weapons and Munitions Advanced Technology                               



        168                                                                     



   Missile and Rocket Advanced Technology                                  



        168                                                                     



   Landmine Warfare and Barrier Advanced Technology                        



        169                                                                     



   Line-of-Sight Technology Demonstration                                  



        169                                                                     



   Demonstration and Validation                                            



        169                                                                     



   Army Missile Defense Systems Integration                                



        169                                                                     



   Aviation Advanced Development                                           



        170                                                                     



   Artillery Systems Development                                           



        170                                                                     



   Engineering and Manufacturing Development                               



        170                                                                     



   EW Development                                                          



        170                                                                     



   Family of Heavy Tactical Vehicles                                       



        170                                                                     





   Air Traffic Control                                                     



        170                                                                     



   Light Tactical Wheeled Vehicle                                          



        171                                                                     



   Combat Feeding, Clothing and Equipment                                  



        171                                                                     



   Automatic Test Equipment Development                                    



        171                                                                     



   Combined Arms Tactical Trainer                                          



        171                                                                     



   Landmine Warfare/Barrier Engineering Development                        



        171                                                                     



   Sense and Destroy Armament Missile                                      



        172                                                                     



   RDT&E Management Support                                                



        172                                                                     



   DoD High Energy Laser Test Facility                                     



        172                                                                     



   Materiel Systems Analysis                                               



        172                                                                     



   Support of Operational Testing                                          



        173                                                                     



   Program Wide Activities                                                 



        173                                                                     



   Munitions Standardization, Effectiveness and Safety                     



        173                                                                     



   Environmental Compliance                                                



        173                                                                     



   Aerostat Joint Project Office                                           



        174                                                                     



   Combat Vehicle Improvement Program                                      



        174                                                                     



   Digitization                                                            



        174                                                                     



   Missile/Air Defense Product Improvement Program                         



        175                                                                     



   Joint Tactical Ground System                                            



        175                                                                     



   End Item Industrial Preparedness Activities                             



        175                                                                     



   Force XXI Initiative                                                    



        175                                                                     



   Striker                                                                 



        176                                                                     



   Mortar Fire Control                                                     



        176                                                                     



   Theater Precision Strike Operations                                     



        177                                                                     



   Program Recommended                                                     



        177                                                                     



          Research, Development, Test and Evaluation, Navy              



        181                                                                     



   Committee Recommendations                                               



        181                                                                     



   Authorization Changes                                                   



        181                                                                     



   Basic Research                                                          



        181                                                                     



   In-House Independent Laboratory Research                                



        181                                                                     



   Defense Research Sciences                                               



        181                                                                     



   Exploratory Development                                                 



        181                                                                     



   Surface/Aerospace Surveillance and Weapons Technology                   



        181                                                                     



   Surface Ship Technology                                                 



        182                                                                     



   Aircraft Technology                                                     



        182                                                                     



   Command, Control and Communications Technology                          



        182                                                                     



   Readiness, Training and Environmental Quality Technology                



        182                                                                     



   Materials, Electronics and Computer Technology                          



        182                                                                     



   Electronic Warfare Technology                                           



        183                                                                     



   Undersea Surveillance Weapon Technology                                 



        183                                                                     



   Oceanographic and Atmospheric Technology                                



        183                                                                     



   Undersea Warfare Weaponry Technology                                    



        183                                                                     



   Advanced Development                                                    



        183                                                                     



   Air Systems and Weapons Advanced Technology                             



        183                                                                     



   Precision Strike and Air Defense                                        



        183                                                                     



   Advanced Electronic Warfare Technology                                  



        184                                                                     



   Ship Propulsion System                                                  



        184                                                                     



   Marine Corps Advanced Technology Demonstration                          



        184                                                                     



   Medical Technology                                                      



        184                                                                     



   Manpower, Personnel and Training                                        



        184                                                                     



   Environmental Quality and Logistics                                     



        184                                                                     



   Undersea Warfare Advanced Technology                                    



        185                                                                     



   Shallow Water MCM Demonstrations                                        



        185                                                                     



   Advanced Technology Transition                                          



        185                                                                     



   C3 Advanced Technology                                                  



        185                                                                     



   Demonstration and Validation                                            



        185                                                                     



   Aviation Survivability                                                  



        185                                                                     



   Surface and Shallow Water Mine Countermeasures                          



        185                                                                     



   Advanced Submarine System Development                                   



        185                                                                     



   Advanced Surface Machinery Systems                                      



        186                                                                     



   Conventional Munitions                                                  



        186                                                                     



   Advanced Warhead Development                                            



        186                                                                     



   Cooperative Engagement                                                  



        186                                                                     



   Environmental Protection                                                



        187                                                                     



   Facilities Improvement                                                  



        187                                                                     



   Land Attack Technology                                                  



        187                                                                     



   Joint Strike Fighter                                                    



        187                                                                     



   Engineering and Manufacturing Development                               



        187                                                                     



   Other Helo Development                                                  



        187                                                                     



   Aircrew Systems Development                                             



        188                                                                     



   Electronic Warfare                                                      



        188                                                                     



   Surface Combatant Combat System Engineering                             



        188                                                                     



   Arsenal Ship                                                            



        188                                                                     



   LPD 17 Class Systems Integration                                        



        189                                                                     



   TSSAM                                                                   



        189                                                                     



   VLA Upgrade                                                             



        189                                                                     



   Airborne Mine Countermeasures                                           



        189                                                                     



   SSN 688 and Trident Modernization                                       



        189                                                                     



   Submarine Combat System                                                 



        189                                                                     



   New Design SSN                                                          



        189                                                                     



   SSN 21 Developments                                                     



        189                                                                     



   Ship Contract Design/Live Fire Testing                                  



        190                                                                     



   Navy Tactical Computer Resources                                        



        190                                                                     



   Lightweight Torpedo Development                                         



        190                                                                     



   Ship Self-Defense                                                       



        190                                                                     



   Medical Development                                                     



        190                                                                     



   Distributed Surveillance System                                         



        190                                                                     



   RDT&E Management Support                                                



        191                                                                     



   Target Systems Development                                              



        191                                                                     



   Major T&E Investment                                                    



        191                                                                     



   Technical Information Services                                          



        191                                                                     



   Studies and Analysis Support                                            



        191                                                                     



   Management, Technical and International Support                         



        191                                                                     



   Science and Technology Management                                       



        191                                                                     



   Test and Evaluation Support                                             



        192                                                                     



   Marine Corps Program Wide Support                                       



        192                                                                     



   Operational Systems Development                                         



        192                                                                     



   HARM Improvement                                                        



        192                                                                     



   Aviation Improvements                                                   



        192                                                                     



   Marine Corps Communications Systems                                     



        192                                                                     



   Marine Corps Ground Combat/Support Arms                                 



        192                                                                     



   Defense Meteorological Satellite Program (Space)                        



        192                                                                     



   Manufacturing Technology                                                



        193                                                                     



   Program Recommended                                                     



        193                                                                     



          Research, Development, Test and Evaluation, Air Force         



        197                                                                     



   Committee Recommendations                                               



        197                                                                     



   Authorization Changes                                                   


        197                                                                     



   Air Force and Army Laboratory Restructuring                             



        197                                                                     



   Basic Research                                                          



        197                                                                     



   Defense Research Sciences                                               



        197                                                                     



   Exploratory Development                                                 



        198                                                                     



   Materials                                                               



        198                                                                     



   Aerospace Avionics                                                      



        198                                                                     



   Phillips Lab Exploratory Development                                    



        198                                                                     



   Advanced Technology Development                                         



        198                                                                     



   Advanced Materials for Weapons Systems                                  



        198                                                                     



   Aerospace Propulsion Subsystems Integration                             



        198                                                                     



   Aerospace Structures                                                    



        198                                                                     



   Crew Systems and Personnel Protection Technology                        



        198                                                                     



   Flight Vehicle Technology Integration                                   



        198                                                                     



   Electronic Combat Technology                                            



        199                                                                     



   Space and Missile Rocket Propulsion                                     



        199                                                                     



   Ballistic Missile Technology                                            



        199                                                                     



   Advanced Spacecraft Technology                                          



        199                                                                     



   Conventional Weapons Technology                                         



        199                                                                     



   Advanced Weapons Technology                                             



        199                                                                     



   Airborne Laser                                                          



        199                                                                     



   Demonstration and Validation                                            



        200                                                                     



   Advanced MILSATCOM                                                      



        200                                                                     



   Polar Adjunct                                                           



        200                                                                     



      National Polar-Orbiting Operational Environmental Satellite System   

   (NPOESS)                                                                

        200                                                                     



   Space Based Infrared Architecture--DEM/VAL                              



        200                                                                     



   Warfighter-1                                                            



        201                                                                     



   Evolved Expendable Launch Vehicle Program (EELV)                        



        202                                                                     



   Global Broadcast Service                                                



        202                                                                     



   Engineering and Manufacturing Development                               



        203                                                                     





   Integrated Avionics Planning and Development                            



        203                                                                     



   B 1B                                                                    



        203                                                                     



   Specialized Undergraduate Pilot Training                                



        203                                                                     



    22                                                                     



        203                                                                     





   EW Development                                                          



        203                                                                     



   Munitions Dispenser Development                                         



        203                                                                     



   Joint Direct Attack Munition (JDAM)                                     



        204                                                                     



   Life Support System                                                     



        204                                                                     



   Computer Resource Technology Transition                                 



        204                                                                     



   Joint Air-to-Surface Standoff Missile (JASSM)                           



        205                                                                     



   JSLAM                                                                   



        206                                                                     



   RDT&E Management Support                                                



        206                                                                     



   Theater Simulator Development                                           



        206                                                                     



   Major T&E Investment                                                    



        206                                                                     



   Test and Evaluation Support                                             



        206                                                                     



   Operational Systems Development                                         



        206                                                                     



   Advanced Medium Range Air-to-Air Missile (AMRAAM)                       



        206                                                                     



   Aircraft Engine Component Improvement Program                           



        206                                                                     



   AGM 86C Conventional Air Launched Cruise Missile System                 



        207                                                                     



   Airborne Warning and Control System (AWACS)                             



        207                                                                     



   Joint Surveillance and Target Attack Radar System (JSTARS)              



        207                                                                     



   World-Wide Military Command and Control System                          



        207                                                                     



   Security and Investigative Services                                     



        207                                                                     



   Air Cargo Material Handling                                             



        207                                                                     



   Industrial Preparedness                                                 



        207                                                                     



   Productivity, Reliability, Availability, Maintainability Program (PRAM) 



        208                                                                     



   NATO Joint Stars                                                        



        208                                                                     



   Program Recommended                                                     



        208                                                                     



          Research, Development, Test and Evaluation, Defense-Wide      



        212                                                                     



   Committee Recommendations                                               



        212                                                                     



   Authorization Changes                                                   



        212                                                                     



   Basic Research                                                          



        212                                                                     



   In-House Independent Research                                           



        212                                                                     



   Defense Research Sciences                                               



        212                                                                     



   University Research Sciences                                            



        212                                                                     



   Government and Industry Cosponsorship of University Research            



        213                                                                     



   Chemical and Biological Defense Program                                 



        213                                                                     



   Exploratory Development                                                 



        213                                                                     



   Next Generation Internet                                                



        213                                                                     



   Support Technologies--Applied Research                                  



        214                                                                     



   Lincoln Laboratory Research Program                                     



        214                                                                     



   Computing Systems and Communications Technology                         



        214                                                                     



   Chemical and Biological Defense Program                                 



        214                                                                     



   Tactical Technology                                                     



        215                                                                     



   Integrated Command and Control Technology                               



        215                                                                     



   Materials and Electronics Technology                                    



        215                                                                     



   Defense Special Weapons Agency                                          



        215                                                                     



   Advanced Development                                                    



        215                                                                     



   Explosives Demilitarization Technology                                  



        215                                                                     



   Counterproliferation Support                                            



        215                                                                     



   Automatic Target Recognition                                            



        215                                                                     



   Chemical and Biological Defense Program                                 



        216                                                                     



   Special Technical Support                                               



        216                                                                     



   Verification Technology Demonstration                                   



        216                                                                     



   Nuclear Monitoring Technologies                                         



        216                                                                     



   Seismic Monitoring                                                      



        217                                                                     



   Generic Logistics R&D Technology Demonstrations                         



        217                                                                     



   Strategic Environmental Research Program                                



        217                                                                     



   Advanced Electronics Technologies                                       



        218                                                                     



   Maritime Technology                                                     



        218                                                                     



   Electric Vehicles                                                       



        218                                                                     



   Advanced Concept Technology Demonstrations                              



        218                                                                     



   Commercial Technology Insertion Program                                 



        218                                                                     



   Electronic Commerce Resource Centers                                    



        218                                                                     



   High Performance Computing Modernization Program                        



        218                                                                     



   Sensor and Guidance Technology                                          



        219                                                                     



   Marine Technology                                                       



        219                                                                     



   Land Warfare Technology                                                 



        220                                                                     



   Dual-Use Programs                                                       



        220                                                                     



   Joint Wargaming Simulation Management Office                            



        220                                                                     



   Demonstration and Validation                                            



        220                                                                     



   Physical Security Equipment                                             



        220                                                                     



   Joint Robotics Program                                                  



        220                                                                     



   CALS Initiative                                                         



        220                                                                     



   Ballistic Missile Defense Organization                                  



        220                                                                     



   Theater High Altitude Area Defense (THAAD)                              



        221                                                                     



   Navy Lower Tier                                                         



        221                                                                     



   Navy Upper Tier                                                         



        221                                                                     



      Medium Extended Air Defense System (MEADS) and Boost Phase Intercept 

   (BPI)                                                                   

        222                                                                     



   National Missile Defense                                                



        222                                                                     



   Engineering and Manufacturing Development                               



        222                                                                     



   Chemical and Biological Defense Program                                 



        222                                                                     



   Technical Studies                                                       



        223                                                                     



   Defense Support Activities                                              



        223                                                                     



   Management Headquarters                                                 



        223                                                                     



   Tactical UAVs                                                           



        223                                                                     



   Endurance UAVs                                                          



        223                                                                     



   Airborne Reconnaissance Systems                                         



        224                                                                     



   Special Operations Advanced Technology Development                      



        224                                                                     



   Special Operations Intelligence Systems Development                     



        224                                                                     



   SOF Operational Enhancements                                            



        224                                                                     



   Casting Emission Reduction Program                                      



        224                                                                     



   Program Recommended                                                     



        225                                                                     



          Developmental Test and Evaluation, Defense                    



        228                                                                     



   Committee Recommendations                                               



        228                                                                     



   Program Recommended                                                     



        228                                                                     



          Operational Test and Evaluation, Defense                      



        230                                                                     



   Committee Recommendations                                               



        230                                                                     



   Program Recommended                                                     



        230                                                                     



   Live Fire Testing                                                       



        232                                                                     



   Title V. Revolving and Management Funds                                 



        233                                                                     



          Defense Working Capital Funds                                 



        233                                                                     



   Transition to the Working Capital Funds                                 



        233                                                                     



          Military Commissary Fund, Defense                             



        234                                                                     



          National Defense Sealift Fund                                 



        234                                                                     



   Large Medium Speed Roll-On/Roll-Off (LMSR) Ships                        



        234                                                                     



   Lighterage                                                              



        234                                                                     



   Title VI. Other Department of Defense Programs                          



        235                                                                     



          Defense Health Program                                        



        235                                                                     



   Medical Research                                                        



        235                                                                     



   Breast Cancer                                                           



        236                                                                     



   Gulf War Illness                                                        



        236                                                                     



   TRICARE                                                                 



        237                                                                     



   Bone Marrow Research                                                    



        237                                                                     



   Smoking Cessation                                                       



        237                                                                     



   Diabetes                                                                



        237                                                                     



   Minimally Invasive Research                                             



        237                                                                     



   Air Force Neuroscience                                                  



        238                                                                     



   Central Nervous System Injury Research                                  



        238                                                                     



   Walter Reed Army Institute of Research                                  



        238                                                                     



   Mobile Breast Care Center                                               



        238                                                                     



   Peer Review Panels                                                      



        238                                                                     



          Chemical Agents and Munitions Destruction, Defense            



        239                                                                     



   Committee Recommendations                                               



        239                                                                     



   Program Reductions                                                      



        239                                                                     



   Storage Facilities                                                      



        239                                                                     



   Program Recommended                                                     



        239                                                                     



          Drug Interdiction and Counter-Drug Activities, Defense        



        241                                                                     



   Committee Recommendations                                               



        241                                                                     



   National Guard Counter-Drug Program                                     



        241                                                                     



   LEA Support                                                             



        241                                                                     



   Gulf States Initiative                                                  



        241                                                                     



   HIDTA Crack House Demolition                                            



        242                                                                     



   Civil Air Patrol                                                        



        242                                                                     



   C 26 Aircraft Photo Reconnaissance Upgrades                             



        242                                                                     



   Multijurisdictional Task Force Training                                 



        242                                                                     



   Program Recommended                                                     



        242                                                                     



          Office of the Inspector General                               



        243                                                                     



   Title VII. Related Agencies                                             



        245                                                                     



          National Foreign Intelligence Program                         



        245                                                                     



   Introduction                                                            



        245                                                                     



   Classified Annex                                                        



        245                                                                     



                    Central Intelligence Agency Retirement and          

          Disability System Fund                                        

        245                                                                     



          Intelligence Community Management Account                     



        246                                                                     



   Committee Recommendation                                                



        246                                                                     



          National Security Education Trust Fund                        



        246                                                                     



                    Payment to Kaho'olawe Island Conveyance and         

          Environmental Restoration Fund                                

        246                                                                     



   Title VIII. General Provisions                                          



        247                                                                     



          Definition of Program, Project and Activity                   



        247                                                                     



          Military Personnel Budget Justification                       



        247                                                                     



          Limitation on Headquarters Activities                         



        248                                                                     



          Warranties                                                    



        248                                                                     



          National Imagery and Mapping Agency                           



        248                                                                     


          Navigation and Safety Equipment                               



        249                                                                     



          TACWAR                                                        



        249                                                                     



   House of Representatives Reporting Requirements                         



        251                                                                     



          Changes in Application of Existing Law                        



        251                                                                     



   Appropriations Language                                                 



        251                                                                     



   General Provisions                                                      



        253                                                                     



          Appropriations Not Authorized by Law                          



        256                                                                     



          Transfer of Funds                                             



        257                                                                     



          Rescissions                                                   



        258                                                                     



          Constitutional Authority                                      



        258                                                                     



          Comparison With Budget Resolution                             



        258                                                                     



          Five-Year Projection of Outlays                               



        259                                                                     



          Financial Assistance to State and Local Governments           



        259                                                                     





105 th Congress                                                         



Report                                                                  



                                                                            



                                                                             



HOUSE OF REPRESENTATIVES                                                



1st Session                                                             



105 206                                                                 



                                                                        







       DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 1998                         







                                                                         



   July 25, 1997.--Committed to the Committee of the Whole House on the  

 State of the Union and ordered to be printed                            

                                                                         



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

 the following                                                           

 REPORT                                                                  



 [To accompany H.R. 2266]                                                





      The Committee on Appropriations submits the following report in      

   explanation of the accompanying bill making appropriations for the      

   Department of Defense, and for other purposes, for the fiscal year      

   ending September 30, 1998.                                              

                                        BILL TOTALS                               



      Appropriations for most military functions of the Department of      

   Defense are provided for in the accompanying bill for the fiscal year   

   1998. This bill does not provide appropriations for military            

   construction, military family housing, civil defense, or nuclear        

   warheads, for which requirements are considered in connection with other

   appropriations bills.                                                   

      The President's fiscal year 1998 budget request for activities funded

   in the Department of Defense Appropriations Bill totals $243,923,541,000

   in new budget (obligational) authority. The amounts recommended by the  

   Committee in the accompanying bill total $248,335,303,000 in new budget 

   authority. This is $4,411,762,000 above the budget estimate and         

   $3,868,897,000\1\                                                       

    above the sums made available for the same purposes for fiscal year    

   1997.                                                                   

   \1\This amount includes $1,846,200,000 in emergency supplemental        

   appropriations for the Department of Defense enacted into law in Public 

   Law 105 18.                                                             

      In terms of overall defense spending for fiscal year 1998, when the  

   amounts in this bill are combined with proposed defense funding in other

   annual appropriations bills the Committee's recommendations are         

   approximately equal to the $269 billion in discretionary appropriations 

   for the National Defense Function (050) agreed to by the Congress and   

   the President in April 1997, and subsequently approved by Congress in   

   the Concurrent Resolution on the Budget for Fiscal Years 1998 2002.     

   Despite the proposed increase over the President's request, however, the

   Committee notes that with this recommendation funding in the Department 

   of Defense Appropriations Act for fiscal year 1998 will still fail to   

   keep pace with inflation. Total funding in the bill is 0.6 percent, or  

   $1.5 billion, less than what would be required to freeze funding at the 

   fiscal year 1997 level, adjusted for inflation. As a consequence, if    

   enacted into law, the Committee's recommendations would result in the   

   thirteenth straight year of real, inflation-adjusted reductions in      

   defense spending.                                                       

      The new budget authority enacted for the fiscal year 1997, the       

   President's budget estimates, and amounts recommended by the Committee  

   for fiscal year 1998 appear in summary form in the following table:     



   Offset Folios 018 Insert here                                           







                              COMMITTEE BUDGET REVIEW PROCESS                     



      During its review of the fiscal year 1998 budget, the Subcommittee on

   National Security held a total of 19 hearings during the time period of 

   February 26, 1997 to June 11, 1997. Testimony received by the           

   Subcommittee totaled 1,625 pages of transcript. Approximately half of   

   the hearings were held in open session. Executive or closed sessions    

   were held only when the security classification of the material to be   

   discussed presented no alternative.                                     

                               Introduction                              



      The bill reported by the Committee reflects its obligation to provide

   adequate resources for the nation's defense while attempting to strike a

   balance between the many competing challenges confronting the armed     

   forces of the United States.                                            

      The international environment remains uncertain and potentially      

   explosive. Political instability remains on the rise, as does the threat

   posed by the proliferation of technology, giving even small nations or  

   groups the ability to threaten entire populations. Transnational issues 

   such as ethnic conflicts, terrorism, the international drug trade, and  

   ``information age'' threats continue to loom while more traditional     

   regional threats, such as those posed by North Korea, Iraq, and Iran    

   still must factor prominently in U.S. military planning.                

      Despite having been drawn down to the lowest force levels since the  

   end of World War II, U.S. armed forces remain forward deployed and      

   continue to sustain high rates of operation, a condition exacerbated by 

   the deployment of U.S. forces on non-traditional peacekeeping missions, 

   such as the Bosnia deployment. These frequent deployments have led to a 

   host of problems including hardships for service members and their      

   families, disruptions in standard rotation and training schedules, and  

   the need to finance the substantial costs of such operations.           

      The President's fiscal year 1998 budget proposal for the Department  

   of Defense clearly reflects the tensions inherent in trying to cope with

   such existing, ongoing demands while living within the fiscal           

   constraints dictated by the Administration's overall budget priorities. 

   The combination of self-imposed defense spending limits, the spiraling  

   cost of overseas contingency operations, and the need to maintain forces

   subject to deployment at high rates of readiness, has resulted once     

   again in major funding shortfalls throughout other portions of the      

   defense budget proposed by the President.                               

      The Committee notes that subsequent to transmittal of the President's

   budget, the Military Services identified high priority, unfunded        

   shortfalls for fiscal year 1998 totaling nearly $11 billion. In         

   addition, the Secretary of Defense has called to the Committee's        

   attention nearly $1.5 billion in additional unbudgeted fiscal year 1998 

   requirements involving defense health care, missile defense and         

   chemical/biological defenses, and a sizable shortage in funding for     

   flying hour support and related spare parts. Running the gamut from     

   quality of life programs, medical care, training and operating budgets, 

   and weapons modernization and research programs, the fiscal year 1998   

   defense budget submission demonstrably falls short of meeting both the  

   immediate and long-term requirements of the U.S. armed forces.          

                        Quadrennial Defense Review                       



      These problems are not new, and were the driving force behind        

   Congress' mandate last year for an in-depth review of U.S. military     

   strategy, force structure and deployments, and competing budget         

   priorities. The result was the Quadrennial Defense Review (QDR), which  

   combined with the appointment of a new Secretary of Defense resulted in 

   a fresh look at the many competing and difficult demands confronting    

   U.S. military planners.                                                 

      The Committee is aware of, and in some instances sympathetic to, the 

   criticisms levied at the QDR since its results were announced in May    

   1997. For example, the QDR has been criticized for not being daring     

   enough, particularly with respect to its rejection of force structure   

   cuts well beyond the roughly one-third reduction already levied since   

   the fall of the Berlin Wall. However, the Committee does not find such  

   critiques persuasive in the face of continued regional threats on both  

   the Korean Peninsula and in the Persian Gulf region which, of necessity,

   drive near-term manpower and forward deployment requirements. The       

   Committee does find more substance in the claim that the QDR was a      

   fiscally-constrained exercise. Yet, the announcement of the QDR's       

   findings occurred almost simultaneously with the agreement reached      

   between the President and the Congressional leadership on a balanced    

   budget agreement. This resulted in a long-term budget plan for defense  

   which, from fiscal years 2000 2002, approximates that used as the basis 

   for QDR planning (namely, the President's proposed defense program).    

   While there is merit to the charge that the Secretary of Defense should 

   have conducted solely a strategy and requirements driven review, in     

   hindsight the Secretary's decision that the QDR should reflect current  

   fiscal realities as well as strategic considerations must be viewed as  

   being both pragmatic and practical.                                     

      Nonetheless, despite giving the Department relatively high marks on  

   the broad aspects of its QDR recommendations, the Committee is troubled 

   by the many optimistic assumptions embedded in its recommendations. The 

   Committee is highly skeptical, for example, about whether the military  

   services can successfully draw down planned force structure by an       

   additional 60,000 active duty and 55,000 Reserve personnel, while       

   maintaining forward presence deployments and high OPTEMPO rates, without

   sacrificing the quality of the force and adversely affecting the combat 

   capability of front-line units.                                         

      Of more proximate concern to the Committee in its budgetary role is  

   the degree to which the Department is relying on QDR recommendations    

   which forecast sizable budget savings. These savings are intended to    

   finance the Department's many unfunded outyear requirements, especially 

   those involving the development and eventual production of the new      

   generation of major weapons systems. The Committee's concern has already

   been substantiated by the admission by senior Department of Defense     

   officials that most of the non-personnel savings assumed in the QDR     

   (amounting to approximately $7 8 billion per year by the year 2002) are 

   premised on yet-to-be determined reductions in headquarters, duplicative

   organizations, and improved business practices.                         

      These fiscal concerns are central in that, if not dealt with         

   successfully as the QDR recommendations are implemented, they threaten  

   to undermine one of the core objectives of the QDR itself: Freeing up   

   resources to enable the overdue modernization of many components of the 

   military's existing weaponry and equipment.                             

                     Rationale for the Committee Bill                    



      When considering its fiscal year 1998 recommendations, the Committee 

   was therefore confronted with two overriding concerns. First, the fiscal

   year 1998 budget request (prepared before the QDR), while including many

   noteworthy aspects, still proposed funding levels for many activities   

   and programs which the Secretary of Defense has himself conceded are    

   inadequate, particularly in light of subsequent QDR decisions. Second,  

   the QDR itself has now become the basis for outyear defense planning,   

   and therefore presents both a guide and an opportunity for the Committee

   in making its recommendations for fiscal year 1998.                     

      In fashioning this bill, the Committee took both these factors into  

   account while remaining committed to several key objectives:            

       (1) Ensuring an adequate level of readiness, training and quality of

   life for all service members, both in the Active and Reserve components;

       (2) Providing for a modernization program which both meets today's  

   requirements and the security needs of the future;                      

       (3) Giving special priority to redressing shortfalls in less        

   visible, yet mission-essential programs and equipment; and finally,     

       (4) Cutting, reforming, or eliminating programs or activities with  

   little military utility, or which have not shown demonstrable success or

   have encountered delays in development or production, or are            

   duplicative, excessive or unnecessary.                                  

      In particular, given the Committee's deep concern that many of the   

   QDR's cost-saving assumptions may prove to be highly optimistic, the    

   Committee believes it cannot wait until the fiscal year 1999 budget     

   cycle to begin to implement QDR-sanctioned reforms or cost-cutting. The 

   Committee has made a concerted effort to reduce and in some instances   

   cancel funding for programs or functions which, while meritorious, are  

   simply of lower priority, can be performed at a lower cost, are as      

   ``nice to have'' rather than essential.                                 

      The following section of the report details major Committee          

   recommendations in support of these objectives.                         

                              MAJOR COMMITTEE RECOMMENDATIONS                     



               Addressing High Priority Unfunded Shortfalls              



      The Committee bill fully funds the unbudgeted shortfalls identified  

   by the Secretary of Defense with respect to defense medical programs,   

   National Missile Defense, and Navy and Air Force flying hours. The      

   Committee also recommends increases over the budget request of          

   $107,650,000 for improved chemical and biological defensive             

   technologies, equipment and training. Finally, the Committee also       

   recommends additions over the budget request which address more than    

   one-third (by dollar amount) of the unbudgeted shortfalls identified by 

   the military Service Chiefs. Specific details are cited throughout this 

   report.                                                                 

                     ENSURING A QUALITY, READY FORCE                     



       Personnel Issues: The Committee has recommended fully funding the   

   2.8 percent military pay raise as requested by the Department, and has  

   added $60,000,000 above the budget request for housing and family       

   separation allowances in conformance with House authorization action.   

   For the Reserve components, the Committee recommends restoral of        

   $85,000,000 deleted in the budget request in order to fully fund the    

   Reserves' pay accounts. The Committee has fully funded all child care   

   and family support programs. Finally, the Committee has added           

   $22,900,000 over the budget request for military recruiting, to ensure  

   new accessions are of the highest possible quality.                     

       Military Medical Programs: The Committee has included $274,000,000  

   above the amounts originally requested by the President to fully fund   

   unbudgeted shortfalls in the Defense Health Program. The Committee has  

   added $125,000,000 over the request to continue the Army's highly       

   successful peer-reviewed breast cancer research program as well as the  

   Committee's ongoing efforts to specifically improve breast cancer       

   detection and treatment for both service personnel and dependents.      

       Training/OPTEMPO: The Committee has fully funded the requested      

   amounts for all the Services' training and OPTEMPO accounts and has     

   added $99,013,000 over the request in those areas where the services    

   identified shortfalls.                                                  

       Emergent flying hour/spare parts shortfall: Following submission of 

   the budget, the Secretary of Defense notified the Committee of          

   significant unfunded shortfalls which had emerged in the flying hour and

   associated maintenance programs of the Navy and Air Force. The Committee

   recognizes the immediate impact these shortfalls will have on readiness 

   and therefore recommends an increase of $622,000,000 over the budget    

   request to fully fund Navy and Air Force requirements.                  

       Equipment repair/maintenance: The Committee is distressed over the  

   continuing existence of substantial unfunded backlogs in the Services'  

   depot maintenance accounts and has added $473,300,000 over the budget   

   request to meet the most urgent unfunded equipment maintenance          

   requirements.                                                           

       Real property maintenance: For years the Committee has expressed its

   concern over the growing backlog in real property maintenance accounts  

   used to support the Department's base infrastructure, including barracks

   and mission-essential facilities. The Committee recommends an increase  

   of $924,840,000 over the budget request for real property maintenance,  

   including an additional $360,000,000 for barracks and living facilities,

   continuing the Committee's commitment to revitalizing the Department's  

   base infrastructure.                                                    

       Defense Drug Interdiction: The Committee recommends an increase over

   the budget request of $60,500,000 for Department of Defense counter-drug

   and drug interdiction programs, nearly a 10 percent increase over the   

   Department's proposed fiscal year 1998 levels.                          



       ``Contingency'' operations: The fiscal year 1997 Department of      

   Defense Appropriations Act created a separate appropriations account for

   operation and maintenance costs resulting from major contingency        

   deployments. The Committee recommends similar action this year and      

   consolidates all requested operation and maintenance funding for the    

   Bosnia operation, as well as continued sanctions enforcement around     

   Iraq, into one single account. The Committee has also provided military 

   personnel funding associated with these operations, but has funded these

   requirements in the regular appropriations accounts. In all, the        

   Committee recommends total funding of $2,145,100,000 for these          

   operations ($1,467,500,000 for Bosnia, as requested by the President;   

   and $677,600,000 for Southwest Asia).                                   

                          Modernization Programs                         



      Department of Defense officials freely admit that the most serious   

   shortcoming in the budget proposal is in those accounts providing for   

   procurement and research and development of new equipment and           

   technologies. Based on extensive testimony and a concerted effort to    

   identify critical shortfalls in existing requirements, the Committee is 

   recommending increases to the budget request specifically targeted at   

   meeting existing equipment/capability shortfalls as well as providing   

   for the projected military requirements of the future. In all, the bill 

   recommends increases over the budget request of $4.7 billion for        

   modernization programs, including net increases of over $3.9 billion for

   procurement and $770 million for research and development.              



