Index


CONFERENCE REPORT ON H.R. 4103, DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1999 (House of Representatives - September 25, 1998)

[Page: H8657]

Mr. YOUNG of Florida submitted the following conference report and statement on the bill (H.R. 4103) making appropriations for the Department of Defense for the fiscal year ending September 30, 1999, and for other purposes:

Conference Report (H. Rept. 105-746)

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 4103) `making appropriations for the Department of Defense for the fiscal year ending September 30, 1999, and for other purposes,' having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate, and agree to the same with an amendment, as follows:

In lieu of the matter stricken and inserted by said amendment, insert:
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 1999, for military functions administered by the Department of Defense, and for other purposes, namely:

TITLE I

MILITARY PERSONNEL

Military Personnel, Army


For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $20,841,687,000.

Military Personnel, Navy


For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members of the Reserve provided for elsewhere), midshipmen, and aviation cadets; and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $16,570,754,000.

Military Personnel, Marine Corps


For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except members of the Reserve provided for elsewhere); and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $6,263,387,000.

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Military Personnel, Air Force


For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members of reserve components provided for elsewhere), cadets, and aviation cadets; and for payments pursuant to section 156 of Public Law 97-377, as amended (42 U.S.C. 402 note), to section 229(b) of the Social Security Act (42 U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $17,211,987,000.

Reserve Personnel, Army


For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Army Reserve on active duty under sections 10211, 10302, and 3038 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Reserve Officers' Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $2,167,052,000.

Reserve Personnel, Navy


For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Navy Reserve on active duty under section 10211 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty, and for members of the Reserve Officers' Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $1,426,663,000.

Reserve Personnel, Marine Corps


For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Marine Corps Reserve on active duty under section 10211 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty, and for members of the Marine Corps platoon leaders class, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $406,616,000.

Reserve Personnel, Air Force


For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Air Force Reserve on active duty under sections 10211, 10305, and 8038 of title 10, United States Code, or while serving on active duty under section 12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent duty or other duty, and for members of the Air Reserve Officers' Training Corps, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $852,324,000.

National Guard Personnel, Army


For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Army National Guard while on duty under section 10211, 10302, or 12402 of title 10 or section 708 of title 32, United States Code, or while serving on duty under section 12301(d) of title 10 or section 502(f) of title 32, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $3,489,987,000.

National Guard Personnel, Air Force


For pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for personnel of the Air National Guard on duty under section 10211, 10305, or 12402 of title 10 or section 708 of title 32, United States Code, or while serving on duty under section 12301(d) of title 10 or section 502(f) of title 32, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or other duty, and expenses authorized by section 16131 of title 10, United States Code; and for payments to the Department of Defense Military Retirement Fund; $1,377,109,000.

TITLE II

OPERATION AND MAINTENANCE

Operation and Maintenance, Army

(INCLUDING TRANSFER OF FUNDS)


For expenses, not otherwise provided for, necessary for the operation and maintenance of the Army, as authorized by law; and not to exceed $11,437,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Army, and payments may be made on his certificate of necessity for confidential military purposes; $17,185,623,000 and, in addition, $50,000,000 shall be derived by transfer from the National Defense Stockpile Transaction Fund: Provided, That of the funds appropriated in this paragraph, not less than $355,000,000 shall be made available only for conventional ammunition care and maintenance.

Operation and Maintenance, Navy

(INCLUDING TRANSFER OF FUNDS)


For expenses, not otherwise provided for, necessary for the operation and maintenance of the Navy and the Marine Corps, as authorized by law; and not to exceed $5,360,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential military purposes; $21,872,399,000 and, in addition, $50,000,000 shall be derived by transfer from the National Defense Stockpile Transaction Fund.

Operation and Maintenance, Marine Corps


For expenses, not otherwise provided for, necessary for the operation and maintenance of the Marine Corps, as authorized by law; $2,578,718,000.

Operation and Maintenance, Air Force

(INCLUDING TRANSFER OF FUNDS)


For expenses, not otherwise provided for, necessary for the operation and maintenance of the Air Force, as authorized by law; and not to exceed $7,968,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of the Air Force, and payments may be made on his certificate of necessity for confidential military purposes; $19,021,045,000 and, in addition, $50,000,000 shall be derived by transfer from the National Defense Stockpile Transaction Fund.

Operation and Maintenance, Defense-Wide


For expenses, not otherwise provided for, necessary for the operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law; $10,914,076,000, of which not to exceed $25,000,000 may be available for the CINC initiative fund account; and of which not to exceed $29,000,000 can be used for emergencies and extraordinary expenses, to be expended on the approval or authority of the Secretary of Defense, and payments may be made on his certificate of necessity for confidential military purposes: Provided, That of the funds appropriated under this heading, $10,000,000 shall be made available only for use in federally owned educational facilities located on military installations for the purpose of transferring title of such facilities to the local educational facilities.

Operation and Maintenance, Army Reserve


For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $1,202,622,000.

Operation and Maintenance, Navy Reserve


For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $957,239,000.

Operation and Maintenance, Marine Corps Reserve


For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Marine Corps Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $117,893,000.

Operation and Maintenance, Air Force Reserve


For expenses, not otherwise provided for, necessary for the operation and maintenance, including training, organization, and administration, of the Air Force Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $1,747,696,000.

Operation and Maintenance, Army National Guard


For expenses of training, organizing, and administering the Army National Guard, including medical and hospital treatment and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger motor vehicles; personnel services in the National Guard Bureau; travel expenses (other than mileage), as authorized by law for Army personnel on active duty, for Army National Guard division, regimental, and battalion commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying and equipping the Army National Guard as authorized by law; and expenses of repair, modification, maintenance, and issue of supplies and equipment (including aircraft); $2,678,015,000: Provided, That not later than March 15, 1999, the Director of the Army National Guard shall provide a report to the congressional defense committees identifying the allocation, by installation and activity, of all base operations funds appropriated under this heading.

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Operation and Maintenance, Air National Guard


For operation and maintenance of the Air National Guard, including medical and hospital treatment and related expenses in non-Federal hospitals; maintenance, operation, repair, and other necessary expenses of facilities for the training and administration of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of things, hire of passenger motor vehicles; supplies, materials, and equipment, as authorized by law for the Air National Guard; and expenses incident to the maintenance and use of supplies, materials, and equipment, including such as may be furnished from stocks under the control of agencies of the Department of Defense; travel expenses (other than mileage) on the same basis as authorized by law for Air National Guard personnel on active Federal duty, for Air National Guard commanders while inspecting units in compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; $3,106,933,000.

Overseas Contingency Operations Transfer Fund

(INCLUDING TRANSFER OF FUNDS)


For expenses directly relating to Overseas Contingency Operations by United States military forces; $439,400,000, to remain available until expended: Provided, That the Secretary of Defense may transfer these funds only to operation and maintenance accounts within this title, and to working capital funds: Provided further, That the funds transferred shall be merged with and shall be available for the same purposes and for the same time period, as the appropriation to which transferred: Provided further, That the transfer authority provided in this paragraph is in addition to any other transfer authority contained elsewhere in this Act.

United States Court of Appeals for the Armed Forces


For salaries and expenses necessary for the United States Court of Appeals for the Armed Forces; $7,324,000, of which not to exceed $2,500 can be used for official representation purposes.

Environmental Restoration, Army

(INCLUDING TRANSFER OF FUNDS)


For the Department of the Army, $370,640,000, to remain available until transferred: Provided, That the Secretary of the Army shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Army, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation:

Provided further, That not more than twenty-five per centum of funds provided under this heading may be obligated for environmental remediation by the Corps of Engineers under total environmental remediation contracts.

Environmental Restoration, Navy

(INCLUDING TRANSFER OF FUNDS)


For the Department of the Navy, $274,600,000, to remain available until transferred: Provided, That the Secretary of the Navy shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Navy, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Navy, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

Environmental Restoration, Air Force

(INCLUDING TRANSFER OF FUNDS)


For the Department of the Air Force, $372,100,000, to remain available until transferred: Provided, That the Secretary of the Air Force shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of the Air Force, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

Environmental Restoration, Defense-Wide

(INCLUDING TRANSFER OF FUNDS)


For the Department of Defense, $26,091,000, to remain available until transferred: Provided, That the Secretary of Defense shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris of the Department of Defense, or for similar purposes, transfer the funds made available by this appropriation to other appropriations made available to the Department of Defense, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

Environmental Restoration, Formerly Used Defense Sites

(INCLUDING TRANSFER OF FUNDS)


For the Department of the Army, $225,000,000, to remain available until transferred: Provided, That the Secretary of the Army shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste, removal of unsafe buildings and debris at sites formerly used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to be available for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part

of the funds transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to this appropriation.

Overseas Humanitarian, Disaster, and Civic Aid


For expenses relating to the Overseas Humanitarian, Disaster, and Civic Aid programs of the Department of Defense (consisting of the programs provided under sections 401, 402, 404, 2547, and 2551 of title 10, United States Code); $50,000,000, to remain available until September 30, 2000.

Former Soviet Union Threat Reduction


For assistance to the republics of the former Soviet Union, including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and storage of nuclear, chemical and other weapons; for establishing programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs relating to the training and support of defense and military personnel for demilitarization and protection of weapons, weapons components and weapons technology and expertise; $440,400,000, to remain available until September 30, 2001: Provided, That of the amounts provided under this heading, $35,000,000 shall be available only to support the dismantling and disposal of nuclear submarines and submarine reactor components in the Russian Far East.

Quality of Life Enhancements, Defense


For expenses, not otherwise provided for, resulting from unfunded shortfalls in the repair and maintenance of real property of the Department of Defense (including military housing and barracks); $455,000,000, for the maintenance of real property of the Department of Defense (including minor construction and major maintenance and repair), which shall remain available for obligation until September 30, 2000, as follows:

Army, $137,000,000;

Navy, $121,000,000;

Marine Corps, $27,000,000;

Air Force, $108,000,000;

Army Reserve, $26,000,000;

Navy Reserve, $12,400,000;

Marine Corps Reserve, $7,600,000;

Air Force Reserve, $6,000,000; and

Air National Guard, $10,000,000.

Pentagon Renovation Transfer Fund

(INCLUDING TRANSFER OF FUNDS)


For expenses, not otherwise provided for, resulting from the Department of Defense renovation of the Pentagon Reservation; $279,820,000 shall be derived by transfer from the Operation and Maintenance accounts in this Act, for the renovation of the Pentagon Reservation, which shall remain available for obligation until September 30, 2000, as follows:

Army, $96,000,000;

Navy, $32,087,000;

Marine Corps, $9,513,000;

Air Force, $52,200,000; and

Defense-Wide, $90,020,000.

TITLE III

PROCUREMENT

Aircraft Procurement, Army


For construction, procurement, production, modification, and modernization of aircraft, equipment, including

ordnance, ground handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,388,268,000, to remain available for obligation until September 30, 2001.

Missile Procurement, Army


For construction, procurement, production, modification, and modernization of missiles, equipment, including ordnance, ground handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,226,335,000, to remain available for obligation until September 30, 2001.

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Procurement of Weapons and Tracked Combat Vehicles, Army


For construction, procurement, production, and modification of weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,548,340,000, to remain available for obligation until September 30, 2001.

Procurement of Ammunition, Army


For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $1,065,955,000, to remain available for obligation until September 30, 2001.

Other Procurement, Army


For construction, procurement, production, and modification of vehicles, including tactical, support, and non-tracked combat vehicles; the purchase of not to exceed 37 passenger motor vehicles for replacement only; and the purchase of 54 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $230,000 per vehicle; communications and electronic equipment; other support equipment; spare parts, ordnance, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $3,339,486,000, to remain available for obligation until September 30, 2001.

Aircraft Procurement, Navy


For construction, procurement, production, modification, and modernization of aircraft, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; $7,541,709,000, to remain available for obligation until September 30, 2001.

Weapons Procurement, Navy


For construction, procurement, production, modification, and modernization of missiles, torpedoes, other weapons, and related support equipment including spare parts, and accessories therefor; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; $1,211,419,000, to remain available for obligation until September 30, 2001.

Procurement of Ammunition, Navy and Marine Corps


For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $484,203,000, to remain available for obligation until September 30, 2001.

Shipbuilding and Conversion, Navy


For expenses necessary for the construction, acquisition, or conversion of vessels as authorized by law, including armor and armament thereof, plant equipment, appliances, and machine tools and installation thereof in public and private plants; reserve plant and Government and contractor-owned equipment layaway; procurement of critical, long leadtime components and designs for vessels to be constructed or converted in the future; and expansion of public and private plants, including land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title, as follows:

NSSN, $1,498,165,000;

NSSN (AP), $504,736,000;

CVN-77 (AP), $124,515,000;

CVN Refuelings (AP), $274,980,000;

DDG-51 destroyer program, $2,667,078,000;

DDG-51 destroyer program (AP), $7,396,000;

LPD-17 amphibious transport dock ship, $638,780,000;

LHD-8 (AP), $45,000,000;

Oceanographic ship program, $60,341,000;

LCAC landing craft air cushion program, $16,000,000; and

For craft, outfitting, post delivery, conversions, and first destination transportation, $198,761,000;
In all: $6,035,752,000, to remain available for obligation until September 30, 2003: Provided, That additional

obligations may be incurred after September 30, 2003, for engineering services, tests, evaluations, and other such budgeted work that must be performed in the final stage of ship construction: Provided further, That none of the funds provided under this heading for the construction or conversion of any naval vessel to be constructed in shipyards in the United States shall be expended in foreign facilities for the construction of major components of such vessel: Provided further, That none of the funds provided under this heading shall be used for the construction of any naval vessel in foreign shipyards.

Other Procurement, Navy


For procurement, production, and modernization of support equipment and materials not otherwise provided for, Navy ordnance (except ordnance for new aircraft, new ships, and ships authorized for conversion); the purchase of not to exceed 246 passenger motor vehicles for replacement only; and the purchase of one vehicle required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $225,000 per vehicle; lease of passenger motor vehicles; expansion of public and private plants, including the land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; $4,072,662,000 to remain available for obligation until September 30, 2001.

Procurement, Marine Corps


For expenses necessary for the procurement, manufacture, and modification of missiles, armament, military equipment, spare parts, and accessories therefor; plant equipment, appliances, and machine tools, and installation thereof in public and private plants; reserve plant and Government and contractor-owned equipment layaway; vehicles for the Marine Corps, including the purchase of not to exceed 37 passenger motor vehicles for replacement only; and expansion of public and private plants, including land necessary therefor, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; $874,216,000, to remain available for obligation until September 30, 2001.

Aircraft Procurement, Air Force


For construction, procurement, and modification of aircraft and equipment, including armor and armament, specialized ground handling equipment, and training devices, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things; $8,095,507,000, to remain available for obligation until September 30, 2001.

Missile Procurement, Air Force


For construction, procurement, and modification of missiles, spacecraft, rockets, and related equipment, including spare parts and accessories therefor, ground handling equipment, and training devices; expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things; $2,069,827,000, to remain available for obligation until September 30, 2001.

Procurement of Ammunition, Air Force


For construction, procurement, production, and modification of ammunition, and accessories therefor; specialized equipment and training devices; expansion of public and private plants, including ammunition facilities authorized by section 2854 of title 10, United States Code, and the land necessary therefor, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; and procurement and installation of equipment, appliances, and machine tools in public and private plants; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes; $379,425,000, to remain available for obligation until September 30, 2001.

Other Procurement, Air Force


For procurement and modification of equipment (including ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of not to exceed 267 passenger motor vehicles for replacement only; the purchase of one vehicle required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $240,000 per vehicle; lease of passenger motor vehicles; and expansion of public and private plants, Government-owned equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon, prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; $6,960,483,000, to remain available for obligation until September 30, 2001.

[Page: H8661]

Procurement, Defense-Wide


For expenses of activities and agencies of the Department of Defense (other than the military departments) necessary for procurement, production, and modification of equipment, supplies, materials, and spare parts therefor, not otherwise provided for; the purchase of not to exceed 346 passenger motor vehicles for replacement only; the purchase of 4 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $165,000 per vehicle; expansion of public and private plants, equipment, and installation thereof in such plants, erection of structures, and acquisition of land for the foregoing purposes, and such lands and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; $1,944,833,000, to remain available for obligation until September 30, 2001.

National Guard and Reserve Equipment


For procurement of aircraft, missiles, tracked combat vehicles, ammunition, other weapons, and other procurement for the reserve components of the Armed Forces; $352,000,000, to remain available for obligation until September 30, 2001: Provided, That the Chiefs of the Reserve and National Guard components shall, not later than 30 days after the enactment of this Act, individually submit to the congressional defense committees the modernization priority assessment for their respective Reserve or National Guard component.

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

Research, Development, Test and Evaluation, Army


For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment; $5,031,788,000, to remain available for obligation until September 30, 2000: Provided, That of the funds made available under this heading, $15,000,000 shall be available only to commence in fiscal year 1999 a live fire, side-by-side operational test and evaluation of the air-to-air Starstreak and air-to-air Stinger missiles fired from the AH-64D Apache helicopter: Provided further, That in conjunction with the development of a test plan, the Secretary of the Army shall certify the following, in writing, to the congressional defense committees:

(1) Engagement tests can be safely conducted with both Starstreak and Stinger missiles from the AH-64D helicopter at air speeds consistent with the normal operating limits of that aircraft;

(2) The Starstreak missiles utilized in the test will be provided at no cost to the United States Government;

(3) None of the $15,000,000 provided will be used to develop modifications to the Starstreak or the Stinger missiles; and

(4) Both the Starstreak and Stinger missiles can be fired from the AH-64D aircraft consistent with the survivability of the aircraft and missile performance standards contained in the Army's Air-to-Air Missile Capability Need Statement approved by the Department of the Army in January 1997.

Research, Development, Test and Evaluation, Navy


For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment; $8,636,649,000, to remain available for obligation until September 30, 2000: Provided, That funds appropriated in this paragraph which are available for the V-22 may be used to meet unique requirements of the Special Operation Forces: Provided further, That notwithstanding 10 U.S.C. 2366, none of the funds made available under this heading may be used to conduct system-level live-fire shock tests on the SSN-21 class of submarines unless the Commander-in-Chief of the United States Atlantic Command certifies in writing to the congressional defense committees that such testing must be conducted to meet operational requirements for those submarines.

Research, Development, Test and Evaluation, Air Force


For expenses necessary for basic and applied scientific research, development, test and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment; $13,758,811,000, to remain available for obligation until September 30, 2000.

Research, Development, Test and Evaluation, Defense-Wide


For expenses of activities and agencies of the Department of Defense (other than the military departments), necessary for basic and applied scientific research, development, test and evaluation; advanced research projects as may be designated and determined by the Secretary of Defense, pursuant to law; maintenance, rehabilitation, lease, and operation of facilities and equipment; $9,036,551,000, to remain available for obligation until September 30, 2000: Provided, That not less than $310,446,000 of the funds made available under this heading shall be made available only for the Sea-Based Wide Area Defense (Navy Upper-Tier) program: Provided further, That funding for the Sea-Based Wide Area Defense (Navy Upper-Tier) program in this or any other Act shall be used for research, development and deployment including, but not limited to, continuing ongoing risk reduction activities, initiating system engineering for an initial Block I capability, and deployment at the earliest feasible time following Aegis Lightweight Exoatmospheric Projectile (LEAP) intercept flight tests.

Developmental Test and Evaluation, Defense


For expenses, not otherwise provided for, of independent activities of the Director, Test and Evaluation in the direction and supervision of developmental test and evaluation, including performance and joint developmental testing and evaluation; and administrative expenses in connection therewith; $258,606,000, to remain available for obligation until September 30, 2000.

Operational Test and Evaluation, Defense


For expenses, not otherwise provided for, necessary for the independent activities of the Director, Operational Test and Evaluation in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in connection therewith; $34,245,000, to remain available for obligation until September 30, 2000.

TITLE V

REVOLVING AND MANAGEMENT FUNDS

Defense Working Capital Funds


For the Defense Working Capital Funds; $94,500,000.

National Defense Sealift Fund

(INCLUDING TRANSFER OF FUNDS)


For National Defense Sealift Fund programs, projects, and activities, and for expenses of the National Defense Reserve Fleet, as established by section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744); $708,366,000, to remain available until expended: Provided, That none of the funds provided in this paragraph shall be used to award a new contract that provides for the acquisition of any of the following major components unless such components are manufactured in the United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (that is; engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard cranes: Provided further, That the exercise of an option in a contract awarded through the obligation of previously appropriated funds shall not be considered to be the award of a new contract: Provided further, That notwithstanding any other provision of law, of the funds available under this heading, $28,800,000 shall be transferred to `Alteration of Bridges': Provided further, That the Secretary of the military department responsible for such procurement may waive the restrictions in the first proviso on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes.

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

Defense Health Program


For expenses, not otherwise provided for, for medical and health care programs of the Department of Defense, as authorized by law; $10,149,872,000, of which $9,727,985,000 shall be for Operation and maintenance, of which not to exceed two per centum shall remain available until September 30, 2000, of which $402,387,000, to remain available for obligation until September 30, 2001, shall be for Procurement, and of which $19,500,000, to remain available for obligation until September 30, 2000, shall be for Research, development, test and evaluation: Provided, That of the amounts made available under this heading for Operation and maintenance, not less than $25,000,000 shall be only for breast cancer treatment and access to care.

Chemical Agents and Munitions Destruction, Army


For expenses, not otherwise provided for, necessary for the destruction of the United States stockpile of lethal chemical agents and munitions in accordance with the provisions of section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521), and for the destruction of other chemical warfare materials that are not in the chemical weapon stockpile; $780,150,000, of which $491,700,000 shall be for Operation and maintenance, $115,670,000 shall be for Procurement to remain available until September 30, 2001, and $172,780,000 shall be for Research, development, test and evaluation to remain available until September 30, 2000: Provided, That of the funds available under this heading, $1,000,000 shall be available until expended each year only for a Johnston Atoll off-island leave program: Provided further, That the Secretaries concerned shall, pursuant to uniform regulations, prescribe travel and transportation allowances for travel by participants in the off-island leave program.

Drug Interdiction and Counter-Drug Activities, Defense

(INCLUDING TRANSFER OF FUNDS)


For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United States Code; for Operation and maintenance; for Procurement; and for Research, development, test and evaluation; $735,582,000: Provided, That the funds appropriated under this heading shall be available for obligation for the same time period and for the same purpose as the appropriation to which transferred: Provided further, That the transfer authority provided in this paragraph is in addition to any transfer authority contained elsewhere in this Act.

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Office of the Inspector General


For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended; $132,064,000, of which $130,764,000 shall be for Operation and maintenance, of which not to exceed $500,000 is available for emergencies and extraordinary expenses to be expended on the approval or authority of the Inspector General, and payments may be made on his certificate of necessity for confidential military purposes; and of which $1,300,000, to remain available until September 30, 2001, shall be for Procurement.

TITLE VII

RELATED AGENCIES

Central Intelligence Agency Retirement and Disability System Fund


For payment to the Central Intelligence Agency Retirement and Disability System Fund, to maintain proper funding level for continuing the operation of the Central Intelligence Agency Retirement and Disability System; $201,500,000.

Intelligence Community Management Account

(INCLUDING TRANSFER OF FUNDS)


For necessary expenses of the Intelligence Community Management Account; $129,123,000, of which $30,290,000 for the Advanced Research and Development Committee shall remain available until September 30, 2000: Provided, That of the funds appropriated under this heading, $27,000,000 shall be transferred to the Department of Justice for the National Drug Intelligence Center to support the Department of Defense's counter-drug intelligence responsibilities, and of the said amount, $1,500,000 for Procurement shall remain available until September 30, 2001, and $3,000,000 for Research, development, test and evaluation shall remain available until September 30, 2000.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Fund


For payment to Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Fund, as authorized by law; $25,000,000, to remain available until expended.

National Security Education Trust Fund


For the purposes of title VIII of Public Law 102-183, $3,000,000, to be derived from the National Security Education Trust Fund, to remain available until expended.

TITLE VIII

GENERAL PROVISIONS


Sec. 8001. No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes not authorized by the Congress.
Sec. 8002. During the current fiscal year, provisions of law prohibiting the payment of compensation to, or employment of, any person not a citizen of the United States shall not apply to personnel of the Department of Defense: Provided, That salary increases granted to direct and indirect hire foreign national employees of the Department of Defense funded by this Act shall not be at a rate in excess of the percentage increase authorized by law for civilian employees of the Department of Defense whose pay is computed under the provisions of section 5332 of title 5, United States Code, or at a rate in excess of the percentage increase provided by the appropriate host nation to its own employees, whichever is higher: Provided further, That this section shall not apply to Department of Defense foreign service national employees serving at United States diplomatic missions whose pay is set by the Department of State under the Foreign Service Act of 1980: Provided further, That the limitations of this provision shall not apply to foreign national employees of the Department of Defense in the Republic of Turkey.
Sec. 8003. No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year, unless expressly so provided herein.
Sec. 8004. No more than 20 per centum of the appropriations in this Act which are limited for obligation during the current fiscal year shall be obligated during the last two months of the fiscal year: Provided, That this section shall not apply to obligations for support of active duty training of reserve components or summer camp training of the Reserve Officers' Training Corps.

(TRANSFER OF FUNDS)


Sec. 8005. Upon determination by the Secretary of Defense that such action is necessary in the national interest, he may, with the approval of the Office of Management and Budget, transfer not to exceed $1,650,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction) between such appropriations or funds or any subdivision thereof, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation or fund to which transferred: Provided, That such authority to transfer may not be used unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which funds are requested has been denied by Congress: Provided further, That the Secretary of Defense shall notify the Congress promptly of all transfers made pursuant to this authority or any other authority in this Act: Provided further, That no part of the funds in this Act shall be available to prepare or present a request to the Committees on Appropriations for reprogramming of funds, unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which reprogramming is requested has been denied by the Congress.

(TRANSFER OF FUNDS)


Sec. 8006. During the current fiscal year, cash balances in working capital funds of the Department of Defense established pursuant to section 2208 of title 10, United States Code, may be maintained in only such amounts as are necessary at any time for cash disbursements to be made from such funds: Provided, That transfers may be made between such funds: Provided further, That transfers may be made between working capital funds and the `Foreign Currency Fluctuations, Defense' appropriation and the `Operation and Maintenance' appropriation accounts in such amounts as may be determined by the Secretary of Defense, with the approval of the Office of Management and Budget, except that such transfers may not be made unless the Secretary of Defense has notified the Congress of the proposed transfer. Except in amounts equal to the amounts appropriated to working capital funds in this Act, no obligations may be made against a working capital fund to procure or increase the value of war reserve material inventory, unless the Secretary of Defense has notified the Congress prior to any such obligation.
Sec. 8007. Funds appropriated by this Act may not be used to initiate a special access program without prior notification 30 calendar days in session in advance to the congressional defense committees.
Sec. 8008. None of the funds provided in this Act shall be available to initiate: (1) a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract or that includes an unfunded contingent liability in excess of $20,000,000; or (2) a contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year, unless the congressional defense committees have been notified at least 30 days in advance of the proposed contract award: Provided, That no part of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government's liability: Provided further, That no part of any appropriation contained in this Act shall be available to initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed $500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated without 10-day prior notification to the congressional defense committees: Provided further, That the execution of multiyear authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.
Funds appropriated in title III of this Act may be used for multiyear procurement contracts as follows:

E-2C aircraft;

Longbow Hellfire missile; and

Medium Tactical Vehicle Replacement (MTVR).
Sec. 8009. Within the funds appropriated for the operation and maintenance of the Armed Forces, funds are hereby appropriated pursuant to section 401 of title 10, United States Code, for humanitarian and civic assistance costs under chapter 20 of title 10, United States Code. Such funds may also be obligated for humanitarian and civic assistance costs incidental to authorized operations and pursuant to authority granted in section 401 of chapter 20 of title 10, United States Code, and these obligations shall be reported to Congress on September 30 of each year: Provided, That funds available for operation and maintenance shall be available for providing humanitarian and similar assistance by using Civic Action Teams in the Trust Territories of the Pacific Islands and freely associated states of Micronesia, pursuant to the Compact of Free Association as authorized by Public Law 99-239: Provided further, That upon a determination by the Secretary of the Army that such action is beneficial for graduate medical education programs conducted at Army medical facilities located in Hawaii, the Secretary of the Army may authorize the provision of medical services at such facilities and transportation to such facilities, on a nonreimbursable basis, for civilian patients from American Samoa, the Commonwealth of the Northern Mariana Islands, the Marshall Islands, the Federated States of Micronesia, Palau, and Guam.
Sec. 8010. (a) During fiscal year 1999, the civilian personnel of the Department of Defense may not be managed on the basis of any end-strength, and the management of such personnel during that fiscal year shall not be subject to any constraint or limitation (known as an end-strength) on the number of such personnel who may be employed on the last day of such fiscal year.
(b) The fiscal year 2000 budget request for the Department of Defense as well as all justification material and other documentation supporting the fiscal year 2000 Department of Defense budget request shall be prepared and submitted to the Congress as if subsections (a) and (b) of this provision were effective with regard to fiscal year 2000.
(c) Nothing in this section shall be construed to apply to military (civilian) technicians.

