Congressional Documents

                          105 th Congress  1st Session                      



                            HOUSE OF REPRESENTATIVES                        



                                      Report                                 



                                       105 340                                



                                                                             



                                                                         









                      NATIONAL DEFENSE AUTHORIZATION                     



                         ACT FOR FISCAL YEAR 1998                        





                                                                           





                            CONFERENCE REPORT                            





                               to accompany                              





                                H.R. 1119                                





                                                                         



[Graphic Image Not Available]

                                                                         





                October   23,  1997.--Ordered to be printed              





        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998         





                                     44 180                                 



                                       1997                                  



                          105 th Congress  1st Session                      



                            HOUSE OF REPRESENTATIVES                        



                                      Report                                 



                                       105 340                                



                                                                             



                                                                         









                      NATIONAL DEFENSE AUTHORIZATION                     



                         ACT FOR FISCAL YEAR 1998                        





                                                                           





                            CONFERENCE REPORT                            





                               to accompany                              





                                H.R. 1119                                





                                                                         



[Graphic Image Not Available]

                                                                         





           October   23,  1997.--Ordered to be printed AEMD94 AF         





                            C O N T E N T S                             

         JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE       465

            Summary Statement of Conference Action                        465

            Summary Table of Authorizations                               465

            Congressional Defense Committees                              472

         DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                 472

          Title I--Procurement                                            472

            Funding Explanations                                          478



                               UH 60 blackhawk                             



                                          478                                   



                                Kiowa warrior                              



                                          478                                   



                Aircraft survivability equipment modifications             



                                          478                                   



                       Aircraft survivability equipment                    



                                          478                                   



                               Training devices                            



                                          478                                   



                                   Avenger                                 



                                          482                                   



                                   Hellfire                                



                                          482                                   



                     Multiple launch rocket system rocket                  



                                          482                                   



                    Multiple launch rocket system launcher                 



                                          482                                   



                       Brilliant anti-armor submunition                    



                                          482                                   



                           Bradley base sustainment                        



                                          486                                   



                  Field artillery ammunition support vehicle               



                                          486                                   



                           M109A6 paladin howitzer                         



                                          486                                   



                          Improved recovery vehicle                        



                                          486                                   



                            MK 19 grenade launcher                         



                                          507                                   



                                 Semitrailers                              



                                          518                                   



                 High mobility multi-purpose wheeled vehicle               



                                          518                                   



                      Family of heavy tactical vehicles                    



                                          518                                   



                     Truck, tractor, line haul, M915/M916                  



                                          518                                   



                   Defense satellite communications system                 



                                          519                                   



                             Satellite terminals                           



                                          519                                   



                      NAVSTAR global positioning system                    



                                          519                                   



                        Army data distribution system                      



                                          519                                   



                Area common user system modernization program              



                                          519                                   



                     Information system security program                   



                                          520                                   



                         Ground based common sensors                       



                                          520                                   



                                  Shortstop                                



                                          520                                   



                                 Night vision                              



                                          520                                   



                                   LOGTECH                                 



                                          521                                   



                           Maneuver control system                         



                                          521                                   



                     Automated data processing equipment                   



                                          521                                   



                          Railway car, flat, 100 ton                       



                                          521                                   



                         Training devices, nonsystem                       



                                          521                                   



                        Close combat tactical trainers                     



                                          522                                   



                         AV 8B Harrier remanufacture                       



                                          526                                   



                                T 45TS Goshawk                             



                                          526                                   



                                 EA 6 Series                               



                                          526                                   



                P 3C anti-surface warfare improvement program              



                                          527                                   



                             Power plant changes                           



                                          527                                   



                           Common Avionics Changes                         



                                          527                                   



                              Tactical Tomahawk                            



                                          531                                   



                            Joint Standoff Weapon                          



                                          531                                   



                           Penguin missile program                         



                                          532                                   



                             Hellfire II missiles                          



                                          532                                   



                 Close-in weapon system surface mode upgrade               



                                          532                                   



                           Pioneer logistic support                        



                                          532                                   



                                    LPD 18                                 



                                          492                                   



                          Oceanographic survey ship                        



                                          492                                   



                     AN/WSN 7 inertial navigation system                   



                                          501                                   



                      Self-contained breathing apparatus                   



                                          501                                   



                         Pollution control equipment                       



                                          501                                   



                     AN/BPS 16 submarine navigation radar                  



                                          501                                   



                      Cooperative engagement capability                    



                                          501                                   



                          Information Technology-21                        



                                          502                                   



                             Sonobuoy procurement                          



                                          502                                   



                       Mobile remote emitter simulator                     



                                          502                                   



          NATO sea sparrow missile system low light level television       



                                          503                                   



                           AEGIS support equipment                         



                                          503                                   



                  Light tactical wheeled vehicle replacement               



                                          507                                   



            Chemical/biological incident response force equipment          



                                          507                                   



                                      15E                                  



                                          537                                   





                                    C 130J                                 



                                          537                                   



                       Predator Unmanned Aerial Vehicle                    



                                          537                                   



                               15 Modifications                            



                                          537                                   



                               16 modifications                            



                                          538                                   



              Passenger safety and global air traffic management           



                                          538                                   



                   Defense Airborne Reconnaissance Program                 



                                          538                                   



                       Theater airborne warning system                     



                                          539                                   



                            AGM 130 Powered GBU 15                         



                                          545                                   



                               AGM 65 Maverick                             



                                          545                                   



                      Theater deployable communications                    



                                          550                                   



                     Automated document conversion system                  



                                          555                                   



                        Advanced SEAL delivery system                      



                                          555                                   



                             Night firing scopes                           



                                          555                                   



                                   Overview                                



                                          555                                   



                          Legislative Provisions Adopted                



                                          559                                   



                 Subtitle A--Authorization of Appropriations               



                                          559                                   



        Chemical agents and munitions destruction program (sec.  107)      



                                          559                                   



       Conduct of the chemical agents and munitions destruction program    



                                          559                                   



          Chemical stockpile emergency preparedness program (CSEPP)        



                                          560                                   



                          Subtitle B--Army Programs                        



                                          561                                   



                Army helicopter modernization plan (sec. 111)              



                                          561                                   



   Multiyear procurement authority for specified Army programs (sec.  112) 



                                          562                                   



                    M113 vehicle modifications (sec.  113)                 



                                          562                                   



                          Subtitle C--Navy Programs                        



        562                                                                     



   New Attack Submarine program (sec.  121)                                



        562                                                                     



   CVN 77 nuclear aircraft carrier program (sec.  122)                     



        563                                                                     



   Exclusion from cost limitation for Seawolf submarine program (sec.  123)



        564                                                                     



   Subtitle D--Air Force Programs                                          



        565                                                                     



   Authorization for B 2 bomber program (sec.  131)                        



        565                                                                     



   ALR radar warning receivers (sec.  132)                                 



        565                                                                     



      Analysis of requirements for replacement of engines on military      

   aircraft derived from Boeing 707 aircraft (sec. 133)                    

        565                                                                     



   Subtitle E--Other Matters                                               



        565                                                                     



      Pilot program on sales of manufactured articles and services of      

   certain army industrial facilities without regard to availability from  

   domestic sources (sec. 141)                                             

        565                                                                     



   NATO Joint Surveillance/Target Attack Radar System (sec. 142)           



        566                                                                     



          Legislative Provisions Not Adopted                            



        566                                                                     



   Limitation on obligation of funds for the Seawolf submarine program     



        566                                                                     



   Reduction in authorization of appropriations                            



        566                                                                     



   Airborne self protection jammer                                         



        566                                                                     



      Prohibition on use of funds for acquisition or alteration of private 

   drydocks                                                                

        567                                                                     



    Title II--Research, Development, Test, And Evaluation                  



        567                                                                     



          Funding Explanations                                          



        580                                                                     



   University and industry research centers                                



        580                                                                     



   Combat vehicle and automotive advanced technology                       



        580                                                                     



   Plastic cased ammunition                                                



        580                                                                     



   Electronics and electronic devices                                      



        581                                                                     



   Bioremediation, education, science, and technology program              



        581                                                                     



   Plasma energy pyrolysis system                                          



        581                                                                     



   Radford Environmental Development and Management Program                



        582                                                                     



   Military engineering technology                                         



        582                                                                     



   Medical Advanced Technology                                             



        582                                                                     



   Combat vehicle and automotive advanced technology                       



        582                                                                     



   Information systems technology, superiority, and security               



        583                                                                     



   Missile and rocket advanced technology                                  



        584                                                                     



   Landmine warfare and barrier advanced technology                        



        584                                                                     



   Joint service small arms program                                        



        584                                                                     



   Armament enhancement initiative                                         



        584                                                                     



   Aviation advanced development                                           



        585                                                                     



   All source analysis system                                              



        585                                                                     



   Light tactical wheeled vehicles                                         



        585                                                                     



   Engineer mobility equipment development program                         



        585                                                                     



   Automatic test equipment                                                



        585                                                                     



   Tactical Exploitation of National Capabilities                          



        585                                                                     





   Combined arms tactical trainer                                          



        586                                                                     



   Landmine warfare/barrier-engineering development                        



        586                                                                     



   Sense and destroy armament missile-engineering development              



        586                                                                     



   Fuel cells                                                              



        587                                                                     



   Combat vehicle improvement program                                      



        588                                                                     



   Aircraft modification/product improvement program                       



        588                                                                     



   Digitization                                                            



        588                                                                     



   Missile/air defense product improvement program                         



        589                                                                     



   Healthcare information protection demonstration                         



        589                                                                     



   End item industrial preparedness activities                             



        589                                                                     



   Defense research sciences                                               



        603                                                                     



   Marine mammal research program                                          



        603                                                                     



   Power electronic building blocks                                        



        603                                                                     



   Power node control centers                                              



        603                                                                     



   Second source for carbon fibers                                         



        604                                                                     



   Titanium processing technology                                          



        604                                                                     



   Arctic climate observations                                             



        604                                                                     



   National Oceanographic Partnership Program                              



        604                                                                     



   Antisubmarine warfare technology                                        



        605                                                                     



   Composite helicopter hangar                                             



        605                                                                     



   Project ``M''                                                           



        605                                                                     



   Marine Corps advanced technology demonstration                          



        606                                                                     



   Freeze-dried blood research project                                     



        606                                                                     



   Littoral antisubmarine warfare technology demonstration                 



        606                                                                     



   Beach and surf zone obstacle clearance                                  



        607                                                                     



   High frequency surface wave radar                                       



        607                                                                     



   Visualization architecture and technology                               



        607                                                                     



   Antisubmarine warfare systems development                               



        607                                                                     



   CV(X) carrier system development                                        



        608                                                                     



   Advanced submarine systems development                                  



        608                                                                     



   Cruiser conversion program design                                       



        609                                                                     



   Intercooled recuperated gas turbine engine                              



        609                                                                     



   Automatic target recognition/optical correlation                        



        609                                                                     



   Marine Corps assault vehicles                                           



        610                                                                     



   Marine Corps ground combat/support systems                              



        610                                                                     



   Cooperative engagement capability                                       



        610                                                                     



   Composite engineered materials                                          



        611                                                                     



   Land attack systems technology                                          



        611                                                                     



   Nonlethal weapons and technologies of mass protection program           



        612                                                                     



   CH 60 helicopter development                                            



        613                                                                     



   Parametric airborne dipping sonar                                       



        613                                                                     



   P 3 maritime patrol aircraft modernization program                      



        613                                                                     



   H 1 upgrades                                                            



        613                                                                     



   Advanced ranging source                                                 



        614                                                                     



   High Power Discriminator                                                



        614                                                                     



   Maritime fire support demonstrator/arsenal ship                         



        614                                                                     



   Multi-purpose processor                                                 



        616                                                                     



   Advanced submarine tactical electronic combat system                    



        616                                                                     



   CVN 77 research and development                                         



        617                                                                     



   Ship self-defense system                                                



        617                                                                     



   Safety and survivability enhancements                                   



        618                                                                     



    2 eight-blade composite propeller system                               



        618                                                                     



   Battle force tactical trainer                                           



        618                                                                     



   Joint tactical combat training system                                   



        619                                                                     



   Marine Corps communications systems                                     



        619                                                                     



   Marine Corps ground combat/supporting arms systems                      



        620                                                                     



   Manufacturing technology programs                                       



        620                                                                     



   Integrated High Payoff Rocket Propulsion Technology                     



        631                                                                     



   Military Spaceplane                                                     



        631                                                                     



   Solar thermionics orbital transfer vehicle                              



        631                                                                     



      Joint air-to-surface standoff missile/standoff land attack           

   missile-expanded response                                               

        632                                                                     



   Major test and evaluation investment                                    



        633                                                                     



   Smart monitoring system                                                 



        633                                                                     



   Rocket Systems Launch Program                                           



        633                                                                     



   Cruise missile defense                                                  



        633                                                                     



   University research initiatives                                         



        646                                                                     



   Next generation internet                                                



        646                                                                     



   Chemical and biological defense program                                 



        646                                                                     



   Tactical technology                                                     



        649                                                                     



   Integrated command and control                                          



        649                                                                     



   Materials and electronics technology                                    



        649                                                                     



   Explosives demilitarization technology                                  



        650                                                                     



   Counterterror technical support program                                 



        651                                                                     



      Domestic emergency response to threats of terrorist use of weapons of

   mass destruction                                                        

        652                                                                     



   Counterproliferation support program                                    



        654                                                                     



   Ballistic Missile Defense Organization funding                          



        655                                                                     



   Strategic environmental research and development program                



        660                                                                     



   Advanced electronics technologies                                       



        660                                                                     



   Electronic commerce resource centers                                    



        661                                                                     



   Land warfare technologies                                               



        661                                                                     



   Defense Reconnaissance Support Activities                               



        662                                                                     



   Special operations tactical systems development                         



        663                                                                     



   Special operations intelligence systems development                     



        663                                                                     



          Items of Special Interest                                     



        663                                                                     



   Army research institute                                                 



        663                                                                     





   Aviation advanced technology                                            



        664                                                                     



   BOL expendable dispenser system                                         



        664                                                                     



   Department of Defense science and technology program                    



        664                                                                     



   High temperature superconductor power applications                      



        664                                                                     



      Improving collaboration between the Department of Defense and the    

   Department of Energy laboratories                                       

        665                                                                     



   Interferometric synthetic aperture radar                                



        665                                                                     



   Naval biodynamics laboratory data bank                                  



        665                                                                     



   Strategic systems industrial capabilities                               



        666                                                                     



   Telemedicine                                                            



        666                                                                     



          Legislative Provisions Adopted                                



        667                                                                     



   Subtitle A--Authorization of Appropriations                             



        667                                                                     



   Dual-use technology program (sec. 203)                                  



        667                                                                     



   Subtitle B--Program Requirements, Restrictions, and Limitations         



        667                                                                     



   Manufacturing technology program (sec. 211)                             



        667                                                                     



   Report on operational field assessments program (sec. 212)              



        668                                                                     



   Joint Strike Fighter Program (sec. 213)                                 



        669                                                                     



   Kinetic energy tactical anti-satellite technology program (sec. 214)    



        669                                                                     



   Micro-satellite technology development program (sec. 215)               



        670                                                                     



   High altitude endurance unmanned vehicle program (sec. 216)             



        670                                                                     



    22 aircraft program (sec. 217)                                         



        670                                                                     



   Subtitle C--Ballistic Missile Defense Programs                          



        671                                                                     



   National Missile Defense Program (sec. 231)                             



        671                                                                     



      Budgetary treatment of amounts for procurement for ballistic missile 

   defense programs (sec. 232)                                             

        671                                                                     



   Cooperative Ballistic Missile Defense program (sec. 233)                



        671                                                                     



      Annual report on the threat posed to the United States by weapons of 

   mass destruction, ballistic missiles, and cruise missiles (sec. 234)    

        671                                                                     



   Director of Ballistic Missile Defense Organization (sec. 235)           



        672                                                                     



      Repeal of required deployment dates for core theater missile defense 

   programs (sec. 236)                                                     

        672                                                                     



   Subtitle D--Other Matters                                               



        672                                                                     



      Restructuring of National Oceanographic Partnership Program          

   Organization (sec. 241)                                                 

        672                                                                     



      Maintenance and repair of real property at Air Force installations   

   (sec. 242)                                                              

        672                                                                     



      Expansion of eligibility for the defense experimental program to     

   stimulate competitive research (sec. 243)                               

        674                                                                     



      Bioassay testing of veterans exposed to ionizing radiation during    

   military service (sec. 244)                                             

        674                                                                     



   Sense of Congress regarding Comanche program (sec. 245)                 



        674                                                                     



          Legislative Provisions Not Adopted                            



        675                                                                     



   Strategic environmental research and development program                



        675                                                                     



   Tactical unmanned aerial vehicles                                       



        675                                                                     



   Land Attack Standard Missile                                            



        675                                                                     



   Tactical High Energy Laser program                                      



        676                                                                     



   Advanced anti-radiation guided missile program                          



        676                                                                     



   Federally funded research and development centers                       



        676                                                                     



      Department of Defense/Veterans Administration cooperative research   

   program                                                                 

        676                                                                     



   Multitechnology integration in mixed-mode electronics                   



        677                                                                     



   Facial recognition technology program                                   



        677                                                                     



   Explosives demilitarization technology                                  



        677                                                                     



    Title III--Operation and Maintenance                                   



        678                                                                     



          Items of Special Interest                                     



        702                                                                     



   Arms control implementation                                             



        702                                                                     



   National Defense Sealift Fund (NDSF)                                    



        702                                                                     



   National imagery and mapping agency                                     



        703                                                                     



          Legislative Provisions Adopted                                



        704                                                                     



   Subtitle A--Authorization of Appropriations                             



        704                                                                     



   Fisher House trust funds (sec. 304)                                     



        704                                                                     



   Refurbishment of M1A1 Tanks (sec. 306)                                  



        705                                                                     



      Operation of prepositioned fleet, National Training Center, Fort     

   Irwin, California (sec. 307)                                            

        705                                                                     



   Refurbishment and installation of air search radar (sec. 308)           



        705                                                                     



   Contracted training flight services (sec. 309)                          



        705                                                                     



   Procurement technical assistance programs (sec. 310)                    



        705                                                                     



   Operation of Fort Chaffee, Arkansas (sec. 311)                          



        706                                                                     



   Subtitle B--Military Readiness Issues                                   



        706                                                                     



      Monthly reports on allocation of funds within operation and          

   maintenance budget subactivities (sec. 321)                             

        706                                                                     



   Expansion of scope of quarterly readiness report (sec. 322)             



        706                                                                     



      Semiannual reports on transfers from high-priority readiness         

   appropriations (sec. 323)                                               

        706                                                                     



   Annual report on aircraft inventory (sec. 324)                          



        706                                                                     





      Administrative actions adversely affecting military training or other

   readiness activities (sec. 325)                                         

        707                                                                     



   Common measurement of operations and personnel  tempo (sec. 326)        



        707                                                                     



      Inclusion of Air Force depot maintenance as operation and maintenance

   budget activity group (sec. 327)                                        

        707                                                                     



   Prohibition of implementation of tiered readiness  system (sec. 328)    



        707                                                                     



      Report on military readiness requirements of the Armed Forces (sec.  

   329)                                                                    

        708                                                                     



   Assessment of cyclical readiness posture of the  Armed Forces (sec. 330)



        708                                                                     



      Report on military exercises conducted under certain training        

   exercise programs (sec. 331)                                            

        709                                                                     



   Report on overseas deployment (sec. 332)                                



        709                                                                     



   Subtitle C--Environmental Provisions                                    



        709                                                                     



      Revision of membership terms for Strategic Environmental Research and

   Development Program Scientific Advisory Board (sec. 341)                

        709                                                                     



      Amendment to authority to enter into agreements with other agencies  

   in support of environmental technology certification (sec. 342)         

        710                                                                     



      Modifications of authority to store and dispose of non-defense toxic 

   and hazardous materials (sec. 343)                                      

        710                                                                     



      Annual report on payments and activities in response to fines and    

   penalties assessed under environmental laws (sec. 344)                  

        710                                                                     



      Annual report on environmental activities of the Department of       

   Defense overseas (sec. 345)                                             

        711                                                                     



      Review of existing environmental consequences of the presence of the 

   United States Armed Forces in Bermuda (sec. 346)                        

        711                                                                     



      Sense of Congress on deployment of United States Armed Forces abroad 

   for environmental preservation activities (sec. 347)                    

        711                                                                     



      Recovery and sharing of costs of environmental restoration at        

   Department of Defense sites (sec. 348)                                  

        711                                                                     



      Partnerships for investment in innovative environmental technologies 

   (sec. 349)                                                              

        712                                                                     



   Procurement of recycled copier paper (sec. 350)                         



        713                                                                     



      Pilot program for the sale of air pollution emission reduction       

   incentives (sec. 351)                                                   

        713                                                                     



   Subtitle D--Depot-Level Activities                                      



        713                                                                     



   Definition of Depot-Level Maintenance and Repair  (sec. 355)            



        714                                                                     



   Core Logistics Capabilities of Department of  Defense (sec. 356)        



        714                                                                     



      Increase in Percentage of Depot-Level Maintenance and Repair that may

   be Contracted for Performance by Non-Government Personnel (sec. 357)    

        715                                                                     



   Annual Report on Depot-Level Maintenance and  Repair (sec. 358)         



        715                                                                     



      Requirement for use of Competitive Procedures in Contracting for     

   Performance of Depot-Level Maintenance and Repair Workloads Formerly    

   Performed at Closed or Realigned Military Installations (sec. 359)      

        715                                                                     



      Clarification of Prohibition on Management of Depot Employees by     

   Constraints on Personnel Levels (sec. 360)                              

        718                                                                     



   Centers of Industrial and Technical Excellence  (sec. 361)              



        718                                                                     



      Extension of Authority for Aviation Depots and Naval Shipyards to    

   Engage in Defense Related Production and Services (sec. 362)            

        719                                                                     



      Repeal of Conditional Repeal of Certain Depot-Level Maintenance and  

   Repair laws and a Related Reporting Requirement (sec. 363)              

        719                                                                     



      Personnel Reductions, Army Depots Participating in Army Workload and 

   Performance System (sec. 364)                                           

        719                                                                     



      Report on Allocation of Core Logistics Activities Among Department of

   Defense Facilities and Private Sector Facilities (sec. 365)             

        720                                                                     



      Review of Use of Temporary Duty Assignments for Ship Repair and      

   Maintenance (sec. 366)                                                  

        720                                                                     



      Sense of Congress Regarding Realignment of Performance of Ground     

   Communication-Electronic Workload (sec. 367)                            

        720                                                                     



   Subtitle E--Commissaries and Nonappropriated Fund                       



        720                                                                     





   Merchandise and pricing requirements for  commissary stores (sec. 372)  



        720                                                                     



      Limitation on noncompetitive procurement of brand-name commercial    

   items for resale in commissary stores (sec. 373)                        

        721                                                                     



      Treatment of revenues derived from commissary store activities (sec. 

   374)                                                                    

        721                                                                     



      Maintenance, repair, and renovation of Armed Forces Recreation       

   Center, Europe (sec. 375)                                               

        721                                                                     



      Plan for use of public and private partnerships to benefit morale,   

   welfare and recreation activities (sec. 376)                            

        721                                                                     



          Instrumentalities                                             



        722                                                                     



   Subtitle F--Other Matters                                               



        722                                                                     



      Assistance to local educational agencies that benefit dependents of  

   members of the armed forces and Department of Defense civilian employees

   (sec. 381)                                                              

        722                                                                     



      Center for Excellence in Disaster Management and Humanitarian        

   Assistance (sec. 382)                                                   

        722                                                                     



      Applicability of Federal printing requirements to Defense Automated  

   Printing Service (sec. 383)                                             

        722                                                                     



      Study and notification requirements for conversion of commercial and 

   industrial type functions to contractor performance (sec. 384)          

        722                                                                     



      Collection and retention of cost information data on contracted out  

   services and functions (sec. 385)                                       

        723                                                                     



      Financial assistance to support additional duties assigned to Army   

   National Guard (sec. 386)                                               

        723                                                                     



   Competitive procurement of printing and  duplication services (sec. 387)



        723                                                                     



      Continuation and expansion of demonstration program to identify      

   overpayments made to vendors (sec. 388)                                 

        723                                                                     



      Standard forms regarding performance work statement and request for  

   proposal for conversion of services and functions at military           

   installations (sec. 389)                                                

        724                                                                     



   Base operations support for military installations  on Guam (sec. 390)  



        724                                                                     



   Warranty claims recovery pilot program (sec. 391)                       



        724                                                                     



      Program to investigate fraud, waste, and abuse within Department of  

   Defense (sec. 392)                                                      

        724                                                                     



   Multitechnology automated reader card  demonstration program (sec. 393) 



        725                                                                     



      Plan for reduction in overhead costs of inventory control points     

   (sec. 394)                                                              

        725                                                                     



      Schedule for implementation of best inventory management practices at

   Defense Logistic Agency (sec. 395)                                      

        725                                                                     



          Legislative Provisions Not Adopted                            



        726                                                                     



      Quarterly reports on execution of operation and maintenance          

   appropriations                                                          

        726                                                                     



      Exclusion of Certain Large Maintenance and Repair Projects from      

   Percentage Limitation on Contracting for Depot-Level Maintenance        

        726                                                                     



      Revision of report requirement of Navy program to monitor ecological 

   effects of organotin                                                    

        726                                                                     



      Pilot program to test an alternative technology for eliminating solid

   and liquid waste emissions during ship operations                       

        727                                                                     



      Transfer of jurisdiction over exchange, commissary, and morale,      

   welfare and recreation activities to Under sec.retary of Defense        

   Comptroller                                                             

        727                                                                     



      Authorized use of appropriated funds for relocation of Navy Exchange 

   Service Command                                                         

        727                                                                     



      Prohibition on use of Special Operations Command budget for base     

   operation support                                                       

        728                                                                     



      Availability of funds for separation pay for defense acquisition     

   personnel                                                               

        728                                                                     



   Competitive procurement of finance and accounting  services             



        728                                                                     



      Competitive procurement of services to dispose of surplus defense    

   property                                                                

        728                                                                     



      Competitive procurement of functions performed by Defense Information

   Systems Agency                                                          

        729                                                                     



      Competitive procurement of commercial and industrial type functions  

   by defense agencies                                                     

        729                                                                     



      Consolidation of procurement technical assistance centers and        

   electronic commerce resource centers                                    

        729                                                                     



   Risk assessments under the defense environmental  restoration program   



        729                                                                     



      Tagging system for identification of hydrocarbon fuels used by the   

   Department of Defense                                                   

        729                                                                     



   Report on options for the disposal of chemical  weapons and agents      



        730                                                                     



   Integration of military exchange services                               



        730                                                                     



    Title IV--Military Personnel Authorizations                            



        730                                                                     



          Legislative Provisions Adopted                                



        730                                                                     



   Subtitle A--Active Forces                                               



        730                                                                     



   End strengths for active forces (sec. 401)                              



        730                                                                     





      Permanent end strength levels to support two major regional          

   contingencies (sec. 402)                                                

        731                                                                     



   Subtitle B--Reserve Forces                                              



        732                                                                     



   End strengths for Selected Reserve (sec. 411)                           



        732                                                                     



      End strengths for Reserves on active duty in support of the Reserves 

   (sec. 412)                                                              

        733                                                                     



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



        734                                                                     



   Subtitle C--Authorization of Appropriations                             



        735                                                                     



   Authorization of appropriations for military  personnel (sec. 421)      



        735                                                                     



          Legislative Provisions Not Adopted                            



        735                                                                     



      Increase in number of members in certain grades authorized to serve  

   on active duty in support of the reserves                               

        735                                                                     



    Title V--Military Personnel Policy                                     



        736                                                                     



          Items of Special Interest                                     



        736                                                                     



   Personal Finance Training                                               



        736                                                                     



      Sequester of Department of Defense funds as a result of a prohibition

   against military recruiting on campuses of Connecticut State colleges   

   and universities                                                        

        736                                                                     



          Legislative Provisions Adopted                                



        736                                                                     



   Subtitle A--Officer Personnel Policy                                    



        736                                                                     



      Limitation on number of general and flag officers who may serve in   

   positions outside their own service (sec. 501)                          

        736                                                                     



      Exclusion of certain retired officers from limitation on period of   

   recall to active duty (sec. 502)                                        

        737                                                                     



      Clarification of officers eligible for consideration by promotion    

   boards (sec. 503)                                                       

        737                                                                     



      Authority to defer mandatory retirement for age of officers serving  

   as chaplains (sec. 504)                                                 

        737                                                                     



      Increase in number of officers allowed to be frocked to grades of    

   colonel and Navy captain (sec. 505)                                     

        738                                                                     



      Increased years of commissioned service for mandatory retirement of  

   regular generals and admirals in grades above major general and rear    

   admiral (sec. 506)                                                      

        738                                                                     



      Uniform policy for requirement of exemplary conduct by commanding    

   officers and others in authority (sec. 507)                             

        738                                                                     



      Report on the command selection process for District Engineers of the

   Army Corps of Engineers (sec. 508)                                      

        738                                                                     



   Subtitle B--Reserve Component Matters                                   



        739                                                                     



   Individual Ready Reserve activation authority  (sec. 511)               



        739                                                                     



   Termination of Mobilization Income Insurance  Program (sec. 512)        



        739                                                                     



      Correction of inequities in medical and dental care and death and    

   disability benefits for reserve members who incur or aggravate an       

   illness in the line of duty (sec. 513)                                  

        739                                                                     



      Authority to permit non-unit assigned officers to be considered by   

   vacancy promotion board to general officer grades (sec. 514)            

        739                                                                     



      Prohibition on use of Air Force Reserve AGR personnel for Air Force  

   base security functions (sec. 515)                                      

        739                                                                     



      Involuntary separation of reserve officers in an inactive status     

   (sec. 516)                                                              

        740                                                                     



      Federal status of service by National Guard members as honor guards  

   at funerals of veterans (sec. 517)                                      

        740                                                                     



   Subtitle C--Military Technicians                                        



        740                                                                     



      Authority to retain on the reserve active-status list until age 60   

   military technicians in the grade of brigadier general (sec. 521)       

        740                                                                     



   Military technicians (dual status) (sec. 522)                           



        741                                                                     



   Non-dual status military technicians (sec. 523)                         



        741                                                                     



      Report on feasibility and desirability of conversion of AGR personnel

   to military technicians (dual status) (sec. 524)                        

        741                                                                     



      Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit   

   Attrition                                                               

        742                                                                     



   Reform of military recruiting systems (sec. 531)                        



        742                                                                     



      Improvements in medical prescreening of applicants for military      

   service (sec. 532)                                                      

        742                                                                     



   Improvements in physical fitness of recruits (sec.  533)                



        742                                                                     



   Subtitle E--Military Education and Training                             



        743                                                                     



   Part I--Officer Education Programs                                      



        743                                                                     



      Requirement for candidates for admission to United States Naval      

   Academy to take oath of allegiance (sec. 541)                           

        743                                                                     



   Service academy foreign exchange program (sec.  542)                    



        743                                                                     



      Reimbursement of expenses incurred for instruction at service        

   academies of persons from foreign countries (sec. 543)                  

        743                                                                     



   Continuation of support to senior military  colleges (sec. 544)         



        743                                                                     





      Report on making United States nationals eligible for participation  

   in Senior Reserve Officers' Training Corps (sec. 545)                   

        744                                                                     



      Coordination of establishment and maintenance of Junior Reserve      

   Officers' Training Corps units to maximize enrollment and enhance       

   efficiency (sec. 546)                                                   

        744                                                                     



    Part II--Other Education Matters                                       



        744                                                                     



   United States Naval Postgraduate School (sec. 551)                      



        744                                                                     



   Community College of the Air Force (sec. 552)                           



        745                                                                     



      Preservation of entitlement to educational assistance of members of  

   the Selected Reserve serving on active duty in support of a contingency 

   operation (sec. 553)                                                    

        745                                                                     



   Part III--Training of Army Drill Sergeants                              



        745                                                                     



   Reform of Army drill sergeant selection and  training process (sec. 556)



        745                                                                     



      Training in human relations matters for Army drill sergeant trainees 

   (sec. 557)                                                              

        745                                                                     



   Subtitle F--Commission on Military Training and Gender-Related Issues   



        746                                                                     



   Subtitle G--Military Decorations and Awards                             



        746                                                                     



      Purple Heart to be awarded only to members of the Armed Forces (sec. 

   571)                                                                    

        746                                                                     



      Eligibility for Armed Forces Expeditionary Medal for participation in

   Operation Joint Endeavor or Operation Joint Guard (sec. 572)            

        746                                                                     



      Clarification of eligibility of members of Ready Reserve for award of

   service medal for heroism (sec. 574)                                    

        747                                                                     



      One-year extension of period for receipt of recommendations for      

   decorations and awards for certain military intelligence personnel (sec.

   575)                                                                    

        747                                                                     



      Eligibility of certain World War II military organizations for award 

   of unit decorations (sec. 576)                                          

        747                                                                     



   Retroactivity of Medal of Honor special pension (sec. 577)              



        747                                                                     



   Subtitle H--Military Justice Matters                                    



        747                                                                     



    Subtitle I--Other Matters                                              



        748                                                                     



   Sexual harassment investigations and reports (sec. 591)                 



        748                                                                     



      Sense of the Senate regarding study of matters relating to gender    

   equity in the Armed Forces (sec. 592)                                   

        748                                                                     



      Authority for personnel to participate in management of certain      

   non-Federal entities (sec. 593)                                         

        748                                                                     



      Treatment of participation of members in Department of Defense civil 

   military programs (sec. 594)                                            

        748                                                                     



      Comptroller General study of Department of Defense civil military    

   programs (sec. 595)                                                     

        749                                                                     



   Establishment of public affairs specialty in the  Army (sec. 596)       



        749                                                                     



   Grade of defense attache AE1 in France (sec. 597)                       



        749                                                                     



   Report on crew requirements of WC-130J aircraft (sec. 598)              



        749                                                                     



      Improvement of missing persons authorities applicable to Department  

   of Defense (sec. 599)                                                   

        749                                                                     



          Legislative Provisions Not Adopted                            



        751                                                                     



      Time-in-grade requirements for reserve commissioned officers retired 

   during the drawdown period                                              

        751                                                                     



      Grade requirement for officers eligible to serve on involuntary      

   separation boards                                                       

        751                                                                     



   Study of new decorations for injury or death in line of duty            



        751                                                                     



   Suspension of Temporary Early Retirement Authority                      



        751                                                                     



      Treatment of educational accomplishments of National Guard ChalleNGe 

   program participants                                                    

        751                                                                     



      Repeal of certain staffing and safety requirements for the Army      

   Ranger Training Brigade                                                 

        751                                                                     



    Title VI--Compensation and Other Personnel Benefits                    



        752                                                                     



          Legislative Provisions Adopted                                



        752                                                                     



   Subtitle A--Pay and Allowances                                          



        752                                                                     



   Increase in basic pay for fiscal year 1998 (sec. 601)                   



        752                                                                     



   Reform of basic allowance for subsistence (sec. 602)                    



        752                                                                     



      Consolidation of basic allowance for quarters, variable housing      

   allowance, and overseas housing allowances (sec. 603)                   

        752                                                                     



      Revision of authority to adjust compensation necessitated by reform  

   of subsistence and housing allowances (sec. 604)                        

        753                                                                     



      Protection of total compensation of members while performing certain 

   duty (sec. 605)                                                         

        753                                                                     



   Subtitle B--Bonuses and Special and Incentive Pays                      



        753                                                                     



      One-year extension of certain bonuses and special pay authorities for

   reserve forces (sec. 611)                                               

        753                                                                     



      One-year extension of certain bonuses and special pay authorities for

   nurse officer candidates, registered nurses, and nurse anesthetists     

   (sec. 612)                                                              

        754                                                                     





      One-year extension of authorities relating to payment of other       

   bonuses and special pays (sec. 613)                                     

        754                                                                     



      Increase in minimum monthly rate of hazardous duty incentive pay for 

   certain members (sec. 614)                                              

        755                                                                     



   Increase in aviation career incentive pay (sec. 615)                    



        755                                                                     



   Modification of aviation officer retention bonus (sec. 616)             



        755                                                                     



   Availability of multiyear retention bonus for dental officers (sec. 617)



        755                                                                     



      Increase in variable and additional special pays for certain dental  

   officers (sec. 618)                                                     

        755                                                                     



      Availability of special pay for duty at designated hardship duty     

   locations (sec. 619)                                                    

        756                                                                     



   Definition of sea duty for purposes of career sea pay (sec. 620)        



        756                                                                     



   Modification of Selected Reserve reenlistment bonus (sec. 621)          



        756                                                                     



      Modification of Selected Reserve enlistment bonus for former enlisted

   members (sec. 622)                                                      

        756                                                                     



      Expansion of reserve affiliation bonus to include Coast Guard Reserve

   (sec. 623)                                                              

        757                                                                     



      Increase in special pay and bonuses for nuclear-qualified officers   

   (sec. 624)                                                              

        757                                                                     



      Provision of bonuses in lieu of special pay for enlisted members     

   extending tours of duty at designated locations overseas (sec. 625)     

        757                                                                     



   Increase in amount of family separation allowance (sec. 626)            



        757                                                                     



   Deadline for payment of Ready Reserve muster duty allowance (sec. 627)  



        757                                                                     



   Subtitle C--Travel and Transportation Allowances                        



        758                                                                     



      Travel and transportation allowances for dependents before approval  

   of member's court-martial sentence (sec. 631)                           

        758                                                                     



   Dislocation allowance (sec. 632)                                        



        758                                                                     



   Subtitle D--Retired Pay, Survivor Benefits, and Related Matters         



        758                                                                     



      One-year opportunity to discontinue participation in Survivor Benefit

   Plan (sec. 641)                                                         

        758                                                                     



      Time in which change in survivor benefit coverage from former spouse 

   to spouse may be made (sec. 642)                                        

        758                                                                     



   Review of Federal former spouse protection laws (sec. 643)              



        759                                                                     



   Annuities for certain military surviving spouses (sec. 644)             



        759                                                                     



      Administration of benefits for so-called minimum income widows (sec. 

   645)                                                                    

        759                                                                     



   Subtitle E--Other Matters                                               



        759                                                                     



      Loan repayment program for commissioned officers in certain health   

   professions (sec. 651)                                                  

        759                                                                     



      Conformance of NOAA commissioned officers separation pay to          

   separation pay for members of other uniformed services (sec. 652)       

        760                                                                     



      Eligibility of Public Health Service officers and NOAA commissioned  

   corps officers for reimbursement of adoption expenses (sec. 653)        

        760                                                                     



      Payment of back quarters and subsistence allowances to World War II  

   veterans who served as guerrilla fighters in the Philippines (sec. 654) 

        760                                                                     



      Subsistence of members of the Armed Forces above the poverty level   

   (sec. 655)                                                              

        760                                                                     



          Legislative Provisions Not Adopted                            



        761                                                                     



   Space available travel for members of Selected Reserve                  



        761                                                                     



      Implementation of Department of Defense Supplemental Food Program for

   military personnel outside the United States                            

        761                                                                     



   Paid-up coverage under Survivor Benefit Plan                            



        761                                                                     



    Title VII--Health Care Provisions                                      



        761                                                                     



          Legislative Provisions Adopted                                



        761                                                                     



   Subtitle A--Health Care Services                                        



        761                                                                     



      Expansion of retiree dental insurance plan to include surviving      

   spouse and child dependents of certain deceased members (sec. 701)      

        761                                                                     



   Provision of prosthetic devices to covered beneficiaries (sec. 702)     



        761                                                                     



   Study concerning the provision of comparative information (sec. 703)    



        762                                                                     



   Subtitle B--TRICARE Program                                             



        762                                                                     



   Addition of definition of TRICARE program to title 10 (sec. 711)        



        762                                                                     



   Plan for expansion of managed care option of TRICARE program (sec. 712) 



        762                                                                     



   Subtitle C--Uniformed Services Treatment Facilities                     



        762                                                                     



      Implementation of designated provider agreements for Uniformed       

   Services Treatment Facilities (sec. 721)                                

        762                                                                     



   Continued acquisition of reduced-cost drugs (sec. 722)                  



        763                                                                     



      Subtitle D--Other Changes to Existing Laws Regarding Health Care     

   Management                                                              

        763                                                                     





      Improvements in health care coverage and access for members assigned 

   to certain duty locations far from sources of care (sec. 731)           

        763                                                                     



      Dental insurance plan coverage for retirees of the Public Health     

   Service and NOAA (sec. 734)                                             

        764                                                                     



      Consistency between CHAMPUS and Medicare in payment rates for        

   services (sec. 735)                                                     

        764                                                                     



      Use of personal services contracts for provision of health care      

   services and legal protection for providers (sec. 736)                  

        765                                                                     



      Standard form and requirements regarding claims for payment for      

   services (sec. 738)                                                     

        765                                                                     



   Chiropractic health care demonstration program  (sec. 739)              



        766                                                                     



   Subtitle E--Other Matters                                               



        766                                                                     



      Continued admission of civilians as students in physician assistant  

   training program of Army Medical Department (sec. 741)                  

        766                                                                     



      Payment for emergency health care overseas for military and civilian 

   personnel of the On-Site Inspection Agency (sec. 742)                   

        766                                                                     



      Authority for agreement for use of medical resource facility,        

   Alamogordo, New Mexico (sec. 743)                                       

        766                                                                     



      Disclosures of cautionary information on prescription medications    

   (sec. 744)                                                              

        767                                                                     



   Competitive procurement of certain ophthalmic  services (sec. 745)      



        767                                                                     



      Comptroller General study of adequacy and effect of maximum allowable

   charges for physicians under CHAMPUS (sec. 746)                         

        767                                                                     



      Comptroller General study of Department of Defense pharmacy programs 

   (sec. 747)                                                              

        767                                                                     



      Comptroller General study of Navy graduate medical education program 

   (sec. 748)                                                              

        767                                                                     



      Study of expansion of pharmaceuticals by mail program to include     

   additional Medicare-eligible covered beneficiaries (sec. 749)           

        768                                                                     



      Comptroller General study of requirement for military medical        

   facilities in the National Capital Region (sec. 750)                    

        768                                                                     



      Report on policies and programs to promote healthy lifestyles for    

   members of the Armed Forces and their dependents (sec. 751)             

        768                                                                     



   Sense of Congress regarding quality health care  for retirees (sec. 752)



        768                                                                     



   Subtitle F--Persian Gulf Illness                                        



        768                                                                     



   Plan for health care services for Persian Gulf  veterans (sec. 762)     



        768                                                                     



      Comptroller General study of revised disability criteria for physical

   evaluation boards (sec. 763)                                            

        769                                                                     



      Medical care for certain reserves who served in Southwest Asia during

   the Persian Gulf War (sec. 764)                                         

        769                                                                     



      Improved medical tracking system for members deployed overseas in    

   contingency or combat operations (sec. 765)                             

        769                                                                     



      Notice of use of investigational new drugs or drugs unapproved for   

   their applied use (sec. 766)                                            

        769                                                                     



      Sense of Congress regarding the deployment of specialized units for  

   detecting and monitoring chemical, biological, and similar hazards in a 

   theater of operations (sec. 768)                                        

        770                                                                     



   Sense of Congress concerning Gulf War illness  (sec. 771)               



        770                                                                     



          Legislative Provisions Not Adopted                            



        770                                                                     



   Medical personnel conscience clause                                     



        770                                                                     



       Title VIII--Acquisition Policy, Acquisition Management, and Related 

   Matters                                                                 

        771                                                                     



          Items of Special Interest                                     



        771                                                                     



   Cost accounting standards board                                         



        771                                                                     



          Legislative Provisions Adopted                                



        771                                                                     



      Subtitle A--Amendments to General Contracting Authorities,           

   Procedures, and Limitations                                             

        771                                                                     



      Expansion of authority to enter into contracts crossing fiscal years 

   to all severable service contracts not exceeding a year (sec. 801)      

        771                                                                     



      Vesting of title in the United States under contracts paid under     

   progress payment arrangements or similar arrangements (sec. 802)        

        772                                                                     



   Restriction on undefinitized contract actions  (sec. 803)               



        772                                                                     



      Limitation and report on payment of restructuring costs under defense

   contracts (sec. 804)                                                    

        772                                                                     



   Multiyear procurement contracts (sec. 806)                              



        772                                                                     



      Audit of procurement of military clothing and clothing-related items 

   by military installations in the United States (sec. 807)               

        773                                                                     



      Limitation on allowability of compensation for certain contractor    

   personnel (sec. 808)                                                    

        773                                                                     



   Elimination of certification requirement for  grants (sec. 809)         



        773                                                                     





   Repeal of limitation on adjustment of shipbuilding  contracts (sec. 810)



        774                                                                     



      Item-by-item and country-by-country waivers of domestic source       

   limitations (sec. 811)                                                  

        774                                                                     



   Subtitle B--Acquisition Assistance Programs                             



        774                                                                     



   One-year extension of pilot mentor-prote AE1ge AE1 program (sec. 821)   



        774                                                                     



      Test program for negotiation of comprehensive subcontracting plans   

   (sec. 822)                                                              

        774                                                                     



   Subtitle C--Administrative Provisions                                   



        775                                                                     



      Retention of expired funds during the pendency of contract litigation

   (sec. 831)                                                              

        775                                                                     



   Protection of certain information from disclosure  (sec. 832)           



        775                                                                     



   Unit cost reports (sec. 833)                                            



        775                                                                     



      Plan for providing contracting information to general public and     

   small business (sec. 834)                                               

        775                                                                     



      Two-year extension of crediting of certain purchases toward meeting  

   subcontracting goals (sec. 835)                                         

        776                                                                     



   Subtitle D--Other Matters                                               



        776                                                                     



   Repeal of certain acquisition requirements and reports (sec. 841)       



        776                                                                     



      Use of major range and test facility installations by commercial     

   entities (sec. 842)                                                     

        776                                                                     



      Requirement to develop and maintain list of firms not eligible for   

   defense contracts (sec. 843)                                            

        776                                                                     



      Sense of Congress regarding allowability of costs of employee stock  

   ownership plans (sec. 844)                                              

        777                                                                     



      Expansion of personnel eligible to participate in demonstration      

   project relating to acquisition workforce (sec. 845)                    

        777                                                                     



      Time for submission of annual report relating to Buy American Act    

   (sec. 846)                                                              

        777                                                                     



      Repeal of requirement for contractor guarantees on major weapon      

   systems (sec. 847)                                                      

        778                                                                     



   Requirements relating to micro-purchases (sec. 848)                     



        778                                                                     



   Promotion rate for officers in an acquisition  corps (sec. 849)         



        778                                                                     



   Use of electronic commerce in federal procurement  (sec. 850)           



        779                                                                     



      Conformance of policy on performance based management of civilian    

   acquisition programs with policy established for defense acquisition    

   programs (sec. 851)                                                     

        779                                                                     



      Modification of process requirements for the solutions-based         

   contracting pilot program (sec. 852)                                    

        779                                                                     



      Guidance and standards for defense acquisition workforce training    

   requirements (sec. 853)                                                 

        779                                                                     



      Study and report to Congress assessing dependence on foreign sources 

   for resistors and capacitors (sec. 854)                                 

        780                                                                     



      Department of Defense and Federal Prison Industries joint study (sec.

   855)                                                                    

        780                                                                     



          Legislative Provisions Not Adopted                            



        780                                                                     



   Domestic source limitation amendments                                   



        780                                                                     



      Repeal of expiration of domestic source limitation for certain naval 

   vessel propellers                                                       

        780                                                                     



   Availability of simplified procedures to  commercial item procurements  



        781                                                                     



   Price preference for small and disadvantaged  businesses                



        781                                                                     



    Title IX--Department of Defense Organization and Management            



        781                                                                     



          Legislative Provisions Adopted                                



        781                                                                     



      Subtitle A--Department of Defense Positions and Organizations and    

   Other General Matters                                                   

        781                                                                     



   Senior Representatives of the National Guard Bureau (sec. 901)          



        781                                                                     



   Use of CINC Initiative Fund for force protection  (sec. 902)            



        783                                                                     



      Revision to required frequency for provision of policy guidance for  

   contingency plans (sec. 903)                                            

        783                                                                     



      Annual justification for Department of Defense advisory committees   

   (sec. 904)                                                              

        783                                                                     



   Defense Airborne Reconnaissance Office (sec. 905)                       



        783                                                                     



   Termination of Armed Services Patent Advisory  Board (sec. 906)         



        785                                                                     



      Coordination of Department of Defense criminal investigations and    

   audits (sec. 907)                                                       

        785                                                                     



   Subtitle B--Department of Defense Personnel Management                  



        786                                                                     



      Reduction in personnel assigned to management headquarters and       

   headquarters support activities (sec. 911)                              

        786                                                                     



   Additional reduction in defense acquisition  workforce (sec. 912)       



        786                                                                     



   Subtitle C--Department of Defense Schools and Centers                   



        787                                                                     



   Professional military education schools (sec. 921)                      



        787                                                                     



   Center for Hemispheric Defense Studies (sec. 922)                       



        787                                                                     





      Correction to reference to George C. Marshall European Center for    

   Security Studies (sec. 923)                                             

        787                                                                     



   Subtitle D--Department of Defense Intelligence-Related Matters          



        787                                                                     



      Transfer of certain military department programs from TIARA budget   

   aggregation (sec. 931)                                                  

        787                                                                     



      Report on coordination of access of commanders and deployed units to 

   intelligence collected and analyzed by the intelligence community (sec. 

   932)                                                                    

        788                                                                     



      Protection of imagery, imagery intelligence, and geospatial          

   information and data (sec. 933)                                         

        788                                                                     



   POW/MIA intelligence analysis (sec. 934)                                



        788                                                                     



          Legislative Provisions Not Adopted                            



        788                                                                     



      Limitation on operation and support funds for the office of the      

   Secretary of Defense                                                    

        788                                                                     



   Center for the Study of Chinese Military Affairs                        



        789                                                                     



   White House Communications Agency                                       



        789                                                                     



   Personnel reductions in the United States Transportation Command        



        789                                                                     



   Commission on Defense Organization and Streamlining                     



        790                                                                     



      Principal duty of Assistant Secretary of Defense for Special         

   perations and Low Intensity Conflict                                    

        790                                                                     



    Title X--General Provisions                                            



        790                                                                     



          Items of Special Interest                                     



        790                                                                     



   Global Positioning System alternate master control station              



        790                                                                     



          Legislative Provisions Adopted                                



        791                                                                     



   Subtitle A--Financial Matters                                           



        791                                                                     



   Transfer authority (sec. 1001)                                          



        791                                                                     



   Incorporation of classified annex (sec. 1002)                           



        791                                                                     



      Authority for obligation of unauthorized fiscal year 1997 defense    

   appropriations (sec. 1003)                                              

        791                                                                     



      Authorization of prior emergency supplemental appropriations for     

   fiscal year 1997 (sec. 1004)                                            

        792                                                                     



   Increase in fiscal year 1996 transfer authority (sec. 1005)             



        792                                                                     



   Revision of authority for Fisher House trust funds (sec. 1006)          



        792                                                                     



      Flexibility in financing closure of certain outstanding contracts for

   which a small final payment is due (sec. 1007)                          

        792                                                                     



   Biennial financial management improvement plan (sec. 1008)              



        792                                                                     



      Estimates and requests for procurement and military construction for 

   the reserve components (sec. 1009)                                      

        792                                                                     



      Sense of Congress regarding funding for reserve component            

   modernization not requested in the President's budget (sec. 1010)       

        793                                                                     



   Management of working-capital funds (sec. 1011                          



        793                                                                     



      Authority of Secretary of Defense to settle claims relating to pay,  

   allowances, and other benefits (sec. 1012)                              

        794                                                                     



      Payment of claims by members for loss of personnel property due to   

   flooding in Red River Basin (sec. 1013)                                 

        794                                                                     



   Advances for payment of public services (sec. 1014)                     



        794                                                                     



   United States Man and the Biosphere Program limitation (sec. 1015)      



        794                                                                     



   Subtitle B--Naval Vessels and Shipyards                                 



        795                                                                     



      Procedures for sale of vessels stricken from the Naval Vessel        

   Register (sec. 1021)                                                    

        795                                                                     



      Authority to enter into a long-term charter for a vessel in support  

   of the Surveillance Towed-Array Sensor (SURTASS) program (sec. 1022)    

        795                                                                     



   Transfer of two specified obsolete tugboats of the  Army (sec. 1023)    



        795                                                                     



      Congressional review period with respect to transfer of the ex-U.S.S 

   Midway (CV 41) and ex.-U.S.S. Hornet (CV 12) (sec. 1024)                

        795                                                                     



   Transfers of naval vessels to certain foreign countries (sec. 1025)     



        795                                                                     



      Reports relating to export of vessels that may contain               

   polychlorinated biphenyls (sec. 1026)                                   

        796                                                                     



      Conversion of defense capability preservation authority to Navy      

   shipbuilding capability preservation authority (sec. 1027)              

        797                                                                     



   Subtitle C--Counter-Drug Activities                                     



        797                                                                     



      Use of National Guard for State drug interdiction and counterdrug    

   activities (sec. 1031)                                                  

        799                                                                     



      Authority to provide additional support for counter-drug activities  

   of the government of Mexico (sec. 1032)                                 

        799                                                                     



      Authority to provide additional support for counter-drug activities  

   of Peru and Colombia (sec. 1033)                                        

        799                                                                     



      Annual report on development and deployment of narcotics detection   

   technology (sec. 1034)                                                  

        800                                                                     





   Subtitle D--Miscellaneous Report Requirements and Repeals               



        800                                                                     



   Repeal of miscellaneous reporting requirements  (sec. 1041)             



        800                                                                     



   Study of transfer of Modular Airborne Fire  Fighting System (sec. 1042) 



        800                                                                     



   Overseas infrastructure requirements (sec. 1043)                        



        800                                                                     



      Additional matters for annual report on activities of the General    

   Accounting Office (sec. 1044)                                           

        801                                                                     



   Eye safety at small arms firing ranges (sec. 1045)                      



        801                                                                     



      Reports on Department of Defense procedures for investigating        

   military aviation accidents and for notifying and assisting families of 

   victims (sec. 1046)                                                     

        801                                                                     



   Subtitle E--Matters Relating to Terrorism                               



        802                                                                     



      Oversight of counterterrorism and antiterrorism programs and         

   activities of the United States (sec. 1051)                             

        802                                                                     



      Report on policies and practices relating to the protection of       

   members of the armed forces abroad from terrorist attack (sec. 1052)    

        802                                                                     



   Subtitle F--Matters Relating to Defense Property                        



        803                                                                     



      Lease of nonexcess personal property of the military departments     

   (sec. 1061)                                                             

        803                                                                     



   Lease of nonexcess property of defense agencies  (sec. 1062)            



        803                                                                     



      Donation of excess chapel property to churches damaged or destroyed  

   by arson or other acts of terrorism (sec. 1063)                         

        803                                                                     



      Authority of the Secretary of Defense concerning disposal of assets  

   under cooperative agreements on air defense in Central Europe (sec.     

   1064)                                                                   

        803                                                                     



      Sale of excess, obsolete, or unserviceable ammunition and ammunition 

   components (sec. 1065)                                                  

        804                                                                     



   Transfer of B 17 aircraft to museum (sec. 1066)                         



        805                                                                     



   Report on disposal of excess and surplus materials  (sec. 1067)         



        805                                                                     



   Subtitle G--Other Matters                                               



        805                                                                     



      Authority for special agents of the Defense Criminal Investigative   

   Service to execute warrants and make arrests (sec. 1071)                

        805                                                                     



      Study of investigative practices of military criminal investigative  

   organizations relating to sex crimes (sec. 1072)                        

        806                                                                     



   Technical and clerical amendments (sec. 1073)                           



        806                                                                     



   Sustainment and operation of the Global  Positioning System (sec. 1074) 



        806                                                                     



      Protection of safety-related information voluntarily provided by air 

   carriers (sec. 1075)                                                    

        806                                                                     



      National Guard ChalleNGe Program to create opportunities for civilian

   youth (sec. 1076)                                                       

        806                                                                     



      Disqualification from certain burial-related benefits for persons    

   convicted of capital crimes (sec. 1077)                                 

        807                                                                     



      Restrictions on the use of human subjects for testing of chemical or 

   biological agents (sec. 1078)                                           

        807                                                                     



   Treatment of military flight operations (sec.  1079)                    



        808                                                                     



      Naturalization of certain foreign nationals who serve honorably in   

   the Armed Forces during a period of conflict (sec. 1080)                

        808                                                                     



      Applicability of certain pay authorities to members of specified     

   independent study organizations (sec. 1081)                             

        808                                                                     



   Display of POW/MIA flag (sec. 1082)                                     



        809                                                                     



      Program to commemorate 50th anniversary of the Korean conflict (sec. 

   1083)                                                                   

        809                                                                     



      Commendation of members of the Armed Forces and Government civilian  

   personnel who served during the Cold War; certificate of recognition    

   (sec. 1084)                                                             

        809                                                                     



   Sense of Congress on granting of statutory Federal  charters (sec. 1085)



        809                                                                     



   Sense of Congress regarding military voting rights  (sec. 1086)         



        810                                                                     



      Designation of Bob Hope as an honorary veteran of the Armed Forces of

   the United States (sec. 1087)                                           

        810                                                                     



   Five-year extension of aviation insurance program  (sec. 1088)          



        811                                                                     



          Legislative provisions not adopted                            



        811                                                                     



   Naming of a DDG 51 class destroyer the U.S.S.  Thomas F. Connolly       



        811                                                                     



      Assignment of Department of Defense personnel to assist immigration  

   and naturalization service and custom service                           

        811                                                                     



      Repeal of annual report requirement relating to training of special  

   operations forces with friendly foreign forces                          

        811                                                                     



   Armament retooling and manufacturing support  initiative                



        811                                                                     



      Long-term charter contracts for acquisition of auxiliary vessels for 

   the Department of Defense                                               

        812                                                                     





      Availability of certain fiscal year 1991 funds for payment of        

   contract claim                                                          

        812                                                                     



   Psychotherapist-patient privilege in the Military  Rules of Evidence    



        812                                                                     



      Acceptance and use of landing fees for use of overseas military      

   airfields by civil aircraft                                             

        812                                                                     



      Protection of employees from retaliation for certain disclosures of  

   classified information                                                  

        812                                                                     



      Criminal prohibition on the distribution of certain information      

   relating to explosives, destructive devices, and weapons of mass        

   destruction                                                             

        813                                                                     



      Restrictions on quantities of alcoholic beverages available for      

   personnel overseas through Department of Defense sources                

        813                                                                     



    Title XI--Department of Defense Civilian Personnel                     



        814                                                                     



          Legislative Provisions Adopted                                



        814                                                                     



      Use of prohibited constraints to manage Department of Defense        

   personnel (sec. 1101)                                                   

        814                                                                     



      Veterans' preference status for certain veterans who served on active

   duty during the Persian Gulf War (sec. 1102)                            

        814                                                                     



      Repeal of deadline for placement consideration of involuntarily      

   separated military reserve technicians (sec. 1103)                      

        814                                                                     



      Rate of pay of Department of Defense overseas teachers upon transfer 

   to General Schedule position (sec. 1104)                                

        814                                                                     



   Garnishment and involuntary allotment (sec. 1105)                       



        815                                                                     



      Extension and revision of voluntary separation incentive pay         

   authority (sec. 1106)                                                   

        815                                                                     



      Use of approved fire-safe accommodations by Government employees on  

   official business (sec. 1107)                                           

        815                                                                     



      Navy higher education pilot program regarding administration of      

   business relationships between Government and private sector (sec. 1108)

        815                                                                     



      Authority for Marine Corps University to employ civilian faculty     

   members (sec. 1109)                                                     

        816                                                                     



    Title XII--Matters Relating to Other Nations                           



        816                                                                     



          Legislative Provisions Adopted                                



        816                                                                     



   Subtitle A--United States Armed Forces in Bosnia and Herzegovina        



        816                                                                     



      Limitation on the use of funds for the deployment of U.S. forces in  

   Bosnia beyond June 30, 1998 (secs. 1201 1206)                           

        816                                                                     



   Subtitle B--Export Controls on High Performance Computers               



        817                                                                     



   Export controls on high performance computers  (secs. 1211 1215)        



        817                                                                     



   Subtitle C--Other Matters                                               



        819                                                                     



      Temporary use of general purpose vehicles and nonlethal military     

   equipment under acquisition and cross servicing agreements (sec. 1222)  

        819                                                                     



      Sense of Congress and reports regarding financial costs of           

   enlargement of the North Atlantic Treaty Organization (sec. 1223)       

        819                                                                     



      Sense of Congress regarding expansion of the North Atlantic Treaty   

   Organization (sec. 1224)                                                

        819                                                                     



      Sense of the Congress relating to level of United States military    

   personnel in the East Asia and Pacific region (sec. 1225)               

        820                                                                     



      Report on future military capabilities and strategy of the People's  

   Republic of China (sec. 1226)                                           

        820                                                                     



      Sense of Congress on need for Russian openness on the Yamantau       

   Mountain Project (sec. 1227)                                            

        820                                                                     



      Assessment of the Cuban threat to United States national security    

   (sec. 1228)                                                             

        821                                                                     



   Report on Helsinki Joint Statement (sec. 1229)                          



        821                                                                     



   Commendation of Mexico on free and fair elections  (sec. 1230)          



        821                                                                     



   Sense of Congress regarding Cambodia (sec. 1231)                        



        821                                                                     



   Congratulating Governor Christopher Patten of Hong  Kong (sec. 1232)    



        822                                                                     



    Title XIII--Arms Control and Related Matters                           



        822                                                                     



          Legislative Provisions Adopted                                



        822                                                                     



      Presidential report concerning detargeting of Russian strategic      

   missiles (sec. 1301)                                                    

        822                                                                     



      Limitation on retirement or dismantlement of strategic nuclear       

   delivery systems (sec. 1302)                                            

        823                                                                     



      Assistance for facilities subject to inspection under the Chemical   

   Weapons Convention (sec. 1303).                                         

        823                                                                     



      Transfers of authorizations for high-priority counterproliferation   

   programs (sec. 1304)                                                    

        823                                                                     





      Advice to the President and Congress regarding the safety, security, 

   and reliability of United States nuclear weapons stockpile (sec. 1305)  

        824                                                                     



      Reconstitution of Commission to Assess the Ballistic Missile Threat  

   to the United States (sec. 1306)                                        

        824                                                                     



      Sense of Congress regarding the relationship between environmental   

   laws and United States obligations under the Chemical Weapons Convention

   (sec. 1307)                                                             

        824                                                                     



      Extension of counterproliferation authorities for support of United  

   Nations Special Commission on Iraq (sec. 1308)                          

        825                                                                     



      Annual report on moratorium on use by Armed Forces of antipersonnel  

   landmines (sec. 1309)                                                   

        825                                                                     



       Title XIV--Cooperative Threat Reduction With States of Former Soviet

   Union                                                                   

        826                                                                     



          Legislative Provisions Adopted                                



        826                                                                     



   Cooperative threat reduction (CTR) program (secs. 1401 1410)            



        826                                                                     



    Title XV--Federal Charter for the Air Force Sergeants                  



        828                                                                     



          Legislative Provisions Adopted                                



        828                                                                     



      Federal Charter for the Air Force Sergeants Association (secs. 1501  

   1516)                                                                   

        828                                                                     



   DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS                        



        828                                                                     



   Overview                                                                



        828                                                                     



    Title XXI--Army                                                        



        850                                                                     



   Overview                                                                



        850                                                                     



          Items of Special Interest                                     



        850                                                                     



   Planning and design, Army                                               



        850                                                                     



   Improvements of Military Family Housing, Army                           



        851                                                                     



          Legislative Provisions Adopted                                



        851                                                                     



      Correction in authorized uses of funds, Fort Irwin, California (sec. 

   2105)                                                                   

        851                                                                     



    Title XXII--Navy                                                       



        851                                                                     



   Overview                                                                



        851                                                                     



          Items of Special Interest                                     



        852                                                                     



   Improvements of military family housing, Navy                           



        852                                                                     



          Legislative Provisions Adopted                                



        852                                                                     



      Authorization of military construction project at Naval Station,     

   Pascagoula, Mississippi, for which funds have been appropriated (sec.   

   2205)                                                                   

        852                                                                     



      Increase in authorization for military construction projects at Naval

   Station Roosevelt Roads, Puerto Rico (sec. 2206)                        

        852                                                                     



    Title XXIII--Air Force                                                 



        852                                                                     



   Overview                                                                



        852                                                                     



          Items of Special Interest                                     



        853                                                                     



   Improvements of military family housing, Air Force                      



        853                                                                     



          Legislative Provisions Adopted                                



        853                                                                     



      Authorization of military construction project at McConnell Air Force

   Base, Kansas, for which funds have been appropriated (sec. 2305)        

        853                                                                     



    Title XXIV--Defense Agencies                                           



        853                                                                     



   Overview                                                                



        853                                                                     



          Legislative Provisions Adopted                                



        854                                                                     



      Clarification of authority relating to fiscal year 1997 project at   

   Naval Station, Pearl Harbor, Hawaii (sec. 2406)                         

        854                                                                     



      Correction in authorized uses of funds, McClellan Air Force Base,    

   California (sec. 2407)                                                  

        854                                                                     



      Modification of authority to carry out fiscal year 1995 projects     

   (sec. 2408)                                                             

        854                                                                     



       Title XXV--North Atlantic Treaty Organization Security Investment   

   Program                                                                 

        854                                                                     



   Overview                                                                



        854                                                                     



    Title XXVI--Guard and Reserve Forces Facilities                        



        855                                                                     



   Overview                                                                



        855                                                                     



          Items of Special Interest                                     



        855                                                                     



   Reserve construction project, Oakdale, Pennsylvania                     



        855                                                                     



          Legislative Provisions Adopted                                



        855                                                                     



      Authorization of military construction projects for which funds have 

   been appropriated (sec. 2602)                                           

        855                                                                     



   Army Reserve construction project, Camp Williams, Utah (sec. 2603)      



        856                                                                     



    Title XXVII--Expiration and Extension of Authorizations                



        856                                                                     



          Legislative Provisions Adopted                                



        856                                                                     



      Extension of authorizations of certain fiscal year 1995 projects     

   (sec. 2702)                                                             

        856                                                                     





      Extension of authorizations of certain fiscal year 1994 projects     

   (sec. 2703)                                                             

        856                                                                     



      Extension of authorizations of certain fiscal year 1993 projects     

   (sec. 2704)                                                             

        856                                                                     



      Extension of availability of funds for construction of relocatable   

   over-the-horizon radar, Naval Station Roosevelt Roads, Puerto Rico (sec.

   2706)                                                                   

        857                                                                     



    Title XXVIII--General Provisions                                       



        857                                                                     



          Legislative Provisions Adopted                                



        857                                                                     



      Subtitle A--Military Construction Program and Military Family Housing

   Changes                                                                 

        857                                                                     



      Use of mobility enhancement funds for unspecified minor construction 

   (sec. 2801)                                                             

        857                                                                     



      Limitation on the use of operation and maintenance funds for facility

   repair projects (sec. 2802)                                             

        857                                                                     



      Leasing of military family housing, United States Southern Command,  

   Miami, Florida (sec. 2803)                                              

        857                                                                     



      Use of financial incentives provided as part of energy savings and   

   water conservation activities (sec. 2804)                               

        858                                                                     



      Congressional notification requirements regarding use of Department  

   of Defense housing funds for investments in nongovernmental entities    

   (sec. 2805)                                                             

        858                                                                     



   Subtitle B--Real Property and Facilities Administration                 



        858                                                                     



   Increase in ceiling for minor land acquisition projects (sec. 2811)     



        858                                                                     



   Permanent authority regarding conveyance of utility systems (sec. 2812) 



        858                                                                     



      Administrative expenses for certain real property transactions (sec. 

   2813)                                                                   

        859                                                                     



      Screening of real property to be conveyed by the Department of       

   Defense (sec. 2814)                                                     

        859                                                                     



      Disposition of proceeds from sale of Air Force Plant 78, Brigham     

   City, Utah (sec. 2815)                                                  

        860                                                                     



      Fire protection and hazardous materials protection at Fort Meade,    

   Maryland (sec. 2816)                                                    

        860                                                                     



   Subtitle C--Defense Base Closure and Realignment                        



        860                                                                     



      Consideration of military installations as sites for new Federal     

   facilities (sec. 2821)                                                  

        860                                                                     



      Adjustment and diversification assistance to enhance performance of  

   military family support services by private sector sources (sec. 2822)  

        861                                                                     



      Security, fire protection, and other services at property formerly   

   associated with Red River Army Depot, Texas (sec. 2823)                 

        861                                                                     



   Report on closure and realignment of military installations (sec. 2824) 



        861                                                                     



      Sense of Senate regarding utilization of savings derived from base   

   closure process (sec. 2825)                                             

        862                                                                     



      Prohibition against conveyance of property at Long Beach Naval       

   Station to China Ocean Shipping Company (sec. 2826)                     

        862                                                                     



   Subtitle D--Land Conveyances                                            



        862                                                                     



   Part I--Army Conveyances                                                



        862                                                                     



   Land conveyance, Army Reserve Center, Greensboro, Alabama (sec. 2831)   



        862                                                                     



      Land Conveyance, James T. Coker Army Reserve Center, Durant, Oklahoma

   (sec. 2832)                                                             

        863                                                                     



      Land conveyance, Gibson Army Reserve Center, Chicago, Illinois (sec. 

   2833)                                                                   

        863                                                                     





   Land conveyance, Fort A.P Hill, Virginia (sec. 2834)                    



        863                                                                     



   Land conveyances, Fort Dix, New Jersey (sec. 2835)                      



        863                                                                     



   Land conveyances, Fort Bragg, North Carolina (sec.  2836)               



        864                                                                     



      Land conveyance, Hawthorne Army Ammunition Depot, Mineral County,    

   Nevada (sec. 2837)                                                      

        864                                                                     



      Expansion of land conveyance authority, Indiana Army Ammunition      

   Plant, Charlestown, Indiana (sec. 2838)                                 

        864                                                                     



   Modification of land conveyance, Lompoc,  California (sec. 2839)        



        865                                                                     



      Modification of land conveyance, Rocky Mountain Arsenal, Colorado    

   (sec. 2840)                                                             

        865                                                                     



      Correction of land conveyance authority, Army Reserve Center,        

   Anderson, South Carolina (sec. 2841)                                    

        865                                                                     



   Part II--Navy Conveyances                                               



        865                                                                     



      Land conveyance, Topsham Annex, Naval Air Station, Brunswick, Maine  

   (sec. 2851)                                                             

        865                                                                     



      Land conveyance, Naval Weapons Industrial Reserve Plant No 464,      

   Oyster Bay, New York (sec. 2852)                                        

        866                                                                     



      Correction of lease authority, Naval Air Station, Meridian,          

   Mississippi (sec. 2853)                                                 

        866                                                                     



   Part III--Air Force Conveyances                                         



        866                                                                     



   Land transfer, Eglin Air Force Base, Florida (sec. 2861)                



        866                                                                     



   Land conveyance, March Air Force Base, California (sec. 2862)           



        866                                                                     



   Land conveyance, Hancock Field, Syracuse, New York (sec. 2864)          



        867                                                                     



      Land conveyance, Havre Air Force Station, Montana, and Havre Training

   Site, Montana (sec. 2865)                                               

        867                                                                     



      Land conveyance, Charleston Family Housing Complex, Bangor, Maine    

   (sec. 2866)                                                             

        867                                                                     



      Study of land exchange options, Shaw Air Force Base, South Carolina  

   (sec. 2867)                                                             

        867                                                                     



   Subtitle E--Other Matters                                               



        868                                                                     



   Repeal of requirement to operate Naval Academy Dairy Farm (sec. 2871)   



        868                                                                     



   Long-term lease of property, Naples, Italy (sec. 2872)                  



        868                                                                     



      Designation of military family housing at Lackland Air Force Base,   

   Texas, in honor of Frank Tejeda, a former Member of the House of        

   Representatives (sec. 2873)                                             

        868                                                                     



      Fiber-optics based telecommunications linkage of military            

   installations (sec. 2874)                                               

        868                                                                     



          Legislative Provisions Not Adopted                            



        869                                                                     



      Modification of authority for disposal of certain real property, Fort

   Belvoir, Virginia                                                       

        869                                                                     



    Title XXIX--Sikes Act Improvement                                      



        869                                                                     



   Sikes Act Improvement (secs. 2901 2914)                                 



        869                                                                     



      DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND

   OTHER AUTHORIZATIONS                                                    

        870                                                                     



   Title XXXI-- Department of Energy National Security Programs            



        870                                                                     



          Legislative Provisions Adopted                                



        891                                                                     



   Subtitle A--National Security Programs Authorizations                   



        891                                                                     



   Weapons activities (sec.  3101)                                         



        891                                                                     



   Environmental restoration and waste management (sec. 3102)              



        891                                                                     



   Other defense activities (sec. 3103)                                    



        893                                                                     



   Subtitle B--Recurring General Provisions                                



        895                                                                     



   Limits on general plant projects (sec. 3122)                            



        895                                                                     



   Fund transfer authority (sec. 3124)                                     



        896                                                                     



   Authority for conceptual and construction design (sec. 3125)            



        896                                                                     



   Availability of funds (sec. 3128)                                       



        896                                                                     



   Transfers of defense environmental management funds (sec. 3129)         



        897                                                                     



   Subtitle C--Program Authorizations, Restrictions, and Limitations       



        897                                                                     



      Memorandum of understanding for use of national laboratories for     

   Ballistic Missile Defenses programs (sec. 3131)                         

        897                                                                     



   Defense environmental management privatization projects (sec. 3132)     



        897                                                                     



   International cooperative stockpile stewardship programs (sec. 3133)    



        898                                                                     



   Modernization of enduring nuclear weapons complex (sec. 3134)           



        898                                                                     



   Tritium production (sec. 3135)                                          



        900                                                                     



      Processing, treatment, and disposition of spent nuclear fuel rods and

   other legacy nuclear materials at the Savannah River Site (sec. 3136)   

        900                                                                     



      Limitations on use of funds for laboratory directed research and     

   development purposes (sec. 3137)                                        

        901                                                                     



      Pilot program relating to use of proceeds of disposal or utilization 

   of certain Department of Energy assets (sec. 3138)                      

        901                                                                     



      Modification and extension of authority relating to appointment of   

   certain scientific, engineering, and technical personnel (sec. 3139)    

        902                                                                     



      Limitation on use of funds for subcritical nuclear weapons tests     

   (sec. 3140)                                                             

        902                                                                     



      Limitation on use of certain funds until future use plans are        

   submitted (sec. 3141)                                                   

        902                                                                     



   Subtitle D--Other Matters                                               



        903                                                                     



      Plan for stewardship, management, and certification of warheads in   

   the nuclear weapons stockpile (sec. 3151)                               

        903                                                                     



   Repeal of obsolete reporting requirements (sec. 3152)                   



        903                                                                     



      Study and funding relating to implementation of workforce            

   restructuring plans (sec. 3153)                                         

        903                                                                     



   Plan for external oversight of national laboratories (sec. 3154)        



        904                                                                     



   University-based research collaboration program (sec. 3155)             



        904                                                                     



   Stockpile stewardship program (sec. 3156)                               



        904                                                                     



      Reports on advanced supercomputer sales to certain foreign nations   

   (sec. 3157)                                                             

        905                                                                     





      Transfers of real property at certain Department of Energy facilities

   (sec. 3159)                                                             

        905                                                                     



      Requirement to delegate certain authorities to site manager of       

   Hanford Reservation (sec 3150)                                          

        906                                                                     



   Submittal of biennial waste management reports  (sec 3160)              



        906                                                                     



   Board on security functions of Department of  Energy (sec. 3161)        



        906                                                                     



      Submittal of annual report on status of security functions at nuclear

   weapons facilities (sec. 3162)                                          

        906                                                                     



      Modification of authority on commission on maintaining United States 

   nuclear weapons expertise (sec. 3163)                                   

        907                                                                     



   Land transfer, Bandelier National Monument (sec. 3164)                  



        907                                                                     



      Final settlement of Department of Energy community assistance        

   obligations with respect to Los Alamos National Laboratory, New Mexico  

   (sec. 3165)                                                             

        907                                                                     



      Sense of Congress regarding the Y 12 Plant in Oak Ridge, Tennessee   

   (sec. 3166)                                                             

        908                                                                     



      Support for public education in the vicinity of Los Alamos National  

   Laboratory, New Mexico (sec. 3167)                                      

        908                                                                     



   Improvements to Greenville Road, Livermore,  California (sec. 3168)     



        908                                                                     



   Report on alternative system for availability of  funds (sec. 3169)     



        909                                                                     



      Report on remediation under the Formerly Utilized Sites Remedial     

   Action Program (sec. 3170)                                              

        909                                                                     



          Legislative Provisions Not Adopted                            



        909                                                                     



      Report on proposed contract for Hanford tank waste vitrification     

   project                                                                 

        909                                                                     



   Defense environmental management privatization                          



        910                                                                     



   Tritium production in commercial facilities                             



        910                                                                     



   Administration of certain Department of Energy  activities              



        911                                                                     



      Participation of the national security activities in Hispanic        

   Outreach Initiative of the Department of Energy                         

        912                                                                     



    Title XXXII--Defense Nuclear Facilities Safetyboard                    



        912                                                                     



          Legislative Provisions Adopted                                



        912                                                                     



   Report on external regulation of defense nuclear  facilities (sec. 3202)



        912                                                                     



    Title XXXIII--National Defense Stockpile                               



        913                                                                     



          Legislative Provisions Adopted                                



        913                                                                     



   Definitions (sec. 3301)                                                 



        913                                                                     



   Authorized uses of stockpile funds (sec. 3302)                          



        913                                                                     



      Authorized uses of beryllium copper master alloy in National Defense 

   Stockpile (sec. 3303)                                                   

        913                                                                     



      Disposal of titanium sponge in the National Defense Stockpile (sec.  

   3304)                                                                   

        913                                                                     



   Disposal of cobalt in National Defense Stockpile (sec. 3305)            



        913                                                                     



      Required procedures for disposal of strategic and critical materials 

   (sec. 3306)                                                             

        914                                                                     



      Return of surplus platinum from the Department of the Treasury (sec. 