   The most significant recommendations include:                           



       Missile defense: The Committee recommends total funding of          

   $3,673,659,000, a net increase of $707,115,000, for the Ballistic       

   Missile Defense Organization. The Committee bill includes a total of    

   $978,090,000 ($474,000,000 over the budget request) for national missile

   defense and $2,695,568,000 (a net increase of $233,115,000 over the     

   budget request) for theater systems. The Committee has fully funded the 

   budget request for the joint U.S.-Israel ARROW missile defense program, 

   and has added $41,500,000 over the budget request for the joint         

   U.S.-Israel ``Nautilus'' Tactical High-Energy Laser program. The        

   Committee has also fully funded the Air Force's Airborne Laser program  

   at the requested amount ($157,136,000).                                 

       Ship Self-Defense/Cooperative Engagement: Mindful of the growing    

   threat to U.S. forces posed by both theater ballistic and cruise        

   missiles, the Committee has continued its long-standing emphasis on ship

   self-defense and ``cooperative engagement'' (the sharing of tracking and

   targeting information among many different platforms), and has added    

   $401,800,000 over the budget for these efforts.                         

       Major weapons programs: The Committee recommends fully funding the  

   budget request for: The Army's Comanche helicopter, Crusader            

   next-generation artillery system, and Force XXI/digitization initiatives

   (although the Committee has realigned requested funding to more         

   appropriate accounts); the Navy's production of 20 new F/A 18 E/F       

   fighters, three DDG 51 destroyers, one New Attack Submarine, the        

   overhaul of the U.S.S. Nimitz aircraft carrier, and the procurement of  

   two LMSR sealift ships; and the Air Force's F 15 fighter and F 22       

   fighter programs. The Committee has also funded the requested number of 

   Air Force C 17 transport aircraft; provided an additional nine C 130J   

   variants over the budget request for the Marine Corps, Air Force, and   

   Air National Guard, pursuant to House authorization action; and the     

   budget request for the Joint Strike Fighter.                            

      The Committee has added funds over the request for: Army Blackhawk   

   helicopters (a total of $309,231,000 for 30 helicopters, $126,000,000   

   and 12 helicopters more than requested) and Kiowa Warrior helicopters   

   ($151,700,000); the Navy E 2C airborne early warning aircraft (a total  

   of $304,474,000 for four aircraft, $68,000,000 and one aircraft over the

   budget request); the Marine Corps V 22 tactical transport (a total of   

   $661,307,000 for seven aircraft, $189,300,000 and two aircraft more than

   in the budget request), and advance procurement for the second LPD 17   

   amphibious ship (an increase of $185,000,000 over the budget request);  

   and the Air Force B 2 bomber (a total of $505,286,000, an increase over 

   the budget request of $331,200,000, consistent with House authorization 

   action), and F 16 fighter programs ($82,500,000 and three aircraft more 

   than the budget request).                                               

       Mission-essential shortfalls: The Committee has always emphasized   

   less-glamorous, yet mission-essential items which are critical to the   

   troops in the field. The Committee bill recommends increases over the   

   budget request for such items as: Additional combat communications      

   systems ($32,000,000), night vision devices ($14,400,000), and Bradley  

   fighting vehicle upgrades ($115,000,000) for the Army; new and          

   remanufactured trucks and HMMWV's for the Army and Marine Corps         

   ($156,700,000); Army, Navy and Marine Corps ammunition (a net increase  

   of $258,900,000); modifications and upgrades for EA 6B ($83,000,000) and

   P 3 aircraft ($129,000,000) for the Navy; initial issue gear            

   ($40,700,000) and base telecommunications for the Marine Corps          

   ($42,600,000); and additional aging aircraft and engine reliability     

   enhancements ($33,000,000), force protection measures ($27,800,000) and 

   base information systems protection ($51,000,000) for the Air Force. The

   Committee also provided $31 million for development and procurement of  

   lighterage systems to support joint service strategic sealift           

   operations.                                                             

       Guard and Reserve Components: The Committee bill for fiscal year    

   1998 continues its support of the Guard and Reserve, with a recommended 

   increase of $274,189,000 over the budget request for the personnel and  

   operation and maintenance accounts. With respect to modernization       

   programs, the Committee has fully funded those programs requested in the

   budget for Guard and Reserve equipment ($968,500,000, requested in the  

   active services' accounts) and has provided an additional $1,651,800,000

   throughout the bill for additional aircraft, tactical vehicles, and     

   various miscellaneous equipment and upgrades to existing equipment for  

   the Guard and Reserve components.                                       

                        Reforms/Program Reductions                       



      As mentioned earlier in this report, the Committee has always sought 

   to reduce excess or unnecessary funding when possible. The Department of

   Defense is no more sacrosanct than any other portion of the Federal     

   government in terms of its need to be constantly reviewed, assessed, and

   improved.                                                               

      This year the Committee's efforts to reduce unnecessary spending in  

   the Department of Defense are even more important. This is due to the   

   need to address critical unfunded shortfalls in the fiscal year 1998    

   budget submission, many directly affecting readiness and quality of life

   programs, as well as the Committee's broader concerns about whether the 

   savings forecast from implementation of the Quadrennial Defense Review  

   can realistically be expected to materialize.                           

      Accordingly, a major priority throughout the Committee's budget      

   oversight process has been the identification of lower priority programs

   which, although they contribute to the military mission, can be cut or  

   eliminated in order to fund higher priority programs and activities. The

   Committee has also recommended many budget reductions intended to reform

   and streamline existing Department of Defense structure or operations,  

   and in so doing the Committee intends to accelerate already-planned QDR 

   initiatives. Finally, the Committee has identified budget savings       

   stemming from audits by the General Accounting Office, the Department's 

   audit and inspector general functions, and the Committee's Surveys and  

   Investigations staff, as well as changes in program status identified by

   the military departments.                                               

       Budget execution/lower-priority programs: The following table shows 

   selected programs in the budget request which the Committee has         

   eliminated or reduced funding based on its having a relatively low      

   priority or where the requested funding was considered excessive.       





Program                                                                 



Reduction                                                               







          Civilian personnel overbudgeting                -$245,500,000







          Consultants and advisory services                -$210,000,000







          Defense dual use and commercialization programs                -187,602,000







          Growth in automated data processing programs                -110,000,000







          Excess inventory               -100,000,000







          Inappropriate budgeting/working capital funds                -127,654,000







          Joint Aerostat Program                -93,193,000







          Environmental fund recoupment                -73,000,000







          Growth in FFRDC's              -55,000,000







          NATO RDT&E                     -53,479,000







          Growth in civilian employee travel                -51,990,000







          JCS Exercises                  -50,000,000







          OSD administrative savings                -20,000,000







       Reform/restructuring: The Committee notes that DoD, with a decade of

   reduced budgets and downsizing behind it, has already implemented or is 

   well into implementing a series of management and organizational        

   reforms. Among other things, these initiatives have already resulted in 

   the defense civilian workforce being reduced by nearly 30 percent with  

   significant additional reductions projected in the near future. While   

   DoD is to be commended for such moves, and although it intends to make  

   even additional reductions associated with implementation of the QDR,   

   the Committee believes more must and can be done. Accordingly, it has   

   recommended a number of budget reductions intended to further streamline

   and rationalize operations.                                             




                                                                               




                                                                  




     QDR-related civilian personnel reductions          -$253,273,000  

     Other headquarters reductions                       -149,443,000  

     Joint standoff missile program consolidation        -140,321,000  

     Defense Agencies (QDR Task Force)                    -72,000,000  

     Using RDT&E funding for production                   -70,875,000  

     Acquisition reform (warranties)                      -50,000,000  

     Overseas disaster aid                                -24,573,000  



       Program/budget execution: In addition to the reductions cited above,

   the Committee proposes more than 150 other reductions to budgeted items 

   based on delays in program execution, contract savings, or other events 

   resulting in the requested amount being clearly excessive to program    

   needs. These reductions have resulted in over $2.5 billion in savings in

   this legislation.                                                       

                          U.S. Forces in Bosnia                          





      The fiscal year 1998 budget request includes, and the Committee      

   recommends in this bill, a total of $1,467,500,000 in order to finance  

   the additional incremental military personnel and operation and         

   maintenance costs resulting from the continued U.S. participation in the

   NATO-led Stabilization Force in Bosnia, through June 1998. With this    

   appropriation, the Committee notes it will have provided roughly $6.5   

   billion in either supplemental appropriations acts, approved            

   reprogramming actions or annual Department of Defense Appropriations    

   Acts for the additional costs associated with U.S. military operations  

   in and around the former Yugoslavia since October 1995. The Committee   

   has on numerous occasions expressed its commendation for the            

   professional and expert manner in which U.S. forces involved in the     

   Bosnia operation have carried out their missions, and does so once      

   again. These forces and their commanders have performed in an exemplary 

   manner, as have all coalition military participants, in an uncertain and

   dangerous environment.                                                  

      Even before a decision was made to deploy U.S. forces to Bosnia, the 

   Committee had expressed its concern and disappointment over the failure 

   of the Administration to adequately consult with the Congress regarding 

   peacekeeping operations. The mission change in Somalia, and Presidential

   commitments to deploy forces to Rwanda, Haiti and Bosnia all were       

   undertaken after little, if any, advance consultation with the Congress.

   While having repeatedly admonished the Administration for failing to    

   adequately seek Congressional advice and consent, the Committee has also

   consistently expressed its willingness to work constructively with the  

   Administration to try and find consensus over how best to carry out     

   these missions while addressing the Nation's overall foreign policy     

   objectives. And despite the political controversy surrounding the Bosnia

   deployment--beginning with the initial decision to deploy American      

   forces, to the mission extension announced by the President last        

   November, and now, concerns over a possible second mission extension as 

   well as possible expanded roles for U.S. forces on the ground--the      

   Committee observes that it has in each and every instance provided the  

   funds deemed necessary by the Department of Defense to support this     

   mission. The Committee's record of ``supporting the troops'' cannot be  

   questioned.                                                             

      Regrettably, the Administration has yet to adequately address the key

   issues initially raised by the Committee and others nearly two years ago

   with respect to the Bosnia deployment. These include questions about the

   exact mission of U.S. forces and other Stabilization Force participants;

   what, if any exit strategy or criteria have been established for the    

   withdrawal of American forces; and the ultimate duration of the U.S.    

   deployment, the make-up of any international force in Bosnia after June 

   1998, and the overall long-term commitment which the U.S. intends to    

   make to the region (both in terms of military support and deployments as

   well as other U.S. aid and assistance programs).                        

      The Committee recognizes these are difficult issues, made more       

   complex due to the international involvement in the region and the      

   fragile peace within the former Yugoslavia. Yet it is precisely because 

   these issues are difficult that the Administration's continued refusal  

   to engage the Congress in efforts to seek a consensus for future policy 

   decisions cannot be understood. The Committee believes it is imperative 

   for the Administration to address these policy questions, both through  

   consultation with Congress and openly with the American people.         

      The Committee recognizes that the course of future Bosnia policy     

   carries with it significant implications for NATO as well as European   

   security in general. In addition, the Committee understands that using  

   the legislative ``power of the purse'' to prohibit or limit prospective 

   military operations has been and will no doubt continue to be one of the

   supreme tests between the executive and legislative branches. The       

   Committee does not take lightly any use of this prerogative. The        

   Committee still expresses its willingness to work with the              

   Administration on seeking solutions to the immediate and longer term    

   issues involving policy towards Bosnia. However, in the absence of any  

   declared post-June 1998 plan for the NATO-led peacekeeping and peace    

   enforcement operation in the former Yugoslavia, the Committee recommends

   for inclusion in this bill the provision passed by the House on June 23,

   1997 during consideration of the Defense Authorization bill (H.R. 1119),

   providing that no funds available to the Department of Defense may be   

   used to support the deployment of U.S. ground forces in the Republic of 

   Bosnia and Herzogovina after June 30, 1998 (the current mission limit   

   set by the President), unless specifically prescribed by law.           

                              NATO Expansion                             



      With the recent Madrid Summit and through other policy               

   pronouncements, the Administration has clearly expressed its intent to  

   expand the number of nations in the North Atlantic Treaty Organization  

   (NATO). Unfortunately, the financial impact of this expansion on the    

   Department of Defense budget is not yet clear as no funds have been     

   requested in the fiscal year 1998 budget request. The Committee is      

   dubious regarding current estimates of the cost of NATO expansion, which

   according to the Administration will be approximately $200 million per  

   year. The estimate is significantly lower than that of most observers,  

   and the Committee notes it is premised on only three new member nations.

      In order to gain better insight into the financial requirements for  

   an expanded NATO, the Committee recommends a new general provision      

   (Section 8101) requiring that, in future budget requests, DoD establish 

   a new budget subactivity in the Operation and maintenance request that  

   isolates incremental costs associated with NATO expansion. The Committee

   directs that this new budget entry shall display all future costs funded

   through annual Department of Defense Appropriations Acts relating to    

   NATO expansion. To the degree such costs may be more properly carried in

   other titles of the Act, such as Military personnel or Procurement, the 

   Committee directs that these costs be displayed in their entirety in a  

   separate budget subactivity in the appropriate appropriations account,  

   as needed. The Committee further directs that detailed justification    

   materials be included in future budget requests to support any cost     

   estimates.                                                              

                        Budget Formulation Issues                        



      The Committee is increasingly concerned about a number of practices  

   which have become more prevalent in both the Department of Defense's    

   annual budget submissions as well as the execution of funding once it   

   has been provided by the Congress.                                      

      The first issue involves the underbudgeting of many critical programs

   and activities, particularly those which are known to enjoy support in  

   Congress, in an evident attempt to elicit the required funding through  

   the annual defense authorization and appropriations process. Examples   

   include the now routine underbudgeting of real property and depot       

   maintenance accounts, as well as conventional ammunition, tactical      

   vehicle and missile programs, equipment needs of the Guard and Reserve  

   components, and of particular concern to the Committee, funding for     

   defense medical programs. Over the past three years, as it became       

   apparent that Congress was inclined to add substantial sums to the      

   President's programmed defense budgets, this practice has become more   

   rampant with the Office of the Secretary of Defense (OSD) and the       

   Military Departments appearing to willfully delete or refuse to commit  

   funding for other high priority programs such as national and theater   

   missile defense programs, Navy ship self-defense initiatives, and       

   aircraft navigational and safety upgrades.                              



      The Committee believes these actions are clearly unconscionable given

   the direct threat to the lives of service personnel should such programs

   not be adequately funded or ultimately fielded. They are even less      

   supportable when viewed in the context of the Department's overall      

   fiscal year 1998 budget request. This budget proposes that the Congress 

   ignore these high priority programs and, instead, approve sizable budget

   increases for efforts less relevant to immediate military requirements, 

   such as consultants, basic research, and generic technology             

   demonstrations. (One such effort, the Joint Aerostat Program discussed  

   later in this report, is estimated to require over $600,000,000 over the

   next few years yet has no validated mission nor user requirement.) The  

   Department has in place processes and organizations, such as the Joint  

   Requirements Oversight Council (JROC), which were expressly created to  

   ensure that warfighting requirements are rationalized and given due     

   regard in budget deliberations. Given this, the Committee is puzzled why

   it is being asked to approve a budget which fails to adequately fund    

   programs needed by deployed forces, and which still falls short when it 

   comes to choosing among competing service programs and initiatives.     

      A related issue is the Department's budget proposal in each of the   

   past two years to transfer proceeds from asset sales from the National  

   Defense Stockpile to fund either operation and maintenance or           

   procurement programs. Under the Budget Act such practices are not       

   allowed unless the sales in question are consistent with historical     

   levels. Despite knowing this both DoD and the Office of Management and  

   Budget have persisted in forwarding requests to the Congress which rely 

   on generating sales revenue from the National Defense Stockpile in      

   excess of Budget Act limits. As a consequence, over the past two years  

   the President's defense budgets have actually contained $800,000,000    

   more in proposed spending that could actually be made available in      

   appropriations bills without running afoul of Budget Act scorekeeping   

   conventions.                                                            

      The Committee wishes to serve notice to OSD, the Military            

   Departments, and OMB the obvious fact that such misallocation of        

   resources and budget gamesmanship will simply be self defeating in the  

   future. As a result of the recently approved budget agreement, beginning

   in fiscal year 1999 the Congress has agreed to the same defense budget  

   topline as has the President, and therefore deliberations over the      

   content of future defense bills will by definition be a zero-sum game.  

   This problem will only become more intense should anticipated savings   

   from the QDR and other reforms fall short of expectations. Should OSD   

   and the Services, with the knowledge of OMB, persist in underfunding    

   critical programs or resorting to budget gimmicks in anticipation that  

   the Committee and Congress will ``fix the problem'', they should do so  

   knowing full well that these problems will be corrected only through    

   reductions to other budgeted programs.                                  

      Abuse of Traditional Acquisition and Appropriations Practices      



      The Committee is similarly concerned about what, from its            

   perspective, is a breakdown of existing and longstanding procedures     

   regarding the institution of multiyear contracting for major weapons    

   systems, as well as a fundamental breach of appropriations discipline   

   whereby the Department is using funds provided for research,            

   development, test and evaluation of weapons programs to instead initiate

   production contracts, in many instances without the knowledge of OSD or 

   the Congress.                                                           

      With respect to multiyear contracting, the Committee remains         

   convinced that when used appropriately, multiyear contracts offer       

   substantial benefits in terms of both cost savings and program          

   stability. However, another aspect of multiyear contracting is that once

   initiated for a particular program, funding for that program is         

   basically committed for several years, and unlikely to be reduced       

   because of the termination liability costs associated with failure to   

   adequately fund the multiyear program. The Committee is aware of        

   instances where the military services have sought multiyear contracting 

   authority from the Congress even though the current defense program does

   not contain enough funding to actually execute the contract, evidently  

   in an effort to leverage increased budget allocations from OSD.         

      Over the past two years the Committee has witnessed a significant    

   increase in efforts by the military services to importune the Congress  

   to grant their favored programs multiyear contracting authority. Given  

   the major restructuring of Departmental spending priorities associated  

   with implementation of the QDR, as well as the need of OSD to maintain  

   at least some degree of management control over future defense spending 

   decisions, the Committee believes it appropriate to require that the    

   Secretary of Defense, approve all major multiyear contract initiatives  

   and therefore has recommended amending an existing general provision    

   (Section 8008) to require that no multiyear contracts over a certain    

   threshold may be requested unless that program is specifically          

   identified in official budget documents transmitted to the Congress by  

   the President, or through written communication from the Secretary. This

   should not be perceived as the Committee losing favor with multiyear    

   contracting as a means to achieve cost savings; rather, the Committee's 

   intent is to give the Secretary of Defense as well as the Congress      

   greater opportunities to carefully review any proposed multiyear program

   acquisition.                                                            

      With respect to the abuse of RDT&E appropriations, the Committee is  

   concerned about what appears to be an increasing lack of discipline     

   within the Department of Defense in budgeting programs in the proper    

   appropriations, especially among acquisition programs. The Committee is 

   aware of desires within the DOD acquisition community to merge          

   development and procurement funding into a single appropriation as a    

   convenience to program managers. Such a change to fundamental budget    

   practices would severely impede oversight by both senior managers in the

   Department as well as Congress. The Department has declined to make any 

   such formal recommendations to the Congress; however, the Committee has 

   become convinced the Department has instead placated its acquisition    

   community by allowing program managers, under the guise of acquisition  

   reform, to blur distinctions between appropriations. The Committee has  

   identified a number of instances in this report in which the Department 

   has requested funding in the research and development accounts to       

   initiate production, and production funding to initiate development.    

   Most notable are the cases of EFOG M, LOSAT, WCMD, WRAP initiatives, and

   F 22 discussed at length elsewhere in this report. The Committee is     

   particularly disturbed over a trend in missile programs to initiate     

   production to provide an ``interim warfighting capability'' using       

   research and development funding, contrary to Committee direction and   

   DOD policy on the use of such funding.                                  

      The Committee takes its oversight responsibilities seriously and will

   not tolerate lax observance of the long-standing policies on the proper 

   use of appropriations. Accordingly, the Committee has included a general

   provision (Section 8100) which prohibits the Department from using funds

   provided in Title IV of the bill (funding for research, development,    

   test, and evaluation) to procure end-items of any DoD system unless said

   items are physically utilized in test and evaluation activities which   

   lead to a production decision for the system. This provision exempts    

   programs funded in this bill under the National Foreign Intelligence    

   Program, and also includes limited waiver authority should the Secretary

   of Defense determine it is in the national security interest.           
                            Ship Self Defense                            



      In fiscal year 1992, the Committee discovered that the Navy's ship   

   self-defense programs were in disarray and it began an initiative to fix

   the problem. In every fiscal year since 1992, the Committee has         

   recommended significant funding increases for ship self-defense         

   programs. The Committee was vindicated when former Secretary of Defense 

   William Perry witnessed at sea tests of the cooperative engagement      

   capability, a main target of the Committee's interest. He called        

   cooperative engagement ``the most significant technological development 

   since stealth'' and directed that the program be accelerated. In the    

   most recent tests using cooperative engagement, 17 of 19 missile shots  

   were direct hits, at much farther distances than can be achieved by     

   Aegis ships today, and in one case the ship firing its missiles in      

   self-defense could not even see the target due to radar jamming. In     

   hearings during the past few years, the Committee has commended Navy    

   officials for their attention to committee direction on ship self       

   defense programs.                                                       

      In the fiscal year 1998 budget, something went awry. The Assistant   

   Secretary of the Navy for Research, Development and Acquisition         

   testified to the Committee this year that the Navy's budget continues   

   ``an all out effort to protect our Sailors and Marines serving aboard   

   ships against missile attack''. Yet, the Navy's budget is a considerable

   step backward in terms of achieving this objective. Many ship defense   

   programs that have longstanding yet unfulfilled warfighting requirements

   and which have successfully completed R&D have no funds requested in the

   fiscal year 1998 budget ostensibly due to lack of funds. Among those are

   installation of cooperative engagement capability on two surface battle 

   groups, ship self defense upgrades on two amphibious assault ships, and 

   CIWS surface mode gun upgrades on 8 combatant ships to protect them     

   against the terrorist patrol boat threat identified in the early 1990s. 

   The Committee wonders how the Navy can rationalize no production funds  

   for a system declared to be ``the most significant technological        

   development since stealth'', after the system successfully reached      

   initial operating capability and whose fielding was directed by the     

   Secretary of Defense to be accelerated. The Navy also proposes to       

   overhaul the U.S.S. Nimitz aircraft carrier without including           

   $120,000,000 of necessary equipment that directly contributes to the    

   ability of the ship to perform its mission and to defend thousands of   

   her sailors against cruise missile attack, ostensibly due to lack of    

   funds. The Navy also proposes a multiyear contract for 12 new DDG 51    

   destroyers which would be delivered to the fleet as late as 2006 without

   either cooperative engagement or theater ballistic missile defense      

   capability, again ostensibly due to lack of funds.                      

      It is apparent to the Committee that ship self-defense and theater   

   ballistic missile defense programs were given short shrift in the Navy's

   fiscal year 1998 budget due to the propensity of the Navy to request    

   budget growth in (1) lower priority programs such as basic research,    

   NATO R&D, studies, and (2) R&D for new platforms for every Naval        

   community. The Committee's bill rectifies this misallocation of         

   resources by providing an increase of $401,800,000 in R&D and           

   procurement appropriations for ship self-defense and DDG 51 theater     

   ballistic missile defense related programs, with attendant reductions to

   lower priority programs requested by the Navy.                          



                 CHEMICAL AND BIOLOGICAL DEFENSE PROGRAMS                



      The Committee has expressed its concern for several years about the  

   Department's slow response to organize more effectively and to provide  

   adequate resources to combat the growing threat posed by the potential  

   use of chemical and biological agents--both at home and abroad. The     

   serious nature of this threat was well stated in the discussion of      

   biological weapons contained in the 1997 Strategic Assessment report    

   issued by the National Defense University:                              



              Biological Weapons--the New Weapon of Choice?              



                     Although often treated as less threatening than    

          nuclear weapons, increased attention is now being given to the

          biological threat. Many of the Cold War assumptions about the 

          strategic and tactical utility of biological weapons (BW) no  

          longer appear valid. In fact, given the diffusion of the      

          dual-use technologies involved, the pursuit of BW is now      

          recognized as a relatively cheap and easily available path to 

          acquire a weapon of mass destruction--the poor man's atomic   

          bomb. * * * It is possible for BW agents to inflict massive   

          casualties against soft targets such as cities to an extent   

          that rivals megaton nuclear weapons. Further, because only    

          small quantities of these highly lethal agents are needed to  

          achieve significant effects, an aggressor can choose between  

          multiple delivery modes and attack options. Moreover, as the  

          number of states engaged in BW research has grown, the        

          sophistication of their work has also grown, leading to       

          technical advances (e.g., microencapsulation to produce more  

          stable agents for use over longer periods) that may permit    

          biological agents and toxins to be used in more controlled    

          fashion to advance military goals.                            



      The threat from chemical weapons, employed by organized militaries or

   by terrorist groups is also significant and growing. According to the   

   same 1997 Strategic Assessment report:                                  



                     Chemical weapons are currently possessed by more   

          states than either biological or nuclear weapons, and are the 

          only one of the three to be used in the post-World War II era.

          * * * some experts tend to minimize the potential consequences

          of CW use, arguing that CW does not merit consideration as a  

          weapon of mass destruction. In fact, analysis suggests that CW

          use against U.S. and allied forces and critical infrastructure

          facilities can have a major impact on the outcome of a major  

          regional conflict.                                            



      The danger that a terrorist group could acquire the capability to    

   launch a CW or BW attack continues to exist. According to the May 1997  

   Report to Congress on the Activities and Programs for Countering        

   Proliferation and NBC Terrorism, by the multiagency Counterproliferation

   Program Review Committee:                                               



                     U.S. Intelligence continues to assess and analyze  

          the threat of terrorist CW and BW attack, a threat that       

          remains ever present. The Aum Shinrikyo attacks in June 1994, 

          in Matsumoto, Japan which killed seven and injured 500, and on

          the Tokyo subway in March 1995, which killed 12 and injured   

          5,500, were the first instances of large scale terrorist use  

          of CW agents, but a variety of incidents and reports over the 

          last two years indicate continuing terrorist interest in these

          weapons. * * * The fact that only 12 Japanese died in the     

          Tokyo subway attack has tended to mask the significance of the

          5,500 people who were treated or examined at medical          

          facilities. Such a massive influx of injured--many            

          critically--has the potential to overwhelm emergency medical  

          facilities, even in a large metropolitan area.                



      The Committee realizes that providing an effective                   

   chemical/biological defense program to combat both the military threat  

   and the domestic terrorist threat is highly challenging. Effective      

   action requires a multipronged approach that coordinates disparate      

   activities within the Department and within other federal, state and    

   local agencies in such areas as foreign and domestic intelligence;      

   enforcement of counterproliferation policies and programs; medical      

   research into vaccines, antidotes, and treatments; development and      

   deployment of detection, warning and decontamination equipment;         

   development of individual protection suits and collective shelters;     

   training of military personnel and of federal, state and local ``first  

   responders''; and systems to find and destroy CW and BW delivery        

   systems.                                                                

      For the last several years, the Committee has added funding above the

   budget and mandated special studies to advance this effort. While       

   progress has been slower than the Committee would have liked, the       

   Committee is encouraged by the new emphasis being given to countering   

   the threat of chemical and biological weapons in the Quadrennial Defense

   Review. The Secretary of Defense has committed in the QDR to spending an

   extra $1 billion over the Future Years Defense Plan for nuclear,        

   biological, and chemical weapons counterproliferation programs and to   

   task the National Guard with a new mission for chemical/biological      

   defense in the United States. Just as important as these initiatives is 

   the stated goal in the QDR of ``institutionalizing counterproliferation 

   as an organizing principle in every facet of military activity''. This  

   is a key element of improving our CBW defenses. The Committee is pleased

   with the direction outlined in the QDR and will continue to press the   

   Department to follow through with these commitments.                    

      In addition to fully funding the budget request on high priority     

   chemical/biological defense programs, the Committee recommends          

   increasing the budget request by $107,650,000 for various high priority 

   research and development, procurement, and study requirements. This     

   includes:                                                               

      $10,000,000 for procurement of chemical/biological detection and     

   treatment equipment for the Marine Corps Chemical/Biological Incident   

   Response Force;                                                         

      $1,300,000 for training and assistance to ``first responders'', bring

   the total recommended in the bill for this purpose to $50,000,000;      

      $8,000,000 to develop new biological defense vaccines and antisera   

   against botulinum toxins;                                               

      $10,000,000 to develop advanced technologies for wide area           

   decontamination and other decontamination priorities;                   

      $12,850,000 to purchase additional JSLIST individual protection suits

   and perform related research;                                           

      $2,000,000 for research into novel nerve agents leading to antidotes 

   and pretreatments.                                                      

      $20,000,000 for various types of special equipment for               

   decontamination, collective protection, and treatment;                  

      $10,000,000 for detailed planning and concept studies to support a   

   comprehensive effort to expand the National Guard mission into the area 

   of chemical/biological domestic defense;                                

      $10,000,000 for high priority equipment needs identified by the Air  

   Force Pacific Command;                                                  

      $17,700,000 for Air Force medical research into vaccines and         

   antidotes; and                                                          

      $5,800,000 for the SAFEGUARD chemical warfare detection and          

   monitoring system.                                                      

                        COMMITTEE RECOMMENDATIONS BY MAJOR CATEGORY               



                        ACTIVE MILITARY PERSONNEL                        



      The Committee recommends a total of $60,136,801,000 for active       

   military personnel, a reduction of $158,729,000 below the budget        

   request. The Committee agrees with the authorized end strength as       

   requested in the President's budget, and has also fully funded the      

   proposed pay raise of 2.8 percent. In keeping with the emphasis on the  

   quality of life initiatives started in fiscal year 1996, the Committee  

   recommends an increase of approximately $56,000,000 for certain Pays and

   Allowances for active personnel, such as the Basic Allowance for        

   Quarters and Family Separation Allowance.                               

                            GUARD AND RESERVE                            



      The Committee recommends a total of $9,206,393,000, an increase of   

   $90,161,000 above the budget request for Guard and Reserve personnel.   

   The Committee agrees with the authorized end strength as requested in   

   the President's budget for Selected Reserve, and has also fully funded  

   the proposed pay raise of 2.8 percent. The Committee recommends an      

   increase of approximately $4,000,000 for Basic Allowance for Quarters   

   for Reserve personnel. In addition, the Committee restores $85,000,000  

   in the Reserve accounts for pay of reservists who are also Federal      

   civilian employees.                                                     

                        OPERATION AND MAINTENANCE                        



      The Operation and Maintenance appropriation provides for the         

   readiness of U.S. forces as well as the maintenance of facilities and   

   equipment, the infrastructure that supports the combat forces and the   

   quality of life of Service members and their families.                  

      The Committee recommends $82,925,753,000, an increase of $644,813,000

   above the fiscal year 1998 budget request. As described elsewhere in    

   this report, this increase is driven primarily by the need to address   

   shortfalls in: readiness training, Navy and Air Force flying hours,     

   facility and infrastructure maintenance and repairs, and equipment      

   maintenance. The Committee has also recommended budget reductions that  

   can be taken by the Department as a result of the Quadrennial Defense   

   Review and in such areas as headquarters and administrative operating   

   costs and by taking advantage of fact of life changes since preparation 

   of the budget request.                                                  

                               PROCUREMENT                               



      The Committee recommends $45,515,962,000 in new obligational         

   authority for Procurement, an increase of $3,930,784,000 over the fiscal

   year 1998 budget request. Major programs funded in the bill include:    

    $309,231,000 for 30 UH 60 Blackhawk helicopters                        



    $474,832,000 for upgrades and modifications to Apache helicopters      





    $228,287,000 for 1,056 Hellfire missiles                               



    $143,112,000 for 1,080 Javelin missiles                                



    $240,591,000 for Bradley vehicle industrial base sustainment           



    $594,856,000 for upgrades to Abrams tanks                              



    $209,446,000 for medium tactical vehicles                              



    $302,164,000 for SINCGARS radios                                       



    $2,101,100,000 for 20 F/A 18 E/F fighter aircraft                      



    $661,307,000 for 7 V 22 (Osprey) aircraft                              



    $304,474,000 for 4 E 2C early warning aircraft                         



    $243,960,000 for 12 T 45 trainer aircraft                              



    $1,632,544,000 for the modification of naval aircraft                  



    $181,092,000 for 127 Standard missiles                                 



    $2,314,903,000 for 1 new SSN attack submarine                          



    $1,628,403,000 for 1 carrier refueling overhaul                        



    $2,695,367,000 for 3 DDG 51 destroyers                                 



    $505,286,000 for B 2 aircraft                                          



    $159,000,000 for 3 F 15 fighter aircraft                               



    $1,914,211,000 for 9 C 17 airlift aircraft                             



    $1,464,861,000 for modification of Air Force aircraft                  



    $107,168,000 for 173 AMRAAM missiles                                   



    $384,600,000 for Ballistic Missile Defense                             



                research, development, test and evaluation               



      The Committee recommends $36,704,924,000 in new obligational         

   authority for Research, Development, Test and Evaluation, an increase of

   $770,433,000 from the fiscal year 1998 budget request. Major programs   

   funded in the bill include the following:                               

    $324,380,000 for artillery system development                          



    $282,009,000 for the Comanche helicopter                               



    $202,302,000 for the Brilliant Anti-Armor Submunition                  



    $930,807,000 for the Joint Strike Fighter                              



    $396,500,000 for the New Attack Submarine                              



    $2,077,234,000 for the F 22 tactical aircraft                          



    $676,690,000 for the MILSTAR communications satellite                  



    $3,289,059,000 for Ballistic Missile Defense                           



                                   FORCES TO BE SUPPORTED                         



                          DEPARTMENT OF THE ARMY                         



      The fiscal year 1998 budget is designed to support active Army forces

   of 10 divisions, 3 armored cavalry regiments, and reserve forces of 8   

   divisions, 3 separate brigades, and 15 enhanced National Guard brigades.