Sec. 8011. Notwithstanding any other provision of law, none of the funds made available by this Act shall be used by the Department of Defense to exceed, outside the 50 United States, its territories, and the District of Columbia, 125,000 civilian workyears: Provided, That workyears shall be applied as defined in the Federal Personnel Manual: Provided further, That workyears expended in dependent student hiring programs for disadvantaged youths shall not be included in this workyear limitation.
Sec. 8012. None of the funds made available by this Act shall be used in any way, directly or indirectly, to influence congressional action on any legislation or appropriation matters pending before the Congress.
Sec. 8013. (a) None of the funds appropriated by this Act shall be used to make contributions to the Department of Defense Education Benefits Fund pursuant to section 2006(g) of title 10, United States Code, representing the normal cost for future benefits under section 3015(c) of title 38, United States Code, for any member of the armed services who, on or after the date of enactment of this Act--

(1) enlists in the armed services for a period of active duty of less than three years; or

(2) receives an enlistment bonus under section 308a or 308f of title 37, United States Code,
nor shall any amounts representing the normal cost of such future benefits be transferred from the Fund by the Secretary of the Treasury to the Secretary of Veterans Affairs pursuant to section 2006(d) of title 10, United States Code; nor shall the Secretary of Veterans Affairs pay such benefits to any such member: Provided, That in the case of a member covered by clause (1), these limitations shall not apply to members in combat arms skills or to members who enlist in the armed services on or after July 1, 1989, under a program continued or established by the Secretary of Defense in fiscal year 1991 to test the cost-effective use of special recruiting incentives involving not more than nineteen noncombat arms skills approved in advance by the Secretary of Defense: Provided further, That this subsection applies only to active components of the Army.
(b) None of the funds appropriated by this Act shall be available for the basic pay and allowances of any member of the Army participating as a full-time student and receiving benefits paid by the Secretary of Veterans Affairs from the Department of Defense Education Benefits Fund when time spent as a full-time student is credited toward completion of a service commitment: Provided, That this subsection shall not apply to those members who have reenlisted with this option prior to October 1, 1987: Provided further, That this subsection applies only to active components of the Army.
Sec. 8014. None of the funds appropriated by this Act shall be available to convert to contractor performance an activity or function of the Department of Defense that, on or after the date of enactment of this Act, is performed by more than ten Department of Defense civilian employees until a most efficient and cost-effective organization analysis is completed on such activity or function and certification of the analysis is made to the Committees on Appropriations of the House of Representatives and the Senate: Provided, That this section and subsections (a), (b), and (c) of 10 U.S.C. 2461 shall not apply to a commercial or industrial type function of the Department of Defense that: (1) is included on the procurement list established pursuant to section 2 of the Act of June 25, 1938 (41 U.S.C. 47), popularly referred to as the Javits-Wagner-O'Day Act; (2) is planned to be converted to performance by a qualified nonprofit agency for the blind or by a qualified nonprofit agency for other severely handicapped individuals in accordance with that Act; or (3) is planned to be converted to performance by a qualified firm under 51 per centum Native American ownership.

[Page: H8663]

(TRANSFER OF FUNDS)


Sec. 8015. Funds appropriated in title III of this Act for the Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), as amended, under the authority of this provision or any other transfer authority contained in this Act.
Sec. 8016. None of the funds in this Act may be available for the purchase by the Department of Defense (and its departments and agencies) of welded shipboard anchor and mooring chain 4 inches in diameter and under unless the anchor and mooring chain are manufactured in the United States from components which are substantially manufactured in the United States: Provided, That for the purpose of this section manufactured will include cutting, heat treating, quality control, testing of chain and welding (including the forging and shot blasting process): Provided further, That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost of the components produced or manufactured in the United States exceeds the aggregate cost of the components produced or manufactured outside the United States: Provided further, That when adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis, the Secretary of the service responsible for the procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations that such an acquisition must be made in order to acquire capability for national security purposes.
Sec. 8017. None of the funds appropriated by this Act available for the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) shall be available for the reimbursement of any health care provider for inpatient mental health service for care received when a patient is referred to a provider of inpatient mental health care or residential treatment care by a medical or health care professional having an economic interest in the facility to which the patient is referred: Provided, That this limitation does not apply in the case of inpatient mental health services provided under the program for the handicapped under subsection (d) of section 1079 of title 10, United States Code, provided as partial hospital care, or provided pursuant to a waiver authorized by the Secretary of Defense because of medical or psychological circumstances of the patient that are confirmed by a health professional who is not a Federal employee after a review, pursuant to rules prescribed by the Secretary, which takes into account the appropriate level of care for the patient, the intensity of services required by the patient, and the availability of that care.
Sec. 8018. Funds available in this Act may be used to provide transportation for the next-of-kin of individuals who have been prisoners of war or missing in action from the Vietnam era to an annual meeting in the United States, under such regulations as the Secretary of Defense may prescribe.
Sec. 8019. Notwithstanding any other provision of law, during the current fiscal year, the Secretary of Defense may, by executive agreement, establish with host nation governments in NATO member states a separate account into which such residual value amounts negotiated in the return of United States military installations in NATO member states may be deposited, in the currency of the host nation, in lieu of direct monetary transfers to the United States Treasury: Provided, That such credits may be utilized only for the construction of facilities to support United States military forces in that host nation, or such real property maintenance and base operating costs that are currently executed through monetary transfers to such host nations: Provided further, That the Department of Defense's budget submission for fiscal year 2000 shall identify such sums anticipated in residual value settlements, and identify such construction, real property maintenance or base operating costs that shall be funded by the host nation through such credits: Provided further, That all military construction projects to be executed from such accounts must be previously approved in a prior Act of Congress: Provided further, That each such executive agreement with a NATO member host nation shall be reported to the congressional defense committees, the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate 30 days prior to the conclusion and endorsement of any such agreement established under this provision.
Sec. 8020. None of the funds available to the Department of Defense may be used to demilitarize or dispose of M-1 Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or M-1911 pistols.
Sec. 8021. Notwithstanding any other provision of law, none of the funds appropriated by this Act shall be available to pay more than 50 per centum of an amount paid to any person under section 308 of title 37, United States Code, in a lump sum.

Sec. 8022. No more than $500,000 of the funds appropriated or made available in this Act shall be used during a single fiscal year for any single relocation of an organization, unit, activity or function of the Department of Defense into or within the National Capital Region: Provided, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the congressional defense committees that such a relocation is required in the best interest of the Government.
Sec. 8023. A member of a reserve component whose unit or whose residence is located in a State which is not contiguous with another State is authorized to travel in a space required status on aircraft of the Armed Forces between home and place of inactive duty training, or place of duty in lieu of unit training assembly, when there is no road or railroad transportation (or combination of road and railroad transportation between those locations): Provided, That a member traveling in that status on a military aircraft pursuant to the authority provided in this section is not authorized to receive travel, transportation, or per diem allowances in connection with that travel.
Sec. 8024. (a) In addition to the funds provided elsewhere in this Act, $8,000,000 is appropriated only for incentive payments authorized by section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544): Provided, That contractors participating in the test program established by section 854 of Public Law 101-189 (15 U.S.C. 637 note) shall be eligible for the program established by section 504 of the Indian Financing Act of 1974 (25 U.S.C. 1544).
(b) Section 8024 of the Department of Defense Appropriations Act (Public Law 105-56) is amended by striking out `That these payments' and all that follows through `Provided further,'.
Sec. 8025. During the current fiscal year, funds appropriated or otherwise available for any Federal agency, the Congress, the judicial branch, or the District of Columbia may be used for the pay, allowances, and benefits of an employee as defined by section 2105 of title 5, United States Code, or an individual employed by the government of the District of Columbia, permanent or temporary indefinite, who--

(1) is a member of a Reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code, or the National Guard, as described in section 101 of title 32, United States Code;

(2) performs, for the purpose of providing military aid to enforce the law or providing assistance to civil authorities in the protection or saving of life or property or prevention of injury--

(A) Federal service under sections 331, 332, 333, or 12406 of title 10, or other provision of law, as applicable; or

(B) full-time military service for his or her State, the District of Columbia, the Commonwealth of Puerto Rico, or a territory of the United States; and

(3) requests and is granted--

(A) leave under the authority of this section; or

(B) annual leave, which may be granted without regard to the provisions of sections 5519 and 6323(b) of title 5, if such employee is otherwise entitled to such annual leave:
Provided, That any employee who requests leave under subsection (3)(A) for service described in subsection (2) of this section is entitled to such leave, subject to the provisions of this section and of the last sentence of section 6323(b) of title 5, and such leave shall be considered leave under section 6323(b) of title 5, United States Code.
Sec. 8026. None of the funds appropriated by this Act shall be available to perform any cost study pursuant to the provisions of OMB Circular A-76 if the study being

performed exceeds a period of 24 months after initiation of such study with respect to a single function activity or 48 months after initiation of such study for a multi-function activity.
Sec. 8027. Funds appropriated by this Act for the American Forces Information Service shall not be used for any national or international political or psychological activities.
Sec. 8028. Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian employees hired for certain health care occupations as authorized for the Secretary of Veterans Affairs by section 7455 of title 38, United States Code.
Sec. 8029. None of the funds appropriated or made available in this Act shall be used to reduce or disestablish the operation of the 53rd Weather Reconnaissance Squadron of the Air Force Reserve, if such action would reduce the WC-130 Weather Reconnaissance mission below the levels funded in this Act.
Sec. 8030. (a) Of the funds for the procurement of supplies or services appropriated by this Act, qualified nonprofit agencies for the blind or other severely handicapped shall be afforded the maximum practicable opportunity to participate as subcontractors and suppliers in the performance of contracts let by the Department of Defense.
(b) During the current fiscal year, a business concern which has negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be given credit toward meeting that subcontracting goal for any purchases made from qualified nonprofit agencies for the blind or other severely handicapped.
(c) For the purpose of this section, the phrase `qualified nonprofit agency for the blind or other severely handicapped' means a nonprofit agency for the blind or other severely handicapped that has been approved by the Committee for the Purchase from the Blind and Other Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).
Sec. 8031. During the current fiscal year, net receipts pursuant to collections from third party payers pursuant to section 1095 of title 10, United States Code, shall be made available to the local facility of the uniformed services responsible for the collections and shall be over and above the facility's direct budget amount.
Sec. 8032. During the current fiscal year, the Department of Defense is authorized to incur obligations of not to exceed $350,000,000 for purposes specified in section 2350j(c) of title 10, United States Code, in anticipation of receipt of contributions, only from the Government of Kuwait, under that section: Provided, That upon receipt, such contributions from the Government of Kuwait shall be credited to the appropriations or fund which incurred such obligations.
Sec. 8033. Of the funds made available in this Act, not less than $28,300,000 shall be available for the Civil Air Patrol Corporation, of which $23,497,000 shall be available for Civil Air Patrol Corporation operation and maintenance to support readiness activities which includes $3,800,000 for the Civil Air Patrol counterdrug program: Provided, That funds identified for `Civil Air Patrol' under this section are intended for and shall be for the exclusive use of the Civil Air Patrol Corporation and not for the Air Force or any unit thereof.
Sec. 8034. (a) None of the funds appropriated in this Act are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC), either as a new entity, or as a separate entity administrated by an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs and other non-profit entities.

(b) Limitation on Compensation--Federally Funded Research and Development Center (FFRDC): No member of a Board of Directors, Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting Committee, or any similar entity of a defense FFRDC, and no paid consultant to any defense FFRDC, except when acting in a technical advisory capacity, may be compensated for his or her services as a member of such entity, or as a paid consultant by more than one FFRDC in a fiscal year: Provided, That a member of any such entity referred to previously in this subsection shall be allowed travel expenses and per diem as authorized under the Federal Joint Travel Regulations, when engaged in the performance of membership duties.
(c) Notwithstanding any other provision of law, none of the funds available to the department from any source during fiscal year 1999 may be used by a defense FFRDC, through a fee or other payment mechanism, for construction of new buildings, for payment of cost sharing for projects funded by government grants, for absorption of contract overruns, or for certain charitable contributions, not to include employee participation in community service and/or development.
(d) Notwithstanding any other provision of law, of the funds available to the department during fiscal year 1999, not more than 6,206 staff years of technical effort (staff years) may be funded for defense FFRDCs: Provided, That of the specific amount referred to previously in this subsection, not more than 1,105 staff years may be funded for the defense studies and analysis FFRDCs.
(e) Within 60 days after enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report presenting the specific amounts of staff years of technical effort to be allocated by the department for each defense FFRDC during fiscal year 1999: Provided, That, after the submission of the report required by this subsection, the department may not reallocate more than five per centum of an FFRDC's staff years among other defense FFRDCs until 30 days after a detailed justification for any such reallocation is submitted to the congressional defense committees.
(f) The Secretary of Defense shall, with the submission of the department's fiscal year 2000 budget request, submit a report presenting the specific amounts of staff years of technical effort to be allocated for each defense FFRDC during that fiscal year.
(g) Notwithstanding any other provision of law, the Secretary of Defense shall control the total number of staff years to be performed by defense FFRDCs during fiscal year 1999 so as to reduce the total amounts appropriated in titles II, III, and IV of this Act by $62,000,000: Provided, That the total amounts appropriated in titles II, III, and IV of this Act are hereby reduced by $62,000,000 to reflect savings from the use of defense FFRDCs by the department.
(h) Notwithstanding any other provision of law, none of the reductions for advisory and assistance services contained in this Act shall be applied to defense FFRDCs.
Sec. 8035. None of the funds appropriated or made available in this Act shall be used to procure carbon, alloy or armor steel plate for use in any Government-owned facility or property under the control of the Department of Defense which were not melted and rolled in the United States or Canada: Provided, That these procurement restrictions shall apply to any and all Federal Supply Class 9515, American Society of Testing and Materials (ASTM) or American Iron and Steel Institute (AISI) specifications of carbon, alloy or armor steel plate: Provided further, That the Secretary of the military department responsible for the procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order

to acquire capability for national security purposes: Provided further, That these restrictions shall not apply to contracts which are in being as of the date of enactment of this Act.
Sec. 8036. For the purposes of this Act, the term `congressional defense committees' means the National Security Committee of the House of Representatives, the Armed Services Committee of the Senate, the Subcommittee on Defense of the Committee on Appropriations of the Senate, and the Subcommittee on National Security of the Committee on Appropriations of the House of Representatives.
Sec. 8037. During the current fiscal year, the Department of Defense may acquire the modification, depot maintenance and repair of aircraft, vehicles and vessels as well as the production of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities and private firms: Provided, That the Senior Acquisition Executive of the military department or defense agency concerned, with power of delegation, shall certify that successful bids include comparable estimates of all direct and indirect costs for both public and private bids: Provided further, That Office of Management and Budget Circular A-76 shall not apply to competitions conducted under this section.
Sec. 8038. (a)(1) If the Secretary of Defense, after consultation with the United States Trade Representative, determines that a foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating against certain types of products produced in the United States that are covered by the agreement, the Secretary of Defense shall rescind the Secretary's blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.
(2) An agreement referred to in paragraph (1) is any reciprocal defense procurement memorandum of understanding, between the United States and a foreign country pursuant to which the Secretary of Defense has prospectively waived the Buy American Act for certain products in that country.
(b) The Secretary of Defense shall submit to Congress a report on the amount of Department of Defense purchases from foreign entities in fiscal year 1999. Such report shall separately indicate the dollar value of items for which the Buy American Act was waived pursuant to any agreement described in subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any international agreement to which the United States is a party.
(c) For purposes of this section, the term `Buy American Act' means title III of the Act entitled `An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes', approved March 3, 1933 (41 U.S.C. 10a et seq.).
Sec. 8039. Appropriations contained in this Act that remain available at the end of the current fiscal year as a result of energy cost savings realized by the Department of Defense shall remain available for obligation for the next fiscal year to the extent, and for the purposes, provided in section 2865 of title 10, United States Code.

[Page: H8665]

(INCLUDING TRANSFER OF FUNDS)


Sec. 8040. Amounts deposited during the current fiscal year to the special account established under 40 U.S.C. 485(h)(2) and to the special account established under 10 U.S.C. 2667(d)(1) are appropriated and shall be available until transferred by the Secretary of Defense to current applicable appropriations or funds of the Department of Defense under the terms and conditions specified by 40 U.S.C. 485(h)(2)(A) and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be available for the same time period and the same purposes as the appropriation to which transferred.

Sec. 8041. During the current fiscal year, appropriations available to the Department of Defense may be used to reimburse a member of a reserve component of the Armed Forces who is not otherwise entitled to travel and transportation allowances and who occupies transient government housing while performing active duty for training or inactive duty training: Provided, That such members may be provided lodging in kind if transient government quarters are unavailable as if the member was entitled to such allowances under subsection (a) of section 404 of title 37, United States Code: Provided further, That if lodging in kind is provided, any authorized service charge or cost of such lodging may be paid directly from funds appropriated for operation and maintenance of the reserve component of the member concerned.
Sec. 8042. The President shall include with each budget for a fiscal year submitted to the Congress under section 1105 of title 31, United States Code, materials that shall identify clearly and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the Defense Agencies.
Sec. 8043. Notwithstanding any other provision of law, funds available for `Drug Interdiction and Counter-Drug Activities, Defense' may be obligated for the Young Marines program.
Sec. 8044. During the current fiscal year, amounts contained in the Department of Defense Overseas Military Facility Investment Recovery Account established by section 2921(c)(1) of the National Defense Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 2687 note) shall be available until expended for the payments specified by section 2921(c)(2) of that Act: Provided, That none of the funds made available for expenditure under this section may be transferred or obligated until thirty days after the Secretary of Defense submits a report which details the balance available in the Overseas Military Facility Investment Recovery Account, all projected income into the account during fiscal years 1999 and 2000, and the specific expenditures to be made using funds transferred from this account during fiscal year 1999.
Sec. 8045. Of the funds appropriated or otherwise made available by this Act, not more than $119,200,000 shall be available for payment of the operating costs of NATO Headquarters: Provided, That the Secretary of Defense may waive this section for Department of Defense support provided to NATO forces in and around the former Yugoslavia.

Sec. 8046. During the current fiscal year, appropriations which are available to the Department of Defense for operation and maintenance may be used to purchase items having an investment item unit cost of not more than $100,000.
Sec. 8047. (a) During the current fiscal year, none of the appropriations or funds available to the Department of Defense Working Capital Funds shall be used for the purchase of an investment item for the purpose of acquiring a new inventory item for sale or anticipated sale during the current fiscal year or a subsequent fiscal year to customers of the Department of Defense Working Capital Funds if such an item would not have been chargeable to the Department of Defense Business Operations Fund during fiscal year 1994 and if the purchase of such an investment item would be chargeable during the current fiscal year to appropriations made to the Department of Defense for procurement.
(b) The fiscal year 2000 budget request for the Department of Defense as well as all justification material and other documentation supporting the fiscal year 2000 Department of Defense budget shall be prepared and submitted to the Congress on the basis that any equipment which was classified as an end item and funded in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 2000 procurement appropriation and not in the supply management business area or any other area or category of the Department of Defense Working Capital Funds.
Sec. 8048. None of the funds appropriated by this Act for programs of the Central Intelligence Agency shall remain available for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 2000: Provided, That funds appropriated, transferred, or otherwise credited to the Central Intelligence Agency Central Services Working Capital Fund during this or any prior or subsequent fiscal year shall remain available until expended.
Sec. 8049. Notwithstanding any other provision of law, funds made available in this Act for the Defense Intelligence Agency may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and intelligence information systems for the Services, the Unified and Specified Commands, and the component commands.
Sec. 8050. Of the funds appropriated by the Department of Defense under the heading `Operation and Maintenance, Defense-Wide', not less than $8,000,000 shall be made available only for the mitigation of environmental impacts, including training and technical assistance to tribes, related administrative support, the gathering of information, documenting of environmental damage, and developing a system for prioritization of mitigation and cost to complete estimates for mitigation, on Indian lands resulting from Department of Defense activities.
Sec. 8051. Amounts collected for the use of the facilities of the National Science Center for Communications and Electronics during the current fiscal year pursuant to section 1459(g) of the Department of Defense Authorization Act, 1986, and deposited to the special account established under subsection 1459(g)(2) of that Act are appropriated and shall be available until expended for the operation and maintenance of the Center as provided for in subsection 1459(g)(2).
Sec. 8052. None of the funds appropriated in this Act may be used to fill the commander's position at any military medical facility with a health care professional unless the prospective candidate can demonstrate professional administrative skills.
Sec. 8053. (a) None of the funds appropriated in this Act may be expended by an entity of the Department of Defense unless the entity, in expending the funds, complies with the Buy American Act. For purposes of this subsection, the term `Buy American Act' means title III of the Act entitled `An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes', approved March 3, 1933 (41 U.S.C. 10a et seq.).
(b) If the Secretary of Defense determines that a person has been convicted of intentionally affixing a label bearing a `Made in America' inscription to any product sold in or shipped to the United States that is not made in America, the Secretary shall determine, in accordance with section 2410f of title 10, United States Code, whether the person should be debarred from contracting with the Department of Defense.
(c) In the case of any equipment or products purchased with appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending the appropriation, purchase only American-made equipment and products, provided that American-made equipment and products are cost-competitive, quality-competitive, and available in a timely fashion.
Sec. 8054. None of the funds appropriated by this Act shall be available for a contract for studies, analysis, or consulting services entered into without competition on the basis of an unsolicited proposal unless the head of the activity responsible for the procurement determines--

(1) as a result of thorough technical evaluation, only one source is found fully qualified to perform the proposed work;

(2) the purpose of the contract is to explore an unsolicited proposal which offers significant scientific or technological promise, represents the product of original thinking, and was submitted in confidence by one source; or

(3) the purpose of the contract is to take advantage of unique and significant industrial accomplishment by a specific concern, or to insure that a new product or idea of a specific concern is given financial support:
Provided, That this limitation shall not apply to contracts in an amount of less than $25,000, contracts related to improvements of equipment that is in development or production, or contracts as to which a civilian official of the Department of Defense, who has been confirmed by the Senate, determines that the award of such contract is in the interest of the national defense.
Sec. 8055. (a) Except as provided in subsections (b) and (c), none of the funds made available by this Act may be used--

(1) to establish a field operating agency; or

(2) to pay the basic pay of a member of the Armed Forces or civilian employee of the department who is transferred or reassigned from a headquarters activity if the member or employee's place of duty remains at the location of that headquarters.
(b) The Secretary of Defense or Secretary of a military department may waive the limitations in subsection (a), on a case-by-case basis, if the Secretary determines, and certifies to the Committees on Appropriations of the House of Representatives and Senate that the granting of the waiver will reduce the personnel requirements or the financial requirements of the department.
(c) This section does not apply to field operating agencies funded within the National Foreign Intelligence Program.
Sec. 8056. Funds appropriated by this Act for intelligence activities are deemed to be specifically authorized by the Congress for purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 414) during fiscal year 1999 until the enactment of the Intelligence Authorization Act for Fiscal Year 1999.
Sec. 8057. Notwithstanding section 303 of Public Law 96-487 or any other provision of law, the Secretary of the Navy is authorized to lease real and personal property at Naval Air Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes: Provided, That notwithstanding any other provision of law, the Secretary of the Navy may remove hazardous materials from facilities, buildings, and structures at Adak, Alaska, and may demolish or otherwise dispose of such facilities, buildings, and structures.

[Page: H8666]

(RESCISSIONS)


Sec. 8058. Of the funds provided in Department of Defense Appropriations Acts, the following funds are hereby rescinded as of the date of enactment of this Act from the following accounts and programs in the specified amounts:

Under the heading, `Shipbuilding and Conversion, Navy, 1988/2001':

TRIDENT ballistic missile submarine program, $3,062,696;

SSN-688 attack submarine program, $8,146,796;

CG-47 cruiser program, $4,000,000;

LSD-41 cargo variant ship program, $256,141;

LHD-1 amphibious assault ship program, $505,938;

For craft, outfitting, and post delivery, $3,459,756;

Under the heading, `Shipbuilding and Conversion, Navy, 1989/2000':

TRIDENT ballistic missile submarine program, $2,750,679;

SSN-688 attack submarine program, $5,663,109;

AO conversion program, $881,619;

T-AGOS surveillance ship program, $1,989,383;

T-AO fleet oiler program, $3,451,287;

MHC coastal mine hunter program, $150,000;

For craft, outfitting, and post delivery, $2,521,413;

Under the heading, `Shipbuilding and Conversion, Navy, 1990/2002':

TRIDENT ballistic missile submarine program, $6,746,000;

LSD-41 cargo variant ship program, $8,701,615;

Aircraft carrier service life extension program, $890,209;

For craft, outfitting, and post delivery, $2,636,339;

Under the heading, `Shipbuilding and Conversion, Navy, 1991/2001':

Service craft program, $143,740;

LCAC landing craft air cushion program, $126,698;

For craft, outfitting, and post delivery, $1,549,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1992/2001':

For craft, outfitting, and post delivery, $3,307,524;

Under the heading, `Shipbuilding and Conversion, Navy, 1993/2002':

For craft, outfitting, and post delivery, $4,540,746.

`Missile Procurement, Air Force, 1997/1999', $8,000,000;

`Research, Development, Test and Evaluation, Defense-Wide, 1997/1998', $67,000,000;

`Missile Procurement, Army, 1998/2000', $12,800,000;

`Procurement of Weapons and Tracked Combat Vehicles, Army, 1998/2000'; $6,700,000;

`Other Procurement, Army, 1998/2000', $24,000,000;

`Weapons Procurement, Navy, 1998/2000', $2,000,000;

`Procurement of Ammunition, Navy and Marine Corps, 1998/2000', $12,560,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1998/2002':

CVN refuelings, $35,000,000;

`Other Procurement, Navy, 1998/2000', $28,500,000;

`Aircraft Procurement, Air Force, 1998/2000', $8,934,000;

`Missile Procurement, Air Force, 1998/2000', $4,200,000;

`Procurement of Ammunition, Air Force, 1998/2000', $14,106,000;

`Other Procurement, Air Force, 1998/2000', $3,508,000;

`Research, Development, Test and Evaluation, Navy, 1998/1999', $20,500,000;

`Research, Development, Test and Evaluation, Air Force, 1998/1999', $17,620,000;

`National Defense Sealift Fund, Public Law 104-208', $65,000,000; and

`National Defense Sealift Fund, Public Law 104-61', $20,000,000.
Sec. 8059. None of the funds available in this Act may be used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army Reserve and Air Force Reserve for the purpose of applying any administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are a direct result of a reduction in military force structure.
Sec. 8060. None of the funds appropriated or otherwise made available in this Act may be obligated or expended for assistance to the Democratic People's Republic of North Korea unless specifically appropriated for that purpose.
Sec. 8061. During the current fiscal year, funds appropriated in this Act are available to compensate members of the National Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under section 112 of title 32, United States Code: Provided, That during the performance of such duty, the members of the National Guard shall be under State command and control: Provided further, That such duty shall be treated as full-time National Guard duty for purposes of sections 12602(a)(2) and (b)(2) of title 10, United States Code.
Sec. 8062. Funds appropriated in this Act for operation and maintenance of the Military Departments, Unified and Specified Commands and Defense Agencies shall be available for reimbursement of pay, allowances and other expenses which would otherwise be incurred against appropriations for the National Guard and Reserve when members of the National Guard and Reserve provide intelligence or counterintelligence support to Unified Commands, Defense Agencies and Joint Intelligence Activities, including the activities and programs included within the National Foreign Intelligence Program (NFIP), the Joint Military Intelligence Program (JMIP), and the Tactical Intelligence and Related Activities (TIARA) aggregate: Provided, That nothing in this section authorizes deviation from established Reserve and National Guard personnel and training procedures.
Sec. 8063. During the current fiscal year, none of the funds appropriated in this Act may be used to reduce the civilian medical and medical support personnel assigned to military treatment facilities below the September 30, 1998 level: Provided, That the Service Surgeons General may waive this section by certifying to the congressional defense committees that the beneficiary population is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and capitation-based budgeting.

(INCLUDING TRANSFER OF FUNDS)


Sec. 8064. None of the funds appropriated in this Act may be transferred to or obligated from the Pentagon Reservation Maintenance Revolving Fund, unless the Secretary of Defense certifies that the total cost for the planning, design, construction and installation of equipment for the renovation of the Pentagon Reservation will not exceed $1,118,000,000.
Sec. 8065. (a) None of the funds available to the Department of Defense for any fiscal year for drug interdiction or counter-drug activities may be transferred to any other department or agency of the United States except as specifically provided in an appropriations law.
(b) None of the funds available to the Central Intelligence Agency for any fiscal year for drug interdiction and counter-drug activities may be transferred to any other department or agency of the United States except as specifically provided in an appropriations law.

(TRANSFER OF FUNDS)


Sec. 8066. Appropriations available in this Act under the heading `Operation and Maintenance, Defense-Wide' for increasing energy and water efficiency in Federal buildings may, during their period of availability, be transferred to other appropriations or funds of the Department of Defense for projects related to increasing energy and water efficiency, to be merged with and to be available for the same general purposes, and for the same time period, as the appropriation or fund to which transferred.

Sec. 8067. None of the funds appropriated by this Act may be used for the procurement of ball and roller bearings other than those produced by a domestic source and of domestic origin: Provided, That the Secretary of the military department responsible for such procurement may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate domestic supplies are not available to meet Department of Defense requirements on a timely basis and that such an acquisition must be made in order to acquire capability for national security purposes.
Sec. 8068. Notwithstanding any other provision of law, funds available to the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable basis, to American Samoa: Provided, That notwithstanding any other provision of law, funds available to the Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable basis, to the Indian Health Service when it is in conjunction with a civil-military project.
Sec. 8069. None of the funds in this Act may be used to purchase any supercomputer which is not manufactured in the United States, unless the Secretary of Defense certifies to the congressional defense committees that such an acquisition must be made in order to acquire capability for national security purposes that is not available from United States manufacturers.
Sec. 8070. Notwithstanding any other provision of law, the Naval shipyards of the United States shall be eligible to participate in any manufacturing extension program financed by funds appropriated in this or any other Act.
Sec. 8071. Notwithstanding any other provision of law, each contract awarded by the Department of Defense during the current fiscal year for construction or service performed in whole or in part in a State which is not contiguous with another State and has an unemployment rate in excess of the national average rate of unemployment as determined by the Secretary of Labor, shall include a provision requiring the contractor to employ, for the purpose of performing that portion of the contract in such State that is not contiguous with another State, individuals who are residents of such State and who, in the case of any craft or trade, possess or would be able to acquire promptly the necessary skills: Provided, That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of national security.

Sec. 8072. During the current fiscal year, the Army shall use the former George Air Force Base as the airhead for the National Training Center at Fort Irwin: Provided, That none of the funds in this Act shall be obligated or expended to transport Army personnel into Edwards Air Force Base for training rotations at the National Training Center.
Sec. 8073. (a) The Secretary of Defense shall submit, on a quarterly basis, a report to the congressional defense committees, the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate setting forth all costs (including incremental costs) incurred by the Department of Defense during the preceding quarter in implementing or supporting resolutions of the United Nations Security Council, including any such resolution calling for international sanctions, international peacekeeping operations, and humanitarian missions undertaken by the Department of Defense. The quarterly report shall include an aggregate of all such Department of Defense costs by operation or mission.
(b) The Secretary of Defense shall detail in the quarterly reports all efforts made to seek credit against past United Nations expenditures and all efforts made to seek compensation from the United Nations for costs incurred by the Department of Defense in implementing and supporting United Nations activities.
Sec. 8074. (a) Limitation on Transfer of Defense Articles and Services: Notwithstanding any other provision of law, none of the funds available to the Department of Defense for the current fiscal year may be obligated or expended to transfer to another nation or an international organization any defense articles or services (other than intelligence services) for use in the activities described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of Representatives, and the Committee on Foreign Relations of the Senate are notified 15 days in advance of such transfer.
(b) Covered Activities: This section applies to--

(1) any international peacekeeping or peace-enforcement operation under the authority of chapter VI or chapter VII of the United Nations Charter under the authority of a United Nations Security Council resolution; and

(2) any other international peacekeeping, peace-enforcement, or humanitarian assistance operation.
(c) Required Notice: A notice under subsection (a) shall include the following:

(1) A description of the equipment, supplies, or services to be transferred.