   3307)                                                                   

        914                                                                     



          Legislative Provisions Not Adopted                            



        914                                                                     



   Restrictions on disposal of certain manganese ferro                     



        914                                                                     



    Title XXXIV--Naval Petroleum Reserves                                  



        914                                                                     



          Legislative Provisions Adopted                                



        914                                                                     



      Price requirement on sale of certain petroleum during fiscal year    

   1998 (sec. 3402)                                                        

        914                                                                     



      Repeal of requirement to assign Navy officers to Office of Naval     

   Petroleum and Oil Shale Reserves (sec. 3403)                            

        915                                                                     



      Transfer of jurisdiction, Naval Oil Shale Reserves numbered 1 and 3  

   (sec. 3404)                                                             

        915                                                                     



    Title XXXV--Panama Canal Commission                                    



        915                                                                     



   Panama Canal Commission (secs. 3501 3550)                               



        915                                                                     



    Title XXXVI--Maritime Administration                                   



        916                                                                     



          Legislative Provisions Adopted                                



        916                                                                     



   Authorization of appropriations for fiscal year  1998 (sec. 3601)       



        916                                                                     



      Repeal of obsolete annual report requirement concerning relative cost

   of shipbuilding in the various coastal districts of the United States   

   (sec. 3602)                                                             

        916                                                                     



   Provisions relating to maritime security fleet  program (sec. 3603)     



        916                                                                     



   Authority to utilize replacement vessels and  capacity (sec. 3604)      



        917                                                                     



   Authority to convey National Defense Reserve Fleet  vessel (sec. 3605)  



        917                                                                     



      Determination of gross tonnage for purposes of tank vessel double    

   hull requirements (sec. 3606)                                           

        917                                                                     





 44 180                                                                  



105 th Congress                                                         



Report                                                                  



                                                                            



                                                                             



HOUSE OF REPRESENTATIVES                                                



1st Session                                                             



105 340                                                                 



                                                                        







       NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998                 







                                                                         



 October  23, 1997.--Ordered to be printed                               



                                                                         



 Mr.  Spence , from the committee of conference, submitted the following 



 CONFERENCE REPORT                                                       



 [To accompany H.R. 1119]                                                





       The committee of conference on the disagreeing votes of the two     

   Houses on the amendments of the Senate to the bill (H.R. 1119) to       

   authorize appropriations for fiscal year 1998 for military activities of

   the Department of Defense, for military construction, and for defense   

   activities of the Department of Energy, to prescribe personnel strengths

   for such fiscal year for the Armed Forces, and for other purposes,      

   having met, after full and free conference, have agreed to recommend and

   do recommend to their respective Houses as follows:                     

       That the House recede from its disagreement to the amendment of the 

   Senate to the text of the bill and agree to the same with an amendment  

   as follows:                                                             

       In lieu of the matter proposed to be inserted by the Senate         

   amendment, insert the following:                                        



          SECTION 1. SHORT TITLE.                                                 



     This Act may be cited as the ``National Defense Authorization Act for

  Fiscal Year 1998''.                                                     

          SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.          



     (a) Divisions.--This Act is organized into three divisions as        

  follows:                                                                

     (1) Division A--Department of Defense Authorizations.                 



     (2) Division B--Military Construction Authorizations.                 



       (3) Division C--Department of Energy National Security              

   Authorizations and Other Authorizations.                                

     (b) Table of Contents.--The table of contents for this Act is as     

  follows:                                                                





      Sec. 1. Short title.                                                    



      Sec. 2. Organization of Act into divisions; table of contents.          



      Sec. 3. Congressional defense committees defined.                       





                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            





                                    TITLE I--PROCUREMENT                          



                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 101. Army.                                                         



      Sec. 102. Navy and Marine Corps.                                        



      Sec. 103. Air Force.                                                    



      Sec. 104. Defense-wide activities.                                      



      Sec. 105. Reserve components.                                           



      Sec. 106. Defense Inspector General.                                    



      Sec. 107. Chemical Demilitarization Program.                            



      Sec. 108. Defense health programs.                                      



      Sec. 109. Defense Export Loan Guarantee Program.                        



                                  SUBTITLE B--ARMY PROGRAMS                       



      Sec. 111. Army helicopter modernization plan.                           



      Sec. 112. Multiyear procurement authority for specified Army programs.  



      Sec. 113. M113 vehicle modifications.                                   



                                  SUBTITLE C--NAVY PROGRAMS                       



      Sec. 121. New Attack Submarine program.                                 



      Sec. 122. CVN 77 nuclear aircraft carrier program.                      



      Sec. 123. Exclusion from cost limitation for Seawolf submarine program. 



                               SUBTITLE D--AIR FORCE PROGRAMS                     



      Sec. 131. Authorization for B 2 bomber program.                         



      Sec. 132. ALR radar warning receivers.                                  





            Sec. 133. Analysis of requirements for replacement of engines on  

      military aircraft derived from Boeing 707 aircraft.                     

                                  SUBTITLE E--OTHER MATTERS                       



            Sec. 141. Pilot program on sales of manufactured articles and     

      services of certain Army industrial facilities without regard to        

      availability from domestic sources.                                     

      Sec. 142. NATO Joint Surveillance/Target Attack Radar System.           



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



                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 201. Authorization of appropriations.                              



      Sec. 202. Amount for basic and applied research.                        



      Sec. 203. Dual-use technology program.                                  



            Sec. 204. Reduction in amount for Federally Funded Research and   

      Development Centers.                                                    

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    



      Sec. 211. Manufacturing technology program.                             



      Sec. 212. Report on operational field assessments program.              



      Sec. 213. Joint Strike Fighter program.                                 



      Sec. 214. Kinetic energy tactical anti-satellite technology program.    



      Sec. 215. Micro-satellite technology development program.               



      Sec. 216. High altitude endurance unmanned vehicle program.             



      Sec. 217. F 22 aircraft program.                                        



                       SUBTITLE C--BALLISTIC MISSILE DEFENSE PROGRAMS             



      Sec. 231. National Missile Defense Program.                             



            Sec. 232. Budgetary treatment of amounts for procurement for      

      ballistic missile defense programs.                                     

      Sec. 233. Cooperative Ballistic Missile Defense program.                



            Sec. 234. Annual report on threat posed to the United States by   

      weapons of mass destruction, ballistic missiles, and cruise missiles.   

      Sec. 235. Director of Ballistic Missile Defense Organization.           



            Sec. 236. Repeal of required deployment dates for core theater    

      missile defense programs                                                

                                  SUBTITLE D--OTHER MATTERS                       



            Sec. 241. Restructuring of National Oceanographic Partnership     

      Program organizations.                                                  

            Sec. 242. Maintenance and repair of real property at Air Force    

      installations.                                                          

            Sec. 243. Expansion of eligibility for the Defense Experimental   

      Program to Stimulate Competitive Research.                              

            Sec. 244. Bioassay testing of veterans exposed to ionizing        

      radiation during military service.                                      

      Sec. 245. Sense of Congress regarding Comanche program.                 



                            TITLE III--OPERATION AND MAINTENANCE                  



                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 301. Operation and maintenance funding.                            



      Sec. 302. Working capital funds.                                        



      Sec. 303. Armed Forces Retirement Home.                                 



      Sec. 304. Fisher House Trust Funds.                                     



      Sec. 305. Transfer from National Defense Stockpile Transaction Fund.    



      Sec. 306. Refurbishment of M1 A1 tanks.                                 



            Sec. 307. Operation of prepositioned fleet, National Training     

      Center, Fort Irwin, California.                                         

      Sec. 308. Refurbishment and installation of air search radar.           



      Sec. 309. Contracted training flight services.                          



      Sec. 310. Procurement technical assistance programs.                    



      Sec. 311. Operation of Fort Chaffee, Arkansas.                          



                            SUBTITLE B--MILITARY READINESS ISSUES                 



            Sec. 321. Monthly reports on allocation of funds within operation 

      and maintenance budget subactivities.                                   

      Sec. 322. Expansion of scope of quarterly readiness reports.            



            Sec. 323. Semiannual reports on transfers from high-priority      

      readiness appropriations.                                               

      Sec. 324. Annual report on aircraft inventory.                          



            Sec. 325. Administrative actions adversely affecting military     

      training or other readiness activities.                                 

      Sec. 326. Common measurement of operations tempo and personnel tempo.   



            Sec. 327. Inclusion of Air Force depot maintenance as operation   

      and maintenance budget line items.                                      

      Sec. 328. Prohibition of implementation of tiered readiness system.     



      Sec. 329. Report on military readiness requirements of the Armed Forces.



      Sec. 330. Assessment of cyclical readiness posture of the Armed Forces. 



            Sec. 331. Report on military exercises conducted under certain    

      training exercises programs.                                            

      Sec. 332. Report on overseas deployments.                               



                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  



            Sec. 341. Revision of membership terms for Strategic Environmental

      Research and Development Program Scientific Advisory Board.             

            Sec. 342. Amendments to authority to enter into agreements with   

      other agencies in support of environmental technology certification.    

            Sec. 343. Modifications of authority to store and dispose of      

      nondefense toxic and hazardous materials.                               

            Sec. 344. Annual report on payments and activities in response to 

      fines and penalties assessed under environmental laws.                  

            Sec. 345. Annual report on environmental activities of the        

      Department of Defense overseas.                                         

            Sec. 346. Review of existing environmental consequences of the    

      presence of the Armed Forces in Bermuda.                                

            Sec. 347. Sense of Congress on deployment of United States Armed  

      Forces abroad for environmental preservation activities.                

            Sec. 348. Recovery and sharing of costs of environmental          

      restoration at Department of Defense sites.                             

            Sec. 349. Partnerships for investment in innovative environmental 

      technologies.                                                           

      Sec. 350. Procurement of recycled copier paper.                         



            Sec. 351. Pilot program for the sale of air pollution emission    

      reduction incentives.                                                   

                             SUBTITLE D--DEPOT-LEVEL ACTIVITIES                   



      Sec. 355. Definition of depot-level maintenance and repair.             



      Sec. 356. Core logistics capabilities of Department of Defense.         



            Sec. 357. Increase in percentage of depot-level maintenance and   

      repair that may be contracted for performance by non-government         

      personnel.                                                              

      Sec. 358. Annual report on depot-level maintenance and repair.          





            Sec. 359. Requirement for use of competitive procedures in        

      contracting for performance of depot-level maintenance and repair       

      workloads formerly performed at closed or realigned military            

      installations.                                                          

            Sec. 360. Clarification of prohibition on management of depot     

      employees by constraints on personnel levels.                           

      Sec. 361. Centers of Industrial and Technical Excellence.               



            Sec. 362. Extension of authority for aviation depots and naval    

      shipyards to engage in defense-related production and services.         

            Sec. 363. Repeal of a conditional repeal of certain depot-level   

      maintenance and repair laws and a related reporting requirement.        

            Sec. 364. Personnel reductions, Army depots participating in Army 

      Workload and Performance System.                                        

            Sec. 365. Report on allocation of core logistics activities among 

      Department of Defense facilities and private sector facilities.         

            Sec. 366. Review of use of temporary duty assignments for ship    

      repair and maintenance.                                                 

            Sec. 367. Sense of Congress regarding realignment of performance  

      of ground communication-electronic workload.                            

             SUBTITLE E--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  



            Sec. 371. Reorganization of laws regarding commissaries and       

      exchanges and other morale, welfare, and recreation activities.         

      Sec. 372. Merchandise and pricing requirements for commissary stores.   



            Sec. 373. Limitation on noncompetitive procurement of brand-name  

      commercial items for resale in commissary stores.                       

            Sec. 374. Treatment of revenues derived from commissary store     

      activities.                                                             

            Sec. 375. Maintenance, repair, and renovation of Armed Forces     

      Recreation Center, Europe.                                              

            Sec. 376. Plan for use of public and private partnerships to      

      benefit morale, welfare, and recreation activities.                     

                                  SUBTITLE F--OTHER MATTERS                       



            Sec. 381. Assistance to local educational agencies that benefit   

      dependents of members of the Armed Forces and Department of Defense     

      civilian employees.                                                     

            Sec. 382. Center for Excellence in Disaster Management and        

      Humanitarian Assistance.                                                

            Sec. 383. Applicability of Federal printing requirements to       

      Defense Automated Printing Service.                                     

            Sec. 384. Study and notification requirements for conversion of   

      commercial and industrial type functions to contractor performance.     

            Sec. 385. Collection and retention of cost information data on    

      converted services and functions.                                       

            Sec. 386. Financial assistance to support additional duties       

      assigned to Army National Guard.                                        

      Sec. 387. Competitive procurement of printing and duplication services. 



            Sec. 388. Continuation and expansion of demonstration program to  

      identify overpayments made to vendors.                                  

            Sec. 389. Development of standard forms regarding performance work

      statement and request for proposal for conversion of certain operational

      functions of military installations.                                    

      Sec. 390. Base operations support for military installations on Guam.   



      Sec. 391. Warranty claims recovery pilot program.                       



            Sec. 392. Program to investigate fraud, waste, and abuse within   

      Department of Defense.                                                  

      Sec. 393. Multitechnology automated reader card demonstration program.  



      Sec. 394. Reduction in overhead costs of Inventory Control Points.      



      Sec. 395. Inventory management.                                         



                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              



                                  SUBTITLE A--ACTIVE FORCES                       



      Sec. 401. End strengths for active forces.                              



            Sec. 402. Permanent end strength levels to support two major      

      regional contingencies.                                                 

                                 SUBTITLE B--RESERVE FORCES                       



      Sec. 411. End strengths for Selected Reserve.                           



            Sec. 412. End strengths for Reserves on active duty in support of 

      the Reserves.                                                           

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



                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 421. Authorization of appropriations for military personnel.       



                             TITLE V--MILITARY PERSONNEL POLICY                   



                            SUBTITLE A--OFFICER PERSONNEL POLICY                  



            Sec. 501. Limitation on number of general and flag officers who   

      may serve in positions outside their own service.                       

            Sec. 502. Exclusion of certain retired officers from limitation on

      period of recall to active duty.                                        

            Sec. 503. Clarification of officers eligible for consideration by 

      promotion boards.                                                       

            Sec. 504. Authority to defer mandatory retirement for age of      

      officers serving as chaplains.                                          

            Sec. 505. Increase in number of officers allowed to be frocked to 

      grades of colonel and Navy captain.                                     

            Sec. 506. Increased years of commissioned service for mandatory   

      retirement of regular generals and admirals in grades above major       

      general and rear admiral.                                               

            Sec. 507. Uniform policy for requirement of exemplary conduct by  

      commanding officers and others in authority.                            

            Sec. 508. Report on the command selection process for District    

      Engineers of the Army Corps of Engineers.                               

                            SUBTITLE B--RESERVE COMPONENT MATTERS                 



      Sec. 511. Individual Ready Reserve activation authority.                



      Sec. 512. Termination of Mobilization Income Insurance Program.         



            Sec. 513. Correction of inequities in medical and dental care and 

      death and disability benefits for reserve members who incur or aggravate

      an illness in the line of duty.                                         

            Sec. 514. Authority to permit non-unit assigned officers to be    

      considered by vacancy promotion board to general officer grades.        

            Sec. 515. Prohibition on use of Air Force Reserve AGR personnel   

      for Air Force base security functions.                                  

            Sec. 516. Involuntary separation of reserve officers in an        

      inactive status.                                                        

            Sec. 517. Federal status of service by National Guard members as  

      honor guards at funerals of veterans.                                   

                              SUBTITLE C--MILITARY TECHNICIANS                    



            Sec. 521. Authority to retain on the reserve active-status list   

      until age 60 military technicians in the grade of brigadier general.    

      Sec. 522. Military technicians (dual status).                           





      Sec. 523. Non-dual status military technicians.                         



            Sec. 524. Report on feasibility and desirability of conversion of 

      AGR personnel to military technicians (dual status).                    

             SUBTITLE D--MEASURES TO IMPROVE RECRUIT QUALITY AND REDUCE RECRUIT   

                                    ATTRITION                                     

      Sec. 531. Reform of military recruiting systems.                        



            Sec. 532. Improvements in medical prescreening of applicants for  

      military service.                                                       

      Sec. 533. Improvements in physical fitness of recruits.                 





                         SUBTITLE E--MILITARY EDUCATION AND TRAINING              



                             PART I--OFFICER EDUCATION PROGRAMS                   



            Sec. 541. Requirement for candidates for admission to United      

      States Naval Academy to take oath of allegiance.                        

      Sec. 542. Service academy foreign exchange program.                     



            Sec. 543. Reimbursement of expenses incurred for instruction at   

      service academies of persons from foreign countries.                    

      Sec. 544. Continuation of support to senior military colleges.          



            Sec. 545. Report on making United States nationals eligible for   

      participation in Senior Reserve Officers' Training Corps.               

            Sec. 546. Coordination of establishment and maintenance of Junior 

      Reserve Officers' Training Corps units to maximize enrollment and       

      enhance efficiency.                                                     

                              PART II--OTHER EDUCATION MATTERS                    



      Sec. 551. United States Naval Postgraduate School.                      



      Sec. 552. Community College of the Air Force.                           



            Sec. 553. Preservation of entitlement to educational assistance of

      members of the Selected Reserve serving on active duty in support of a  

      contingency operation.                                                  

                         PART III--TRAINING OF ARMY DRILL SERGEANTS               



      Sec. 556. Reform of Army drill sergeant selection and training process. 



            Sec. 557. Training in human relations matters for Army drill      

      sergeant trainees.                                                      

            SUBTITLE F--COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES 



      Sec. 561. Establishment and composition of Commission.                  



      Sec. 562. Duties.                                                       



      Sec. 563. Administrative matters.                                       



      Sec. 564. Termination of Commission.                                    



      Sec. 565. Funding.                                                      



      Sec. 566. Subsequent consideration by Congress.                         



                         SUBTITLE G--MILITARY DECORATIONS AND AWARDS              



            Sec. 571. Purple Heart to be awarded only to members of the Armed 

      Forces.                                                                 

            Sec. 572. Eligibility for Armed Forces Expeditionary Medal for    

      participation in Operation Joint Endeavor or Operation Joint Guard.     

            Sec. 573. Waiver of time limitations for award of certain         

      decorations to specified persons.                                       

            Sec. 574. Clarification of eligibility of members of Ready Reserve

      for award of service medal for heroism.                                 

            Sec. 575. One-year extension of period for receipt of             

      recommendations for decorations and awards for certain military         

      intelligence personnel.                                                 

            Sec. 576. Eligibility of certain World War II military            

      organizations for award of unit decorations.                            

      Sec. 577. Retroactivity of Medal of Honor special pension.              



                            SUBTITLE H--MILITARY JUSTICE MATTERS                  



            Sec. 581. Establishment of sentence of confinement for life       

      without eligibility for parole.                                         

            Sec. 582. Limitation on appeal of denial of parole for offenders  

      serving life sentence.                                                  

                                  SUBTITLE I--OTHER MATTERS                       



      Sec. 591. Sexual harassment investigations and reports.                 



            Sec. 592. Sense of the Senate regarding study of matters relating 

      to gender equity in the Armed Forces.                                   

            Sec. 593. Authority for personnel to participate in management of 

      certain non-Federal entities.                                           

            Sec. 594. Treatment of participation of members in Department of  

      Defense civil military programs.                                        

            Sec. 595. Comptroller General study of Department of Defense civil

      military programs.                                                      

      Sec. 596. Establishment of public affairs specialty in the Army.        



      Sec. 597. Grade of defense attache AE1 in France.                       



      Sec. 598. Report on crew requirements of WC 130J aircraft.              



            Sec. 599. Improvement of missing persons authorities applicable to

      Department of Defense.                                                  

                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          



                               SUBTITLE A--PAY AND ALLOWANCES                     



      Sec. 601. Increase in basic pay for fiscal year 1998.                   



      Sec. 602. Reform of basic allowance for subsistence.                    



            Sec. 603. Consolidation of basic allowance for quarters, variable 

      housing allowance, and overseas housing allowances.                     

            Sec. 604. Revision of authority to adjust compensation            

      necessitated by reform of subsistence and housing allowances.           

            Sec. 605. Protection of total compensation of members while       

      performing certain duty.                                                

                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           



            Sec. 611. One-year extension of certain bonuses and special pay   

      authorities for reserve forces.                                         

            Sec. 612. One-year extension of certain bonuses and special pay   

      authorities for nurse officer candidates, registered nurses, and nurse  

      anesthetists.                                                           

            Sec. 613. One-year extension of authorities relating to payment of

      other bonuses and special pays.                                         

            Sec. 614. Increase in minimum monthly rate of hazardous duty      

      incentive pay for certain members.                                      

      Sec. 615. Increase in aviation career incentive pay.                    



      Sec. 616. Modification of aviation officer retention bonus.             



      Sec. 617. Availability of multiyear retention bonus for dental officers.



            Sec. 618. Increase in variable and additional special pays for    

      certain dental officers.                                                

            Sec. 619. Availability of special pay for duty at designated      

      hardship duty locations.                                                

      Sec. 620. Definition of sea duty for purposes of career sea pay.        



      Sec. 621. Modification of Selected Reserve reenlistment bonus.          





            Sec. 622. Modification of Selected Reserve enlistment bonus for   

      former enlisted members.                                                

            Sec. 623. Expansion of reserve affiliation bonus to include Coast 

      Guard Reserve.                                                          

            Sec. 624. Increase in special pay and bonuses for                 

      nuclear-qualified officers.                                             

            Sec. 625. Provision of bonuses in lieu of special pay for enlisted

      members extending tours of duty at designated locations overseas.       

      Sec. 626. Increase in amount of family separation allowance.            



      Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.  



                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            



            Sec. 631. Travel and transportation allowances for dependents     

      before approval of member's court-martial sentence.                     

      Sec. 632. Dislocation allowance.                                        



               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    



            Sec. 641. One-year opportunity to discontinue participation in    

      Survivor Benefit Plan.                                                  

            Sec. 642. Time in which change in survivor benefit coverage from  

      former spouse to spouse may be made.                                    

      Sec. 643. Review of Federal former spouse protection laws.              



      Sec. 644. Annuities for certain military surviving spouses.             



            Sec. 645. Administration of benefits for so-called minimum income 

      widows.                                                                 

                                  SUBTITLE E--OTHER MATTERS                       



            Sec. 651. Loan repayment program for commissioned officers in     

      certain health professions.                                             

            Sec. 652. Conformance of NOAA commissioned officers separation pay

      to separation pay for members of other uniformed services.              

            Sec. 653. Eligibility of Public Health Service officers and NOAA  

      commissioned corps officers for reimbursement of adoption expenses.     

            Sec. 654. Payment of back quarters and subsistence allowances to  

      World War II veterans who served as guerrilla fighters in the           

      Philippines.                                                            

            Sec. 655. Subsistence of members of the Armed Forces above the    

      poverty level.                                                          

                              TITLE VII--HEALTH CARE PROVISIONS                   



                              SUBTITLE A--HEALTH CARE SERVICES                    



            Sec. 701. Expansion of retiree dental insurance plan to include   

      surviving spouse and child dependents of certain deceased members.      

      Sec. 702. Provision of prosthetic devices to covered beneficiaries.     



      Sec. 703. Study concerning the provision of comparative information.    



                                 SUBTITLE B--TRICARE PROGRAM                      



      Sec. 711. Addition of definition of TRICARE program to title 10.        



      Sec. 712. Plan for expansion of managed care option of TRICARE program. 



                     SUBTITLE C--UNIFORMED SERVICES TREATMENT FACILITIES          



            Sec. 721. Implementation of designated provider agreements for    

      Uniformed Services Treatment Facilities.                                

      Sec. 722. Continued acquisition of reduced-cost drugs.                  



      Sec. 723. Limitation on total payments.                                 



              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    

                                   MANAGEMENT                                     

            Sec. 731. Improvements in health care coverage and access for     

      members assigned to certain duty locations far from sources of care.    

            Sec. 732. Waiver or reduction of copayments under overseas dental 

      program.                                                                

            Sec. 733. Premium collection requirements for medical and dental  

      insurance programs; extension of deadline for implementation of dental  

      insurance program for military retirees.                                

            Sec. 734. Dental insurance plan coverage for retirees of the      

      Public Health Service and NOAA.                                         

            Sec. 735. Consistency between CHAMPUS and Medicare in payment     

      rates for services.                                                     

            Sec. 736. Use of personal services contracts for provision of     

      health care services and legal protection for providers.                

            Sec. 737. Portability of State licenses for Department of Defense 

      health care professionals.                                              

            Sec. 738. Standard form and requirements regarding claims for     

      payment for services.                                                   

      Sec. 739. Chiropractic health care demonstration program.               



                                  SUBTITLE E--OTHER MATTERS                       



            Sec. 741. Continued admission of civilians as students in         

      physician assistant training program of Army Medical Department.        

            Sec. 742. Payment for emergency health care overseas for military 

      and civilian personnel of the On-Site Inspection Agency.                

            Sec. 743. Authority for agreement for use of medical resource     

      facility, Alamogordo, New Mexico.                                       

            Sec. 744. Disclosures of cautionary information on prescription   

      medications.                                                            

      Sec. 745. Competitive procurement of certain ophthalmic services.       



            Sec. 746. Comptroller General study of adequacy and effect of     

      maximum allowable charges for physicians under CHAMPUS.                 

            Sec. 747. Comptroller General study of Department of Defense      

      pharmacy programs.                                                      

            Sec. 748. Comptroller General study of Navy graduate medical      

      education program.                                                      

            Sec. 749. Study of expansion of pharmaceuticals by mail program to

      include additional Medicare-eligible covered beneficiaries.             

            Sec. 750. Comptroller General study of requirement for military   

      medical facilities in National Capital Region.                          

            Sec. 751. Report on policies and programs to promote healthy      

      lifestyles for members of the Armed Forces and their dependents.        

      Sec. 752. Sense of Congress regarding quality health care for retirees. 



                              SUBTITLE F--PERSIAN GULF ILLNESS                    



      Sec. 761. Definitions.                                                  



      Sec. 762. Plan for health care services for Persian Gulf veterans.      



            Sec. 763. Comptroller General study of revised disability criteria

      for physical evaluation boards.                                         

            Sec. 764. Medical care for certain reserves who served in         

      Southwest Asia during the Persian Gulf War.                             

            Sec. 765. Improved medical tracking system for members deployed   

      overseas in contingency or combat operations.                           

            Sec. 766. Notice of use of investigational new drugs or drugs     

      unapproved for their applied use.                                       



            Sec. 767. Report on plans to track location of members in a       

      theater of operations.                                                  

            Sec. 768. Sense of Congress regarding the deployment of           

      specialized units for detecting and monitoring chemical, biological, and

      similar hazards in a theater of operations.                             

            Sec. 769. Report on effectiveness of research efforts regarding   

      Gulf War illnesses.                                                     

      Sec. 770. Persian Gulf illness clinical trials program.                 



      Sec. 771. Sense of Congress concerning Gulf War illness.                



            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   

                                     MATTERS                                      

           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 

                                 AND LIMITATIONS                                  

            Sec. 801. Expansion of authority to enter into contracts crossing 

      fiscal years to all severable service contracts not exceeding a year.   

            Sec. 802. Vesting of title in the United States under contracts   

      paid under progress payment arrangements or similar arrangements.       

      Sec. 803. Restriction on undefinitized contract actions.                



            Sec. 804. Limitation and report on payment of restructuring costs 

      under defense contracts.                                                

            Sec. 805. Increased price limitation on purchases of right-hand   

      drive vehicles.                                                         

      Sec. 806. Multiyear procurement contracts.                              



            Sec. 807. Audit of procurement of military clothing and           

      clothing-related items by military installations in the United States.  

            Sec. 808. Limitation on allowability of compensation for certain  

      contractor personnel.                                                   

      Sec. 809. Elimination of certification requirement for grants.          



      Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts. 



            Sec. 811. Item-by-item and country-by-country waivers of domestic 

      source limitations.                                                     

                         SUBTITLE B--ACQUISITION ASSISTANCE PROGRAMS              



      Sec. 821. One-year extension of pilot mentor-protege program.           



            Sec. 822. Test program for negotiation of comprehensive           

      subcontracting plans.                                                   

                            SUBTITLE C--ADMINISTRATIVE PROVISIONS                 



            Sec. 831. Retention of expired funds during the pendency of       

      contract litigation.                                                    

      Sec. 832. Protection of certain information from disclosure.            



      Sec. 833. Unit cost reports.                                            



            Sec. 834. Plan for providing contracting information to general   

      public and small businesses.                                            

            Sec. 835. Two-year extension of crediting of certain purchases    

      toward meeting subcontracting goals.                                    

                                  SUBTITLE D--OTHER MATTERS                       



      Sec. 841. Repeal of certain acquisition requirements and reports        



            Sec. 842. Use of major range and test facility installations by   

      commercial entities.                                                    

            Sec. 843. Requirement to develop and maintain list of firms not   

      eligible for defense contracts.                                         

            Sec. 844. Sense of Congress regarding allowability of costs of    

      employee stock ownership plans.                                         

            Sec. 845. Expansion of personnel eligible to participate in       

      demonstration project relating to acquisition workforce.                

            Sec. 846. Time for submission of annual report relating to Buy    

      American Act.                                                           

            Sec. 847. Repeal of requirement for contractor guarantees on major

      weapon systems.                                                         

      Sec. 848. Requirements relating to micro-purchases.                     



      Sec. 849. Promotion rate for officers in an acquisition corps.          



      Sec. 850. Use of electronic commerce in Federal procurement.            



            Sec. 851. Conformance of policy on performance based management of

      civilian acquisition programs with policy established for defense       

      acquisition programs.                                                   

            Sec. 852. Modification of process requirements for the            

      solutions-based contracting pilot program.                              

            Sec. 853. Guidance and standards for defense acquisition workforce

      training requirements.                                                  

            Sec. 854. Study and report to Congress assessing dependence on    

      foreign sources for resistors and capacitors.                           

            Sec. 855. Department of Defense and Federal Prison Industries     

      joint study.                                                            

                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      



           SUBTITLE A--DEPARTMENT OF DEFENSE POSITIONS AND ORGANIZATIONS AND OTHER

                                 GENERAL MATTERS                                  

            Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff 

      for National Guard matters and for Reserve matters.                     

      Sec. 902. Use of CINC Initiative Fund for force protection.             



            Sec. 903. Revision to required frequency for provision of policy  

      guidance for contingency plans.                                         

            Sec. 904. Annual justification for Department of Defense advisory 

      committees.                                                             

      Sec. 905. Airborne reconnaissance management.                           



      Sec. 906. Termination of the Armed Services Patent Advisory Board.      



            Sec. 907. Coordination of Department of Defense criminal          

      investigations and audits.                                              

                   SUBTITLE B--DEPARTMENT OF DEFENSE PERSONNEL MANAGEMENT         



            Sec. 911. Reduction in personnel assigned to management           

      headquarters and headquarters support activities.                       

      Sec. 912. Defense acquisition workforce.                                



                    SUBTITLE C--DEPARTMENT OF DEFENSE SCHOOLS AND CENTERS         



      Sec. 921. Professional military education schools.                      



      Sec. 922. Center for Hemispheric Defense Studies.                       



            Sec. 923. Correction to reference to George C. Marshall European  

      Center for Security Studies.                                            

               SUBTITLE D--DEPARTMENT OF DEFENSE INTELLIGENCE-RELATED MATTERS     



            Sec. 931. Transfer of certain military department programs from   

      TIARA budget aggregation.                                               

            Sec. 932. Report on coordination of access of commanders and      

      deployed units to intelligence collected and analyzed by the            

      intelligence community.                                                 

            Sec. 933. Protection of imagery, imagery intelligence, and        

      geospatial information and data.                                        



      Sec. 934. POW/MIA intelligence analysis.                                



                                 TITLE X--GENERAL PROVISIONS                      



                                SUBTITLE A--FINANCIAL MATTERS                     



      Sec. 1001. Transfer authority.                                          



      Sec. 1002. Incorporation of classified annex.                           



            Sec. 1003. Authority for obligation of unauthorized fiscal year   

      1997 defense appropriations.                                            

            Sec. 1004. Authorization of prior emergency supplemental          

      appropriations for fiscal year 1997.                                    

      Sec. 1005. Increase in fiscal year 1996 transfer authority.             



      Sec. 1006. Revision of authority for Fisher House trust funds.          



            Sec. 1007. Flexibility in financing closure of certain outstanding

      contracts for which a small final payment is due.                       

      Sec. 1008. Biennial financial management improvement plan.              



            Sec. 1009. Estimates and requests for procurement and military    

      construction for the reserve components.                                

            Sec. 1010. Sense of Congress regarding funding for reserve        

      component modernization not requested in President's budget.            

      Sec. 1011. Management of working-capital funds.                         



            Sec. 1012. Authority of Secretary of Defense to settle claims     

      relating to pay, allowances, and other benefits.                        

            Sec. 1013. Payment of claims by members for loss of personal      

      property due to flooding in Red River Basin.                            

      Sec. 1014. Advances for payment of public services.                     



      Sec. 1015. United States Man and the Biosphere Program limitation.      



                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                



            Sec. 1021. Procedures for sale of vessels stricken from the Naval 

      Vessel Register.                                                        

            Sec. 1022. Authority to enter into a long-term charter for a      

      vessel in support of the Surveillance Towed-Array Sensor (SURTASS)      

      program.                                                                

      Sec. 1023. Transfer of two specified obsolete tugboats of the Army.     



            Sec. 1024. Congressional review period with respect to transfer of

      ex-U.S.S. Hornet (CV 12) and ex-U.S.S. Midway (CV 41).                  

      Sec. 1025. Transfers of naval vessels to certain foreign countries.     



            Sec. 1026. Reports relating to export of vessels that may contain 

      polychlorinated biphenyls.                                              

            Sec. 1027. Conversion of defense capability preservation authority

      to Navy shipbuilding capability preservation authority.                 

                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  



            Sec. 1031. Use of National Guard for State drug interdiction and  

      counter-drug activities.                                                

            Sec. 1032. Authority to provide additional support for            

      counter-drug activities of Mexico.                                      

            Sec. 1033. Authority to provide additional support for            

      counter-drug activities of Peru and Colombia.                           

            Sec. 1034. Annual report on development and deployment of         

      narcotics detection technologies.                                       

                  SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       



      Sec. 1041. Repeal of miscellaneous reporting requirements.              



      Sec. 1042. Study of transfer of modular airborne fire fighting system.  



      Sec. 1043. Overseas infrastructure requirements.                        



            Sec. 1044. Additional matters for annual report on activities of  

      the General Accounting Office.                                          

      Sec. 1045. Eye safety at small arms firing ranges.                      



            Sec. 1046. Reports on Department of Defense procedures for        

      investigating military aviation accidents and for notifying and         

      assisting families of victims.                                          

                          SUBTITLE E--MATTERS RELATING TO TERRORISM               



            Sec. 1051. Oversight of counterterrorism and antiterrorism        

      activities; report.                                                     

            Sec. 1052. Provision of adequate troop protection equipment for   

      Armed Forces personnel engaged in peace operations; report on           

      antiterrorism activities and protection of personnel.                   

                      SUBTITLE F--MATTERS RELATING TO DEFENSE PROPERTY            



      Sec. 1061. Lease of nonexcess personal property of military departments.



      Sec. 1062. Lease of nonexcess property of Defense Agencies.             



            Sec. 1063. Donation of excess chapel property to churches damaged 

      or destroyed by arson or other acts of terrorism.                       

            Sec. 1064. Authority of the Secretary of Defense concerning       

      disposal of assets under cooperative agreements on air defense in       

      Central Europe.                                                         

            Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition  

      and ammunition components.                                              

      Sec. 1066. Transfer of B 17 aircraft to museum.                         



      Sec. 1067. Report on disposal of excess and surplus materials.          



                                  SUBTITLE G--OTHER MATTERS                       



            Sec. 1071. Authority for special agents of the Defense Criminal   

      Investigative Service to execute warrants and make arrests.             

            Sec. 1072. Study of investigative practices of military criminal  

      investigative organizations relating to sex crimes.                     

      Sec. 1073. Technical and clerical amendments.                           



      Sec. 1074. Sustainment and operation of the Global Positioning System.  



            Sec. 1075. Protection of safety-related information voluntarily   

      provided by air carriers.                                               

            Sec. 1076. National Guard Challenge Program to create             

      opportunities for civilian youth.                                       

            Sec. 1077. Disqualification from certain burial-related benefits  

      for persons convicted of capital crimes.                                

            Sec. 1078. Restrictions on the use of human subjects for testing  

      of chemical or biological agents.                                       

      Sec. 1079. Treatment of military flight operations.                     



            Sec. 1080. Naturalization of certain foreign nationals who serve  

      honorably in the Armed Forces during a period of conflict.              

            Sec. 1081. Applicability of certain pay authorities to members of 

      specified independent study organizations.                              

      Sec. 1082. Display of POW/MIA flag.                                     



            Sec. 1083. Program to commemorate 50th anniversary of the Korean  

      conflict.                                                               

            Sec. 1084. Commendation of members of the Armed Forces and        

      Government civilian personnel who served during the Cold War;           

      certificate of recognition.                                             

      Sec. 1085. Sense of Congress on granting of statutory Federal charters. 



      Sec. 1086. Sense of Congress regarding military voting rights.          





            Sec. 1087. Designation of Bob Hope as an honorary veteran of the  

      Armed Forces of the United States.                                      

      Sec. 1088. Five-year extension of aviation insurance program.           



                     TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL           



            Sec. 1101. Use of prohibited constraints to manage Department of  

      Defense personnel.                                                      

            Sec. 1102. Veterans' preference status for certain veterans who   

      served on active duty during the Persian Gulf War.                      

            Sec. 1103. Repeal of deadline for placement consideration of      

      involuntarily separated military reserve technicians.                   

            Sec. 1104. Rate of pay of Department of Defense overseas teachers 

      upon transfer to General Schedule position.                             

      Sec. 1105. Garnishment and involuntary allotment.                       



            Sec. 1106. Extension and revision of voluntary separation         

      incentive pay authority.                                                

            Sec. 1107. Use of approved fire-safe accommodations by Government 

      employees on official business.                                         

            Sec. 1108. Navy higher education pilot program regarding          

      administration of business relationships between Government and private 

      sector.                                                                 

            Sec. 1109. Authority for Marine Corps University to employ        

      civilian faculty members.                                               

                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              



              SUBTITLE A--UNITED STATES ARMED FORCES IN BOSNIA AND HERZEGOVINA    



      Sec. 1201. Findings.                                                    



      Sec. 1202. Sense of Congress.                                           



            Sec. 1203. Withdrawal of United States ground forces from Republic

      of Bosnia and Herzegovina.                                              

            Sec. 1204. Secretary of Defense reports on tasks carried out by   

      United States forces.                                                   

            Sec. 1205. Presidential report on situation in Republic of Bosnia 

      and Herzegovina.                                                        

      Sec. 1206. Definitions.                                                 



                  SUBTITLE B--EXPORT CONTROLS ON HIGH PERFORMANCE COMPUTERS       



      Sec. 1211. Export approvals for high performance computers.             



      Sec. 1212. Report on exports of high performance computers.             



            Sec. 1213. Post-shipment verification of export of high           

      performance computers.                                                  

            Sec. 1214. GAO study on certain computers; end user information   

      assistance.                                                             

      Sec. 1215. Congressional committees.                                    



                                  SUBTITLE C--OTHER MATTERS                       



      Sec. 1221. Defense burdensharing.                                       



            Sec. 1222. Temporary use of general purpose vehicles and nonlethal

      military equipment under acquisition and cross servicing agreements.    

            Sec. 1223. Sense of Congress and reports regarding financial costs

      of enlargement of the North Atlantic Treaty Organization.               

            Sec. 1224. Sense of Congress regarding enlargement of the North   

      Atlantic Treaty Organization.                                           

            Sec. 1225. Sense of the Congress relating to level of United      

      States military personnel in the East Asia and Pacific region.          

            Sec. 1226. Report on future military capabilities and strategy of 

      the People's Republic of China.                                         

            Sec. 1227. Sense of Congress on need for Russian openness on the  

      Yamantau Mountain project.                                              

            Sec. 1228. Assessment of the Cuban threat to United States        

      national security.                                                      

      Sec. 1229. Report on Helsinki Joint statement.                          



      Sec. 1230. Commendation of Mexico on free and fair elections.           



      Sec. 1231. Sense of Congress regarding Cambodia.                        



      Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.     



                        TITLE XIII--ARMS CONTROL AND RELATED MATTERS              



            Sec. 1301. Presidential report concerning detargeting of Russian  

      strategic missiles.                                                     

            Sec. 1302. Limitation on retirement or dismantlement of strategic 

      nuclear delivery systems.                                               

            Sec. 1303. Assistance for facilities subject to inspection under  

      the Chemical Weapons Convention.                                        

            Sec. 1304. Transfers of authorizations for high-priority          

      counterproliferation programs.                                          

            Sec. 1305. Advice to the President and Congress regarding the     

      safety, security, and reliability of United States nuclear weapons      

      stockpile.                                                              

            Sec. 1306. Reconstitution of commission to assess the ballistic   

      missile threat to the United States.                                    

            Sec. 1307. Sense of Congress regarding the relationship between   

      United States obligations under the Chemical Weapons Convention and     

      environmental laws.                                                     

            Sec. 1308. Extension of counterproliferation authorities for      

      support of United Nations Special Commission on Iraq.                   

            Sec. 1309. Annual report on moratorium on use by Armed Forces of  

      antipersonnel landmines.                                                

            TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET  

                                      UNION                                       

            Sec. 1401. Specification of Cooperative Threat Reduction programs 

      and funds.                                                              

      Sec. 1402. Funding allocations.                                         



      Sec. 1403. Prohibition on use of funds for specified purposes.          



            Sec. 1404. Limitation on use of funds for projects related to     

      START II Treaty until submission of certification.                      

            Sec. 1405. Limitation on use of funds for chemical weapons        

      destruction facility.                                                   

            Sec. 1406. Limitation on use of funds for destruction of chemical 

      weapons.                                                                

            Sec. 1407. Limitation on use of funds for storage facility for    

      Russian fissile material.                                               

      Sec. 1408. Limitation on use of funds for weapons storage security.     



            Sec. 1409. Report on issues regarding payment of taxes, duties,   

      and other assessments on assistance provided to Russia under Cooperative

      Threat Reduction programs.                                              

      Sec. 1410. Availability of funds.                                       



              TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION   



      Sec. 1501. Recognition and grant of Federal charter.                    



      Sec. 1502. Powers.                                                      



      Sec. 1503. Purposes.                                                    





      Sec. 1504. Service of process.                                          



      Sec. 1505. Membership.                                                  



      Sec. 1506. Board of directors.                                          



      Sec. 1507. Officers.                                                    



      Sec. 1508. Restrictions.                                                



      Sec. 1509. Liability.                                                   



      Sec. 1510. Maintenance and inspection of books and records.             



      Sec. 1511. Audit of financial transactions.                             



      Sec. 1512. Annual report.                                               



      Sec. 1513. Reservation of right to alter, amend, or repeal charter.     



      Sec. 1514. Tax-exempt status required as condition of charter.          



      Sec. 1515. Termination.                                                 



      Sec. 1516. Definition of State.                                         





                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            





      Sec. 2001. Short title.                                                 



                                       TITLE XXI--ARMY                            



      Sec. 2101. Authorized Army construction and land acquisition projects.  



      Sec. 2102. Family housing.                                              



      Sec. 2103. Improvements to military family housing units.               



      Sec. 2104. Authorization of appropriations, Army.                       



            Sec. 2105. Correction in authorized uses of funds, Fort Irwin,    

      California.                                                             

                                      TITLE XXII--NAVY                            



      Sec. 2201. Authorized Navy construction and land acquisition projects.  



      Sec. 2202. Family housing.                                              



      Sec. 2203. Improvements to military family housing units.               



      Sec. 2204. Authorization of appropriations, Navy.                       



            Sec. 2205. Authorization of military construction project at Naval

      Station, Pascagoula, Mississippi, for which funds have been             

      appropriated.                                                           

            Sec. 2206. Increase in authorization for military construction    

      projects at Naval Station Roosevelt Roads, Puerto Rico.                 

                                   TITLE XXIII--AIR FORCE                         



            Sec. 2301. Authorized Air Force construction and land acquisition 

      projects.                                                               

      Sec. 2302. Family housing.                                              



      Sec. 2303. Improvements to military family housing units.               



      Sec. 2304. Authorization of appropriations, Air Force.                  



            Sec. 2305. Authorization of military construction project at      

      McConnell Air Force Base, Kansas, for which funds have been             

      appropriated.                                                           

                                TITLE XXIV--DEFENSE AGENCIES                      



            Sec. 2401. Authorized Defense Agencies construction and land      

      acquisition projects.                                                   

      Sec. 2402. Military housing planning and design.                        



      Sec. 2403. Improvements to military family housing units.               



      Sec. 2404. Energy conservation projects.                                



      Sec. 2405. Authorization of appropriations, Defense Agencies.           



            Sec. 2406. Clarification of authority relating to fiscal year 1997

      project at Naval Station, Pearl Harbor, Hawaii.                         

            Sec. 2407. Correction in authorized uses of funds, McClellan Air  

      Force Base, California.                                                 

            Sec. 2408. Modification of authority to carry out certain fiscal  

      year 1995 projects.                                                     

             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    

                                     PROGRAM                                      

      Sec. 2501. Authorized NATO construction and land acquisition projects.  



      Sec. 2502. Authorization of appropriations, NATO.                       



                       TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES            



            Sec. 2601. Authorized Guard and Reserve construction and land     

      acquisition projects.                                                   

            Sec. 2602. Authorization of military construction projects for    

      which funds have been appropriated.                                     

      Sec. 2603. Army Reserve construction project, Camp Williams, Utah.      



                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        



            Sec. 2701. Expiration of authorizations and amounts required to be

      specified by law.                                                       

            Sec. 2702. Extension of authorizations of certain fiscal year 1995

      projects.                                                               

            Sec. 2703. Extension of authorizations of certain fiscal year 1994

      projects.                                                               

            Sec. 2704. Extension of authorizations of certain fiscal year 1993

      projects.                                                               

            Sec. 2705. Extension of authorizations of certain fiscal year 1992

      projects.                                                               

            Sec. 2706. Extension of availability of funds for construction of 

      relocatable over-the-horizon radar, Naval Station Roosevelt Roads,      

      Puerto Rico.                                                            

      Sec. 2707. Effective date.                                              



                              TITLE XXVIII--GENERAL PROVISIONS                    



           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  

                                     CHANGES                                      

            Sec. 2801. Use of mobility enhancement funds for unspecified minor

      construction.                                                           

            Sec. 2802. Limitation on use of operation and maintenance funds   

      for facility repair projects.                                           

            Sec. 2803. Leasing of military family housing, United States      

      Southern Command, Miami, Florida.                                       

            Sec. 2804. Use of financial incentives provided as part of energy 

      savings and water conservation activities.                              

            Sec. 2805. Congressional notification requirements regarding use  

      of Department of Defense housing funds for investments in               

      nongovernmental entities.                                               

                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        



      Sec. 2811. Increase in ceiling for minor land acquisition projects.     



      Sec. 2812. Permanent authority regarding conveyance of utility systems. 



            Sec. 2813. Administrative expenses for certain real property      

      transactions.                                                           

            Sec. 2814. Screening of real property to be conveyed by Department

      of Defense.                                                             

            Sec. 2815. Disposition of proceeds from sale of Air Force Plant   

      78, Brigham City, Utah.                                                 

            Sec. 2816. Fire protection and hazardous materials protection at  

      Fort Meade, Maryland.                                                   

                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            



            Sec. 2821. Consideration of military installations as sites for   

      new Federal facilities.                                                 



            Sec. 2822. Adjustment and diversification assistance to enhance   

      performance of military family support services by private sector       

      sources.                                                                

            Sec. 2823. Security, fire protection, and other services at       

      property formerly associated with Red River Army Depot, Texas.          

      Sec. 2824. Report on closure and realignment of military installations. 



            Sec. 2825. Sense of Senate regarding utilization of savings       

      derived from base closure process.                                      

            Sec. 2826. Prohibition against certain conveyances of property at 

      Naval Station, Long Beach, California.                                  

                                SUBTITLE D--LAND CONVEYANCES                      



                                  PART I--ARMY CONVEYANCES                        



      Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.   



            Sec. 2832. Land conveyance, James T. Coker Army Reserve Center,   

      Durant, Oklahoma.                                                       

            Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,  

      Illinois.                                                               

      Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.                  



      Sec. 2835. Land conveyances, Fort Dix, New Jersey.                      



      Sec. 2836. Land conveyances, Fort Bragg, North Carolina.                



            Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot,      

      Mineral County, Nevada.                                                 

            Sec. 2838. Expansion of land conveyance authority, Indiana Army   

      Ammunition Plant, Charlestown, Indiana.                                 

      Sec. 2839. Modification of land conveyance, Lompoc, California.         



            Sec. 2840. Modification of land conveyance, Rocky Mountain        

      Arsenal, Colorado.                                                      

            Sec. 2841. Correction of land conveyance authority, Army Reserve  

      Center, Anderson, South Carolina.                                       

                                 PART II--NAVY CONVEYANCES                        



            Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station,     

      Brunswick, Maine.                                                       

            Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant

      No. 464, Oyster Bay, New York.                                          

            Sec. 2853. Correction of lease authority, Naval Air Station,      

      Meridian, Mississippi.                                                  

                              PART III--AIR FORCE CONVEYANCES                     



      Sec. 2861. Land transfer, Eglin Air Force Base, Florida.                



      Sec. 2862. Land conveyance, March Air Force Base, California.           



      Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.     



      Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.          



            Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and 

      Havre Training Site, Montana.                                           

            Sec. 2866. Land conveyance, Charleston Family Housing Complex,    

      Bangor, Maine.                                                          

            Sec. 2867. Study of land exchange options, Shaw Air Force Base,   

      South Carolina.                                                         

                                  SUBTITLE E--OTHER MATTERS                       



      Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.   



      Sec. 2872. Long-term lease of property, Naples, Italy.                  



            Sec. 2873. Designation of military family housing at Lackland Air 

      Force Base, Texas, in honor of Frank Tejeda, a former Member of the     

      House of Representatives.                                               

            Sec. 2874. Fiber-optics based telecommunications linkage of       

      military installations.                                                 

                              TITLE XXIX--SIKES ACT IMPROVEMENT                   



      Sec. 2901. Short title.                                                 



      Sec. 2902. Definition of Sikes Act for purposes of amendments.          



      Sec. 2903. Codification of short title of Act.                          



      Sec. 2904. Preparation of integrated natural resources management plans.



            Sec. 2905. Review for preparation of integrated natural resources 

      management plans.                                                       

            Sec. 2906. Transfer of wildlife conservation fees from closed     

      military installations.                                                 

      Sec. 2907. Annual reviews and reports.                                  



      Sec. 2908. Cooperative agreements.                                      



      Sec. 2909. Federal enforcement.                                         



      Sec. 2910. Natural resources management services.                       



      Sec. 2911. Definitions.                                                 



      Sec. 2912. Repeal of superseded provision.                              



      Sec. 2913. Technical amendments.                                        



      Sec. 2914. Authorizations of appropriations.                            





           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  

                              OTHER AUTHORIZATIONS                                



                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      



                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         



      Sec. 3101. Weapons activities.                                          



      Sec. 3102. Environmental restoration and waste management.              



      Sec. 3103. Other defense activities.                                    



      Sec. 3104. Defense nuclear waste disposal.                              



                          SUBTITLE B--RECURRING GENERAL PROVISIONS                



      Sec. 3121. Reprogramming.                                               



      Sec. 3122. Limits on general plant projects.                            



      Sec. 3123. Limits on construction projects.                             



      Sec. 3124. Fund transfer authority.                                     



      Sec. 3125. Authority for conceptual and construction design.            



            Sec. 3126. Authority for emergency planning, design, and          

      construction activities.                                                

            Sec. 3127. Funds available for all national security programs of  
      the Department of Energy.                                               

      Sec. 3128. Availability of funds.                                       



      Sec. 3129. Transfers of defense environmental management funds.         



              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   



            Sec. 3131. Memorandum of understanding for use of national        

      laboratories for ballistic missile defense programs.                    

      Sec. 3132. Defense environmental management privatization projects.     



      Sec. 3133. International cooperative stockpile stewardship.             





      Sec. 3134. Modernization of enduring nuclear weapons complex.           



      Sec. 3135. Tritium production.                                          



            Sec. 3136. Processing, treatment, and disposition of spent nuclear

      fuel rods and other legacy nuclear materials at the Savannah River Site.

            Sec. 3137. Limitations on use of funds for laboratory directed    

      research and development purposes.                                      

            Sec. 3138. Pilot program relating to use of proceeds of disposal  

      or utilization of certain Department of Energy assets.                  

            Sec. 3139. Modification and extension of authority relating to    

      appointment of certain scientific, engineering, and technical personnel.

            Sec. 3140. Limitation on use of funds for subcritical nuclear     

      weapons tests.                                                          

            Sec. 3141. Limitation on use of certain funds until future use    

      plans are submitted.                                                    

                                  SUBTITLE D--OTHER MATTERS                       



            Sec. 3151. Plan for stewardship, management, and certification of 

      warheads in the nuclear weapons stockpile.                              

      Sec. 3152. Repeal of obsolete reporting requirements.                   



            Sec. 3153. Study and funding relating to implementation of        

      workforce restructuring plans.                                          

            Sec. 3154. Report and plan for external oversight of national     

      laboratories.                                                           

      Sec. 3155. University-based research collaboration program.             



      Sec. 3156. Stockpile stewardship program.                               



            Sec. 3157. Reports on advanced supercomputer sales to certain     

      foreign nations.                                                        

            Sec. 3158. Transfers of real property at certain Department of    

      Energy facilities.                                                      

            Sec. 3159. Requirement to delegate certain authorities to site    

      manager of Hanford Reservation.                                         

      Sec. 3160. Submittal of biennial waste management reports.              



      Sec. 3161. Department of Energy Security Management Board.              



            Sec. 3162. Submittal of annual report on status of security       

      functions at nuclear weapons facilities.                                

            Sec. 3163. Modification of authority on Commission on Maintaining 

      United States Nuclear Weapons Expertise.                                

      Sec. 3164. Land transfer, Bandelier National Monument.                  



            Sec. 3165. Final settlement of Department of Energy community     

      assistance obligations with respect to Los Alamos National Laboratory,  

      New Mexico.                                                             

            Sec. 3166. Sense of Congress regarding the Y 12 Plant in Oak      

      Ridge, Tennessee.                                                       

            Sec. 3167. Support for public education in the vicinity of Los    

      Alamos National Laboratory, New Mexico.                                 

      Sec. 3168. Improvements to Greenville Road, Livermore, California.      



      Sec. 3169. Report on alternative system for availability of funds.      



            Sec. 3170. Report on remediation under the Formerly Utilized Sites

      Remedial Action Program.                                                

                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          



      Sec. 3201. Authorization.                                               



      Sec. 3202. Report on external regulation of defense nuclear facilities. 



                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                



      Sec. 3301. Definitions.                                                 



      Sec. 3302. Authorized uses of stockpile funds.                          



            Sec. 3303. Disposal of beryllium copper master alloy in National  

      Defense Stockpile.                                                      

      Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.   



      Sec. 3305. Disposal of cobalt in National Defense Stockpile.            



            Sec. 3306. Required procedures for disposal of strategic and      

      critical materials.                                                     

            Sec. 3307. Return of surplus platinum from the Department of the  

      Treasury.                                                               

                            TITLE XXXIV--NAVAL PETROLEUM RESERVES                 



      Sec. 3401. Authorization of appropriations.                             



            Sec. 3402. Price requirement on sale of certain petroleum during  

      fiscal year 1998.                                                       

            Sec. 3403. Repeal of requirement to assign Navy officers to Office

      of Naval Petroleum and Oil Shale Reserves.                              

            Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves     

      Numbered 1 and 3.                                                       

                             TITLE XXXV--PANAMA CANAL COMMISSION                  



                SUBTITLE A--AUTHORIZATION OF EXPENDITURES FROM REVOLVING FUND     



      Sec. 3501. Short title.                                                 



      Sec. 3502. Authorization of expenditures.                               



      Sec. 3503. Purchase of vehicles.                                        



      Sec. 3504. Expenditures only in accordance with treaties.               



                     SUBTITLE B--FACILITATION OF PANAMA CANAL TRANSITION          



      Sec. 3511. Short title; references.                                     



      Sec. 3512. Definitions relating to canal transition.                    



          PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND EMPLOYEES



            Sec. 3521. Authority for the Administrator of the Commission to   

      accept appointment as the Administrator of the Panama Canal Authority.  

      Sec. 3522. Post-Canal transfer personnel authorities.                   



            Sec. 3523. Enhanced authority of Commission to establish          

      compensation of Commission officers and employees.                      

            Sec. 3524. Travel, transportation, and subsistence expenses for   

      Commission personnel no longer subject to Federal travel regulation.    

      Sec. 3525. Enhanced recruitment and retention authorities.              



      Sec. 3526. Transition separation incentive payments.                    



      Sec. 3527. Labor-management relations.                                  



            Sec. 3528. Availability of Panama Canal Revolving Fund for        

      severance pay for certain employees separated by Panama Canal Authority 

      after Canal Transfer Date.                                              

          PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF 

                                      CANAL                                       

            Sec. 3541. Establishment of procurement system and Board of       

      Contract Appeals.                                                       

      Sec. 3542. Transactions with the Panama Canal Authority.                



      Sec. 3543. Time limitations on filing of claims for damages.            



      Sec. 3544. Tolls for small vessels.                                     



      Sec. 3545. Date of actuarial evaluation of FECA liability.              



      Sec. 3546. Appointment of notaries public.                              



      Sec. 3547. Commercial services.                                         



            Sec. 3548. Transfer from President to Commission of certain       

      regulatory functions relating to employment classification appeals.     

      Sec. 3549. Enhanced printing authority.                                 



      Sec. 3550. Technical and conforming amendments.                         



                            TITLE XXXVI--MARITIME ADMINISTRATION                  



      Sec. 3601. Authorization of appropriations for fiscal year 1998.        



            Sec. 3602. Repeal of obsolete annual report requirement concerning

      relative cost of shipbuilding in the various coastal districts of the   

      United States.                                                          

      Sec. 3603. Provisions relating to maritime security fleet program.      



      Sec. 3604. Authority to utilize replacement vessels and capacity.       



      Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.   



            Sec. 3606. Determination of gross tonnage for purposes of tank    

      vessel double hull requirements.                                        



          SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.                       



     For purposes of this Act, the term ``congressional defense           

  committees'' means--                                                    

       (1) the Committee on Armed Services and the Committee on            

   Appropriations of the Senate; and                                       

       (2) the Committee on National Security and the Committee on         

   Appropriations of the House of Representatives.                         



           DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS                        



           TITLE I--PROCUREMENT                                                    



                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 101. Army.                                                         



      Sec. 102. Navy and Marine Corps.                                        



      Sec. 103. Air Force.                                                    



      Sec. 104. Defense-wide activities.                                      



      Sec. 105. Reserve components.                                           



      Sec. 106. Defense Inspector General.                                    



      Sec. 107. Chemical Demilitarization Program.                            



      Sec. 108. Defense health programs.                                      



      Sec. 109. Defense Export Loan Guarantee Program.                        



                                  SUBTITLE B--ARMY PROGRAMS                       



      Sec. 111. Army helicopter modernization plan.                           



      Sec. 112. Multiyear procurement authority for specified Army programs.  



      Sec. 113. M113 vehicle modifications.                                   



                                  SUBTITLE C--NAVY PROGRAMS                       



      Sec. 121. New Attack Submarine program.                                 



      Sec. 122. CVN 77 nuclear aircraft carrier program.                      



      Sec. 123. Exclusion from cost limitation for Seawolf submarine program. 



                               SUBTITLE D--AIR FORCE PROGRAMS                     



      Sec. 131. Authorization for B 2 bomber program.                         



      Sec. 132. ALR radar warning receivers.                                  



            Sec. 133. Analysis of requirements for replacement of engines on  

      military aircraft derived from Boeing 707 aircraft.                     

                                  SUBTITLE E--OTHER MATTERS                       



            Sec. 141. Pilot program on sales of manufactured articles and     

      services of certain Army industrial facilities without regard to        

      availability from domestic sources.                                     

      Sec. 142. NATO Joint Surveillance/Target Attack Radar System.           





           Subtitle A--Authorization of Appropriations                             



          SEC. 101. ARMY.                                                         



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for procurement for the Army as follows:                                

     (1) For aircraft, $1,316,233,000.                                     



     (2) For missiles, $742,639,000.                                       



     (3) For weapons and tracked combat vehicles, $1,297,641,000.          



     (4) For ammunition, $1,011,193,000.                                   



     (5) For other procurement, $2,566,208,000.                            



          SEC. 102. NAVY AND MARINE CORPS.                                        



     (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 

  year 1998 for procurement for the Navy as follows:                      

     (1) For aircraft, $6,437,330,000.                                     



     (2) For weapons, including missiles and torpedoes, $1,089,443,000.    



     (3) For shipbuilding and conversion, $8,195,269,000.                  



     (5) For other procurement, $2,970,867,000.                            



     (b) Marine Corps.--Funds are hereby authorized to be appropriated for

  fiscal year 1998 for procurement for the Marine Corps in the amount of  

  $460,081,000.                                                           

     (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized to

  be appropriated for procurement of ammunition for the Navy and the      

  Marine Corps in the amount of $364,744,000.                             

          SEC. 103. AIR FORCE.                                                    



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for procurement for the Air Force as follows:                           

     (1) For aircraft, $6,425,749,000.                                     



     (2) For missiles, $2,376,301,000.                                     



     (3) For ammunition, $398,534,000.                                     



     (4) For other procurement, $6,543,580,000.                            



          SEC. 104. DEFENSE-WIDE ACTIVITIES.                                      



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for Defense-wide procurement in the amount of $2,057,150,000.           

          SEC. 105. RESERVE COMPONENTS.                                           



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for procurement of aircraft, vehicles, communications equipment, and    

  other equipment for the reserve components of the Armed Forces as       

  follows:                                                                

     (1) For the Army National Guard, $70,000,000.                         



     (2) For the Air National Guard, $303,000,000.                         



     (3) For the Army Reserve, $75,000,000.                                



     (4) For the Naval Reserve, $80,000,000.                               



     (5) For the Air Force Reserve, $50,000,000.                           





     (6) For the Marine Corps Reserve, $65,000,000.                        



          SEC. 106. DEFENSE INSPECTOR GENERAL.                                    



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for procurement for the Inspector General of the Department of Defense  

  in the amount of $1,800,000.                                            



          SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.                            



     There is hereby authorized to be appropriated for fiscal year 1998   

  the amount of $600,700,000 for--                                        

       (1) the destruction of lethal chemical agents and munitions in      

   accordance with section 1412 of the Department of Defense Authorization 

   Act, 1986 (50 U.S.C. 1521); and                                         

       (2) the destruction of chemical warfare materiel of the United      

   States that is not covered by section 1412 of such Act.                 

          SEC. 108. DEFENSE HEALTH PROGRAMS.                                      



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for the Department of Defense for procurement for carrying out health   

  care programs, projects, and activities of the Department of Defense in 

  the total amount of $274,068,000.                                       

          SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.                        



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for the Department of Defense for carrying out the Defense Export Loan  

  Guarantee Program under section 2540 of title 10, United States Code, in

  the total amount of $1,231,000.                                         

           Subtitle B--Army Programs                                               





          SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.                           



     (a) Limitation.--Not more than 80 percent of the total of the amounts

  authorized to be appropriated pursuant to section 101(1), 105(1), and   

  105(3) for modifications or upgrades of helicopters may be obligated    

  before the date that is 30 days after the date on which the Secretary of

  the Army submits to the congressional defense committees a comprehensive

  plan for the modernization of the Army's helicopter fleet.              

     (b) Content of Plan.--The plan required by subsection (a) shall      

  include the following:                                                  

       (1) A detailed assessment of the Army's present and future          

   helicopter requirements and present and future helicopter inventory,    

   including number of aircraft, age of aircraft, availability of spare    

   parts, flight hour costs, roles and functions assigned to the fleet as a

   whole and to its individual types of aircraft, and the mix of active    

   component aircraft and reserve component aircraft in the fleet.         

       (2) Estimates and analysis of requirements and funding proposed for 

   procurement of new aircraft.                                            

       (3) An analysis of the requirements for and funding proposed for    

   extended service plans or service life extension plans for fleet        

   aircraft.                                                               

       (4) A plan for retiring aircraft no longer required or capable of   

   performing assigned functions, including a discussion of opportunities  

   to eliminate older aircraft models and to focus future funding on       

   current or future generation aircraft.                                  

     (5) The implications of the plan for the defense industrial base.     



     (c) Relationship to Future-Years Defense Program.--The Secretary of  

  the Army shall design the plan under subsection (a) so that the plan    

  could be implemented within the funding levels expected to be available 

  for Army aircraft programs in the next future-years defense program to  

  be submitted to Congress pursuant to section 221(a) of title 10, United 

  States Code. The Secretary shall include in the plan a certification    

  that the program of the Army prepared for inclusion in the future-years 

  defense program submitted to Congress in 1998 pursuant to section 221(a)

  of title 10, United States Code, included full funding for              

  implementation of the plan.                                             



          SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.  



     (a) AH 64 D Longbow Apache Fire Control Radar.--Beginning with the   

  fiscal year 1998 program year, the Secretary of the Army may, in        

  accordance with section 2306b of title 10, United States Code, enter    

  into a multiyear procurement contract for procurement of the AH 64D     

  Longbow Apache fire control radar.                                      

     (b) Medium Tactical Vehicles.--Beginning with the fiscal year 1998   

  program year, the Secretary of the Army may, in accordance with section 

  2306b of title 10, United States Code, enter into a multiyear           

  procurement contract for procurement of vehicles of the Family of Medium

  Tactical Vehicles. The contract may be for a term of four years and may 

  include an option to extend the contract for one additional year.       

          SEC. 113. M113 VEHICLE MODIFICATIONS.                                   



     Of the amount made available for the Army pursuant to section 101(3),

  $35,244,000 shall be available only for the procurement and installation

  of A3 upgrade kits for the M113 vehicle.                                

           Subtitle C--Navy Programs                                               





          SEC. 121. NEW ATTACK SUBMARINE PROGRAM.                                 



     (a) Amounts Authorized From SCN Account.--Of the amounts authorized  

  to be appropriated by section 102(a)(3) for fiscal year 1998,           

  $2,599,800,000 is available for the New Attack Submarine Program.       

     (b) Contract Authority.--(1) The Secretary of the Navy may enter into

  a contract for the procurement of four submarines under the New Attack  

  Submarine program.                                                      

    (2) Any contract entered into under paragraph (1)--                   



       (A) shall, notwithstanding section 2304(k) of title 10, United      

   States Code, be awarded to one of the two eligible shipbuilders as the  

   prime contractor on the condition that the prime contractor enter into  

   one or more subcontracts (under such prime contract) with the other of  

   the two eligible shipbuilders as contemplated in the New Attack         

   Submarine Team Agreement; and                                           

     (B) shall provide for--                                               



     (i) construction of the first submarine in fiscal year 1998; and      





       (ii) advance construction and advance procurement of materiel for   

   the second, third, and fourth submarines in fiscal year 1998.           

     (3) The following shipbuilders are eligible for a contract under this

  subsection:                                                             

     (A) The Electric Boat Corporation.                                    



     (B) The Newport News Shipbuilding and Drydock Company.                



     (4) In paragraph (2)(A), the term ``New Attack Submarine Team        

  Agreement'' means the agreement known as the Team Agreement between     

  Electric Boat Corporation and Newport News Shipbuilding and Drydock     

  Company, dated February 25, 1997, that was submitted to Congress by the 

  Secretary of the Navy on March 31, 1997.                                

     (c) Limitation of Liability.--If a contract entered into under this  

  section is terminated, the United States shall not be liable for        

  termination costs in excess of the total amount appropriated for the New

  Attack Submarine program.                                               

     (d) Repeals of Superseded Provisions of Previous Defense             

  Authorization Laws.--(1) Section 131 of the National Defense            

  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   

  206) is amended--                                                       

     (A) in subsection (a)(1)(B)--                                         



       (i) in clause (i), by striking out ``, which shall be built by      

   Electric Boat Division''; and                                           

       (ii) in clause (ii), by striking out ``, which shall be built by    

   Newport News Shipbuilding''; and                                        

     (B) in subsection (b), by striking out paragraph (1).                 



     (2) Section 121 of the National Defense Authorization Act for Fiscal 

  Year 1997 (Public Law 104 201; 110 Stat. 2441) is amended--             

     (A) in subsection (a)--                                               



       (i) in paragraph (1)(B), by striking out ``to be built by Electric  

   Boat Division''; and                                                    

       (ii) in paragraph (1)(C), by striking out ``to be built by Newport  

   News Shipbuilding'';                                                    

     (B) in subsection (d), by striking out paragraph (2);                 



     (C) in subsection (e), by striking out paragraph (1); and             



       (D) in subsection (g), by striking out ``the committees specified in

   subsection (e)(1)'' in paragraphs (3) and (4) and inserting in lieu     

   thereof ``the Committee on Armed Services of the Senate and the         

   Committee on National Security of the House of Representatives''.       

     (e) Inapplicability of Superseded Aspects of Attack Submarine        

  Development Plan.--The Secretary of Defense and the Secretary of the    

  Navy are not required to carry out the portions of the program plan     

  submitted under subsection (c) of section 131 of the National Defense   

  Authorization Act for Fiscal Year 1996 that are included in the plan    

  pursuant to subparagraphs (A), (B), and (E) of paragraph (2) of such    

  subsection.                                                             



          SEC. 122. CVN 77 NUCLEAR AIRCRAFT CARRIER PROGRAM.                      



     (a) Authorization of Ship.--The Secretary of the Navy is authorized  

  to procure the aircraft carrier to be designated CVN 77, subject to the 

  availability of appropriations for that purpose.                        

     (b) Amount Authorized From SCN Account.--Of the amount authorized to 

  be appropriated by section 102(a)(3) for fiscal year 1998, $50,000,000  

  is available for the advance procurement and advance construction of    

  components (including nuclear components) for the CVN 77 aircraft       

  carrier program. The Secretary of the Navy may enter into a contract or 

  contracts with the shipbuilder and other entities for the advance       

  procurement and advance construction of those components.               

     (c) Other Funds.--Of the funds authorized to be appropriated under   

  this Act for programs, projects, and activities of the military         

  departments and Defense Agencies, other than the CVN 77 aircraft carrier

  program, up to $295,000,000 may be made available, as the Secretary of  

  Defense may direct, for the CVN 77 aircraft carrier program. Authority  

  to make transfers under this subsection is in addition to the transfer  

  authority provided in section 1001.                                     



     (d) Management of Funds.--The Secretary of the Navy shall obligate   

  and expend the funds available for advance procurement and advance      

  construction of components for the CVN 77 aircraft carrier program for  

  fiscal year 1998 in a manner that is designed to result in such cost    

  savings as may be required in order to meet the cost limitation         

  specified in subsection (f).                                            

     (e) Adjustments to Future-Years Defense Program.--The Secretary of   

  Defense shall make such plans for the CVN 77 aircraft carrier program as

  are necessary to attain for the program the cost savings that are       

  contemplated for the procurement of the CVN 77 aircraft carrier in the  

  March 1997 procurement plan.                                            

     (f) Limitation on Total Cost of Procurement.--(1) The Secretary of   

  the Navy shall structure the program for the procurement of the CVN 77  

  aircraft carrier, and shall manage that program, so that the total cost 

  of the procurement of the CVN 77 aircraft carrier does not exceed       

  $4,600,000,000 (such amount being the estimated cost for the procurement

  of the CVN 77 aircraft carrier in the March 1997 procurement plan).     

     (2) The Secretary of the Navy may adjust the amount set forth in     

  paragraph (1) for the CVN 77 aircraft carrier program by the following: 

       (A) The amounts of outfitting costs and post-delivery costs incurred

   for the program.                                                        

       (B) The amounts of increases or decreases in costs attributable to  

   economic inflation after September 30, 1997.                            

       (C) The amounts of increases or decreases in costs attributable to  

   compliance with changes in Federal, State, or local laws enacted after  

   September 30, 1997.                                                     

       (D) The amounts of increases or decreases in costs of the program   

   that are attributable to new technology built into the CVN 77 aircraft  

   carrier, as compared to the technology built into the baseline design of

   the CVN 76 aircraft carrier.                                            

       (E) The amounts of increases or decreases in costs resulting from   

   changes the Secretary proposes in the funding plan (as contemplated in  

   the March 1997 procurement plan) on which the projected savings are     

   based.                                                                  

     (3) The Secretary of the Navy shall annually submit to Congress, at  

  the same time as the budget is submitted under section 1105(a) of title 

  31, United States Code, written notice of any change in the amount set  

  forth in paragraph (1) during the preceding fiscal year that the        

  Secretary has determined to be associated with a cost referred to in    

  paragraph (2).                                                          

     (g) March 1997 Procurement Plan Defined.--In this section, the term  

  ``March 1997 procurement plan'' means the procurement plan for the CVN  

  77 aircraft carrier that was submitted to the Navy and Congress by the  

  shipbuilder in March 1997.                                              



          SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM. 



     (a) Authority To Exclude Amounts Appropriated for Canceled           

  Vessels.--(1) The Secretary of the Navy may exclude from the application

  of the cost limitation for the Seawolf submarine program such amounts,  

  not in excess of $272,400,000, as were appropriated for fiscal years    

  1990, 1991, and 1992 for procurement of Seawolf-class submarines that   

  have been canceled.                                                     

     (2) For the purposes of this subsection, the term ``cost limitation  

  for the Seawolf submarine program'' means the limitation in section     

  133(a) of the National Defense Authorization Act for Fiscal Year 1996   

  (Public Law 104 106; 110 Stat. 211).                                    

     (b) Determination and Report by Inspector General.--(1) Not later    

  than March 30, 1998, the Inspector General of the Department of Defense 

  shall submit to the Committee on Armed Services of the Senate and the   

  Committee on National Security of the House of Representatives a report 

  containing the Inspector General's determination as to whether any      

  further exclusion from, adjustment to exclusion from, or increase in the

  dollar amount of the cost limitation referred to in subsection (a) will 

  be required.                                                            



    (2) The Inspector General shall include in the report the following:  



       (A) A thorough and comprehensive accounting for the amount of       

   $745,400,000 identified by the Secretary of the Navy as having been     

   obligated or expended for the detailed design for Seawolf-class         

   submarines that have been canceled and for the procurement of nuclear   

   components and construction spare parts for those canceled submarines,  

   including a statement of the current disposition of items specifically  

   purchased using those funds.                                            

       (B) Cost growth, if any, in the cost of construction of the SSN 21, 

   SSN 22, and SSN 23 Seawolf-class submarines that has not been reported  

   to Congress before the date of the report of the Inspector General.     

       (C) The current cost estimate of the Secretary of the Navy for      

   completion of the SSN 21, SSN 22, and SSN 23 Seawolf-class submarines.  

     (3) The Inspector General shall include in the report such supporting

  information and analyses as the Inspector General considers appropriate 

  for aiding in understanding the determination and findings of the       

  Inspector General.                                                      

           Subtitle D--Air Force Programs                                          





          SEC. 131. AUTHORIZATION FOR B 2 BOMBER PROGRAM.                         



     (a) Funding Availability.--Of the funds made available for           

  procurement of aircraft for the Air Force for fiscal year 1998, the     

  amount of $331,000,000 is available for long-lead activities related to 

  the procurement of additional B 2 bomber aircraft. However, if the      

  President determines that no additional B 2 bombers should be procured  

  during fiscal year 1998 and certifies that decision to Congress, the    

  funding authorized in the preceding sentence shall be made available to 

  modify and repair the existing fleet of B 2 bomber aircraft.            

     (b) Secretary of Defense To Preserve Options of President.--The      

  Secretary of Defense shall ensure that all appropriate actions are taken

  to preserve the options of the President until the panel to review      

  long-range airpower established by section 8131 of the Department of    

  Defense Appropriations Act, 1998 (Public Law 105 56; 111 Stat. 1249),   

  submits its report.                                                     



          SEC. 132. ALR RADAR WARNING RECEIVERS.                                  



     (a) Cost and Operation Effectiveness Analysis.--The Secretary of the 

  Air Force shall conduct a cost and operation effectiveness analysis of  

  upgrading the ALR69 radar warning receiver as compared with the further 

  acquisition of the ALR56M radar warning receiver.                       

     (b) Submission to Congress.--The Secretary shall submit the cost and 

  operation effectiveness analysis to the congressional defense committees

  not later than April 2, 1998.                                           



                    SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES 

          ON MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.                  

     (a) Analysis Required.--The Secretary of Defense shall submit to the 

  Committee on Armed Services of the Senate and the Committee on National 

  Security of the House of Representatives an analysis, to be carried out 

  by the Under Secretary of Defense for Acquisition and Technology, of the

  requirements of the Department of Defense for replacing engines on the  

  aircraft of the Department of Defense that are derived from the Boeing  

  707 aircraft and the costs of meeting those requirements.               

    (b)  Content.--The analysis shall include the following:              



       (1) The number of aircraft described in subsection (a) that are in  

   the inventory of the Department of Defense as of October 1, 1997, and   

   the number of such aircraft that are projected to be in the inventory of

   the Department as of October 1, 2002, as of October 1, 2007, and as of  

   October 1, 2012.                                                        

       (2) For each type of such aircraft, the estimated cost of operating 

   the aircraft for each fiscal year beginning with fiscal year 1998 and   

   ending with fiscal year 2014, taking into account historical patterns of

   usage and projected support costs.                                      



       (3) For each type of such aircraft, the estimated costs and the     

   benefits of replacing the engines on the aircraft, analyzed on the basis

   of the experience under the limited program for replacing the engines on

   RC 135 aircraft that was undertaken during fiscal years 1995, 1996, and 

   1997.                                                                   

       (4) Various plans for replacement of engines that the Under         

   Secretary considers best on the basis of costs and benefits.            

     (c) Submission Deadline.--The analysis under subsection (a) shall be 

  submitted not later than March 1, 1998.                                 

           Subtitle E--Other Matters                                               





                    SEC. 141. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND 

          SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO        

          AVAILABILITY FROM DOMESTIC SOURCES.                                     

     (a) Pilot Program Required.--During fiscal years 1998 and 1999, the  

  Secretary of the Army shall carry out a pilot program to test the       

  efficacy and appropriateness of selling manufactured articles and       

  services of Army industrial facilities under section 4543 of title 10,  

  United States Code, without regard to the availability of the articles  

  and services from United States commercial sources. In carrying out the 

  pilot program, the Secretary may use articles manufactured at, and      

  services provided by, not more than three Army industrial facilities.   

     (b) Temporary Waiver of Requirement for Determination of             

  Unavailability From Domestic Source.--Under the pilot program, the      

  Secretary of the Army is not required under section 4543(a)(5) of title 

  10, United States Code, to determine whether an article or service is   

  available from a commercial source located in the United States in the  

  case of any of the following sales for which a solicitation of offers is

  issued during fiscal year 1998 or 1999:                                 

       (1) A sale of articles to be incorporated into a weapon system being

   procured by the Department of Defense.                                  

       (2) A sale of services to be used in the manufacture of a weapon    

   system being procured by the Department of Defense.                     

     (c) Review by Inspector General.--The Inspector General of the       

  Department of Defense shall review the experience under the pilot       

  program under this section and, not later than July 1, 1999, submit to  

  Congress a report on the results of the review. The report shall contain

  the following:                                                          

       (1) The Inspector General's views regarding the extent to which the 

   waiver under subsection (b) enhances the opportunity for United States  

   manufacturers, assemblers, developers, and other concerns to enter into 

   or participate in contracts and teaming arrangements with Army          

   industrial facilities under weapon system programs of the Department of 

   Defense.                                                                

       (2) The Inspector General's views regarding the extent to which the 

   waiver under subsection (b) enhances the opportunity for Army industrial

   facilities referred to in section 4543(a) of title 10, United States    

   Code, to enter into or participate in contracts and teaming arrangements

   with United States manufacturers, assemblers, developers, and other     

   concerns under weapon system programs of the Department of Defense.     

       (3) The Inspector General's views regarding the effect of the waiver

   under subsection (b) on the ability of small businesses to compete for  

   the sale of manufactured articles or services in the United States in   

   competitions to enter into or participate in contracts and teaming      

   arrangements under weapon system programs of the Department of Defense. 