   These forces provide the minimum force necessary to meet enduring       

   defense needs and execute the National Military Strategy.               

   A summary of the major active forces follows:                           






                                                                                 




                                                                   Fiscal year--        




                                                                1996     1997     1998  




Divisions:                                                         1        1        1  

                                                             -------  -------  -------  

Total                                                             10       10       10  

                                                             -------  -------  -------  

Non-divisional Combat units:                                       3        3        3  

                                                             -------  -------  -------  

Total                                                              3        3        3  

                                                             -------  -------  -------  

Active duty military personnel, end strength (thousands)         495      495      495  



                          DEPARTMENT OF THE NAVY                         



      The fiscal year 1998 budget supports battle forces totaling 346 ships

   at the end of fiscal year 1998, a decrease from fiscal year 1997. Forces

   in fiscal year 1998 include 18 strategic ships, 11 aircraft carriers;   

   262 other battle force ships, 324 support ships, reserve force ships,   

   1,746 Navy/Marine Corps tactical/ASW aircraft, 673 Undergraduate        

   Training aircraft, 443 Fleet Air Support aircraft, 480 Fleet Air        

   Training aircraft, 443 Reserve aircraft, 177 RDT&E aircraft and 470     

   aircraft in the pipeline.                                               

   A summary of the major forces follows:                                  






                                                                               




                                                Fiscal year             




                                           1996        1997       1998  




Strategic Forces                             17          18         18  

                                     ----------  ----------  ---------  

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

SLBM Launchers (MIR)                        408         432        432  

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

General Purpose                             301         297        297  

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

Support Forces                               29          24         24  

                                     ----------  ----------  ---------  

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

Mobilization Category A                      18          18         18  

                                     ----------  ----------  ---------  

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

Total Ships, Battle Force                   365         357        346  

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

Total Local Defense/Misc. Forces            159         165        167  

                                     ----------  ----------  ---------  

Auxiliaries/Sealift Forces                  135         143        144  

Surface Combatant Ships                       5           3          2  

Coastal Defense                              13          13         13  

Mobilization Category B                       3           6          8  

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

Naval Aircraft:                           4,130       4,072      4,104  

                                     ----------  ----------  ---------  

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

Naval Personnel:                        602,000     580,900    564,082  

                                     ----------  ----------  ---------  

Navy                                    428,000     406,900    390,082  

Marine Corps                            174,000     174,000    174,000  

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

Reserve:                                 96,608      95,941     94,294  

                                     ----------  ----------  ---------  

SELRES                                   80,920      79,285     78,158  

Sea/Air Mariners                            198         150             

TARS                                     17,490      16,506     16,506  





                       DEPARTMENT OF THE AIR FORCE                       



      The fiscal year 1998 Air Force budget was designed to support a total

   active inventory force structure of 51 fighter and attack squadrons, 10 

   Air National Guard air defense interceptor squadrons and 9 bomber       

   squadrons, including B 2s, B 52s, and B 1s. The Minuteman and           

   Peacekeeper ICBM forces will consist of 700 active launchers.           

   A summary of the major forces follows:                                  






                         FISCAL YEAR 1998 MAJOR FORCES                         

                     [Includes only Combat Coded Squadrons]                    




                                               1996      1997     1998  




USAF fighter and attack (Active)                 51        52       51  

USAF fighter and attack (ANG and AFRC)           36        36       36  

Air defense interceptor (ANG)                    10        10       10  

Strategic bomber (Active)                         8         9        9  

Strategic bomber (ANG and AFRC)                   3         3        3  

ICBM launchers/silos                            700       700      700  

ICBM missile boosters                           580       580      580  

USAF airlift squadrons (Active):                 15        13       13  

                                           --------  --------  -------  

Total airlift                                    26        24       22  

                                           --------  --------  -------  

Total Active Inventory\1\                     6,369     6,337    6,242  




\1\Includes Primary, Backup, and Attrition Reserve Aircraft for all Purpose Identifiers for Active, Air National Guard, and Air Force Reserve.  








                                                                               




End strength                 1997       1998  




Active Duty               381,087    371,577  

Reserve Component         182,489    180,786  

Air National Guard        109,178    107,355  

Air Force Reserve          73,311     73,431  



                                   SPECIAL INTEREST ITEMS                         



      Items for which funds have specifically been provided in any         

   appropriation in this report using the phrases ``only for'' or ``only   

   to'' are congressional interest items for the purpose of the Base for   

   Reprogramming (DD Form 1414). Each of these items must be carried on the

   DD Form 1414 at the stated amount, or a revised amount if changed during

   conference action on this bill, unless the item is denied in conference 

   or if otherwise specifically addressed in the conference report.        

                           GOVERNMENT PERFORMANCE AND RESULTS ACT                 



      The Committee considers the full and effective implementation of the 

   Government Performance and Results Act, P.L. 103 62, to be a priority   

   for all agencies of government.                                         

      Starting with fiscal year 1999, the Results Act requires each agency 

   to ``prepare an annual performance plan covering each program activity  

   set forth in the budget of such agency''. Specifically, for each program

   activity the agency is required to ``establish performance goals to     

   define the level of performance to be achieved by a program activity''  

   and ``performance indicators to be used in assessing the relevant       

   outputs, service levels, and outcomes of each program activity''.       

      The Committee takes this requirement of the Results Act very         

   seriously and plans to carefully examine agency performance goals and   

   measures during the appropriations process. As a result, starting with  

   the fiscal year 1999 appropriations cycle, the Committee will consider  

   agencies progress in articulating clear, definitive, and                

   results-oriented (outcome) goals and measures as it reviews requests for

   appropriations.                                                         

      The Committee suggests agencies examine their program activities in  

   light of their strategic goals to determine whether any changes or      

   realignments would facilitate a more accurate and informed presentation 

   of budgetary information. Agencies are encouraged to consult with the   

   Committee as they consider such revisions prior to finalizing any       

   requests pursuant to 31 U.S.C. 1104. The Committee will consider any    

   requests with a view toward ensuring that fiscal year 1999 and          

   subsequent budget submissions display amounts requested against program 

   activity structures for which annual performance goals and measures have

   been established.                                                       



                                           TITLE I                                



                                     MILITARY PERSONNEL                           



            PROGRAMS AND ACTIVITIES FUNDED BY MILITARY PERSONNEL APPROPRIATIONS   



      The President's budget request reflects a continuation in the        

   drawdown of military personnel and force structure. The budget proposes 

   a decrease of 21,000 active duty personnel, and 10,000 Reserve and Guard

   personnel from fiscal year 1997 levels. The Department's reductions in  

   active end strength is about 98.8 percent complete at the end of fiscal 

   year 1998. The Committee recommends to fully fund the proposed 2.8      

   percent pay increase, and includes an increase of approximately         

   $60,000,000 over the budget request for Basic Allowance for Quarters and

   Family Separation Allowance.                                            

             SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR 1998   






                                                                               




                                                       




     Fiscal year 1997                      $70,016,500,000  

     Fiscal year 1998 budget request        69,411,762,000  

     Fiscal year 1998 recommendation        69,343,194,000  

     Change from budget request                -68,568,000  



      The Committee recommends an appropriation of $69,343,194,000 for the 

   Military Personnel accounts. The recommendation is a decrease of        

   $673,306,000 below the $70,016,500,000 appropriated in fiscal year 1997.

   These military personnel budget total comparisons include appropriations

   for the active, reserve, and National Guard accounts. The following     

   tables include a summary of the recommendations by appropriation        

   account. Explanations of changes from the budget request appear later in

   this section.                                                           




  SUMMARY OF APPROPRIATION ACCOUNT OF THE FISCAL YEAR 1998 MILITARY PERSONNEL RECOMMENDATION 

                                  [In thousands of dollars}                                  




Account                                 Budget    Recommendation    Change from budget  




Military Personnel:                $20,492,257       $20,445,381              -$46,876  

                                --------------  ----------------  --------------------  

Subtotal, Active                    60,295,530        60,136,801              -158,729  

Reserve Personnel:                   2,024,446         2,045,615               +21,169  

National Guard Personnel:            3,200,667         3,245,387               +44,720  

                                --------------  ----------------  --------------------  

Subtotal, Guard and Reserve          9,116,232         9,206,223               +90,161  

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

Total, Title I                      69,411,762        69,343,194               -68,568  





      The fiscal year 1998 budget request included a decrease of 20,721 end

   strength for the active forces and a decrease of 10,781 end strength for

   the selected reserve over fiscal year 1997 authorized levels.           

      The Committee recommends the following levels highlighted in the     

   tables below.                                                           

                       Overall Active End Strength                       






                                                                               




                                                                 




     Fiscal year 1997 estimate                             1,452,100  

     Fiscal year 1998 budget request                       1,431,379  

     Fiscal year 1998 House authorization                  1,445,000  

     Fiscal year 1998 recommendation                       1,431,379  

       Compared with Fiscal year 1997                        -20,721  

       Compared with Fiscal year 1998 budget request                  



                  Overall Selected Reserve End Strength                  






                                                                               




                                                               




     Fiscal year 1997 estimate                             902,399  

     Fiscal year 1998 budget request                       891,618  

     Fiscal year 1998 House authorization                  891,618  

     Fiscal year 1998 recommendation                       891,685  

       Compared with Fiscal year 1997                      -10,781  

       Compared with Fiscal year 1998 budget request           +67  






                                                                                                                          




                                     Fiscal year 1997 estimate                                   Fiscal year 1998                                  




                                                                   Budget request    House authorization    Recommendation    Change from request  




Active Forces (end strength):                           495,000           495,000                495,000           495,000                         

                                     --------------------------  ----------------  ---------------------  ----------------  ---------------------  

Total, Active Force                                   1,452,100         1,431,379              1,445,000         1,431,379                         

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

Guard and Reserve (end strength):                       215,254           208,000                208,000           208,000                         

                                     --------------------------  ----------------  ---------------------  ----------------  ---------------------  

Total, Guard and Reserve                                902,399           891,618                891,618           891,685                    +67  



                         ADJUSTMENTS TO MILITARY PERSONNEL ACCOUNT                



                                 OVERVIEW                                



                       SPECIAL PAYS AND ALLOWANCES                       



      The Committee recommends a total increase of $35,000,000 for Basic   

   Allowance for Quarters, a housing allowance, to help offset the         

   ``out-of-pocket'' costs to service members when they change duty        

   stations, and for living in high-cost geographical areas. In addition,  

   the Committee recommends an increase of $25,000,000 for Family          

   Separation Allowances, an allowance paid to members on temporary duty   

   (TDY) status. The House-passed Defense Authorization bill approved an   

   increase in the monthly rate of this allowance from $75 to $100 per     

   month.                                                                  

                         END STRENGTH ADJUSTMENTS                        



      The Committee agrees with the fiscal year 1998 budget request on     

   active and Reserve end strength levels, a reduction of approximately    

   31,000 over fiscal year 1997 authorized personnel levels. In addition,  

   based on the latest end strength levels provided by the Department, the 

   Services, primarily the Army and Navy, will begin fiscal year 1998 with 

   approximately 12,000 fewer military personnel on-board than budgeted,   

   which means the 1998 pay and allowances requirements are overstated.    

   Therefore, the Committee recommends an understrength reduction of       

   $214,700,000 to the budget request.                                     

                   TEMPORARY EARLY RETIREMENT AUTHORITY                  



      The Committee recommends a total reduction of $184,738,000 to the    

   Army and Air Force budget requests as a result of the suspension of the 

   15-year Temporary Early Retirement Authority during fiscal year 1998, as

   proposed in the House-passed Defense Authorization bill.                



                             FOREIGN CURRENCY                            



      The President recently submitted a fiscal year 1998 budget amendment,

   which reduced the active duty military personnel accounts by a total of 

   $62,000,000 for foreign currency savings. This amendment to the budget  

   was proposed in order to cover a shortfall in the Defense Health        

   Program. The Committee agrees there are more savings due to favorable   

   fluctuations in overseas exchange rates and recommends a total reduction

   of $68,000,000 for foreign currency, an additional reduction of         

   $6,000,000 to the Services' personnel accounts.                         

                      CONTINGENCY OPERATIONS FUNDING                     



      The budget request recommends $213,600,000 for pay and allowances of 

   military personnel in the ``Overseas Contingency Operations Transfer    

   Fund'', for cost of operations in Bosnia during fiscal year 1998. The   

   Committee does not agree to the realignment of these funds, and has     

   increased the Services military personnel accounts by this amount.      



                     MILITARY PERSONNEL COMPENSATION                     



      The House-passed Defense Authorization bill has included numerous    

   recommendations that would affect military personnel compensation and   

   benefits for fiscal year 1998. The Committee supports the intent of the 

   House National Security Committee's recommendations which raises rates  

   for current allowances; however Committee's practice has been not to    

   appropriate funds for pending changes to entitlements. Implementation of

   these changes is usually left to the discretion of the Department, and  

   the precise costs during the initial year of implementation are not     

   known as a result. The Committee will entertain a prior-approval        

   reprogramming action if the Department decides to implement any         

   recommendations which are enacted into law.                             

                  PERSONAL FINANCIAL MANAGEMENT TRAINING                 



      The Committee believes that an increasing number of young men and    

   women joining the Services have inadequate knowledge and understanding  

   of the skills required for personal financial management and fiscal     

   responsibility. Many recruits lack the basic skills required for        

   checkbook or credit card management resulting in growing levels of      

   bankruptcy and indebtedness. This lack of knowledge can have a          

   significant impact on the readiness of the force when individuals leave 

   the military or suffer family troubles due to financial problems. The   

   Committee believes that the Department should develop and implement a   

   standardized course curriculum for all new officers and enlisted        

   personnel in all Services covering the basic skills of personal         

   financial management. The Committee directs the Department to report by 

   December 15, 1997 on actions taken to correct this problem.             

                           ``aim high'' program                          



      The ``Aim High'' program in eastern Washington state promotes        

   citizenship and scholarship while reducing drug use among youths through

   interaction with military facilities. The Committee believes that the   

   military services can provide an excellent model of self-discipline and 

   responsibility for students, and opportunities to visit military        

   installations can be an effective recruiting tool, as well as a powerful

   incentive for students to refrain from illegal drug use. The Committee  

   urges the Department to continue to support similar initiatives within  

   the constraints of available resources.                                 



                       full-time support strengths                       



      There are four categories of full-time support in the Guard and      

   Reserve components: civilian technicians, active Guard and Reserve      

   (AGR), non-technician civilians, and active component personnel.        

      Full-time support personnel organize, recruit, train, maintain and   

   administer the Reserve components. Civilian (Military) technicians      

   directly support units, and are very important to help units maintain   

   readiness and meet the wartime mission of the Army and Air Force.       

      Full-time support end strength in all categories totalled 152,950 in 

   fiscal year 1997. The fiscal year 1998 budget request is 150,484. The   

   following table summarizes Guard and Reserve full-time support end      

   strengths:                                                              




                                            GUARD AND RESERVE FULL-TIME END STRENGTHS                                           




                               FY 1997 estimate      Budget request      House authorization      Recommendation      Change from request  




Army Reserve:                            11,804              11,500                   11,500              11,500                           

Navy Reserve TAR                         16,626              16,136                   16,136              16,168                      +32  

Marine Corps Reserve                      2,559               2,559                    2,559               2,559                           

Air Force Reserve:                          655                 963                      748                 963                           

Army National Guard:                     22,798              22,310                   22,310              22,310                           

Air National Guard:                      10,403              10,616                   10,616              10,616                           

                           --------------------  ------------------  -----------------------  ------------------  -----------------------  

  Total                                    64,845              64,084                   63,869              64,116                      +32  



                      MILITARY LEAVE FOR RESERVISTS                      



      The budget request recommended a reduction to the Reserve personnel  

   accounts pursuant to a legislative proposal placing a limitation on     

   military basic pay of Federal civilian employees who are Reservists. The

   House-passed Defense Authorization bill did not contain this proposal,  

   and therefore, the Committee recommends restoring $85,000,000 to the    

   Reserve personnel accounts to fully fund their basic pay.               

                                  MILITARY PERSONNEL, ARMY                        






                                                                               




                                                         




     Fiscal year 1997 appropriation          $20,633,998,000  

     Fiscal year 1998 budget request          20,492,257,000  

     Committee recommendation                 20,445,381,000  

     Change from budget request                  -46,876,000  



      The Committee recommends an appropriation of $20,445,381,000 for     

   Military Personnel, Army. The recommendation is a decrease of           

   $188,617,000 below the $20,633,998,000 appropriated for fiscal year     

   1997. The adjustments to the fiscal year 1998 budget request are as     

   follows:                                                                




                                                                               

                           [In thousands of dollars]                           




                                                           




     Basic Allowance for Quarters                      +10,326  

     Foreign Currency Savings                           -4,000  

     Temporary Early Retirement Authority              -36,902  

     Service Academies Foreign Students                 -1,000  

     Personnel Understrength Savings                  -183,100  

     Family Separation Allowance                        +9,600  

     Contingency Operations Transfer--Bosnia          +158,200  

                                             ------------  

        Total                                          -46,876  





                                  MILITARY PERSONNEL, NAVY                        






                                                                               




                                                       




     Fiscal year 1997 appropriation        $16,986,976,000  

     Fiscal year 1998 budget request        16,501,118,000  

     Committee recommendation               16,504,911,000  

     Change from budget request                 +3,793,000  



      The Committee recommends an appropriation of $16,504,911,000 for     

   Military Personnel, Navy. The recommendation is a decrease of           

   $482,065,000 below the $16,986,976,000 appropriated for fiscal year     

   1997. The adjustments to the fiscal year 1998 budget request are as     

   follows:                                                                




                                                                               

                           [In thousands of dollars]                           




                                                        




     Basic Allowance for Quarters                    +9,393  

     Foreign Currency Savings                        -1,000  

     Service Academies Foreign Students              -1,000  

     Personnel Understrength Savings                -10,000  

     Unemployment Compensation Savings              -10,000  

     Family Separation Allowance                     +9,300  

     Contingency Operations Transfer--Bosnia         +7,100  

                                             ---------  

        Total                                        +3,793  



                              MILITARY PERSONNEL, MARINE CORPS                    






                                                                               




                                                      




     Fiscal year 1997 appropriation        $6,111,728,000  

     Fiscal year 1998 budget request        6,147,599,000  

     Committee recommendation               6,141,635,000  

     Change from budget request                -5,964,000  



      The Committee recommends an appropriation of $6,141,635,000 for      

   Military Personnel, Marine Corps. The recommendation is an increase of  

   $29,907,000 above the $6,111,728,000 appropriated for fiscal year 1997. 

   The adjustments to the fiscal year 1998 budget request are as follows:  




                                                                               

                           [In thousands of dollars]                           




                                                        




     Basic Allowance for Quarters                    +2,736  

     Personnel Understrength Savings                 -3,600  

     Unemployment Compensation Savings              -10,000  

     Family Separation Allowance                     +3,600  

     Contingency Operations Transfer--Bosnia         +1,300  

                                             ---------  

        Total                                        -5,964  



                               MILITARY PERSONNEL, AIR FORCE                      






                                                                               




                                                       




     Fiscal year 1997 appropriation        $17,069,490,000  

     Fiscal year 1998 budget request        17,154,556,000  

     Committee recommendation               17,044,874,000  

     Change from budget request               -109,682,000  



      The Committee recommends an appropriation of $17,044,874,000 for     

   Military Personnel, Air Force. The recommendation is a decrease of      

   $24,616,000 below the $17,069,490,000 appropriated for fiscal year 1997.

   The adjustments to the fiscal year 1998 budget request are as follows:  




                                                                               

                           [In thousands of dollars]                           




                                                         




     Basic Allowance for Quarters                     +8,654  

     Foreign Currency Savings                         -1,000  

     Temporary Early Retirement Authority           -147,836  

     Service Academies Foreign Students               -1,000  

     Personnel Understrength Savings                 -18,000  

     Family Separation Allowance                      +2,500  

     Contingency Operations Transfer--Bosnia         +47,000  

                                             ----------  

        Total                                       -109,682  



                                  RESERVE PERSONNEL, ARMY                         






                                                                               




                                                      




     Fiscal year 1997 appropriation        $2,073,479,000  

     Fiscal year 1998 budget request        2,024,446,000  

     Committee recommendation               2,045,615,000  

     Change from budget request               +21,169,000  



      The Committee recommends an appropriation of $2,045,615,000 for      

   Reserve Personnel, Army. The recommendation is a decrease of $27,864,000

   below the $2,073,479,000 appropriated for fiscal year 1997. The         

   adjustments to the fiscal year 1998 budget request are as follows:      




                                                                               

                           [In thousands of dollars]                           




                                            




     Unit Readiness/Training             +8,000  

     Basic Allowance for Quarters          +569  

     Reserve Duty Drill Pay             +20,400  

     Health Scholarship Stipend          -7,800  

                                 ---------  

        Total                           +21,169  





                                  RESERVE PERSONNEL, NAVY                         






                                                                               




                                                     




     Fiscal year 1997 appropriation       $1,405,606,000  

     Fiscal year 1998 budget request       1,375,401,000  

     Committee recommendation              1,377,249,000  

     Change from budget request               +1,848,000  



      The Committee recommends an appropriation of $1,377,249,000 for      

   Reserve Personnel, Navy. The recommendation is a decrease of $28,357,000

   below the $1,405,606,000 appropriated for fiscal year 1997. The         

   adjustments to the fiscal year 1998 budget request are as follows:      




                                                                               

                           [In thousands of dollars]                           




                                          




     Basic Allowance for Quarters        +648  

     Reserve Duty Drill Pay            +8,500  

     Magic Lantern Aircraft            +1,700  

     Health Scholarship Stipend        -9,000  

                                --------  

        Total                          +1,848  



                              MAGIC LANTERN                              



      The Committee recommends an increase of $1,700,000 over the request  

   in ``Reserve Personnel, Navy'', and $1,300,000 in ``Operation and       

   Maintenance, Navy'' to provide additional personnel, and operational and

   training costs in support of the Magic Lantern airborne mine detection  

   system.                                                                 

                           NAVY RESERVE FORCES                           



      The Committee is very concerned about possible Navy Program Review 99

   (PR 99) recommendations that would make major reductions in Navy Reserve

   hardware and combat/warfare missions. The Committee would find such     

   recommendations unacceptable and continues to believe the Navy Reserve  

   and other Reserve components should remain a viable component of the    

   Total Force. The Navy Reserve and other Reserve components are able to  

   retain force structure and equipment at lower cost than their active    

   counterparts. The Navy Reserve consumes only three percent of the       

   ``total Navy's'' budget, yet comprises nearly 20 percent of the force   

   structure. Elimination of or serious reductions in the remaining Navy   

   Reserve Air Wing, or the reliance on ``augment'' crews with no hardware 

   for Navy Reserve Air Wing, or the reliance on ``augment'' crews with no 

   hardware for Navy Reserve P 3 squadrons, would result in detrimental    

   problems for active and reserve Navy forces, seriously increase active  

   PERSTEMPO, and result in the loss of an experienced cadre of Reserve    

   personnel. Reductions in the Navy Reserve surface fleet, or denying new 

   surface fleet missions to the Navy Reserve, would adversely impact      

   active fleet manning and surface warfare capabilities.                  

      The Committee is aware that the Navy Reserve continues to right-size 

   its forces in lean budget years, and urges the Secretary of the Navy not

   to further reduce Navy Reserve forces. The Navy Reserve has already     

   downsized more and faster than any active or Reserve component, having  

   reduced force structure well over 30 percent since 1990. The Committee  

   strongly supports the current Navy Reserve missions, and fully expects  

   the Secretary of the Navy to consult with Congress prior to any final   

   recommendations that may further reduce Navy Reserve forces.            

                              RESERVE PERSONNEL, MARINE CORPS                     






                                                                               




                                                   




     Fiscal year 1997 appropriation       $388,643,000  

     Fiscal year 1998 budget request       381,070,000  

     Committee recommendation              391,953,000  

     Change from budget request            +10,883,000  



      The Committee recommends an appropriation of $391,953,000 for Reserve

   Personnel, Marine Corps. The recommendation is an increase of $3,310,000

   above the $388,643,000 appropriated for fiscal year 1997. The           

   adjustments to the fiscal year 1998 budget request are as follows:      




                                                                               

                           [In thousands of dollars]                           




                                           




     Annual Training/School Tours       +7,000  

     Basic Allowance for Quarters         +183  

     Reserve Duty Drill Pay             +3,700  

                                ---------  

        Total                          +10,883  



                                RESERVE PERSONNEL, AIR FORCE                      






                                                                               




                                                   




     Fiscal year 1997 appropriation       $783,697,000  

     Fiscal year 1998 budget request       814,936,000  

     Committee recommendation              814,772,000  

     Change from budget request               -164,000  



      The Committee recommends an appropriation of $814,772,000 for Reserve

   Personnel, Air Force. The recommendation is an increase of $31,075,000  

   above the $783,697,000 appropriated for fiscal year 1997. The           

   adjustments to the fiscal year 1998 budget request are as follows:      




                                                                               

                           [In thousands of dollars]                           




                                          




     Basic Allowance for Quarters        +266  

     Reserve Duty Drill Pay            +8,200  

     Health Scholarship Stipend        -8,800  

     WC 130 Weather Reconn               +170  

                                --------  

        Total                            -164  



                               NATIONAL GUARD PERSONNEL, ARMY                     






                                                                               




                                                     




     Fiscal year 1997 appropriation       $3,266,393,000  

     Fiscal year 1998 budget request       3,200,667,000  

     Committee recommendation              3,245,387,000  

     Change from budget request              +44,720,000  



      The Committee recommends an appropriation of $3,245,387,000 for      

   National Guard Personnel, Army. The recommendation is a decrease of     

   $21,006,000 below the $3,266,393,000 appropriated for fiscal year 1997. 

   The adjustments to the fiscal year 1998 budget request are as follows:  




                                                                               

                           [In thousands of dollars]                           




                                           




     School/Special Training           +10,000  

     Basic Allowance for Quarters       +1,520  

     Reserve Duty Drill Pay            +33,200  

                                ---------  

        Total                          +44,720  



                            NATIONAL GUARD PERSONNEL, AIR FORCE                   






                                                                               




                                                     




     Fiscal year 1997 appropriation       $1,296,490,000  

     Fiscal year 1998 budget request       1,319,712,000  

     Committee recommendation              1,331,417,000  

     Change from budget request              +11,705,000  



      The Committee recommends an appropriation of $1,331,417,000 for      

   National Guard Personnel, Air Force. The recommendation is an increase  

   of $34,927,000 above the $1,296,490,000 appropriated for fiscal year    

   1997. The adjustments to the fiscal year 1998 budget request are as     

   follows:                                                                




                                                                               

                           [In thousands of dollars]                           




                                           




     Basic Allowance for Quarters         +705  

     Reserve Duty Drill Pay            +11,000  

                                ---------  

        Total                          +11,705  





                                          TITLE II                                



                                  OPERATION AND MAINTENANCE                       





      The fiscal year 1998 budget request for Operation and maintenance is 

   $82,280,940,000 in new budget authority, which is an increase of        

   $3,117,718,000 above the amount appropriated in fiscal year 1997. The   

   request also includes a $150,000,000 cash transfer from the National    

   Defense Stockpile Transaction Fund.                                     

      The accompanying bill recommends $82,925,753,000 for fiscal year     

   1998, which is an increase of $644,813,000 from the budget request. In  

   addition, the Committee recommends that $150,000,000 be transferred from

   the National Defense Stockpile Transaction Fund.                        

      These appropriations finance the costs of operating and maintaining  

   the Armed Forces, including the reserve components and related support  

   activities of the Department of Defense (DoD), except military personnel

   costs. Included are pay for civilians, services for maintenance of      

   equipment and facilities, fuel, supplies and spare parts for weapons and

   equipment. Financial requirements are influenced by many factors,       

   including force levels such as the number of aircraft squadrons, Army   

   and Marine Corps divisions, installations, military personnel strength  

   and deployments, rates of operational activity, and the quantity and    

   complexity of equipment such as aircraft, ships, missiles and tanks in  

   operation.                                                              

                             OPERATION AND MAINTENANCE OVERVIEW                   



      While the Department has provided robust funding in the Operation and

   maintenance accounts to maintain the combat readiness of U.S. forces,   

   the Committee notes that there are critical funding shortfalls in the   

   fiscal year 1998 budget request. Further, the Committee is concerned    

   that these shortfalls may pose a serious near term risk to the          

   capabilities of U.S. forces. These shortfalls are evident in a number of

   functions financed by the Operation and maintenance accounts including  

   readiness related training, operating tempo programs, weapons system    

   maintenance, and real property maintenance. To correct these            

   deficiencies, the Committee recommends increased funding over the budget

   request in a number of areas including: Navy and Air Force flying hours,

   depot maintenance, real property maintenance, training rotations, force 

   protection, and inclement weather gear and other initial issue          

   equipment.                                                              

      The Committee also notes that there are areas in the Operation and   

   maintenance accounts where substantial savings are achievable. Given the

   widely recognized need to modernize the equipment available to U.S.     

   forces by increasing funding in the procurement, and research and       

   development accounts, the Committee believes it is imperative that the  

   Department use its Operation and maintenance funding as efficiently as  

   possible. Therefore, the Committee recommends certain reductions based  

   on recent DoD policy changes, particularly those emphasized in the      

   Quadrennial Defense Review, and fact of life changes that have occurred 

   since preparation of the budget request.                                

   The table summarizes the Committee's recommendations:                   





   Offet Folios 051 to 052 Insert here                                     





                        REAL PROPERTY MAINTENANCE                        



      The Committee has continuing concerns about the state of the         

   facilities in DoD, and the effect that such facilities have on the      

   quality of life of U.S. service personnel. The overview of the DoD      

   Operation and maintenance accounts indicates that in fiscal year 1998,  

   the backlog of real property maintenance and minor construction will    

   total over $16,000,000,000. The overview also shows the backlog growing 

   by over $1,600,000,000 from fiscal year 1997 to 1998. In order to arrest

   the growth in the backlog of RPM and address the shortfalls identified  

   by the Services and the Reserve components, the Committee recommends an 

   increase over the budget request of $924,840,000. Of this amount, the   

   Committee directs that the Department obligate not less than            

   $360,000,000 for the maintenance and repair of barracks, dormitories,   

   and related facilities.                                                 

                          FLYING HOUR SHORTFALL                          



      In the letter transmitting the Quadrennial Defense Review, the       

   Secretary of Defense highlighted a significant shortfall in the budget  

   request associated with Navy and Air Force flying hours. The Committee  

   understands that this shortfall stems primarily from significantly      

   higher than anticipated failure rates for a number of critical parts. To

   ensure that an adequate supply of parts is available to support the     

   operational and readiness training requirements of the Navy and Air     

   Force, the Committee recommends an increase over the budget request     

   totaling $622,000,000. The Committee also directs that the Secretary of 

   the Navy and the Secretary of the Air Force each provide a report to the

   congressional defense committees not later that December 1, 1997. In    

   addition to providing the data provided pursuant to the issues raised in

   the report accompanying the fiscal year 1998 Defense Authorization bill,

   this report should identify the specific causes of this shortfall, the  

   method used to estimate the cost of flying hours, the measures that will

   be taken to correct this situation in the fiscal year 1999 budget       

   request and over the Future Years Defense Program (FYDP), and any       

   proposed measures that may be needed to improve the models used to      

   estimate spare and repair parts usage and flying hour costs.            

                            READINESS TRAINING                           



      The budget request for readiness related training in both the Army   

   and the Marine Corps has significant shortfalls addressed by the        

   Committee's recommendations. The Army budget request calls for units    

   that are scheduled to conduct rotations at the National Training Center 

   (NTC) to absorb the cost of such rotations. In the Committee's view this

   is a significant policy change that has the effect of reducing funding  

   to maintain the readiness of the Army's combat units. To address this   

   situation as well as shortfalls identified by the Marine Corps, the     

   Committee recommends an increase totaling $99,013,000 above the budget  

   request. In addition, the Committee directs that the Army fully fund    

   rotations to the NTC in the fiscal year 1999 and subsequent years budget

   requests.                                                               



                            DEPOT MAINTENANCE                            



      The Committee continues to have concerns about DoD practices for the 

   funding of depot maintenance. For example, in the fiscal year 1998      

   budget request, the financial backlog of depot maintenance totals nearly

   $1,500,000,000, and grows by $180,000,000 from fiscal year 1997 to 1998.