(2) A statement of the value of the equipment, supplies, or services to be transferred.

(3) In the case of a proposed transfer of equipment or supplies--

(A) a statement of whether the inventory requirements of all elements of the Armed Forces (including the reserve components) for the type of equipment or supplies to be transferred have been met; and

(B) a statement of whether the items proposed to be transferred will have to be replaced and, if so, how the President proposes to provide funds for such replacement.
Sec. 8075. To the extent authorized by subchapter VI of chapter 148 of title 10, United States Code, the Secretary of Defense shall issue loan guarantees in support of United States defense exports not otherwise provided for: Provided, That the total contingent liability of the United States for guarantees issued under the authority of this section may not exceed $15,000,000,000: Provided further, That the exposure fees charged and collected by the Secretary for each guarantee, shall be paid by the country involved and shall not be financed as part of a loan guaranteed by the United States: Provided further, That the Secretary shall provide quarterly reports to the Committees on Appropriations, Armed Services and Foreign Relations of the Senate and the Committees on Appropriations, National Security and International Relations in the House of Representatives on the implementation of this program: Provided further, That amounts charged for administrative fees and deposited to the special account provided for under section 2540c(d) of title 10, shall be available for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under subchapter VI of chapter 148 of title 10.
Sec. 8076. None of the funds available to the Department of Defense shall be obligated or expended to make a financial contribution to the United Nations for the cost of an United Nations peacekeeping activity (whether pursuant to assessment or a voluntary contribution) or for payment of any United States arrearage to the United Nations.
Sec. 8077. None of the funds available to the Department of Defense under this Act shall be obligated or expended to pay a contractor under a contract with the Department of Defense for costs of any amount paid by the contractor to an employee when--

(1) such costs are for a bonus or otherwise in excess of the normal salary paid by the contractor to the employee; and

(2) such bonus is part of restructuring costs associated with a business combination.
Sec. 8078. (a) None of the funds appropriated or otherwise made available in this Act may be used to transport or provide for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.
(b) The prohibition in subsection (a) shall not apply to any obsolete World War II chemical munition or agent of the United States found in the World War II Pacific Theater of Operations.
(c) The President may suspend the application of subsection (a) during a period of war in which the United States is a party.
Sec. 8079. None of the funds provided in title II of this Act for `Former Soviet Union Threat Reduction' may be obligated or expended to finance housing for any individual who was a member of the military forces of the Soviet Union or for any individual who is or was a member of the military forces of the Russian Federation.

[Page: H8667]

(INCLUDING TRANSFER OF FUNDS)


Sec. 8080. During the current fiscal year, no more than $10,000,000 of appropriations made in this Act under the heading `Operation and Maintenance, Defense-Wide' may be transferred to appropriations available for the pay of military personnel, to be merged with, and to be available for the same time period as the appropriations to which transferred, to be used in support of such personnel in connection with support and services for eligible organizations and activities outside the Department of Defense pursuant to section 2012 of title 10, United States Code.
Sec. 8081. For purposes of section 1553(b) of title 31, United States Code, any subdivision of appropriations made in this Act under the heading `Shipbuilding and Conversion, Navy' shall be considered to be for the same purpose as any subdivision under the heading `Shipbuilding and Conversion, Navy' appropriations in any prior year, and the 1 percent limitation shall apply to the total amount of the appropriation.
Sec. 8082. During the current fiscal year, in the case of an appropriation account of the Department of Defense for which the period of availability for obligation has expired or which has closed under the provisions of section 1552 of title 31, United States Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be charged to any current appropriation account for the same purpose as the expired or closed account if--

(1) the obligation would have been properly chargeable (except as to amount) to the expired or closed account before the end of the period of availability or closing of that account;

(2) the obligation is not otherwise properly chargeable to any current appropriation account of the Department of Defense; and

(3) in the case of an expired account, the obligation is not chargeable to a current appropriation of the Department of Defense under the provisions of section 1405(b)(8) of the National Defense Authorization Act for Fiscal Year 1991, Public Law 101-510, as amended (31 U.S.C. 1551 note): Provided, That in the case of an expired account, if subsequent review or investigation discloses that there was not in fact a negative unliquidated or unexpended balance in the account, any charge to a current account under the authority of this section shall be reversed and recorded against the expired account: Provided further, That the total amount charged to a current appropriation under this section may not exceed an amount equal to 1 percent of the total appropriation for that account.

(TRANSFER OF FUNDS)


Sec. 8083. Upon enactment of this Act, the Secretary of Defense shall make the following transfers of funds: Provided, That the amounts transferred shall be available for the same purposes as the appropriations to which transferred, and for the same time period as the appropriation from which transferred: Provided further, That the amounts shall be transferred between the following appropriations in the amount specified:

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1988/2001':

Trident ballistic missile submarine program, $2,674,000;

SSN-688 attack submarine program, $32,232,000;

CG-47 cruiser program, $10,886,000;

Carrier replacement program, $40,360,000;

LHD-1 amphibious assault ship program, $3,001,000;

LSD-41 cargo variant ship program, $790,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1995/2001':

Carrier replacement program, $89,943,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1989/2000':

Trident ballistic missile submarine program, $3,028,000;

LHD-1 amphibious assault ship program, $2,153,000;

MHC coastal minehunter program, $1,298,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1995/2000':

Carrier replacement program, $6,479,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1990/2002':

Trident ballistic missile submarine program, $10,796,000;

SSN-688 attack submarine program, $1,000,000;

DDG-51 destroyer program, $5,066,000;

LCAC landing craft, air cushioned program, $509,000;

MCM mine countermeasures ship program, $1,200,000;

AOE combat support ship program, $1,674,000;

AO(J) jumboized oiler program, $1,899,000;

Oceanographic research program, $394,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1995/2002':

Carrier replacement program, $22,538,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1991/2001':

DDG-51 destroyer program, $1,500,000;

LHD-1 amphibious assault ship program, $7,500,000;

LSD-41 cargo variant ship program, $1,227,000;

LCAC landing craft, air cushioned program, $392,000;

MHC coastal minehunter program, $2,400,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1991/2001':

SSN-21 attack submarine program, $13,019,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1992/2001':

Prior year escalation, $52,934,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1991/2001':

SSN-21 attack submarine program, $16,967,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1994/2001':

MCS(C) mine warfare command and control ship program, $5,729,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1995/2001':

DDG-51 destroyer program, $24,261,000;

Carrier replacement program, $5,977,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1993/2002':

AOE combat support ship program, $7,753,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1995/2002':

DDG-51 destroyer program, $7,753,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1996/2000':

SSN-21 attack submarine program, $26,526,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1995/2000':

DDG-51 destroyer program, $368,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1996/2000':

DDG-51 destroyer program, $2,756,000;

LHD-1 amphibious assault ship program, $21,850,000;

Fast Patrol craft program, $345,000;

Under the heading, `Shipbuilding and Conversion, Navy, 1997/2000':

AGOR SWATH oceanographic research program, $1,207,000;

From:

Under the heading, `Shipbuilding and Conversion, Navy, 1998/2002':

DDG-51(AP) destroyer program, $9,009,000;

To:

Under the heading, `Shipbuilding and Conversion, Navy, 1998/2002':

DDG-51 destroyer program, $9,009,000.
Sec. 8084. The Under Secretary of Defense (Comptroller) shall submit to the congressional defense committees by February 1, 1999 a detailed report identifying, by amount and by separate budget activity, activity group, subactivity group, line item, program element, program, project, subproject, and activity, any activity for which the fiscal year 2000 budget request was reduced because Congress appropriated funds above the President's budget request for that specific activity for fiscal year 1999.
Sec. 8085. Funds appropriated in title II of this Act for supervision and administration costs for facilities maintenance and repair, minor construction, or design projects may be obligated at the time the reimbursable order is accepted by the performing activity: Provided, That for the purpose of this section, supervision and administration costs includes all in-house Government cost.
Sec. 8086. The Secretary of Defense may waive reimbursement of the cost of conferences, seminars, courses of instruction, or similar educational activities of the Asia-Pacific Center for Security Studies for military officers and civilian officials of foreign nations if the Secretary determines that attendance by such personnel, without reimbursement, is in the national security interest of the United States: Provided, That costs for which reimbursement is waived pursuant to this subsection shall be paid from appropriations available for the Asia-Pacific Center.

Sec. 8087. (a) Notwithstanding any other provision of law, the Chief of the National Guard Bureau may permit the use of equipment of the National Guard Distance Learning Project by any person or entity on a space-available, reimbursable basis. The Chief of the National Guard Bureau shall establish the amount of reimbursement for such use on a case-by-case basis.
(b) Amounts collected under subsection (a) shall be credited to funds available for the National Guard Distance Learning Project and be available to defray the costs associated with the use of equipment of the project under that subsection. Such funds shall be available for such purposes without fiscal year limitation.
Sec. 8088. Using funds available by this Act or any other Act, the Secretary of the Air Force, pursuant to a determination under section 2690 of title 10, United States Code, may implement cost-effective agreements for required heating facility modernization in the Kaiserslautern Military Community in the Federal Republic of Germany: Provided, That in the City of Kaiserslautern such agreements will include the use of United States anthracite as the base load energy for municipal district heat to the United States Defense installations: Provided further, That at Landstuhl Army Regional Medical Center and Ramstein Air Base, furnished heat may be obtained from private, regional or municipal services, if provisions are included for the consideration of United States coal as an energy source.
Sec. 8089. During the current fiscal year, the amounts which are necessary for the operation and maintenance of the Fisher Houses administered by the Departments of the Army, the Navy, and the Air Force are hereby appropriated, to be derived from amounts which are available in the applicable Fisher House trust fund established under 10 U.S.C. 2221 for the Fisher Houses of each such department.
Sec. 8090. During the current fiscal year, refunds attributable to the use of the Government travel card by military personnel and civilian employees of the Department of Defense and refunds attributable to official Government travel arranged by Government Contracted Travel Management Centers may be credited to operation and maintenance accounts of the Department of Defense which are current when the refunds are received.
Sec. 8091. During the current fiscal year, not more than a total of $60,000,000 in withdrawal credits may be made by the Marine Corps Supply Management activity group of the Navy Working Capital Fund, Department of Defense Working Capital Funds, to the credit of current applicable appropriations of a Department of Defense activity in connection with the acquisition of critical low density repairables that are capitalized into the Navy Working Capital Fund.
Sec. 8092. Notwithstanding 31 U.S.C. 3902, during the current fiscal year interest penalties may be paid by the Department of Defense from funds financing the operation of the military department or defense agency with which the invoice or contract payment is associated.
Sec. 8093. At the time the President submits his budget for fiscal year 2000 and any fiscal year thereafter, the Department of Defense shall transmit to the congressional defense committees a budget justification document for the active and reserve Military Personnel accounts, to be known as the `M-1', which shall identify, at the budget activity, activity group, and subactivity group level, the amounts requested by the President to be appropriated to the Department of Defense for military personnel in any budget request, or amended budget request, for that fiscal year.
Sec. 8094. None of the funds appropriated in title IV of this Act may be used to procure end-items for delivery to military forces for operational training, operational use or inventory requirements: Provided, That this restriction does not apply to end-items used in development, prototyping, and test activities preceding and leading to

acceptance for operational use: Provided further, That this restriction does not apply to programs funded within the National Foreign Intelligence Program: Provided further, That the Secretary of Defense may waive this restriction on a case-by-case basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate that it is in the national security interest to do so.
Sec. 8095. The budget of the President for fiscal year 2000 submitted to Congress pursuant to section 1105 of title 31, United States Code, and each annual budget request thereafter, shall include budget activity groups (known as `subactivities') in all appropriations accounts provided in this Act, as may be necessary, to separately identify all costs incurred by the Department of Defense to support the North Atlantic Treaty Organization and all Partnership For Peace programs and initiatives. The budget justification materials submitted to Congress in support of the budget of the Department of Defense for fiscal year 2000, and subsequent fiscal years, shall provide complete, detailed estimates for all such costs.
Sec. 8096. None of the funds made available in this Act may be obligated or expended to enter into or renew a contract with a contractor that is subject to the reporting requirement set forth in subsection (d) of section 4212 of title 38, United States Code, but has not submitted the most recent report required by such subsection for 1998 or a subsequent year.
Sec. 8097. None of the funds made available in this Act may be used to approve or license the sale of the F-22 advanced tactical fighter to any foreign government.
Sec. 8098. None of the funds appropriated or otherwise made available by this Act may be made available for the United States Man and the Biosphere Program, or related projects.
Sec. 8099. (a) The Secretary of Defense may, on a case-by-case basis, waive with respect to a foreign country each limitation on the procurement of defense items from foreign sources provided in law if the Secretary determines that the application of the limitation with respect to that country would invalidate cooperative programs entered into between the Department of Defense and the foreign country, or would invalidate reciprocal trade agreements for the procurement of defense items entered into under section 2531 of title 10, United States Code, and the country does not discriminate against the same or similar defense items produced in the United States for that country.
(b) Subsection (a) applies with respect to--

(1) contracts and subcontracts entered into on or after the date of the enactment of this Act; and

(2) options for the procurement of items that are exercised after such date under contracts that are entered into before such date if the option prices are adjusted for any reason other than the application of a waiver granted under subsection (a).
(c) Subsection (a) does not apply to a limitation regarding construction of public vessels, ball and roller bearings, food, and clothing or textile materials as defined by section 11 (chapters 50-65) of the Harmonized Tariff Schedule and products classified under headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019, 7218 through 7229, 7304.41 through 7304.49, 7306.40, 7502 through 7508, 8105, 8108, 8109, 8211, 8215, and 9404.
Sec. 8100. Notwithstanding 31 U.S.C. 1552(a), of the funds provided in Department of Defense Appropriations Acts, not more than the specified amounts from the following accounts shall remain available for the payment of satellite on-orbit incentive fees until the fees are paid:

`Missile Procurement, Air Force, 1995/1997', $20,978,000; and

`Missile Procurement, Air Force, 1996/1998', $16,782,400.
Sec. 8101. None of the funds in this Act may be used by the National Imagery and Mapping Agency for mapping, charting, and geodesy activities unless contracts for such services are awarded in accordance with the qualifications based selection process in 40 U.S.C. 541 et seq. and 10 U.S.C. 2855: Provided, That such agency may continue to fund existing contracts for such services for not more than 180 days from the date of enactment of this Act: Provided further, That an exception shall be provided for such services that are critical to national security after a written notification has been submitted by the Deputy Secretary of Defense to the Committees on Appropriations of the House of Representatives and the Senate.
Sec. 8102. Funds made available to the Civil Air Patrol in this Act under the heading `Drug Interdiction and Counter-Drug Activities, Defense' may be used for the Civil Air Patrol Corporation's counterdrug program, including its demand reduction program involving youth programs, as well as operational and training drug reconnaissance missions for federal, state and local government agencies; for administrative costs, including the hiring of Civil Air Patrol Corporation employees; for travel and per diem expenses of Civil Air Patrol Corporation personnel in support of those missions; and for equipment needed for mission support or performance: Provided, That of these funds, $300,000 shall be made available to establish and operate a distance learning program: Provided further, That the Department of the Air Force should waive reimbursement from the Federal, State and local government agencies for the use of these funds.
Sec. 8103. During fiscal year 1999, advance billing for services provided or work performed by the Working Capital Fund activities of the Department of the Air Force in excess of $100,000,000 is prohibited.
Sec. 8104. The Secretary of Defense shall undertake a review of all distributed learning education and training programs in the Department of Defense and shall issue a plan to implement a department-wide, standardized, cost-effective Advanced Distributed Learning framework to achieve the goals of commonality, interoperability, and reuse: Provided, That the Secretary shall report to Congress on the results of this review and present a detailed implementation and budget plan no later than July 30, 1999.
Sec. 8105. Notwithstanding any other provision in this Act, the total amount appropriated in title II is hereby reduced by $70,000,000 to reflect savings resulting from consolidations and personnel reductions as mandated in the Defense Reform Initiative.
Sec. 8106. The Secretary of Defense shall submit to the congressional defense committees an in-depth analysis comparing the cost of any proposed establishment or expansion of depot facilities by the Reserve Components to the cost of performing the same work at existing depot facilities or by the private sector: Provided, That for purposes of this section, the term `depot level maintenance' does not include General Support Level maintenance activities, Intermediate Level maintenance activities, or lower echelon maintenance activities.
Sec. 8107. Notwithstanding any other provision of law, the TRICARE managed care support contracts in effect, or in final stages of acquisition as of September 30, 1998, may be extended for two years: Provided, That any such extension may only take place if the Secretary of Defense determines that it is in the best interest of the government: Provided further, That any contract extension shall be based on the price in the final best and final offer for the last year of the existing contract as adjusted for inflation and other factors mutually agreed to by the contractor and the government: Provided further, That notwithstanding any other provision of law, all future TRICARE managed care support contracts replacing contracts in effect, or in the final stages of acquisition as of September 30, 1998, may include a base contract period for transition and up to seven one-year option periods.
Sec. 8108. Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $400,600,000 to reflect savings from revised economic assumptions, to be distributed as follows:

`Operation and Maintenance, Army', $24,000,000;

`Operation and Maintenance, Navy', $32,000,000;

`Operation and Maintenance, Marine Corps', $4,000,000;

`Operation and Maintenance, Air Force', $31,000,000;

`Operation and Maintenance, Defense-Wide', $17,600,000;

`Operation and Maintenance, Army Reserve', $2,000,000;

`Operation and Maintenance, Navy Reserve', $2,000,000;

`Operation and Maintenance, Air Force Reserve', $2,000,000;

`Operation and Maintenance, Army National Guard', $4,000,000;

`Operation and Maintenance, Air National Guard', $4,000,000;

`Drug Interdiction and Counter-Drug Activities, Defense', $2,000,000;

`Environmental Restoration, Army', $1,000,000;

`Environmental Restoration, Navy', $1,000,000;

`Environmental Restoration, Air Force', $1,000,000;

`Environmental Restoration, Defense-Wide', $1,000,000;

`Defense Health Program', $36,000,000;

`Aircraft Procurement, Army', $4,000,000;

`Missile Procurement, Army', $4,000,000;

`Procurement of Weapons and Tracked Combat Vehicles, Army', $4,000,000;

`Procurement of Ammunition, Army', $3,000,000;

`Other Procurement, Army', $9,000,000;

`Aircraft Procurement, Navy', $22,000,000;

`Weapons Procurement, Navy', $4,000,000;

`Procurement of Ammunition, Navy and Marine Corps', $1,000,000;

`Shipbuilding and Conversion, Navy', $18,000,000;

`Other Procurement, Navy', $12,000,000;

`Procurement, Marine Corps', $2,000,000;

`Aircraft Procurement, Air Force', $23,000,000;

`Missile Procurement, Air Force', $7,000,000;

`Procurement of Ammunition, Air Force', $1,000,000;

`Other Procurement, Air Force', $17,500,000;

`Procurement, Defense-Wide', $5,800,000;

`Chemical Agents and Munitions Destruction, Army', $3,000,000;

`Research, Development, Test and Evaluation, Army', $10,000,000;

`Research, Development, Test and Evaluation, Navy', $20,000,000;

`Research, Development, Test and Evaluation, Air Force', $39,000,000; and

`Research, Development, Test and Evaluation, Defense-Wide', $26,700,000:
Provided, That these reductions shall be applied proportionally to each budget activity, activity group and subactivity group and each program, project, and activity within each appropriation account.
Sec. 8109. (a) Disposal of Certain Materials in National Defense Stockpile: Subject to subsection (c), the President shall dispose of materials contained in the National Defense Stockpile and specified in the table in subsection (b) so as to result in receipts to the United States in the amount of $100,000,000 by the end of fiscal year 1999.
(b) Disposal Quantities: The total quantities of materials authorized for disposal by the President under subsection (a) may not exceed the amounts set forth in the following table:

Authorized Stockpile Disposals
---------------------------------------------------------------------------
Material for disposal                 Quantity                             
---------------------------------------------------------------------------
Beryllium Metal                       20 short tons                        
Chromium Ferroalloy                   25,000 short tons                    
Columbium Carbide Powder              21,372 pounds of contained Columbium 
Diamond, Stones                       600,000 carats                       
Platinum                              100,000 troy ounces                  
Platinum--Palladium                   150,000 troy ounces                  
Tantalum Carbide Powder               22,688 pounds of contained Tantalum  
Tantalum Metal Ingots                 25,000 pounds of contained Tantalum  
Tantalum Metal Powder                 25,000 pounds of contained Tantalum  
---------------------------------------------------------------------------

(c) Minimization of Disruption and Loss: The President may not dispose of materials under subsection (a) to the extent that the disposal will result in--

(1) undue disruption of the usual markets of producers, processors, and consumers of the materials proposed for disposal; or

(2) avoidable loss to the United States.
(d) Treatment of Receipts: Notwithstanding section 9 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), funds received as a result of the disposal of materials authorized for disposal under subsection (a) shall be deposited into the general fund of the Treasury.
(e) Relationship to Other Disposal Authority: (1) The disposal authority provided in subsection (a) is new disposal authority and is in addition to, and shall not affect, any other disposal authority provided by law regarding the materials specified in such subsection.
(2) The disposal authority provided in subsection (a) is referred to in section 3303 of the National Defense Authorization Act for Fiscal Year 1999, and the quantities of the materials specified in the table in subsection (b) are included in the quantities specified in the table in subsection (b) of such section 3303.
(f) Definition: In this section, the term `National Defense Stockpile' means the stockpile provided for in section 4 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).
Sec. 8110. (a) Transfers of Vessels by Grant: The Secretary of the Navy is authorized to transfer vessels to foreign countries on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:

(1) To the Government of Argentina, the NEWPORT class tank landing ship NEWPORT (LST 1179).

(2) To the Government of Greece--

(A) the KNOX class frigate HEPBURN (FF 1055); and

(B) the ADAMS class guided missile destroyers STRAUSS (DDG 16), SEMMS (DDG 18), and WADDELL (DDG 24).

(3) To the Government of Portugal, the STALWART class ocean surveillance ship ASSURANCE (T-AGOS 5).

(4) To the Government of Turkey, the KNOX class frigates PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).
(b) Transfers of Vessels by Sale: The Secretary of the Navy is authorized to transfer vessels to foreign countries on a sales basis under section 21 of the Arms Export Control Act (22 U.S.C. 2761) as follows:

(1) To the Government of Brazil, the NEWPORT class tank landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).

(2) To the Government of Chile--

(A) the NEWPORT class tank landing ship SAN BERNARDINO (LST 1189); and

(B) the auxiliary repair dry dock WATERFORD (ARD 5).

(3) To the Government of Greece--

(A) the OAK RIDGE class medium dry dock ALAMAGORDO (ARDM 2); and

(B) the KNOX class frigates VREELAND (FF 1068) and TRIPPE (FF 1075).

(4) To the Government of Mexico--

(A) the auxiliary repair dock SAN ONOFRE (ARD 30); and

(B) the KNOX class frigate PHARRIS (FF 1094).

(5) To the Government of the Philippines, the STALWART class ocean surveillance ship TRIUMPH (T-AGOS 4).

(6) To the Government of Spain, the NEWPORT class tank landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY (LST 1197).

(7) To the Taipai Economic and Cultural Representative Office in the United States (the Taiwan instrumentality that is designated pursuant to section 10(a) of the Taiwan Relations Act)--

(A) the KNOX class frigates PEARY (FF 1073), JOSEPH HEWES (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), and BARBEY (FF 1088);

(B) the NEWPORT class tank landing ships MANITOWOC (LST 1180) and SUMTER (LST 1181);

(C) the floating dry dock COMPETENT (AFDM 6); and

(D) the ANCHORAGE class dock landing ship PENSACOLA (LSD 38).

(8) To the Government of Turkey--

(A) the OLIVER HAZARD PERRY class guided missile frigates MAHLON S. TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 10); and

(B) the KNOX class frigates REASONER (FF 1063), FANNING (FF 1076), BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY (FF 1085), AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and CAPODANNO (FF 1093).

(9) To the Government of Venezuela, the medium auxiliary floating dry dock bearing hull number AFDM 2.
(c) Transfers of Vessels on a Combined Lease-Sale Basis: The Secretary of the Navy is authorized to transfer vessels to foreign countries on a combined lease-sale basis under sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761) and in accordance with subsection (d) as follows:

(1) To the Government of Brazil, the CIMARRON class oiler MERRIMACK (AO 179).

(2) To the Government of Greece, the KIDD class guided missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 996).
(d) Conditions Relating To Combined Lease-Sale Transfers: A transfer of a vessel on a combined lease-sale basis authorized by subsection (c) shall be made in accordance with the following requirements:

(1) The Secretary may initially transfer the vessel by lease, with lease payments suspended for the term of the lease, if the country entering into the lease for the vessel simultaneously enters into a foreign military sales agreement for the transfer of title to the vessel.

(2) The Secretary may not deliver to the purchasing country title to the vessel until the purchase price of the vessel under such a foreign military sales agreement is paid in full.

(3) Upon payment of the purchase price in full under such a sales agreement and delivery of title to the recipient country, the Secretary shall terminate the lease.

(4) If the purchasing country fails to make full payment of the purchase price in accordance with the sales agreement by the date required under the sales agreement--

(A) the sales agreement shall be immediately terminated;

(B) the suspension of lease payments under the lease shall be vacated; and

(C) the United States shall be entitled to retain all funds received on or before the date of the termination under the sales agreement, up to the amount of the lease payments due and payable under the lease and all other costs required by the lease to be paid to that date.

(5) If a sales agreement is terminated pursuant to paragraph (4), the United States shall not be required to pay any interest to the recipient country on any amount paid to the United States by the recipient country under the sales agreement and not retained by the United States under the lease.
(e) Funding for Certain Costs of Transfers: There is established in the Treasury of the United States a special account to be known as the Defense Vessels Transfer Program Account. There is hereby appropriated into that account such sums as may be necessary for the costs (as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale transfers authorized by subsection (c). Funds in that account are available only for the purpose of covering those costs.
(f) Notification of Congress: Not later than 30 days after the date of the enactment of this Act, the Secretary of the Navy shall submit to Congress, for each naval vessel that is to be transferred under this section before January 1, 1999, the notifications required under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) and section 525 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).
(g) Grants not Counted in Annual Total of Transferred Excess Defense Articles: The value of a vessel transferred to another country on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not be counted for the purposes of subsection (g) of that section in the aggregate value of excess defense articles transferred to countries under that section in any fiscal year.
(h) Costs of Transfers: Any expense incurred by the United States in connection with a transfer authorized by this section shall be charged to the recipient (notwithstanding section 516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a transfer authorized to be made on a grant basis under subsection (a)).
(i) Repair and Refurbishment in United States Shipyards: To the maximum extent practicable, the Secretary of the Navy shall require, as a condition of the transfer of a vessel under this section, that the country to which the vessel is transferred have such repair or refurbishment of the vessel as is needed, before the vessel joins the naval forces of that country, performed at a shipyard located in the United States, including a United States Navy shipyard.
(j) Expiration of Authority: The authority to transfer a vessel under this section shall expire at the end of the two-year period beginning on the date of the enactment of this Act.

Sec. 8111. None of the funds in this Act may be used to compensate an employee of the Department of Defense who initiates a new start program without notification to the Office of the Secretary of Defense and the congressional defense committees, as required by Department of Defense financial management regulations.
Sec. 8112. None of the funds made available by this Act shall be used by the Army to reduce civilian personnel workforce levels at United States Army, Pacific (USARPAC) bases and at Major Range and Test Facility Bases (MRTFBs) in the United States in fiscal year 1999 below levels assumed in this Act unless the Secretary of the Army notifies the Congressional defense committees not less than 30 days prior to implementation of any civilian personnel workforce reductions.

[Page: H8670]

(INCLUDING TRANSFER OF FUNDS)


Sec. 8113. Of the funds made available under title II of this Act, the following amounts shall be transferred to the Defense Working Capital Funds for the purpose of funding operations of the Defense Commissary Agency:

`Operation and Maintenance, Army', $338,400,000;

`Operation and Maintenance, Navy', $255,000,000;

`Operation and Maintenance, Marine Corps', $86,600,000; and

`Operation and Maintenance, Air Force', $302,071,000:
Provided, That the transfer authority provided in this section is in addition to any other transfer authority contained elsewhere in this Act.
Sec. 8114. Of the amounts made available in title II of this Act under the heading `Operation and Maintenance, Navy', $20,000,000 is available only for emergency and extraordinary expenses associated with the accident involving a United States Marine Corps A-6 aircraft on February 3, 1998, near Cavalese, Italy: Provided, That these funds shall remain available until expended: Provided further, That notwithstanding any other provision of law, the funds made available by this section may be available for payments to persons, communities, or other entities in Italy for reimbursement for property damages resulting from the accident involving a United States Marine Corps A-6 aircraft on February 3, 1998, near Cavalese, Italy: Provided further, That notwithstanding any other provision of law, funds made available under this section may be used to rebuild or replace the funicular system in Cavalese destroyed on February 3, 1998 by that aircraft: Provided further, That any amount paid to any individual or entity from the amount appropriated under this section shall be credited against any amount subsequently determined to be payable to that individual or entity under chapter 163 of title 10, United States Code, section 127 of that title, or any other authority provided by law for administrative settlement of claims against the United States with respect to damages arising from the accident described in this section: Provided further, That payment of an amount under this section shall not be considered to constitute a statement of legal liability on the part of the United States or otherwise to prejudge any judicial proceeding or investigation arising from the accident described in this section: Provided further, That no part of any payment authorized by this section shall be paid to or received by agents or attorneys for services rendered in connection with obtaining such payment, any contract to the contrary notwithstanding.
Sec. 8115. (a) None of the funds appropriated or otherwise made available under this Act may be obligated or expended for any additional deployment of forces of the Armed Forces of the United States to Yugoslavia, Albania, or Macedonia unless and until the President, after consultation with the Speaker of the House of Representatives, the Majority Leader of the Senate, the Minority Leader of the House of Representatives, and the Minority Leader of the Senate, transmits to Congress a report on the deployment that includes the following:

(1) The President's certification that the presence of those forces in each country to which the forces are to be deployed is necessary in the national security interests of the United States.

(2) The reasons why the deployment is in the national security interests of the United States.

(3) The number of United States military personnel to be deployed to each country.

