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



DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS TITLE I--PROCUREMENT ............... 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 (d) Repeals of Superseded Provisions of Previous Defense Authorization Laws.--(1) Section 131 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104 106; 110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. ............ TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION ............ 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. 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. ................ TITLE III--OPERATION AND MAINTENANCE ................ SUBTITLE B--MILITARY READINESS ISSUES ................ 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)). .................. TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS .................. 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 IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT ............................. Subtitle B--Department of Defense Personnel Management SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS AND HEADQUARTERS SUPPORT ACTIVITIES. (a) In General.--(1) Chapter 3 of title 10, United States Code, is amended by adding at the end the following new section: ``130a. Management headquarters and headquarters support activities personnel: limitation ``(a) Limitation.--Effective October 1, 2002, the number of management headquarters and headquarters support activities personnel in the Department of Defense may not exceed 75 percent of the baseline number. ``(b) Phased Reduction.--The number of management headquarters and headquarters support activities personnel in the Department of Defense-- ``(1) as of October 1, 1998, may not exceed 95 percent of the baseline number; ``(2) as of October 1, 1999, may not exceed 90 percent of the baseline number; ``(3) as of October 1, 2000, may not exceed 85 percent of the baseline number; and ``(4) as of October 1, 2001, may not exceed 80 percent of the baseline number. ``(c) Baseline Number.--In this section, the term `baseline number' means the number of management headquarters and headquarters support activities personnel in the Department of Defense as of October 1, 1997. ``(d) Limitation on Management Headquarters and Headquarters Support Personnel Assigned to the United States Transportation Command.--(1) Effective October 1, 1998, the number of management headquarters activities and management headquarters support activities personnel assigned to, or employed in, the United States Transportation Command may not exceed the number equal to 95 percent of the number of such personnel as of October 1, 1997. ``(2) For purposes of paragraph (1), the United States Transportation Command shall be considered to include the following: ``(A) The United States Transportation Command Headquarters. ``(B) The Air Mobility Command of the Air Force. ``(C) The Military Sealift Command of the Navy. ``(D) The Military Traffic Management Command of the Army. ``(E) The Defense Courier Service. ``(F) Any other element of the Department of Defense assigned to the United States Transportation Command. ``(3) The Secretary of Defense may waive or suspend operation of paragraph (1) in the event of a war or national emergency. ``(e) Management Headquarters and Headquarters Support Activities Personnel Defined.--In this section: ``(1) The term `management headquarters and headquarters support activities personnel' means military and civilian personnel of the Department of Defense who are assigned to, or employed in, functions in management headquarters activities or in management headquarters support activities. ``(2) The terms `management headquarters activities' and `management headquarters support activities' have the meanings given those terms in Department of Defense Directive 5100.73, entitled `Department of Defense Management Headquarters and Headquarters Support Activities', as in effect on November 12, 1996. ``(f) Limitation on Reassignment of Functions.--In carrying out reductions in the number of personnel assigned to, or employed in, management headquarters and headquarters support activities in order to comply with this section, the Secretary of Defense and the Secretaries of the military departments may not reassign functions in order to evade the requirements of this section. ``(g) Flexibility.--If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (b) with respect to any fiscal year would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. If the Secretary of Defense determines, and certifies to Congress, that the limitation in subsection (a) during fiscal year 2001 would adversely affect United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. The authority under this subsection may be used only once, with respect to a single fiscal year.''. (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: ``130a. Management headquarters and headquarters support activities personnel: limitation.''. (b) Implementation Report.--Not later than January 15, 1998, the Secretary of Defense shall submit to Congress a report-- (1) containing a plan to achieve the personnel reductions required by section 130a of title 10, United States Code, as added by subsection (a); and (2) including the recommendations of the Secretary regarding-- (A) the revision, replacement, or augmentation of Department of Defense Directive 5100.73, entitled ``Department of Defense Management Headquarters and Headquarters Support Activities'', as in effect on November 12, 1996; and (B) the revision of the definitions of the terms ``management headquarters activities'' and ``management headquarters support activities'' under that Directive so that those terms apply uniformly throughout the Department of Defense. (c) Duties of Task Force on Defense Reform to Include Consideration Of Management Headquarters Activities.