Congressional Documents

NATIONAL DEFENSE AUTHORIZATION
ACT FOR FISCAL YEAR 1998
CONFERENCE REPORT
to accompany
H.R. 1119

October 23, 1997
105th Congress 1st Session
HOUSE OF REPRESENTATIVES

Report 105-340




JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 1119) to authorize appropriations for fiscal year 1998 for defense activities of the Department of Defense, for military construction, and for defense programs of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report: The Senate amendment struck out all of the House bill after the enacting clause and inserted a substitute text. The House recedes from its disagreement to the amendment of the Senate with an amendment which is a substitute for the House bill and the Senate amendment. The differences between the House bill, the Senate amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clarifying changes. SUMMARY STATEMENT OF CONFERENCE ACTION The conferees recommend authorizations for the Department of Defense for procurement, research and development, test and evaluation, operation and maintenance, working capital funds, military construction and family housing, weapons programs of the Department of Energy, and the civil defense that have budget authority implications of $268.2 billion. SUMMARY TABLE OF AUTHORIZATIONS The defense authorization act provides authorizations for appropriations but does not generally provide budget authority. Budget authority is provided in appropriations acts. ......... DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS TITLE I--PROCUREMENT Overview The budget request for fiscal year 1998 contained an authorization of $42,883.0 million for Procurement in the Department of Defense. The House bill would authorize $46,595.9 million. The Senate amendment would authorize $47,028.1 million. The conferees recommended an authorization of $45,773.8 million. Unless noted explicitly in the statement of managers, all changes are made without prejudice. ............ LEGISLATIVE PROVISIONS ADOPTED .......... SUBTITLE C--NAVY PROGRAMS New Attack Submarine program (sec. 121) The budget request included $284.8 million for advance procurement of components for future nuclear attack submarines, and proposed a change in the acquisition strategy contained in the National Defense Authorization Act for Fiscal Year 1997 that directed competition between two submarine shipbuilders. The proposed change in strategy includes a contractor teaming agreement to build the first four new attack submarines. The House bill authorized the budget request and contained no provision on submarine teaming. The Senate amendment contained a provision (sec. 121) that would authorize the Secretary of the Navy to enter into a contract or contracts for the construction of four nuclear attack submarines under the terms of a teaming arrangement between Electric Boat and Newport News Shipbuilding. The House recedes. CVN 77 Nuclear Aircraft Carrier program (sec. 122) The budget request included no funding for CVN 77. The House bill would authorize the budget request. The Senate amendment contained a provision (sec. 122) that would: (1) authorize $345.0 million for procurement and construction of components for the CVN 77 aircraft carrier and authorize the Secretary of the Navy to enter into a contract or contracts with the carrier shipbuilder for such purposes; (2) authorize $35.0 million for research, development, test, and evaluation of technologies that have potential for use in the CVN 77; and (3) direct the Secretary to structure the procurement of the CVN 77 so that the carrier is acquired for an amount not to exceed $4.6 billion, with allowances for adjustments to this amount due to: (a) outfitting and post delivery costs, (b) inflation occurring after or compliance with changes in Federal, state, or local laws enacted after September 30, 1997, (c) increases or decreases in costs attributable to new technology built into CVN 77 as compared to the technology built into the baseline design of the CVN 76, and (d) increases or decreases in costs resulting from changes the Secretary proposes in the funding plan of the so-called Smart Buy proposal on which the projected savings are based. The House recedes with an amendment which would: (1) authorize the Secretary of the Navy to procure the CVN 77 subject to the availability of appropriations for that purpose; (2) authorize $50.0 million for advance procurement and advance construction of components for the CVN 77 and authorize the Secretary of the Navy to enter into a contract or contracts for such purposes; (3) permit the Secretary of Defense to transfer up to $295.0 million to the CVN-77 program and allow this transfer to be made in addition to the transfer authority limit provided for elsewhere in the National Defense Authorization Act for Fiscal Year 1998; (4) direct the Secretary of the Navy to obligate and expend the funds available for advance procurement and advance construction of carrier components for the CVN 77 in fiscal year 1998 in a manner that is designed to result in cost savings that will meet a cost limitation of $4.6 billion for the procurement of that vessel; (5) direct the Secretary of Defense to make plans to attain the cost savings in the funding plan presented to Congress by the ship builder in March 1997; and (6) direct the Secretary of the Navy to structure and manage the CVN 77 procurement program so that the $4.6 billion cost limitation is not exceeded, except for adjustments to this amount resulting from: (a) outfitting and post delivery costs, (b) inflation occurring after or compliance with changes in Federal, state, or local laws enacted after September 30, 1997, (c) increases or decreases in costs attributable to new technology built into CVN 77 as compared to the technology built into the baseline design of the CVN 76, and (d) increases or decreases in costs resulting from