(4) The mission and objectives of forces to be deployed.

(5) The expected schedule for accomplishing the objectives of the deployment.

(6) The exit strategy for United States forces engaged in the deployment.

(7) The costs associated with the deployment and the funding sources for paying those costs.

(8) The anticipated effects of the deployment on the morale, retention, and effectiveness of United States forces.
(b) Subsection (a) does not apply to a deployment of forces--

(1) in accordance with United Nations Security Council Resolution 795; or

(2) under circumstances determined by the President to be an emergency necessitating immediate deployment of the forces.
(c) Nothing in this section shall be deemed to restrict the authority of the President under the Constitution to protect the lives of United States citizens.
Sec. 8116. (a) Ensuring Year 2000 Compliance of Information Technology and National Security Systems: None of the funds appropriated or otherwise made available by this Act may (except as provided in subsection (b)) be obligated or expended on the development or modernization of any information technology or national security system of the Department of Defense in use by the Department of Defense (whether or not the system is a mission critical system) if the date-related data processing capability of that system does not meet certification level 1a, 1b, or 2 (as prescribed in the April 1997 publication of the Department of Defense entitled `Year 2000 Management Plan').
(b) Exception for Certain Information Technology and National Security Systems: The limitation in subsection (a) does not apply to an obligation or expenditure for an information technology or national security system that is reported to the Office of the Secretary of Defense by October 1, 1998, in accordance with the preparation instructions for the May 1998 Department of Defense quarterly report on the status of year 2000 compliance, if--

(1) the obligation or expenditure is directly related to ensuring that the reported system achieves year 2000 compliance;

(2) the system is being developed and fielded to replace, before January 1, 2000, a noncompliant system or a system to be terminated in accordance with the May 1998 Department of Defense quarterly report on the status of year 2000 compliance; or

(3) the obligation or expenditure is required for a particular change that is specifically required by law or that is specifically directed by the Secretary of Defense.
(c) Unallocated Reductions of Funds Not To Apply to Mission Critical Systems: Funds appropriated or otherwise made available by this Act for mission critical systems are not subject to any unallocated reduction of funds made by or otherwise applicable to funds appropriated or otherwise made available by this Act.
(d) Current Services Operations Not Affected: Subsection (a) does not prohibit the obligation or expenditure of funds for current services operations of information technology and national security systems.

(e) Waiver Authority: The Secretary of Defense may waive subsection (a) on a case-by-case basis with respect to an information technology or national security system if the Secretary provides the congressional defense committees with written notice of the waiver, including the reasons for the waiver and a timeline for the testing and certification of the system as year 2000 compliant.
(f) Required Report: (1) Not later than December 1, 1998, the Secretary of Defense shall submit to the congressional defense committees a report describing--

(A) an executable strategy to be used throughout the Department of Defense to test information technology and national security systems for year 2000 compliance (to include functional capability tests and military exercises);

(B) the plans of the Department of Defense for ensuring that adequate resources (such as testing facilities, tools, and personnel) are available to ensure that all mission critical systems achieve year 2000 compliance; and

(C) the criteria and process to be used to certify a system as year 2000 compliant.
(2) The report shall also include--

(A) an updated list of all mission critical systems; and

(B) guidelines for developing contingency plans for the functioning of each information technology or national security system in the event of a year 2000 problem in any such system.
(g) Capability Contingency Plans: Not later than December 30, 1998, the Secretary of Defense shall have in place contingency plans to ensure continuity of operations for every critical mission or function of the Department of Defense that is dependent on an information technology or national security system.
(h) Inspector General Evaluation: The Inspector General of the Department of Defense shall selectively audit information technology and national security systems certified as year 2000 compliant to evaluate the ability of systems to successfully operate during the actual year 2000, including the ability of the systems to access and transmit information from point of origin to point of termination.
(i) Definitions: For purposes of this section:

(1) The term `information technology' has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(2) The term `national security system' has the meaning given that term in section 5142 of such Act (40 U.S.C. 1452).

(3) The term `development or modernization' has the meaning given that term in paragraph E of section 180203 of the Department of Defense Financial Management Regulation (DOD 7000.14-R), but does not include any matter covered by subparagraph 3 of that paragraph.

(4) The term `current services' has the meaning given that term in paragraph C of section 180203 of the Department of Defense Financial Management Regulation (DOD 7000.14-R).

(5) The term `mission critical system' means an information technology or national security system that is designated as mission critical in the May 1998 Department of Defense quarterly report on the status of year 2000 compliance.
Sec. 8117. (a) Evaluation of Year 2000 Compliance as Part of Training Exercises Programs: Not later than December 15, 1998, the Secretary of Defense shall submit to Congress a plan for the execution of a simulated year 2000 as part of military exercises described in subsection (c) in order to evaluate, in an operational environment, the extent to which information technology and national security systems involved in those exercises will successfully operate during the actual year 2000, including the ability of those systems to access and transmit information from point of origin to point of termination.
(b) Evaluation of Compliance in Selected Exercises: In conducting the military exercises described in subsection (c), the Secretary of Defense shall ensure that--

(1) at least 25 of those exercises (referred to in this section as `year 2000 simulation exercises') are conducted so as to include a simulated year 2000 in accordance with the plan submitted under subsection (a);

(2) at least two of those exercises are conducted by the commander of each unified or specified combatant command; and

(3) all mission critical systems that are expected to be used if the Armed Forces are involved in a conflict in a major theater of war are tested in at least two exercises.
(c) Covered Military Exercises: A military exercise referred to in this section is a military exercise conducted by the Department of Defense, during the period beginning on January 1, 1999, and ending on September 30, 1999--

(1) under the training exercises program known as the `CJCS Exercise Program';

(2) at the Naval Strike and Air Warfare Center, the Army National Training Center, or the Air Force Air Warfare Center; or

(3) as part of Naval Carrier Group fleet training or Marine Corps Expeditionary Unit training.
(d) Alternative Testing Method: In the case of an information technology or national security system for which a simulated year 2000 test as part of a military exercise described in subsection (c) is not feasible or presents undue risk, the Secretary of Defense shall test the system using a functional end-to-end test or through a Defense Major Range and Test Facility Base. The Secretary shall include the plans for these tests in the plan required by subsection (a). Tests under this subsection are in addition to the 25 tests required by subsection (b).
(e) Authority for Exclusion of Systems Not Capable of Performing Reliably in Year 2000 Simulation: (1) In carrying out a year 2000 simulation exercise, the Secretary of Defense may exclude a particular information technology or national security system from the year 2000 simulation phase of the exercise if the Secretary determines that the system would be incapable of performing reliably during the year 2000 simulation phase of the exercise. In such a case, the system excluded shall be replaced in accordance with the year 2000 contingency plan for the system.
(2) If the Secretary of Defense excludes an information technology or national security system from the year 2000 simulation phase of an exercise as provided in paragraph (1), the Secretary shall notify Congress of that exclusion not later than two weeks before commencing that exercise. The notice shall include a list of each information technology or national security system excluded from the exercise, a description of how the exercise will use the year 2000 contingency plan for each such system, and a description of the effect that continued year 2000 noncompliance of each such system would have on military readiness.
(3) An information technology or national security system with cryptological applications that is not capable of having its internal clock adjusted forward to a simulated later time is exempt from the year 2000 simulation phase of an exercise under this section.
(f) Comptroller General Review: Not later than January 30, 1999, the Comptroller General shall review the report and plan submitted under subsection (a) and submit to Congress a briefing evaluating the methodology to be used under the plan to simulate the year 2000 and describing the potential information that will be collected as a result of implementation of the plan, the adequacy of the planned tests, and the impact that the plan will have on military readiness.
(g) Definitions: For the purposes of this section:

(1) The term `information technology' has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(2) The term `national security system' has the meaning given that term in section 5142 of such Act (40 U.S.C. 1452).

(3) The term `mission critical system' means an information technology or national security system that is designated as mission critical in the May 1998 Department of Defense quarterly report on the status of year 2000 compliance.
Sec. 8118. During the current fiscal year and hereafter, no funds appropriated or otherwise available to the Department of Defense may be used to award a contract to, extend a contract with, or approve the award of a subcontract to any person who within the preceding 15 years has been convicted under section 704 of title 18, United States Code, of the unlawful manufacture or sale of the Congressional Medal of Honor.
Sec. 8119. (a) The Secretary of Defense shall submit to the Committees on Appropriations of the Senate and the House of Representatives a report on food stamp assistance for members of the Armed Forces. The Secretary shall submit the report at the same time that the Secretary submits to Congress, in support of the fiscal year 2001 budget, the materials that relate to the funding provided in that budget for the Department of Defense.
(b) The report shall include the following:

(1) The number of members of the Armed Forces and dependents of members of the Armed Forces who are eligible for food stamps.

(2) The number of members of the Armed Forces and dependents of members of the Armed Forces who received food stamps in fiscal year 1998.

(3) A proposal for using, as a means for eliminating or reducing significantly the need of such personnel for food stamps, the authority under section 2828 of title 10, United States Code, to lease housing facilities for enlisted members of the Armed Forces and their families when Government quarters are not available for such personnel.

(4) A proposal for increased locality adjustments through the basic allowance for housing and other methods as a means for eliminating or reducing significantly the need of such personnel for food stamps.

(5) Other potential alternative actions (including any recommended legislation) for eliminating or reducing significantly the need of such personnel for food stamps.

(6) A discussion of the potential for each alternative action referred to in paragraph (3) or (4) to result in the elimination or a significant reduction in the need of such personnel for food stamps.
(c) Each potential alternative action included in the report under paragraph (3) or (4) of subsection (b) shall meet the following requirements:

(1) Apply only to persons referred to in paragraph (1) of such subsection.

(2) Be limited in cost to the lowest amount feasible to achieve the objectives.
(d) In this section:

(1) The term `fiscal year 2001 budget' means the budget for fiscal year 2001 that the President submits to Congress under section 1105(a) of title 31, United States Code.

(2) The term `food stamps' means assistance under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
Sec. 8120. None of the funds appropriated or otherwise made available by this Act in Titles III and IV may be used to enter into or renew a contract with any company owned, or partially owned, by the People's Republic of China or the People's Liberation Army of the People's Republic of China.
Sec. 8121. (a) Chapter 157 of title 10, United States Code, is amended by inserting after section 2641 the following:

[Page: H8672]

`2641a. Transportation of American Samoa veterans on Department of Defense aircraft for certain medical care in Hawaii
`(a) Transportation Authorized: The Secretary of Defense may provide transportation on Department of Defense aircraft for the purpose of transporting any veteran specified in subsection (b) between American Samoa and the State of Hawaii if such transportation is required in order to provide hospital care to such veteran as described in that subsection.
`(b) Veterans Eligible for Transport: A veteran eligible for transport under subsection (a) is any veteran who--

`(1) resides in and is located in American Samoa; and

`(2) as determined by an official of the Department of Veterans Affairs designated for that purpose by the Secretary of Veterans Affairs, must be transported to the State of Hawaii in order to receive hospital care to which such veteran is entitled under chapter 17 of title 38 in facilities of such Department in the State of Hawaii.
`(c) Administration: (1) Transportation may be provided to veterans under this section only on a space-available basis.
`(2) A charge may not be imposed on a veteran for transportation provided to the veteran under this section.
`(d) Definitions: In this section:

`(1) The term `veteran' has the meaning given that term in section 101(2) of title 38.

`(2) The term `hospital care' has the meaning given that term in section 1701(5) of title 38.'.
(b) The table of sections at the beginning of chapter 157 of such title is amended by inserting after the item relating to section 2641 the following new item:

`2641a. Transportation of American Samoa veterans on Department of Defense aircraft for certain medical care in Hawaii.'.


Sec. 8122. Additional Funding for Korean War Veterans Memorial. Section 3 of Public Law 99-572 (40 U.S.C. 1003 note) is amended by adding at the end the following:
`(c) Additional Funding:

`(1) In general: In addition to amounts made available under subsections (a) and (b), the
Secretary of the Army may expend, from any funds available to the Secretary on the date of enactment of this paragraph, $2,000,000 for repair of the memorial.

`(2) Disposition of funds received from claims: Any funds received by the Secretary of the Army as a result of any claim against a contractor in connection with construction of the memorial shall be deposited in the general fund of the Treasury.'.
Sec. 8123. Of the funds available under title VI for `Chemical Agents and Munitions Destruction, Army' for research and development, $18,000,000 shall be made available for the program manager for the Assembled Chemical Weapons Assessment (under section 8065 of the Department of Defense Appropriations Act, 1997) for demonstrations of technologies under the Assembled Chemical Weapons Assessment, for planning and preparation to proceed from demonstration of an alternative technology immediately into the development of a pilot-scale facility for the technology, and for the design, construction, and operation of a pilot facility for the technology.
Sec. 8124. The Secretary of the Navy may carry out a competitively awarded vessel scrapping pilot program during fiscal years 1999 and 2000 using funds made available in this Act under the heading `Operation and Maintenance, Navy': Provided, That the Secretary of the Navy shall define the program scope sufficient to gather data on the cost of scrapping Government vessels and to demonstrate cost effective technologies and techniques to scrap such vessels in a manner that is protective of worker safety and health and the environment.
Sec. 8125. From within the funds provided under the heading `Operation and Maintenance, Army', up to $500,000 shall be available for paying subcontractors and suppliers for work performed at Fort Wainwright, Alaska, in 1994, under Army services contract number DACA85-93-C-0065. Subcontractors and suppliers are to be paid interest calculated in accordance with the Contract Dispute Act of 1978, 41 U.S.C. 601-613.
Sec. 8126. (a) The Secretary of the Army and the Secretary of the Air Force may each enter into one or more multiyear leases of nontactical firefighting equipment, nontactical crash rescue equipment, or nontactical snow removal equipment. The period of a lease entered into under this section shall be for any period not in excess of 10 years. Any such lease shall provide that performance under the lease during the second and subsequent years of the contract is contingent upon the appropriation of funds and shall provide for a cancellation payment to be made to the lessor if such appropriations are not made.
(b) Lease payments made under subsection (a) shall be made from amounts provided in this or future appropriations Acts.
(c) This section is effective for all fiscal years beginning after September 30, 1998.
Sec. 8127. From within funds available for the Department of Defense under title VI of this Act for `Chemical Agents and Munitions Destruction, Army', or the unobligated balances of funds available for `Chemical Agents and Munitions Destruction, Defense', under any other Act making appropriations for military functions administered by the Department of Defense for any fiscal year, the Secretary of Defense may use not more than $25,000,000 for the Assembled Chemical Weapons Assessment to complete the demonstration of alternatives to baseline incineration for the destruction of chemical agents and munitions and to carry out the pilot program under section 8065 of the Department of Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 1521 note). The amount specified in the preceding sentence is in addition to any other amount that is made available under title VI of this Act to complete the demonstration of the alternatives and to carry out the pilot program: Provided, That

none of these funds shall be taken from any ongoing operational chemical munitions destruction programs.
Sec. 8128. (a) Findings: The Congress finds that--

(1) child experts estimate that as many as 250,000 children under the age of 18 are currently serving in armed forces or armed groups in more than 30 countries around the world;

(2) contemporary armed conflict has caused the deaths of 2,000,000 minors in the last decade alone, and has left an estimated 6,000,000 children seriously injured or permanently disabled;

(3) children are uniquely vulnerable to military recruitment because of their emotional and physical immaturity, are easily manipulated, and can be drawn into violence that they are too young to resist or understand;

(4) children are most likely to become child soldiers if they are poor, separated from their families, displaced from their homes, living in a combat zone, or have limited access to education;

(5) orphans and refugees are particularly vulnerable to recruitment;

(6) one of the most egregious examples of the use of child soldiers is the abduction of some 10,000 children, some as young as 8 years of age, by the Lord's Resistance Army (in this section referred to as the `LRA') in northern Uganda;

(7) the Department of State's Country Reports on Human Rights Practices for 1997 reports that in Uganda the LRA kills, maims, and rapes large numbers of civilians, and forces abducted children into `virtual slavery as guards, concubines, and soldiers';

(8) children abducted by the LRA are forced to raid and loot villages, fight in the front line of battle against the Ugandan army and the Sudan People's Liberation Army (SPLA), serve as sexual slaves to rebel commanders, and participate in the killing of other children who try to escape;

(9) former LRA child captives report witnessing Sudanese government soldiers delivering food supplies, vehicles, ammunition, and arms to LRA base camps in government-controlled southern Sudan;

(10) children who manage to escape from LRA captivity have little access to trauma care and rehabilitation programs, and many find their families displaced, unlocatable, dead, or fearful of having their children return home;

(11) Graca Machel, the former United Nations expert on the impact of armed conflict on children,
identified the immediate demobilization of all child soldiers as an urgent priority, and recommended the establishment through an optional protocol to the Convention on the Rights of the Child of 18 as the minimum age for recruitment and participation in armed forces; and

(12) the International Committee of the Red Cross, the United Nations Children's Fund (UNICEF), the United Nations High Commission on Refugees, and the United Nations High Commissioner on Human Rights, as well as many nongovernmental organizations, also support the establishment of 18 as the minimum age for military recruitment and participation in armed conflict.
(b) In General: The Congress hereby--

(1) deplores the global use of child soldiers and supports their immediate demobilization;

(2) condemns the abduction of Ugandan children by the LRA;

(3) calls on the Government of Sudan to use its influence with the LRA to secure the release of abducted children and to halt further abductions; and

(4) encourages the United States delegation not to block the drafting of an optional protocol to the Convention on the Rights of the Child that would establish 18 as the minimum age for participation in armed conflict.
(c) Sense of the Congress: It is the sense of the Congress that the President and the Secretary of State should--

(1) support efforts to end the abduction of children by the LRA, secure their release, and facilitate their rehabilitation and reintegration into society;

(2) not block efforts to establish 18 as the minimum age for participation in conflict through an optional protocol to the Convention on the Rights of the Child; and

(3) provide greater support to United Nations agencies and nongovernmental organizations working for the rehabilitation and reintegration of former child soldiers into society.
Sec. 8129. Notwithstanding any other provision of law, the Secretary of Defense shall obligate the funds provided for Counterterror Technical Support in the Department of Defense Appropriations Act, 1998 (under title IV of Public Law 105-56) for the projects and in the amounts provided for in House Report 105-265 of the House of Representatives, One Hundred Fifth Congress, First Session: Provided, That the funds available for the Pulsed Fast Neutron Analysis Project should be executed through cooperation with the Office of National Drug Control Policy.
Sec. 8130. Training and Other Programs. (a) Prohibition: None of the funds made available by this Act may be used to support any training program involving a unit of the security forces of a foreign country if the Secretary of Defense has received credible information from the Department of State that a member of such unit has committed a gross violation of human rights, unless all necessary corrective steps have been taken.
(b) Monitoring: Not more than 90 days after enactment of this Act, the Secretary of Defense, in consultation with the Secretary of State, shall establish procedures to ensure that prior to a decision to conduct any training program referred to in subsection (a), full consideration is given to all information available to the Department of State relating to human rights violations by foreign security forces.
(c) Waiver: The Secretary of Defense, after consultation with the Secretary of State, may waive the prohibition in subsection (a) if he determines that such waiver is required by extraordinary circumstances.
(d) Report: Not more than 15 days after the exercise of any waiver under subsection (c), the Secretary of Defense shall submit a report to the congressional defense committees describing the extraordinary circumstances, the purpose and duration of the training program, the United States forces and the foreign security forces involved in the training program, and the information relating to human rights violations that necessitates the waiver.
Sec. 8131. Notwithstanding any other provision of law, and notwithstanding the provisions of section 509(b) of title 32, United States Code, of the funds made available for Civil Military Programs to the Department of Defense in this Act, not less than $62,394,000 shall be made available for the National Guard ChalleNGe Program.
Sec. 8132. (a) Notwithstanding any other provision of law, the Secretary of the Air Force may convey, without consideration, to Indian tribes located in the State of Montana relocatable military housing units located at Malmstrom Air Force Base, Montana, that are excess to the needs of the Air Force.
(b) Processing of Requests: (1) The Secretary of the Air Force shall convey military housing units under subsection (a) in accordance with the requests for such units that are submitted to the Secretary by the Operation Walking Shield Program on behalf of Indian tribes located in the State of Montana.

(2) The Operation Walking Shield Program shall resolve any conflicts among requests of Indian tribes for housing units under subsection (a) before submitting such requests to the Secretary of the Air Force under paragraph (1).
(c) Indian Tribe Defined: In this section, the term `Indian tribe' means any recognized Indian tribe included on the current list published by the Secretary of the Interior under section 104 of the Federally Recognized Indian Tribe List Act of 1994 (Public Law 103-454; 108 Stat. 4792; 25 U.S.C. 479a-1).
Sec. 8133. (a) The Secretary of Defense, in coordination with the Secretary of Health and Human Services, may carry out a program to distribute surplus dental equipment of the Department of Defense, at no cost to the Department of Defense, to Indian health service facilities and to federally-qualified health centers (within the meaning of section 1905(l)(2)(B) of the Social Security Act (42 U.S.C. 1396d(l)(2)(B))).
(b) Not later than March 15, 1999, the Secretary of Defense shall submit to Congress a report on the program, including the actions taken under the program.
Sec. 8134. The total amount appropriated in Title III of this Act is hereby reduced by $142,100,000.
Sec. 8135. Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $193,600,000 to reflect savings from favorable foreign currency fluctuations, to be distributed as follows:

`Military Personnel, Army', $5,300,000;

`Military Personnel, Navy', $12,000,000;

`Military Personnel, Marine Corps', $4,200,000;

`Military Personnel, Air Force', $8,100,000;

`Operation and Maintenance, Army', $111,500,000;

`Operation and Maintenance, Navy', $11,500,000;

`Operation and Maintenance, Marine Corps', $3,300,000;

`Operation and Maintenance, Air Force', $26,200,000; and

`Operation and Maintenance, Defense-Wide', $11,500,000.
Sec. 8136. Notwithstanding any other provision in this Act, the total amount appropriated in this Act is hereby reduced by $502,000,000 to reflect savings from reductions in the price of bulk fuel, to be distributed as follows:

`Operation and Maintenance, Army', $36,000,000;

`Operation and Maintenance, Navy', $167,000,000;

`Operation and Maintenance, Marine Corps', $8,000,000;

`Operation and Maintenance, Air Force', $176,000,000;

`Operation and Maintenance, Defense-Wide', $67,000,000;

`Operation and Maintenance, Army Reserve', $1,400,000;

`Operation and Maintenance, Navy Reserve', $8,200,000;

`Operation and Maintenance, Air Force Reserve', $11,700,000;

`Operation and Maintenance, Army National Guard', $3,500,000; and

`Operation and Maintenance, Air National Guard', $23,200,000.
Sec. 8137. Global Positioning System Frequency Spectrum: In order to guard against disruption of Global Positioning System services that are vital to the national security and economic interests of the United States, the Secretary of Defense shall submit to the congressional defense committees a report setting forth a national strategy to (a) protect the integrity of the Global Positioning System frequency spectrum against interference and disruption, (b) achieve full and effective use by GPS of radio frequency spectrum currently allocated by the International Telecommunications Union for transmission of satellite navigation signals, and (c) provide for any additional allocation of spectrum necessary for GPS evolution. Such report shall be submitted to the congressional defense committees within 120 days of enactment of this Act.
Sec. 8138. The Secretary of Defense shall submit a report to Congress concurrent with submission of the fiscal year 2000 President's budget regarding past military deployment rates and future deployment rate goals. Such report shall contain a listing of the monthly overseas deployment rates for military personnel of each service covering each fiscal year beginning with fiscal year 1989, the location and size of each deployment, a description of the methodology used to determine the deployment rates for each service, and a discussion of the maximum yearly deployment rates for each service that can be sustained on a continuous basis in non-emergency situations over the next five years given the resources and personnel end strengths contained in the Future Years Defense Plan.

Sec. 8139. (a) Conveyance Required: The Secretary of the Air Force shall convey, without consideration, to the Town of Newington, New Hampshire, all right, title, and interest of the United States in and to a parcel of real property, together with improvements thereon, consisting of approximately 1.3 acres located at former Pease Air Force Base, New Hampshire, and known as the site of the old Stone School.
(b) Inapplicability of Certain Disposal Authorities: The Secretary shall make the conveyance required by subsection (a) without regard to the provisions of section 204(b) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note).
(c) Description of Property: The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the Secretary.
(d) Additional Terms and Conditions: The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interest of the United States.
Sec. 8140. (a) The Secretary of the Navy may lease to the University of Central Florida (in this section referred to as the `University'), or a representative or agent of the University designated by the University, such portion of the property known as the Naval Air Warfare Center, Training Systems Division, Orlando, Florida, as the Secretary considers appropriate as a location for the establishment of a center for research in the fields of law enforcement, public safety, civil defense, and national defense.

(b) Notwithstanding any other provision of law, the term of the lease under subsection (a) may not exceed 50 years.

(c) As consideration for the lease under subsection (a), the University shall--

(1) undertake and incur the cost of the planning, design, and construction required to establish the center referred to in that subsection; and

(2) during the term of the lease, provide the Secretary such space in the center for activities of the Navy as the Secretary and the University jointly consider appropriate.

(d) The Secretary may require such additional terms and conditions in connection with the lease authorized by subsection (a) as the Secretary considers appropriate to protect the interest of the United States.
Sec. 8141. (a) The Secretary of the Air Force may enter into an agreement to lease from the City of Phoenix, Arizona, the parcel of real property described in subsection (b), together with improvements on the property, in consideration of annual rent not in excess of one dollar.
(b) The real property referred to in subsection (a) is a parcel, known as Auxiliary Field 3, that is located approximately 12 miles north of Luke Air Force Base, Arizona, in section 4 of township 3 north, range 1 west of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, is bounded on the north by Bell Road, on the east by Litchfield Road, on the south by Greenway Road, and on the west by agricultural land, and is composed of approximately 638 acres, more or less, the same property that was formerly an Air Force training and emergency field developed during World War II.
(c) The Secretary may require such additional terms and conditions in connection with the lease under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.
Sec. 8142. Notwithstanding any other provision of law, the Secretary of Defense may retain all or a portion of the family housing at Fort Buchanan, Puerto Rico, as the Secretary deems necessary to meet military family housing needs arising out of the relocation of elements of the U.S. Army South to Fort Buchanan.
Sec. 8143. (a) Conveyance Authorized.--The Secretary of the Navy may convey to the City of Seattle, Washington (in this section referred to as the `City'), all right, title, and interest of the United States in and to a parcel of real property, together with improvements thereon, consisting of approximately 11.82 acres, the location of the Magnolia housing area, Seattle, Washington, less such areas as the Secretary determines are required to support continued Navy family housing requirements.
(b) Consideration.--As consideration for the conveyance under subsection (a), the City shall pay to the United States an amount equal to the fair market value (as determined by the Secretary) of the portion of the real property to be conveyed under subsection (a) that was not donated to the United States by the City. The portion of the real property to be conveyed under subsection (a) that was donated to the United States by the City will be returned to the City at no cost.
(c) Condition.--The conveyance authorized by subsection (a) shall be subject to the condition that the City accept the real property in its condition at the time of conveyance.
(d) Description of Property.--The exact acreage and legal description of the property to be conveyed for monetary consideration; as well as the acreage of the portion to be returned to the City at no cost as described in subsection (b), shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.
(e) Use of Funds.--(1) The Secretary shall use any amounts paid to the Secretary under subsection (b) for Navy family housing purposes in the Puget Sound region. (2) If amounts referred to in paragraph (1) remain unexpended after the use for Navy family housing purposes referred to in that paragraph, the Secretary shall deposit such unexpended amounts in the account established under section 204(h) of the Federal Property and Administrative Services Act (40 U.S.C. 485(h)).
(f) Additional Terms and Conditions.--The Secretary may require such additional terms and conditions in connection with the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.

Sec. 8144. (a) Conveyance Authorized: The Secretary of the Army may convey to the city of Reading, Pennsylvania, hereafter referred to as the `City' or to another entity designated by the City, all right and title, and interest of the United States in and to a parcel of real property (including improvements thereon) consisting of approximately 1.8 acres at the Army Reserve Center located at 1800 North 12th Street in Reading, Pennsylvania, for redevelopment purposes.
(b) Consideration: The conveyance authorized under subsection (a) shall be subject to the condition that the City--

(1) Will pay fair market value for the property, if the property is to be conveyed to or used by a business enterprise.

(2) Will obtain the property without consideration if the property is to be used by a state or local governmental agency.
(c) Administrative Expenses: In connection with the conveyance under subsection (a), the Secretary may accept amounts provided by the city or other persons to cover administrative expenses incurred by the Secretary in entering into the transaction. Amounts collected under this subsection (b) for administrative expenses shall be credited to the appropriation, fund, or account from which the expenses were paid. Amounts so credited shall be merged with funds in such appropriation, fund or account and shall be available for the same purposes and subject to the same limitations as the funds with which merged.
(d) Description of Property: The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by the City.
(e) Additional Terms and Conditions: The Secretary may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

Sec. 8145. Notwithstanding any other provision of law, using funds previously appropriated into the Department of Defense Base Closure Account 1990 established by section 2906(a)(1) of the Department of Defense Authorization Act, 1991 (Public Law 101-510), the Secretary of the Air Force shall obligate up to $7,646,000 for demolition and related environmental restoration of 31 buildings, possessing asbestos and lead-based paint, at the former Norton Air Force Base, California.
Sec. 8146. Liquidity of Working-Capital Funds. (a) Increased Cash Balances: The Secretary of Defense shall administer the working-capital funds of the Department of Defense during fiscal year 1999 so as to ensure that the total amount of the cash balances in such funds on September 30, 1999, exceeds the total amount of the cash balances in such funds on September 30, 1998, by $1,300,000,000.
(b) Actions Regarding Unbudgeted Losses: The Under Secretary of Defense (Comptroller) shall take such actions regarding unbudgeted losses for the working-capital funds as may be necessary in order to ensure that such unbudgeted losses do not preclude the Secretary of Defense from achieving the increase in cash balances in working-capital funds required under subsection (a).
(c) Waiver: The Secretary of Defense may waive the requirements of this section upon certifying to Congress, in writing, that the waiver is necessary to meet requirements associated with--

(A) a contingency operation (as defined in section 101(a)(13) of title 10, United States Code); or

(B) an operation of the Armed Forces that commenced before October 1, 1998, and continues during fiscal year 1999.
(2) The waiver authority under paragraph (1) may not be delegated to any official other than the Deputy Secretary of Defense.
(3) The waiver authority under paragraph (1) does not apply to the limitation in subsection (d) or the limitation in section 2208(l)(3) of title 10, United States Code (as added by subsection (e)).
(d) Permanent Limitation on Advance Billings: (1) Section 2208(l) of title 10, United States Code, is amended--

(A) by redesignating paragraph (3) as paragraph (4); and

(B) by inserting after paragraph (2) the following new paragraph (3):
`(3) The total amount of the advance billings rendered or imposed for all working-capital funds of the Department of Defense in a fiscal year may not exceed $1,000,000,000.'.
(2) Section 2208(l)(3) of such title, as added by paragraph (1), applies to fiscal years after fiscal year 1999.
(e) Semiannual Report.--(1) The Under Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives--

(A) not later than May 1, 1999, a report on the administration of this section for the six-month period ending on March 31, 1999; and

(B) not later than November 1, 1999, a report on the administration of this section for the six-month period ending on September 30, 1999.
(2) Each report shall include, for the period covered by the report, the following:

(A) The profit and loss status of each working-capital fund activity.