--(1) The Secretary of Defense shall require that the areas of study of the Task Force on Defense Reform (established by the Secretary of Defense on May 14, 1997, and headed by the Deputy Secretary of Defense) include an examination of the missions, functions, and responsibilities of the various management headquarters activities and management headquarters support activities of the Department of Defense. In carrying out that examination of those activities, the Task Force shall identify areas of duplication in those activities and recommend to the Secretary options to streamline, reduce, and eliminate redundancies. (2) The examination of the missions, functions, and responsibilities of the various management headquarters activities and management headquarters support activities of the Department of Defense under paragraph (1) shall include the following: (A) An assessment of benefits of consolidation or selected elimination of Department of Defense management headquarters activities and management headquarters support activities. (B) An assessment of the opportunities to streamline the management headquarters and management headquarters support infrastructure that were realized as a result of the enactment of the Federal Acquisition Streamlining Act of 1994 (Public Law 103 355) and the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104 106) or as result of other management reform initiatives implemented administratively during the period from 1993 through 1997. (C) An assessment of such other options for streamlining or restructuring the management headquarters and management headquarters support infrastructure as the Task Force considers appropriate and as can be carried out under existing provisions of law. (3) Not later than March 1, 1998, the Secretary of Defense shall submit to Congress a report on the results of the examination by the Task Force under this subsection. The Secretary shall include in the report any report to the Secretary from the Task Force with respect to the matters described in paragraphs (1) and (2). (d) Codification of Prior Permanent Limitation on OSD Personnel.--(1) Chapter 4 of title 10, United States Code, is amended by adding at the end a new section 143 consisting of-- (A) a heading as follows: ``143. Office of the Secretary of Defense personnel: limitation''; and (B) a text consisting of the text of subsections (a) through (f) of section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2617). (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: ``143. Office of the Secretary of Defense personnel: limitation.''. (3) Section 903 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104 201; 110 Stat. 2617) is repealed. SEC. 912. DEFENSE ACQUISITION WORKFORCE. (a) Reduction of Defense Acquisition Workforce.--(1) The Secretary of Defense shall accomplish reductions in defense acquisition personnel positions during fiscal year 1998 so that the total number of such personnel as of October 1, 1998, is less than the total number of such personnel as of October 1, 1997, by at least the applicable number determined under paragraph (2). (2)(A) The applicable number for purposes of paragraph (1) is 25,000. However, the Secretary of Defense may specify a lower number, which may not be less than 10,000, as the applicable number for purposes of paragraph (1) if the Secretary determines, and certifies to Congress not later than June 1, 1998, that an applicable number greater than the number specified by the Secretary would be inconsistent with the cost-effective management of the defense acquisition system to obtain best value equipment and would adversely affect military readiness. (B) The Secretary shall include with such a certification a detailed explanation of each of the matters certified. (C) The authority of the Secretary under subparagraph (A) may only be delegated to the Deputy Secretary of Defense. (3) For purposes of this subsection, the term ``defense acquisition personnel'' means military and civilian personnel (other than civilian personnel who are employed at a maintenance depot) who are assigned to, or employed in, acquisition organizations of the Department of Defense (as specified in Department of Defense Instruction numbered 5000.58 dated January 14, 1992). (b) Report on Specific Acquisition Positions Previously Eliminated.--Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on reductions in the defense acquisition workforce made since fiscal year 1989. The report shall show aggregate reductions by fiscal year and shall show for each fiscal year reductions identified by specific job title, classification, or position. The report shall also identify those reductions carried out pursuant to law (and how the Secretary implemented any statutory requirement for such reductions, including definition of the workforce subject to the reduction) and those reductions carried out as a result of base closures and realignments under the so-called BRAC process. The Secretary shall include in the report a definition of the term ``defense acquisition workforce'' that is to be applied uniformly throughout the Department of Defense. (c) Implementation Plan To Streamline and Improve Acquisition Organizations.