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 systems is that the development effort is moving ahead       

   without a completed economic analysis, proper milestones, measurable    

   goals or a reengineering study of the process being automated. The      

   Committee believes that it is preferable to limit development until     

   these steps have been taken than to risk a major program failure after  

   significant funds have been spent.                                      

      The Committee therefore recommends a reduction of $110,000,000 to be 

   allocated as follows:                                                   




                                                                               




                                                             




     Operation and Maintenance, Army                -$25,000,000  

     Operation and Maintenance, Navy                 -25,000,000  

     Operation and Maintenance, Air Force            -25,000,000  

     Operation and Maintenance, Defense-Wide         -15,000,000  

     Defense Health Program (CHCSII)                 -20,000,000  



      The Committee directs that DoD provide a report to the congressional 

   defense committees on how these reductions are being applied no later   

   than March 1, 1998. In addition, the Committee directs that none of     

   these reductions are to be applied against Year 2000 conversion efforts,

   automation programs to which the Committee has recommended increased    

   funding over the budget request, the Reserve Component Automation System

   or to any item of special interest.                                     



                                          TITLE IV                                



                         RESEARCH, DEVELOPMENT, TEST AND EVALUATION               



                            ESTIMATES AND APPROPRIATION SUMMARY                   



      The fiscal year 1998 Department of Defense Research, Development,    

   Test and Evaluation budget requests totals $35,934,491,000. The         

   accompanying bill recommends $36,704,924,000. The total amount          

   recommended is an increase of $770,433,000 above the fiscal year 1998   

   budget estimate, and is $736,197,000 less than the total provided in    

   fiscal year 1997. The table below summarizes the budget estimates and   

   the Committee's recommendations.                                        



   Offset Folio 175 insert here                                            







        federally funded research and development centers (ffrdcs)       



      The Committee notes that the fiscal year 1998 plan for Federally     

   Funded Research and Development Centers (FFRDCs) is well above the level

   of effort for the prior year. The planned increase of 231 staff         

   technical years of effort (STE) represents almost a seven percent       

   increase in level of effort over the limitation set by Congress in 1996.

   Also, given the prior year limitation of $1,161,000,000 and the         

   reduction of $52,000,000 taken against FFRDCs in 1997, the Committee    

   fails to understand why the Department is reporting an increase in      

   actual fiscal year 1997 spending.                                       

      Moreover, it appears the Department now plans to increase fiscal year

   1998 FFRDC expenditures by $49,520,953 over 1997 levels. These trends   

   and increases are not consistent with prior Congressional direction nor 

   the recommendation of the Defense Science Board (DSB) in January 1997.  

   The DSB report challenged the Department's use of FFRDCs and concluded  

   that the current FFRDC system ``does not provide the best available     

   service at the most reasonable cost.'' The DSB Task Force recommended   

   that: (1) work done by FFRDCs be ``more carefully defined and limited'' 

   (2) that competition be introduced and, (3) that management practices be

   changed at the beginning of 1998 to incorporate these changes. The      

   Committee therefore recommends a funding level that is consistent with  

   the DSB report and prior Congressional direction on FFRDCs and          

   recommends a reduction of $55,000,000 to bring FFRDC spending back in   

   line with the established Congressional funding limitation of           

   $1,100,000,000.                                                         

                              BASIC RESEARCH                             



      The Department of Defense requested over $1.1 billion for basic      

   research in fiscal year 1998, an increase of over ten percent compared  

   to the current fiscal year 1997 level. While the Committee supports the 

   need for the Defense Department to conduct a robust basic university    

   research program, in the context of the overall fiscal year 1998 defense

   budget such funding growth is unwarranted. In each of the services there

   are many programs that have long-standing yet unfulfilled warfighting   

   requirements and which have successfully completed R&D, yet no          

   production funds are requested in the budget ostensibly due to lack of  

   funds.                                                                  

      In addition, as in past years this year's budget submission included 

   large, unfunded shortfalls in defense medical programs, training and    

   readiness accounts, and other programs such as munitions which have     

   direct and immediate relevance to warfighting needs and the provision of

   an adequate quality of life for service members and their families. The 

   Committee has provided additional funds in this bill to address these   

   and other critical shortfalls. However the Committee questions whether  

   never-ending budget growth in basic research is wise, particularly in   

   the context of the Administration's failure to adequately address the   

   Defense Department's weapon system modernization needs. In light of the 

   Department's proposed misallocation of resources, the Committee         

   recommends reductions to basic research funding to maintain this program

   at the 1997 level.                                                      

                      NATO RESEARCH AND DEVELOPMENT                      



      The Department requested $53,479,000 for NATO Research and           

   Development across Service accounts. The Committee recommends no        

   appropriation.                                                          

      The Committee remains concerned that the NATO Research and           

   Development program is an example of a well intentioned federal program 

   which, once begun, never ends. This program, which provides initial     

   funding for international cooperative research and development projects,

   began in fiscal year 1986 at the height of the Cold War. Since that     

   time, over $800,000,000 has been spent to start cooperative projects,   

   very few of which have actually resulted in systems being fielded to    

   U.S. troops, and all of which require the military departments to find  

   ways to finance outyear costs. The Committee believes that this type of 

   program is not a priority program and is no longer affordable,          

   particularly as the Department and Services are trying to find ways of  

   financing higher priority requirements in areas such as readiness and   

   modernization. Therefore, the Committee recommends no appropriation.    

                             TACTICAL RADIOS                             



      The Committee commends the Assistant Secretary of Defense for        

   Command, Control, Communications, and Intelligence (ASDC3I) for         

   establishing an overall policy and providing planning, programming, and 

   budgetary guidance to the Services, CINC's, and DoD agencies for the    

   acquisition of tactical radios. Given the annual budget for tactical    

   radios, the Committee endorses the ASDC3I's efforts to ensure that      

   diverse Service and CINC communications requirements are satisfied,     

   while at the same time, ensuring that the acquisitions are cost         

   effective. The Committee is pleased that the Under Secretary of Defense 

   for Acquisition and Technology USD(A&T) and the ASDC3I are currently    

   reviewing Service communications programs and will make recommendations 

   for the establishment of a joint program to consolidate existing and    

   planned Service efforts. Since the review is currently on-going, the    

   Committee directs that no more than 25 percent of the funds appropriated

   for the research and development of a tactical radio may be obligated   

   until the ASDC3I certifies that the development program meets           

   interoperability requirements, is not duplicative of other developmental

   efforts, and is fully funded in the budget.                             

                         SPECIAL ACCESS PROGRAMS                         



      The Committee is concerned about the apparent reluctance of the      

   military services to respond to Committee requests for budgetary data on

   Special Access Programs (SAPs). In several instances, most notably with 

   the Army, the services failed to provide the Committee with requested   

   information in a timely manner. In each case, the data was eventually   

   provided, but only after repeated requests. This situation is           

   unacceptable. Therefore, the Committee directs the Secretary of Defense 

   to take necessary actions to ensure the services respond fully and      

   expeditiously to Committee requests to the military departments for     

   information on Special Access Programs.                                 

      The Committee, during the course of its review, has discovered a     

   number of programs in the Department that have been treated in a        

   SAP-like manner, but have not been formally identified to the Committee 

   as SAPs. Such practices do not conform with agreements between the      

   Congress and the Department on handling such information, and severely  

   complicate Congressional oversight of Departmental activities. The      

   Committee has resolved one such problem with the Air Force already.     

   However, the Committee is aware of a problem with a Navy program that   

   has not been adequately resolved. Accordingly, the Committee directs the

   Secretary of Defense to submit a report to the Committee no later than  

   September 30, 1997 that includes (1) a description of the program, (2)  

   the amount of funding for the program, past and future, by year, with   

   account and line-item detail, and (3) the steps the Department is taking

   to avoid such problems in the future. Further details are provided      

   separately in the classified annex of this report.                      

           COMBAT SURVIVOR EVADER LOCATOR (CSEL) SURVIVAL RADIO          



      The Combat Survivor Evader Locator (CSEL) survival radio system was  

   developed to satisfy a requirement for a communication capability to be 

   used in the search and rescue of downed airman and crew. Although the   

   CSEL was designed and developed to include a secure airborne            

   interrogator, this capability was not included in the current program.  

   The Committee understands that this deficiency increases the risk to an 

   airborne rescue force because the downed crew can not provide secure,   

   real-time position location data and situational awareness to the rescue

   force. Therefore, the Committee recommends that the Department of       

   Defense provide the necessary funding in future budgets for a secure,   

   airborne interrogator in CSEL.                                          

                      INSTITUTE FOR DEFENSE ANALYSES                     



      The Committee directs that not more than one-third of the funds (100 

   staff technical years of effort) in all appropriations in the bill for  

   the Institute for Defense Analyses (IDA) may be obligated until the     

   Under Secretary of Defense for Acquisition and Technology provides the  

   Committee with the results of any and every recent IDA study dealing    

   with tactical aircraft modernization or technical performance issues, at

   any level of classification. The Committee designates funds for IDA to  

   be an item of special interest, and this prior approval restriction     

   shall be so noted on DD Form 1414 (Base for Reprogramming Actions) for  

   fiscal year 1998.                                                       

                           CLASSIFIED PROGRAMS                           



      Adjustments to classified RDT&E programs are addressed in the        

   classified annex accompanying this report.                              



                      RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY            






                                                                               




                                                     




     Fiscal year 1997 appropriation       $5,062,763,000  

     Fiscal year 1998 budget request       4,510,843,000  

     Committee recommendation              4,686,427,000  

     Change from budget request             +175,584,000  



      This appropriation funds the Research, Development, Test and         

   Evaluation Activities of the Department of the Army.                    

                                 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  




Ballistics Technology                                33,317                   38,317                 +5,000  

Combat Vehicle and Automotive Adv Tech               32,685                   35,685                 +3,000  

Joint Service Small Arms Program                      4,754                   11,754                 +7,000  

Armament Enhancement Initiative                      40,313                   60,313                +20,000  

All Source Analysis System                           24,045                   27,545                 +3,500  

Aircraft Mod/Prod Improvements                        2,609                   22,609                +20,000  

Information Systems Security                          9,647                   12,147                 +2,500  



                                       BASIC RESEARCH                             



                       IN-HOUSE LABORATORY RESEARCH                      



      The Army requested $15,113,000 for in-house laboratory research. The 

   Committee recommends $14,113,000, a decrease of $1,000,000 due to fiscal

   constraints.                                                            

                        DEFENSE RESEARCH SCIENCES                        



      The Army requested $138,165,000 for defense research sciences. The   

   Committee recommends $120,165,000 a decrease of $18,000,000 to limit    

   program growth. Of the available funds, $1,000,000 is only to accelerate

   Intelligent Software Agent Research at the Army Research Laboratory.    

                 UNIVERSITY AND INDUSTRY RESEARCH CENTERS                



      The Committee recognizes the importance of electric gun research and 

   directs that adequate funds be provided in future budget submissions.   

        ARMY RESEARCH INSTITUTE FOR BEHAVIORAL AND SOCIAL SCIENCES       



      The Army requested $16,000,000 for the Army Research Institute (ARI) 

   for Behavioral and Social Sciences. The Committee recommends the budget 

   request. The Committee recognizes the importance of the ARI's research  

   activities related to personnel recruitment and training, as well as    

   issues related to gender and racial integration. The Committee          

   encourages the Army to adequately fund ARI research activities in future

   budget submissions.                                                     

                                  EXPLORATORY DEVELOPMENT                         



                   SENSORS AND ELECTRONIC SURVIVABILITY                  



      The Army requested $19,294,000 for sensors and electronic            

   survivability. The Committee recommends $24,294,000, an increase of     

   $5,000,000 only for the continued development of the passive millimeter 

   wave camera.                                                            

                       AVIATION ADVANCED TECHNOLOGY                      



      The Army requested $27,282,000 for aviation advanced technology. The 

   Committee recommends $22,282,000 a decrease of $5,000,000 which         

   maintains funding at the fiscal year 1997 appropriated level.           

                 COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY                



      The Army requested $33,112,000 for combat vehicle and automotive     

   technology. The Committee recommends $40,112,000 an increase of         

   $7,000,000. This includes an increase of $6,000,000 only to modernize   

   the Army's Tank and Vehicle Simulation Laboratory, an increase of       

   $3,000,000 only for the continued development of a Voice Instructional  

   Device for use on the National Automotive Center's Smart Truck program, 

   and a decrease of $2,000,000 for program termination.                   

      The Committee directs that of the available funds, $1,000,000 is only

   to develop the High Output Diesel Engine at the National Automotive     

   Center.                                                                 

           chemical, smoke, and equipment defeating technology           



      The Army requested $4,739,000 for chemical, smoke and equipment      

   defeating technology. The Committee recommends $2,739,000, a decrease of

   $2,000,000 to limit program growth.                                     

                     JOINT SERVICE SMALL ARMS PROGRAM                    



      The Army requested $4,786,000 for the joint service small arms       

   program. The Committee recommends $9,286,000, an increase of $4,500,000 

   only for the accelerated development of the Objective Crew Served       

   Weapon.                                                                 

                     WEAPONS AND MUNITIONS TECHNOLOGY                    



      The joint Army and Defense Special Weapons Agency program for        

   Electro-Thermal Chemical technology development (ETC) is evaluating ETC 

   for direct fire applications. The Committee believes that ETC technology

   may also have indirect fire applications. Therefore, the Committee      

   directs the Secretary of the Army to conduct a study which explores the 

   benefits of ETC for Army indirect fire applications. The study is to    

   address the issues associated with propellant and ETC ignitor           

   development, as well as system issues associated with platform          

   integration. The study is to be completed by March 1998. If the study   

   proves that ETC has indirect fire applications, the Committee encourages

   the Army to include this program in the fiscal year 1999 budget request.

                    ELECTRONICS AND ELECTRONIC DEVICES                   



      The Army requested $20,192,000 for electronics and electronic        

   devices. The Committee recommends $22,692,000, an increase of $2,500,000

   only for the development of standard-combustion, fuel driven,           

   man-portable, thermophotovoltaic generators.                            

                           COUNTERMINE SYSTEMS                           



      The Committee encourages the Army to examine potential funding for   

   the Charged Particle Beam Countermine System (CPB CMS), which the       

   Committee believes has the potential to detect and detonate all types of

   suface or buried mines at a safe stand-off distance through the use of a

   high current electron beam.                                             

                   HUMAN FACTORS ENGINEERING TECHNOLOGY                  



      The Army requested $14,256,000 for Human Factors Engineering. The    

   Committee recommends $18,256,000, an increase of $4,000,000 only for    

   Medical Teams.                                                          

                     ENVIRONMENTAL QUALITY TECHNOLOGY                    



      The Army requested $17,519,000 for Environmental Quality Technology. 

   The Committee recommends $42,219,000, an increase of $24,700,000. Of    

   this amount, $5,000,000 is only for support of life-cycle environmental 

   and manufacturing technologies research related to weapons systems and  

   munitions technology assessment and analysis at the Gallo Center,       

   Picatinny Arsenal. In addition, $2,000,000 is only for the U.S. Army    

   Construction and Engineering Research Laboratory to conduct an industry 

   cost-shared demonstration of emerging high-efficiency natural gas boiler

   technology. This increase also provides $5,000,000 only for the         

   implementation of the Commercialization of Technologies to Lower Defense

   Costs Initiative. Finally, the Committee provides $4,000,000 only for   

   Bioremediation Education, Science and Technology and $8,700,000 only for

   the Plasma Energy Pyrolysis System as provided for in the House-passed  

   Defense authorization bill.                                             



                     MILITARY ENGINEERING TECHNOLOGY                     



      The Army requested $36,422,000 for military engineering technology.  

   The Committee recommends $43,922,000, an increase of $7,500,000 only for

   further technology development to enhance the military capabilities and 

   economic efficiency of climate change fuel cells at the U.S. Army Corps 

   of Engineers Construction Engineering Research Laboratories.            



                            MEDICAL TECHNOLOGY                           



      The Army requested $74,684,000 for Medical Technology. The Committee 

   recommends $142,484,000, an increase of $67,800,000. Within this        

   increase, $25,000,000 is only for the continuation of the Army-managed  

   Neurotoxin Exposure Treatment Research Program, $9,800,000 is only for  

   neurofibromatosis, $3,500,000 is only for Army nutrition research,      

   $3,500,000 is only for orthopedic implant research, $6,000,000 is only  

   for the LSTAT, $10,000,000 is only for prostate cancer research, and    

   $10,000,000 is only for ovarian cancer research.                        

                            NEUROFIBROMATOSIS                            



      The Committee recommends $9,800,000 to continue the Army             

   neurofibromatosis medical research program which has produced important 

   advances in the understanding of NF. This work includes important       

   investigations into genetic mechanisms governing peripheral nerve       

   regeneration after injury from such things as missile wounds and        

   chemical toxins, and is important to gaining better understandings of   

   wound healing. The Committee compliments the Army Medical Research and  

   Material Command for structuring a highly regarded, peer-reviewed       

   program that is well coordinated with other research conducted at the   

   National Institutes of Health. The Committee urges the Army to focus    

   these funds on research leading to clinical trials of promising         

   treatments and therapies for NF.                                        

                             PROSTATE DISEASE                            



      The Committee recommends $10,000,000 to continue the Department's    

   nationally-recognized program to conduct basic and clinical research    

   studies to combat diseases of the prostate. The goal of this program is 

   to develop more effective, more specific and less toxic forms of therapy

   for patients in all stages of prostate disease. The Center for Prostate 

   Disease Research established under this program uses the large network  

   of military hospitals around the country as a resource for information  

   on the improved detection and treatment of prostate disease. The        

   Department should continue to give the highest priority to funding      

   research that is multi-institutional, multi-disciplinary and regionally 

   focused.                                                                

                                    ADVANCED DEVELOPMENT                          



                       MEDICAL ADVANCED TECHNOLOGY                       



      The Department requested $10,677,000 for Medical Advanced Technology.

   The Committee recommends $142,177,000, an increase of $131,500,000.     

   Within this increase, $100,000,000 is only for the Army peer-reviewed   

   breast cancer program, $8,000,000 is only for the National Medical      

   Testbed, $6,000,000 is only for catheterization lab upgrades at Walter  

   Reed, $3,500,000 is only for advanced cancer detection, $3,000,000 is   

   only for cooperative teleradiology, $6,000,000 is only for advanced     

   trauma care, $1,500,000 is only for artificial lung research, and       

   $3,500,000 is only for emergency telemedicine, as proposed in the       

   House-passed Defense Authorization bill.                                

                       AVIATION ADVANCED TECHNOLOGY                      



      The Army requested $31,330,000 for aviation advanced technology. The 

   Committee recommends $53,830,000, an increase of $22,500,000. Within    

   this increase, $5,000,000 is only to begin development of a short-range 

   unmanned aerial vehicle, $2,500,000 is only to define the potential     

   operational value and key technical issues related to an integrated     

   manned and unmanned aerial vehicle scout team, $11,600,000 is only for  

   development of the Stinger Universal Launcher (SUL), and $3,400,000 is  

   only for the Starstreak missile. The Committee provides the additional  

   funds for the SUL and Starstreak missile to ensure the Army maintains   

   the schedule for a fiscal year 1999 side-by-side test of both the       

   Stinger and the Starstreak missile on the Apache helicopter. The        

   Committee directs the Army to take all necessary steps, including       

   budgeting adequate fiscal year 1999 funds, to ensure such a side-by-side

   test will take place in fiscal year 1999.                               

                WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY                



      The Army requested $18,255,000 for weapons and munitions advanced    

   technology. The Committee recommends $25,255,000, an increase of        

   $7,000,000. Of the increase, $5,000,000 is only to accelerate trajectory

   correctable munitions development and $2,000,000 is only for precision  

   guided mortar munitions development.                                    

                  MISSILE AND ROCKET ADVANCED TECHNOLOGY                 



      The Army requested $117,139,000 for missile and rocket advanced      

   technology development. The Committee recommends $59,439,000, a         

   reduction of $57,700,000 based on the termination of the Army's Enhanced

   Fiber Optic Guided Missile (EFOG M). The Committee notes that EFOG M was

   not recommended for authorization this year based on technical and      

   testing concerns.                                                       

      This program, as currently structured, is essentially a multiyear    

   procurement program incrementally funded in the Army's science and      

   technology (S&T) research budget. Using funds normally associated with  

   fundamental research and technology demonstrations, the Army plans to   

   procure and field 256 missiles, 12 launch vehicles, and 4 command       

   vehicles to the 82nd Airborne for a ``limited go to war capability.''   

   The Army plans to field the weapon system without independent           

   operational testing and evaluation (IOT&E), formal milestone reviews, or

   many of the other fundamental acquisition requirements in place to      

   ensure DoD only procures safe, cost effective, operationally suitable,  

   and supportable weapon systems.                                         

      The EFOG M program is part of a larger Rapid Force Projection        

   Initiative (RFPI) Advanced Concept Technology Demonstration (ACTD). A   

   ``principle'' of ACTDs is that after a technology is demonstrated, it   

   can be left behind to operational units for further use and evaluation. 

   The Army is abusing this ``principle'' by procuring missiles and        

   vehicles far in excess of those required for the ACTD. The ACTD requires

   only 44 missiles, 8 launch vehicles, and 2 command vehicles. The Army is

   using S&T funds to buy an additional 256 missiles that will not be      

   consumed in ACTD testing as well as additional launchers and command    

   vehicles to field an entire company in the 82nd Airborne.               

      Since the program's funding is buried within a larger R&D line-item, 

   neither Congress nor OSD has visibility into the yearly quantities and  

   costs that would normally appear in a missile procurement budget that   

   complies with the ``full funding'' policy. The Committee also notes that

   the 256 missiles are being produced under a multiyear contract that has 

   never been explicitly approved by Congress as would be required had the 

   missiles been funded in a procurement account. Abuse of so many basic   

   acquisition and financial policies jeopardizes the Committee's support  

   of the ACTD ``leave behind'' principle. The Committee expects DoD to    

   review its ACTD programs to ensure the minimum amount of equipment is   

   being developed to support only the ACTD. The Committee has also        

   included a general provision that addresses this overall growing problem

   within DoD by prohibiting the use of R&D funds to buy end-items that    

   will not be used in support of testing.                                 

             LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY            



      The Army requested $19,332,000 for landmine warfare and barrier      

   advanced technology. The Committee recommends $25,932,000, an increase  

   of $6,600,000. Of the increase, $3,900,000 is only to continue the      

   development of the Vehicular Mounted Mine Detection (VMMD) system and   

   $2,700,000 is only to test the Ground Stand-off Mine detection system as

   part of the VMMD advanced technology demonstration.                     

                  line-of-sight technology demonstration                 



      The Army requested $13,000,000 for the Line-Of-Sight Advanced        

   Technology anti-tank missile system. The Committee recommends no funding

   for this program, a decrease of $13,000,000. Starting with the fiscal   

   year 1998 President's Budget, the Army has restructured the LOSAT       

   program as an ACTD using an acquisition model very similar to the EFOG M

   program (discussed elsewhere in this report). Like EFOG M, the Army is  

   using the ``leave behind'' principle of ACTDs to develop, procure, and  

   field 13 fire units and 178 missiles to the 82nd Airborne using science 

   and technology research funding. The 178 missiles will not be consumed  

   in testing and Army documentation shows a FY 2003 ``fielding'' date with

   a note that states, ``funded [R&D] program provides initial operating   

   capability.'' The Committee strongly objects to this kind of R&D funded 

   procurement scheme and states its intent to deny or realign funding for 

   any programs in the future where such abuse of fundamental and          

   traditional acquisition program and budget procedure is discovered.     

      The Committee is also concerned with the number of ``tank killers''  

   the Army is trying to field in the 82nd Airborne. In the coming years,  

   the 82nd Airborne's anti-tank capabilities will include Hellfire,       

   Javelin, and Follow-On To Tow (FOTT) weapon systems. Each of these will 

   be by far the most advanced anti-tank weapons of their kind on the      

   battlefield. LOSAT would provide the 82nd Airborne with a capability    

   that will be, in many ways, duplicative to FOTT. Both weapon systems are

   employed on HMMWVs and have similar ranges. While LOSAT has the         

   advantage of extreme lethality, FOTT has the advantage of having greater

   targeting flexibility and being a fire and forget weapon. Also, FOTT is 

   an objective system for the entire Army and will be proliferated        

   throughout the Service using the existing Tow infrastructure. Given     

   these considerations, the Committee views the LOSAT acquisition program 

   as both inappropriately structured and wasteful and therefore recommends

   its termination.                                                        

                                DEMONSTRATION AND VALIDATION                      



                 ARMY MISSILE DEFENSE SYSTEMS INTEGRATION                



      The Army requested $24,138,000 for Army missile defense systems      

   integration. The Committee recommends $55,638,000, an increase of       

   $31,500,000 only to test the Tactical High Energy Laser (THEL)          

   demonstrator. Subsequent to the budget submission, the Secretary of     

   Defense and Israel agreed the THEL demonstrator should undergo U.S.     

   government developmental testing. The government developmental test     

   would be the first opportunity to validate the capability of the        

   demonstrator to shoot down rockets in flight before it is given to      

   Israel. The Secretary of Defense proposed that the U.S. provide         

   two-thirds and the Israeli government one-third of the funds required to

   complete the government developmental test. However, no funds are       

   included in the fiscal year 1998 budget request for the government      

   developmental test. The recommended increase will pay the two-thirds    

   share for THEL testing as proposed by the Secretary of Defense. The     

   Committee notes that the fiscal year 1998 budget includes $16,500,000   

   for THEL development and contractor testing. The Committee has also     

   recommended an additional $10,000,000 in program element 0605605A, High 

   Energy Laser Systems Test Facility, for test site preparation.          

                      AVIATION ADVANCED DEVELOPMENT                      



      The Army requested $7,132,000 for aviation advanced development. The 

   Committee recommends $15,132,000, an increase of $8,000,000. Of the     

   amount, $3,000,000 is only to continue the development of the aircrew   

   integrated common helmet development and $5,000,000 is only to develop  

   retinal display technologies for the aircrew integrated common helmet.  