(B) The actions taken by the Secretary of each military department to use assessments of surcharges to correct for unbudgeted losses.
Sec. 8147. The Secretary of Defense shall establish, through a revised Defense Integrated Military Human Resources System (DIMHRS), a defense reform initiative enterprise pilot program for military manpower and personnel information: Provided, That this pilot program should include all functions and systems currently included in DIMHRS and shall be expanded to include all appropriate systems within the enterprise of personnel, manpower, training, and compensation: Provided further, That in establishing a revised DIMHRS enterprise program for manpower and personnel information superiority the functions of this program shall include, but not be limited to: (1) an analysis and determination of the number and kinds of information systems necessary to support manpower and personnel within the Department of Defense; and (2) the establishment of programs to develop and implement information systems in support of manpower and personnel to include an enterprise level strategic approach, performance and results based management, business process improvement and other non-material solutions, the use of commercial or government off-the-shelf technology, the use of modular contracting as defined by Public Law 104-106, and the integration and consolidation of existing manpower and personnel information systems: Provided further, That the Secretary of Defense shall re-instate fulfillment standards designated as ADS-97-03-GD, dated January, 1997: Provided further, That the requirements of this section should be implemented not later than six months after the date of enactment of this Act.

Sec. 8148. (a) The Secretary of Defense, after consultation with the Chairman of the Joint Chiefs of Staff and the military service chiefs, shall conduct a comprehensive reassessment of existing military compensation, benefits, and related programs. The Secretary shall consider the effectiveness of these programs in providing an adequate standard of living and family support for service members and dependents, the current and projected effects of these programs on recruiting and retention of service members, and improvements which could be gained by potential changes in these programs.
(b) In conducting this assessment, the Secretary's analysis shall consider, but not be limited to, the following areas:

(1) Military pay and benefits, to include special pay and targeted bonus programs;

(2) The military retirement system, including an assessment of the effects of the significant changes made to the retirement system in 1986;

(3) Health care programs; and

(4) Housing, family support, and morale, welfare and recreation programs.
(c) The Secretary shall consider the cumulative and complementary ability of these programs, and the effects of potential modifications to these programs, in terms of their ability to contribute to the attainment of existing and future manpower requirements of the military services, as well as the provision of a fair and equitable quality of life for service members and their dependents.
(d) The Secretary shall provide an initial report on these issues to the congressional defense committees within 60 days of the enactment of this Act.
(e) Concurrent with submission of the fiscal year 2000 budget, the Secretary shall provide a comprehensive assessment of these issues, and proposed changes in existing programs should he determine they are warranted, to the Congress.
This Act may be cited as the `Department of Defense Appropriations Act, 1999'.

And the Senate agree to the same.

BILL YOUNG,

JOE MCDADE,

JERRY LEWIS,

JOE SKEEN,

DAVID L. HOBSON,

HENRY BONILLA,

GEORGE R. NETHERCUTT, JR.,

ERNEST J. ISTOOK, JR.,

RANDY `DUKE' CUNNINGHAM,

BOB LIVINGSTON,

JOHN P. MURTHA,

NORMAN D. DICKS,

W.G. (BILL) HEFNER,

MARTIN OLAV SABO,

JULIAN C. DIXON,

PETER J. VISCLOSKY,
Managers on the Part of the House.

[Page: H8675]

TED STEVENS,

THAD COCHRAN,

PETE V. DOMENICI,

CHRISTOPHER S. BOND,

MITCH MCCONNELL,

RICHARD C. SHELBY,

JUDD GREGG,

KAY BAILEY HUTCHISON,

DANIEL K. INOUYE,

FRITZ HOLLINGS,

ROBERT BYRD,

PATRICK J. LEAHY,

DALE BUMPERS,

FRANK R. LAUTENBERG,

TOM HARKIN,

BYRON L. DORGAN,
Managers on the Part of the Senate.

JOINT EXPLANATORY STATEMENT

The managers on the part of the House and the Senate at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 4103), making appropriations for the Department of Defense for the fiscal year ending September 30, 1999, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report.

The conference agreement on the Department of Defense Appropriations Act, 1999, incorporates some of the provisions of both the House and Senate versions of the bill. The language and allocations set forth in House Report 105-591 and Senate Report 105-200 should be complied with unless specifically addressed in the accompanying bill and statement of the managers to the contrary.

Senate Amendment: The Senate deleted the entire House bill after the enacting clause and inserted the Senate bill. The conference agreement includes a revised bill.

Definition of Program, Project, and Activity

The conferees agree that for the purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100-119) and by the Budget Enforcement Act of 1990 (Public Law 101-508), the term program, project, and activity for appropriations contained in this Act shall be defined as the most specific level of budget items identified in the Department of Defense Appropriations Act, 1999, the accompanying House and Senate Committee reports, the conference report and accompanying joint explanatory statement of the managers of the Committee of Conference, the related classified annexes and reports, and the P-1 and R-1 budget justification documents as subsequently modified by Congressional action. The following exception to the above definition shall apply:

For the Military Personnel and the Operation and Maintenance accounts, the term `program, project, and activity' is defined as the appropriations accounts contained in the Department of Defense Appropriations Act. At the time the President submits his budget for fiscal year 2000, the conferees direct the Department of Defense to transmit to the congressional defense committees budget justification documents to be known as the `M-1' and `O-1' which shall identify, at the budget activity, activity group, and subactivity group level, the amounts requested by the President to be appropriated to the Department of Defense for operation and maintenance in any budget request, or amended budget request, for fiscal year 2000.

SPECIAL INTEREST ITEMS

Items for which the conferees have specifically provided funds through a conference agreement or through adoption of original House or Senate recommendations in Research, Development, Test, and Evaluation or Procurement appropriations are Congressional special interest items for the purpose of the Base for Reprogramming (DD Form 1414). These items are identified in the respective committee or conference reports using the phrases `only for' or `only to' or are specifically identified in the tables. Each item will be carried on the DD form 1414 in the amount agreed to by the conferees. The Department of Defense shall consult with the congressional defense committees before issuing the DD form 1414 so there is common agreement on items of special interest. In no case will the Department of Defense transfer funds from special interest items through the below threshold reprogramming process. In addition, the term program in Section 8111 includes any subprogram, modification, project, or subproject not previously justified and appropriated in a given appropriation account by the Congress through the normal budget process.

TITLE I--MILITARY PERSONNEL

The conferees agree to the following amounts for the Military Personnel accounts as follows:


[In thousands of dollars]
----------------------------------------------------------------------
                              Budget      House     Senate Conference 
----------------------------------------------------------------------
Active personnel:                                                     
Army                      21,002,051 20,908,851 20,822,051 20,841,687 
Navy                      16,613,053 16,560,253 16,532,153 16,570,754 
Marine Corps               6,272,089  6,241,189  6,253,189  6,263,387 
Air Force                 17,311,683 17,201,583 17,205,660 17,211,987 
Reserve personnel:                                                    
Army                       2,152,075  2,171,675  2,152,075  2,167,052 
Navy                       1,387,379  1,427,979  1,387,379  1,426,663 
Marine Corps                 401,888    403,513    401,888    406,616 
Air Force                    856,176    850,576    856,176    852,324 
National Guard personnel:                                             
Army                       3,404,595  3,413,195  3,499,595  3,489,987 
Air Force                  1,376,097  1,372,997  1,376,097  1,377,109 
Total, Military Personnel 70,777,086 70,551,811 70,486,263 70,607,566 
----------------------------------------------------------------------

PAY RAISE INCREASE

The conferees recommend an increase of $202,455,000 to active and Guard and Reserve personnel accounts to provide for a 3.6 percent military pay raise, an increase of a half percent over the budget request of 3.1 percent.

FORCE STRUCTURE CHANGES

The conferees recommend a total of $106,200,000 in the Military Personnel and Operation and Maintenance accounts for restoration of force structure that was reduced in the budget request, as follow:


[Dollars in thousands]
----------------------------------------------------------------------
                                         Milpers    O&M  Proc.  Total 
----------------------------------------------------------------------
Air Force B-52 aircraft                    3,600 40,100 10,300 54,000 
Army Reserve AGR's                        15,000               15,000 
Navy Reserve P-3 aircraft                  2,600  7,600        10,200 
Army National Guard civilian technicians         27,000        27,000 
----------------------------------------------------------------------

PERSONNEL UNDEREXECUTION SAVINGS

The conferees recommend a total reduction of $220,800,000 for active and reserve military personnel accounts due to lower than projected end strengths, and differences in the actual grade mix of officers and enlisted recommended in the budget request. The General Accounting Office estimates that the active duty components will have approximately 15,000 fewer personnel on board beginning in fiscal year 1999, and the Reserve components approximately 3,700 personnel. As a result, the fiscal year 1999 requirements are overstated.

[Page: H8676]

REPLACEMENT MEDALS AND DECORATIONS

The conferees encourage the Secretary of Defense to take all actions necessary to eliminate the backlog of requests of former service members for replacement medals and decorations.

BACKLOG OF UNPAID RETIRED PAY

The conferees direct the Secretary of Defense to take all actions necessary to eliminate any backlog of unpaid retired pay for former service members, to include those retired from the Guard and Reserve. Not later than ninety days after enactment of this Act, the Secretary of Defense shall submit a report on the backlog of unpaid retired pay. The report shall include the actions taken to eliminate any backlog; the extent of any remaining backlog; and a description of any additional actions required to ensure that retired pay is paid in a timely manner.

Active End Strength


[Fiscal year 1999]
-------------------------------------------------------------------
                           Budget Conference Conference vs. Budget 
-------------------------------------------------------------------
Army                      480,000    480,000                       
Navy                      372,696    372,696                       
Marine Corps              172,200    172,200                       
Air Force                 370,882    370,984                  +102 
Total, Active Personnel 1,395,778  1,395,880                  +102 
-------------------------------------------------------------------

Military Personnel, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------
                                                                                  Budget      House     Senate Conference 
--------------------------------------------------------------------------------------------------------------------------
MILITARY PERSONNEL, ARMY:                                                                                                 
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER BASIC PAY                            3,439,898  3,439,898  3,439,898  3,439,898 
RETIRED PAY ACCRUAL                                                            1,038,849  1,038,849  1,038,849  1,038,849 
BASIC ALLOWANCE FOR HOUSING                                                      561,424    561,424    561,424    561,424 
BASIC ALLOWANCE FOR SUBSISTENCE                                                  147,905    147,905    147,905    147,905 
INCENTIVE PAYS                                                                    64,469     64,469     64,469     64,469 
SPECIAL PAYS                                                                     190,936    190,936    190,936    190,936 
ALLOWANCES                                                                       102,643    102,643    102,643    102,643 
SEPARATION PAY                                                                   142,731    142,731    142,731    142,731 
SOCIAL SECURITY TAX                                                              298,713    298,713    298,713    298,713 
TOTAL, BUDGET ACTIVITY 1                                                       5,987,568  5,987,568  5,987,568  5,987,568 
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL BASIC PAY                 7,437,252  7,437,252  7,437,252  7,437,252 
RETIRED PAY ACCRUAL                                                            2,246,050  2,246,050  2,246,050  2,246,050 
BASIC ALLOWANCE FOR HOUSING                                                    1,171,828  1,171,828  1,171,828  1,171,828 
INCENTIVE PAYS                                                                    68,068     68,068     68,068     68,068 
SPECIAL PAYS                                                                     165,166    175,166    165,166    165,166 
ALLOWANCES                                                                       513,801    513,801    513,801    513,801 
SEPARATION PAY                                                                   325,993    325,993    325,993    325,993 
SOCIAL SECURITY TAX                                                              635,065    635,065    635,065    635,065 
TOTAL, BUDGET ACTIVITY 2                                                      12,563,223 12,573,223 12,563,223 12,563,223 
ACTIVITY 3: PAY AND ALLOWANCES OF CADETS ACADEMY CADETS                           39,084     39,084     39,084     39,084 
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL BASIC ALLOWANCE FOR SUBSISTENCE    774,529    774,529    774,529    774,529 
SUBSISTENCE-IN-KIND                                                              366,887    366,887    366,887    366,887 
TOTAL, BUDGET ACTIVITY 4                                                       1,141,416  1,141,416  1,141,416  1,141,416 
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL ACCESSION TRAVEL                  115,723    115,723    115,723    115,723 
TRAINING TRAVEL                                                                   49,249     49,249     49,249     49,249 
OPERATIONAL TRAVEL                                                               143,258    143,258    143,258    143,258 
ROTATIONAL TRAVEL                                                                575,172    575,172    575,172    575,172 
SEPARATION TRAVEL                                                                161,505    161,505    161,505    161,505 
TRAVEL OF ORGANIZED UNITS                                                         16,731     16,731     16,731     16,731 
NON-TEMPORARY STORAGE                                                             25,271     25,271     25,271     25,271 
TEMPORARY LODGING EXPENSE                                                         11,638     11,638     11,638     11,638 
TOTAL, BUDGET ACTIVITY 5                                                       1,098,547  1,098,547  1,098,547  1,098,547 
ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS APPREHENSION OF MILITARY DESERTERS        780        780        780        780 
INTEREST ON UNIFORMED SERVICES SAVINGS                                               534        534        534        534 
DEATH GRATUITIES                                                                   1,962      1,962      1,962      1,962 
UNEMPLOYMENT BENEFITS                                                            116,010    116,010    116,010    116,010 
SURVIVOR BENEFITS                                                                  7,740      7,740      7,740      7,740 
EDUCATION BENEFITS                                                                76,807     76,807     76,807     76,807 
ADOPTION EXPENSES                                                                    380        380        380        380 
ADVANCE MILITARY PAY                                                             161,000                                  
TOTAL, BUDGET ACTIVITY 6                                                         365,213    204,213    204,213    204,213 
LESS REIMBURSABLES                                                              -193,000   -193,000   -193,000   -193,000 
FOREIGN CURRENCY FLUCTUATION                                                                 -5,500     -7,000            
PERSONNEL UNDEREXECUTION                                                                    -10,700    -12,000    -60,000 
MILITARY PAY SHORTFALL                                                                       74,000                       
PAY RAISE INCREASE                                                                                                 60,636 
TOTAL, MILITARY PERSONNEL, ARMY                                               21,002,051 20,908,851 20,822,051 20,841,687 
--------------------------------------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 6: Other Military Personnel Costs:

2620 Advance Military Pay

-161,000

Undistributed:

Personnel Underexecution

-60,000

Pay Raise Increase

60,636

Military Personnel, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------------------------------------------------
                                                                                   Budget      House     Senate Conference 
---------------------------------------------------------------------------------------------------------------------------
MILITARY PERSONNEL, NAVY:                                                                                                  
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER--BASIC PAY                            2,419,133  2,419,133  2,419,133  2,419,133 
RETIRED PAY ACCRUAL                                                               730,578    730,578    730,578    730,578 
BASIC ALLOWANCE FOR HOUSING                                                       516,471    516,471    516,471    516,471 
BASIC ALLOWANCE FOR SUBSTITUTE                                                    102,537    102,537    102,537    102,537 
INCENTIVE PAYS                                                                    113,365    113,365    113,365    113,365 
SPECIAL PAYS                                                                      214,711    214,711    214,711    214,711 
ALLOWANCES                                                                         73,643     73,643     73,643     73,643 
SEPARATION PAY                                                                     71,505     71,505     71,505     71,505 
SOCIAL SECURITY TAX                                                               205,083    205,083    205,083    205,083 
TOTAL, BUDGET ACTIVITY 1                                                        4,447,026  4,447,026  4,447,026  4,447,026 
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL--BASIC PAY                 5,975,635  5,975,635  5,975,635  5,975,635 
RETIRED PAY ACCRUAL                                                             1,802,223  1,802,223  1,802,223  1,802,223 
BASIC ALLOWANCE FOR HOUSING                                                     1,320,566  1,320,566  1,320,566  1,320,566 
INCENTIVE PAYS                                                                     88,091     88,091     88,091     88,091 
SPECIAL PAYS                                                                      487,881    497,281    487,881    487,881 
ALLOWANCE                                                                         435,031    435,031    435,031    435,031 
SEPARATION PAY                                                                    175,754    175,754    175,754    175,754 
SOCIAL SECURITY TAX                                                               516,201    516,201    516,201    516,201 
TOTAL, BUDGET ACTIVITY 2                                                       10,801,382 10,810,782 10,801,382 10,801,382 
ACTIVITY 3: PAY AND ALLOWANCES OF MIDSHIPMEN                                       35,947     35,947     35,947     35,947 
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL--BASIC ALLOWANCE FOR SUBSISTENCE    514,384    514,384    514,384    514,384 
SUBSISTENCE-IN-KIND                                                               281,190    281,190    281,190    281,190 
TOTAL, BUDGET ACTIVITY 4                                                          795,574    795,574    795,574    795,574 
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL--ACCESSION TRAVEL                   45,760     45,760     45,760     45,760 
TRAINING TRAVEL                                                                    59,548     59,548     59,548     59,548 
OPERATONAL TRAVEL                                                                 150,000    150,000    150,000    150,000 
ROTATIONAL TRAVEL                                                                 223,494    223,494    223,494    223,494 
SEPARATION TRAVEL                                                                 108,796    108,796    108,796    108,796 
TRAVEL OF ORGANIZED UNITS                                                          16,840     16,840     16,840     16,840 
NON-TEMPORARY STORAGE                                                              13,910     13,910     13,910     13,910 
TEMPORARY LODGING EXPENSE                                                           5,751      5,751      5,751      5,751 
OTHER                                                                               4,638      4,638      4,638      4,638 
TOTAL, BUDGET ACTIVITY 5                                                          628,737    628,737    628,737    628,737 
ACTIVITY 6. OTHER MILITARY PERSONNEL COSTS--APPREHENSION OF MILITARY DESERTERS        826        826        826        826 
INTEREST ON UNIFORMED SERVICES SAVINGS                                                 40         40         40         40 
DEATH GRATUITIES                                                                    1,806      1,806      1,806      1,806 
UNEMPLOYMENT BENEFITS                                                              62,922     62,922     62,922     62,922 
SURVIVOR BENEFITS                                                                   3,540      3,540      3,540      3,540 
EDUCATION BENEFITS                                                                 19,888     33,788     19,888     19,888 
ADOPTION EXPENSES                                                                     272        272        272        272 
ADVANCE MILITARY PAY                                                               69,000                                  
TOTAL, BUDGET ACTIVITY 6                                                          158,294    103,194     89,294     89,294 
LESS REIMBURSABLES                                                               -253,907   -253,907   -253,907   -253,907 
FOREIGN CURRENCY FLUCTUATION                                                                  -9,100     -5,300            
PERSONNEL UNDEREXECUTION                                                                      -8,000     -6,600    -25,000 
ACTIVE DUTY SPECIAL WORK                                                                      10,000                 5,000 
PAY RAISE INCREASE                                                                                                  46,701 
TOTAL, MILITARY PERSONNEL, NAVY                                                16,613,053 16,560,253 16,532,153 16,570,754 
---------------------------------------------------------------------------------------------------------------------------

[Page: H8677]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 6: Other Military Personnel Costs:

5450 Advance Military Pay

-69,000

Undistributed:

Personnel Underexecution

-25,000

Active Duty Special Work

5,000

Pay Raise Increase

46,701

Military Personnel, Marine Corps

The conference agreement on items addressed by either the House or the Senate is as follows:


(In thousands of dollars)
-----------------------------------------------------------------------------------------------
                                                         Budget     House    Senate Conference 
-----------------------------------------------------------------------------------------------
MILITARY PERSONNEL, MARINE CORPS                                                               
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER;                                                     
BASIC PAY                                               780,978   780,978   780,978    780,978 
RETIRED PAY ACCRUAL                                     235,855   235,855   235,855    235,855 
BASIC ALLOWANCE FOR HOUSING                             132,455   132,455   132,455    132,455 
BASIC ALLOWANCE FOR SUBSISTENCE                          33,795    33,795    33,795     33,795 
INCENTIVE PAYS                                           39,657    39,657    39,657     39,657 
SPECIAL PAYS                                                938       938       938        938 
ALLOWANCES                                               18,583    18,583    18,583     18,583 
SEPARATION PAY                                           15,288    15,288    15,288     15,288 
SOCIAL SECURITY TAX                                      65,947    65,947    65,947     65,947 
TOTAL, BUDGET ACTIVITY 1                              1,323,496 1,323,496 1,323,496  1,323,496 
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL:                                          
BASIC PAY                                             2,638,628 2,638,628 2,638,628  2,638,628 
RETIRED PAY ACCRUAL                                     794,902   794,902   794,902    794,902 
BASIC ALLOWANCE FOR HOUSING                             401,062   401,062   401,062    401,062 
INCENTIVE PAYS                                            8,376     8,376    13,376      8,376 
SPECIAL PAY                                              56,918    59,918    56,918     56,918 
ALLOWANCES                                              148,132   148,132   148,132    148,132 
SEPARATION PAY                                           62,104    62,104    62,104     62,104 
SOCIAL SECURITY TAX                                     224,831   224,831   224,831    224,831 
TOTAL, BUDGET ACTIVITY 2                              4,334,953 4,337,953 4,339,953  4,334,953 
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL:                                                 
BASIC ALLOWANCE FOR SUBSISTENCE                         228,436   228,436   228,436    228,436 
SUBSISTENCE-IN-KIND                                     134,007   134,007   134,007    134,007 
TOTAL, BUDGET ACTIVITY 4                                362,443   362,443   362,443    362,443 
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL:                                                
ACCESSION TRAVEL                                         30,096    30,096    30,096     30,096 
TRAINING TRAVEL                                           5,071     5,071     5,071      5,071 
OPERATIONAL TRAVEL                                       52,995    52,995    52,995     52,995 
ROTATIONAL TRAVEL                                        87,581    87,581    87,581     87,581 
SEPARATION TRAVEL                                        42,012    42,014    42,014     42,014 
TRAVEL OF ORGANIZED UNITS                                   771       771       771        771 
NON-TEMPORARY STORAGE                                     4,726     4,726     4,726      4,726 
TEMPORARY LODGING EXPENSE                                 2,802     2,802     2,802      2,802 
OTHER                                                     1,698     1,698     1,698      1,698 
TOTAL, BUDGET ACTIVITY 5                                227,754   227,754   227,754    227,754 
ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS                                                     
APPREHENSION OF MILITARY DESERTERS                          927       927       927        927 
INTEREST ON UNIFORMED SERVICES SAVINGS                       16        16        16         16 
DEATH GRATUITIES                                            990       990       990        990 
UNEMPLOYMENT BENEFITS                                    27,846    27,846    27,846     27,846 
SURVIVOR BENEFITS                                         1,614     1,614     1,614      1,614 
EDUCATION BENEFITS                                        6,039    11,939    11,039      6,039 
ADOPTION EXPENSES                                            47        47        47         47 
ADVANCE MILITARY PAY                                     18,000                                
TOTAL, BUDGET ACTIVITY 6                                 55,479    43,379    42,479     37,479 
LESS REIMBURSABLES                                      -32,036   -32,036   -32,036    -32,036 
FOREIGN CURRENCY FLUCTUATION                                       -3,200    -2,000            
PERSONNEL UNDEREXECUTION                                          -18,600    -8,900     -9,000 
PAY RAISE INCREASE                                                                      18,598 
TOTAL, MILITARY PERSONNEL, MARINE CORPS               6,272,089 6,241,189 6,253,189  6,263,387 
-----------------------------------------------------------------------------------------------

[Page: H8678]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 6: Other Military Personnel Costs:

Advance Military Pay

-18,000

Undistributed:

Personnel Underexecution

-9,300

Pay Raise Increase

18,598

Military Personnel, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-------------------------------------------------------------------------------------------------
                                                         Budget      House     Senate Conference 
-------------------------------------------------------------------------------------------------
MILITARY PERSONNEL, AIR FORCE                                                                    
ACTIVITY 1: PAY AND ALLOWANCES OF OFFICER                                                        
BASIC PAY                                             3,346,985  3,346,985  3,346,985  3,346,985 
RETIRED PAY ACCRUAL                                   1,010,789  1,010,789  1,010,789  1,010,789 
BASIC ALLOWANCE FOR HOUSING                             579,333    579,333    579,333    579,333 
BASIC ALLOWANCE FOR SUBSISTENCE                         136,285    136,285    136,285    136,285 
INCENTIVE PAYS                                          208,497    208,497    208,497    208,497 
SPECIAL PAYS                                            188.576    188,576    188,576    188,576 
ALLOWANCES                                               92,782     92,782     92,782     92,782 
SEPARATION PAY                                          108,876    108,876    108,876    108,876 
SOCIAL SECURITY TAX                                     289,575    289,575    289,575    289,575 
TOTAL, BUDGET ACTIVITY 1                              5,961,698  5,961,698  5,961,698  5,961,698 
ACTIVITY 2: PAY AND ALLOWANCES OF ENLISTED PERSONNEL                                             
BASIC PAY                                             5,851,982  5,851,982  5,851,982  5,851,982 
RETIRED PAY ACCRUAL                                   1,767,299  1,767,299  1,767,299  1,767,299 
BASIC ALLOWANCE FOR HOUSING                           1,008,454  1,008,454  1,008,454  1,008,454 
INCENTIVE PAYS                                           25,744     25,744     25,744     25,744 
SPECIAL PAYS                                             80,528     80,528     80,528     80,528 
ALLOWANCES                                              415,835    415,835    415,835    415,835 
SEPARATION PAY                                           66,262     66,262     66,262     66,262 
SOCIAL SECURITY TAX                                     508,263    508,263    508,263    508,263 
TOTAL, BUDGET ACTIVITY 2                              9,724,367  9,724,367  9,724,367  9,724,367 
ACTIVITY 3: PAY AND ALLOWANCES OF CADETS                                                         
ACADEMY CADETS                                           36,021     36,021     36,021     36,021 
ACTIVITY 4: SUBSISTENCE OF ENLISTED PERSONNEL                                                    
BASIC ALLOWANCE FOR SUBSISTENCE                         683,108    683,108    683,108    683,108 
SUBSISTENCE-IN-KIND                                     111,954    111,954    111,954    111,954 
TOTAL, BUDGET ACTIVITY 4                                795,062    795,062    795,062    795,062 
ACTIVITY 5: PERMANENT CHANGE OF STATION TRAVEL                                                   
ACCESSION TRAVEL                                         54,193     54,193     54,193     54,193 
TRAINING TRAVEL                                          56,225     56,225     56,225     56,225 
OPERATIONAL TRAVEL                                      149,492    149,492    149,492    149,492 
ROTATIONAL TRAVEL                                       443,964    443,964    443,964    443,964 
SEPARATION TRAVEL                                        96,955     96,955     96,955     96,955 
TRAVEL OF ORGANIZED UNITS                                27,455     27,455     27,455     27,455 
NON-TEMPORARY STORAGE                                    22,714     22,714     22,714     22,714 
TEMPORARY LODGING EXPENSE                                38,417     38,417     38,417     38,417 
OTHER                                                     2,531      2,531      2,531      2,531 
TOTAL, BUDGET ACTIVITY 5                                891,946    891,946    891,946    891,946 
ACTIVITY 6: OTHER MILITARY PERSONNEL COSTS                                                       
APPREHENSION OF MILITARY DESERTERS                          100        100        100        100 
INTEREST ON UNIFORMED SERVICES SAVINGS                      575        575        575        575 
DEATH GRATUITIES                                          1,470      1,470      1,470      1,470 
UNEMPLOYED BENEFITS                                      41,623     37,623     41,623     37,623 
SURVIVOR BENEFITS                                         4,442      4,442      4,442      4,442 
EDUCATION BENEFITS                                        5,193      5,193      5,193      5,193 
ADOPTION EXPENSES                                           800        800        800        800 
ADVANCE MILITARY PAY                                     53,000                                  
OTHER                                                       550        550        550        550 
TOTAL, BUDGET ACTIVITY 6                                107,753     50,753     54,753     50,753 
LESS REIMBURSABLES                                     -205,164   -205,164   -205,164   -205,164 
FOREIGN CURRENCY FLUCTUATION                                        -3,100     -3,623            
PERSONNEL UNDEREXECUTION                                           -50,000    -53,000    -97,000 
B-52 FORCE STRUCTURE                                                            3,600      3,600 
PAY RAISE INCREASE                                                                        50,704 
TOTAL, MILITARY PERSONNEL, AIR FORCE                 17,311,683 17,201,583 17,205,660 17,211,987 
-------------------------------------------------------------------------------------------------

[Page: H8679]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 6: Other Military Personnel Costs:

Unemployment Benefits

-4,000

Advance Military Pay

-53,000

Undistributed:

Personnel Underexecution

-97,000

B-52 Force Structure

3,600

Pay Raise Increase

50,704

National Guard and Reserve Forces

The conferees agree to provide $9,719,751,000 in Reserve personnel appropriations, $9,810,398,000 in Operation and maintenance appropriations and $352,000,000 in National Guard and Reserve Equipment appropriation. These funds support a Selected Reserve strength of 877,290 as shown below.