--(1) Not later than April 1, 1998, the Secretary of Defense shall submit to Congress a report containing a plan to streamline the acquisition organizations, workforce, and infrastructure of the Department of Defense. The Secretary shall include with the report a detailed discussion of the recommendations of the Secretary based on the review under subsection (d) and the assessment of the Task Force on Defense Reform pursuant to subsection (e), together with a request for the enactment of any legislative changes necessary for implementation of the plan. The Secretary shall include in the report the results of the review under subsection (d) and the independent assessment of the Task Force on Defense Reform pursuant to subsection (e). (2) In carrying out this subsection and subsection (d), the Secretary of Defense shall formally consult with the Chairman of the Joint Chiefs of Staff, the Director of Program Analysis and Evaluation, the Under Secretary of Defense (Comptroller), and the Under Secretary for Acquisition and Technology. (d) Review of Acquisition Organizations and Functions.--The Secretary of Defense shall conduct a review of the organizations and functions of the Department of Defense acquisition activities and of the personnel required to carry out those functions. The review shall identify the following: (1) Opportunities for cross-service, cross-functional arrangements within the military services and defense agencies. (2) Specific areas of overlap, duplication, and redundancy among the various acquisition organizations. (3) Opportunities to further streamline acquisition processes. (4) Benefits of an enhanced Joint Requirements Oversight Council in the acquisition process. (5) Alternative consolidation options for acquisition organizations. (6) Alternative methods for performing industry oversight and quality assurance. (7) Alternative options to shorten the procurement cycle. (8) Alternative acquisition infrastructure reduction options within current authorities. (9) Alternative organizational arrangements that capitalize on core acquisition competencies among the military services and defense agencies. (10) Future acquisition personnel requirements of the Department. (11) Adequacy of the Program, Plans, and Budgeting System in fulfilling current and future acquisition needs of the Department. (12) Effect of technology and advanced management tools in the future acquisition system. (13) Applicability of more flexible alternative approaches to the current civil service system for the acquisition workforce. (14) Adequacy of Department of Defense Instruction numbered 5000.58 dated January 14, 1992. (e) Duties of Task Force on Defense Reform to Include Consideration Of Acquisition Organizations.--(1) The Secretary of Defense shall require that the areas of study of the Task Force on Defense Reform (established by the Secretary of Defense on May 14, 1997, and headed by the Deputy Secretary of Defense) include an examination of the missions, functions, and responsibilities of the various acquisition organizations of the Department of Defense, including the acquisition workforce of the Department. In carrying out that examination of those organizations and that workforce, the Task Force shall identify areas of duplication in defense acquisition organization and recommend to the Secretary options to streamline, reduce, and eliminate redundancies. (2) The examination of the missions, functions, and responsibilities of the various acquisition organizations of the Department of Defense under paragraph (1) shall include the following: (A) An assessment of benefits of consolidation or selected elimination of Department of Defense acquisition organizations. (B) An assessment of the opportunities to streamline the defense acquisition infrastructure that were realized as a result of the enactment of the Federal Acquisition Streamlining Act of 1994 (Public Law 103 355) and the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104 106) or as result of other acquisition reform initiatives implemented administratively during the period from 1993 through 1997. (C) An assessment of such other options for streamlining or restructuring the defense acquisition infrastructure as the Task Force considers appropriate and as can be carried out under existing provisions of law. (3) Not later than March 1, 1998, the Task Force shall submit to the Secretary a report on the results of its review of the acquisition organizations of the Department of Defense, including any recommendations of the Task Force for improvements to those organizations. (f) Technical Reference Correction.--Section 1721(c) of title 10, United States Code, is amended by striking out ``November 25, 1988'' and inserting in lieu thereof ``November 12, 1996''. ............... TITLE X--GENERAL PROVISIONS .................. Subtitle D--Miscellaneous Report Requirements and Repeals .................. SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS. (a) Findings.