changes the Secretary proposes in the funding plan on which the projected savings are based. The conferees support construction of the CVN 77 and believe that initiating advance procurement for it in fiscal year 1998, rather than in fiscal year 2000 as currently projected in the Future Years Defense Program (FYDP), has the potential to produce considerable savings if additional funds are provided in fiscal years 1998 through 2001. Therefore, the conferees strongly encourage the Secretary of Defense to make available up to $295.0 million in fiscal year 1998 and to include in the FYDP accompanying the fiscal year 1999 budget request the funding necessary to achieve the savings required to remain within the $4.6 billion cost limitation. Exclusion from cost limitation for Seawolf submarine program (sec. 123) The Senate amendment contained a provision (sec. 123) that would reaffirm the existing cost cap for Seawolf submarines but would make it clear that certain costs associated with now canceled Seawolf submarines should not be taken into account. The House bill contained no similar provision. The House recedes with an amendment that would exclude from the cost limitation for the Seawolf submarine program $272.4 million initial class design costs that were previously allocated to other canceled ships in the class. The amendment would also require the Inspector General of the Department of Defense to determine whether: (1) the request of the Secretary of the Navy for exclusion of $745.4 million of the costs associated with canceled submarines is justified; and (2) any further exclusions from or increases to the cost cap will be required. The Inspector General shall report the findings to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives not later than March 30, 1998. SUBTITLE D--AIR FORCE PROGRAMS Authorization for B 2 bomber program (sec. 131) The budget request included $174.1 million for modification of aircraft on order or already in the inventory to the Block 30 configuration. The House bill would authorize an increase of $331.2 million for long lead funding for an additional nine aircraft above the 21 already authorized. The Senate amendment would authorize the budget request and included a provision (sec. 131) that would prohibit the use of any funds to procure any additional B 2 bomber aircraft or to maintain any part of bomber industrial base solely for the purpose of preserving the option to procure additional B 2 bomber aircraft in the future. The Senate recedes with an amendment. The conferees agree to authorize $331.2 million to be used either for long lead activities related to the procurement of additional B 2 aircraft, or for modification and repair of the existing fleet of B 2 bomber aircraft, depending on the President's determination of the requirement for additional B 2 aircraft. The provision would also direct the Secretary of Defense to ensure that all appropriate actions are taken to preserve the options of the President until submission of the report required by section 8131 of the Department of Defense Appropriations Act for fiscal year 1998. ........... LEGISLATIVE PROVISIONS NOT ADOPTED Limitation on obligation of funds for the Seawolf submarine program The House bill contained a provision (sec. 121) that would prohibit the obligation of more than 50 percent of the fiscal year 1998 funds authorized and appropriated for the Seawolf submarine until the Secretary of the Navy certifies that not less than 50 percent of the New Attack Submarine technology insertion opportunities for the first four submarines were included in the Future Years Defense Program accompanying the fiscal year 1999 budget request. The Senate amendment contained no similar provision. Having received written assurance from the Secretary that the fiscal year 1999 budget request will comply with the provision in the House bill, the House recedes. ......... TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION ........ Project ``M'' The budget request included $39.7 million in PE 63508N for technologies for submarine and surface ship handling, machinery, and engineering systems. The House bill authorized an increase of $5.0 million to continue the Navy's program for transition, development and demonstration of advanced quieting technology developed under the Defense Advanced Research Project Agency Project ``M''. The Senate amendment authorized the budget request. The conferees agree to authorize a $5.0 million increase for Project ``M''. .......... Littoral antisubmarine warfare technology demonstration The budget request included $54.8 million in PE 63747N for advanced development of undersea warfare advanced technology, including $30.9 million for shallow water surveillance advanced technology. The House bill would authorize an increase of $5.0 million in PE 63747N for continued development, demonstration, and evaluation of the technology for a mobile, high power broadband acoustic surveillance source that is based upon the adaptation of commercial-off-the-shelf (COTS) air-gun technology that was developed originally for the oil exploration industry. The Senate amendment would authorize the budget request. The conferees agree to authorize an increase of $3.0 million for the continuation of the COTS air-gun technology demonstration and evaluation program and understand that this will lead to a decision by the Navy on whether to proceed with the development of COTS air-gun technology as an acoustic surveillance source. ......... Antisubmarine warfare systems development The budget request included $22.9 million in PE 63254N for development of antisubmarine warfare systems. The House bill would authorize an increase of $3.8 million to complete demonstration/validation of sonobuoy geo-positioning system integration and transducer enhancements for improving the shallow water antisubmarine warfare effectiveness of the air