   Further, the Services continue to routinely fund significantly less than

   the minimum amounts needed to meet depot maintenance requirements; for  

   example, the Army budget request for fiscal year 1998 funds only 58     

   percent of required depot maintenance. To address these shortfalls, the 

   Committee recommends an increase of $473,300,000 above the budget       

   request.                                                                

                  QUADRENNIAL DEFENSE REVIEW REDUCTIONS                  



      The Committee notes that the Quadrennial Defense Review (QDR)        

   proposes reducing the civilian workforce by 80,000 personnel from fiscal

   year 1998 through 2003. The Committee also recognizes that, due to the  

   timing of the completion and release of this study, the Department did  

   not have an opportunity to incorporate the results into the fiscal year 

   1998 budget request. The Committee commends the Department for embarking

   on a serious effort to reduce the size of the DoD support infrastructure

   and accordingly recommends a net reduction of $307,273,000 from the     

   budget request for the Services and Defense-Wide activities in          

   anticipation of several QDR-related savings initiatives described in    

   detail in subsequent portions of this report. The Committee also        

   recommends a restructuring reserve, discussed elsewhere in this report, 

   to ease the burden of reducing the size of the civilian workforce.      

                  HEADQUARTERS AND ADMINISTRATIVE COSTS                  



      In addition to the QDR initiatives discussed elsewhere in this       

   report, the Committee notes that the Department of Defense continues to 

   maintain an excessive administrative and headquarters infrastructure.   

   Based on fiscal year 1998 budget justification materials, the Department

   reports that it maintains a headquarters and administrative staff       

   totaling over 42,000 personnel and costing nearly $3 billion per year.  

   The Committee also observes that the number of personnel assigned to    

   administrative and headquarters activities is relatively constant       

   compared to the overall 3.5 percent reduction proposed for DoD civilian 

   personnel from fiscal year 1997 to 1998. To equalize the rate of        

   reduction in the headquarters and administrative activities as compared 

   to other activities in the Department, the Committee recommends a       

   reduction of $149,443,000 from the budget request.                      

                         INDUSTRIAL PREPAREDNESS                         



      The Committee observes significant growth in the industrial          

   preparedness subactivity in the Operation and maintenance accounts of   

   the Army, Navy and Air Force. Based on the recommendations of the       

   Quadrennial Defense Review to significantly reduce the infrastructure   

   maintained by the Department of Defense, the growth in these            

   subactivities appears to be out of step with the DoD strategy.          

   Therefore, the Committee recommends a reduction of $52,602,000 from the 

   budget request.                                                         

                      CONTINGENCY OPERATIONS FUNDING                     



      The Committee notes the Department's decision to exclude operations  

   in Southwest Asia from the ``Overseas Contingency Operations Transfer   

   Fund''. The Department realigned funding for these operations on the    

   grounds that they have become part of the recurring base of DoD         

   activity. While the Committee recognizes that U.S. operations in        

   Southwest Asia do not have a definitive end date, the Committee believes

   that separately identifying the cost of such operations provides        

   valuable insight into the amount budgeted to meet U.S. commitments.     

      Therefore, the Committee has realigned the Operation and maintenance 

   budget authority requested to support Southwest Asia, and placed these  

   funds in the ``Overseas Contingency Operations Transfer Fund''. The     

   Committee directs that DoD budget for all future operations costs for   

   Southwest Asia, and all other contingency operations in the ``Overseas  

   Contingency Operations Transfer Fund''. Further, the Committee directs  

   that in all future budget requests, DoD shall support the request for   

   all contingency operations by detailing the amount required in each     

   appropriation account for each operation within each theater of         

   operations. In addition, the Committee directs that in all future       

   supplemental requests the Department provide detailed data on the       

   incremental funding required for each appropriation account for each    

   operation within each theater of operations.                            



           REPROGRAMMING IN OPERATION AND MAINTENANCE ACCOUNTS           



      The Committee supports the concerns on the reprogramming of Operation

   and maintenance funds as expressed in the report accompanying the       

   House-passed Defense Authorization bill for fiscal year 1998 (House     

   Report 105 132). In particular, the Committee is concerned by the       

   mounting volume of audit materials prepared by the General Accounting   

   Office and other audit organizations which highlights the annual        

   migration of Operation and maintenance funds from those budget          

   activities and subactivities that have the most direct relationship to  

   the readiness of U.S. forces to other accounts that are required to fund

   the support infrastructure. The Committee is also disturbed by the      

   Department's inability to provide prior notification to the Committee,  

   as required by the House report accompanying the Department of Defense  

   Appropriations bill for fiscal year 1997 (House Report 104 208), on the 

   movement of funds from the readiness related activity and subactivity   

   groups. Therefore, the Committee supports the provision included in the 

   House-passed Defense Authorization bill for fiscal year 1998 requiring  

   DoD to follow customary reprogramming procedures for all Operation and  

   maintenance subactivity groups, and directs that the Department comply  

   with this provision.                                                    



     REPORTING ON THE EXECUTION OF REAL PROPERTY MAINTENANCE FUNDING     



      The Committee reiterates the recommendations contained in the report 

   accompanying the Military Construction Appropriations bill for fiscal   

   year 1998 on the need to develop better information on DoD expenditures 

   for major real property maintenance, and the relationship of these      

   expenditures to major military construction projects. Therefore, the    

   Committee directs that the Undersecretary of Defense (Comptroller)      

   provide a report to the Committee not later than April 30, 1998,        

   detailing all proposed major RPM projects expected to exceed $10,000,000

   to complete.                                                            

                 BUDGET JUSTIFICATION AND EXECUTION DATA                 



      The Committee continues to require detailed data in support of the   

   Department's proposed Operation and maintenance budget such as the O 1  

   presentation of the Operation and maintenance budget, including the     

   revisions to Budget Activity 1, Operating Forces, as reflected in the   

   fiscal year 1998 budget request for the Army. However, the Committee    
   also agrees with the observations of the House National Security        

   Committee in the report accompanying the House-passed Defense           

   Authorization bill that there are certain inconsistencies that should be

   remedied in upcoming budget submissions. In addition, the Committee     

   directs the Department to continue the submission of O 1 budget         

   execution data for each O 1 subactivity group. The Department shall     

   provide such data to the House and Senate Committees on Appropriations  

   within 60 days of the end of each quarter of the fiscal year.           

                     PURCHASES OF FOREIGN MADE GOODS                     



      The Committee has become aware of an apparent increase in the amount 

   of foreign made goods acquired by the Department of Defense through     

   small purchase procedures at bases throughout the U.S. Because the      

   Department does not have in place a system to track such small          

   purchases, the Committee directs the DoD Inspector General to conduct   

   random audits of small-purchases at U.S. military bases to determine how

   often foreign made products are acquired through the use of             

   small-purchase, local purchase, or micro-purchase procedures. The DoD   

   Inspector General should report to the House and Senate Committees on   

   Appropriations with its findings not later than April 30, 1998.         



                 ENVIRONMENTALLY SAFE FUEL STORAGE TANKS                 



      The Committee is aware of the continuing problem of underground fuel 

   storage tank leakage. Therefore, the Committee recommends that the      

   Department of Defense proceed with the program for above-ground,        

   environmentally-safe fuel storage tanks as described in the             

   recommendations of the report accompanying the House-passed Defense     

   Authorization bill for fiscal year 1998, and directs that $2,000,000 be 

   made available for this purpose within funds available for both the     

   Marine Corps and the Air Force.                                         



                         FEDERAL FIRE FIGHTER PAY                        



      The Committee is disturbed about the continuing lack of progress to  

   resolve the question of pay inequities between the fire fighters        

   employed by the federal government and their counterparts employed by   

   states and localities. The large majority of the approximately 10,000   

   full-time federal fire fighters work for the Department of Defense      

   protecting military installations. According to information supplied to 

   the Committee, a typical municipal fire fighter earns 89 percent more   

   per hour than a comparable federal fire fighter. The Committee          

   understands that the Office of Personnel Management has undertaken staff

   studies of this issue substantiating the claim that there are inequities

   in the pay calculation and supporting the proposition that pay          

   adjustments are warranted. Proposals to rectify this situation have not 

   moved forward due, in part, to past opposition from the Department of   

   Defense. The Committee believes these inequities hinder the federal     

   government's ability to recruit and retain qualified fire fighters      

   putting the safety of our service members and billions of dollars of    

   investment at risk. The Department is directed to reevaluate its        

   position on this issue with the primary goal of ensuring pay equity for 

   these employees and preserving a high quality fire fighting force. The  

   Department shall report to Congress no later than December 31, 1997 on  

   the results of this evaluation which shall include recommended          

   legislation to correct this situation.                                  

                        RECRUITING AND ADVERTISING                       



      The Committee recognizes that the military's recruiting mission is   

   becoming increasingly difficult and recommends an increase of           

   $22,900,000 over the budget request to support the Department's efforts 

   in recruiting and advertising.                                          

                           CLASSIFIED PROGRAMS                           



      Adjustments to classified operation and maintenance programs are     

   addressed in a classified annex accompanying this report.               

                              OPERATION AND MAINTENANCE, ARMY                     






                                                                               




                                                      




     Fiscal year 1997 appropriation       $17,519,340,000  

     Fiscal year 1998 budget request       17,049,484,000  

     Committee recommendation              17,078,218,000  

     Change from budget request                28,734,000  



      The Committee recommends an appropriation of $17,078,218,000 for     

   Operation and maintenance, Army. The recommendation is a decrease of    

   $441,122,000 below the amount appropriated for fiscal year 1997.        

            LOW RATE INITIAL PRODUCTION (LRIP) FOR ABRAMS XXI            



      The Committee supports the action taken by the House National        

   Security Committee on this program in its recommendations for the fiscal

   year 1998 Defense Authorization bill. The Committee urges the Department

   to consider a plan for the refurbishment of M1A1 tanks under the        

   Department of the Army's Abrams Integrated Management XXI (AIM XXI)     

   program if the Secretary of Defense determines that the program is cost 

   effective. In addition, if this program is successfully validated, the  

   Committee expects the Army to include adequate funding in the fiscal    

   year 1999 budget request.                                               

                            DEPOT MAINTENANCE                            



      The Committee recommends increasing Army depot maintenance funding by

   $169,700,000 above the budget request. The Committee remains concerned  

   about backlogs in the repair and maintenance of communications and      

   electronic equipment. Accordingly, $53,000,000 of the total depot       

   maintenance increase is allocated to the U.S. Army                      

   Communications-Electronics Command Battlefield Communications Review    

   program, for performance at Army depots, of the following workloads:    

   $25,000,000 for repair/maintenance of Mobile Subscriber Equipment       

   shelters, prime movers, and accessories or support equipment;           

   $20,000,000 for the repair/maintenance of Non-Integrated Communications 

   Secure and Integrated Communications Secure SINCGARS radios and         

   accessories or support equipment; and $8,000,000 for the repair,        

   maintenance or modification of the AN/TS 85 and AN/TSC 93 Tactical      

   Satellite Communications Terminals, associated antenna systems,         

   accessories or support equipment.                                       

                    NATIONAL TRAINING CENTER ROTATIONS                   



      As expressed elsewhere in this report, the Committee is troubled by  

   the reduced level of funding requested by the Army in fiscal year 1998  

   for rotations at the National Training Center (NTC). In addition, the   

   Committee is concerned that the Army's decision to reduce the number of 

   annual troop rotations at the National Training Center from 12 to 10    

   could adversely affect readiness. The Committee will be closely         

   monitoring this change for any adverse effects on the readiness of Army 

   units.                                                                  

                        ARMY LOGISTICS AUTOMATION                        



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                       HIGH RISK AUTOMATION SYSTEMS                      



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 059 to 060 Insert here                                    





      The adjustments to the budget activities for Operation and           

   maintenance, Army are shown below:                                      



          [In thousands of dollars]                                               



   Budget Activity 1: Operating Forces:                                    







          250 Readiness Training--NTC Rotation Shortfall                60,213







          250 Parachute Maintenance and Repair                2,000







          250 Flying Hour Efficiencies                -17,000







          650 Depot Maintenance--Other                111,000







          650 Depot Maintenance--Communications and Electronics                53,000







          650 Depot Maintenance--Aviation Depot Maintenance Plan Equipment                5,700







          750 Organizational Clothing and Equipment (Increment I)                20,000







          750 Range Safe System                2,700







          750 Ft. Irwin, George AFB Airhead                1,300







          950 Fort Gordon Center for Total Access (Telemedicine)                5,400



   Budget Activity 2: Mobilization:                                        







          1300 Industrial Preparedness--Nominal Growth                -19,004



   Budget Activity 3: Training and Recruiting:                             







          1500 Service Academies--Foreign Students                -1,400







          2200 Recruiting and Advertising                7,000







          2350 Civilian Education and Training                -2,852







          2400 Indian University Northwest JROTC Mentoring Program                750



   Budget Activity 4: Administration and Servicewide Activities:           







          2850 Central Logistics--SSTS, Depot Maintenance, SDT                22,000







          2850 Army Logistics Automation                11,200







          3000 Headquarters and Administrative Activity Reduction                -48,001







          3200 Eisenhower Center                2,000







          3350 Laser Leveling            1,500







          3350 FEMP                      -45,000



   Other Adjustments:                                                      







          3710 Classified Undistributed                -6,895







          3715 Civilian Personnel Understrength                -33,300







          3730 Foreign Currency Fluctuation                -19,000







          3770 High Risk Automation Systems                -25,000







          3785 Real Property Maintenance                232,000







          3790 TDY Expenses              -19,930







          3795 QDR--Civilian Personnel Reductions                -140,347







          3800 Contingency Operations Transfer--Southwest Asia                -80,300







          3815 Non-BRAC Caretaker Status                -51,000





                               OPERATION AND MAINTENANCE, NAVY                    






                                                                               




                                                       




     Fiscal year 1997 appropriation        $20,061,961,000  

     Fiscal year 1998 budget request        21,508,130,000  

     Committee recommendation               21,779,365,000  

     Change from budget request                271,235,000  





      The Committee recommends an appropriation of $21,779,365,000 for     

   Operation and maintenance, Navy. The recommendation is an increase of   

   $1,717,404,000 above the amount appropriated for fiscal year 1997.      

                          CNET DISTANCE LEARNING                         



      The Committee directs that the Chief of Naval Education and Training 

   (CNET), as the Navy's organization responsible for training technology, 

   continue efforts that will lead to maximizing returns on technology     

   investment in distance learning and computer mediated learning. This    

   would include developing more efficient use of the Internet for training

   requirements, developing models for appropriate applications of training

   technologies and developing models to assess leadership training        

   effectiveness. The Committee recommends adding $2,000,000 above the     

   budget request for this effort.                                         



                  NATIONAL OCEANOGRAPHY PARTNERSHIP ACT                  



      The Committee encourages DoD efforts to implement the goals of the   

   National Oceanography Act by addressing the backlog of military         

   hydrographic survey requirements. Accordingly, the Committee directs    

   that within available funds, the Navy apply $7,500,000 for additional   

   ship-years as directed by the House report accompanying the House-passed

   Defense Authorization bill for fiscal year 1998.                        

                    SOFTWARE PROGRAM MANAGERS NETWORK                    



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                       HIGH RISK AUTOMATION SYSTEMS                      



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                           ASBESTOS ERADICATION                          



      The Committee is concerned about the environmental challenge         

   associated with the disposal of large volumes of asbestos from the      

   Navy's surface fleet and submarine inactivation programs. The Committee 

   is aware of an asbestos disposal process that offers great potential for

   solving this current problem, a mineral conversion process that changes 

   the asbestos to a stable non-hazardous mineral. This thermochemical     

   conversion process has been tested on a variety of asbestos-containing  

   materials from actual abatement sites with great success. A commercially

   viable transportable production system, capable of processing           

   substantial amounts of asbestos per day has been demonstrated with the  

   Department of Energy and approved by the Environmental Protection       

   Agency. Accordingly, the Committee provides $2,000,000 only for the     

   development of an asbestos thermochemical conversion pilot plant, to be 

   used in conjunction with the ongoing submarine inactivation program at  

   Puget Sound Naval Shipyard.                                             

                           ELECTROTECHNOLOGIES                           



      The Committee recommends an increase of $5,500,000 in Environmental  

   Compliance only for evaluating and demonstrating electrotechnologies and

   other environmental technologies at Naval Station Mayport as the East   

   Coast demonstration base for the Navy Environmental Leadership Program. 

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 063 to 064 Insert here                                    





      The adjustments to the budget activities for Operation and           

   maintenance, Navy are shown below:                                      



          [In thousands of dollars]                                               



   Budget Activity 1: Operating Forces:                                    







          4400 Flying Hour Program Shortfalls                322,000







          4600 Depot Maintenance--Aviation Backlog                149,000







          5000 Depot Maintenance--Unfunded Ship Availabilities                75,000







          5550 Reverse Osmosis Desalinators--Refurbishment                500







          5950 Gun Weapon Overhaul and Support, Louisville                15,900







          5950 Ship Self Defense System (SSDS) Equipment--Wallops Island                6,000



   Budget Activity 2: Mobilization:                                        







          6650 Industrial Preparedness--Nominal Growth                -28,493



   Budget Activity 3: Training and Recruiting:                             







          6900 Service Academies--Foreign Students                -1,400







          7100 Bancroft Hall Renovation Program                -31,500







          7300 Naval Postgraduate School--Laboratory Improvements                2,000







          7300 Professional Development Education--Nominal Growth                -5,973







          7350 CNET--Distance Learning                2,000







          7550 Recruiting and Advertising                7,000







          7650 Civilian Education and Training                -1,022



   Budget Activity 4: Administration and Servicewide Activities:           







          8000 Defense Computer Investigations Training Program/Computer Forensics Lab                8,500







          8000 Headquarters and Administrative Activity Reduction                -47,580







          8300 FEMP                      -25,000







          8600 ATIS                      4,000



   Other Adjustments:                                                      







          9360 Classified Undistributed                1,902







          9365 Software Program Managers Network                6,000







          9365 High Risk Automation Systems                -25,000







          9390 Civilian Personnel Understrength                -108,300







          9415 Electrotechnologies                5,500







          9420 Other Contracts--Program Growth                -29,719







          9425 Real Property Maintenance                98,540







          9430 TDY Expenses              -12,060







          9435 QDR--Civilian Personnel Reductions                -34,960







          9440 Asbestos Eradication                2,000







          9445 Contingency Operations Transfer--Southwest Asia                -84,900







          9450 Magic Lantern             1,300





                           OPERATION AND MAINTENANCE, MARINE CORPS                






                                                                               




                                                     




     Fiscal year 1997 appropriation       $2,254,119,000  

     Fiscal year 1998 budget request       2,301,345,000  

     Committee recommendation              2,598,032,000  

     Change from budget request              296,687,000  



      The Committee recommends an appropriation of $2,598,032,000 for      

   Operation and maintenance, Marine Corps. The recommendation is an       

   increase of $343,913,000 above the amount appropriated for fiscal year  

   1997.                                                                   

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 066 Insert here                                           





      The adjustments to the budget activities for Operation and           

   maintenance, Marine Corps are shown below:                              

          [In thousands of dollars]                                               







   Budget Activity 1: Operating Forces:                                    







          10050 Readiness Training--Operating Forces Training Support                38,800







          10050 Initial Issue (Clothing/Body Armor/Bivouac gear)                20,700







          10150 Depot Maintenance Backlog Reduction                25,000







          10200 Personnel Support Equipment                25,400







          10200 Base Support             10,000



   Budget Activity 3: Training and Recruiting:                             







          10700 Base Support             10,000







          11050 Base Support             10,000







          11200 Recruiting and Advertising                4,400



   Budget Activity 4: Administration and Servicewide Activities:           







          11800 Base Support             10,000







          11800 FEMP                     -10,000



   Other Adjustments:                                                      







          11935 Real Property Maintenance                154,100







          11940 QDR--Civilian Personnel Reductions                -1,713



    Environmentally Safe Fuel Storage Tanks                                



 (2,000)                                                                 





                            OPERATION AND MAINTENANCE, AIR FORCE                  






                                                                               




                                                      




     Fiscal year 1997 appropriation       $17,263,193,000  

     Fiscal year 1998 budget request       18,817,785,000  

     Committee recommendation              18,740,167,000  

     Change from budget request               -77,618,000  



      The Committee recommends an appropriation of $18,740,167,000 for     

   Operation and maintenance, Air Force. The recommendation is an increase 

   of $1,476,974,000 above the amount appropriated for fiscal year 1997.   

                      INSTRUMENT ROUTES 102 AND 141                      



      The Committee recognizes the need for Air Force low altitude training

   and strongly supports this requirement. The Committee urges the Air     

   Force to give every consideration to public comments and community      

   concerns in the impacted areas when utilizing Instrument Routes 102 and 

   141 for such training. The Air Force should report to the congressional 

   defense committees by March 31, 1998 on possible alternative routes.    

       AIR FORCE MANUFACTURING TECHNOLOGY ASSISTANCE PILOT PROGRAM       



      The Air Force Manufacturing Technology Assistant Pilot Program       

   (MTAPP) will strengthen and expand the service's manufacturing supplier 

   base by improving the manufacturing skills and business practices of    

   small to medium sized businesses, particularly those with an established

   non-defense background. Accordingly, the Committee supports the Air     

   Force MTAPP program and recommends that the service allocate $2,000,000 

   of available funds for this program.                                    

                             MISAWA ANTENNAS                             



      The Committee directs the Air Force to allocate $300,000 of the      

   additional infrastructure funding provided in this bill to the repair   

   and maintenance of the antennas at the Misawa Cryptologic Operations    

   Center.                                                                 

               children's association for maximum potential              



      The Committee recommends an increase of $500,000 above the budget    

   request to support completion of the CAMP facility at Lackland Air Force

   Base, Texas, and directs that this increase in funding be used only for 

   the purpose of supporting this program.                                 

                                  REMIS                                  



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                       HIGH RISK AUTOMATION SYSTEMS                      



      Information on this project can be found in the Information Resources

   Management section of this report.                                      



                    AIR FORCE INSTITUTE OF TECHNOLOGY                    



      The Air Force proposes eliminating new student starts at the         

   in-residence programs of the Air Force Institute of Technology (AFIT) in

   fiscal year 1998. Although the Air Force proposal is explained for      

   budgetary reasons, no comprehensive cost-benefit study has been         

   undertaken recently. Therefore, the Committee includes a general        

   provision (Section 8086) prohibiting the Air Force from sending to      

   civilian institutions graduate students who would otherwise attend AFIT.

   The Committee further directs that the National Academy of Sciences do a

   complete cost-benefit analysis including the value of research done by  

   faculty and graduate students, to be provided to the Committee not later

   than April 1, 1998.                                                     

                         MALMSTROM AIR FORCE BASE                        



      The Committee believes that the Air Force should maintain the        

   airfield at Malmstrom AFB, Montana including the runways at the         

   airfield. The existing runway and facilities at Malmstrom are in        

   excellent condition and, for that reason, the National Aeronautics and  

   Space Administration has identified this site as a possible facility for

   future testing and program development.                                 

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 070 to 071 Insert here                                    





      The adjustments to the budget activities for Operation and           

   maintenance, Air Force are shown below:                                 

          [In thousands of dollars]                                               





   Budget Activity 1: Operating Forces:                                    







          12600 Flying Hour Program Shortfalls                300,000







          12600 Battle Labs              1,000







          12850 Force Protection--Base Physical Security                12,100







          12850 Force Protection--Air Base Ground Defense                5,800







          12850 Force Protection--Antiterrorism                5,300







          12850 Force Protection--NBC Defense Program                3,100







          12850 Force Protection--Contingency Operations                1,500







          13100 SIMVAL                   2,800







          13250 JFACC Situational Awareness System (JSAS)                3,000



   Budget Activity 2: Mobilization:                                        







          13850 Depot Maintenance--KC 135 DPEM                54,600







          13950 Industrial Preparedness--Nominal Growth                -5,105



   Budget Activity 3: Training and Recruiting:                             







          14300 Service Academies--Foreign Students                -1,400







          14700 Professional Development Education--Nominal Growth                -20,466







          14950 Recruiting and Advertising                4,500







          15100 Civilian Education and Training                -2,351



   Budget Activity 4: Administration and Servicewide Activities:           







          15350 Supply Asset Tracking System (SATS at ACC Installations)                5,000







          15500 FEMP                     -33,000







          15650 Defense Computer Investigations Training Program/Computer Forensics Lab                2,700







          15650 Headquarters and Administrative Activity Reduction                -53,862







          15950 CAMP                     500







          16050 Civil Air Patrol                800



   Other Adjustments:                                                      







          16410 Classified Undistributed                8,500







          16415 Civilian Personnel Understrength                -70,000







          16430 Foreign Currency Fluctuation                -10,000







          16475 REMIS                    8,900







          16475 High Risk Automation Systems                -25,000







          16490 Other Contracts--Program Growth                -93,981







          16495 Chemical/Biological Defense--PACOM                10,000







          16500 Contingency Operations Transfer--Southwest Asia                -459,900







          16505 Real Property Maintenance                358,200







          16510 TDY Expenses             -20,000







          16515 QDR--Civilian Personnel Reductions                -76,253



    Environmentally Safe Fuel Storage Tanks                                



 (2,000)                                                                 




                           OPERATION AND MAINTENANCE, DEFENSE-WIDE                






                                                                               




                                                            




     Fiscal year 1997 appropriation             $10,044,200,000  

     Fiscal year 1998 budget request             10,390,938,000  

     Committee recommendation                    10,066,956,000  

     Change from budget request                    -323,982,000  



      The Committee recommends an appropriation of $10,066,956,000 for     

   Operation and Maintenance, Defense-Wide. The recommendation is an       

   increase of $22,756,000 from the amount appropriated in fiscal year     

   1997.                                                                   



                              JCS EXERCISES                              



      In the Quadrennial Defense Review, DoD announced its plans to        

   decrease the number of man-days required for joint exercises in fiscal  

   year 1998 to 15 percent below the level of fiscal year 1996. Given the  

   high demands of ongoing operations, this reduction is a prudent step to 

   avoid overstressing the military forces required to perform these       

   operations. The Committee supports this measure and recommends a        

   reduction of $50,000,000 to the budget request, consistent with the     

   House-passed Defense Authorization bill.                                

                        SPECIAL OPERATIONS COMMAND                       



      The Committee recommends an increase of $43,100,000 above the budget 

   request for the United States Special Operations Command. These         

   additional funds will meet the unfunded requirements for                

   counterproliferation, readiness and OPTEMPO. The Committee also         

   recommends $3,300,000 within this amount only to outfit Special         

   Operations Forces aircrews with Goretex-Nomex flight suits.             



                          within-grade increases                         



      In the budget request, the Defense Contract Audit Agency requested an

   increase to cover ``within-grade increases''. While individual employees

   are entitled to within-grade or ``step'' increases, for an agency those 

   increases are usually offset by employees who are promoted and go back  

   to step one, or retire at a high step and are replaced by new employees 

   at step one. Thus the average ``step'' within an agency, like the       

   average grade, should not be gradually increasing over time. The DCAA   

   request is therefore unique among all DoD activities. The Committee     

   denies this increase and reduces the DCAA budget request by $2,500,000  

   accordingly.                                                            



                  DEFENSE FINANCE AND ACCOUNTING SERVICE                 



      The Defense Finance and Accounting Service (DFAS) is financed through

   the Defense Working Capital Fund (DWCF). The fund is designed to capture

   all the relevant costs to run DFAS and to reflect those costs in the    

   prices that DFAS charges its customers. The Committee is concerned that 

   the budget request proposes to shift out of the DWCF costs that are part

   of DFAS operating costs.                                                

      DFAS developed, designed and fielded its Property Accountability     

   System using resources from the DWCF. The Committee believes that any   

   upgrade to this system should also be paid for out of the DWCF and      

   reduces the request accordingly by $16,500,000.                         

      The Executive and Professional Training program primarily pays for   

   the training of employees who are paid from the DWCF. While the         

   Committee supports having a highly trained workforce, it believes that  

   training is an inherent part of any organization's operating costs and  

   thus should be paid for from within the DWCF. The Committee therefore   

   reduces the request by $30,154,000.                                     

      Finally, the budget requests $45,000,000 as the first increment of a 

   $117,000,000 renovation project. The Committee notes that DoD and the   

   General Services Administration have not yet reached the agreement that 

   is necessary to begin this project. In addition, the budget proposes to 

   pay for the renovation using appropriated funds even though the payback 

   on this renovation will be directly to the DWCF. The Committee also     

   notes the concern expressed in the House-passed Defense Authorization   

   bill, which denied authorization for this request and noted that a      

   renovation of this size is likely to be outside the scope of a standard 

   maintenance and repair project and may need to be funded as a military  

   construction project. As a result, the budget request is reduced by     

   $45,000,000.                                                            

                  DEFENSE HUMAN RESOURCES FIELD ACTIVITY                 



      To improve operating efficiency and reduce costs, DoD combined the   

   former Defense Civilian Personnel Management Service with the Defense   

   Manpower Data Center to form the Defense Human Resources Field Activity 

   (DHRFA). The budget request for the new DHRFA is $138,935,000, the sum  

   of the two activities' individual budgets. The Committee believes that  

   the budget for the new organization should reflect at least some of the 

   savings expected to result from the reorganization and thus recommends a

   reduction of $2,000,000.                                                

                    WHITE HOUSE COMMUNICATIONS AGENCY                    



      The budget requested $63,945,000 for the White House Communications  

   Agency (WHCA), which is managed by the Defense Information Systems      

   Agency (DISA). The Committee agrees to the realignment of $7,200,000    

   from Operation and Maintenance, Defense-Wide to Procurement,            

   Defense-Wide as requested by the Director, DISA. After accounting for   

   inflation, the shift of funds to procurement, and other program         

   realignments, the requested funding for this activity still shows net   

   growth of $4,910,000, only a portion of which WHCA has been able to     

   adequately justify. The Committee therefore recommends a reduction of   

   $8,200,000 in Operation and Maintenance, Defense-Wide and an increase of

   $7,200,000 in Procurement, Defense-Wide.                                

                      AUTOMATED DOCUMENT CONVERSION                      



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                 IMPROVED CARGO METHODS AND TECHNOLOGIES                 



      The Committee believes cost saving opportunities exist to integrate  

   the latest private sector logistics research, transport technology, and 

   security developments into the practices and procedures for moving      

   military cargo around the United States and around the world. The bill  

   includes $3,000,000 only to continue work initiated in fiscal year 1997 

   in conjunction with a not-for-profit foundation operating exclusively as

   a trucking research institute to: (1) continue the examination of       

   private sector practices as they may relate to the transport of         

   containerized ammunition, to include the development of multi-modal     

   standards, and ammunition configuration requirements; (2) evaluate U.S. 

   commercial third-party logistics providers to determine the most        

   efficient public-private partnership structures to meet readiness       

   requirements and to identify ways to streamline the third-party         

   selection process by the Department; and (3) study the current cargo    

   security environment in the context of national defense and assess the  

   feasibility of implementing an efficient information partnership between

   motor carriers, the Department, and the law enforcement community to    

   include development of a nation-wide cargo theft reporting system       

   modeled after the real time database, Cargo Tips.                       

                            dla--dwcf transfer                           



      Within the Defense Logistics Agency, the budget requests $42,900,000 

   to cover the cost of transferring certain programs from the Defense     

   Working Capital Fund (DWCF) to Operation and Maintenance, Defense-Wide. 

   A review of these programs indicates, however, that only those items    

   related to hazardous waste handling are appropriate to transfer out of  

   the DWCF. The Committee therefore recommends a reduction of $36,000,000.

                              SECURITY LOCKS                             



      The Committee recommends an addition to the budget request of        

   $25,000,000 only for the Security Lock Retrofit program. The Committee  

   understands that these funds are sufficient for DoD to meet all         

   validated requirements for this upgrade.                                

                    FEDERAL ENERGY MANAGEMENT PROGRAM                    



      The Committee is concerned that the Federal Energy Management Program

   (FEMP) within the Department of Defense has been seriously eroded.      

   Estimates show that only a fraction of the funds provided for this      

   function were actually used to reduce energy use and costs.             

      The Department of Defense is central to the government's efforts to  

   reduce energy costs. Over 70 percent of the energy consumed by the      

   Federal Government is used to heat, light, cool and operate Department  

   of Defense facilities at a cost of nearly $3 billion a year. Energy     

   efficiency improvements can save DoD almost $2 billion per year in      

   utility bills and energy system maintenance operations. The Committee   

   believes that the focus on energy efficiency should not be limited to   

   FEMP projects, but should be a consideration in every maintenance and   

   repair project.                                                         

      The Committee therefore provides $15,000,000 to the central FEMP     

   account to assist DoD in reducing its energy costs.                     