--Congress makes the following findings: (1) United States military forces have been withdrawn from the Philippines. (2) United States military forces are to be withdrawn from Panama by 2000. (3) There continues to be local opposition to the continued presence of United States military forces in Okinawa. (4) The Quadrennial Defense Review lists ``the loss of U.S. access to critical facilities and lines of communication in key regions'' as one of the so-called ``wild card'' scenarios covered in the review. (5) The National Defense Panel states that ``U.S. forces' long-term access to forward bases, to include air bases, ports, and logistics facilities, cannot be assumed''. (b) Sense of Congress.--It is the sense of Congress that-- (1) the President should develop alternatives to the current arrangement for forward basing of the Armed Forces outside the United States, including alternatives to the existing infrastructure for forward basing of forces and alternatives to the existing international agreements that provide for basing of United States forces in foreign countries; and (2) because the Pacific Rim continues to emerge as a region of significant economic and military importance to the United States, a continued presence of the Armed Forces in that region is vital to the capability of the United States to timely protect its interests in the region. (c) Report Required.--Not later than March 31, 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 overseas infrastructure requirements of the Armed Forces. (d) Content.--The report shall contain the following: (1) The quantity and types of forces that the United States must station in each region of the world in order to support the current national military strategy of the United States. (2) The quantity and types of forces that the United States will need to station in each region of the world in order to meet the expected or potential future threats to the national security interests of the United States. (3) The requirements for access to, and use of, air space and ground maneuver areas in each such region for training for the quantity and types of forces identified for the region pursuant to paragraphs (1) and (2). (4) A list of the international agreements, currently in force, that the United States has entered into with foreign countries regarding the basing of United States forces in those countries and the dates on which the agreements expire. (5) A discussion of any anticipated political opposition or other opposition to the renewal of any of those international agreements. (6) A discussion of future overseas basing requirements for United States forces, taking into account expected changes in national security strategy, national security environment, and weapons systems. (7) The expected costs of maintaining the overseas infrastructure for foreign based forces of the United States, including the costs of constructing any new facilities that will be necessary overseas to meet emerging requirements relating to the national security interests of the United States. (e) Form of Report.--The report may be submitted in a classified or unclassified form. ................. TITLE XII--MATTERS RELATING TO OTHER NATIONS ................. .............. SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED STATES MILITARY PERSONNEL IN THE EAST ASIA AND PACIFIC REGION. (a) Findings.--Congress finds the following: (1) The stability of the Asia-Pacific region is a matter of vital national interest affecting the well-being of all Americans. (2) The nations of the Pacific Rim collectively represent the United States largest trading partner and are expected to account for almost one-third of the world's economic activity by the start of the next century. (3) The increased reliance by the United States on trade and Middle East oil sources has reinforced United States security interests in the Southeast Asia shipping lanes through the South China Sea and the key straits of Malacca, Sunda, Lombok, and Makassar. (4) The South China Sea is an important area for United States Navy ships passing from the Pacific to the Indian Ocean and the Persian Gulf. (5) Maintaining freedom of navigation in the South China Sea is an important interest of the United States. (6) The threats of proliferation of weapons of mass destruction, the emerging nationalism amidst long-standing ethnic and national rivalries, and the unresolved territorial disputes combine to create a political landscape of potential instability and conflict in this region that could jeopardize the interests of the United States and the safety of United States nationals. (7) A critical component of the East Asia strategy of the United States is maintaining forward deployed forces in Asia to ensure broad regional stability, to help to deter aggression, to lessen the pressure for arms races, and to contribute to the political and economic advances of the region from which the United States benefits. (8) The forward presence of the United States in Northeast Asia enables the United States to respond to regional contingencies, to protect sea lines of communication, to sustain influence, and to support operations as distant as operations in the Persian Gulf. (9) The military forces of the United States serve to prevent the political or economic control of the Asia-Pacific region by a rival, hostile power or coalition of such powers, thus preventing any such group from obtaining control over the vast resources, enormous wealth, and advanced technology of the region. (10) Allies of the United States in the region can base their defense planning on a reliable American security commitment, a reduction of which could stimulate an arms buildup in the region. (11) The Joint Announcement of the United States-Japan Security Consultative Committee