       (4) Specific examples under the pilot program that support the      

   Inspector General's views.                                              

       (5) Any other information that the Inspector General considers      

   pertinent regarding the effects of the waiver of section 4543(a)(5) of  

   title 10, United States Code, under the pilot program on opportunities  

   for United States manufacturers, assemblers, developers, or other       

   concerns, and for Army industrial facilities, to enter into or          

   participate in contracts and teaming arrangements under weapon system   

   programs of the Department of Defense.                                  

       (6) Any recommendations that the Inspector General considers        

   appropriate regarding continuation or modification of the policy set    

   forth in section 4543(a)(5) of title 10, United States Code.            



          SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.           



     (a) Funding.--Amounts authorized to be appropriated under this title 

  and title II are available for a NATO alliance ground surveillance      

  capability that is based on the Joint Surveillance/Target Attack Radar  

  System of the United States, as follows:                                

       (1) Of the amount authorized to be appropriated under section       

   101(5), $26,153,000.                                                    

       (2) Of the amount authorized to be appropriated under section       

   103(1), $10,000,000.                                                    

       (3) Of the amount authorized to be appropriated under section       

   201(1), $13,500,000.                                                    

       (4) Of the amount authorized to be appropriated under section       

   201(3), $26,061,000.                                                    

     (b) Authority.--(1) Subject to paragraph (2), the Secretary of       

  Defense may utilize authority under section 2350b of title 10, United   

  States Code, for contracting for the purposes of Phase I of a NATO      

  Alliance Ground Surveillance capability that is based on the Joint      

  Surveillance/Target Attack Radar System of the United States,           

  notwithstanding the condition in such section that the authority be     

  utilized for carrying out contracts or obligations incurred under       

  section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)).       

     (2) The authority under paragraph (1) applies during the period that 

  the conclusion of a cooperative project agreement for a NATO Alliance   

  Ground Surveillance capability under section 27(d) of the Arms Export   

  Control Act is pending, as determined by the Secretary of Defense.      

     (c) Modification of Air Force Aircraft.--Amounts available pursuant  

  to paragraphs (2) and (4) of subsection (a) may be used to provide for  

  modifying two Air Force Joint Surveillance/Target Attack Radar System   

  production aircraft to have a NATO Alliance Ground Surveillance         

  capability that is based on the Joint Surveillance/Target Attack Radar  

  System of the United States.                                            



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



                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 201. Authorization of appropriations.                              



      Sec. 202. Amount for basic and applied research.                        



      Sec. 203. Dual-use technology program.                                  



            Sec. 204. Reduction in amount for Federally Funded Research and   

      Development Centers.                                                    

               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    



      Sec. 211. Manufacturing technology program.                             



      Sec. 212. Report on operational field assessments program.              



      Sec. 213. Joint Strike Fighter program.                                 



      Sec. 214. Kinetic energy tactical anti-satellite technology program.    



      Sec. 215. Micro-satellite technology development program.               



      Sec. 216. High altitude endurance unmanned vehicle program.             



      Sec. 217. F 22 aircraft program.                                        



                       SUBTITLE C--BALLISTIC MISSILE DEFENSE PROGRAMS             



      Sec. 231. National Missile Defense Program.                             



            Sec. 232. Budgetary treatment of amounts for procurement for      

      ballistic missile defense programs.                                     

      Sec. 233. Cooperative Ballistic Missile Defense program.                



            Sec. 234. Annual report on threat posed to the United States by   

      weapons of mass destruction, ballistic missiles, and cruise missiles.   

      Sec. 235. Director of Ballistic Missile Defense Organization.           



            Sec. 236. Repeal of required deployment dates for core theater    

      missile defense programs                                                

                                  SUBTITLE D--OTHER MATTERS                       



            Sec. 241. Restructuring of National Oceanographic Partnership     

      Program organizations.                                                  

            Sec. 242. Maintenance and repair of real property at Air Force    

      installations.                                                          

            Sec. 243. Expansion of eligibility for the Defense Experimental   

      Program to Stimulate Competitive Research.                              

            Sec. 244. Bioassay testing of veterans exposed to ionizing        

      radiation during military service.                                      

      Sec. 245. Sense of Congress regarding Comanche program.                 





           Subtitle A--Authorization of Appropriations                             



          SEC. 201. AUTHORIZATION OF APPROPRIATIONS.                              



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for the use of the Department of Defense for research, development,     

  test, and evaluation as follows:                                        

     (1) For the Army, $4,633,495,000.                                     



     (2) For the Navy, $7,774,877,000.                                     



     (3) For the Air Force, $14,338,934,000.                               



     (4) For Defense-wide activities, $9,831,646,000, of which--           



       (A) $258,183,000 is authorized for the activities of the Director,  

   Test and Evaluation; and                                                

       (B) $27,384,000 is authorized for the Director of Operational Test  

   and Evaluation.                                                         

          SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.                        



     (a) Fiscal Year 1998.--Of the amounts authorized to be appropriated  

  by section 201, $3,935,390,000 shall be available for basic research and

  applied research projects.                                              

     (b) Basic Research and Applied Research Defined.--For purposes of    

  this section, the term ``basic research and applied research'' means    

  work funded in program elements for defense research and development    

  under Department of Defense category 6.1 or 6.2.                        



          SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.                      



     (a) Funding 1998.--Of the amounts authorized to be appropriated by   

  section 201, $75,000,000 is authorized for dual-use projects.           

     (b) Goals.--(1) Subject to paragraph (3), it shall be the objective  

  of the Secretary of each military department to obligate for dual-use   

  projects in each fiscal year referred to in paragraph (2), out of the   

  total amount authorized to be appropriated for such fiscal year for the 

  applied research programs of the military department, the percent of    

  such amount that is specified for that fiscal year in paragraph (2).    

     (2) The objectives for fiscal years under paragraph (1) are as       

  follows:                                                                

     (A) For fiscal year 1998, 5 percent.                                  



     (B) For fiscal year 1999, 7 percent.                                  



     (C) For fiscal year 2000, 10 percent.                                 



     (D) For fiscal year 2001, 15 percent.                                 



     (3) The Secretary of Defense may establish for a military department 

  for a fiscal year an objective different from the objective set forth in

  paragraph (2) if the Secretary--                                        



       (A) determines that compelling national security considerations     

   require the establishment of the different objective; and               

       (2) notifies Congress of the determination and the reasons for the  

   determination.                                                          

     (c) Designation of Official for Dual-Use Programs.--(1) The Secretary

  of Defense shall designate a senior official in the Office of the       

  Secretary of Defense to carry out responsibilities for dual-use projects

  under this subsection. The designated official shall report directly to 

  the Under Secretary of Defense for Acquisition and Technology.          

     (2) The primary responsibilities of the designated official shall    

  include developing policy and overseeing the establishment of, and      

  adherence to, procedures for ensuring that dual-use projects are        

  initiated and administered effectively and that applicable commercial   

  technologies are integrated into current and future military systems.   

     (3) In carrying out the responsibilities, the designated official    

  shall ensure that--                                                     

       (A) dual-use projects are consistent with the joint warfighting     

   science and technology plan referred to in section 270 of the National  

   Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 10  

   U.S.C. 2501 note); and                                                  

       (B) the dual-use projects of the military departments and defense   

   agencies of the Department of Defense are coordinated and avoid         

   unnecessary duplication.                                                

     (d) Financial Commitment of Non-Federal Government Participants.--The

  total amount of funds provided by a military department for a dual-use  

  project entered into by the Secretary of that department shall not      

  exceed 50 percent of the total cost of the project. In the case of a    

  dual-use project initiated after the date of the enactment of this Act, 

  the Secretary may consider in-kind contributions by non-Federal         

  participants only to the extent such contributions constitute 50 percent

  or less of the share of the project costs by such participants.         

     (e) Use of Competitive Procedures.--Funds obligated for a dual-use   

  project may be counted toward meeting an objective under subsection (a) 

  only if the funds are obligated for a contract, grant, cooperative      

  agreement, or other transaction that was entered into through the use of

  competitive procedures.                                                 

     (f) Report.--(1) Not later than March 1 of each of 1998, 1999, and   

  2000, the Secretary of Defense shall submit a report to the             

  congressional defense committees on the progress made by the Department 

  of Defense in meeting the objectives set forth in subsection (b) during 

  the preceding fiscal year.                                              

     (2) The report for a fiscal year shall contain, at a minimum, the    

  following:                                                              

       (A) The aggregate value of all contracts, grants, cooperative       

   agreements, or other transactions entered into during the fiscal year   

   for which funding is counted toward meeting an objective under this     

   section, expressed in relationship to the total amount appropriated for 

   the applied research programs in the Department of Defense for that     

   fiscal year.                                                            

       (B) For each military department, the value of all contracts,       

   grants, cooperative agreements, or other transactions entered into      

   during the fiscal year for which funding is counted toward meeting an   

   objective under this section, expressed in relationship to the total    

   amount appropriated for the applied research program of the military    

   department for that fiscal year.                                        

       (C) A summary of the cost-sharing arrangements in dual-use projects 

   that were initiated during the fiscal year and are counted toward       

   reaching an objective under this section.                               

       (D) A description of the regulations, directives, or other          

   procedures that have been issued by the Secretary of Defense or the     

   Secretary of a military department to increase the percentage of the    

   total value of the dual-use projects undertaken to meet or exceed an    

   objective under this section.                                           



       (E) Any recommended legislation to facilitate achievement of        

   objectives under this section.                                          

     (g) Commercial Operations and Support Savings Initiative.--(1) The   

  Secretary of Defense shall establish a Commercial Operations and Support

  Savings Initiative (in this subsection referred to as the               

  ``Initiative'') to develop commercial products and processes that the   

  military departments can incorporate into operational military systems  

  to reduce costs of operations and support.                              

     (2) Of the amounts authorized to be appropriated by section 201,     

  $50,000,000 is authorized for the Initiative.                           

     (3) Projects and participants in the Initiative shall be selected    

  through the use of competitive procedures.                              

     (4) The budget submitted to Congress by the President for fiscal year

  1999 and each fiscal year thereafter pursuant to section 1105(a) of     

  title 31, United States Code, shall set forth separately the funding    

  request for the Initiative.                                             

     (h) Repeal of Superseded Authority.--Section 203 of the National     

  Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 

  Stat. 2451) is repealed.                                                

    (i)  Definitions.--In this section:                                   



       (1) The term ``applied research program'' means a program of a      

   military department which is funded under the 6.2 Research, Development,

   Test and Evaluation account of that department.                         

       (2) The term ``dual-use project'' means a project under a program of

   a military department or a defense agency under which research or       

   development of a dual-use technology is carried out and the costs of    

   which are shared by the Department of Defense and non-Government        

   entities.                                                               

                    SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH   

          AND DEVELOPMENT CENTERS.                                                

     The total of the amounts authorized to be appropriated in section 201

  that are available for Federally Funded Research and Development Centers

  (other than amounts for capital equipment investment) is hereby reduced 

  by $42,000,000.                                                         

           Subtitle B--Program Requirements, Restrictions, and Limitations         



          SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.                             



     (a) Participation of Manufacturers.--Section 2525(c)(2) of title 10, 

  United States Code, is amended to read as follows:                      

     ``(2) In order to promote increased dissemination and use of         

  manufacturing technology throughout the national defense technology and 

  industrial base, the Secretary shall seek, to the maximum extent        

  practicable, the participation of manufacturers of manufacturing        

  equipment in the projects under the program.''.                         

     (b) Five-Year Plan.--Section 2525 of such title is amended by adding 

  at the end the following new subsection:                                

     ``(e) Five-Year Plan.--(1) The Secretary of Defense shall prepare a  

  five-year plan for the program which establishes--                      

       ``(A) the overall manufacturing technology goals, milestones,       

   priorities, and investment strategy for the program; and                

       ``(B) for each of the five fiscal years covered by the plan, the    

   objectives of, and funding for the program by, each military department 

   and each Defense Agency participating in the program.                   

     ``(2) The plan shall include an assessment of the effectiveness of   

  the program.                                                            

     ``(3) The plan shall be updated annually and shall be included in the

  budget justification documents submitted in support of the budget of the

  Department of Defense for a fiscal year (as included in the budget of   

  the President submitted to Congress under section 1105 of title 31).''. 

     (c) Deadline for First Plan.--The Secretary of Defense shall prepare 

  the first five-year plan required under section 2525(e) of such title,  

  as added by subsection (b), within 60 days after the date of the        

  enactment of this Act.                                                  



          SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.              



     (a) Finding.--Congress recognizes the potential value that the       

  Department of Defense Operational Field Assessments program, which is   

  managed by the Director of Operational Test and Evaluation, provides to 

  the commanders of the Unified Combatant Commands with respect to        

  assessment of the effectiveness of near-term operational concepts and   

  critical operational issues in quick-response operational tests and     

  evaluations.                                                            

     (b) Report.--Not later than March 30, 1998, the Secretary of Defense 

  shall submit to the congressional defense committees a report on the    

  Operational Field Assessments program.                                  

    (c)  Content of Report.--The report shall contain the following:      



       (1) A review of the Operational Field Assessments program which     

   describes the goals and objectives of the program, assessments by the   

   program conducted as of the date of the submission of the report, and   

   the results of those assessments.                                       

       (2) A description of the current management and support structure of

   the program within the Department of Defense, including a description of

   how program responsibilities are assigned within the Office of the      

   Secretary of Defense and a description of the roles of the Joint Staff, 

   the commanders of the Unified Combatant Commands, and the military      

   departments.                                                            

       (3) An analysis of and recommendations regarding the management     

   structure required within the Office of the Secretary of Defense to     

   ensure that the program is responsive to the mission needs of the       

   commanders of the Unified Combatant Commands.                           

     (4) The funding plan for the program.                                 





       (5) A description of future plans for the program and funding       

   requirements for those plans.                                           

       (6) Recommendations regarding additional statutory authority that   

   may be required for the program.                                        



          SEC. 213. JOINT STRIKE FIGHTER PROGRAM.                                 



     (a) Report.--Not later than February 15, 1998, the Secretary of      

  Defense shall submit to the congressional defense committees a report on

  the options for the sequence in which the variants of the joint strike  

  fighter are to be produced and fielded.                                 

    (b)  Content of Report.--The report shall contain the following:      



       (1) A review of the plan for production under the Joint Strike      

   Fighter program that was used by the Department of Defense for          

   developing the funding estimates for the fiscal year 1999 budget request

   for the Department of Defense.                                          

       (2) An estimate of the costs, and an analysis of the costs and      

   benefits, of producing the joint strike fighter variants in a sequence  

   that provides for fielding of the naval variant of the aircraft first.  

       (3) A comparison of the costs and benefits of the various options   

   for the sequence for fielding the variants of the joint strike fighter  

   that the Secretary of Defense considers likely to be the options from   

   among which a sequence for fielding is selected, including a discussion 

   of the effects that selection of each such option would have on the     

   costs and rates of production of the units of F/A 18E/F and F 22        

   aircraft that are in production when the Joint Strike Fighter Program   

   proceeds into production.                                               

       (4) A certification that the Joint Strike Fighter Program contains  

   sufficient funding to carry out an alternate engine development program 

   that includes flight qualification of an alternate engine in a joint    

   strike fighter airframe.                                                

     (c) Limitation on Use of Funds Pending Submission of Report.--Not    

  more than 90 percent of the total amount authorized to be appropriated  

  under this Act for the Joint Strike Fighter Program may be obligated    

  until the date that is 30 days after the date on which the congressional

  defense committees receive the report required under this section.      

     (d) Fiscal Year 1998 Budget Defined.--In this section, the term      

  ``fiscal year 1999 budget request for the Department of Defense'' means 

  the budget estimates for the Department of Defense for fiscal year 1999 

  that were submitted to Congress by the Secretary of Defense in          

  connection with the submission of the budget for fiscal year 1998 to    

  Congress under section 1105 of title 31, United States Code.            



          SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.    



     Of the funds authorized to be appropriated under section 201(4),     

  $37,500,000 shall be available for the kinetic energy tactical          

  anti-satellite technology program.                                      



          SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.               



     (a) Establishment of Micro-Satellite Technology Development          

  Program.--The Secretary of Defense shall restructure the Clementine 2   

  micro-satellite development program into a micro-satellite technology   

  development program that supports a range of space mission areas.       

     (b) Report.--Not later than February 15, 1998, the Secretary of      

  Defense shall submit to the congressional defense committees a report   

  describing the structure and objectives of the micro-satellite          

  technology development program established under subsection (a) and how 

  the program can benefit existing or future space systems or             

  architectures.                                                          



          SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.             



     (a) Limitation on Total Cost of Advanced Concept Technology          

  Demonstration.--The total amount obligated or expended for advanced     

  concept technology demonstration under the High Altitude Endurance      

  Unmanned Vehicle Program for fiscal year 1998 through fiscal year 2003  

  may not exceed $476,826,000.                                            



     (b) Limitation on Procurement.--The Secretary of Defense may not     

  procure any high altitude endurance unmanned vehicles, other than the   

  currently planned vehicles, until the completion of the testing         

  identified in phase II of the test and demonstration plan for the       

  advanced concept technology demonstration for the vehicles.             

     (c) Limitation on Proceeding.--The High Altitude Endurance Unmanned  

  Vehicle Program may not proceed beyond advanced concept technology      

  demonstration until the Secretary of Defense--                          

       (1) provides to Congress a firm unit cost (referred to in this      

   section as the ``fly away cost'') for each of the currently planned     

   vehicles; and                                                           

       (2) certifies to Congress the military suitability and the worth of 

   each such vehicle.                                                      

     (d) GAO Review.--(1) The Comptroller General shall review the High   

  Altitude Endurance Unmanned Vehicle Program for purposes of determining 

  whether the average fly away cost for each vehicle is within the cost   

  goal under the program of $10,000,000.                                  

     (2) The Secretary of Defense and the prime contractors under the High

  Altitude Endurance Unmanned Vehicle Program shall provide the           

  Comptroller General with such information on the program as the         

  Comptroller considers necessary to make the determination under         

  paragraph (1).                                                          

     (e) Currently Planned Vehicles.--In this section, the term           

  ``currently planned vehicles'' means the four Dark Star air vehicles and

  the five Global Hawk air vehicles that have been approved for           

  procurement by the Secretary of Defense as of the date of the enactment 

  of this Act.                                                            

          SEC. 217. F 22 AIRCRAFT PROGRAM.                                        



     (a) Limitation on Total Cost of Engineering and Manufacturing        

  Development.--The total amount obligated or expended for engineering and

  manufacturing development under the F 22 aircraft program may not exceed

  $18,688,000,000.                                                        

     (b) Limitation on Total Cost of Production.--The total amount        

  obligated or expended for the F 22 production program may not exceed    

  $43,400,000,000.                                                        

     (c) Adjustment of Limitation Amounts.--The Secretary of the Air Force

  shall adjust the amounts of the limitations set forth in subsections (a)

  and (b) by the following amounts:                                       

       (1) The amounts of increases or decreases in costs attributable to  

   economic inflation after September 30, 1997.                            

       (2) The amounts of increases or decreases in costs attributable to  

   compliance with changes in Federal, State, or local laws enacted after  

   September 30, 1997.                                                     

     (d) Annual GAO Review.--(1) Not later than March 15 of each year, the

  Comptroller General shall review the F 22 aircraft program and submit to

  Congress a report on the results of the review. The Comptroller General 

  shall also submit to Congress for each report a certification regarding 

  whether the Comptroller General has had access to sufficient information

  to make informed judgments on the matters covered by the report.        

     (2) The report submitted on the program each year shall include the  

  following:                                                              

       (A) The extent to which engineering and manufacturing development   

   under the program is meeting the goals established for engineering and  

   manufacturing development under the program, including the performance, 

   cost, and schedule goals.                                               

       (B) The status of modifications expected to have a significant      

   effect on cost or performance of F 22 aircraft.                         

       (C) The plan for engineering and manufacturing development (leading 

   to production) under the program for the fiscal year that begins in the 

   following year.                                                         

       (D) A conclusion regarding whether the plan referred to in          

   subparagraph (C) is consistent with the limitation in subsection (a).   

       (E) A conclusion regarding whether engineering and manufacturing    

   development (leading to production) under the program is likely to be   

   completed at a total cost not in excess of the amount specified in      

   subsection (a).                                                         

     (3) The Comptroller General shall submit the first report under this 

  subsection not later than March 15, 1998. No report is required under   

  this subsection after engineering and manufacturing development under   

  the program has been completed.                                         

     (e) Requirement To Support Annual GAO Review.--The Secretary of      

  Defense and the prime contractors under the F 22 aircraft program shall 

  provide the Comptroller General with such information on the program as 

  the Comptroller General considers necessary to carry out the            

  responsibilities under subsection (d).                                  

     (f) Limitation on Obligation of Funds.--Of the total amount          

  authorized to be appropriated for the F 22 aircraft program for a fiscal

  year, not more than 90 percent of the amount may be obligated until the 

  Comptroller General submits to Congress--                               

       (1) the report required to be submitted in that fiscal year under   

   subsection (d); and                                                     

       (2) a certification regarding whether the Comptroller General has   

   had access to sufficient information to make informed judgments on the  

   matters covered by the report.                                          



           Subtitle C--Ballistic Missile Defense Programs                          





          SEC. 231. NATIONAL MISSILE DEFENSE PROGRAM.                             



     (a) Program Structure.--To preserve the option of achieving an       

  initial operational capability in fiscal year 2003, the Secretary of    

  Defense shall ensure that the National Missile Defense Program is       

  structured and programmed for funding so as to support a test, in fiscal

  year 1999, of an integrated national missile defense system that is     

  representative of the national missile defense system architecture that 

  could achieve initial operational capability in fiscal year 2003.       

     (b) Elements of NMD System.--The national missile defense system     

  architecture specified in subsection (a) shall consist of the following 

  elements:                                                               



       (1) An interceptor system that optimizes defensive coverage of the  

   continental United States, Alaska, and Hawaii against limited ballistic 

   missile attack (whether accidental, unauthorized, or deliberate).       

     (2) Ground-based radars.                                              



     (3) Space-based sensors.                                              



     (4) Battle management, command, control, and communications (BM/C 3). 



     (c) Plan for NMD System Development and Deployment.--Not later than  

  February 15, 1998, the Secretary of Defense shall submit to the         

  congressional defense committees a plan for the development and         

  deployment of a national missile defense system that could achieve      

  initial operational capability in fiscal year 2003. The plan shall      

  include the following matters:                                          

       (1) A detailed description of the system architecture selected for  

   development.                                                            

       (2) A discussion of the justification for the selection of that     

   particular architecture.                                                

       (3) The Secretary's estimate of the amounts of the appropriations   

   that would be necessary for research, development, test, evaluation, and

   for procurement for each of fiscal years 1999 through 2003 in order to  

   achieve an initial operational capability of the system architecture in 

   fiscal year 2003.                                                       

       (4) For each activity necessary for the development and deployment  

   of the national missile defense system architecture selected by the     

   Secretary that would at some point conflict with the terms of the ABM   

   Treaty, if any--                                                        

     (A) a description of the activity;                                    



       (B) a description of the point at which the activity would conflict 

   with the terms of the ABM Treaty;                                       

       (C) the legal analysis justifying the Secretary's determination     

   regarding the point at which the activity would conflict with the terms 

   of the ABM Treaty; and                                                  

       (D) an estimate of the time at which such point would be reached in 

   order to achieve a test of an integrated missile defense system in      

   fiscal year 1999 and initial operational capability of such a system in 

   fiscal year 2003.                                                       

     (d) Funding for Fiscal Year 1998.--Of the funds authorized to be     

  appropriated under section 201(4), $978,091,000 shall be available for  

  the National Missile Defense Program.                                   

     (e) ABM Treaty Defined.--In this section, the term ``ABM Treaty''    

  means the Treaty Between the United States of America and the Union of  

  Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile  

  Systems, signed at Moscow on May 26, 1972, and includes the Protocol to 

  that treaty, signed at Moscow on July 3, 1974.                          



                    SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR  

          BALLISTIC MISSILE DEFENSE PROGRAMS.                                     

     (a) Requirement for Inclusion in Budget of BMDO.--(1) Chapter 9 of   

  title 10, United States Code, is amended by inserting after section 222 

  the following new section:                                              

                    ``224. Ballistic missile defense programs: display of amounts 

          for procurement                                                         

     ``(a) Requirement.--Any amount in the budget submitted to Congress   

  under section 1105 of title 31 for any fiscal year for procurement for a

  Department of Defense missile defense program described in subsection   

  (b) shall be set forth under the account of the Department of Defense   

  for Defense-wide procurement and, within that account, under the        

  subaccount (or other budget activity level) for the Ballistic Missile   

  Defense Organization.                                                   

     ``(b) Covered Programs.--Subsection (a) applies to the following     

  missile defense programs of the Department of Defense:                  

     ``(1) The National Missile Defense program.                           



       ``(2) Any system that is part of the core theater missile defense   

   program.                                                                



       ``(3) Any other ballistic missile defense program that enters       

   production after the date of the enactment of this section and for which

   research, development, test, and evaluation was carried out by the      

   Ballistic Missile Defense Organization.                                 

     ``(c) Core Theater Ballistic Missile Defense Program.--For purposes  

  of this section, the core theater missile defense program consists of   

  the systems specified in section 234 of the Ballistic Missile Defense   

  Act of 1995 (10 U.S.C. 2431 note).''.                                   

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 222 the following new   

  item:                                                                   





            ``224. Ballistic missile defense programs: display of amounts for 

      procurement.''.                                                         





     (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense shall      

  transfer to appropriations available to the Ballistic Missile Defense   

  Organization for procurement for fiscal year 1998 any amounts that are  

  appropriated for procurement for that fiscal year for any of the Armed  

  Forces by reason of the transference of certain programs to accounts of 

  the Army, Navy, Air Force, and Marine Corps pursuant to Program Budget  

  Decision 224C3, signed by the Under Secretary of Defense (Comptroller)  

  on December 23, 1996.                                                   

     (2) Any transfer pursuant to paragraph (1) shall not be counted for  

  purposes of section 1001.                                               



          SEC. 233. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.                



     (a) Requirement for New Program Element.--The Secretary of Defense   

  shall establish a program element for the Ballistic Missile Defense     

  Organization, to be referred to as the ``Cooperative Ballistic Missile  

  Defense Program'', to support technical and analytical cooperative      

  efforts between the United States and other nations that contribute to  

  United States ballistic missile defense capabilities. Except as provided

  in subsection (b), all international cooperative ballistic missile      

  defense programs of the Department of Defense shall be budgeted and     

  administered through that program element.                              

     (b) Authority for Exceptions.--The Secretary of Defense may exclude  

  from the program element established pursuant to subsection (a) any     

  international cooperative ballistic missile defense program of the      

  Department of Defense that after the date of the enactment of this Act  

  is designated by the Secretary of Defense (pursuant to applicable       

  Department of Defense acquisition regulations and policy) to be managed 

  as a separate acquisition program.                                      

     (c) Relationship to Other Program Elements.--The program element     

  established pursuant to subsection (a) is in addition to the program    

  elements for activities of the Ballistic Missile Defense Organization   

  required under section 251 of the National Defense Authorization Act for

  Fiscal Year 1996 (Public Law 104 106; 110 Stat. 233; 10 U.S.C. 221      

  note).                                                                  

                    SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES  

          BY WEAPONS OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE MISSILES.

     (a) Annual Report.--The Secretary of Defense shall submit to Congress

  by January 30 of each year a report on the threats posed to the United  

  States and allies of the United States--                                

       (1) by weapons of mass destruction, ballistic missiles, and cruise  

   missiles; and                                                           

       (2) by the proliferation of weapons of mass destruction, ballistic  

   missiles, and cruise missiles.                                          

     (b) Consultation.--Each report submitted under subsection (a) shall  

  be prepared in consultation with the Director of Central Intelligence.  

     (c) Matters To Be Included.--Each report submitted under subsection  

  (a) shall include the following:                                        

       (1) Identification of each foreign country and non-State            

   organization that possesses weapons of mass destruction, ballistic      

   missiles, or cruise missiles, and a description                         



                    of such weapons and missiles with respect to each such foreign

          country and non-State organization.                                     

       (2) A description of the means by which any foreign country and     

   non-State organization that has achieved capability with respect to     

   weapons of mass destruction, ballistic missiles, or cruise missiles has 

   achieved that capability, including a description of the international  

   network of foreign countries and private entities that provide          

   assistance to foreign countries and non-State organizations in achieving

   that capability.                                                        

       (3) An examination of the doctrines that guide the use of weapons of

   mass destruction in each foreign country that possesses such weapons.   

       (4) An examination of the existence and implementation of the       

   control mechanisms that exist with respect to nuclear weapons in each   

   foreign country that possesses such weapons.                            

       (5) Identification of each foreign country and non-State            

   organization that seeks to acquire or develop (indigenously or with     

   foreign assistance) weapons of mass destruction, ballistic missiles, or 

   cruise missiles, and a description of such weapons and missiles with    

   respect to each such foreign country and non-State organization.        

       (6) An assessment of various possible timelines for the achievement 

   by foreign countries and non-State organizations of capability with     

   respect to weapons of mass destruction, ballistic missiles, and cruise  

   missiles, taking into account the probability of whether the Russian    

   Federation and the People's Republic of China will comply with the      

   Missile Technology Control Regime, the potential availability of        

   assistance from foreign technical specialists, and the potential for    

   independent sales by foreign private entities without authorization from

   their national Governments.                                             

       (7) For each foreign country or non-State organization that has not 

   achieved the capability to target the United States or its territories  

   with weapons of mass destruction, ballistic missiles, or cruise missiles

   as of the date of the enactment of this Act, an estimate of how far in  

   advance the United States is likely to be warned before such foreign    

   country or non-State organization achieves that capability.             

       (8) For each foreign country or non-State organization that has not 

   achieved the capability to target members of the United States Armed    

   Forces deployed abroad with weapons of mass destruction, ballistic      

   missiles, or cruise missiles as of the date of the enactment of this    

   Act, an estimate of how far in advance the United States is likely to be

   warned before such foreign country or non-State organization achieves   

   that capability.                                                        

     (d) Classification.--Each report under subsection (a) shall be       

  submitted in classified and unclassified form.                          



          SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.           



     (a) In General.--Subchapter II of chapter 8 of title 10, United      

  States Code, is amended by adding at the end the following new section: 

          ``203. Director of Ballistic Missile Defense Organization               



     ``If an officer of the armed forces on active duty is appointed to   

  the position of Director of the Ballistic Missile Defense Organization, 

  the position shall be treated as having been designated by the President

  as a position of importance and responsibility for purposes of section  

  601 of this title and shall carry the grade of lieutenant general or    

  general or, in the case of an officer of the Navy, vice admiral or      

  admiral.''.                                                             

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such subchapter is amended by adding at the end the following new item: 





      ``203. Director of Ballistic Missile Defense Organization.''.           





                    SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER

          MISSILE DEFENSE PROGRAMS.                                               

     Section 234(a) of the Ballistic Missile Defense Act of 1995 (subtitle

  C of title II of Public Law 104 106; 110 Stat. 229; 10 U.S.C. 2431 note)

  is amended--                                                            



       (1) in the matter preceding paragraph (1), by striking out ``, to be

   carried out so as to achieve the specified capabilities'';              

       (2) in paragraph (1), by striking out ``, with a first unit equipped

   (FUE) during fiscal year 1998'';                                        

       (3) in paragraph (2), by striking out ``Navy Lower Tier (Area)      

   system'' and all that follows through ``fiscal year 1999'' and inserting

   in lieu thereof ``Navy Area Defense system'';                           

       (4) in paragraph (3), by striking out ``, with a'' and all that     

   follows through ``fiscal year 2000''; and                               

       (5) in paragraph (4), by striking out ``Navy Upper Tier'' and all   

   that follows through ``fiscal year 2001'' and inserting in lieu thereof 

   ``Navy Theater Wide system''.                                           



           Subtitle D--Other Matters                                               





                    SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP 

          PROGRAM ORGANIZATIONS.                                                  

     (a) National Ocean Research Leadership Council.--Section 7902 of     

  title 10, United States Code, is amended--                              

     (1) in subsection (b)--                                               



     (A) by striking out paragraphs (11), (14), (15), (16) and (17); and   



       (B) by redesignating paragraphs (12) and (13) as paragraphs (11) and

   (12), respectively;                                                     

     (2) by striking out subsection (d); and                               



       (3) by redesignating subsections (e), (f), (g), (h), and (i) as     

   subsections (d), (e), (f), (g), and (h), respectively.                  

     (b) Ocean Research Advisory Panel.--(1) The text of section 7903 of  

  such title is amended to read as follows:                               

     ``(a) Establishment.--The Council shall establish an Ocean Research  

  Advisory Panel consisting of not less than 10 and not more than 18      

  members appointed by the chairman, including the following:             

     ``(1) One member who will represent the National Academy of Sciences. 



       ``(2) One member who will represent the National Academy of         

   Engineering                                                             

     ``(3) One member who will represent the Institute of Medicine.        



       ``(4) Members selected from among individuals who will represent the

   views of ocean industries, State governments, academia, and such other  

   views as the chairman considers appropriate.                            

       ``(5) Members selected from among individuals eminent in the fields 

   of marine science or marine policy, or related fields.                  

     ``(b) Responsibilities.--The Council shall assign the following      

  responsibilities to the Advisory Panel:                                 

       ``(1) To advise the Council on policies and procedures to implement 

   the National Oceanographic Partnership Program.                         

       ``(2) To advise the Council on selection of partnership projects and

   allocation of funds for partnership projects for implementation under   

   the program.                                                            

       ``(3) To advise the Council on matters relating to national         

   oceanographic data requirements.                                        

       ``(4) Any additional responsibilities that the Council considers    

   appropriate.                                                            

     ``(c) Funding.--The Secretary of the Navy annually shall make funds  

  available to support the activities of the Advisory Panel.''.           

     (2) Section 282(c) of the National Defense Authorization Act for     

  Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2473) is amended by     

  striking out ``January 1, 1997'' and inserting in lieu thereof ``January

  1, 1998''.                                                              

     (c) Conforming Amendments.--Section 282 of the National Defense      

  Authorization Act for Fiscal Year 1997 is amended--                     

     (1) by striking out subsection (b); and                               



       (2) by redesignating subsections (c), (d), (e), and (f) as          

   subsections (b), (c), (d), and (e), respectively.                       



     (d) Effective Date.--The amendments made by subsections (a) and (b)  

  shall be effective as of September 23, 1996, as if included in section  

  282 of Public Law 104 201.                                              

                    SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE

          INSTALLATIONS.                                                          

     (a) In General.--Chapter 949 of title 10, United States Code, is     

  amended by adding at the end the following new section:                 

          ``9782. Maintenance and repair of real property                         



     ``(a) Allocation of Funds.--The Secretary of the Air Force shall     

  allocate funds authorized to be appropriated by a provision described in

  subsection (c) and a provision described in subsection (d) for          

  maintenance and repair of real property at military installations of the

  Department of the Air Force without regard to whether the installation  

  is supported with funds authorized by a provision described in          

  subsection (c) or (d).                                                  

     ``(b) Mixing of Funds Prohibited on Individual Projects.--The        

  Secretary of the Air Force may not combine funds authorized to be       

  appropriated by a provision described in subsection (c) and funds       

  authorized to be appropriated by a provision described in subsection (d)

  for an individual project for maintenance and repair of real property at

  a military installation of the Department of the Air Force.             

     ``(c) Research, Development, Test, and Evaluation Funds.--The        

  provision described in this subsection is a provision of a national     

  defense authorization Act that authorizes funds to be appropriated for a

  fiscal year to the Air Force for research, development, test, and       

  evaluation.                                                             

     ``(d) Operation and Maintenance Funds.--The provision described in   

  this subsection is a provision of a national defense authorization Act  

  that authorizes funds to be appropriated for a fiscal year to the Air   

  Force for operation and maintenance.''.                                 

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





      ``9782. Maintenance and repair of real property.''.                     





                    SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE            

          EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH.                 

     Section 257 of the National Defense Authorization Act for Fiscal Year

  1995 (Public Law 103 337; U.S.C. 2358 note) is amended by adding at the 

  end the following new subsection:                                       

     ``(f) State Defined.--In this section, the term `State' means a State

  of the United States, the District of Columbia, the Commonwealth of     

  Puerto Rico, Guam, the Virgin Islands, American Samoa, and the          

  Commonwealth of the Northern Mariana Islands.''.                        



                    SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING    

          RADIATION DURING MILITARY SERVICE.                                      

     (a) Nuclear Test Personnel Program.--Of the amount provided in       

  section 201(4), $300,000 shall be available for testing described in    

  subsection (b) in support of the Nuclear Test Personnel Program         

  conducted by the Defense Special Weapons Agency.                        

     (b) Covered Testing.--Subsection (a) applies to the third phase of   

  bioassay testing of individuals who are radiation-exposed veterans (as  

  defined in section 1112(c)(3)(A) of title 38, United States Code) who   

  participated in radiation-risk activities (as defined in section        

  1112(c)(3)(B) of such title).                                           



          SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.                 



    It is the sense of Congress that the Department of Defense should--   



       (1) evaluate technology transfer and acquisition initiatives within 

   the Army Comanche program that have the potential to increase the       

   efficiency or reduce the risk of the Comanche program; and              

       (2) include adequate funding for those initiatives that the         

   Department deems to be meritorious in the future-years defense program  

   (as submitted to Congress under section 221 of title 10, United States  

   Code).                                                                  



           TITLE III--OPERATION AND MAINTENANCE                                    





                         SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 301. Operation and maintenance funding.                            



      Sec. 302. Working capital funds.                                        



      Sec. 303. Armed Forces Retirement Home.                                 



      Sec. 304. Fisher House Trust Funds.                                     



      Sec. 305. Transfer from National Defense Stockpile Transaction Fund.    



      Sec. 306. Refurbishment of M1 A1 tanks.                                 



            Sec. 307. Operation of prepositioned fleet, National Training     

      Center, Fort Irwin, California.                                         

      Sec. 308. Refurbishment and installation of air search radar.           



      Sec. 309. Contracted training flight services.                          



      Sec. 310. Procurement technical assistance programs.                    



      Sec. 311. Operation of Fort Chaffee, Arkansas.                          



                            SUBTITLE B--MILITARY READINESS ISSUES                 



            Sec. 321. Monthly reports on allocation of funds within operation 

      and maintenance budget subactivities.                                   

      Sec. 322. Expansion of scope of quarterly readiness reports.            



            Sec. 323. Semiannual reports on transfers from high-priority      

      readiness appropriations.                                               

      Sec. 324. Annual report on aircraft inventory.                          



            Sec. 325. Administrative actions adversely affecting military     

      training or other readiness activities.                                 

      Sec. 326. Common measurement of operations tempo and personnel tempo.   



            Sec. 327. Inclusion of Air Force depot maintenance as operation   

      and maintenance budget line items.                                      

      Sec. 328. Prohibition of implementation of tiered readiness system.     



      Sec. 329. Report on military readiness requirements of the Armed Forces.



      Sec. 330. Assessment of cyclical readiness posture of the Armed Forces. 



            Sec. 331. Report on military exercises conducted under certain    

      training exercises programs                                             

      Sec. 332. Report on overseas deployments.                               



                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  



            Sec. 341. Revision of membership terms for Strategic Environmental

      Research and Development Program Scientific Advisory Board.             

            Sec. 342. Amendments to authority to enter into agreements with   

      other agencies in support of environmental technology certification.    

            Sec. 343. Modifications of authority to store and dispose of      

      nondefense toxic and hazardous materials.                               

            Sec. 344. Annual report on payments and activities in response to 

      fines and penalties assessed under environmental laws.                  

            Sec. 345. Annual report on environmental activities of the        

      Department of Defense overseas.                                         

            Sec. 346. Review of existing environmental consequences of the    

      presence of the Armed Forces in Bermuda.                                

            Sec. 347. Sense of Congress on deployment of United States Armed  

      Forces abroad for environmental preservation activities.                

            Sec. 348. Recovery and sharing of costs of environmental          

      restoration at Department of Defense sites.                             

            Sec. 349. Partnerships for investment in innovative environmental 

      technologies.                                                           

      Sec. 350. Procurement of recycled copier paper.                         



            Sec. 351. Pilot program for the sale of air pollution emission    

      reduction incentives.                                                   

                             SUBTITLE D--DEPOT-LEVEL ACTIVITIES                   



      Sec. 355. Definition of depot-level maintenance and repair.             



      Sec. 356. Core logistics capabilities of Department of Defense.         



            Sec. 357. Increase in percentage of depot-level maintenance and   

      repair that may be contracted for performance by non-government         

      personnel.                                                              

      Sec. 358. Annual report on depot-level maintenance and repair.          



            Sec. 359. Requirement for use of competitive procedures in        

      contracting for performance of depot-level maintenance and repair       

      workloads formerly performed at closed or realigned military            

      installations.                                                          

            Sec. 360. Clarification of prohibition on management of depot     

      employees by constraints on personnel levels.                           

      Sec. 361. Centers of Industrial and Technical Excellence.               



            Sec. 362. Extension of authority for aviation depots and naval    

      shipyards to engage in defense-related production and services.         

            Sec. 363. Repeal of a conditional repeal of certain depot-level   

      maintenance and repair laws and a related reporting requirement.        

            Sec. 364. Personnel reductions, Army depots participating in Army 

      Workload and Performance System.                                        

            Sec. 365. Report on allocation of core logistics activities among 

      Department of Defense facilities and private sector facilities.         

            Sec. 366. Review of use of temporary duty assignments for ship    

      repair and maintenance.                                                 

            Sec. 367. Sense of Congress regarding realignment of performance  

      of ground communication-electronic workload.                            

             SUBTITLE E--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES  



            Sec. 371. Reorganization of laws regarding commissaries and       

      exchanges and other morale, welfare, and recreation activities.         

      Sec. 372. Merchandise and pricing requirements for commissary stores.   



            Sec. 373. Limitation on noncompetitive procurement of brand-name  

      commercial items for resale in commissary stores.                       

            Sec. 374. Treatment of revenues derived from commissary store     

      activities.                                                             

            Sec. 375. Maintenance, repair, and renovation of Armed Forces     

      Recreation Center, Europe.                                              

            Sec. 376. Plan for use of public and private partnerships to      

      benefit morale, welfare, and recreation activities.                     

                                  SUBTITLE F--OTHER MATTERS                       



            Sec. 381. Assistance to local educational agencies that benefit   

      dependents of members of the Armed Forces and Department of Defense     

      civilian employees.                                                     

            Sec. 382. Center for Excellence in Disaster Management and        

      Humanitarian Assistance.                                                

            Sec. 383. Applicability of Federal printing requirements to       

      Defense Automated Printing Service.                                     

            Sec. 384. Study and notification requirements for conversion of   

      commercial and industrial type functions to contractor performance.     

            Sec. 385. Collection and retention of cost information data on    

      converted services and functions.                                       



            Sec. 386. Financial assistance to support additional duties       

      assigned to Army National Guard.                                        

      Sec. 387. Competitive procurement of printing and duplication services. 



            Sec. 388. Continuation and expansion of demonstration program to  

      identify overpayments made to vendors.                                  

            Sec. 389. Development of standard forms regarding performance work

      statement and request for proposal for conversion of certain operational

      functions of military installations.                                    

      Sec. 390. Base operations support for military installations on Guam.   



      Sec. 391. Warranty claims recovery pilot program.                       



            Sec. 392. Program to investigate fraud, waste, and abuse within   

      Department of Defense.                                                  

      Sec. 393. Multitechnology automated reader card demonstration program.  



      Sec. 394. Reduction in overhead costs of Inventory Control Points.      



      Sec. 395. Inventory management.                                         





           Subtitle A--Authorization of Appropriations                             



          SEC. 301. OPERATION AND MAINTENANCE FUNDING.                            



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for the use of the Armed Forces and other activities and agencies of the

  Department of Defense for expenses, not otherwise provided for, for     

  operation and maintenance, in amounts as follows:                       

     (1) For the Army, $17,174,589,000.                                    



     (2) For the Navy, $21,947,656,000.                                    



     (3) For the Marine Corps, $2,424,645,000.                             



     (4) For the Air Force, $19,172,985,000.                               



     (5) For Defense-wide activities, $10,242,607,000.                     



     (6) For the Army Reserve, $1,207,981,000.                             



     (7) For the Naval Reserve, $846,711,000.                              



     (8) For the Marine Corps Reserve, $116,366,000.                       



     (9) For the Air Force Reserve, $1,631,200,000.                        



     (10) For the Army National Guard, $2,311,432,000.                     



     (11) For the Air National Guard, $2,999,782,000.                      



     (12) For the Defense Inspector General, $136,580,000.                 



       (13) For the United States Court of Appeals for the Armed Forces,   

   $6,952,000.                                                             

     (14) For Environmental Restoration, Army, $375,337,000.               



     (15) For Environmental Restoration, Navy, $275,500,000.               



     (16) For Environmental Restoration, Air Force, $376,900,000.          



     (17) For Environmental Restoration, Defense-wide, $26,900,000.        



       (18) For Environmental Restoration, Formerly Used Defense Sites,    

   $202,300,000.                                                           

       (19) For Overseas Humanitarian, Disaster, and Civic Aid programs,   

   $47,130,000.                                                            

       (20) For Drug Interdiction and Counter-drug Activities,             

   Defense-wide, $666,882,000.                                             

       (21) For the Kaho'olawe Island Conveyance, Remediation, and         

   Environmental Restoration Trust Fund, $10,000,000.                      

     (22) For Medical Programs, Defense, $9,957,782,000.                   



     (23) For Cooperative Threat Reduction programs, $382,200,000.         



       (24) For Overseas Contingency Operations Transfer Fund,             

   $1,253,900,000.                                                         

          SEC. 302. WORKING CAPITAL FUNDS.                                        



     Funds are hereby authorized to be appropriated for fiscal year 1998  

  for the use of the Armed Forces and other activities and agencies of the

  Department of Defense for providing capital for working capital and     

  revolving funds in amounts as follows:                                  

     (1) For the Defense Working Capital Funds, $971,952,000.              



     (2) For the National Defense Sealift Fund, $1,059,948,000.            





          SEC. 303. ARMED FORCES RETIREMENT HOME.                                 



     There is hereby authorized to be appropriated for fiscal year 1998   

  from the Armed Forces Retirement Home Trust Fund the sum of $79,977,000 

  for the operation of the Armed Forces Retirement Home, including the    

  United States Soldiers' and Airmen's Home and the Naval Home.           



          SEC. 304. FISHER HOUSE TRUST FUNDS.                                     



     Funds are hereby authorized to be appropriated for fiscal year 1998, 

  out of funds in Fisher House Trust Funds not otherwise appropriated, for

  the operation of Fisher houses described in section 2221(d) of title 10,

  United States Code, as follows:                                         

       (1) From the Fisher House Trust Fund, Department of the Army,       

   $250,000 for Fisher houses that are located in proximity to medical     

   treatment facilities of the Army.                                       

       (2) From the Fisher House Trust Fund, Department of the Navy,       

   $150,000 for Fisher houses that are located in proximity to medical     

   treatment facilities of the Navy.                                       



          SEC. 305. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.    



     (a) Transfer Authority.--To the extent provided in appropriations    

  Acts, not more than $150,000,000 is authorized to be transferred from   

  the National Defense Stockpile Transaction Fund to operation and        

  maintenance accounts for fiscal year 1998 in amounts as follows:        

     (1) For the Army, $50,000,000.                                        



     (2) For the Navy, $50,000,000.                                        



     (3) For the Air Force, $50,000,000.                                   



    (b)  Treatment of Transfers.--Amounts transferred under this section--



       (1) shall be merged with, and be available for the same purposes and

   the same period as, the amounts in the accounts to which transferred;   

   and                                                                     

       (2) may not be expended for an item that has been denied            

   authorization of appropriations by Congress.                            

     (c) Relationship to Other Transfer Authority.--The transfer authority

  provided in this section is in addition to the transfer authority       

  provided in section 1001.                                               



          SEC. 306. REFURBISHMENT OF M1 A1 TANKS.                                 



     Of the amount authorized to be appropriated pursuant to section      

  301(1) for operation and maintenance for the Army, $35,000,000 shall be 

  available only for refurbishment of M1 A1 tanks under the AIM XXI       

  program if the Secretary of Defense determines that the cost            

  effectiveness of the pilot AIM XXI program is validated through user    

  trials conducted at the National Training Center, Fort Irwin,           

  California.                                                             



                    SEC. 307. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING 

          CENTER, FORT IRWIN, CALIFORNIA.                                         

     Of the amount authorized to be appropriated pursuant to section      

  301(1) for operation and maintenance for the Army, $60,200,000 shall be 

  available only to pay costs associated with the operation of the        

  prepositioned fleet of equipment during training rotations at the       

  National Training Center, Fort Irwin, California.                       



          SEC. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.           



     Of the amount authorized to be appropriated pursuant to section      

  301(2) for operation and maintenance for the Navy, $6,000,000 may be    

  available for the refurbishment and installation of the AN/SPS 48E air  

  search radar for the Ship Self Defense System at the Integrated Ship    

  Defense Systems Engineering Center, Naval Surface Warfare Center,       

  Wallops Islands, Virginia.                                              



          SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.                          





     Of the amount authorized to be appropriated pursuant to section      

  301(4) for operation and maintenance for the Air Force, $12,000,000 may 

  be used for contracted training flight services.                        



          SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.                    



     (a) Funding.--Of the amount authorized to be appropriated under      

  section 301(5), $12,000,000 shall be available for carrying out the     

  provisions of chapter 142 of title 10, United States Code.              

     (b) Specific Programs.--Of the amounts made available pursuant to    

  subsection (a), $600,000 shall be available for fiscal year 1998 for the

  purpose of carrying out programs sponsored by eligible entities referred

  to in subparagraph (D) of section 2411(1) of title 10, United States    

  Code, that provide procurement technical assistance in distressed areas 

  referred to                                                             



                    in subparagraph (B) of section 2411(2) of such title. If there

          is an insufficient number of satisfactory proposals for cooperative     

          agreements in such distressed areas to allow effective use of the funds 

          made available in accordance with this subsection in such areas, the    

          funds shall be allocated among the Defense Contract Administration      

          Services regions in accordance with section 2415 of such title.         



          SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.                          



     Of the amount authorized to be appropriated pursuant to section      

  301(10) for operation and maintenance for the Army National Guard,      

  $6,854,000 may be available for the operation of Fort Chaffee, Arkansas.

           Subtitle B--Military Readiness Issues                                   





                    SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN       

          OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.                         

     (a) In General.--(1) Chapter 9 of title 10, United States Code, is   

  amended by adding at the end the following new section:                 



                    ``228. Monthly reports on allocation of funds within operation

          and maintenance budget subactivities                                    

     ``(a) Monthly Report.--The Secretary of Defense shall submit to      

  Congress a monthly report on the allocation of appropriations to O&M    

  budget activities and to the subactivities of those budget activities.  

  Each such report shall be submitted not later than 60 days after the end

  of the month to which the report pertains.                              

     ``(b) Matters To Be Included.--Each such report shall set forth the  

  following for each subactivity of the O&M budget activities:            

       ``(1) The amount of budget authority appropriated for that          

   subactivity in the most recent regular Department of Defense            

   Appropriations Act.                                                     

       ``(2) The amount of budget authority actually made available for    

   that subactivity, taking into consideration supplemental appropriations,

   rescissions, and other adjustments required by law or made pursuant to  

   law.                                                                    

     ``(3) The amount programmed to be expended from such subactivity.     



     ``(c) Identification of Certain Fluctuations.--(1) If, in the report 

  under this section for a month of a fiscal year after the first month of

  that fiscal year, an amount shown under subsection (b) for a subactivity

  is different by more than $15,000,000 from the corresponding amount for 

  that subactivity in the report for the first month of that fiscal year, 

  the Secretary shall include in the report notice of that difference.    

     ``(2) If, in the report under this section for a month of a fiscal   

  year after a month for which the report under this section includes a   

  notice under paragraph (1), an amount shown under subsection (b) for a  

  subactivity is different by more than $15,000,000 from the corresponding

  amount for that subactivity in the most recent report that includes a   

  notice under paragraph (1) or this paragraph, the Secretary shall       

  include in the report notice of that difference.                        

     ``(d) Report on Fluctuations.--If a report under this section        

  includes a notice under subsection (c), the Secretary shall include in  

  the report with each such notice the following:                         

       ``(1) The reasons for the reallocations of funds resulting in the   

   inclusion of that notice in the report.                                 

     ``(2) Each budget subactivity involved in those reallocations.        



       ``(3) The effect of those reallocations on the operation and        

   maintenance activities funded through the subactivity with respect to   

   which the notice is included in the report.                             

     ``(e) O&M Budget Activity Defined.--For purposes of this section, the

  term `O&M budget activity' means a budget activity within an operation  

  and maintenance appropriation of the Department of Defense for a fiscal 

  year.''.                                                                



     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





            ``228. Monthly reports on allocation of funds within operation and

      maintenance budget subactivities.''.                                    





     (b) Effective Date.--The first report under section 228 of title 10, 

  United States Code, as added by subsection (a), shall be for the month  

  of December 1997.                                                       



          SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.            



     (a) Expanded Reports Required.--(1) Section 482 of title 10, United  

  States Code, is amended to read as follows:                             

          ``482. Quarterly reports: personnel and unit readiness                  



     ``(a) Quarterly Reports Required.--Not later than 30 days after the  

  end of each calendar-year quarter, the Secretary of Defense shall submit

  to Congress a report regarding military readiness. The report for a     

  quarter shall contain the information required by subsections (b), (d), 

  and (e).                                                                

     ``(b) Readiness Problems and Remedial Actions.--Each report shall    

  specifically describe--                                                 

       ``(1) each readiness problem and deficiency identified using the    

   assessments considered under subsection (c);                            

     ``(2) planned remedial actions; and                                   



       ``(3) the key indicators and other relevant information related to  

   each identified problem and deficiency.                                 

     ``(c) Consideration of Readiness Assessments.--The information       

  required under subsection (b) to be included in the report for a quarter

  shall be based on readiness assessments that are provided during that   

  quarter--                                                               

       ``(1) to any council, committee, or other body of the Department of 

   Defense--                                                               

     ``(A) that has responsibility for readiness oversight; and            



       ``(B) whose membership includes at least one civilian officer in the

   Office of the Secretary of Defense at the level of Assistant Secretary  

   of Defense or higher;                                                   

       ``(2) by senior civilian and military officers of the military      

   departments and the commanders of the unified and specified commands;   

   and                                                                     

       ``(3) as part of any regularly established process of periodic      

   readiness reviews for the Department of Defense as a whole.             

     ``(d) Comprehensive Readiness Indicators for Active Components.--Each

  report shall also include information regarding each of the active      

  components of the armed forces (and an evaluation of such information)  

  with respect to each of the following readiness indicators:             

     ``(1)  Personnel strength.--                                          



       ``(A) Personnel status, including the extent to which members of the

   armed forces are serving in positions outside of their military         

   occupational specialty, serving in grades other than the grades for     

   which they are qualified, or both.                                      

       ``(B) Historical data and projected trends in personnel strength and

   status.                                                                 

     ``(2)  Personnel turbulence.--                                        



     ``(A) Recruit quality.                                                



     ``(B) Borrowed manpower.                                              



     ``(C) Personnel stability.                                            



     ``(3)  Other personnel matters.--                                     



     ``(A) Personnel morale.                                               



     ``(B) Recruiting status.                                              



     ``(4)  Training.--                                                    



     ``(A) Training unit readiness and proficiency.                        



     ``(B) Operations tempo.                                               



     ``(C) Training funding.                                               



     ``(D) Training commitments and deployments.                           



     ``(5)  Logistics--equipment fill.--                                   



     ``(A) Deployed equipment.                                             



     ``(B) Equipment availability.                                         



     ``(C) Equipment that is not mission capable.                          



     ``(D) Age of equipment.                                               



     ``(E) Condition of nonpacing items.                                   



     ``(6)  Logistics--equipment maintenance.--                            



     ``(A) Maintenance backlog.                                            



     ``(7)  Logistics--supply.--                                           





     ``(A) Availability of ordnance and spares.                            



     ``(B) Status of prepositioned equipment.                              



     ``(e) Unit Readiness Indicators.--Each report shall also include     

  information regarding the readiness of each active component unit of the

  armed forces at the battalion, squadron, or an equivalent level (or a   

  higher level) that received a readiness rating of C 3 (or below) for any

  month of the calendar-year quarter covered by the report. With respect  

  to each such unit, the report shall separately provide the following    

  information:                                                            

     ``(1) The unit designation and level of organization.                 



       ``(2) The overall readiness rating for the unit for the quarter and 

   each month of the quarter.                                              

       ``(3) The resource area or areas (personnel, equipment and supplies 

   on hand, equipment condition, or training) that adversely affected the  

   unit's readiness rating for the quarter.                                

       ``(4) The reasons why the unit received a readiness rating of C 3   

   (or below).                                                             

     ``(f) Classification of Reports.--A report under this section shall  

  be submitted in unclassified form. To the extent the Secretary of       

  Defense determines necessary, the report may also be submitted in       

  classified form.''.                                                     



     (2) The item relating to section 482 in the table of sections at the 

  beginning of chapter 23 of such title is amended to read as follows:    





      ``482. Quarterly reports: personnel and unit readiness.''.              







     (b) Implementation Plan To Examine Readiness Indicators.--Not later  

  than January 15, 1998, the Secretary of Defense shall submit to the     

  congressional defense committees a plan--                               

       (1) specifying the manner in which the Secretary will implement the 

   additional reporting requirement of subsection (d) of section 482 of    

   title 10, United States Code, as added by this section; and             

       (2) specifying the criteria proposed to be used to evaluate the     

   readiness indicators identified in such subsection (d).                 

     (c) Limitation Pending Receipt of Implementation Plan.--Of the amount

  available for fiscal year 1998 for operation and support activities of  

  the Office of the Secretary of Defense, 10 percent may not be obligated 

  until after the date on which the implementation plan required by       

  subsection (b) is submitted.                                            

     (d) Transition to Complete Report.--Until the report under section   

  482 of title 10, United States Code, as amended by subsection (a), for  

  the third quarter of 1998 is submitted, the Secretary of Defense may    

  omit the information required by subsection (d) of such section if the  

  Secretary determines that it is impracticable to comply with such       

  subsection with regard to the preceding reports.                        



                    SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-PRIORITY  

          READINESS APPROPRIATIONS.                                               

     (a) Reports Required.--Chapter 23 of title 10, United States Code, is

  amended by adding at the end the following new section:                 

          ``483. Reports on transfers from high-priority readiness appropriations 



     ``(a) Annual Reports.--Not later than the date on which the President

  submits the budget for a fiscal year to Congress pursuant to section    

  1105 of title 31, the Secretary of Defense shall submit to the Committee

  on Armed Services and the Committee on Appropriations of the Senate and 

  the Committee on National Security and the Committee on Appropriations  

  of the House of Representatives a report on transfers during the        

  preceding fiscal year from funds available for each covered budget      

  activity.                                                               

     ``(b) Midyear Reports.--Not later than June 1 of each fiscal year,   

  the Secretary of Defense shall submit to the congressional committees   

  specified in subsection (a) a report on                                 



                    transfers, during the first six months of that fiscal year,   

          from funds available for each covered budget activity.                  

     ``(c) Matters To Be Included.--In each report under subsection (a) or

  (b), the Secretary of Defense shall include for each covered budget     

  activity the following:                                                 

     ``(1) A statement, for the period covered by the report, of--         



       ``(A) the total amount of transfers into funds available for that   

   activity;                                                               

       ``(B) the total amount of transfers from funds available for that   

   activity; and                                                           

       ``(C) the net amount of transfers into, or out of, funds available  

   for that activity.                                                      

       ``(2) A detailed explanation of the transfers into, and out of,     

   funds available for that activity during the period covered by the      

   report.                                                                 

     ``(d) Covered Budget Activity Defined.--In this section, the term    

  `covered budget activity' means each of the following:                  

       ``(1) The budget activity groups (known as `subactivities') within  

   the Operating Forces budget activity of the annual Operation and        

   Maintenance, Army, appropriation that are designated as follows:        

     ``(A) All subactivities under the category of Land Forces.            



     ``(B) Land Forces Depot Maintenance.                                  



     ``(C) Base Support.                                                   



     ``(D) Maintenance of Real Property.                                   



       ``(2) The Air Operations budget activity groups (known as           

   `subactivities') within the Operating Forces budget activity of the     

   annual Operation and Maintenance, Navy, appropriation that are          

   designated as follows:                                                  

     ``(A) Mission and Other Flight Operations.                            



     ``(B) Fleet Air Training.                                             



     ``(C) Aircraft Depot Maintenance.                                     



     ``(D) Base Support.                                                   



     ``(E) Maintenance of Real Property.                                   



       ``(3) The Ship Operations budget activity groups (known as          

   `subactivities') within the Operating Forces budget activity of the     

   annual Operation and Maintenance, Navy, appropriation that are          

   designated as follows:                                                  

     ``(A) Mission and Other Ship Operations.                              



     ``(B) Ship Operational Support and Training.                          



     ``(C) Ship Depot Maintenance.                                         



     ``(D) Base Support.                                                   



     ``(E) Maintenance of Real Property.                                   



       ``(4) The Expeditionary Forces budget activity groups (known as     

   `subactivities') within the Operating Forces budget activity of the     

   annual Operation and Maintenance, Marine Corps, appropriation that are  

   designated as follows:                                                  

     ``(A) Operational Forces.                                             



     ``(B) Depot Maintenance.                                              



     ``(C) Base Support.                                                   



     ``(D) Maintenance of Real Property.                                   



       ``(5) The Air Operations and Combat Related Operations budget       

   activity groups (known as `subactivities') within the Operating Forces  

   budget activity of the annual Operation and Maintenance, Air Force,     

   appropriation that are designated as follows:                           

     ``(A) Primary Combat Forces.                                          



     ``(B) Primary Combat Weapons.                                         



     ``(C) Air Operations Training.                                        



     ``(D) Depot Maintenance.                                              



     ``(E) Base Support.                                                   



     ``(F) Maintenance of Real Property.                                   



       ``(6) The Mobility Operations budget activity group (known as a     

   `subactivity') within the Mobilization budget activity of the annual    

   Operation and Maintenance, Air Force, appropriation that is designated  

   as Airlift Operations.                                                  

     ``(e) Termination.--The requirements specified in subsections (a) and

  (b) shall terminate upon the submission of the annual report under      

  subsection (a) covering fiscal year 2000.''.                            



     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``483. Reports on transfers from high-priority readiness          

      appropriations.''.                                                      



          SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.                          



     (a) Annual Report Required.--(1) Chapter 23 of title 10, United      

  States Code, is amended by inserting after section 483, as added by     

  section 323, the following new section:                                 

          ``484. Annual report on aircraft inventory                              





     ``(a) Annual Report.--The Under Secretary of Defense (Comptroller)   

  shall submit to Congress each year a report on the aircraft in the      

  inventory of the Department of Defense. The Under Secretary shall submit

  the report when the President submits the budget to Congress under      

  section 1105(a) of title 31.                                            

     ``(b) Content.--The report shall set forth, in accordance with       

  subsection (c), the following information:                              

     ``(1) The total number of aircraft in the inventory.                  



       ``(2) The total number of the aircraft in the inventory that are    

   active, stated in the following categories (with appropriate            

   subcategories for mission aircraft, training aircraft, dedicated test   

   aircraft, and other aircraft):                                          

     ``(A) Primary aircraft.                                               



     ``(B) Backup aircraft.                                                



     ``(C) Attrition and reconstitution reserve aircraft.                  



       ``(3) The total number of the aircraft in the inventory that are    

   inactive, stated in the following categories:                           

     ``(A) Bailment aircraft.                                              



     ``(B) Drone aircraft.                                                 



     ``(C) Aircraft for sale or other transfer to foreign governments.     



     ``(D) Leased or loaned aircraft.                                      



     ``(E) Aircraft for maintenance training.                              



     ``(F) Aircraft for reclamation.                                       



     ``(G) Aircraft in storage.                                            



       ``(4) The aircraft inventory requirements approved by the Joint     

   Chiefs of Staff.                                                        

     ``(c) Display of Information.--The report shall specify the          

  information required by subsection (b) separately for the active        

  component of each armed force and for each reserve component of each    

  armed force and, within the information set forth for each such         

  component, shall specify the information separately for each type,      

  model, and series of aircraft provided for in the future-years defense  

  program submitted to Congress.''.                                       

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 483, as added by section

  323, the following new item:                                            





      ``484. Report on aircraft inventory.''.                                 







     (b) Special Submission Date for First Report.--The Under Secretary of

  Defense (Comptroller) shall submit the first report required under      

  section 484 of title 10, United States Code (as added by subsection     

  (a)), not later than January 30, 1998.                                  

     (c) Modification of Budget Data Exhibits.--The Under Secretary of    

  Defense (Comptroller) shall ensure that aircraft budget data exhibits of

  the Department of Defense that are submitted to Congress display total  

  numbers of active aircraft where numbers of primary aircraft or primary 

  authorized aircraft are displayed in those exhibits.                    



                    SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY 

          TRAINING OR OTHER READINESS ACTIVITIES.                                 

     (a) Congressional Notification.--Chapter 101 of title 10, United     

  States Code, is amended by adding at the end the following new section: 

                    ``2014. Administrative actions adversely affecting military   

          training or other readiness activities                                  

     ``(a) Congressional Notification.--Whenever an official of an        

  Executive agency takes or proposes to take an administrative action     

  that, as determined by the Secretary of Defense                         



                    in consultation with the Chairman of the Joint Chiefs of      

          Staff, affects training or any other readiness activity in a manner that

          has or would have a significant adverse effect on the military readiness

          of any of the armed forces or a critical component thereof, the         

          Secretary shall submit a written notification of the action and each    

          significant adverse effect to the head of the Executive agency taking or

          proposing to take the administrative action. At the same time, the      

          Secretary shall transmit a copy of the notification to the President,   

          the Committee on Armed Services of the Senate, and the Committee on     

          National Security of the House of Representatives.                      

     ``(b) Notification To Be Prompt.--(1) Subject to paragraph (2), the  

  Secretary shall submit a written notification of an administrative      

  action or proposed administrative action required by subsection (a) as  

  soon as possible after the Secretary becomes aware of the action or     

  proposed action.                                                        

     ``(2) The Secretary shall prescribe policies and procedures to ensure

  that the Secretary receives information on an administrative action or  

  proposed administrative action described in subsection (a) promptly     

  after Department of Defense personnel receive notice of such an action  

  or proposed action.                                                     

     ``(c) Consultation Between Secretary and Head of Executive           

  Agency.--Upon notification with respect to an administrative action or  

  proposed administrative action under subsection (a), the head of the    

  Executive agency concerned shall--                                      

     ``(1) respond promptly to the Secretary; and                          



       ``(2) consistent with the urgency of the training or readiness      

   activity involved and the provisions of law under which the             

   administrative action or proposed administrative action is being taken, 

   seek to reach an agreement with the Secretary on immediate actions to   

   attain the objective of the administrative action or proposed           

   administrative action in a manner which eliminates or mitigates the     

   adverse effects of the administrative action or proposed administrative 

   action upon the training or readiness activity.                         

     ``(d) Moratorium.--(1) Subject to paragraph (2), upon notification   

  with respect to an administrative action or proposed administrative     

  action under subsection (a), the administrative action or proposed      

  administrative action shall cease to be effective with respect to the   

  Department of Defense until the earlier of--                            

       ``(A) the end of the five-day period beginning on the date of the   

   notification; or                                                        

       ``(B) the date of an agreement between the head of the Executive    

   agency concerned and the Secretary as a result of the consultations     

   under subsection (c).                                                   

     ``(2) Paragraph (1) shall not apply with respect to an administrative

  action or proposed administrative action if the head of the Executive   

  agency concerned determines that the delay in enforcement of the        

  administrative action or proposed administrative action will pose an    

  actual threat of an imminent and substantial endangerment to public     

  health or the environment.                                              

     ``(e) Effect of Lack of Agreement.--(1) If the head of an Executive  

  agency and the Secretary do not enter into an agreement under subsection

  (c)(2), the Secretary shall submit a written notification to the        

  President who shall take final action on the matter.                    

     ``(2) Not later than 30 days after the date on which the President   

  takes final action on a matter under paragraph (1), the President shall 

  submit to the committees referred to in subsection (a) a notification of

  the action.                                                             

     ``(f) Limitation on Delegation of Authority.--The head of an         

  Executive agency may not delegate any responsibility under this section.

     ``(g) Definition.--In this section, the term `Executive agency' has  

  the meaning given such term in section 105 of title 5, except that the  

  term does not include the General Accounting Office.''.                 

     (b) Clerical Amendment.--The table of sections of the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``2014. Administrative actions adversely affecting military       

      training or other readiness activities.''.                              



          SEC. 326. COMMON MEASUREMENT OF OPERATIONS TEMPO AND PERSONNEL TEMPO.   



     (a) Means for Measurement.--The Chairman of the Joint Chiefs of Staff

  shall, to the maximum extent practicable, develop (1) a common means of 

  measuring the operations tempo (OPTEMPO) of each of the Armed Forces,   

  and (2) a common means of measuring the personnel tempo (PERSTEMPO) of  

  each of the Armed Forces. The Chairman shall consult with the other     

  members of the Joint Chiefs of Staff in developing those common means of

  measurement.                                                            

     (b) Perstempo Measurement.--The measurement of personnel tempo       

  developed by the Chairman shall include a means of identifying the rate 

  of deployment for individual members of the Armed Forces in addition to 

  the rate of deployment for units.                                       



                    SEC. 327. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS         

          OPERATION AND MAINTENANCE BUDGET LINE ITEMS.                            

     For fiscal year 1999 and each fiscal year thereafter, Air Force      

  depot-level maintenance of materiel shall be displayed as one or more   

  separate line items under each subactivity within the authorization     

  request for operation and maintenance, Air Force, in the proposed budget

  for that fiscal year submitted to Congress pursuant to section 1105 of  

  title 31, United States Code.                                           



          SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.     



     (a) Prohibition.--The Secretary of a military department may not     

  implement, or be required to implement, a new readiness system for units

  of the Armed Forces (as outlined in sections 329 and 330), under which a

  military unit would be categorized into one of several categories (known

  as ``tiers'') according to the likelihood that the unit will be required

  to respond to a military conflict and the time in which the unit will be

  required to respond, if that system would have the effect of changing   

  the methods used as of October 1, 1996, by the Armed Forces under the   

  jurisdiction of that Secretary for determining the priorities for       

  allocating to such military units funding, personnel, equipment,        

  equipment maintenance, and training resources, and the associated levels

  of readiness of those units that result from those priorities.          

     (b) Report to Congress Requesting Waiver.--If the Secretary of       

  Defense determines, following the review required by sections 329 and   

  330 (or any similar review), that implementation for one or more of the 

  Armed Forces of a tiered readiness system that is prohibited by         

  subsection (a) would be in the national security interests of the United

  States, the Secretary shall submit to Congress a report setting forth   

  that determination, together with the rationale for that determination, 

  and a request for the enactment of legislation to allow implementation  

  of such a system.                                                       

     (c) Rule of Construction.--Nothing in subsection (a) is intended to  

  preclude the Secretary of Defense from taking necessary actions to      

  maintain the combat preparedness of the active and reserve components of

  the Armed Forces.                                                       



          SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED FORCES.



     (a) Requirement for Report.--Not later than January 31, 1998, the    

  Chairman of the Joint Chiefs of Staff shall submit to the congressional 

  defense committees a report on the military readiness requirements of   

  the active and reserve components of the Armed Forces (including combat 

  units, combat support units, and combat service support units). The     

  report shall assess such requirements under a tiered readiness and      

  response system that categorizes a given unit according to the          

  likelihood that it will be required to respond to a military conflict   

  and the time within which it will be required to respond.               

     (b) Preparation by JCS and Commanders of Unified Commands.--The      

  report required by subsection (a) shall be prepared jointly by the      

  Chairman of the Joint Chiefs of Staff, the Chief of Staff of the Army,  

  the Chief of Naval Operations, the Chief of Staff of the Air Force, the 

  Commandant of the Marine Corps, the commander of the Special Operations 

  Command, and the commanders of the other unified commands.              

     (c) Assessment Scenario.--The report shall assess readiness          

  requirements in a scenario that is based on the following assumptions:  

     (1) That the Armed Forces of the United States must be capable of--   



       (A) fighting and winning, in concert with allies, two major theater 

   wars nearly simultaneously; and                                         

     (B) deterring or defeating a strategic attack on the United States.   



       (2) That the forces available for deployment are the forces included

   in the force structure recommended in the Quadrennial Defense Review,   

   including all other planned force enhancements.                         

     (d) Assessment Elements.--(1) The report shall identify, by unit     

  type, all major units of the active and reserve components of the Armed 

  Forces and assess the readiness requirements of the units. Each         

  identified unit shall be categorized within one of the following        

  classifications:                                                        

       (A) Forward-deployed and crisis response forces, or ``Tier I''      

   forces, that possess limited internal sustainment capability and do not 

   require immediate access to regional air bases or ports or overflight   

   rights, including the following:                                        

       (i) Force units that are deployed in rotation at sea or on land     

   outside the United States.                                              

       (ii) Combat-ready crises response forces that are capable of        

   mobilizing and deploying within 10 days after receipt of orders.        

       (iii) Forces that are supported by prepositioning equipment afloat  

   or are capable of being inserted into a theater upon the capture of a   

   port or airfield by forcible entry forces.                              

       (B) Combat-ready follow-on forces, or ``Tier II'' forces, that can  

   be mobilized and deployed to a theater within approximately 60 days     

   after receipt of orders.                                                



       (C) Combat-ready conflict resolution forces, or ``Tier III'' forces,

   that can be mobilized and deployed to a theater within approximately 180

   days after receipt of orders.                                           

       (D) All other active and reserve component force units which are not

   categorized within a classification described in subparagraph (A), (B), 

   or (C).                                                                 

     (2) For the purposes of paragraph (1), the following units are major 

  units:                                                                  

       (A) In the case of the Army or Marine Corps, a brigade and a        

   battalion.                                                              

       (B) In the case of the Navy, a squadron of aircraft, a ship, and a  

   squadron of ships.                                                      

     (C) In the case of the Air Force, a squadron of aircraft.             



     (e) Projection of Savings for Use for Modernization.--The report     

  shall include a projection for fiscal years 1998 through 2003 of the    

  amounts of the savings in operation and maintenance funding that--      

       (1) could be derived by each of the Armed Forces by placing as many 

   units as is practicable into the lower readiness categories among the   

   tiers; and                                                              

     (2) could be made available for force modernization.                  



     (f) Form of Report.--The report under this section shall be submitted

  in unclassified form, but may contain a classified annex.               

     (g) Planned Force Enhancement Defined.--In this section, the term    

  ``planned force enhancement'', with respect to the force structure      

  recommended in the Quadrennial Defense Review, means any future         

  improvement in the capability of the force (including current strategic 

  and future improvement in strategic lift capability) that is assumed in 

  the development of the recommendation for the force structure set forth 

  in the Quadrennial Defense Review.                                      



          SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES. 



     (a) Requirement.--(1) Not later than 120 days after the date of the  

  enactment of this Act, the Secretary of Defense shall submit to Congress

  a report on the readiness posture of the Armed Forces described in      

  subsection (b).                                                         

     (2) The Secretary shall prepare the report required under paragraph  

  (1) with the assistance of the Joint Chiefs of Staff. In providing such 

  assistance, the Chairman of the Joint Chiefs of Staff shall consult with

  the Chief of the National Guard Bureau.                                 

     (b) Readiness Posture.--(1) The readiness posture to be covered by   

  the report under subsection (a) is a readiness posture for units of the 

  Armed Forces, or for designated units of the Armed Forces, that provides

  for a rotation of such units between a state of high readiness and a    

  state of low readiness.                                                 

     (2) As part of the evaluation of the readiness posture described in  

  paragraph (1), the report shall address in particular a readiness       

  posture that--                                                          

       (A) establishes within the Armed Forces two equivalent forces each  

   structured so as to be capable of fighting and winning a major theater  

   war; and                                                                

       (B) provides for an alternating rotation of such forces between a   

   state of high readiness and a state of low readiness.                   

     (3) The evaluation of the readiness posture described in paragraph   

  (2) shall be based upon assumptions permitting comparison with the      

  existing force structure as follows:                                    

       (A) That there are assembled from among the units of the Armed      

   Forces two equivalent forces each structured so as to be capable of     

   fighting and winning a major theater war.                               

     (B) That each force referred to in subparagraph (A) includes--        



       (i) four active Army divisions, including one mechanized division,  

   one armored division, one light infantry division, and one division     

   combining airborne units and air assault units, and appropriate support 

   and service support units for such divisions;                           

       (ii) six divisions (or division equivalents) of the Army National   

   Guard or the Army Reserve that are essentially equivalent in structure, 

   and appropriate support and service support units for such divisions;   

     (iii) six aircraft carrier battle groups;                             



     (iv) six active Air Force fighter wings (or fighter wing equivalents);



       (v) four Air Force reserve fighter wings (or fighter wing           

   equivalents); and                                                       

     (vi) one active Marine Corps expeditionary force.                     



       (C) That each force may be supplemented by critical units or units  

   in short supply, including heavy bomber units, strategic lift units, and

   aerial reconnaissance units, that are not subject to the readiness      

   rotation otherwise assumed for purposes of the evaluation or are subject

   to the rotation on a modified basis.                                    

       (D) That units of the Armed Forces not assigned to a force are      

   available for operations other than those essential to fight and win a  

   major theater war, including peace operations.                          

       (E) That the state of readiness of each force alternates between a  

   state of high readiness and a state of low readiness on a frequency     

   determined by the Secretary (but not more often than once every six     

   months) and with only one force at a given state of readiness at any one

   time.                                                                   

       (F) That, during the period of state of high readiness of a force,  

   any operations or activities (including leave and education and training

   of personnel) that detract from the near-term wartime readiness of the  

   force are temporary and their effects on such state of readiness        

   minimized.                                                              

       (G) That units are assigned overseas during the period of state of  

   high readiness of the force to which the units are assigned primarily on

   a temporary duty basis.                                                 

       (H) That, during the period of high readiness of a force, the       

   operational war plans for the force incorporate the divisions (or       

   division equivalents) of the Army Reserve or Army National Guard        

   assigned to the force in a manner such that one such division (or       

   division equivalent) is, on a rotating basis for such divisions (or     

   division equivalents)                                                   



                    during the period, maintained in a high state of readiness and

          dedicated as the first reserve combat division to be transferred        

          overseas in the event of a major theater war.                           

     (c) Report Elements.--The report under this section shall include the

  following elements for the readiness posture described in subsection    

  (b)(2):                                                                 

       (1) An estimate of the range of cost savings achievable over the    

   long term as a result of implementing the readiness posture, including--

       (A) the savings achievable from reduced training levels and         

   readiness levels during periods in which a force referred to in         

   subsection (b)(3)(A) is in a state of low readiness; and                

       (B) the savings achievable from reductions in costs of              

   infrastructure overseas as a result of reduced permanent change of      

   station rotations.                                                      

       (2) An assessment of the potential risks associated with a lower    

   readiness status for units assigned to a force in a state of low        

   readiness under the readiness posture, including the risks associated   

   with the delayed availability of such units overseas in the event of two

   nearly simultaneous major theater wars.                                 