Reserve End Strength


[Fiscal year 1998]
--------------------------------------------------------------
                      Budget Conference Conference vs. Budget 
--------------------------------------------------------------
Select Reserve:                                               
Army Reserve         208,000    208,000                       
Navy Reserve          90,843     91,039                  +196 
Marine Corps Reserve  40,018     40,018                       
Air Force Reserve     74,242     74,242                       
Army National Guard  357,000    357,000                       
Air National Guard   106,991    106,991                       
Total                877,094    877,290                  +196 
AGR/TARS:                                                     
Army Reserve          11,804     12,804                +1,000 
Navy Reserve          15,590     15,618                   +28 
Marine Corps Reserve   2,362      2,362                       
Air Force Reserve        991        991                       
Army National Guard   21,763     21,763                       
Air National Guard    10,930     10,930                       
Total                 64,440     64,468                +1,028 
Technicians:                                                  
Army Reserve           6,474      6,474                       
Air Force Reserve      9,761      9,761                       
Army National Guard   23,815     24,761                  +946 
Air National Guard    22,750     22,750                       
Total                 62,800     63,746                  +946 
--------------------------------------------------------------

Reserve Personnel, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------------------
                                                    Budget     House    Senate Conference 
------------------------------------------------------------------------------------------
 RESERVE PERSONNEL, ARMY:                                                                 
 ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:                                                
 PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)     869,736   869,736   869,736    869,736 
 PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)    26,345    26,345    26,345     26,345 
 PAY GROUP F TRAINING (RECRUITS)                   140,498   140,498   140,498    140,498 
PAY GROUP P TRAINING (PIPELINE RECRUITS)             8,024     8,024     8,024      8,024 
TOTAL, BUDGET ACTIVITY 1                         1,044,603 1,044,603 1,044,603  1,044,603 
ACTIVITY 2: OTHER TRAINING AND SUPPORT:                                                   
MOBILIZATION TRAINING                                7,330     7,330     7,330      7,330 
SCHOOL TRAINING                                     92,702    92,702    92,702     92,702 
SPECIAL TRAINING                                   101,455   101,455   101,455    101,455 
ADMINISTRATION AND SUPPORT                         795,108   795,108   795,108    795,108 
EDUCATION BENEFITS                                  20,996    20,996    20,996     20,996 
ROTC--SENIOR, JUNIOR SCHOLARSHIP                    57,547    57,547    57,547     57,547 
HEALTH PROFESSION SCHOLARSHIP PROGRAM               21,554    21,554    21,554     21,554 
OTHER PROGRAMS                                      10,780    10,780    10,780     10,780 
TOTAL, BUDGET ACTIVITY 2                         1,107,472 1,107,472 1,107,472  1,107,472 
PERSONNEL UNDEREXECUTION                                      -5,400               -5,400 
FULL TIME SUPPORT/AGR'S                                       25,000               15,000 
PAY RAISE INCREASE                                                                  5,377 
TOTAL RESERVE PERSONNEL, ARMY                    2,152,075 2,717,675 2,152,075  2,167,052 
------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Undistributed:

Personnel Underexecution

-5,400

Full-time Support/AGR's

15,000

Pay Raise Increase

5,377

Reserve Personnel, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------------
                                                 Budget     House    Senate Conference 
---------------------------------------------------------------------------------------
RESERVE PERSONNEL, NAVY:                                                               
ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING:                                              
PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)   551,421   551,421   551,421    551,421 
TOTAL, BUDGET ACTIVITY 1                        551,421   551,421   551,421    551,421 
ACTIVITY 2: OTHER TRAINING AND SUPPORT:                                                
MOBILIZATION TRAINING                             3,028     3,028     3,028      3,028 
SCHOOL TRAINING                                   6,091     6,091     6,091      6,091 
SPECIAL TRAINING                                 21,741    21,741    21,741     21,741 
ADMINISTRATION AND SUPPORT                      757,567   757,567   757,567    757,567 
EDUCATION BENEFITS                                3,983     3,983     3,983      3,983 
ROTC--SENIOR, JUNIOR, SCHOLARSHIP                21,175    21,175    21,175     21,175 
HEALTH PROFESSION SCHOLARSHIP PROGRAM            18,892    18,892    18,892     18,892 
OTHER PROGRAMS                                    3,481     3,481     3,481      3,481 
TOTAL BUDGET ACTIVITY 2                         835,958   835,958   835,958    835,958 
PERSONNEL UNDEREXECUTION                                   -5,000               -5,000 
CONTRIBUTORY SUPPORT TO CINCS                              10,000                5,000 
ANNUAL TRAINING                                            33,000               33,000 
P-3 SQUADRONS                                               2,600                2,600 
PAY RAISE INCREASE                                                               3,684 
TOTAL, RESERVE PERSONNEL, NAVY                1,387,379 1,427,979 1,387,379  1,426,663 
---------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Undistributed:

Personnel Underexection

-5,000

Contributory Support to CINCs

5,000

Annual Training

33,000

P-3 Squadrons

2,600

Pay Raise Increase

3,684

Reserve Personnel, Marine Corps

The conference agreement on items addressed by either the House or the Senate is as follows:

[Page: H8680]

[In thousands of dollars]
-----------------------------------------------------------------------------------
                                                 Budget   House  Senate Conference 
-----------------------------------------------------------------------------------
RESERVE PERSONNEL, MARINE CORPS:                                                   
PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48)   142,438 142,438 142,438    142,438 
PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)  14,951  14,951  14,951     14,951 
PAY GROUP F TRAINING (RECRUITS)                  57,276  57,276  57,276     57,276 
PAY GROUP P TRAINING (PIPELINE RECRUITS)            286     286     286        286 
TOTAL, BUDGET ACTIVITY 1                        214,951 214,951 214,951    214,951 
ACTIVITY 2: OTHER TRAINING AND SUPPORT:                                            
MOBILIZATION TRAINING                             1,933   1,933   1,933      1,933 
SCHOOL TRAINING                                   8,736   8,736   8,736      8,736 
SPECIAL TRAINING                                 23,417  23,417  23,417     23,417 
ADMINISTRATION AND SUPPORT                      126,402 126,402 126,402    126,402 
EDUCATION BENEFITS                               14,240  14,240  14,240     14,240 
ROTC--SENIOR, JUNIOR, SCHOLARSHIP                 3,184   3,184   3,184      3,184 
OTHER PROGRAMS                                    9,025   9,025   9,025      9,025 
TOTAL, BUDGET ACTIVITY 2                        186,937 186,937 186,937    186,937 
PERSONNEL UNDEREXECUTION                                 -2,000                    
INCREASED USE OF GUARD AND RESERVE                        3,400              3,400 
JROTC                                                       225                225 
PAY RAISE INCREASE                                                           1,103 
TOTAL, RESERVE PERSONNEL, MARINE CORPS          401,888 403,513 401,888    406,616 
-----------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Undistributed:

Increased Use of Guard and Reserve

3,400

JROTC Program

225

Pay Raise Increase

1,103

Reserve Personnel, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------
                                                                                        Budget   House  Senate Conference 
--------------------------------------------------------------------------------------------------------------------------
RESERVE PERSONNEL, AIR FORCE:                                                                                             
ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48) 419,362 419,362 419,362    419,362 
PAY GROUP B TRAINING (BACKFILL FOR ACTIVE DUTY)                                         78,998  78,998  78,998     78,998 
PAY GROUP F TRAINING (RECRUITS)                                                          4,452   4,452   4,452      4,452 
TOTAL, BUDGET ACTIVITY 1                                                               502,812 502,812 502,812    502,812 
ACTIVITY 2: OTHER TRAINING AND SUPPORT MOBILIZATION TRAINING                             2,779   2,779   2,779      2,779 
SCHOOL TRAINING                                                                         62,254  62,254  62,254     62,254 
SPECIAL TRAINING                                                                       143,526 143,526 143,526    143,526 
ADMINISTRATION AND SUPPORT                                                              85,601  85,601  85,601     85,601 
ROTC--SENIOR, JUNIOR, SCHOLARSHIP                                                       34,922  34,922  34,922     34,922 
HEALTH PROFESSION SCHOLARSHIP                                                           24,282  24,282  24,282     24,282 
TOTAL, BUDGET ACTIVITY 2                                                               353,364 353,364 353,364    353,364 
PERSONNEL UNDEREXECUTION                                                                        -5,600             -6,000 
PAY RAISE INCREASE                                                                                                  2,148 
TOTAL, RESERVE PERSONNEL, AIR FORCE                                                    856,176 850,576 856,176    852.324 
--------------------------------------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Undistributed:

Personnel Underexecution

-6,000

Pay Raise Increase

2,148

National Guard Personnel, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------
                                                                                          Budget     House    Senate Conference 
--------------------------------------------------------------------------------------------------------------------------------
NATIONAL GUARD PERSONNEL, ARMY                                                                                                  
ACTIVITY 1: UNIT AND INDIVIDUAL TRAINING PAY GROUP A TRAINING (15 DAYS & DRILLS 24/48) 1,650,385 1,650,385 1,650,385  1,650,385 
PAY GROUP F TRAINING (RECRUITS)                                                          154,688   154,688   154,688    154,688 
PAY GROUP P TRAINING (PIPELINE RECRUITS)                                                  12,867    12,867    12,867     12,867 
TOTAL, BUDGET ACTIVITY 1                                                               1,817,940 1,817,940 1,817,940  1,817,940 
ACTIVITY 2: OTHER TRAINING AND SUPPORT SCHOOL TRAINING                                    81,189   126,189   167,189    146,189 
SPECIAL TRAINING                                                                          28,845    58,845    28,845     49,845 
ADMINISTRATION AND SUPPORT                                                             1,433,393 1,433,393 1,442,393  1,433,393 
EDUCATION BENEFITS                                                                        43,228    43,228    43,228     43,228 
TOTAL, BUDGET ACTIVITY 2                                                               1,586,655 1,661,655 1,681,655  1,672,655 
PERSONNEL UNDEREXECUTION                                                                           -66,400              -10,000 
PAY RAISE INCREASE                                                                                                        9,392 
TOTAL, NATIONAL GUARD PERSONNEL, ARMY                                                  3,404,595 3,413,195 3,499,595  3,489,987 
--------------------------------------------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 2: Other Training and Support:

School Training

65,000

Special Training

21,000

Undistributed:

Personnel Underexecution

-10,000

Pay Raise Increase

9,392

National Guard Personnel, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:

[Page: H8681]

[In thousands of dollars]
------------------------------------------------------------------------------------------------
                                                          Budget     House    Senate Conference 
------------------------------------------------------------------------------------------------
National Guard Personnel, Air Force:                                                            
Activity 1: Unit and Individual Training:                                                       
Pay Group A Training (15 Days & Drills 24/48)            590,972   590,972   590,972    590,972 
Pay Group F Training (Recruits)                           22,395    22,395    22,395     22,395 
Pay Group P Training (Pipeline Recruits)                   1,064     1,064     1,064      1,064 
Total, Budget Activity 1                                 614,431   614,431   614,431    614,431 
Activity 2: Other Training and Support School Training    95,105    95,105    95,105     95,105 
Special Training                                          60,780    60,780    60,780     60,780 
Administration and Support                               598,634   598,634   598,634    598,634 
Education Benefits                                         7,147     7,147     7,147      7,147 
Total, Budget Activity 2                                 761,666   761,666   761,666    761,666 
Personnel Underexecution                                            -3,100               -3,100 
Pay Raise Increase                                                                        4,112 
Total, National Guard Personnel, Air Force             1,376,097 1,372,997 1,376,097  1,377,109 
------------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Undistributed:

Personnel Underexecution

-3,100

Pay Raise Increase

4,112

AIR NATIONAL GUARD ENGINEERS

The conferees direct the Secretary of the Air Force to report no later than March 1, 1999, on how Air National Guard and Air Force Reserve civil engineering personnel are utilized in the war plans. The report should have the concurrence or view of the Chief of the National Guard Bureau and the Chief of the Air Force Reserve.

TITLE II--OPERATION AND MAINTENANCE

A summary of the conference agreement on the items addressed by either the House or Senate is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------------------------
                                                           Budget      House     Senate Conference 
---------------------------------------------------------------------------------------------------
RECAPITULATION                                                                                     
O & M, ARMY                                            17,223,063 16,936,503 17,212,463 17,185,623 
TRANSFER--STOCKPILE                                      (50,000)   (50,000)   (50,000)   (50,000) 
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                     (-130,000)            
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                 (-96,000)  (-96,000) 
O & M, NAVY                                            21,877,202 21,638,999 21,813,315 21,872,399 
TRANSFER--STOCKPILE                                      (50,000)   (50,000)   (50,000)   (50,000) 
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                      (-48,000)            
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                 (-32,087)  (-32,087) 
O & M, MARINE CORPS                                     2,523,703  2,585,118  2,576,190  2,578,718 
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                      (-36,000)            
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                  (-9,513)   (-9,513) 
O & M, AIR FORCE                                       19,127,004 19,024,233 19,064,941 19,021,045 
TRANSFER--STOCKPILE                                      (50,000)   (50,000)   (50,000)   (50,000) 
TRANSFER TO QUALITY OF LIFE ENHANCEMENT                                       (-50,000)            
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                 (-52,200)  (-52,200) 
O & M, DEFENSEWIDE                                     10,750,601 10,804,542 10,259,231 10,914,076 
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                            (-90,020) 
O & M, ARMY RESERVE                                     1,202,622  1,201,222  1,202,622  1,202,622 
O & M, NAVY RESERVE                                       928,639    949,039    928,639    957,239 
O & M, MARINE CORPS RESERVE                               114,593    119,093    114,593    117,893 
O & M, AIR FORCE RESERVE                                1,744,696  1,735,996  1,744,696  1,747,696 
O & M, ARMY NATIONAL GUARD                              2,436,815  2,570,315  2,661,815  2,678,015 
O & M, AIR NATIONAL GUARD                               3,093,933  3,075,233  3,113,933  3,106,933 
OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND             746,900    746,900    746,900    439,400 
PENTAGON RENOVATION TRANSFER FUND                                               279,820            
TRANSFER                                                                                 (279,820) 
UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES         7,324      7,324      7,324      7,324 
ENVIRONMENTAL RESTORATION, ARMY                           377,640    342,640    370,640    370,640 
ENVIRONMENTAL RESTORATION, NAVY                           281,600    281,600    274,600    274,600 
ENVIRONMENTAL RESTORATION, AIR FORCE                      379,100    379,100    372,100    372,100 
ENVIRONMENTAL RESTORATION, DEFENSE-WIDE                    26,091     26,091     23,091     26,091 
ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES    195,000    195,000    225,000    225,000 
OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID             63,311     56,111     50,000     50,000 
FORMER SOVIET UNION THREAT REDUCTION                      442,400    417,400    440,400    440,400 
CONTINGENCY OPERATIONS MWR FUND                                                  50,000            
QUALITY OF LIFE ENHANCEMENTS, DEFENSE                                850,000               455,000 
TRANSFER                                                                      (264,000)            
GRAND TOTAL, O & M                                     83,542,237 83,942,459 83,532,313 84,042,814 
TRANSFERS                                               (150,000)  (150,000) (-129,820)  (150,000) 
TOTAL FUNDS AVAILABLE, O & M                           83,692,237 84,092,459 83,402,493 84,192,814 
---------------------------------------------------------------------------------------------------

MILITARY READINESS

The conferees agree with the concerns delineated in Section 8160 of the Senate-passed fiscal year 1999 Defense Appropriations bill, and the concerns expressed in the report accompanying the House-passed fiscal year 1999 defense Appropriations bill with regards to the indications of declining readiness within the Military Services.

Accordingly, the conferees direct the Secretary of Defense to submit a report to the congressional defense committees not later than June 1, 1999, on the readiness of the Armed Forces of the United States. The Secretary shall include in the report detailed information on each of the following issues: (1) An assessment of current force structure and its sufficiency to execute the National Security Strategy; (2) A service-by-service outline of the force structure expected to be committed to a major regional contingency as envisioned in the National Security Strategy; (3) A comparison of the force structure outlined in item (2) with the service-by-service order of battle in Desert Shield/Desert Storm as a representative recent major regional conflict; (4) An assessment of the force structure and projected defense appropriations increases necessary to execute the National Security Strategy of the United States assuming current projected ground force levels assigned to the peacekeeping mission in Bosnia are unchanged; (5) A discussion of the United States ground, naval and air force levels in Bosnia that can be sustained without impacting the ability of the Armed Forces to execute the National Security Strategy assuming no increase in force structure or defense appropriations during the period in which forces are assigned to Bosnia; and (6) A complete assessment of recent trends in the Measured readiness of United States forces with a focus on current manning shortfalls, recent declines in aviation mission capable rates, and below standard levels of ground forces training.

OPERATION AND MAINTENANCE REPROGRAMMINGS

The conferees agree that proposed transfers of funds between O-1 budget activities in excess of $15,000,000 are subject to normal, prior approval reprogramming procedures. In addition, due to continuing concerns about force readiness and the diversion of Operation and Maintenance funds, the conferees agree that the Department should provide written notification to the congressional defense committees for the cumulative value of any and all transfers in excess of $15,000,000 from the following budget activities and subactivity group categories:

[Page: H8682]

Operation and Maintenance, Army

Land Forces: Divisions, Corps combat forces, Corps support forces, Echelon above corps forces, Land forces operations support; Land Forces Readiness: Land forces depot maintenance; Logistics operations: Ammunition management.

Operation and Maintenance, Navy

Air Operations: Mission and other flight operations, Fleet air training, Aircraft depot maintenance; Ship Operations: Mission and other ship operations, Ship operational support and training, Intermediate maintenance, Ship depot maintenance.

Operation and Maintenance, Marine Corps

Expeditionary Forces: Operational forces, depot maintenance.

Operation and Maintenance, Air Force

Air Operations: Primary combat forces, Primary combat weapons, Air operations training, Depot maintenance; Mobility Operations: Airlift operations, Depot maintenance, Payments to the transportation business area; Basic Skills and Advanced Training: Depot maintenance; Logistics Operations: Depot maintenance.

Further, the Department should follow prior approval reprogramming procedures for transfers in excess of $15,000,000 out of the following budget subactivities.

Operation and Maintenance

Depot maintenance

Operation and Maintenance, Navy:

Aircraft depot maintenance,

Ship depot maintenance

Operation and Maintenance, Marine Corps:

Depot maintenance

Operation and Maintenance, Air Force:

Air Operations, Depot maintenance,

Mobility Operations, Depot maintenance,

Basic Skills and Advanced Training, Depot maintenance, and

Logistics Operations, Depot maintenance.

OPERATION AND MAINTENANCE BUDGET EXECUTION DATA

The conferees support the position expressed in the House report accompanying the Defense Appropriations bill for fiscal year 1999 requiring the Department of Defense to provide the congressional defense committees with quarterly budget execution data. Such data should be provided not later than forty-five days past the close of each quarter of the fiscal year, and should be provided for each O-1 budget activity, activity group, and subactivity for each of the active, defense-wide, reserve and national guard components. For each O-1 budget activity, activity group and subactivity, these reports should include: the budget request and actual obligations; the DoD distribution of unallocated congressional adjustments to the budget request; all adjustments made by DoD during the process of rebaselining the O&M accounts; all adjustments resulting from below threshold reprogrammings; and all adjustments resulting from prior approval reprogramming requests.

In addition, the conferees require that the Department of Defense provide semiannual written notifications to the congressional defense committees which summarize Operation and Maintenance budget execution to include the effect of rebaselining procedures, other below threshold reprogrammings, and prior approval reprogrammings. The conferees further direct that the Department of Defense provide the House and Senate Committees on Appropriations written notification 30 days prior to executing procedures to rebaseline the Operation and Maintenance accounts.

PENTAGON RENOVATION TRANSFER FUND

The conferees agree to Senate language which establishes the Pentagon Renovation Transfer Fund, totaling $279,820,000 by transfer from the active component and Defense-Wide Operation and Maintenance accounts.

DOD OUTSOURCING AND PRIVATIZATION INITIATIVES

The conferees are aware of large scale efforts by DoD to privatize many of its support and infrastructure functions in order to reduce costs and free up resources for readiness and modernization. For example, the Defense Reform Initiative projected that DoD could save $6 billion from competing 150,000 civilian positions over the next five years. However, the conferees harbor significant concerns about DoD's privatization strategy, primarily due to the risk of building unrealistic savings estimates into the budget request. Specifically, these concerns include: 1) uncertainty as to the criteria used to select activities or functions as candidates for outsourcing; 2) the apparent lack of any method to validate savings assumed in DoD budget estimates; and, 3) the lack of any systems or methods to assess the impact of outsourcing on the readiness or combat power of DoD forces. Accordingly, the conferees direct that the Secretary of Defense submit a report, not later than March 31, 1999, which provides a detailed assessment of the results of DoD's privatization strategy to date. The report shall specify those functions or activities selected for outsourcing, and the criteria used select these functions or activities. The report shall also detail the net savings achieved by outsourcing in fiscal years 1996-1998. This element of the report shall also include estimates of the number of contractor workyears compared to the number of civilian workyears required to perform functions which have been privatized.

LIGHTWEIGHT MAINTENANCE ENCLOSURES

The conferees direct that $5,000,000 of the funds made available in Operation and Maintenance, Marine Corps be used only for the acquisition of lightweight maintenance enclosures.

COMPETITIVE BANKING PROCEDURES

It is the conferees' intent that the provision of banking services provided by any bank or credit union on military installations and at facilities in the United States shall include the broad range of services including at least all of the following: the receipt of money for deposit, check or draft cashing services, the origination of loans or other extensions of credit, the issuance of promissory notes, and the provision of electronic banking and automated teller machines. The conferees direct the Department of Defense to submit a report to the Committees on Appropriations by February 1, 1999, on the DoD and services policies and procedures for provision of banking services on the basis of full and open competition.

REPORT ON SECURITY IN THE TAIWAN STRAIT

On or before February 1, 1999, the Department of Defense shall provide to Congress a report, in both classified and unclassified form, detailing the security situation in the Taiwan Strait. Such report shall include an analysis of the military forces facing Taiwan from the People's Republic of China, evaluating recent additions to the offensive military capabilities of the People's Republic of China. It should also assess new challenges to the deterrent forces of the Republic of China on Taiwan, consistent with the commitments made by the United States in the Taiwan Relations Act, Public Law 96-8.

Operation and Maintenance, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-----------------------------------------------------------------------------------------------------------
                                                             Budget        House       Senate   Conference 
-----------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY                                                                            
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                       
LAND FORCES:                                                                                               
DIVISIONS                                                 1,091,232    1,152,432    1,098,732    1,172,932 
CORPS COMBAT FORCES                                         299,739      299,739      299,739      299,739 
CORPS SUPPORT FORCES                                        316,361      316,361      316,361      316,361 
ECHELON ABOVE CORPS FORCES                                  434,579      434,579      434,579      434,579 
LAND FORCES OPERATIONS SUPPORT                              824,557      824,557      824,557      824,557 
LAND FORCES READINESS:                                                                                     
FORCE READINESS OPERATIONS SUPPORT                          973,814      973,814      974,814      974,814 
LAND FORCES SYSTEMS READINESS                               375,038      375,038      375,038      375,038 
LAND FORCES DEPOT MAINTENANCE                               570,723      620,723      570,723      590,723 
LAND FORCES READINESS SUPPORT:                                                                             
BASE SUPPORT                                              2,332,231    2,549,179    2,332,231    2,334,231 
MAINTENANCE OF REAL PROPERTY                                641,651      641,651      641,651      641,651 
MANAGEMENT AND OPERATIONAL HEADQUARTERS                     110,538      110,538      110,538      110,538 
UNIFIED COMMANDS                                             71,990       71,990       71,990       71,990 
MISCELLANEOUS ACTIVITIES                                     63,478       63,478       63,478       63,478 
TOTAL, BUDGET ACTIVITY 1                                  8,105,931    8,434,079    8,114,431    8,210,631 
BUDGET ACTIVITY 2: MOBILIZATION:                                                                           
MOBILITY OPERATIONS:                                                                                       
STRATEGIC MOBILIZATION                                      314,541      314,541      314,541      314,541 
ARMY PREPOSITIONED STOCKS                                   165,349      165,349      165,349      165,349 
INDUSTRIAL PREPAREDNESS                                      78,645       58,845       78,645       58,845 
MAINTENANCE OF REAL PROPERTY                                 66,100       66,100       66,100       66,100 
TOTAL, BUDGET ACTIVITY 2                                    624,635      604,835      624,635      604,835 
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                                
ACCESSION TRAINING:                                                                                        
OFFICER ACQUISITION                                          63,580       63,580       62,180      62,180  
RECRUIT TRAINING                                             14,264       14,264       14,264       14,264 
ONE STATION UNIT TRAINING                                    14,909       14,909       14,909       14,909 
RESERVE OFFICER TRAINING CORPS (ROTC)                       130,270      130,270      131,270      131,270 
BASE SUPPORT (ACADEMY ONLY)                                  72,999       78,631       72,999       72,999 
MAINTENANCE OF REAL PROPERTY (ACADEMY ONLY)                  42,979       42,979       42,979       42,979 
BASIC SKILL/ADVANCE TRAINING:                                                                              
SPECIALIZED SKILL TRAINING                                  215,964      215,964      215,964      215,964 
FLIGHT TRAINING                                             226,501      226,501      226,501      226,501 
PROFESSIONAL DEVELOPMENT EDUCATION                          192,720       88,920      185,020       77,020 
TRAINING SUPPORT                                            488,799      488,799      488,799      488,799 
BASE SUPPORT (OTHER TRAINING)                               782,265      842,622      782,265      782,265 
MAINTENANCE OF REAL PROPERTY (OTHER TRAINING)               258,927      258,927      258,927      258,927 
RECRUITING/OTHER TRAINING:                                                                                 
RECRUITING AND ADVERTISING                                  234,154      234,154      234,154      234,154 
EXAMINING                                                    71,593       71,593       71,593       71,593 
OFF-DUTY AND VOLUNTARY EDUCATION                            100,203      101,203      100,203      100,203 
CIVILIAN EDUCATION AND TRAINING                              73,517       73,517       73,517       73,517 
JUNIOR ROTC                                                  73,423       73,423       73,423       73,423 
BASE SUPPORT (RECRUITING LEASES)                            178,496      178,496      178,496      178,496 
TOTAL, BUDGET ACTIVITY 3                                  3,235,563    3,198,752    3,227,463    3,119,463 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                         
SECURITY PROGRAMS:                                                                                         
SECURITY PROGRAMS                                           404,340      404,340      404,340      404,340 
LOGISTICS OPERATIONS:                                                                                      
SERVICEWIDE TRANSPORTATION                                  398,473      398,473      398,473      398,473 
CENTRAL SUPPLY ACTIVITIES                                   370,824      370,824      370,824      370,824 
LOGISTIC SUPPORT ACTIVITIES                                 336,403      342,403      336,403      342,403 
AMMUNITION MANAGEMENT                                       400,299      400,299      400,299      400,299 
SERVICEWIDE SUPPORT:                                                                                       
ADMINISTRATION                                              304,679      305,679      305,679      306,679 
SERVICEWIDE COMMUNICATIONS                                  606,379      566,379      606,379      606,379 
MANPOWER MANAGEMENT                                         142,081      142,081      142,081      142,081 
OTHER PERSONNEL SUPPORT                                     150,483      150,483      150,483      150,483 
OTHER SERVICE SUPPORT                                       618,384      618,384      525,384      621,384 
ARMY CLAIMS ACTIVITIES                                      118,886      118,886      118,886      118,886 
REAL ESTATE MANAGEMENT                                       68,815       68,815       68,815       68,815 
BASE SUPPORT                                                700,689      754,752      700,689      708,689 
COMMISSARY OPERATIONS                                       338,400      338,400      338,400      338,400 
MAINTENANCE OF REAL PROPERTY                                 82,578       82,578       88,078       88,078 
SUPPORT OF OTHER NATIONS:                                                                                  
INTERNATIONAL MILITARY HEADQUARTERS                         227,377      227,377      227,377      227,377 
MISC SUPPORT OF OTHER NATIONS                                37,844       34,144       37,844       34,314 
TOTAL, BUDGET ACTIVITY 4                                  5,306,934    5,324,297    5,220,434    5,327,904 
CLASSIFIED PROGRAMS UNDISTRIBUTED                                          4,500       -2,200        3,750 
CIVILIAN PERSONNEL UNDERSTRENGTH                                        -164,000     -120,000      -62,700 
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND          -50,000      -50,000      -50,000      -50,000 
FOREIGN CURRENCY FLUCTUATION                                            -139,700      -81,300              
BASE SUPPORT                                                                          185,000      204,000 
TDY EXPENSES                                                             -31,600                   -31,600 
MEMORIAL EVENTS                                                              400                       400 
HEADQUARTERS AND ADMIN ACTIVITIES                                        -38,500                           
RENTS                                                                     -7,000                    -7,000 
COMMUNICATIONS PURCHASES                                                  -4,400                    -4,400 
FUEL REPRICING                                                           -22,300      -36,000              
CONTRACT AND ADVISORY SERVICES                                           -40,200                           
MISC EQUIPMENT                                                           -20,000                   -15,000 
CRIMINAL INVESTIGATORS COMPUTERS & TRAINING EFFICIENCY                   -18,000                   -18,000 
ADP LEGACY SYSTEM EFFICIENCIES                                           -96,660                   -96,660 
REAL PROPERTY MAINTENANCE                                                             130,000              
CONSEQUENCE MANAGEMENT                                                     2,000                           
TOTAL, OPERATION AND MAINTENANCE, ARMY                   17,223,063   16,936,503   17,212,463   17,185,623 
  TRANSFER                                                 (50,000)     (50,000)     (50,000)     (50,000) 
  TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                         (-130,000)              
  TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                     (-96,000)    (-96,000) 
TOTAL FUNDING AVAILABLE                                (17,273,063) (16,986,503) (17,036,463) (17,139,623) 
-----------------------------------------------------------------------------------------------------------

[Page: H8683]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

Readiness Training-National Training Center (NTC)

60,200

Soldier life support systems

18,000

Cold weather boots; 2ID

2,000

Parachute maintenance and repair

1,000

Ultra lightweight camouflage net system

500

Fort Chaffee Training Center

1,000

Depot Maintenance

20,000

Ft Irwin, George AFB

2,000

Budget Activity 2: Mobilization:

Industrial Preparedness

-19,800

Budget Activity 3: Training and Recruiting:

Service academic; foreign students

-1,400

Air Battle Captain Program

1,000

Foreign military students; Fort Leavenworth

800

National Defense University consolidation

-8,500

Defense Acquisition University

-108,000

Budget Activity 4: Administration and Servicewide Activities:

Super computing Work

6,000

Advanced local emergency response team

1,000

Lewis & Clark

1,000

Army conservation and ecosystem management

3,000

UC-35A Basing and Sustainment

8,000

Rock Island bridge repairs

5,500

Program increase

170

Misc Support to Other Nations

-3,700

Undistributed:

Classified Programs Undistributed

3,750

Civilian Personnel Underexecution

-62,700

Base support shortfalls

204,000

Temporary Duty Travel

-31,600

Memorial Events

400

Rents

-7,000

Communications Purchases

-4,400

Miscellaneous Equipment

-15,000

Criminal Investigators Computers & Training

-18,000

ADP Legacy System efficiencies

-96,660

DOMESTIC PREPAREDNESS SUSTAINMENT TRAINING

The conferees direct that of the funds provided in Operation and Maintenance, Army, $1,500,000 be used only to commence establishment of a Domestic Preparedness Sustainment Training Center at Pine Bluff Arsenal, as recommended in Senate Report 105-200.