of December 1996, acknowledged that ``the forward presence of U.S. forces continues to be an essential element for pursuing our common security objectives''. (12) The United States and Japan signed the United States-Japan Security Declaration in April 1996, in which the United States reaffirmed its commitment to maintain this level of 100,000 United States military personnel in the region. (13) The United States military presence is recognized by the nations of the region as serving stability and enabling United States engagement. (14) The nations of East Asia and the Pacific consider the commitment of the forces of the United States to be so vital to their future that they scrutinize actions of the United States for any sign of weakened commitment to the security of the region. (15) The reduction of forward-based military forces could negatively affect the ability of the United States to contribute to the maintenance of peace and stability of the Asia and Pacific region. (16) Recognizing that while the United States must consider the overall capabilities of its forces in its decisions to deploy troops, nevertheless any reduction in the number of forward-based troops may reduce the perception of American capability and commitment in the region that cannot be completely offset by modernization of the remaining forces. (17) During time of crisis, deployment of forces to East Asia, even though such forces were previously removed from the area, might be deemed to be an act of provocation that could be used as a pretext by a hostile power for armed aggression within the region, and the existence of that possibility might hinder such a deployment. (18) Proposals to reduce the forward presence of the United States in the East Asia region or subordinate security interests to United States domestic budgetary concerns can erode the perception of the commitment of the United States to its alliances and interests in the region. (b) Sense of Congress.--It is the sense of Congress that the United States should maintain at least approximately 100,000 United States military personnel in the East Asia and Pacific region until such time as there is a peaceful and permanent resolution to the major security and political conflicts in the region. ................... SEC. 1309. ANNUAL REPORT ON MORATORIUM ON USE BY ARMED FORCES OF ANTIPERSONNEL LANDMINES. (a) Findings.--Congress makes the following findings: (1) The United States has stated its support for a ban on antipersonnel landmines that is global in scope and verifiable. (2) On May 16, 1996, the President announced that the United States, as a matter of policy, would eliminate its stockpile of non-self-destructing antipersonnel landmines, except those used for training purposes and in Korea, and that the United States would reserve the right to use self-destructing antipersonnel landmines in the event of conflict. (3) On May 16, 1996, the President also announced that the United States would lead an effort to negotiate an international treaty permanently banning the use of all antipersonnel landmines. (4) The United States is currently participating at the United Nations Conference on Disarmament in negotiations aimed at achieving a global ban on the use of antipersonnel landmines. (5) On August 18, 1997, the administration agreed to participate in international negotiations sponsored by Canada (the so-called ``Ottawa process'') designed to achieve a treaty that would outlaw the production, use, and sale of antipersonnel landmines. (6) On September 17, 1997, the President announced that the United States would not sign the antipersonnel landmine treaty concluded in Oslo, Norway, by participants in the Ottawa process because the treaty would not provide a geographic exception to allow the United States to stockpile and use antipersonnel landmines in Korea or an exemption that would preserve the ability of the United States to use mixed antitank mine systems which could be used to deter an armored assault against United States forces. (7) The President also announced a change in United States policy whereby the United States-- (A) would no longer deploy antipersonnel landmines, including self-destructing antipersonnel landmines, by 2003, except in Korea; (B) would seek to field alternatives by that date, or by 2006 in the case of Korea; (C) would undertake a new initiative in the United Nations Conference on Disarmament to establish a global ban on the transfer of antipersonnel landmines; and (D) would increase its current humanitarian demining activities around the world. (8) The President's decision would allow the continued use by United States forces of self-destructing antipersonnel landmines that are used as part of a mixed antitank mine system. (9) Under existing law (as provided in section 580 of Public Law 104 107; 110 Sat 751), on February 12, 1999, the United States will implement a one-year moratorium on the use of antipersonnel landmines by United States forces except along internationally recognized national borders or in demilitarized zones within a perimeter marked area that is monitored by military personnel and protected by adequate means to ensure the exclusion of civilians. (b) Sense of Congress.--It is the sense of Congress that-- (1) the United States should not implement a moratorium on the use of antipersonnel landmines by United States Armed Forces in a manner that would endanger United States personnel or undermine the military effectiveness of United States Armed Forces in executing their missions; and (2) the United States should pursue the development of alternatives to self-destructing antipersonnel landmines. (c) Annual Report.