       (3) An assessment of the potential risks associated with requiring  

   the forces under the readiness posture to fight a major war in any      

   theater worldwide.                                                      

       (4) An assessment of the modifications of the current force         

   structure of the Armed Forces that are necessary to achieve the range of

   cost savings estimated under paragraph (1), including the extent of the 

   diminishment, if any, of the military capabilities of the Armed Forces  

   as a result of the modifications.                                       

       (5) An assessment whether or not the risks of diminished military   

   capability associated with implementation of the readiness posture      

   exceed the risks of diminished military capability associated with the  

   modifications of the current force structure necessary to achieve cost  

   savings equivalent to the best case for cost savings resulting from the 

   implementation of the readiness posture.                                

     (d) Form of Report.--The report under this section shall be submitted

  in unclassified form, but may contain a classified annex.               

    (e)  Definitions.--In this section:                                   



       (1) The term ``state of high readiness'', in the case of a military 

   force, means the capability to mobilize first-to-arrive units of the    

   force within 18 hours and last-to-arrive units within 120 days of a     

   particular event.                                                       

       (2) The term ``state of low readiness'', in the case of a military  

   force, means the capability to mobilize first-to-arrive units within 90 

   days and last-to-arrive units within 180 days of a particular event.    



                    SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER CERTAIN

          TRAINING EXERCISES PROGRAMS                                             

     (a) Report.--Not later than February 16, 1998, the Secretary of      

  Defense shall submit to the Committee on Armed Services of the Senate   

  and the Committee on National Security of the House of Representatives a

  report on the military exercises conducted by the Department of Defense 

  during fiscal years 1995, 1996, and 1997 and the military exercises     

  planned to be conducted during fiscal years 1998, 1999, and 2000, under 

  the following training exercises programs:                              

     (1) The program known as the ``CJCS Exercise Program''.               



     (2) The program known as the ``Partnership for Peace program``.       



     (3) The Cooperative Threat Reduction programs.                        



     (b) Information on Exercises Conducted or To Be Conducted.--The      

  report under subsection (a) shall include the following information for 

  each exercise included in the report, which shall be set forth by fiscal

  year and shown within the fiscal year by the sponsoring command:        

     (1) Name of the exercise.                                             





     (2) Type, description, duration, and objectives of the exercise.      



       (3) Participating units, including the number of personnel          

   participating in each unit.                                             

       (4) For each participating unit, the percentage of the tasks on that

   unit's specification of tasks (known as a mission essential task list)  

   or a comparable specification (in the case of any of the Armed Forces   

   not maintaining a mission essential task list designation) that were    

   performed or are scheduled to be performed as part of the exercise.     

       (5) The cost of the exercise paid or to be paid out of funds        

   available to the Chairman of the Joint Chiefs of Staff and the cost to  

   each of the Armed Forces participating in the exercise, with a          

   description of the categories of activities for which those costs are   

   incurred in each such case.                                             

       (6) In the case of each planned exercise, the priority of the       

   exercise in relation to all other exercises planned by the sponsoring   

   command to be conducted during that fiscal year.                        

       (7) In the case of an exercise conducted or to be conducted in a    

   foreign country or with military personnel of a foreign country, the    

   military forces of the foreign country that participated or will        

   participate in the exercise.                                            

    (c)  Assessment.--The report under subsection (a) shall include--     



       (1) an assessment of the ability of each of the Armed Forces to meet

   requirements of the training exercises programs specified in subsection 

   (a);                                                                    

       (2) an assessment of the training value of each exercise covered in 

   the report to each unit of the Armed Forces participating in the        

   exercise, including for each such unit an assessment of the value of the

   percentage under subsection (b)(4) as an indicator of the training value

   of the exercise for that unit;                                          

       (3) options to minimize the negative effects on operational and     

   personnel tempo resulting from the training exercises programs; and     

       (4) in the case of exercises to be conducted in a foreign country or

   with military personnel of a foreign country--                          

       (A) an assessment of the training value of each exercise covered in 

   the report to the foreign countries involved and the extent to which the

   exercise enhances the readiness capabilities of all military forces     

   involved in the exercise (both United States and foreign); and          

       (B) an assessment of the benefits to be derived through enhanced    

   military-to-military relationships between the United States and foreign

   countries.                                                              

     (d) Funding Limitation Pending Receipt of Report.--Of the funds      

  available for fiscal year 1998 for the conduct of the CJCS Exercise     

  Program, not more than 90 percent may be expended before the date on    

  which the report required under subsection (a) is submitted.            



          SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.                               



     (a) Report.--Not later than 90 days after the date of the enactment  

  of this Act, the Secretary of Defense shall submit to Congress a report 

  on the deployments overseas of members of the Armed Forces (other than  

  the Coast Guard). The report shall describe the deployments as of June  

  30, 1996, and as of June 30, 1997.                                      

     (b) Elements.--The report shall include the following, shown as of   

  each date specified in subsection (a) and shown for the Armed Forces in 

  the aggregate and separately for each of the Armed Forces:              

       (1) The number of military personnel deployed overseas pursuant to a

   permanent duty assignment, shown in the aggregate and by country or     

   ocean to which deployed.                                                

       (2) The number of military personnel deployed overseas pursuant to a

   temporary duty assignment, including--                                  

       (A) the number engaged in training with units of a single military  

   department;                                                             



     (B) the number engaged in United States military joint exercises; and 



     (C) the number engaged in training with allied units.                 



       (3) The number of military personnel deployed overseas who were     

   engaged in contingency operations (including peacekeeping or            

   humanitarian assistance missions) or other activities (other than those 

   personnel covered by paragraphs (1) and (2)).                           

           Subtitle C--Environmental Provisions                                    



                    SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC          

          ENVIRONMENTAL RESEARCH AND DEVELOPMENT PROGRAM SCIENTIFIC ADVISORY      

          BOARD.                                                                  

     Section 2904(b)(4) of title 10, United States Code, is amended by    

  striking out ``three'' and inserting in lieu thereof ``not less than two

  and not more than four''.                                               



                    SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS    

          WITH OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY              

          CERTIFICATION.                                                          

     (a) Authority To Enter Into Agreements With Indian Tribes.--Section  

  327 of the National Defense Authorization Act for Fiscal Year 1997      

  (Public Law 104 201; 110 Stat. 2483; 10 U.S.C. 2702 note) is amended--  

       (1) in subsection (a), by inserting ``, or with an Indian tribe,''  

   after ``with an agency of a State or local government'';                

     (2) by redesignating subsection (e) as subsection (f); and            



     (3) by inserting after subsection (d) the following new subsection:   



     ``(e) Definition.--In this section, the term `Indian tribe' has the  

  meaning given that term by section 101(36) of the Comprehensive         

  Environmental Response, Compensation, and Liability Act of 1980 (42     

  U.S.C. 9601(36)).''.                                                    

     (b) Elimination of Certain Limitation on Authority.--Subsection      

  (b)(1) of such section is amended by striking out ``in carrying out its 

  environmental restoration activities''.                                 

     (c) Additional Report Information.--Subsection (d) of such section is

  amended by adding at the end the following:                             

       ``(5) A statement of the funding that will be required to meet      

   commitments made to State and local governments and Indian tribes under 

   such agreements entered into during the fiscal year preceding the fiscal

   year in which the report is submitted.                                  

       ``(6) A description of any cost-sharing arrangement under any such  

   agreements.''.                                                          

     (d) Guidelines for Reimbursement and Cost-Sharing.--Not later than 90

  days after the date of enactment of this Act, the Secretary of Defense  

  shall submit to Congress a report setting forth the guidelines          

  established by the Secretary for reimbursement of State and local       

  governments, and for cost-sharing between the Department of Defense,    

  such governments, and vendors, under cooperative agreements entered into

  under such section 327.                                                 

     (e) Effective Date.--The amendments made by this section shall take  

  effect 30 days after the date on which the report required by subsection

  (d) is submitted to Congress.                                           



                    SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF  

          NONDEFENSE TOXIC AND HAZARDOUS MATERIALS.                               

     (a) Storage of Materials Owned by Members and Dependents.--Subsection

  (a)(1) of section 2692 of title 10, United States Code, is amended by   

  striking out ``by the Department of Defense.'' and inserting in lieu    

  thereof the following: ``either by the Department of Defense or by a    

  member of the armed forces (or a dependent of the member) assigned to or

  provided military housing on the installation.''.                       

     (b) Additional Authority.--Subsection (b) of such section is         

  amended--                                                               

       (1) by redesignating paragraphs (1) through (9) as paragraphs (2)   

   through (10), respectively; and                                         



       (2) by inserting before paragraph (2) (as so redesignated) the      

   following new paragraph (1):                                            

       ``(1) the storage, treatment, or disposal of materials that will be 

   or have been used in connection with an activity of the Department of   

   Defense or in connection with a service to be performed on an           

   installation of the Department for the benefit of the Department;''.    



     (c) Storage and Disposal of Explosives To Assist Law Enforcement     

  Agencies.--Subsection (b) of such section is amended in paragraph (3)   

  (as redesignated by subsection (b))--                                   

       (1) by striking out ``Federal law enforcement'' and inserting in    

   lieu thereof ``Federal, State, or local law enforcement''; and          

       (2) by striking out ``Federal agency'' and inserting in lieu thereof

   ``Federal, State, or local agency''.                                    



     (d) Storage of Material in Connection With Authorized and Compatible 

  Use of a Defense Facility.--Subsection (b) of such section is amended in

  paragraph (9) (as redesignated by subsection (b))--                     

       (1) by striking out ``by a private person in connection with the    

   authorized and compatible use by that person of an industrial-type'' and

   inserting in lieu thereof ``in connection with the authorized and       

   compatible use of a''; and                                              

       (2) by striking out ``; and'' at the end and inserting in lieu      

   thereof the following: ``, including the use of such a facility for     

   testing materiel or training personnel;''.                              



     (e) Treatment and Disposal of Material in Connection With Authorized 

  and Compatible Use of a Defense Facility.--Subsection (b) of such       

  section is amended in paragraph (10) (as redesignated by subsection     

  (b))--                                                                  

       (1) by striking out ``by a private person in connection with the    

   authorized and compatible commercial use by that person of an           

   industrial-type'' and inserting in lieu thereof ``in connection with the

   authorized and compatible use of a'';                                   

       (2) by striking out ``with that person'' and inserting in lieu      

   thereof ``or agreement with the prospective user'';                     

       (3) by striking out ``for that person's'' in subparagraph (B) and   

   inserting in lieu thereof ``for the prospective user's''; and           

       (4) by striking out the period at the end and inserting in lieu     

   thereof ``; and''.                                                      



     (f) Storage of Material in Connection With Space Launch              

  Facilities.--Subsection (b) of such section is further amended by adding

  at the end the following new paragraph:                                 

       ``(11) the storage of any material that is not owned by the         

   Department of Defense if the Secretary of the military department       

   concerned determines that the material is required or generated in      

   connection with the use of a space launch facility located on an        

   installation of the Department of Defense or on other land controlled by

   the United States.''.                                                   



     (g) Technical Amendments.--(1) Subsection (a)(1) of such section is  

  further amended by striking out ``storage'' and inserting in lieu       

  thereof ``storage, treatment,''.                                        

    (2) The heading for such section is amended to read as follows:       



                    ``2692. Storage, treatment, and disposal of nondefense toxic  

          and hazardous materials''.                                              



     (3) The item relating to such section in the table of sections at the

  beginning of chapter 159 of such title is amended to read as follows:   





            ``2692. Storage, treatment, and disposal of nondefense toxic and  

      hazardous materials.''.                                                 





     (h) Savings Clause.--Nothing in the amendments made by this section  

  is intended to modify environmental laws or laws relating to the siting 

  of facilities.                                                          



                    SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE

          TO FINES AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.               

     (a) Annual Reports.--Section 2706(b)(2) of title 10, United States   

  Code, is amended by adding at the end the following:                    

       ``(H) A statement of the fines and penalties imposed or assessed    

   against the Department of Defense under Federal, State, or local        

   environmental law during the fiscal year preceding the fiscal year in   

   which the report is submitted, setting forth each Federal environmental 

   statute under which a fine or penalty was imposed or assessed during the

   fiscal year, and, with respect to each such statute--                   

       ``(i) the aggregate amount of fines and penalties imposed or        

   assessed during the fiscal year;                                        

       ``(ii) the aggregate amount of fines and penalties paid during the  

   fiscal year;                                                            

       ``(iii) the total amount required for environmental projects to be  

   carried out by the Department of Defense in lieu of the payment of fines

   or penalties; and                                                       

       ``(iv) the number of fines and penalties imposed or assessed during 

   the fiscal year that were--                                             

     ``(I) $100,000 or less; and                                           



     ``(II) more than $100,000.''.                                         



     (b) Report in Fiscal Year 1998.--The statement submitted by the      

  Secretary of Defense under subparagraph (H) of section 2706(b)(2) of    

  title 10, United States Code, as added by subsection (a), in 1998 shall,

  to the maximum extent practicable, include the information required by  

  that subparagraph for each of fiscal years 1994 through 1997.           

                    SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE    

          DEPARTMENT OF DEFENSE OVERSEAS.                                         

    Section 2706 of title 10, United States Code, is amended--            



     (1) by redesignating subsection (d) as subsection (e); and            



       (2) by inserting after subsection (c) the following new subsection  

   (d):                                                                    

     ``(d) Report on Environmental Activities Overseas.--(1) The Secretary

  of Defense shall submit to Congress each year, not later than 30 days   

  after the date on which the President submits to Congress the budget for

  a fiscal year, a report on the environmental activities of the          

  Department of Defense overseas.                                         

     ``(2) Each such report shall include a statement of the funding      

  levels during such fiscal year for each of the following categories:    

       ``(A) Compliance by the Department of Defense with requirements     

   under a treaty, law, contract, or other agreement for environmental     

   restoration or compliance activities.                                   

       ``(B) Performance by the Department of Defense of other             

   environmental restoration and compliance activities overseas.           

       ``(C) Performance by the Department of Defense of any other overseas

   activities related to the environment, including conferences, meetings, 

   and studies for pilot programs, and travel related to such              

   activities.''.                                                          

                    SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE

          PRESENCE OF THE ARMED FORCES IN BERMUDA.                                

     Not later than 120 days after the date of enactment of this Act, the 

  Secretary of Defense shall submit to the congressional defense          

  committees a report on any remaining environmental effects of the       

  presence of the Armed Forces of the United States in Bermuda.           

                    SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES    

          ARMED FORCES ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.          

     (a) Sense of Congress.--It is the sense of Congress that members of  

  the Army, Navy, Air Force, and Marine Corps should not be deployed      

  outside the United States to provide assistance to another nation in    

  connection with environmental preservation activities in that nation,   

  unless the Secretary of                                                 



                     Defense determines that such activities are necessary for    

          national security purposes.                                             

     (b) Scope of Section.--For purposes of this section, environmental   

  preservation activities do not include any of the following:            

       (1) Activities undertaken for humanitarian purposes, disaster relief

   activities, peacekeeping activities, or operational training activities.

       (2) Environmental compliance and restoration activities associated  

   with military installations and deployments outside the United States.  

                    SEC. 348. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL      

          RESTORATION AT DEPARTMENT OF DEFENSE SITES.                             

     (a) Regulations.--Not later than March 1, 1998, the Secretary of     

  Defense shall prescribe regulations containing the guidelines and       

  requirements described in subsections (b) and (c).                      

     (b) Guidelines.--(1) The regulations prescribed under subsection (a) 

  shall contain uniform guidelines for the military departments and       

  defense agencies concerning the cost-recovery and cost-sharing          

  activities of those departments and agencies.                           

     (2) The Secretary shall take appropriate actions to ensure the       

  implementation of the guidelines.                                       

     (c) Requirements.--The regulations prescribed under subsection (a)   

  shall contain requirements for the Secretaries of the military          

  departments and the heads of defense agencies to--                      

       (1) obtain all data that is relevant for purposes of cost-recovery  

   and cost-sharing activities; and                                        

       (2) identify any negligence or other misconduct that may preclude   

   indemnification or reimbursement by the Department of Defense for the   

   costs of environmental restoration at a Department site or justify the  

   recovery or sharing of costs associated with such restoration.          

     (d) Definition.--In this section, the term ``cost-recovery and       

  cost-sharing activities'' means activities concerning--                 

       (1) the recovery of the costs of environmental restoration at       

   Department of Defense sites from contractors of the Department and other

   private parties that contribute to environmental contamination at such  

   sites; and                                                              

       (2) the sharing of the costs of such restoration with such          

   contractors and parties.                                                



                    SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE           

          ENVIRONMENTAL TECHNOLOGIES.                                             

     (a) Authority.--Subject to subsection (b), the Secretary of Defense  

  may enter into a partnership with one or more private entities to       

  demonstrate and validate innovative environmental technologies.         

     (b) Limitations.--The Secretary of Defense may enter into a          

  partnership with respect to an environmental technology under subsection

  (a) only if--                                                           

       (1) any private entities participating in the partnership are       

   selected through the use of competitive procedures;                     

       (2) the partnership provides for parties other than the Department  

   of Defense to provide at least 50 percent of the funding required (not  

   including in-kind contributions or preexisting investments); and        

     (3) the Secretary determines that--                                   



       (A) the technology has clear potential to be of significant value to

   the Department of Defense in its environmental remediation activities at

   a substantial number of Department of Defense sites; and                

       (B) the technology would not be developed without the commitment of 

   Department of Defense funds.                                            

     (c) Evaluation Guidelines.--Before entering into a partnership with  

  respect to an environmental technology under subsection (a), the        

  Secretary of Defense shall give consideration to the following:         

       (1) The potential for the technology to be used by the Department of

   Defense for environmental remediation.                                  

     (2) The technical feasibility and maturity of the technology.         





       (3) The adequacy of financial and management plans to demonstrate   

   and validate the technology.                                            

       (4) The costs and benefits to the Department of Defense of          

   developing and using the technology.                                    

     (5) The potential for commercialization of the technology.            



       (6) The proposed arrangements for sharing the costs of the          

   partnership through the use of resources outside the Department of      

   Defense.                                                                



     (d) Funding.--Under a partnership entered into under subsection (a), 

  the Secretary of Defense may provide funds to the partner or partners   

  from appropriations available to the Department of Defense for          

  environmental activities, for a period of up to five years.             

     (e) Report.--In the annual report required under section 2706(a) of  

  title 10, United States Code, the Secretary of Defense shall include the

  following information with respect to partnerships entered into under   

  this section:                                                           



     (1) The number of such partnerships.                                  



       (2) A description of the nature of the technology involved in each  

   such partnership.                                                       

     (3) A list of all partners in such partnerships.                      





     (f) Coordination.--The Secretary of Defense shall ensure that the    

  Department of Defense coordinates with the Administrator of the         

  Environmental Protection Agency in any verification sponsored by the    

  Department of technologies demonstrated and validated by a partnership  

  entered into under this section.                                        

     (g) Procedures.--The Secretary of Defense shall develop appropriate  

  procedures to ensure that all Department of Defense funds committed to a

  partnership entered into under this section are expended for the purpose

  authorized in the partnership agreement. The Secretary may not enter    

  into a partnership under this section until 30 days after the date on   

  which a copy of such procedures is provided to the Committee on Armed   

  Services of the Senate and the Committee on National Security of the    

  House of Representatives.                                               

     (h) Termination of Authority.--The authority to enter into agreements

  under subsection (a) shall terminate three years after the date of the  

  enactment of this Act.                                                  



          SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.                         



     (a) Procurement Requirements.--Chapter 140 of title 10, United States

  Code, is amended by adding at the end the following new section:        



                    ``2378. Procurement of copier paper containing specified      

          percentages of post-consumer recycled content                           

     ``(a) Procurement Requirement.--(1) Except as provided in subsections

  (b) and (c), a department or agency of the Department of Defense may not

  procure copying machine paper after the applicable date specified in    

  paragraph (2) unless the percentage of post-consumer recycled content of

  the paper meets the percentage then in effect under such paragraph.     

     ``(2) The percentage of post-consumer recycled content of paper      

  required under paragraph (1) is as follows:                             

     ``(A) 20 percent as of January 1, 1998.                               



     ``(B) 30 percent as of January 1, 1999.                               



     ``(C) 50 percent as of January 1, 2004.                               



     ``(b) Exceptions.--A department or agency of the Department of       

  Defense is not required to procure copying machine paper containing a   

  percentage of post-consumer recycled content that meets the applicable  

  requirement in subsection (a) if the Secretary concerned determines that

  one or more of the following circumstances apply with respect to that   

  procurement:                                                            

       ``(1) The cost of procuring copying machine paper satisfying the    

   applicable requirement significantly exceeds the cost of procuring      

   copying machine paper containing a percentage of post-consumer recycled 

   content that does not meet such requirement. The Secretary concerned    

   shall establish the cost differential to be applied under this          

   paragraph.                                                              

       ``(2) Copying machine paper containing a percentage of post-consumer

   recycled content meeting such requirement is not reasonably available   

   within a reasonable period of time.                                     

       ``(3) Copying machine paper containing a percentage of post-consumer

   recycled content meeting such requirement does not meet performance     

   standards of the department or agency for copying machine paper.        

     ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the case of  

  the requirement that will take effect on January 1, 2004, pursuant to   

  subsection (a)(2)(C), the requirement shall not take effect with respect

  to a military department or Defense Agency if the Secretary of Defense  

  determines that the department or agency will be unable to meet such    

  requirement by that date.                                               

     ``(2) The Secretary shall submit to Congress written notice of any   

  determination made under paragraph (1) and the reasons for the          

  determination. The Secretary shall submit such notice, if at all, not   

  later than January 1, 2003.                                             

     ``(d) Secretary Concerned Defined.--In this section, the term        

  `Secretary concerned' means the Secretary of each military department   

  and the Secretary of Defense with respect to the Defense Agencies.''.   



     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``2378. Procurement of copier paper containing specified          

      percentages of post-consumer recycled content.''.                       





                    SEC. 351. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION

          REDUCTION INCENTIVES.                                                   



     (a) Authority.--(1) The Secretary of Defense may, in consultation    

  with the Administrator of General Services, carry out a pilot program to

  assess the feasibility and advisability of the sale of economic         

  incentives for the reduction of emission of air pollutants attributable 

  to a facility of a military department.                                 

     (2) The Secretary may carry out the pilot program during the period  

  beginning on the date of the enactment of this Act and ending two years 

  after such date.                                                        



     (b) Incentives Available for Sale.--(1) Under the pilot program, the 

  Secretary may sell economic incentives for the reduction of emission of 

  air pollutants attributable to a facility of a military department only 

  if such incentives are not otherwise required for the activities or     

  operations of the military department.                                  

     (2) The Secretary may not, under the pilot program, sell economic    

  incentives attributable to the closure or realignment of a military     

  installation under a base closure law.                                  

     (3) If the Secretary determines that additional sales of economic    

  incentives are likely to result in amounts available for allocation     

  under subsection (c)(2) in a fiscal year in excess of the limitation set

  forth in subparagraph (B) of that subsection, the Secretary shall not   

  carry out such additional sales in that fiscal year.                    

     (c) Use of Proceeds.--(1) The proceeds of sale of economic incentives

  attributable to a facility of a military department shall be credited to

  the funds available to the facility for the costs of identifying,       

  quantifying, or valuing economic incentives for the reduction of        

  emission of air pollutants. The amount credited shall be equal to the   

  cost incurred in identifying, quantifying, or valuing the economic      

  incentives sold.                                                        

     (2)(A)(i) If after crediting under paragraph (1) a balance remains,  

  the amount of such balance shall be available to the Department of      

  Defense for allocation by the Secretary to the military departments for 

  programs, projects, and activities necessary for compliance with Federal

  environmental laws, including the purchase of economic incentives for   

  the reduction of emission of air pollutants.                            

     (ii) To the extent practicable, amounts allocated to the military    

  departments under this subparagraph shall be made available to the      

  facilities that generated the economic incentives providing the basis   

  for the amounts.                                                        

     (B) The total amount allocated under this paragraph in a fiscal year 

  from sales of economic incentives may not equal or exceed $500,000.     

     (3) If after crediting under paragraph (1) a balance remains in      

  excess of an amount equal to the limitation set forth in paragraph      

  (2)(B), the amount of the excess shall be covered over into the Treasury

  as miscellaneous receipts.                                              

     (4) Funds credited under paragraph (1) or allocated under paragraph  

  (2) shall be merged with the funds to which credited or allocated, as   

  the case may be, and shall be available for the same purposes and for   

  the same period as the funds with which merged.                         

    (d)  Definitions.--In this section:                                   



     (1) The term ``base closure law'' means the following:                



     (A) Section 2687 of title 10, United States Code.                     



       (B) Title II of the Defense Authorization Amendments and Base       

   Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687 note).  

       (C) The Defense Base Closure and Realignment Act of 1990 (part A of 

   title XXIX of Public Law 101 510; 10 U.S.C. 2687 note).                 

       (2) The term ``economic incentives for the reduction of emission of 

   air pollutants'' means any transferable economic incentives (including  

   marketable permits and emission rights) necessary or appropriate to meet

   air quality requirements under the Clean Air Act (42 U.S.C. 7401 et     

   seq.).                                                                  



           Subtitle D--Depot-Level Activities                                      



          SEC. 355.  DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.            



     (a) Depot-Level Maintenance and Repair Defined.--Chapter 146 of title

  10, United States Code, is amended by inserting before section 2461 the 

  following new section:                                                  

          ``2460. Definition of depot-level maintenance and repair                



     ``(a) In General.--In this chapter, the term `depot-level maintenance

  and repair' means (except as provided in subsection (b)) material       

  maintenance or repair requiring the overhaul, upgrading, or rebuilding  

  of parts, assemblies, or subassemblies, and the testing and reclamation 

  of equipment as necessary, regardless of the source of funds for the    

  maintenance or repair. The term includes (1) all aspects of software    

  maintenance classified by the Department of Defense as of July 1, 1995, 

  as depot-level maintenance and repair, and (2) interim contractor       

  support or contractor logistics support (or any similar contractor      

  support), to the extent that such support is for the performance of     

  services described in the preceding sentence.                           

     ``(b) Exceptions.--(1) The term does not include the procurement of  

  major modifications or upgrades of weapon systems that are designed to  

  improve program performance or the nuclear refueling of an aircraft     

  carrier. A major upgrade program covered by this exception could        

  continue to be performed by private or public sector activities.        

     ``(2) The term also does not include the procurement of parts for    

  safety modifications. However, the term does include the installation of

  parts for that purpose.''.                                              

     (b) Conforming Amendment.--Section 2469 of title 10, United States   

  Code, is amended in subsections (a) and (b), by striking out ``or       

  repair'' and inserting in lieu thereof ``and repair''.                  

     (c) Clerical Amendments.--(1) The table of sections at the beginning 

  of chapter 146 of title 10, United States Code, is amended by inserting 

  before the item relating to section 2461 the following new item:        





      ``2460. Definition of depot-level maintenance and repair.''.            







     (2) The tables of chapters at the beginning of subtitle A, and at the

  beginning of part IV of subtitle A, of such title are amended by        

  striking out the item relating to chapter 146 and inserting in lieu     

  thereof the following new item:                                         





                 ``146. Contracting for Performance of Civilian Commercial or   

        Industrial Type Functions                                               

        2460''.                                                                





          SEC. 356.  CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.        



     (a) In General.--Section 2464 of title 10, United States Code, is    

  amended to read as follows:                                             

          ``2464. Core logistics capabilities                                     



     ``(a) Necessity for Core Logistics Capabilities.--(1) It is essential

  for the national defense that the Department of Defense maintain a core 

  logistics capability that is Government-owned and Government-operated   

  (including Government personnel and Government-owned and                

  Government-operated equipment and facilities) to ensure a ready and     

  controlled source of technical competence and resources necessary to    

  ensure effective and timely response to a mobilization, national defense

  contingency situations, and other emergency requirements.               

     ``(2) The Secretary of Defense shall identify the core logistics     

  capabilities described in paragraph (1) and the workload required to    

  maintain those capabilities.                                            

     ``(3) The core logistics capabilities identified under paragraphs (1)

  and (2) shall include those capabilities that are necessary to maintain 

  and repair the weapon systems and other military equipment (including   

  mission-essential weapon systems or materiel not later than four years  

  after achieving initial operational capability, but excluding systems   

  and equipment under special access programs, nuclear aircraft carriers, 

  and commercial items described in paragraph (5)) that are identified by 

  the Secretary, in consultation with the Chairman of the Joint Chiefs of 

  Staff, as necessary to enable the armed forces                          



                    to fulfill the strategic and contingency plans prepared by the

          Chairman of the Joint Chiefs of Staff under section 153(a) of this      

          title.                                                                  

     ``(4) The Secretary of Defense shall require the performance of core 

  logistics workloads necessary to maintain the core logistics            

  capabilities identified under paragraphs (1), (2), and (3) at           

  Government-owned, Government-operated facilities of the Department of   

  Defense (including Government-owned, Government-operated facilities of a

  military department) and shall assign such facilities sufficient        

  workload to ensure cost efficiency and technical competence in peacetime

  while preserving the surge capacity and reconstitution capabilities     

  necessary to support fully the strategic and contingency plans referred 

  to in paragraph (3).                                                    

     ``(5) The commercial items covered by paragraph (3) are commercial   

  items that have been sold or leased in substantial quantities to the    

  general public and are purchased without modification in the same form  

  that they are sold in the commercial marketplace, or with minor         

  modifications to meet Federal Government requirements.                  

     ``(b) Limitation on Contracting.--(1) Except as provided in paragraph

  (2), performance of workload needed to maintain a logistics capability  

  identified by the Secretary under subsection (a)(2) may not be          

  contracted for performance by non-Government personnel under the        

  procedures and requirements of Office of Management and Budget Circular 

  A 76 or any successor administrative regulation or policy (hereinafter  

  in this section referred to as OMB Circular A 76).                      

     ``(2) The Secretary of Defense may waive paragraph (1) in the case of

  any such logistics capability and provide that performance of the       

  workload needed to maintain that capability shall be considered for     

  conversion to contractor performance in accordance with OMB Circular A  

  76. Any such waiver shall be made under regulations prescribed by the   

  Secretary and shall be based on a determination by the Secretary that   

  Government performance of the workload is no longer required for        

  national defense reasons. Such regulations shall include criteria for   

  determining whether Government performance of any such workload is no   

  longer required for national defense reasons.                           

     ``(3)(A) A waiver under paragraph (2) may not take effect until the  

  expiration of the first period of 30 days of continuous session of      

  Congress that begins on or after the date on which the Secretary submits

  a report on the waiver to the Committee on Armed Services and the       

  Committee on Appropriations of the Senate and the Committee on National 

  Security and the Committee on Appropriations of the House of            

  Representatives.                                                        

    ``(B) For the purposes of subparagraph (A)--                          



       ``(i) continuity of session is broken only by an adjournment of     

   Congress sine die; and                                                  

       ``(ii) the days on which either House is not in session because of  

   an adjournment of more than three days to a day certain are excluded in 

   the computation of any period of time in which Congress is in continuous

   session.''.                                                             

     (b) Clerical Amendment.--The item relating to such section at the    

  beginning of chapter 146 of such title is amended to read as follows:   





      ``2464. Core logistics capabilities.''.                                 





                    SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE   

          AND REPAIR THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-GOVERNMENT     

          PERSONNEL.                                                              

     Section 2466(a) of title 10, United States Code, is amended by       

  striking out ``40 percent'' and inserting in lieu thereof ``50          

  percent''.                                                              

          SEC. 358.  ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.         



     Subsection (e) of section 2466 of title 10, United States Code, is   

  amended to read as follows:                                             

     ``(e) Report.--(1) Not later than February 1 of each year, the       

  Secretary of Defense shall submit to Congress a report identifying, for 

  each military department and Defense Agency, the percentage of the funds

  referred to in subsection (a) that were expended during the preceding   

  fiscal year for performance of depot-level maintenance and repair       

  workloads by                                                            



                    the public and private sectors as required by section 2466 of 

          this title.                                                             

     ``(2) Not later than 90 days after the date on which the Secretary   

  submits the annual report under paragraph (1), the Comptroller General  

  shall submit to Congress the Comptroller General's views on whether the 

  Department of Defense has complied with the requirements of subsection  

  (a) for the fiscal year covered by the report.''.                       

                    SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN    

          CONTRACTING FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR       

          WORKLOADS FORMERLY PERFORMED AT CLOSED OR REALIGNED MILITARY            

          INSTALLATIONS.                                                          

     (a) Application to certain Workloads.--(1) Chapter 146 of title 10,  

  United States Code, is amended by inserting after section 2469 the      

  following new section:                                                  

                    ``2469a. Use of competitive procedures in contracting for     

          performance of depot-level maintenance and repair workloads formerly    

          performed at certain military installations                             

    ``(a)  Definitions.--In this section:                                 



       ``(1) The term `closed or realigned military installation' means a  

   military installation where a depot-level maintenance and repair        

   facility was approved in 1995 for closure or realignment under the      

   Defense Base Closure and Realignment Act of 1990 (part A of title XXIX  

   of Public Law 101 510; 10 U.S.C. 2687 note).                            

       ``(2) The term `military installation' includes a former military   

   installation that was a military installation when it was approved in   

   1995 for closure or realignment under the Defense Base Closure and      

   Realignment Act of 1990 and that has been closed or realigned under the 

   Act.                                                                    

       ``(3) The terms `realignment' and `realigned' mean a decision under 

   the Defense Base Closure and Realignment Act of 1990 that results in    

   both a reduction and relocation of functions and civilian personnel     

   positions.                                                              

     ``(b) Covered Depot-Level Maintenance and Repair Workloads.--Except  

  as provided in subsection (c), this section applies with respect to any 

  depot-level maintenance and repair workload that--                      

       ``(1) was performed as of January 1, 1997, at a military            

   installation that was approved in 1995 for closure or realignment under 

   the Defense Base Closure and Realignment Act of 1990 and that has been  

   closed or realigned under the Act; and                                  

       ``(2) is proposed to be converted from performance by Department of 

   Defense personnel to performance by a private sector source.            

    ``(c)  Exceptions.--This section shall not apply with respect to--    



       ``(1) a depot-level maintenance and repair workload that is to be   

   consolidated to another military installation (other than a closed or   

   realigned military installation) as a result of a base closure or       

   realignment action or a decision made by the Secretary concerned or the 

   Defense Depot Maintenance Council;                                      

       ``(2) a workload necessary to maintain a core logistics capability  

   identified under section 2464 of this title; or                         

       ``(3) any contract originally entered into before the date of the   

   enactment of the National Defense Authorization Act for Fiscal Year     

   1998.                                                                   

     ``(d) Conditions and Solicitation.--A solicitation of offers for the 

  performance of any depot-level maintenance and repair workload described

  in subsection (b) may be issued, and a contract may be awarded pursuant 

  to such a solicitation, only if the following conditions are met with   

  respect to the contract and the solicitation specifically states the    

  conditions:                                                             

       ``(1) The source selection process used in the case of the          

   solicitation and contract permits the consideration of offers submitted 

   by private sector sources and offers submitted by public sector sources.



       ``(2) The source selection process used in the case of the          

   solicitation and contract requires that, in the comparison of offers,   

   there be taken into account--                                           

       ``(A) the fair market value (or if fair market value cannot be      

   determined, the estimated book value) of any land, plant, or equipment  

   from a military installation that is proposed by a private offeror to be

   used to meet a specific workload (whether these assets are provided to  

   the offeror by a local redevelopment authority or by any other source   

   approved by an official of the Department of Defense); and              

       ``(B) the total estimated direct and indirect costs that will be    

   incurred by the Department of Defense and the total estimated direct and

   indirect savings (including overhead) that will be derived by the       

   Department of Defense.                                                  

       ``(3) The cost standards used to determine the depreciation of      

   facilities and equipment shall, to the maximum extent practicable,      

   provide identical treatment to all public and private sector offerors.  

       ``(4) Any offeror, whether public or private, may offer to perform  

   the workload at any location or locations selected by the offeror and to

   team with any other public or private entity to perform that workload at

   one or more locations, including a Center of Industrial and Technical   

   Excellence designated under section 2474 of this title.                 

       ``(5) No offeror may be given any preferential consideration for, or

   in any way be limited to, performing the workload in-place or at any    

   other single location.                                                  

     ``(e) Contracts for Multiple Workloads.--(1) A solicitation may be   

  issued for a single contract for the performance of multiple depot-level

  maintenance and repair workloads described in subsection (b) only if--  

       ``(A) the Secretary of Defense determines in writing that the       

   individual workloads cannot as logically and economically be performed  

   without combination by sources that are potentially qualified to submit 

   an offer and to be awarded a contract to perform those individual       

   workloads;                                                              

       ``(B) the Secretary submits to Congress a report setting forth the  

   determination together with the reasons for the determination; and      

       ``(C) the solicitation of offers for the contract is issued more    

   than 60 days after the date on which the Secretary submits the report.  

     ``(2) The Comptroller General shall review each report submitted     

  under paragraph (1)(B) and, not later than 30 days after the report is  

  submitted to Congress, shall submit to Congress the Comptroller         

  General's views regarding the determination of the Secretary that is set

  forth in the report, together with any other findings that the          

  Comptroller General considers appropriate.                              

     ``(f) Competitive Procedures Required.--Section 2304(c)(7) of this   

  title shall not be used as the basis for an exception to the requirement

  to use competitive procedures for any contract for a depot-level        

  maintenance and repair workload described in subsection (b).            

     ``(g) Reviews of Competitive Procedures.--If a solicitation of offers

  for a contract for, or award of, any depot-level maintenance and repair 

  workload described in subsection (b) is issued, the Comptroller General 

  shall--                                                                 

       ``(1) within 45 days after the issuance of the solicitation, review 

   the solicitation and report to Congress on whether the solicitation--   

       ``(A) provides substantially equal opportunity for public and       

   private offerors to compete for the contract without regard to the      

   location at which the workload is to be performed; and                  

       ``(B) is in compliance with the requirements of this section and all

   applicable provisions of law and regulations; and                       

       ``(2) within 45 days after any contract or award resulting from the 

   solicitation is entered into or made, review                            



                    the contract or award, including the contracting or award     

          process, and report to Congress on whether--                            

     ``(A) the procedures used to conduct the competition--                



       ``(i) provided substantially equal opportunity for public and       

   private offerors to compete for the contract without regard to the      

   location at which the workload is to be performed; and                  

       ``(ii) were in compliance with the requirements of this section and 

   all applicable provisions of law and regulations;                       

       ``(B) appropriate consideration was given to factors other than cost

   in the selection of the source for performance of the workload; and     

       ``(C) the contract or award resulted in the lowest total cost to the

   Department of Defense for performance of the workload.                  

     ``(h) Resolution of Workload Award Objections.--Any public or private

  entity may, pursuant to procedures established by the Secretary, object 

  to a solicitation of offers under this section for the performance of   

  any depot-level maintenance and repair workload, or the award or        

  proposed award of any workload pursuant to such a solicitation. The     

  Secretary may designate a qualified individual or entity to review the  

  objection; however, the Secretary shall not designate the Source        

  Selection Authority or any individual from the same military department 

  as the Source Selection Authority to review the objection. The Secretary

  shall take appropriate action to address any defect in the solicitation 

  or award in the event that the objection is sustained.''.               

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 2469 the following new  

  item:                                                                   





            ``2469a. Use of competitive procedures in contracting for         

      performance of depot-level maintenance and repair workloads formerly    

      performed at certain military installations.''.                         





     (b) Limitation Relating to Timing of Solicitation.--The first        

  solicitation of offers from private sector sources for the performance  

  of a depot-level maintenance and repair workload described in subsection

  (b) of section 2469a of title 10, United States Code, as added by       

  subsection (a), may be issued pursuant to such section only after the   

  date that is 30 days after the latest of the following:                 

       (1) The date on which the Secretary of Defense publishes and submits

   to Congress a plan or Department of Defense directive that sets forth   

   the specific procedures for the conduct of competitions among private   

   and public sector entities for such depot-level maintenance and repair  

   workloads.                                                              

       (2) The date on which the Secretary of Defense submits to Congress  

   the report on allocation of workloads required under subsection (c).    

       (3) The date on which the Comptroller General is required to submit 

   the report to Congress under subsection (d).                            

     (c) Report of Allocation of Workload.--Before any solicitation of    

  offers for the performance by a private sector source of a depot-level  

  maintenance and repair workload at a closed or realigned installation   

  described in subsection (b) of section 2469a of title 10, United States 

  Code, as added by subsection (a), is to be issued, the Secretary of     

  Defense shall submit to Congress a report describing the allocation     

  proposed by the Secretary of all workloads that were performed at that  

  closed or realigned military installation (as defined in subsection (a) 

  of such section) as of July 1, 1995, including--                        

       (1) the workloads that are considered to be core logistics functions

   under section 2464 of such title;                                       

       (2) the workloads that are proposed to be transferred to a military 

   installation other than a closed or realigned military installation;    

       (3) the workloads that are proposed to be included in the           

   public-private competitions carried out under section 2469a of such     

   title, and, if any of such workloads are to be combined for purposes of 

   such a competition, the reasons for combining the workloads, together   

   with a description of how the workloads are to be combined;             

       (4) any workload that has been determined within the Department of  

   Defense as no longer being necessary;                                   

       (5) the proposed schedule for implementing the allocations covered  

   by the report; and                                                      

       (6) the anticipated capacity utilization of the military            

   installations and former military installations to which workloads are  

   to be transferred, based on the maximum potential capacity certified to 

   the 1995 Defense Base Closure and Realignment Commission, after the     

   transfers are completed (not taking into account any workloads that may 

   be transferred as a result of a public-private competition carried out  

   under section 2469a of such title, as described in paragraph (3)).      

     (d) Review Regarding Award for C 5 Aircraft Workload.--(1) The       

  Comptroller General shall conduct a review of the award for the         

  performance of the C 5 aircraft workload that was made to Warner Robins 

  Air Logistics Center. As part of the review, the Comptroller General    

  shall--                                                                 

     (A) determine whether the procedures used to conduct the competition--



       (i) provided substantially equal opportunity for public and private 

   offerors to compete for the award without regard to the location at     

   which the workload is to be performed; and                              

       (ii) are in compliance with the requirements of all applicable      

   provisions of law and the Federal Acquisition Regulation; and           

       (B) determine whether that award results in the lowest total cost to

   the Department of Defense for performance of the workload.              

     (2) Not later than 60 days after the date of the enactment of this   

  Act, the Comptroller General shall submit to Congress a report          

  containing the results of the review.                                   



                    SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT 

          EMPLOYEES BY CONSTRAINTS ON PERSONNEL LEVELS.                           

     Section 2472(a) of title 10, United States Code, is amended by       

  striking out the first sentence and inserting in lieu thereof the       

  following: ``The civilian employees of the Department of Defense,       

  including the civilian employees of the military departments and the    

  Defense Agencies, who perform, or are involved in the performance of,   

  depot-level maintenance and repair workloads may not be managed on the  

  basis of any constraint or limitation in terms of man years, end        

  strength, full-time equivalent positions, or maximum number of          

  employees.''.                                                           

          SEC. 361.  CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.              



     (a) Designation and Purpose.--(1) Chapter 146 of title 10, United    

  States Code, is amended by adding at the end the following new section: 

                    ``2474. Centers of Industrial and Technical Excellence:       

          designation; public-private partnerships                                

     ``(a) Designation.--(1) The Secretary of Defense shall designate each

  depot-level activity of the military departments and the Defense        

  Agencies (other than facilities approved for closure or major           

  realignment under the Defense Base Closure and Realignment Act of 1990  

  (part A of title XXIX of Public Law 101 510; 10 U.S.C. 2687 note)) as a 

  Center of Industrial and Technical Excellence in the recognized core    

  competencies of the activity.                                           

     ``(2) The Secretary shall establish a policy to encourage the        

  Secretary of each military department and the head of each Defense      

  Agency to reengineer industrial processes and adopt best-business       

  practices at their depot-level activities in connection with their core 

  competency requirements, so as to serve as recognized leaders in their  

  core competencies throughout the Department of Defense and in the       

  national technology and industrial base (as defined in section 2500(1)  

  of this title).                                                         

     ``(3) The Secretary of a military department may conduct a pilot     

  program, consistent with applicable requirements of law, to test any    

  practices referred to in paragraph (2) that the Secretary determines    

  could improve the efficiency and effectiveness of depot-level           

  operations, improve the support provided by depot-level activities for  

  the armed forces user of the services of such activities, and enhance   

  readiness by reducing the time that it takes to repair equipment.       

     ``(b) Public-Private Partnerships.--The Secretary of Defense shall   

  enable Centers of Industrial and Technical Excellence to enter into     

  public-private cooperative arrangements for the performance of          

  depot-level maintenance and repair at such Centers and shall encourage  

  the use of such arrangements to maximize the utilization of the capacity

  at such Centers. A public-private cooperative arrangement under this    

  subsection shall be known as a `public-private partnership'.            

     ``(c) Crediting of Amounts for Performance.--Amounts received by a   

  Center for work performed under a public-private partnership shall be   

  credited to the appropriation or fund, including a working-capital fund,

  that incurs the cost of performing the work.                            

     ``(d) Additional Work.--The policy required under subsection (a)     

  shall include measures to enable a private sector entity that enters    

  into a partnership arrangement under subsection (b) or leases excess    

  equipment and facilities at a Center of Industrial and Technical        

  Excellence pursuant to section 2471 of this title to perform additional 

  work at the Center, subject to the limitations outlined in subsection   

  (b) of such section, outside of the types of work normally assigned to  

  the Center.''.                                                          

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





            ``2474. Centers of Industrial and Technical Excellence:           

      designation; public-private partnerships.''.                            





     (b) Lease of Excess Depot-Level Equipment and Facilities.--(1)       

  Section 2471(c) of such title is amended to read as follows:            



     ``(c) Conformance With Authority Under Section 2667.--The provisions 

  of subsection (d) of section 2667 of this title shall apply to this     

  section in the same manner as such provisions are applicable under that 

  section.''.                                                             

     (2) Section 2667(d)(2) of such title is amended by inserting ``or    

  working capital fund'' before ``from which''.                           

     (c) Reporting Requirement.--Not later than March 1, 1999, the        

  Secretary of Defense shall submit to Congress a report on the policies  

  established by the Secretary pursuant to section 2474 of title 10,      

  United States Code, to implement the requirements of such section. The  

  report shall include--                                                  

       (1) the details of any public-private partnerships entered into as  

   of that date under subsection (b) of such section;                      

       (2) the details of any leases entered into as of that date under    

   section 2471 of such title with authorized entities for dual-use        

   (military and nonmilitary) purposes; and                                

       (3) the effect that the partnerships and leases had on capacity     

   utilization, depot rate structures, and readiness.                      

                    SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL

          SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND SERVICES.         

     Section 1425(e) of the National Defense Authorization Act for Fiscal 

  Year 1991 (Public Law 101 510; 104 Stat. 1684) is amended by striking   

  out ``September 30, 1997'' and inserting in lieu thereof ``September 30,

  1999''.                                                                 

                    SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN           

          DEPOT-LEVEL MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING         

          REQUIREMENT.                                                            

     Section 311 of the National Defense Authorization Act for Fiscal Year

  1996 (Public Law 104 106; 110 Stat. 247; 10 U.S.C. 2464 note) is amended

  by striking out subsections (f) and (g).                                

                    SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN  

          ARMY WORKLOAD AND PERFORMANCE SYSTEM.                                   

     (a) Limitation.--Except as necessary to implement BRAC 1995 decisions

  at Red River Army Depot, Texas, and Letterkenny Army Depot,             

  Pennsylvania, the Secretary of the Army may not initiate a reduction in 

  force of civilian employees at the five Army depots participating in the

  demonstration and testing of the Army Workload and Performance System   

  until after the date on which the Secretary submits to Congress a report

  certifying that the Army Workload and Performance System is fully       

  operational.                                                            

     (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995 decisions''   

  means the decisions to close or realign certain military installations  

  resulting from the recommendations approved in 1995 under the Defense   

  Base Closure and Realignment Act of 1990 (part A of title XXIX of Public

  Law 101 510; 10 U.S.C. 2687 note).                                      

                    SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES   

          AMONG DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR FACILITIES.   

     (a) Report.--Not later than May 31, 1998, the Secretary of Defense   

  shall submit to Congress a report on the allocation among facilities of 

  the Department of Defense and facilities in the private sector of the   

  logistics activities that are necessary to maintain and repair the      

  weapon systems and other military equipment identified by the Secretary,

  in consultation with the Chairman of the Joint Chiefs of Staff, as being

  necessary to enable the Armed Forces to conduct a strategic or major    

  theater war.                                                            

     (b) Elements.--The report under subsection (a) shall set forth the   

  following:                                                              

       (1) The systems or equipment identified under subsection (a) that   

   must be maintained and repaired in Government-owned, Government-operated

   facilities, using personnel and equipment of the Department, as a result

   of the Secretary's determination that--                                 



       (A) the work involves unique or valuable workforce skills that      

   should be maintained in the public sector in the national interest;     

       (B) the base of private sector sources having the capability to     

   perform the workloads includes industry sectors that are vulnerable to  

   work stoppages;                                                         

       (C) the private sector sources having the capability to perform the 

   workloads have insufficient workforce levels or skills to perform the   

   depot-level maintenance and repair workloads--                          

       (i) in the quantity necessary, or as rapidly as the Secretary       

   considers necessary, to enable the armed forces to fulfill the national 

   military strategy; or                                                   

       (ii) without a significant disruption or delay in the maintenance   

   and repair of equipment;                                                

       (D) the need for performance of workloads is too infrequent,        

   cyclical, or variable to sustain a reliable base of private sector      

   sources having the workforce levels or skills to perform the workloads; 

       (E) the market conditions or workloads are insufficient to ensure   

   that the price of private sector performance of the workloads can be    

   controlled through competition or other means;                          

       (F) private sector sources are not adequately responsive to the     

   requirements of the Department for rapid, cost-effective, and flexible  

   response to surge requirements or other contingency situations,         

   including changes in the mix or priority of previously scheduled        

   workloads and reassignment of employees to different workloads without  

   the requirement for additional contractual negotiations;                

       (G) private sector sources are less willing to assume responsibility

   for performing the workload as a result of the possibility of direct    

   military or terrorist attack; or                                        

       (H) private sector sources cannot maintain continuity of workforce  

   expertise as a result of high rates of employee turnover.               

       (2) The systems or equipment identified under subsection (a) that   

   must be maintained and repaired in Government-owned facilities, whether 

   Government operated or contractor-operated, as a result of the          

   Secretary's determination that--                                        

       (A) the work involves facilities, technologies, or equipment that   

   are unique and sufficiently valuable that the facilities, technologies, 

   or equipment must be maintained in the public sector in the national    

   interest;                                                               

       (B) the private sector sources having the capability to perform the 

   workloads have insufficient facilities, technology, or equipment to     

   perform the depot-level maintenance and repair workloads--              

       (i) in the quantity necessary, or as rapidly as the Secretary       

   considers necessary, to enable the armed forces to fulfill the national 

   military strategy; or                                                   

       (ii) without a significant disruption or delay in the maintenance   

   and repair of equipment; or                                             

       (C) the need for performance of workloads is too infrequent,        

   cyclical, or variable to sustain a reliable base of private sector      

   sources having the facilities, technology, or equipment to perform the  

   workloads.                                                              

       (3) The systems or equipment identified under subsection (a) that   

   may be maintained and repaired in private sector facilities.            

       (4) The approximate percentage of the total maintenance and repair  

   workload of the Department of Defense necessary for the systems and     

   equipment identified under subsection (a) that would be performed at    

   Department of Defense facilities, and at private sector facilities, as a

   result of the determinations made for purposes of paragraphs (1), (2),  

   and (3).                                                                



                    SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP

          REPAIR AND MAINTENANCE.                                                 

    (a)  Findings.--Congress makes the following findings:                



       (1) In order to reduce the time that the crew of a naval vessel is  

   away from the homeport of the vessel, the Navy seeks to perform ship    

   repair and maintenance of the vessel at the homeport of the vessel      

   whenever it takes six months or less to accomplish the work involved.   

       (2) At the same time, the Navy seeks to distribute ship repair and  

   maintenance work among the Navy shipyards (known as to ``level load'')  

   in order to more fully utilize personnel resources.                     

       (3) During periods when a Navy shipyard is not utilized to its      

   capacity, the Navy sometimes sends workers at the shipyard, on a        

   temporary duty basis, to perform ship repairs and maintenance at a      

   homeport not having a Navy shipyard.                                    

       (4) This practice is a more efficient use of civilian employees who 

   might otherwise not be fully employed on work assigned to Navy          

   shipyards.                                                              

     (b) Comptroller General Review and Report.--(1) The Comptroller      

  General shall review the Navy's practice of using temporary duty        

  assignments of personnel to perform ship maintenance and repair work at 

  homeports not having Navy shipyards. The review shall include the       

  following:                                                              

       (A) An assessment of the rationale, conditions, and factors         

   supporting the Navy's practice.                                         

     (B) A determination of whether the practice is cost-effective.        



       (C) The factors affecting future requirements for, and the adherence

   to, the practice, together with an assessment of the factors.           

     (2) Not later than May 1, 1998, the Comptroller General shall submit 

  a report on the review to the Committee on Armed Services of the Senate 

  and the Committee on National Security of the House of Representatives. 

                    SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF          

          PERFORMANCE OF GROUND COMMUNICATION-ELECTRONIC WORKLOAD.                

     It is the sense of Congress that the transfer of the ground          

  communication-electronic workload to Tobyhanna Army Depot, Pennsylvania,

  in the realignment of the performance of such function should be carried

  out in adherence to the schedule prescribed for that transfer by the    

  Defense Depot Maintenance Council on March 13, 1997, as follows:        

     (1) Transfer of 20 percent of the workload in fiscal year 1998.       



     (2) Transfer of 40 percent of the workload in fiscal year 1999.       



     (3) Transfer of 40 percent of the workload in fiscal year 2000.       







           Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities     





                    SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND   

          EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.         

     (a) Description of Chapter.--(1) The heading of chapter 147 of title 

  10, United States Code, is amended to read as follows:                  

            ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,  

                          AND RECREATION ACTIVITIES''.                            

     (2) The tables of chapters at the beginning of subtitle A, and at the

  beginning of part IV of subtitle A, of such title are amended by        

  striking out the item relating to chapter 147 and inserting in lieu     

  thereof the following new item:                                         





                 ``147. Commissaries and Exchanges and Other Morale, Welfare,   

        and Recreation Activities                                               

        2481''.                                                                







     (b) Transfer and Redesignation of Unrelated Provisions.--(1) Section 

  2481 of title 10, United States Code, is transferred to chapter 159 of  

  such title, inserted after section 2685, and redesignated as section    

  2686.                                                                   

     (2) Sections 2483 and 2490 of such title are transferred to the end  

  of subchapter III of chapter 169 of such title and redesignated as      

  sections 2867 and 2868, respectively.                                   

    (3) Section 2491 of such title is redesignated as section 2500.       



     (c) Clerical Amendments.--(1) The table of sections at the beginning 

  of chapter 147 of title 10, United States Code, is amended by striking  

  out the items relating to sections 2481, 2483, and 2490.                

     (2) The table of sections at the beginning of chapter 159 of such    

  title is amended by inserting after the item relating to section 2685   

  the following new item:                                                 





            ``2686. Utilities and services: sale; expansion and extension of  

      systems and facilities.''.                                              





     (3) The table of sections at the beginning of subchapter III of      

  chapter 169 of such title is amended by adding at the end the following 

  new items:                                                              





            ``2867. Sale of electricity from alternate energy and cogeneration

      production facilities.                                                  

      ``2868. Utility services: furnishing for certain buildings.''.          







     (4) The table of sections at the beginning of subchapter I of chapter

  148 of such title is amended by striking out the item relating to       

  section 2491 and inserting in lieu thereof the following new item:      





      ``2500. Definitions.''.                                                 







     (5) The tables of chapters at the beginning of subtitle A, and at the

  beginning of part IV of subtitle A, of such title are amended by        

  striking out the item relating to chapter 148 and inserting in lieu     

  thereof the following new item:                                         





                 ``148. National Defense Technology and Industrial Base, Defense

        Reinvestment, and Defense Conversion                                    

        2500''.                                                                







     (d) Conforming Amendments.--(1) Section 2534(d) of title 10, United  

  States Code, is amended by striking out ``section 2491(1)'' both places 

  it appears and inserting in lieu thereof ``section 2500(1)''.           

     (2) Section 2865(b)(2) of such title is amended by striking out      

  ``section 2483(b)(2)'' and inserting in lieu thereof ``section          

  2867(b)(2)''.                                                           

          SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.   



     (a) Authorized Commissary Merchandise Categories.--Subsection (b) of 

  section 2486 of title 10, United States Code, is amended--              

       (1) by striking out the matter preceding paragraph (1) and inserting

   in lieu thereof the following: ``(b) Authorized Commissary Merchandise  

   Categories.--Merchandise sold in, at, or by commissary stores may       

   include items only in the following categories:''; and                  

       (2) by striking out paragraph (11) and inserting in lieu thereof the

   following new paragraph:                                                



       ``(11) Such other merchandise categories as the Secretary of Defense

   may prescribe, except that the Secretary shall submit to Congress, not  

   later than March 1 of each year, a report describing--                  

       ``(A) any addition of, or change in, a merchandise category proposed

   to be made under this paragraph during the one-year period beginning on 

   that date; and                                                          

       ``(B) those additions and changes in merchandise categories actually

   made during the preceding one-year period.''.                           

     (b) Codification of Uniform Sales Price Surcharge or                 

  Adjustment.--Subsection (c) of such section is amended--                

       (1) by inserting `` Uniform Sales Price Surcharge or Adjustment.--''

   after ``(c)'';                                                          

       (2) by striking out ``in commissary stores.'' and inserting in lieu 

   thereof ``in, at, or by commissary stores.''; and                       

       (3) by adding at the end the following new sentence: ``Effective on 

   the date of the enactment of the National Defense Authorization Act for 

   Fiscal Year 1998, the uniform percentage shall be equal to five percent 

   and may not be changed except by a law enacted after such date.''.      

     (c) Establishment of Sales Price; Congressional                      

  Notification.--Subsection (d) of such section is amended to read as     

  follows:                                                                

     ``(d) Sales Price Establishment.--(1) The Secretary of Defense shall 

  establish the sales price of each item of merchandise sold in, at, or by

  commissary stores at the level that will recoup the actual product cost 

  of the item (consistent with this section and sections 2484 and 2685 of 

  this title).                                                            

     ``(2) Any change in the pricing policies for merchandise sold in, at,

  or by commissary stores shall not take effect until the Secretary of    

  Defense submits written notice of the proposed change to Congress and a 

  period of 90 days of continuous session of Congress expires following   

  the date on which notice was received. For purposes of this paragraph,  

  the continuity of a session of Congress is broken only by an adjournment

  of the Congress sine die, and the days on which either House is not in  

  session because of an adjournment or recess of more than three days to a

  day certain are excluded in a computation of such 90-day period.''.     

     (d) Special Rules for Certain Merchandise.--Such section is further  

  amended by adding at the end the following new subsection:              

     ``(f) Special Rules for Certain Merchandise.--(1) Notwithstanding the

  general requirement that merchandise sold in, at, or by commissary      

  stores be commissary store inventory, the Secretary of Defense may      

  authorize the sale of items in the merchandise categories specified in  

  paragraph (2) as noncommissary store inventory. Subsections (c) and (d) 

  shall not apply to the pricing of such merchandise items.               

     ``(2) The merchandise categories referred to in paragraph (1) are as 

  follows:                                                                

     ``(A) Magazines and other periodicals.                                



     ``(B) Tobacco products.''.                                            



     (e) Clerical and Conforming Amendments.--Such section is further     

  amended--                                                               

       (1) in subsection (a), by inserting `` In General.--'' after        

   ``(a)''; and                                                            

     (2) in subsection (e)--                                               



       (A) by inserting `` Special Rule for Brand-Name Commercial          

   Items.--'' after ``(e)''; and                                           

       (B) by striking out ``in commissary stores'' both places it appears 

   and inserting in lieu thereof ``in, at, or by commissary stores''.      

     (f) Report on Merchandise Categories.--Not later than 30 days after  

  the date of the enactment of this Act, the Secretary of Defense shall   

  submit to Congress a report specifying the merchandise categories       

  authorized for sale sold in, at, or by commissary stores pursuant to    

  regulations prescribed under subsection (b)(11) of section 2486 of title

  10, United States Code, as in effect before such date.                  



                    SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF         

          BRAND-NAME COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.            

     Section 2486(e) of title 10, United States Code, as amended by       

  section 372(e)(2), is further amended by adding at the end the following

  new sentence: ``In determining whether a brand name commercial item is  

  regularly sold outside of commissary stores, the Secretary shall        

  consider only sales of the item on a regional or national basis by      

  commercial grocery or other retail operations consisting of multiple    

  stores.''.                                                              



                    SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE 

          ACTIVITIES.                                                             

     (a) Treatment of Revenues.--Section 2685 of title 10, United States  

  Code, is amended by adding at the end the following new subsection:     

     ``(e) Other Sources of Funds for Construction and                    

  Improvements.--Revenues received by the Secretary of Defense from the   

  following sources or activities of commissary store facilities shall be 

  available for the purposes set forth in subsections (b), (c), and (d):  

     ``(1) Sale of recyclable materials.                                   



     ``(2) Sale of excess and surplus property.                            



     ``(3) License fees.                                                   



     ``(4) Royalties.                                                      



       ``(5) Fees paid by sources of products in order to obtain favorable 

   display of the products for resale, known as business related management

   fees.''.                                                                

    (b)  Clerical Amendments.--Such section is further amended--          



       (1) in subsection (a), by inserting `` Adjustment or Surcharge      

   Authorized.--'' after ``(a)'';                                          

       (2) in subsection (b), by inserting `` Use for Construction and     

   Improvement of Facilities.--'' after ``(b)'';                           

       (3) in subsection (c), by inserting `` Advance Obligation.--'' after

   ``(c)''; and                                                            

       (4) in subsection (d), by inserting `` Cooperation With             

   Nonappropriated Fund Instrumentalities.--'' after ``(d)''.              

                    SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES 

          RECREATION CENTER, EUROPE.                                              

     Section 2247(b) of title 10, United States Code, is amended by       

  striking out ``real property maintenance, and'' and inserting in lieu   

  thereof ``the maintenance, repair, or renovation of real property, and  

  the''.                                                                  

                    SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO  

          BENEFIT MORALE, WELFARE, AND RECREATION ACTIVITIES.                     

     (a) Plan Required.--The Secretary of Defense shall prepare a plan    

  containing a proposal regarding the advisability and feasibility of     

  permitting nonappropriated fund instrumentalities of the Department of  

  Defense to enter into leases, licensing agreements, concession          

  agreements, and other contracts with private persons and State or local 

  governments to facilitate the provision of facilities, goods, or        

  services to authorized patrons of nonappropriated fund instrumentalities

  and to generate revenues for the Department of Defense to be used solely

  for the benefit of nonappropriated fund instrumentalities.              

     (b) Recommendations for Scope of Plan.--In developing the proposal   

  under subsection (a), the Secretary shall include recommendations       

  regarding the following:                                                

       (1) The proposed criteria to be used to select goods or services    

   suitable for provision to patrons of nonappropriated fund               

   instrumentalities through a lease or other contractual arrangement.     

       (2) The proposed mechanism to be used to assess the likely impact of

   such a lease or other contractual arrangement on private businesses in  

   the locality that provide the same goods or services proposed to be     

   provided under such a lease or other contractual arrangement.           

       (3) The feasibility and desirability of authorizing persons who are 

   not authorized patrons of nonappropriated fund instrumentalities to     

   receive goods and services provided through such a lease or other       

   contractual arrangement.                                                

       (4) The proposed mechanism to be used to ensure that such a lease or

   contract will not be inconsistent with and will not adversely affect the

   mission of the Department of Defense or the nonappropriated fund        

   instrumentality involved.                                               

     (c) Submission of Plan.--Not later than March 1, 1998, the Secretary 

  shall submit to Congress the plan required under subsection (a).        



           Subtitle F--Other Matters                                               



                    SEC. 381. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT       

          BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF     

          DEFENSE CIVILIAN EMPLOYEES.                                             

     (a) Continuation of Department of Defense Program for Fiscal Year    

  1998.--Of the amount authorized to be appropriated pursuant to section  

  301(5) for operation and maintenance for Defense-wide activities--      

       (1) $30,000,000 shall be available for providing educational        

   agencies assistance (as defined in subsection (d)(1)) to local          

   educational agencies; and                                               

       (2) $5,000,000 shall be available for making educational agencies   

   payments (as defined in subsection (d)(2)) to local educational         

   agencies.                                                               

     (b) Notification.--Not later than June 30, 1998, the Secretary of    

  Defense shall--                                                         

       (1) notify each local educational agency that is eligible for       

   educational agencies assistance for fiscal year 1998 of that agency's   

   eligibility for such assistance and the amount of such assistance for   

   which that agency is eligible; and                                      

       (2) notify each local educational agency that is eligible for an    

   educational agencies payment for fiscal year 1998 of that agency's      

   eligibility for such payment and the amount of the payment for which    

   that agency is eligible.                                                

     (c) Disbursement of Funds.--The Secretary of Defense shall disburse  

  funds made available under paragraphs (1)                               



                    and (2) of subsection (a) not later than 30 days after the    

          date on which notification to the eligible local educational agencies is

          provided pursuant to subsection (b).                                    

    (d)  Definitions.--In this section:                                   



       (1) The term ``educational agencies assistance'' means assistance   

   authorized under section 386(b) of the National Defense Authorization   

   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     

       (2) The term ``educational agencies payments'' means payments       

   authorized under section 386(d) of the National Defense Authorization   

   Act for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note).     

       (3) The term ``local educational agency'' has the meaning given that

   term in section 8013(9) of the Elementary and Secondary Education Act of

   1965 (20 U.S.C. 7713(9)).                                               

     (e) Technical Correction Relating to Original Assistance             

  Authority.--Section 386(c)(1) of the National Defense Authorization Act 

  for Fiscal Year 1993 (Public Law 102 484; 20 U.S.C. 7703 note) is       

  amended--                                                               

       (1) by striking out ``section 8003(a)'' and inserting in lieu       

   thereof ``section 8003(a)(1)''; and                                     

       (2) by striking out ``(20 U.S.C. 7703(a))'' and inserting in lieu   

   thereof ``(20 U.S.C. 7703(a)(1))''.                                     



                    SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND    

          HUMANITARIAN ASSISTANCE.                                                

     (a) Establishment and Operation of Center.--(1) Chapter 7 of title   

  10, United States Code, is amended by adding at the end the following   

  new section:                                                            



                    ``182. Center for Excellence in Disaster Management and       

          Humanitarian Assistance                                                 

     ``(a) Establishment.--The Secretary of Defense may operate a Center  

  for Excellence in Disaster Management and Humanitarian Assistance (in   

  this section referred to as the `Center').                              

     ``(b) Missions.--(1) The Center shall be used to provide and         

  facilitate education, training, and research in civil-military          

  operations, particularly operations that require international disaster 

  management and humanitarian assistance and operations that require      

  coordination between the Department of Defense and other agencies.      

     ``(2) The Center shall be used to make available high-quality        

  disaster management and humanitarian assistance in response to          

  disasters.                                                              

     ``(3) The Center shall be used to provide and facilitate education,  

  training, interagency coordination, and research on the following       

  additional matters:                                                     

       ``(A) Management of the consequences of nuclear, biological, and    

   chemical events.                                                        

     ``(B) Management of the consequences of terrorism.                    



       ``(C) Appropriate roles for the reserve components in the management

   of such consequences and in disaster management and humanitarian        

   assistance in response to natural disasters.                            

       ``(D) Meeting requirements for information in connection with       

   regional and global disasters, including the use of advanced            

   communications technology as a virtual library.                         

       ``(E) Tropical medicine, particularly in relation to the medical    

   readiness requirements of the Department of Defense.                    

     ``(4) The Center shall develop a repository of disaster risk         

  indicators for the Asia-Pacific region.                                 

     ``(5) The Center shall perform such other missions as the Secretary  

  of Defense may specify.                                                 

     ``(c) Joint Operation With Educational Institution Authorized.--The  

  Secretary of Defense may enter into an agreement with appropriate       

  officials of an institution of higher education to provide for joint    

  operation of the Center. Any such agreement shall provide for the       

  institution to furnish necessary administrative services for the Center,

  including administration and allocation of funds.                       

     ``(d) Acceptance of Donations.--(1) Except as provided in paragraph  

  (2), the Secretary of Defense may accept, on behalf of the Center,      

  donations to be used to defray the                                      



                    costs of the Center or to enhance the operation of the Center.

          Such donations may be accepted from any agency of the Federal           

          Government, any State or local government, any foreign government, any  

          foundation or other charitable organization (including any that is      

          organized or operates under the laws of a foreign country), or any other

          private source in the United States or a foreign country.               

     ``(2) The Secretary may not accept a donation under paragraph (1) if 

  the acceptance of the donation would compromise or appear to            

  compromise--                                                            

       ``(A) the ability of the Department of Defense, any employee of the 

   Department, or members of the armed forces, to carry out any            

   responsibility or duty of the Department in a fair and objective manner;

   or                                                                      

       ``(B) the integrity of any program of the Department of Defense or  

   of any person involved in such a program.                               

     ``(3) The Secretary shall prescribe written guidance setting forth   

  the criteria to be used in determining whether or not the acceptance of 

  a foreign donation would have a result described in paragraph (2).      

     ``(4) Funds accepted by the Secretary under paragraph (1) as a       

  donation on behalf of the Center shall be credited to appropriations    

  available to the Department of Defense for the Center. Funds so credited

  shall be merged with the appropriations to which credited and shall be  

  available for the Center for the same purposes and the same period as   

  the appropriations with which merged.''.                                



     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





            ``182. Center for Excellence in Disaster Management and           

      Humanitarian Assistance.''.                                             





     (b) Funding for Fiscal Year 1998.--Of the funds authorized to be     

  appropriated pursuant to section 301(5) for operation and maintenance   

  for Defense-wide activities, $5,000,000 shall be available for the      

  operation of the Center for Excellence in Disaster Management and       

  Humanitarian Assistance established under section 182 of title 10,      

  United States Code, as added by subsection (a).                         



                    SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO   

          DEFENSE AUTOMATED PRINTING SERVICE.                                     

     (a) In General.--Subchapter I of chapter 8 of title 10, United States

  Code, is amended by adding at the end the following new section:        

                    ``195. Defense Automated Printing Service: applicability of   

          Federal printing requirements                                           

     ``The Defense Automated Printing Service shall comply fully with the 

  requirements of section 501 of title 44 relating to the production and  

  procurement of printing, binding, and blank-book work.''.               

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such subchapter is amended by adding at the end the following new item: 





            ``195. Defense Automated Printing Service: applicability of       

      Federal printing requirements.''.                                       



                    SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION  

          OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE.  

     (a) Additional Notification Requirement.--Subsection (a)(1) of       

  section 2461 of title 10, United States Code, is amended by inserting   

  before the semicolon the following: ``and the anticipated length and    

  cost of the study''.                                                    

     (b) Notification of Conversion Decision.--Subsection (b) of such     

  section amended by adding at the end the following new sentence: ``The  

  notification shall include the timetable for completing conversion of   

  the function to contractor performance.''.                              

     (c) Waiver for Small Functions.--Subsection (d) of such section is   

  amended by striking out ``45 or fewer'' and inserting in lieu thereof   

  ``20 or fewer''.                                                        



                    SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON

          CONVERTED SERVICES AND FUNCTIONS.                                       

     (a) Collection and Retention Required.--Section 2463 of title 10,    

  United States Code, is amended to read as follows:                      

                    ``2463. Collection and retention of cost information data on  

          converted services and functions                                        

     ``(a) Requirements In Connection With Conversion to Contractor       

  Performance.--With respect to each contract converting the performance  

  of a service or function of the Department of Defense to contractor     

  performance (and any extension of such a contract), the Secretary of    

  Defense shall collect, during the term of the contract or extension, but

  not to exceed five years, cost information data regarding performance of

  the service or function by private contractor employees.                

     ``(b) Requirements In Connection With Return to Employee             

  Performance.--Whenever the performance of a commercial or industrial    

  type activity of the Department of Defense that is being performed by 50

  or more employees of a private contractor is changed to performance by  

  civilian employees of the Department of Defense, the Secretary of       

  Defense shall collect, for a five-year period, cost information data    

  comparing--                                                             

       ``(1) the estimated costs of continued performance of such activity 

   by private contractor employees; and                                    

       ``(2) the costs of performance of such activity by civilian         

   employees of the Department of Defense.                                 

     ``(c) Retention of Information.--With regard to the conversion to or 

  from contractor performance of a particular service or function of the  

  Department of Defense, the Secretary of Defense shall provide for the   

  retention of information collected under this section for at least a    

  10-year period beginning at the end of the final year in which the      

  information is collected.''.                                            

     (b) Clerical Amendment.--The item relating to such section in the    

  table of sections at the beginning of chapter 146 of title 10, United   

  States Code, is amended to read as follows:                             





            ``2463. Collection and retention of cost information data on      

      converted services and functions.''.                                    



                    SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES   

          ASSIGNED TO ARMY NATIONAL GUARD.                                        

     (a) Authority.--Chapter 1 of title 32, United States Code, is amended

  by adding at the end the following new section:                         

                    ``113. Federal financial assistance for support of additional 

          duties assigned to the Army National Guard                              

     ``(a) Authority.--The Secretary of the Army may provide financial    

  assistance to a State to support activities carried out by the Army     

  National Guard of the State in the performance of duties that the       

  Secretary has assigned, with the consent of the Chief of the National   

  Guard Bureau, to the Army National Guard of the State. The Secretary    

  shall determine the amount of the assistance that is appropriate for the

  purpose.                                                                

     ``(b) Covered Activities.--Activities supported under this section   

  may include only those activities that are carried out by the Army      

  National Guard in the performance of responsibilities of the Secretary  

  of the Army under paragraphs (6), (10), and (11) of section 3013(b) of  

  title 10.                                                               

     ``(c) Disbursement Through National Guard Bureau.--The Secretary of  

  the Army shall disburse any contribution under this section through the 

  Chief of the National Guard Bureau.                                     

     ``(d) Availability of Funds.--Funds appropriated for the Army for a  

  fiscal year are available for providing financial assistance under this 

  section in support of activities carried out by the Army National Guard 

  during that fiscal year.''.                                             

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``113. Federal financial assistance for support of additional     

      duties assigned to the Army National Guard.''.                          



          SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES. 



     (a) Extension of Requirement to Use Private-Sector                   

  Sources.--Subsection (a) of section 351 of the National Defense         

  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   

  266) is amended--                                                       

       (1) by striking out ``and 1997'' and inserting in lieu thereof      

   ``through 1998''; and                                                   

       (2) by striking out ``Defense Printing Service'' and inserting in   

   lieu thereof ``Defense Automated Printing Service''.                    

     (b) Surcharge for Services.--Such section is further amended by      

  adding at the end the following new subsection:                         

     ``(d) Conditions on Imposition of Surcharge.--(1) Any surcharge      

  imposed by the Defense Automated Printing Service on printing and       

  duplication services for the Department of Defense shall be based on    

  direct services provided by the Defense Automated Printing Service and  

  reflect the costs incurred by the Defense Automated Printing Service, as

  described in its annual budget.                                         

     ``(2) The Defense Automated Printing Service may not impose a        

  surcharge on any printing and duplication service for the Department of 

  Defense that is procured from a source outside of the Department.''.    

     (c) Authority To Procure Services From Government Printing           

  Office.--Consistent with section 501 of title 44, United States Code,   

  the Secretary of a military department or head of a Defense Agency may  

  contract directly with the Government Printing Office for printing and  

  duplication services otherwise available through the Defense Automated  

  Printing Service.                                                       



                    SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM 

          TO IDENTIFY OVERPAYMENTS MADE TO VENDORS.                               

     (a) Scope of Program.--Section 354 of the National Defense           

  Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110 Stat.   

  268; 10 U.S.C. 2461 note) is amended--                                  

     (1) in subsection (a), by striking out the second sentence; and       



       (2) in subsection (b)(1), by striking out ``of the Defense Logistics

   Agency that relate to (at least) fiscal years 1993, 1994, and 1995'' and

   inserting in lieu thereof ``relating to fiscal years after fiscal year  

   1993 of the working-capital funds and industrial, commercial, and       

   support type activities managed through the Defense Business Operations 

   Fund, except the Defense Logistics Agency to the extent such records    

   have already been audited''.                                            

     (b) Collection Method; Contractor Payments.--Such section is further 

  amended by striking out subsections (d) and (e) and inserting in lieu   

  thereof the following new subsections:                                  

     ``(d) Collection Method.--(1) In the case of an overpayment to a     

  vendor identified under the demonstration program, the Secretary shall  

  consider the use of the procedures specified in section 32.611 of the   

  Federal Acquisition Regulation, regarding a setoff against existing     

  invoices for payment to the vendor, as the first method by which the    

  Department seeks to recover the amount of the overpayment (and any      

  applicable interest and penalties) from the vendor.                     

     ``(2) The Secretary of Defense shall be solely responsible for       

  notifying a vendor of an overpayment made to the vendor and identified  

  under the demonstration program and for recovering the amount of the    

  overpayment (and any applicable interest and penalties) from the vendor.

     ``(e) Fees for Contractor.--The Secretary shall pay to the contractor

  under the contract entered into under the demonstration program an      

  amount not to exceed 25 percent of the total amount recovered by the    

  Department (through the collection of overpayments and the use of       

  setoffs) solely on the basis of information obtained as a result of the 

  audits performed by the contractor under the program. When an           

  overpayment is recovered through the use of a setoff, amounts for the   

  required payment to the contractor shall be derived from funds available

  to the working-capital fund or industrial, commercial, or support type  

  activity for which the overpayment is recovered.''.                     

     (c) GAO Review.--Not later than December 31, 1998, the Comptroller   

  General shall submit to Congress a report containing the results of a   

  review by the Comptroller General of the demonstration program conducted

  under section 354 of the National Defense Authorization Act for Fiscal  

  Year 1996 (Public Law 104 106; 10 U.S.C. 2461 note). In the review, the 

  Comptroller General shall--                                             

       (1) assess the success of the methods used in the demonstration     

   program to identify overpayments made to vendors;                       

       (2) consider the types of overpayments identified and the           

   feasibility of avoiding such overpayments through contract adjustments; 

       (3) determine the total amount of overpayments recovered under the  

   demonstration program; and                                              

       (4) develop recommendations for improving the process by which      

   overpayments are recovered by the Department of Defense.                



                    SEC. 389. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE 

          WORK STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION OF CERTAIN       

          OPERATIONAL FUNCTIONS OF MILITARY INSTALLATIONS.                        

     (a) Standardization of Requirements.--The Secretary of Defense is    

  authorized and encouraged to develop standard forms (to be known as a   

  ``standard performance work statement'' and a ``standard request for    

  proposal'') for use in the consideration for conversion to contractor   

  performance of commercial services and functions at military            

  installations. A separate standard form shall be developed for each     

  service and function.                                                   



     (b) Relationship to OMB Requirements.--A standard performance work   

  statement or a standard request for proposal developed under subsection 

  (a) must fulfill the basic requirements of the performance work         

  statement or request for proposal otherwise required under the          

  procedures and requirements of Office of Management and Budget Circular 

  A 76 (or any successor administrative regulation or policy) in effect at

  the time the standard form will be used.                                