ARMY ARSENALS

The conferees are concerned about the effect of DoD's outsourcing and privatization initiatives in certain critical defense functions. Accordingly, the conferees direct that the Army provide 90 days prior notice to the congressional defense committees before awarding any new contracts pursuant to A-76 related studies at Pine Bluff Arsenal, Pine Bluff, Arkansas; Rock Island Arsenal, Rock Island, Illinois; or Watervliet Arsenal, Watervliet, New York.

[Page: H8684]

ROTARY WING AIRCRAFT SUSTAINMENT PROJECT

The conferees direct that $3,500,000 shall be used for the rotary wing aircraft sustainment project at the Corpus Christi Army Depot, from within the funds provided in Operation and Maintenance, Army.

ARMY INSTITUTE FOR PROFESSIONAL DEVELOPMENT

The conferees agree that of the funds provided for Operation and Maintenance, Army, $1,000,000 should be used only for the Army Institute for Professional Development.

Operation and Maintenance, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-------------------------------------------------------------------------------------------------------
                                                         Budget        House       Senate   Conference 
-------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, NAVY                                                                        
4300 BUDGET ACTIVITY 1: OPERATING FORCES:                                                              
MISSION AND OTHER FLIGHT OPERATIONS                   2,089,630    2,134,630    2,142,130    2,098,630 
FLEET AIR TRAINING                                      751,533      751,533      751,533      751,533 
INTERMEDIATE MAINTENANCE                                 46,925       46,925       46,925       46,925 
AIR OPERATIONS AND SAFETY SUPPORT                        88,459       88,459       88,459       88,459 
AIRCRAFT DEPOT MAINTENANCE                              735,731      810,731      735,731      735,731 
AIRCRAFT DEPOT OPERATIONS SUPPORT                        20,249       20,249       20,249       20,249 
BASE SUPPORT                                            772,678      772,678      772,678      772,678 
MAINTENANCE OF REAL PROPERTY                            283,600      283,600      283,600      283,600 
MISSION AND OTHER SHIP OPERATIONS                     1,987,873    1,987,873    1,987,873    1,987,873 
SHIP OPERATIONAL SUPPORT AND TRAINING                   541,069      541,069      541,069      541,069 
INTERMEDIATE MAINTENANCE                                388,408      388,408      388,408      388,408 
SHIP DEPOT MAINTENANCE                                1,947,424    2,037,424    1,977,424    1,977,424 
SHIP DEPOT OPERATIONS SUPPORT                         1,147,209    1,147,209    1,147,209    1,147,209 
BASE SUPPORT                                            832,789      832,789      832,789      832,789 
MAINTENANCE OF REAL PROPERTY                            248,601      248,601      248,601      248,601 
COMBAT COMMUNICATIONS                                   234,450      234,450      234,450      234,450 
ELECTRONIC WARFARE                                        7,734        7,734        7,734        7,734 
SPACE SYSTEMS AND SURVEILLANCE                          138,271      138,271      138,271      138,271 
WARFARE TACTICS                                         134,014      134,014      140,014      140,014 
OPERATIONAL METEOROLOGY AND OCEANOGRAPY                 228,159      228,159      242,659      242,659 
COMBAT SUPPORT FORCES                                   444,072      444,072      444,072      444,072 
EQUIPMENT MAINTENANCE                                   170,937      171,937      170,937      171,937 
DEPOT OPERATIONS SUPPORT                                    694          694          694          694 
BASE SUPPORT                                            312,259      312,259      312,259      312,259 
MAINTENANCE OF REAL PROPERTY                             52,603       52,603       52,603       52,603 
CRUISE MISSILE                                          121,192      116,292      121,192      116,292 
FLEET BALLISTIC MISSILE                                 812,041      812,041      812,041      812,041 
IN-SERVICE WEAPONS SYSTEMS SUPPORT                       61,598       61,598       61,598       61,598 
WEAPONS MAINTENANCE                                     389,469      394,469      419,469      419,469 
BASE SUPPORT                                            119,868      119,868      119,868      119,868 
MAINTENANCE OF REAL PROPERTY                             31,675       31,675       31,675       31,675 
WORKING CAPITAL FUND SUPPORT:                                                                          
NWCF SUPPORT                                             43,300       43,300       43,300       43,300 
TOTAL, BUDGET ACTIVITY 1                             15,184,514   15,395,614   15,317,514   15,270,114 
BUDGET ACTIVITY 2: MOBILIZATION:                                                                       
READY RESERVE AND PREPOSITIONING FORCES:                                                               
SHIP PREPOSITIONING AND SURGE                           428,775      428,775      434,775      432,775 
ACTIVATIONS/INACTIVATIONS:                                                                             
AIRCRAFT ACTIVATIONS/INACTIVATIONS                          651          651        8,151        8,151 
SHIP ACTIVATIONS/INACTIVATIONS                          511,976      511,976      511,976      511,976 
MOBILIZATION PREPAREDNESS:                                                                             
FLEET HOSPITAL PROGRAM                                   23,496       23,496       23,496       23,496 
INDUSTRY READINESS                                       16,166       14,466       16,166       14,466 
COAST GUARD SUPPORT                                      17,229       17,229       17,229       17,229 
TOTAL, BUDGET ACTIVITY 2                                998,293      996,593    1,011,793    1,008,093 
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                            
ACCESSION TRAINING:                                                                                    
OFFICER ACQUISITION                                      75,643       75,643       74,243       74,243 
RECRUIT TRAINING                                          4,556        4,556        4,556        4,556 
RESERVE OFFICERS TRAINING CORPS (ROTC)                   69,087       69,087       69,087       69,087 
BASE SUPPORT                                             57,036       57,036       57,036       57,036 
MAINTENANCE OF REAL PROPERTY                             81,371       81,371       81,371       81,371 
BASIC SKILLS AND ADVANCED TRAINING:                                                                    
SPECIALIZED SKILL TRAINING                              237,916      237,916      237,916      237,916 
FLIGHT TRAINING                                         315,874      315,874      315,874      315,874 
PROFESSIONAL DEVELOPMENT EDUCATION                       71,780       71,780       73,280       73,280 
TRAINING SUPPORT                                        138,319      145,319      138,319      145,319 
BASE SUPPORT                                            331,607      331,607      331,607      331,607 
MAINTENANCE OF REAL PROPERTY                             92,400       92,400       92,400       92,400 
RECRUITING, AND OTHER TRAINING AND EDUCATION:                                                          
RECRUITING AND ADVERTISING                              130,415      151,215      130,415      130,415 
OFF-DUTY AND VOLUNTARY EDUCATION                         74,669       74,669       74,669       74,669 
CIVILIAN EDUCATION AND TRAINING                          37,425       37,425       37,425       37,425 
JUNIOR ROTC                                              22,830       22,830       22,830       22,830 
BASE SUPP0ORT                                               451          451          451          451 
MAINTENANCE OF REAL PROPERTY                                 61           61           61           61 
TOTAL, BUDGET ACTIVITY 3                              1,741,440    1,769,240    1,743,540    1,748,540 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                     
SERVICEWIDE SUPPORT:                                                                                   
ADMINISTRATION                                          565,193      565,193      565,193      565,193 
EXTERNAL RELATIONS                                       21,456       21,456       21,456       21,456 
CIVILIAN MANPOWER AND PERSON MANAGEMENT                 140,247      103,847      140,247      122,247 
MILITARY MANPOWER AND PERSON MANAGEMENT                 125,125      125,125      125,125      125,125 
OTHER PERSONNEL SUPPORT                                 201,014      201,014      201,014      201,014 
SERVICEWIDE COMMUNICATIONS                              244,766      244,766      244,766      244,766 
BASE SUPPORT                                            228,046      228,046      228,046      228,046 
MAINTENANCE OF REAL PROPERTY                             44,827       44,827       44,827       44,827 
COMMISSARY OPERATIONS                                   255,000      255,000      255,000      255,000 
LOGISTICS OPERATIONS AND TECHNICAL SUPPORT:                                                            
SERVICEWIDE TRANSPORTATION                              144,245      144,245      144,245      144,245 
PLANNING, ENGINEERING AND DESIGN                        262,615      262,615      262,615      262,615 
ACQUISITION AND PROGRAM MANAGEMENT                      473,159      475,659      473,159      475,649 
AIR SYSTEMS SUPPORT                                     280,437      280,437      280,437      280,437 
HULL, MECHANICAL AND ELECTRICAL SUPPORT                  55,467       55,467       55,467       55,467 
COMBAT/WEAPONS SYSTEMS                                   41,700       41,700       41,700       41,700 
SPACE AND ELECTRONIC WARFARE SYSTEMS                     72,178       72,178       72,178       72,178 
BASE SUPPORT                                            219,826      220,176      219,826    220,176   
MAINTENANCE OF REAL PROPERTY                             40,722       40,722       55,722       55,722 
SECURITY PROGRAMS:                                                                                     
SECURITY PROGRAMS                                       568,257      568,257      568,257      568,257 
BASE SUPPORT                                              8,814        8,814        8,814        8,814 
MAINTENANCE OF REAL PROPERTY                              1,426        1,426        1,426        1,426 
SUPPORT OF OTHER NATIONS:                                                                              
INTERNATIONAL HEADQUARTERS AND AGENCIES                   8,435        8,435        8,435        8,435 
TOTAL, BUDGET ACTIVITY 4                              4,002,955    3,969,405    3,987,868    4,003,805 
CLASSIFIED PROGRAMS UNDISTRIBUTED                                     17,367          500       17,867 
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND      -50,000      -50,000      -50,000      -50,000 
FOREIGN CURRENCY FLUCTUATION                                         -15,900       -7,900              
CIVILIAN PERSONNEL UNDERSTRENGTH                                     -95,000     -106,000      -14,300 
BASE SUPPORT                                                                       35,000       39,000 
REAL PROPERTY MAINTENANCE                                                          48,000              
TDY EXPENSES                                                         -22,900                   -22,900 
HEADQUARTERS AND ADMIN ACTIVITIES                                    -32,000                           
EXCESS CARRY OVER (NCCOSC)                                           -52,000                   -26,000 
FUEL REPRICING                                                      -108,700     -167,000              
FEDERAL EXCISE/STATE TAXES FOR FUELS                                  -3,000                    -3,000 
CONTRACT AND ADVISORY SERVICES                                       -31,000                           
MISC EQUIPMENT                                                       -15,000                   -15,000 
ADP LEGACY SYSTEMS EFFICIENCIES                                      -87,820                   -87,820 
NAVY ENVIRONMENTAL LEADERSHIP PROGRAM                                  4,000                     3,000 
EXECUTIVE EDUCATION DEMONSTRATION PRJECT                               1,000                     1,000 
TOTAL, OPERATION AND MAINTENANCE, NAVY               21,877,202   21,638,999   21,813,315   21,872,399 
TRANSFER                                               (50,000)     (50,000)     (50,000)     (50,000) 
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                        (-48,000)              
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                   (-32,087)    (-32,087) 
TOTAL FUNDING AVAILABLE                            (21,927,202) (21,688,999) (21,783,228) (21,890,312) 
-------------------------------------------------------------------------------------------------------

[Page: H8685]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

ALQ-165 maintenance and repair

9,000

Ship depot maintenance

16,000

Shipyard Apprentice Program

14,000

PMRF

6,000

National Oceanography Partnering Program

7,500

Navy Meteorology and Oceanography Command

7,000

Reverse Osmosis Desalinators

1,000

Tactical Tomahawk

-4,900

Tomahawk recertification

15,000

Mk-45 overhaul line

10,000

CIWS overhaul

5,000

Budget Activity 2: Mobilization:

6350 Dredging support inactive Reserve fleet

4,000

6450 Ship disposal initiative

7,500

6650 Industrial Preparedness

-1,700

Budget Activity 3: Training and Recruiting:

Service academies; foreign students

-1,400

Experimental MBA Program

1,500

Interactive Distance Learning Courses-Electricity & Electronics

4,000

CNET

3,000

Budget Activity 4: Administration and Servicewide Activities:

Pesonnel Management program growth

-18,000

NISE-East

1,000

ATIS

2,500

Removal of Docks at Sound Lab

350

Adak facilities remediation and disposal

15,000

Undistributed:

9360 Classified Programs Undistributed

17,867

9390 Civilian Personnel Underexecution

-14,300

9395 Base support shortfalls

39,000

9430 Temporary Duty Travel

-22,900

9470 Excess Carryover (NCCOSC)

-26,000

9490 Federal Excise/State Sales Tax for fuels

-3,000

9510 Miscellaneous Equipment

-15,000

9520 ADP Legacy System efficiencies

-87,820

9540 Navy Environmental Leadership Program (East Coast)

3,000

9590 Executive Education Demonstration Project

1,000

SHIP DISPOSAL INITIATIVE

The conferees concur with the Senate allocation of $7,500,000 for a ship disposal initiative. This program is not related to Section 8124 of this Act regarding ship scrapping.

NAS LEMOORE QUALITY OF LIFE PROJECTS

The conferees agree that the Navy must place priority on constructing and upgrading quality of life facilities at Naval Air Station Lemoore. The lack of adequate support facilities at this location is having an adverse impact on F/A-18 pilot retention rates. The conferees direct the Secretary of the Navy to review the five-year plan for quality of life projects at this location and take appropriate actions to add new projects to the plan and to accelerate implementation of all quality of life projects at this location.

Operation and Maintenance, Marine Corps

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate  Conference 
---------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE CORPS                                                            
BUDGET ACTIVITY 1: OPERATING FORCES:                                                               
EXPEDITIONARY FORCES:                                                                              
OPERATIONAL FORCES                                     375,531     400,531     389,831     389,831 
FIELD LOGISTICS                                        221,693     221,693     221,693     221,693 
DEPOT MAINTENANCE                                       78,713      99,413      78,713      99,413 
BASE SUPPORT                                           692,716     701,539     692,716     692,716 
MAINTENANCE OF REAL PROPERTY                           292,216     292,216     292,216     292,216 
USMC PREPOSITIONING:                                                                               
MARITIME PREPOSITIONING                                 81,325      81,325      81,325      81,325 
NORWAY PREPOSITIONING                                    4,328       4,328       4,328       4,328 
TOTAL, BUDGET ACTIVITY 1                             1,746,522   1,801,045   1,760,822   1,781,522 
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                        
ACCESSION TRAINING:                                                                                
RECRUIT TRAINING                                        10,202      10,202      10,202      10,202 
OFFICER ACQUISITION                                        289         289         289         289 
BASE SUPPORT                                            53,526      54,208      53,526      53,526 
MAINTENANCE OF REAL PROPERTY                            17,292      17,292      17,292      17,292 
BASIC SKILLS AND ADVANCED TRAINING:                                                                
SPECIALIZED SKILLS TRAINING                             28,269      28,269      28,269      28,269 
FLIGHT TRAINING                                            161         161         161         161 
PROFESSIONAL DEVELOPMENT EDUCATION                       6,478       6,478       6,478       6,478 
TRAINING SUPPORT                                        81,338      81,338      88,338     87,338  
BASE SUPPORT                                            55,771      56,481      55,771      55,771 
MAINTENANCE OF REAL PROPERTY                            24,009      24,009      24,009      24,009 
RECRUITING AND OTHER TRAINING EDUCATION:                                                           
RECRUITING AND ADVERTISING                              80,798      92,798      80,798      80,798 
OFF-DUTY AND VOLUNTARY EDUCATION                        15,016      15,016      15,016      15,016 
JUNIOR ROTC                                              9,201      10,616       9,201      10,616 
BASE SUPPORT                                             8,496       8,496       8,496       8,496 
MAINTENANCE OF REAL PROPERTY                             2,440       2,440       2,440       2,440 
TOTAL, BUDGET ACTIVITY 3                               393,286     408,093     400,286     400,701 
RECRUITING AND OTHER TRAINING EDUCATION:                                                           
RECRUITING AND ADVERTISING                              80,798      92,798      80,798      80,798 
OFF-DUTY AND VOLUNTARY EDUCATION                        15,016      15,016      15,016      15,016 
JUNIOR ROTC                                              9,201      10,616       9,201      10,616 
BASE SUPPORT                                             8,496       8,496       8,496       8,496 
MAINTENANCE OF REAL PROPERTY                             2,440       2,440       2,440       2,440 
TOTAL, BUDGET ACTIVITY 3                               393,286     408,093     400,286     400,701 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                 
SERVICEWIDE SUPPORT:                                                                               
SPECIAL SUPPORT                                        224,668     224,668     215,155     224,668 
SERVICEWIDE TRANSPORTATION                              29,630      29,630      29,630      29,630 
ADMINISTRATION                                          26,509      26,509      26,509      26,509 
BASE SUPPORT                                            14,557      14,742      14,557      14,557 
MAINTENANCE OF REAL PROPERTY                             1,931       1,931       1,931       1,931 
COMMISSARY OPERATIONS                                   86,600      86,600      86,600      86,600 
TOTAL, BUDGET ACTIVITY 4                               383,895     384,080     374,382     383,895 
FOREIGN CURRENCY FLUCTUATION                                        -2,700      -2,300             
FUEL PRICING DIFFERENTIAL                                                       -8,000             
REAL PROPERTY MAINTENANCE                                                       36,000             
BASE SUPPORT                                                                    15,000      18,000 
TDY EXPENSES                                                          -400                    -400 
MISC EQUIPMENT                                                      -5,000                  -5,000 
TOTAL, OPERATION AND MAINTENANCE, MARINE CORPS       2,523,703   2,585,118   2,576.190    2,578.71 
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                     (-36,000)             
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                 (-9,513)    (-9,153) 
TOTAL FUNDING AVAILABLE                            (2,523,703) (2,585,118) (2,530,677) (2,569,205) 
---------------------------------------------------------------------------------------------------

[Page: H8686]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

Initial Issue Gear

12,600

NBC defense equipment

1,700

Depot Maintenance

20,700

Budget Activity 3: Training and Recruiting:

Distance learning

6,000

Marine Corps Junior ROTC

1,415

Undistributed:

Base support shortfalls

18,000

Temporary Duty Travel

-400

Miscellaneous Equipment

-5,000

MARINE CORPS DEPOT MAINTENANCE

The conferees are concerned about the substantial reduction in the Marine Corps depot maintenance budget from fiscal year 1998 to 1999 and the impact that this will have on the backlog of Marine Corps equipment. The conferees are also concerned that the budgeted depot maintenance program may have caused the Marine Corps to prematurely consider initiating reductions-in-force among its civilian personnel at the Marine Corps Logistics Base at Barstow. Accordingly, the conferees agree to increase funding for the Marine Corps depot maintenance program by $20,700,000 above the budget request to address this shortfall, and hereby direct the Marine Corps to include adequate funding in future budget submissions.

Operation and Maintenance, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[in thousands of dollars]
--------------------------------------------------------------------------------------------------------------------
                                                                      Budget        House       Senate   Conference 
--------------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR FORCE                                                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                                
AIR OPERATIONS:                                                                                                     
PRIMARY COMBAT FORCES                                              2,311,299    2,427,799    2,461,399    2,355,399 
PRIMARY COMBAT WEAPONS                                               236,147      236,147      234,347      234,347 
COMBAT ENHANCEMENT FORCES                                            196,036      196,036      196,036      196,036 
AIR OPERATIONS TRAINING                                              562,839      563,839      567,939      567,939 
DEPOT MAINTENANCE                                                    958,706      958,706      958,706      958,706 
COMBAT COMMUNICATIONS                                              1,022,087    1,068,366    1,022,087    1,035,387 
BASE SUPPORT                                                       1,538,126    1,620,152    1,538,126    1,538,126 
MAINTENANCE OF REAL PROPERTY                                         575,656      575,656      575,656      575,656 
COMBAT RELATED OPERATIONS:                                                                                          
GLOBAL C3I AND EARLY WARNING                                         669,379      669,379      669,379      669,379 
NAVIGATION/WEATHER SUPPORT                                           118,337      118,337      118,337      118,337 
OTHER COMBAT OPS SUPPORT PROGRAMS                                    221,593      222,821      221,593      222,821 
JCS EXERCISES                                                         30,521       30,521       30,521       30,521 
MANAGEMENT/OPERATIONAL HEADQUARTERS                                  117,540      117,540      117,540      117,540 
TACTICAL INTEL AND OTHER SPECIAL ACTIVITIES                          227,980      227,980      227,980      227,980 
SPACE OPERATIONS:                                                                                                   
LAUNCH FACILITIES                                                    221,046      221,046      216,046      216,046 
LAUNCH VEHICLES                                                      102,064      102,064      102,064      102,064 
SPACE CONTROL SYSTEMS                                                246,940      246,940      257,940      253,940 
SATELLITE SYSTEMS                                                     36,152       36,152       36,152       36,152 
OTHER SPACE OPERATIONS                                                85,292       85,292       90,292       90,292 
BASE SUPPORT                                                         309,406      325,906      309,406      309,406 
MAINTENANCE OF REAL PROPERTY                                         122,525      122,525      122,525      122,525 
TOTAL, BUDGET ACTIVITY 1                                           9,909,671   10,172,204   10,074,071    9,978,599 
BUDGET ACTIVITY 2: MOBILIZATION:                                                                                    
MOBILITY OPERATIONS:                                                                                                
AIRLIFT OPERATIONS                                                 1,326,774    1,383,774    1,326,774    1,326,774 
AIRLIFT OPERATIONS C3I                                                21,676       21,676       21,676       21,676 
MOBILIZATION PREPAREDNESS                                            134,807      111,107      136,607      121,107 
DEPOT MAINTENANCE                                                    316,485      330,815      316,485      316,485 
PAYMENTS TO TRANSPORTATION BUSINESS AREA                             470,000      470,000      470,000      470,000 
BASE SUPPORT                                                         390,876      411,721      390,876      390,876 
MAINTENANCE OF REAL PROPERTY                                         148,331      148,331      148,331      148,331 
TOTAL, BUDGET ACTIVITY 2                                           2,808,949    2,877,424    2,810,749    2,795,249 
ACCESSION TRAINING: BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                     
OFFICER ACQUISITION                                                   57,679       57,679       56,279       56,279 
RECRUIT TRAINING                                                       4,360        4,360        4,360        4,360 
RESERVE OFFICER TRAINING CORPS (ROTC)                                 46,522       46,522       46,522       46,522 
BASE SUPPORT (ACADEMIES ONLY)                                         58,828       61,965       58,828       58,828 
MAINTENANCE OF REAL PROPERTY (ACADEMIES ONLY)                         37,655       37,655       37,655       37,655 
BASIC SKILLS AND ADVANCED TRAINING:                                                                                 
SPECIALIZED SKILL TRAINING                                           215,477      218,477      215,477      218,477 
FLIGHT TRAINING                                                      406,940      406,940      406,940      406,940 
PROFESSIONAL DEVELOPMENT EDUCATION                                    90,709       90,709       90,709       90,709 
TRAINING SUPPORT                                                      65,742       65,742       65,742       65,742 
DEPOT MAINTENANCE                                                     12,186       12,186       12,186       12,186 
BASE SUPPORT (OTHER TRAINING)                                        370,961      370,961      370,961      370,961 
MAINTENANCE OF REAL PROPERTY (OTHER TRAINING)                        102,238      102,238      102,238      102,238 
RECRUITING, AND OTHER TRAINING AND EDUCATION:                                                                       
RECRUITING AND ADVERTISING                                            54,775       54,775       54,775       54,775 
EXAMINING                                                              2,668        2,668        2,668        2,668 
OFF DUTY AND VOLUNTARY EDUCATION                                      84,122       84,122       84,122       84,122 
CIVILIAN EDUCATION AND TRAINING                                       61,124       61,124       61,124       61,124 
JUNIOR ROTC                                                           26,557       26,557       26,557       26,557 
TOTAL, BUDGET ACTIVITY 3                                           1,698,543    1,725,015    1,697,143    1,700,143 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                                  
LOGISTICS OPERATIONS:                                                                                               
LOGISTICS OPERATIONS                                                 706,893      706,893      706,893      706,893 
TECHNICAL SUPPORT ACTIVITIES                                         389,685      389,685      389,685      389,685 
SERVICEWIDE TRANSPORTATION                                           196,178      196,178      196,178      196,178 
DEPOT MAINTENANCE                                                     69,344       72,484       69,344       69,344 
BASE SUPPORT                                                         916,165      953,863      916,165      916,165 
SERVICEWIDE ACTIVITIES:                                                                                             
ADMINISTRATION                                                       140,879      140,879      140,879      140,879 
SERVICEWIDE COMMUNICATIONS                                           234,065      235,065      234,065      234,065 
PERSONNEL PROGRAMS                                                   127,718      104,518      127,718      115,718 
RESCUE AND RECOVERY SERVICES                                          48,466       48,466       48,466       48,466 
ARMS CONTROL                                                          30,005       30,005       30,005       30,005 
OTHER SERVICEWIDE ACTIVITIES                                         517,780      517,780      465,580      517,780 
OTHER PERSONNEL SUPPORT                                               31,828       31,828       31,828       31,828 
CIVIL AIR PATROL CORPORATION                                          13,927       19,697       23,964       22,310 
COMMISSARY OPERATIONS                                                302,071      302,071      302,071      302,071 
BASE SUPPORT                                                         180,221      189,832      180,221      185,221 
MAINTENANCE OF REAL PROPERTY                                          26,067       26,067       26,067       26,067 
SECURITY PROGRAMS:                                                                                                  
SECURITY PROGRAMS                                                    557,256      557,256      557,256      557,256 
SUPPORT TO OTHER NATIONS:                                                                                           
INTERNATIONAL SUPPORT                                                 13,608       13,608       13,608       13,608 
TOTAL, BUDGET ACTIVITY 4                                           4,759,841    4,792,860    4,717,678    4,761,224 
CLASSIFIED PROGRAMS UNDISTRIBUTED                                                  -1,500       -1,000        2,000 
CIVILIAN PERSONNEL UNDERSTRENGTH                                                               -83,600              
GENERAL REDUCTION, NATIONAL DEFENSE STOCKPILE FUND                   -50,000      -50,000      -50,000      -50,000 
FOREIGN CURRENCY FLUCTATION                                                       -29,400      -19,200              
INFORMATION RESOURCE MANAGEMENT                                                                 10,100       10,100 
BASE SUPPORT                                                                                    35,000       39,000 
REAL PROPERTY MAINTENANCE                                                                       50,000              
TDY EXPENSES                                                                      -77,500                   -77,500 
HEADQUARTERS AND ADMIN ACTIVITIES                                                -105,200                           
RENTS                                                                              -2,000                    -2,000 
COMMUNICATIONS PURCHASES                                                          -13,600                   -13,600 
FUEL REPRICING                                                                   -116,000     -176,000              
CONTRACT AND ADVISORY SERVICES                                                    -30,900                           
MISC EQUIPMENT                                                                    -15,000                   -20,000 
ADP LEGACY SYSTEMS EFFICIENCIES                                                   -95,620                   -95,620 
ELIMINATION OF FIRST PROGRAM                                                       -7,000                    -7,000 
MINORITY AVIATION TRAINING                                                            450                       450 
TOTAL, O&M, AIR FORCE                                             19,127,004   19,024,233   19,064,941   19,021,045 
TRANSFER                                                            (50,000)     (50,000)     (50,000)     (50,000) 
TRANSFER TO QUALITY OF LIFE ENHANCEMENTS                                                     -(50,000)              
TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                                -(52,200)    -(52,200) 
TOTAL FUNDING AVAILABLE                                         (19,177,004) (19,074,233) (19,012,741) (19,018,845) 
--------------------------------------------------------------------------------------------------------------------

[Page: H8687]

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

B-52 attrition reserve

40,100

Battelabs

4,000

LANTIRN PMA Offices

-1,800

Combat training ranges

5,100

Depot Maintenance-Air Operations

13,300

SIMVAL

1,228

Maintenance of Delta-1/Delta-9 facilities

5,000

Test launch delays

-10,000

SPECECOM Operations

7,000

University partnering for operational support

5,000

Budget Activity 2: Mobilization:

Industrial Preparedness

-13,700

Budget Activity 3: Training and Recruiting:

Service academies; foreign students

-1,400

Educational Satellite and Airspace Training System

3,000

Budget Activity 4: Administration and Service- wide Support:

Personnel Management program growth

-12,000

Civil Air Patrol Corporation

5,770

CAP Counternarcotics OPTEMPO

2,613

Rail Easement

5,000

Undistributed:

Classified Programs Undistributed

2,000

REMIS

10,100

Base support shortfalls

39,000

Temporary Duty Travel

-77,500

Rents

-2,000

Communications Purchases

-13,600

Miscellaneous Equipment

-20,000

ADP Legacy System efficiencies

-95,620

Elimination of First Program

-7,000

Minority Aviation Training

450

CIVIL AIR PATROL

The conferees recognize that changes have occurred in the relationship between the Air Force and the Civil Air Patrol Corporation, in that the principal source of support from the Air Force to the Civil Air Patrol Corporation is not excess supplies and equipment, but appropriated funds from the Air Force budget. Also, changes in the Civil Air Patrol Corporation headquarters staff have affected the relationship and funding between Air Force and the Civil Air Patrol. Of the funds appropriated for the Civil Air Patrol Corporation, the conferees direct that no more than fifteen percent may be spent for the Civil Air Patrol Corporation headquarters staff and operations and the National Executive Committee and Board. Further, the Civil Air Patrol Corporation shall provide the Secretary of the Air Force with a quarterly execution report, detailing the utilization of appropriated funds.

[Page: H8688]

FLOTATION DEVICES

The conferees direct that of the funds provided in Operation and Maintenance, Air Force $1,000,000 be used only to begin the planned acquisition of passive flotation devices.

FINLEY AIR FORCE STATION NORTH DAKOTA

The conferees direct the Air Force to expedite the abatement of hazardous substances in housing located at the Finley Air Force Station.

HAVRE AIR FORCE BASE

Of the funds available in Operation and Maintenance, Air Force, the conferees agree to provide the Bear Paw Development Council, Montana, $150,000 for redevelopment of the Havre Air Force Base and Training Site.