                      ARTILLERY SYSTEMS DEVELOPMENT                      



      The Army requested $324,380,000 for artillery systems development    

   (Crusader). The Committee recommends the amount requested. The Committee

   expresses its continued support for the Crusader development program and

   believes that the Crusader artillery system has the potential to        

   increase future artillery and maneuver force effectiveness. The         

   Committee encourages the Army to provide adequate funding program in    

   future budget submissions to ensure that the Crusader acquisition plan  

   remains on schedule.                                                    



                          ENGINEERING AND MANUFACTURING DEVELOPMENT               



                              EW DEVELOPMENT                             



      The Army requested $66,212,000 for EW Development. The Committee     

   recommends $86,524,000, an increase of $20,312,000 to integrate lessons 

   learned in the Force XXI Advanced Warfighting Experiment and meet the   

   goal of IOT&E in fiscal year 1998.                                      

                    FAMILY OF HEAVY TACTICAL VEHICLES                    



      The Army requested no funding for the family of heavy tactical       

   vehicles. The Committee recommends $5,000,000 only to design, develop,  

   and integrate state-of-the-art technologies into future tactical        

   trailers.                                                               

                           AIR TRAFFIC CONTROL                           



      The Army requested $1,705,000 for air traffic control. The Committee 

   recommends $4,705,000, an increase of $3,000,000. The Committee has     

   learned that inadequate funds were budgeted to complete testing of the  

   Air Traffic Navigation Integration and Coordination System (ATNAVICS).  

   Therefore, the Committee has transferred funds from ATNAVICS procurement

   to research and development to complete testing.                        

                      LIGHT TACTICAL WHEELED VEHICLE                     





      The Army requested $9,909,000 for light tactical wheeled vehicle     

   development. The Committee recommends no funding for this program. The  

   Army is currently developing a light tactical wheeled vehicle strategy  

   based on future requirements and budgets and is considering four        

   alternatives: continue to procure the current vehicle; modify the       

   current vehicle; procure a new commercial vehicle; or develop a new     

   light tactical wheeled vehicle. The Committee has requested that the    

   Army provide detailed cost and requirement analysis of the light        

   tactical wheeled vehicle strategy; however, the study will not be       

   complete until fiscal year 1998. Although the Army has not completed its

   evaluation of various alternatives for light weight tactical vehicles,  

   the Army's budget request essentially is predetermining the outcome of  

   the study. The Committee directs that the Army provide by September 15, 

   1997 a report outlining the light weight tactical vehicle alternatives  

   which the Army is currently evaluating. The report is to include the    

   requirements, estimated development and acquisition costs, and estimated

   operation and support costs for each alternative.                       

                 COMBAT FEEDING, CLOTHING, AND EQUIPMENT                 



      The Army requested $55,964,000 for combat feeding, clothing and      

   equipment development. The Committee recommends $65,264,000 an increase 

   of $9,300,000 only for the continued testing and development of the     

   Force XXI Landwarrior system.                                           

                   AUTOMATIC TEST EQUIPMENT DEVELOPMENT                  



      The Army requested $2,582,000 for automatic test equipment           

   development. The Committee recommends $11,582,000, an increase of       

   $9,000,000 only for Integrated Family of Test Equipment development.    

                      COMBINED ARMS TACTICAL TRAINER                     



      The Army requested $2,823,000 for the development of the Combined    

   Arms Tactical Trainer. The Committee recommends $13,323,000, an increase

   of $10,500,000 only for the development and testing of the Close Combat 

   Tactical Trainer (CCTT). After the fiscal year 1998 budget was submitted

   to the Congress, the Army made significant changes to the CCTT          

   acquisition schedule because of problems associated with system         

   reliability. The new acquisition schedule delays operational testing    

   until April 1998 and the delivery of an operational system by at least  

   one year. Since the fiscal year 1998 budget does not reflect the revised

   acquisition schedule, the Committee has recommended additional funding  

   to resolve reliability issues associated with the development of the    

   CCTT.                                                                   

             LANDMINE WARFARE/BARRIER ENGINEERING DEVELOPMENT            



      The Army requested $22,605,000 for landmine warfare/barrier          

   engineering development. The Committee recommends $8,905,000, a decrease

   of $13,700,000. The Committee has deleted the funds for the engineering 

   and manufacturing development (EMD) of the Airborne Standoff Minefield  

   Detection System (ASTAMIDS). The Committee has and continues to be a    

   strong supporter of countermine systems and has added funding for the   

   development of such systems. Last year, the Congress believed that the  

   ASTAMIDS system was not ready to enter EMD until results from a Bosnia  

   qualification test were available. Therefore, the Congress provided an  

   additional $12,000,000 to complete advanced development work required on

   the two competing systems in anticipation of a Bosnia qualification     

   test. Since the budget submission, the Committee has learned that       

   neither system met the exit criteria for the Bosnia qualification test  

   and that both ASTAMIDS systems are encountering technical difficulties. 

   Once again, the Committee believes that it is premature to enter EMD and

   appropriates no funds.                                                  

                    SENSE AND DESTROY ARMAMENT MISSILE                   



      The Army requested $22,372,000 the Sense and Destroy Armanent Missile

   (SADARM). The Committee recommends $5,494,000, a decrease of $16,878,000

   to delay the development of the product improvement program of SADARM.  

   The Committee is a strong supporter of the SADARM program and has       

   provided funding to procure SADARM. However, the baseline SADARM        

   development program was plagued with technical difficulties. Until      

   scheduled testing is completed on the baseline system in fiscal year    

   1998, the Committee believes that the product improvement program can be

   delayed.                                                                

                                  RDT&E MANAGEMENT SUPPORT                        



                   DOD HIGH ENERGY LASER TEST FACILITY                   



      The Army requested $14,952,000 for the DoD High Energy Laser Test    

   Facility (HELSTF). The Committee recommends $30,952,000, an increase of 

   $16,000,000 of which $10,000,000 is only to conduct live fire tests of  

   the Tactical High Energy Laser System at HELSTF and $6,000,000 is only  

   for the solid state laser development program.                          

                        MATERIEL SYSTEMS ANALYSIS                        



      The Army requested $29,707,000 for material systems analysis. The    

   Committee recommends $14,707,000, a decrease of $15,000,000. The        

   Committee notes that the fiscal year 1998 budget request includes the   

   transfer of funds from operation and maintenance. However, the Committee

   does not believe that the Army's budget submission adequately justifies 

   the costs associated with material systems analysis. The budget         

   submission does not provide cost data for salaries, travel, and number  

   of personnel. Furthermore, the Committee is concerned with the level of 

   operational testing resources dedicated for Advanced Concept Technology 

   Demonstrations, Advanced Technology Demonstrations, and the Advanced    

   Warfighting Experiments. The Committee believes that since these        

   activities are demonstrations and not formal acquisition programs,      

   testing costs should be included in the budget lines funding the        

   individual demonstrations and experiments. Additionally, given the      

   decrease in Major Defense Acquisition Programs, the Committee believes  

   that the management and support cost associated with the operational    

   test of such systems should also decrease.                              

                      SUPPORT OF OPERATIONAL TESTING                     



      The Army requested $81,672,000 for support of operational testing.   

   The Committee recommends $51,672,000, a decrease of $30,000,000. The    

   Committee is aware that the budget request for this activity increased  

   in fiscal year 1998 because funding was transferred from operation and  

   maintenance to research and development. Based on the Army budget       

   materials, the Committee believes the majority of the fiscal year 1998  

   funding is to conduct operational testing associated with the Advanced  

   Warfighting Experiments. Furthermore, the Army's budget justification   

   materials do not provide cost data for the number of personnel,         

   salaries, travel and associated operational costs for test and          

   evaluation support activities. The Committee notes that some of the     

   systems scheduled to undergo operational testing in fiscal year 1997    

   have been delayed, such as the ASTAMIDS, Close Combat Tactical Trainer, 

   and the ATNAVICS system. Therefore, fiscal year 1997 funds should be    

   available to address any fiscal year 1998 shortfalls.                   



                          PROGRAMWIDE ACTIVITIES                         



      The Army requested $86,208,000 for programwide activities. The       

   Committee recommends $66,208,000, a decrease of $20,000,000. The fiscal 

   year 1998 budget request is 30 percent higher than last year's          

   appropriated amount. The Committee notes that the majority of the       

   increase was to fund the federal workforce restructure. However, the    

   Committee believes that the Army budget justification materials do not  

   provide sufficient rationale to warrant such an increase in fiscal year 

   1998.                                                                   

           MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY           



      The Army requested $6,317,000 for munitions standardization,         

   effectiveness, and safety. The Committee recommends $9,317,000, an      

   increase of $3,000,000 only to develop a blast chamber for              

   demilitarizing excess and obsolete ammunition at the Blue Grass Army    

   Depot.                                                                  

                         ENVIRONMENTAL COMPLIANCE                        



      The Army requested $51,378,000 for environmental compliance. The     

   Committee recommends $56,378,000, an increase of $5,000,000 only for the

   U.S. Army Construction and Engineering Research Laboratory for further  

   technology development to enhance the military applications and economic

   efficiency of fuel cells.                                               

      In the fiscal year 1994 Defense Appropriations Act, the Congress     

   provided an increase of $2,700,000 in this program element for an       

   environmental remediation project that was authorized in the fiscal year

   1994 Defense Authorization Act. The Committee is disappointed to note   

   that the Department redirected $1,700,000 of this funding to another    

   project. The Committee understands that work has already begun in       

   coordination with the Army Corps of Engineers, but it cannot be         

   completed as planned without the restoration of the funds. The Committee

   therefore directs the Department to provide $1,700,000 from within      

   available funds to complete this effort and to expand the project area  

   accordingly.                                                            



                      AEROSTAT JOINT PROJECT OFFICE                      



      The Army requested $86,193,000 for the Aerostat Joint Program Office.

   The Committee recommends no funding for this activity. The Aerostat     

   Joint Program Office has been conducting concept of operation studies   

   and developing an operational requirements document. Since fiscal year  

   1996, the Army has spent over $30,000,000 for concept studies; however, 

   there is still not a validated requirement or a completed vulnerability 

   assessment for the Aerostat system. According to the joint program      

   office, the total cost of the concept development and Advanced Concept  

   Technology Demonstration phase of the Aerostat program will be over     

   $600,000,000 after which the Army will have one operational Aerostat.   

   The Committee is also aware that the Army five year budget plan for this

   program is underfunded by $120,000,000.                                 

      The Committee is, frankly, taken aback by the Army development       

   community's grandiose plans for this program in light of the            

   well-documented and understood shortfalls in not only other Army        

   modernization programs, but in all Army accounts. Absent any firm       

   program requirements, validated mission or user need, vulnerability     

   assessment, or plans to ultimately procure Aerostats, the Committee     

   recommends termination of this program, as well as rescission of        

   available prior year appropriations.                                    

                    COMBAT VEHICLE IMPROVEMENT PROGRAM                   



      The Army requested $136,520,000 for the combat vehicle improvement   

   program. The Committee recommends $152,520,000, an increase of          

   $16,000,000 of which $12,000,000 is only to integrate field emission    

   flat panel displays on the Abrams tank and $4,000,000 is only to        

   continue the development of the AN/VVR 1 laser warning receiver.        

                               DIGITIZATION                              



      The Army requested $156,960,000 for digitization. The Committee      

   recommends $75,560,000, a decrease of $81,400,000. Of the amount,       

   $38,900,000 has been transferred to the Force XXI Initiative            

   appropriation and $52,500,000 has been transferred to fund Warfighting  

   Rapid Acquisition Program (WRAP) initiatives not included in the fiscal 

   year 1998 budget submission. Further details are provided under the     

   heading Force XXI Initiatives. An additional $10,000,000 is only to     

   procure Tactical Personnel Communications Services for experimentation  

   at the next Advanced Warfighting Experiment at Fort Hood.               

      The Army's Training and Doctrine Command (TRADOC) has played an      

   important role in the digitization program; however, the Committee      

   believes that TRADOC's dominant role should not continue into the system

   acquisition phase. TRADOC represents the ``user'' and the Committee     

   believes that digitization development, operational tests, and          

   evaluation should be under the management of an acquisition executive.  

   Therefore, the Committee directs that the Army designate a Program      

   Manager and establish a Battlefield System Acquisition Program Office   

   prior to the Milestone I/II decision to initiate the system acquisition 

   phase. The Committee is concerned that without the establishment of an  

   acquisition program office, that major technical, cost, and schedule    

   issues can not be adequately managed.                                   

      During the March 1997 Advanced Warfighting Experiment, the Army found

   that voice-data contention on SINCGARS nets seriously limited the       

   Commander's ability to command and control his forces. The Army has     

   plans to replace SINCGARS with an interim Near Term Digital Radio (NTDR)

   followed by Future Digital Radio (FDR). The NTDR is currently in        

   development. FDR development is scheduled for fiscal year 1999; fielding

   would begin in fiscal year 2004. The Army wants to field its interim    

   digitized division in fiscal year 2000; however, until the FDR is       

   fielded, the division will have a very limited capability to transmit   

   data. The Committee believes that the digital tactical radio acquisition

   program is not in sync with the overall digitization of the battlefield 

   plan and directs the Army to submit with the fiscal year 1999 budget a  

   tactical radio plan which would meet the requirements of the interim    

   digitized division. The plan is to include requirements, cost, and      

   acquisition schedule. Furthermore, the Committee directs that the Army  

   coordinate the plan with the Assistant Secretary of Defense for Command,

   Control, Communications and Intelligence.                               

             missile/air defense product improvement program             



      The Army requested $17,412,000 for air defense missile improvements. 

   The Committee recommends $27,412,000, an increase of $10,000,000 only   

   for the Patriot Anti-Cruise Missile program.                            

                       JOINT TACTICAL GROUND SYSTEM                      



      The Army requested $3,195,000 for the Joint Tactical Ground System.  

   The Committee recommends $6,195,000, an increase of $3,000,000 to       

   continue the upgrades under Phase I of the JTAGS P3I program.           

               END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES               



      The Army requested $44,326,000 for end item industrial preparedness  

   activities. The Committee recommends $54,326,000, an increase of        

   $10,000,000. Of that amount $5,000,000 is only for the development of   

   the M829E3 munitions production capability and $5,000,000 only to       

   accelerate munitions manufacturing technology.                          



                           FORCE XXI INITIATIVE                          



      The Army requested no funds for Force XXI initiatives. The Committee 

   recommends $38,900,000 only for the Warfighting Rapid Acquisition       

   Program (WRAP). The budget request includes $100,000,000 for WRAP       

   initiatives in the Army's digitization appropriation. Last year, the    

   Congress established a separate program element for WRAP initiatives. In

   accordance with last year's Act, the Committee recommends the transfer  

   of WRAP funding from the Digitization to the Force XXI Initiative       

   program element. The Army has identified fiscal year 1998 WRAP funding  

   to continue initiatives which were approved in fiscal year 1997. The    

   Committee has established new program elements for the fiscal year 1997 

   initiatives and transferred the fiscal year 1998 WRAP funding as        

   identified by the Army to continue each initiative. The Committee has   

   provided funding for the following WRAP initiatives in fiscal year 1998:




                                                                               




                                                                  




    Research, Development, Test and Evaluation, Army                  

     Striker                                               $3,900,000  

     Mortar Fire Control                                   10,000,000  

     Applique (funded in Digitization)                      2,600,000  

     Tactical Internet (funded in Digitization)             6,000,000  

    Other Procurement, Army                                           

     Gun Laying Positioning System                          6,000,000  

     Radio Frequency Technology                             2,900,000  

     Lightweight Laser Designator/Range Finder              2,800,000  

     Combat Synthetic Training Assessment Range             5,400,000  

     Airborne Command and Control System                   11,100,000  

     Avenger Slew to Cue                                    7,400,000  

     Palletized Loading System Enhanced                     3,000,000  



      The Committee has recommended a new general provision which prohibits

   the DoD from using research and development funds to procure end-items  

   for delivery to military forces. To comply with the general provision,  

   the Committee has recommended that the funding budgeted for the         

   procurement of WRAP items be transferred to Other Procurement, Army.    

      As in fiscal year 1997, the Congress directs that no funds may be    

   obligated from the Force XXI Initiative appropriation without prior     

   notification to the congressional defense committees. Notification is to

   include the supporting criteria outlining the technical merit and       

   maturity; criticality and priority to warfighting requirements;         

   affordability; effectiveness; and sustainability in future budget       

   submissions for the items under consideration. Once again, the Committee

   directs that none of the Force XXI funds may be used for technologies   

   included in the budget request, such as applique, night vision          

   equipment, and radios. Instead, Force XXI funds are to be reprogrammed, 

   with prior notification, to the appropriate account for obligation.     

      The Committee notes that the Army's unfunded requirements list       

   included approximately $90,000,000 for digitization efforts. The        

   Committee believes that those shortfalls, which ensure interoperability 

   and systems architecture development, should be funded before Force XXI 

   initiatives.                                                            

                                 STRIKER                                 



      The Army requested no funds for Striker. The Committee recommends    

   $3,900,000 only for Striker. Additional details are provided under the  

   heading ``Force XXI Initiatives.''                                      

                           MORTAR FIRE CONTROL                           



      The Army requested no funds for Mortar Fire Control (MFC). The       

   Committee recommends $10,000,000 only for MFC. Additional details are   

   provided under the heading ``Force XXI Initiatives.''                   

                   THEATER PRECISION STRIKE OPERATIONS                   



      The Army requested no funds for Theater Precision Strike Operations  

   (TSPO). The Committee recommends $5,000,000 only for TSPO.              

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 0193 to 0195 Insert here                                  





                      RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY            






                                                                               




                                                      




     Fiscal year 1997 appropriation        $8,208,946,000  

     Fiscal year 1998 budget request        7,611,022,000  

     Committee recommendation               7,907,837,000  

     Change from budget request              +296,815,000  



      This appropriation provides funds for the Research, Development, Test

   and Evaluation activities of the Department of the Navy and the Marine  

   Corps.                                                                  

                                 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  




ASW systems development (ADLFP)                               22,869                       26,669                 +3,800  

Advanced submarine combat systems development                 61,122                       62,422                 +1,300  

Carrier systems development                                   98,587                       10,187                -88,400  

Shipboard system component development                        19,194                       22,694                 +3,500  

Advanced submarine system development                         59,067                      162,067               +103,000  

Marine Corps assault vehicles                                 60,134                       70,134                +10,000  

Marine Corps ground combat support system                     36,464                       40,064                 +3,600  

Standards development                                         36,297                       40,297                 +4,000  

Tactical command system                                       31,518                       41,518                +10,000  

H 1 Upgrades                                                  80,735                       86,335                 +5,600  

Acoustic search sensors (AEER)                                16,947                       20,947                 +4,000  

Arsenal ship                                                 102,994                            0               -102,994  

Distributed surveillance                                      33,048                       43,448                +10,400  

F/A 18 squadrons                                             316,976                      207,776               -109,200  

Tomahawk and Tomahawk mission planning center                 93,359                       91,500                 -1,859  

Consolidated training systems development                     58,956                       36,456                -22,500  



                                       BASIC RESEARCH                             



                 in-house independent laboratory research                



      The Navy requested $15,834,000 for in-house independent laboratory   

   research. The Committee recommends $14,683,000, a decrease of $1,151,000

   due to fiscal constraints.                                              

                        DEFENSE RESEARCH SCIENCES                        



      The Navy requested $366,283,000 for defense research sciences. The   

   Committee recommends $336,463,000, a decrease of $29,820,000. This      

   includes a decrease of $39,820,000 to hold the program to the 1997 level

   and an increase of $10,000,000 only for molecular design research as    

   recommended in the House-passed Authorization bill.                     

                                  EXPLORATORY DEVELOPMENT                         



          surface/aerospace surveillance and weapons technology          



      The Navy requested $32,273,000 for surface/aerospace surveillance and

   weapons technology. The Committee recommends $29,273,000, a decrease of 

   $3,000,000 due to fiscal constraints.                                   

                         SURFACE SHIP TECHNOLOGY                         



      The Navy requested $46,859,000 for surface ship technology. The      

   Committee recommends $53,859,000, an increase of $7,000,000. This       

   includes increases recommended in the House-passed Defense Authorization

   bill: $6,000,000 only for power electronic building blocks, $1,500,000  

   only for power node control centers, and $2,500,000 only for            

   micromechanical systems technology for damage tolerant networks. An     

   additional $2,000,000 is only to enhance on-going Navy collaborative    

   efforts for the application for underwater vehicle derived component    

   level intelligent distributed control technology to Navy surface ship   

   automation. A decrease of $5,000,000 is also recommended due to fiscal  

   constraints.                                                            

                           AIRCRAFT TECHNOLOGY                           



      The Navy requested $23,590,000 for aircraft technology. The Committee

   recommends $25,390,000, an increase of $1,800,000. Within this amount,  

   $2,800,000 is only to continue the technical evaluation and integration 

   of advanced high resolution and brightness pixel flat panel displays    

   into Navy integrated day/night all-weather helmet mounted displays. A   

   decrease of $1,000,000 is also recommended due to fiscal constraints.   

             command, control, and communications technology             



      The Navy requested $65,566,000, for C3 technology. The Committee     

   recommends $59,566,000, a decrease of $6,000,000 due to fiscal          

   constraints.                                                            

        readiness, training, and environmental quality technology        



      The Navy requested $31,762,000 for readiness, training, and          

   environmental quality technology. The Committee recommends $47,362,000, 

   an increase of $15,600,000. Within this amount, $16,000,000 is only for 

   development of sea-state 3 lighterage systems and $2,600,000 is only for

   the Smart Aircrew Integrated Life Support System and                    

   psycho-physiological assessment. A decrease of $3,000,000 is also       

   recommended due to fiscal constraints. Concerning lighterage, the       

   Committee recommends that the Navy test extensively the capabilities of 

   the current ELCAS(M) style pontoons and potential upgrades to perform   

   sea state 3 missions.                                                   



             materials, electronics, and computer technology             



      The Navy requested $76,653,000 for materials, electronics, and       

   computer technology. The Committee recommends $73,653,000, a decrease of

   $3,000,000. Within this amount $2,000,000 is only for qualification of  

   new processes such as resin transfer molding and second source materials

   such as carbon fibers and $2,000,000 is only to develop a composite     

   storage capsule for laboratory and at-sea testing for use by Navy SEALs 

   on submarines. A decrease of $7,000,000 is also recommended due to      

   fiscal constraints.                                                     

                      ELECTRONIC WARFARE TECHNOLOGY                      



      The Navy requested $22,810,000 for electronic warfare technology. The

   Committee recommends $21,810,000, a decrease of $1,000,000 due to fiscal

   constraints.                                                            

                 UNDERSEA SURVEILLANCE WEAPON TECHNOLOGY                 



      The Navy requested $51,033,000 for undersea surveillance weapon      

   technology. The Committee recommends $46,033,000, a decrease of         

   $5,000,000 due to fiscal constraints.                                   

                 OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY                



      The Navy requested $48,211,000 for oceanographic and atmospheric     

   technology. The Committee recommends $77,711,000, an increase of        

   $29,500,000 as recommended in the House-passed Defense Authorization    

   bill. Within this amount, $10,000,000 is only to continue autonomous    

   underwater vehicle and sensor development, $16,000,000 is only for ocean

   partnerships, $2,750,000 is only to implement the consolidation of the  

   Naval Surface Warfare Center South Florida Test Facility through        

   continuation of collaborative marine vehicle research efforts, and      

   $750,000 is only for PM 10. In addition, $2,000,000 from available funds

   is available only for arctic research as recommended by the House-passed

   Defense Authorization bill.                                             

                   UNDERSEA WARFARE WEAPONRY TECHNOLOGY                  



      The Navy requested $35,736,000 for undersea warfare weaponry         

   technology. The Committee recommends $31,736,000, a decrease of         

   $4,000,000 due to fiscal constraints. Of the amount provided, $5,000,000

   is only for continued development of COTS airgun technology as an       

   acoustic surveillance source as recommended in the House-passed Defense 

   Authorization bill.                                                     

                                    ADVANCED DEVELOPMENT                          



               AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY               



      The Navy requested $35,093,000 for air systems and weapons advanced  

   technology. The Committee recommends $41,193,00, an increase of         

   $6,100,000. Within that amount, $11,500,000 is only for Maritime        

   Avionics Subsystems and Technology (MAST) and $2,000,000 is only for    

   Integrated High Payoff Rocket Technology. A decrease of $7,400,000 is   

   also recommended due to fiscal constraints.                             

                     PRECISION STRIKE AND AIR DEFENSE                    



      The Navy requested $43,320,000 for precision strike and air defense. 

   The Committee recommends $44,320,000, an increase of $1,000,000. This   

   includes an increase of $5,000,000 only for mobile off-shore basing and 

   a decrease of $4,000,000 due to fiscal constraints.                     

                  ADVANCED ELECTRONIC WARFARE TECHNOLOGY                 



      The Navy requested $18,144,000 for advanced electronic warfare       

   technology. The Committee recommends $17,144,000, a decrease of         

   $1,000,000 due to fiscal constraints.                                   



                          SHIP PROPULSION SYSTEM                         



      The Navy requested $39,737,000 for ship propulsion technology. The   

   Committee recommends $34,737,000, a decrease of $5,000,000. Within this 

   amount, $5,000,000 is only for active control of machinery rafts        

   (Project M) which shall be applied to both surface ship and submarine   

   applications. A decrease of $10,000,000 is also recommended due to      

   fiscal constraints.                                                     

              MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION             



      The Marine Corps requested $34,178,000 for the Marine Corps advanced 

   technology demonstration. The Committee recommends $63,478,000, an      

   increase of $29,300,000. Within the increase, $20,300,000 is only for   

   the Commandant's Warfighting Laboratory, $5,000,000 is only to continue 

   the SMAW product improvement program and $4,000,000 is only for two     

   kilowatt proton exchange membrane fuel cell development.                