     (c) Priority Development of Certain Forms.--In developing standard   

  performance work statements and standard requests for proposal, the     

  Secretary shall give first priority to those commercial services and    

  functions that the Secretary determines have been successfully converted

  to contractor performance on a repeated basis.                          

     (d) Incentive for Use.--Beginning not later than October 1, 1998, if 

  a standard performance work statement or a standard request for proposal

  is developed under subsection (a) for a particular service and function,

  the standard form may be used in lieu of the performance work statement 

  or request for proposal otherwise required under the procedures and     

  requirements of Office of Management and Budget Circular A 76 in        

  connection with the consideration for conversion to contractor          

  performance of that service or function at a military installation.     

     (e) Exclusion of Multi-Function Conversion.--If a commercial service 

  or function for which a standard form is developed under subsection (a) 

  is combined with another service or function (for which such a form has 

  not yet been developed) for purposes of considering the services and    

  functions at the military installation for conversion to contractor     

  performance, a standard performance work statement or a standard request

  for proposal developed under subsection (a) may not be used in the      

  conversion process in lieu of the procedures and requirements of Office 

  of Management and Budget Circular A 76.                                 

     (f) Effect on Other Laws.--Nothing in this section shall be construed

  to supersede any other requirements or limitations, specifically        

  contained in chapter 146 of title 10, United States Code, on the        

  conversion to contractor performance of activities performed by civilian

  employees of the Department of Defense.                                 

     (g) GAO Report.--Not later than June 1, 1999, the Secretary of       

  Defense shall submit to Congress a report reviewing the implementation  

  of this section.                                                        

     (h) Military Installation Defined.--For purposes of this section, the

  term ``military installation'' means a base, camp, post, station, yard, 

  center, homeport facility for any ship, or other activity under the     

  jurisdiction of the Department of Defense, including any leased         

  facility.                                                               



          SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.   



     (a) Contractor Use of Nonimmigrant Aliens.--Each contract for base   

  operations support to be performed on Guam shall contain a condition    

  that work under the contract may not be performed by any alien who is   

  issued a visa or otherwise provided nonimmigrant status under section   

  101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C.      

  1101(a)(15)(H)(ii)).                                                    

     (b) Application of Section.--This section shall apply to contracts   

  entered into, amended, or otherwise modified on or after the date of the

  enactment of this Act.                                                  



          SEC. 391. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.                       



     (a) Pilot Program Required.--The Secretary of Defense may carry out a

  pilot program to use commercial sources of services to improve the      

  collection of Department of Defense claims under aircraft engine        

  warranties.                                                             

     (b) Contracts.--Exercising the authority provided in section 3718 of 

  title 31, United States Code, the Secretary of Defense may enter into   

  contracts under the pilot program to provide for the following services:

     (1) Collection services.                                              



       (2) Determination of amounts owed the Department of Defense for     

   repair of aircraft engines for conditions covered by warranties.        



       (3) Identification and location of the sources of information that  

   are relevant to collection of Department of Defense claims under        

   aircraft engine warranties, including electronic data bases and document

   filing systems maintained by the Department of Defense or by the        

   manufacturers and suppliers of the aircraft engines.                    

       (4) Services to define the elements necessary for an effective      

   training program to enhance and improve the performance of Department of

   Defense personnel in collecting and organizing documents and other      

   information that are necessary for efficient filing, processing, and    

   collection of Department of Defense claims under aircraft engine        

   warranties.                                                             

     (c) Contractor Fee.--Under the authority provided in section 3718(d) 

  of title 31, United States Code, a contract entered into under the pilot

  program shall provide for the contractor to be paid, out of the amount  

  recovered by the contractor under the program, such percentages of the  

  amount recovered as the Secretary of Defense determines appropriate.    

     (d) Retention of Recovered Funds.--Subject to any obligation to pay a

  fee under subsection (c), any amount collected for the Department of    

  Defense under the pilot program for a repair of an aircraft engine for a

  condition covered by a warranty shall be credited to an appropriation   

  available for repair of aircraft engines for the fiscal year in which   

  collected and shall be available for the same purposes and same period  

  as the appropriation to which credited.                                 

     (e) Regulations.--The Secretary of Defense shall prescribe           

  regulations to carry out this section.                                  

     (f) Termination of Authority.--The pilot program shall terminate on  

  September 30, 1999, and contracts entered into under this section shall 

  terminate not later than that date.                                     

     (g) Reporting Requirements.--(1) Not later than January 1, 2000, the 

  Secretary of Defense shall submit to Congress a report on the pilot     

  program. The report shall include the following:                        

     (A) The number of contracts entered into under the program.           



       (B) The extent to which the services provided under the contracts   

   resulted in financial benefits for the Federal Government.              

       (C) Any additional comments and recommendations that the Secretary  

   considers appropriate regarding use of commercial sources of services   

   for collection of Department of Defense claims under aircraft engine    

   warranties.                                                             

     (2) Not later than March 1, 2000, the Comptroller General shall      

  submit to Congress a report containing the results of a review by the   

  Comptroller General of the pilot program. In the review, the Comptroller

  General shall--                                                         

       (A) assess the success of the methods used in the demonstration     

   program to identify and recover Department of Defense claims under      

   aircraft engine warranties;                                             

       (B) determine the total amount recovered by the Department of       

   Defense under the pilot program;                                        

       (C) evaluate the report prepared by the Secretary under paragraph   

   (1); and                                                                

       (D) develop recommendations for improving the process by which      

   warranty claims are recovered by the Department of Defense.             



                    SEC. 392. PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE      

          WITHIN DEPARTMENT OF DEFENSE.                                           

     The Secretary of Defense shall maintain a specific coordinated       

  program for the investigation of evidence of fraud, waste, and abuse    

  within the Department of Defense, particularly fraud, waste, and abuse  

  regarding finance and accounting matters.                               



          SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.  



     (a) Program Required.--The Secretary of the Navy shall carry out a   

  program to demonstrate expanded use of multitechnology automated reader 

  cards throughout the Navy and the Marine Corps. The demonstration       

  program shall include demonstration of the use of the so-called         

  ``smartship'' technology of the ship-to-shore work load/off load program

  of the Navy.                                                            

     (b) Period of Program.--The Secretary shall carry out the            

  demonstration program for two years beginning not later than January 1, 

  1998.                                                                   

     (c) Report.--Not later than 90 days after termination of the         

  demonstration program, the Secretary shall submit to Congress a report  

  on the results of the program.                                          

     (d) Funding.--Of the amount authorized to be appropriated pursuant to

  section 301(2) for operation and maintenance for the Navy, $36,000,000  

  shall be available for the demonstration program under this section, of 

  which $6,300,000 shall be available for demonstration of the use of the 

  so-called ``smartship'' technology of the ship-to-shore work load/off   

  load program of the Navy.                                               



          SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.      



     (a) Report and Plan Required.--Not later than March 1, 1998, the     

  Secretary of Defense shall submit to Congress a report containing a plan

  to reduce overhead costs of the supply management activities of the     

  Defense Logistics Agency and the military departments (known as         

  Inventory Control Points) so that the overhead costs for each fiscal    

  year after fiscal year 2000 do not exceed eight percent of net sales at 

  standard price by Inventory Control Points during that year.            

     (b) Additional Report Requirement.--In addition to the plan, the     

  report shall include the following:                                     

       (1) An identification of inherently governmental, core and noncore  

   functions in Inventory Control Points and Distribution Depots.          

       (2) A description of efforts, other than prime vendor and virtual   

   prime vendor, underway or proposed to improve the efficiency,           

   incentives, and accountability in Department of Defense supply,         

   inventory and warehousing services and rates.                           



       (3) An identification and description of the benchmarks established 

   in the warehousing, distribution, and supply functions of the Department

   and the relationship of the benchmarks to performance measurement       

   methods used in the private sector.                                     

       (4) A description of the outcome-oriented performance measures that 

   are currently being used to evaluate Inventory Control Points and       

   Distribution Depots.                                                    

       (5) A specification of any legislative, regulatory, or operational  

   impediments to achieving the requirement in subsection (a) and          

   implementing best business practices in the warehousing, distribution,  

   and supply functions of the Department.                                 

    (c)  Definitions.--For purposes of this section:                      



       (1) The term ``overhead costs'' means the total expenses of the     

   Inventory Control Points, excluding--                                   

     (A) annual materiel costs; and                                        



       (B) military and civilian personnel related costs, defined as       

   personnel compensation and benefits under the March 1996 Department of  

   Defense Financial Management Regulations, Volume 2A, Chapter 1, Budget  

   Account Title File (Object Classification Name/Code), object            

   classifications 200, 211, 220, 221, 222, and 301.                       

       (2) The term ``net sales at standard price'' has the meaning given  

   that term in the March 1996 Department of Defense Financial Management  

   Regulations, Volume 2B, Chapter 9, and displayed in ``Exhibit Fund--14  

   Revenue and Expenses'' for the supply management business areas.        



          SEC. 395. INVENTORY MANAGEMENT.                                         



     (a) Development and Submission of Schedule.--Not later than 180 days 

  after the date of the enactment of this Act, the Director of the Defense

  Logistics Agency shall develop and submit to Congress a schedule for    

  implementing within the agency, for the supplies and equipment described

  in subsection (b), inventory practices identified by the Director as    

  being the best commercial inventory practices for the acquisition and   

  distribution of such supplies and equipment consistent with military    

  requirements. The schedule shall provide for the implementation of such 

  practices to be completed not later than three years after date of the  

  enactment of this Act.                                                  

     (b) Covered Supplies and Equipment.--Subsection (a) shall apply to   

  the following types of supplies and equipment for the Department of     

  Defense:                                                                

     (1) Medical and pharmaceutical.                                       



     (2) Subsistence.                                                      



     (3) Clothing and textiles.                                            



     (4) Commercially available electronics.                               



     (5) Construction.                                                     



     (6) Industrial.                                                       



     (7) Automotive.                                                       



     (8) Fuel.                                                             



     (9) Facilities maintenance.                                           



     (c) Definition.--For purposes of this section, the term ``best       

  commercial inventory practice'' includes a so-called prime vendor       

  arrangement and any other practice that the Director determines will    

  enable the Defense Logistics Agency to reduce inventory levels and      

  holding costs while improving the responsiveness of the supply system to

  user needs.                                                             

     (d) Report on Expansion of Covered Supplies and Equipment.--Not later

  than March 1, 1998, the Comptroller General shall submit to Congress a  

  report evaluating the feasibility of expanding the list of covered      

  supplies and equipment under subsection (b) to include repairable items.



           TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS                             



                                  SUBTITLE A--ACTIVE FORCES                       



      Sec. 401. End strengths for active forces.                              



            Sec. 402. Permanent end strength levels to support two major      

      regional contingencies.                                                 

                                 SUBTITLE B--RESERVE FORCES                       



      Sec. 411. End strengths for Selected Reserve.                           



            Sec. 412. End strengths for Reserves on active duty in support of 

      the Reserves.                                                           

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



                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              



      Sec. 421. Authorization of appropriations for military personnel.       





           Subtitle A--Active Forces                                               



          SEC. 401. END STRENGTHS FOR ACTIVE FORCES.                              



     The Armed Forces are authorized strengths for active duty personnel  

  as of September 30, 1998, as follows:                                   

     (1) The Army, 495,000.                                                



     (2) The Navy, 390,802.                                                



     (3) The Marine Corps, 174,000.                                        



     (4) The Air Force, 371,577.                                           



                    SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR  

          REGIONAL CONTINGENCIES.                                                 

     (a) Change in Permanent End Strengths.--Subsection (b) of section 691

  of title 10, United States Code, is amended--                           

       (1) in paragraph (2), by striking out ``395,000'' and inserting in  

   lieu thereof ``390,802''; and                                           

       (2) in paragraph (4), by striking out ``381,000'' and inserting in  

   lieu thereof ``371,577''.                                               

     (b) Increased Flexibility for the Army.--Subsection (e) of such      

  section is amended by inserting ``or, in the case of the Army, by not   

  more than 1.5 percent'' before the period at the end.                   



           Subtitle B--Reserve Forces                                              



          SEC. 411. END STRENGTHS FOR SELECTED RESERVE.                           



     (a) In General.--The Armed Forces are authorized strengths for       

  Selected Reserve personnel of the reserve components as of September 30,

  1998, as follows:                                                       

     (1) The Army National Guard of the United States, 361,516.            



     (2) The Army Reserve, 208,000.                                        



     (3) The Naval Reserve, 94,294.                                        



     (4) The Marine Corps Reserve, 42,000.                                 



     (5) The Air National Guard of the United States, 108,002.             



     (6) The Air Force Reserve, 73,447.                                    



     (7) The Coast Guard Reserve, 8,000.                                   



     (b) Adjustments.--The end strengths prescribed by subsection (a) for 

  the Selected Reserve of any reserve component shall be proportionately  

  reduced by--                                                            

       (1) the total authorized strength of units organized to serve as    

   units of the Selected Reserve of such component which are on active duty

   (other than for training) at the end of the fiscal year, and            

       (2) the total number of individual members not in units organized to

   serve as units of the Selected Reserve of such component who are on     

   active duty (other than for training or for unsatisfactory participation

   in training) without their consent at the end of the fiscal year.       

    Whenever such units or such individual members are released from      

  active duty during any fiscal year, the end strength prescribed for such

  fiscal year for the Selected Reserve of such reserve component shall be 

  proportionately increased by the total authorized strengths of such     

  units and by the total number of such individual members.               

                    SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT

          OF THE RESERVES.                                                        

     Within the end strengths prescribed in section 411(a), the reserve   

  components of the Armed Forces are authorized, as of September 30, 1998,

  the following number of Reserves to be                                  



                    serving on full-time active duty or full-time duty, in the    

          case of members of the National Guard, for the purpose of organizing,   

          administering, recruiting, instructing, or training the reserve         

          components:                                                             

     (1) The Army National Guard of the United States, 22,310.             



     (2) The Army Reserve, 11,500.                                         



     (3) The Naval Reserve, 16,136.                                        



     (4) The Marine Corps Reserve, 2,559.                                  



     (5) The Air National Guard of the United States, 10,671.              



     (6) The Air Force Reserve, 867.                                       



          SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).         



     (a) Authorization for Fiscal Year 1998.--The minimum number of       

  military technicians (dual status) as of the last day of fiscal year    

  1998 for the reserve components of the Army and the Air Force           

  (notwithstanding section 129 of title 10, United States Code) shall be  

  the following:                                                          

     (1) For the Army Reserve, 5,503.                                      



     (2) For the Army National Guard of the United States, 23,125.         



     (3) For the Air Force Reserve, 9,802.                                 



     (4) For the Air National Guard of the United States, 22,853.          



     (b) Requests for Future Fiscal Years.--Section 115(g) of title 10,   

  United States Code, is amended by adding at the end the following new   

  sentence: ``In each budget submitted by the President to Congress under 

  section 1105 of title 31, the end strength requested for military       

  technicians (dual status) for each reserve component of the Army and Air

  Force shall be specifically set forth.''.                               

           Subtitle C--Authorization of Appropriations                             



          SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.       



     There is hereby authorized to be appropriated to the Department of   

  Defense for military personnel for fiscal year 1998 a total of          

  $69,470,505,000. The authorization in the preceding sentence supersedes 

  any other authorization of appropriations (definite or indefinite) for  

  such purpose for fiscal year 1998.                                      



           TITLE V--MILITARY PERSONNEL POLICY                                      



                            SUBTITLE A--OFFICER PERSONNEL POLICY                  



            Sec. 501. Limitation on number of general and flag officers who   

      may serve in positions outside their own service.                       

            Sec. 502. Exclusion of certain retired officers from limitation on

      period of recall to active duty.                                        

            Sec. 503. Clarification of officers eligible for consideration by 

      promotion boards.                                                       

            Sec. 504. Authority to defer mandatory retirement for age of      

      officers serving as chaplains.                                          

            Sec. 505. Increase in number of officers allowed to be frocked to 

      grades of colonel and Navy captain.                                     

            Sec. 506. Increased years of commissioned service for mandatory   

      retirement of regular generals and admirals in grades above major       

      general and rear admiral.                                               

            Sec. 507. Uniform policy for requirement of exemplary conduct by  

      commanding officers and others in authority.                            

            Sec. 508. Report on the command selection process for District    

      Engineers of the Army Corps of Engineers.                               

                            SUBTITLE B--RESERVE COMPONENT MATTERS                 



      Sec. 511. Individual Ready Reserve activation authority.                



      Sec. 512. Termination of Mobilization Income Insurance Program.         



            Sec. 513. Correction of inequities in medical and dental care and 

      death and disability benefits for reserve members who incur or aggravate

      an illness in the line of duty.                                         

            Sec. 514. Authority to permit non-unit assigned officers to be    

      considered by vacancy promotion board to general officer grades.        

            Sec. 515. Prohibition on use of Air Force Reserve AGR personnel   

      for Air Force base security functions.                                  

            Sec. 516. Involuntary separation of reserve officers in an        

      inactive status.                                                        

            Sec. 517. Federal status of service by National Guard members as  

      honor guards at funerals of veterans.                                   

                              SUBTITLE C--MILITARY TECHNICIANS                    



            Sec. 521. Authority to retain on the reserve active-status list   

      until age 60 military technicians in the grade of brigadier general.    

      Sec. 522. Military technicians (dual status).                           



      Sec. 523. Non-dual status military technicians.                         



            Sec. 524. Report on feasibility and desirability of conversion of 

      AGR personnel to military technicians (dual status).                    

             SUBTITLE D--MEASURES TO IMPROVE RECRUIT QUALITY AND REDUCE RECRUIT   

                                    ATTRITION                                     

      Sec. 531. Reform of military recruiting systems.                        



            Sec. 532. Improvements in medical prescreening of applicants for  

      military service.                                                       

      Sec. 533. Improvements in physical fitness of recruits.                 



                         SUBTITLE E--MILITARY EDUCATION AND TRAINING              



                             PART I--OFFICER EDUCATION PROGRAMS                   



            Sec. 541. Requirement for candidates for admission to United      

      States Naval Academy to take oath of allegiance.                        

      Sec. 542. Service academy foreign exchange program.                     



            Sec. 543. Reimbursement of expenses incurred for instruction at   

      service academies of persons from foreign countries.                    

      Sec. 544. Continuation of support to senior military colleges.          



            Sec. 545. Report on making United States nationals eligible for   

      participation in Senior Reserve Officers' Training Corps.               

            Sec. 546. Coordination of establishment and maintenance of Junior 

      Reserve Officers' Training Corps units to maximize enrollment and       

      enhance efficiency.                                                     

                              PART II--OTHER EDUCATION MATTERS                    



      Sec. 551. United States Naval Postgraduate School.                      



      Sec. 552. Community College of the Air Force.                           



            Sec. 553. Preservation of entitlement to educational assistance of

      members of the Selected Reserve serving on active duty in support of a  

      contingency operation.                                                  

                         PART III--TRAINING OF ARMY DRILL SERGEANTS               



      Sec. 556. Reform of Army drill sergeant selection and training process. 



            Sec. 557. Training in human relations matters for Army drill      

      sergeant trainees.                                                      

            SUBTITLE F--COMMISSION ON MILITARY TRAINING AND GENDER-RELATED ISSUES 



      Sec. 561. Establishment and composition of Commission.                  



      Sec. 562. Duties.                                                       



      Sec. 563. Administrative matters.                                       



      Sec. 564. Termination of Commission.                                    



      Sec. 565. Funding.                                                      



      Sec. 566. Subsequent consideration by Congress.                         



                         SUBTITLE G--MILITARY DECORATIONS AND AWARDS              



            Sec. 571. Purple Heart to be awarded only to members of the Armed 

      Forces.                                                                 

            Sec. 572. Eligibility for Armed Forces Expeditionary Medal for    

      participation in Operation Joint Endeavor or Operation Joint Guard.     

            Sec. 573. Waiver of time limitations for award of certain         

      decorations to specified persons.                                       

            Sec. 574. Clarification of eligibility of members of Ready Reserve

      for award of service medal for heroism.                                 

            Sec. 575. One-year extension of period for receipt of             

      recommendations for decorations and awards for certain military         

      intelligence personnel.                                                 

            Sec. 576. Eligibility of certain World War II military            

      organizations for award of unit decorations.                            

      Sec. 577. Retroactivity of Medal of Honor special pension.              



                            SUBTITLE H--MILITARY JUSTICE MATTERS                  



            Sec. 581. Establishment of sentence of confinement for life       

      without eligibility for parole.                                         

            Sec. 582. Limitation on appeal of denial of parole for offenders  

      serving life sentence.                                                  

                                  SUBTITLE I--OTHER MATTERS                       



      Sec. 591. Sexual harassment investigations and reports.                 



            Sec. 592. Sense of the Senate regarding study of matters relating 

      to gender equity in the Armed Forces.                                   

            Sec. 593. Authority for personnel to participate in management of 

      certain non-Federal entities.                                           



            Sec. 594. Treatment of participation of members in Department of  

      Defense civil military programs.                                        

            Sec. 595. Comptroller General study of Department of Defense civil

      military programs.                                                      

      Sec. 596. Establishment of public affairs specialty in the Army.        



      Sec. 597. Grade of defense attache AE1 in France.                       



      Sec. 598. Report on crew requirements of WC 130J aircraft.              



            Sec. 599. Improvement of missing persons authorities applicable to

      Department of Defense.                                                  



           Subtitle A--Officer Personnel Policy                                    





                    SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS   

          WHO MAY SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.                   

     (a) In General.--Chapter 41 of title 10, United States Code, is      

  amended by adding at the end the following new section:                 

                    ``721. General and flag officers: limitation on appointments, 

          assignments, details, and duties outside an officer's own service       

     ``(a) Limitation.--An officer described in subsection (b) may not be 

  appointed, assigned, or detailed for a period in excess of 180 days to a

  position external to that officer's armed force if, immediately         

  following such appointment, assignment, or detail, the number of        

  officers described in subsection (b) serving in positions external to   

  such officers' armed force would be in excess of 26.5 percent of the    

  total number of the officers described in subsection (b).               

     ``(b) Covered Officers.--The officers covered by subsection (a), and 

  to be counted for the purposes of the limitation in that subsection, are

  the following:                                                          

       ``(1) Any general or flag officer counted for purposes of section   

   526(a) of this title.                                                   

       ``(2) Any general or flag officer serving in a joint duty assignment

   position designated by the Chairman of the Joint Chiefs of Staff under  

   section 526(b) of this title.                                           

       ``(3) Any colonel or Navy captain counted for purposes of section   

   777(d)(1) of this title.                                                

     ``(c) External Positions.--For purposes of this section, the         

  following positions shall be considered to be external to an officer's  

  armed force:                                                            

       ``(1) Any position (including a position in joint education) that is

   a joint duty assignment for purposes of chapter 38 of this title.       

       ``(2) Any position in the Office of the Secretary of Defense, a     

   Defense Agency, or a Department of Defense Field Activity.              

       ``(3) Any position in the Joint Chiefs of Staff, the Joint Staff, or

   the headquarters of a combatant command (as defined in chapter 6 of this

   title).                                                                 

     ``(4) Any position in the National Guard Bureau.                      



       ``(5) Any position outside the Department of Defense, including any 

   position in the headquarters of the North Atlantic Treaty Organization  

   or any other international military command, any combined or            

   multinational command, or military mission.                             

     ``(d) Treatment of Officers Holding Multiple Positions.--(1) If an   

  officer described in subsection (b) simultaneously holds both a position

  external to that officer's armed force and another position not external

  to that officer's armed force, the Secretary of Defense shall determine 

  whether that officer shall be counted for the purposes of this section. 

     ``(2) The Secretary of Defense shall submit to Congress an annual    

  report on the number of officers to whom paragraph (1) was applicable   

  during the year covered by the report. The report shall set forth the   

  determination made by the Secretary under that paragraph in each such   

  case.                                                                   

     ``(e) Assignments, Etc., For Periods in Excess of 180 Days.--For     

  purposes of this section, the appointment, assignment, or detail of an  

  officer to a position shall be considered to be for a period in excess  

  of 180 days unless the appointment, assignment, or detail specifies that

  it is made for a period of 180 days or less.                            

     ``(f) Waiver During Period of War or National Emergency.--The        

  President may suspend the operation of this section during any period of

  war or of national emergency declared by Congress or the President.''.  



     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``721. General and flag officers: limitation on appointments,     

      assignments, details, and duties outside an officer's own service.''.   



                    SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM          

          LIMITATION ON PERIOD OF RECALL TO ACTIVE DUTY.                          

    Section 688(e) of title 10, United States Code, is amended--          



     (1) by inserting ``(1)'' before ``A member''; and                     



     (2) by adding at the end the following:                               



    ``(2) Paragraph (1) does not apply to the following officers:         



       ``(A) A chaplain who is assigned to duty as a chaplain for the      

   period of active duty to which ordered.                                 

       ``(B) A health care professional (as characterized by the Secretary 

   concerned) who is assigned to duty as a health care professional for the

   period of active duty to which ordered.                                 

       ``(C) An officer assigned to duty with the American Battle Monuments

   Commission for the period of active duty to which ordered.''.           

                    SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION

          BY PROMOTION BOARDS.                                                    

     (a) Officers on the Active-Duty List.--Section 619(d) of title 10,   

  United States Code, is amended--                                        

       (1) by striking out ``grade--'' in the matter preceding paragraph   

   (1) and inserting in lieu thereof ``grade any of the following          

   officers:'';                                                            

     (2) in paragraph (1)--                                                



       (A) by striking out ``an officer'' and inserting in lieu thereof    

   ``An officer''; and                                                     

       (B) by striking out ``; or'' at the end and inserting in lieu       

   thereof a period;                                                       

       (3) by redesignating paragraph (2) as paragraph (3) and in that     

   paragraph striking out ``an officer'' and inserting in lieu thereof ``An

   officer''; and                                                          

     (4) by inserting after paragraph (1) the following new paragraph (2): 



       ``(2) An officer who is recommended for promotion to that grade in  

   the report of an earlier selection board convened under that section, in

   the case of such a report that has not yet been approved by the         

   President.''.                                                           

     (b) Officers on the Reserve Active-Status List.--Section 14301(c) of 

  such title is amended--                                                 

       (1) by striking out ``grade--'' in the matter preceding paragraph   

   (1) and inserting in lieu thereof ``grade any of the following          

   officers:'';                                                            

       (2) by striking out ``an officer'' in each of paragraphs (1), (2),  

   and (3) and inserting in lieu thereof ``An officer'';                   

       (3) by striking out the semicolon at the end of paragraph (1) and   

   inserting in lieu thereof a period;                                     

       (4) by striking out ``; or'' at the end of paragraph (2) and        

   inserting in lieu thereof a period;                                     

       (5) by redesignating paragraphs (2) and (3), as so amended, as      

   paragraphs (3) and (4), respectively, and in each such paragraph        

   striking out ``the next higher grade'' and inserting in lieu thereof    

   ``that grade''; and                                                     

     (6) by inserting after paragraph (1) the following new paragraph (2): 



       ``(2) An officer who is recommended for promotion to that grade in  

   the report of an earlier selection board convened under a provision     

   referred to in paragraph (1), in the case of such a report that has not 

   yet been approved by the President.''.                                  

     (c) Clarifying Amendments.--Paragraphs (3) and (4) of section        

  14301(c) of such title, as redesignated and amended by subsection (b),  

  are each amended by inserting before the period at the end the          

  following: ``, if that nomination is pending before the Senate''.       



     (d) Effective Date.--The amendments made by this section shall take  

  effect on the date of the enactment of this Act and shall apply with    

  respect to selection boards that are convened under section 611(a),     

  14101(a), or 14502 of title 10, United States Code, on or after that    

  date.                                                                   

                    SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF  

          OFFICERS SERVING AS CHAPLAINS.                                          

     (a) Authority for Deferral of Retirement for Chaplains.--Subsection  

  (c) of section 1251 of title 10, United States Code, is amended--       

       (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and   

   (4), respectively; and                                                  

     (2) by inserting after paragraph (1) the following new paragraph (2): 



     ``(2) The Secretary concerned may defer the retirement under         

  subsection (a) of an officer who is appointed or designated as a        

  chaplain if the Secretary determines that such deferral is in the best  

  interest of the military department concerned.''.                       

     (b) Authority for Deferral of Retirement for Chief and Deputy Chief  

  of Chaplains.--Such section is further amended by adding at the end the 

  following new subsection:                                               

     ``(d) The Secretary concerned may defer the retirement under         

  subsection (a) of an officer who is the Chief of Chaplains or Deputy    

  Chief of Chaplains of that officer's armed force. Such a deferment may  

  not extend beyond the first day of the month following the month in     

  which the officer becomes 68 years of age.''.                           

     (c) Qualification for Service as Navy Chief of Chaplains or Deputy   

  Chief of Chaplains.--(1) Section 5142(b) of such title is amended by    

  striking out ``, who are not on the retired list,''.                    

     (2) Section 5142a of such title is amended by striking out ``, who is

  not on the retired list,''.                                             

                    SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED

          TO GRADES OF COLONEL AND NAVY CAPTAIN.                                  

     Section 777(d)(2) of title 10, United States Code, is amended by     

  inserting after ``1 percent'' the following: ``, or, for the grades of  

  colonel and Navy captain, 2 percent,''.                                 

                    SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR         

          MANDATORY RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN GRADES ABOVE   

          MAJOR GENERAL AND REAR ADMIRAL.                                         

     (a) Years of Service.--Section 636 of title 10, United States Code,  

  is amended--                                                            

       (1) by striking out ``Except as provided'' and inserting in lieu    

   thereof ``(a) Major Generals and Rear Admirals Serving in Grade.--Except

   as provided in subsection (b) or (c) and''; and                         

     (2) by adding at the end the following:                               



     ``(b) Lieutenant Generals and Vice Admirals.--In the administration  

  of subsection (a) in the case of an officer who is serving in the grade 

  of lieutenant general or vice admiral, the number of years of active    

  commissioned service applicable to the officer is 38 years.             

     ``(c) Generals and Admirals.--In the administration of subsection (a)

  in the case of an officer who is serving in the grade of general or     

  admiral, the number of years of active commissioned service applicable  

  to the officer is 40 years.''.                                          

     (b) Section Heading.--The heading of such section is amended to read 

  as follows:                                                             

                    ``636. Retirement for years of service: regular officers in   

          grades above brigadier general and rear admiral (lower half)''.         

     (c) Clerical Amendment.--The item relating to such section in the    

  table of sections at the beginning of subchapter III of chapter 36 of   

  such title is amended to read as follows:                               





            ``636. Retirement for years of service: regular officers in grades

      above brigadier general and rear admiral (lower half).''.               



                    SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT 

          BY COMMANDING OFFICERS AND OTHERS IN AUTHORITY.                         

     (a) Army.--(1) Chapter 345 of title 10, United States Code, is       

  amended by adding at the end the following new section:                 

          ``3583. Requirement of exemplary conduct                                



     ``All commanding officers and others in authority in the Army are    

  required--                                                              

       ``(1) to show in themselves a good example of virtue, honor,        

   patriotism, and subordination;                                          

       ``(2) to be vigilant in inspecting the conduct of all persons who   

   are placed under their command;                                         

       ``(3) to guard against and suppress all dissolute and immoral       

   practices, and to correct, according to the laws and regulations of the 

   Army, all persons who are guilty of them; and                           

       ``(4) to take all necessary and proper measures, under the laws,    

   regulations, and customs of the Army, to promote and safeguard the      

   morale, the physical well-being, and the general welfare of the officers

   and enlisted persons under their command or charge.''.                  

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





      ``3583. Requirement of exemplary conduct.''.                            







     (b) Air Force.--(1) Chapter 845 of title 10, United States Code, is  

  amended by adding at the end the following new section:                 

          ``8583. Requirement of exemplary conduct                                



     ``All commanding officers and others in authority in the Air Force   

  are required--                                                          

       ``(1) to show in themselves a good example of virtue, honor,        

   patriotism, and subordination;                                          

       ``(2) to be vigilant in inspecting the conduct of all persons who   

   are placed under their command;                                         

       ``(3) to guard against and suppress all dissolute and immoral       

   practices, and to correct, according to the laws and regulations of the 

   Air Force, all persons who are guilty of them; and                      

       ``(4) to take all necessary and proper measures, under the laws,    

   regulations, and customs of the Air Force, to promote and safeguard the 

   morale, the physical well-being, and the general welfare of the officers

   and enlisted persons under their command or charge.''.                  

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





      ``8583. Requirement of exemplary conduct.''.                            





                    SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT

          ENGINEERS OF THE ARMY CORPS OF ENGINEERS.                               

     Not later than March 31, 1998, the Secretary of the Army shall submit

  to Congress a report on the command selection process for officers      

  serving as District Engineers of the Corps of Engineers. The report     

  shall include the following:                                            

     (1) An identification of each major Corps of Engineers project that-- 



       (A) is being carried out by each District Engineer as of the date of

   the report; or                                                          

       (B) is being planned by each District Engineer to be carried out    

   during the five-year period beginning on the date of the report.        

       (2) The expected start and completion dates, during that period, for

   each major phase of each project identified under paragraph (1).        

       (3) The expected dates for changes in the District Engineer in each 

   Corps of Engineers District during that period.                         

       (4) A plan for optimizing the timing of changes in the District     

   Engineer in each such District so that there is minimal disruption to   

   major phases of major Corps of Engineers projects.                      

       (5) A review of the effect on the Corps of Engineers, and on the    

   mission of each District of the Corps of Engineers, of allowing major   

   command tours of District Engineers to be of two-to-four years in       

   duration, with the selection of the exact timing of the change of       

   command to be at the discretion of the Chief of Engineers, who shall act

   with the goal of optimizing the timing of each change so that it has    

   minimal disruption on the mission of the District Engineer.             

           Subtitle B--Reserve Component Matters                                   



          SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.                



     (a) IRR Members Subject To Order to Active Duty Other Than During War

  or National Emergency.--Section 10144 of title 10, United States Code,  

  is amended--                                                            

     (1) by inserting ``(a)'' before ``Within the Ready Reserve''; and     



     (2) by adding at the end the following new subsection:                



     ``(b)(1) Within the Individual Ready Reserve of each reserve         

  component there is a category of members, as designated by the Secretary

  concerned, who are subject to being ordered to active duty involuntarily

  in accordance with section 12304 of this title. A member may not be     

  placed in that mobilization category unless--                           

     ``(A) the member volunteers for that category; and                    



       ``(B) the member is selected for that category by the Secretary     

   concerned, based upon the needs of the service and the grade and        

   military skills of that member.                                         

     ``(2) A member of the Individual Ready Reserve may not be carried in 

  such mobilization category of members after the end of the 24-month     

  period beginning on the date of the separation of the member from active

  service.                                                                

     ``(3) The Secretary shall designate the grades and military skills or

  specialities of members to be eligible for placement in such            

  mobilization category.                                                  

     ``(4) A member in such mobilization category shall be eligible for   

  benefits (other than pay and training) as are normally available to     

  members of the Selected Reserve, as determined by the Secretary of      

  Defense.''.                                                             



     (b) Criteria for Ordering to Active Duty.--Subsection (a) of section 

  12304 of title 10, United States Code, is amended by inserting after    

  ``of this title),'' the following: ``or any member in the Individual    

  Ready Reserve mobilization category and designated as essential under   

  regulations prescribed by the Secretary concerned,''.                   

    (c)  Maximum Number.--Subsection (c) of such section is amended--     



       (1) by inserting ``and the Individual Ready Reserve'' after         

   ``Selected Reserve''; and                                               

       (2) by inserting ``, of whom not more than 30,000 may be members of 

   the Individual Ready Reserve'' before the period at the end.            

    (d)  Conforming Amendments.--Such section is further amended--        



       (1) in subsection (f), by inserting ``or Individual Ready Reserve'' 

   after ``Selected Reserve'';                                             

       (2) in subsection (g), by inserting ``, or any member of the        

   Individual Ready Reserve,'' after ``to serve as a unit''; and           

     (3) by adding at the end the following new subsection:                



     ``(i) For purposes of this section, the term `Individual Ready       

  Reserve mobilization category' means, in the case of any reserve        

  component, the category of the Individual Ready Reserve described in    

  section 10144(b) of this title.''.                                      

     (e) Clerical Amendments.--(1) The heading of such section is amended 

  to read as follows:                                                     

                    ``12304. Selected Reserve and certain Individual Ready Reserve

          members; order to active duty other than during war or national         

          emergency''.                                                            

     (2) The item relating to section 12304 in the table of sections at   

  the beginning of chapter 1209 of such title is amended to read as       

  follows:                                                                





            ``12304. Selected Reserve and certain Individual Ready Reserve    

      members; order to active duty other than during war or national         

      emergency.''.                                                           



          SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.         



     (a) In General.--Chapter 1214 of title 10, United States Code, is    

  amended by adding at the end the following new section:                 

          ``12533. Termination of program                                         



     ``(a) In General.--The Secretary shall terminate the insurance       

  program in accordance with this section.                                

     ``(b) Termination of New Enrollments.--The Secretary may not enroll a

  member of the Ready Reserve for coverage under the insurance program    

  after the date of the enactment of this section.                        

     ``(c) Termination of Coverage.--(1) The enrollment under the         

  insurance program of insured members other than insured members         

  described in paragraph (2) is terminated as of the date of the enactment

  of this section. The enrollment of an insured member described in       

  paragraph (2) is terminated as of the date of the termination of the    

  period of covered service of that member described in that paragraph.   

     ``(2) An insured member described in this paragraph is an insured    

  member who on the date of the enactment of this section is serving on   

  covered service for a period of service, or has been issued an order    

  directing the performance of covered service, that satisfies or would   

  satisfy the entitlement-to-benefits provisions of this chapter.         

     ``(d) Termination of Payment of Benefits.--The Secretary may not make

  any benefit payment under the insurance program after the date of the   

  enactment of this section other than to an insured member who on that   

  date (1) is serving on an order to covered service, (2) has been issued 

  an order directing performance of covered service, or (3) has served on 

  covered service before that date for which benefits under the program   

  have not been paid to the member.                                       

     ``(e) Termination of Insurance Fund.--The Secretary shall close the  

  Fund not later than 60 days after the date on which the last benefit    

  payment from the Fund is made. Any amount remaining in the Fund when    

  closed shall be covered into the Treasury as miscellaneous receipts.''. 

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





      ``12533. Termination of program.''.                                     





                    SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE 

          AND DEATH AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO INCUR OR      

          AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.                               

     (a) Medical and Dental Care for Members.--Section 1074a of title 10, 

  United States Code, is amended--                                        

       (1) in subsection (a)(3), by inserting ``while remaining overnight  

   immediately before the commencement of inactive-duty training, or''     

   after ``in the line of duty''; and                                      

     (2) by adding at the end the following new subsection:                



     ``(e) A member of a uniformed service described in paragraph (1)(A)  

  or (2)(A) of subsection (a) whose orders are modified or extended, while

  the member is being treated for (or recovering from) the injury,        

  illness, or disease incurred or aggravated in the line of duty, so as to

  result in active duty for a period of more than 30 days shall be        

  entitled, while the member remains on active duty, to medical and dental

  care on the same basis and to the same extent as members covered by     

  section 1074(a) of this title.''.                                       

     (b) Medical and Dental Care for Dependents.--Section 1076(a) of such 

  title is amended by striking out paragraph (2) and inserting in lieu    

  thereof the following new paragraph:                                    

     ``(2) A dependent referred to in paragraph (1) is a dependent of a   

  member of a uniformed service described in one of the following         

  subparagraphs:                                                          

       ``(A) A member who is on active duty for a period of more than 30   

   days or died while on that duty.                                        

       ``(B) A member who died from an injury, illness, or disease incurred

   or aggravated--                                                         



       ``(i) while the member was on active duty under a call or order to  

   active duty of 30 days or less, on active duty for training, or on      

   inactive-duty training; or                                              

       ``(ii) while the member was traveling to or from the place at which 

   the member was to perform, or had performed, such active duty, active   

   duty for training, or inactive-duty training.                           

       ``(C) A member who died from an injury, illness, or disease incurred

   or aggravated in the line of duty while the member remained overnight   

   immediately before the commencement of inactive-duty training, or while 

   the member remained overnight between successive periods of             

   inactive-duty training, at or in the vicinity of the site of the        

   inactive-duty training, if the site was outside reasonable commuting    

   distance from the member's residence.                                   

       ``(D) A member who incurred or aggravated an injury, illness, or    

   disease in the line of duty while serving on active duty for a period of

   30 days or less (or while traveling to or from the place of such duty)  

   and the member's orders are modified or extended, while the member is   

   being treated for (or recovering from) the injury, illness, or disease, 

   so as to result in active duty for a period of more than 30 days.       

   However, this subparagraph entitles the dependent to medical and dental 

   care only while the member remains on active duty.''.                   

     (c) Eligibility for Disability Retirement or Separation.--(1) Section

  1204(2) of such title is amended to read as follows:                    

     ``(2) the disability--                                                



       ``(A) was incurred before September 24, 1996, as the proximate      

   result of--                                                             

     ``(i) performing active duty or inactive-duty training;               



       ``(ii) traveling directly to or from the place at which such duty is

   performed; or                                                           

       ``(iii) an injury, illness, or disease incurred or aggravated while 

   remaining overnight, immediately before the commencement of             

   inactive-duty training, or while remaining overnight between successive 

   periods of inactive-duty training, at or in the vicinity of the site of 

   the inactive-duty training, if the site of the inactive-duty training is

   outside reasonable commuting distance of the member's residence; or     

       ``(B) is a result of an injury, illness, or disease incurred or     

   aggravated in line of duty after September 23, 1996--                   

     ``(i) while performing active duty or inactive-duty training;         



       ``(ii) while traveling directly to or from the place at which such  

   duty is performed; or                                                   

       ``(iii) while remaining overnight, immediately before the           

   commencement of inactive-duty training, or while remaining overnight    

   between successive periods of inactive-duty training, at or in the      

   vicinity of the site of the inactive-duty training, if the site of the  

   inactive-duty training is outside reasonable commuting distance of the  

   member's residence;''.                                                  

    (2) Section 1206 of such title is amended--                           



       (A) by redesignating paragraphs (2), (3), and (4) as paragraphs (3),

   (4), and (5), respectively, and                                         

     (B) by inserting after paragraph (1) the following new paragraph (2): 



       ``(2) the disability is a result of an injury, illness, or disease  

   incurred or aggravated in line of duty while--                          

     ``(A) performing active duty or inactive-duty training;               



       ``(B) traveling directly to or from the place at which such duty is 

   performed; or                                                           

       ``(C) while remaining overnight immediately before the commencement 

   of inactive-duty training, or while remaining overnight between         

   successive periods of inactive-duty training, at or in the vicinity of  

   the site of the inactive-duty training, if the site is outside          

   reasonable commuting distance of the member's residence;''.             

     (d) Conforming Amendments and Related Clerical Amendments.--(1) The  

  heading of section 1204 of title 10, United States Code, is amended to  

  read as follows:                                                        

                    ``1204. Members on active duty for 30 days or less or on      

          inactive-duty training: retirement''.                                   

     (2) The heading of section 1206 of such title is amended to read as  

  follows:                                                                

                    ``1206. Members on active duty for 30 days or less or on      

          inactive-duty training: separation''.                                   

     (3) The table of sections at the beginning of chapter 61 of such     

  title is amended--                                                      

       (A) by striking out the item relating to section 1204 and inserting 

   in lieu thereof the following:                                          





            ``1204. Members on active duty for 30 days or less or on          

      inactive-duty training: retirement.'';                                  





   and                                                                     



       (B) by striking out the item relating to section 1206 and inserting 

   in lieu thereof the following:                                          





            ``1206. Members on active duty for 30 days or less or on          

      inactive-duty training: separation.''.                                  





     (e) Recovery, Care, and Disposition of Remains.--Section             

  1481(a)(2)(D) of such title is amended by inserting ``remaining         

  overnight immediately before the commencement of inactive-duty training,

  or'' after ``(D)''.                                                     

     (f) Entitlement to Basic Pay.--Section 204 of title 37, United States

  Code, is amended by inserting ``while remaining overnight immediately   

  before the commencement of inactive-duty training, or'' in subsections  

  (g)(1)(D) and (h)(1)(D) after ``in line of duty''.                      

     (g) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) of

  title 37, United States Code, is amended by inserting ``while remaining 

  overnight immediately before the commencement of inactive-duty training,

  or'' after ``in line of duty''.                                         



                    SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE

          CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER GRADES.        

     (a) Convening of Selection Boards.--Section 14101(a)(2) of title 10, 

  United States Code, is amended by striking out ``(except in the case of 

  a board convened to consider officers as provided in section 14301(e) of

  this title)''.                                                          

     (b) Eligibility for Consideration of Certain Army Officers.--Section 

  14301 of such title is amended--                                        

     (1) by striking out subsection (e); and                               



       (2) by redesignating subsections (f) and (g) as subsections (e) and 

   (f), respectively.                                                      

     (c) General Officer Promotions.--Section 14308 of such title is      

  amended--                                                               

       (1) in subsection (e)(2), by inserting ``a grade below colonel in'' 

   after ``(2) an officer in''; and                                        

     (2) in subsection (g)--                                               



       (A) by inserting ``or the Air Force'' in the first sentence after   

   ``of the Army'' the first place it appears;                             

       (B) by striking out ``in that grade'' in the first sentence and all 

   that follows through ``Secretary of the Army'' and inserting in lieu    

   thereof ``in the Army Reserve or the Air Force Reserve, as the case may 

   be, in that grade''; and                                                

     (C) by striking out the second sentence.                              



     (d) Vacancy Promotions.--Section 14315(b)(1) of such title is amended

  by striking out ``duties'' in clause (A) and all that follows through   

  ``as a unit,'' and inserting in lieu thereof ``duties of a general      

  officer of the next higher reserve grade in the Army Reserve,''.        

                    SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR         

          PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.                        

     (a) In General.--Chapter 1215 of title 10, United States Code, is    

  amended by striking out                                                 

                                  ``[NO PRESENT SECTIONS]''                       



  and inserting in lieu thereof the following:                            







      ``Sec.                                                                  



            12551. Prohibition of use of Air Force Reserve AGR personnel for  

      Air Force base security functions.                                      



                    ``12551. Prohibition of use of Air Force Reserve AGR personnel

          for Air Force base security functions                                   



     ``(a) Limitation.--The Secretary of the Air Force may not use members

  of the Air Force Reserve who are AGR personnel for the performance of   

  force protection, base security, or security police functions at an Air 

  Force facility in the United States.                                    

     ``(b) AGR Personnel Defined.--In this section, the term `AGR         

  personnel' means members of the Air Force Reserve who are on active duty

  (other than for training) in connection with organizing, administering, 

  recruiting, instructing, or training the Air Force Reserve.''.          

     (b) Clerical Amendment.--The items relating to chapter 1215 in the   

  tables of chapters at the beginning of subtitle E, and at the beginning 

  of part II of subtitle E, are amended to read as follows:               





         ``1215. Miscellaneous Prohibitions and Penalties                       



        12551''.                                                               





                    SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN    

          INACTIVE STATUS.                                                        



     (a) Authority for Involuntary Separation of Certain Inactive Status  

  Officers.--Section 12683(b) of title 10, United States Code, is         

  amended--                                                               

       (1) in the matter preceding paragraph (1), by striking out          

   ``apply--'' and inserting in lieu thereof ``apply to any of the         

   following:''; and                                                       

     (2) by adding at the end the following new paragraph:                 



       ``(4) a separation of an officer who is in an inactive status in the

   Standby Reserve and who is not qualified for transfer to the Retired    

   Reserve or is qualified for transfer to the Retired Reserve and does not

   apply for such a transfer.''.                                           



    (b)  Stylistic Amendments.--Such section is further amended--         



       (1) in paragraphs (1), (2), and (3), by striking out ``to a'' and   

   inserting in lieu thereof ``A'';                                        

       (2) by striking out the semicolon at the end of paragraph (1) and   

   inserting in lieu thereof a period; and                                 

       (3) by striking out ``; and'' at the end of paragraph (2) and       

   inserting in lieu thereof a period.                                     



                    SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS 

          AS HONOR GUARDS AT FUNERALS OF VETERANS.                                

     (a) In General.--(1) Chapter 1 of title 32, United States Code, is   

  amended by adding after section 113, as added by section 386(a), the    

  following new section:                                                  



          ``114. Honor guard functions at funerals for veterans                   



     ``(a) Subject to such regulations and restrictions as may be         

  prescribed by the Secretary concerned, the performance of honor guard   

  functions by members of the National Guard at funerals for veterans of  

  the armed forces may be treated by the Secretary concerned as a Federal 

  function for which appropriated funds may be used. Any such performance 

  of honor guard functions at such a funeral may not be considered to be a

  period of drill or training otherwise required.                         

     ``(b) This section does not authorize additional appropriations for  

  any fiscal year. Any expense of the National Guard that is incurred by  

  reason of this section shall be paid from appropriations otherwise      

  available for the National Guard.''.                                    

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding after the item relating to section    

  113, as added by section 386(b), the following new item:                





      ``114. Honor guard functions at funerals for veterans.''.               





           Subtitle C--Military Technicians                                        



                    SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS    

          LIST UNTIL AGE 60 MILITARY TECHNICIANS IN THE GRADE OF BRIGADIER        

          GENERAL.                                                                

     (a) Retention.--Section 14702(a) of title 10, United States Code, is 

  amended--                                                               

       (1) by striking out ``section 14506 or 14507'' and inserting in lieu

   thereof ``section 14506, 14507, or 14508''; and                         

       (2) by striking out ``or colonel'' and inserting in lieu thereof    

   ``colonel, or brigadier general''.                                      

     (b) Technical Amendment.--Section 14508(c) of such title is amended  

  by striking out ``not later than the date on which the officer becomes  

  60 years of age'' and inserting in lieu thereof ``not later than the    

  last day of the month in which the officer becomes 60 years of age''.   

          SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).                           



     (a) Definition.--Subsection (a) of section 10216 of title 10, United 

  States Code, is amended to read as follows:                             

     ``(a) In General.--(1) For purposes of this section and any other    

  provision of law, a military technician (dual status) is a Federal      

  civilian employee who--                                                 

       ``(A) is employed under section 3101 of title 5 or section 709 of   

   title 32;                                                               

       ``(B) is required as a condition of that employment to maintain     

   membership in the Selected Reserve; and                                 

       ``(C) is assigned to a position as a technician in the              

   administration and training of the Selected Reserve or in the           

   maintenance and repair of supplies or equipment issued to the Selected  

   Reserve or the armed forces.                                            

     ``(2) Military technicians (dual status) shall be authorized and     

  accounted for as a separate category of civilian employees.''.          

     (b) Unit Membership and Dual Status Requirement.--Such section is    

  further amended by striking out subsection (d) and inserting in lieu    

  thereof the following:                                                  



     ``(d) Unit Membership Requirement.--(1) Unless specifically exempted 

  by law, each individual who is hired as a military technician (dual     

  status) after December 1, 1995, shall be required as a condition of that

  employment to maintain membership in--                                  

       ``(A) the unit of the Selected Reserve by which the individual is   

   employed as a military technician; or                                   

       ``(B) a unit of the Selected Reserve that the individual is employed

   as a military technician to support.                                    

     ``(2) Paragraph (1) does not apply to a military technician (dual    

  status) who is employed by the Army Reserve in an area other than Army  

  Reserve troop program units.                                            

     ``(e) Dual Status Requirement.--(1) Funds appropriated for the       

  Department of Defense may not (except as provided in paragraph (2)) be  

  used for compensation as a military technician of any individual hired  

  as a military technician after February 10, 1996, who is no longer a    

  member of the Selected Reserve.                                         

     ``(2) The Secretary concerned may pay compensation described in      

  paragraph (1) to an individual described in that paragraph who is no    

  longer a member of the Selected Reserve for a period not to exceed six  

  months following the individual's loss of membership in the Selected    

  Reserve if the Secretary determines that such loss of membership was not

  due to the failure of that individual to meet military standards.''.    

     (c) National Guard Dual Status Requirement.--Section 709(b) of title 

  32, United States Code, is amended by striking out ``Except as          

  prescribed by the Secretary concerned, a technician'' and inserting in  

  lieu thereof ``A technician''.                                          

     (d) Plan for Clarification of Statutory Authority of Military        

  Technicians.--(1) The Secretary of Defense shall submit to Congress, as 

  part of the budget justification materials submitted in support of the  

  budget for the Department of Defense for fiscal year 1999, a legislative

  proposal to provide statutory authority and clarification under title 5,

  United States Code--                                                    

       (A) for the hiring, management, promotion, separation, and          

   retirement of military technicians who are employed in support of units 

   of the Army Reserve or Air Force Reserve; and                           

       (B) for the transition to the competitive service of an individual  

   who is hired as a military technician in support of a unit of the Army  

   Reserve or Air Force Reserve and who (as determined by the Secretary    

   concerned) fails to maintain membership in the Selected Reserve through 

   no fault of the individual.                                             

     (2) The legislative proposal under paragraph (1) shall be developed  

  in consultation with the Director of the Office of Personnel Management.

     (e) Conforming Repeal.--Section 8016 of Public Law 104 61 (109 Stat. 

  654; 10 U.S.C. 10101 note) is repealed.                                 

     (f) Cross-Reference Corrections.--Section 10216(c)(1) of title 10,   

  United States Code, is amended by striking out ``subsection (a)(1)'' in 

  subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof      

  ``subsection (b)(1)''.                                                  

     (g) Conforming Amendments to Section 10216.--Section 10216 of title  

  10, United States Code, is further amended as follows:                  

       (1) The heading of subsection (b) is amended by inserting ``( Dual  

   Status)'' after `` Military Technicians''.                              

     (2) Subsection (b)(1) is amended--                                    



     (A) by inserting ``(dual status)'' after ``for military technicians'';



       (B) by striking out ``dual status military technicians'' and        

   inserting in lieu thereof ``military technicians (dual status)''; and   

       (C) by inserting ``(dual status)'' after ``military technicians'' in

   subparagraph (C).                                                       

       (3) Subsection (b)(2) is amended by inserting ``(dual status)''     

   after ``military technicians'' both places it appears.                  

       (4) Subsection (b)(3) is amended by inserting ``(dual status)''     

   after ``Military technician''.                                          



     (5) Subsection (c) is amended--                                       



       (A) in the matter preceding paragraph (1)(A), by inserting ``(dual  

   status)'' after ``military technicians'';                               

       (B) in paragraph (1), by striking out ``dual-status technicians'' in

   subparagraphs (A), (B), (C), and (D) and inserting in lieu thereof      

   ``military technicians (dual status)'';                                 

       (C) in paragraph (2)(A), by inserting ``(dual status)'' after       

   ``military technician''; and                                            

       (D) in paragraph (2)(B), by striking out ``delineate--'' and all    

   that follows through ``or other reasons'' in clause (ii) and inserting  

   in lieu thereof ``delineate the specific force structure reductions''.  

     (h) Clerical Amendments.--(1) The heading of section 10216 of such   

  title is amended to read as follows:                                    



          ``10216. Military technicians (dual status)''.                          





     (2) The item relating to such section in the table of sections at the

  beginning of chapter 1007 of such title is amended to read as follows:  





      ``10216. Military technicians (dual status).''.                         







     (i) Other Conforming Amendments.--(1) Section 115(g) of such title is

  amended by inserting ``(dual status)'' in the first sentence after      

  ``military technicians'' and in the second sentence after ``military    

  technician''.                                                           

    (2) Section 115a(h) of such title is amended--                        



       (A) by inserting ``(displayed in the aggregate and separately for   

   military technicians (dual status) and non-dual status military         

   technicians)'' in the matter preceding paragraph (1) after ``of the     

   following''; and                                                        

     (B) by striking out paragraph (3).                                    



          SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.                         



     (a) In General.--(1) Chapter 1007 of title 10, United States Code, is

  amended by adding at the end the following new section:                 



          ``10217. Non-dual status military technicians                           



     ``(a) Definition.--For the purposes of this section and any other    

  provision of law, a non-dual status military technician is a civilian   

  employee of the Department of Defense serving in a military technician  

  position who--                                                          

       ``(1) was hired as a military technician before the date of the     

   enactment of the National Defense Authorization Act for Fiscal Year 1998

   under any of the authorities specified in subsection (c); and           

       ``(2) as of the date of the enactment of that Act is not a member of

   the Selected Reserve or after such date ceased to be a member of the    

   Selected Reserve.                                                       

     ``(b) Employment Authorities.--The authorities referred to in        

  subsection (a) are the following:                                       

     ``(1) Section 10216 of this title.                                    



     ``(2) Section 709 of title 32.                                        



     ``(3) The requirements referred to in section 8401 of title 5.        



       ``(4) Section 8016 of the Department of Defense Appropriations Act, 

   1996 (Public Law 104 61; 109 Stat. 654), and any comparable provision of

   law enacted on an annual basis in the Department of Defense             

   Appropriations Acts for fiscal years 1984 through 1995.                 

       ``(5) Any memorandum of agreement between the Department of Defense 

   and the Office of Personnel Management providing for the hiring of      

   military technicians.''.                                                

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





      ``10217. Non-dual status military technicians.''.                       







     (b) Limitation.--The number of civilian employees of a military      

  department who are non-dual status military technicians as of September 

  30, 1998, may not exceed the following:                                 

     (1) For the Army Reserve, 1,500.                                      



     (2) For the Army National Guard of the United States, 2,400.          



     (3) For the Air Force Reserve, 0.                                     





     (4) For the Air National Guard of the United States, 450.             



     (c) Report Required.--Not later than 90 days after the date of the   

  enactment of this Act, the Secretary of Defense shall submit to Congress

  a report containing the number of military technician positions that are

  held by non-dual status military technicians as of September 30, 1997,  

  shown separately for each of the following:                             

     (1) The Army Reserve.                                                 



     (2) The Army National Guard of the United States.                     



     (3) The Air Force Reserve.                                            



     (4) The Air National Guard of the United States.                      



     (d) Plan for Full Utilization of Military Technicians ( Dual Status  

  ).--(1) Not later than 180 days after the date of the enactment of this 

  Act, the Secretary of Defense shall submit to Congress a plan for       

  ensuring that, on and after September 30, 2007, all military technician 

  positions are held only by military technicians (dual status).          

     (2) The plan shall provide for achieving, by September 30, 2002, a 50

  percent reduction, by conversion of positions or otherwise, in the      

  number of non-dual status military technicians that are holding military

  technicians positions, as compared with the number of non-dual status   

  technicians that held military technician positions as of September 30, 

  1997, as specified in the report under subsection (c).                  

     (3) Among the alternative actions to be considered in developing the 

  plan, the Secretary shall consider the feasibility and cost of each of  

  the following:                                                          

     (A) Eliminating or consolidating technician functions and positions.  



       (B) Contracting with private sector sources for the performance of  

   functions performed by military technicians.                            

       (C) Converting non-dual status military technician positions to     

   military technician (dual status) positions or to positions in the      

   competitive service or, in the case of positions of the Army National   

   Guard of the United States or the Air National Guard of the United      

   States, to positions of State employment.                               

       (D) Use of incentives to facilitate attainment of the objectives    

   specified for the plan in paragraphs (1) and (2).                       

     (4) The Secretary shall submit with the plan any recommendations for 

  legislation that the Secretary considers necessary to carry out the     

  plan.                                                                   

     (e) Definitions for Categories of Military Technicians.--In this     

  section:                                                                

       (1) The term ``non-dual status military technician'' has the meaning

   given that term in section 10217 of title 10, United States Code, as    

   added by subsection (a).                                                

       (2) The term ``military technician (dual status)'' has the meaning  

   given the term in section 10216(a) of such title.                       

                    SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION

          OF AGR PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).                 

     (a) Report Required.--Not later than January 1, 1998, the Secretary  

  of Defense shall submit to Congress a report on the feasibility and     

  desirability of conversion of AGR personnel to military technicians     

  (dual status). The report shall--                                       

     (1) identify advantages and disadvantages of such a conversion;       



       (2) identify possible savings if such a conversion were to be       

   carried out; and                                                        

       (3) set forth the recommendation of the Secretary as to whether such

   a conversion should be made.                                            

     (b) AGR Personnel Defined.--For purposes of subsection (a), the term 

  ``AGR personnel'' means members of the Army or Air Force reserve        

  components who are on active duty (other than for training) in          

  connection with organizing, administering, recruiting, instructing, or  

  training their respective reserve components.                           



                      Subtitle D--Measures To Improve Recruit Quality and Reduce   

           Recruit Attrition                                                       



          SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.                        



     (a) In General.--The Secretary of Defense shall carry out reforms in 

  the recruiting systems of the Army, Navy, Air Force, and Marine Corps in

  order to improve the quality of new recruits and to reduce attrition    

  among recruits.                                                         

     (b) Specific Reforms.--As part of the reforms in military recruiting 

  systems to be undertaken under subsection (a), the Secretary shall take 

  the following steps:                                                    

       (1) Improve the system of pre-enlistment waivers and separation     

   codes used for recruits by (A) revising and updating those waivers and  

   codes to allow more accurate and useful data collection about those     

   separations, and (B) prescribing regulations to ensure that those       

   waivers and codes are interpreted in a uniform manner by the military   

   services.                                                               

       (2) Develop a reliable database for (A) analyzing (at both the      

   Department of Defense and service-level) data on reasons for attrition  

   of new recruits, and (B) undertaking Department of Defense or           

   service-specific measures (or both) to control and manage such          

   attrition.                                                              

       (3) Require that the Secretary of each military department (A) adopt

   or strengthen incentives for recruiters to thoroughly prescreen         

   potential candidates for recruitment, and (B) link incentives for       

   recruiters, in part, to the ability of a recruiter to screen out        

   unqualified candidates before enlistment.                               

       (4) Require that the Secretary of each military department include  

   as a measurement of recruiter performance the percentage of persons     

   enlisted by a recruiter who complete initial combat training or basic   

   training.                                                               

       (5) Assess trends in the number and use of waivers over the 1991    

   1997 period that were issued to permit applicants to enlist with medical

   or other conditions that would otherwise be disqualifying.              
       (6) Require the Secretary of each military department to implement  

   policies and procedures (A) to ensure the prompt separation of recruits 

   who are unable to successfully complete basic training, and (B) to      

   remove those recruits from the training environment while separation    

   proceedings are pending.                                                

     (c) Report.--Not later than March 31, 1998, the Secretary shall      

  submit to Congress a report of the trends assessed under subsection     

  (b)(5). The information on those trends provided in the report shall be 

  shown by armed force and by category of waiver. The report shall include

  recommendations of the Secretary for changing, revising, or limiting the

  use of waivers referred to in that subsection.                          

                    SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS  

          FOR MILITARY SERVICE.                                                   

     (a) In General.--The Secretary of Defense shall improve the medical  

  prescreening of applicants for entrance into the Army, Navy, Air Force, 

  or Marine Corps.                                                        

     (b) Specific Steps.--As part of those improvements, the Secretary    

  shall take the following steps:                                         

       (1) Require that each applicant for service in the Army, Navy, Air  

   Force, or Marine Corps (A) provide to the Secretary the name of the     

   applicant's medical insurer and the names of past medical providers, and

   (B) sign a release allowing the Secretary to request and obtain medical 

   records of the applicant.                                               

       (2) Require that the forms and procedures for medical prescreening  

   of applicants that are used by recruiters and by Military Entrance      

   Processing Commands be revised so as to ensure that medical questions   

   are specific, unambiguous, and tied directly to the types of medical    

   separations most common for recruits during basic training and follow-on

   training.                                                               

       (3) Add medical screening tests to the examinations of recruits     

   carried out by Military Entrance Processing Stations, provide more      

   thorough medical examinations to selected groups of applicants, or both,

   to the extent that the Secretary determines that to do so could be cost 

   effective in reducing attrition at basic training.                      

       (4) Provide for an annual quality control assessment of the         

   effectiveness of the Military Entrance Processing Commands in           

   identifying medical conditions in recruits that existed before          

   enlistment in the Armed Forces, each such assessment to be performed by 

   an agency or contractor other than the Military Entrance Processing     

   Commands.                                                               

          SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.                 



     (a) In General.--The Secretary of Defense shall take steps to improve

  the physical fitness of recruits before they enter basic training.      

     (b) Specific Steps.--As part of those improvements, the Secretary    

  shall take the following steps:                                         

       (1) Direct the Secretary of each military department to implement   

   programs under which new recruits who are in the Delayed Entry Program  

   are encouraged to participate in physical fitness activities before     

   reporting to basic training.                                            

       (2) Develop a range of incentives for new recruits to participate in

   physical fitness programs, as well as for those recruits who improve    

   their level of fitness while in the Delayed Entry Program, which may    

   include access to Department of Defense military fitness facilities, and

   access to military medical facilities in the case of a recruit who is   

   injured while participating in physical activities with recruiters or   

   other military personnel.                                               

       (3) Evaluate whether partnerships between recruiters and reserve    

   components, or other innovative arrangements, could provide a pool of   

   qualified personnel to assist in the conduct of physical training       

   programs for new recruits in the Delayed Entry Program.                 



           Subtitle E--Military Education and Training                             



           PART I--OFFICER EDUCATION PROGRAMS                                     



                    SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED  

          STATES NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.                        

     (a) Requirement.--Section 6958 of title 10, United States Code, is   

  amended by adding at the end the following new subsection:              

     ``(d) To be admitted to the Naval Academy, an appointee must take and

  subscribe to an oath prescribed by the Secretary of the Navy. If a      

  candidate for admission refuses to take and subscribe to the prescribed 

  oath, the candidate's appointment is terminated.''.                     

     (b) Exception for Midshipmen From Foreign Countries.--Section 6957 of

  such title is amended by adding at the end the following new subsection:

     ``(d) A person receiving instruction under this section is not       

  subject to section 6958(d) of this title.''.                            

          SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.                     



     (a) United States Military Academy.--(1) Chapter 403 of title 10,    

  United States Code, is amended by inserting after section 4344 the      

  following new section:                                                  

          ``4345. Exchange program with foreign military academies                



     ``(a) Exchange Program Authorized.--The Secretary of the Army may    

  permit a student enrolled at a military academy of a foreign country to 

  receive instruction at the Academy in exchange for a cadet receiving    

  instruction at that foreign military academy pursuant to an exchange    

  agreement entered into between the Secretary and appropriate officials  

  of the foreign country. Students receiving instruction at the Academy   

  under the exchange program shall be in addition to persons receiving    

  instruction at the Academy under section 4344 of this title.            

     ``(b) Limitations on Number and Duration of Exchanges.--An exchange  

  agreement under this section between the Secretary and a foreign country

  shall provide for the exchange of students on a one-for-one basis each  

  fiscal year. Not more than 10 cadets and a comparable number of students

  from all foreign military academies participating in the exchange       

  program may be exchanged during any fiscal year. The duration of an     

  exchange may not exceed the equivalent of one academic semester at the  

  Academy.                                                                

     ``(c) Costs and Expenses.--(1) A student from a military academy of a

  foreign country is not entitled to the pay, allowances, and emoluments  

  of a cadet by reason of attendance at the Academy under the exchange    

  program, and the Department of Defense may not incur any cost of        

  international travel required for transportation of such a student to   

  and from the sponsoring foreign country.                                

     ``(2) The Secretary may provide a student from a foreign country     

  under the exchange program, during the period of the exchange, with     

  subsistence, transportation within the continental United States,       

  clothing, health care, and other services to the same extent that the   

  foreign country provides comparable support and services to the         

  exchanged cadet in that foreign country.                                

     ``(3) The Academy shall bear all costs of the exchange program from  

  funds appropriated for the Academy. Expenditures in support of the      

  exchange program may not exceed $50,000 during any fiscal year.         

     ``(d) Application of Other Laws.--Subsections (c) and (d) of section 

  4344 of this title shall apply with respect to a student enrolled at a  

  military academy of a foreign country while attending the Academy under 

  the exchange program.                                                   

     ``(e) Regulations.--The Secretary shall prescribe regulations to     

  implement this section. Such regulations may include qualification      

  criteria and methods of selection for students of foreign military      

  academies to participate in the exchange program.''.                    



     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 4344 the following new  

  item:                                                                   





      ``4345. Exchange program with foreign military academies.''.            







     (b) Naval Academy.--(1) Chapter 603 of title 10, United States Code, 

  is amended by inserting after section 6957 the following new section:   

          ``6957a. Exchange program with foreign military academies               



     ``(a) Exchange Program Authorized.--The Secretary of the Navy may    

  permit a student enrolled at a military academy of a foreign country to 

  receive instruction at the Naval Academy in exchange for a midshipman   

  receiving instruction at that foreign military academy pursuant to an   

  exchange agreement entered into between the Secretary and appropriate   

  officials of the foreign country. Students receiving instruction at the 

  Naval Academy under the exchange program shall be in addition to persons

  receiving instruction at the Academy under section 6957 of this title.  

     ``(b) Limitations on Number and Duration of Exchanges.--An exchange  

  agreement under this section between the Secretary and a foreign country

  shall provide for the exchange of students on a one-for-one basis each  

  fiscal year. Not more than 10 midshipmen and a comparable number of     

  students from all foreign military academies participating in the       

  exchange program may be exchanged during any fiscal year. The duration  

  of an exchange may not exceed the equivalent of one academic semester at

  the Naval Academy.                                                      

     ``(c) Costs and Expenses.--(1) A student from a military academy of a

  foreign country is not entitled to the pay, allowances, and emoluments  

  of a midshipman by reason of attendance at the Naval Academy under the  

  exchange program, and the Department of Defense may not incur any cost  

  of international travel required for transportation of such a student to

  and from the sponsoring foreign country.                                

     ``(2) The Secretary may provide a student from a foreign country     

  under the exchange program, during the period of the exchange, with     

  subsistence, transportation within the continental United States,       

  clothing, health care, and other services to the same extent that the   

  foreign country provides comparable support and services to the         

  exchanged midshipman in that foreign country.                           

     ``(3) The Naval Academy shall bear all costs of the exchange program 

  from funds appropriated for the Academy. Expenditures in support of the 

  exchange program may not exceed $50,000 during any fiscal year.         

     ``(d) Application of Other Laws.--Subsections (c) and (d) of section 

  6957 of this title shall apply with respect to a student enrolled at a  

  military academy of a foreign country while attending the Naval Academy 

  under the exchange program.                                             

     ``(e) Regulations.--The Secretary shall prescribe regulations to     

  implement this section. Such regulations may include qualification      

  criteria and methods of selection for students of foreign military      

  academies to participate in the exchange program.''.                    

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 6957 the following new  

  item:                                                                   





      ``6957a. Exchange program with foreign military academies.''.           







     (c) Air Force Academy.--(1) Chapter 903 of title 10, United States   

  Code, is amended by inserting after section 9344 the following new      

  section:                                                                

          ``9345. Exchange program with foreign military academies                



     ``(a) Exchange Program Authorized.--The Secretary of the Air Force   

  may permit a student enrolled at a military academy of a foreign country

  to receive instruction at the Air Force Academy in exchange for an Air  

  Force cadet receiving instruction at that foreign military academy      

  pursuant to an exchange agreement entered into between the Secretary and

  appropriate officials of the foreign country. Students receiving        

  instruction at the Academy under the exchange program shall be in       

  addition to persons receiving instruction at the Academy under section  

  9344 of this title.                                                     

     ``(b) Limitations on Number and Duration of Exchanges.--An exchange  

  agreement under this section between the Secretary and a foreign country

  shall provide for the exchange of students on a one-for-one basis each  

  fiscal year. Not more than 10 Air Force cadets and a comparable number  

  of students from all foreign military academies participating in the    

  exchange program may be exchanged during any fiscal year. The duration  

  of an exchange may not exceed the equivalent of one academic semester at

  the Air Force Academy.                                                  

     ``(c) Costs and Expenses.--(1) A student from a military academy of a

  foreign country is not entitled to the pay, allowances, and emoluments  

  of an Air Force cadet by reason of attendance at the Air Force Academy  

  under the exchange program, and the Department of Defense may not incur 

  any cost of international travel required for transportation of such a  

  student to and from the sponsoring foreign country.                     

     ``(2) The Secretary may provide a student from a foreign country     

  under the exchange program, during the period of the exchange, with     

  subsistence, transportation within the continental United States,       

  clothing, health care, and other services to the same extent that the   

  foreign country provides comparable support and services to the         

  exchanged Air Force cadet in that foreign country.                      

     ``(3) The Air Force Academy shall bear all costs of the exchange     

  program from funds appropriated for the Academy. Expenditures in support

  of the exchange program may not exceed $50,000 during any fiscal year.  

     ``(d) Application of Other Laws.--Subsections (c) and (d) of section 

  9344 of this title shall apply with respect to a student enrolled at a  

  military academy of a foreign country while attending the Air Force     

  Academy under the exchange program.                                     



     ``(e) Regulations.--The Secretary shall prescribe regulations to     

  implement this section. Such regulations may include qualification      

  criteria and methods of selection for students of foreign military      

  academies to participate in the exchange program.''.                    

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 9344 the following new  

  item:                                                                   





      ``9345. Exchange program with foreign military academies.''.            







     (d) Repeal of Obsolete Limitation.--Section 9353(a) of such title is 

  amended by striking out ``After the date of the accrediting of the      

  Academy, the'' and inserting in lieu thereof ``The''.                   



                    SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION  

          AT SERVICE ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.                 

     (a) United States Military Academy.--Section 4344(b) of title 10,    

  United States Code, is amended--                                        

       (1) in paragraph (2), by striking out the period at the end and     

   inserting in lieu thereof the following: ``, except that the            

   reimbursement rates may not be less than the cost to the United States  

   of providing such instruction, including pay, allowances, and           

   emoluments, to a cadet appointed from the United States.''; and         

     (2) by adding at the end the following new paragraph:                 



     ``(3) The amount of reimbursement waived under paragraph (2) may not 

  exceed 35 percent of the per-person reimbursement amount otherwise      

  required to be paid by a foreign country under such paragraph, except in

  the case of not more than five persons receiving instruction at the     

  Academy under this section at any one time.''.                          

    (b)  Naval Academy.--Section 6957(b) of such title is amended--       



       (1) in paragraph (2), by striking out the period at the end and     

   inserting in lieu thereof the following: ``, except that the            

   reimbursement rates may not be less than the cost to the United States  

   of providing such instruction, including pay, allowances, and           

   emoluments, to a midshipman appointed from the United States.''; and    

     (2) by adding at the end the following new paragraph:                 



     ``(3) The amount of reimbursement waived under paragraph (2) may not 

  exceed 35 percent of the per-person reimbursement amount otherwise      

  required to be paid by a foreign country under such paragraph, except in

  the case of not more than five persons receiving instruction at the     

  Naval Academy under this section at any one time.''.                    

    (c)  Air Force Academy.--Section 9344(b) of such title is amended--   



       (1) in paragraph (2), by striking out the period at the end and     

   inserting in lieu thereof the following: ``, except that the            

   reimbursement rates may not be less than the cost to the United States  

   of providing such instruction, including pay, allowances, and           

   emoluments, to a cadet appointed from the United States.''; and         

     (2) by adding at the end the following new paragraph:                 



     ``(3) The amount of reimbursement waived under paragraph (2) may not 

  exceed 35 percent of the per-person reimbursement amount otherwise      

  required to be paid by a foreign country under such paragraph, except in

  the case of not more than five persons receiving instruction at the     

  Academy under this section at any one time.''.                          

     (d) Effective Date.--The amendments made by this section apply with  

  respect to students from a foreign country entering the United States   

  Military Academy, the United States Naval Academy, or the United States 

  Air Force Academy on or after May 1, 1998.                              



          SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.          



     (a) Definition of Senior Military Colleges.--For purposes of this    

  section, the term ``senior military colleges'' means the following:     

     (1) Texas A&M University.                                             



     (2) Norwich University.                                               



     (3) The Virginia Military Institute.                                  





     (4) The Citadel.                                                      



     (5) Virginia Polytechnic Institute and State University.              



     (6) North Georgia College and State University.                       



    (b)  Findings.--Congress finds the following:                         



       (1) The senior military colleges consistently have provided         

   substantial numbers of highly qualified, long-serving leaders to the    

   Armed Forces.                                                           

       (2) The quality of the military leaders produced by the senior      

   military colleges is, in part, the result of the rigorous military      

   environment imposed on students attending the senior military colleges  

   by the colleges, as well as the result of the long-standing close       

   support relationship between the Corps of Cadets at each college and the

   Reserve Officer Training Corps personnel at the colleges who serve as   

   effective leadership role models and mentors.                           

       (3) In recognition of the quality of the young leaders produced by  

   the senior military colleges, the Department of Defense and the military

   services have traditionally maintained special relationships with the   

   colleges, including the policy to grant active duty service in the Army 

   to graduates of the colleges who desire such service and who are        

   recommended for such service by their ROTC professors of military       

   science.                                                                

       (4) Each of the senior military colleges has demonstrated an ability

   to adapt its systems and operations to changing conditions in, and      

   requirements of, the Armed Forces without compromising the quality of   

   leaders produced and without interruption of the close relationship     

   between the colleges and the Department of Defense.                     

     (c) Sense of Congress.--In light of the findings in subsection (b),  

  it is the sense of Congress that--                                      

       (1) the proposed initiative of the Secretary of the Army to end the 

   commitment to active duty service for all graduates of senior military  

   colleges who desire such service and who are recommended for such       

   service by their ROTC professors of military science is short-sighted   

   and contrary to the long-term interests of the Army;                    

       (2) as they have in the past, the senior military colleges can and  

   will continue to accommodate to changing military requirements to ensure

   that future graduates entering military service continue to be officers 

   of superb quality who are quickly assimilated by the Armed Forces and   

   fully prepared to make significant contributions to the Armed Forces    

   through extended military careers; and                                  

       (3) decisions of the Secretary of Defense or the Secretary of a     

   military department that fundamentally and unilaterally change the      

   long-standing relationship of the Armed Forces with the senior military 

   colleges are not in the best interests of the Department of Defense or  

   the Armed Forces and are patently unfair to students who made decisions 

   to enroll in the senior military colleges on the basis of existing      

   Department and Armed Forces policy.                                     

     (d) Continuation of Support for Senior Military Colleges.--Section   

  2111a of title 10, United States Code, is amended--                     

     (1) by redesignating subsection (d) as subsection (f); and            



     (2) by inserting after subsection (c) the following new subsections:  



     ``(d) Termination or Reduction of Program Prohibited.--The Secretary 

  of Defense and the Secretaries of the military departments may not take 

  or authorize any action to terminate or reduce a unit of the Senior     

  Reserve Officers' Training Corps at a senior military college unless the

  termination or reduction is specifically requested by the college.      

     ``(e) Assignment to Active Duty.--(1) The Secretary of the Army shall

  ensure that a graduate of a senior military college who desires to serve

  as a commissioned officer on active duty upon graduation from the       

  college, who is medically and physically qualified for active duty, and 

  who is recommended for such duty by the professor of military science at

  the college, shall be assigned to active duty. This paragraph shall     

  apply to                                                                



                    a member of the program at a senior military college who      

          graduates from the college after March 31, 1997.                        

     ``(2) Nothing in this section shall be construed to prohibit the     

  Secretary of the Army from requiring a member of the program who        

  graduates from a senior military college to serve on active duty.''.    