--Not later than December 31 each year, the Secretary of Defense shall submit to the congressional defense committees a report concerning antipersonnel landmines. Each such report shall include the Secretary's description of the following: (1) The military utility of the continued deployment and use by the United States of antipersonnel landmines. (2) The effect of a moratorium on the production, stockpiling, and use of antipersonnel landmines on the ability of United States forces to deter and defend against attack on land by hostile forces, including on the Korean peninsula. (3) Progress in developing and fielding systems that are effective substitutes for antipersonnel landmines, including an identification and description of the types of systems that are being developed and fielded, the costs associated with those systems, and the estimated timetable for developing and fielding those systems. (4) The effect of a moratorium on the use of antipersonnel landmines on the military effectiveness of current antitank mine systems. (5) The number and type of pure antipersonnel landmines that remain in the United States inventory and that are subject to elimination under the President's September 17, 1997, declaration on United States antipersonnel landmine policy. (6) The number and type of mixed antitank mine systems that are in the United States inventory, the locations where they are deployed, and their effect on the deterrence and warfighting ability of United States Armed Forces. (7) The effect of the elimination of pure antipersonnel landmines on the warfighting effectiveness of the United States Armed Forces. (8) The costs already incurred and anticipated of eliminating antipersonnel landmines from the United States inventory in accordance with the policy enunciated by the President on September 17, 1997. (9) The benefits that would result to United States military and civilian personnel from an international treaty banning the production, use, transfer, and stockpiling of antipersonnel landmines. ................ DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS .................. TITLE XXVIII--GENERAL PROVISIONS .................. Subtitle A--Military Construction Program and Military Family Housing Changes .................. SEC. 2824. REPORT ON CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS. (a) Report.--(1) The Secretary of Defense shall prepare and submit to the congressional defense committees a report on the costs and savings attributable to the rounds of base closures and realignments conducted under the base closure laws and on the need, if any, for additional rounds of base closures and realignments. (2) For purposes of this section, the term ``base closure laws'' means-- (A) Title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100 526; 10 U.S.C. 2687 note); and (B) 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). (b) Elements.--The report under subsection (a) shall include the following: (1) A statement, using data consistent with budget data, of the actual costs and savings (to the extent available for prior fiscal years) and the estimated costs and savings (in the case of future fiscal years) attributable to the closure and realignment of military installations as a result of the base closure laws. (2) A comparison, set forth by base closure round, of the actual costs and savings stated under paragraph (1) to the estimates of costs and savings submitted to the Defense Base Closure and Realignment Commission as part of the base closure process. (3) A comparison, set forth by base closure round, of the actual costs and savings stated under paragraph (1) to the annual estimates of costs and savings previously submitted to Congress. (4) A list of each military installation at which there is authorized to be employed 300 or more civilian personnel, set forth by Armed Force. (5) An estimate of current excess capacity at military installations, set forth-- (A) as a percentage of the total capacity of the military installations of the Armed Forces with respect to all military installations of the Armed Forces; (B) as a percentage of the total capacity of the military installations of each Armed Force with respect to the military installations of such Armed Force; and (C) as a percentage of the total capacity of a type of military installations with respect to military installations of such type. (6) An assessment of the effect of the previous base closure rounds on military capabilities and the ability of the Armed Forces to fulfill the National Military Strategy. (7) A description of the types of military installations that would be recommended for closure or realignment in the event of one or more additional base closure rounds, set forth by Armed Force. (8) The criteria to be used by the Secretary in evaluating military installations for closure or realignment in such event. (9) The methodologies to be used by the Secretary in identifying military installations for closure or realignment in such event. (10) An estimate of the costs and savings that the Secretary believes will be achieved as a result of the closure or realignment of military installations in such event, set forth by Armed Force and by year. (11) An assessment of whether the costs and estimated savings from one or more future rounds of base closures and realignments, currently unauthorized, are already contained in the current Future Years Defense Plan, and, if not, whether the Secretary will recommend modifications in future defense spending in order to accommodate such costs and savings. (c) Method of Presenting Information.