                            Medical Technology                           



      The Navy requested $18,332,000 for Medical Technology. The Committee 

   recommends $72,732,000, an increase of $54,400,000. Within this         

   increase, $34,000,000 is available only for bone marrow, $2,600,000 is  

   only for the naval biodynamics lab, $5,500,000 is only for biocide      

   materials research, $2,500,000 is only for freeze-dried blood,          

   $4,000,000 is only for dental research, $4,000,000 is only for the      

   mobile medical monitor and $3,000,000 is only for rural health. In      

   addition, the Committee recommends a reduction of $1,200,000 for fleet  

   health.                                                                 

                     Manpower, Personnel and Training                    



      The Navy requested $18,812,000 for manpower, personnel, and training 

   technology. The Committee recommends $20,502,000, an increase of        

   $1,690,000. Within this amount, $3,690,000 is only for virtual reality  

   environment research for training for military and non-combat           

   operations. The goal of this research is to develop virtual reality     

   training capability for the Department of Defense, including safe       

   mission rehearsal and realistic battlefield scenario depiction, and     

   flexible training simulations to provide three dimensional tactical     

   pictures. A decrease of $2,000,000 is also recommended due to fiscal    

   constraints.                                                            

                   Environmental Quality and Logistics                   



      The Navy requested $18,249,000 for environmental quality and         

   logistics technology. The Committee recommends $18,999,999, an increase 

   of $750,000. Within this amount, $1,750,000 is only for a 250 kilowatt  

   proton exchange membrane fuel cell demonstration recommended in the     

   House-passed Defense Authorization bill and $1,000,000 is only for      

   visualization of technical information. A decrease of $2,000,000 is also

   recommended due to fiscal constraints.                                  

                   Undersea Warfare Advanced Technology                  



      The Navy requested $54,785,000 for undersea warfare. The Committee   

   recommends $46,385,000, a decrease of $8,400,000 due to fiscal          

   constraints.                                                            

                     Shallow Water MCM Demonstrations                    



      The Navy requested $41,602,000 for shallow water mine countermeasure 

   demonstrations. The Committee recommends $38,352,000, a decrease of     

   $3,250,000. This includes an increase of $750,000 only for obstacle     

   destruction through mounting a GPU 5 gunpod on LCAC craft and a decrease

   of $4,000,000 due to fiscal constraints.                                

                      Advanced Technology Transition                     



      The Navy requested $87,285,000 for advanced technology transition.   

   The Committee recommends $73,052,000, a decrease of $14,233,000. This   

   includes a decrease of $18,233,000 to hold the program to the 1997 level

   and an increase of $4,000,000 only for the high frequency surface wave  

   radar. The Committee directs that none of the reduction be applied to   

   the RAMICS or affordable array technology projects.                     

                          c3 advanced technology                         



      The Navy requested $23,768,000 for C3 advanced technology. The       

   Committee recommends $22,368,000, a reduction of $1,400,000 due to      

   fiscal constraints.                                                     

                                DEMONSTRATION AND VALIDATION                      



                          AVIATION SURVIVABILITY                         



      The Navy requested $7,859,000 for aviation survivability. The        

   Committee recommends $16,959,000, an increase of $9,100,000 only for    

   development of the Navy Integrated day/night all-weather display helmet 

   into the AV 8B, F/A 18, and Advance Strike Fighter aircraft and         

   $3,000,000 is only for visualization architecture and technology at the 

   Naval Aircraft Warfare Center Aircraft Division, Patuxent River.        

              SURFACE AND SHALLOW WATER MINE COUNTERMEASURES             



      The Navy requested $58,231,000 for surface and shallow water mine    

   countermeasures. The Committee recommends $71,131,000, an increase of   

   $12,900,000, of which $7,900,000 is for the remote minehunting system   

   and $5,000,000 is only for the Integrated Combat Weapon System on MCM   

   and MHC mine hunting ships. Both projects are recommended in the        

   House-passed Defense Authorization bill.                                

                  ADVANCED SUBMARINE SYSTEM DEVELOPMENT                  



      The Navy requested $59,067,000 for advanced submarine system         

   development. The Committee recommends $162,067,000, an increase of      

   $103,000,000 as recommended in the House-passed Defense Authorization   

   bill. The Committee directs that none of these funds may be used for a  

   technology demonstrator program until the Navy submits a program plan to

   the Appropriations Committees at least 30 days prior to obligation of   

   funds that provides a plan, acquisition strategy, costs, and schedule.  

                    ADVANCED SURFACE MACHINERY SYSTEMS                   



      The Navy requested $49,741,000 for advanced surface machinery        

   systems. The Committee recommends $44,741,000, a decrease of $5,000,000 

   to the Intercooled Recuperative gas turbine engine. The Intercooled Gas 

   Turbine engine program is an international cooperative development      

   program to develop a more fuel efficient powerplant for surface         

   combatant ships. During hearings this year the Committee discovered that

   the program requires an additional $100 million to complete development.

   After that, there remains an unfunded requirement for an additional $100

   million for at-sea testing of the engine. Without at-sea testing, the   

   engine could never be a candidate for installation in U.S. warships even

   after expenditure of over $400 million. The Navy testified this year    

   that it would recommended termination of the ICR program if the United  

   Kingdom and France do not pay at least half of the shortfall for full   

   engine qualification as well as make suitable arrangements for sharing  

   future cost growth in the development program. The Committee makes this 

   reduction in anticipation of savings to the United States due to        

   successful negotiation of an international cost-sharing agreement.      



                          Conventional munitions                         



      The Navy requested $34,190,000 for conventional munitions            

   technologies. The Committee recommends $38,190,000, an increase of      

   $4,000,000 only for development of optical correlator technology.       

                       ADVANCED WARHEAD DEVELOPMENT                      



      The budget requested $2,012,000 in the MK 50 torpedo line-item. The  

   Committee recommends no appropriations since the effort planned is      

   unrelated to the MK 50 torpedo. The Committee has instead moved these   

   funds to the lightweight torpedo development line-item, and expects the 

   Navy to budget for the effort in the appropriate line-item in the       

   future.                                                                 

                          COOPERATIVE ENGAGEMENT                         



      The Navy requested $139,229,000 for development of cooperative       

   engagement capability. The Committee recommends $223,229,000, an        

   increase of $84,000,000. Within this amount $20,000,000 is for E 2/CEC  

   integration, $15,000,000 is for CEC/TBMD development efforts,           

   $15,000,000 is for development of a low cost common equipment set,      

   $13,000,000 is for reduced schedule risk and integrated logistics       

   support, $5,000,000 is for CEC/SSDS integration, $5,000,000 is for      

   Hawk/CEC integration, $5,000,000 is for design agent transfer,          

   $3,000,000 is for fleet CEC exercises, and $3,000,000 is for LAMPS data 

   link interference. The Navy may allocate these funds within the CEC     

   program to best meet overall program objectives.                        

                         ENVIRONMENTAL PROTECTION                        



      The Navy requested $52,401,000 for Environmental Protection. The     

   Committee recommends $56,401,000, an increase of $4,000,000 only for the

   Resource Recovery Technology Center.                                    

                          FACILITIES IMPROVEMENT                         



      The Navy requested $1,720,000 for facilities improvement. The        

   Committee recommends $6,720,000, an increase of $5,000,000 only for wood

   composite research.                                                     

                          LAND ATTACK TECHNOLOGY                         



      The Navy requested $37,809,000 for land attack technology. The       

   Committee recommends $81,909,000, an increase of $44,100,000. Within    

   this amount, the following increases are recommended in accordance with 

   the House-passed Defense Authorization bill: $20,000,000 only for Navy  

   TACMS, $15,100,000 for the Extended Range Guided Munition, and          

   $5,000,000 for microelectromechanical systems guidance and control. An  

   additional $4,000,000 is only for the Land Attack Standard Missile      

   (LASM). The Navy should not assume Committee approval of the LASM       

   program until and unless funds are provided in the final Fiscal Year    

   1998 Defense Appropriations Act. The Committee strongly supports the    

   next-generation Naval gun system and directs the Navy to keep this      

   initiative on schedule for program definition and risk reduction        

   demonstrations leading to the fielding of an advanced Naval 155mm gun   

   system.                                                                 

                           JOINT STRIKE FIGHTER                          



      The Navy requested $448,855,000 for the Joint Strike Fighter. The    

   Committee has approved the budget request for this program in full in   

   Navy, Air Force, and DARPA accounts. Within this amount, $6,000,000 is  

   only to develop and test a high temperature version of the eddy current 

   sensor and an eddy current array sensor for use on the propulsive lift  

   system and the engine turbo-machinery. Developing these sensors now will

   allow their inclusion in the Joint Strike Fighter baseline design, as   

   well as make them available for other aircraft engine diagnostics. An   

   additional $1,000,000 is available only for engine turbine fan          

   improvement.                                                            

                         ENGINEERING AND MANUFACTURING DEVELOPMENT                



                          OTHER HELO DEVELOPMENT                         



      The Navy requested $73,354,000 for other helicopter development. The 

   Committee recommends $85,354,000, an increase of $12,000,000 of which   

   $7,000,000 is only to maintain the schedule of the block II upgrade and 

   support the insertion of ruggedized, scalable commercial off-the-shelf  

   avionics technology for the SH 60R helicopter program and $5,000,000 is 

   only for the air interoperability center fiber optic backbone at the    

   Naval Air Warfare Center Aircraft Division, Patuxent River.             

                       AIRCREW SYSTEMS DEVELOPMENT                       



      The Navy requested $12,111,000 for aircrew systems development. The  

   Committee recommends $18,111,000, an increase of $6,000,000 only to     

   continue phase two of the NACES II ejection seat product improvement    

   program.                                                                

                            ELECTRONIC WARFARE                           



      The Navy requested $101,803,000 for electronic warfare. The Committee

   requested $104,603,000, an increase of $2,800,000 only for precision    

   targeting as recommended in the House-passed Defense Authorization bill.



               SURFACE COMBATANT COMBAT SYSTEM ENGINEERING               



      The Navy requested $87,934,000 for surface combatant combat system   

   engineering. The Committee recommends $142,134,000, an increase of      

   $54,200,000. This includes $43,000,000 only for TBMD/UYQ 70 architecture

   development and $14,000,000 for program shortfalls. A reduction of      

   $2,800,000 is recommended by the General Accounting Office since a joint

   tactical control sea test has been postponed until 1999.                

                               ARSENAL SHIP                              



      The Navy requested $102,994,000 and DARPA requested $47,200,000 for  

   development of an Arsenal Ship demonstrator. The Committee agrees with  

   the House National Security Committee that a delay in the program is    

   appropriate, given the great number of changes the Navy proposes to make

   in purpose and scope of the demonstrator ship. The Committee questions  

   the acquisition strategy of continuing with arsenal ship contracts to   

   construct a $500 million ship which is twice the size of the surface    

   combatant application to be demonstrated, and which includes contract   

   options for arsenal ships that differ from a land attack combatant      

   demonstrator. The Navy should first define its requirements, and then   

   award contracts; the current acquisition strategy is the reverse. The   

   Committee is also concerned that CINC's have not requested such a ship. 

   In the context of the fiscal year 1998 budget, where the Navy proposes  

   no funding for installation of critical warfighting improvements such as

   cooperative engagement, ship self defense, CIWS surface mode, and TBMD  

   capabilities for DDG 51 ships, the Arsenal ship is clearly of much lower

   priority. As noted in the Committee's hearings with Navy witnesses this 

   year, converting Trident submarines to a conventional land attack       

   configuration after START II is probably a more effective and affordable

   solution to meeting warfighting requirements. Finally, as discussed     

   elsewhere in this report, the Committee is disturbed about the          

   Administration's plan to field 12 new production DDG 51 destroyers to   

   the fleet without cooperative engagement and theater ballistic missile  

   defense capabilities. The Committee notes that if the Navy were to      

   cancel the Arsenal Ship Demonstrator, sufficient funds would be         

   available to fix the destroyer problem as well as many other pressing   

   surface warfare issues.                                                 

                     LPD 17 CLASS SYSTEMS INTEGRATION                    



      The Navy requested $471,000 for LPD 17 class systems integration. The

   Committee recommends $13,471,000, an increase of $13,000,000 only for   

   initial design studies and ship development efforts for command ship    

   replacement, land attack weapons integration, shipboard personnel       

   reduction technology and work process improvements for LPD 17 class     

   ships.                                                                  

                                  TSSAM                                  



      The Navy requested $9,644,000 for the Navy's participation in the Air

   Force JASSM program. The Committee recommends no funds for this program.

   The Committee has recommended termination of the JASSM program discussed

   elsewhere in this report since the Navy's SLAM ER+ missile, in          

   production in fiscal year 1998, meets the JASSM threshold requirements. 

                               VLA UPGRADE                               



      The Navy requested no funds for VLA Upgrades. The Committee          

   recommends $12,000,000 only for integration of the lightweight hybrid   

   torpedo on the VLA rocket.                                              

                      AIRBORNE MINE COUNTERMEASURES                      



      The Navy requested $16,503,000 for airborne mine countermeasures. The

   Committee recommends $19,503,000, an increase of $3,000,000 only for    

   SWIMS projector development.                                            

                    SSN 688 AND TRIDENT MODERNIZATION                    



      The Navy requested $42,294,000 for SSN 688 and Trident submarine     

   modernization. The Committee recommends $52,294,000, an increase of     

   $10,000,000 for multi-purpose processors as recommended in the          

   House-passed Defense Authorization bill.                                

                         SUBMARINE COMBAT SYSTEM                         



      The Navy requested $23,701,000 for development of submarine combat   

   systems. The Committee recommends $2,366,000, a decrease of $21,335,000 

   as recommended by the General Accounting Office due to postponement of  

   the SSN 21 submarines' AN/BSY 2 combat system technical evaluation and  

   operational evaluations beyond fiscal year 1998.                        



                              NEW DESIGN SSN                             



      The Navy requested $311,076,000 for development of the New Attack    

   Submarine. The Committee recommends $331,076,000, an increase of        

   $20,000,000 of which $17,000,000 is recommended in the House-passed     

   Defense Authorization bill for the Advanced Submarine Tactical          

   Electronic Combat System/Integrated Mast and $3,000,000 is only for     

   glass reinforced plastic and rubber sandwich sonar domes.               

                           SSN 21 DEVELOPMENTS                           



      The Navy requested $49,542,000 for SSN 21 developments. The Committee

   recommends $12,332,000, a decrease of $37,210,000 recommended by the    

   General Accounting Office due to a delay in installation of an advanced 

   special hull treatment and system qualification/inspection during SSN 21

   post shakedown availability.                                            

                  SHIP CONTRACT DESIGN/LIVE FIRE TESTING                 



      The Navy requested $75,713,000 for ship contract design and live fire

   testing. The Committee recommends $64,713,000, a decrease of            

   $11,000,000. This includes an increase of $17,000,000 to accelerate     

   advanced technology development for the next aircraft carrier (CVN 77)  

   as recommended in the House-passed Defense Authorization bill and a     

   decrease of $28,000,000 to slow the pace of development of the next     

   generation destroyer (DD 21). These funds have been applied to more     

   urgent requirements for CIWS surface mode and infrared search and track 

   development.                                                            

                     NAVY TACTICAL COMPUTER RESOURCES                    



      The Navy requested $4,794,000 for tactical computer resources. The   

   Committee recommends $39,294,000, an increase of $34,500,000 of which   

   $17,500,000 is only for integration of AN/UYQ 70 displays into          

   submarines, $10,000,000 is only for virtual prototyping of electronic   

   circuits, and $7,000,000 is only to integrate the AN/UYQ 70 Advanced    

   Display System into existing Marine Expeditionary Force command         

   elements.                                                               

                     LIGHTWEIGHT TORPEDO DEVELOPMENT                     



      The Navy requested $17,290,000 for development of the lightweight    

   hybrid torpedo. The Committee recommends $19,302,000, an increase of    

   $2,012,000 only for lightweight hybrid torpedo software development.    

                            ship self-defense                            



      The Navy requested $132,270,000 for ship self-defense. The Committee 

   recommends $190,870,000, an increase of $58,600,000. Within this amount,

   $19,000,000 is for the Quick Reaction Combat Capability, $12,000,000 is 

   for the ship self-defense test ship, $8,600,000 is only to refurbish an 

   AN/SPS 48E for the Wallops Island ship defense test facility, $9,000,000

   is only for the development of the SPQ 9B radar, and $10,000,000 is only

   for Infrared Search and Track.                                          

                           Medical Development                           



      The Navy requested $3,620,000 for Medical Development. The Committee 

   recommends $16,920,000, an increase of $13,300,000. Within this         

   increase, $8,500,000 is only for casualty monitoring and $4,800,000 is  

   only for Navy Telemedicine.                                             

                     DISTRIBUTED SURVEILLANCE SYSTEM                     



      The Navy requested $33,048,000 for the Distributed Surveillance      

   System program. The Committee recommends $43,448,000, an increase of    

   $10,400,000. Of this amount, $7,800,000 is only to package the          

   all-optical deployable system (AODS) into an advanced deployable system 

   (ADS) and to test the deployment of this system at sea. The remaining   

   $2,600,000 is for the development of signal processing and detection    

   algorithms for the ADS.                                                 

                                  RDT&E MANAGEMENT SUPPORT                        



                        TARGET SYSTEMS DEVELOPMENT                       



      The Navy requested $48,308,000 for target systems development. The   

   Committee recommends $45,408,000, a reduction of $2,900,000 due to      

   cancellation of the Non-Cooperative Airborne Vector Scorer after the    

   budget was submitted.                                                   

                           MAJOR T&E INVESTMENT                          



      The Navy requested $33,236,000 for major test and evaluation         

   investment. The Committee recommends $39,236,000, an increase of        

   $6,000,000 only for development of an East Coast Communications Network 

   at the Naval Aircraft Warfare Center Aircraft Division, Patuxent River. 

                       STUDIES AND ANALYSIS SUPPORT                      



      The Navy requested $8,755,000 for studies and analysis support. The  

   Committee recommends $6,679,000, a decrease of $2,076,000 to hold the   

   program at the 1997 level.                                              

                      TECHNICAL INFORMATION SERVICES                     



      The Navy requested $8,763,000 for technical information services.    

   Included in that amount is $8,000,000 proposed for the Acquisition      

   Center of Excellence. When the Committee agreed to a Navy proposal last 

   year to provide funds for the center ($500,000 was provided in the      

   Department of Defense Appropriations Act for fiscal year 1998), the     

   Committee did not know that an additional $16,000,000 is required in    

   fiscal years 1998 and 1999, and an undetermined amount thereafter. This 

   amount of funding is inappropriate for a simple support activity to the 

   acquisition community. The Committee notes that this amount of funding  

   in fiscal year 1998 could equip two amphibious assault ships with ship  

   self-defense suites, or six combatant ships with CIWS surface mode, or  

   six LMSR sealift ships with lighterage, or funded the baseline 6/7      

   shortfall in the DDG 51 program to provide theater ballistic missile    

   defense capability to three ships in 1998. The Committee questions the  

   Navy preference for funding acquisition laboratories in the National    

   Capital Region at the expense of theater CINC critical warfighting      

   requirements. The Committee recommends $763,000, a reduction of         

   $8,000,000 with prejudice.                                              

             management, technical, and international support            



      The Navy requested $24,305,000 for management, technical, and        

   international support. The Committee recommends $19,305,000, a decrease 

   of $5,000,000 to hold the program at the 1997 level.                    

                    SCIENCE AND TECHNOLOGY MANAGEMENT                    



      The Navy requested $57,591,000 for science and technology management.

   The Committee recommends $55,961,000, a decrease of $1,630,000 due to   

   fiscal constraints.                                                     

                       TEST AND EVALUATION SUPPORT                       



      The Navy requested $263,934,000 for test and evaluation support. The 

   Committee recommends $235,908,000, a decrease of $28,026,000. This      

   includes a decrease of $30,026,000 to hold the program to the fiscal    

   year 1997 level and an increase of $2,000,000 only for safety items as  

   recommended in the House-passed Defense Authorization bill.             

                    MARINE CORPS PROGRAM WIDE SUPPORT                    



      The Marine Corps requested $8,207,000 for Marine Corps program wide  

   support. The Committee recommends $12,707,000, an increase of $4,500,000

   only for the development of a small unit biological detector.           



                              OPERATIONAL SYSTEMS DEVELOPMENT                     



                             HARM improvement                            



      The Navy requested $6,169,000 for anti-radiation missile development 

   activities. The Committee recommends $41,169,000, an increase of        

   $35,000,000 only for continued development of AARGM.                    

                          AVIATION IMPROVEMENTS                          



      The Navy requested $60,025,000 for aviation improvements. The        

   Committee recommends $51,025,000, a decrease of $9,000,000 to defer     

   proposed engine component improvement new start initiatives until next  

   year when the production programs are more mature.                      

                    MARINE CORPS COMMUNICATIONS SYSTEM                   



      The Marine Corps requested $38,296,000 for Marine Corps              

   Communications Systems. The Committee recommends $45,296,000, an        

   increase of $7,000,000. Of the increase, $2,000,000 is only for the     

   development of a tactical hand-held radio and $5,000,000 is only to     

   develop a secure digital data link capability for UAV systems.          

                MARINE CORPS GROUND COMBAT/SUPPORTING ARMS               



      The Marine Corps requested $12,568,000 for Marine Corps Ground Combat

   and Supporting Arms. The Committee recommends $14,668,000, an increase  

   of $2,100,000 only for the development of the AN/VVR 1 laser warning    

   receiver.                                                               

             defense meteorological satellite program (space)            



      The Navy requested $3,165,000 for the Defense Meteorological         

   Satellite Program. The Committee recommends $1,198,000, a decrease of   

   $1,967,000. The Committee has deleted funds for sensor development for  

   the next generation weather satellite as this effort is premature at    

   this time. The Committee's recommendation concerning this program is    

   discussed more fully in the ``Research, Development, Test, and          

   Evaluation, Air Force'' section of this report.                         

                         MANUFACTURING TECHNOLOGY                        



      The Navy requested no funds for manufacturing technology. The        

   Committee recommends $55,000,000. The Committee makes this              

   recommendation because Navy witnesses testified that the Navy has       

   identified over $100,000,000 of manufacturing technology proposals which

   are deemed by the Navy to have a significant return on investment by    

   lowering the risk of acquisition and to make weapon systems more        

   affordable.                                                             

                                    PROGRAM RECOMMENDED                           



      The total recommended in the bill will provide the following program 

   in fiscal year 1998:                                                    



  offset folios 209to 211 insert here                                     







                   RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE          






                                                                               




                                                      




     Fiscal year 1997 appropriation       $14,499,606,000  

     Fiscal year 1998 budget request       14,451,379,000  

     Committee recommendation              14,315,456,000  

     Change from budget request              -135,923,000  



      This appropriation funds the Research, Development, Test and         

   Evaluation activities of the Department of the Air Force.               

                                 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  




Command, Control, Communications              86,067                      89,067                 +3,000  

ICBM DEMVAL                                   32,837                      49,337                +16,500  

ICBM EMD                                     137,944                     152,944                +15,000  

TITAN                                         82,384                      67,384                -15,000  

DARP                                               0                      14,990                +14,990  

RSLP                                           8,013                      33,013                +25,000  



                        AIR FORCE AND ARMY LABORATORY RESTRUCTURING               



      The Committee understands the need to streamline research and        

   development activities in view of budgetary constraints. However, the   

   Committee is concerned about plans to combine runway R&D conducted by   

   the Air Force with R&D the Army is pursuing on pavement repair. The     

   Committee understands the importance of the airbase deployment and      

   sustainment work currently being conducted by the Air Force and urges   

   the Department to ensure that this capability is not lost due to        

   consolidation of activities at its existing laboratories.               



                                       BASIC RESEARCH                             



                        DEFENSE RESEARCH SCIENCES                        



      The Air Force requested $226,832,000 for defense research sciences.  

   The Committee recommends $183,332,000, a net decrease of $43,500,000.   

   The Committee has recommended a reduction of $48,500,000 and an increase

   of $5,000,000 only for the Center for Adaptive Optics.                  

      The Committee's recommendation includes the requested amount of      

   $650,000 for support to the Sacramento Peak Observatory. The Committee  

   directs that the full amount be provided to Sacramento Peak and         

   designates this project to be of specific Committee interest.           

                                  EXPLORATORY DEVELOPMENT                         



                                MATERIALS                                



      The Air Force requested $70,224,000 for materials exploratory        

   development. The Committee recommends $73,224,000, an increase of       

   $3,000,000 only for development of composite shelters.                  

                            AEROSPACE AVIONICS                           



      The Air Force requested $69,401,000 for aerospace avionics. The      

   Committee recommends $68,061,000, a decrease of $1,340,000 which brings 

   the program more in line with the fiscal year 1997 level.               

                   PHILLIPS LAB EXPLORATORY DEVELOPMENT                  



      The Air Force requested $111,136,000 for Phillips Lab exploratory    

   development. The Committee recommends $131,636,000, an increase of      

   $20,500,000. Within this amount $8,000,000 is only for Phase III of the 

   Terabit fiber optic technology program, $10,000,000 is only for the     

   MightySat program, and $7,500,000 is only for integrated high payoff    

   rocket propulsion technology applications.                              

                              ADVANCED TECHNOLOGY DEVELOPMENT                     



                  ADVANCED MATERIAL FOR WEAPONS SYSTEMS                  



      The Air Force requested $20,596,000 for advanced material for weapons

   systems. The Committee recommends $26,596,000, an increase of $6,000,000

   only for developing enhanced manufacturing capabilities for infrared    

   absorbing aircraft coatings.                                            

               AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION               



      The Air Force requested $30,564,000 for aerospace propulsion         

   subsystems integration. The Committee recommends $28,318,000, a         

   reduction of $2,246,000 which brings the program more in line with the  

   fiscal year 1997 level.                                                 

                           AEROSPACE STRUCTURES                          



      The Air Force requested $15,032,000 for aerospace structures. The    

   Committee recommends $10,423,000, a reduction of $4,609,000 which brings

   the program more in line with the fiscal year 1997 level.               

             CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY            



      The Air Force requested $17,204,000 for crew systems and personnel   

   protection technology. The Committee recommends $26,204,000, an increase

   of $9,000,000 which includes $5,000,000 only for ejection seat          

   technology, $3,000,000 only for helmet display technology and $1,000,000

   only for laser eye protection.                                          



                  FLIGHT VEHICLE TECHNOLOGY INTEGRATION                  



      The Air Force requested $7,795,000 for flight vehicle technology     

   integration activities. The Committee recommends $6,423,000, a reduction

   of $1,372,000 which brings the program more in line with the fiscal year

   1997 level.                                                             



                       ELECTRONIC COMBAT TECHNOLOGY                      



      The Air Force requested $25,621,000 for electronic combat technology.

   The Committee recommends $30,871,000, an increase of $5,250,000 only for

   the closed loop infrared countermeasure (CLIRCM) technology program.    