                  MILITARY PERSONNEL INFORMATION SYSTEM                  



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                        ENVIRONMENTAL RESTORATION                        



      The United States government has recently completed an exchange of   

   letters with the Canadian government regarding the return of several    

   U.S. military facilities in Canada. Consistent with this agreement, the 

   budget requests $10,200,000 in Operation and Maintenance, Defense-Wide  

   for the first in a series of payments to cover the cost of environmental

   restoration at those sites. Since this expense deals with environmental 

   restoration at what were mostly Air Force sites, the Committee believes 

   that it is more appropriate to pay for it out of the Environmental      

   Restoration, Air Force account. The Committee therefore recommends a    

   reduction of $10,200,000 to Operation and Maintenance, Defense-Wide and 

   has adjusted the general provision proposed in the budget request       

   accordingly.                                                            



                       OSD COMMISSIONS AND STUDIES                       



      The Committee is very disappointed to learn that special studies and 

   commissions initiated by the Office of the Secretary of Defense are not 

   subject to the same level of fiscal review as normal funding requests.  

   Although this problem pre-dates the current DoD leadership, the         

   Committee is concerned that this problem will continue absent senior    

   management attention. The Committee therefore directs the Department to 

   report no later than November 30, 1997 on the steps it is taking to     

   correct this deficiency.                                                



                           TRAVEL REENGINEERING                          



      The Travel Project Management Office (TPMO) was created in fiscal    

   year 1997 to reengineer the DoD's temporary duty (TDY) travel process.  

   Under the proposed reengineering concept all temporary duty travel      

   functions are to be processed through a highly integrated management    

   information system. While the Committee supports the reengineering      

   effort, it is concerned that this project is moving ahead without taking

   the necessary steps, such as a formal cost effectiveness study. The     

   Committee therefore recommends a reduction of $14,300,000 to the budget 

   request to continue this effort, but at its fiscal year 1997 level.     

                       HIGH RISK AUTOMATION SYSTEMS                      



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

          QUADRENNIAL DEFENSE REVIEW--DEFENSE AGENCY REDUCTIONS          



      In the Quadrennial Defense Review, the Department proposed reducing  

   all defense agencies ``by 6 percent, as a down payment until a detailed 

   follow-up review is completed by November 30, 1997''. The Committee     

   supports this effort, currently being carried out by the Task Force on  

   Defense Reform and includes a reduction to the budget request of        

   $72,000,000 or two percent in fiscal year 1998 as an initial increment. 

   The Committee recommendation specifically excludes the National Foreign 

   Intelligence Program, Special Operations Command and the Department of  

   Defense Dependents Schools from its calculation and directs the         

   Department not to apply any of the $72,000,000 reduction to those       

   activities. This does not prohibit the Task Force from including those  

   organizations in its study.                                             

                        QDR RESTRUCTURING RESERVE                        



      The Committee recognizes that there is an up-front cost to any major 

   restructuring effort and therefore recommends an increase of $18,000,000

   to the budget request to be used only for facilitating the downsizing of

   defense agencies and headquarters' activities pursuant to the findings  

   of the Task Force on Defense Reform cited above. The Committee further  

   directs that the Department provide 30 days prior notification to the   

   Committee on any proposed use of these funds.                           

                          USE OF RE-REFINED OIL                          



      The Committee notes that the statistics compiled by the Federal      

   Environmental Executive, established by Executive Order 12873, shows    

   that during fiscal years 1994 and 1995, the Department of Defense's     

   re-refined oil purchases were only 1.5 percent of its total oil         

   purchases for those years. The Committee notes that using re-refined oil

   conserves valuable natural resources, protects the environment and      

   reduces U.S. dependence on imported fuels. The Committee therefore      

   encourages the Department of Defense to increase its use of re-refined  

   fuels to the maximum extent practical.                                  

                                NUTRITION                                



      The Committee believes that proper diet and nutrition play an        

   important role in providing for a high quality of life in the military. 

   In order to enhance our military's diet, the Committee requests the     

   Department report on the potential benefits of increasing the quantity  

   of beef, lamb and chevon meats in meals provided servicemembers.        



                             VINT HILL FARMS                             



      The Committee is concerned about the costs associated with building  

   demolition and asbestos removal at Vint Hill Farms in Fauquier County,  

   Virginia, an Army facility closing as a result of the 1993 Base         

   Realignment and Closure Commission. It is estimated that 49 percent of  

   the existing structures at Vint Hill Farms do not meet current standards

   and require remediation estimated at $30,000,000. The Committee urges in

   the strongest possible terms that the Department of Defense assist the  

   community with said demolition and asbestos removal.                    

                          DEPARTMENT OF DEFENSE DEPENDENTS SCHOOLS                



                               ADJUSTMENTS                               



      The Committee recommends a net increase of $4,000,000 over the budget

   request for the Department of Defense Dependents Schools (DoDDS). The   

   Committee agreed to several adjustments based on the Committee's Survey 

   and Investigative (S&I) staff's survey of the fiscal year 1998 budget   

   request. The Committee recommends a reduction of $11,000,000 from the   

   budget request for an error to the fiscal year 1997 baseline, which had 

   the effect of increasing the fiscal year 1998 request by this amount. In

   addition, the Committee recommends a reduction of $10,000,000 for       

   unliquidated balances. The S&I staff reported that there has been a     

   trend in the increase of unused obligations from fiscal year 1994       

   through fiscal year 1997, even though the DoDDS school program has been 
   relatively stable over the years. Finally, the Committee recommends an  

   increase of $20,000,000 to be applied to the backlog of Real Property   

   Maintenance.                                                            

                  FAMILY COUNSELING AND CRISIS SERVICES                  



      In addition to the adjustments above, the Committee recommends an    

   increase of $5,000,000 to the budget request in the Department of       

   Defense Dependents Schools (DoDDS) account only for enhancements to     

   Family Advocacy programs. The Committee directs the Department to use   

   these additional funds for expansion of counseling and crisis services, 

   treatment options and solutions for children of active duty members     

   between the ages of 7 18 years who have emotional and behavioral        

   problems. The Committee recommends that these services be provided by   

   organizations accredited with commendation from the Joint Commission on 

   Accreditation Health Care Organizations, and that have associated       

   research centers and offer a full continuum of care.                    

                      Social Work Fellowship Program                     



      The Committee urges the Department to fund predoctoral or            

   postdoctoral fellowships for social work researchers to examine the     

   process, outcome, and cost-effectiveness of military family advocacy    

   programs, with particular attention to issues of family violence and    

   child maltreatment. The Department of the Air Force's current           

   postdoctoral initiative with the Department of Agriculture and the      

   Institute for the Advancement of Social Work Research is a model for    

   this type of cooperative sponsorship program.                           

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 079 Insert here                                           





      The adjustments to the budget activities for Operation and           

   Maintenance, Defense-Wide are shown below:                              





          [In thousands of dollars]                                               



   Budget Activity 1: Operating Forces:                                    







          17050 JCS Exercises            -50,000







          17100 SOCOM                    43,100



   Budget Activity 3: Training and Recruiting:                             







          17400 DAU--Continuing Acquisition Education                -3,900



   Budget Activity 4: Administration and Servicewide Activities:           







          17800 Classified and Intelligence                -98,261







          17900 DCAA--Within Grade Increases                -2,500







          17950 DFAS--Property Accountability System                -16,500







          17950 DFAS--Executive and Professional Training                -30,154







          17950 DFAS--Facility Renovation                -45,000







          18000 DHRFA--Operations                -2,000







          18050 DISA--White House Communications Agency                -8,200







          18200 DLA--Automated Document Conversion                30,000







          18200 DLA--Security Locks                25,000







          18200 DLA--Procurement Technical Assistance Program                17,000







          18200 DLA--DPSC Demolition                15,000







          18200 DLA--Cargo Methods and Technologies                3,000







          18200 DLA--Blankets            -2,400







          18200 DLA--DWCF transfer                -36,000







          18500 DoDDS--Real Property Maintenance                20,000







          18500 DoDDS--Family Counseling and Crisis Services                5,000







          18500 DoDDS--Unobligated Balances                -10,000







          18500 DoDDS--Baseline Adjustment                -11,000







          18550 Federal Energy Management Program                15,000







          18600 JCS--Travel and Administrative Costs                -2,000







          18650 Monterey Institute Counter-Proliferation Analysis                9,000







          18700 OSD--Military Personnel Information System                5,000







          18700 OSD--First Responder Training                1,300







          18700 OSD--C3I Mission and Analysis Fund                -10,000







          18700 OSD--Environmental Restoration                -10,200







          18700 OSD--Administrative Savings                -20,000







          18700 OSD--Civil/Military Programs                -31,867







          18800 OSIA--Treaty Requirements                -11,200







          18900 WHS--Travel Reengineering                -14,300



   Other Adjustments:                                                      







          18970 Civilian Personnel Understrength                -33,900







          18980 Impact Aid               35,000







          19010 High Risk Automation Systems                -15,000







          19030 Pentagon Renovation Fund--Swing Space Costs                -9,500







          19045 Defense Automated Printing Service                -15,000







          19065 Center for the Study of the Chinese Military                5,000







          19085 Contingency Operations Transfer--Southwest Asia                -9,500







          19090 QDR Defense Agency Reductions                -72,000







          19095 QDR Restructuring Reserve                18,000





                          OPERATION AND MAINTENANCE, ARMY RESERVE                 






                                                                               




                                                      




     Fiscal year 1997 appropriation        $1,119,436,000  

     Fiscal year 1998 budget request        1,192,891,000  

     Committee recommendation               1,207,891,000  

     Change from budget request               +15,000,000  



      The Committee recommends an appropriation of $1,207,891,000 for      

   Operation and maintenance, Army Reserve. The recommendation is an       

   increase of $88,455,000 above the $1,119,436,000 appropriated for fiscal

   year 1997.                                                              

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 081 Insert here                                            





      The adjustments to the budget activities for Operation and           

   maintenance, Army Reserve are shown below:                              




                           [In thousands of dollars]                           




                                                            




     xlBudget Activity 1: Operating Forces:                      

       19700 Maintenance of Real Property                +5,000  

       19850 Training Operations, Ground OPTEMPO        +10,000  



         COMMERCIAL CONSTRUCTION AND MATERIAL HANDLING EQUIPMENT         



      The Committee understands that a large amount of the Commercial      

   Construction and Material Handling Equipment inventory, such as motor   

   graders and scrapers, for the Army Reserve is approaching the fifteen   

   year service life threshold. The Committee is aware of the significant  

   cost savings and readiness improvements that can be gained with the     
   Extended Service Program of older items of equipment in the inventory,  

   and urges the Army Reserve to continue the rebuild program.             

                     RESERVE UNITS IN CENTRAL FLORIDA                    



      The Committee understands that once the Orlando Naval Training Center

   is closed that several Army, Navy and Marine Corps Reserve units        

   residing on this base will have to be moved to other locations in       

   Central Florida. The Committee directs the Department to report to the  

   Committee, by March 1, 1998, detailing the individual Reserve units     

   involved, and the possibility of constructing a joint complex. In       

   addition, the report should provide details on the resulting cost       

   savings to be achieved by co-locating units.                            



                          OPERATION AND MAINTENANCE, NAVY RESERVE                 






                                                                               




                                                    




     Fiscal year 1997 appropriation        $886,027,000  

     Fiscal year 1998 budget request        834,711,000  

     Committee recommendation               924,711,000  

     Change from budget request             +90,000,000  



      The Committee recommends an appropriation of $924,711,000 for        

   Operation and maintenance, Navy Reserve. The recommendation is an       

   increase of $38,684,000 above the $886,027,000 appropriated for fiscal  

   year 1997.                                                              

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 083 Insert here                                            







      The adjustments to the budget activities for Operation and           

   maintenance, Navy Reserve are shown below:                              




                                                                               

                           [In thousands of dollars]                           




                                                            




     xlBudget Activity 1: Operating Forces:                      

       21200 Aircraft Depot Maintenance                 +10,000  

     xlOther Adjustments:                                        

       22760 NSIPS                                      +43,500  

       22765 Contingency Operations Transfer--SWA          -500  

       22770 Maintenance of Real Property               +37,000  



                                  NSIPS                                  



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                  NAVY RESERVE CENTER IN MANSFIELD, OHIO                 



      The Committee understands that the Navy Reserve has included funds in

   the fiscal year 1998 budget request for remediation activities at the   

   former Naval Reserve Center in Mansfield, Ohio. The Committee directs   

   the Navy to proceed with the site-cleanup of these vacant buildings     

   during fiscal year 1998.                                                

                      OPERATION AND MAINTENANCE, MARINE CORPS RESERVE             






                                                                               




                                                    




     Fiscal year 1997 appropriation        $109,667,000  

     Fiscal year 1998 budget request        110,366,000  

     Committee recommendation               119,266,000  

     Change from budget request              +8,900,000  



      The Committee recommends an appropriation of $119,266,000 for        

   Operation and maintenance, Marine Corps Reserve. The recommendation is  

   an increase of $9,599,000 above the $109,667,000 appropriated for fiscal

   year 1997.                                                              

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 085 Insert here                                            





      The adjustments to the budget activities for Operation and           

   maintenance, Marine Corps Reserve are shown below:                      




                                                                               

                           [In thousands of dollars]                           




                                                      




     xlBudget Activity 1: Operating Forces:                

       23450 Training, M1A1 tank                   +3,900  

       23500 Operating Forces, Initial Issue       +5,000  





                        OPERATION AND MAINTENANCE, AIR FORCE RESERVE              






                                                                               




                                                     




     Fiscal year 1997 appropriation       $1,496,553,000  

     Fiscal year 1998 budget request       1,624,420,000  

     Committee recommendation              1,635,250,000  

     Change from budget request              +10,830,000  



      The Committee recommends an appropriation of $1,635,250,000 for      

   Operation and maintenance, Air Force Reserve. The recommendation is an  

   increase of $138,697,000 above the $1,496,553,000 appropriated for      

   fiscal year 1997.                                                       

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 087 Insert here                                            





      The adjustments to the budget activities for Operation and           

   maintenance, Air Force Reserve are shown below:                         




                                                                               

                           [In thousands of dollars]                           




                                                                              




     xlBudget Activity 1: Operating Forces:                                        

       25050 Maintenance of Real Property                                 +10,000  

     xlBudget Activity 4: Administration and Servicewide Activities:               

       25510 WC 130 Weather Reconnaissance                                   +830  



                  wc-130 weather reconnaissance mission                  



      The Committee continues to strongly believe that the weather         

   reconnaissance mission is critical to the protection of Defense         

   installations and the entire population living along the east and Gulf  

   coasts of the United States. Section 8026 has been included which       

   prohibits funds to reduce or disestablish the operation of the 53rd     

   Weather Reconnaissance Squadron (Hurricane Hunters) of the Air Force    

   Reserve if such action would reduce the Weather Reconnaissance mission  

   below the levels funded in this Act. The level specifically funded in   

   this Act is to support a stand alone squadron with dedicated 10 PAA     

   aircraft, 20 line assigned aircrews, evenly divided between Air Reserve 

   Technician (ART) and Reserve aircrews. The Committee directs the Air    

   Force to provide a minimum of 3,000 flying hours to perform tropical    

   cyclone and winter storm reconnaissance missions, aircrew training,     

   counterdrug support, and airland missions in support of contingency     

   operations during the non-hurricane season or slow periods during the   

   season. The Committee insists that this important mission and flying    

   hours be provided and funded in accordance with this direction. The     

   Committee has also provided an additional $1,000,000 in the personnel   

   and operation and maintenance accounts, and directs that these funds be 

   used for additional manning for this squadron to meet maintenance       

   shortfalls. The Committee directs the Air Force to submit future budget 

   requests reflecting this year's direction.                              

      The Committee is aware that advancements in two pilot cockpit        

   technology do not provide an adequate margin of safety in the unique and

   dangerous hurricane reconnaissance missions that range from tropical    

   storms to category 5 hurricanes which have winds in excess of 200 miles 

   per hour. The Committee is pleased that the Air Force agrees with user  

   recommendations to include a fully equipped augmented crew station to be

   manned by a navigator in all WC 130J aircraft and directs that the final

   operational requirements document reflect this decision.                

                          MARCH AIR RESERVE BASE                         



      The Committee understands that an agreement was recently signed      

   between the Department of the Air Force and the March Joint Powers      

   Authority to form a joint use airport. In addition, the community is    

   discussing with the Air Force the possibility of making improvements to 

   the existing navigational aids and construction of a commercial jet fuel

   project at this airport. The Committee directs the Air Force to report  

   to the Committee by December 15, 1997, on the need and military         

   necessity for the improved navigational aids and construction of a      

   commercial jet fuel capability to March Air Reserve Base, the funding   

   required, and whether these improvements are warranted in order to      

   accommodate commercial aircraft at this airport.                        

                       OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD             






                                                                               




                                                      




     Fiscal year 1997 appropriation        $2,254,477,000  

     Fiscal year 1998 budget request        2,258,932,000  

     Committee recommendation               2,313,632,000  

     Change from budget request               +54,700,000  



      The Committee recommends an appropriation of $2,313,632,000 for      

   Operation and maintenance, Army National Guard. The recommendation is an

   increase of $59,155,000 above the $2,254,477,000 appropriated for fiscal

   year 1997.                                                              

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 090 Insert here                                            





      The adjustments to the budget activities for Operation and           

   maintenance, Army National Guard are shown below:                       




                                                                               

                           [In thousands of dollars]                           




                                                                              




     xlBudget Activity 1: Operating Forces:                                        

       26250 Training Operations, Ground OPTEMPO                          +20,000  

       26250 Training Operations, Angel Gate Academy                       +4,200  

       26250 Training Operations, Laser Leveling                             +500  

       26400 Depot Maintenance                                             +5,000  

       26500 Maintenance of Real Property                                 +10,000  

     xlBudget Activity 4: Administration and Servicewide Activities:               

       26910 Chemical/Biological Mission Studies                          +10,000  

       26915 Software Acquisition and Security Training                    +5,000  





     DOMESTIC CHEMICAL/BIOLOGICAL COUNTER TERRORISM MISSION PLANNING     



      The Committee strongly supports the recommendations of the Secretary 

   of Defense in the May 1997 Quadrennial Defense Review to assign the     

   National Guard with the new role of countering chemical and biological  

   terrorism in the United States. The Committee believes this mission is a

   natural complement to other current National Guard missions such as     

   disaster assistance and counter-drugs which have given the Guard the    

   ability to develop effective working relationships with state and local 

   officials in the law enforcement, firefighting, and emergency medical   

   communities. The National Guard is the ideal organization to transfer   

   specialized military knowledge and expertise to the local domestic level

   according to long standing norms and practices in this country.         

      The Committee expects this mission to be comprehensively and         

   aggressively pursued. This will require a detailed planning effort to   

   develop a comprehensive program that is fully coordinated and integrated

   with other relevant organizations within the Department of Defense, with

   other federal agencies, and with state and local authorities. In this   

   respect, the Committee believes it is important that each state be given

   the opportunity and resources to develop detailed components of this    

   plan relating to their own special circumstances under the overall      

   guidance the National Guard Bureau.                                     

      The Committee recommends $10,000,000 for detailed planning and       

   concept studies that will assist the National Guard to:                 

       (1) define and clarify the National Guard mission compared to the   

   roles of other federal/state and local authorities with similar         

   responsibilities;                                                       

    (2) develop a capability to understand the threat;                     



    (3) train Guard personnel and state/local first responders;            



       (4) evaluate and acquire new chemical/biological defense technology;

   and                                                                     

    (5) develop appropriate response plans.                                



       Mission Definition. Currently, many federal, state, and local       

   agencies have fragmented and sometimes overlapping responsibilities for 

   different aspects of domestic emergency preparedness. Federal agencies  

   with significant responsibilities range from FEMA, to HHS, to DOE, to   

   the FBI. There are, of course, literally thousands of state and local   

   law enforcement agencies, emergency medical departments, and fire       

   departments with different levels of expertise and responsibility that  

   play the primary role in responding to emergencies. A first critical    

   stage for the National Guard will be to sort out its roles and          

   responsibilities compared to all other relevant organizations in        

   accordance with applicable law.                                         

       Threat Assessment. Funds should be used to develop detailed plans to

   determine what information is routinely required to understand the      

   threat posed by different terrorist groups that may operate in the U.S.,

   the capabilities of different chemical and biological weapons they may  

   come to possess, what vulnerability assessments on key local facilities 

   such as subways should be conducted, and other key data. This effort    

   should also catalog and identify who can provide key information on a   

   routine and ongoing basis, how such information is to be collected and  

   disseminated, and what new capabilities are required.                   

       Training. Funds should be used to devise a comprehensive, long term 

   training regimen for appropriate Guard personnel, law enforcement       

   personnel, firefighters, emergency medical personnel and other federal, 

   state and local officials on all aspect of chemical/biological defense, 

   including field training exercises. Rather than creating an entirely new

   training establishment for this mission, the Committee believes the     

   existing National Guard training structure for the counter-drug mission 

   in conjunction with enhanced use of the distance learning network would 

   be cost effective and should be used to the maximum extent possible.    

   This effort must also be fully coordinated with the plans and programs  

   of the Assistant Secretary of Defense for Special Operations and Low    

   Intensity Conflict, the DoD Office of Emergency Preparedness, the Army  

   Chemical and Biological Defense Command, and the Marine Corps' Chemical 

   Biological Incident Response Force.                                     

       Technology. Funds should be used to structure a continuing National 

   Guard program for testing and evaluating chemical/biological defense    

   equipment that is available to the National Guard and to state and local

   authorities as well as to determine specific requirements for new       

   technology.                                                             

       Response Plans. Funds should be used to assess the quality of       

   existing chemical/biological incident response plans around the country,

   and devise a plan for identifying shortfalls and taking corrective      

   action. This effort should include significant input from individual    

   state authorities.                                                      

      The Committee expects this comprehensive effort to leverage existing 

   federal assets, programs, and contract activities to the maximum extent 

   feasible. The Committee believes there is a rich source of existing     

   intelligence, research capability, facilities, and technology at the    

   federal level that can be focused to meet this new mission requirement. 

      The Army National Guard shall submit a report to the congressional   

   defense committees no later than February 1, 1998 explaining in detail  

   how these funds will be used, and setting detailed milestones for future

   planning and implementation of this mission.                            

                SOFTWARE ACQUISITION AND SECURITY TRAINING               



      The Committee recommends an increase of $5,000,000 above the budget  

   request only to use the Distance Learning Network to deliver            

   standardized courseware to train and certify National Guard and         

   Department of Defense personnel in the areas of software acquisition    

   management and information security.                                    

                        OPERATION AND MAINTENANCE, AIR NATIONAL GUARD             






                                                                               




                                                          




     Fiscal year 1997 appropriation            $2,716,379,000  

     Fiscal year 1998 budget request            2,991,219,000  

     Committee recommendation                   2,995,719,000  

     Change from budget request                    +4,500,000  



      The Committee recommends an appropriation of $2,995,719,000 for      

   Operation and maintenance, Air National Guard. The recommendation is an 

   increase of $279,340,000 above the $2,716,379,000 appropriated for      

   fiscal year 1997.                                                       

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 094 Insert here                                            





      The adjustments to the budget activities for Operation and           

   maintenance, Air National Guard are shown below:                        




                                                                               

                           [In thousands of dollars]                           




                                                                  




    Budget Activity 1: Operating Forces:                              

       27650 Aircraft Operations, 159th Fighter Group          +1,500  

       27850 Depot Maintenance                                 +3,000  



                  159th air national guard fighter group                 



      The Committee recommends an increase of $1,500,000 over the budget   

   request in Operation and Maintenance, Air National Guard, and directs   

   that these funds be used for the operation of C 130H operational support

   aircraft of the 159th ANG Fighter Group.                                

                        OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND             






                                                                               




                                                          




     Fiscal year 1997 appropriation            $1,140,157,000  

     Fiscal year 1998 budget request            1,467,500,000  

     Committee recommendation                   1,855,400,000  

     Change from budget request                  +387,900,000  



      The Committee recommends an appropriation of $1,855,400,000 for the  

   Overseas Contingency Operations Transfer Fund. The recommendation is an 

   increase of $715,243,000 from the amount appropriated in fiscal year    

   1997.                                                                   

                     UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES          






                                                                               




                                                      




     Fiscal year 1997 appropriation            $6,797,000  

     Fiscal year 1998 budget request            6,952,000  

     Committee recommendation                   6,952,000  

     Change from budget request                            



      The Committee recommends an appropriation of $6,952,000 for the      

   United States Court of Appeals for the Armed Forces. The recommendation 

   is an increase of $155,000 from the amount appropriated in fiscal year  

   1997.                                                                   

                               ENVIRONMENTAL RESTORATION, ARMY                    






                                                                               




                                                        




     Fiscal year 1997 appropriation            $339,109,000  

     Fiscal year 1998 budget request            377,337,000  

     Committee recommendation                   377,337,000  

     Change from budget request                              



      The Committee recommends an appropriation of $377,377,000 for        

   Environmental Restoration, Army. The recommendation is an increase of   

   $38,228,000 from the amount appropriated in fiscal year 1997.           

                          ROCKY MOUNTAIN ARSENAL                         



      The Committee believes that priority should continue to be given to  

   the implementation of the ten-year cleanup plan for the Rocky Mountain  

   Arsenal property that has been agreed to by the Army, the U.S. Fish and 

   Wildlife Service, the Environmental Protection Agency, the State of     

   Colorado and the Shell Oil Company.                                     



                               ENVIRONMENTAL RESTORATION, NAVY                    






                                                                               




                                                    




     Fiscal year 1997 appropriation        $287,788,000  

     Fiscal year 1998 budget request        277,500,000  

     Committee recommendation               277,500,000  

     Change from budget request                          



      The Committee recommends an appropriation of $277,500,000 for        

   Environmental Restoration, Navy. The recommendation is a decrease of    

   $10,288,000 from the amount appropriated in fiscal year 1997.           

                        NAVAL AIR STATION BERMUDA                        



      In 1995, the U.S. Navy closed its air station on the island of       

   Bermuda. A study commissioned by the Government of Bermuda conducted a  

   comprehensive environmental assessment that found evidence of           

   underground storage tanks that were leaking oil, a cave filled with     

   abandoned industrial waste, lead and solvents in excessive of           

   permissible levels and asbestos. The Committee notes that DoD policy    

   directs DoD Components to take ``prompt action to remedy known imminent 

   and substantial danger to human health and safety'' that is due to      

   environmental contamination caused by DoD operations, even when dealing 

   with DoD installations that have already been returned to a host nation.

   The Committee therefore directs the Secretary of the Navy to review the 

   environmental study provided by the Government of Bermuda to determine  

   any potential responsibilities and obligations and to provide to the    

   Committee a report on this review not later than October 31, 1997.      

                            ENVIRONMENTAL RESTORATION, AIR FORCE                  






                                                                               




                                                    




     Fiscal year 1997 appropriation        $394,010,000  

     Fiscal year 1998 budget request        378,900,000  

     Committee recommendation               378,900,000  

     Change from budget request                          



      The Committee recommends an appropriation of $378,900,000 for        

   Environmental Restoration, Air Force. The recommendation is a decrease  

   of $15,110,000 from the amount appropriated in fiscal year 1997.        

                          ENVIRONMENTAL RESTORATION, DEFENSE-WIDE                 






                                                                               




                                                   




     Fiscal year 1997 appropriation        $36,722,000  

     Fiscal year 1998 budget request        27,900,000  

     Committee recommendation               27,900,000  

     Change from budget request                         



      The Committee recommends an appropriation of $27,900,000 for         

   Environmental Restoration, Defense-wide. The recommendation is a        

   decrease of $8,822,000 from the amount appropriated in fiscal year 1997.



                   ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES         






                                                                               




                                                    




     Fiscal year 1997 appropriation        $256,387,000  

     Fiscal year 1998 budget request        202,300,000  

     Committee recommendation               202,300,000  

     Change from budget request                          



      The Committee recommends an appropriation of $202,300,000 for        

   Environmental Restoration, Formerly Used Defense Sites. The             

   recommendation is a decrease of $54,087,000 from the amount appropriated

   in fiscal year 1997.                                                    

                                 NEWMARK                                 



      The Committee understands that both the Environmental Protection     

   Agency and the City of San Bernardino believe that the Newmark and      

   Muscoy plume contamination in San Bernardino, California is a direct    

   result of industrial waste from a World War II depot and maintenance    

   facility (Camp Ono). Report language in the conference report           

   accompanying the fiscal year 1997 DoD Appropriations Bill highlighted   

   the urgency of this problem and requested prompt action by the          

   Department of Defense. Because the Department has not adequately        

   responded to last year's report language concerning this important      

   issue, the Committee directs the DoD, within 90 days of enactment of    

   this Act, to provide a report to the Committee which fully explains the 

   Department's current and future plans relating to its role in the       

   cleanup of the Newmark/Muscoy site.                                     



                       OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID             






                                                                               




                                                     




     Fiscal year 1997 appropriation          $49,000,000  

     Fiscal year 1998 budget request          80,130,000  

     Committee recommendation                 55,557,000  

     Change from budget request              -24,573,000  



      The Committee recommends an appropriation of $55,557,000 for Overseas

   Humanitarian, Disaster, and Civic Aid. The recommendation is an increase

   of $6,557,000 from the amount appropriated in fiscal year 1997.         
                          HUMANITARIAN DEMINING                          



      The budget requests $80,130,000 for Overseas Humanitarian, Disaster, 

   and Civic Aid. This is an increase of $31,130,000 over the fiscal year  

   1997 levels. While the Committee believes an across the board increase  

   of this scope is unwarranted, it does support the Department's increased

   efforts in Humanitarian Demining. The Committee therefore recommends a  

   reduction of only $24,573,000.                                          



                            FORMER SOVIET UNION THREAT REDUCTION                  






                                                                               




                                                     




     Fiscal year 1997 appropriation         $327,900,000  

     Fiscal year 1998 budget request         382,200,000  

     Committee recommendation                284,700,000  

     Change from budget request              -97,500,000  



      The Department requested $382,200,000 for Cooperative Threat         

   Reduction (CTR) programs. The Committee recommends $284,700,000, a      

   reduction of $97,500,000, consistent with the House-passed Defense      

   Authorization bill. The Committee recommends the following reductions:  




                                                                               




                                                             




     Weapons Storage Security                       -$12,500,000  

     Reactor Core Conversion                         -41,000,000  

     Chemical Weapons Destruction                    -41,000,000  

     Defense and Military Contacts (Belarus)          -1,000,000  

     Other Assessments                                -2,000,000  



      These reductions are due to: availability of prior year funds        

   (Weapons Storage, -$12,500,000); lack of an implementing agreement      

   (Reactor Core Conversion, -$41,000,000); lack of proper costing data,   

   justification or site (Chemical Weapons Destruction, -$41,000,000); and,

   lack of certification (Defense and Military Contacts, -$1,000,000) and  

   reduced administrative requirements (Other, -$2,000,000).               

      In addition, the Committee also notes that current unobligated       

   balances for CTR are in excess of $600,000,000. This slow execution rate

   has been a pattern throughout the history of this program. The Committee

   believes that the Department should pay closer attention to the         

   management of these funds and therefore recommends that fiscal year 1998

   CTR funds be available for obligation only for 3 years.                 

                           QUALITY OF LIFE ENHANCEMENTS, DEFENSE                  






                                                                               




                                                      




     Fiscal year 1997 appropriation          $600,000,000  

     Fiscal year 1998 budget request                    0  

     Committee recommendation                           0  

     Change from budget request                         0  



      Budget request did not include, and the Committee recommends no      

   funding for, Quality of Life Enhancements, Defense. The recommendation  

   is a decrease of $600,000,000 below the amount appropriated in fiscal   

   year 1997.                                                              

      As described elsewhere in this report, the Committee continues its   

   vigorous support for improvements to the quality of life for Service    

   personnel. The Committee has recommended an increase of $360,000,000    

   above the budget request (out of a total real property maintenance      

   increase of $924,840,000 above the budget requet) for improvements to   

   barracks, dormitories and related facilities. The Committee designates  

   this increased funding as a special interest item, subject to prior     

   approval reprogramming procedures discussed elsewhere in this report.   