     (e) Technical Corrections.--Subsection (f) of such section, as       

  redesignated by subsection (d)(1), is amended--                         

       (1) in paragraph (2), by striking out ``College'' and inserting in  

   lieu thereof ``University''; and                                        

       (2) in paragraph (6), by inserting before the period the following: 

   ``and State University''.                                               

     (f) Clerical Amendments.--(1) The heading of such section is amended 

  to read as follows:                                                     

          ``2111a. Support for senior military colleges''.                        



     (2) The item relating to such section in the table of sections at the

  beginning of chapter 103 of title 10, United States Code, is amended to 

  read as follows:                                                        





      ``2111a. Support for senior military colleges.''.                       





                    SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE   

          FOR PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING CORPS.           

     (a) Report.--Not later than 180 days after the date of the enactment 

  of this Act, the Secretary of Defense shall submit to the Committee on  

  National Security of the House of Representatives and the Committee on  

  Armed Services of the Senate a report on the utility of permitting      

  United States nationals to participate in the Senior Reserve Officers'  

  Training Corps program.                                                 

     (b) Required Information.--The Secretary shall include in the report 

  the following information:                                              

       (1) A brief history of the prior admission of United States         

   nationals to the Senior Reserve Officers' Training Corps, including the 

   success rate of these cadets and midshipmen and how that rate compared  

   to the average success rate of cadets and midshipmen during that same   

   period.                                                                 

       (2) The advantages of permitting United States nationals to         

   participate in the Senior Reserve Officers' Training Corps program.     

       (3) The disadvantages of permitting United States nationals to      

   participate in the Senior Reserve Officers' Training Corps program.     

       (4) The incremental cost of including United States nationals in the

   Senior Reserve Officers' Training Corps.                                

       (5) Methods of minimizing the risk that United States nationals     

   admitted to the Senior Reserve Officers' Training Corps would be later  

   disqualified because of ineligibility for United States citizenship.    

       (6) The recommendations of the Secretary on whether United States   

   nationals should be eligible to participate in the Senior Reserve       

   Officers' Training Corps program, and if so, a legislative proposal     

   which would, if enacted, achieve that result.                           



                    SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF    

          JUNIOR RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE ENROLLMENT AND

          ENHANCE EFFICIENCY.                                                     

     (a) Requirement.--Chapter 102 of title 10, United States Code, is    

  amended by adding at the end the following new section:                 

                    ``2032. Responsibility of the Secretaries of the military     

          departments to maximize enrollment and enhance efficiency               

     ``(a) Coordination.--The Secretary of each military department, in   

  establishing, maintaining, transferring, and terminating Junior Reserve 

  Officers' Training Corps units under section 2031 of this title, shall  

  do so in a coordinated manner that is designed to maximize enrollment in

  the Corps and to enhance administrative efficiency in the management of 

  the Corps.                                                              

     ``(b) Consideration of New School Openings and Consolidations.--In   

  carrying out subsection (a), the Secretary of a military department     

  shall take into consideration--                                         

     ``(1) openings of new schools;                                        



     ``(2) consolidations of schools; and                                  



       ``(3) the desirability of continuing the opportunity for            

   participation in the Corps by participants whose continued participation

   would otherwise be adversely affected by new school openings and        

   consolidations of schools.''.                                           

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``2032. Responsibility of the Secretaries of the military         

      departments to maximize enrollment and enhance efficiency.''.           



           PART II--OTHER EDUCATION MATTERS                                       



          SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.                      



     (a) Authority to Admit Enlisted Members as Students.--Section 7045 of

  title 10, United States Code, is amended--                              

     (1) in subsection (a)--                                               



     (A) by inserting ``(1)'' after ``(a)''; and                           



     (B) by adding at the end the following new paragraph:                 



     ``(2) The Secretary may permit an enlisted member of the armed forces

  who is assigned to the Naval Postgraduate School or to a nearby command 

  to receive instruction at the Naval Postgraduate School. Admission of   

  enlisted members for instruction under this paragraph shall be on a     

  space-available basis.'';                                               

     (2) in subsection (b)--                                               



       (A) by striking out ``the students'' and inserting in lieu thereof  

   ``officers''; and                                                       

       (B) by adding at the end the following new sentence: ``In the case  

   of an enlisted member permitted to receive instruction at the           

   Postgraduate School, the Secretary of the Navy shall charge that member 

   only for such costs and fees as the Secretary considers appropriate     

   (taking into consideration the admission of enlisted members on a       

   space-available basis).''; and                                          



     (3) in subsection (c)--                                               



       (A) by striking out ``officers'' both places it appears and         

   inserting in lieu thereof ``members''; and                              

       (B) by striking out ``same regulations'' and inserting in lieu      

   thereof ``such regulations, as determined appropriate by the Secretary  

   of the Navy,''.                                                         

     (b) Clerical Amendments.--(1) The heading of section 7045 of such    

  title is amended to read as follows:                                    

                    ``7045. Officers of the other armed forces; enlisted members: 

          admission''.                                                            

     (2) The item relating to section 7045 in the table of sections at the

  beginning of chapter 605 of such title is amended to read as follows:   





            ``7045. Officers of the other armed forces; enlisted members:     

      admission.''.                                                           





     (c) Amendment To Reflect Revised Civil Service Grade                 

  Structure.--Section 7043(b) of such title is amended by striking out    

  ``grade GS 18 of the General Schedule under section 5332 of title 5''   

  and inserting in lieu thereof ``level IV of the Executive Schedule''.   



          SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.                           



     (a) Expansion of Members Eligible for Program To Include Instructors 

  at Air Force Training Schools.--Section 9315 of title 10, United States 

  Code, is amended--                                                      

       (1) in subsection (a)(1), by striking out ``enlisted members of the 

   Air Force'' and inserting in lieu thereof ``enlisted members described  

   in subsection (b)'';                                                    

       (2) by striking out ``(b) Subject to subsection (c),'' and inserting

   in lieu thereof ``(c)(1) Subject to paragraph (2),'';                   

       (3) by redesignating subsection (c) as paragraph (2) and in that    

   paragraph redesignating clauses (1) and (2) as clauses (A) and (B),     

   respectively; and                                                       

       (4) by inserting after subsection (a) the following new subsection  

   (b):                                                                    

     ``(b) Members Eligible for Programs.--Subject to such other          

  eligibility requirements as the Secretary concerned may prescribe, the  

  following members of the armed forces are eligible to participate in    

  programs of higher education under subsection (a)(1):                   

     ``(1) Enlisted members of the Air Force.                              



       ``(2) Enlisted members of the armed forces other than the Air Force 

   who are serving as instructors at Air Force training schools.''.        

    (b)  Clerical Amendments.--Such section is further amended--          



       (1) in subsection (a), by inserting `` Establishment and            

   Mission.--'' after ``(a)''; and                                         

       (2) in subsection (c), as redesignated by subsection (a)(2), by     

   inserting `` Conferral of Degrees.--'' after ``(c)''.                   

     (c) Effective Date.--Subsection (b) of section 9315 of such title, as

  added by subsection (a)(4), applies with respect to enrollments in the  

  Community College of the Air Force after March 31, 1996.                

                    SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL          

          ASSISTANCE OF MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE DUTY IN 

          SUPPORT OF A CONTINGENCY OPERATION.                                     

     (a) Preservation of Educational Assistance.--Section                 

  16131(c)(3)(B)(i) of title 10, United States Code, is amended by        

  striking out ``, in connection with the Persian Gulf War,''.            

     (b) Extension of 10- Year Period of Availability.--Section           

  16133(b)(4) of such title is amended--                                  

     (1) by striking out ``(A)'';                                          



     (2) by striking out ``, during the Persian Gulf War,'';               



       (3) by redesignating clauses (i) and (ii) as subparagraphs (A) and  

   (B), respectively; and                                                  

       (4) by striking out ``(B) For the purposes'' and all that follows   

   through ``title 38.''.                                                  



           PART III--TRAINING OF ARMY DRILL SERGEANTS                             





          SEC. 556. REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS. 



     (a) In General.--The Secretary of the Army shall reform the process  

  for selection and training of drill sergeants for the Army.             

     (b) Measures To Be Taken.--As part of such reform, the Secretary     

  shall undertake the following measures (unless, in the case of any such 

  measure, the Secretary determines that that measure would not result in 

  improved effectiveness and efficiency in the drill sergeant selection   

  and training process):                                                  

       (1) Review the overall process used by the Department of the Army   

   for selection of drill sergeants to determine--                         

       (A) whether that process is providing drill sergeant candidates in  

   sufficient quantity and quality to meet the needs of the training       

   system; and                                                             

       (B) whether duty as a drill sergeant is a career-enhancing          

   assignment (or is seen by potential drill sergeant candidates as a      

   career-enhancing assignment) and what steps could be taken to ensure    

   that such duty is in fact a career-enhancing assignment.                

       (2) Incorporate into the selection process for all drill sergeants  

   the views and recommendations of the officers and senior noncommissioned

   officers in the chain of command of each candidate for selection        

   (particularly those of senior noncommissioned officers) regarding the   

   candidate's suitability and qualifications to be a drill sergeant.      

       (3) Establish a requirement for psychological screening for each    

   drill sergeant candidate.                                               

       (4) Reform the psychological screening process for drill sergeant   

   candidates to improve the quality, depth, and rigor of that screening   

   process.                                                                

       (5) Revise the evaluation system for drill sergeants in training to 

   provide for a so-called ``whole person'' assessment that gives insight  

   into the qualifications and suitability of a drill sergeant candidate   

   beyond the candidate's ability to accomplish required performance tasks.

       (6) Revise the Army military personnel records system so that, under

   conditions and circumstances to be specified in regulations prescribed  

   by the Secretary, a drill sergeant trainee who fails to complete the    

   training to be a drill sergeant and is denied graduation will not have  

   the fact of that failure recorded in those personnel records.           

       (7) Provide each drill sergeant in training with the opportunity,   

   before or during that training, to work with new recruits in initial    

   entry training and to be evaluated on that opportunity.                 

     (c) Report.--Not later than March 31, 1998, the Secretary shall      

  submit to the Committee on National Security of the House of            

  Representatives and the Committee on Armed Services of the Senate a     

  report of the reforms adopted pursuant to this section or, in the case  

  of any measure specified in any of paragraphs (1) through (7) of        

  subsection (b) that was not adopted, the rationale why that measure was 

  not adopted.                                                            



                    SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL  

          SERGEANT TRAINEES.                                                      

     (a) In General.--(1) Chapter 401 of title 10, United States Code, is 

  amended by adding at the end the following new section:                 



          ``4318. Drill sergeant trainees: human relations training               



     ``(a) Human Relations Training Required.--The Secretary of the Army  

  shall include as part of the training program for drill sergeants a     

  course in human relations. The course shall be a minimum of two days in 

  duration.                                                               

     ``(b) Resources.--In developing a human relations course under this  

  section, the Secretary shall use the capabilities and expertise of the  

  Defense Equal Opportunity Management Institute (DEOMI).''.              

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





      ``4318. Drill sergeant trainees: human relations training.''.           







     (b) Effective Date.--Section 4318 of title 10, United States Code, as

  added by subsection (a), shall apply with respect to drill sergeant     

  trainee classes that begin after the end of the 90 day period beginning 

  on the date of the enactment of this Act.                               



           Subtitle F--Commission on Military Training and Gender-Related Issues   



          SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.                  



     (a) Establishment.--There is established a Commission on Military    

  Training and Gender-Related Issues to review requirements and           

  restrictions regarding cross-gender relationships of members of the     

  Armed Forces, to review the basic training programs of the Army, Navy,  

  Air Force, and Marine Corps, and to make recommendations on improvements

  to those programs, requirements, and restrictions.                      

     (b) Composition.--(1) The commission shall be composed of 10 members,

  appointed as follows:                                                   

       (A) Five members shall be appointed jointly by the chairman and     

   ranking minority party member of the Committee on National Security of  

   the House of Representatives.                                           

       (B) Five members shall be appointed jointly by the chairman and     

   ranking minority party member of the Committee on Armed Services of the 

   Senate.                                                                 

     (2) The members of the commission shall choose one of the members to 

  serve as chairman.                                                      

     (3) All members of the commission shall be appointed not later than  

  45 days after the date of the enactment of this Act.                    

     (c) Qualifications.--Members of the commission shall be appointed    

  from among private United States citizens with knowledge and expertise  

  in one or more of the following:                                        

     (1) Training of military personnel.                                   



       (2) Social and cultural matters affecting entrance into the Armed   

   Forces and affecting military service, military training, and military  

   readiness, such knowledge and expertise to have been gained through     

   recognized research, policy making and practical experience, as         

   demonstrated by retired military personnel, members of the reserve      

   components of the Armed Forces, representatives from educational        

   organizations, and leaders from civilian industry and other Government  

   agencies.                                                               

       (3) Factors that define appropriate military job qualifications,    

   including physical, mental, and educational factors.                    

     (4) Combat or other theater of war operations.                        



     (5) Organizational matters.                                           



     (6) Legal matters.                                                    



     (7) Management.                                                       



     (8) Gender integration matters.                                       



     (d) Appointments.--(1) Members of the commission shall be appointed  

  for the life of the commission.                                         

     (2) A vacancy in the membership shall not affect the commission's    

  powers, but shall be filled in the same manner as the original          

  appointment.                                                            

          SEC. 562. DUTIES.                                                       



     (a) Functions Relating to Requirements and Restrictions Regarding    

  Cross-Gender Relationships.--The commission shall consider issues       

  relating to personal relationships of members of the Armed Forces as    

  follows:                                                                

       (1) Review the laws, regulations, policies, directives, and         

   practices that govern personal relationships between men and women in   

   the Armed Forces and personal relationships between members of the Armed

   Forces and non-military personnel of the opposite sex.                  

       (2) Assess the extent to which the laws, regulations, policies, and 

   directives have been applied consistently throughout the Armed Forces   

   without regard to the armed force, grade, rank, or gender of the        

   individuals involved.                                                   

       (3) Assess the reports of the independent panel, the Department of  

   Defense task force, and the review of existing guidance on              

   fraternization and adultery that have been required by the Secretary of 

   Defense.                                                                



     (b) Functions Relating to Gender-Integrated and Gender-Segregated    

  Basic Training.--(1) The commission shall review the parts of the       

  initial entry training programs of the Army, Navy, Air Force, and Marine

  Corps that constitute the basic training of new recruits (in this       

  subtitle referred to as ``basic training''). The review shall include a 

  review of the basic training policies and practices of each of those    

  services with regard to gender-integrated and gender-segregated basic   

  training and, for each of the services, the effectiveness of            

  gender-integrated and gender-segregated basic training.                 

     (2) As part of the review under paragraph (1), the commission shall  

  (with respect to each of the services) take the following measures:     

       (A) Determine how each service defines gender-integration and       

   gender-segregation in the context of basic training.                    

       (B) Determine the historical rationales for the establishment and   

   disestablishment of gender-integrated or gender-segregated basic        

   training.                                                               

       (C) Examine, with respect to each service, the current rationale for

   the use of gender-integrated or gender-segregated basic training and the

   rationale that was current as of the time the service made a decision to

   integrate, or to segregate, basic training by gender (or as of the time 

   of the most recent decision to continue to use a gender-integrated      

   format or a gender-segregated format for basic training), and, as part  

   of the examination, evaluate whether at the time of that decision, the  

   Secretary of the military department with jurisdiction over that service

   had substantive reason to believe, or has since developed data to       

   support, that gender-integrated basic training, or gender-segregated    

   basic training, improves the readiness or performance of operational    

   units.                                                                  

       (D) Assess whether the concept of ``training as you will fight'' is 

   a valid rationale for gender-integrated basic training or whether the   

   training requirements and objectives for basic training are sufficiently

   different from those of operational units so that such concept, when    

   balanced against other factors relating to basic training, might not be 

   a sufficient rationale for gender-integrated basic training.            

       (E) Identify the requirements unique to each service that could     

   affect a decision by the Secretary concerned to adopt a                 

   gender-integrated or gender-segregated format for basic training and    

   assess whether the format in use by each service has been successful in 

   meeting those requirements.                                             

       (F) Assess, with respect to each service, the degree to which       

   different standards have been established, or if not established are in 

   fact being implemented, for males and females in basic training for     
   matters such as physical fitness, physical performance (such as         

   confidence and obstacle courses), military skills (such as marksmanship 

   and hand-grenade qualifications), and nonphysical tasks required of     

   individuals and, to the degree that differing standards exist or are in 

   fact being implemented, assess the effect of the use of those differing 

   standards.                                                              

       (G) Identify the goals that each service has set forth in regard to 

   readiness, in light of the gender-integrated or gender-segregated format

   that such service has adopted for basic training, and whether that      

   format contributes to the readiness of operational units.               

       (H) Assess the degree to which performance standards in basic       

   training are based on military readiness.                               

       (I) Evaluate the policies of each of the services regarding the     

   assignment of adequate numbers of female drill instructors in           

   gender-integrated training units who can serve as role models and       

   mentors for female trainees.                                            

       (J) Review Department of Defense and military department efforts to 

   objectively measure or evaluate the effectiveness of gender-integrated  

   basic training, as compared to gender-segregated basic training,        

   particularly with regard to the adequacy and scope of the efforts and   

   with regard to the relevancy of findings to operational unit            

   requirements, and determine whether the Department of Defense and the   

   military departments are capable of measuring or evaluating the         

   effectiveness of that training format objectively.                      

       (K) Compare the pattern of attrition in gender-integrated basic     

   training units with the pattern of attrition in gender-segregated basic 

   training units and assess the relevancy of the findings of such         

   comparison.                                                             

       (L) Compare the level of readiness and morale of gender-integrated  

   basic training units with the level of readiness and morale of          

   gender-segregated units, and assess the relevancy of the findings of    

   such comparison and the implications, for readiness, of any differences 

   found.                                                                  

       (M) Compare the experiences, policies, and practices of the armed   

   forces of other industrialized nations regarding gender-integrated      

   training with those of the Army, Navy, Air Force, and Marine Corps.     

       (N) Review, and take into consideration, the current practices,     

   relevant studies, and private sector training concepts pertaining to    

   gender-integrated training.                                             

       (O) Assess the feasibility and implications of conducting basic     

   training (or equivalent training) at the company level and below through

   separate units for male and female recruits, including the costs and    

   other resource commitments required to implement and conduct basic      

   training in such a manner and the implications for readiness and unit   

   cohesion.                                                               

       (P) Assess the feasibility and implications of requiring drill      

   instructors for basic training units to be of the same sex as the       

   recruits in those units if the basic training were to be conducted as   

   described in subparagraph (O).                                          

     (c) Functions Relating to Basic Training Programs Generally.--The    

  commission shall review the course objectives, structure, and length of 

  the basic training programs of the Army, Navy, Air Force, and Marine    

  Corps. The commission shall also review the relationship between those  

  basic training objectives and the advanced training provided in the     

  initial entry training programs of each of those services. As part of   



                    that review, the commission shall (with respect to each of    

          those services) take the following measures:                            

       (1) Determine the current end-state objectives established for      

   graduates of basic training, particularly in regard to--                

     (A) physical conditioning;                                            



     (B) technical and physical skills proficiency;                        



     (C) knowledge;                                                        



       (D) military socialization, including the inculcation of service    

   values and attitudes; and                                               

     (E) basic combat operational requirements.                            



       (2) Assess whether those current end-state objectives, and basic    

   training itself, should be modified (in structure, length, focus,       

   program of instruction, training methods or otherwise) based, in part,  

   on the following:                                                       

       (A) An assessment of the perspectives of operational units on the   

   quality and qualifications of the initial entry training graduates being

   assigned to those units, considering in particular whether the basic    

   training system produces graduates who arrive in operational units with 

   an appropriate level of skills, physical conditioning, and degree of    

   military socialization to meet unit requirements and needs.             

       (B) An assessment of the demographics, backgrounds, attitudes,      

   experience, and physical fitness of new recruits entering basic         

   training, considering in particular the question of whether, given the  

   entry level demographics, education, and background of new recruits, the

   basic training systems and objectives are most efficiently and          

   effectively structured and conducted to produce graduates who meet      

   service needs.                                                          

       (C) An assessment of the perspectives of personnel who conduct basic

   training with regard to measures required to improve basic training.    

       (3) Assess the extent to which the initial entry training programs  

   of each of the services continue, after the basic training phases of the

   programs, effectively to reinforce and advance the military             

   socialization (including the inculcation of service values and          

   attitudes), the physical conditioning, and the attainment and           

   improvement of knowledge and proficiency in fundamental military skills 

   that are begun in basic training.                                       

    (d)  Recommendations.--The commission shall prepare--                 



       (1) with respect to each of the Army, Navy, Air Force, and Marine   

   Corps, an evaluation of gender-integrated and gender-segregated basic   

   training programs, based upon the review under subsection (b);          

       (2) recommendations for such changes to the current system of basic 

   training as the commission considers warranted; and                     

       (3) recommendations for such changes to laws, regulations, policies,

   directives, and practices referred to in subsection (a)(1) as the       

   commission considers warranted.                                         

     (e) Reports.--(1) Not later than April 15, 1998, the commission shall

  submit to the Committee on Armed Services of the Senate and the         

  Committee on National Security of the House of Representatives a report 

  setting forth a strategic plan for the work of the commission and the   

  activities and initial findings of the commission.                      

     (2) Not later than September 16, 1998, the commission shall submit a 

  final report to the Committee on Armed Services of the Senate and the   

  Committee on National Security of the House of Representatives. The     

  final report shall set forth the activities, findings, and              

  recommendations of the commission, including any recommendations for    

  congressional action and administrative action that the commission      

  considers appropriate. The report shall specifically set forth the views

  of the Secretaries of the military departments regarding the matters    

  described in subparagraphs (O) and (P) of subsection (b)(2).            

          SEC. 563. ADMINISTRATIVE MATTERS.                                       



     (a) Meetings.--(1) The commission shall hold its first meeting not   

  later than 30 days after the date on which all members have been        

  appointed.                                                              



    (2) The commission shall meet upon the call of the chairman.          



     (3) A majority of the members of the commission shall constitute a   

  quorum, but a lesser number may hold meetings.                          

     (b) Authority of Individuals To Act for Commission.--Any member or   

  agent of the commission may, if authorized by the commission, take any  

  action which the commission is authorized to take under this title.     

     (c) Powers.--(1) The commission may hold such hearings, sit and act  

  at such times and places, take such testimony, and receive such evidence

  as the commission considers advisable to carry out its duties.          

     (2) The commission may secure directly from the Department of Defense

  and any other department or agency of the Federal Government such       

  information as the commission considers necessary to carry out its      

  duties. Upon the request of the chairman of the commission, the head of 

  a department or agency shall furnish the requested information          

  expeditiously to the commission.                                        

     (3) The commission may use the United States mails in the same manner

  and under the same conditions as other departments and agencies of the  

  Federal Government.                                                     

     (d) Pay and Expenses of Commission Members.--(1) Each member of the  

  commission who is not an employee of the Government shall be paid at a  

  rate equal to the daily equivalent of the annual rate of basic pay      

  prescribed for level IV of the Executive Schedule under section 5315 of 

  title 5, United States Code, for each day (including travel time) during

  which such member is engaged in performing the duties of the commission.

     (2) Members and personnel of the commission may travel on aircraft,  

  vehicles, or other conveyances of the Armed Forces when travel is       

  necessary in the performance of a duty of the commission except when the

  cost of commercial transportation is less expensive.                    

     (3) The members of the commission may be allowed travel expenses,    

  including per diem in lieu of subsistence, at rates authorized for      

  employees of agencies under subchapter I of chapter 57 of title 5,      

  United States Code, while away from their homes or regular places of    

  business in the performance of services for the commission.             

     (4)(A) A member of the commission who is an annuitant otherwise      

  covered by section 8344 or 8468 of title 5, United States Code, by      

  reason of membership on the commission shall not be subject to the      

  provisions of such section with respect to such membership.             

     (B) A member of the commission who is a member or former member of a 

  uniformed service shall not be subject to the provisions of subsections 

  (b) and (c) of section 5532 of such title with respect to membership on 

  the commission.                                                         

     (e) Staff and Administrative Support.--(1) The chairman of the       

  commission may, without regard to civil service laws and regulations,   

  appoint and terminate an executive director and up to three additional  

  staff members as necessary to enable the commission to perform its      

  duties. The chairman of the commission may fix the compensation of the  

  executive director and other personnel without regard to the provisions 

  of chapter 51, and subchapter III of chapter 53, of title 5, United     

  States Code, relating to classification of positions and General        

  Schedule pay rates, except that the rate of pay may not exceed the      

  maximum rate of pay for grade GS 15 under the General Schedule.         

     (2) Upon the request of the chairman of the commission, the head of  

  any department or agency of the Federal Government may detail, without  

  reimbursement, any personnel of the department or agency to the         

  commission to assist in carrying out its duties. A detail of an employee

  shall be without interruption or loss of civil service status or        

  privilege.                                                              

     (3) The chairman of the commission may procure temporary and         

  intermittent services under section 3109(b) of title 5, United States   

  Code, at rates for individuals that do not exceed the daily equivalent  

  of the annual rate of basic pay prescribed for level IV of the Executive

  Schedule under section 5315 of such title.                              



     (4) The Secretary of Defense shall furnish to the commission such    

  administrative and support services as may be requested by the chairman 

  of the commission.                                                      

          SEC. 564. TERMINATION OF COMMISSION.                                    



     The commission shall terminate 60 days after the date on which it    

  submits the final report under section 562(e)(2).                       

          SEC. 565. FUNDING.                                                      



     (a) From Department of Defense Appropriations.--Upon the request of  

  the chairman of the commission, the Secretary of Defense shall make     

  available to the commission, out of funds appropriated for the          

  Department of Defense, such amounts as the commission may require to    

  carry out its duties.                                                   

     (b) Period of Availability.--Funds made available to the commission  

  shall remain available, without fiscal year limitation, until the date  

  on which the commission terminates.                                     

          SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.                         



     After receipt of each report of the commission under section 562(e), 

  Congress shall consider the report and, based upon the results of the   

  review (and such other matters as Congress considers appropriate),      

  consider whether to require by law that the Secretaries of the military 

  departments conduct basic training on a gender-segregated or            

  gender-integrated basis.                                                

           Subtitle G--Military Decorations and Awards                             





                    SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE   

          ARMED FORCES.                                                           

     (a) In General.--(1) Chapter 57 of title 10, United States Code, is  

  amended by adding at the end the following new section:                 

          ``1131. Purple Heart: limitation to members of the armed forces         



     ``The decoration known as the Purple Heart (authorized to be awarded 

  pursuant to Executive Order 11016) may only be awarded to a person who  

  is a member of the armed forces at the time the person is killed or     

  wounded under circumstances otherwise qualifying that person for award  

  of the Purple Heart.''.                                                 

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





      ``1131. Purple Heart: limitation to members of the armed forces.''.     







     (b) Effective Date.--Section 1131 of title 10, United States Code, as

  added by subsection (a), shall apply with respect to persons who are    

  killed or wounded after the end of the 180-day period beginning on the  

  date of the enactment of this Act.                                      



                    SEC. 572. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR

          PARTICIPATION IN OPERATION JOINT ENDEAVOR OR OPERATION JOINT GUARD.     

     (a) Inclusion of Operations.--For the purpose of determining the     

  eligibility of members and former members of the Armed Forces for the   

  Armed Forces Expeditionary Medal, the Secretary of Defense shall        

  designate participation in Operation Joint Endeavor or Operation Joint  

  Guard in the Republic of Bosnia and Herzegovina, and in such other areas

  in the region as the Secretary considers appropriate, as service in an  

  area that meets the general requirements for the award of that medal.   

     (b) Individual Determination.--The Secretary of the military         

  department concerned shall determine whether individual members or      

  former members of the Armed Forces who participated in Operation Joint  

  Endeavor or Operation Joint Guard meet the individual service           

  requirements for award of the Armed Forces Expeditionary Medal as       

  established in applicable regulations. A member or former member shall  

  be considered to have participated in Operation Joint Endeavor or       

  Operation Joint Guard if the member--                                   

       (1) was deployed in the Republic of Bosnia and Herzegovina, or in   

   such other area in the region as the Secretary of Defense considers     

   appropriate, in direct support of one or both of the operations;        



       (2) served on board a United States naval vessel operating in the   

   Adriatic Sea in direct support of one or both of the operations; or     

       (3) operated in airspace above the Republic of Bosnia and           

   Herzegovina, or in such other area in the region as the Secretary of    

   Defense considers appropriate, while the operations were in effect.     

    (c)  Operations Defined.--For purposes of this section:               



       (1) The term ``Operation Joint Endeavor'' means operations of the   

   United States Armed Forces conducted in the Republic of Bosnia and      

   Herzegovina during the period beginning on November 20, 1995, and ending

   on December 20, 1996, to assist in implementing the General Framework   

   Agreement and Associated Annexes, initialed on November 21, 1995, in    

   Dayton, Ohio.                                                           

       (2) The term ``Operation Joint Guard'' means operations of the      

   United States Armed Forces conducted in the Republic of Bosnia and      

   Herzegovina as a successor to Operation Joint Endeavor during the period

   beginning on December 20, 1996, and ending on such date as the Secretary

   of Defense may designate.                                               



                    SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN     

          DECORATIONS TO SPECIFIED PERSONS.                                       

     (a) Waiver of Time Limitation.--Any limitation established by law or 

  policy for the time within which a recommendation for the award of a    

  military decoration or award must be submitted shall not apply in the   

  case of awards of decorations described in subsections (b), (c), and    

  (d), the award of each such decoration having been determined by the    

  Secretary of the military department concerned to be warranted in       

  accordance with section 1130 of title 10, United States Code.           

     (b) Silver Star Medal.--Subsection (a) applies to the award of the   

  Silver Star Medal as follows:                                           

       (1) To Joseph M. Moll, Jr. of Milford, New Jersey, for service      

   during World War II.                                                    

       (2) To Philip Yolinsky of Hollywood, Florida, for service during the

   Korean Conflict.                                                        

     (3) To Robert Norman of Reno, Nevada, for service during World War II.



     (c) Navy and Marine Corps Medal.--Subsection (a) applies to the award

  of the Navy and Marine Corps Medal to Gary A. Gruenwald of Damascus,    

  Maryland, for service in Tunisia in October 1977.                       

     (d) Distinguished Flying Cross.--Subsection (a) applies to awards of 

  the Distinguished Flying Cross for service during World War II or Korea 

  (including multiple awards to the same individual) in the case of each  

  individual concerning whom the Secretary of the Navy (or an officer of  

  the Navy acting on behalf of the Secretary) submitted to the Committee  

  on National Security of the House of Representatives and the Committee  

  on Armed Services of the Senate, before the date of the enactment of    

  this Act, a notice as provided in section 1130(b) of title 10, United   

  States Code, that the award of the Distinguished Flying Cross to that   

  individual is warranted and that a waiver of time restrictions          

  prescribed by law for recommendation for such award is recommended.     



                    SEC. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY    

          RESERVE FOR AWARD OF SERVICE MEDAL FOR HEROISM.                         

     (a) Soldier's Medal.--Section 3750(a) of title 10, United States     

  Code, is amended--                                                      

     (1) by inserting ``(1)'' after ``(a)''; and                           



     (2) by adding at the end the following new paragraph:                 



     ``(2) The authority in paragraph (1) includes authority to award the 

  medal to a member of the Ready Reserve who was not in a duty status     

  defined in section 101(d) of this title when the member distinguished   

  himself by heroism.''.                                                  

     (b) Navy and Marine Corps Medal.--Section 6246 of such title is      

  amended--                                                               

     (1) by designating the text of the section as subsection (a); and     



     (2) by adding at the end the following new subsection:                





     ``(b) The authority in subsection (a) includes authority to award the

  medal to a member of the Ready Reserve who was not in a duty status     

  defined in section 101(d) of this title when the member distinguished   

  himself by heroism.''.                                                  

    (c)  Airman's Medal.--Section 8750(a) of such title is amended--      



     (1) by inserting ``(1)'' after ``(a)''; and                           



     (2) by adding at the end the following new paragraph:                 



     ``(2) The authority in paragraph (1) includes authority to award the 

  medal to a member of the Ready Reserve who was not in a duty status     

  defined in section 101(d) of this title when the member distinguished   

  himself by heroism.''.                                                  



                    SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF         

          RECOMMENDATIONS FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY         

          INTELLIGENCE PERSONNEL.                                                 

     Section 523(b)(1) of the National Defense Authorization Act for      

  Fiscal Year 1996 (Public Law 104 106; 110 Stat. 311; 10 U.S.C. 1130     

  note) is amended by striking out ``during the one-year period beginning 

  on the date of the enactment of this Act'' and inserting in lieu thereof

  ``during the period beginning on February 10, 1996, and ending on       

  February 9, 1998''.                                                     



                    SEC. 576. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY        

          ORGANIZATIONS FOR AWARD OF UNIT DECORATIONS.                            

     (a) Authority.--A unit decoration may be awarded for any unit or     

  other organization of the Armed Forces (such as the Military            

  Intelligence Service of the Army) that (1) supported the planning or    

  execution of combat operations during World War II primarily through    

  unit personnel who were attached to other units of the Armed Forces or  

  of other allied armed forces, and (2) is not otherwise eligible for     

  award of the decoration by reason of not usually having been deployed as

  a unit in support of such operations.                                   

     (b) Time for Submission of Recommendation.--Any recommendation for   

  award of a unit decoration under subsection (a) shall be submitted to   

  the Secretary concerned (as defined in section 101(a)(9) of title 10,   

  United States Code), or to such other official as the Secretary         

  concerned may designate, not later than two years after the date of the 

  enactment of this Act.                                                  



          SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.              



     (a) Entitlement.--In the case of Vernon J. Baker, Edward A. Carter,  

  Junior, and Charles L. Thomas, who were awarded the Medal of Honor      

  pursuant to section 561 of Public Law 104 201 (110 Stat. 2529) and whose

  names have been entered and recorded on the Army, Navy, Air Force, and  

  Coast Guard Medal of Honor Roll, the entitlement of those persons to the

  special pension provided under section 1562 of title 38, United States  

  Code (and antecedent provisions of law), shall be effective as follows: 

       (1) In the case of Vernon J. Baker, for months that begin after     

   April 1945.                                                             

       (2) In the case of Edward A. Carter, Junior, for months that begin  

   after March 1945.                                                       

       (3) In the case of Charles L. Thomas, for months that begin after   

   December 1944.                                                          

     (b) Amount.--The amount of the special pension payable under         

  subsection (a) for a month beginning before the date of the enactment of

  this Act shall be the amount of the special pension provided by law for 

  that month for persons entered and recorded on the Army, Navy, Air      

  Force, and Coast Guard Medal of Honor Roll (or an antecedent Medal of   

  Honor Roll required by law).                                            

     (c) Payment to Next of Kin.--In the case of a person referred to in  

  subsection (a) who died before receiving full payment of the pension    

  pursuant to this section, the Secretary of Veterans Affairs shall pay   

  the total amount of the accrued pension, upon receipt of application for

  payment within one year after the date of the enactment of this Act, to 

  the deceased person's spouse or, if there is no surviving spouse, then  

  to the deceased person's children, per stirpes, in equal shares.        



           Subtitle H--Military Justice Matters                                    



                    SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE   

          WITHOUT ELIGIBILITY FOR PAROLE.                                         

     (a) Establishment of Sentence.--(1) Chapter 47 of title 10, United   

  States Code (the Uniform Code of Military Justice), is amended by       

  inserting after section 856 (article 56) the following new section      

  (article):                                                              

                    ``856a. Art. 56a. Sentence of confinement for life without    

          eligibility for parole                                                  

     ``(a) For any offense for which a sentence of confinement for life   

  may be adjudged, a court-martial may adjudge a sentence of confinement  

  for life without eligibility for parole.                                

     ``(b) An accused who is sentenced to confinement for life without    

  eligibility for parole shall be confined for the remainder of the       

  accused's life unless--                                                 

     ``(1) the sentence is set aside or otherwise modified as a result of--



       ``(A) action taken by the convening authority, the Secretary        

   concerned, or another person authorized to act under section 860 of this

   title (article 60); or                                                  

       ``(B) any other action taken during post-trial procedure and review 

   under any other provision of subchapter IX;                             

       ``(2) the sentence is set aside or otherwise modified as a result of

   action taken by a Court of Criminal Appeals, the Court of Appeals for   

   the Armed Forces, or the Supreme Court; or                              

     ``(3) the accused is pardoned.''.                                     



     (2) The table of sections at the beginning of subchapter VIII of such

  chapter is amended by inserting after the item relating to section 856  

  (article 56) the following new item:                                    





            ``856a. 56a. Sentence of confinement for life without eligibility 

      for parole.''.                                                          





     (b) Effective Date.--Section 856a of title 10, United States Code    

  (article 56a of the Uniform Code of Military Justice), as added by      

  subsection (a), shall be applicable only with respect to an offense     

  committed after the date of the enactment of this Act.                  

                    SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR        

          OFFENDERS SERVING LIFE SENTENCE.                                        

     (a) Exclusive Authority To Grant Parole on Appeal of Denial.--Section

  952 of title 10, United States Code, is amended--                       

     (1) by inserting ``(a)'' before ``The Secretary''; and                



     (2) by adding at the end the following new subsection:                



     ``(b) In a case in which parole for an offender serving a sentence of

  confinement for life is denied, only the President or the Secretary     

  concerned may grant the offender parole on appeal of that denial. The   

  authority to grant parole on appeal in such a case may not be           

  delegated.''.                                                           

     (b) Effective Date.--Subsection (b) of section 952 of title 10,      

  United States Code (as added by subsection (a)), shall apply only with  

  respect to any decision to deny parole made after the date of the       

  enactment of this Act.                                                  



           Subtitle I--Other Matters                                               





          SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.                 



     (a) Investigations.--(1) Part II of subtitle A of title 10, United   

  States Code, is amended by inserting after chapter 79 the following new 

  chapter:                                                                



           ``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES





      ``Sec.                                                                  



            ``1561. Complaints of sexual harassment: investigation by         

      commanding officers.                                                    



                    ``1561. Complaints of sexual harassment: investigation by     

          commanding officers                                                     

     ``(a) Action on Complaints Alleging Sexual Harassment.--A commanding 

  officer or officer in charge of a unit, vessel, facility, or area of the

  Army, Navy, Air Force, or Marine Corps who receives from a member of the

  command or a civilian employee under the supervision of the officer a   

  complaint alleging sexual harassment by a member of the armed forces or 

  a civilian employee of the Department of Defense shall carry out an     

  investigation of the matter in accordance with this section.            

     ``(b) Commencement of Investigation.--To the extent practicable, a   

  commanding officer or officer in charge receiving such a complaint      

  shall, within 72 hours after receipt of the complaint--                 

       ``(1) forward the complaint or a detailed description of the        

   allegation to the next superior officer in the chain of command who is  

   authorized to convene a general court-martial;                          

       ``(2) commence, or cause the commencement of, an investigation of   

   the complaint; and                                                      

     ``(3) advise the complainant of the commencement of the investigation.



     ``(c) Duration of Investigation.--To the extent practicable, a       

  commanding officer or officer in charge receiving such a complaint shall

  ensure that the investigation of the complaint is completed not later   

  than 14 days after the date on which the investigation is commenced.    

     ``(d) Report on Investigation.--To the extent practicable, a         

  commanding officer or officer in charge receiving such a complaint      

  shall--                                                                 

       ``(1) submit a final report on the results of the investigation,    

   including any action taken as a result of the investigation, to the next

   superior officer referred to in subsection (b)(1) within 20 days after  

   the date on which the investigation is commenced; or                    

       ``(2) submit a report on the progress made in completing the        

   investigation to the next superior officer referred to in subsection    

   (b)(1) within 20 days after the date on which the investigation is      

   commenced and every 14 days thereafter until the investigation is       

   completed and, upon completion of the investigation, then submit a final

   report on the results of the investigation, including any action taken  

   as a result of the investigation, to that next superior officer.        



     ``(e) Sexual Harassment Defined.--In this section, the term `sexual  

  harassment' means any of the following:                                 

     ``(1) Conduct (constituting a form of sex discrimination) that--      



       ``(A) involves unwelcome sexual advances, requests for sexual       

   favors, and deliberate or repeated offensive comments or gestures of a  

   sexual nature when--                                                    

       ``(i) submission to such conduct is made either explicitly or       

   implicitly a term or condition of a person's job, pay, or career;       

       ``(ii) submission to or rejection of such conduct by a person is    

   used as a basis for career or employment decisions affecting that       

   person; or                                                              

       ``(iii) such conduct has the purpose or effect of unreasonably      

   interfering with an individual's work performance or creates an         

   intimidating, hostile, or offensive working environment; and            

       ``(B) is so severe or pervasive that a reasonable person would      

   perceive, and the victim does perceive, the work environment as hostile 

   or offensive.                                                           

       ``(2) Any use or condonation, by any person in a supervisory or     

   command position, of any form of sexual behavior to control, influence, 

   or affect the career, pay, or job of a member of the armed forces or a  

   civilian employee of the Department of Defense.                         

       ``(3) Any deliberate or repeated unwelcome verbal comment or gesture

   of a sexual nature in the workplace by any member of the armed forces or

   civilian employee of the Department of Defense.''.                      

     (2) The tables of chapters at the beginning of subtitle A, and at the

  beginning of part II of subtitle A, of such title are amended by        

  inserting after the item relating to chapter 79 the following new item: 





         ``80. Miscellaneous Investigation Requirements and Other Duties        



        1561''.                                                                







     (b) Reports.--(1) Not later than January 1 of each of 1998 and 1999, 

  each officer receiving a complaint forwarded in accordance with section 

  1561(b) of title 10, United States Code, as added by subsection (a),    

  during the preceding year shall submit to the Secretary of the military 

  department concerned a report on all such complaints and the            

  investigations of such complaints (including the results of the         

  investigations, in cases of investigations completed during such        

  preceding year).                                                        

     (2)(A) Not later than March 1 of each of 1998 and 1999, each         

  Secretary receiving a report under paragraph (1) for a year shall submit

  to the Secretary of Defense a report on all such reports so received.   

     (B) Not later than the April 1 following receipt of a report for a   

  year under subparagraph (A), the Secretary of Defense shall transmit to 

  Congress all such reports received for the year under subparagraph (A)  

  together with the Secretary's assessment of each such report.           



                    SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS      

          RELATING TO GENDER EQUITY IN THE ARMED FORCES.                          

    (a)  Findings.--The Senate makes the following findings:              



       (1) In the all-volunteer force, women play an integral role in the  

   Armed Forces.                                                           

       (2) With increasing numbers of women in the Armed Forces, questions 

   arise concerning inequalities, and perceived inequalities, between the  

   treatment of men and women in the Armed Forces.                         

     (b) Sense of the Senate.--It is the sense of the Senate that the     

  Comptroller General should--                                            

       (1) conduct a study on any inequality, or perception of inequality, 

   in the treatment of men and women in the Armed Forces that arises out of

   the statutes and regulations governing the Armed Forces; and            

       (2) submit to the Senate a report on the study not later than one   

   year after the date of the enactment of this Act.                       



                    SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT

          OF CERTAIN NON-FEDERAL ENTITIES.                                        

     (a) Military Personnel.--(1) Chapter 53 of title 10, United States   

  Code, is amended by inserting after section 1032 the following new      

  section:                                                                

                    ``1033. Participation in management of specified non-Federal  

          entities: authorized activities                                         

     ``(a) Authorization.--The Secretary concerned may authorize a member 

  of the armed forces under the Secretary's jurisdiction to serve without 

  compensation as a director, officer, or trustee, or to otherwise        

  participate, in the management of an entity designated under subsection 

  (b). Any such authorization shall be made on a case-by-case basis, for a

  particular member to participate in a specific capacity with a specific 

  designated entity. Such authorization may be made only for the purpose  

  of providing oversight and advice to, and coordination with, the        

  designated entity, and participation of the member in the activities of 

  the designated entity may not extend to participation in the day-to-day 

  operations of the entity.                                               

     ``(b) Designated Entities.--(1) The Secretary of Defense, and the    

  Secretary of Transportation in the case of the Coast Guard when it is   

  not operating as a service in the Navy, shall designate those entities  

  for which authorization under subsection (a) may be provided. The list  

  of entities so designated may not be revised more frequently than       

  semiannually. In making such designations, the Secretary shall designate

  each military welfare society and may designate any other entity        

  described in paragraph (3). No other entities may be designated.        

     ``(2) In this section, the term `military welfare society' means the 

  following:                                                              

     ``(A) Army Emergency Relief.                                          



     ``(B) Air Force Aid Society, Inc.                                     



     ``(C) Navy-Marine Corps Relief Society.                               



     ``(D) Coast Guard Mutual Assistance.                                  



     ``(3) An entity described in this paragraph is an entity that is not 

  operated for profit and is any of the following:                        

       ``(A) An entity that regulates and supports the athletic programs of

   the service academies (including athletic conferences).                 

     ``(B) An entity that regulates international athletic competitions.   



       ``(C) An entity that accredits service academies and other schools  

   of the armed forces (including regional accrediting agencies).          

       ``(D) An entity that (i) regulates the performance, standards, and  

   policies of military health care (including health care associations and

   professional societies), and (ii) has designated the position or        

   capacity in that entity in which a member of the armed forces may serve 

   if authorized under subsection (a).                                     

     ``(c) Publication of Designated Entities and of Authorized           

  Persons.--A designation of an entity under subsection (b), and an       

  authorization under subsection (a) of a member of the armed forces to   

  participate in the management of such an entity, shall be published in  

  the Federal Register.                                                   

     ``(d) Regulations.--The Secretary of Defense, and the Secretary of   

  Transportation in the case of the Coast Guard when it is not operating  

  as a service in the Navy, shall prescribe regulations to carry out this 

  section.''.                                                             

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 1032 the following new  

  item:                                                                   





            ``1033. Participation in management of specified non-Federal      

      entities: authorized activities.''.                                     





     (b) Civilian Personnel.--(1) Chapter 81 of such title is amended by  

  inserting after section 1588 the following new section:                 

                    ``1589. Participation in management of specified non-Federal  

          entities: authorized activities                                         

     ``(a) Authorization.--(1) The Secretary concerned may authorize an   

  employee described in paragraph (2) to serve without compensation as a  

  director, officer, or trustee, or to otherwise participate, in the      

  management of an entity designated under subsection (b). Any such       

  authorization shall be made on a case-by-case basis, for a particular   

  employee to participate in a specific capacity with a specific          

  designated entity. Such authorization may be made only for the purpose  

  of providing oversight and advice to, and coordination with, the        

  designated entity, and participation of the employee in the activities  

  of the designated entity may not extend to participation in the         

  day-to-day operations of the entity.                                    

     ``(2) Paragraph (1) applies to any employee of the Department of     

  Defense or, in the case of the Coast Guard when not operating as a      

  service in the Navy, of the Department of Transportation. For purposes  

  of this section, the term `employee' includes a civilian officer.       

     ``(b) Designated Entities.--The Secretary of Defense, and the        

  Secretary of Transportation in the case of the Coast Guard when it is   

  not operating as a service in the Navy, shall designate those entities  

  for which authorization under subsection (a) may be provided. The list  

  of entities so designated may not be revised more frequently than       

  semiannually. In making such designations, the Secretary shall designate

  each military welfare society named in paragraph (2) of section 1033(b) 

  of this title and may designate any other entity described in paragraph 

  (3) of such section. No other entities may be designated.               

     ``(c) Publication of Designated Entities and of Authorized           

  Persons.--A designation of an entity under subsection (b), and an       

  authorization under subsection (a) of an employee to participate in the 

  management of such an entity, shall be published in the Federal         

  Register.                                                               

     ``(d) Civilians Outside the Military Departments.--In this section,  

  the term `Secretary concerned' includes the Secretary of Defense with   

  respect to employees of the Department of Defense who are not employees 

  of a military department.                                               

     ``(e) Regulations.--The Secretary of Defense, and the Secretary of   

  Transportation in the case of the Coast Guard                           



                    when it is not operating as a service in the Navy, shall      

          prescribe regulations to carry out this section.''.                     

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 1588 the following new  

  item:                                                                   





            ``1589. Participation in management of specified non-Federal      

      entities: authorized activities.''.                                     



                    SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT 

          OF DEFENSE CIVIL MILITARY PROGRAMS.                                     

    Section 2012 of title 10, United States Code, is amended--            



       (1) by redesignating subsections (g) and (h) as subsections (h) and 

   (i), respectively; and                                                  

     (2) by inserting after subsection (f) the following new subsection:   



     ``(g) Treatment of Member's Participation in Provision of Support or 

  Services.--(1) The Secretary of a military department may not require or

  request a member of the armed forces to submit for consideration by a   

  selection board (including a promotion board, command selection board,  

  or any other kind of selection board) evidence of the member's          

  participation in the provision of support and services to non-Department

  of Defense organizations and activities under this section or the       

  member's involvement in, or support of, other community relations and   

  public affairs activities of the armed forces.                          

     ``(2) Paragraph (1) does not prevent a selection board from          

  considering material submitted voluntarily by a member of the armed     

  forces which provides evidence of the participation of that member or   

  another member in activities described in that paragraph.''.            



                    SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE  

          CIVIL MILITARY PROGRAMS.                                                

     (a) Study Required.--The Comptroller General shall conduct a study to

  evaluate the following:                                                 

       (1) The nature, extent, and cost to the Department of Defense of the

   support and services being provided by units and members of the Armed   

   Forces to non-Department of Defense organizations and activities under  

   the authority of section 2012 of title 10, United States Code.          

       (2) The degree to which the Armed Forces are in compliance with the 

   requirements of such section in the provision of such support and       

   services, especially the requirements that the assistance meet specific 

   requirements relative to military training and that the assistance      

   provided be incidental to military training.                            

       (3) The degree to which the regulations and procedures for          

   implementing such section, as required by subsection (f) of such        

   section, are consistent with the requirements of such section.          

       (4) The effectiveness of the Secretary of Defense and the           

   Secretaries of the military departments in conducting oversight of the  

   implementation of such section, and the provision of such support and   

   services under such section, to ensure compliance with the requirements 

   of such section.                                                        

     (b) Submission of Report.--Not later than March 31, 1998, the        

  Comptroller General shall submit to Congress a report containing the    

  results of the study required by subsection (a).                        



          SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.        



     (a) New Specialty.--Chapter 307 of title 10, United States Code, is  

  amended by adding at the end the following new section:                 

          ``3083. Public Affairs Specialty                                        



     ``There is a career field in the Army known as the Public Affairs    

  Specialty. Members of the Army with the Public Affairs Specialty are--  

     ``(1) the Chief of Public Affairs;                                    



       ``(2) commissioned officers of the Army in the grade of major or    

   above who are selected and specifically educated, trained, and          

   experienced to perform as professional public affairs officers for the  

   remainder of their careers; and                                         

       ``(3) other members of the Army assigned to public affairs positions

   by the Secretary of the Army.''.                                        

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





      ``3083. Public Affairs Specialty.''.                                    





          SEC. 597. GRADE OF DEFENSE ATTACHE AE1 IN FRANCE.                       





     (a) In General.--Chapter 41 of title 10, United States Code, is      

  amended by inserting after section 713 the following new section:       



          ``714. Defense attache AE1 in France: required grade                    





     ``An officer may not be selected for assignment to the position of   

  defense attache AE1 to the United States embassy in France unless the   

  officer holds (or is on a promotion list for promotion to) the grade of 

  brigadier general or, in the case of the Navy, rear admiral (lower      

  half).''.                                                               



     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by inserting after the item relating to section 

  713 the following new item:                                             





      ``714. Defense attache AE1 in France: required grade.''.                





          SEC. 598. REPORT ON CREW REQUIREMENTS OF WC 130J AIRCRAFT.              



     (a) Study.--The Secretary of the Air Force shall conduct a study of  

  the crew requirements for WC 130J aircraft to be procured for assignment

  to the aerial weather reconnaissance mission involving the eyewall      

  penetration of tropical cyclones. The study shall include study of the  

  anticipated operation of WC 130J aircraft in weather reconnaissance     

  missions configured to carry five crewmembers, including a navigator. In

  carrying out the study, the Secretary shall provide for participation by

  members of the Armed Forces currently assigned to units engaged in      

  weather reconnaissance operations.                                      

     (b) Report.--The Secretary shall submit to Congress a report on the  

  results of the study. The Secretary shall include                       



                    in the report the views of members of the Armed Forces        

          currently assigned to units engaged in weather reconnaissance operations

          who participated in the study. If as a result of the study the Secretary

          determines that there are crewmembers assigned to weather reconnaissance

          duties in excess of the crew requirements that will be applicable for WC

          130J aircraft, the Secretary shall include in the report a plan for     

          retraining or reassignment of those crewmembers. The study shall be     

          submitted not later than September 30, 1998.                            



                    SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES          

          APPLICABLE TO DEPARTMENT OF DEFENSE.                                    

     (a) Applicability to Department of Defense Civilian Employees and    

  Contractor Employees.--(1) Section 1501 of title 10, United States Code,

  is amended--                                                            

       (A) by striking out subsection (c) and inserting in lieu thereof the

   following:                                                              

     ``(c) Covered Persons.--(1) Section 1502 of this title applies in the

  case of any member of the armed forces on active duty--                 

       ``(A) who becomes involuntarily absent as a result of a hostile     

   action or under circumstances suggesting that the involuntary absence is

   a result of a hostile action; and                                       

     ``(B) whose status is undetermined or who is unaccounted for.         



     ``(2) Section 1502 of this title applies in the case of any other    

  person who is a citizen of the United States and a civilian officer or  

  employee of the Department of Defense or (subject to paragraph (3)) an  

  employee of a contractor of the Department of Defense--                 

       ``(A) who serves in direct support of, or accompanies, the armed    

   forces in the field under orders and becomes involuntarily absent as a  

   result of a hostile action or under circumstances suggesting that the   

   involuntary absence is a result of a hostile action; and                

     ``(B) whose status is undetermined or who is unaccounted for.         



     ``(3) The Secretary of Defense shall determine, with regard to a     

  pending or ongoing military operation, the specific employees, or groups

  of employees, of contractors of the Department of Defense to be         

  considered to be covered by this subsection.''; and                     

     (B) by adding at the end the following new subsection:                



     ``(f) Secretary Concerned.--In this chapter, the term `Secretary     

  concerned' includes, in the case of a civilian officer or employee of   

  the Department of Defense or an employee of a contractor of the         

  Department of Defense, the Secretary of the military department or head 

  of the element of the Department of Defense employing the officer or    

  employee or contracting with the contractor, as the case may be.''.     



    (2) Section 1503(c) of such title is amended--                        



       (A) in paragraph (1), by striking out ``one military officer'' and  

   inserting in lieu thereof ``one individual described in paragraph (2)'';

       (B) by redesignating paragraphs (2) and (3) as paragraphs (3) and   

   (4), respectively; and                                                  

     (C) by inserting after paragraph (1) the following new paragraph (2): 



    ``(2) An individual referred to in paragraph (1) is the following:    



       ``(A) A military officer, in the case of an inquiry with respect to 

   a member of the armed forces.                                           

       ``(B) A civilian, in the case of an inquiry with respect to a       

   civilian employee of the Department of Defense or of a contractor of the

   Department of Defense.''.                                               

    (3) Section 1504(d) of such title is amended--                        



       (A) in paragraph (1), by striking out ``who are'' and all that      

   follows in that paragraph and inserting in lieu thereof ``as follows:   

       ``(A) In the case of a board that will inquire into the whereabouts 

   and status of one or more members of the armed forces (and no civilians 

   described in subparagraph (B)), the board shall be composed of officers 

   having the grade of major or lieutenant commander or above.             



       ``(B) In the case of a board that will inquire into the whereabouts 

   and status of one or more civilian employees of the Department of       

   Defense or contractors of the Department of Defense (and no members of  

   the armed forces), the board shall be composed of--                     

       ``(i) not less than three employees of the Department of Defense    

   whose rate of annual pay is equal to or greater than the rate of annual 

   pay payable for grade GS 13 of the General Schedule under section 5332  

   of title 5; and                                                         

       ``(ii) such members of the armed forces as the Secretary considers  

   advisable.                                                              

       ``(C) In the case of a board that will inquire into the whereabouts 

   and status of both one or more members of the armed forces and one or   

   more civilians described in subparagraph (B)--                          

       ``(i) the board shall include at least one officer described in     

   subparagraph (A) and at least one employee of the Department of Defense 

   described in subparagraph (B)(i); and                                   

       ``(ii) the ratio of such officers to such employees on the board    

   shall be roughly proportional to the ratio of the number of members of  

   the armed forces who are subjects of the board's inquiry to the number  

   of civilians who are subjects of the board's inquiry.''; and            

       (B) in paragraph (4), by striking out ``section 1503(c)(3)'' and    

   inserting in lieu thereof ``section 1503(c)(4)''.                       

     (4) Paragraph (1) of section 1513 of such title is amended to read as

  follows:                                                                

     ``(1) The term `missing  person' means--                              



       ``(A) a member of the armed forces on active duty who is in a       

   missing status; or                                                      

       ``(B) a civilian employee of the Department of Defense or an        

   employee of a contractor of the Department of Defense who serves in     

   direct support of, or accompanies, the armed forces in the field under  

   orders and who is in a missing status.                                  



      Such term includes an unaccounted for person described in section    

   1509(b) of this title, under the circumstances specified in the last    

   sentence of section 1509(a) of this title.''.                           

     (b) Transmission to Theater Component Commander of Advisory Copy of  

  Missing Person Report.--(1) Section 1502 of such title is amended--     

     (A) by redesignating subsection (b) as subsection (c); and            



       (B) by inserting after subsection (a) the following new subsection  

   (b):                                                                    

     ``(b) Transmission of Advisory Copy to Theater Component             

  Commander.--When transmitting a report under subsection (a)(2)          

  recommending that a person be placed in a missing status, the commander 

  transmitting that report shall transmit an advisory copy of the report  

  to the theater component commander with jurisdiction over the missing   

  person.''.                                                              

     (2) Section 1513 of such title is amended by adding at the end the   

  following new paragraph:                                                

       ``(8) The term `theater component commander' means, with respect to 

   any of the combatant commands, an officer of any of the armed forces who

   (A) is commander of all forces of that armed force assigned to that     

   combatant command, and (B) is directly subordinate to the commander of  

   the combatant command.''.                                               

     (c) Information To Accompany Recommendation of Status of             

  Death.--Section 1507(b) of such title is amended adding at the end the  

  following new paragraphs:                                               

     ``(3) A description of the location of the body, if recovered.        



       ``(4) If the body has been recovered and is not identifiable through

   visual means, a certification by a forensic pathologist that the body   

   recovered is that of the missing person. In determining whether to make 

   such a certification, the forensic pathologist shall consider, as       

   determined necessary by the Secretary of the military department        

   concerned, additional evidence and information provided by appropriate  

   specialists in forensic medicine or other appropriate medical           

   sciences.''.                                                            

     (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and 1504(f)(1)

  of such title are amended by adding at the end the following: ``The     

  identity of counsel appointed under this paragraph for a missing person 

  shall be made known to the missing person's primary next of kin and any 

  other previously designated person of the person.''.                    

     (2) Section 1503(f)(4) of such title is amended by adding at the end 

  the following: ``The primary next of kin of a missing person and any    

  other previously designated person of the missing person shall have the 

  right to submit information to the missing person's counsel relative to 

  the disappearance or status of the missing person.''.                   

     (e) Scope of Preenactment Review.--(1) Section 1509 of such title is 

  amended by striking out subsection (a) and inserting in lieu thereof the

  following:                                                              

     ``(a) Review of Status.--(1) If new information (as defined in       

  paragraph (2)) is found or received that may be related to one or more  

  unaccounted for persons described in subsection (b) (whether or not such

  information specifically relates (or may specifically relate) to any    

  particular such unaccounted for person), that information shall be      

  provided to the Secretary of Defense. Upon receipt of such information, 

  the Secretary shall ensure that the information is treated under        

  paragraphs (2) and (3) of section 1505(c) of this title and under       

  section 1505(d) of this title in the same manner as information received

  under paragraph (1) of section 1505(c) of this title. For purposes of   

  the applicability of other provisions of this chapter in such a case,   

  each such unaccounted for person to whom the new information may be     

  related shall be considered to be a missing person.                     

     ``(2) For purposes of this subsection, new information is information

  that is credible and that--                                             

       ``(A) is found or received after the date of the enactment of the   

   National Defense Authorization Act for                                  



                    Fiscal Year 1998 by a United States intelligence agency, by a 

          Department of Defense agency, or by a person specified in section       

          1504(g) of this title; or                                               

       ``(B) is identified after the date of the enactment of the National 

   Defense Authorization Act for Fiscal Year 1998 in records of the United 

   States as information that could be relevant to the case of one or more 

   unaccounted for persons described in subsection (b).''.                 

     (2) Such section is further amended by adding at the end the         

  following new subsection:                                               

     ``(d) Establishment of Personnel Files for Korean Conflict           

  Cases.--The Secretary of Defense shall ensure that a personnel file is  

  established for each unaccounted for person who is described in         

  subsection (b)(1) if the Secretary possesses information relevant to    

  that person's status. In the case of a person described in subsection   

  (b)(1) for whom a personnel file does not exist, the Secretary shall    

  create a personnel file for such person upon receipt of new information 

  as provided in subsection (a). Each such file shall be handled in       

  accordance with, and subject to the provisions of, section 1506 of this 

  title in the same manner as applies to the file of a missing person.''. 

     (f) Withholding of Classified Information.--Section 1506(b) of such  

  title is amended--                                                      

     (1) by inserting ``(1)'' before ``The Secretary'';                    



       (2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and

   (B), respectively; and                                                  

     (3) by adding at the end the following:                               



     ``(2) If classified information withheld under this subsection refers

  to one or more unnamed missing persons, the Secretary shall ensure that 

  notice of that withheld information, and notice of the date of the most 

  recent review of the classification of that withheld information, is    

  made reasonably accessible to the primary next of kin, members of the   

  immediate family, and the previously designated person.''.              

     (g) Withholding of Privileged Information.--Section 1506(d) of such  

  title is amended--                                                      

     (1) in paragraph (2)--                                                



       (A) by inserting ``or about unnamed missing persons'' in the first  

   sentence after ``the debriefing report'';                               

       (B) by striking out ``the missing person'' in the second sentence   

   and inserting in lieu thereof ``each missing person named in the        

   debriefing report''; and                                                

       (C) by adding at the end the following new sentence: ``Any          

   information contained in the extract of the debriefing report that      

   pertains to unnamed missing persons shall be made reasonably accessible 

   to the primary next of kin, members of the immediate family, and the    

   previously designated person.''; and                                    

       (2) in paragraph (3), by inserting ``, or part of a debriefing      

   report,'' after ``a debriefing report''.                                



           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS                     





                               SUBTITLE A--PAY AND ALLOWANCES                     



      Sec. 601. Increase in basic pay for fiscal year 1998.                   



      Sec. 602. Reform of basic allowance for subsistence.                    



            Sec. 603. Consolidation of basic allowance for quarters, variable 

      housing allowance, and overseas housing allowances.                     

            Sec. 604. Revision of authority to adjust compensation            

      necessitated by reform of subsistence and housing allowances.           

            Sec. 605. Protection of total compensation of members while       

      performing certain duty.                                                

                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           



            Sec. 611. One-year extension of certain bonuses and special pay   

      authorities for reserve forces.                                         

            Sec. 612. One-year extension of certain bonuses and special pay   

      authorities for nurse officer candidates, registered nurses, and nurse  

      anesthetists.                                                           

            Sec. 613. One-year extension of authorities relating to payment of

      other bonuses and special pays.                                         

            Sec. 614. Increase in minimum monthly rate of hazardous duty      

      incentive pay for certain members.                                      

      Sec. 615. Increase in aviation career incentive pay.                    



      Sec. 616. Modification of aviation officer retention bonus.             



      Sec. 617. Availability of multiyear retention bonus for dental officers.



            Sec. 618. Increase in variable and additional special pays for    

      certain dental officers.                                                

            Sec. 619. Availability of special pay for duty at designated      

      hardship duty locations.                                                

      Sec. 620. Definition of sea duty for purposes of career sea pay.        



      Sec. 621. Modification of Selected Reserve reenlistment bonus.          



            Sec. 622. Modification of Selected Reserve enlistment bonus for   

      former enlisted members.                                                

            Sec. 623. Expansion of reserve affiliation bonus to include Coast 

      Guard Reserve.                                                          

            Sec. 624. Increase in special pay and bonuses for                 

      nuclear-qualified officers.                                             

            Sec. 625. Provision of bonuses in lieu of special pay for enlisted

      members extending tours of duty at designated locations overseas.       

      Sec. 626. Increase in amount of family separation allowance.            



      Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.  



                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            



            Sec. 631. Travel and transportation allowances for dependents     

      before approval of member's court-martial sentence.                     

      Sec. 632. Dislocation allowance.                                        



               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    



            Sec. 641. One-year opportunity to discontinue participation in    

      Survivor Benefit Plan.                                                  

            Sec. 642. Time in which change in survivor benefit coverage from  

      former spouse to spouse may be made.                                    

      Sec. 643. Review of Federal former spouse protection laws.              



      Sec. 644. Annuities for certain military surviving spouses.             





            Sec. 645. Administration of benefits for so-called minimum income 

      widows.                                                                 

                                  SUBTITLE E--OTHER MATTERS                       



            Sec. 651. Loan repayment program for commissioned officers in     

      certain health professions.                                             

            Sec. 652. Conformance of NOAA commissioned officers separation pay

      to separation pay for members of other uniformed services.              

            Sec. 653. Eligibility of Public Health Service officers and NOAA  

      commissioned corps officers for reimbursement of adoption expenses.     

            Sec. 654. Payment of back quarters and subsistence allowances to  

      World War II veterans who served as guerrilla fighters in the           

      Philippines.                                                            

            Sec. 655. Subsistence of members of the Armed Forces above the    

      poverty level.                                                          



           Subtitle A--Pay and Allowances                                          





          SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.                   



     (a) Waiver of Section 1009 Adjustment.--The adjustment, to become    

  effective during fiscal year 1998, required by section 1009 of title 37,

  United States Code (as amended by section 604), in the rate of monthly  

  basic pay authorized members of the uniformed services by section 203(a)

  of such title shall not be made.                                        

     (b) Increase in Basic Pay.--Effective on January 1, 1998, the rates  

  of basic pay of members of the uniformed services are increased by 2.8  

  percent.                                                                



          SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.                    



     (a) Entitlement to Allowance.--Section 402 of title 37, United States

  Code, is amended to read as follows:                                    

          ``402. Basic allowance for subsistence                                  



     ``(a) Entitlement to Allowance.--(1) Except as provided in paragraph 

  (2) or otherwise provided by law, each member of a uniformed service who

  is entitled to basic pay is entitled to a basic allowance for           

  subsistence as set forth in this section.                               

     ``(2) An enlisted member is not entitled to the basic allowance for  

  subsistence during basic training.                                      

     ``(b) Rates of Allowance Based on Food Costs.--(1) The monthly rate  

  of basic allowance for subsistence to be in effect for an enlisted      

  member for a year (beginning on January 1 of that year) shall be the    

  amount that is halfway between the following amounts, which are         

  determined by the Secretary of Agriculture as of October 1 of the       

  preceding year:                                                         

       ``(A) The amount equal to the monthly cost of a moderate-cost food  

   plan for a male in the United States who is between 20 and 50 years of  

   age.                                                                    

       ``(B) The amount equal to the monthly cost of a liberal food plan   

   for a male in the United States who is between 20 and 50 years of age.  

     ``(2) The monthly rate of basic allowance for subsistence to be in   

  effect for an officer for a year (beginning on January 1 of that year)  

  shall be the amount equal to the monthly rate of basic allowance for    

  subsistence in effect for officers for the preceding year, increased by 

  the same percentage by which the rate of basic allowance for subsistence

  for enlisted members for the preceding year is increased effective on   

  such January 1.                                                         

     ``(c) Advance Payment.--The allowance to an enlisted member may be   

  paid in advance for a period of not more than three months.             

     ``(d) Special Rule for Members Authorized To Mess Separately.--(1) In

  areas prescribed by the Secretary of Defense, and the Secretary of      

  Transportation with respect to the Coast Guard when it is not operating 

  as a service in the Navy, an enlisted member described in paragraph (2) 

  is entitled to not more than the pro rata allowance established under   

  subsection (b)(1) for each meal the member buys from a source other than

  a messing facility of the United States.                                

     ``(2) An enlisted member referred to in paragraph (1) is a member who

  is granted permission to mess separately and whose duties require the   

  member to buy at least one meal from a source other than a messing      

  facility of the United States.                                          

     ``(e) Policies on Use of Dining and Messing Facilities.--The         

  Secretary of Defense, in consultation with the Secretaries concerned,   

  shall prescribe policies regarding use of dining and field messing      

  facilities of the uniformed services.                                   

     ``(f) Regulations.--(1) The Secretary of Defense shall prescribe     

  regulations for the administration of this section. Before prescribing  

  the regulations, the Secretary shall consult with each Secretary        

  concerned.                                                              

     ``(2) The regulations shall include the specific rates of basic      

  allowance for subsistence required by subsection (b).''.                

     (b) Conforming Amendments.--(1) Section 404 of title 37, United      

  States Code, is amended--                                               

     (A) by striking out subsection (g); and                               



       (B) by redesignating subsections (h), (i), (j), and (k) as          

   subsections (g), (h), (i), and (j), respectively.                       

     (2) Section 6081(a) of title 10, United States Code, is amended by   

  striking out ``Except'' and all that follows through ``subsistence,     

  each'' and inserting in lieu thereof ``Each''.                          

     (c) Transitional Authority To Provide Basic Allowance for            

  Subsistence.--                                                          

       (1) Transitional authority.--Notwithstanding section 402 of title   

   37, United States Code, as amended by subsection (a), during the period 

   beginning on January 1, 1998, and ending on the date determined under   

   paragraph (2)--                                                         

       (A) the basic allowance for subsistence shall not be paid under such

   section 402;                                                            

       (B) a member of the uniformed services is entitled to the basic     

   allowance for subsistence only as provided in subsection (d);           

       (C) an enlisted member of the uniformed services may be paid a      

   partial basic allowance for subsistence as provided in subsection (e);  

   and                                                                     

       (D) the rates of the basic allowance for subsistence are those rates

   determined under subsection (f).                                        

       (2) Termination of transitional authority.--The transitional        

   authority provided under paragraph (1) shall terminate on the first day 

   of the month immediately following the first month for which the monthly

   equivalent of the rate of basic allowance for subsistence payable to    

   enlisted members of the uniformed services (when permission to mess     

   separately is granted), as determined under subsection (f)(2), is equal 

   to or is exceeded by the amount                                         



                    that, except for paragraph (1)(A), would otherwise be the     

          monthly rate of basic allowance for subsistence for enlisted members    

          under section 402(b)(1) of title 37, United States Code, as amended by  

          subsection (a).                                                         

    (d)  Transitional Entitlement to Allowance.--                         



     (1)  Enlisted members.--                                              



       (A) Types of entitlement.--An enlisted member is entitled to the    

   basic allowance for subsistence, on a daily basis, of under one or more 

   of the following circumstances:                                         

     (i) When rations in kind are not available                            



     (ii) When permission to mess separately is granted.                   



       (iii) When assigned to duty under emergency conditions where no     

   messing facilities of the United States are available.                  

       (B) Other entitlement circumstances.--An enlisted member is entitled

   to the allowance while on an authorized leave of absence, while confined

   in a hospital, or while performing travel under orders away from the    

   member's designated post of duty other than field duty or sea duty (as  

   defined in regulations prescribed by the Secretary of Defense). For     

   purposes of the preceding sentence, a member shall not be considered to 

   be performing travel under orders away from his designated post of duty 

   if such member--                                                        

       (i) is an enlisted member serving the member's first tour of active 

   duty;                                                                   

       (ii) has not actually reported to a permanent duty station pursuant 

   to orders directing such assignment; and                                

       (iii) is not actually traveling between stations pursuant to orders 

   directing a change of station.                                          

       (C) Advance payment.--The allowance to an enlisted member, when     

   authorized, may be paid in advance for a period of not more than three  

   months.                                                                 

       (2) Officers.--An officer of a uniformed service who is entitled to 

   basic pay is, at all times, entitled to the basic allowances for        

   subsistence. An aviation cadet of the Navy, Air Force, Marine Corps, or 

   Coast Guard is entitled to the same basic allowance for subsistence as  

   is provided for an officer of the Navy, Air Force, Marine Corps, or     

   Coast Guard, respectively.                                              

    (e)  Transitional Authority for Partial Allowance.--                  



       (1) Enlisted members furnished subsistence in kind.--The Secretary  

   of Defense may provide in regulations for an enlisted member of a       

   uniformed service to be paid a partial basic allowance for subsistence  

   when--                                                                  

     (A) rations in kind are available to the member;                      



     (B) the member is not granted permission to mess separately; or       



       (C) the member is assigned to duty under emergency conditions where 

   messing facilities of the United States are available.                  

       (2) Monthly payment.--Any partial basic allowance for subsistence   

   authorized under paragraph (1) shall be calculated on a daily basis and 

   paid on a monthly basis.                                                

    (f)  Transitional Rates.--                                            



       (1) Allowance for officers.--The monthly rate of basic allowance for

   subsistence for a year (beginning on January 1 of that year) that is    

   payable to officers of the uniformed services shall be the amount that  

   is equal to 101 percent of the rate of basic allowance for subsistence  

   that was payable to officers of the uniformed services for the preceding

   year.                                                                   

       (2) Allowance for enlisted member with permission to mess           

   separately.--The monthly rate of basic allowance for subsistence for a  

   year (beginning on January 1 of that year) that is payable to an        

   enlisted member of the uniformed services entitled to the allowance     

   under subsection (d)(1) shall be the amount that is equal to 101 percent

   of the rate of basic allowance for subsistence that was                 



                    in effect for similarly situated enlisted members of the      

          uniformed services for the preceding year.                              

       (3) Partial allowance for other enlisted members.--The monthly rate 

   of any partial basic allowance for subsistence for a year (beginning on 

   January 1 of that year) payable to an enlisted member of the uniformed  

   services eligible for the allowance under the regulations prescribed    

   under subsection (e)(1) shall be the amount equal to the lesser of the  

   following:                                                              

     (A) The sum of--                                                      



       (i) the partial basic allowance for subsistence in effect for the   

   preceding year; and                                                     

     (ii) the amount equal to the difference, if any, between--            



         (I) the monthly equivalent of the rate of basic allowance for      

    subsistence that was in effect for the preceding year for members of the

    uniformed services above grade E 1 (when permission to mess separately  

    is granted), increased by the same percentage by which the rates of     

    basic pay for members of the uniformed services is increased for the    

    current year; and                                                       

         (II) the amount equal to 101 percent of the monthly equivalent of  

    the rate of basic allowance for subsistence that was in effect for the  

    previous year for members of the uniformed services above grade E 1     

    (when permission to mess separately is granted),                        



      with the amount so determined under this clause multiplied by the    

   number of members estimated to be entitled to receive basic allowance   

   for subsistence under subsection (d) for the current year and then      

   divided by the number of members estimated to be eligible for the       

   partial allowance under the regulations prescribed under subsection     

   (e)(1) for that year.                                                   

     (B) The amount equal to the difference between--                      



       (i) the amount that, except for subsection (c)(1)(A), would         

   otherwise be the monthly rate of basic allowance for subsistence for    

   enlisted members under section 402(b)(1) of title 37, United States     

   Code; and                                                               

       (ii) the amount equal to the monthly equivalent of the value of a   

   daily ration, as determined by the Under Secretary of Defense           

   (Comptroller) as of October 1 of the preceding year.                    

     (g) Effective Date.--This section and the amendments made by this    

  section shall take effect on January 1, 1998.                           



                    SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS,      

          VARIABLE HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.            

     (a) Consolidation of Allowances.--Section 403 of title 37, United    

  States Code, is amended to read as follows:                             

          ``403. Basic allowance for housing                                      



     ``(a) General Entitlement.--(1) Except as otherwise provided by law, 

  a member of a uniformed service who is entitled to basic pay is entitled

  to a basic allowance for housing at the monthly rates prescribed under  

  this section or another provision of law with regard to the applicable  

  component of the basic allowance for housing. The amount of the basic   

  allowance for housing for a member will vary according to the pay grade 

  in which the member is assigned or distributed for basic pay purposes,  

  the dependency status of the member, and the geographic location of the 

  member. The basic allowance for housing may be paid in advance.         

     ``(2) A member of a uniformed service with dependents is not entitled

  to a basic allowance for housing as a member with dependents unless the 

  member makes a certification to the Secretary concerned indicating the  

  status of each dependent of the member. The certification shall be made 

  in accordance with regulations prescribed by the Secretary of Defense.  



     ``(b) Basic Allowance for Housing Inside the United States.--(1) The 

  Secretary of Defense shall determine the costs of adequate housing in a 

  military housing area in the United States for all members of the       

  uniformed services entitled to a basic allowance for housing in that    

  area. The Secretary shall base the determination upon the costs of      

  adequate housing for civilians with comparable income levels in the same

  area.                                                                   

     ``(2) Subject to paragraph (3), the monthly amount of a basic        

  allowance for housing for an area of the United States for a member of a

  uniformed service is equal to the difference between--                  

       ``(A) the monthly cost of adequate housing in that area, as         

   determined by the Secretary of Defense, for members of the uniformed    

   services serving in the same pay grade and with the same dependency     

   status as the member; and                                               

       ``(B) 15 percent of the national average monthly cost of adequate   

   housing in the United States, as determined by the Secretary, for       

   members of the uniformed services serving in the same pay grade and with

   the same dependency status as the member.                               

     ``(3) The rates of basic allowance for housing shall be reduced as   

  necessary to comply with this paragraph. The total amount that may be   

  paid for a fiscal year for the basic allowance for housing under this   

  subsection is the product of--                                          

       ``(A) the total amount authorized to be paid for such allowance for 

   the preceding fiscal year (as adjusted under paragraph (5)); and        

     ``(B) a fraction--                                                    



       ``(i) the numerator of which is the index of the national average   

   monthly cost of housing for June of the preceding fiscal year; and      

       ``(ii) the denominator of which is the index of the national average

   monthly cost of housing for June of the fiscal year before the preceding

   fiscal year.                                                            

     ``(4) An adjustment in the rates of the basic allowance for housing  

  under this subsection as a result of the Secretary's redetermination of 

  housing costs in an area shall take effect on the same date as the      

  effective date of the next increase in basic pay under section 1009 of  

  this title or other provision of law.                                   

     ``(5) In making a determination under paragraph (3) for a fiscal     

  year, the amount authorized to be paid for the preceding fiscal year for

  the basic allowance for housing shall be adjusted to reflect changes    

  during the year for which the determination is made in the number, grade

  distribution, geographic distribution in the United States, and         

  dependency status of members of the uniformed services entitled to the  

  allowance from the number of such members during the preceding fiscal   

  year.                                                                   

     ``(6) So long as a member of a uniformed service retains             

  uninterrupted eligibility to receive a basic allowance for housing      

  within an area of the United States, the monthly amount of the allowance

  for the member may not be reduced as a result of changes in housing     

  costs in the area, changes in the national average monthly cost of      

  housing, or the promotion of the member.                                