                   SPACE AND MISSILE ROCKET PROPULSION                   



      The Air Force requested $16,247,000 for space and missile rocket     

   propulsion. The Committee recommends $30,047,000, an increase of        

   $13,800,000. Within this amount $3,800,000 is only for the high payoff  

   rocket propulsion technology initiative, and $10,000,000 is only for the

   continuation of rocket testing efforts for the Scorpius low cost        

   expendable launch vehicle technology project.                           

                       BALLISTIC MISSILE TECHNOLOGY                      



      The Air Force requested no funding for the ballistic missile         

   technology program. The Committee recommends $8,000,000 to continue this

   program.                                                                

                      ADVANCED SPACECRAFT TECHNOLOGY                     



      The Air Force requested $40,846,000 for advanced spacecraft          

   technology. The Committee recommends $72,846,000, an increase of        

   $32,000,000. Within this amount $15,000,000 is only for the military    

   spaceplane program, $10,000,000 is only for the solar thermionics       

   orbital transfer vehicle, and $7,000,000 is only for the miniature      

   threat satellite reporting system.                                      

                     CONVENTIONAL WEAPONS TECHNOLOGY                     



      The Air Force requested $26,227,000 for conventional weapons         

   technology. The Committee recommends $28,227,000, an increase of        

   $2,000,000 only for development of optical correlator technology.       

                       ADVANCED WEAPONS TECHNOLOGY                       



      The Air Force requested $41,238,000 for advanced weapons technology. 

   The Committee recommends $56,238,000, an increase of $15,000,000. Of the

   amount added, $10,000,000 is only for Geo Space Object Imaging and      

   $5,000,000 is only for the Special Laser Technology Program (LIME).     

                              AIRBORNE LASER                             



      Though the core mission of the Airborne Laser (ABL) is ballistic     

   missile defense, the program is being funded in the Air Force rather    

   than the Ballistic Missile Defense Organization (BMDO). The Committee   

   believes that ballistic missile defense funding should be centrally     

   managed to ensure all such programs are properly integrated into a      

   common architecture and to ensure resources are applied to programs     

   based on overall ballistic missile defense priorities. Accordingly, the 

   Committee directs the Secretary of Defense to submit a report to the    

   congressional defense committees no later than November 15, 1997        

   discussing whether the ABL program is or is not more properly budgeted  

   within BMDO.                                                            

                                DEMONSTRATION AND VALIDATION                      



                            ADVANCED MILSATCOM                           



      The Air Force requested $41,448,000 for Advanced Milsatcom. The      

   Committee recommends $41,000,000, a decrease of $448,000. The Committee 

   notes that program management costs for the Advanced Milsatcom program  

   are requested to grow at a rate in excess of forecast inflation in      

   fiscal year 1998.                                                       

                              POLAR ADJUNCT                              



      The Air Force requested $29,585,000 for the Polar Adjunct program.   

   The Committee recommends no funding, a decrease of $29,585,000. The     

   Committee's recommendation concerning this program is discussed more    

   fully in the classified annex to this report.                           



   national polar-orbiting operational environmental satellite system    

                                (npoess)                                 

      The Air Force requested $51,504,000 for the National Polar-Orbiting  

   Operational Environmental Satellite System (NPOESS). The Committee      

   recommends $26,504,000, a decrease of $25,000,000. The Committee notes  

   that the launch date of the first NPOESS satellite has been delayed     

   until 2007 versus 2004 as presented in the fiscal year 1997 budget      

   justification material. Despite this launch delay of three years, the   

   Air Force has decided not to substantially alter the near term funding  

   profile for the NPOESS system. In fact, the Air Force has requested     

   funds to begin sensor design and development work in fiscal year 1998,  

   ten years prior to the scheduled first launch. The Committee judges this

   approach to be overly conservative even for the satellite community.    

      The Committee remains fully supportive of the NPOESS program and the 

   ultimate convergence of the meteorological satellite systems of the     

   Departments of Defense and Commerce. In making this reduction the       

   Committee has still provided adequate funding to continue risk reduction

   and planning efforts for the system in fiscal year 1998.                

      The Committee believes that the present program schedule provides an 

   opportunity for the Department of Defense Space Architect to conduct a  

   review of the defense space-based meteorological mission area. The space

   architect has already conducted reviews in the areas of military        

   satellite communications and space control which have proven to be very 

   beneficial to department planning in these areas. The Committee         

   therefore directs the Space Architect to conduct an architectural review

   of the NPOESS program as part of its fiscal year 1998 program plan. The 

   Office of the Space Architect is further directed to submit to the      

   Committee a report detailing its plans to conduct the review no later   

   than January 15, 1998.                                                  

                space based infrared architecture-dem/val                



      The Air Force requested $222,401,000 for the demonstration/validation

   phase of the space-based infrared system (SBIRS). The Committee         

   recommends $217,401,000, a decrease of $5,000,000. The Committee        

   recommends this reduction due to unwarranted cost growth in the areas of

   program management and FFRDC support.                                   

      The Committee also shares the concern of the Defense Science Board   

   Task Force on the Space and Missile Tracking System (SMTS) which found  

   in its August 1996 report that the current lack of an overall system    

   design plan for both SBIRS high and low segments has added ``confusion, 

   time and risk to the program.'' The Committee is also disturbed that the

   Air Force has retained the present developer of the SBIRS high component

   as the overall system of systems engineer for the entire program. As a  

   potential competitor on the SMTS, this arrangement places the SBIRS high

   component developer in a potential conflict of interest. The Committee, 

   consistent with the recommendations of the Defense Science Board,       

   directs the Department of the Air Force to appoint an independent third 

   party systems engineer for the entire SBIRS system. The Committee       

   believes that by doing so, an objective party will be in a position to  

   assess the crucial technical trade-offs needed for a robust SBIRS       

   constellation and ensure deployment at the earliest possible date. The  

   Committee further directs that none of the funds appropriated for the   

   SBIRS program may be used to fund the SBIRS high component developer as 

   the overall system engineer. The Committee also directs the Air Force to

   report to the Committee on its efforts to establish the independent     

   system engineer no later than January 15, 1998.                         

                               warfighter 1                              



      Warfighter 1 is a joint government and industry funded venture which 

   will provide hyperspectral imaging data to both warfighters and         

   commercial users at 25 percent of the cost of a conventional DoD funded 

   satellite system. An integrated product team (IPT) initiated by the     

   Director of Defense Research and Engineering (DDR&E) recently           

   recommended that the Warfighter 1 program be terminated just days before

   the Air Force was to make the contract award. The IPT concerns with the 

   program centered around the belief that the Warfighter program did not  

   adequately stress pure technology goals for the processing and          

   exploitation of hyperspectral imaging data. The Committee does not      

   concur with the recommendation of the IPT.                              

      It is the Committee's belief that the Warfighter program will benefit

   operational users in the field in a timely and cost-effective manner. It

   is strongly supported by the Air Force, the CINC United States Space    

   Command, the National Imagery and Mapping Agency, and the Central MASINT

   Office. All of these organizations would be operational users of the    

   data collected by Warfighter 1.                                         

      The Committee also believes that the Department should take advantage

   of the unique leveraging opportunity offered by Warfighter which stands 

   to benefit both operational DoD and commercial users. The conclusion of 

   the IPT does not adequately consider the views and requirements of this 

   community.                                                              

      The Committee therefore directs the Department of the Air Force to   

   immediately award the contract for the original Warfighter 1 program and

   also directs the Under Secretary of Defense (Comptroller) to release all

   fiscal year 1997 funds appropriated for the program. Should the IPT's   

   subsequent deliberations on the Warfighter program lead to a            

   recommendation for a restructured technology approach to hyperspectral  

   imaging, the results can be provided to the Air Force for incorporation 

   into the Warfighter 1 system design. The Committee further directs the  

   Assistant Secretary of the Air Force for Reserach, Development, and     

   Acquisition to submit a report to the Committee no later than September 

   15, 1997 detailing his plans to follow this direction.                  

             evolved expendable launch vehicle program (eelv)            



      In December of 1996, the Air Force selected two competitors to       

   develop a new $2 billion, Evolved Expendable Launch Vehicle (EELV). EELV

   is important not only to reducing the launch costs of the Department of 

   Defense, but also to the continued world-wide competitiveness of the    

   U.S. commercial launch industry. However, the Committee is concerned    

   that the Department is focusing too narrowly on its national security   

   requirements and not adequately reflecting the needs of the U.S.        

   commercial space launch industry. For example, in order to meet its     

   projected reductions in life cycle costs, the EELV needs to capture at  

   least 15 percent of the commercial market. This will be difficult to    

   achieve since recent projections show that the EELV will not be able to 

   meet the requirements of as much as 42 percent of the estimated         

   commercial market. If that is the case, then the Air Force will have    

   developed a new family of launch vehicles that will be primarily used   

   only for national security payloads, resulting in higher overhead costs 

   to DoD, while missing an opportunity to maximize the competitive posture

   of U.S. industry.                                                       

      The EELV program is a partnership between the government and         

   industry. In return for its $2 billion investment, the Department will  

   obtain a family of launch vehicles with reduced recurring costs of 25 to

   50 percent per launch. The ultimate EELV developer will have its        

   competitive posture enhanced and be relieved of internal investment     

   requirements to remain viable in the worldwide launch market.           

      The Committee would note that while partners share benefits, they    

   also share costs. The Committee believes that the Air Force should      

   aggressively pursue commercial cost sharing and recoupment contractual  

   mechanisms as part of the EELV EMD contract. Accordingly the Committee  

   directs the Air Force to include as significant factors in the EELV     

   acquisition the degree to which the competitive proposals include the   

   commercial needs of the U.S. launch vehicle industry as well as         

   government compensation and cost recoupment offers from the EELV        

   competitors. The Under Secretary of Defense for Acquisition and         

   Technology is directed to provide to the Committee not later than       

   January 1, 1998, a revised EELV Single Acquisition and Management Plan  

   (SAMP) that addresses these concerns.                                   

                         GLOBAL BROADCAST SERVICE                        



      The Air Force requested $56,977,000 for the Global Broadcast System  

   (GBS). The Committee recommends $46,977,000, a decrease of $10,000,000. 

   The Committee recommends this reduction due to the delay in the release 

   of proposal requests for systems engineering and ground terminal        

   development efforts. The Committee is also concerned that under the     

   present program schedule GBS space segment payloads will be on orbit 8  

   to 12 months prior to the availability of the ground control segment and

   terminals. The Committee makes this recommendation without prejudice to 

   the GBS program. Funding provided by the Committee in fiscal year 1998  

   will still allow the GBS program to proceed to its next phase and allow 

   the program office to incorporate greater user input into GBS           

   requirements definition.                                                

                         ENGINEERING AND MANUFACTURING DEVELOPMENT                



               INTEGRATED AVIONICS PLANNING AND DEVELOPMENT              



      The Air Force requested $16,494,000 for integrated avionics planning 

   and development. The Committee recommends $12,994,000, a reduction of   

   $3,500,000 based on a 4 month delay in the JHMCS EMD contract award.    

                                   b 1b                                  



      The Air Force requested $216,886,000 for B 1B upgrade activities. The

   Committee recommends $222,886,000, a net increase of $6,000,000. This   

   adjustment includes a reduction of $7,000,000 to CMUP engineering change

   orders (ECOs) and an increase of $13,000,000 only for acceleration of   

   JSOW and JSLAM integration.                                             

                 SPECIALIZED UNDERGRADUATE PILOT TRAINING                



      The Air Force requested $80,238,000 for specialized undergraduate    

   pilot training improvements. The Committee recommends $77,238,000, a    

   decrease of $3,000,000 based on a 3 month delay in T 38 upgrade         

   activities caused by a contract protest.                                



                                   f 22                                  



      The Air Force requested $2,071,234,000 for the F 22 program. The     

   Committee recommends $2,077,234,000, an increase of $6,000,000          

   transferred from F 22 procurement to this line-item for redesign work   

   associated with out of production parts (OPP).                          

                              EW DEVELOPMENT                             



      The Air Force requested $78,465,000 for electronic warfare system    

   development. The Committee recommends $65,965,000, a decrease of        

   $12,500,000. This adjustment includes a $6,000,000 decrease associated  

   with contract award delays on the F 15 IDECM program and a $6,500,000   

   decrease based on the cancellation of the F 15 CMWS program. The        

   Committee notes that the Air Force canceled the F 15 CMWS program for   

   fiscal year 1998 and out, but fiscal year 1997 funds are still          

   identified in the budget for the program and these funds are therefore  

   available to finance other fiscal year 1998 EW requirements.            

                     MUNITIONS DISPENSER DEVELOPMENT                     



      The Air Force requested $18,076,000 for munitions dispenser          

   development. The Committee recommends $15,900,000, a decrease of        

   $2,176,000. Of this decrease, $1,300,000 is for Wind Corrected Munition 

   Dispenser (WCMD) contract savings, and $862,000 is for 20 WCMD assets   

   inappropriately budgeted in the research and development (R&D) account. 

      Fiscal year 1998 is the first year the Air Force has requested       

   production funding for the WCMD program and ostensibly the Congress     

   must, for the first time, assess the readiness of the program to enter  

   production. However, the Committee was dismayed to learn that the       

   decision to initiate production was made not by the Congress but by the 

   Air Force when it signed a contract to produce 200 WCMD units using     

   fiscal year 1997 R&D funding. The Committee has learned that 150 of     

   these weapons are not required for development or test of the WCMD at   

   all, but will instead be fielded with B 52 squadrons as an ``interim    

   operational capability.'' Though the fiscal year 1997 R&D budget        

   requested 200 WCMDs, these were described in the budget backup documents

   as ``EMD'' assets with no mention of an intent to field the weapons in  

   operational units. Procuring assets solely for the purpose of           

   operational use is clearly a production expense and should be funded in 

   the production account. The Committee is concerned with what appears to 

   be a growing trend to get the production ``camel's nose under the tent''

   by using R&D funds to initiate procurement. The Committee has included a

   general provision in the bill that is intended to end such practices.   

      The Committee further notes that though the Air Force signed a       

   contract for 200 WCMD units in fiscal year 1997, these units were not   

   all fully funded in that year as a consequence of the R&D incremental   

   funding policy. In fiscal year 1998, the Air Force is requesting funds  

   to complete assembly on 130 units initiated in fiscal year 1997 and to  

   buy an additional 20 units for a total of 150 intended for the early B  

   52 capability. The Committee notes that the 20 all-up-rounds funded in  

   fiscal year 1998 R&D cost $43,000 each whereas in the same fiscal year  

   (1998), the Air Force intends to buy production units for $13,000 each. 

   The Committee sees no reason to pay a 300 percent premium to buy a      

   weapon in the wrong appropriation. Accordingly, the Committee recommends

   a reduction of $862,000 for the 20 R&D funded WCMD units.               

                   joint direct attack munition (jdam)                   



      The Air Force requested $19,553,000 for development of the JDAM      

   weapon. The Committee recommends $15,353,000, a decrease of $4,200,000  

   based on the availability of funds beyond that required to finance the  

   contractor's revised estimate at completion (EAC).                      

                           LIFE SUPPORT SYSTEM                           



      The Air Force requested $3,726,000 for life support system           

   development. The Committee recommends $5,726,000, an increase of        

   $2,000,000 only for ejection seats.                                     

                 COMPUTER RESOURCE TECHNOLOGY TRANSITION                 



      The Air Force requested $1,459,000 for computer resource technology  

   transition. The Committee recommends $6,459,000, an increase of         

   $5,000,000 only for the National Product Line Asset Center (NPLACE)     

   Program/Product Line Asset Support (PLAS).                              

              joint air-to-surface standoff missile (jassm)              



      The Air Force requested $203,321,000 for the JASSM program. The      

   Committee recommends no appropriation for the program, and instead      

   proposes a new joint program based on the Navy's SLAM ER+ missile. JASSM

   is a follow-on to the very troubled and now terminated TSSAM program.   

   The Air Force invested $4.3 billion in the missile until the program was

   terminated in response to severe technical problems, massive cost       

   overruns, and numerous schedule delays. In creating the follow-on JASSM 

   program, the Air Force has not only applied lessons learned from the    

   TSSAM program, but has also applied lessons from recently successful    

   acquisition programs like JDAM. Therefore, in making its recommendation,

   the Committee does not fault the Air Force's management of the JASSM    

   program. In fact, it is too early even to assess the JASSM program given

   that the missile is still ``on the drawing board'' with at least four   

   years of development remaining.                                         

      The SLAM ER program, on the other hand, is already in production with

   an automatic target acquisition (ATA) upgrade entering production in    

   fiscal year 1998. According to the Navy, this SLAM ER ``+'' variant     

   meets or exceeds every threshold requirement for the JASSM program,     

   including the key performance parameters of range, missile mission      

   effectiveness, and carrier suitability. The Navy believes that          

   modifications required to deploy the missile on Air Force aircraft      

   (including bombers) are minor.                                          

      The Committee notes that cancellation of JASSM and pursuit of a joint

   SLAM ER+ program could save taxpayers anywhere from $450 to $800 million

   while fielding the required capability to the Air Force sooner. The     

   Department of Defense must break the habit of spending hundreds of      

   millions of dollars pursuing the last few ounces of performance when an 

   existing weapon with minor modifications can meet its requirements. Even

   while faced with severely constrained outyear modernization budgets, the

   Department failed to seriously consider this alternative to JASSM in    

   either of its recent Quadrennial Defense Review (QDR) or Joint          

   Requirements Oversight Council (JROC) deliberations. Both forums were   

   formed to make recommendations on just these types of issues. The       

   Committee is dismayed that the JROC, in particular, would postpone      

   consideration of the Navy's SLAM ER+ proposal 6 times before deciding   

   the matter was best addressed by the acquisition community in a process 

   that will take another year. The Committee does not believe that        

   taxpayers or warfighters should have to wait another year and spend     

   another $200 million on JASSM before considering whether SLAM ER+       

   already meets the JASSM requirements. The Committee has carefully       

   reviewed data provided by the Air Force, Navy, and industry on each of  

   the various proposals. The Committee finds the merits of a Joint SLAM   

   ER+ program compelling and in the absence of a joint, requirements-based

   analysis conducted expeditiously by the Department, recommends          

   termination of the JASSM program.                                       

                                  JSLAM                                  



      The Air Force requested no funds for the JSLAM program. The Committee

   recommends $63,000,000 only for Air Force participation in a joint SLAM 

   ER+ program. Though the Navy has offered to provide the Air Force excess

   Harpoon missiles for JSLAM conversions, the Committee notes that Air    

   Force inventory requirements will ultimately require production of new  

   build missiles. To take efficient advantage of the existing engine      

   manufacturing capability, the Committee believes that the Air Force     

   program should include new build missiles at the front-end of Air Force 

   JSLAM production.                                                       

                                  RDT&E MANAGEMENT SUPPORT                        



                       THREAT SIMULATOR DEVELOPMENT                      



      The Air Force requested $51,846,000 for threat simulator development.

   The Committee recommends $50,346,000, a decrease of $1,500,000. The     

   Committee notes that the budget funds the entire SADS 2b/f effort in    

   fiscal year 1998 though the program is projected to extend well into    

   fiscal year 1999. Since research and development is incrementally       

   funded, the fiscal year 1999 effort should be funded in that year.      

                           MAJOR T&E INVESTMENT                          



      The Air Force requested $47,336,000 for investment in major test and 

   evaluation facilities. The Committee recommends $62,136,000, an increase

   of $14,800,000 only for instrumentation required to modernize range C4I 

   capabilities at Eglin Air Force Base.                                   

                       TEST AND EVALUATION SUPPORT                       



      The Air Force requested $389,348,000 for test and evaluation support.

   The Committee recommends $386,348,000, a net decrease of $3,000,000. The

   Committee recommendation includes a $3,000,000 reduction based on       

   unjustified growth in aircraft support, an $8,000,000 reduction based on

   unobligated fiscal year 1996 funds, and an $8,000,000 increase only for 

   enhancements to the South Base Birk Flight Test Facility (BFTF).        

                              OPERATIONAL SYSTEMS DEVELOPMENT                     



            advanced medium range air-to-air missile (amraam)            



      The Air Force requested $50,781,000 for the AMRAAM program. The      

   Committee recommends $33,781,000, a decrease of $17,000,000. This       

   decrease includes a $14,000,000 GAO recommended reduction based on      

   rephased missile upgrade efforts, and a $3,000,000 reduction to delay   

   initiation of AMRAAM P3I Phase III until fiscal year 1999.              

              AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM              



      The Air Force requested $93,122,000 for the engine component         

   improvement program. The Committee recommends $115,122,000, an increase 

   of $22,000,000. The Committee is concerned about the growing costs in   

   the Air Force flying hour program attributable to engine reliability and

   maintainability issues. Therefore, the Committee recommends additional  

   funds for the CIP program to help reduce these operating costs.         



         AGM 86C CONVENTIONAL AIR-LAUNCHED CRUISE MISSILE SYSTEM         



      The Air Force requested no funds for CALCM research and development. 

   The Committee recommends $3,500,000 only for development of a hard      

   target penetrator variant.                                              



               airborne warning and control system (awacs)               



      The Air Force requested $46,807,000 for AWACS. The Committee         

   recommends $47,807,000, an increase of $1,000,000. The Committee notes  

   the availability of $12,500,000 in fiscal year 1997 funds from the      

   terminated AWACS reengine program. The Committee recommends the Air     

   Force use these prior year funds, in addition to the additional funds   

   provided in fiscal year 1998, for the AWACS Extend Sentry program       

   identified by the Air Force as a high priority unfunded requirement.    



        JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM (JSTARS)       



      The Air Force requested $119,189,000 for the JSTARS program. The     

   Committee recommends $123,189,000, an increase of $4,000,000 only for   

   integration of an Improved Data Modem on the JSTARS platform.           

              WORLD-WIDE MILITARY COMMAND AND CONTROL SYSTEM             



      The Air Force requested $6,820,000 for the Global Command and Control

   System (GCCS). The Committee recommends $7,820,000, an increase of      

   $1,000,000 only for integration of JSAS into GCCS.                      

                   SECURITY AND INVESTIGATIVE SERVICES                   



      The Air Force requested $530,000 for security and investigative      

   services. The Committee recommends $1,530,000, an increase of $1,000,000

   only for the AFOSI Computer Crime Investigations Program.               

                       AIR CARGO MATERIAL HANDLING                       



      The Air Force requested $7,947,000 for air cargo material handling   

   equipment. The Committee recommends $3,447,000, a decrease of           

   $4,500,000. The Committee notes that the fiscal year 1998 budget        

   includes $4,500,000 for testing of the Next Generation Small Loader that

   is not scheduled to take place until fiscal year 1999.                  

                         INDUSTRIAL PREPAREDNESS                         



      The Air Force requested $48,429,000 for industrial preparedness. The 

   Committee recommends $48,429,000 and directs that of this amount,       

   $1,000,000 is available only to allow the National Technology Transfer  

   Center to compile, analyze, value and license technologies available for

   commercialization from Air Force research labs.                         

 PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAINABILITY PROGRAM (PRAM) 



      The Air Force requested $1,032,000 for the PRAM program. The         

   Committee recommends $12,032,000, an increase of $11,000,000 only for   

   efforts to develop structural fatigue repairs, corrosion prevention and 

   control techniques, and reliability and maintainability improvement     

   opportunities for aging aircraft fleets. The Committee notes that the   

   Air Force has identified this effort as a high priority unfunded        

   requirement.                                                            

                             NATO JOINT STARS                            



      The Air Force requested $36,061,000 for the NATO JOINT STARS program.

   The Committee recommends $18,061,000, a reduction of $18,000,000 based  

   on the lack of any NATO decision to proceed with JSTARS acquisition. The

   Committee directs that none of the funds can be obligated until such    

   obligations meet the requirements of current law. The Committee further 

   directs that none of the funds may be reprogrammed out of the NATO JOINT

   STARS program element without the prior approval of the congressional   

   defense committees.                                                     

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 224 to 226 Insert here                                    







                  RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE        






                                                                               




                                                     




     Fiscal year 1997 appropriation       $9,362,800,000  

     Fiscal year 1998 budget request       9,069,680,000  

     Committee recommendation              9,494,337,000  

     Change from budget request             +424,657,000  



      This appropriation provides funds for the Research, Development, Test

   and Evaluation 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  




Special Technical Support                        11,750                       9,750                 -2,000  

Verification Technology                          83,370                      69,070                -14,300  

Commerical Insertion Technology                  47,889                                            -47,889  

Boost Phase Intercept                            12,885                                            -12,885  

National Missile Defense                        504,091                     978,091               +474,000  

Navy Lower Tier                                 267,822                     289,822                +22,000  

Defense Imagery and Mapping                     109,430                     134,430                +25,000  

Defense Reconnaissance Support                   49,403                      41,003                 -8,400  

Manned Reconnaissance                            27,784                      51,784                +24,000  

Defense Airborne Reconnaissance Mgt              21,543                       7,543                -14,000  

Counter drug                                                                  2,500                 +2,500  



                                       BASIC RESEARCH                             



                      in-house independent research                      



      The Department requested $2,169,000 for In-House Independent         

   Research. The Committee notes that there are ample funds available from 

   fiscal year 1997 for this activity because of poor obligation rates.    

   Therefore, the Committee recommends no appropriation.                   

                        DEFENSE RESEARCH SCIENCES                        



      The Department requested $76,009,000 for Defense Research Sciences.  

   The Committee recommends $70,000,000, a decrease of $6,009,000. The     

   Committee notes that the Department has used this activity as a source  

   for reprogramming funds in prior fiscal years and therefore recommends a

   reduction of $6,009,000 to reflect an appropriate level of funding.     

                       UNIVERSITY RESEARCH SCIENCES                      



      The Department requested $237,788,000 for University Research        

   Sciences. The Committee recommends $215,212,000. This amount includes an

   increase of $10,000,000 only for the Defense Experimental Program to    

   Stimulate Competitive Research (DEPSCOR) and a net reduction of         

   $22,576,000 due to program growth and poor execution. The Committee     

   directs that funds available within the University Research Initiatives 

   account for Gulf War Illness related research may be used only for that 

   purpose. The Committee also directs that $3,000,000 be available only   

   for Clinical Assessment Recording Environment (CARE), as authorized. The

   Committee notes that while the 1997 total program funds were lower than 

   in 1996 (ostensibly due to a change in award dates not a reduction in   

   the level of effort) in fact, on a monthly basis, the Department spent  

   41 percent more per month in 1997 on university graduate fellowships,   

   traineeships and research instrumentation than in 1996. The Committee   

   therefore recommends a reduction of $32,576,000 due to program growth.  