                                          TITLE III                               



                                         PROCUREMENT                              



                            ESTIMATES AND APPROPRIATION SUMMARY                   



      The fiscal year 1998 Department of Defense procurement budget        

   requests totals $41,585,178,000. The accompanying bill recommends       

   $45,515,962,000. The total amount recommended is an increase of         

   $3,930,784,000 above the fiscal year 1998 budget estimate and is        

   $1,700,478,000 above the total provided in fiscal year 1997. The        

   Committee recommendation includes $850,000,000 for National Guard and   

   Reserve Equipment. The table below summarizes the budget estimates and  

   the Committee's recommendations:                                        



   Offset Folio 100 Inserts Here                                           





                     REDUCED USE OF SOLVENT ADHESIVES                    



      With the enactment of the Pollution Prevention Act, Congress         

   recognized that there are significant opportunities for industry to     

   reduce or prevent pollution at the source through cost-effective changes

   in manufacturing production, operations, and raw material use. The Act  

   states that source reduction is more desirable than waste management or 

   pollution control. The Committee believes that there are many products  

   procured by the military which can be manufactured with a substantial   

   reduction of solvents used in the manufacturing process. In particular, 

   many materials used in products must be joined together in the          

   manufacturing process with multiple coats of solvent adhesives. The     

   Committee urges the Defense Department to purchase products which are   

   manufactured in a manner that minimizes the use of solvent adhesives    

   during manufacturing because it reduces pollution at its source and is  

   cost effective.                                                         

                       ALTERNATIVE FUELED VEHICLES                       



      The DoD requested authorization to procure 811 passenger vehicles in 

   fiscal year 1998. The Committee approves the DoD request for passenger  

   vehicles.                                                               

      Public Law 102 486 (Sec. 303) directs that of the total number of    

   vehicles acquired in fiscal year 1998 by a federal fleet, at least 50   

   percent must be alternative fueled vehicles. The Committee directs the  

   Secretary of Defense to procure, within available funds, alternative    

   fueled vehicles to comply with P.L 102 486 (Sec. 303). The alternative  

   fueled vehicles are to include, but not be limited to, natural gas and  

   electric vehicles.                                                      

          commander's tactical terminal/joint tactical terminal          



      The Committee is aware that an ongoing contract protest is preventing

   the Services from procuring the Joint Tactical Terminal (JTT). The      

   Committee understands how critical it is for commanders to have the     

   capability to receive data and supports the Services in the procurement 

   of the Commander's Tactical Terminal (CTT) to meet their immediate      

   requirements. The Committee approves the budget request for CTT/JTT     

   procurement with the understanding that the Services continue to use    

   these funds and prior year funds to procure CTTs until the JTT contract 

   is awarded.                                                             

                           CLASSIFIED PROGRAMS                           



      Adjustments to classified procurement programs are addressed in a    

   classified annex accompanying this report.                              

                                 AIRCRAFT PROCUREMENT, ARMY                       









          Fiscal year 1997 appropriation                $1,348,434,000







          Fiscal year 1998 budget request                1,029,459,000







          Committee recommendation                1,541,217,000







          Change from budget request                +511,758,000







      This appropriation finances the acquisition of tactical and utility  

   airplanes and helicopters, including associated electronics, electronic 

   warfare, and communications equipment and armament, modification of     

   in-service aircraft; ground support equipment, components and parts such

   as spare engines, transmissions, gear boxes, and sensor equipment. It   

   also funds related training devices such as combat flight simulators and

   production base support.                                                

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                                                                               

                                   [In thousands of dollars]                                   




Item                                  Budget request    Committee recommended    Change from request  




Short range UAV                                    0                   20,000                +20,000  

C 12 Cargo Mods                                  613                    6,613                 +6,000  

Aircraft Survivability Equipment                 905                   15,705                +14,800  





                                         FIXED WING                               



                         GUARDRAIL COMMON SENSOR                         



      The Army requested $3,388,000 for the Guardrail Common Sensor (GRCS).

   The Committee recommends $13,046,000 an increase of $9,658,000. Of this 

   amount, $3,000,000 is to upgrade the Communication High Accuracy        

   Airborne Location System (CHAALS) capability to the GRCS system in      

   Korea; and $6,658,000 is to complete the fielding of the GRCS program   

   embedded training requirement.                                          

                                        ROTARY WING                               



                             UH 60 BLACKHAWK                             



      The Army requested $183,231,000 for UH 60 Blackhawk helicopters. The 

   Committee recommends $309,231,000, an increase of $126,000,000. Of the  

   increase, $64,000,000 is only to procure eight additional Blackhawk     

   helicopters for the Army National Guard (ARNG), $56,000,000 is only to  

   procure four Blackhawk derivatives (CH 60) for the Naval Reserve, and   

   $6,000,000 is only for modification kits to configure three of the ARNG 

   aircraft as enhanced medical evacuation models.                         

      The Army's budget submission to the Secretary of Defense did not     

   include funding for Blackhawk production. The Office of the Secretary of

   Defense added funding to the Army budget for Blackhawks to maintain the 

   current multi-year contract until the Navy begins procuring a Blackhawk 

   variant in fiscal year 2000. In testimony to the Committee, the Army    

   stated that it has satisfied the active Army's warfighting requirement  

   for Blackhawks and has no plans to procure additional aircraft in the   

   near future. In contrast, the ARNG has a pressing need to update its    

   utility helicopter fleet. Therefore, the Committee directs that the 18  

   helicopters requested in the fiscal year 1998 budget request be provided

   only to the National Guard. The Committee notes that the Army has       

   planned for 18 aircraft in fiscal year 1999 and directs that adequate   

   funding for the multi-year contract be submitted with the fiscal year   

   1999 budget request.                                                    

      In fiscal year 1997, the Committee provided an additional 6 Blackhawk

   helicopters to the Army. The Committee directs that one of the 1997     

   aircraft is to replace the Blackhawk loaned to the Navy for the VERTERP 

   Demonstration Program.                                                  

                              KIOWA WARRIOR                              



      The Army requested $38,822,000 for Kiowa Warrior helicopters. The    

   Committee recommends $213,822,000, an increase of $175,000,000. Of the  

   increase, $151,700,000 is only for Kiowa Warrior production and         

   $23,300,000 is only for safety enhancements. The Committee notes that   

   fiscal year 1998 is the second year that the Army has not funded Kiowa  

   Warrior safety modifications and has identified the item as an unfunded 

   requirement. Given the importance of the safety modification program,   

   the Committee directs the Army to provide sufficient funds in the fiscal

   year 1999 budget request.                                               

                       EH 60 QUICKFIX MODIFICATIONS                      



      The Army requested $38,140,000 for the EH 60 Quickfix mods. The      

   Committee recommends $44,640,000, an increase of $6,500,000 to procure  

   Ground Based Common Sensor/AQF institutional training devices.          

                            ASE MODIFICATIONS                            



      The Army requested $4,578,000 for ASE modifications. The Committee   

   recommends $19,078,000, an increase of $14,500,000. Of the additional   

   funds, $7,000,000 is only to procure and install AN/AVR 2A laser        

   detecting sets and $7,500,000 is only for the Advanced Threat Infrared  

   Countermeasures/Common Missile Warning System for the Longbow Apache    

   helicopter.                                                             

                                  OTHER SUPPORT EQUIPMENT                         



                             TRAINING DEVICES                            



      The Army requested no funds for training devices. The Committee      

   recommends $9,300,000 only for improved flight simulators which include 

   geographic specific data-bases.                                         

                         COMMON GROUND EQUIPMENT                         



      The Army requested $30,636,000 for common ground equipment. The      

   Committee recommends $27,636,000, a decrease of $3,000,000 which was    

   budgeted for the Air Traffic Navigation, Integration and Coordination   

   System (ATNAVICS). Subsequent to the fiscal year 1998 budget submission,

   the Committee learned that the budget did not include funding to        

   complete ATNAVICS testing. Therefore, the Committee has transferred     

   funds not required for procurement to research and development.         

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 104 Inserts Here                                           





                                 MISSILE PROCUREMENT, ARMY                        






                                                                               




                                                      




     Fiscal year 1997 appropriation        $1,041,867,000  

     Fiscal year 1998 budget request        1,178,151,000  

     Committee recommendation                 771,942,000  

     Change from budget request              -406,209,000  



      This appropriation finances the acquisition of surface-to-air,       

   surface-to-surface, and anti-tank/assault missile systems. Also included

   are major components, modifications, targets, test equipment, and       

   production base support.                                                

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action.                          




                                                                                 

                            [In thousands of dollars]                            




Item                Budget request     Committee recommendation    Change from request  




Stinger Mods                12,411                       21,711                 +9,300  



                                       OTHER MISSILES                             



                                 PATRIOT                                 



      The Army requested $349,109,000 for Patriot. The Committee recommends

   transferring this amount to the Ballistic Missile Defense Organization  

   in the ``Procurement, Defense-Wide'' appropriation, as proposed in the  

   House-passed Defense Authorization bill.                                

                                 HELLFIRE                                



      The Army requested $279,687,000 for procurement of Hellfire missiles.

   The Committee recommends $228,287,000, a decrease of $51,400,000. This  

   decrease includes a GAO recommended reduction of $5,400,000 for unused  

   prior year Hellfire II engineering change order (ECO) funding, a GAO    

   recommended reduction of $38,300,000 to Longbow Hellfire for overstated 

   missile requirements, and a reduction of $7,700,000 for tooling. With   

   regard to Longbow missile quantities, a recent GAO audit report states, 

   ``The Army used an outdated helicopter carrying capability of 16        

   missiles instead of the current 12, double counted missiles when        

   figuring the residual readiness portion of the requirement, and used an 

   unsubstantiated mix ratio between Longbow Hellfire and Hellfire II      

   missiles. Correcting these mistakes would potentially reduce the current

   12,722 missile requirement for Longbow Hellfire missiles by 7,145       

   missiles.'' The report goes on to identify limitations in Apache        

   carriage that could lead to reductions of another 1,184 missiles. The   

   DoD response did not dispute any of these GAO observations, but simply  

   stated it will consider an updated acquisition strategy for the fiscal  

   year 1999 budget. Given these circumstances, the Committee does not     

   believe that the 50 percent ramp-up in production in fiscal year 1998   

   compared to fiscal year 1997 nor procurement of additional tooling in   

   fiscal year 1998 is prudent until these requirement issues are resolved.

                               MLRS ROCKET                               



      The Army requested $2,863,000 for MLRS Extended Range (MLRS ER)      

   rockets. The Committee recommends $14,863,000, an increase of           

   $12,000,000. While preparing its fiscal year 1998 budget, the Army      

   shifted funds from the MLRS ER rockets line-item to the launcher        

   line-item. At the time of submission of the budget, the Army hoped that 

   foreign military sales (FMS) would be sufficient to maintain the rocket 

   production line. However, the Army has since learned that FMS has not   

   materialized as expected and therefore requires an additional           

   $12,000,000 in the rockets line-item to maintain the production base.   

   The Committee therefore recommends increasing MLRS rocket funding by    

   $12,000,000 with an equal reduction to the MLRS launcher program.       

                          MLRS LAUNCHER SYSTEMS                          



      The Army requested $102,649,000 for MLRS Launchers. The Committee    

   recommends $105,649,000, a net increase of $3,000,000. The recommended  

   adjustment includes a $12,000,000 decrease to finance MLRS rocket       

   production as discussed above, and a $15,000,000 increase only for      

   Vehicular Intercommunication System (VIS) upgrades to MLRS vehicles.    

                                   BAT                                   



      The Army requested $85,208,000 for production of the BAT submunition.

   The Committee recommends $45,208,000, a decrease of $40,000,000 equating

   to a reduction of 165 BAT submunitions. The BAT submunition will be     

   deployed on ATACMS Block II missiles which do not enter production until

   fiscal year 1999. The Committee believes that the quantity reduction can

   be accommodated with little impact to the fiscal year 1999 ATACMS Block 

   II production program.                                                  

                                  MODIFICATION OF MISSILES                        



                               PATRIOT MODS                              



      The budget requests $20,825,000 for modifications to the Patriot     

   missile. The Committee recommends $30,825,000, an increase of           

   $10,000,000 only for procurement of additional GEM +/- upgrades.        

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 107 Insert Here                                            







                  PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY        






                                                                               




                                                     




     Fiscal year 1997 appropriation       $1,470,286,000  

     Fiscal year 1998 budget request       1,065,707,000  

     Committee recommendation              1,332,907,000  

     Change from budget request             +267,200,000  



      This appropriation finances the acquisition of tanks; personnel and  

   cargo carriers; fighting vehicles; tracked recovery vehicles;           

   self-propelled and towed howitzers; machine guns; mortars; modification 

   of in-service equipment; initial spares; and production base support.   

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                [In thousands of dollars]                                




Item                           Budget  request    Committee recommended    Change from request  




Improved Recovery Vehicle               28,601                   56,401                +27,800  

Armor Machine Gun                            0                   20,000                +20,000  



                                   TRACKED COMBAT VEHICLES                        



                         BRADLEY BASE SUSTAINMENT                        



      The Army requested $125,591,000 for Bradley base sustainment. The    

   Committee recommends $240,591,000, an increase of $115,000,000 only to  

   modify Bradley AO variants to the ODS variant for the Army National     

   Guard.                                                                  

                FIELD ARTILLERY AMMUNITION SUPPORT VEHICLE               



      The Army requested no funds for the Field Artillery Ammunition       

   Support Vehicle (FAASV). The Committee recommends $40,000,000 only to   

   procure two battalion sets for the Army National Guard.                 

                          MODIFICATION OF TRACKED COMBAT VEHICLES                 



                          CARRIER MODIFICATIONS                          



      The Army requested $20,244,000 for carrier modifications. The        

   Committee recommends $28,644,000, an increase of $8,400,000 only to     

   procure night vision driver viewers for the M113A3.                     

                       howitzer, 155mm m109A6 (mod)                      



      The Army requested $18,706,000 for the modification of M109A6        

   howitzers. The Committee recommends $74,706,000, an increase of         

   $56,000,000 only to modify two battalion sets of Paladins for the Army  

   National Guard.                                                         

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folio 109 Insert Here                                            





                              PROCUREMENT OF AMMUNITION, ARMY                     






                                                                               




                                                     




     Fiscal year 1997 appropriation       $1,127,149,000  

     Fiscal year 1998 budget request         890,902,000  

     Committee recommendation              1,062,802,000  

     Change from budget request             +171,900,000  



      This appropriation finances the acquisition of ammunition,           

   modification of in-service stock, and related production base support   

   including the maintenance, expansion, and modernization of industrial   

   facilities and equipment.                                               

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                                                                       

                               [In thousands of dollars]                               




Item                         Budget  request    Committee recommended    Change from request  




CTG, 5.56MM, All types                63,588                   65,988                 +2,400  

CTG 7.62MM, All types                  1,136                    7,136                 +6,000  

.50 Cal, All types                    19,977                   20,177                   +200  

120MM HE Mortar (M934)                29,908                   38,908                 +9,000  

120MM Illum (XM930)                        0                    3,000                 +3,000  

120MM TP T M831/831A1                 52,226                   62,026                 +9,800  

120MM TPCSDS TM865                   111,653                  124,453                +12,800  

Fuze, Multi-option                         0                   20,000                +20,000  

Simulators (all types)                 4,573                    5,073                   +500  

Conventional ammo demil              106,118                   96,118                -10,000  



                          AMMUNITION SHORTFALLS                          



      The Committee has recommended an increase of $145,900,000 over the   

   budget request to satisfy ammunition shortfalls identified by the Army. 

   The Committee has recommended additional funds for the following items: 




                                                                                         

                                [In thousands of dollars]                                




Item                           Budget  request    Committee recommended    Change from request  




CTG, 5.56MM, All types                  63,588                   65,988                 +2,400  

.50 Cal, All types                      19,977                   20,177                   +200  

120MM HE Mortar (M934)                  29,908                   38,908                 +9,000  

120MM TP T M831/831A1                   52,226                   62,026                 +9,800  

120MM TPCSDS T M865                    111,653                  124,453                +12,800  

155MM HE M795                                0                   55,000                +55,000  

Fuze, Multi-option                           0                   20,000                +20,000  

Rocket, Hydra (all types)               12,067                   48,267                +36,200  

Simulators (all types)                   4,573                    5,073                   +500  



                                     MORTAR AMMUNITION                            



                     120mm full range practice (m931)                    



      The Army requested $24,432,000 for 120MM full range practice (M931)  

   mortar ammunition. The Committee recommends $34,432,000, an increase of 

   $10,000,000 only to procure M931 rounds.                                



                                      TANK AMMUNITION                             



                          120mm heat-mp-t m830a1                         



      The Army requested no funds for CTG 120MM HEAT M830A1 ammunition. The

   Committee recommends $10,000,000. Of the increase, $1,800,000 is only   

   for the modification of the existing M830A1 tank ammunition to the XM908

   configuration and $8,200,000 is only to procure new M830A1 tank rounds  

   to replace the rounds which are modified. The Committee has learned that

   the XM908 may satisfy an Army requirement to rapidly demolish concrete  

   obstacles and structures, especially in Korea. The Committee directs    

   that none of the funds appropriated for the XM908 may be obligated until

   the Army develops a formal requirements document for XM908 ammunition.  

                                    ARTILLERY AMMUNITION                          



                            105mm dpicm xm915                            



      The Army requested no funds for 105MM DPICM artillery ammunition. The

   Committee recommends $20,000,000 only to procure DPICM ammunition.      

                                          ROCKETS                                 



                        BUNKER DEFEATING MUNITION                        



      The Army requested no funds for the Bunker Defeating Munition (BDM). 

   The Committee recommends $8,000,000 only to continue the procurement of 

   BDM.                                                                    

                             AMMUNITION PRODUCTION BASE SUPPORT                   



                    PROVISION OF INDUSTRIAL FACILITIES                   



      The Army requested $45,857,000 for the provision of industrial base  

   facilities. The Committee recommends $24,857,000, a decrease of         

   $21,000,000. The Committee continues to believe that maintaining the    

   unique capabilities of the ammunition industrial base is vital to ensure

   that future ammunition requirements are satisfied. However, historical  

   data indicates slow obligation and execution rates for funds            

   appropriated in this account. Army accounting records show significant  

   amounts of fiscal year 1995, 1996, and 1997 unobligated funds.          

   Therefore, the Committee recommends that the budget request be reduced. 

      Of the available funds, $3,000,000 is only for the large caliber deep

   drawn cartridge case program. The Committee directs that the Army       

   provide adequate funding for this effort in future budget submissions.  

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 112 Insert here                                           





                                  OTHER PROCUREMENT, ARMY                         






                                                                               




                                                       




     Fiscal year 1997 appropriation         $3,172,485,000  

     Fiscal year 1998 budget request         2,455,030,000  

     Committee recommendation                2,502,886,000  

     Change from budget request                +47,856,000  



      This appropriation finances the acquisition of: (a) tactical and     

   commercial vehicles, including trucks, semi-trailers, and trailers of   

   all types to provide mobility and utility support to field forces and   

   the worldwide logistical system; (b) communications and electronics     

   equipment of all types to provide fixed, semi-fixed, and mobile         

   strategic and tactical communications equipment; and (c) other support  

   equipment, such as chemical defensive equipment, tactical bridging, shop

   sets, and construction equipment, floating and rail equipment,          

   generators and power units, material handling equipment, medical support

   equipment, special equipment for user testing, and non-system training  

   devices. In each of these activities funds are also included for        

   modifications of in-service equipment, investment spares and repair     

   parts, and production base support.                                     

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                                                                                      

                                       [In thousands of dollars]                                      




Item                                       Budget  request    Committee recommended     Change from request  




HMMWV                                               66,233                  104,933                 +38,700  

Items less than $2.0M (TIARA)                            0                    2,800                  +2,800  

Training Devices, Nonsystem                         49,688                   53,688                  +4,000  

Depot Maintenance of Other End Items                24,819                        0                 -24,819  



                               TACTICAL AND SUPPORT VEHICLES                      



                   semi-trailer, container transporter                   



      The Army requested $9,361,000 for the procurement of semi-trailer    

   container transporters. The Committee recommends no funding. Since, the 

   Army will not complete the testing of the semi-trailers until December  

   1998 and will not initiate full procurement until fiscal year 1999, the 

   Committee believes the fiscal year 1998 budget request should be denied.

                     semi-trailer, tank, 5000 gallon                     



      The Army requested $7,581,000 for the procurement of 5000 gallon tank

   semi-trailers. The Committee recommends $3,000,000, a decrease of       

   $4,581,000. The Committee has learned that the program has been delayed 

   and testing will not be completed until December 1998. Full scale       

   production is scheduled for fiscal year 1999. The Committee believes    

   that the remaining funds are adequate to procure test articles and      

   associated engineering support services.                                

                      semi-trailer, tank 7500 gallon                     



      The Army requested $10,408,000 for the procurement of 7500 gallon    

   tank semi-trailers. The Committee recommends $2,000,000, a reduction of 

   $8,408,000. The Committee has learned that the program has been delayed 

   and full scale production is scheduled for fiscal year 1999. The        

   Committee believes the remaining funds are sufficient to procure test   

   articles and engineering support services.                              

                    FAMILY OF MEDIUM TACTICAL VEHICLES                   



      The Army requested $209,446,000 for the Family of Medium Tactical    

   Vehicles (FMTV). The Committee recommends the requested amount.         

      The Army has approved a dual source strategy for FMTV. The Army      

   believes that developing a second production source for FMTV's will     

   yield significant savings and expects to award a competitive contract in

   fiscal year 2000. Since the current contract will expire in 1998 and the

   competitive contract will not be awarded until 2000, the Committee      

   understands that the Army may achieve savings in fiscal years 1998 and  

   1999 through a multi-year contract for FMTV. Therefore, in section 8008 

   of the General Provisions, the Committee has provided the necessary     

   authority for a two-year multi-year contract. However, the Army may not 

   enter into a multi-year contract without prior approval from the        

   congressional defense committees. The Committee expects that the        

   multi-year proposal will be supported with the standard multi-year      

   justification materials. Furthermore, the Committee directs the award of

   a multi-year contract is to have no impact on the current FMTV          

   competition strategy.                                                   

                    FAMILY OF HEAVY TACTICAL VEHICLES                    



      The Army requested $9,071,000 for the Family of Heavy Tactical       

   Vehicles. The Committee recommends $87,071,000, an increase of          

   $78,000,000. Of the increase, $45,000,000 is only to procure Heavy      

   Equipment Transporters and $33,000,000 is only to procure Heavy Expanded

   Mobility Tactical Trucks.                                               

                        ARMORED SECURITY VEHICLES                        



      The Army requested $9,470,000 for armored security vehicles. The     

   Committee recommends $10,970,000, an increase of $1,500,000 only to     

   procure Vehicular Intercommunications Systems for the armored security  

   vehicle fleet.                                                          

                        truck, tractor, line haul                        



      The Army requested $36,079,000 to procure line haul tractor trailers.

   The Committee recommends no funds. The line haul trailers will be used  

   to pull 7500 gallon tank semi-trailers. Since the trailer program has   

   been delayed until fiscal year 1999, the Committee believes the budget  

   request should be denied.                                               

                     self-loading/off-loading trailer                    





      The Committee understands that the Army is finalizing the operational

   requirements document for single operator trailer equipment. The        

   Committee encourages the Army to consider commercially available        

   technologies to satisfy this tactical trailer requirement.              

                          COMMUNICATIONS--SATELLITE COMMUNICATIONS                



                 DEFENSE SATELLITE COMMUNICATIONS SYSTEM                 



      The Army requested $87,643,000 for defense satellite communications  

   systems. The Committee recommends $83,143,000, a reduction of           

   $4,500,000. The budget request includes funds to accelerate the         

   production of the universal modem system. However, the required testing 

   for the system will not be completed until late 1999. The recommended   

   funding will maintain the current rate of production.                   

                        SATELLITE TERMINALS, EMUT                        



      The Army requested $7,264,000 for Enhanced Manpack UHF Terminal      

   programs (EMUT). The Committee recommends $6,064,000, a decrease of     

   $1,200,000. As a result of a combined Army and Air Force procurement,   

   contract savings were achieved for the EMUT in fiscal year 1997.        

   Therefore, the Committee believes the savings in fiscal year 1997 can be

   used to offset the fiscal year 1998 budget request.                     

                    NAVSTAR GLOBAL POSITIONING SYSTEM                    



      The Army requested $6,796,000 for the NAVSTAR global positioning     

   system. The Committee recommends $5,596,000, a decrease of $1,200,000.  

   The Committee understands that both quantity and price budgeted for     

   miniaturized airborne global positioning system receivers were reduced  

   in fiscal year 1997. Additionally, reductions in program management have

   also resulted in program savings.                                       

                                  SCAMP                                  



      The Army requested $4,305,000 to procure Single Channel Anti-jam     

   manportable (SCAMP) terminals. The Committee recommends $10,405,000, an 

   increase of $6,100,000 only to procure new SCAMP terminals.             



                         GLOBAL BROADCAST SERVICE                        



      The Army requested $4,967,000 to procure global broadcast service    

   ground receive terminals. The Committee recommends no funding.          

   Subsequent to the budget submission, the Army decided not to procure the

   terminals, but instead will use Air Force terminals.                    

                           COMMUNICATIONS--COMBAT COMMUNICATIONS                  



                      ARMY DATA DISTRIBUTION SYSTEM                      



      The Army requested $57,165,000 for the Army Data Distribution System.

   The Committee recommends $57,065,000, a decrease of $100,000. This      

   includes an increase of $20,000,000 only for the Enhanced Position      

   Locating and Report System and a decrease of $20,100,000 for the Joint  

   Tactical Information System (JTIDS). The Committee recommends           

   transfering JTIDS funds to the Ballistic Missile Defense Office under   

   the Procurement, Defense-wide appropriation.                            

                             SINCGARS FAMILY                             



      The Army requested $290,164,000 for the SINCGARS family. The         

   Committee recommends $302,164,000, an increase of $12,000,000 only for  

   Frequency Hopping Multiplexers.                                         

                      COMBAT SURVIVOR EVADER LOCATOR                     



      The Army requested $5,677,000 for the procurement of combat survivor 

   evader locator systems. The Committee recommends no funding. Since the  

   combat survivor evader system development program has been delayed until

   the end of fiscal year 1998, the procurement funding can be delayed.    

                                    ELECTRONIC EQUIPMENT                          



                        ALL SOURCE ANALYSIS SYSTEM                       



      The Army requested $7,772,000 for the All Source Analysis System. The

   Committee recommends $26,959,000, an increase of $19,187,000. Of this   

   amount, $13,500,000 is only to procure ASAS Remote Workstation (RWS) and

   $5,687,000 is to procure the CI/HUMINT Automated Tool Set (CHATS) for   

   Echelons Corps and Below units.                                         



                     iew--ground based common sensors                    



      The Army requested $26,817,000 for IEW-Ground Based Common Sensor.   

   The Committee denies this request because of the Army's decision to     

   reschedule the IOT&E for this program.                                  

                          ELECTRONIC EQUIPMENT--ELECTRONIC WARFARE                



                                SHORTSHOP                                



      The Army requested no funds for Shortstop Electronic Protection      

   System (SEPS). The Committee recommends $6,000,000 to procure Shortstop 

   SEPS so that deployed forces have adequate protection for artillery,    

   mortar and rocket attacks.                                              

                                 SENTINEL                                



      The Army requested $41,014,000 for Sentinel. The Committee recommends

   $51,014,000, an increase of $10,000,000 only to procure additional      

   Sentinel systems.                                                       

                           NIGHT VISION DEVICES                          



      The Army requested $85,312,000 for night vision devices. The         

   Committee recommends $99,712,000, an increase of $14,400,000. Of the    

   increase, $3,000,000 is only for light weight video reconnaissance      

   systems and $11,400,000 to only for AN/PAS 13 thermal weapons sights.   

                        ELECTRONIC EQUIPMENT--TACTICAL C 2  SYSTEMS               



                         MANEUVER CONTROL SYSTEM                         



      The Army requested $15,669,000 for Maneuver Control System (MCS)     

   hardware. The Committee recommends no funding. The MCS software program 

   which has been in development since the 1980's, was restructured in     

   fiscal year 1993. MCS software Initial Operational Test and Evaluation  

   (IOT&E) initially scheduled for November 1995 has slipped three times   

   and is currently scheduled for March 1998. According to the GAO, MCS    

   failed two of four Developmental Operational Test and Evaluation        

   operational issues. Furthermore, a System Confidence Demonstration      

   (SCD), a post-SCD, and a post-post SCD, demonstrated that the software  

   was not ready for IOT&E. The Army requested that it be allowed to       

   procure training base computers for MCS prior to Milestone III. Since   

   the MCS system has yet to pass an operational test, the Committee does  

   not believe that the Army has a critical need to acquire training base  

   computers prior to a Milestone III decision.                            

                 STANDARD INTEGRATED COMMAND POST SYSTEM                 



      The Army requested $26,551,000 for standard integrated command post  

   systems. The Committee recommends $36,551,000, an increase of           

   $10,000,000 only to add vehicular intercommunications systems (AN/VIC3) 

   to standard integrated command post vehicles.                           

                              ELECTRONIC EQUIPMENT--AUTOMATION                    



                   AUTOMATED DATA PROCESSING EQUIPMENT                   



      Information on this project can be found in the Information Resources

   Management section of this report.                                      



                   RESERVE COMPONENT AUTOMATION SYSTEM                   



      The Army requested $114,323,000 for the Reserve Component Automation 

   System. The Committee supports this request and recommends the full     

   $114,323,000 only for this program.                                     

                      ELECTRONIC EQUIPMENT--TEST MEASUREMENT EQUIPMENT            



                   INTEGRATED FAMILY OF TEST EQUIPMENT                   



      The Army requested no funds for the Integrated Family of Test        

   Equipment (IFTE). The Committee recommends $29,000,000 only for IFTE    

   procurement.                                                            

                                   MAINTENANCE EQUIPMENT                          



                       ITEMS LESS THAN $2.0 MILLION                      



      The Army requested $1,167,000 for items less than $2.0 million       

   (maintenance equipment). The Committee recommends $5,167,000, an        

   increase of $4,000,000 only for laser leveling devices.                 

                           RAIL FLOAT CONTAINERIZATION EQUIPMENT                  



                        RAILWAY CAR, FLAT, 100 TON                       



      The Army requested $17,755,000 for 100 ton, flat railway cars. The   

   Committee recommends no funding. Subsequent to the budget submission,   

   the Committee learned that the Army procured 300 used railway cars in   

   fiscal year 1997. Since the fiscal year 1997 buy satisfies the Army's   

   plan to procure railway cars in fiscal year 1997 and 1998, the Committee

   believes that the fiscal year 1998 request is unnecessary.              

                                     TRAINING EQUIPMENT                           



                   simnet/close combat tactical trainer                  





      The Army requested $92,968,000 for the Simnet/Close Combat Tactical  

   Trainer (CCTT). The Committee recommends no funding. Since the          

   submission of the budget request, the Army has made significant schedule

   changes to the CCTT acquisition plan. Software stability problems have  

   delayed the program by almost one year. CCTT operational testing will   

   begin in 1998 and a Milestone III decision to proceed to full-scale     

   production will not be made until fiscal year 1999. The Committee's     

   Survey's and Investigations staff has learned that the Army needs 48    

   simulators to conduct required testing. To date, the Army has purchased 

   110 simulators. Since the Army has sufficient simulators for testing and

   full-rate production will not begin until 1999, the Committee denies    

   procurement funding. However, the Committee recommends additional funds 

   in research and development for required testing which was not included 

   in the budget request.                                                  

                        TACTICAL FACSIMILE SYSTEM                        



      The Committee has learned that the Army is replacing aging facsimile 

   machines. The fielded facsimile machines provide poor image quality and 

   experience reliability and maintenance problems because of their age.   

   The Committee encourages the Army to procure TS 21 Blackjack facsimile  

   systems to meet Army requirements for interoperability, speed of        

   transmission, and transportability.                                     

                      GUN LAYING POSITIONING SYSTEM                      



      The Army requested no funds for the Gun Laying Positioning System    

   (GLPS). The Committee recommends $6,000,000 only for GLPS. Additional   

   details are provided under the heading ``Force XXI Initiatives.''       

                        RADIO FREQUENCY TECHNOLOGY                       



      The Army requested no funds for the Radio Frequency Technology. The  

   Committee recommends $2,900,000 only for Radio Frequency Technology.    

   Additional details are provided under the heading ``Force XXI           

   Initiatives.''                                                          

                LIGHTWEIGHT LASER DESIGNATOR/RANGE FINDER                



      The Army requested no funds for Lightweight Laser Designator/Range   

   Finder. The Committee recommends $2,800,000 only for the lightweight    

   laser designator/range finder. Additional details are provided under the

   heading ``Force XXI Initiatives.''                                      

                COMBAT SYNTHETIC TRAINING ASSESSMENT RANGE               



      The Army requested no funds for Combat Synthetic Training Assessment 

   Range. The Committee recommends $5,400,000 only for the Combat Synthetic

   Training Assessment Range. Additional details are provided under the    

   heading ``Force XXI Initiatives.''                                      

                   AIRBORNE COMMAND AND CONTROL SYSTEM                   



      The Army requested no funds for Airborne Command and Control System. 

   The Committee recommends $11,100,000 only for the Airborne Command and  

   Control System. Additional details are provided under the heading       

   ``Force XXI Initiatives.''                                              

                           AVENGER SLEW TO CUE                           



      The Army requested no funds for Avenger Slew to Cue System. The      

   Committee recommends $7,400,000 only for Avenger Slew to Cue. Additional

   details are provided under the heading ``Force XXI Initiatives.''       

                    PALLETIZED LOADING SYSTEM ENHANCED                   



      The Army requested no funds for Palletized Loading System Enhanced.  