     ``(7) In the case of a member without dependents who is assigned to  

  duty inside the United States, the location or the circumstances of     

  which make it necessary that the member be reassigned under the         

  conditions of low cost or no cost permanent change of station or        

  permanent change of assignment, the member may be treated as if the     

  member were not reassigned if the Secretary concerned determines that it

  would be inequitable to base the member's entitlement to, and amount of,

  a basic allowance for housing on the cost of housing in the area to     

  which the member is reassigned.                                         

     ``(c) Basic Allowance for Housing Outside the United States.--(1) The

  Secretary of Defense may prescribe an overseas basic allowance for      

  housing for a member of a uniformed service who is on duty outside of   

  the United States. The Secretary shall establish the basic allowance for

  housing                                                                 



                    under this subsection on the basis of housing costs in the    

          overseas area in which the member is assigned.                          

     ``(2) So long as a member of a uniformed service retains             

  uninterrupted eligibility to receive a basic allowance for housing in an

  overseas area and the actual monthly cost of housing for the member is  

  not reduced, the monthly amount of the allowance in an area outside the 

  United States may not be reduced as a result of changes in housing costs

  in the area or the promotion of the member. The monthly amount of the   

  allowance may be adjusted to reflect changes in currency rates.         

     ``(d) Basic Allowance for Housing When Dependents Are Unable To      

  Accompany Member.--(1) A member of a uniformed service with dependents  

  who is on permanent duty at a location described in paragraph (2) is    

  entitled to a family separation basic allowance for housing under this  

  subsection at a monthly rate equal to the rate of the basic allowance   

  for housing established under subsection (b) or the overseas basic      

  allowance for housing established under subsection (c), whichever       

  applies to that location, for members in the same grade at that location

  without dependents.                                                     

     ``(2) A permanent duty location referred to in paragraph (1) is a    

  location--                                                              

       ``(A) to which the movement of the member's dependents is not       

   authorized at the expense of the United States under section 406 of this

   title, and the member's dependents do not reside at or near the         

   location; and                                                           

       ``(B) at which quarters of the United States are not available for  

   assignment to the member.                                               

     ``(3) In the case of a member with dependents who is assigned to duty

  at a location or under circumstances that, as determined by the         

  Secretary concerned, require the member's dependents to reside at a     

  different location, the member shall receive a basic allowance for      

  housing, as provided in subsection (a) or (b), as if the member were    

  assigned to duty in the area in which the dependents reside, regardless 

  of whether the member resides in quarters of the United States or is    

  also entitled to a family separation basic allowance for housing by     

  reason of paragraph (1).                                                

     ``(4) The family separation basic allowance for housing under this   

  subsection shall be in addition to any other allowance or per diem that 

  the member is otherwise entitled to receive under this title. A member  

  may receive a basic allowance for housing under both paragraphs (1) and 

  (3).                                                                    

     ``(e) Effect of Assignment to Quarters.--(1) Except as otherwise     

  provided by law, a member of a uniformed service who is assigned to     

  quarters of the United States or a housing facility under the           

  jurisdiction of a uniformed service appropriate to the grade, rank, or  

  rating of the member and adequate for the member and dependents of the  

  member, if with dependents, is not entitled to a basic allowance for    

  housing.                                                                

     ``(2) A member without dependents who is in a pay grade above pay    

  grade E 6 and who is assigned to quarters in the United States or a     

  housing facility under the jurisdiction of a uniformed service,         

  appropriate to the grade or rank of the member and adequate for the     

  member, may elect not to occupy those quarters and instead to receive   

  the basic allowance for housing prescribed for the member's pay grade by

  this section.                                                           

     ``(3) A member without dependents who is in pay grade E 6 and who is 

  assigned to quarters of the United States that do not meet the minimum  

  adequacy standards established by the Secretary of Defense for members  

  in such pay grade, or to a housing facility under the jurisdiction of a 

  uniformed service that does not meet such standards, may elect not to   

  occupy such quarters or facility and instead to receive the basic       

  allowance for housing prescribed for the member's pay grade under this  

  section.                                                                

     ``(4) The Secretary concerned may deny the right to make an election 

  under paragraph (2) or (3) if the Secretary determines that the exercise

  of such an election would adversely affect a training mission, military 

  discipline, or military readiness.                                      

     ``(5) A member with dependents who is assigned to quarters of the    

  United States or a housing facility under the jurisdiction of a         

  uniformed service may be paid the basic allowance for housing if,       

  because of orders of competent authority, the dependents are prevented  

  from occupying those quarters.                                          

     ``(f) Ineligibility During Initial Field Duty or Sea Duty.--(1) A    

  member of a uniformed service without dependents who makes a permanent  

  change of station for assignment to a unit conducting field operations  

  is not entitled to a basic allowance for housing while on that initial  

  field duty unless the commanding officer of the member certifies that   

  the member was necessarily required to procure quarters at the member's 

  expense.                                                                

     ``(2)(A) Except as provided in subparagraphs (B) and (C), a member of

  a uniformed service without dependents who is in a pay grade below pay  

  grade E 6 is not entitled to a basic allowance for housing while the    

  member is on sea duty.                                                  

     ``(B) Under regulations prescribed by the Secretary concerned, the   

  Secretary may authorize the payment of a basic allowance for housing to 

  a member of a uniformed service without dependents who is serving in pay

  grade E 5 and is assigned to sea duty. In prescribing regulations under 

  this subparagraph, the Secretary concerned shall consider the           

  availability of quarters for members serving in pay grade E 5.          

     ``(C) Notwithstanding section 421 of this title, two members of the  

  uniformed services in a pay grade below pay grade E 6 who are married to

  each other, have no other dependents, and are simultaneously assigned to

  sea duty are jointly entitled to one basic allowance for housing during 

  the period of such simultaneous sea duty. The amount of the allowance   

  shall be based on the without dependents rate for the pay grade of the  

  senior member of the couple. However, this subparagraph shall not apply 

  to a couple if one or both of the members are entitled to a basic       

  allowance for housing under subparagraph (B).                           

     ``(3) The Secretary of Defense, and the Secretary of Transportation  

  with respect to the Coast Guard when it is not operating as a service in

  the Department of the Navy, shall prescribe regulation defining the     

  terms `field duty' and `sea duty' for purposes of this section.         



     ``(g) Reserve Members.--(1) A member of a reserve component without  

  dependents who is called or ordered to active duty in support of a      

  contingency operation, or a retired member without dependents who is    

  ordered to active duty under section 688(a) of title 10 in support of a 

  contingency operation, may not be denied a basic allowance for housing  

  if, because of that call or order, the member is unable to continue to  

  occupy a residence--                                                    

       ``(A) which is maintained as the primary residence of the member at 

   the time of the call or order; and                                      

       ``(B) which is owned by the member or for which the member is       

   responsible for rental payments.                                        

     ``(2) Paragraph (1) shall not apply if the member is authorized      

  transportation of household goods under section 406 of this title as    

  part of the call or order to active duty described in such paragraph.   

     ``(3) The Secretary of Defense shall establish a rate of basic       

  allowance for housing to be paid to a member of a reserve component     

  while the member serves on active duty under a call or order to active  

  duty specifying a period of less than 140 days, unless the call or order

  to active duty is in support of a contingency operation.                

     ``(h) Rental of Public Quarters.--Notwithstanding any other law      

  (including those restricting the occupancy of housing facilities under  

  the jurisdiction of a department or agency of the United States by      

  members, and their dependents, of the armed forces above specified      

  grades, or by members, and their dependents, of the National Oceanic and

  Atmospheric Administration and the Public Health Service), a member of a

  uniformed service, and the dependents of the member, may be accepted as 

  tenants in, and may occupy on a rental basis, any of those housing      

  facilities, other than public quarters constructed or designated for    

  assignment to an occupancy without charge by such a member and the      

  dependents of the member, if any. Such a member may not, because of     

  occupancy under this subsection, be deprived of any money allowance to  

  which the member is otherwise entitled for the rental of quarters.      

     ``(i) Temporary Housing Allowance While in Travel or Leave Status.--A

  member of a uniformed service who is in a pay grade E 4 (4 or more years

  of service) or above is entitled to a temporary basic allowance for     

  housing (at a rate determined by the Secretary of Defense) while the    

  member is in a travel or leave status between permanent duty stations,  

  including time granted as delay en route or proceed time, when the      

  member is not assigned to quarters of the United States.                

     ``(j) Aviation Cadets.--The eligibility of an aviation cadet of the  

  Navy, Air Force, Marine Corps, or Coast Guard for a basic allowance for 

  housing shall be determined as if the aviation cadet were a member of   

  the uniformed services in pay grade E 4.                                

     ``(k) Administration.--(1) The Secretary of Defense shall prescribe  

  regulations for the administration of this section.                     

     ``(2) The Secretary concerned may make such determinations as may be 

  necessary to administer this section, including determinations of       

  dependency and relationship. When warranted by the circumstances, the   

  Secretary concerned may reconsider and change or modify any such        

  determination. The authority of the Secretary concerned under this      

  subsection may be delegated. Any determination made under this section  

  with regard to a member of the uniformed services is final and is not   

  subject to review by any accounting officer of the United States or a   

  court, unless there is fraud or gross negligence.                       

     ``(3) Parking facilities (including utility connections) provided    

  members of the uniformed services for house trailers and mobile homes   

  not owned by the Government shall not be considered to be quarters for  

  the purposes of this section or any other provision of law. Any fees    

  established by the Government for the use of such a facility shall be   

  established in an amount sufficient to cover the cost of maintenance,   

  services, and utilities and to amortize the cost of construction of the 

  facility over the 25-year period beginning with the completion of such  

  construction.                                                           



     ``(l) Temporary Continuation of Allowance for Dependents of Members  

  Dying on Active Duty.--(1) The Secretary of Defense, or the Secretary of

  Transportation in the case of the Coast Guard when not operating as a   

  service in the Navy, may allow the dependents of a member of the armed  

  forces who dies on active duty and whose dependents are occupying family

  housing provided by the Department of Defense, or by the Department of  

  Transportation in the case of the Coast Guard, other than on a rental   

  basis on the date of the member's death to continue to occupy such      

  housing without charge for a period of 180 days.                        

     ``(2) The Secretary concerned may pay a basic allowance for housing  

  (at the rate that is payable for members of the same grade and          

  dependency status as the deceased member for the area where the         

  dependents are residing) to the dependents of a member of the uniformed 

  services who dies while on active duty and whose dependents--           

       ``(A) are not occupying a housing facility under the jurisdiction of

   a uniformed service on the date of the member's death;                  

     ``(B) are occupying such housing on a rental basis on such date; or   



       ``(C) vacate such housing sooner than 180 days after the date of the

   member's death.                                                         

     ``(3) The payment of the allowance under paragraph (2) shall         

  terminate 180 days after the date of the member's death.                

     ``(m) Members Paying Child Support.--(1) A member of a uniformed     

  service with dependents may not be paid a basic allowance for housing at

  the with dependents rate solely by reason of the payment of child       

  support by the member if--                                              

       ``(A) the member is assigned to a housing facility under the        

   jurisdiction of a uniformed service; or                                 

       ``(B) the member is assigned to sea duty, and elects not to occupy  

   assigned quarters for unaccompanied personnel, unless the member is in a

   pay grade above E 4.                                                    

     ``(2) A member of a uniformed service assigned to quarters of the    

  United States or a housing facility under the jurisdiction of a         

  uniformed service who is not otherwise authorized a basic allowance for 

  housing and who pays child support is entitled to the basic allowance   

  for housing differential, except for months for which the amount payable

  for the child support is less than the rate of the differential. Payment

  of a basic allowance for housing differential does not affect any       

  entitlement of the member to a partial allowance for quarters under     

  subsection (n).                                                         

     ``(3) The basic allowance for housing differential to which a member 

  is entitled under paragraph (2) is the amount equal to the difference   

  between--                                                               

       ``(A) the rate of the basic allowance for quarters (with dependents)

   for the member's pay grade, as such rate was in effect on December 31,  

   1997, under this section (as in effect on that date); and               

       ``(B) the rate of the basic allowance for quarters (without         

   dependents) for the member's pay grade, as such rate was in effect on   

   December 31, 1997, under this section (as in effect on that date).      

     ``(4) Whenever the rates of basic pay for members of the uniformed   

  services are increased, the monthly amount of the basic allowance for   

  housing differential computed under paragraph (3) shall be increased by 

  the average percentage increase in the rates of basic pay. The effective

  date of the increase shall be the same date as the effective date of the

  increase in the rates of basic pay.                                     

     ``(5) In the case of two members, who have one or more common        

  dependents (and no others), who are not married to each other, and one  

  of whom pays child support to the other, the amount of the basic        

  allowance for housing paid to each member under this section shall be   

  reduced in accordance with regulations prescribed by the Secretary of   

  Defense. The total amount of the basic allowances for housing paid to   

  the two members may not exceed the sum of the amounts of the allowance  

  to which each member would be otherwise entitled under this section.    



     ``(n) Partial Allowance for Members Without Dependents.--(1) A member

  of a uniformed service without dependents who is not entitled to receive

  a basic allowance for housing under subsection (b), (c), or (d) is      

  entitled to a partial basic allowance for housing at a rate determined  

  by the Secretary of Defense under paragraph (2).                        

     ``(2) The rate of the partial basic allowance for housing is the     

  partial rate of the basic allowance for quarters for the member's pay   

  grade as such partial rate was in effect on December 31, 1997, under    

  section 1009(c)(2) of this title (as such section was in effect on such 

  date).''.                                                               

     (b) Transition to Basic Allowance for Housing.--The Secretary of     

  Defense shall develop and implement a plan to incrementally manage the  

  rate of growth of the various components of the basic allowance for     

  housing authorized by section 403 of title 37, United States Code (as   

  amended by subsection (a)), during a transition period of not more than 

  six years. During the transition period, the Secretary may continue to  

  use the authorities provided under sections 403, 403a, 405(b), and      

  427(a) of title 37, United States Code (as in effect on the day before  

  the date of the enactment of this Act), but subject to such             

  modifications as the Secretary considers necessary, to provide          

  allowances for members of the uniformed services.                       

     (c) Repeal of Superseded Authorities.--(1) Section 403a of title 37, 

  United States Code, is repealed.                                        

    (2) Section 405 of such title is amended--                            



     (A) by striking out subsection (b); and                               



       (B) by redesignating subsections (c) and (d) as subsections (b) and 

   (c), respectively.                                                      

    (3) Section 427 of such title is amended--                            



     (A) by striking out subsection (a); and                               



     (B) in subsection (b)--                                               



       (i) by striking out ``(b) Additional Separation Allowance.--'' and  

   inserting in lieu thereof ``(a) Entitlement to Allowance.--'';          

     (ii) in paragraph (1)--                                               



       (I) by striking out ``, including subsection (a),'' in the matter   

   preceding the subparagraphs;                                            

     (II) by inserting ``or'' at the end of subparagraph (B);              



       (III) by striking out ``; or'' at the end of subparagraph (C) and   

   inserting in lieu thereof a period; and                                 

     (IV) by striking out subparagraph (D);                                



     (iii) in paragraph (3)--                                              



       (I) by striking out ``(3) An allowance'' and inserting in lieu      

   thereof ``(b) Entitlement When No Residence or Household Maintained for 

   Dependents.--An allowance''; and                                        

       (II) by striking out ``this subsection'' and inserting in lieu      

   thereof ``subsection (a)'';                                             

     (iv) in paragraph (4)--                                               



       (I) by striking out ``(4) A member'' and inserting in lieu thereof  

   ``(c) Effect of Election To Serve Unaccompanied Tour of Duty.--A        

   member''; and                                                           

       (II) by striking out ``paragraph (1)(A) of this subsection'' and    

   inserting in lieu thereof ``subsection (a)(1)(A)''; and                 

       (v) by striking out paragraph (5) and inserting in lieu thereof the 

   following new subsection:                                               

     ``(d) Entitlement While Spouse Entitled to Basic Pay.--A member      

  married to another member of the uniformed services becomes entitled,   

  regardless of any other dependency status, to an allowance under        

  subsection (a) by virtue of duty prescribed in subparagraph (A), (B), or

  (C) of paragraph (1) of such subsection if the members were residing    

  together immediately before being separated by reasons of execution of  

  military orders. Section 421 of this title does not apply to bar the    

  entitlement to an allowance under this section. However, not more than  

  one monthly allowance may be paid with respect to a married couple under

  this section.''.                                                        



     (4) The table of sections at the beginning of chapter 7 of title 37, 

  United States Code, is amended by striking out the items relating to    

  sections 403 and 403a and inserting in lieu thereof the following new   

  item:                                                                   





      ``403. Basic allowance for housing.''.                                  







     (d) Conforming Amendments.--(1) Title 37, United States Code, is     

  amended--                                                               

       (A) in section 101(25), by striking out ``basic allowance for       

   quarters (including any variable housing allowance or station housing   

   allowance)'' and inserting in lieu thereof ``basic allowance for        

   housing'';                                                              

       (B) in section 406(c), by striking out ``sections 404 and 405'' and 

   inserting in lieu thereof ``sections 403(c), 404, and 405'';            

       (C) in section 420(c), by striking out ``quarters'' and inserting in

   lieu thereof ``housing'';                                               

       (D) in section 551(3)(D), by striking out ``basic allowance for     

   quarters'' and inserting in lieu thereof ``basic allowance for          

   housing''; and                                                          

       (E) in section 1014(a), by striking out ``basic allowance for       

   quarters'' and inserting in lieu thereof ``basic allowance for          

   housing''.                                                              

    (2) Title 10, United States Code, is amended--                        



       (A) in section 708(c)(1), by striking out ``basic allowance for     

   quarters or basic allowance for subsistence'' and inserting in lieu     

   thereof ``basic allowance for housing under section 403 of title 37,    

   basic allowance for subsistence under section 402 of such title,'';     

     (B) in section 2830(a)--                                              



       (i) in paragraph (1), by striking out ``basic allowance for         

   quarters'' and inserting in lieu thereof ``basic allowance for housing  

   under section 403 of title 37''; and                                    

       (ii) in paragraph (2), by striking out ``basic allowance for        

   quarters'' and inserting in lieu thereof ``basic allowance for          

   housing'';                                                              

     (C) in section 2882(b)--                                              



       (i) in paragraph (1), by striking out ``section 403(b)'' and        

   inserting in lieu thereof ``section 403''; and                          

       (ii) in paragraph (2), by striking out ``basic allowance for        

   quarters'' and all that follows through the end of the paragraph and    

   inserting in lieu thereof ``basic allowance for housing under section   

   403 of title 37.'';                                                     

     (D) in section 7572(b)--                                              



       (i) in paragraph (1), by striking out ``the total of--'' and all    

   that follows through the end of the paragraph and inserting in lieu     

   thereof ``the basic allowance for housing payable under section 403 of  

   title 37 to a member of the same pay grade without dependents for the   

   period during which the member is deprived of quarters on board ship.'';

   and                                                                     

       (ii) in paragraph (2), by striking out ``basic allowance for        

   quarters'' and inserting in lieu thereof ``basic allowance for          

   housing''; and                                                          

       (E) in section 7573, by striking out ``basic allowance for          

   quarters'' and inserting in lieu thereof ``basic allowance for housing  

   under section 403 of title 37''.                                        

     (3) Section 5561(6)(D) of title 5, United States Code, is amended by 

  striking out ``basic allowance for quarters'' and inserting in lieu     

  thereof ``basic allowance for housing''.                                

     (4) Section 107(b) of title 32, United States Code, is amended by    

  striking out ``and quarters'' and inserting in lieu thereof ``and       

  housing''.                                                              

     (5) Section 4(k)(10) of the Military Selective Service Act (50 U.S.C.

  App. 454(k)(10)) is amended by striking out ``as such terms'' and all   

  that follows through ``extended or amended'' and inserting in lieu      

  thereof ``shall be entitled to receive a dependency allowance equal to  

  the basic allowance for housing provided for persons in pay grade E 1   

  under section 403 of title 37, United States Code,''.                   

     (e) Effective Date.--This section and the amendments made by this    

  section shall take effect on January 1, 1998.                           



                    SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION        

          NECESSITATED BY REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.           

     (a) Removal of References to BAS and BAQ.--(1) Section 1009 of title 

  37, United States Code, is amended to read as follows:                  

          ``1009. Adjustments of monthly basic pay                                



     ``(a) Adjustment Required.--Whenever the General Schedule of         

  compensation for Federal classified employees, as contained in section  

  5332 of title 5, is adjusted upward as provided in section 5303 of such 

  title, the President shall immediately make an upward adjustment in the 

  monthly basic pay authorized members of the uniformed services by       

  section 203(a) of this title.                                           

     ``(b) Effectiveness of Adjustment.--An adjustment under this section 

  shall--                                                                 

     ``(1) have the force and effect of law; and                           



       ``(2) carry the same effective date as that applying to the         

   compensation adjustments provided General Schedule employees.           

     ``(c) Equal Percentage Increase for All Members.--Subject to         

  subsection (d), an adjustment under this section shall provide all      

  eligible members with an increase in the monthly basic pay which is of  

  the same percentage as the overall average percentage increase in the   

  General Schedule rates of both basic pay and locality pay for civilian  

  employees.                                                              

     ``(d) Allocation of Increase Among Pay Grades and                    

  Years-of-Service.--(1) Subject to paragraph (2), whenever the President 

  determines such action to be in the best interest of the Government, he 

  may allocate the overall percentage increase in the monthly basic pay   

  under subsection (a) among such pay grade and years-of-service          

  categories as he considers appropriate.                                 

     ``(2) In making any allocation of an overall percentage increase in  

  basic pay under paragraph (1)--                                         

       ``(A) the amount of the increase in basic pay for any given pay     

   grade and years-of-service category after any allocation made under this

   subsection may not be less than 75 percent of the amount of the increase

   in the monthly basic pay that would otherwise have been effective with  

   respect to such pay grade and years-of-service category under subsection

   (c); and                                                                

       ``(B) the percentage increase in the monthly basic pay in the case  

   of any member of the uniformed services with four years or less service 

   may not exceed the overall percentage increase in the General Schedule  

   rates of basic pay for civilian employees.                              

     ``(e) Notice of Allocations.--Whenever the President plans to        

  exercise the authority of the President under subsection (d) with       

  respect to any anticipated increase in the monthly basic pay of members 

  of the uniformed services, the President shall advise Congress, at the  

  earliest practicable time prior to the effective date of such increase, 

  regarding the proposed allocation of such increase.                     

     ``(f) Quadrennial Assessment of Allocations.--The allocations of     

  increases made under this section shall be assessed in conjunction with 

  the quadrennial review of military compensation required by section     

  1008(b) of this title.''.                                               

     (2) The item relating to such section in the table of sections at the

  beginning of chapter 19 of such title is amended to read as follows:    





      ``1009. Adjustments of monthly basic pay.''.                            







     (b) Effective Date.--The amendments made by subsection (a) shall take

  effect on January 1, 1998.                                              

                    SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE   

          PERFORMING CERTAIN DUTY.                                                

     Section 1009 of title 37, United States Code, as amended by section  

  604, is further amended--                                               

     (1) by redesignating subsection (f) as subsection (g); and            



     (2) by inserting after subsection (e) the following new subsection:   





     ``(f) Protection of Member's Total Compensation While Performing     

  Certain Duty.--(1) The total daily equivalent amount of the elements of 

  compensation described in paragraph (3), together with other pay and    

  allowances under this title, to be paid to a member of the uniformed    

  services who is temporarily assigned to duty away from the member's     

  permanent duty station or to duty under field conditions at the member's

  permanent duty station shall not be less, for any day during the        

  assignment period, than the total amount, for the day immediately       

  preceding the date of the assignment, of the elements of compensation   

  and other pay and allowances of the member.                             

     ``(2) Paragraph (1) shall not apply with respect to an element of    

  compensation or other pay or allowance of a member during an assignment 

  described in such paragraph to the extent that the element of           

  compensation or other pay or allowance is reduced or terminated due to  

  circumstances unrelated to the assignment.                              

     ``(3) The elements of compensation referred to in this subsection    

  mean--                                                                  

       ``(A) the monthly basic pay authorized members of the uniformed     

   services by section 203(a) of this title;                               

       ``(B) the basic allowance for subsistence authorized members of the 

   uniformed services by section 402 of this title; and                    

       ``(C) the basic allowance for housing authorized members of the     

   uniformed services by section 403 of this title.''                      



           Subtitle B--Bonuses and Special and Incentive Pays                      



                    SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL   

          PAY AUTHORITIES FOR RESERVE FORCES.                                     

     (a) Special Pay for Health Professionals in Critically Short Wartime 

  Specialties.--Section 302g(f) of title 37, United States Code, is       

  amended by striking out ``September 30, 1998'' and inserting in lieu    

  thereof ``September 30, 1999''.                                         

     (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title   

  37, United States Code, is amended by striking out ``September 30,      

  1998'' and inserting in lieu thereof ``September 30, 1999''.            

     (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 37, 

  United States Code, is amended by striking out ``September 30, 1998''   

  and inserting in lieu thereof ``September 30, 1999''.                   

     (d) Special Pay for Enlisted Members Assigned to Certain High        

  Priority Units.--Section 308d(c) of title 37, United States Code, is    

  amended by striking out ``September 30, 1998'' and inserting in lieu    

  thereof ``September 30, 1999''.                                         

     (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 37,

  United States Code, is amended by striking out ``September 30, 1998''   

  and inserting in lieu thereof ``September 30, 1999''.                   

     (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 308h(g)

  of title 37, United States Code, is amended by striking out ``September 

  30, 1998'' and inserting in lieu thereof ``September 30, 1999''.        

     (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37,    

  United States Code, as redesignated by section 622, is amended by       

  striking out ``September 30, 1998'' and inserting in lieu thereof       

  ``September 30, 1999''.                                                 

     (h) Repayment of Education Loans for Certain Health Professionals Who

  Serve in the Selected Reserve.--Section 16302(d) of title 10, United    

  States Code, is amended by striking out ``October 1, 1998'' and         

  inserting in lieu thereof ``October 1, 1999''.                          



                    SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL   

          PAY AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND    

          NURSE ANESTHETISTS.                                                     

     (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)  

  of title 10, United States Code, is amended by striking out ``September 

  30, 1998'' and inserting in lieu thereof ``September 30, 1999''.        

     (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of    

  title 37, United States Code, is amended by striking out ``September 30,

  1998'' and inserting in lieu thereof ``September 30, 1999''.            

     (c) Incentive Special Pay for Nurse Anesthetists.--Section 302e(a)(1)

  of title 37, United States Code, is amended by striking out ``September 

  30, 1998'' and inserting in lieu thereof ``September 30, 1999''.        



                    SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO       

          PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.                              

     (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,  

  United States Code, is amended by striking out ``September 30, 1998,''  

  and inserting in lieu thereof ``September 30, 1999,''.                  

     (b) Reenlistment Bonus for Active Members.--Section 308(g) of title  

  37, United States Code, is amended by striking out ``September 30,      

  1998'' and inserting in lieu thereof ``September 30, 1999''.            

     (c) Enlistment Bonuses for Members With Critical Skills.--Sections   

  308a(c) and 308f(c) of title 37, United States Code, are each amended by

  striking out ``September 30, 1998'' and inserting in lieu thereof       

  ``September 30, 1999''.                                                 

     (d) Special Pay for Nuclear Qualified Officers Extending Period of   

  Active Service.--Section 312(e) of title 37, United States Code, is     

  amended by striking out ``September 30, 1998'' and inserting in lieu    

  thereof ``September 30, 1999''.                                         

     (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37,    

  United States Code, is amended by striking out ``September 30, 1998''   

  and inserting in lieu thereof ``September 30, 1999''.                   

     (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of title 

  37, United States Code, is amended by striking out ``October 1, 1998''  

  and inserting in lieu thereof ``October 1, 1999''.                      



                    SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY  

          INCENTIVE PAY FOR CERTAIN MEMBERS.                                      

     (a) Aerial Flight Crewmembers.--The table in subsection (b) of       

  section 301 of title 37, United States Code, is amended--               

       (1) by striking out ``110'' each place it appears and inserting in  

   lieu thereof ``150''; and                                               

       (2) by striking out ``125'' each place it appears and inserting in  

   lieu thereof ``150''.                                                   

     (b) Air Weapons Controller Aircrew.--The table in subsection         

  (c)(2)(A) of such section is amended--                                  

       (1) by striking out ``100'' in the first column of amounts and      

   inserting in lieu thereof ``150'';                                      

       (2) by striking out ``110'' in the last column of amounts and       

   inserting in lieu thereof ``150''; and                                  

       (3) by striking out ``125'' each place it appears and inserting in  

   lieu thereof ``150''.                                                   

    (c)  Other Members.--Subsection (c)(1) of such section is amended--   



       (1) by striking out ``$110'' and inserting in lieu thereof ``$150'';

   and                                                                     

     (2) by striking out ``$165'' and inserting in lieu thereof ``$225''.  





          SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.                    



     (a) Amounts.--The table in subsection (b)(1) of section 301a of title

  37, United States Code, is amended--                                    

     (1) by inserting at the end of phase I of the table the following:    







  ``Over 14                                                               



 840'';                                                                  







   and                                                                     



       (2) by striking out phase II of the table and inserting in lieu     

   thereof the following:                                                  



                                         ``PHASE II                               



                                                                               



        ``Monthly                                                              



        ``Years of service as an officer:                                      



        rate                                                                   



  ``Over 22                                                               



 $58515                                                                  



  ``Over 23                                                               



 49515                                                                   



  ``Over 24                                                               



 38515                                                                   



  ``Over 25                                                               



 250''.                                                                  







     (b) Conforming Amendments.--Such subsection is further amended in the

  matter after the table by striking out ``18 years'' both places it      

  appears and inserting in lieu thereof ``22 years''.                     

     (c) Effective Date and Applicability.--The amendments made by        

  subsection (a) shall take effect on January 1, 1999, and shall apply    

  with respect to months beginning on or after that date.                 



          SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.             



     (a) Increase in Bonus Amounts.--Subsection (c) of section 301b of    

  title 37, United States Code, is amended--                              

       (1) in paragraph (1), by striking out ``$12,000'' and inserting in  

   lieu thereof ``$25,000''; and                                           

       (2) in paragraph (2), by striking out ``$6,000'' and inserting in   

   lieu thereof ``$12,000''.                                               

     (b) Duration of Agreement.--Paragraph (2) of such subsection is      

  further amended by striking out ``one or two years'' and inserting in   

  lieu thereof ``one, two, or three years''.                              

     (c) Content of Annual Report.--Subsection (i)(1) of such section is  

  amended--                                                               

     (1) by inserting ``and'' at the end of subparagraph (A);              



       (2) by striking out ``; and'' at the end of subparagraph (B) and    

   inserting in lieu thereof a period; and                                 

     (3) by striking out subparagraph (C).                                 



     (d) Definition of Aviation Specialty.--Subsection (j)(2) of such     

  section is amended by inserting ``specific'' before ``community'' both  

  places it appears.                                                      

     (e) Effective Dates and Applicability.--The amendments made by this  

  section shall take effect as of October 1, 1996, and shall apply with   

  respect to agreements accepted under section 301b of title 37, United   

  States Code, on or after that date.                                     



          SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL OFFICERS.



     (a) Availability of Retention Bonus.--Chapter 5 of title 37, United  

  States Code, is amended by inserting after section 301d the following   

  new section:                                                            

          ``301e. Multiyear retention bonus: dental officers of the armed forces  



     ``(a) Bonus Authorized.--(1) A dental officer described in subsection

  (b) who executes a written agreement to remain on active duty for two,  

  three, or four years after completion of any other active-duty service  

  commitment may, upon acceptance of the written agreement by the         

  Secretary of the military department concerned, be paid a retention     

  bonus as provided in this section.                                      

     ``(2) The amount of a retention bonus under paragraph (1) may not    

  exceed $14,000 for each year covered by a four-year agreement. The      

  maximum yearly retention bonus for two-year and three-year agreements   

  shall be reduced to reflect the shorter service commitment.             

     ``(b) Officers Automatically Eligible.--Subsection (a) applies to an 

  officer of the armed forces who--                                       

       ``(1) is an officer of the Dental Corps of the Army or the Navy or  

   an officer of the Air Force designated as a dental officer;             

     ``(2) has a dental specialty in oral and maxillofacial surgery;       



     ``(3) is in a pay grade below pay grade 0 7;                          



       ``(4) has at least eight years of creditable service (computed as   

   described in section 302b(g) of this title) or has completed any        

   active-duty service commitment incurred for dental education and        

   training; and                                                           

       ``(5) has completed initial residency training (or will complete    

   such training before September 30 of the fiscal year in which the       

   officer enters into an agreement under subsection (a)).                 

     ``(c) Extension of Bonus to Other Dental Officers.--At the discretion

  of the Secretary of the military department concerned, the Secretary may

  enter into a written agreement described in subsection (a)(1) with a    

  dental officer who does not have the dental specialty specified in      

  subsection (b)(2), and pay a retention bonus to such an officer as      

  provided in this section, if the officer otherwise satisfies the        

  eligibility requirements specified in subsection (b). The Secretaries   

  shall exercise the authority provided in this section in a manner       

  consistent with regulations prescribed by the Secretary of Defense.     

     ``(d) Refunds.--(1) Refunds shall be required, on a pro rata basis,  

  of sums paid under this section if the officer who has received the     

  payment fails to complete the total period of active duty specified in  

  the agreement, as conditions and circumstances warrant.                 

     ``(2) An obligation to reimburse the United States imposed under     

  paragraph (1) is for all purposes a debt owed to the United States.     

     ``(3) A discharge in bankruptcy under title 11, United States Code,  

  that is entered less than five years after the termination of an        

  agreement under this section does not discharge the member signing such 

  agreement from a debt arising under such agreement or under paragraph   

  (1). This paragraph applies to any case commenced under title 11 after  

  the date of the enactment of the National Defense Authorization Act for 

  Fiscal Year 1998.''.                                                    

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by inserting after the item relating to section 

  301d the following new item:                                            





            ``301e. Multiyear retention bonus: dental officers of the armed   

      forces.''.                                                              



                    SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR

          CERTAIN DENTAL OFFICERS.                                                

     (a) Variable Special Pay for Junior Officers.--Paragraph (2) of      

  section 302b(a) of title 37, United States Code, is amended by striking 

  out subparagraphs (C), (D), (E), and (F) and inserting in lieu thereof  

  the following new subparagraphs:                                        



       ``(C) $7,000 per year, if the officer has at least six but less than

   eight years of creditable service.                                      

       ``(D) $12,000 per year, if the officer has at least eight but less  

   than 12 years of creditable service.                                    

       ``(E) $10,000 per year, if the officer has at least 12 but less than

   14 years of creditable service.                                         

       ``(F) $9,000 per year, if the officer has at least 14 but less than 

   18 years of creditable service.                                         

       ``(G) $8,000 per year, if the officer has 18 or more years of       

   creditable service.''.                                                  

     (b) Variable Special Pay for Senior Officers.--Paragraph (3) of such 

  section is amended by striking out ``$1,000'' and inserting in lieu     

  thereof ``$7,000''.                                                     

     (c) Additional Special Pay.--Paragraph (4) of such section is amended

  by striking out subparagraphs (B), (C), and (D) and inserting in lieu   

  thereof the following new subparagraphs:                                

       ``(B) $6,000 per year, if the officer has at least three but less   

   than 10 years of creditable service.                                    

       ``(C) $15,000 per year, if the officer has 10 or more years of      

   creditable service.''.                                                  



                    SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED  

          HARDSHIP DUTY LOCATIONS.                                                

     (a) Special Pay Authorized.--Subsection (a) of section 305 of title  

  37, United States Code, is amended to read as follows:                  

     ``(a) Special Pay Authorized.--A member of a uniformed service who is

  entitled to basic pay may be paid special pay under this section at a   

  monthly rate not to exceed $300 while the member is on duty at a        

  location in the United States or outside the United States designated by

  the Secretary of Defense as a hardship duty location.''.                

     (b) Cross References and Regulations.--Such section is further       

  amended--                                                               

     (1) in subsection (b)--                                               



       (A) by inserting `` Exception for Certain Members Serving in Certain

   Locations.--'' after ``(b)''; and                                       

       (B) by striking out ``as foreign duty pay'' and inserting in lieu   

   thereof ``as hardship duty location pay'';                              

     (2) in subsection (c)--                                               



       (A) by inserting `` Exception for Members Receiving Career Sea      

   Pay.--'' after ``(c)''; and                                             

       (B) by striking out ``special pay under this section'' and inserting

   in lieu thereof ``hardship duty location pay under subsection (a)''; and

     (3) by adding at the end the following new subsection:                



     ``(d) Regulations.--The Secretary of Defense shall prescribe         

  regulations for the provision of hardship duty location pay under       

  subsection (a), including the specific monthly rates at which the       

  special pay will be available.''.                                       

     (c) Clerical Amendments.--(1) The heading of such section is amended 

  to read as follows:                                                     

          ``305. Special pay: hardship duty location pay''.                       



     (2) The table of sections at the beginning of chapter 5 of title 37, 

  United States Code, is amended by striking out the item relating to     

  section 305 and inserting in lieu thereof the following new item:       





      ``305. Special pay: hardship duty location pay.''.                      







     (d) Conforming Amendment.--Section 907(d) of title 37, United States 

  Code, is amended by striking out ``duty at certain places'' and         

  inserting in lieu thereof ``duty at a hardship duty location''.         

     (e) Transition.--Until such time as the Secretary of Defense         

  prescribes regulations regarding the provision of hardship duty location

  pay under section 305 of title 37, United States Code, as amended by    

  this section, the Secretary may continue to use the authority provided  

  by such section 305, as in effect on the day before the date of the     

  enactment of this Act, to provide special pay to enlisted members of the

  uniformed services on duty at certain places.                           



          SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.        



    Section 305a(d) of title 37, United States Code, is amended--         



       (1) in paragraph (1)(A), by striking out ``, ship-based staff, or   

   ship-based aviation unit'';                                             

     (2) in paragraph (1)(B), by striking out ``or ship-based staff'';     



       (3) by redesignating paragraphs (2) and (3) as paragraphs (3) and   

   (4), respectively; and                                                  

     (4) by inserting after paragraph (1) the following new paragraph:     



     ``(2) The Secretary concerned may designate duty performed by a      

  member while serving on a ship the primary mission of which is          

  accomplished either while under way or in port as `sea duty' for        

  purposes of this section, even though the duty is performed while the   

  member is permanently or temporarily assigned to a ship-based staff or  

  other unit not covered by paragraph (1).''.                             



          SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.          



     (a) Eligible Members.--Subsection (a)(1) of section 308b of title 37,

  United States Code, is amended by striking out ``ten years'' and        

  inserting in lieu thereof ``14 years''.                                 

     (b) Bonus Amounts; Payment.--Subsection (b) of such section is       

  amended to read as follows:                                             

     ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this  

  section may not exceed--                                                

       ``(A) $5,000, in the case of a member who reenlists or extends an   

   enlistment for a period of six years;                                   

       ``(B) $2,500, in the case of a member who, having never received a  

   bonus under this section, reenlists or extends an enlistment for a      

   period of three years; and                                              

       ``(C) $2,000, in the case of a member who, having received a bonus  

   under this section for a previous three-year reenlistment or extension  

   of an enlistment, reenlists or extends the enlistment for an additional 

   period of three years.                                                  

     ``(2) Any bonus payable under this section shall be disbursed in one 

  initial payment of an amount not to exceed one-half of the total amount 

  of the bonus and subsequent periodic partial payments of the balance of 

  the bonus. The Secretary concerned shall prescribe the amount of each   

  partial payment and the schedule for making the partial payments.''.    

     (c) Special Eligibility Requirements; Number of Individual           

  Bonuses.--Subsection (c) of such section is amended to read as follows: 

     ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--(1)

  To be eligible for a second bonus under this section in the amount      

  specified in subsection (b)(1)(C), a member must--                      

       ``(A) enter into the subsequent reenlistment or extension of an     

   enlistment for a period of three years not later than the date on which 

   the enlistment or extension for which the first bonus was paid would    

   expire; and                                                             

       ``(B) still satisfy the designated skill or unit requirements       

   required under subsection (a)(2).                                       

     ``(2) A member may not be paid more than one six-year bonus or two   

  three-year bonuses under this section.''.                               

     (d) Effect of Failure To Serve Satisfactorily.--Subsection (d) of    

  such section is amended to read as follows:                             

     ``(d) Repayment of Bonus.--A member who receives a bonus under this  

  section and who fails, during the period for which the bonus was paid,  

  to serve satisfactorily in the element of the Selected Reserve of the   

  Ready Reserve with respect to which the bonus was paid shall refund to  

  the United States an amount that bears the same ratio to the amount of  

  the bonus paid to the member as the period that the member failed to    

  serve satisfactorily bears to the total period for which the bonus was  

  paid.''.                                                                

    (e)  Clerical Amendments.--Such section is further amended--          



       (1) in subsection (a), by inserting `` Authority and Eligibility    

   Requirements.--'' after ``(a)'';                                        



       (2) in subsection (e), by inserting `` Regulations.--'' after       

   ``(e)''; and                                                            

       (3) in subsection (f), by inserting `` Termination of Authority.--''

   after ``(f)''.                                                          



                    SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS   

          FOR FORMER ENLISTED MEMBERS.                                            

     (a) Eligible Persons.--Subsection (a)(2) of section 308i of title 37,

  United States Code, is amended--                                        

       (1) in subparagraph (A), by striking out ``10 years'' and inserting 

   in lieu thereof ``14 years'';                                           

     (2) in subparagraph (C), by striking out ``and'';                     



     (3) by redesignating subparagraph (D) as subparagraph (E);            



       (4) in subparagraph (E) (as so redesignated), by inserting ``(except

   under this section)'' after ``bonus''; and                              

       (5) by inserting after subparagraph (C) the following new           

   subparagraph:                                                           

       ``(D) is projected to occupy a position as a member of the Selected 

   Reserve in a specialty in which--                                       

       ``(i) the person successfully served while a member on active duty; 

   and                                                                     

       ``(ii) the person attained a level of qualification while a member  

   on active duty commensurate with the grade and years of service of the  

   member; and''.                                                          

     (b) Bonus Amounts; Payment.--Subsection (b) of such section is       

  amended to read as follows:                                             

     ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus under this  

  section may not exceed--                                                

       ``(A) $5,000, in the case of a person who enlists for a period of   

   six years;                                                              

       ``(B) $2,500, in the case of a person who, having never received a  

   bonus under this section, enlists for a period of three years; and      

       ``(C) $2,000, in the case of a person who, having received a bonus  

   under this section for a previous three-year enlistment, reenlists or   

   extends the enlistment for an additional period of three years.         

     ``(2) Any bonus payable under this section shall be disbursed in one 

  initial payment of an amount not to exceed one-half of the total amount 

  of the bonus and subsequent periodic partial payments of the balance of 

  the bonus. The Secretary concerned shall prescribe the amount of each   

  partial payment and the schedule for making the partial payments.''.    

     (c) Special Eligibility Requirements; Number of Individual           

  Bonuses.--Subsection (c) of such section is amended to read as follows: 

     ``(c) Condition on Eligibility; Limitation on Number of Bonuses.--(1)

  To be eligible for a second bonus under this section in the amount      

  specified in subsection (b)(1)(C), a person must--                      

       ``(A) enter into a reenlistment or extension of an enlistment for a 

   period of three years not later than the date on which the enlistment   

   for which the first bonus was paid would expire; and                    

     ``(B) still satisfy the eligibility requirements under subsection (a).



     ``(2) A person may not be paid more than one six-year bonus or two   

  three-year bonuses under this section.                                  

    (d)  Reorganization of Section.--Such section is further amended--    



       (1) by redesignating subsections (e), (f), and (g) as paragraphs    

   (2), (3), and (4), respectively, of subsection (d); and                 

       (2) by redesignating subsections (h) and (i) as subsections (e) and 

   (f), respectively.                                                      

     (e) Conforming and Clerical Amendments.--Such section is further     

  amended--                                                               

       (1) in subsection (a), by inserting `` Authority and Eligibility    

   Requirements.--'' after ``(a)'';                                        

     (2) in subsection (d)--                                               



     (A) by inserting `` Repayment of Bonus.--(1)'' after ``(d)'';         





       (B) in paragraphs (2) and (4), as redesignated by subsection (d)(1),

   by striking out ``subsection (d)'' and inserting in lieu thereof        

   ``paragraph (1)''; and                                                  

     (C) in paragraph (3), as redesignated by subsection (d)(1)--          



       (i) by striking out ``subsection (h)'' and inserting in lieu thereof

   ``subsection (e)''; and                                                 

       (ii) by striking out ``subsection (d)'' and inserting in lieu       

   thereof ``paragraph (1)'';                                              

       (3) in subsection (e), as redesignated by subsection (d)(2), by     

   inserting `` Regulations.--'' after ``(e)''; and                        

       (4) in subsection (f), as redesignated by subsection (d)(2), by     

   inserting `` Termination of Authority.--'' after ``(f)''.               



                    SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE   

          COAST GUARD RESERVE.                                                    

    Section 308e of title 37, United States Code, is amended--            



       (1) in subsection (a), by striking out ``Under regulations          

   prescribed by the Secretary of Defense, the Secretary of a military     

   department'' and inserting in lieu thereof ``The Secretary concerned''; 

       (2) in subsection (b)(3), by striking out ``designated by the       

   Secretary of Defense for the purposes of this section'' and inserting in

   lieu thereof ``designated for purposes of this section in the           

   regulations prescribed under subsection (f)'';                          

       (3) in subsection (c)(3), by striking out ``regulations prescribed  

   by the Secretary of Defense'' and inserting in lieu thereof ``the       

   regulations prescribed under subsection (f)''; and                      

     (4) by adding at the end the following new subsections:               



     ``(f) This section shall be administered under regulations prescribed

  by the Secretary of Defense for the armed forces under the jurisdiction 

  of the Secretary of Defense and by the Secretary of Transportation for  

  the Coast Guard when the Coast Guard is not operating as a service in   

  the Navy.                                                               

     ``(g) The authority in subsection (a) does not apply to the Secretary

  of Commerce and the Secretary of Health and Human Services.''.          



                    SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR             

          NUCLEAR-QUALIFIED OFFICERS.                                             

     (a) Special Pay for Officers Extending Period of Active              

  Service.--Section 312(a) of title 37, United States Code, is amended by 

  striking out ``$12,000'' and inserting in lieu thereof ``$15,000''.     

     (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of title 37, 

  United States Code, is amended by striking out ``$8,000'' and inserting 

  in lieu thereof ``$10,000''.                                            

     (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title  

  37, United States Code, is amended--                                    

       (1) in subsection (a)(1), by striking out ``$10,000'' and inserting 

   in lieu thereof ``$12,000''; and                                        

       (2) in subsection (b)(1), by striking out ``$4,500'' and inserting  

   in lieu thereof ``$5,500''.                                             

     (d) Effective Date.--(1) The amendments made by this section shall   

  take effect as of October 1, 1997.                                      

     (2) The amendments made by subsections (a) and (b) shall apply with  

  respect to agreements accepted under sections 312(a) and 312b(a),       

  respectively, of title 37, United States Code, on or after October 1,   

  1997.                                                                   



                    SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR     

          ENLISTED MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED LOCATIONS        

          OVERSEAS.                                                               

     (a) Inclusion of Bonus Incentive.--(1) Section 314 of title 37,      

  United States Code, is amended to read as follows:                      

                    ``314. Special pay or bonus: qualified enlisted members       

          extending duty at designated locations overseas                         

     ``(a) Covered Members.--This section applies with respect to an      

  enlisted member of an armed force who--                                 

     ``(1) is entitled to basic pay;                                       





       ``(2) has a specialty that is designated by the Secretary concerned 

   for the purposes of this section;                                       

       ``(3) has completed a tour of duty (as defined in accordance with   

   regulations prescribed by the Secretary concerned) at a location outside

   the 48 contiguous States and the District of Columbia that is designated

   by the Secretary concerned for the purposes of this section; and        

       ``(4) at the end of that tour of duty executes an agreement to      

   extend that tour for a period of not less than one year.                

     ``(b) Special Pay or Bonus Authorized.--Upon the acceptance by the   

  Secretary concerned of the agreement providing for an extension of the  

  tour of duty of an enlisted member described in subsection (a), the     

  member is entitled, at the election of the Secretary concerned, to      

  either--                                                                

       ``(1) special pay in monthly installments in an amount prescribed by

   the Secretary, but not to exceed $80 per month; or                      

       ``(2) an annual bonus in an amount prescribed by the Secretary, but 

   not to exceed $2,000 per year.                                          

     ``(c) Selection and Payment of Special Pay or Bonus.--Not later than 

  the date on which the Secretary concerned accepts an agreement described

  in subsection (a)(4) providing for the extension of a member's tour of  

  duty, the Secretary concerned shall notify the member regarding whether 

  the member will receive special pay or a bonus under this section. The  

  payment rate for the special pay or bonus shall be fixed at the time of 

  the agreement and may not be changed during the period of the extended  

  tour of duty. The Secretary concerned may pay a bonus under this section

  either in a lump sum or installments.                                   

     ``(d) Repayment of Bonus.--(1) A member who, having entered into a   

  written agreement to extend a tour of duty for a period under subsection

  (a), receives a bonus payment under subsection (b)(2) for a 12-month    

  period covered by the agreement and ceases during that 12-month period  

  to perform the agreed tour of duty shall refund to the United States the

  unearned portion of the bonus. The unearned portion of the bonus is the 

  amount by which the amount of the bonus paid to the member exceeds the  

  amount determined by multiplying the amount of the bonus paid by the    

  percent determined by dividing 12 into the number of full months during 

  which the member performed the duty in the 12-month period.             

     ``(2) The Secretary concerned may waive the obligation of a member to

  reimburse the United States under paragraph (1) if the Secretary        

  determines that conditions and circumstances warrant the waiver.        

     ``(3) An obligation to repay the United States imposed under         

  paragraph (1) is for all purposes a debt owed to the United States.     

     ``(4) A discharge in bankruptcy under title 11 that is entered less  

  than five years after the termination of the agreement does not         

  discharge the member signing the agreement from a debt arising under the

  agreement or under paragraph (1). This paragraph applies to any case    

  commenced under title 11 on or after the date of the enactment of the   

  National Defense Authorization Act for Fiscal Year 1998.                

     ``(e) Effect of Rest and Recuperative Absence.--A member who elects  

  to receive one of the benefits specified in section 705(b) of title 10  

  as part of the extension of a tour of duty is not entitled to the       

  special pay authorized by subsection (b)(1) for the period of the       

  extension of duty for which the benefit under such section is           

  provided.''.                                                            

     (2) The item relating to section 314 in the table of sections at the 

  beginning of chapter 5 of such title is amended to read as follows:     





            ``314. Special pay or bonus: qualified enlisted members extending 

      duty at designated locations overseas.''.                               





     (b) Application of Amendment.--Section 314 of title 37, United States

  Code, as amended by subsection (a), shall apply with respect to an      

  agreement to extend a tour of duty as provided in such section executed 

  on or after October 1, 1997.                                            



          SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.            



     Section 427 of title 37, United States Code (as amended by section   

  603), is further amended in subsection (a)(1) by striking out ``$75''   

  and inserting in lieu thereof ``$100''.                                 



          SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.  



    Section 433(c) of title 37, United States Code, is amended--          



       (1) in the first sentence, by striking out ``and shall be'' and all 

   that follows through ``is performed''; and                              

       (2) by inserting after the first sentence the following new         

   sentence: ``The allowance may be paid to the member before, on, or after

   the date on which the muster duty is performed, but not later than 30   

   days after that date.''.                                                

           Subtitle C--Travel and Transportation Allowances                        





                    SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS 

          BEFORE APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.                     

     Section 406(h)(2)(C) of title 37, United States Code, is amended by  

  striking out the comma at the end of clause (iii) and all that follows  

  through ``title 10.'' and inserting in lieu thereof a period.           



          SEC. 632. DISLOCATION ALLOWANCE.                                        



     (a) In General.--Section 407 of title 37, United States Code, is     

  amended to read as follows:                                             

          ``407. Travel and transportation allowances: dislocation allowance      



     ``(a) Eligibility for Primary Dislocation Allowance.--(1) Under      

  regulations prescribed by the Secretary concerned, a member of a        

  uniformed service described in paragraph (2) is entitled to a primary   

  dislocation allowance at the rate determined under subsection (c) for   

  the member's pay grade and dependency status.                           

     ``(2) A member of the uniformed services referred to in paragraph (1)

  is any of the following:                                                

       ``(A) A member who makes a change of permanent station and the      

   member's dependents actually make an authorized move in connection with 

   the change, including a move by the dependents--                        

       ``(i) to join the member at the member's duty station after an      

   unaccompanied tour of duty when the member's next tour of duty is an    

   accompanied tour at the same station; and                               

       ``(ii) to a location designated by the member after an accompanied  

   tour of duty when the member's next tour of duty is an unaccompanied    

   tour at the same duty station.                                          

       ``(B) A member whose dependents actually move pursuant to section   

   405a(a), 406(e), 406(h), or 554 of this title.                          

       ``(C) A member whose dependents actually move from their place of   

   residence under circumstances described in section 406a of this title.  

     ``(D) A member who is without dependents and--                        



       ``(i) actually moves to a new permanent station where the member is 

   not assigned to quarters of the United States; or                       

       ``(ii) actually moves from a place of residence under circumstances 

   described in section 406a of this title.                                

       ``(E) A member who is ordered to move in connection with the closure

   or realignment of a military installation and, as a result, the member's

   dependents actually move or, in the case of a member without dependents,

   the member actually moves.                                              

     ``(3) If a primary dislocation allowance is paid under this          

  subsection to a member described in subparagraph (C) or (D)(ii) of      

  paragraph (2), the member is not entitled to another dislocation        

  allowance as a member described in subparagraph (A) or (E) of such      

  paragraph in connection with the same move.                             



     ``(b) Secondary Allowance Authorized Under Certain                   

  Circumstances.--(1) Under regulations prescribed by the Secretary       

  concerned, whenever a member is entitled to a primary dislocation       

  allowance under subsection (a) as a member described in paragraph (2)(C)

  or (2)(D)(ii) of such subsection, the member is also entitled to a      

  secondary dislocation allowance at the rate determined under subsection 

  (c) for the member's pay grade and dependency status if, subsequent to  

  the member or the member's dependents actually moving from their place  

  of residence under circumstances described in section 406a of this      

  title, the member or member's dependents complete that move to a new    

  location and then actually move from that new location to another       

  location also under circumstances described in section 406a of this     

  title.                                                                  

     ``(2) If a secondary dislocation allowance is paid under this        

  subsection, the member is not entitled to a dislocation allowance as a  

  member described in paragraph (2)(A) or (2)(E) of subsection (a) in     

  connection with those moves.                                            

     ``(c) Dislocation Allowance Rates.--(1) The amount of the dislocation

  allowance to be paid under this section to a member shall be based on   

  the member's pay grade and dependency status at the time the member     

  becomes entitled to the allowance.                                      

     ``(2) The initial rate for the dislocation allowance, for each pay   

  grade and dependency status, shall be equal to the rate in effect for   

  that pay grade and dependency status on December 31, 1997, as adjusted  

  by the average percentage increase in the rates of basic pay for        

  calendar year 1998. Effective on the same date that the monthly rates of

  basic pay for members are increased for a subsequent calendar year, the 

  Secretary of Defense shall adjust the rates for the dislocation         

  allowance for that calendar year by the percentage equal to the average 

  percentage increase in the rates of basic pay for that calendar year.   

     ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is not       

  entitled to more than one dislocation allowance under this section      

  during a fiscal year unless--                                           

       ``(A) the Secretary concerned finds that the exigencies of the      

   service require the member to make more than one change of permanent    

   station during the fiscal year;                                         

       ``(B) the member is ordered to a service school as a change of      

   permanent station;                                                      

       ``(C) the member's dependents are covered by section 405a(a),       

   406(e), 406(h), or 554 of this title; or                                

       ``(D) subparagraph (C) or (D)(ii) of subsection (a)(2) or subsection

   (b) apply with respect to the member or the member's dependents.        

     ``(2) This subsection does not apply in time of national emergency or

  in time of war.                                                         

     ``(e) First or Last Duty.--A member is not entitled to payment of a  

  dislocation allowance under this section when the member is ordered from

  the member's home to the member's first duty station or from the        

  member's last duty station to the member's home.                        

     ``(f) Rule of Construction.--For purposes of this section, a member  

  whose dependents may not make an authorized move in connection with a   

  change of permanent station is considered a member without dependents.  

     ``(g) Advance Payment.--A dislocation allowance payable under this   

  section may be paid in advance.''.                                      

     (b) Effective Date.--The amendment made by subsection (a) shall take 

  effect on January 1, 1998.                                              

           Subtitle D--Retired Pay, Survivor Benefits, and Related Matters         





                    SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN

          SURVIVOR BENEFIT PLAN.                                                  

     (a) Election To Discontinue Within One Year After Second Anniversary 

  of Commencement of Payment of Retired Pay.--(1) Subchapter II of chapter

  73 of title 10, United States Code, is amended by inserting after       

  section 1448 the following new section:                                 



                    ``1448a. Election to discontinue participation: one-year      

          opportunity after second anniversary of commencement of payment of      

          retired pay                                                             

     ``(a) Authority.--A participant in the Plan may, subject to the      

  provisions of this section, elect to discontinue participation in the   

  Plan at any time during the one-year period beginning on the second     

  anniversary of the date on which payment of retired pay to the          

  participant commences.                                                  

    ``(b)  Concurrence of Spouse.--                                       



       ``(1) Concurrence required.--A married participant may not (except  

   as provided in paragraph (2)) make an election under subsection (a)     

   without the concurrence of the participant's spouse.                    

       ``(2) Exceptions.--A participant may make such an election without  

   the concurrence of the participant's spouse by establishing to the      

   satisfaction of the Secretary concerned that one of the conditions      

   specified in section 1448(a)(3)(C) of this title exists.                

       ``(3) Form of concurrence.--The concurrence of a spouse under       

   paragraph (1) shall be made in such written form and shall contain such 

   information as may be required under regulations prescribed by the      

   Secretary of Defense.                                                   

     ``(c) Limitation on Election When Former Spouse Coverage in          

  Effect.--The limitation set forth in section 1450(f)(2) of this title   

  applies to an election to discontinue participation in the Plan under   

  subsection (a).                                                         

     ``(d) Withdrawal of Election To Discontinue.--Section 1448(b)(1)(D)  

  of this title applies to an election under subsection (a).              

     ``(e) Consequences of Discontinuation.--Section 1448(b)(1)(E) of this

  title applies to an election under subsection (a).                      

     ``(f) Notice to Affected Beneficiaries.--The Secretary concerned     

  shall notify any former spouse or other natural person previously       

  designated under section 1448(b) of this title of an election to        

  discontinue participation under subsection (a).                         

     ``(g) Effective Date of Election.--An election under subsection (a)  

  is effective as of the first day of the first calendar month following  

  the month in which the election is received by the Secretary concerned. 

     ``(h) Inapplicability of Irrevocability Provisions.--Paragraphs      

  (4)(B) and (5)(C) of section 1448(a) of this title do not apply to      

  prevent an election under subsection (a).''.                            

     (2) The table of sections at the beginning of such subchapter is     

  amended by inserting after the item relating to section 1448 the        

  following new item:                                                     





            ``1448a. Election to discontinue participation: one-year          

      opportunity after second anniversary of commencement of payment of      

      retired pay.''.                                                         





     (b) Transition Provision for Current Participants.--Notwithstanding  

  the limitation on the time for making an election under section 1448a of

  title 10, United States Code (as added by subsection (a)), that is      

  specified in subsection (a) of such section, a participant in the       

  Survivor Benefit Plan under subchapter II of chapter 73 of such title   

  may make an election in accordance with that section within one year    

  after the effective date of that section under subsection (c) if the    

  second anniversary of the commencement of payment of retired pay to the 

  participant precedes that effective date.                               

     (c) Effective Date.--Section 1448a of title 10, United States Code,  

  as added by subsection (a), shall take effect 180 days after the date of

  the enactment of this Act.                                              



                    SEC. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE   

          FROM FORMER SPOUSE TO SPOUSE MAY BE MADE.                               

     (a) Extension of Time for Change.--Section 1450(f)(1)(C) of title 10,

  United States Code, is amended by adding at the end the following new   

  sentence: ``Notwithstanding the preceding sentence, a change of election

  under this subsection to provide an annuity to a spouse instead of a    

  former spouse may (subject to paragraph (2)) be made at any time after  

  the person providing the annuity remarries without regard to the time   

  limitation in section 1448(a)(5)(B) of this title.''.                   

     (b) Applicability.--The amendment made by subsection (a) shall apply 

  with respect to marriages occurring before, on, or after the date of the

  enactment of this Act.                                                  



          SEC. 643. REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.              



     (a) Review Required.--The Secretary of Defense shall carry out a     

  comprehensive review (including a comparison) of--                      

       (1) the protections, benefits, and treatment afforded under Federal 

   law to members and former members of the uniformed services and former  

   spouses of such persons; and                                            

       (2) the protections, benefits, and treatment afforded under Federal 

   law to employees and former employees of the Government and former      

   spouses of such persons.                                                

     (b) Military Personnel Matters To Be Reviewed.--In the case of       

  members and former members of the uniformed services and former spouses 

  of such persons, the review under subsection (a) shall include the      

  following:                                                              

       (1) All provisions of law (principally those originally enacted in  

   the Uniformed Services Former Spouses' Protection Act (title X of Public

   Law 97 252)) that--                                                     

       (A) establish, provide for the enforcement of, or otherwise protect 

   interests of members and former members of the uniformed services and   

   former spouses of such persons in retired or retainer pay of members and

   former members; or                                                      

       (B) provide other benefits for members and former members of the    

   uniformed services and former spouses of such persons.                  

       (2) The experience of the uniformed services in administering those 

   provisions of law, including the adequacy and effectiveness of the legal

   assistance provided by the Department of Defense in matters related to  

   the Uniformed Services Former Spouses' Protection Act.                  

       (3) The experience of members and former members of the uniformed   

   services and former spouses of such persons in the administration of    

   those provisions of law.                                                

       (4) The experience of members and former members of the uniformed   

   services and former spouses of such persons in the application of those 

   provisions of law by State courts.                                      

       (5) The history of State statutes and State court interpretations of

   the Uniformed Services Former Spouses' Protection Act and other         

   provisions of Federal law described in paragraph (1)(A) and the extent  

   to which those interpretations follow those laws.                       

     (c) Civilian Personnel Matters To Be Reviewed.--In the case of former

  spouses of employees and former employees of the Government, the review 

  under subsection (a) shall include the following:                       

     (1) All provisions of law that--                                      



       (A) establish, provide for the enforcement of, or otherwise protect 

   interests of employees and former employees of the Government and former

   spouses of such persons in annuities of employees and former employees  

   under Federal employees' retirement systems; or                         

       (B) provide other benefits for employees and former employees of the

   Government and former spouses of such persons.                          

       (2) The experience of the Office of Personnel Management and other  

   agencies of the Government in administering those provisions of law.    

       (3) The experience of employees and former employees of the         

   Government and former spouses of such persons in the administration of  

   those provisions of law.                                                

       (4) The experience of employees and former employees of the         

   Government and former spouses of such persons in the application of     

   those provisions of law by State courts.                                

     (d) Sampling Authorized.--The Secretary may use sampling in carrying 

  out the review under this section.                                      



     (e) Report.--Not later than September 30, 1999, the Secretary shall  

  submit to the Committee on Armed Services of the Senate and the         

  Committee on National Security of the House of Representatives a report 

  on the results of the review under subsection (a). The report shall     

  include any recommendations for legislation that the Secretary considers

  appropriate.                                                            



          SEC. 644. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.             



     (a) Survivor Annuity.--(1) The Secretary concerned shall pay an      

  annuity to the qualified surviving spouse of each member of the         

  uniformed services who--                                                

       (A) died before March 21, 1974, and was entitled to retired or      

   retainer pay on the date of death; or                                   

       (B) was a member of a reserve component of the Armed Forces during  

   the period beginning on September 21, 1972, and ending on October 1,    

   1978, and at the time of his death would have been entitled to retired  

   pay under chapter 67 of title 10, United States Code (as in effect      

   before December 1, 1994), but for the fact that he was under 60 years of

   age.                                                                    

     (2) A qualified surviving spouse for purposes of this section is a   

  surviving spouse who has not remarried and who is not eligible for an   

  annuity under section 4 of Public Law 92 425 (10 U.S.C. 1448 note).     

     (b) Amount of Annuity.--(1) An annuity under this section shall be   

  paid at the rate of $165 per month, as adjusted from time to time under 

  paragraph (3).                                                          

     (2) An annuity paid to a surviving spouse under this section shall be

  reduced by the amount of any dependency and indemnity compensation (DIC)

  to which the surviving spouse is entitled under section 1311(a) of title

  38, United States Code.                                                 

     (3) Whenever after the date of the enactment of this Act retired or  

  retainer pay is increased under section 1401a(b)(2) of title 10, United 

  States Code, each annuity that is payable under this section shall be   

  increased at the same time and by the same total percent. The amount of 

  the increase shall be based on the amount of the monthly annuity payable

  before any reduction under this section.                                

     (c) Application Required.--No benefit shall be paid to any person    

  under this section unless an application for such benefit is filed with 

  the Secretary concerned by or on behalf of such person.                 

    (d)  Definitions.--For purposes of this section:                      



       (1) The terms ``uniformed services'' and ``Secretary concerned''    

   have the meanings given such terms in section 101 of title 37, United   

   States Code.                                                            

       (2) The term ``surviving spouse'' has the meaning given the terms   

   ``widow'' and ``widower'' in paragraphs (3) and (4) of section 1447 of  

   title 10, United States Code.                                           

     (e) Prospective Applicability.--(1) Annuities under this section     

  shall be paid for months beginning after the month in which this Act is 

  enacted.                                                                

     (2) No benefit shall accrue to any person by reason of the enactment 

  of this section for any period before the first month that begins after 

  the month in which this Act is enacted.                                 

     (f) Expiration of Authority.--The authority to pay annuities under   

  this section shall expire on September 30, 2001.                        



                    SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM    

          INCOME WIDOWS.                                                          

     (a) Payments To Be Made by Secretary of Veterans Affairs.--Section   

  653(d) of the National Defense Authorization Act, Fiscal Year 1989 (10  

  U.S.C. 1448 note) is amended--                                          

       (1) by inserting ``(1)'' before ``An annuity'' the first place it   

   appears; and                                                            

     (2) by adding at the end the following new paragraph:                 



     ``(2) Payment of annuities under this section shall be made by the   

  Secretary of Veterans Affairs. In making such payments, the Secretary   

  shall combine the payment under this section with the payment of any    

  amount due the same person under section 4 of Public Law 92 425 (10     

  U.S.C. 1448 note), as provided in subsection (e)(1) of that section. The

  Secretary                                                               



                    concerned shall transfer amounts for payments under this      

          section to the Secretary of Veterans Affairs in the same manner as is   

          provided under subsection (e)(2) of section 4 of Public Law 92 425 for  

          payments under that section.''.                                         

     (b) Combination With Other Benefits.--Section 4(e)(1) of Public Law  

  92 425 (10 U.S.C. 1448 note) is amended--                               

       (1) by inserting after the first sentence the following new         

   sentence: ``In making such payments, the Secretary shall combine with   

   the payment under this section payment of any amount due the same person

   under section 653(d) of the National Defense Authorization Act, Fiscal  

   Year 1989 (10 U.S.C. 1448 note).''; and                                 

       (2) by inserting ``(and, if applicable, under section 653(d) of the 

   National Defense Authorization Act, Fiscal Year 1989)'' after ``under   

   this section''.                                                         

     (c) Effective Date.--The amendments made by this section take effect 

  on the first day of the first month beginning after the date of the     

  enactment of this Act and shall apply with respect to payments of       

  benefits for months beginning on or after that date, except that the    

  Secretary of Veterans Affairs may provide, if necessary for             

  administrative implementation, that such amendments shall apply         

  beginning with a later month, not later than the first month beginning  

  more than 180 days after the date of the enactment of this Act.         



           Subtitle E--Other Matters                                               





                    SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN 

          CERTAIN HEALTH PROFESSIONS.                                             

     (a) Chapter 109 of title 10, United States Code, is amended by adding

  at the end the following new section:                                   

                    ``2173. Education loan repayment program: commissioned        

          officers in specified health professions                                

     ``(a) Authority To Repay Education Loans.--For the purpose of        

  maintaining adequate numbers of commissioned officers of the armed      

  forces on active duty who are qualified in the various health           

  professions, the Secretary of a military department may repay, in the   

  case of a person described in subsection (b), a loan that--             

       ``(1) was used by the person to finance education regarding a health

   profession; and                                                         

       ``(2) was obtained from a governmental entity, private financial    

   institution, school, or other authorized entity.                        

     ``(b) Eligible Persons.--To be eligible to obtain a loan repayment   

  under this section, a person must--                                     

     ``(1) satisfy one of the requirements specified in subsection (c);    



       ``(2) be fully qualified for, or hold, an appointment as a          

   commissioned officer in one of the health professions; and              

       ``(3) sign a written agreement to serve on active duty, or, if on   

   active duty, to remain on active duty for a period in addition to any   

   other incurred active duty obligation.                                  

     ``(c) Academic and Professional Requirements.--One of the following  

  academic requirements must be satisfied for purposes of determining the 

  eligibility of a person for a loan repayment under this section:        

       ``(1) The person is fully qualified in a health care profession that

   the Secretary of the military department concerned has determined to be 

   necessary to meet identified skill shortages.                           

       ``(2) The person is enrolled as a full-time student in the final    

   year of a course of study at an accredited educational institution      

   leading to a degree in a health profession other than medicine or       

   osteopathic medicine.                                                   

       ``(3) The person is enrolled in the final year of an approved       

   graduate program leading to specialty qualification in medicine,        

   dentistry, osteopathic medicine, or other health profession.            

     ``(d) Certain Persons Ineligible.--Participants of the Armed Forces  

  Health Professions Scholarship and Financial Assistance program under   

  subchapter I of chapter 105 of this title and students of the Uniformed 

  Services University of the Health Sciences established under section    

  2112 of this title are not eligible for the repayment of an education   

  loan under this section.                                                

     ``(e) Loan Repayments.--(1) Subject to the limits established by     

  paragraph (2), a loan repayment under this section may consist of       

  payment of the principal, interest, and related expenses of a loan      

  obtained by a person described in subsection (b) for--                  

       ``(A) all educational expenses, comparable to all educational       

   expenses recognized under section 2127(a) of this title for participants

   in the Armed Forces Health Professions Scholarship and Financial        

   Assistance program; and                                                 

       ``(B) reasonable living expenses, not to exceed expenses comparable 

   to the stipend paid under section 2121(d) of this title for participants

   in the Armed Forces Health Professions Scholarship and Financial        

   Assistance program.                                                     

     ``(2) For each year of obligated service that a person agrees to     

  serve in an agreement described in subsection (b)(3), the Secretary of  

  the military department concerned may pay not more than $22,000 on      

  behalf of the person. This maximum amount shall be increased annually by

  the Secretary of Defense effective October 1 of each year by the        

  percentage equal to the percent increase in the average annual cost of  

  educational expenses and stipend costs of a single scholarship under the

  Armed Forces Health Professions Scholarship and Financial Assistance    

  program. The total amount that may be repaid on behalf of any person may

  not exceed an amount determined on the basis of a four-year active duty 

  service obligation.                                                     

     ``(f) Active Duty Service Obligation.--(1) A person entering into an 

  agreement described in subsection (b)(3) incurs an active duty service  

  obligation. The length of this obligation shall be determined under     

  regulations prescribed by the Secretary of Defense, but those           

  regulations may not provide for a period of obligation of less than one 

  year for each maximum annual amount, or portion thereof, paid on behalf 

  of the person for qualified loans.                                      



     ``(2) For persons on active duty before entering into the agreement, 

  the active duty service obligation shall be served consecutively to any 

  other obligation incurred under the agreement.                          

     ``(g) Effect of Failure To Complete Obligation.--A commissioned      

  officer who is relieved of the officer's active duty obligation under   

  this section before the completion of that obligation may be given, with

  or without the consent of the officer, any alternative obligation       

  comparable to any of the alternative obligations authorized by section  

  2123(e) of this title for participants in the Armed Forces Health       

  Professions Scholarship and Financial Assistance program.               

     ``(h) Regulations.--The Secretary of Defense shall prescribe         

  regulations to carry out this section, including standards for qualified

  loans and authorized payees and other terms and conditions for the      

  making of loan repayments.''.                                           

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``2173. Education loan repayment program: commissioned officers in

      specified health professions.''.                                        



                    SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION

          PAY TO SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED SERVICES.          

     (a) Elimination of Limitations on Amount of Separation Pay.--Section 

  9 of the Coast and Geodetic Survey Commissioned Officers' Act of 1948   

  (33 U.S.C. 853h) is amended--                                           

       (1) in subsection (b)(1), by striking out ``, or $30,000, whichever 

   is less'';                                                              

       (2) in subsection (b)(2), by striking out ``, but in no event more  

   than $15,000''; and                                                     

       (3) in subsection (d), by striking out ``(1)'', and by striking out 

   paragraph (2).                                                          

     (b) Waiver of Recoupment of Amounts Withheld for Tax Purposes From   

  Certain Separation Pay.--Section 9(e)(2) of the Coast and Geodetic      

  Survey Commissioned Officers' Act of 1948 (33 U.S.C. 853h(e)(2)) is     

  amended in the first sentence by inserting before the period at the end 

  the following: ``, less the amount of Federal income tax withheld from  

  such pay (such withholding being at the flat withholding rate for       

  Federal income tax withholding, as in effect pursuant to regulations    

  prescribed under chapter 24 of the Internal Revenue Code of 1986)''.    

     (c) Effective Date and Application.--The amendments made by this     

  section shall take effect as of October 1, 1997, and shall apply to     

  payments of separation pay that are made after September 30, 1997.      



                    SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND   

          NOAA COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF ADOPTION EXPENSES.

     (a) Public Health Service.--Section 221(a) of the Public Health      

  Service Act (42 U.S.C. 213a(a)) is amended by adding at the end the     

  following new paragraph:                                                

     ``(16) Section 1052, Reimbursement for adoption expenses.''.          



     (b) National Oceanic and Atmospheric Administration.--Section 3(a) of

  the Act of August 10, 1956 (33 U.S.C. 857a(a)), is amended by adding at 

  the end the following new paragraph:                                    

     ``(16) Section 1052, Reimbursement for adoption expenses.''.          



     (c) Prospective Applicability.--The amendments made by this section  

  shall apply only to adoptions that are completed on or after the date of

  the enactment of this Act.                                              



                    SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES 

          TO WORLD WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN THE        

          PHILIPPINES.                                                            

     (a) In General.--The Secretary of the military department concerned  

  shall pay, upon request, to an individual described in subsection (b)   

  the amount determined with respect to that individual under subsection  

  (c).                                                                    



     (b) Covered Individuals.--A payment under subsection (a) shall be    

  made to any individual who as a member of the Armed Forces during World 

  War II--                                                                

       (1) was captured within the territory of the Philippines by Japanese

   forces;                                                                 

     (2) escaped from captivity; and                                       



       (3) served as a guerrilla fighter in the Philippines during the     

   period from January 1942 through February 1945.                         

     (c) Amount To Be Paid.--The amount of a payment under subsection (a) 

  shall be the amount of quarters and subsistence allowance which accrued 

  to an individual described in subsection (b) during the period specified

  in paragraph (3) of subsection (b) and which was not paid to that       

  individual. For the purposes of this subsection, the Secretary of War   

  shall be deemed to have determined that conditions in the Philippines   

  during the specified period justified payment under applicable          

  regulations of quarters and subsistence allowances at the maximum       

  special rate for duty where emergency conditions existed. The Secretary 

  shall apply interest compounded at the three-month Treasury bill rate.  

     (d) Payment to Survivors.--In the case of any individual described in

  subsection (b) who is deceased, payment under this section with respect 

  to that individual shall be made to that individual's nearest surviving 

  relative, as determined by the Secretary concerned.                     



                    SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE

          POVERTY LEVEL.                                                          

     (a) Study and Report.--(1) The Secretary of Defense shall conduct a  

  study of members of the Armed Forces and their families who subsist at, 

  near, or below the poverty level. The study shall include the following:

       (A) An analysis of potential solutions for ensuring that members of 

   the Armed Forces and their families do not have to subsist at, near, or 

   below the poverty level, including potential solutions involving changes

   in the system of allowances for members.                                

       (B) Identification of the military populations most likely to need  

   income support under Federal Government programs, including--           

       (i) the populations living in areas of the United States where      

   housing costs are notably high;                                         

     (ii) the populations living outside the United States; and            



     (iii) the number of persons in each identified population.            



       (C) The desirability of increasing rates of basic pay and allowances

   for members over a defined period of years by a range of percentages    

   that provides for higher percentage increases for lower ranking members 

   than for higher ranking members.                                        

     (2) Not later than 180 days after the date of the enactment of this  

  Act, the Secretary of Defense shall submit to Congress a report         

  containing the results of the study and such recommendations as the     

  Secretary considers to be appropriate.                                  

     (b) Implementation of Department of Defense Special Supplemental Food

  Program for Personnel Outside the United States.--(1) Subsection (b) of 

  section 1060a of title 10, United States Code, is amended to read as    

  follows:                                                                

     ``(b) Federal Payments and Commodities.--For the purpose of obtaining

  Federal payments and commodities in order to carry out the program      

  referred to in subsection (a), the Secretary of Agriculture shall make  

  available to the Secretary of Defense the same payments and commodities 

  as are made for the special supplemental food program in the United     

  States under section 17 of the Child Nutrition Act of 1966 (42 U.S.C.   

  1786). The Secretary of Defense may use funds available for the         

  Department of Defense to carry out the program under subsection (a).''. 

     (2) Not later than 90 days after the date of the enactment of this   

  Act, the Secretary of Defense shall submit to Congress a report         

  regarding the intentions of the Secretary regarding implementation of   

  the program authorized under section 1060a of title 10, United States   

  Code, including any plans to implement the program.                     



           TITLE VII--HEALTH CARE PROVISIONS                                       





                              SUBTITLE A--HEALTH CARE SERVICES                    



            Sec. 701. Expansion of retiree dental insurance plan to include   

      surviving spouse and child dependents of certain deceased members.      

      Sec. 702. Provision of prosthetic devices to covered beneficiaries.     



      Sec. 703. Study concerning the provision of comparative information.    



                                 SUBTITLE B--TRICARE PROGRAM                      



      Sec. 711. Addition of definition of TRICARE program to title 10.        



      Sec. 712. Plan for expansion of managed care option of TRICARE program. 



                     SUBTITLE C--UNIFORMED SERVICES TREATMENT FACILITIES          



            Sec. 721. Implementation of designated provider agreements for    

      Uniformed Services Treatment Facilities.                                

      Sec. 722. Continued acquisition of reduced-cost drugs.                  



      Sec. 723. Limitation on total payments.                                 



              SUBTITLE D--OTHER CHANGES TO EXISTING LAWS REGARDING HEALTH CARE    

                                   MANAGEMENT                                     

            Sec. 731. Improvements in health care coverage and access for     

      members assigned to certain duty locations far from sources of care.    

            Sec. 732. Waiver or reduction of copayments under overseas dental 

      program.                                                                

            Sec. 733. Premium collection requirements for medical and dental  

      insurance programs; extension of deadline for implementation of dental  

      insurance program for military retirees.                                