       GOVERNMENT AND INDUSTRY COSPONSORSHIP OF UNIVERSITY RESEARCH      



      The Department requested $14,713,000 for Government and Industry     

   Cosponsorship of University Research (GICUR). The Committee notes that  

   this proposed new activity is aimed at encouraging cooperation and      

   collaboration between government and industry on semiconductor          

   electronics issues. The Committee agrees that semiconductors are a      

   critical priority for the Department. However, the Committee also       

   believes that the Department's prior year investment of $840,000,000 was

   adequate to meet the challenges that were presented to the semiconductor

   industry over the past decade and therefore, the Committee recommends no

   appropriation.                                                          



                 CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                 



      The Department requested $25,190,000 for Chemical and Biological     

   Defense basic research. The Committee recommends $28,690,000, an        

   increase of $3,500,000. The Committee recommends an increase of         

   $1,500,000 only for basic medical research to develop non-antibiotic    

   therapies for anthrax and $2,000,000 only for novel agent research.     

                                  EXPLORATORY DEVELOPMENT                         



                         NEXT GENERATION INTERNET                        



      The Department requested $40,000,000 for the Next Generation Internet

   (NGI) program. The Committee recommends $50,000,000, an increase of     

   $10,000,000 to support the DARPA component of the multi-agency Next     

   Generation Internet program. The goal of the NGI program is to develop  

   and demonstrate the technologies, protocols, and standards for a very   

   high speed, broad bandwidth Next Generation Internet that will offer    

   reliable, affordable, secure information delivery at rates thousands of 

   times faster than today. This should enable the use of a wide variety of

   new nationally important applications that cannot be accommodated on    

   today's Internet. The additional $10,000,000 is to be used to support   

   specific connectivity, functionality, services, and software among the  

   applications communities and regional consortia that will maximize the  

   value of the infrastructure connectivity and services deployed by the   

   NGI. The Committee recognizes the large potential benefit that Next     

   Generation Internet technology will have for many important sectors of  

   our economy as well as for national defense. The Committee also         

   recognizes the value of including technical contributions from as many  

   sources of innovation as possible in developing future Internet         

   technology. Accordingly, the Committee directs that all geographic      

   regions and all qualified concentrations of technical expertise         

   (including government, university, and commercial) be afforded the      

   opportunity and the access necessary to have comparable connectivity to 

   current ``very-high speed backbone network service point of presence''  

   (VBNS POP) on the Internet.                                             



                  SUPPORT TECHNOLOGIES--APPLIED RESEARCH                 



      The Department requested $101,932,000 for Support Technologies. The  

   Committee recommends $141,932,000, an increase of $40,000,000. Within   

   this increase, $30,000,000 is only for Atmospheric Interceptor          

   Technology (AIT) to develop new capabilities for current theater missile

   defense interceptors. In addition, the Committee recommends $10,000,000 

   only for wide band gap technologies, as proposed in the House-passed    

   Defense Authorization bill.                                             

                   LINCOLN LABORATORY RESEARCH PROGRAM                   



      The Department requested $20,474,000 for Lincoln Laboratory          

   innovative research and development (IR&D). The Committee recommends    

   $13,730,000, a reduction of $6,744,000. The Committee notes that the    

   fiscal year 1998 plan for Federally Funded Research and Development     

   Centers (FFRDCs) is well above the level of effort for the prior year.  

   The planned increase of 200 staff technical years of effort (STE) for   

   Lincoln Laboratory represents a 7 percent increase in level of effort   

   and a potential $41,000,000 increase in funding. Furthermore, this      

   increase is not consistent with prior Congressional direction, the      

   Department's FFRDC management plan, nor the recommendation of the       

   Defense Science Board (DSB) Report of January 1997. The DSB report      

   challenged the Department's use of FFRDCs and concluded that the current

   FFRDC system ``does not provide the best available service at the most  

   reasonable cost.'' The DSB Task Force recommended that: (1) work done by

   FFRDCs be ``more carefully defined and limited'' (2) that competition be

   introduced and, (3) that management practices be changed at the         

   beginning of 1998 to incorporate these changes. The Committee therefore 

   recommends a funding level that is consistent with the DSB report and   

   prior Congressional direction on FFRDCs.                                

             COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY             



      The Department requested $341,752,000 for Computing Systems and      

   Communications Technology. The Committee recommends $325,057,000, a     

   reduction of $16,695,000 due to program growth. Within the amounts      

   provided, $7,500,000 is available only for the Reuse Technology Adoption

   Program (RTAP), a technology program that enhances the reuse of         

   information technology and complex event sequences or software          

   algorithms.                                                             

                 CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                 



      The Department requested $60,023,000 for Chemical and Biological     

   Defense exploratory development. The Committee recommends $75,323,000,  

   an increase of $15,300,000. Within this increase, $9,500,000 is         

   available only for medical biological research and $5,800,000 is only   

   for Safeguard.                                                          



                           TACTICAL TECHNOLOGY                           



      The Department requested $157,329,000 for Tactical Technology. The   

   Committee recommends $126,244,000, a reduction of $31,085,000 for       

   program growth. This amount includes an increase of $3,000,000 only for 

   the continuation of simulation based design and virtual reality efforts,

   in a collaborative program with private industry, for the Gulf Coast    

   Region Maritime Technology Center. The Committee notes that the request 

   for Tactical Technology has increased by 28 percent without substantial 

   justification. Therefore the Committee recommends a reduction of        

   $31,085,000, as proposed in the House-passed Defense Authorization bill.

                INTEGRATED COMMAND AND CONTROL TECHNOLOGY                



      The Department requested $37,000,000 for Integrated Command and      

   Control Technology. The Committee recommends $39,000,000, an increase of

   $2,000,000 only for the high definition camera. Within this amount,     

   $4,000,000 shall be made available only for high definition display     

   systems technology.                                                     

                   MATERIALS AND ELECTRONICS TECHNOLOGY                  



      The Department requested $192,192,000 for Materials and Electronics  

   technology. The Committee recommends $208,192,000, an increase of       

   $16,000,000. Within this increase, $10,000,000 is only for the Defense  

   Microelectronics Activity and $6,000,000 is only for the Nanofabrication

   Laboratory as proposed in the House-passed Defense Authorization bill.  

                      DEFENSE SPECIAL WEAPONS AGENCY                     



      The Department requested $211,971,000 for the Defense Special Weapons

   Agency. The Committee recommends $200,593,000, a net reduction of       

   $11,378,000 to maintain the program at the 1997 funding level. The      

   amount includes an increase of $5,000,000 only to continue ongoing      

   bioenvironmental research.                                              

                                    ADVANCED DEVELOPMENT                          



                  EXPLOSIVES DEMILITARIZATION TECHNOLOGY                 



      The Department requested $12,259,000 for Explosives Demilitarization 

   Technology. Within this amount, the Committee recommends $2,000,000 only

   for the cryogenic washout program.                                      

                       COUNTERPROLIFERATION SUPPORT                      



      The Department requested $58,264,000 for Counterproliferation        

   Support. The Committee recommends $67,264,000, an increase of $9,000,000

   only for the Counterproliferation Analysis and Planning System (CAPS).  

                       AUTOMATIC TARGET RECOGNITION                      



      The Department requested $4,789,000 for Automatic Target Recognition.

   The Committee recommends $5,989,000, an increase of $1,200,000 only for 

   optical correlators. The Committee encourages the Director of Defense   

   Research and Engineering to provide assistance to the services in their 

   development of miniature ruggedized optical correlators for use on the  

   Navy Standard missile and the Air Force's AGM 130 missile.              

                 CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                 



      The Department requested $41,223,000 for Chemical and Biological     

   Defense advanced development. The Committee recommends $50,773,000, an  

   increase of $9,550,000. Within this increase, $6,700,000 is available   

   only for medical biological programs, and $2,850,000 is only for Joint  

   Service Integrated Suit (JSLIST) industrial production.                 

                        SPECIAL TECHNICAL SUPPORT                        



      The Department requested $11,750,000 for Special Technical Support.  

   The Committee recommends $9,750,000, a reduction of $2,000,000, as      

   proposed in the House-passed Defense Authorization bill.                

                         VERIFICATION TECHNOLOGY                         



      The Department requested $83,370,000 for Verification Technology     

   Demonstration. The Committee recommends $69,070,000, a net reduction of 

   $14,300,000, as proposed in the House-passed Defense Authorization bill.

   Within this amount, the Committee recommends an increase of $5,000,000  

   only for the continuation of an industry-based program begun by DARPA to

   accelerate development of nuclear detection systems, including          

   specialized cryocoolers for portable and remote operations and          

   optoelectronics for portal monitoring for detection of nuclear          

   materials, $3,000,000 is only for the continuation of an industry-based 

   program begun by DARPA for enhanced segregated-surface solid state      

   detectors, forensics, and analysis techniques in support of nuclear non 

   proliferation and counter terrorism, and $3,000,000 is only for the     

   continuation of the Russian Monitoring Technologies Project begun by    

   DARPA and for a system to provide early warning of the hazards posed by 

   Russian nuclear reactors in Cuba.                                       

                     Nuclear Monitoring Technologies                     



      In addition, of the amount available for Nuclear Arms Control        

   Technology $8,800,000 shall be available only for competitive,          

   peer-reviewed basic research in nuclear monitoring                      

   technologies--$7,100,000 for explosion seismology only, and $700,000    

   available only for hydroacoustics, infrasound and radionuclide analysis.

      To ensure the peer review process works properly, the Committee      

   directs that the program be moved from the Defense Special Weapons      

   Agency to the Nuclear Treaty Programs Office and a program manager      

   position be established within the Nuclear Treaty Programs Office to    

   oversee the program. Contracting for the program and associated         

   operation and maintenance funds should be transferred to the U.S. Army  

   Space and Strategic Defense Command. The Committee directs that the     

   program be managed in accordance with the National Research Council     

   recommendations provided to the Department on the research needed to    

   meet nuclear treaty monitoring goals. The Committee requests that the   

   Department provide a report to Congress responding to the National      

   Research Council recommendations and explaining how this program meets  

   congressionally mandated objectives.                                    

                            Seismic Monitoring                           



      The Committee concurs with the concerns expressed in the House-passed

   Defense Authorization bill on seismic monitoring and directs that no    

   funds be available to create redundant capability to that of the U.S.   

   Geological Survey for monitoring, analyzing and reporting on domestic   

   seismic events.                                                         

             GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS             



      The Department of Defense requested $17,267,000 for Generic Logistics

   R&D Technology Demonstrations. The Committee recommends $23,867,000, an 

   increase of $6,600,000 only for the Computer Assisted Technology        

   Transfer Program (CATT). The Committee notes that there can be a high   

   percentage of ``no-bids'' when the military seeks to purchase spare     

   parts in small quantities, as was the case with the KC 135. CATT,       

   designated by the Defense Logistics Agency as a National Reinvention    

   Laboratory, seeks to increase the industrial base available to support  

   DoD spare parts procurement by enhancing the competitiveness of small   

   and medium sized firms.                                                 

                 STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM                



      The Department requested $54,874,000 for the Strategic Environmental 

   Research and Development Program (SERDP). The Committee recommends      

   $61,874,000, an increase of $7,000,000 above the budget request. Of     

   these funds $3,000,000 is to be used only to develop new environmentally

   insensitive energetic materials as provided for in the House-passed     

   Defense Authorization bill.                                             

      In addition, the Committee directs the Director of Defense Research  

   and Engineering, in consultation with the Deputy Under Secretary of     

   Defense for Environmental Security to continue the research, development

   and demonstration program devoted to health and safety issues of        

   environmental cleanup workers as it relates to the development and      

   introduction of environmental remediation technologies. The program     

   shall continue to develop and evaluate protection and safety methods and

   techniques necessary for the safe use and application of environmental  

   remediation technology and to transfer such methods and techniques to   

   field use. The Committee recommends an increase of $2,000,000 to the    

   Strategic Environmental Research and Development Program only for this  

   purpose.                                                                

      Finally, the Committee provides $2,000,000 only for a risk-based     

   approach to research the effects of toxic chemicals on human health and 

   the environment. This research should address questions needed to       

   establish cleanup criteria related to toxic chemicals associated with   

   base operations and remediation of waste sites. This research should    

   improve DoD capabilities for site specific remediation of toxic         

   chemicals.                                                              

                    ADVANCED ELECTRONICS TECHNOLOGIES                    



      The Department requested $277,044,000 for Advanced Electronics       

   Technologies. The Committee recommends $285,044,000, an increase of     

   $8,000,000. Within this increase, the Committee recommends $3,000,000   

   only for the Center for Microstructures and $5,000,000 only for         

   cryoelectronics. Within available funds, the Committee recommends       

   $18,000,000 for Flat Panel Displays.                                    

                           MARITIME TECHNOLOGY                           



      The Committee supports the idea that of the funds provided for       

   Maritime Technology (MARITECH) approximately 15 percent should be made  

   available to small businesses which have the technical expertise and    

   that DARPA should have the flexibility to waive or reduce the matching  

   requirement.                                                            

                            ELECTRIC VEHICLES                            



      The Department requested no appropriation for electric vehicles. The 

   Committee recommends $15,000,000 for Electric Vehicles to continue      

   ongoing programs in this area.                                          



                ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS               



      The Department requested $121,076,000 for Advanced Concept Technology

   Demonstrations (ACTDs). The Committee recommends $61,076,000, a         

   reduction of $60,000,000 due to unsubstantiated program growth. The     

   Committee notes that the ACTD budget request has doubled since last     

   year.                                                                   

                 COMMERCIAL TECHNOLOGY INSERTION PROGRAM                 



      The Department requested $47,889,000 for the Commercial Technology   

   Insertion Program. The Committee recommends no appropriation as proposed

   in the House-passed Defense Authorization bill. The Committee believes  

   that many commercial technologies may have promise and should be        

   considered by the Service program managers and acquisition executives as

   viable alternatives to military-unique equipment. However, the Committee

   believes this approach should be embedded in the development and        

   procurement plans of the Services.                                      

                   ELECTRONIC COMMERCE RESOURCE CENTERS                  



      The Department requested $14,972,000 for Electronic Commerce Resource

   Centers (ECRCs). The Committee recommends $47,972,000, an increase of   

   $33,000,000.                                                            



             HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM            



      The Department requested $126,211,000. The Committee recommends      

   $124,880,000, a reduction of $1,331,000 for program growth.             

      The Committee is concerned that the High Performance Computing       

   Modernization Program future budget plans de-emphasize the purchase of  

   new supercomputers for DoD, as evidenced by a reduction in planned      

   procurement account funds, yet the plans provide for increasing RDT&E   

   account budgets for the sustainment of operations and related services. 

   According to the DoD HPC Modernization Plan, dated June 1994, ``. . .   

   the mission of this program is to modernize the high performance        

   computational capability of DoD laboratories . . .'' Because of this,   

   the Committee believes that a more equal balance between Procurement and

   RDT&E funds is appropriate and that sustainment of operations and       

   related services should not dominate the program budgets. The Committee 

   directs therefore, that DoD provide it verification that the future     

   procurement budgets are adequate to ensure that the high performance    

   computing needs of the DoD-wide user community can be met at the levels 

   planned.                                                                

      The Committee also notes that DoD, despite a previous request, has   

   not published an updated High Performance Computing Modernization       

   Program Plan or Program Implementation Plan since June 1994. The        

   Committee, therefore, directs again that such plans be published        

   annually no later than March 15.                                        

                      SENSOR AND GUIDANCE TECHNOLOGY                     



      The Department requested $166,855,000 for Sensor and Guidance        

   technology. The Committee recommends $154,855,000, a net reduction of   

   $12,000,000. Within this amount, $13,000,000 is available only for      

   GEOSAR technology and $6,000,000 is available only for the GPS Guidance 

   Package (GGP). The Committee also recommends a reduction of $25,000,000 

   as proposed in the House-passed Defense Authorization bill.             

      The Committee understands DARPA is developing a very promising       

   inertial navigation technology under the Sensor and Guidance Technology 

   Program. The GPS Guidance Package (GGP) is a Fiber Optic Gyro System    

   which has the potential to significantly lower the cost, size and weight

   of military inertial navigation systems. If the objectives of the       

   program are met, this activity could drastically reduce the cost and    

   size of inertial navigation systems, making precise inertial navigation 

   and positioning available to a much greater number of platforms, both   

   airborne and ground vehicles.                                           

      The Committee understands that due to the aggressive program goals   

   and the difference in technology between the two original competitors,  

   DARPA, the Army and the Navy felt strongly that competition should be   

   maintained at least through the remaining development program. The      

   Committee strongly agrees that competition should be maintained and     

   directs DoD to provide not less than $6,000,000 under the Sensor and    

   Guidance Technology Program to maintain GGP as a competitive program.   

                            MARINE TECHNOLOGY                            



      The Department requested $69,143,000 for Marine Technology. The      

   Committee recommends $21,943,000, a reduction of $47,200,000 for Arsenal

   Ship, as proposed in the House-passed Defense Authorization bill. Within

   amounts available, $6,000,000 is available only for smart anti-submarine

   warfare (ASW) and Sonar STP technology.                                 

                         LAND WARFARE TECHNOLOGY                         



      The Department requested $82,580,000 for Land Warfare Technology. The

   Committee recommends $89,180,000, an increase of $6,600,000 only for    

   Active Structural Control. Active Structural Control technology reduces 

   aircraft noise and vibrations.                                          

                            DUAL USE PROGRAMS                            



      The Department requested $225,000,000 for Dual Use programs. The     

   Committee recommends $100,000,000, a reduction of $125,000,000.         

               JOINT WARGAMING SIMULATION MANAGEMENT OFFICE              



      The Department requested $71,338,000 for the Joint Wargaming         

   Simulation Management Office. The Committee recommends $59,968,000, a   

   reduction of $11,370,000 due to program growth in conformance with      

   authorization action.                                                   

                                DEMONSTRATION AND VALIDATION                      



                       PHYSICAL SECURITY EQUIPMENT                       



      The Department requested $31,553,000 for Physical Security Equipment.

   The Committee recommends $18,676,000, a reduction of $12,877,000 due to 

   program growth. The Committee notes the substantial increase in the     

   physical security account and reduces the account to prior year levels. 

                          JOINT ROBOTICS PROGRAM                         



      The Committee encourages the department to pursue a Joint Robotic    

   Vehicle Technology Development Program for manned and unmanned ground   

   vehicle systems, and make funds available to the U.S. Army              

   Tank-Automotive and Armaments Research, Development and Engineering     

   Center to improve the situational awareness, crew safety, and autonomous

   control of current and future Army ground vehicle systems that operate  

   in hazardous and hostile environments.                                  

                             CALS INITIATIVE                             



      The Department requested $1,916,000 for the CALS Initiative. The     

   Committee recommends $5,916,000, an increase of $4,000,000 only for the 

   CALS Integrated Data Environment (IDE).                                 



                           BALLISTIC MISSILE DEFENSE ORGANIZATION                 



      The Department requested $2,581,944,000 for Ballistic Missile Defense

   in the Research, Development, Test and Evaluation title of the bill. The

   Committee recommends $3,289,059,000 for the Ballistic Missile Defense   

   Organization's (BMDO) research and development programs, an increase of 

   $707,115,000. The Committee recommends specific changes in Ballistic    

   Missile Defense Organization programs as detailed in the table below.   




                                      BALLISTIC MISSILE DEFENSE                                     

                                      [In thousands of dollars]                                     




                                        Budget request    Committee recommendation    Change from request  




National Missile Defense                       504,091                     978,091               +474,000  

Navy Upper Tier                                194,898                     444,898               +250,000  

MEADS (Corps SAM)                               47,956                      47,956                         

Boost Phase Intercept                           12,885                           0                -12,885  

Theater High-Altitude Area Defense             294,647                     238,647                -56,000  

Theater High-Altitude Area Defense             261,480                     261,480                         

                                                                                                           

AIT                                                                                               +30,000  

Navy Lower Tier EMD                            267,822                     289,822                +22,000  



                Theater High Altitude Area Defense (THAAD)               



      The Department requested $294,647,000 for Theater High Altitude Area 

   Defense (THAAD) Demonstration and Validation and $261,480,000 for       

   Theater High Altitude Area Defense Engineering and Manufacturing. The   

   Committee recommends $238,647,000 for Demonstration and Validation, a   

   reduction of $56,000,000.                                               

      Due to the slip in the THAAD schedule, associated with flight test   

   failures, fiscal year 1998 funds that were budgeted as the second       

   increment for a contract to acquire 40 User Operational Evaluation      

   System (UOES) missiles are no longer required. The Committee understands

   that the flight test schedule for THAAD has been restructured and that  

   should an intercept occur in 1998, prior year funds would be available  

   for the UOES contract.                                                  

      The Committee is very concerned about the Theater High Altitude Area 

   Defense (THAAD) program and the four consecutive test failures which did

   not achieve an intercept. This type of error points to the need for     

   greater quality control on the part of the contractor and tighter       

   management on the part of the program manager. Despite these concerns,  

   the Committee supports the objectives of the THAAD program and believes 

   the system should be deployed at the soonest possible date.             

                             Navy Lower Tier                             



      The Department requested $267,822,000 for the Navy Lower Tier        

   program. The Committee recommends $289,822,000, an increase of          

   $22,000,000 as proposed in the House-passed Defense Authorization bill. 

   The Committee was pleased with the recent successful test of the Navy   

   Lower Tier system and has provided funds for additional targets to      

   reduce program risk.                                                    

                             NAVY UPPER TIER                             



      The Department requested $194,898,000 for Navy Upper Tier. The       

   Committee recommends $444,898,000, an increase of $250,000,000. The     

   Committee believes that the Navy Upper Tier program will provide a      

   substantial defense capability and is concerned that the                

   Administration's proposed plan does not include deployment of the Navy  

   Upper Tier system. Additional funds will enable the Navy to plan for 12 

   flight tests, to include an intercept in 1999 using the Lightweight     

   Exoatmospheric Projectile (LEAP) and a modified SM 3 Standard Missile.  

   In addition, additional funds will permit engineering and kinetic kill  

   vehicle work needed for system deployment. The current plan only        

   provides for a flight demonstration program and does not plan for       

   deployment.                                                             

  medium extended air defense system (meads) and boost phase intercept   

                                 (bpi)                                   

      The Committee is concerned about the lack of focus in the Medium     

   Extended Area Defense System (MEADS) program, formerly Corps SAM, and   

   the Boost Phase Interceptor (BPI) program. While the Committee supports 

   the general concept underlying both programs, it believes that neither  

   program is affordable. Due to the international commitment involved with

   the MEADS program, the Committee recommends a completion of the         

   Preliminary Design and Review program but remains concerned about the   

   future funding of this expensive program. Furthermore, the Committee    

   sees the Air Force Airborne Laser (ABL) program as the prime program for

   pursuing a boost phase capability. Therefore, the Committee recommends  

   no appropriation for BPI as proposed in the House-passed Defense        

   Authorization bill.                                                     

                         NATIONAL MISSILE DEFENSE                        



      The Committee believes that National Missile Defense (NMD) is one of 

   the highest national security priorities. The Committee is concerned    

   about the proliferation of weapons of mass destruction and the possible 

   emergence of a ballistic missile threat from a rogue nation.            

      The Department requested $504,091,000 for National Missile Defense   

   (NMD). The Committee recommends $978,091,000, an increase of            

   $474,000,000, as proposed in both the House and Senate Authorization    

   bills. The Committee concurs with the recommendations of the            

   Quadrennnial Defense Review and recommends additional funds to          

   significantly reduce the cost, schedule and technical risk associated   

   with the current NMD program. The Committee is pleased with the recent  

   successful NMD flight test which demonstrated the ability of an         

   Exoatmospheric Kill Vehicle (EKV) optical seeker to identify and track a

   set of threat targets and discriminate between warheads and decoys.     

   However, the Committee remains concerned about the six month delay in   

   the program which was caused because of an earlier flight test          

   malfunction that was attributed to human error. The Committee believes, 

   as with the THAAD program, that quality control and close management are

   critical to timely deployment of this system.                           

                               ENGINEERING AND MANUFACTURING                      



                 CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                 



      The Department requested $120,535,000 for Chemical and Biological    

   Defense. The Committee recommends $138,535,000, an increase of          

   $18,000,000. Within this increase, $8,000,000 is only for the Joint     

   Vaccine Program and $10,000,000 is only for decontamination             

   technologies.                                                           

                            TECHNICAL STUDIES                            



      The Department requested $38,376,000 for technical studies. The      

   Committee recommends $31,248,000, a reduction of $7,128,000 due to      

   program growth.                                                         

                        DEFENSE SUPPORT ACTIVITIES                       



      The Department requested $5,992,000 for Defense Support Activities.  

   The Committee recommends $7,492,000, an increase of $1,500,000 only for 

   the Commodity Management System Consolidation.                          

                         MANAGEMENT HEADQUARTERS                         



      The Department requested $39,193,000 for management headquarters. The

   Committee recommends $34,469,000, a reduction of $4,724,000. The        

   recommended amount funds management headquarters at the prior year      

   level.                                                                  

                              TACTICAL UAVS                              



      The Department requested $122,004,000 for tactical unmanned aerial   

   vehicles (UAVs). The Committee recommends $60,007,000, a reduction of   

   $61,997,000.                                                            

      The Committee agrees with the recommendations set forth in the       

   House-passed fiscal year 1998 Defense Authorization bill regarding the  

   Outrider UAV and therefore denies the funding request of $87,497,000 for

   this program. The Committee strongly urges the Department to immediately

   pursue the recommendation to procure a tactical UAV for the Army.       

      The Committee provides an additional $11,500,000 to develop the      

   Tactical Control System (TCS) for the Predator UAV system. The Committee

   understands that a memorandum of agreement is being developed between   

   the TCS program office and the Naval Strike Warfare Center to coordinate

   the use of the Predator system in support of CONOPS development.        

   Additionally, the Department should consider integrating the TCS in the 

   Pioneer UAV system, especially since the Navy has decided to extend the 

   service life of the Pioneer UAV.                                        

      The Committee also recommends $4,000,000 to continue the UAV         

   multi-function self-aligned gate array technology development and       

   demonstration program.                                                  

      An additional $10,000,000 is recommended to support a vertical       

   takeoff and landing UAV competition.                                    