   The Committee recommends $3,000,000 only for Palletized Loading System  

   Enhanced. Additional details are provided under the heading ``Force XXI 

   Initiatives.''                                                          

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   programs in fiscal year 1998:                                           



   Offset Folios 120 to 121 Insert here                                    





                                 AIRCRAFT PROCUREMENT, NAVY                       






                                                                               




                                                     




     Fiscal year 1997 appropriation       $7,027,010,000  

     Fiscal year 1998 budget request       6,085,965,000  

     Committee recommendation              5,951,965,000  

     Change from budget request             +801,500,000  



      This appropriation provides funds for the procurement of aircraft and

   related support equipment and programs; flight simulators; equipment to 

   modify in-service aircraft to extend their service life, eliminate      

   safety hazards, and improve their operational effectiveness; and spares 

   and ground support equipment for all end items procured by this         

   appropriation.                                                          

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes in accordance with    

   House authorization action:                                             




                                                                                         

                                [In thousands of dollars]                                




                             Budget request    Committee recommendation    Change from request  




AV 8B                               277,648                     310,648                +33,000  

V 22                                472,007                     661,307               +189,300  

 2C                                 236,474                     304,474                +68,000  

KC 130J                                   0                     179,700               +179,700  

Common ground equipment             287,114                     274,114                -13,000  



                                      COMBAT AIRCRAFT                             



                             F/A 18E/F Hornet                            



      The Navy requested $2,101,100,000 to procure 20 F/A 18E/F Hornet     

   aircraft. The Committee recommends providing the amount requested. The  

   Navy has invested $4,982,000,000 in development and $2,408,000,000 to   

   produce F/A 18E/F aircraft through fiscal year 1997. The F/A 18E/F      

   offers significant warfighting improvements for Naval aviation which    

   will be used for decades: the F/A 18E/F can fly 40 percent farther,     

   remain on station 80 percent longer, carry more weapons, and is more    

   lethal and survivable than current generation F/A 18C/D aircraft which  

   have no room for modern avionics upgrades. Aircraft weight remains well 

   below the specification weight requirement, even with all known         

   potential increases considered. With funds appropriated by Congress in  

   prior years, production of the F/A 18E/F is well underway. The program  

   is considered to be a model acquisition and it was recently endorsed in 

   the Quadrennial Defense Review. The Secretary of Defense recently       

   informed the defense committees that the F/A 18E/F Super Hornet program 

   is a cornerstone of the Defense Department's tactical air modernization 

   program. Recent General Accounting Office reports on the F/A 18E/F have 

   raised valid points about potential cost savings from buying older      

   generation F/A 18C/D model aircraft rather than the new model, but they 

   have not disclosed a single major significant cost or technical         

   difficulty. For these many reasons, the Committee endorses the need to  

   increase F/A 18E/F production in fiscal year 1998 because of the need to

   attain lower per unit costs through efficient high-rate production, but 

   more importantly, to field vital warfighting capability to the fleet as 

   soon as possible.                                                       

                                  MODIFICATION OF AIRCRAFT                        



                               ea 6 Series                               



      The Navy requested $86,783,000 for EA 6B modifications. The Committee

   recommends $169,783,000, an increase of $83,000,000. Within this amount,

   $50,000,000 is for wing center sections, $18,000,000 is for turbine     

   blade containment upgrades, and $15,000,000 is for USQ 113              

   communications jammers.                                                 

                                H 1 SERIES                               



      The Navy requested $18,489,000 for H 1 series modifications. The     

   Committee recommends $16,389,000, a decrease of $2,100,000. This amount 

   includes an increase of $3,500,000 only for UH 1 internal rescue hoists 

   and a transfer of $5,600,000 to research and development for UH 1       

   upgrades (PE 0604245N).                                                 

                                P 3 series                               



      The Navy requested $164,907,000 for P 3 modifications. The Committee 

   recommends $293,907,000, an increase of $129,000,000. Within this       

   amount, $56,600,000 is for the anti-surface warfare improvement program,

   $35,100,000 is for the sustained readiness program, $18,500,000 is only 

   to modify AIP processors with specific emitter identification           

   capability, $12,800,000 is only for the replacement data storage system,

   and $6,000,000 is only for the lightweight environmentally sealed       

   parachute assembly.                                                     



                                E 2 SERIES                               



      The Navy requested $49,073,000 for E 2 modifications. The Committee  

   recommends $50,673,000, an increase of $1,600,000 only for the oil      

   debris detection and burnoff system. The increased funds may also be    

   used for C 2 and P 3 aircraft.                                          

                         COMMON AVIONICS CHANGES                         



      The Navy requested $131,599,000 for common avionics changes. The     

   Committee recommends $130,599,000, a decrease of $1,000,000. This       

   includes a decrease of $10,000,000 recommended in the House-passed      

   Defense Authorization bill and an increase of $9,000,000 only for the   

   AN/AWW 13 guided weapon control monitor set.                            

                         AIRCRAFT SUPPORT EQUIPMENT AND FACILITIES                



                         COMMON GROUND EQUIPMENT                         



      The Navy requested $287,114,000 for common ground equipment. The     

   Committee recommends $274,114,000, a decrease of $13,000,000 as         

   recommended in the House-passed Defense Authorization bill. Within the  

   total amount provided, $1,000,000 is only to support the establishment  

   and implementation of computer based training programs for naval air    

   reserve aircrews.                                                       

                                    PROGRAM RECOMMENDED                           



      The total recommended in the bill will provide the following program 

   in fiscal year 1998:                                                    



   Offset Folios 125 Insert here                                           







                                 WEAPONS PROCUREMENT, NAVY                        






                                                                               




                                                      




     Fiscal year 1997 appropriation        $1,389,913,000  

     Fiscal year 1998 budget request        1,136,293,000  

     Committee recommendation               1,175,393,000  

     Change from budget request               +39,100,000  



      This appropriation provides funds for the procurement of strategic   

   and tactical missiles, target drones, torpedoes, guns, associated       

   support equipment, and modification of in-service missiles, torpedoes,  

   and guns.                                                               

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action.                          




                                                                                                  

                                     [In thousands of dollars]                                    




Item                                 Budget request     Committee recommendation    Change from request  




JSOW                                         58,665                       68,665                +10,000  

Hellfire                                          0                       37,500                +37,500  

Standard missile                             35,601                       68,601                +33,000  

Weapons industrial facilities                34,932                       25,932                 -9,000  

CIWS MODS (surface mode)                      9,990                       29,990                +20,000  



                                     BALLISTIC MISSILES                           



                       TRIDENT ADVANCE PROCUREMENT                       



      The Navy requested $47,021,000 for advance procurement of long lead  

   items for fiscal year 1999 Trident II missiles. The Committee recommends

   $32,021,000, a decrease of $15,000,000. The Committee notes that over   

   $19,000,000 of fiscal year 1996 Trident II long lead funding has not    

   been obligated based on DOD accounting reports.                         



                    In fiscal year 1997, $26,456,000 remains unobligated. Further,

          Navy budget documentation indicates that fiscal year 1998 long lead     

          funding for the airframe and motor will not be obligated until fiscal   

          year 1999. Since funding is being requested ahead of need, the Committee

          recommends a reduction of $15,000,000 to the Trident II advanced        

          procurement request.                                                    



                                       OTHER MISSILES                             



                                   ESSM                                  



      The Navy requested $15,529,000 for the Evolved Seasparrow Missile    

   (ESSM) program. The Committee recommends $5,529,000, a reduction of     

   $10,000,000. The ESSM program begins low rate production in fiscal year 

   1999 with 87 missiles, including foreign military sales. Though the     

   tooling procured in the research and development program supports       

   procurement rates of up to 180 missiles per year, the Navy's fiscal year

   1998 budget nevertheless requests funding for full rate production      

   tooling one year prior to approval of low rate production and two years 

   prior to approval for full rate production. The Committee believes that 

   such a request is premature, and therefore recommends a reduction of    

   $10,000,000.                                                            

                             STANDARD MISSILE                            



      The Navy requested $196,492,000 for Standard Missile. The Committee  

   recommends $181,092,000, a decrease of $15,400,000. The funds for the   

   Navy Lower Tier program have been transferred to the Ballistic Missile  

   Defense Organization, in the ``Procurement, Defense-Wide'' appropriation

   as proposed in the House-passed Defense Authorization bill.             

                              AERIAL TARGETS                             



      The Navy requested $72,923,000 for aerial targets. The Committee     

   recommends $65,923,000, a decrease of $7,000,000 due to reduced         

   requirements.                                                           

                                  SPARES AND REPAIR PARTS                         





      The Navy requested $26,943,000 for spares and repair parts. The      

   Committee recommends $21,943,000, a reduction of $5,000,000 based on    

   large unobligated balances in fiscal years 1995, 1996, and 1997.        

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 128 Insert here                                           







                      PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS            






                                                                               




                                                    




     Fiscal year 1997 appropriation        $289,695,000  

     Fiscal year 1998 budget request        336,797,000  

     Committee recommendation               423,797,000  

     Change from budget request             +87,000,000  



      This appropriation finances the acquisition of ammunition, ammunition

   modernization and ammunition related materiel for the Navy and Marine   

   Corps.                                                                  

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                 AUTHORIZATION CHANGES                                

                               [In thousands of dollars]                              




Item                        Budget request    Committee recommended     Change from request  




5.56MM, All types                   33,000                   36,000                  +3,000  

CTG 7.62MM, All types                2,900                    8,900                  +6,000  

Fuze, ET, XM762                          0                    7,000                  +7,000  



                          AMMUNITION SHORTFALLS                          



      The Committee has recommended an additional $30,000,000 to satisfy   

   ammunition shortfalls identified by the Marine Corps. The Committee has 

   recommended additional funds for the following items:                   




                                                                                          

                                 [In thousands of dollars]                                




Item                            Budget request    Committee recommended     Change from request  




5.56MM, All types                       33,000                   36,000                  +3,000  

Linear charges, all types                2,290                   17,290                 +15,000  

40MM, All types                          5,701                   10,701                  +5,000  

Fuze, ET, XM762                              0                    7,000                  +7,000  



                                      NAVY AMMUNITION                             



                              PRACTICE BOMBS                             



      The Navy requested $41,766,000 for practice bombs. The Committee     

   recommends $56,766,000, an increase of $15,000,000 only to procure laser

   guided training rounds.                                                 

                         5 inch/54 gun ammunition                        



      The Navy requested $27,669,000 for 5 inch/54 gun ammunition. The     

   Committee recommends $60,169,000, an increase of $32,500,000 only to    

   procure DPICM ammunition.                                               

                               20MM pgu 28                               



      The Navy requested no funds for 20MM PGU 28 ammunition. The Committee

   recommends $3,500,000 only to procure 20MM PGU 28 ammunition.           

                                    PROGRAM RECOMMENDED                           



      The total recommended in the bill will provide the following program 

   in fiscal year 1998:                                                    



   Offset Folios 131 Insert here                                           







                              SHIPBUILDING AND CONVERSION, NAVY                   






                                                                               




                                                      




     Fiscal year 1997 appropriation        $5,613,665,000  

     Fiscal year 1998 budget request        7,438,158,000  

     Committee recommendation               7,628,158,000  

     Change from budget request              +190,000,000  



      This appropriation provides funds for the construction of new ships  

   and the purchase and conversion of existing ships, including hull,      

   mechanical, and electrical equipment, electronics, guns, torpedo and    

   missile launching systems, and communications systems.                  

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes in accordance with    

   House authorization action:                                             




                                                                                

                            [In thousands of dollars]                           




                    Budget Request    Committee Recommendation    Change from Request  




LPD 17                           0                     185,000               +185,000  

Outfitting                  28,140                      21,140                 -7,000  

Post Delivery               90,177                      81,177                 -9,000  



                                       OTHER WARSHIPS                             



                         CVN REFUELING OVERHAULS                         



      The Navy requested $1,615,003,000 for a complex refueling overhaul of

   the U.S.S. Nimitz (CVN 68). The Committee is disappointed that the Navy 

   has elected to overhaul the Nimitz--the first ship of its class--without

   cooperative engagement, integrated ship self defense, the advanced      

   combat direction system, the rolling airframe missile, the SPQ 9        

   navigation radar, a common high-band data link, the battlegroup passive 

   horizon extension system, an outboard weapons elevator, conversion of   

   nuclear magazines, emergency ordnance handling, and improved propellers.

   At the same time the Navy proposes to delete these essential warfighting

   improvements from a front line combat ship, ostensibly due to lack of   

   funds, it has proposed a ``business-as-usual'' R&D budget with growth in

   basic research, advanced technology demonstrations, and other programs  

   less relevant to near-term warfighting requirements. The Committee      

   questions these priorities and whether the Theater CINCs agree with     

   them. The Committee urges the leadership of the Navy to reconsider these

   priorities as it executes the fiscal year 1998 budget, and to request   

   through the reprogramming process sufficient funds to ensure that the   

   Nimitz is returned to duty with the best warfighting improvements       

   available, rather than with holes where modern equipment is supposed to 

   go. The Committee recommends $1,628,403,000, an increase of $13,400,000.

   This includes a decrease of $5,600,000 as recommended in the            

   House-passed Defense Authorization bill due to cancellation of the      

   requirement for CIWS guns and an increase of $20,000,000 only for       

   installation of the ship self defense system.                           

               CVN REFUELING OVERHAULS--ADVANCE PROCUREMENT              



      The Navy requested $92,855,000 for advance procurement for the       

   overhaul of CVN 69, a Nimitz class aircraft carrier. Given the          

   deficiencies on the overhaul of the lead ship of the class, the         

   Committee is not willing to support a second overhaul until they are    

   remedied for both ships. The Committee recommends $46,855,000, a        

   decrease of $46,000,000, as well as proposed bill language to ensure    

   that funds are not obligated on an aircraft carrier overhaul that       

   delivers CVN 69 back to the fleet without installations of cooperative  

   engagement and the ship self defense system.                            



                                  ddg 51                                 



      The Navy requested $2,665,767,000 to procure 3 DDG 51 Aegis ships.   

   The Committee is dismayed at the Navy's plan to build 12 ships between  

   1997 and 2001 which are planned to be delivered to the fleet without    

   cooperative engagement or theater ballistic missile defense capability. 

   This shipbuilding plan is counter to the theater missile defense goals  

   of the Administration, the Navy, and the Congress and may unnecessarily 

   put at risk the lives of U.S. forces deployed in hostile situations. The

   Committee recommends $2,695,367,000, an increase of $29,600,000. This   

   includes an additional $19,400,000 to accelerate baseline 6 hardware and

   software needed to incorporate theater ballistic missile defense in     

   these ships, $14,000,000 only to install cooperative engagement on the  

   third ship in 1998, and a decrease of $3,800,000 due to savings in the  

   program resulting from a FMS sale to Spain of Aegis combat systems. The 

   Committee also proposes bill language to preclude the Navy from awarding

   a multiyear contract for construction of twelve DDG 51 ships, unless at 

   least four of the ships will be delivered to the Navy with cooperative  

   engagement and theater ballistic missile capability installed.          

                            CRUISER OVERHAULS                            



      The Navy has indicated to the congressional defense committees that  

   it plans to begin an extensive overhaul program for 27 of its Aegis     

   cruisers. Since no funds are requested in the budget for this purpose,  

   the Department of Defense would have to submit a new start reprogramming

   request if the Navy planned to begin cruiser conversion prior to fiscal 

   year 1999. The Committee directs that all the overhauls for these ships 

   must be competed between U.S. shipyards and that no non-competitive     

   allocations be made for industrial base reasons. The Committee          

   understands that this direction is consistent with the Navy's plan.     

                        AUXILIARIES, CRAFT, AND PRIOR YEAR PROGRAMS               



                            LCAC LANDING CRAFT                           



      The Navy requested no funds for LCAC landing craft service life      

   extension (SLEP). The Committee recommends $24,000,000 and directs the  

   Navy to accelerate the SLEP, while the production line is still warm,   

   due to recent disclosure of corrosion and component failures from fleet 

   LCAC operating units. The Navy has informed the Committee that this     

   program can be started in fiscal year 1998 using unique existing        

   facilities and retaining a trained labor force, resulting in a net      

   savings of $18,300,000.                                                 

                                  adc(x)                                 



      The Navy requested no funds for ADC(X) construction, but plans to    

   build such a class of ships in the outyears. The Committee directs that 

   the construction cost of such ships, if proposed to the Congress by the 

   Navy, be funded in the Shipbuilding and Conversion appropriation.       

                                    PROGRAM RECOMMENDED                           



      The total recommended in the bill will provide the following program 

   in fiscal year 1998:                                                    



   Offset Folios 135 Insert here                                           





                                   OTHER PROCUREMENT, NAVY                        






                                                                               




                                                           




     Fiscal year 1997 appropriation             $3,067,944,000  

     Fiscal year 1998 budget request             2,825,500,000  

     Committee recommendation                    3,084,485,000  

     Change from budget request                   +258,985,000  



      This appropriation provides funds for the procurement of major       

   equipment and weapons other than ships, aircraft, missiles, and         

   torpedoes. Such equipment range from the latest electronic sensors for  

   updating our naval forces to trucks, training equipment, and spare      

   parts.                                                                  

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes in accordance with    

   House authorization action:                                             




                                                                                                           

                                         [In thousands of dollars]                                         




                                              Budget Request     Committee Recommendation    Change from Request  




Reactor components                                   193,880                      180,880                -13,000  

Radar Support                                          1,708                       23,708                +22,000  

Surface sonar windows/domes                                0                        6,000                 +6,000  

Cooperative engagement                                     0                      114,800               +114,800  

AN/SSQ 36 sonobouy                                     1,402                        2,902                 +1,500  

AN/SSQ 57 sonobouy                                         0                        4,500                 +4,500  

Weapons range support equipment                        4,858                       14,358                 +9,500  

Airborne mine counter-measures (SWIMS)                20,192                       27,692                 +7,500  





                                  SHIPS SUPPORT EQUIPMENT                         



                           LM 2500 Gas Turbine                           



      The Navy requested $7,548,000 for the LM 2500 gas turbine engine. The

   Committee recommends $5,548,000, a decrease of $2,000,000 due to reduced

   requirements resulting from ship deactivations.                         

                                    NAVIGATION EQUIPMENT                          



                        Other Navigation Equipment                       



      The Navy requested $31,552,000 for other navigation equipment. The   

   Committee recommends $39,052,000, an increase of $7,500,000. This       

   includes an increase of $9,000,000 only for the WSN 7 ring laser gyro   

   and a decrease of $1,500,000 due to contract savings in this program.   

                                 OTHER SHIPBOARD EQUIPMENT                        



                          Firefighting Equipment                         



      The Navy requested $14,081,000 for other firefighting equipment. The 

   Committee recommends $27,081,000, an increase of $13,000,000 only for   

   self contained breathing apparatus as recommended in the House-passed   

   Defense Authorization bill.                                             

                       Pollution control equipment                       



      The Navy requested $156,775,000 for pollution control equipment. The 

   Committee recommends $147,775,000, a decrease of $9,000,000 due to      

   reduced requirements and excess prior year funds identified by the      

   General Accounting Office.                                              

                           SUBMARINE BATTERIES                           



      The Navy requested $9,043,000 for submarine batteries. The Committee 

   recommends $8,443,000, a decrease of $600,000 due to contract savings.  

                   STRATEGIC PLATFORM SUPPORT EQUIPMENT                  



      The Navy requested $6,435,000 for strategic platform support         

   equipment. The Committee recommends $21,435,000, an increase of         

   $15,000,000 only to install AN/UYQ 70 displays in submarines.           

                          COMMUNICATIONS AND ELECTRONIC EQUIPMENT                 



                              RADAR SUPPORT                              



      The Navy requested $1,708,000 for radar support. The Committee       

   recommends $23,708,000, an increase of $22,000,000 as recommended in the

   House-passed Defense Authorization bill of which $13,000,000 is only for

   the SPS 73(V) radar and $9,000,000 is only for the AN/BPS 16 submarine  

   navigation radar.                                                       

                                        SHIP SONARS                               



                   an/sqq 89 surface asw combat system                   



      The Navy requested $16,628,000 for AN/SQQ 89. The Committee          

   recommends $16,228,000, a decrease of $400,000 due to contract and      

   installation savings.                                                   

                              SSN ACOUSTICS                              



      The Navy requested $77,953,000 for SSN Acoustics. The Committee      

   recommends $46,453,000, a decrease of $31,500,000. This consists of a   

   decrease of $39,500,000 to the Acoustic Rapid Commercial Off-the-Shelf  

   Insertion (A RCI) program and an increase of $8,000,000 only for        

   refurbishment of TB 23 arrays. Concerning the A RCI program, the        

   Committee believes the program is concurrent since the Navy plans to buy

   14 A RCI kits in 1998 even though initial operational test and          

   evaluation is not planned until the first quarter of 1999. The Committee

   recommends that A RCI production funds be deferred one year to reduce   

   program risk.                                                           

                            CARRIER ASW MODULE                           



      The Navy requested $16,000 for the carrier ASW module. The Committee 

   recommends $12,016,000, an increase of $12,000,000 only for procurement 

   and installation of six AN/UQX 5(V) Fast Time Analyzer System           

   engineering change two acoustic intercept processors, six CV ASW Module 

   on-board trainers, one CV tactical support center upgrade, and          

   integration of a real time sensor data link.                            

                                ELECTRONIC WARFARE EQUIPMENT                      



                            C3 Countermeasures                           



      The Navy requested $6,891,000 for C3 countermeasures. The Committee  

   recommends $6,591,000, a decrease of $300,000 due to reduced            

   requirements.                                                           

                                  RECONNAISSANCE EQUIPMENT                        



                    COMBAT DIRECTION FINDING EQUIPMENT                   


      The Navy requested $10,473,000 for combat direction finding          

   equipment. The Committee recommends $5,873,000, a decrease of $4,600,000

   due to contract savings on automated digital acquisition systems.       

             battle group passive horizon extension (bgphes)             



      The Navy requested $50,221,000 for BGPHES. The Committee recommends  

   $47,421,000, a decrease of $2,800,000 due to contract savings.          



                              OTHER SHIP ELECTRONIC EQUIPMENT                     



                        Navy Tactical Data System                        



      The Navy requested $14,335,000 for the Navy Tactical Data System. The

   Committee recommends $24,335,000, an increase of $10,000,000 only to    

   install AN/UYQ 70 displays on Aegis cruisers.                           

                   Advanced Tactical Data Link Systems                   



      The Navy requested $16,991,000 for advanced tactical data link       

   systems. The Committee recommends $15,391,000, a decrease of $1,600,000 

   due to contract savings in AN/VRC 107(V) terminals.                     

                               AVIATION ELECTRONIC EQUIPMENT                      



                     Automatic Carrier Landing System                    



      The Navy requested $13,200,000 for the automatic carrier landing     

   system. The Committee recommends $12,200,000, a decrease of $1,000,000  

   due to cancellation of the AN/SPN 46(V) landing system.                 

                                ID SYSTEMS                               



      The Navy requested $11,293,000 for identification systems. The       

   Committee recommends $9,193,000, a decrease of $2,100,000 for shipboard 

   advanced radar target identification systems which have slipped until   

   1999.                                                                   



                              OTHER SHORE ELECTRONIC EQUIPMENT                    



                          jmcis tactical/mobile                          



      The Navy requested $2,888,000 for JMCIS Tactical/Mobile. The         

   Committee recommends $47,888,000, an increase of $45,000,000 only for   

   procurement of AN/SQR 17A(V)3 underwater systems, including preplanned  

   product improvement, for Mobile Inshore Undersea Warfare operations.    

                                  SUBMARINE COMMUNICATIONS                        



                    Submarine communication equipment                    



      The Navy requested $37,239,000 for submarine communication equipment.

   The Committee recommends $47,239,000, an increase of $10,000,000 only   

   for procurement of AN/USC 42(V)V mini-Demand Assigned Multiple Access   

   (DAMA) UHF Fleet SATCOM communications terminals for submarines, surface

   ships, and airborne platforms.                                          

                                    SHORE COMMUNICATIONS                          



                                  NSIPS                                  



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                                 JEDMICS                                 



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

                                 AVIATION SUPPORT EQUIPMENT                       



                                SONOBOUYS                                



                            an/sqq 53 (difar)                            



      The Navy requested $28,382,000 for procurement of AN/SQQ 53          

   sonobouys. The Committee recommends $49,382,000, an increase of         

   $21,000,000 identified by the Navy as a critical shortfall.             

                            an/sqq 62 (dicass)                           



      The Navy requested $24,291,000 for procurement of AN/SQQ 62          

   sonobouys. The Committee recommends $32,291,000, an increase of         

   $8,000,000 identified by the Navy as a critical shortfall.              

                                 AIRCRAFT SUPPORT EQUIPMENT                       



                          AVIATION LIFE SUPPORT                          



      The Navy requested $15,345,000 for aviation life support equipment.  

   The Committee recommends $12,645,000, a decrease of $2,700,000 due to   

   reduced requirements.                                                   

                     LAMPS MK III SHIPBOARD EQUIPMENT                    



      The Navy requested $5,805,000 for LAMPS MK III Shipboard Equipment.  

   The Committee recommends $4,560,000, a decrease of $1,245,000 due to    

   excess funds identified by the General Accounting Office.               

                               SHIP MISSILE SYSTEMS EQUIPMENT                     



                             NATO SEASPARROW                             



      The Navy requested $6,866,000 for the NATO Seasparrow program. The   

   Committee recommends $10,866,000, an increase of $4,000,000 only for    

   low-light, solid state electro-optic cameras.                           

                         SHIP SELF-DEFENSE SYSTEM                        



      The Navy requested $5,841,000 for the ship-self defense system. The  

   Committee recommends $17,841,000, an increase of $12,000,000 only for   

   installation of the SSDS on two LSD 41 class ships with rolling airframe

   missile launchers to be allocated from assets procured in 1998 or       

   earlier fiscal years.                                                   

                         AEGIS SUPPORT EQUIPMENT                         



      The Navy requested $26,813,000 for Aegis support equipment. The      

   Committee recommends $21,113,000, a reduction of $5,700,000 due to      

   reduced requirements because of ship deactivations.                     

                    SURFACE TOMAHAWK SUPPORT EQUIPMENT                   



      The Navy requested $65,502,000 for surface Tomahawk support          

   equipment. The Committee recommends $65,302,000, a decrease of $200,000 

   due to reduced requirements because of ship deactivations.              

                         FLEET BALLISTIC MISSILE SUPPORT EQUIPMENT                



                   STRATEGIC MISSILE SYSTEMS EQUIPMENT                   



      The Navy requested $231,528,000 for strategic missile systems        

   equipment. The Committee recommends $228,728,000, a decrease of         

   $2,800,000 due to excess funds identified by the General Accounting     

   Office.                                                                 

                              OTHER ORDNANCE SUPPORT EQUIPMENT                    



                         UNMANNED SEABORNE TARGET                        



      The Navy requested $4,271,000 for unmanned seaborne target           

   development. The Committee recommends $2,271,000, a decrease of         

   $2,000,000 due to reduced requirements.                                 

                                 OTHER EXPENDABLE ORDNANCE                        



                  SURFACE TRAINING DEVICE MODIFICATIONS                  



      The Navy requested $4,829,000 for surface training device            

   modifications. The Committee recommends $13,329,000, an increase of     

   $8,500,000 only for procurement of Carry-on Combat Systems Trainers     

   (COCST) for the Battle Force Tactical Training (BFTT) system.           

                            CIVIL ENGINEERING SUPPORT EQUIPMENT                   



                  CONSTRUCTION AND MAINTENANCE EQUIPMENT                 



      The Navy requested $3,700,000 for construction and maintenance       

   equipment. The Committee recommends $5,200,000, an increase of          

   $1,500,000 only for laser leveling devices.                             

                           AMPHIBIOUS EQUIPMENT                          



      The Navy requested $6,233,000 for amphibious equipment. The Committee

   recommends $11,233,000, an increase of $5,000,000 only for the Elevated 

   Causeway (Modular).                                                     

                       POLLUTION CONTROL EQUIPMENT                       



      The Navy requested $28,650,000 for pollution control equipment. The  

   Committee recommends $25,080,000, a decrease of $3,570,000 due to       

   reduced requirements because of ship deactivations.                     

                        COMMAND SUPPORT EQUIPMENT                        



      The Navy requested $15,915,000 for command support equipment. The    

   Committee recommends $17,915,000, an increase of $2,000,000 only for the

   Advanced Technical Information System.                                  



                                           OTHER                                  



                         SPARES AND REPAIR PARTS                         



      The Navy requested $248,717,000 for spares and repair parts. The     

   Committee recommends $228,717,000, a decrease of $20,000,000 due to     

   reduced requirements because of ship deactivations.                     

                                    PROGRAM RECOMMENDED                           



      The total recommended in the bill will provide the following program 

   in fiscal year 1998:                                                    



   Offset Folios 142 to 144 Insert here                                    







                                 PROCUREMENT, MARINE CORPS                        






                                                                               




                                                   




     Fiscal year 1997 appropriation       $569,073,000  

     Fiscal year 1998 budget request       374,306,000  

     Committee recommendation              491,198,000  

     Change from budget request           +116,892,000  



      This appropriation provides the Marine Corps with funds for          

   procurement, delivery, and modification of missiles, armament,          

   communication equipment, tracked and wheeled vehicles, and various      

   support equipment.                                                      

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                                                                                           

                                          [In thousand of dollars]                                         




Item                                              Budget request    Committee recommended    Change from request  




Javelin                                                   42,146                   59,146                +17,000  

Communications and Elec Infrastructure Supt.              41,809                   84,409                +42,600  



                                WEAPONS AND COMBAT VEHICLES                       



                items under $2 million (tracked vehicles)                



      The Marine Corps requested $99,000 for items under $2 million        

   (tracked vehicles). The Committee recommends $1,999,000, an increase of 

   $1,900,000 only for a supplemental fuel carrying capability.            

                       OTHER COMMUNICATIONS AND ELECTRONICS EQUIPMENT             



                      INTELLIGENCE SUPPORT EQUIPMENT                     



      The Marine Corps requested $16,413,000 for Intelligence Support      

   Equipment. The Committee recommends an increase of $5,392,000. Of this  

   amount, $4,600,000 is only to procure CI/HUMINT Program equipment, and  

   $792,000 is to procure portable satcom radios.                          

                                     TACTICAL VEHICLES                            



               HIGH MOBILITY MULTI-PURPOSE WHEELED VEHICLES              



      The Marine Corps requested $696,000 for High Mobility Multi-purpose  

   Wheeled Vehicles (HMMWV). The Committee recommends $40,696,000, an      

   increase of $40,000,000 only to begin the production of a HMMWV         

   service-life extension program.                                         

                                      GENERAL PROPERTY                            



                         FIELD MEDICAL EQUIPMENT                         



      The Marine Corps requested $1,081,000 for field medical equipment.   

   The Committee recommends $11,081,000, an increase of $10,000,000 only to

   procure equipment for the Chemical Biological Incident Response Force.  

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 147 Insert here                                           







                              AIRCRAFT PROCUREMENT, AIR FORCE                     






                                                                               




                                                      




     Fiscal year 1997 appropriation        $6,404,980,000  

     Fiscal year 1998 budget request        5,684,847,000  

     Committee recommendation               6,386,479,000  

     Change from budget request              +701,632,000  



      This appropriation provides for the procurement of aircraft, and for 

   modification of in-service aircraft to improve safety and enhance       

   operational effectiveness. It also provides for initial spares and other

   support equipment to include aerospace ground equipment and industrial  

   facilities. In addition, funds are provided for the procurement of      

   flight training simulators to increase combat readiness and to provide  

   for more economical training.                                           

                                 COMMITTEE RECOMMENDATIONS                        



                          Authorization Changes                          



      The Committee recommends the following changes in accordance with    

   House authorization action:                                             




                                                                               

                           [In thousands of dollars]                           




Item               Budget request    Committee recommendation    Change from request  




B 2                       174,086                     505,286               +331,200  

EC 130J                         0                      49,900                +49,900  

JPATS                      65,415                      77,615                +12,200  

Predator UAV              116,506                     146,506                +30,000  

B 1B Mods                 114,245                     138,245                +24,000  

H 1 Mods                    2,778                       3,578                   +800  

DARP Mods                  67,136                     139,136                +72,000  

DARP                      141,493                     146,493                 +5,000  



                                      COMBAT AIRCRAFT                             



                     advanced tactical fighter (F 22)                    



                           ADVANCE PROCUREMENT                           



      The Air Force requested $80,864,000 for advance procurement for the F

   22 aircraft. The Committee recommends $74,864,000, a decrease of        

   $6,000,000. The Air Force has indicated that these funds will be used   

   for redesign efforts associated with Out of Production Parts (OPPs).    

   Since such redesign efforts are properly funded in the research and     

   development account, the Committee has reduced F 22 procurement by      

   $6,000,000 and has increased F 22 research and development by a like    

   amount. The Committee directs the Secretary of the Air Force to budget  

   for these redesign efforts in the research and development accounts in  

   future budgets.                                                         

      In addition to OPP redesign efforts, the Air Force has requested     

   authority to use procurement funds to purchase OPPs for more than one   

   aircraft lot. The Committee understands that these parts are defined as 

   electro/mechanical components or electronic piece parts.                

   Electro/mechanical components include parts below the Line Replaceable  

   Units/Line Replaceable Module (LRU/LRM) level, such as actuators, fuel  

   pumps, or hydraulic pumps; however such components do not include       

   structural parts such as wings, bulkheads, flaps, ailerons, doors, or   

   landing gear struts; or subsystems at or above the LRU/LRM level such as

   an auxiliary power unit. Electronic piece parts include parts below the 

   LRU/LRM level such as multi-chip modules, Application Specific          

   Integrated Circuits (ASICs), microprocessors, integrated circuits,      

   microcircuits, diodes, and transistors. OPPs are parts that are         

   currently unavailable or projected to be unavailable from the original  

   equipment supplier or any alternative source. Often these parts become  

   unavailable because industry has moved to the next generation of        

   technology and no longer finds it cost effective to maintain the        

   capability to produce the older technology, or the supplier elects to   

   end business with the government, or the supplier goes out of business. 