deployed low frequency projector. The Senate amendment would authorize the budget request. The conferees agree to authorize a $2.0 million increase in PE 63254N for improving the shallow water antisubmarine warfare effectiveness of the air deployed low frequency projector. CV(X) carrier system development The budget request included $98.6 million in PE 63512N for future aircraft carrier research and development. The House bill would authorize a decrease of $88.4 million for CV(X) carrier system development. The House report (H. Rept. 105 132) expressed the belief that it would be neither fiscally nor technically prudent to increase advanced carrier systems research and development for the CV(X) to the degree sought by the Navy. The report also expressed the belief that increased emphasis should be placed on the research and development program for the CVN 77 to provide a transition to the CV(X). The Senate amendment would authorize the budget request. The conferees agree to authorize $20.6 million in PE 63512N, a reduction of $78.0 million for future aircraft carrier research and development. The conferees encourage the Chief of Naval Operations to define the operational requirement for the CV(X) aircraft carrier program and develop a road map for the CV(X) research, development, test and evaluation program to ensure the capabilities of the CV(X) meet that requirement. Advanced submarine systems development The budget request included $59.1 million in PE 63561N for innovative research and development in submarine technologies and their subsequent evaluation, demonstration, and validation for submarine platforms, in order to increase the submarine technology base and provide subsystem design options that are not currently feasible. The House bill would authorize an increase of $103.0 million for development (in parallel with development of the New Attack Submarine (NAS)) of a large-scale vehicle (LSV) demonstrator that would not be limited by form (hull or appendages) or by a single hull design, and would also direct the Secretary of the Navy to issue a competitive solicitation for the demonstrator to the shipyards not currently involved in the design or future construction of the NAS. The House bill would further direct the transfer to the submarine large scale demonstrator of funds in the Future Years Defense Program accompanying the fiscal year 1998 budget for the Arsenal Ship demonstrator. The Senate amendment would authorize an increase of $15.0 million to accelerate the development of what are now considered far-term technologies, such as an advanced propulsor, rim driven motors, and advanced hull forms. The conferees agree to authorize an increase of $54.9 million. The Secretary of the Navy is authorized to pursue a third demonstrator that is not limited by form or single hull design and issue a competitive solicitation to all responsible sources for such a demonstrator. To avoid costly oversights and conflicts between the LSV builder and the technology providers, the Secretary of the Navy should ensure that the NAS shipbuilders are participants, as appropriate, in the process of including new technologies into the LSV. The Secretary of the Navy should provide the congressional defense committees not later than the time at which the fiscal year 1999 defense budget request is submitted a report detailing the Navy's plans for LSV development. ................ LEGISLATIVE PROVISIONS ADOPTED SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS ................ SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS ................ Joint Strike Fighter Program (sec. 213) The Senate amendment contained a provision (sec. 211) that would require the Secretary of Defense to submit a report to the congressional defense committees on the options for the sequence in which the variants of the Joint Strike Fighter (JSF) are to be produced and fielded. The House bill contained no similar provision. The House recedes with an amendment that would include a requirement for certification that the JSF program contains sufficient funding to carry out an alternate engine program that includes flight qualification of an alternate engine. ............ F-22 aircraft program (sec. 217) The Senate amendment contained a provision (sec. 212) that would impose cost caps on both the total cost of engineering and manufacturing development (EMD) and the total cost of production of the F 22. Additionally, the Senate amendment would require an annual report by the Comptroller General that would assess the progress of EMD and its prospect of completion under the cost cap. The annual report would be required until EMD is complete. Finally, the Senate amendment would limit the obligation of funds authorized to be appropriated each fiscal year to 90 percent until the Comptroller General's annual report is submitted. The House bill contained no similar provision. The House recedes with an amendment that would allow adjustments to the cost caps for economic inflation and compliance with laws enacted after September 30, 1997. ................ TITLE III--OPERATION AND MAINTENANCE Overview The budget request for fiscal year 1998 contained an authorization of $93,195.7 million for Operation and Maintenance in the Department of Defense and $2,163.4 for Working Capital Fund Accounts in fiscal year 1998. The House bill would authorize $92,616.2 million for Operation and Maintenance and $2,153.6 for Working Capital Fund Accounts. The Senate amendment would authorize $93,292.9 million for Operation and Maintenance and $1,488.1 for Working Capital Fund Accounts. The conferees recommended an authorization of $93,794.2 million for Operation and Maintenance and $2,031.9 for Working Capital Fund Accounts for fiscal year 1998. Unless noted explicitly in the statement of managers, all changes are made without prejudice. ............. National Defense Sealift Fund (NDSF) The budget request included $812.9 million in the National Defense Sealift Fund (NDSF) for sealift acquisition. Of this amount, $581.3 million would be for the procurement of two large medium speed roll-on/roll-off (LMSR) strategic sealift ships, $131.5 million for resolution of cost growth that has occurred on LMSRs authorized in prior years, $70.0 million for advance procurement of components for an LMSR that is planned for authorization in fiscal year 1999, and $30.1 million for completion of ships authorized in prior years. The House bill would authorize a decrease of $9.8 million. The Senate amendment would authorize a decrease of $651.3 million for procurement and for advance procurement of LMSRs. The Senate amendment would also authorize a decrease of $25.0 million because of contract savings in previously authorized and appropriated NDSF programs. In addition, the Senate amendment would authorize an increase of $1.0 million to provide support for a Department of Defense study of future requirements and specifications for maritime prepositioning force recapitalization. The conferees agree to authorize $581.3 million for procurement of two LMSRs, $70.0 for advance procurement, and $30.1 million for completion of prior year ships. The conferees further agree to a decrease of $131.5 million which includes a decrease of $131.0 million for prior year cost growth, which the conferees believe can be deferred until fiscal year 1999; and a decrease of $0.5 million as a result of fiscal year 1997 contract savings. ............... LEGISLATIVE PROVISIONS ADOPTED SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS ................ SUBTITLE B--MILITARY READINESS ISSUES Monthly reports on allocation of funds within operation and maintenance budget subactivities (sec. 321) The House bill contained a provision (sec. 312) that would require the Secretary of Defense to notify and receive approval from the congressional defense committees prior to the reallocation of operation and maintenance funds above a certain threshold. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would require the Department of Defense to provide a monthly report to Congress outlining the reallocation of funds within the operation and maintenance accounts and the effect of this reallocation on the ability of the Department to perform the functions for which the funds were originally appropriated. Expansion of scope of quarterly readiness reports (sec. 322) The House bill contained a provision (sec. 311) that would expand the Quarterly Readiness Report required by section 361 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106) to include data and analysis on additional readiness indicators, which would provide a more comprehensive readiness assessment. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would include additional factors to be included in these reports such as personnel skills and pre-positioned equipment. Semiannual reports on transfers from high-priority readiness appropriations (sec. 323) The House bill contained a provision (sec. 315) that would extend through November 1, 2000, the requirement for the Secretary of Defense to report semi-annually on transfers from high-priority readiness accounts, in compliance with section 362 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106). This provision would also expand the number of readiness accounts to be considered in the report. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would make it a semiannual report. Annual report on aircraft inventory (sec. 324) The Senate amendment contained a provision (sec. 1037) that would require the Undersecretary of Defense (Comptroller) to submit with the budget request an annual report to the Congress on the aircraft in the inventory of the Department of Defense. The provision would also require the modification of budget data exhibits to display total numbers of aircraft where numbers of primary aircraft or primary authorized aircraft are displayed in exhibits. The House bill contained no similar provision. The House recedes. Administrative actions adversely affecting military training or other readiness activities (sec. 325) The Senate amendment contained a provision (sec. 363) that would require the Secretary of Defense to provide the President, the Committee on Armed Services of the Senate, the National Security Committee of the House of Representatives, and the head of any relevant Federal agency with written notification of any Federal administrative action that has or would have a significant adverse effect on the military readiness of any of the armed forces or a critical component of the armed forces, such as a Marine battalion preparing for deployment as part of a Marine Expeditionary Unit, or Special Operations Forces dedicated to a specific mission. Notification would be provided as soon as the Secretary becomes aware of an adverse administrative action or proposed administrative action. The notification would delay the implementation of the action for a period of 30 days unless the Secretary determines that the compliance with the proposed action is in the best interest of the American public, or the President directs the Secretary to comply based on a determination that the implementation of the action is more important than the effects on military readiness. The House bill contained no similar provision. The House recedes. Common measurement of operations and personnel tempo (sec. 326) The Senate amendment contained a provision (sec. 1032) that would require the Chairman of the Joint Chiefs of Staff to develop, to the maximum extent practicable, a common measurement of operations tempo (OPTEMPO) and personnel tempo (PERSTEMPO). The House bill contained no similar provision. The House recedes. Inclusion of Air Force depot maintenance as operation and maintenance budget activity group (sec. 327) The House