                              ENDURANCE UAVS                             



      The Department requested $216,712,000 for the High Altitude Endurance

   (HAE) UAV program. The Committee recommends $192,812,000, a reduction of

   $23,900,000. Of this amount, $14,990,000 is a transfer from this account

   to an Air Force RDT&E account, PE 0305154F. The request included        

   $9,000,000 for testing the common ground segment. The Committee         

   understands that there has been considerable delay in both HAE advanced 

   technologies demonstrations and that prior year funds are available for 

   continued testing. Therefore, the Committee denies the request of       

   $9,000,000.                                                             

                     AIRBORNE RECONNAISSANCE SYSTEMS                     



      The Department requested $212,961,000 for airborne reconnaissance    

   systems. The Committee recommends $193,961,000, a reduction of          

   $19,000,000. The adjustments to this account are described below.       

      The following are recommended changes in accordance with             

   authorization action:                                                   




                                                                               




                                                          




     JMTE Advanced Technology Demonstration       +$8,000,000  

      O Framing Technology                        +15,000,000  

     ABIT System Test & Evaluation                 +3,000,000  

     JASA Standards                                -3,000,000  

     HFE Development                               -3,000,000  

     Global Hawk SIGINT Design                    -16,200,000  



   The Committee recommends the following additional adjustments:          



      The Department requested $25,800,000 for the development and testing 

   of the JSAF Highband Prototype. The Committee is concerned about the    

   significant amount of funds that have been used to develop a joint      

   SIGINT system. The Committee does not understand why there continues to 

   be multiple efforts to develop a SIGINT system to satisfy U 2           

   requirements: the high band sub-system (HBSS), high band prototype      

   (HBP), and the U 2 Senior Glass upgrade. Because of these reasons, the  

   Committee denies the $25,800,000 budget request. The Committee          

   recommends an additional $3,000,000 to continue the development of the  

   long range, high data rate airborne lasercom system.                    



            SPECIAL OPERATIONS ADVANCED TECHNOLOGY DEVELOPMENT           



      The Department requested $8,009,000 for Special Operations advanced  

   technology development. The Committee recommends $9,009,000, an increase

   of $1,000,000 to continue the development of the PRIVATEER II electronic

   suite.                                                                  

           SPECIAL OPERATIONS INTELLIGENCE SYSTEMS DEVELOPMENT           



      The Department requested $4,914,000 for Special Operations           

   Intelligence Systems Development. The Committee recommends $13,914,000, 

   an increase of $9,000,000. Of this amount $5,000,000 is to provide      

   enhancements to the Special Operations Intelligence Vehicle, and        

   $4,000,000 for the Joint Threat Warning System (JTWS).                  

                       SOF OPERATIONAL ENHANCEMENTS                      



      The Department requested $26,357,000 for SOF operational             

   enhancements. The Committee recommends $32,937,000, an increase of      

   $6,580,000. Of this amount, $5,800,000 is for the Special Technology    

   Assault Craft, and $780,000 for a classified program which is explained 

   in the classified annex to this report.                                 

                    CASTING EMISSION REDUCTION PROGRAM                   



      The Department of Defense requested no funds for the Casting Emission

   Reduction Program. The Committee recommends $12,000,000 only to continue

   this five-year research and development initiative between DoD and the  

   private sector to develop a cleaner and more efficient metal casting    

   process in order to meet Clean Air Act requirements.                    

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 241 to 242 Insert here                                    





                         DEVELOPMENTAL TEST AND EVALUATION, DEFENSE               






                                                                               




                                                    




     Fiscal year 1997 appropriation        $282,038,000  

     Fiscal year 1998 budget request        268,183,000  

     Committee recommendation               268,183,000  

     Change from budget request                          



      This appropriation funds Developmental Test and Evaluation, Defense  

   activities, for direction and supervision of test and evaluation, joint 

   testing, improvement of the effectiveness and efficiency of the DoD     

   major ranges and test facilities, and technical and/or operational      

   evaluation of foreign nations' weapons systems, equipment, and          

   technologies.                                                           

                                 COMMITTEE RECOMMENDATIONS                        



                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 244 to Insert here                                        





                          OPERATIONAL TEST AND EVALUATION, DEFENSE                






                                                                               




                                                   




     Fiscal year 1997 appropriation        $24,968,000  

     Fiscal year 1998 budget request        23,384,000  

     Committee recommendation               32,684,000  

     Change from budget request             +9,300,000  



      This appropriation funds the activities of the Office of the         

   Director, Operational Test and Evaluation.                              

                                 COMMITTEE RECOMMENDATIONS                        



                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            



   Offset Folios 246 to Insert                                             





                                     LIVE FIRE TESTING                            



      The Department requested $10,197,000 for Live Fire Testing. The      

   Committee recommends $19,497,000, an increase of $9,300,000 only for    

   simulation and modeling.                                                



                                           TITLE V                                



                               REVOLVING AND MANAGEMENT FUNDS                     



                                DEFENSE WORKING CAPITAL FUNDS                     






                                                                               




                                                   




     Fiscal year 1997 appropriation       $947,900,000  

     Fiscal year 1998 budget request        33,400,000  

     Committee recommendation              971,952,000  

     Change from budget request            938,552,000  



      The Committee recommends an appropriation of $971,952,000 for the    

   Defense Working Capital Fund. The recommendation is an increase of      

   $24,052,000 from the amount appropriated in fiscal year 1997. As        

   described elsewhere in this report, the Committee supports the          

   recommendations in the House-passed fiscal year 1998 Defense            

   Authorization bill to incorporate the Commissaries into the Defense     

   Working Capital Fund rather than establishing a separate account as     

   proposed in the budget request.                                         

                 TRANSITION TO THE WORKING CAPITAL FUNDS                 



      The Committee notes that, in the fiscal year 1998 budget request, DoD

   proposed revising the title and structure of the Defense Business       

   Operations Fund and replacing it with the Army Working Capital Fund, the

   Navy Working Capital Fund, the Air Force Working Capital Fund, and the  

   Defense Working Capital Fund. Despite the change in name, the Committee 

   recognizes that the financial management improvements brought about by  

   the Defense Business Operations Fund such as capital budgeting and      

   recognition of total costs will continue under the Working Capital      

   Funds. However, the Committee is also aware that the problems that      

   confronted DoD during its use of the Defense Business Operations Fund   

   have not changed with the inception of the Working Capital Funds.       

      In particular, the cash management problems that the Committee has   

   noted in the past continue under the Working Capital Funds. The         

   Committee has repeatedly expressed its concern about the problems DoD   

   has experienced in maintaining adequate cash balances, and DoD's        

   consequent need to use advance billing. The Committee is encouraged by  

   the steps DoD has taken in the fiscal year 1998 budget request to       

   establish rates that more accurately reflect the costs of the Working   

   Capital Fund activity groups. However, the Committee believes there is  

   room for further improvement, especially in the area of collections. The

   Committee is aware that the Department has just over $5 billion of aging

   accounts receivable due to Working Capital Fund activity groups. Of this

   amount, the Committee understands that $1.5 billion are 90 days old or  

   older, and over $1 billion are over 120 days old. It seems clear that   

   this performance can, and should be improved, and that such improvement 

   would aid DoD's overall efforts to improve cash management in the       

   Working Capital Fund activities. Therefore, the Committee directs that  

   the Department of Defense submit a report, not later than April 30,     

   1998, detailing measures to improve cash management by reducing the     

   amount of aging accounts receivable.                                    

                             MILITARY COMMISSARY FUND, DEFENSE                    






                                                                               




                                                   




     Fiscal year 1997 appropriation                  0  

     Fiscal year 1998 budget request      $938,552,000  

     Committee recommendation                        0  

     Change from budget request           -938,552,000  



      The Committee supports the recommendation in the House-passed fiscal 

   year 1998 Defense Authorization bill to incorporate the Commissaries    

   into the Defense Working Capital Fund rather than establishing a        

   separate account as proposed by the budget request. The Committee       

   believes that this realignment should improve the management flexibility

   for the operation of the Defense Commissary Agency.                     

                               NATIONAL DEFENSE SEALIFT FUND                      






                                                                               




                                                     




     Fiscal year 1997 appropriation       $1,428,002,000  

     Fiscal year 1998 budget request       1,191,426,000  

     Committee recommendation              1,199,926,000  

     Change from budget request               +8,500,000  



      This appropriation provides funds for the lease, operation, and      

   supply of prepositioning ships; operation of the Ready Reserve Force;   

   and acquisition of ships for the Military Sealift Command, the Ready    

   Reserve Force, and the Marine Corps.                                    

             LARGE MEDIUM SPEED ROLL-ON/ROLL-OFF (LMSR) SHIPS            



      The Navy budgeted $812,900,000 for acquisition of LMSR ships. The    

   Committee recommends $806,400,000, a reduction of $6,500,000 due to     

   excess advanced procurement funds.                                      

                                LIGHTERAGE                               



      The Defense Department requested no funds for lighterage, equipment  

   which is vital for off-loading sealift ships to get equipment and       

   supplies to shore. Lighterage consists of floating platforms known as   

   RO/RO discharge facilities, floating piers, or causeway ferries. The    

   first LMSR ship went to sea this year without any lighterage. The       

   Committee is disturbed that the Department of Defense is buying 19 LMSR 

   sealift ships for over $6,000,000,000 for which the proper support      

   equipment is not planned nor budgeted. The Committee recommends         

   $15,000,000 only for procurement of sea-state two lighterage to meet    

   theater CINC requirements.                                              



                                          TITLE VI                                



                            OTHER DEPARTMENT OF DEFENSE PROGRAMS                  



                                   DEFENSE HEALTH PROGRAM                         






                                                                               




                                                                     




     Fiscal year 1997 appropriation                      $10,207,308,000  

     Fiscal year 1998 budget request (as amended)         10,301,650,000  

     Committee Recommendation                             10,309,750,000  

     Change from budget request                                8,100,000  



      The Department requested $10,301,650,000 for the Defense Health      

   Program. The Committee notes that the fiscal year 1998 President's      

   Budget request submitted to Congress in February underfunded the Defense

   Health Program by $274,000,000. Subsequent to the submission of the     

   budget, the Administration submitted a budget amendment to correct this 

   shortfall. The Committee strongly agrees with this action and fully     

   funds the Defense Health Program to include the shortfall of            

   $274,000,000. The Committee recommends $10,309,750,000 a net increase of

   $8,100,000 over the amended budget request in operations and maintenance

   only for the following:                                                 









          Breast Cancer                  $25,000,000







          Head Injury                    1,000,000







          Air Force Neuroscience                4,900,000







          Diabetes Research              4,000,000







          Epidermolysis  Bullosa                1,000,000







          Medical Imaging                4,700,000







          Tissue Engineering             4,700,000







          HIV                            15,000,000







          Minimally Invasive Research                13,000,000







          Lab Upgrades                   8,000,000







          Nervous System Studies                4,500,000







          Gulf War Illness               4,500,000







          PACMEDNET                      10,000,000






          High Risk Automation Systems (CHCSII)                -20,000,000







          Tax Liability                  -70,800,000







          Economic Adjustment            -1,400,000





                                      MEDICAL RESEARCH                            



      The Committee recommends increases to research and development       

   accounts only for the following programs:                               





    602716A:                                                                







                                         $4,000,000



    602787A:                                                                







                                         3,500,000







                                         6,000,000







                                         3,500,000







                                         25,000,000







                                         10,000,000







                                         9,800,000







                                         10,000,000



    603002A:                                                                







                                         100,000,000







                                         8,000,000







                                         6,000,000







                                         3,500,000







                                         3,000,000







                                         6,000,000







                                         1,500,000







                                         3,500,000



    603706N:                                                                







                                         34,000,000







                                         2,600,000







                                         5,500,000







                                         2,500,000







                                         4,000,000







                                         4,000,000







                                         3,000,000







                                         -1,200,000



    604771N:                                                                







                                         8,500,000







                                         4,800,000





                              BREAST CANCER                              



      The Committee has provided an increase of $125,000,000 only for      

   breast cancer-related research and treatment. The Committee is pleased  

   that funds appropriated to the Army in prior years for breast cancer    

   research have been well used. This year the Committee has again provided

   funding for valuable research and to help improve access to care and    

   improve treatment for military members and their dependents with breast 

   cancer. The Committee recommends an increase of $100,000,000 for        

   peer-reviewed research and $25,000,000 to improve access to care for    

   military members and their families.                                    



                             GULF WAR ILLNESS                            



      The Department estimates that it will spend $74,100,000 for various  

   Gulf War Illness programs in fiscal year 1998. The Committee recommends 

   fully funding these programs. In addition, the Committee recommends an  

   increase of $4,500,000 in conformance with authorization action, only   

   for Gulf War Clinical Trials to be established by the Secretary of      

   Defense and the Secretary of Veterans Affairs for a total program of    

   $78,600,000. This represents an increase of $15,500,000, or 25 percent, 

   over the fiscal year 1997 program for Gulf War Illness initiatives.     

      The Committee is concerned that the Departments of Defense and       

   Veterans Affairs do not currently have a systematic approach to         

   monitoring the health of Gulf War veterans after their initial          

   examination and are unable to provide information on the effectiveness  

   of treatment or whether veterans are better or worse than when first    

   examined.                                                               

      The Secretaries of Defense and Veterans Affairs should develop and   

   implement a plan to address the concerns raised in the June 1997 GAO    

   report on this subject providing: (1) data on the effectiveness of the  

   treatments received by these veterans; and (2) data on the long-term    

   progress of veterans who have reported illnesses after the war to       

   identify health conditions which are resistant to current therapies. The

   application of validated severity indices may be appropriate, but the   

   departments may suggest other methods.                                  

                                 TRICARE                                 



      The Committee is pleased with the progress that has been made in     

   implementing TRICARE. However, the Committee believes that there are    

   several areas that deserve further study including: the feasibility of  

   adopting the APR DRG system; standards relating to quality and access   

   for children with special needs; and corrective measures for outlier    

   payments. The Committee directs the Department of Defense to provide a  

   report on these matters by May 1, 1998.                                 

                           BONE MARROW RESEARCH                          



      The Committee recommends an increase of $34,000,000 only for the C.W.

   Bill Young Marrow Donor Recruitment and Research Program, which is      

   administered by the Naval Medical Research Institute.                   

      The Committee believes that the C.W. Bill Young Marrow Donor         

   Recruitment and Research Program is uniquely qualified to provide       

   support to the Metropolitan Emergency Medical Response teams established

   by the Defense Against Mass Destruction Act of 1996 (P.L. 104 201). The 

   Committee recommends that procedures be established to make available to

   these teams the infrastructure and medical expertise of the DoD marrow  

   donor program in the event of an emergency covered by the Act.          

                            SMOKING CESSATION                            



      Tobacco smoking in the military is estimated to cost the Department  

   of Defense an estimated $930 million in health expenses and lost        

   productivity. It is the stated goal of the Department of Defense to     

   reduce smoking prevalance among active duty personnel from the current  

   level of 32 percent to 20 percent of all service personnel. Nicotine    

   replacement therapy, such as nicotine patches or gum, may offer a       

   cost-effective means of significantly increasing success rates among    

   service personnel attempting to quit smoking. The Committee urges the   

   Assistant Secretary of Defense for Health Affairs to implement an       

   effective smoking reduction plan that meets the objectives of Healthy   

   People 2000. Furthermore, the Committee urges the Department to make    

   replacement therapy available to military members and their families.   

                                 DIABETES                                



      The Committee has included $4,000,000 only for improved methods of   

   diabetes detection, prevention, and care. The Committee recommends that 

   the Department of Defense consider opportunities to conduct this        

   research in conjunction with the Veterans Administration. The Committee 

   directs the Department of Defense to provide a report on the status of  

   this project by February 15, 1998.                                      

                       MINIMALLY INVASIVE RESEARCH                       



      The Committee recommends $13,000,000 to support a collaborative      

   effort of industry, medical research institutions, and the Department's 

   health care organizations to identify and evaluate technologies to      

   permit the extensive surgical treatment of patients while minimizing the

   requirement to open the body with long, deep incisions. Technologies and

   techniques under development employing lasers, computers, special       

   optics, and robotics hold promise for advancing minimally invasive      

   surgical capabilities. This could have direct and useful application for

   battlefield medicine and could reduce the pain, danger, and cost of     

   surgery provided to the military healthcare population.                 



                          Air Force Neuroscience                         



      The Committee recommends $4,900,000 to fund a Cooperative Research   

   and Development Agreement (CRADA) at Wright Patterson Air Force Base for

   neuroscience technology.                                                

                  Central Nervous System Injury Research                 



      The Committee recommends $4,500,000 to continue active research      

   programs under Cooperative Agreement DAMD17 93 V 3018 relating to the   

   mechanism and treatment of central nervous system injury (brain trauma, 

   spinal cord injury, stroke) and cognitive dysfunction. It is expected   

   that these funds will support multi-institutional research and training 

   programs in the areas of brain imaging, cognitive science, central      

   nervous system injury/plasticity, and telemedicine with the Walter Reed 

   Institute of Research, the National Institutes of Health, and other Army

   medical organizations.                                                  

                  WALTER REED ARMY INSTITUTE OF RESEARCH                 



      The Committee recommends $8,000,000 to acquire essential equipment   
   for the new Walter Reed Army Institute of Research (WRAIR). Because the 

   planned occupancy date for the new replacement laboratory has recently  

   been accelerated from April 1999 to August 1998, funds to equip the     

   facility were not included in this year's budget request.               

                        Mobile Breast Care Center                        



      The Committee believes the Mobile Breast Care Center is absolutely   

   essential to effectively addressing the basic and clinical research     

   needs of at-risk underserved rural and urban communities, and encourages

   the Department to provide support for this effort from within available 

   funds.                                                                  

                            Peer Review Panels                           



      The Committee is pleased with the level of diversity of the DoD      

   prostate cancer initiative's program medical review panel and encourages

   that it be sustained. In conjunction with the Institute of Medicine's   

   fiscal year 1993 report on strategies for managing the breast cancer    

   research program, the Committee recognizes the critical importance of   

   the participation of minorities on the program management team, advisory

   council, and peer review group of the DoD breast cancer research        

   program. Thus, the Committee recommends that the DoD breast cancer      

   research program medical review panel maintain equitable representation 

   of minorities.                                                          

                     CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE           






                                                                               




                                                         




     Fiscal year 1997 appropriated amount       $758,447,000  

     Fiscal year 1998 budget request             620,700,000  

     Committee recommendation                    595,700,000  

     Change from budget request                  -25,000,000  





                                 COMMITTEE RECOMMENDATIONS                        



                                     PROGRAM REDUCTIONS                           



      The DoD requested $620,700,000 for the destruction of chemical agents

   and munitions. The Committee recommends $595,700,000, a decrease of     

   $25,000,000 due poor obligation rates.                                  

                            STORAGE FACILITIES                           



      In June 1997, the GAO issued a report which stated that communities  

   surrounding the Umatilla Depot lack a number of safety measures,        

   including decontamination equipment, sirens, and tone alert radios. The 

   GAO report, if accurate, causes the Committee concern for the citizens  

   in the towns surrounding the storage facility. Therefore, the Committee 

   directs the Army to ensure the integrity of the nerve gas storage       

   facilities and to minimize the degree of risk to the surrounding        

   communities.                                                            

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1997:                                            



   Offset Folios 255 Insert here                                           





                   DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE         






                                                                               




                                                    




     Fiscal year 1997 appropriation        $807,000,000  

     Fiscal year 1998 budget request        652,582,000  

     Committee recommendation               713,082,000  

     Change from budget request             +60,500,000  



      This appropriation provides funds for Military Personnel; Operation  

   and Maintenance; Procurement; and, Research, Development, Test and      

   Evaluation, for drug interdiction and counter-drug activities of the    

   Department of Defense.                                                  



                                  COMMITTEE RECOMMENDATION                        



      The Department of Defense requested $652,582,000 for Drug            

   Interdiction and Counter-Drug Activities, a reduction of $154,418,000   

   from the fiscal year 1997 appropriated level. The Committee recommends  

   $713,082,000, an increase of $60,500,000.                               

                   NATIONAL GUARD COUNTER-DRUG PROGRAM                   



      Once again the Department of Defense has not adequately provided     

   funds for the National Guard Counter-Drug Support Program. The budget   

   request would fund less than half the state and local law enforcement   

   requests for National Guard Counter-Drug Support. The Committee has     

   provided additional funds for specific National Guard activities and    

   directs the Department to follow proper reprogramming procedures for    

   each program in this account.                                           

                               LEA SUPPORT                               



      The Committee provided additional funds in fiscal year 1997 for      

   operation Laser Strike and other projects in the Southern Command area  

   of responsibility. These additional resources, in combination with the  

   programs requested in the budget, have led to recent success achieved by

   participating nations in stemming the production and transfer of illegal

   drugs. Among the more immediate effects of this effort is the dramatic  

   reduction in traffic along the air bridge in the Andean region which had

   been used as the chief means of transport for raw coca to processing    

   sites. The Committee compliments the Commander-in-Chief of the Southern 

   Command and the Department for their contribution and leadership in this

   area. The Committee recommends an additional $15,000,000 over the budget

   request in the LEA Support program to be used to continue and build on  

   this effort in the Source Nations and directs the Department to present 

   a detailed plan on how it will utilize this additional funding to the   

   congressional defense committees within 60 days of enactment of this    

   act.                                                                    



                         GULF STATES  INITIATIVE                         



      The Committee recommends $16,166,000 for the Gulf States Initiative  

   (GSI), an addition of $12,800,000 over the budget request. The Committee

   believes that the infrastructure and capabilities developed by the      

   participants in the GSI have direct application to counter-terrorism    

   activities. Accordingly, the Committee directs that funds for the GSI   

   shall be used for sustainment costs for the C4 of GSI, improvements to  

   existing processing and analysis centers for the four GSI states, and   

   for broadening the GSI focus to include counter-terrorism. The Committee

   directs that $3,031,000, an addition of $800,000 over the budget        

   request, be provided to the Regional Counter-drug Training Academy      

   (RCTA).                                                                 

      The Committee is disappointed in the Department's lack of budgetary  

   and management support for the GSI, and in its proposal to shift        

   management responsibility to the Defense Information Systems Agency     

   (DISA). The Committee believes such action is unwise and instead directs

   the Department to submit a plan to the Committee prior to conference    

   committee action on the fiscal year 1998 bill to transfer all program   

   funding responsibility and program management of the GSI, except those  

   dealing with the RCTA, to the Joint Military Intelligence program.      

                       HIDTA CRACK HOUSE DEMOLITION                      



      The Committee is aware that various Guard units have been used to    

   demolish crack houses in Texas, in a manner which enhances readiness.   

   The Committee is also aware of an urgent need to expand this activity to

   the state of Indiana. Therefore, the Committee recommends $2,300,000    

   above the budget request for Guard State plans only for Crack House     

   Demolition and related missions for the National Guard in the Indiana   

   High Intensity Drug Trafficking Area (HIDTA).                           

                             CIVIL AIR PATROL                            



      The Committee recommends $2,800,000 above the budget request, for the

   Civil Air Patrol (CAP). Funds made available to the CAP for the         

   Department of Defense Drug Interdiction activities may be used for CAP's

   demand reduction program involving youth programs as well as operational

   and training drug reconnaissance missions for federal, state, and local 

   government agencies; for administrative costs, including the hiring of  

   CAP employees; for travel and per diem expenses of CAP personnel in     

   support of those missions; and for equipment needed for mission support 

   performance. The Department of the Air Force should waive reimbursement 

   from the federal, state and local government agencies for use of these  

   funds.                                                                  

               C 26 AIRCRAFT PHOTO RECONNAISSANCE UPGRADES               



      The Committee recommends $11,000,000 only to form fit upgrade the KS 

   87 sensors on Air National Guard C 26 counter-drug aircraft to electro  

   optical framing capability to include image processing equipment and    

   spares support.                                                         

                 MULTIJURISDICTIONAL TASK FORCE TRAINING                 



      The Committee recommends $4,000,000 above the budget request for     

   multijurisdictional task force training and Military Police School      

   training at the Criminal Justice Institute.                             

                                    PROGRAM RECOMMENDED                           



      The total amount recommended in the bill will provide the following  

   program in fiscal year 1998:                                            




                                                                                                                           

                                                 [In thousands of dollars]                                                 




                                                                   Budget request    Committee recommended    Change from budget  




Dismantling Cartels                                                        54,306                   54,306                        

Source Nation Support                                                     166,763                  180,963               +14,200  

Detection & Monitoring                                                    124,686                  124,686                        

Law Enforcement Agency Support                                            223,589                  269,389               +45,800  

Demand Reduction                                                           83,238                   83,738                  +500  

Total, Drug Interdiction and Counter-drug Activities, Defense             652,582                  713,082               +60,500  



                              OFFICE OF THE INSPECTOR GENERAL                     






                                                                               




                                                    




     Fiscal year 1997 appropriation        $139,157,000  

     Fiscal year 1998 budget request        138,380,000  

     Committee recommendation               142,980,000  

     Change from budget request              +4,600,000  



      The Committee recommends an appropriation of $142,980,000 for the    

   Office of the Inspector General. The recommendation is an increase of   

   $3,823,000 from the amount appropriated in fiscal year 1997.            



                                          TITLE VII                               



                                      RELATED AGENCIES                            



                           NATIONAL FOREIGN INTELLIGENCE PROGRAM                  



                                        INTRODUCTION                              



      The National Foreign Intelligence Program consists of those          

   intelligence activities of the Government which provide the President,  

   other officers of the Executive Branch, and the Congress with national  

   foreign intelligence on broad strategic concerns bearing on U.S.        

   National security. These concerns are stated by the National Security   

   Council in the form of long-range and short-range requirements for the  

   principal users of intelligence, and include political and support to   

   military theater commanders.                                            

      The National Foreign Intelligence Program budget funded in the       

   Department of Defense Appropriations Act consists primarily of resources

   of the Central Intelligence Agency; the Defense Intelligence Agency, the

   National Reconnaissance Office, the National Security Agency, the       

   National Imagery and Mapping Agency, the intelligence services of the   

   Department of the Army, Navy and the Air Force; the Intelligence        

   Community Management Staff; and the CIA Retirement and Disability System

   Fund.                                                                   

                             CLASSIFIED ANNEX                            



      Because of the highly sensitive nature of intelligence programs, the 

   results of the Committee's budget review are published in a separate,   

   detailed and comprehensive classified annex. The intelligence community,

   Department of Defense and other organizations are expected to comply    

   fully with the recommendations and directives in the classified annex   

   accompanying the fiscal year 1998 Defense Approprations bill.           

             CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND    






                                                                               




                                                    




     Fiscal year 1997 appropriation        $196,400,000  

     Fiscal year 1998 budget request        196,900,000  

     Committee recommendation               196,900,000  

     Change from budget request                       0  



      This appropriation provides payments of benefits to qualified        

   beneficiaries in accordance with the Central Intelligence Agency        

   Retirement Act of 1964 for Certain Employees (P.L. 88 643). This statue 

   authorized the establishment of a CIA Retirement and Disability System  

   (CIARDS) for a limited number of CIA employees, and authorized the      

   establishment and maintenance of a Fund from which benefits would be    

   paid to those beneficiaries.                                            

                         INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT                






                                                                               




                                                    




     Fiscal year 1997 appropriation        $129,164,000  

     Fiscal year 1998 budget request        122,580,000  

     Committee recommendation               125,580,000  

     Change from budget request              +3,000,000  



      This appropriation provides funds for the activities that support the

   Director of Central Intelligence (DCI) and the Intelligence Community.  

                                  COMMITTEE RECOMMENDATION                        



      The budget requested $122,580,000 for the Intelligence Community     

   Management Account. The Committee recommends $125,580,000, an increase  

   of $3,000,000. Details of adjustments to this account are included in   

   the classified annex accompanying this report.                          

                           NATIONAL SECURITY EDUCATION TRUST FUND                 






                                                                               




                                                       




Fiscal year 1997 appropriation             $5,100,000  

Fiscal year 1998 budget request             2,000,000  

Committee recommendation                    2,000,000  

Change from budget request                          0  



      The National Security Education Trust Fund was established to provide

   scholarships and fellowships to U.S. students to pursue higher education

   studies abroad and grants to U.S. institutions for programs of study in 

   foreign areas and languages. The budget requested $2,000,000. The       

   Committee recommends funding the budget request.                        

          PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND ENVIRONMENTAL 

                                RESTORATION FUND                                  




                                                                               




                                                        




Fiscal year 1997 appropriation             $10,000,000  

Fiscal year 1998 budget request             10,000,000  

Committee recommendation                    10,000,000  

Change from budget request                           0  



      The Committee recommends an appropriation of $10,000,000 for Payment 

   to Kaho'olawe Island Conveyance, Remediation, and Environmental         

   Restoration Fund. The Committee recommendation does not change from the 

   amount appropriated in fiscal year 1997.                                



                                         TITLE VIII                               



                                     GENERAL PROVISIONS                           



      The accompanying bill includes 102 general provisions. Most of these 

   provisions were included in the Department of Defense Appropriations Act

   for fiscal year 1997 and many have been included in the Defense         

   Appropriations Act for a number of years.                               

      Actions taken by the Committee to amend last year's provisions or new

   provisions recommended by the Committee are discussed below or in the   

   applicable section of the report.                                       

                        DEFINITION OF PROGRAM, PROJECT AND ACTIVITY               



      For purposes of the Balanced Budget and Emergency Deficit Control Act

   of 1985 (Public Law 99 177) as amended by the Balanced Budget and       

   Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100 119)

   and by the Budget Enforcement Act of 1990 (Public Law 101 508), the     

   following information provides the definitions of the term ``program,   

   project, and activity'' for appropriations contained in the Department  

   of Defense Appropriations Act. The term ``program, project, and         

   activity'' shall include the most specific level of budget items,       

   identified in the Department of Defense Appropriations Act, 1997, the   

   accompanying House and Senate Committee reports, the conference report  

   and accompanying joint explanatory statement of the managers of the     

   Committee on Conference, the related classified reports, and the P 1 and

   R 1 budget justification documents as subsequently modified by          

   Congressional action.                                                   

      In carrying out any Presidential sequestration, the Department of    

   Defense and agencies shall conform to the definition for ``program,     

   project, and activity'' set forth above with the following exception:   

      For Military Personnel and the Operation and Maintenance accounts the

   term ``program, project, and activity'' is defined as the appropriations

   accounts contained in the Department of Defense Appropriations Act.     

      The Department and agencies should carry forth the Presidential      

   sequestration order in a manner that would not adversely affect or alter

   Congressional policies and priorities established for the Department of 

   Defense and the related agencies and no program, project, and activity  

   should be eliminated or be reduced to a level of funding which would    

   adversely affect the Department's ability to effectively continue any   

   program, project and activity.                                          



                          MILITARY PERSONNEL BUDGET JUSTIFICATION                 



      The Committee has included Section 8092 in the General Provisions,   

   which directs the Department to forward to the congressional defense    

   committees a budget justification document for the active and reserve   

   personnel accounts with the fiscal year 1999 budget submission. The     

   Committee directs this ``M 1'' document to identify at the budget       

   activity, activity group, and subactivity group level, the amounts      

   requested by the President for fiscal year 1999.                        

             LIMITATION ON FIELD OPERATING AGENCIES AND HEADQUARTERS ACTIVITIES   



      The Committee supports efforts to reduce personnel in headquarters   

   activities, but is concerned some organizations may reassign their      

   personnel to other organizations while those personnel continue to      

   perform the same headquarters mission. The Committee therefore          

   recommends amending a previously-enacted General Provision (Section     

   8052) to place additional limits on the manner in which personnel shifts

   can take place. The provision does not affect personnel assigned to a   

   non-headquarters activity who take a rotational assignment at a         

   headquarters for career development purposes.                           

                                         WARRANTIES                               



      The Committee has included a new general provision, Section 8095,    

   which reduces $50,000,000 of the funds in the Procurement title of the  

   bill due to the proposed elimination of the requirement in Title X of   

   United States Code mandating warranties for the acquisition of defense  

   weapon systems. A recent General Accounting Office report indicates that

   the Department of Defense spends $271,000,000 annually on warranties as 

   required by Title X even though most warranties under this legislation  

   have proven to be not cost-effective. The Defense Department has        

   proposed on numerous occasions that the warranty legislation be         

   repealed, and the General Accounting Office now also makes the same     

   recommendation. The House National Security Committee proposes to repeal

   the warranty legislation in Title X (Section 2403 of Title 10, United   

   States Code) in the House Defense Authorization Bill for fiscal year    

   1998, while the Senate Armed Services Committee proposes to modify the  

   warranty legislation in the Senate Defense Authorization Bill for fiscal

   year 1998 to make it optional rather than mandatory. Thus, there is     

   broad consensus that the warranty requirements of Title X will be       

   removed and the Department of Defense will be able to eliminate cost    

   ineffective warranty provisions from defense weapon system acquisition  

   contracts. The Committee recommends a reduction of $50,000,000 in       

   anticipation of savings from these actions.                             

                            NATIONAL IMAGERY AND MAPPING AGENCY                   



      The National Imagery and Mapping Agency (NIMA) has not complied with 

   previous directives regarding the use of the qualifications based       

   selection process for its contracts for mapping production services.    

   Therefore, a General Provision (Section 8096) is included which requires

   NIMA to use this selection process, commonly referred to as the Brooks  

   Act, for mapping related services. The Committee has provided an        

   exception to this requirement only for purposes that are critical to    

   national security and after the Deputy Secretary of Defense has         

   submitted a notification report to the Committee on Appropriations      

   explaining the reasons for exceptions to this contracting out provision.

                              NAVIGATION AND SAFETY EQUIPMENT                     



      Last year, in the wake of the fatal air crash in Croatia involving   

   the Secretary of Commerce, Congress appropriated $96 million in support 

   of Department of Defense initiative to upgrade its military             

   passenger-carrying aircraft with modern, safety related equipment such  

   as global positioning system receivers, flight data recorders, cockpit  

   voice recorders, ground proximity warning systems, and traffic collision

   avoidance systems. This was intended to be a high priority effort       

   spanning several years. The Committee is disappointed that, despite the 

   Department's stated commitment to make this program a matter of the     

   highest priority, the Air Force failed to request funds in its fiscal   

   year 1998 budget to fully fund the second phase of this program for     

   troops and passenger aircraft. Instead, the Air Force has identified    

   this program as an unfunded requirement. Accordingly, the Committee has 

   designated in the bill $20 million only for this program to be derived  

   from funds in the Aircraft Procurement, Air Force account. The Committee

   directs that these modifications may not be funded from any other       

   programs in this bill for which funds have been added over the budget   

   request, or from the phase I navigational safety modifications contained

   in the fiscal year 1998 President's Budget. The Committee directs the   

   Secretary of the Air Force to report to the congressional defense       

   committees on sources of the funds 30 days prior to phase II            

   obligations. The Committee has further included a general provision     

   (Section 8098) that directs the Department to submit an aviation safety 

   program plan specifying the appropriate level of safety upgrades        

   required for all DoD aircraft and the associated funding profile no     

   later than November 15, 1997.                                           

                                           TACWAR                                 



      The Committee recognizes the importance of theater combat simulations

   for the purpose of acquiring insight into future force structure        

   decisions and funding choices. However, the Committee is concerned over 

   the adequacy of the models being used by the Department to evaluate and 

   determine these significant future decisions. The Committee is          

   particularly concerned over the outdated nature of the TACWAR model     

   which played a key role in supporting the Quadrennial Defense Review    

   (QDR), and its inability to meaningfully assess asymmetrical U.S.       

   advantages such as stealth, communications and airpower. The committee  

   notes that in testimony before the Congress, all four service chiefs and

   the Chairman of the Joint Chiefs have testified to the inadequacy of the

   current DOD models.                                                     

      The Committee believes it is necessary to direct a thorough,         

   independent review of the current models and modeling structure. As     

   such, in Section 8099 of the bill, the Committee directs the Defense    

   Science Board (DSB) to review the current models used by Department of  

   Defense and report back to the Committee as to 1) the DSB's evaluation  

   of the current models utilized by DOD with particular emphasis on the   

   TACWAR model and its ability to adequately measure airpower, stealth and

   other asymmetrical U.S. advantages and, 2) DSB recommendations for      

   improvements to current models and modeling techniques. The Committee   

   directs the Department to advise the Congress no later than April 15,   

   1998 of the best alternatives for theater combat simulations.           



                       HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS            



      The following items are included in accordance with various          

   requirements of the Rules of the House of Representatives.              

                           CHANGES IN APPLICATION OF EXISTING LAW                 



      Pursuant to clause 3 of rule XXI of the House of Representatives, the

   following statements are submitted describing the effect of provisions  

   which directly or indirectly change the application of existing law.    

      Language is included in various parts of the bill to continue        

   on-going activities which require annual authorization or additional    

   legislation, which to date has not been enacted.                        

      The bill includes a number of provisions which place limitations on  

   the use of funds in the bill or change existing limitations and which   

   might, under some circumstances, be construed as changing the           

   application of existing law.                                            

      The bill includes a number of provisions, which have been virtually  

   unchanged for many years, that are technically considered legislation.  

      The bill provides that appropriations shall remain available for more

   than one year for some programs for which the basic authorizing         

   legislation does not presently authorize such extended availability.    

      In various places in the bill, the Committee has earmarked funds     

   within appropriation accounts in order to fund specific programs and has

   adjusted some existing earmarkings.                                     

      The bill includes a number of provisions which make portions of the  

   appropriations subject to enactment of authorizing legislation.         

      Those additional changes in the fiscal year 1998 bill, which might be

   interpreted as changing existing law, are as follows:                   

                         APPROPRIATIONS LANGUAGE                         



      Language has been deleted in ``Operation and Maintenance, Army''     

   which makes funds available to the Department of the Interior to support

   the Memorial Day and Fourth of July ceremonies in the National Capital  

   Region.                                                                 

      Language has been amended in ``Operation and Maintenance, Navy''     

   which changes the amount available for emergency and extraordinary      

   expenses.                                                               

      Language has been deleted in ``Operation and Maintenance,            

   Defense-Wide'' which earmarked funds for federally owned education      

   facilities located on military facilities, and which transferred funds  

   to the Harnett County School Board, Lillington, North Carolina. Language

   has also been amended to change the amount available for emergency and  

   extraordinary expenses.                                                 

      Language has been included in the ``Overseas Contingency Operations  

   Transfer Fund'' to allow the Secretary of Defense to transfer funds from

   this account to operation and maintenance and working capital funds.    

      Language has been amended in ``United States Court of Appeals for the

   Armed Forces'' to change the amount available for official              

   representation purposes.                                                

      Language has been deleted in ``Environmental Restoration, Army''     

   which restricted the amount of funds which could be used by the Corps of

   Engineers for total environmental remediation contracts.                

      Language has been included in ``Former Soviet Union Threat           

   Reduction'' which limits the obligational availability of funds in this 

   account.                                                                



      Language has been deleted for the ``Quality of Life Enhancements,    

   Defense'' appropriation account.                                        

      Language has been included in ``Aircraft Procurement, Army'' which   

   earmarks funds for UH 60 helicopters for the Army National Guard and for

   the Navy Reserve.                                                       

      Language has been deleted in ``Procurement of Weapons and Tracked    

   Combat Vehicles, Army'' which allowed funds to be obligated for future  

   year V903 diesel engine requirements.                                   

      Language has been deleted in ``Other Procurement, Army'' which       

   allowed funds to be obligated for future year V903 diesel engine        

   requirements and which authorized the procurement of passenger          

   replacement vehicles.                                                   

      Language has been deleted in ``Shipbuilding and Conversion, Navy''   

   which earmarked funds for certain ship programs and includes language   

   which restricts the availability of funds for the overhaul of the CVN 69

   and the production of DDG 51 destroyers..                               

      Language has been included in ``Other Procurement, Navy'' concerning 

   the purchase of passenger motor vehicles for replacement.               

      Language has been amended in ``Procurement, Marine Corps'' which     

   changes the number of passenger vehicles to be procured.                

      Language has been included in ``Aircraft Procurement, Air Force''    

   which earmarks funds for navigational safety modifications for Air Force

   troop and passenger aircraft.                                           

      Language has been amended in ``Other Procurement, Air Force'' which  

   changes the number of passenger vehicles to be procured and the price   

   limitation per vehicle.                                                 

      Language has been amended in ``Procurement, Defense-Wide'' to change 

   the number of passenger vehicles to be procured.                        

      Language has been deleted in ``Research, Development, Test and       

   Evaluation, Air Force'' which earmarked funds for the F 22 two seat     

   variant study and for development of reusable launch vehicle            

   technologies.                                                           

      Language has been included in ``Research, Development, Test and      

   Evaluation, Air Force'' which earmarked funds for coal-derived jet fuel 

   technologies.                                                           

      Language has been included in ``Research, Development, Test and      

   Evaluation, Defense-Wide'' concerning the Dual-Use Application Program. 

   Language has also been amended to change the amount of funds earmarked  

   for the Navy Upper Tier program.                                        

      Language has been amended in ``Revolving and Management Funds'' to   

   change the name of the ``Defense Business Operations Fund'' to ``Defense

   Working Capital Funds''.                                                

      Language has been deleted from ``Defense Health Program'' which      

   earmarks funds for obtaining emergency communications funds from the Red

   Cross and which allows the Secretary of Defense to obligate funds for   

   private physicians to work with the U.S. Army on Desert Storm Syndrome  

   research.                                                               

      Language has been deleted in ``Chemical Agents and Munitions         

   Destruction, Defense'' which earmarks funds for the Johnston Atoll      

   off-island leave program and which provides authority for service       

   secretaries to grant travel allowances for participants in the program. 

      Language has been amended in ``Office of the Inspector General'' to  

   change the amount available for emergency and extraordinary expenses.   

      Language has been added to the ``Intelligence Community Management   

   Account'' which restricts obligational availability of funds for the    

   Advanced Research and Development Committee, the Environmental          

   Intelligence and Applications program, and the National Drug            

   Intelligence Center.                                                    

                            General Provisions                           



      Section 8006 has been amended to allow transfers to be made between  

   working capital funds and the ``Foreign Currency Fluctuations, Defense''

   appropriation.                                                          

      Section 8008 has been amended to require formal submission of        

   multiyear contract proposals and to authorize the multiyear procurement 

   of the Family of Medium Tactical Vehicles.                              

      Section 8022 has been amended to change a citation with respect to   

   title 10 of the United States Code.                                     

      Section 8030 has been amended to change the amount of overall funding

   made available to the Civil Air Patrol and the amount available for     

   operation and maintenance.                                              

      Section 8031 has been amended to delete language which limits the    

   number of staff years of technical effort which may be funded for       

   defense FFRDCs and amends language directing the Secretary of Defense to

   reduce the number of staff years to be performed by defense FFRDCs and  

   reduces funds for FFRDCs and consultants by $141,300,000 in fiscal year 

   1998.                                                                   

      Section 8044 has been amended to change the title of the             

   appropriation from the ``Defense Business Operations Fund'' to ``Working

   Capital Funds''.                                                        

      Section 8045 has been amended to make permanent the prohibition on   

   the use of appropriated funds to modify aircraft, weapons, ships or     

   other end-items of the Military Departments that are planned to be      

   retired or disposed of within five years of the completion of the       

   modification.                                                           

      Section 8052 has been amended concerning the increase or transfer of 

   DoD personnel assigned to headquarters activities and field operating   

   agencies.                                                               

      Section 8055 has been included to rescind funds from the following   

   programs:                                                               




                                                                               




                                                                      




          FISCAL YEAR 1996                                                 

     xlShipbuilding and Conversion, Navy:                                  

       AFS ship conversion                                    $35,600,000  

     xlOther Procurement, Navy:                                            

       Shipboard Tactical Communications                        3,300,000  

          FISCAL YEAR 1997                                                 

     xlAircraft Procurement, Army:                                         

       Blackhawk Advance Procurement                           10,000,000  

     xlProcurement of Ammunition, Army:                                    

       Armament Retooling and Manufacturing Support             5,000,000  

     xlOther Procurement, Army:                                            

       20-ton Dump Trucks                                      40,000,000  

       Maneuver Control System                                  6,000,000  

     xlAircraft Procurement, Navy:                                         

       F/A 18E/F Advance Procurement                           24,000,000  

     xlOther Procurement, Navy:                                            

       Shipboard Tactical Communications                        2,200,000  

     xlAircraft Procurement, Air Force:                                    

       Small VCX                                               27,000,000  

     xlResearch, Development, Test and Evaluation, Army:                   

       Aerostat                                                 7,000,000  



      Section 8062 has been amended to change the amount of the Pentagon   

   Reservation renovation total cost cap.                                  

      Section 8076 has been amended to extend the obligational availability

   of funds for the B 2 program.                                           

      Section 8078 has been amended concerning the transfer of funds for   

   the ``Shipbuilding and Conversion, Navy'' account, and for the          

   ``Research, Development, Test and Evaluation, Air Force'' account for   

   the F 22 project.                                                       

      Section 8079 has been amended to require a specific date for the     

   Defense Department Comptroller to submit a report to the congressional  

   defense committees detailing programs whose budget request was reduced  

   because Congress appropriated funds above the budget request in the     

   previous fiscal year.                                                   

      Section 8082 has been amended concerning the National Guard Distance 

   Learning project.                                                       

      Section 8084 has been added which makes a technical correction       

   extending the availability of funds appropriated to the Army in the     

   fiscal year 1992 Defense Appropriations Act.                            

      Section 8085 has been added which makes a technical correction       

   extending the availability of funds made available in the fiscal year   

   1994 Defense Appropriations Act for certain activities at Homestead Air 

   Force Base.                                                             

      Section 8086 has been added which provides for continuation of the   

   graduate education program at the Air Force Institute of Technology.    

      Section 8087 has been added concerning the deposit of funds to the   

   Foreign Military Sales Trust Fund for credit to the Canadian Government.

   Section 8088 has been added concerning the Fisher House Trust Fund.     



      Section 8089 has been added which grants authority for refunds from  

   Government travel cards to be credited to operation and maintenance     

   accounts.                                                               

      Section 8090 has been added which grants authority for withdrawal    

   credits for military customers of the Marine Corps supply activity      

   group.                                                                  

      Section 8091 has been added which allows DoD to pay interest         

   penalties associated with the purchase of supplies, materials, services,

   and other contractual obligations from the appropriation account which  

   made the purchase.                                                      

      Section 8092 has been added requiring the Department of Defense to   

   submit budget justification documents for the active and reserve        

   Military Personnel accounts which identifies all requested amounts at   

   the budget activity, activity group, and subactivity levels.            

      Section 8093 has been added which reduces the ``Operation and        

   Maintenance, Army'' budget request by $15,000,000 and the ``Operation   

   and Maintenance, Navy'' budget request by $85,000,000 to compensate for 

   excess inventory held by these services.                                

      Section 8094 has been added which reduces the ``Environmental        

   Restoration, Army'' budget request by $73,000,000 to reflect funds      

   carried by the Army as a result of shared cleanup costs.                

      Section 8095 has been added which reduces the budget request by      

   $50,000,000 to reflect savings from the proposed repeal of Section 2403 

   of title 10, United States Code.                                        

      Section 8096 has been added restricting the use of appropriated funds

   for the National Imagery and Mapping Agency for mapping, charting, and  

   geodesy activities unless contracts for these services are awarded in   

   accordance with the selection process in 40 U.S.C. 541 et seq. and 10   

   U.S.C. 2855.                                                            

      Section 8097 has been added which provides for the use of contract   

   authority in Working Capital Funds of the Department of Defense to      

   support the practice of capital budgeting.                              

      Section 8098 has been added requiring the Secretary of Defense to    

   submit a report on an aviation safety plan.                             

      Section 8099 has been added requiring the Secretary of Defense to    

   submit a report on alternatives for current theater combat simulations. 

      Section 8100 has been added which restricts the use of Research and  

   Development funding for the procurement of end-items.                   

      Section 8101 has been added which requires the Department of Defense 

   to establish new budget subactivities in the applicable appropriations  

   accounts to separately identify all costs associated with NATO          

   expansion. This section also requires that DoD provide detailed budget  

   justification estimates for the cost of such expansion.                 

      Section 8102 has been added which restricts the obligational         

   availability of funds for the deployment of U.S. ground forces in the   

   Republic of Bosnia and Herzegovina after June 30, 1998 or a later date  

   as specifically proscribed by law. The section also prohibits the use of

   appropriated funds for support of law enforcement activities in the     

   Republic of Bosnia and Herzegovina and directs the President to submit a

   report no later than December 15, 1997 on the political and military    

   conditions in the Republic of Bosnia and Herzegovina and restricts the  

   availability of funds for the operation of United States ground forces  

   in Bosnia-Herzegovina to 60 percent of the fiscal year 1998             

   appropriation before the report is submitted.                           

                            APPROPRIATIONS NOT AUTHORIZED BY LAW                  



      Pursuant to clause 3 of rule XXI of the House of Representatives, the

   following lists the appropriations in the accompanying bill which are   

   not authorized by law:                                                  



 Military Personnel, Army                                                



 Military Personnel, Navy                                                



 Military Personnel, Marine Corps                                        



 Military Personnel, Air Force                                           



 Reserve Personnel, Army                                                 



 Reserve Personnel, Navy                                                 



 Reserve Personnel, Marine Corps                                         



 Reserve Personnel, Air Force                                            



 National Guard Personnel, Army                                          



 National Guard Personnel, Air Force                                     



 Operation and Maintenance, Army                                         



 Operation and Maintenance, Navy                                         



 Operation and Maintenance, Marine Corps                                 



 Operation and Maintenance, Air Force                                    



 Operation and Maintenance, Defense-Wide                                 



 Operation and Maintenance, Army Reserve                                 



 Operation and Maintenance, Navy Reserve                                 



 Operation and Maintenance, Marine Corps Reserve                         



 Operation and Maintenance, Air Force Reserve                            



 Operation and Maintenance, Army National Guard                          



 Operation and Maintenance, Air National Guard                           



 Overseas Contingency Operations Transfer Fund                           



 United States Court of Appeals for the Armed Forces                     



 Environmental Restoration, Army                                         



 Environmental Restoration, Navy                                         



 Environmental Restoration, Air Force                                    



 Environmental Restoration, Defense-Wide                                 



 Environmental Restoration, Formerly Used Defense Sites                  



 Former Soviet Union Threat Reduction                                    



 Overseas Humanitarian, Disaster, and Civic Aid                          



 Aircraft Procurement, Army                                              



 Missile Procurement, Army                                               



 Procurement of Weapons and Tracked Combat Vehicles                      



 Procurement of Ammunition, Army                                         



 Other Procurement, Army                                                 



 Aircraft Procurement, Navy                                              



 Weapons Procurement, Navy                                               



 Procurement of Ammunition, Navy and Marine Corps                        



 Shipbuilding and Conversion, Navy                                       



 Other Procurement, Navy                                                 



 Procurement, Marine Corps                                               



 Aircraft Procurement, Air Force                                         



 Missile Procurement, Air Force                                          



 Procurement of Ammunition, Air Force                                    



 Other Procurement, Air Force                                            



 Procurement, Defense-Wide                                               



 National Guard and Reserve Equipment                                    



 Research, Development, Test and Evaluation, Army                        



 Research, Development, Test and Evaluation, Navy                        



 Research, Development, Test and Evaluation, Air Force                   



 Research, Development, Test and Evaluation, Defense-Wide                



 Developmental Test and Evaluation, Defense                              



 Operational Test and Evaluation, Defense                                



 Defense Capital Working Fund                                            



 National Defense Sealift Fund                                           



 Defense Health Program                                                  



 Chemical Agents and Munitions Destruction, Defense                      



 Drug Interdiction and Counter-Drug Activities, Defense                  



 Office of the Inspector General                                         



 Central Intelligence Agency Retirement and Disability System Fund       



 Intelligence Community Management Account                               



  Payment to Kaho'olawe Island Conveyance, Remediation and Environmental 

 Restoration Fund                                                        

 National Security Education Trust Fund                                  



                                     TRANSFER OF FUNDS                            



      Pursuant to clause 1(b), rule X of the House of Representatives the  

   following is submitted describing the transfer of funds provided in the 

   accompanying bill.                                                      






                                                                                                                     




Appropriations to which transfer is made            Amount  Appropriations from which transfer is made              Amount  




Operation and Maintenance, Army                $50,000,000  National Defense Stockpile Transaction Fund       $150,000,000  

Operation and Maintenance, Navy                 50,000,000  xl                                                          xl  

Operation and Maintenance, Air Force            50,000,000  xl                                                          xl  



      Language has been included in ``Overseas Contingency Operations      

   Transfer Fund'' which provides for the transfer of funds out of this    

   account to other appropriation accounts of the Department of Defense.   