      The Committee approves the Air Force request to use procurement funds

   to purchase OPPs for multiple aircraft lots based on the following      

   criteria: (1) the OPPs must meet the definition of parts described      

   above; (2) the OPPs must meet the definition of ``out of production'' as

   described above; (3) OPPs can only be purchased in cases in which a     

   redesign of the parts cannot be accomplished in time to prevent an      

   impact to the production schedule; (4) the Air Force shall not procure  

   more parts than required to bridge the gap between the end of           

   availability of the parts and the availability of the redesigned part;  

   and (5) no more than five aircraft lots of parts can be procured. Any   

   purchases beyond the scope of the criteria above require prior          

   notification to the congressional defense committees. Finally, the      

   Committee is aware that the Air Force needs to procure a video tape deck

   because of diminishing manufacturing sources. Since such an item would  

   not otherwise meet the criteria above, the Committee provides separate  

   and specific approval for this item.                                    

                                   f 16                                  



      The Air Force requested no funding for the F 16 program. The         

   Committee recommends $82,500,000 for 3 additional aircraft.             

                                      AIRLIFT AIRCRAFT                            



                                   C 17                                  



      The Air Force requested $1,923,311,000 for the C 17 aircraft. The    

   Committee recommends $1,914,211,000, a decrease of $9,100,000. This GAO 

   recommended reduction is based on C 17 program office financial         

   execution forecasts that show that fiscal year 1996 and fiscal year 1997

   funds will not be obligated prior to funds expiration.                  



                         C 17 ADVANCE PROCUREMENT                        



      The Air Force requested $278,200,000 for C 17 advance procurement in 

   support of fiscal year 1999 aircraft. The Committee recommends          

   $265,600,000, a decrease of $12,600,000. This GAO recommended reduction 

   is based on contract savings associated with prior year advance         

   procurement contracts.                                                  



                             CIVIL AIR PATROL                            



      The Air Force requested $2,645,000 for the Civil Air Patrol. The     

   Committee recommends $4,498,000, an increase of $1,853,000.             

                                       OTHER AIRCRAFT                             



                                    8C                                   



      The Air Force requested $313,991,000 for the E 8C (JSTARS) aircraft. 

   The Committee recommends $317,991,000, a net increase of $4,000,000. The

   adjustment includes an additional $16,000,000 to address funding        

   requirements rephased from fiscal year 1996 and an additional $1,000,000

   only for integration of an Improved Data Modem on the JSTARS aircraft.  

   The adjustment also includes a $13,000,000 reduction based on           

   unjustified growth in the Engineering Change Order (ECO) line. The      

   Committee notes that the Air Force is requesting $21,400,000 for ECOs in

   fiscal year 1998 to support one aircraft, compared to $3.6 million in   

   fiscal year 1997 for two aircraft. The Air Force has indicated that the 

   JSTARS airframe estimates have already been increased in the fiscal year

   1998 budget to reflect recent experience of increased costs associated  

   with refurbishing used airframes. Since these higher costs are already  

   built into the airframe estimate, the level of growth in ECO funding is 

   unwarranted.                                                            

                             MODIFICATION OF INSERVICE AIRCRAFT                   



                            B 52 modifications                           



      The Air Force requested $28,907,000 for B 52 modifications. The      

   Committee recommends $31,807,000, an increase of $2,900,000 only for B  

   52 Electro-optical Viewing System Reliability and Maintainability       

   upgrade, identified by the Air Force as a high priority unfunded        

   requirement.                                                            

                             15 modifications                            



      The Air Force requested $169,568,000 for F 15 modifications. The     

   Committee recommends $157,068,000, a net decrease of $12,500,000. The   

   adjustment includes an increase of $22,800,000 only for additional PW   

   220E engine modifications, a decrease of $11,800,000 based on two       

   recently terminated modifications in fiscal year 1997, a decrease of    

   $13,500,000 for APG 63 radar upgrade pricing, and a decrease of         

   $10,000,000 for radar support equipment. The $11,800,000 reduction for  

   the terminated modifications is based on a $21,200,000 GAO recommended  

   reduction adjusted for amounts already reprogrammed to support an Air   

   Traffic Control and Landing System initiative. With regard to the radar 

   upgrade modification, the Committee notes that the Air Force has not    

   adequately justified the unusually high cost of the radar in fiscal year

   1998 as compared to the budget last year and as compared to other fiscal

   years in the current budget. The Committee reduction brings the fiscal  

   year 1998 program in line with the fiscal year 1997 column of the       

   current budget. The Air Force has also indicated that funds are no      

   longer required for radar equipment as displayed in the current budget, 

   but needed instead for support equipment. No justification for this     

   latter requirement has been provided to the Committee.                  

      The Committee is concerned with the new cost estimates appearing in  

   the budget this year; the average unit cost of the radar over the life  

   of the program has approximately doubled. To date, the Air Force has not

   provided a satisfactory explanation of this change. Further, this       

   $600,000,000 program has been justified as a reliability and            

   maintainability (R&M) upgrade, not a performance upgrade. Given the     

   doubling in cost, the original cost/benefit assumptions for the program 

   may no longer be valid. Accordingly, the Committee directs the Secretary

   of the Air Force to submit a report to the congressional defense        

   committees including an explanation of the average unit cost growth     

   compared to the budget last year and a revised cost/benefit analysis,   

   including break even point, justifying continued pursuit of the program.

   The Committee directs that this report be provided at least 15 days     

   prior to award of the first production contract.                        

                             16 modifications                            



      The Air Force requested $216,158,000 for F 16 modifications. The     

   Committee recommends $199,358,000, a decrease of $16,800,000. The       

   decrease includes a $13,000,000 reduction to GPS and a $3,800,000       

   reduction to Block 40 CAS Night Vision Imaging System (NVIS). The Air   

   Force budget requests 330 GPS kits in fiscal year 1998, up from 150 in  

   fiscal year 1997 and higher than the outyears. The rate of production   

   resulting from the fiscal year 1998 buy exceeds the rate in which the   

   kits can be installed, resulting in kits unnecessarily sitting on the   

   shelf for up to five months. A reduction of 94 kits will bring the      

   production rate in line with the installation rate. The budget also     

   includes $3,800,000 for NVIS integration. However, the Air Force has    

   indicated no further integration is required.                           

                           C 130 modifications                           



      The Air Force requested $94,511,000 for C 130 modifications. The     

   Committee recommends $119,211,000, an increase of $24,700,000 only for  

   the electronic suite modifications associated with the new production EC

   130 funded separately in this account.                                  



                         AIRCRAFT SUPPORT EQUIPMENT AND FACILITIES                



                        15 post production support                       



      The Air Force requested $8,089,000 for F 15 Post Production Support. 

   The Committee recommends $6,289,000, a decrease of $1,800,000. This GAO 

   recommended adjustment is based on prematurely budgeting for F 15       

   tooling disposition given continued production of F 15 attrition        

   aircraft.                                                               

                             WAR CONSUMABLES                             



      The Air Force requested $67,565,000 for war consumables. The         

   Committee recommends $60,165,000, a decrease of $7,400,000. The GAO has 

   identified excess engineering change order (ECO) funding in the towed   

   decoy program.                                                          

                     MISCELLANEOUS PRODUCTION CHARGES                    



      The Air Force requested $275,805,000 for miscellaneous production    

   charges. The Committee denies the budget request of $6,221,000 to       

   procure podded electro-optical camera systems. The Committee disagrees  

   with the Air Force's acquisition strategy to sole-source the second     

   Theater Airborne Reconnaissance System (TARS) sensor and Advanced TARS  

   Medium Altitude Electro-optical (MAEO) sensor.                          

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 153 to 154 Insert here                                    









                               MISSILE PROCUREMENT, AIR FORCE                     






                                                                               

                                                                               




                                                     




     Fiscal Year 1997 appropriation       $2,297,145,000  

     Fiscal Year 1998 budget request       2,557,741,000  

     Committee recommendation              2,320,741,000  

     Change from budget request             -237,000,000  



      The appropriation provides for the procurement, installation, and    

   checkout of strategic ballistic and other missiles, modification of     

   in-service missiles, and initial spares for missile systems. It also    

   provides for operational space systems, boosters, payloads, drones,     

   associated ground equipment, non-recurring maintenance of industrial    

   facilities, machine tool modernization, and special program support.    

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action.                          




                                                                                      

                               [In thousands of dollars]                              




Item                      Budget request    Committee recommendation    Change from request  




JSOW                               1,139                      30,139                +29,000  

AGM 130                            1,539                      42,539                +41,000  

MAVERICK                               0                      11,000                +11,000  

Titan Space Boosters             555,304                     473,304                -82,000  



                                       OTHER MISSILES                             



                                  AMRAAM                                 



      The Air Force requested $117,768,000 for continued production of     

   AMRAAM. The Committee recommends $107,168,000, a reduction of           

   $10,600,000. This GAO-recommended reduction is based on unneeded funds  

   for engineering change orders (ECOs). The Committee also notes that the 

   AMRAAM program has inappropriately budgeted recurring efforts such as   

   program management, technical services, production support, and         

   acceptance testing in its nonrecurring budget line. Such budgeting      

   practices are misleading and should be corrected in future budget       

   submissions.                                                            

                             MODIFICATION OF INSERVICE MISSILES                   



                            CONVENTIONAL ALCM                            



      The Air Force requested no funding for the Conventional Air Launched 

   Cruise Missile program. The Committee recommends $15,300,000 to continue

   conversions of nuclear Air Launched Cruise Missiles. The Committee notes

   that this effort has been identified as a high priority by the Air      

   Force.                                                                  

                                       SPACE PROGRAMS                             



              GLOBAL POSITIONING SYSTEM (GPS) SPACE SEGMENT              



      The Air Force requested $163,837,000 for the acquisition of 3 GPS    

   Block IIF satellites. The Committee recommends $122,137,000, a decrease 

   of $41,700,000. The funds provided by the Committee will enable the Air 

   Force to acquire 2 Block IIF satellites in fiscal year 1998.            

      In making this recommendation the Committee notes that the present   

   GPS constellation contains 24 satellites consisting of 21 operational   

   spacecraft and three on-orbit spares. If present delivery schedules are 

   maintained one to five spacecraft will be in storage available for      

   launch within 60 days of an on-orbit failure as called for by present   

   department policy. The Committee believes that the probability is       

   extremely low that three GPS satellites will ever fail simultaneously or

   in rapid succession. Even in the highly unlikely event that such a      

   failure should occur, the Air Force does not have enough medium class   

   launch vehicles available to replenish the constellation as swiftly as  

   called for by present DoD policy. In essence, by requesting GPS         

   satellites for acquisition before they are needed or could ever be      

   launched, the Air Force is attempting to underwrite an ``insurance      

   policy'' that, in practical terms, it could never implement.            

      The Committee recognizes the importance of the total GPS system to   

   the Department of Defense and remains totally supportive of the program.

   The Committee also feels that as a cost savings measure and a more      

   realistic phasing of program funding to requirements, the acquisition of

   one GPS Block IIF satellite can be deferred until the next multi-year   

   block buy. Accordingly, the Committee makes this recommendation without 

   prejudice.                                                              

                          MEDIUM LAUNCH VEHICLES                         



      The Air Force requested $165,783,000 for the medium launch vehicle   

   program. The Committee recommends $147,783,000, a decrease of           

   $18,000,000. According to the General Accounting Office lower than      

   expected cost growth in fiscal year 1997, and the overstatement of funds

   requested for Delta launch failure recovery efforts in fiscal year 1998 

   makes this reduction possible. The Committee makes this recommendation  

   without prejudice to the program.                                       

                         DEFENSE SUPPORT PROGRAM                         



      The Air Force requested $113,708,000 for the Defense Support Program.

   The Committee recommends $108,708,000, a decrease of $5,000,000. The    

   Committee has reduced the budget request due to the availability of     

   prior year program funds and the Air Force's recent decision not to     

   pursue research studies to identify modifications needed to launch the  

   DSP satellite on the Evolved Expendable Launch Vehicle. Funds for these 

   studies were requested as part of this year's budget.                   

                             SPECIAL PROGRAMS                            



      Details of this adjustment are discussed fully in the classified     

   annex to this report.                                                   

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 157 Insert here                                           







                            PROCUREMENT OF AMMUNITION, AIR FORCE                  






                                                                               




                                                   




     Fiscal Year 1997 appropriation       $293,153,000  

     Fiscal Year 1998 budget request       403,984,000  

     Committee recommendation              414,884,000  

     Change from budget request            +10,900,000  



      This appropriation finances the acquisition of ammunition,           

   modifications, spares, weapons, and other ammunition-related items for  

   the Air Force.                                                          

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes to the budget request 

   in accordance with House authorization action:                          




                                                                                               

                                   [In thousands of dollars]                                   




Item                               Budget request    Committee recommendation    Change from request  




GBU 28 Hard Target Penetrator                   0                      16,800                +16,800  



                    WIND CORRECTED MUNITIONS DISPENSER                   



      The Air Force requested $19,871,000 for the Wind Corrected Munitions 

   Dispenser. The Committee recommends $10,471,000, a decrease of          

   $9,400,000 based on contract savings identified by the GAO.             

                                         CARTRIDGES                               



                               20mm pgu 28                               



      The Air Force requested no funds for 20MM PGU 28 ammunition. The     

   Committee recommends $3,500,000 only to procure 20MM PGU 28 ammunition  

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 159 Insert here                                           







                                OTHER PROCUREMENT, AIR FORCE                      






                                                                               




                                                      




     Fiscal year 1997 appropriation        $5,944,680,000  

     Fiscal year 1998 budget request        6,561,253,000  

     Committee recommendation               6,588,939,000  

     Change from budget request               +27,686,000  



      This appropriation provides for the procurement of weapons systems   

   and equipment other than aircraft and missiles. Included are vehicles,  

   electronic and telecommunications systems for command and control of    

   operational forces, and ground support equipment for weapon systems and 

   supporting structure.                                                   

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes in accordance with    

   House authorization action:                                             




                                                                                          

                                 [In thousands of dollars]                                




Item                          Budget request    Committee recommendation    Change from request  




Weather observ/forecast               18,013                      22,013                 +4,000  

TAC SIGINT support                     4,114                       9,114                 +5,000  

Radio Equipment                       12,844                      19,344                 +6,500  

DARP RC 135                           12,778                      47,778                +35,000  



                                 CARGO AND UTILITY VEHICLES                       



                        items less than $2,000,000                       



      The Air Force requested $5,025,000 for items less than $2,000,000.   

   The Committee recommends $3,625,000, a reduction of $1,400,000. The     

   budget request included $1.4 million for minor replacement items.       

   However, Air Force officials advised that there are no known            

   requirements for these items.                                           

                                  SPECIAL PURPOSE VEHICLES                        



                              hmmwv, armored                             



      The Air Force requested $24,181,000 for armored HMMWVs. The Committee

   recommends $7,781,000, a reduction of $16,400,000. The fiscal year 1998 

   budget requested additional funds for the Force                         

   Protection/Anti-Terrorism initiative. However, these vehicles are       

   already budgeted in the Force Protection/Anti-terrorism line of the     

   budget.                                                                 

                        items less than $2,000,000                       



      The Air Force requested $6,738,000 for items less than $2,000,000.   

   The Committee recommends $6,194,000, a reduction of $544,000 based on   

   fiscal year 1997 contract savings and unrequired contingency funding.   

                                MATERIALS HANDLING EQUIPMENT                      



                              60K A/C loader                             



      The Air Force requested $83,143,000 for the 60K A/C leader program.  

   The Committee recommends $51,143,000, a reduction of $32,000,000. This  

   program has been troubled by producibility and reliability problems     

   which have led to testing delays and a production stop. Independent     

   Operational Test and Evaluation will now occur in December 1997, with   

   the first contract award after the production break to follow in April  

   1998. The Committee notes that the Air Force has budgeted a full rate   

   lot in fiscal year 1998 of 60 units, and has scheduled delivery of the  

   first units in just nine months, even though the loader's normal        

   manufacturing lead-time is 16 months. Given the production problems in  

   this program, the Committee views this recovery plan to be overly       

   aggressive. Accordingly, the Committee recommends reducing the fiscal   

   year 1998 buy from 60 to 45 loaders, the level that had been planned in 

   fiscal year 1997.                                                       

                                   INTELLIGENCE PROGRAMS                          



                    INTELLIGENCE DATA HANDLING SYSTEM                    



      The Air Force requested $20,739,000 for intelligence data handling.  

   The Committee recommends $24,339,000, an increase of $3,600,000 only to 

   provide JSAS to Air Force battlelabs.                                   

                                    ELECTRONIC PROGRAMS                           



                      STRATEGIC COMMAND AND CONTROL                      



      The Air Force requested $20,505,000 for Strategic Command and        

   Control. The Committee recommends $19,005,000 a net decrease of         

   $1,500,000. The adjusted amount includes a decrease of $10,000,000 for  

   the terminated Improved Technical Data System (ITDS) and an increase of 

   $8,500,000 only for the DIRECT program. The Committee notes that the Air

   Force has identified DIRECT as a high priority unfunded requirement.    

                        SPECIAL COMMUNICATIONS-ELECTRONICS PROJECTS               



                            C3 COUNTERMEASURES                           



      The Air Force requested $14,904,000 for Command, Control, and        

   Communications Countermeasures. The Committee recommends $13,004,000, a 

   reduction of $1,900,000 based on excess funds available in fiscal year  

   1997.                                                                   



                                  AIR FORCE COMMUNICATIONS                        



                     BASE INFORMATION INFRASTRUCTURE                     



      The Air Force requested $88,945,000 for Base Information             

   Infrastructure enhancements. The Committee recommends $136,945,000, an  

   increase of $48,000,000 only for security enhancements to Air Force base

   information systems.                                                    

                   AIR FORCE SATELLITE CONTROL NETWORK                   



      The Air Force requested $32,197,000 for satellite control network    

   activities. The Committee recommends $23,097,000, a reduction of        

   $9,100,000 based on cancellation of the fiscal year 1997 Military       

   Satellite Communications system.                                        

                                    ORGANIZATION AND BASE                         



                        items less than $2,000,000                       



      The Air Force requested $8,960,000 for items less than $2,000,000.   

   The Committee recommends $6,160,000, a reduction of $2,800,000 based on 

   contract award problems and delayed obligation of funds for the Power   

   Conditioning and Continuation Interface Equipment (PCCIE) program.      

                           PERSONNEL SAFETY AND RESCUE EQUIPMENT                  



                           NIGHT VISION GOGGLES                          



      The Air Force requested $2,371,000 for night vision goggles. The     

   Committee recommends $13,271,000, an increase of $10,900,000 only for   

   accelerated procurement of night vision goggles and test sets.          

                                    ELECTRICAL EQUIPMENT                          



                        floodlights set type nf2d                        



      The Air Force requested $7,696,000 for floodlights. The Committee    

   recommends $4,696,000, a reduction of $3,000,000 based on production    

   contract award delays associated with the FL 1D floodlight.             

                                   BASE SUPPORT EQUIPMENT                         



                         medical/dental equipment                        



      The Air Force requested $13,295,000 for medical and dental equipment.

   The Committee recommends $8,095,000, a reduction of $5,200,000 based on 

   prior year contract savings in several programs.                        

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 163 to 164 Insert here                                    







                                 PROCUREMENT, DEFENSE-WIDE                        






                                                                               




                                                      




Fiscal year 1997 appropriation        $1,978,005,000  

Fiscal year 1998 budget request        1,695,085,000  

Committee recommendation               2,186,669,000  

Change from budget request              +491,584,000  



      This appropriation provides funds for the Procurement activities of  

   centrally managed programs and the Defense Agencies.                    

                                 COMMITTEE RECOMMENDATIONS                        



                          AUTHORIZATION CHANGES                          



      The Committee recommends the following changes in accordance with    

   authorization action:                                                   




                                                                                              

                                   [In thousands of dollars]                                  




                             Budget  request     Committee  recommendation     Change from  request  




Major Equipment, DSPO                 19,334                        14,334                   -5,000  



                             MAJOR EQUIPMENT                             



      The Department requested $104,601,000 for Major Equipment. The       

   Committee recommends $114,601,000, an increase of $10,000,000 only for  

   the Mentor-Prote AE1ge AE1 program.                                     

                      AUTOMATED DOCUMENT CONVERSION                      



      Information on this project can be found in the Information Resources

   Management section of this report.                                      

              ballistic missile defense organization (BMDO)              



      The Department requested no funds in Procurement, Defense-wide for   

   Patriot PAC 3, Navy Lower Tier and Battle Management and Control. The   

   Committee recommends that funds provided for these programs in other    

   Service accounts be transferred to BMDO, as proposed in the House-passed

   Defense Authorization bill.                                             

                                 SPECIAL OPERATIONS COMMAND                       



                            pc, cyclone class                            



      The Department requested no funds for Cyclone Class, Patrol Coastal  

   craft. The Committee recommends $10,700,000 only for the completion of  

   the fourteenth CYCLONE Patrol Coastal craft.                            

                         SOF INTELLIGENCE SYSTEMS                        



      The Department requested $21,175,000 for SOF intelligence systems.   

   The Committee recommends $25,475,000, an increase of $4,300,000. Of this

   amount, $800,000 is to procure additional data collection systems to    

   support the Integrated Survey Program; $1,500,000 is to purchase eight  

   B-Multi-Mission Advanced Tactical Terminals; and $2,000,000 is only for 

   the development of training capabilities for the Joint Threat Warning   

   System (JTWS). Additional O&M and RDT&E funds are also provided for     

   JTWS.                                                                   

                          CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                 



                          INDIVIDUAL PROTECTION                          



      The Department requested $64,855,000 for Chemical and Biological     

   Individual Protection. The Committee recommends $74,855,000, an increase

   of $10,000,000 only for 5,000 chemical biological (JSLIST) suits.       

                          COLLECTIVE PROTECTION                          



      The Department requested $17,316,000 for Chemical and Biological     

   Collective Protection. The Committee recommends $37,316,000, an increase

   of $20,000,000. Within this increase, $10,000,000 is only for Collective

   Protection Equipment shortfalls in Korea, $4,000,000 is only for 300    

   additional M 17LDS water sprayers for decontamination of airfields, and 

   $6,000,000 is only for 14 HMVV medical shelters.                        

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 167 Insert here                                           







                            NATIONAL GUARD AND RESERVE EQUIPMENT                  






                                                                               




                                                     




Fiscal year 1997 appropriation         $780,000,000  

Fiscal year 1998 budget request                      

Committee recommendation                850,000,000  

Change from budget request             +850,000,000  



      This appropriation provides funds for the procurement of tactical    

   aircraft and other equipment for the National Guard and Reserve.        

                                  COMMITTEE RECOMMENDATION                        



      The Committee recommends $850,000,000 to meet high priority          

   requirements of the National Guard and Reserve. This is in addition to  

   $1,770,300,000 provided elsewhere in Title III of the Committee bill for

   equipment which the Committee intends to be provided to the National    

   Guard and the Reserve Components.                                       

                             melios an/pvs 6                             



      The Committee is aware that the Army National Guard has a requirement

   for an improved eye-safe laser range finder that is compatible with the 

   devices fielded in the Active Army. The Mini-Eye-safe Laser Infrared    

   Observation Set (MELIOS) provides an improved capability and is being   

   fielded to the active Army. The Committee recommends $5,000,000 only for

   procurement of MELIOS for the Army National Guard.                      



                        T 39 REPLACEMENT AIRCRAFT                        



      The Committee recommends $10,000,000 to procure T 39 replacement     

   aircraft for the Marine Corps Reserve. The Committee directs that these 

   aircraft should meet the speed, range, payload, and cost per passenger  

   mile requirements as identified by the Commanding General, Marine Forces

   Reserve.                                                                

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 169 Insert here                                           








                         MISCELLANEOUS EQUIPMENT                         



      The Committee has provided $143,000,000 for miscellaneous equipment  

   and believes that the Chiefs of the Reserve and National Guard          

   components should exercise control of funds provided for miscellaneous  

   equipment. The Committee directs that separate, detailed submissions of 

   its modernization priorities by each of the Guard and Reserve component 

   commanders be submitted to the congressional defense committees and     

   recommends including bill language carried in previous years requiring  

   this submission. The Committee expects the component commanders to give 

   priority consideration to the following items: all-terrain cranes,      

   modular airborne fire fighting system units, CH 47 internal crash worthy

   fuel cells, back scatter truck inspection systems, ALR 56M radar warning

   receivers, theater deployable communication packages, AN/TQM 41 MMS,    

   M1A2s, M2A2s, night vision equipment, CH 47 ICH aircraft, litening      

   target and navigation pods, commercial industrial equipment, high speed 

   dirt compactors, AH 64 combat mission simulators, heavy equipment       

   transporter vehicles, MLRS launchers, high mobility trailers for HMMWV, 

   palletized loading systems, heavy expanded mobility tactical truck      

   wreckers, avengers, M109A6, automatic building machines, air defense    

   alerting device systems, interactive simulators, master cranes,         

   deployable universal combat earth movers, palletized loading systems,   

   and HEMTT wreckers.                                                     

                              INFORMATION RESOURCES MANAGEMENT                    



      The Defense Department requested $10,273,037,000 for information     

   resources management. The Committee recommends $10,387,937,000, an      

   increase of $114,900,000 as explained below:                            


          [In thousands of dollars]                                               



   Operation and Maintenance, Army:                                        







          High Risk Automation Systems                -25,000







          Army Logistics Automation                11,200



   Operation and Maintenance, Navy:                                        







          High Risk Automation Systems                -25,000







          Software Program Managers Network                6,000



   Operation and Maintenance, Air Force:                                   







          High Risk Automation Systems                -25,000







          REMIS                          8,900



   Operation and Maintenance, Defense-Wide:                                







          High Risk Automation Systems                -15,000







          Automated Document Conversion                30,000







          Military Personnel Information System                5,000



   Operation and Maintenance, Navy Reserve:                                







          NSIPS                          43,500



   Operation and Maintenance, Defense  Health Program:                     







          High Risk Automation Systems                -20,000







          PACMEDNET                      10,000



   Other Procurement, Army:                                                







          Army Logistics Automation                13,800







          SBIS                           13,000



   Other Procurement, Navy:                                                







          NSIPS                          20,500







          JEDMICS                        5,000



   Other Procurement, Air Force:                                           







          Base Information Infrastructure                48,000



   Procurement, Defense-Wide:                                              







          Automated Document Conversion                10,000



                                                                            



   Total                                                                   



 114,900                                                                 





                                  REMIS                                  



      The Air Force requested $32,647,000 for the Reliability and          

   Maintainability Information System (REMIS). The Committee recommends an 

   increase of $8,900,000 in Operation and Maintenance, Air Force to be    

   used only for REMIS projects related to IMDS conversion.                

                                 JEDMICS                                 



      The Navy requested $35,528,000 for the Joint Engineering Data        

   Management Information and Control System (JEDMICS). The Committee is   

   concerned that the unprotected transmittal of sensitive but unclassified

   data to remote users via the Internet subjects JEDMICS data to potential

   unauthorized access. The Department of Defense has made a substantial   

   investment in JEDMICS. Without the incorporation of required security   

   precautions, the system cannot be used with assurance. To maximize the  

   utility of JEDMICS and to protect the information as required by law and

   regulation, the Committee provides $5,000,000 in the Other Procurement, 

   Navy account to be used only to acquire and integrate an information    

   security solution.                                                      



                   SUSTAINING BASE INFORMATION SERVICES                  



      The Army requested $18,459,000 to maintain Sustaining Base           

   Information Services, which consists of 13 applications fielded to 33   

   installations. To take maximum advantage of the substantial investment  

   already made in software development, the Committee recommends adding   

   $13,000,000 to the Other Procurement, Army account only to field these  

   existing applications to another 15 installations.                      

                        ARMY LOGISTICS AUTOMATION                        



      The Army requested $37,521,000 for its Total Distribution Program.   

   The Committee recommends $62,521,000 an increase of $11,200,000 in      

   Operation and Maintenance, Army and an increase of $13,800,000 in Other 

   Procurement, Army. One of the deficiencies the Army identified during   

   Operation Desert Shield/Desert Storm was an inability to track shipments

   and quickly locate particular supplies as they moved through the        

   distribution system. The Army has begun acquiring technology that will  

   automatically record when supplies move past each major checkpoint as   

   well as allowing personnel to electronically query the contents of a    

   container without having to open it. The Committee strongly supports    

   this high priority effort.                                              

                      AUTOMATED DOCUMENT CONVERSION                      



      The Committee supports the Department of Defense goal of digitizing  

   all weapons engineering drawings by the year 2000 and all other drawings

   by the year 2002. The Committee agrees to provide a total of $40,000,000

   over the budget request only for this effort, of which $30,000,000 is in

   Operation and Maintenance, Defense-Wide for outsourcing bulk conversion 

   services and $10,000,000 is in Procurement, Defense-Wide for data       

   conversion products. These funds are to be directly managed by the      

   Computer Aided Logistics System executive within the Office of the      

   Secretary of Defense.                                                   

                  MILITARY PERSONNEL INFORMATION SYSTEMS                 



      The Committee continues to strongly support the fiscal year 1997     

   appropriation conference report direction regarding DoD-wide military   

   personnel information systems and the Navy Standard Integrated Personnel

   System (NSIPS) program management and implementation. The Department of 

   Defense has officially designated the Navy as the executive agent and   

   program manager for the DoD-wide or objective military personnel        

   information system. The Committee commends this action. After an        

   administrative delay, DoD and the Navy have begun work again and the    

   Committee directs both to provide the necessary resources to put this   

   critical program back on schedule and accelerate it if possible. The    

   Committee directs the Department of the Navy to maintain project and    

   program management and executive agent responsibilities for the         

   objective or DoD-wide system under the operational control and command  

   of the Commander, Naval Reserve Forces.                                 

      The Committee has provided $69,000,000 for NSIPS and DoD objective   

   system shortfalls and related Navy Reserve and Navy personnel           

   information management system functions and needs. Of this total amount,

   the Committee directs that $30,500,000 in Operation and Maintenance,    

   Navy Reserve and $18,000,000 in Other Procurement, Navy be allocated    

   only to the Commander, Naval Reserve Forces, to: (1) address NSIPS and  

   Navy objective system program management funding shortfalls; (2)        

   continue and escalate Navy central design activity (CDA) consolidations 

   and the consolidation of all Navy manpower and personnel information    

   systems with the Naval Reserve Information Systems Office; (3) evaluate 

   and maintain current personnel/manpower legacy systems for migration to 

   NSIPS and the DoD objective systems; (4) establish requirements data    

   bases and development platforms as well as develop pilot projects with  

   industry and academia to attract, train and retain needed skilled       

   software personnel for software incentive projects within the Navy and  

   DoD; and (5) provide initial outfitting equipment, communications, local

   area network (LAN) equipment, software, hardware and related            

   infrastructure support requirements for information system facilities.  

      Of the total amount, the Committee directs that $13,000,000 in       

   Operation and Maintenance, Navy Reserve and $2,500,000 in Other         

   Procurement, Navy be allocated only to the Commander, Naval Reserve     

   Forces for the Naval Reserve Information Systems Office for Naval       

   Reserve information management systems and related contractor support,  

   COTS integration efforts, and continuing electronic medium,             

   communications and LAN improvements to existing Naval Support Activity  

   and Naval Air Station facilities.                                       

      Of the total amount, the Committee has also provided an additional   

   $5,000,000 in Operation and Maintenance, Defense-Wide, only for the     

   DoD-wide objective military personnel system to be used by the Joint    

   Requirements and Integration Office.                                    

                    SOFTWARE PROGRAM MANAGERS NETWORK                    



      The Committee continues to support service programs and related      

   activities provided by the Software Program Managers Network (SPMN).    

   Despite support for this program at the DoD level and previous Committee

   direction, the budget requested no funds. The Committee recommends      

   $6,000,000 only for this effort in Operation and Maintenance, Navy. The 

   Committee directs that these funds and operational control of the SPMN  

   effort be transferred to the Assistant Secretary of the Navy for        

   Research and Development to: (1) continue original SPMN efforts to      

   improve acquisition and management of software development and          

   maintenance within all the services and DoD; (2) assist the Navy and    

   Naval Reserve in their program management efforts regarding DoD-wide and

   Naval military manpower personnel information systems; and (3) assist   

   the Navy and Naval Reserve in the development of industry and academia  

   pilot projects to attract, train and retain skilled software personnel  

   for software intensive projects within the Navy and DoD. It is the      

   Committee's intent that SPMN reflect the needs of program managers at   

   the ``grass roots'' level and that it not become an OSD top-down        

   directed program.                                                       

                       HIGH RISK AUTOMATION SYSTEMS                      



      The General Accounting Office (GAO) has identified a number of major 

   DoD automation systems as ``high risk''. The central weakness in these  

   automation syste