--The statement and comparison required by paragraphs (1) and (2) of subsection (b) shall be set forth by Armed Force, type of facility, and fiscal year, and include the following: (1) Operation and maintenance costs, including costs associated with expanded operations and support, maintenance of property, administrative support, and allowances for housing at military installations to which functions are transferred as a result of the closure or realignment of other installations. (2) Military construction costs, including costs associated with rehabilitating, expanding, and constructing facilities to receive personnel and equipment that are transferred to military installations as a result of the closure or realignment of other installations. (3) Environmental cleanup costs, including costs associated with assessments and restoration. (4) Economic assistance costs, including-- (A) expenditures on Department of Defense demonstration projects relating to economic assistance; (B) expenditures by the Office of Economic Adjustment; and (C) to the extent available, expenditures by the Economic Development Administration, the Federal Aviation Administration, and the Department of Labor relating to economic assistance. (5) To the extent information is available, unemployment compensation costs, early retirement benefits (including benefits paid under section 5597 of title 5, United States Code), and worker retraining expenses under the Priority Placement Program, the Job Training Partnership Act, and any other Federally-funded job training program. (6) Costs associated with military health care. (7) Savings attributable to changes in military force structure. (8) Savings due to lower support costs with respect to military installations that are closed or realigned. (d) Deadline.--The Secretary shall submit the report under subsection (a) not later than the date on which the President submits to Congress the budget for fiscal year 2000 under section 1105(a) of title 31, United States Code. (e) Review.--The Congressional Budget Office and the Comptroller General shall conduct a review of the report prepared under subsection (a). (f) Prohibition on Use of Funds.--Except as necessary to prepare the report required subsection (a), no funds authorized to be appropriated or otherwise made available to the Department of Defense by this Act or any other Act may be used for the purposes of planning for, or collecting data in anticipation of, an authorization providing for procedures under which the closure and realignment of military installations may be accomplished, until the later of-- (1) the date on which the Secretary submits the report required by subsection (a); and (2) the date on which the Congressional Budget Office and the Comptroller General complete a review of the report under subsection (e). (g) Sense of Congress.--It is the sense of the Congress that-- (1) the Secretary should develop a system having the capacity to quantify the actual costs and savings attributable to the closure and realignment of military installations pursuant to the base closure process; and (2) the Secretary should develop the system in expedient fashion, so that the system may be used to quantify costs and savings attributable to the 1995 base closure round. SEC. 2825. SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS DERIVED FROM BASE CLOSURE PROCESS. (a) Findings.--The Senate makes the following findings: (1) Since 1988, the Department of Defense has conducted four rounds of closures and realignments of military installations in the United States, resulting in the closure of 97 installations. (2) The cost of carrying out the closure or realignment of installations covered by such rounds is estimated by the Secretary of Defense to be $23,000,000,000. (3) The savings expected as a result of the closure or realignment of such installations are estimated by the Secretary to be $10,300,000,000 through fiscal year 1996 and $36,600,000,000 through 2001. (4) In addition to such savings, the Secretary has estimated recurring savings as a result of the closure or realignment of such installations of approximately $5,600,000,000 annually. (5) The fiscal year 1997 budget request for the Department assumed a savings of between $2,000,000,000 and $3,000,000,000 as a result of the closure or realignment of such installations, which savings were to be dedicated to the modernization of the Armed Forces. The savings assumed in the budget request were not realized. (6) The fiscal year 1998 budget request for the Department assumes a savings of $5,000,000,000 as a result of the closure or realignment of such installations, which savings are to be dedicated to the modernization of the Armed Forces. (b) Sense of Senate on Use of Savings Resulting from Base Closure Process.--It is the sense of the Senate that the savings identified in the report under section 2824 should be made available to the Department of Defense solely for purposes of the modernization of new weapon systems (including research, development, test, and evaluation relating to such modernization) and should be used by the Department solely for such purposes.