bill contained a provision (sec. 373) that would require the Secretary of the Air Force, beginning in fiscal year 1999, to identify funding for depot maintenance in a discreet subactivity group. The Senate amendment contained no similar provision. The Senate recedes with a technical amendment. Prohibition of implementation of tiered readiness system (sec. 328) The House bill contained a provision (sec. 314) that would prohibit the implementation of any tiered readiness system which would change military service-specific methods of determining priorities for allocating funding, personnel, equipment, equipment maintenance, and training resources to military units, and the associated level of readiness of those units that result from those priorities, from the system that existed on October 1, 1996, until the Secretary of Defense provides Congress with a report recommending a new tiered readiness system along with legislative proposals and these proposals are enacted by the Congress. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would prohibit the implementation of a new tiered or cyclical readiness system based on the results of the reviews as required by section 329 and section 330 of this Act, or any other review. The amendment would clarify that the prohibition does not preclude the Secretary of Defense from taking necessary action to maintain the combat preparedness of the active and reserve components of the United States Armed Forces. The conferees note that this provision does not block the ability of the Department of Defense to routinely adjust the manner in which it manages force readiness, particularly as it pertains to maintaining necessary combat capabilities. Rather, the provision precludes the adoption of a new tiered or cyclical readiness system, as outlined in section 329 and section 330 of this Act, pending subsequent congressional review and concurrence given the significant policy issues associated with such proposals. Accordingly, the provision allows for the Secretary of Defense, following the completion of the reviews required by sections 329 and 330 of this Act, or any other review the Secretary may deem appropriate, to submit, for Congressional consideration, a request for relief from this prohibition. Report on military readiness requirements of the Armed Forces (sec. 329) The Senate amendment contained a provision (sec. 1034) that would direct the Department to further explore the potential for tiered readiness. This provision would require the Chairman and the service chiefs, together with the Commander in Chief of the Special Operations Command and the commanders of the other unified commands, to prepare a second report that would examine the extent to which the readiness of the armed forces could be tiered. Rather than looking at a generic major regional conflict, this report would require an examination of the tiered readiness concept within the force structure advocated by the Quadrennial Defense Review, including the armed forces required to deter or defeat a strategic attack upon the United States. The report would include a rotational examination of the tiering of the armed forces that would focus on the brigade and battalion levels of the Army and Marine Corps Divisions, the squadron levels of the Air Force, Navy and Marine Corps Wings, and the Navy Fleets. The House bill contained no similar provision. The House recedes. Assessment of cyclical readiness posture of the Armed Forces (sec. 330) The Senate amendment contained a provision (sec. 1035) that would require the Secretary of Defense to report on the impact of moving to a cyclical readiness approach for major warfighting units. Under this approach, a high state of readiness alternates from one unit to another, as is already done with the blue and gold crews on ballistic missile submarines. The report should identify the savings and risks associated with cyclical readiness. The House bill contained no similar provision. The House recedes. Report on military exercises conducted under certain training exercise programs (sec. 331) The House bill contained a provision (sec. 316) that would require the Secretary of Defense to report by January 15, 1998, on both past and planned joint training exercises sponsored by the Chairman, Joint Chiefs of Staff (CJCS) Exercise Program and the Partnership for Peace (PFP) program. The report would include the type, description, duration, objectives, the percentage of service-unique training accomplished, and an assessment of the training value of each CJCS and PFP exercise. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would include exercises funded through the Cooperative Threat Reduction Program. The conference agreement would also require the report to include an assessment of the value provided through enhanced military to military relationships between the participating nations, and the extent to which the training exercises enhanced the readiness capabilities of all forces involved in the exercise. Report on overseas deployment (sec. 332) The Senate amendment contained a provision (sec. 1033) that would require the Department of Defense to report on the number of personnel deployed overseas as of June 30, 1996 and June 30, 1997. The report would distinguish between personnel who are forward deployed as their permanent duty station and those deployed overseas for temporary duty, such as service-specific exercises, joint exercises, exercises with allies, and deployments for contingency operations. The House bill contained no similar provision. The House recedes. ................ TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS LEGISLATIVE PROVISIONS ADOPTED SUBTITLE A--ACTIVE FORCES End strengths for active forces (sec. 401) The House bill contained a provision (sec. 401) that would authorize end strengths for the active forces, as indicated in the table below: Service Fiscal year 1998-- Request Recommendation Army 495,000 495,000 Navy 390,802 395,000 Marine Corps 174,000 174,000 Air Force 371,577 381,000 ------------ ----------------- Total 1,431,379 1,445,000 The Senate amendment contained a provision (sec. 401) that would authorize active duty end strengths for fiscal year 1998, as shown below: Fiscal year-- 1997 authorization 1998 request 1998 recommendation Army: 495,000 495,000 485,000 Navy: 407,318 390,802 390,802 Marine Corps: 174,000 174,000 174,000 Air Force: 381,000 371,577 371,577 The House recedes with an amendment that would authorize active duty end strengths for fiscal year 1998 as shown below: Fiscal year-- 1997 authorization 1998 request 1998 authorization Army 495,000 495,000 495,000 Navy 407,318 390,802 390,802 Marine Corps 174,000 174,000 174,000 Air Force 381,100 371,577 371,577 --------------------- --------------- --------------------- Total 1,457,418 1,431,379 1,431,379 Permanent end strength levels to support two major regional contingencies (sec. 402) The Senate amendment contained a provision (sec. 402) that would repeal section 691 of title 10, United States Code, as amended by section 402 of the National Defense Authorization Act for Fiscal Year 1997. The House bill contained a similar provision. The House recedes with an amendment that would amend section 691 of title 10, United States Code to make the end strength floors consistent with the active duty end strengths authorized in section 401 of the conference agreement. Additionally, the amendment would provide the Army one and one-half percent flexibility below the floor while retaining one percent flexibility for the Navy, Marine Corps and the Air Force. The conferees are concerned about the strains being placed on military personnel and their families. There is an apparent incongruence between the number and frequency of deployments, the extraordinary pace of operations, and the continued pressure through the budget process to reduce military personnel levels. The conferees intend to continue to examine closely and challenge, as appropriate, any recommendations of the Department of Defense, the Quadrennial Defense Review, or the National Defense Panel to further reduce military personnel. The conferees will be especially vigilant for reductions in military personnel levels that appear to be driven purely by budget pressures, and not supported by the fielding modern systems that require fewer personnel or changes in the requirements of the national military strategy. The conferees note that section 691 of title 10, United States Code, as amended by the conference report, requires the Secretary of Defense to fully fund and maintain the end strength floors in future budgets. SUBTITLE B--RESERVE FORCES End strengths for Selected Reserve (sec. 411) The House bill contained a provision (sec. 411) that would authorize end strengths for the Selected Reserve as indicated in the table below: Fiscal year 1997 authorized Fiscal year 1998-- Request Recommendation ARNG 366,758 366,516 366,516 USAR 215,179 208,000 208,000 USNR 96,304 94,294 94,294 USMCR 42,000 42,000 42,000 ANG 109,178 107,377 107,377 USAFR 73,311 73,431 73,431 Coast Guard 8,000 8,000 8,000 ---------------------------- ---------- ---------------- Total 910,730 899,618 899,618 The Senate amendment contained a provision (sec. 411) that would authorize Selected Reserve end strengths for fiscal year 1998 as shown below: Fiscal year-- 1997 authorization 1998 request 1998 recommendation The Army National Guard of the United States 366,758 366,516 361,516 The Army Reserve 215,179 208,000 208,000 The Naval Reserve 96,304 94,294 94,294 The Marine Corps Reserve 42,000 42,000 42,000 The Air National Guard of the United States 109,178 107,377 108,002 The Air Force Reserve 73,311 73,431 73,542 The Coast Guard Reserve 8,000 8,000 8,000 The House recedes with an amendment that would authorize Selected Reserve end strengths for fiscal year 1998 as shown below: Fiscal year-- 1997 authorization 1998 request 1998 recommendation The Army National Guard of the United States 366,758 366,516 361,516 The Army Reserve 215,179 208,000 208,000 The Naval Reserve 96,304 94,294 94,294 The Marine Corps Reserve 42,000 42,000 42,000 The Air National Guard of the United States 109,178 107,377 108,002 The Air Force Reserve 73,311 73,431 73,447 The Coast Guard Reserve 8,000 8,000 8,000 The conferees recommend an Army National Guard end strength below the 1998 request as a result of the Off-Site Review the Army announced on June 5, 1997, in which the active Army, the Army Reserve, and the Army National Guard agreed on personnel reductions recommended by the Quadrennial Defense Review. The conferees recommend increased end strengths for the Air National Guard and the Air Force Reserve to accommodate retention of the PAA C 130 aircraft at current levels. The conferees also recommend an adjustment to the Air Force Reserve end strength consistent with the recommendation that would prohibit the Secretary of the Air Force from replacing civilian base security personnel with active guard and reserve personnel. The conferees adjusted the recommended authorization of appropriations to reflect these recommendations. End strengths for Reserves on active duty in support of the Reserves (sec. 412) The House bill contained a provision (sec. 412) that would authorize the end strengths of the reserves on active duty in support of the reserves as indicated in the table below. These end strengths are included within the total end strengths authorized for the Selected Reserve. Fiscal year-- 1997 authorization 1998 request 1998 recommendation ARNG 22,798 22,310 22,310 USAR 11,729 11,500 11,500 USNR 16,603 16,136 16,136 USMCR 2,559 2,559 2,559 ANG 10,403 10,616 10,616 USAFR 655 963 748 -------------------- -------------- --------------------- Total 64,747 64,084 63,869 The Senate amendment contained