      Language has been included in ``Environmental Restoration, Army''    

   which provides for the transfer of funds out of and into this account.  

      Language has been included in ``Environmental Restoration, Navy''    

   which provides for the transfer of funds out of and into this account.  

      Language has been included in ``Environmental Restoration, Air       

   Force'' which provides for the transfer of funds out of and into this   

   account.                                                                

      Language has been included in ``Environmental Restoration,           

   Defense-Wide'' which provides for the transfer of funds out of an into  

   this account.                                                           

      Language has been included in ``Environmental Restoration, Formerly  

   Used Defense Sites'' which provides for the transfer of funds out of and

   into this account.                                                      

      Language has been included in ``Drug Interdiction and Counter-Drug   

   Activities, Defense'' which transfers funds to other appropriations     

   accounts of the Department of Defense.                                  

      Language has been included in the ``Intelligence Community Management

   Account'' which transfers funds to the Department of Justice.           

   Section 8078 contains language which transfers funds as follows:        






                                                                               




                                                                                  




     xlAppropriations to which transfer is made:                                       

       Shipbuilding and Conversion, Navy 1989/2000                        $21,572,000  

       Shipbuilding and Conversion, Navy 1991/2001                         24,633,000  

       Shipbuilding and Conversion, Navy 1996/2000                          5,592,000  

       Shipbuilding and Conversion, Navy 1997/2001                         24,160,000  

       Research, Development, Test and Evaluation, Air Force 1997/98       73,531,000  

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

        Total                                                             149,488,000  

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

     xlAppropriations from which transfer is made:                                     

       Shipbuilding and Conversion, Navy 1989/2000                         21,572,000  

       Shipbuilding and Conversion, Navy 1991/2000                         24,633,000  

       Shipbuilding and Conversion, Navy 1994/1998                          1,454,000  

       Shipbuilding and Conversion, Navy 1995/1999                            715,000  

       Shipbuilding and Conversion, Navy 1996/2000                         23,983,000  

       Shipbuilding and Conversion, Navy 1997/2001                          3,600,000  

       Aircraft Procurement, Air Force 1997/1999                           73,531,000  

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

        Total                                                             149,488,000  



      Six provisions (Sections 8006, 8014, 8037, 8062, 8064, 8078) contain 

   language which allows transfer of funds between accounts.               

                                        RESCISSIONS                               



      Pursuant to clause (b) of rule X of the House of Representatives, the

   following table is submitted describing the rescissions recommended in  

   the accompanying bill.                                                  








                                                                               




                                                                               




     Aircraft Procurement, Army 1997/1999                              $10,000,000  

     Procurement of Ammunition, Army 1997/1999                           5,000,000  

     Other Procurement, Army 1997/1999                                  46,000,000  

     Aircraft Procurement, Navy 1997/1999                               24,000,000  

     Other Procurement, Army 1997/1999                                   2,200,000  

     Aircraft Procurement, Air Force 1997/1999                          27,000,000  

     Shipbuilding and Conversion, Navy 1996/2000                        35,600,000  

     Other Procurement, Navy 1996/1998                                   3,300,000  

     Research, Development, Test and Evaluation, Army 1997/1999          7,000,000  





                                  CONSTITUTIONAL AUTHORITY                        



      Clause 2(l)(4) of rule XI of the Rules of the House of               

   Representatives states that: ``Each report of a committee on a bill or  

   joint resolution of a public character, shall include a statement citing

   the specific powers granted to the Congress in the Constitution to enact

   the law proposed by the joint resolution.''                             

      The Committee on Appropriations based its authority to report this   

   legislation from Clause 7 of Section 9 of Article I of the Constitution 

   of the United States of America which states: ``No money shall be drawn 

   from the Treasury but in consequence of Appropriations made by law . .  

   .''                                                                     

      Appropriations contained in this Act are made pursuant to this       

   specific power granted by the Constitution.                             

                             COMPARISION WITH BUDGET RESOLUTION                   



      Section 308(a)(1)(A) of the Congressional Budget and Impoundment     

   Control Act of 1974 (Public Law 93 344), requires that the report       

   accompanying a bill providing new budget authority contain a statement  

   detailing how the authority compares with the reports submitted under   

   section 602(b) of the Act for the most recently agreed to concurrent    

   resolution on the budget for the fiscal year. This information follows: 






                                                                               

                            [In millions of dollars]                           




                          602(b) Allocation                   This bill             




                     Budget authority     Outlays    Budget authority    Outlays  




Discretionary                 248,140     244,574             248,138    244,563  

Mandatory                         197         197                 197        197  



      The bill provides no new spending authority as described in section  

   401(c)(2) of the Congressional Budget and Impoundment Control Act of    

   1974 (Public Law 93 344), as amended.                                   

                              FIVE-YEAR PROJECTION OF OUTLAYS                     



      In compliance with section 308(a)(1)(C) of the Congressional Budget  

   Act of 1974 (Public Law 93 344), as amended, the following table        

   contains five-year projections associated with the budget provided in   

   the accompanying bill.                                                  




                                                                               

                            [In millions of dollars]                           




                                             




     Budget authority in the bill       $248,335  

       1998                              165,067  

       1999                               49,031  

       2000                               18,369  

       2001                                8,002  

       2002                                6,132  



                    FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS           



      In accordance with section 308(a)(1)(D) of the Congressional Budget  

   Act of 1974 (Public Law 93 344), as amended, no new budget or outlays   

   are provided by the accompanying bill for financial assistance to state 

   and local governments.                                                  



   Offset Folios 274 to 282 Insert here                                    







                             DISSENTING VIEWS OF HON. DAVE OBEY                   



      Our former Chairman Jamie Whitten used to insist on referring to this

   bill as a ``military spending'' bill as opposed to a ``defense'' bill.  

   The point being that the ``spending'' inserted in this bill didn't      

   always coincide with our country's highest ``defense'' priorities. I    

   certainly agreed with him back then, and I think his point is magnified 

   many times by what is happening in today's era.                         

      Today, despite the collapse of the Soviet Empire, and an 80% drop in 

   Russian military spending; despite the dissipation of other serious     

   conventional military threats from places like Iraq and the slow motion 

   disintegration of the North Korean military; despite Defense Secretary  

   Cohen's studied conclusion that the United States will have no ``global 

   peer competitor'' between now and at least the year 2015; and despite   

   clear warnings that we should be paying more attention to new, more     

   insidious threats such as:                                              

       the proliferation of weapons of mass destruction, especially        

   chemical and biological weapons, to rogue states and even to terrorist  

   organizations;                                                          

       the proliferation of sophisticated conventional weapons capabilities

   throughout East Asia, the Middle East and now possibly Latin America;   

       the ability of international drug lords to corrupt entire countries 

   and even regions of the world,                                          

       the growing capability of some nations and other groups to conduct  

   ``cyber warfare'' attacks to disrupt critical computer systems that     

   control our banking system, electric grids, telephone systems, air      

   traffic control system, Wall Street, as well as many battlefield        

   information systems;                                                    

    despite all of these realities, this Congress continues to plow       

  billions of dollars into systems like the F 22 fighter, the B 2 bomber, 

  and the Seawolf submarine that were literally justified and designed to 

  fight the old Soviet Empire at the height of its military power.        

      One of the Navy personnel assigned to serve on the brand new $2.4    

   billion Seawolf submarine summed up this situation pretty well according

   to an article in the July 19, 1997 Washington Post. In describing the   

   new Seawolf submarine he said:                                          



                     This is an incredible system, and although a lot of

          people complain about the cost of the Seawolf, I think it's   

          worth every penny * * * Now if we could just find somebody to 

          fight with it.                                                



      This couldn't be more poignant. This submarine is a $2.4 billion     

   anti-ship weapon that lost its military rationale the day the Berlin    

   Wall fell. It is being built and put into service at the same time we   

   are retiring scores of Los Angeles class attack submarines years earlier

   than planned because the threat has evaporated and they don't have a    

   bona fide mission. The Seawolf can't be justified on a military basis,  

   yet Congress simply can't kick the military spending habit with the     

   result that billions of taxpayers' money is wasted.                     

                              GETTING READY FOR THE WRONG WAR?                    



      But the problem is much deeper than the issue of simply wasting      

   billions of tax dollars on unneeded military systems. The pattern of    

   Congressional military spending since the end of the Cold War raises    

   serious questions as to whether backward-looking Congressional defense  

   policies are causing us to get ready for the wrong war.                 

      This is not a new phenomenon, nor is it unique to the United States. 

   The status quo ethos among military decision makers around the world    

   seems to be one of preparing to re-fight the last war instead of        

   preparing for the next. There are countless examples of this throughout 

   history, including such recent examples as the continued emphasis of the

   U.S. Navy on battleships                                                



                    prior to World War II instead of moving to air power and      

          aircraft carriers, or the stubborn insistence of the French military to 

          continue to rely on the Maginot Line and outdated tactics in the face of

          changed German Blitzkrieg tactics.                                      

      But this problem extends beyond the halls of Congress. History shows 

   that Congress has rarely taken meaningful, comprehensive defense policy 

   initiatives on its own. There is no question that Congress depends on   

   the Pentagon and the Administration to lead the way, with Congress      

   making changes mainly on the margins.                                   

      Unfortunately, recent leadership from the Pentagon has been          

   disappointing as well. Service turf battles, bureaucratic momentum, and 

   defense industry politics appear to have hamstrung the Pentagon in the  

   critical task of modernizing its overall defense strategy to meet our   

   new post-Cold War defense challenges. The recently completed Quadrennial

   Defense Review is a case in point. It missed the opportunity to push us 

   forward. Months of work on the QDR by Pentagon strategists culminated in

   a familiar ``Cold War'' vision: a force built around carriers, jets,    

   tanks, and other traditional big ticket items.                          

      Former Reagan Administration official Richard Perle said this about  

   the Quadrennial Defense Review:                                         



                    the QDR is an extremely important missed            

          opportunity. It is, by and large business as usual * * * I    

          wish we had some radical document but we don't. It nibbled at 

          the edges.                                                    



      An analyst within the Office of the Secretary of Defense put it more 

   clearly:                                                                



                    the QDR put the profits of defense contractors and  

          the interests of the congressional pork barrel before the     

          welfare of the soldier or the taxpayer. [Defense Week, 6 30   

          97]                                                           



      A good question is whether our potential adversaries of the future   

   are also standing pat. For instance, many observers have expressed      

   concern about the future direction of China. Although we should resist  

   the notion of creating a self-fulfilling prophecy about Chinese foreign 

   and military aspirations, there is also no doubt that Chinese military  

   and foreign policy actions must be watched. In this respect, the        

   Pentagon's Office of Net Assessment says the lessons of Desert Storm    

   were not lost on Chinese military planners. Here is what one press      

   report said about a recent Pentagon study of Chinese military doctrine: 



                     Rather than gird for the open land and air battles 

          at which the United States excels, potential foes can invest  

          in cheap but sophisticated sea mines, jamming gear, and       

          missiles. * * * Instead of tanks, ships, and jets, the Chinese

          theorists list anti-satellite devices, defenses against       

          stealthy aircraft, lasers, and electronic sabotage equipment  

          as key weapons of the future. [U.S. News, 5 12 97]            



      Pentagon military planners have made similar assessments. The ``Joint

   Strategy Review'' issued by the Joint Staff at the Pentagon was         

   summarized as follows:                                                  



                    [the Joint Strategy Review] projected that potential

          enemies cannot hope to challenge U.S. forces in head-to-head  

          engagements, and instead would seek to strike at potential    

          U.S. vulnerabilities in protecting its vast information       

          infrastructure, engage in acts of terrorism and develop       

          chemical or biological weapons and the long range launchers to

          use them. * * * Moreover, the assessment found most combat    

          will take place in urban areas where enemies can easily mix   

          with the population. This reduces the advantages of precision 

          weapons * * *'' [Defense News, March 30, 1997]                



      One has to ask why we continue to pour billions into Cold War weapons

   systems designed to fight a huge Soviet Army on the plains of central   

   Europe when our experts tell us the threats of the future will likely   

   come from a different direction. Continuing these expensive, unnecessary

   Cold War systems squeezes important programs that do have relevance for 

   our future national security, such as the Nunn-Lugar Cooperative Threat 

   Reduction Program and, more importantly, exacts a price from our other  

   non-defense programs to pay for these extravagances.                    

                            PELL GRANTS/CANCER RESEARCH/HIGHWAYS                  



      I for one, think we should take the billions we are wasting in this  

   bill for more B 2 bombers the Air Force doesn't want, for more          

   submarines we                                                           



                    don't need, for the F 22 fighter that is being brought into   

          service years earlier than it needs to be, and for many other programs  

          the Pentagon doesn't even have in its five-year spending plan and apply 

          it to Pell Grants to give more of our kids an education.                

      If we cut out the $4.7 billion in this bill for redundant Cold War   

   weapons like the F 22 fighter, the new attack submarine, and the B 2    

   bomber and instead applied it to education and cancer research, we could

   help over 400,000 more kids go to college under the Pell Grant program, 

   raise their maximum grant from $3,000 to $3,900, and, as an added bonus,

   more than double the NIH cancer research program. This could all be done

   starting next fiscal year.                                              

      If we used the $20 billion ``rainy day'' reserve fund that is buried 

   in the five-year DoD procurement budget to fix up our roads and bridges,

   we could increase national highway investments by 20% a year--creating  

   200,000 additional jobs and helping the local economy in all 50 states. 

      That is what the American People would like to spend their money on, 

   and that is what this Committee could decide today if it had the will.  

                                      FOLLOW THE MONEY                            



      Why can't we find savings in the military and apply it to these      

   worthy areas?                                                           

      Why is it that all the rhetoric we hear from our Republican friends  

   about cutting the waste out of government programs and making sure that 

   we are spending only for essential items just seems to melt away when   

   this bill, the single largest spending bill we vote on each year, moves 

   forward?                                                                

      The answer becomes clearer when you look a little deeper as to where 

   the hundreds of billions of dollars in this bill are spent, and who it  

   benefits. How this bill is put together has much more to do with where  

   the spending occurs and who it is spent on, than what it is for.        

      There is enormous pressure in Congress to keep the dollars and jobs  

   flowing to the same areas, to the same corporations, for the same       

   systems.                                                                

      There is also a strong incentive to keep the revolving door going    

   between the Pentagon and the military contractors they have come to know

   so well.                                                                

      There is pressure to keep military spending up in vote-rich states   

   like California and Texas.                                              

      That all adds up to maintaining the status quo and mis-allocating    

   literally billions of dollars that could be better used for a host of   

   more important national purposes.                                       

      I had the GAO pull together some information on where the Defense    

   Department spends its money. They produced an extensive report put out  

   by the DoD Directorate for Information entitled ``Atlas/Data Abstract   

   for the United States and Selected Areas'' that lists where over $215   

   billion in DoD spending for FY 1996 for operating costs like military   

   and civilian payrolls, retired pay, and for military procurement/R&D    

   prime contracts over $25,000 were spent by state and even within the    

   states. These data aren't perfect, but the report as a whole gives as   

   complete a picture of the geographic distribution of military spending  

   as there is. I would suggest every Member take a look at this report. It

   explains much about why budget priorities are as they are.              

      It probably won't surprise anyone that the Southern states and       

   California come out the winners and the Midwest, Mountain, and small New

   England states come out the losers. But what some may not know is how   

   lopsided the military spending geography is between California and the  

   South on the one hand, and the rest of the country on the other.        

                       TOP 4 STATES GET MORE THAN 38 STATES COMBINED              



      For instance, according to this report, the top four states receiving

   DoD funds in FY 1996--California, Virginia, Texas, and Florida--received

   nearly 40% of the total spent.                                          




                                                                               




State              Amount received (in billions)     Percent of total  




1. California                              $31.0                 14.5  

2. Virginia                                 21.0                  9.8  

3. Texas                                    17.4                  8.1  

4. Florida                                  12.6                  5.9  

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

Total                                       82.0                 38.3  





      These four states received more military funds than the sum total of 

   39 other states (including the District of Columbia):                   




                                                                               




State                           Amount received (in billions)     Percent of total  




51. Vermont                                              $0.3                  0.1  

50. Wyoming                                               0.3                  0.1  

49. South Dakota                                          0.4                  0.2  

48. Montana                                               0.4                  0.2  

47. Delaware                                              0.4                  0.2  

46. West Virginia                                         0.5                  0.2  

45. Idaho                                                 0.5                  0.2  

44. North Dakota                                          0.6                  0.2  

43. Iowa                                                  0.6                  0.3  

42. Oregon                                                0.7                  0.3  

41. Rhode Island                                          0.8                  0.4  

40. New Hampshire                                         0.8                  0.4  

39. Arkansas                                              1.0                  0.5  

38. Wisconsin                                             1.0                  0.5  

37. Nebraska                                              1.0                  0.5  

36. Nevada                                                1.1                  0.5  

35. Utah                                                  1.3                  0.6  

34. Maine                                                 1.3                  0.6  

33. Minnesota                                             1.4                  0.7  

32. Alaska                                                1.5                  0.7  

31. Kansas                                                1.9                  0.9  

30. New Mexico                                            1.9                  0.9  

29. Michigan                                              2.1                  1.0  

28. Tennessee                                             2.2                  1.1  

27. Louisiana                                             2.4                  1.2  

26. Indiana                                               2.6                  1.2  

25. Kentucky                                              2.6                  1.2  

24. District of Columbia                                  2.8                  1.3  

23. Oklahoma                                              3.0                  1.4  

22. Mississippi                                           3.3                  1.5  

21. Connecticut                                           3.3                  1.5  

20. South Carolina                                        3.3                  1.6  

19. Hawaii                                                3.3                  1.6  

18. Illinois                                              3.3                  1.6  

17. New Jersey                                            4.0                  1.9  

16. Alabama                                               4.1                  1.9  

15. Colorado                                              4.2                  2.0  

14. Arizona                                               4.8                  2.3  

13. Ohio                                                  5.1                  2.4  

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

Total                                                 \1\79.1              \1\36.8  




\1\Does not add due to rounding.                                              





                        NINE SOUTHERN STATES PLUS CALIFORNIA GET 51%              



      Split another way, these data are even more striking. The DoD spends 

   over half of its funds (51%) in nine Southern states and California.    




                                                                               




State                Amount received (in billions)     Percent of total  




California                                   $31.0                 14.5  

Virginia                                      21.0                  9.8  

Texas                                         17.4                  8.1  

Florida                                       12.6                  5.9  

Georgia                                        8.4                  3.9  

North Carolina                                 5.7                  2.7  

Alabama                                        4.1                  1.9  

South Carolina                                 3.3                  1.5  

Mississippi                                    3.3                  1.5  

Louisiana                                      2.4                  1.1  

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

Total                                        109.2                 50.9  



      Ten states received about $109 billion in military spending for FY   

   1996 and the other 40 states and the District of Columbia received about

   $106 billion. Four military dollars are spent in these 10 states for    

   every one dollar spent in the 40 other states.                          

      California alone received more DoD dollars than 26 other states      

   combined.                                                               

   Virginia alone received more DoD dollars than 22 states combined.       



   Texas alone received more DoD dollars than 20 states combined.          



   Florida alone received more DoD dollars than 14 states combined.        



   Georgia alone received more DoD dollars than 13 states combined.        





                        MILITARY SPENDING--GOP LEADERSHIP CONNECTION              





      When we see this geographic disparity in the distribution of funds   

   and then compare it to a list of the home states of the persons who sit 

   in the top leadership positions in the Congress, and the states         

   represented by those who control the major military spending committees,

   it becomes crystal clear why we see the distorted and lopsided spending 

   priorities coming out of this Body.                                     



      Many people in the rest of the country are being denied educational  

   opportunities, are not getting their roads and bridges fixed, are       

   drinking contaminated water and worrying about the safety of their food 

   supply because the current House leadership won't cut the billions in   

   pork out of this bill--pork that is headed straight home. Billions that 

   can be cut without hurting our national security.                       

      Even though poll after poll shows the American People want to invest 

   more in education, in the environment, in transportation, and in the    

   National Parks, this Congressional leadership is more than willing to   

   give these national priorities short shrift in order to keep pumping    

   money into this military spending machine.                              

      And, for the same reason, this Congressional leadership will continue

   its heavy resistance to cutting systems designed for yesterday's        

   military threats to pay for meeting the real threats of tomorrow.       



      These lopsided military spending patterns combined with the          

   geographic representation of the current House leadership all but ensure

   that we will continue to see larger than necessary military budgets and 

   status quo military policy guidance from Congress.                      

      The following table depicts key state-by-state data on Department of 

   Defense spending for FY 1996 derived from the Department of Defense     

   report Atlas/Data Abstract for the United States and Selected Areas,    

   Fiscal Year 1996.                                                       






                             DOD EST. PAYROLL, CONTRACTS, AND GRANTS BY STATE--FISCAL YEAR 1996                             

                                                [Dollar amounts in thousands]                                               




State                           Total compensation\1\     Total contracts\2\     Grants\3\     Grand total     State percent of total  




 1. California                            $12,331,651            $18,229,724      $480,332     $31,041,707                      14.46  

 2. Virginia                               11,355,738              9,562,978        73,442      20,992,138                       9.78  

 3. Texas                                   8,382,520              8,819,096       161,353      17,362,969                       8.09  

 4. Florida                                 6,669,595              5,862,639       116,062      12,648,296                       5.89  

 5. Missouri                                1,630,373              7,093,009        38,523       8,761,905                       4.08  

 6. Georgia                                 4,332,083              3,965,723        52,833       8,350,639                       3.89  

 7. Maryland                                3,264,795              4,136,785        98,039       7,499,619                       3.49  

 8. Washington                              3,812,840              2,382,417        48,132       6,243,389                       2.91  

 9. Pennsylvania                            2,218,245              3,687,357        89,035       5,994,637                       2.79  

10. North Carolina                          4,259,461              1,421,071        44,667       5,725,199                       2.67  

11. Massachusetts                             842,895              4,674,647       123,102       5,640,644                       2.63  

12. New York                                1,687,611              3,501,013       110,062       5,298,686                       2.47  

13. Ohio                                    2,336,540              2,732,748        48,924       5,118,212                       2.38  

14. Arizona                                 1,864,504              2,910,935        45,937       4,821,376                       2.25  

15. Colorado                                2,157,396              2,045,076        27,742       4,230,214                       1.97  

16. Alabama                                 2,182,770              1,838,276        33,918       4,054,964                       1.89  

17. New Jersey                              1,418,681              2,564,266        44,777       4,027,724                       1.88  

18. Nebraska                                  711,294              3,220,337         9,317       3,940,948                       1.84  

19. Illinois                                1,988,147              1,256,010        65,983       3,310,140                       1.54  

20. Hawaii                                  2,330,507                928,480        49,911       3,308,898                       1.54  

21. South Carolina                          2,262,837              1,012,497        32,781       3,308,115                       1.54  

22. Connecticut                               613,098              2,638,260        30,492       3,281,850                       1.53  

23. Mississippi                             1,300,819              1,912,106        46,468       3,259,393                       1.52  

24. Oklahoma                                2,171,991                771,232        11,940       2,955,163                       1.38  

25. District of Columbia                    1,236,791              1,482,673        39,589       2,759,053                       1.29  

26. Kentucky                                1,723,007                874,094        14,886       2,611,987                       1.22  

27. Indiana                                 1,021,635              1,552,012        31,085       2,604,732                       1.21  

28. Louisiana                               1,333,057              1,077,869        28,537       2,439,463                       1.14  

29. Tennessee                               1,071,609              1,137,232        26,537       2,235,378                       1.04  

30. Michigan                                  763,592              1,241,336       108,379       2,113,307                       0.98  

31. New Mexico                              1,168,071                676,391        20,408       1,864,870                       0.87  

32. Kansas                                  1,079,437                762,593        12,300       1,854,330                       0.86  

33. Alaska                                    878,995                564,890        15,893       1,459,778                       0.68  

34. Minnesota                                 393,418                960,361        72,548       1,426,327                       0.66  

35. Maine                                     524,536                797,224        10,216       1,331,976                       0.62  

36. Utah                                      915,508                394,678        15,570       1,325,756                       0.62  

37. Nevada                                    776,969                285,262         4,732       1,066,963                       0.50  

38. Wisconsin                                 412,549                551,276        44,655       1,008,480                       0.47  

39. Arkansas                                  730,388                249,281        27,155       1,006,824                       0.47  

40. New Hampshire                             239,909                567,892        28,243         836,044                       0.39  

41. Rhode Island                              437,243                333,969        13,163         784,375                       0.37  

42. Oregon                                    481,196                202,863        40,326         724,385                       0.34  

43. Iowa                                      244,354                370,617        21,547         636,518                       0.30  

44. North Dakota                              438,501                106,089        10,176         554,766                       0.26  

45. Idaho                                     346,324                132,517         9,073         487,914                       0.23  

46. West Virginia                             241,691                199,324        20,920         461,935                       0.22  

47. Delaware                                  331,551                101,554        12,303         445,408                       0.21  

48. Montana                                   297,566                 90,611         8,904         397,081                       0.18  

49. South Dakato                              257,727                109,969         5,075         372,771                       0.17  

50. Wyoming                                   232,534                 91,513         5,314         329,361                       0.15  

51. Vermont                                    89,800                225,426         6,818         322,044                       0.15  

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

Total                                                                                          214,638,651                     100.00  




\1\Includes funds for civilian pay, military active duty pay, reserve and National Guard pay, retired military pay.                                                                                                                                                                                                      

\2\Prime contract awards over $25,000 for civil functions contracts and military functions contracts. Prime contracts are generally reported at the location where the work is performed. For example, if a contractor is located in Nevada and wins a construction job in Utah, the contract will be listed for Utah.   

\3\Funds obligated by grants, cooperative agreements, or other non-procurement instruments reported at the location where the work is performed.                                                                                                                                                                         





         Dave Obey.