            Sec. 734. Dental insurance plan coverage for retirees of the      

      Public Health Service and NOAA.                                         

            Sec. 735. Consistency between CHAMPUS and Medicare in payment     

      rates for services.                                                     

            Sec. 736. Use of personal services contracts for provision of     

      health care services and legal protection for providers.                

            Sec. 737. Portability of State licenses for Department of Defense 

      health care professionals.                                              

            Sec. 738. Standard form and requirements regarding claims for     

      payment for services.                                                   

      Sec. 739. Chiropractic health care demonstration program.               



                                  SUBTITLE E--OTHER MATTERS                       



            Sec. 741. Continued admission of civilians as students in         

      physician assistant training program of Army Medical Department.        

            Sec. 742. Payment for emergency health care overseas for military 

      and civilian personnel of the On-Site Inspection Agency.                

            Sec. 743. Authority for agreement for use of medical resource     

      facility, Alamogordo, New Mexico.                                       

            Sec. 744. Disclosures of cautionary information on prescription   

      medications.                                                            

      Sec. 745. Competitive procurement of certain ophthalmic services.       



            Sec. 746. Comptroller General study of adequacy and effect of     

      maximum allowable charges for physicians under CHAMPUS.                 

            Sec. 747. Comptroller General study of Department of Defense      

      pharmacy programs.                                                      

            Sec. 748. Comptroller General study of Navy graduate medical      

      education program.                                                      

            Sec. 749. Study of expansion of pharmaceuticals by mail program to

      include additional Medicare-eligible covered beneficiaries.             

            Sec. 750. Comptroller General study of requirement for military   

      medical facilities in National Capital Region.                          

            Sec. 751. Report on policies and programs to promote healthy      

      lifestyles for members of the Armed Forces and their dependents.        

      Sec. 752. Sense of Congress regarding quality health care for retirees. 



                              SUBTITLE F--PERSIAN GULF ILLNESS                    



      Sec. 761. Definitions.                                                  



      Sec. 762. Plan for health care services for Persian Gulf veterans.      



            Sec. 763. Comptroller General study of revised disability criteria

      for physical evaluation boards.                                         

            Sec. 764. Medical care for certain reserves who served in         

      Southwest Asia during the Persian Gulf War.                             

            Sec. 765. Improved medical tracking system for members deployed   

      overseas in contingency or combat operations.                           

            Sec. 766. Notice of use of investigational new drugs or drugs     

      unapproved for their applied use.                                       

            Sec. 767. Report on plans to track location of members in a       

      theater of operations.                                                  

            Sec. 768. Sense of Congress regarding the deployment of           

      specialized units for detecting and monitoring chemical, biological, and

      similar hazards in a theater of operations.                             

            Sec. 769. Report on effectiveness of research efforts regarding   

      Gulf War illnesses.                                                     

      Sec. 770. Persian Gulf illness clinical trials program.                 



      Sec. 771. Sense of Congress concerning Gulf War illness.                





           Subtitle A--Health Care Services                                        



                    SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO       

          INCLUDE SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN DECEASED       

          MEMBERS.                                                                

    Section 1076c(b)(4) of title 10, United States Code, is amended--     



     (1) in subparagraph (A)--                                             



       (A) by striking out ``dies'' and inserting in lieu thereof ``died'';

   and                                                                     

     (B) by striking out ``or'' at the end of the subparagraph;            



       (2) by striking out the period at the end of subparagraph (B) and   

   inserting in lieu thereof ``; or''; and                                 

     (3) by adding at the end the following new subparagraph:              



       ``(C) who died while on active duty for a period of more than 30    

   days and whose eligible dependents are not eligible, or no longer       

   eligible, for dental benefits under section 1076a of this title pursuant

   to subsection (i)(2) of such section.''.                                



          SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.     



     (a) Inclusion Among Authorized Care.--Subsection (a) of section 1077 

  of title 10, United States Code, is amended by adding at the end the    

  following new paragraph:                                                

       ``(15) Prosthetic devices, as determined by the Secretary of Defense

   to be necessary because of significant conditions resulting from trauma,

   congenital anomalies, or disease.''.                                    

     (b) Conforming Amendment.--Subsection (b) of such section is amended 

  by striking out paragraph (2) and inserting in lieu thereof the         

  following new paragraph:                                                

       ``(2) Hearing aids, orthopedic footwear, and spectacles, except     

   that, outside of the United States and at stations inside the United    

   States where adequate civilian facilities are unavailable, such items   

   may be sold to dependents at cost to the United States.''.              



          SEC. 703. STUDY CONCERNING THE PROVISION OF COMPARATIVE INFORMATION.    



     (a) Study.--The Secretary of Defense shall conduct a study concerning

  the provision of the information described in subsection (b) to         

  beneficiaries under the TRICARE program established under the authority 

  of chapter 55 of title 10, United States Code, and prepare and submit to

  Congress a report concerning such study.                                

     (b) Provision of Comparative Information.--Information described in  

  this subsection, with respect to a managed care entity that contracts   

  with the Secretary of Defense to provide medical assistance under the   

  program described in subsection (a), shall include the following:       

     (1) The benefits covered by the entity involved, including--          





       (A) covered items and services beyond those provided under a        

   traditional fee-for-service program;                                    

     (B) any beneficiary cost sharing; and                                 



     (C) any maximum limitations on out-of-pocket expenses.                



     (2) The net monthly premium, if any, under the entity.                



     (3) The service area of the entity.                                   



       (4) To the extent available, quality and performance indicators for 

   the benefits under the entity (and how they compare to such indicators  

   under the traditional fee-for-service programs in the area involved),   

   including--                                                             

       (A) disenrollment rates for enrollees electing to receive benefits  

   through the entity for the previous two years (excluding disenrollment  

   due to death or moving outside the service area of the entity);         

     (B) information on enrollee satisfaction;                             



     (C) information on health process and outcomes;                       



     (D) grievance procedures;                                             



       (E) the extent to which an enrollee may select the health care      

   provider of their choice, including health care providers within the    

   network of the entity and out-of-network health care providers (if the  

   entity covers out-of-network items and services); and                   

       (F) an indication of enrollee exposure to balance billing and the   

   restrictions on coverage of items and services provided to such enrollee

   by an out-of-network health care provider.                              

       (5) Whether the entity offers optional supplemental benefits and the

   terms and conditions (including premiums) for such coverage.            

       (6) An overall summary description as to the method of compensation 

   of participating physicians.                                            



           Subtitle B--Tricare Program                                             



          SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.        



     Section 1072 of title 10, United States Code, is amended by adding at

  the end the following new paragraph:                                    

       ``(7) The term `TRICARE program' means the managed health care      

   program that is established by the Department of Defense under the      

   authority of this chapter, principally section 1097 of this title, and  

   includes the competitive selection of contractors to financially        

   underwrite the delivery of health care services under the Civilian      

   Health and Medical Program of the Uniformed Services.''.                



          SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM. 



     (a) Plan for Expansion of TRICARE Prime.--The Secretary of Defense   

  shall prepare a plan for the expansion of the managed care option of the

  TRICARE Program, known as TRICARE Prime, into areas of the United States

  located outside of the catchment areas of medical treatment facilities  

  of the uniformed services, but in which the managed care option is a    

  cost-effective alternative because of--                                 

       (1) the significant number of members of the uniformed services and 

   covered beneficiaries under chapter 55 of title 10, United States Code  

   (including retired members of the Armed Forces and their dependents),   

   who reside in the areas; and                                            

       (2) the presence in the areas of sufficient nonmilitary health care 

   provider networks.                                                      

     (b) Alternatives.--As an alternative to expansion of TRICARE Prime to

  areas of the United States in which there are few or no nonmilitary     

  health care provider networks, the Secretary shall include in the plan  

  required under subsection (a) an evaluation of the feasibility and      

  cost-effectiveness of providing a member of the Armed Forces on active  

  duty who is stationed in such an area, or whose dependents reside in    

  such an area, with one or both of the following:                        



       (1) A monetary stipend to assist the member in obtaining health care

   services for the member or the member's dependents.                     

       (2) A reduction in the cost-sharing requirements applicable to the  

   TRICARE program options otherwise available to the member to match the  

   reduced cost-sharing responsibilities of the managed care option of the 

   TRICARE program.                                                        

     (c) Submission of Plan.--Not later than March 1, 1998, the Secretary 

  shall submit to Congress the plan required under subsection (a).        



           Subtitle C--Uniformed Services Treatment Facilities                     



                    SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR

          UNIFORMED SERVICES TREATMENT FACILITIES.                                

     (a) Commencement of Health Care Services Under Agreement.--Subsection

  (c) of section 722 of the National Defense Authorization Act for Fiscal 

  Year 1997 (Public Law 104 201, 10 U.S.C. 1073 note) is amended--        

       (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and

   (B);                                                                    

     (2) by inserting ``(1)'' before ``Unless''; and                       



     (3) by adding at the end the following new paragraph:                 



     ``(2) The Secretary may modify the effective date established under  

  paragraph (1) for an agreement to permit a transition period of not more

  than six months between the date on which the agreement is executed by  

  the parties and the date on which the designated provider commences the 

  delivery of health care services under the agreement.''.                

     (b) Temporary Continuation of Existing Participation                 

  Agreements.--Subsection (d) of such section is amended by inserting     

  before the period at the end the following: ``, including any           

  transitional period provided by the Secretary under paragraph (2) of    

  such subsection''.                                                      



          SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.                  



     Section 722 of the National Defense Authorization Act for Fiscal Year

  1997 (Public Law 104 201; 10 U.S.C. 1073 note) is amended by adding at  

  the end the following new subsection:                                   

     ``(g) Continued Acquisition of Reduced-Cost Drugs.--A designated     

  provider shall be treated as part of the Department of Defense for      

  purposes of section 8126 of title 38, United States Code, in connection 

  with the provision by the designated provider of health care services to

  covered beneficiaries pursuant to the participation agreement of the    

  designated provider under section 718(c) of the National Defense        

  Authorization Act for Fiscal Year 1991 (Public Law 101 510; 42 U.S.C.   

  248c note) or pursuant to the agreement entered into under subsection   

  (b).''.                                                                 



          SEC. 723. LIMITATION ON TOTAL PAYMENTS.                                 



     Section 726(b) of the National Defense Authorization Act for Fiscal  

  Year 1997 (Public Law 104 201; 10 U.S.C. 1073 note) is amended by adding

  at the end the following new sentence: ``In establishing the ceiling    

  rate for enrollees with the designated providers who are also eligible  

  for the Civilian Health and Medical Program of the Uniformed Services,  

  the Secretary of Defense shall take into account the health status of   

  the enrollees.''.                                                       



                      Subtitle D--Other Changes to Existing Laws Regarding Health  

           Care Management                                                         

                    SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR 

          MEMBERS ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES OF CARE.    

     (a) Supplemental Care Program.--(1) Section 1074(c) of title 10,     

  United States Code, is amended--                                        

     (A) by inserting ``(1)'' after ``(c)''; and                           



     (B) by adding at the end the following new paragraphs:                





     ``(2)(A) Subject to such exceptions as the Secretary of Defense      

  considers necessary, coverage for medical care for members of the armed 

  forces under this subsection, and standards with respect to timely      

  access to such care, shall be comparable to coverage for medical care   

  and standards for timely access to such care under the managed care     

  option of the TRICARE program known as TRICARE Prime.                   

     ``(B) The Secretary of Defense shall enter into arrangements with    

  contractors under the TRICARE program or with other appropriate         

  contractors for the timely and efficient processing of claims under this

  subsection.                                                             

     ``(3)(A) The Secretary of Defense may not require a member of the    

  armed forces described in subparagraph (B) to receive routine primary   

  medical care at a military medical treatment facility.                  

     ``(B) A member referred to in subparagraph (A) is a member of the    

  armed forces on active duty who is entitled to medical care under this  

  subsection and who--                                                    

     ``(i) receives a duty assignment described in subparagraph (C); and   



       ``(ii) pursuant to the assignment of such duty, resides at a        

   location that is more than 50 miles, or approximately one hour of       

   driving time, from the nearest military medical treatment facility      

   adequate to provide the needed care.                                    

     ``(C) A duty assignment referred to in subparagraph (B) means any of 

  the following:                                                          

     ``(i) Permanent duty as a recruiter.                                  



       ``(ii) Permanent duty at an educational institution to instruct,    

   administer a program of instruction, or provide administrative services 

   in support of a program of instruction for the Reserve Officers'        

   Training Corps.                                                         

       ``(iii) Permanent duty as a full-time adviser to a unit of a reserve

   component.                                                              

       ``(iv) Any other permanent duty designated by the Secretary         

   concerned for purposes of this paragraph.''.                            

     (2) The amendments made by paragraph (1) shall apply with respect to 

  coverage of medical care for, and the provision of such care to, a      

  member of the Armed Forces under section 1074(c) of title 10, United    

  States Code, on and after the later of the following:                   

     (A) April 1, 1998.                                                    



       (B) The date on which the TRICARE program is in place in the service

   area of the member.                                                     

     (b) Temporary Authority for Managed Care Expansion to Members on     

  Active Duty at Certain Remote Locations.--(1) A member of the Armed     

  Forces described in subsection (c) is entitled to receive care under the

  Civilian Health and Medical Program of the Uniformed Services. In       

  connection with such care, the Secretary of Defense shall waive the     

  obligation of the member to pay a deductible, copayment, or annual fee  

  that would otherwise be applicable under that program for care provided 

  to the members under the program.                                       

     (2) A member who is entitled under paragraph (1) to receive health   

  care services under CHAMPUS shall receive such care from a network      

  provider under the TRICARE program if such a provider is available in   

  the service area of the member.                                         

     (3) Paragraph (1) shall take effect on the date of the enactment of  

  this Act and shall expire with respect to a member upon the later of the

  following:                                                              

       (A) The date that is one year after the date of the enactment of    

   this Act.                                                               

       (B) The date on which the amendments made by subsection (a) apply   

   with respect to the coverage of medical care for, and provision of such 

   care to, the member.                                                    

     (c) Eligible Members.--A member referred to in subsection (b) is a   

  member of the Armed Forces on active duty who--                         

     (1) receives a duty assignment described in subsection (d); and       



       (2) pursuant to the assignment of such duty, resides at a location  

   that is more than 50 miles, or approximately one hour of driving time,  

   from--                                                                  



       (A) the nearest health care facility of the uniformed services      

   adequate to provide the needed care under chapter 55 of title 10, United

   States Code; and                                                        

       (B) the nearest source of the needed care that is available to the  

   member under the TRICARE Prime plan.                                    

     (d) Duty Assignments Covered.--A duty assignment referred to in      

  subsection (c)(1) means any of the following:                           

     (1) Permanent duty as a recruiter.                                    



       (2) Permanent duty at an educational institution to instruct,       

   administer a program of instruction, or provide administrative services 

   in support of a program of instruction for the Reserve Officers'        

   Training Corps.                                                         

       (3) Permanent duty as a full-time adviser to a unit of a reserve    

   component of the Armed Forces.                                          

       (4) Any other permanent duty designated by the Secretary concerned  

   for purposes of this subsection.                                        

     (e) Payment of Costs.--Deductibles, copayments, and annual fees not  

  payable by a member by reason of a waiver granted under the regulations 

  prescribed pursuant to subsection (b) shall be paid out of funds        

  available to the Department of Defense for the Defense Health Program.  

    (f)  Definitions.--In this section:                                   



       (1) The term ``TRICARE program'' has the meaning given that term in 

   section 1072(7) of title 10, United States Code.                        

       (2) The term ``TRICARE Prime plan'' means a plan under the TRICARE  

   program that provides for the voluntary enrollment of persons for the   

   receipt of health care services to be furnished in a manner similar to  

   the manner in which health care services are furnished by health        

   maintenance organizations.                                              



                    SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS    

          DENTAL PROGRAM.                                                         

    Section 1076a(h) of title 10, United States Code, is amended--        



       (1) in the first sentence, by striking out ``Secretary'' and        

   inserting in lieu thereof ``Secretary of Defense''; and                 

       (2) by adding at the end the following new sentence: ``In the case  

   of such an overseas dental plan, the Secretary may waive or reduce the  

   copayments otherwise required by subsection (e) to the extent the       

   Secretary determines appropriate for the effective and efficient        

   operation of the plan.''.                                               



                    SEC. 733. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND     

          DENTAL INSURANCE PROGRAMS; EXTENSION OF DEADLINE FOR IMPLEMENTATION OF  

          DENTAL INSURANCE PROGRAM FOR MILITARY RETIREES.                         

     (a) Premium Collection for Selected Reserve Dental                   

  Insurance.--Paragraph (3) of section 1076b(b) of title 10, United States

  Code, is amended to read as follows:                                    

     ``(3) The Secretary of Defense shall establish procedures for the    

  collection of the member's share of the premium for coverage by the     

  dental insurance plan. To the maximum extent practicable, a member's    

  share shall be deducted and withheld from the basic pay payable to the  

  member for inactive duty training or basic pay payable to the member for

  active duty (if pay is available to the member). Such share shall be    

  used to pay the premium for coverage by the dental insurance plan.''.   

     (b) Premium Collection for Retiree Dental Insurance Plan.--Paragraph 

  (2) of section 1076c(c) of such title is amended to read as follows:    

     ``(2) The Secretary of Defense shall establish procedures for the    

  collection of the premiums charged for coverage by the dental insurance 

  plan. To the maximum extent practicable, the premiums payable by a      

  member entitled to retired pay shall be deducted and withheld from the  

  retired pay of the member (if pay is available to the member).''.       

     (c) Report to Congress.--Not later than March 1, 1998, the Secretary 

  of Defense shall submit to Congress a report on the premium collection  

  procedures established pursuant to paragraph (3) of section 1076b(b) of 

  title 10, United States Code, and paragraph (2) of section 1076c(c) of  

  such title. The report shall describe the extent to which premium       

  collections are made under such paragraphs through deductions and       

  withholding from pay.                                                   

     (d) Limitation on Implementation of Alternative Collection           

  Procedures.--The Secretary of Defense may not implement procedures for  

  collecting premiums under section 1076b(b)(3) of title 10, United States

  Code, or section 1076c(c)(2) of such title other than by deductions and 

  withholding from pay until 120 days after the date that the Secretary   

  submits a report to Congress describing the justifications for          

  implementing such alternative procedures.                               

     (e) Extension of Deadline for Implementation of Dental Insurance Plan

  for Military Retirees.--Section 703(b) of the National Defense          

  Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat.   

  2590) is amended by striking ``October 1, 1997'' and inserting ``April  

  1, 1998''.                                                              



                    SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE  

          PUBLIC HEALTH SERVICE AND NOAA.                                         

     (a) Eligibility.--(1) Subsection (a) of section 1076c of title 10,   

  United States Code, is amended by striking out ``military retirees'' and

  inserting in lieu thereof ``retirees of the uniformed services''.       

     (2) Subsection (b)(1) of such section is amended by striking out     

  ``Armed Forces'' and inserting in lieu thereof ``uniformed services''.  

     (b) Officials Responsible.--(1) Subsection (a) of such section (as   

  amended by subsection (a)) is further amended by inserting ``, in       

  consultation with the other administering Secretaries,'' after          

  ``Secretary of Defense''.                                               

     (2) Subsection (h) of such section is amended by striking out        

  ``Secretary of Transportation'' and inserting in lieu thereof ``other   

  administering Secretaries''.                                            



                    SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT 

          RATES FOR SERVICES.                                                     

     (a) Conformity Between Rates.--Section 1079(h) of title 10, United   

  States Code, is amended by striking out paragraphs (1), (2), and (3) and

  inserting in lieu thereof the following new paragraph:                  

     ``(1) Except as provided in paragraphs (2) and (3), payment for a    

  charge for services by an individual health care professional (or other 

  noninstitutional health care provider) for which a claim is submitted   

  under a plan contracted for under subsection (a) shall be equal to an   

  amount determined to be appropriate, to the extent practicable, in      

  accordance with the same reimbursement rules as apply to payments for   

  similar services under title XVIII of the Social Security Act (42 U.S.C.

  1395 et seq.). The Secretary of Defense shall determine the appropriate 

  payment amount under this paragraph in consultation with the other      

  administering Secretaries.''.                                           

     (b) Reduced Rates Authorized.--Paragraph (5) of such section is      

  amended by adding at the end the following new sentence: ``With the     

  consent of the health care provider, the Secretary is also authorized to

  reduce the authorized payment for certain health care services below the

  amount otherwise required by the payment limitations under paragraph    

  (1).''.                                                                 

    (c)  Conforming Amendments.--Such section is further amended--        



       (1) in paragraph (5), by striking out ``paragraph (4), the          

   Secretary'' and inserting in lieu thereof ``paragraph (2), the Secretary

   of Defense''; and                                                       

       (2) by redesignating paragraphs (4), (5), and (6) as paragraphs (2),

   (3), and (4), respectively.                                             



                    SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF 

          HEALTH CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.                

     (a) Use of Contracts Outside Medical Treatment Facilities.--Section  

  1091(a) of title 10, United States Code, is amended--                   

     (1) by inserting ``(1)'' before ``The Secretary of Defense''; and     



     (2) by adding at the end the following new paragraph:                 



     ``(2) The Secretary of Defense, and the Secretary of Transportation  

  with respect to the Coast Guard when it is not operating as a service in

  the Navy, may also enter into personal services contracts to carry out  

  other health care responsibilities of the Secretary (such as the        

  provision of medical screening examinations at Military Entrance        

  Processing Stations) at locations outside medical treatment facilities, 

  as determined necessary pursuant to regulations prescribed by the       

  Secretary. The Secretary may not enter into a contract under this       

  paragraph after the end of the one-year period beginning on the date of 

  the enactment of this paragraph.''.                                     

    (b)  Defense of Suits.--Section 1089 of such title is amended--       



       (1) in subsection (a), by adding at the end the following new       

   sentence: ``This subsection shall also apply if the physician, dentist, 

   nurse, pharmacist, or paramedical or other supporting personnel (or the 

   estate of such person) involved is serving under a personal services    

   contract entered into under section 1091 of this title.''; and          

     (2) in subsection (f)--                                               



     (A) by inserting ``(1)'' after ``(f)''; and                           



     (B) by adding at the end the following new paragraph:                 



     ``(2) With respect to the Secretary of Defense and the Armed Forces  

  Retirement Home Board, the authority provided by paragraph (1) also     

  includes the authority to provide for reasonable attorney's fees for    

  persons described in subsection (a), as determined necessary pursuant to

  regulations prescribed by the head of the agency concerned.''.          

     (c) Report.--Not later than March 31, 1998, the Secretary of Defense 

  shall submit to Congress a report on the feasible alternative means for 

  performing the medical screening examinations that are routinely        

  performed at Military Entrance Processing Stations. The report shall    

  contain a discussion of the feasibility and cost of the use of--        

     (1) the TRICARE system for the performance of the examinations; and   



     (2) each other alternative identified in the report.                  





                    SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF     

          DEFENSE HEALTH CARE PROFESSIONALS.                                      

    Section 1094 of title 10, United States Code, is amended--            



     (1) by redesignating subsection (d) as subsection (e); and            



     (2) by inserting after subsection (c) the following new subsection:   



     ``(d)(1) Notwithstanding any law regarding the licensure of health   

  care providers, a health-care professional described in paragraph (2)   

  may practice the health profession or professions of the health-care    

  professional in any State, the District of Columbia, or a Commonwealth, 

  territory, or possession of the United States, regardless of whether the

  practice occurs in a health care facility of the Department of Defense, 

  a civilian facility affiliated with the Department of Defense, or any   

  other location authorized by the Secretary of Defense .                 

     ``(2) A health-care professional referred to in paragraph (1) is a   

  member of the armed forces who--                                        

       ``(A) has a current license to practice medicine, osteopathic       

   medicine, dentistry, or another health profession; and                  

       ``(B) is performing authorized duties for the Department of         

   Defense.''.                                                             



                    SEC. 738. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR 

          PAYMENT FOR SERVICES.                                                   

     (a) Clarification of Existing Requirements.--Section 1106 of title   

  10, United States Code, is amended to read as follows:                  



          ``1106. Submittal of claims: standard form; time limits                 



     ``(a) Standard Form.--The Secretary of Defense, after consultation   

  with the other administering Secretaries, shall prescribe by regulation 

  a standard form for the submission of claims for the payment of health  

  care services provided under this chapter.                              

     ``(b) Time for Submission.--A claim for payment for services provided

  under this chapter shall be submitted as provided in such regulations   

  not later than one year after the services are provided.''.             

     (b) Clerical Amendment.--The table of sections at the beginning of   

  chapter 55 of title 10, United States Code, is amended by striking out  

  the item relating to section 1106 and inserting in lieu thereof the     

  following new item:                                                     





      ``1106. Submittal of claims: standard form; time limits.''.             





          SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.               



     (a) Two-Year Extension.--Subsection (b) of section 731 of the        

  National Defense Authorization Act for Fiscal Year 1995 (Public Law 103 

  337; 10 U.S.C. 1092 note) is amended by striking out ``1997'' and       

  inserting in lieu thereof ``1999''.                                     

     (b) Expansion to at Least Three Additional Treatment                 

  Facilities.--Subsection (a)(2)(A) of such section is amended by striking

  out ``not less than 10'' and inserting in lieu thereof ``the National   

  Naval Medical Center, the Walter Reed Army Medical Center, and not less 

  than 11 other''.                                                        
    (c)  Reports.--Subsection (c) of such section is amended--            



     (1) by striking paragraph (3); and                                    



     (2) by adding at the end the following new paragraphs:                



     ``(3) Not later than January 30, 1998, the Secretary of Defense shall

  submit to the Committee on Armed Services of the Senate and the         

  Committee on National Security of the House of Representatives a report 

  that identifies the additional treatment facilities designated to       

  furnish chiropractic care under the program that were not so designated 

  before the report required by paragraph (1) was prepared, together with 

  the plan for the conduct of the program at the additional treatment     

  facilities.                                                             

     ``(4) Not later than May 1, 1998, the Secretary of Defense shall     

  modify the plan for evaluating the program submitted pursuant to        

  paragraph (2) in order to provide for the evaluation of the program at  

  all of the designated treatment facilities under the program, including 

  the treatment facilities referred to in paragraph (3).                  

     ``(5) Not later than May 1, 2000, the Secretary shall submit to the  

  committees referred to in paragraph (3) a final report in accordance    

  with the plan submitted pursuant to paragraph (2).''.                   



           Subtitle E--Other Matters                                               





                    SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN     

          PHYSICIAN ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL DEPARTMENT.        

     (a) Civilian Attendance.--(1) Chapter 407 of title 10, United States 

  Code, is amended by adding at the end the following new section:        

                    ``4416. Academy of Health Sciences: admission of civilians in 

          physician assistant training program                                    

     ``(a) In General.--The Secretary of the Army may, pursuant to an     

  agreement entered into with an accredited institution of higher         

  education--                                                             

       ``(1) permit students of the institution to attend the didactic     

   portion of the physician assistant training program conducted by the    

   Army Medical Department at the Academy of Health Sciences at Fort Sam   

   Houston, Texas; and                                                     

       ``(2) accept from the institution academic services to support the  

   physician assistant training program at the Academy.                    

     ``(b) Agreement for Exchange of Services.--An agreement entered into 

  with an institution of higher education under this section shall require

  the institution, in exchange for services provided under paragraph (1)  

  of subsection (a), to provide academic services described in paragraph  

  (2) of such subsection that the Secretary and authorized representatives

  of the institution consider appropriate.                                

     ``(c) Selection of Students.--In consultation with the authorized    

  representatives of the institution of higher education concerned, the   

  Secretary shall prescribe the qualifications and methods of selection   

  for students of the institution to receive instruction at the Academy   

  under this section. The qualifications shall be comparable to those     

  generally required for admission to the physician assistant training    

  program at the Academy.                                                 

     ``(d) Rules of Attendance.--Except as the Secretary determines       

  necessary, a student who receives instruction at the Academy under this 

  section shall be subject to the same regulations governing attendance,  

  discipline, discharge, and dismissal as apply to other persons attending

  the Academy.                                                            

    ``(e)  Limitations.--The Secretary shall ensure the following:        



       ``(1) That the Army Medical Department, in carrying out an agreement

   under this section, does not incur costs in excess of the costs that the

   department would incur to obtain, by means other than the agreement,    

   academic services that are comparable to those provided by the          

   institution pursuant to the agreement.                                  

       ``(2) That attendance of civilian students at the Academy under this

   section does not cause a decrease in the number of members of the armed 

   forces enrolled in the physician assistant training program at the      

   Academy.                                                                

     ``(f) Annual Report.--(1) Each year, the Secretary shall submit to   

  Congress a report on the exchange of services under this section during 

  the year. The report shall contain the following:                       

       ``(A) The number of civilian students who receive instruction at the

   Academy under this section.                                             

     ``(B) An assessment of the benefits derived by the United States.     





     ``(2) Reports are required under paragraph (1) only for years during 

  which an agreement is in effect under this section.''.                  

     (2) The table of sections at the beginning of such chapter is amended

  by adding at the end the following new item:                            





            ``4416. Academy of Health Sciences: admission of civilians in     

      physician assistant training program.''.                                





     (b) Effect on Existing Demonstration Program.--An agreement entered  

  into under the demonstration program for the admission of civilians as  

  physician assistant students at the Academy of Health Sciences, Fort Sam

  Houston, Texas, established pursuant to section 732 of the National     

  Defense Authorization Act for Fiscal Year 1995 (Public Law 103 337; 108 

  Stat. 2810) shall be treated as an agreement entered into under section 

  4416 of title 10, United States Code (as added by subsection (a)). The  

  agreement may be extended in such manner and for such period as the     

  parties to the agreement consider appropriate consistent with section   

  4416.                                                                   



                    SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR      

          MILITARY AND CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION AGENCY.       

     (a) Payment of Costs.--The Secretary of Defense may pay the costs of 

  any emergency health care that--                                        

       (1) is needed by a member of the Armed Forces, civilian employee of 

   the Department of Defense, or civilian employee of a contractor         

   operating under a contract with the Department of Defense while the     

   member or employee is performing temporary or permanent duty with the   

   On-Site Inspection Agency outside the United States; and                

       (2) is furnished to such person during fiscal year 1998 by a source 

   outside the United States.                                              

     (b) Funding.--Funds authorized to be appropriated for the expenses of

  the On-Site Inspection Agency for fiscal year 1998 by this Act shall be 

  available to cover payments for emergency health care provided under    

  subsection (a).                                                         



                    SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE 

          FACILITY, ALAMOGORDO, NEW MEXICO.                                       

     (a) Authority.--(1) The Secretary of the Air Force may enter into an 

  agreement with Gerald Champion Hospital, Alamogordo, New Mexico, under  

  which the Secretary may furnish health care services to eligible        

  individuals in a medical resource facility in Alamogordo, New Mexico,   

  that is constructed and equipped, in part, using funds provided by the  

  Secretary under the agreement.                                          

    (2) For purposes of this section:                                     



       (A) The term ``eligible individual'' means any individual eligible  

   for medical and dental care under chapter 55 of title 10, United States 

   Code, including any member of the uniformed services entitled to such   

   care under section 1074(a) of that title.                               

       (B) The terms ``medical resource facility'' and ``facility'' mean   

   the medical resource facility to be constructed and equipped pursuant to

   the agreement authorized by paragraph (1).                              

       (C) The term ``Hospital'' means Gerald Champion Hospital,           

   Alamogordo, New Mexico.                                                 

     (b) Content of Agreement.--Any agreement entered into under          

  subsection (a) shall specify, at a minimum, the following:              

       (1) The relationship between the Hospital and the Secretary of the  

   Air Force in the provision of health care services to eligible          

   individuals in the medical resource facility, including--               

       (A) whether or not the Secretary and the Hospital are to use and    

   administer the facility jointly or independently; and                   

       (B) under what circumstances the Hospital is to act as a provider of

   health care services under the managed care option of the TRICARE       

   program known as TRICARE Prime.                                         



       (2) Matters relating to the administration of the agreement,        

   including--                                                             

     (A) the duration of the agreement;                                    



       (B) the rights and obligations of the Secretary and the Hospital    

   under the agreement, including any contracting or grievance procedures  

   applicable under the agreement;                                         

       (C) the types of care to be provided to eligible individuals under  

   the agreement, including the cost to the Department of the Air Force of 

   providing the care to eligible individuals during the term of the       

   agreement;                                                              

       (D) the access of Air Force medical personnel to the facility under 

   the agreement;                                                          

       (E) the rights and responsibilities of the Secretary and the        

   Hospital upon termination of the agreement; and                         

       (F) any other matters jointly identified by the Secretary and the   

   Hospital.                                                               

       (3) The nature of the arrangement between the Secretary and the     

   Hospital with respect to the ownership of the facility and any property 

   under the agreement, including--                                        

     (A) the nature of that arrangement while the agreement is in force;   



       (B) the nature of that arrangement upon termination of the          

   agreement; and                                                          

       (C) any requirement for reimbursement of the Secretary by the       

   Hospital as a result of the arrangement upon termination of the         

   agreement.                                                              

       (4) The amount of the funds made available under subsection (c) that

   the Secretary will contribute for the construction and equipping of the 

   facility.                                                               

       (5) Any conditions or restrictions relating to the construction,    

   equipping, or use of the facility.                                      

     (c) Availability of Funds for Construction and Equipping of          

  Facility.--(1) Of the amount authorized to be appropriated pursuant to  

  section 301(4) for operation and maintenance for the Air Force, not more

  than $7,000,000 may be used by the Secretary of the Air Force to make a 

  contribution toward the construction and equipping of the medical       

  resource facility in the event that the Secretary enters into the       

  agreement authorized by subsection (a). Notwithstanding any other       

  provision of law, the Secretary may not use other sources of funds to   

  make a contribution toward the construction or equipping of the         

  facility.                                                               

     (2) Notwithstanding subsection (b)(3) regarding the ownership and    

  reimbursement issues to be addressed in the agreement authorized by     

  subsection (a), the Secretary may not contribute funds made available   

  under paragraph (1) toward the construction and equipping of the        

  facility unless the agreement requires, in exchange for the             

  contribution, that the Hospital provide health care services to eligible

  individuals without charge to the Secretary or at a reduced rate. The   

  value of the services provided by the Hospital shall be at least equal  

  to the amount of the contribution made by the Secretary, and the        

  Hospital shall complete the provision of services equal in value to the 

  Secretary's contribution within seven years after the facility becomes  

  operational. The provision of additional discounted services to be      

  provided by the Hospital shall be included in the agreement. The value  

  and types of services to be provided by the Hospital shall be negotiated

  in accordance with principles of resource-sharing agreements under the  

  TRICARE program.                                                        

     (d) Notice and Wait.--The Secretary of the Air Force may not enter   

  into the agreement authorized by subsection (a) until 90 days after the 

  Secretary of Defense submits to the congressional defense committees the

  report required by subsection (e).                                      

     (e) Report on Proposed Agreement.--The Secretary of Defense shall    

  submit to Congress a report containing an analysis of, and              

  recommendations regarding, the agreement proposed to be entered into    

  under subsection (a), in particular, the implications of the agreement  

  on regional health care costs and its effect on implementation of the   

  TRICARE program in the region. The report shall also include a copy of  

  the agreement, the results of a cost-benefit analysis conducted by the  

  Secretary of the Air Force with respect to the agreement, and such other

  information with respect to the agreement as the Secretary of Defense   

  and the Secretary of the Air Force considers appropriate. The           

  cost-benefit analysis shall consider the effects of the agreement on    

  operation and maintenance and military construction requirements at     

  Holloman Air Force Base, New Mexico.                                    

     (f) Subsequent Reports.--If the Secretary of the Air Force enters    

  into the agreement authorized by subsection (a), the Secretary shall    

  submit to Congress an annual report containing a revised cost-benefit   

  analysis of the consequences of the agreement as in effect during the   

  year covered by the report, including a full accounting of any cost     

  savings realized by the Department of the Air Force as a result of the  

  agreement. A report shall be submitted for each year in which the       

  agreement is in effect or until the Hospital provides the full value of 

  health care services required under subsection (c)(2), whichever occurs 

  first.                                                                  



                    SEC. 744. DISCLOSURES OF CAUTIONARY INFORMATION ON            

          PRESCRIPTION MEDICATIONS.                                               

     (a) Regulations Required.--Not later than 180 days after the date of 

  the enactment of this Act, the Secretary of Defense, in consultation    

  with the administering Secretaries referred to in section 1073 of title 

  10, United States Code, shall prescribe regulations to require each     

  source described in subsection (d) that dispenses a prescription        

  medication to a beneficiary under chapter 55 of such title to include   

  with the medication the written cautionary information required by      

  subsection (b).                                                         

     (b) Information To Be Disclosed.--Information required to be         

  disclosed about a medication under the regulations shall include        

  appropriate cautions about usage of the medication, including possible  

  side effects and potentially hazardous interactions with foods.         



     (c) Form of Information.--The regulations shall require that         

  information be furnished in a form that, to the maximum extent          

  practicable, is easily read and understood.                             

    (d)  Covered Sources.--The regulations shall apply to the following:  



       (1) Pharmacies and any other dispensers of prescription medications 

   in medical facilities of the uniformed services.                        

       (2) Sources of prescription medications under any mail order        

   pharmaceuticals program provided by any of the administering Secretaries

   under chapter 55 of title 10, United States Code.                       

       (3) Pharmacies paid under the Civilian Health and Medical Program of

   the Uniformed Services (including the TRICARE program).                 

       (4) Pharmacies, and any other pharmaceutical dispensers, of         

   designated providers referred to in section 721(5) of the National      

   Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 

   Stat. 2593; 10 U.S.C. 1073 note).                                       



          SEC. 745. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.       



     (a) Competitive Procurement Required.--Beginning not later than      

  October 1, 1998, the Secretary of Defense shall competitively procure   

  from private-sector sources, or other sources outside of the Department 

  of Defense, all ophthalmic services related to the provision of single  

  vision and multivision eyeware for members of the Armed Forces, retired 

  members, and certain covered beneficiaries under chapter 55 of title 10,

  United States Code, who would otherwise receive such ophthalmic services

  through the Department of Defense.                                      

     (b) Exception.--Subsection (a) shall not apply to the extent that the

  Secretary of Defense determines that the use of sources within the      

  Department of Defense to provide such ophthalmic services--             

       (1) is necessary to meet the readiness requirements of the Armed    

   Forces; or                                                              

     (2) is more cost effective.                                           



     (c) Completion of Existing Orders.--Subsection (a) shall not apply to

  orders for ophthalmic services received on or before September 30, 1998.



                    SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF 

          MAXIMUM ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.                 

     (a) Study Required.--The Comptroller General shall conduct a study   

  regarding the adequacy of the maximum allowable charges for physicians  

  established under the Civilian Health and Medical Program of the        

  Uniformed Services (CHAMPUS) and the effect of such charges on the      

  participation of physicians in CHAMPUS. The study shall include an      

  evaluation of the following:                                            

       (1) The methodology used by the Secretary of Defense to establish   

   maximum allowable charges for physicians under CHAMPUS, and whether such

   methodology conforms to the requirements of section 1079(h) of title 10,

   United States Code.                                                     

       (2) The differences between the established charges under CHAMPUS   

   and reimbursement rates for similar services under title XVIII of the   

   Social Security Act and other health care programs.                     

       (3) The basis for physician complaints that the CHAMPUS established 

   charges are too low.                                                    

       (4) The difficultly of CHAMPUS in ensuring physician compliance with

   the CHAMPUS established charges in the absence of legal mechanisms to   

   enforce compliance, and the effect of noncompliance on patient          

   out-of-pocket expenses.                                                 

       (5) The effect of the established charges under CHAMPUS on the      

   participation of physicians in CHAMPUS, and the extent and success of   

   Department of Defense efforts to increase physician participation in    

   areas with low participation rates.                                     



     (b) Submission of Report.--Not later than March 1, 1998, the         

  Comptroller General shall submit to Congress a report containing the    

  results of the study required by subsection (a).                        



                    SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE  

          PHARMACY PROGRAMS.                                                      

     (a) Study.--Not later than March 31, 1998, the Comptroller General   

  shall submit to Congress a study evaluating the pharmacy programs of the

  Department of Defense. The study shall examine the impact of such       

  pharmacy programs on the aggregate cost, quality, and accessibility of  

  health care provided to covered beneficiaries under chapter 55 of title 

  10, United States Code, and shall include an examination of the         

  following:                                                              

       (1) The merits and feasibility of establishing a uniform formulary  

   for military treatment facility pharmacies and civilian contractor      

   pharmacy benefit administrators.                                        

       (2) The reasons that military treatment facilities deny covered     

   beneficiaries access to pharmacy care and shift such beneficiaries to   

   other sources of pharmacy care.                                         

       (3) The merits and feasibility of using private sector cost control 

   mechanisms implemented by authorized civilian contractors in the        

   Department of Defense medical programs, and the existence of any        

   barriers to the use of such mechanisms, including factors that may      

   undermine the incentives of such contractors to optimize treatment      

   outcomes in managing the care of covered beneficiaries without exceeding

   budgeted resources.                                                     

       (4) The cost impacts, if any, of the use of commercial managed care 

   methods of furnishing pharmaceuticals to covered beneficiaries by       

   TRICARE program contractors instead of procuring pharmaceuticals at     

   discounted prices pursuant to section 8126 of title 38, United States   

   Code.                                                                   

       (5) The existence of options for increasing the discounts available 

   to TRICARE program contractors without undermining controls for         

   preventing diversion of items procured by the Department of Defense to  

   nonmilitary populations.                                                

     (b) Response to Study.--Not later than 90 days after the Comptroller 

  General submits to Congress the study required by subsection (a), the   

  Secretary of Defense shall submit to Congress a report on the           

  feasibility and advisability of implementing changes to the pharmacy    

  programs of the Department of Defense based on the findings and         

  conclusions of the study.                                               



                    SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL  

          EDUCATION PROGRAM.                                                      

     (a) Study Required.--The Comptroller General shall conduct a study to

  evaluate the validity of the recommendations made by the Medical        

  Education Policy Council of the Bureau of Medicine and Surgery of the   

  Navy regarding restructuring the graduate medical education program of  

  the Department of the Navy. The study shall specifically address the    

  Council's recommendations relating to residency training conducted at   

  Naval Medical Center, Portsmouth, Virginia, and National Naval Medical  

  Center, Bethesda, Maryland.                                             

     (b) Submission of Report.--Not later than March 1, 1998, the         

  Comptroller General shall submit to Congress and the Secretary of the   

  Navy a report containing the results of the study required by subsection

  (a).                                                                    

     (c) Moratorium on Restructuring.--Until the report required by       

  subsection (b) is submitted to Congress, the Secretary of the Navy may  

  not make any change in the types of residency programs conducted under  

  the Navy graduate medical education program or the locations at which   

  such residency programs are conducted or otherwise restructure the Navy 
  graduate medical education program.                                     



                    SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL       

          PROGRAM TO INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED BENEFICIARIES.  

     Not later than six months after the date of the enactment of this    

  Act, the Secretary of Defense shall submit to Congress a report         

  regarding the feasibility and advisability of expanding the category of 

  persons eligible to participate in the demonstration project for the    

  purchase of prescription pharmaceuticals by mail, as required by section

  702(a) of the National Defense Authorization Act for Fiscal Year 1993   

  (Public Law 102 484; 10 U.S.C. 1079 note), to include persons referred  

  to in subsection (c) of section 1086 of title 10, United States Code,   

  who are covered by subsection (d)(1) of such section and reside in the  

  United States outside of the catchment area of a medical treatment      

  facility of the uniformed services.                                     



                    SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR        

          MILITARY MEDICAL FACILITIES IN NATIONAL CAPITAL REGION.                 

     (a) Study Required.--The Comptroller General shall conduct a study to

  evaluate the requirements for Army, Navy, and Air Force medical         

  facilities in the National Capital Region (as defined in section        

  2674(f)(2) of title 10, United States Code). The study shall--          

       (1) specifically address requirements with respect to geography,    

   facilities, integrated residencies, and medical environments; and       

       (2) provide specific recommendations with respect to how medical and

   health care provided by these facilities may be better coordinated to   

   more efficiently serve, throughout the National Capital Region, members 

   of the Armed Forces on active duty and covered beneficiaries under      

   chapter 55 of title 10, United States Code.                             

     (b) Submission of Report.--Not later than six months after the date  

  of the enactment of this Act, the Comptroller General shall submit to   

  Congress and the Secretary of Defense a report containing the results of

  the study required by subsection (a).                                   



                    SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY  

          LIFESTYLES FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS.        

     (a) Report.--Not later than March 30, 1998, the Secretary of Defense 

  shall submit to the Committee on Armed Services of the Senate and the   

  Committee on National Security of the House of Representatives a report 

  on the effectiveness of the policies and programs of the Department of  

  Defense intended to promote healthy lifestyles for members of the Armed 

  Forces and their dependents.                                            

     (b) Policies and Programs To Be Assessed.--The report under          

  subsection (a) shall include an assessment of the effectiveness of the  

  following:                                                              

       (1) Programs intended to educate members of the Armed Forces and    

   their dependents about the potential health consequences of the use of  

   alcohol and tobacco.                                                    

       (2) Policies of the commissaries, post exchanges, and service clubs,

   and for entertainment activities of the Department of Defense, relating 

   to the sale and use of alcohol and tobacco.                             

       (3) Programs intended to provide support to members of the Armed    

   Forces and their dependents who choose to reduce or eliminate their use 

   of alcohol or tobacco.                                                  

       (4) Any other policies or programs intended to promote healthy      

   lifestyles for members of the Armed Forces and their dependents.        



          SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES. 



    (a)  Findings.--Congress makes the following findings:                



       (1) Many retired military personnel believe that they were promised 

   lifetime health care in exchange for 20 or more years of service.       

       (2) Military retirees are the only Federal Government personnel who 

   have been prevented from using their employer-provided health care at or

   after 65 years of age.                                                  

       (3) Military health care has become increasingly difficult to obtain

   for military retirees as the Department of Defense reduces its health   

   care infrastructure.                                                    

       (4) Military retirees deserve to have a health care program that is 

   at least comparable with that of retirees from civilian employment by   

   the Federal Government.                                                 

       (5) The availability of quality, lifetime health care is a critical 

   recruiting incentive for the Armed Forces.                              



       (6) Quality health care is a critical aspect of the quality of life 

   of the men and women serving in the Armed Forces.                       

    (b)  Sense of Congress.--It is the sense of Congress that--           



       (1) the United States has incurred a moral obligation to provide    

   health care to members and former members of the Armed Forces who are   

   entitled to retired or retainer pay (or its equivalent);                

       (2) it is, therefore, necessary to provide quality, affordable      

   health care to such retirees; and                                       

       (3) Congress and the President should take steps to address the     

   problems associated with the availability of health care for such       

   retirees within two years after the date of the enactment of this Act.  



           Subtitle F--Persian Gulf Illness                                        



          SEC. 761. DEFINITIONS.                                                  



    For purposes of this subtitle:                                        



       (1) The term ``Gulf War illness'' means any one of the complex of   

   illnesses and symptoms that might have been contracted by members of the

   Armed Forces as a result of service in the Southwest Asia theater of    

   operations during the Persian Gulf War.                                 

       (2) The term ``Persian Gulf War'' has the meaning given that term in

   section 101 of title 38, United States Code.                            

       (3) The term ``Persian Gulf veteran'' means an individual who served

   on active duty in the Armed Forces in the Southwest Asia theater of     

   operations during the Persian Gulf War.                                 

       (4) The term ``contingency operation'' has the meaning given that   

   term in section 101(a) of title 10, United States Code, and includes a  

   humanitarian operation, peacekeeping operation, or similar operation.   



          SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.      



     (a) Plan Required.--The Secretary of Defense and the Secretary of    

  Veterans Affairs, acting jointly, shall prepare a plan to provide       

  appropriate health care to Persian Gulf veterans (and dependents        

  eligible by law) who suffer from a Gulf War illness.                    

    (b)  Contents of Plan.--In preparing the plan, the Secretaries shall--



       (1) use the presumptions of service connection and illness specified

   in paragraphs (1) and (2) of section 721(d) of the National Defense     

   Authorization Act for Fiscal Year 1995 (Public Law 103 337; 10 U.S.C.   

   1074 note) to determine the Persian Gulf veterans (and dependents       

   eligible by law) who should be covered by the plan;                     

       (2) consider the need and methods available to provide health care  

   services to Persian Gulf veterans who are no longer on active duty in   

   the Armed Forces, such as Persian Gulf veterans who are members of the  

   reserve components and Persian Gulf veterans who have been separated    

   from the Armed Forces; and                                              

       (3) estimate the costs to the Government of providing full or       

   partial health care services under the plan to covered Persian Gulf     

   veterans (and covered dependents eligible by law).                      

     (c) Follow-up Treatment.--The plan required by subsection (a) shall  

  specifically address the measures to be used to monitor the quality,    

  appropriateness, and effectiveness of, and patient satisfaction with,   

  health care services provided to Persian Gulf veterans after their      

  initial medical examination as part of registration in the Persian Gulf 

  War Veterans Health Registry or the Comprehensive Clinical Evaluation   

  Program.                                                                

     (d) Submission of Plan.--Not later than March 1, 1998, the           

  Secretaries shall submit to Congress the plan required by subsection    

  (a).                                                                    



                    SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY     

          CRITERIA FOR PHYSICAL EVALUATION BOARDS.                                

     Not later than March 1, 1998, the Comptroller General shall submit to

  Congress a study evaluating the revisions made by the Secretary of      

  Defense (as required by section 721(e) of the National Defense          

  Authorization Act for Fiscal Year 1995 (Public Law 103 337; 10 U.S.C.   

  1074 note)) to the Physical Evaluation Board criteria used to set       

  disability ratings for members of the Armed Forces who are no longer    

  medically qualified for continuation on active duty so as to ensure     

  accurate disability ratings related to a diagnosis of a Gulf War        

  illness.                                                                



                    SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN     

          SOUTHWEST ASIA DURING THE PERSIAN GULF WAR.                             

     (a) In General.--Chapter 55 of title 10, United States Code, is      

  amended by inserting after section 1074d the following new section:     

                    ``1074e. Medical care: certain Reserves who served in         

          Southwest Asia during the Persian Gulf Conflict                         

     ``(a) Entitlement to Medical Care.--A member of the armed forces     

  described in subsection (b) is entitled to medical care for a qualifying

  Persian Gulf symptom or illness to the same extent and under the same   

  conditions (other than the requirement that the member be on active     

  duty) as a member of a uniformed service who is entitled to such care   

  under section 1074(a) of this title.                                    

     ``(b) Covered Members.--Subsection (a) applies to a member of a      

  reserve component who--                                                 

     ``(1) is a Persian Gulf veteran;                                      



     ``(2) has a qualifying Persian Gulf symptom or illness; and           



       ``(3) is not otherwise entitled to medical care for such symptom or 

   illness under this chapter and is not otherwise eligible for hospital   

   care and medical services for such symptom or illness under section 1710

   of title 38.                                                            

    ``(c)  Definitions.--In this section:                                 



       ``(1) The term `Persian Gulf veteran' means a member of the armed   

   forces who served on active duty in the Southwest Asia theater of       

   operations during the Persian Gulf Conflict.                            

       ``(2) The term `qualifying Persian Gulf symptom or illness' means,  

   with respect to a member described in subsection (b), a symptom or      

   illness--                                                               

       ``(A) that the member registered before September 1, 1997, in the   

   Comprehensive Clinical Evaluation Program of the Department of Defense  

   and that is presumed under section 721(d) of the National Defense       

   Authorization Act for Fiscal Year 1995 (10 U.S.C. 1074 note) to be a    

   result of service in the Southwest Asia theater of operations during the

   Persian Gulf Conflict; or                                               

       ``(B) that the member registered before September 1, 1997, in the   

   Persian Gulf War Veterans Health Registry maintained by the Department  

   of Veterans Affairs pursuant to section 702 of the Persian Gulf War     

   Veterans' Health Status Act (38 U.S.C. 527 note).''.                    

     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by inserting after the item relating to section 

  1074d the following new item:                                           





            ``1074e. Medical care: certain Reserves who served in Southwest   

      Asia during the Persian Gulf Conflict.''.                               



                    SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS        

          DEPLOYED OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.                  

     (a) System Required.--(1) Chapter 55 of title 10, United States Code,

  is amended by inserting after section 1074e (as added by section 764)   

  the following new section:                                              

          ``1074f. Medical tracking system for members deployed overseas          



     ``(a) System Required.--The Secretary of Defense shall establish a   

  system to assess the medical condition of members of the armed forces   

  (including members of the reserve components) who are deployed outside  

  the United States or its territories or possessions as part of a        

  contingency operation (including a humanitarian operation, peacekeeping 

  operation, or similar operation) or combat operation.                   

     ``(b) Elements of System.--The system described in subsection (a)    

  shall include the use of predeployment medical examinations and         

  postdeployment medical examinations (including an assessment of mental  

  health and the drawing of blood samples) to accurately record the       

  medical condition of members before their deployment and any changes in 

  their medical condition during the course of their deployment. The      

  postdeployment examination shall be conducted when the member is        

  redeployed or otherwise leaves an area in which the system is in        

  operation (or as soon as possible thereafter).                          

     ``(c) Recordkeeping.--The results of all medical examinations        

  conducted under the system, records of all health care services         

  (including immunizations) received by members described in subsection   

  (a) in anticipation of their deployment or during the course of their   

  deployment, and records of events occurring in the deployment area that 

  may affect the health of such members shall be retained and maintained  

  in a centralized location to improve future access to the records.      

     ``(d) Quality Assurance.--The Secretary of Defense shall establish a 

  quality assurance program to evaluate the success of the system in      

  ensuring that members described in subsection (a) receive predeployment 

  medical examinations and postdeployment medical examinations and that   

  the recordkeeping requirements with respect to the system are met.''.   

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 1074e (as added by      

  section 764) the following new item:                                    





      ``1074f. Medical tracking system for members deployed overseas.''.      







     (b) Report.--Not later than March 1, 1998, the Secretary of Defense  

  shall submit to Congress an analysis of the administrative implications 

  of establishing and administering the medical tracking system required  

  by section 1074f of title                                               



                    10, United States Code, as added by subsection (a). The report

          shall include, for fiscal year 1999 and the 5 successive fiscal years, a

          separate analysis and specification of the projected costs and          

          operational considerations for each of the following required aspects of

          the system:                                                             

     (1) Predeployment medical examinations.                               



     (2) Postdeployment medical examinations.                              



     (3) Recordkeeping.                                                    





                    SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS 

          UNAPPROVED FOR THEIR APPLIED USE.                                       

     (a) Notice Requirements.--Chapter 55 of title 10, United States Code,

  is amended by adding at the end the following new section:              

                    ``1107. Notice of use of an investigational new drug or a drug

          unapproved for its applied use                                          

     ``(a) Notice Required.--(1) Whenever the Secretary of Defense        

  requests or requires a member of the armed forces to receive an         

  investigational new drug or a drug unapproved for its applied use, the  

  Secretary shall provide the member with notice containing the           

  information specified in subsection (d).                                

     ``(2) The Secretary shall also ensure that health care providers who 

  administer an investigational new drug or a drug unapproved for its     

  applied use, or who are likely to treat members who receive such a drug,

  receive the information required to be provided under paragraphs (3) and

  (4) of subsection (d).                                                  

     ``(b) Time of Notice.--The notice required to be provided to a member

  under subsection (a)(1) shall be provided before the investigational new

  drug or drug unapproved for its applied use is first administered to the

  member, if practicable, but in no case later than 30 days after the drug

  is first administered to the member.                                    

     ``(c) Form of Notice.--The notice required under subsection (a)(1)   

  shall be provided in writing unless the Secretary of Defense determines 

  that the use of written notice is impractical because of the number of  

  members receiving the investigational new drug or drug unapproved for   

  its applied use, time constraints, or similar reasons. If the Secretary 

  provides notice under subsection (a)(1) in a form other than in writing,

  the Secretary shall submit to Congress a report describing the          

  notification method used and the reasons for the use of the alternative 

  method.                                                                 

     ``(d) Content of Notice.--The notice required under subsection (a)(1)

  shall include the following:                                            

       ``(1) Clear notice that the drug being administered is an           

   investigational new drug or a drug unapproved for its applied use.      

       ``(2) The reasons why the investigational new drug or drug          

   unapproved for its applied use is being administered.                   

       ``(3) Information regarding the possible side effects of the        

   investigational new drug or drug unapproved for its applied use,        

   including any known side effects possible as a result of the interaction

   of such drug with other drugs or treatments being administered to the   

   members receiving such drug.                                            

       ``(4) Such other information that, as a condition of authorizing the

   use of the investigational new drug or drug unapproved for its applied  

   use, the Secretary of Health and Human Services may require to be       

   disclosed.                                                              

     ``(e) Records of Use.--The Secretary of Defense shall ensure that the

  medical records of members accurately document--                        

       ``(1) the receipt by members of any investigational new drug or drug

   unapproved for its applied use; and                                     

     ``(2) the notice required by subsection (a)(1).                       



    ``(f)  Definitions.--In this section:                                 



       ``(1) The term `investigational new drug' means a drug covered by   

   section 505(i) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.   

   355(i)).                                                                

       ``(2) The term `drug unapproved for its applied use' means a drug   

   administered for a use not described in the approved labeling of the    

   drug under section 505 of the Federal Food, Drug, and Cosmetic Act (21  

   U.S.C. 355).''.                                                         



     (b) Clerical Amendment.--The table of sections at the beginning of   

  such chapter is amended by adding at the end the following new item:    





            ``1107. Notice of use of an investigational new drug or a drug    

      unapproved for its applied use.''.                                      



                    SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A   

          THEATER OF OPERATIONS.                                                  

     Not later than March 1, 1998, the Secretary of Defense shall submit  

  to Congress a report containing a plan for collecting and maintaining   

  information regarding the daily location of units of the Armed Forces,  

  and to the extent practicable individual members of such units, serving 

  in a theater of operations during a contingency operation or combat     

  operation.                                                              



                    SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF       

          SPECIALIZED UNITS FOR DETECTING AND MONITORING CHEMICAL, BIOLOGICAL, AND

          SIMILAR HAZARDS IN A THEATER OF OPERATIONS.                             

     It is the sense of Congress that the Secretary of Defense, in        

  conjunction with the Chairman of the Joint Chiefs of Staff, should take 

  such actions as are necessary to ensure that the units of the Armed     

  Forces deployed in the theater of operations for each contingency       

  operation or combat operation include specialized units with sufficient 

  capability (including personnel with the appropriate training and       

  expertise, and the appropriate equipment) to detect and monitor the     

  presence of chemical, biological, and similar hazards to which members  

  of the Armed Forces could be exposed in that theater during the         

  operation.                                                              



                    SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS         

          REGARDING GULF WAR ILLNESSES.                                           

     Not later than March 1, 1998, the Secretary of Defense shall submit  

  to Congress a report evaluating the effectiveness of medical research   

  initiatives regarding Gulf War illnesses. The report shall address the  

  following:                                                              

       (1) The type and effectiveness of previous research efforts,        

   including the activities undertaken pursuant to section 743 of the      

   National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 

   201; 10 U.S.C. 1074 note), section 722 of the National Defense          

   Authorization Act for Fiscal Year 1995 (Public Law 103 337; 10 U.S.C.   

   1074 note), and sections 270 and 271 of the National Defense            

   Authorization Act for Fiscal Year 1994 (Public Law 103 160; 107 Stat.   

   1613).                                                                  

       (2) Recommendations regarding additional research regarding Gulf War

   illnesses, including research regarding the nature and causes of Gulf   

   War illnesses and appropriate treatments for such illnesses.            

       (3) The adequacy of Federal funding and the need for additional     

   funding for medical research initiatives regarding Gulf War illnesses.  



          SEC. 770. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.                 



    (a)  Findings.--Congress finds the following:                         



       (1) There are many ongoing studies that investigate risk factors    

   which may be associated with the health problems experienced by Persian 

   Gulf veterans; however, there have been no studies that examine health  

   outcomes and the effectiveness of the treatment received by such        

   veterans.                                                               

       (2) The medical literature and testimony presented in hearings on   

   Gulf War illnesses indicate that there are therapies, such as cognitive 

   behavioral therapy, that have been effective in treating patients with  

   symptoms similar to those seen in many Persian Gulf veterans.           

     (b) Establishment of Program.--The Secretary of Defense and the      

  Secretary of Veterans Affairs, acting jointly, shall establish a program

  of cooperative clinical trials at multiple sites to assess the          

  effectiveness of protocols for treating Persian Gulf veterans who suffer

  from ill-defined or undiagnosed conditions. Such protocols shall include

  a multidisciplinary treatment model, of which cognitive behavioral      

  therapy is a component.                                                 

     (c) Funding.--Of the funds authorized to be appropriated in section  

  201(1) for research, development, test, and evaluation for the Army, the

  sum of $4,500,000 shall be available for program element 62787A (medical

  technology) in the budget of the Department of Defense for fiscal year  

  1998 to carry out the clinical trials program established pursuant to   

  subsection (b).                                                         



          SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.                



    (a)  Findings.--Congress makes the following findings:                



       (1) Americans served in the Persian Gulf Conflict of 1991 in defense

   of vital national security interests of the United States.              

       (2) It was known to United States intelligence and military         

   commanders that biological and chemical agents were in theater          

   throughout the conflict.                                                

     (3) An undetermined amount of these agents were released into theater.



       (4) A large number of United States military veterans and allied    

   veterans who served in the Southwest Asia theater of operations have    

   been stricken with a variety of severe illnesses.                       

       (5) Previous efforts to discern the causes of those illnesses have  

   been inadequate, and those illnesses are affecting the health of both   

   veterans and their families.                                            

     (b) Sense of Congress.--It is the sense of Congress that all         

  promising technology and treatments relating to Gulf War illnesses      

  should be fully explored and tested to facilitate treatment for members 

  of the Armed Forces and veterans who served the United States in the    

  Persian Gulf conflict and are stricken with unexplainable illness.      



                      TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND  

           RELATED MATTERS                                                         



           SUBTITLE A--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, 

                                 AND LIMITATIONS                                  

            Sec. 801. Expansion of authority to enter into contracts crossing 

      fiscal years to all severable service contracts not exceeding a year.   

            Sec. 802. Vesting of title in the United States under contracts   

      paid under progress payment arrangements or similar arrangements.       

      Sec. 803. Restriction on undefinitized contract actions.                



            Sec. 804. Limitation and report on payment of restructuring costs 

      under defense contracts.                                                

            Sec. 805. Increased price limitation on purchases of right-hand   

      drive vehicles.                                                         

      Sec. 806. Multiyear procurement contracts.                              



            Sec. 807. Audit of procurement of military clothing and           

      clothing-related items by military installations in the United States.  

            Sec. 808. Limitation on allowability of compensation for certain  

      contractor personnel.                                                   

      Sec. 809. Elimination of certification requirement for grants.          



      Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts. 



            Sec. 811. Item-by-item and country-by-country waivers of domestic 

      source limitations.                                                     

                         SUBTITLE B--ACQUISITION ASSISTANCE PROGRAMS              



      Sec. 821. One-year extension of pilot mentor-protege program.           



            Sec. 822. Test program for negotiation of comprehensive           

      subcontracting plans.                                                   

                            SUBTITLE C--ADMINISTRATIVE PROVISIONS                 



            Sec. 831. Retention of expired funds during the pendency of       

      contract litigation.                                                    

      Sec. 832. Protection of certain information from disclosure.            



      Sec. 833. Unit cost reports.                                            



            Sec. 834. Plan for providing contracting information to general   

      public and small businesses.                                            

            Sec. 835. Two-year extension of crediting of certain purchases    

      toward meeting subcontracting goals.                                    

                                  SUBTITLE D--OTHER MATTERS                       



      Sec. 841. Repeal of certain acquisition requirements and reports.       



            Sec. 842. Use of major range and test facility installations by   

      commercial entities.                                                    

            Sec. 843. Requirement to develop and maintain list of firms not   

      eligible for defense contracts.                                         

            Sec. 844. Sense of Congress regarding allowability of costs of    

      employee stock ownership plans.                                         

            Sec. 845. Expansion of personnel eligible to participate in       

      demonstration project relating to acquisition workforce.                

            Sec. 846. Time for submission of annual report relating to Buy    

      American Act.                                                           

            Sec. 847. Repeal of requirement for contractor guarantees on major

      weapon systems.                                                         

      Sec. 848. Requirements relating to micro-purchases.                     



      Sec. 849. Promotion rate for officers in an acquisition corps.          



      Sec. 850. Use of electronic commerce in Federal procurement.            



            Sec. 851. Conformance of policy on performance based management of

      civilian acquisition programs with policy established for defense       

      acquisition programs.                                                   

            Sec. 852. Modification of process requirements for the            

      solutions-based contracting pilot program.                              

            Sec. 853. Guidance and standards for defense acquisition workforce

      training requirements.                                                  

            Sec. 854. Study and report to Congress assessing dependence on    

      foreign sources for resistors and capacitors.                           

            Sec. 855. Department of Defense and Federal Prison Industries     

      joint study.                                                            





                      Subtitle A--Amendments to General Contracting Authorities,   

           Procedures, and Limitations                                             





                    SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS      

          CROSSING FISCAL YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT EXCEEDING A

          YEAR.                                                                   

     (a) Expanded Authority.--Section 2410a of title 10, United States    

  Code, is amended to read as follows:                                    

          ``2410a. Severable service contracts for periods crossing fiscal years  



     ``(a) Authority.--The Secretary of Defense, the Secretary of a       

  military department, or the Secretary of Transportation with respect to 

  the Coast Guard when it is not operating as a service in the Navy, may  

  enter into a contract for procurement of severable services for a period

  that begins in one fiscal year and ends in the next fiscal year if      

  (without regard to any option to extend the period of the contract) the 

  contract period does not exceed one year.                               

     ``(b) Obligation of Funds.--Funds made available for a fiscal year   

  may be obligated for the total amount of a contract entered into under  

  the authority of subsection (a).''.                                     

     (b) Clerical Amendment.--The item relating to such section in the    

  table of sections at the beginning of chapter 141 of such title is      

  amended to read as follows:                                             





            ``2410a. Severable service contracts for periods crossing fiscal  

      years.''.                                                               



                    SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER         

          CONTRACTS PAID UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR           

          ARRANGEMENTS.                                                           

    Section 2307 of title 10, United States Code, is amended--            



     (1) by redesignating subsection (h) as subsection (i);  and           



       (2) by inserting after subsection (g) the following new subsection  

   (h):                                                                    

     ``(h) Vesting of Title in the United States.--If a contract paid by a

  method authorized under subsection (a)(1) provides for title to property

  to vest in the United States, the title to the property shall vest in   

  accordance with the terms of the contract, regardless of any security   

  interest in the property that is asserted before or after the contract  

  is entered into.''.                                                     

          SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.                



     (a) Applicability of Waiver Authority to Humanitarian or Peacekeeping

  Operations.--Section 2326(b)(4) of title 10, United States Code, is     

  amended to read as follows:                                             

     ``(4) The head of an agency may waive the provisions of this         

  subsection with respect to a contract of that agency if that head of an 

  agency determines that the waiver is necessary in order to support any  

  of the following operations:                                            

     ``(A) A contingency operation.                                        



     ``(B) A humanitarian or peacekeeping operation.''.                    



     (b) Humanitarian or Peacekeeping Operation Defined.--Section 2302(7) 

  of such title is amended--                                              

       (1) by striking out ``(7)(A)'' and inserting in lieu thereof        

   ``(7)''; and                                                            

       (2) by striking out ``(B) In subparagraph (A), the'' and inserting  

   in lieu thereof ``(8) The''.                                            

                    SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING   

          COSTS UNDER DEFENSE CONTRACTS.                                          

     (a) In General.--(1) Chapter 137 of title 10, United States Code, is 

  amended by inserting after section 2324 the following new section:      

          ``2325. Restructuring costs                                             



     ``(a) Limitation on Payment of Restructuring Costs.--(1) The         

  Secretary of Defense may not pay, under section 2324 of this title, a   

  defense contractor for restructuring costs associated with a business   

  combination of the contractor unless the Secretary determines in writing

  either--                                                                

       ``(A) that the amount of projected savings for the Department of    

   Defense associated with the restructuring will be at least twice the    

   amount of the costs allowed; or                                         

       ``(B) that the amount of projected savings for the Department of    

   Defense associated with the restructuring will exceed the amount of the 

   costs allowed and that the business combination will result in the      

   preservation of a critical capability that otherwise might be lost to   

   the Department.                                                         

     ``(2) The Secretary may not delegate the authority to make a         

  determination under paragraph (1) to an official of the Department of   

  Defense below the level of an Assistant Secretary of Defense.           

     ``(b) Report.--Not later than March 1 in each of 1998, 1999, 2000,   

  2001, and 2002, the Secretary of Defense shall submit to Congress a     

  report that contains, with respect to business combinations occurring on

  or after August 15, 1994, the following:                                

       ``(1) For each defense contractor to which the Secretary has paid,  

   under section 2324 of this title, restructuring costs associated with a 

   business combination, a summary of the following:                       

       ``(A) An estimate of the amount of savings for the Department of    

   Defense associated with the restructuring that has been realized as of  

   the end of the preceding calendar year.                                 



       ``(B) An estimate of the amount of savings for the Department of    

   Defense associated with the restructuring that is expected to be        

   achieved on defense contracts.                                          

       ``(2) An identification of any business combination for which the   

   Secretary has paid restructuring costs under section 2324 of this title 

   during the preceding calendar year and, for each such business          

   combination--                                                           

     ``(A) the supporting rationale for allowing such costs;               



       ``(B) factual information associated with the determination made    

   under subsection (a) with respect to such costs; and                    

       ``(C) a discussion of whether the business combination would have   

   proceeded without the payment of restructuring costs by the Secretary.  

       ``(3) For business combinations of major defense contractors that   

   took place during the year preceding the year of the report--           

       ``(A) an assessment of any potentially adverse effects that the     

   business combinations could have on competition for Department of       

   Defense contracts (including potential horizontal effects, vertical     

   effects, and organizational conflicts of interest), the national        

   technology and industrial base, or innovation in the defense industry;  

   and                                                                     

     ``(B) the actions taken to mitigate the potentially adverse effects.  



     ``(c) Definition.--In this section, the term `business combination'  

  includes a merger or acquisition.''.                                    

     (2) The table of sections at the beginning of such chapter is amended

  by inserting after the item relating to section 2324 the following new  

  item:                                                                   





      ``2325. Restructuring costs.''.                                         







     (b) GAO Reports.--(1) Not later than April 1, 1998, the Comptroller  

  General shall--                                                         

       (A) in consultation with appropriate officials in the Department of 

   Defense--                                                               

       (i) identify major market areas affected by business combinations of

   defense contractors since January 1, 1990; and                          

       (ii) develop a methodology for determining the savings from business

   combinations of defense contractors on the prices paid on particular    

   defense contracts; and                                                  

       (B) submit to the congressional defense committees a report         

   describing, for each major market area identified pursuant to           

   subparagraph (A)(i), the changes in numbers of businesses competing for 

   major defense contracts since January 1, 1990.                          



     (2) Not later than December 1, 1998, the Comptroller General shall   

  submit to the congressional defense committees a report containing the  

  following:                                                              



     (A) Updated information on--                                          



       (i) restructuring costs of business combinations paid by the        

   Department of Defense pursuant to certifications under section 818 of   

   the National Defense Authorization Act for Fiscal Year 1995, and        

       (ii) savings realized by the Department of Defense as a result of   

   the business combinations for which the payment of restructuring costs  

   was so certified.                                                       

       (B) An assessment of the savings from business combinations of      

   defense contractors on the prices paid on a meaningful sample of defense

   contracts, determined in accordance with the methodology developed      

   pursuant to paragraph (1)(A)(ii), as well as a description of the       

   methodology.                                                            

       (C) Any recommendations that the Comptroller General considers      

   appropriate.                                                            

     (3) In this subsection, the term ``business combination'' has the    

  meaning given that term in section 2325(c) of title 10, United States   

  Code, as added by subsection (a).                                       

     (c) Effective Date.--Section 2325(a) of title 10, United States Code,

  as added by subsection (a), shall apply with respect to business        

  combinations that occur after the date of the enactment of this Act.    

     (d) Repeal of Superseded Provisions.--Subsections (a) and (g)(3) of  

  section 818 of the National Defense Authorization Act for Fiscal Year   

  1995 (10 U.S.C. 2324 note) are repealed.                                



                    SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF          

          RIGHT-HAND DRIVE VEHICLES.                                              

     Section 2253(a)(2) of title 10, United States Code, is amended by    

  striking out ``$12,000'' and inserting in lieu thereof ``$30,000''.     

          SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.                              



     (a) Requirement for Authorization by Law in Acts Other Than          

  Appropriations Acts.--(1) Subsection (i) of section 2306b of title 10,  

  United States Code, is amended by adding at the end the following new   

  paragraph:                                                              

     ``(3) In the case of the Department of Defense, a multiyear contract 

  in an amount equal to or greater than $500,000,000 may not be entered   

  into for any fiscal year under this section unless the contract is      

  specifically authorized by law in an Act other than an appropriations   

  Act.''.                                                                 

     (2) Paragraph (3) of section 2306b(i) of title 10, United States     

  Code, as added by paragraph (1), shall not apply with respect to a      

  contract authorized by law before the date of the enactment of this Act.

     (b) Codification of Annual Recurring Multiyear Procurement           

  Requirements.--(1) Such section is further amended by adding at the end 

  the following new subsection:                                           

     ``(l) Various Additional Requirements With Respect to Multiyear      

  Defense Contracts.--(1)(A) The head of an agency may not initiate a     

  contract described in subparagraph (B) unless the congressional defense 

  committees are notified of the proposed contract at least 30 days in    

  advance of the award of the proposed contract.                          

    ``(B) Subparagraph (A) applies to the following contracts:            



     ``(i) A multiyear contract--                                          





       ``(I) that employs economic order quantity procurement in excess of 

   $20,000,000 in any one year of the contract; or                         

       ``(II) that includes an unfunded contingent liability in excess of  

   $20,000,000.                                                            

       ``(ii) Any contract for advance procurement leading to a multiyear  

   contract that employs economic order quantity procurement in excess of  

   $20,000,000 in any one year.                                            

     ``(2) The head of an agency may not initiate a multiyear contract for

  which the economic order quantity advance procurement is not funded at  

  least to the limits of the Government's liability.                      

     ``(3) The head of an agency may not initiate a multiyear procurement 

  contract for any system (or component thereof) if the value of the      

  multiyear contract would exceed $500,000,000 unless authority for the   

  contract is specifically provided in an appropriations Act.             

     ``(4) The head of an agency may not terminate a multiyear procurement

  contract until 10 days after the date on which notice of the proposed   

  termination is provided to the congressional defense committees.        

     ``(5) The execution of multiyear contracting authority shall require 

  the use of a present value analysis to determine lowest cost compared to

  an annual procurement.                                                  

     ``(6) This subsection does not apply to the National Aeronautics and 

  Space Administration or to the Coast Guard.                             

     ``(7) In this subsection, the term `congressional defense committees'

  means the following:                                                    

       ``(A) The Committee on Armed Services of the Senate and the         

   Subcommittee on Defense of the Committee on Appropriations of the       

   Senate.                                                                 

       ``(B) The Committee on National Security of the House of            

   Representatives and the Subcommittee on National Security of the        

   Committee on Appropriations of the House of Representatives.''.         

     (2) The amendment made by paragraph (1) shall take effect on October 

  1, 1998.                                                                

     (c) Technical and Conforming Amendments.--Such section is further    

  amended as follows:                                                     

     (1) Subsection (a) is amended--                                       



       (A) by striking out ``finds--'' in the matter preceding paragraph   

   (1) and inserting in lieu thereof ``finds each of the following:'';     

       (B) by capitalizing the initial letter of the first word in each of 

   paragraphs (1) through (6);                                             

       (C) by striking out the semicolon at the end of paragraphs (1)      

   through (4) and inserting in lieu thereof a period; and                 

       (D) by striking out ``; and'' at the end of paragraph (5) and       

   inserting in lieu thereof a period.                                     

       (2) Subsection (d)(1) is amended by striking out ``paragraph (1)''  

   and inserting in lieu thereof ``subsection (a)''.                       

       (3) Subsection (i)(1) is amended by striking ``five-year'' and      

   inserting in lieu thereof ``future-years''.                             

                    SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND       

          CLOTHING-RELATED ITEMS BY MILITARY INSTALLATIONS IN THE UNITED STATES.  

     (a) Audit Requirement.--Not later than September 30, 1998, the       

  Inspector General of the Department of Defense shall perform an audit of

  purchases of military clothing and clothing-related items in excess of  

  the micro-purchase threshold by military installations during fiscal    

  years 1996 and 1997 to determine the extent to which such installations 

  procured military clothing and clothing-related items in violation of   

  the Buy American Act (41 U.S.C. 10a et seq.) during those fiscal years. 

    (b)  Installations To Be Audited.--The audit under subsection (a)--   



       (1) shall include an audit of the procurement of military clothing  

   and clothing-related items by a military installation of each of the    

   Army, Navy, Air Force, and Marine Corps; and                            



       (2) shall not cover procurements of clothing and clothing-related   

   items by the Defense Logistics Agency.                                  

     (c) Definition.--The term ``micro-purchase threshold'' has the       

  meaning provided by section 32(f) of the Office of Federal Procurement  

  Policy Act (41 U.S.C. 428(f)).                                          

     (d) Report.--Not later than October 31, 1998, the Inspector General  

  of the Department of Defense shall submit to Congress a report on the   

  results of the audit performed under subsection (a).                    



                    SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR      

          CERTAIN CONTRACTOR PERSONNEL.                                           

     (a) Certain Compensation Not Allowable as Costs Under Defense        

  Contracts.--(1) Subsection (e)(1) of section 2324 of title 10, United   

  States Code, is amended by adding at the end the following:             

       ``(P) Costs of compensation of senior executives of contractors for 

   a fiscal year, regardless of the contract funding source, to the extent 

   that such compensation exceeds the benchmark compensation amount        

   determined applicable for the fiscal year by the Administrator for      

   Federal Procurement Policy under section 39 of the Office of Federal    

   Procurement Policy Act (41 U.S.C. 435).''.                              

     (2) Subsection (l) of such section is amended by adding at the end   

  the following:                                                          

       ``(4) The term `compensation', for a year, means the total amount of

   wages, salary, bonuses and deferred compensation for the year, whether  

   paid, earned, or otherwise accruing, as recorded in an employer's cost  

   accounting records for the year.                                        

       ``(5) The term `senior executive', with respect to a contractor,    

   means--                                                                 

       ``(A) the chief executive officer of the contractor or any          

   individual acting in a similar capacity for the contractor;             

       ``(B) the four most highly compensated employees in management      

   positions of the contractor other than the chief executive officer; and 



       ``(C) in the case of a contractor that has components which report  

   directly to the contractor's headquarters, the five most highly         

   compensated employees in management positions at each such component.   

       ``(6) The term `fiscal year' means a fiscal year established by a   

   contractor for accounting purposes.''.                                  

     (b) Certain Compensation Not Allowable as Costs Under Non-Defense    

  Contracts.--(1) Subsection (e)(1) of section 306 of the Federal Property

  and Administrative Services Act of 1949 (41 U.S.C. 256) is amended by   

  adding at the end the following:                                        

       ``(P) Costs of compensation of senior executives of contractors for 

   a fiscal year, regardless of the contract funding source, to the extent 

   that such compensation exceeds the benchmark comp