a provision (sec. 412) that would authorize full-time support end strengths for fiscal year 1998 as shown below: Fiscal year-- 1997 authorization 1998 request 1998 recommendation The Army National Guard of the United States 22,798 22,310 22,310 The Army Reserve 11,729 11,500 11,500 The Naval Reserve 16,603 16,136 16,136 The Marine Corps Reserve 2,559 2,559 2,559 The Air National Guard of the United States 10,403 10,616 10,671 The Air Force Reserve 655 963 963 The House recedes with an amendment that would authorize full-time support end strengths for fiscal year 1998 as shown below: Fiscal year-- 1997 authorization 1998 request 1998 recommendation The Army National Guard of the United States 22,798 22,310 22,310 The Army Reserve 11,729 11,500 11,500 The Naval Reserve 16,603 16,136 16,136 The Marine Corps Reserve 2,559 2,559 2,559 The Air National Guard of the United States 10,403 10,616 10,671 The Air Force Reserve 655 963 867 -------------------- -------------- --------------------- Total 64,747 53,468 53,372 The recommended change to the end strength for reserves on active duty in support of the Air Force Reserve results from an increase to support the retention of C 130 PAA aircraft at the current levels, a reduction from the budget request consistent with the recommendation that would prohibit the Secretary of the Air Force from replacing civilian base security personnel with active guard and reserve personnel, and an increase to accommodate the creation of deployable force protection teams in the Air Force Reserve. The conferees adjusted the recommended authorization of appropriations to reflect these changes. Additionally, the conferees are concerned about a range of issues related to management, utilization, and assignment of persons participating in the active guard and reserve programs. The committees of jurisdiction intend to examine these matters during the second session of the 105th Congress. ................ LEGISLATIVE PROVISIONS NOT ADOPTED Limitation on operation and support funds for the Office of the Secretary of Defense The House bill contained a provision (sec. 901) that would reduce the funding associated with the operation and support activities of the Office of the Secretary of Defense (OSD) by twenty percent, and would restrict the obligation of ten percent of funding authorized in fiscal year 1998 until the Department conforms to the requirements of section 901 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106) and section 904 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201). The Senate amendment contained no similar provision. The House recedes. The conferees remain concerned with the Department's non-compliance with section 901 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106) that requires a report on specific plans for improving organizational efficiency and effectiveness of the Office of the Secretary (OSD). In addition, the conferees note that OSD failed to implement personnel reductions at a rate sufficient to achieve the statutory requirement by October 1, 1997, as specified in section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201). ............... White House Communications Agency The House bill contained a provision (sec. 905) that would limit funding for the White House Communications Agency (WHCA) to $55.0 million, an amount slightly below fiscal year 1997 levels. The Senate amendment contained no similar provision. The House recedes. The conferees believe that Department of Defense funds for WHCA should only be spent on telecommunication support for the President, and the Department should be reimbursed for non-telecommunication support services. The WHCA is staffed with approximately eight civilians and 908 military personnel. Of those 908 military positions, 103 are for the provision of non-telecommunications support services. The conferees believe that there is little justification to provide non-telecommunications support services to the President with military personnel assigned to WHCA. In an era when the administration is calling for further reductions in military end-strength, the conferees believe that the military billets dedicated to non-telecommunications support for WHCA could be better used elsewhere within the Department of Defense to perform missions that are truly in support of national defense. The conferees believe that non-telecommunications support services provided by WHCA can, and should, be provided by civilian personnel. Furthermore, the conferees note that the WHCA budget incorrectly included the WHCA procurement items in the Operation and Maintenance (O&M) budget request. Therefore, the conferees agree to transfer the $7.2 million for WHCA procurement from the O&M account to the procurement account. Personnel reductions in the United States Transportation Command The House bill contained a provision (sec. 1304) that would mandate a 1,000 person reduction in the United States Transportation Command during fiscal year 1998. The Senate amendment contained no similar provision. The House recedes. The conferees note that another section of the conference agreement directs a reduction in the number of personnel assigned to management headquarters and headquarters support activities within the United States Transportation Command of five percent during fiscal year 1998. Commission on Defense Organization and Streamlining The House bill contained a series of provisions (sec. 1601 1609) that would establish a Commission on Defense Organization and Streamlining. The purpose of the commission would be to examine the missions, functions, and responsibilities of the Office of the Secretary of Defense, the management headquarters and headquarters support activities of the military departments and defense agencies, and the various acquisition organizations of the Department of Defense; to propose alternative organizational structures; and to identify areas of duplication and recommend options to eliminate the duplications. The Senate amendment contained no similar provision. The House recedes. The conferees note that other provisions of the conference agreement direct the Secretary of Defense to require a Task Force on Defense Reform to examine the missions, functions, and responsibilities of the Department's acquisition organizations and its various headquarters activities and management headquarters support activities; and to submit reports on the results of the examinations by the Task Force to the Congress in early 1998. ................ SUBTITLE D--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS ........... Overseas infrastructure requirements (sec. 1043) The Senate amendment contained a provision (sec. 1036) that would require the Secretary of Defense to provide a report to the Committee on Armed Services of the Senate and the National Security Committee of the House of Representatives outlining the current and future forward-basing requirements of the Department of Defense along with the international agreements necessary to provide these facilities. The House bill contained no similar provision. The House recedes. ........... TITLE XII--MATTERS RELATING TO OTHER NATIONS LEGISLATIVE PROVISIONS ADOPTED ............ SUBTITLE C--OTHER MATTERS ........... Sense of the Congress relating to level of United States military personnel in the East Asia and Pacific region (sec. 1225) The House bill contained a provision (sec. 1208) that would express the sense of Congress that the United States should maintain at least approximately 100,000 U.S. military personnel in the East Asia-Pacific region to ensure stability in that critical area. The Senate amendment contained no similar provision. The Senate recedes with a clarifying amendment. ........... TITLE XIII--ARMS CONTROL AND RELATED MATTERS LEGISLATIVE PROVISIONS ADOPTED ........... Annual report on moratorium on use by Armed Forces of antipersonnel landmines (sec. 1309) The House bill contained a provision (sec. 1055) that would require the Secretary of Defense, after consultation with the Chairman of the Joint Chiefs of Staff, to certify to Congress prior to the implementation of any moratorium by law on the use of antipersonnel landmines (APL) by U.S. Armed Forces, that any such moratorium would not adversely affect the ability of U.S. Armed Forces to defend themselves, until such time as effective substitutes exist to replace antipersonnel landmines. The Senate amendment contained no similar provision. The Senate recedes with an amendment that would contain findings describing the actions and decisions by the President relating to U.S. policy regarding antipersonnel landmines and the status of current law; express the sense of Congress regarding implementation of a landmine moratorium and support for development of alternatives to antipersonnel landmines. The provision would also require the Secretary of Defense to submit an annual report describing the military utility of the continued U.S. deployment of antipersonnel landmines, progress in developing and fielding systems that are effective substitutes for antipersonnel landmines, their costs and an estimated timetable for developing and fielding those systems, the number and type of pure antipersonnel and mixed anti-tank mine systems, the cost and effect of the elimination of the former and the impact of their elimination on the deterrence and warfighting ability of U.S. forces, and the benefits to U.S. military and civilian personnel of an international treaty banning the production, use, transfer and stockpiling of antipersonnel landmines. The conferees endorse the President's September 17, 1997 pledge to increase U.S. support for worldwide demining efforts. Further, the conferees believe that international support, and increased funding, for practical efforts such as clearing landmines and providing medical assistance and rehabilitation to the wounded, could be highly effective in reducing the landmine casualty count and reclaiming land for its intended use. .......... DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS .......... TITLE XXVIII--GENERAL PROVISIONS LEGISLATIVE PROVISIONS ADOPTED .......... SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT .......... Report on closure and realignment of military installations (sec. 2824) The Senate amendment contained a provision (sec. 2832) that would require the Secretary of Defense to submit to the congressional defense committees a report on the costs and savings attributable to the four base closure rounds conducted under the base closure laws and on the need, if any, for additional base closure rounds. The report would have to be submitted not later than the fiscal year 2000 budget. The Congressional Budget Office and the Comptroller General would be required to conduct a review of the report. The provision would express a sense of Congress urging the Secretary to develop a system to quantify costs and savings attributable to the closure and realignment of military installations under the base closure process. The House bill contained no similar provision. The House recedes with an amendment that would include an assessment of the effect of previous base closure rounds on the military capabilities and the ability of the Armed Forces to fulfill the National Military Strategy. The amendment would also make certain technical corrections. Sense of Senate regarding utilization of savings derived from base closure process (sec. 2825) The Senate amendment contained a provision (sec. 2833) that would make it the sense of the Senate that the savings identified from base closure be made available to the Department of Defense solely for the purpose of modernization of weapons systems. The House bill contained no similar provision. The House recedes with a technical amendment.