Operation and Maintenance, Defense-Wide

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
----------------------------------------------------------------------------------------------------------
                                                            Budget        House       Senate   Conference 
----------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, DEFENSE-WIDE                                                                   
BUDGET ACTIVITY 1: OPERATING FORCES:                                                                      
JOINT CHIEFS OF STAFF                                      412,065      412,065      417,065      414,065 
SPECIAL OPERATIONS COMMAND                               1,149,328    1,154,978                 1,159,978 
TOTAL, BUDGET ACTIVITY 1                                 1,559,393    1,567,043      417,065    1,574,043 
BUDGET ACTIVITY 2: MOBILIZATION:                                                                          
DEFENSE LOGISTICS AGENCY                                    38,934       38,934       38,934       38,934 
BUDGET ACTIVITY 3: TRAINING AND RECRUITING:                                                               
DEFENSE ACQUISITION UNIVERSITY                                           95,000                    95,000 
AMERICAN FORCES INFORMATION SERVICE                         11,059       11,059       11,059       11,059 
SPECIAL OPERATIONS COMMAND                                  42,408       42,408                    42,408 
TOTAL, BUDGET ACTIVITY 3                                    53,467      148,467       11,059      148,467 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                                        
AMERICAN FORCES INFORMATION SERVICE                         93,815       93,815       93,595       93,815 
CIVIL MILITARY PROGRAMS                                     44,894       44,894       88,394       87,394 
CLASSIFIED AND INTELLIGENCE                              3,803,561    3,845,018    3,767,161    3,798,361 
DEFENSE CONTRACT AUDIT AGENCY                              330,087      325,712      330,087      325,712 
DEFENSE FINANCE AND ACCOUNTING SERVICE                      83,277       48,711       83,277       83,277 
DEFENSE HUMAN RESOURCES ACTIVITY                           198,923      188,023      192,923      183,523 
DEFENSE INFORMATION SYSTEMS AGENCY                         771,106      751,706      763,706      751,706 
DEFENSE LEGAL SERVICES AGENCY                                9,027        9,027        9,027        9,027 
DEFENSE LOGISTICS AGENCY                                 1,140,137    1,147,122    1,153,137    1,146,237 
PROCUREMENT TECHNICAL ASSISTANCE PROGRAM                                              17,000              
DEFENSE POW/MISSING PERSONS OFFICE                          14,110       14,110       14,110       14,110 
DEFENSE SECURITY ASSISTANCE AGENCY                           4,610                     4,610        3,010 
DEFENSE SECURITY SERVICE                                    83,419       81,219       83,419       83,419 
DEFENSE THREAT REDUCTION AND TREATY COMPLIANCE AGENCY      304,745      290,345      251,445      276,945 
DEPARTMENT OF DEFENSE DEPENDENTS EDUCATION               1,347,718    1,354,968    1,348,118    1,355,518 
JOINT CHIEFS OF STAFF                                      139,616      134,816      112,716      137,916 
OFFICE OF ECONOMIC ADJUSTMENT                               31,233       32,733       31,233       56,733 
OFFICE OF THE SECRETARY OF DEFENSE                         369,836      356,086      375,836      359,736 
SPECIAL OPERATIONS COMMAND                                  47,117       47,117                    47,117 
WASHINGTON HEADQUARTERS SERVICE                            281,676      270,676      224,376      264,276 
REPAIRS TO FEDERALLY-FUNDED SCHOOLS                                                   10,000       10,000 
TOTAL, BUDGET ACTIVITY 4                                 9,098,907    9,036,098    8,954,170    9,087,832 
BUDGET ACTIVITY 5:                                                                                        
SPECIAL OPERATIONS COMMAND                                                         1,252,503              
LEGACY                                                                                10,000       10,000 
CIVILIAN PERSONNEL UNDERSTRENGTH                                                    -349,000       -5,200 
FOREIGN CURRENCY FLUCTUATION                                             -6,000       -8,500              
UNDISTRIBUTED REDUCTION                                       -100                                        
IMPACT AID                                                               35,000                    35,000 
ADP LEGACY SYSTEMS EFFICIENCIES                                         -18,000                   -18,000 
ADMINISTRATIVE AND CONTRACTOR SUPPORT                                   -40,000                           
FUEL SAVINGS                                                                         -67,000              
MILITARY PERSONNEL INFORMATION SYSTEM                                    38,000                    38,000 
NIPC TECHNICAL SUPPORT                                                    5,000                     5,000 
TOTAL, OPERATION AND MAINTENANCE, DEFENSE-WIDE          10,750,601   10,804,542   10,259,231   10,914,076 
  TRANSFER TO PENTAGON RENOVATION TRANSFER FUND                                    (-90,020)    (-90,020) 
TOTAL FUNDING AVAILABLE                               (10,750,601) (10,804,542) (10,169,211) (10,824,056) 
----------------------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

JCS--Mobility Enhancements

10,000

JCS--Exercise Northern Edge

7,000

JCS--Joint Exercises

-13,000

SOCOM--Joint Threat Warning System

1,000

SOCOM--Counter Proliferation/WMD

7,650

SOCOM--Patrol Coastal Operations

-4,000

SOCOM--Maritime Training

5,000

SOCOM--Language Training

1,000

Budget Activity 3: Training and Recruiting:

DAU--Tranfer

95,000

Budget Activity 4: Administration and Service- wide Activities:

Civil-Military Programs

42,500

Classified and Intelligence

-5,200

DCAA--Within Grade Increases

-2,375

DCAA--Price Growth Error

-2,000

DHRA--DCPDS

-7,000

DHRA--Field Activity Consolidation

-4,500

DHRA--Pay Rate Error

-3,900

DISA--GCSS

-10,900

DISA--Lower Priority Program Increases

-6,700

DISA--Management Headquarters Reduction

-1,800

DLA--Equipment and Misc. Purchases

-17,900

DLA--Warstopper Increase

-3,000

DLA--Improved Cargo Methods and Technologies

2,000

DLA--Automated Document Conversion

25,000

Defense Security Assistance Agency

-1,600

DTRA--Partnership for Peace (National Guard)

1,000

DTRA--Partnership for Peace excess growth

-15,400

DTRA--PfP Information Management System

2,000

DTRA--OSIA

-15,400

DoDEA--Facility Maintenance Contract

-3,850

DoDEA--Math Leadership Program

400

DoDEA--New Parent Support Program

8,000

DoDEA--Family Counseling and Crisis Services

2,000

DoDEA--Desiccant Demo

1,250

JCS--JMEANS

3,100

JCS--Management Headquarters Reduction

-4,800

OEA--Agile Port Capability Study

500

OEA--Fitzsimmons Army Hospital

10,000

OEA--Shipyard Infrastructure Repair

10,000

OEA--Pico Rivera

4,000

OEA--Planning

1,000

OSD--Youth Development and Leadership Program

400

OSD--Lower Priority Program Increases

-10,500

WHS--Defense Travel Schedule Slip

-6,400

WHS--Lower Priority Program Increases

-10,000

WHS--White House Defense Fellows

-1,000

Repairs to Federally Funded Schools

10,000

Undistributed:

Legacy

10,000

Civilian Personnel Underexecution

-5,200

Impact Act

35,000

ADP Legacy Systems efficiencies

-18,000

Military Personnel Information System

38,000

NIPC Technical Support

5,000

[Page: H8689]

Civil/Military Programs

The conferees recommend a total of $87,394,000 for the Department's civil/military programs. In addition, the conferees recommend a new general provision, Section 8131, which waives the limitation on expenditures for the National Guard Challenge Program for fiscal year 1999. The conferees recognize that both the Department of Justice and Department of Defense have taken steps in developing programs for at-risk youth. The National Guard's highly effective Youth Challenge Program is an example of 22 states working to make productive citizens out of high school drop-outs. The conferees encourage both Departments to work together, combining strengths and successes of each program, exchange ideas, and, when possible, share available resources to enhance and expand the effectiveness of these initiatives. The funding for the civil/military programs for fiscal year 1999 follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

NATIONAL GUARD YOUTH CHALLENGE PROGRAM

62,394

INNOVATIVE READINESS TRAINING PROGRAM

20,000

STARBASE PROGRAM

5,000

TOTAL

87,394

OEA--SHIPYARD INFRASTRUCTURE REPAIRS

The conferees have agreed to provide $10,000,000 only for shipyard infrastructure repairs as recommended by the Senate under the Operation and Maintenance, Navy appropriation account.

H.L. HUNLEY

Of the funding provided for the Legacy Program, the conferees agree to provide $300,000 to prepare conservation plans to preserve the H.L. Hunley, and to develop an emergency recovery plan associated with raising the ship.

ON-SITE INSPECTION AGENCY

The conferees have agreed to reduce funding for the On-Site Inspection Agency. If additional funds prove necessary to meet emergent requirements stemming from valid treaty obligations, the conferees expect the Department of Defense to submit a reprogramming request subject to normal, prior approval reprogramming procedures.

SECURITY LOCKS

The conferees agree with the Senate report language directing the Department of Defense to provide a report on their security locks retrofit program by December 15, 1998. Furthermore, the conferees agree that of the funds provided in this account $15,000,000 is for the purchase of additional security locks which meet federal specification FF-L-2740A.

JOB PLACEMENT PROGRAM

The conferees are disappointed with the Department's lack of responsiveness to last year's direction to implement a job placement and community outreach services program. Therefore, the conferees again direct the Department to provide at least $6,000,000 from within available funds for the implementation of this effort which would market and coordinate involvement of existing qualified service providers through the Job Training Partnership Act, facilitate municipal offering of community outreach services and provide data for the evaluation of federal job placement programs.

Operation and Maintenance, Army Reserve

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------------
                                                      Budget     House    Senate Conference 
--------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY RESERVE                                                     
BUDGET ACTIVITY 1: OPERATING FORCES:                                                        
LAND FORCES:                                                                                
DIVISION FORCES                                       10,918    10,918    10,918     10,918 
CORPS COMBAT FORCES                                   17,890    17,890    17,890     17,890 
CORPS SUPPORT FORCES                                 165,897   165,897   165,897    165,897 
ECHELON ABOVE CORPS FORCES                            86,565    86,565    86,565     86,565 
MISSION OPERATIONS:                                                                         
LAND FORCES OPERATIONS SUPPORT                       227,856   227,856   227,856    227,856 
LAND FORCES READINESS:                                                                      
FORCES READINESS OPERATIONS SUPPORT                  123,824   123,824   123,824    123,824 
LAND FORCES SYSTEM READINESS                          13,757    13,757    13,757     13,757 
DEPOT MAINTENANCE                                     47,342    47,342    47,342     47,342 
LAND FORCES READINESS SUPPORT:                                                              
BASE SUPPORT                                         305,760   305,760   305,760    305,760 
MAINTENANCE OF REAL PROPERTY                          61,177    61,177    61,177     61,177 
UNIFIED COMMANDS                                         107       107       107        107 
MISCELLANEOUS ACTIVITIES                               1,383     1,383     1,383      1,383 
TOTAL, BUDGET ACTIVITY 1                           1,062,476 1,062,476 1,062,476  1,062,476 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                          
ADMINISTRATINO AND SERVICEWIDE ACTIVITIES:                                                  
STAFF MANAGEMENT HEADQUARTERS                         27,465    27,465    27,465     27,465 
INFORMATION MANAGEMENT                                23,601    23,601    23,601     23,601 
PERSONNEL/FINANCIAL ADMINISTRATION                    47,327    47,327    47,327     47,327 
RECRUITING AND ADVERTISING                            41,753    41,753    41,753     41,753 
FUEL REPRICING                                                  -1,400                      
TOTAL, BUDGET ACTIVITY 4                             140,146   138,746   140,146    140,146 
TOTAL, OPERATION AND MAINTENANCE, ARMY RESERVE     1,202,622 1,201,222 1,202,622  1,202,622 
--------------------------------------------------------------------------------------------

ARMY/NAVY RESERVE CENTERS

The conferees understand that there are two Army Reserve Centers in Florida and one in Youngstown, Ohio which are in extensive need of repair and renovation. In addition, the Navy Reserve has a facility located in Youngstown, Ohio, which is vacant and needs remediation. The conferees have provided additional funds for Real Property Maintenance for the Army Reserve and Navy Reserve, and directs that $2,000,000 be designated to each component to meet these requirements.

JOINT MILITARY TRAINING COMPLEX

The conferees understand that several Reserve units in central Florida have been impacted by the closure of the Orlando Naval Training Center, and the Department is considering the possibility of developing a joint complex in the Orlando area. The conferees recommend that $300,000 of the funds provided for `Operation and Maintenance, Army Reserve' be used for feasibility studies and environmental assessments in the support of the joint complex.

Operation and Maintenance, Navy Reserve

The conference agreement on items addressed by either the House or the Senate is as follows:

[Page: H8690]

In thousands of dollars]
--------------------------------------------------------------------------------------
                                                    Budget   House  Senate Conference 
--------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, NAVY RESERVE                                               
BUDGET ACTIVITY 1: OPERATION FORCES:                                                  
RESERVE AIR OPERATIONS                                                                
MISSION AND OTHER FLIGHT OPERATIONS                300,682 300,682 300,682    300,682 
FLEET AIR TRAINING                                     484     484     484        484 
INTERMEDIATE MAINTENANCE                            17,271  17,271  17,271     17,271 
AIR OPERATION AND SAFETY SUPPORT                     3,044   3,044   3,044      3,044 
AIRCRAFT DEPOT MAINTENANCE                         121,740 132,740 121,740    132,740 
AIRCRAFT DEPOT OPS SUPPORT                             323     323     323        323 
BASE SUPPORT                                       101,963 101,963 101,963    101,963 
MAINTENANCE OF REAL PROPERTY                        24,370  24,370  24,370     24,370 
RESERVE SHIP OPERATIONS                                                               
MISSION AND OTHER SHIP OPERATIONS                   61,924  71,924  61,924     71,924 
SHIP OPERATIONAL SUPPORT AND TRAINING                  611     611     611        611 
INTERMEDIATE MAINTENANCE                             9,472   9,472   9,472      9,472 
SHIP DEPOT MAINTENANCE                              79,257  79,257  79,257     79,257 
SHIP DEPOT OPERATIONS SUPPORT                        1,459   1,459   1,459      1,459 
RESERVE COMBAT OPERATIONS SUPPORT                                                     
COMBAT SUPPORT FORCES                               28,355  28,355  28,355     28,355 
BASE SUPPORT                                        34,411  34,411  34,411     34,411 
MAINTENANCE OF REAL PROPERTY                         9,606   9,606   9,606      9,606 
RESERVE WEAPONS SUPPORT                                                               
WEAPONS MAINTENANCE                                  5,217   5,217   5,217      5,217 
TOTAL, BUDGET ACTIVITY 1                           800,189 821,189 800,189    821,189 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                    
ADMINISTRATION AND SERVICEWIDE ACTIVITIES                                             
ADMINISTRATION                                       6,209   6,209   6,209      6,209 
CIVILIAN MANPOWER AND PERSONNEL MANAGEMENT           1,015   1,015   1,015      1,015 
MILITARY MANPOWER AND PERSONNEL MANAGEMENT          25,420  25,420  25,420     25,420 
SERVICEWIDE COMMUNICATIONS                          50,534  50,534  50,534     50,534 
BASE SUPPORT                                        29,571  29,571  29,571     29,571 
MAINTENANCE OF REAL PROPERTY                         7,182   7,182   7,182      7,182 
COMBAT/WEAPONS SYSTEMS                               5,398   5,398   5,398      5,398 
GENERAL DEFENSE INTELLIGENCE PROGRAM                   587     587     587        587 
LOGISTICS OPERATIONS AND TECHNICAL SUPPORT:                                           
AIR SYSTEMS SUPPORT                                  2,534   2,534   2,534      2,534 
TOTAL, BUDGET ACTIVITY 4                           128,450 128,450 128,450    128,450 
FUEL REPRICING                                         ---  -8,200     ---        --- 
P-3 SQUADRONS                                          ---   7,600     ---      7,600 
TOTAL, OPERATION AND MAINTENANCE, NAVY RESERVE     928,639 949,039 928,639    957,239 
--------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

Aircraft Depot Maintenance/C-20 Repair

11,000

Mission and Other Ship Operations/MCM Steaming Days

10,000

Undistributed:

7,600

NAVY RESERVE FORCES

The conferees concur in the House direction of House Report 105-591, page 81, regarding Navy Reserve force structure and operations.

NAVY RESERVE TRAINING CENTER

The conferees understand the City of Gary, Indiana objects to the current leasing arrangement between the Navy and the City of Gary relating to the presence of a Naval Reserve Training Center on city-owned property. The conferees urge the Navy to negotiate with the City of Gary the relocation of its facility.

Operation and Maintenance, Marine Corps Reserve

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------
                                                    Budget   House  Senate Conference 
--------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, MARINE CORPS RESERVE                                       
BUDGET ACTIVITY 1: OPERATING FORCES:                                                  
MISSION FORCES:                                                                       
TRAINING                                            14,435  14,435  14,435     14,435 
OPERATING FORCES                                    33,823  33,823  33,823     33,823 
BASE SUPPORT                                        16,272  16,272  16,727     16,272 
MAINTENANCE OF REAL PROPERTY                         6,976   6,976   6,976      6,976 
DEPOT MAINTENANCE                                    2,821   2,821   2,821      2,821 
TOTAL, BUDGET ACTIVITY 1                            74,327  74,327  74,327     74,327 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                    
ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                            
RECRUITING AND ADVERTISING                           7,920   9,120   7,920      7,920 
SPECIAL SUPPORT                                     11,080  11,080  11,080     11,080 
SERVICEWISE TRANSPORTATION                           4,714   4,714   4,714      4,714 
ADMINISTRATION                                       8,763   8,763   8,763      8,763 
BASE SUPPORT                                         7,789   7,789   7,789      7,789 
INCREASED USE OF GUARD AND RESERVE                           1,200              1,200 
ACTIVE DUTY FOR SPECIAL WORK                                 2,100              2,100 
TOTAL, BUDGET ACTIVITY 4                            40,266  44,766  40,266     43,566 
TOTAL, O&M, MARINE CORPS RESERVE                   114,593 119,093 114,593    117,893 
--------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 4: Administration and Servicewide Activities:

Increased Use of Guard and Reserve

1,200

Active Duty for Special Work

2,100

Operation and Maintenance, Air Force Reserve

The conference agreement on items addressed by either the House or the Senate is as follows:

[Page: H8691]

[In thousands of dollars]
--------------------------------------------------------------------------------------------
                                                      Budget     House    Senate Conference 
--------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR FORCE RESERVE                                                
BUDGET ACTIVITY 1: OPERATING FORCES:                                                        
AIR OPERATIONS:                                                                             
AIRCRAFT OPERATIONS:                               1,038,509 1,038,509 1,038,509  1,038,509 
MISSION SUPPORT OPERATIONS                            40,926    40,926    40,926     40,926 
BASE SUPPORT                                         223,606   223,606   223,606    223,606 
MAINTENANCE OF REAL PROPERTY                          61,616    61,616    61,616     61,616 
DEPOSIT MAINTENANCE                                  298,493   298,493   298,493    298,493 
TOTAL, BUDGET ACTIVITY 1                           1,663,150 1,663,150 1,663,150  1,663,150 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                          
ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                                  
ADMINISTRATION                                        46,002    46,002    46,002     46,002 
MILITARY MANPOWER AND PERSONNEL MANAGEMENT            20,205    20,205    20,205     20,205 
RECRUITING AND ADVERTISING                             8,360    11,360     8,360     11,360 
OTHER PERSONNEL SUPPORT                                6,366     6,366     6,366      6,366 
AUDIOVISUAL                                              613       613       613        613 
FUEL REPRICING                                                 -11,700                      
TOTAL, BUDGET ACTIVITY 4                              81,546    72,846    81,546     84,546 
TOTAL, O&M AIR FORCE RESERVE                       1,744,696 1,735,996 1,744,696  1,747,696 
--------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustment to the budget activities is as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 4: Administration and Servicewide Activities:

25400 Recruiting and Advertising

3,000

Operation and Maintenance, Army National Guard

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------------
                                                      Budget     House    Senate Conference 
--------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD                                              
BUDGET ACTIVITY 1: OPERATING FORCES:                                                        
MISSION OPERATIONS                                                                          
LAND FORCES                                        1,302,542 1,402,542 1,361,042  1,402,542 
LAND FORCES READINESS                                144,113   144,113   144,113    144,113 
LAND FORCES READINESS SUPPORT                        839,066   843,266   853,066    843,266 
DEPOT MAINTENANCE                                                         32,500            
MAINTENANCE OF REAL PROPERTY                                              65,000     45,000 
TOTAL, BUDGET ACTIVITY 1                           2,285,721 2,389,921 2,455,721  2,454,921 
BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES:                                          
ADMINISTRATION AND SERVICEWIDE ACTIVITIES:                                                  
PERSONNEL ADMINISTRATION                              59,249    59,249    59,249     59,249 
STAFF MANAGEMENT                                      33,490    33,490    33,490     33,490 
INFORMATION MANAGEMENT                                21,793    24,593    76,793     66,793 
RECRUITING AND ADVERTISING                            36,562    36,562    36,562     36,562 
TOTAL, BUDGET ACTIVITY 4                             151,094   153,894   206,094    196,094 
FUEL REPRICING                                                  -3,500                      
MILITARY (CIVILIAN) TECHNICIANS                                 27,000               27,000 
CONSEQUENCE MANAGEMENT                                           3,000                      
--------------------------------------------------------------------------------------------

ADJUSTMENTS TO BUDGET ACTIVITIES

Adjustments to the budget activities are as follows:

In thousands of dollars

[IN THOUSANDS OF DOLLARS]

Budget Activity 1: Operating Forces:

Land Forces/Ground Optempo

100,000

Land Forces Readiness/Depot Maintenance

20,000

Land Forces Readiness Support/Angel Gate Academy

4,200

Maintenance of Real Property

45,000

Budget Activity 4: Administration and Servicewide Activities:

Information Management/Distance Learning

35,000

Information Management/Communications Shortfall

10,000

Undistributed:

Military (civilian) Technicians

27,000

ARMY NATIONAL GUARD DISTANCE LEARNING

The conferees agree to provide an increase of $25,000,000 in Operation and Maintenance, Army National Guard and an increase of $28,000,000 in Other Procurement, Army for distance learning and information management requirements.

Of this amount, $2,800,000 is only to continue efforts to demonstrate cost effective ways to use the National Guard Distance Learning Network to meet DoD training requirements as provided for in House Report 105-591. In addition, $4,600,000 is only for the Montana Army Guard for a distance learning demonstration project as described in Senate Report 105-200.

CHICAGO MILITARY ACADEMY

The conferees recommend that $10,000,000 of the funds provided for Operation and Maintenance, Army National Guard are for the conversion of the Eighth Regiment National Guard Armory into a Chicago Military Academy, in order to provide a JROTC instruction program.

CAMP DAWSON, WEST VIRGINIA

The conferees urge the Army National Guard to develop a concept plan for the future of Camp Dawson.

CAMP DODGE, IOWA

The conferees recommend that $6,000,000 of the funds available for Real Property Maintenance in Operation and Maintenance, Army National Guard be used for repair of storm damage at Camp Dodge, Iowa.

Operation and Maintenance, Air National Guard

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-----------------------------------------------------------------------------------------
                                                   Budget     House    Senate Conference 
-----------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE, AIR NATIONAL GUARD                                            
BUDGET ACTIVITY 1: OPERATION FORCES:                                                     
AIR OPERATIONS:                                                                          
AIRCRAFT OPERATIONS                             1,935,880 1,937,380 1,945,880  1,945,880 
MISSION SUPPORT OPERATIONS                        340,884   340,884   340,884    340,884 
BASE SUPPORT                                      295,163   295,163   295,163    295,163 
MAINTENANCE OF REAL PROPERTY                       82,633    82,633    82,633     82,633 
DEPOT MAINTENANCE                                 428,708   428,708   438,708    428,708 
TOTAL, BUDGET ACTIVITY 1                        3,083,268 3,084,768 3,103,268  3,093,268 
BUDGET ACTIVITY ADMIN & SERVICEWIDE ACTIVITIES:                                          
SERVICEWIDE ACTIVITIES:                                                                  
ADMINISTRATION                                      2,913     2,913     2,913      2,913 
RECRUITING AND ADVERTISING                          7,752    10,751     7,752     10,752 
FUEL REPRICING                                              -23,200                      
TOTAL, BUDGET ACTIVITY 4                           10,665    -9,535    10,665     13,665 
TOTAL, O&M AIR, NATIONAL GUARD                  3,093,933 3,075,233 3,113,933  3,106,933 
-----------------------------------------------------------------------------------------

[Page: H8692]

SEARCH AND RESCUE SUPPORT

The conferees direct that the Air National Guard provide support for Coast Guard seasonal search and rescue mission requirements at the Francis S. Gabreski Airport in Hampton, New York. Assistance to the Coast Guard will include access to necessary facilities, runway, hangar, operations center, berthing, and maintenance spaces. Seasonal Coast Guard access will be maintained between April 15 and October 15, 1999. The Director of the Air National Guard and the Commandant of the Coast Guard shall enter into a memorandum of agreement (MOA) for use of these facilities and shall provide copies of that agreement to the Committees on Appropriations not later than December 1, 1998.

DEFENSE SYSTEMS EVALUATION PROGRAM

The conferees direct that $2,250,000 of the funds provided for Operation and Maintenance, Air National Guard be for the Defense Systems Evaluation program for support of test and training operations at White Sands Missile Range, New Mexico, and Fort Bliss, Texas.

Overseas Contingency Operations Transfer Fund

The conferees agree to provide $439,400,000 for the Overseas Contingency Operations Transfer Fund. This amount covers estimated DoD costs of continuing operations in Southwest Asia.

United States Court of Appeals for the Armed Forces

The conference agreement provides $7,324,000 for the United States Court of Appeals for the Armed Forces as requested in the budget.

Environmental Restoration, Army

The conferees agree to provide $370,640,000 for Environmental Restoration, Army.

Environmental Restoration, Navy

The conferees agree to provide $274,600,000 for Environmental Restoration, Navy.

Environmental Restoration, Air Force

The conferees agree to provide $372,100,000 for Environmental Restoration, Air Force.

Environmental Restoration, Defense-wide

The conferees agree to provide $26,091,000 for Environmental Restoration, Defense-Wide

Environmental Restoration, Formerly Used Defense Sites

The conferees agree to provide $225,000,000 for Environmental Restoration, Formerly Used Defense Sites.

BUILDING DEMOLITION AND DEBRIS REMOVAL

To minimize mobilization costs at remote sites, the Department may perform building demolition and debris removal at formerly used defense sites (FUDS) using fiscal year 1999 funds available under this heading. The conferees direct the Department to conduct building demolition and debris removal at the following formerly used defense sites: Collision Point, Nuvagapak Point and Cape Sarichef, Alaska, or alternative sites in Alaska to optimize cost effectiveness on a regional basis.

CHARLESTON MACALLOY SITE

The conferees concur with the Senate's recommended reporting requirements regarding the Defense Logistics Agency inventory location in Charleston, South Carolina. The conferees expect that, if the Department determines that this site is eligible for formerly used defense sites (FUDS) funding, $10,000,000 shall be made available as expeditiously as possible considering departmental policies on the allocation of such funds.

GOVERNMENT OWNED CONTRACTOR OPERATED (GOCO) FACILITIES

The conferees are concerned about the Army's limited progress in recovering the costs associated with environmental restoration at former ammunition production GOCO facilities. Therefore, the conferees direct the Army to take the following actions and, by the dates noted, report on their findings to the congressional defense committees.

No later than March 30, 1999, the Army should (1) identify all GOCO ammunition production facilities, the contractors that operated the facilities, and the prime contract numbers of each contract for the operation of the facilities (2) document the current environmental cleanup status, including past and projected clean up costs, for each GOCO facility (3) compile a summary of historical third-party insurance coverage for each GOCO facility, including the names of all the insurers, policy numbers, policy periods, and terms, conditions, and limits of coverage (4) ascertain whether notices of accidents or occurrences, or other appropriate notices, have been given to each of the insurers, including any notices provided by the operating contractor, and (5) determine if any of the GOCO facilities was placed on a standby status and whether insurance coverage remained in force during that period.

Not later than June 15, 1999, the conferees expect the Department to (1) file notices of claims with as many of the insurers as possible and to provide a timetable for filing all remaining notices of claims (2) prepare a detailed legal analysis of the potential claims for each of the GOCO facilities including an assessment of applicable case law, potential effect of specific indemnification provisions, pollution exclusion and limitations in the scope of coverage (3) analyze alternative approaches, such as pursuing claims in groups, to maximize insurance recovery, including legal strategy and timetables, and decide on a recommended course of action.

NOTIFICATION OF ENVIRONMENTAL CONTRACT AWARDS

The conferees direct each military service to notify interested State and local authorities and interested Members of Congress upon release of draft solicitations for contracts anticipated to exceed $5,000,000. The conferees further direct that this requirement shall also apply to all increments of indefinite delivery indefinite quantity-type contracts which meet this threshold.

TOTAL ENVIRONMENTAL REMEDIATION CONTRACTS (TERC)/REMEDIAL ACTION CONTRACTS (RAC)

The conferees direct that not more than twenty-five percent of funding obligated by the Corps of Engineers for environmental remediation shall be executed through TERC contracts. Additionally, the conferees are concerned with the Navy's increasing reliance on the RAC to accomplish environmental remediation. Accordingly, the conferees direct the Secretary of the Navy to report to the congressional defense committees no later than January 15, 1999, on their use of RAC during fiscal year 1998. The conferees further direct that this information be provided quarterly throughout fiscal year 1999.

MITIGATION OF ENVIRONMENTAL DAMAGE

In entering into contracts for the mitigation of environmental damage on Indian lands, the Department is encouraged to extend a preference to Native American owned or operated businesses with experience in the mitigation of environmental damage or environmental technology.

Overseas Humanitarian, Disaster, and Civic Aid

The conferees agree to provide $50,000,000 for Overseas Humanitarian, Disaster, and Civic Aid.

Former Soviet Union Threat Reduction

The conferees agree to provide $440,400,000, for the Former Soviet Union Threat Reduction program.

Quality of Life Enhancement, Defense

The conferees agree to provide a total of $455,000,000 for Quality of Life Enhancement, Defense. Given the substantial backlog of real property maintenance in the areas of barracks, dormitories and related facilities, the conferees direct that these funds be applied to workload for such projects within the United States and its territories. In the case of the Reserve components, these additional funds should be utilized to reduce the backlog in mission and support facilities. The conferees further direct the Secretaries of each of the Military Services to provide the congressional defense committees with a report on each additional project to be funded from funds available in this account prior to solicitation for these projects. This report shall include the location, estimated cost and projected commencement and completion dates for each project.

TITLE III--PROCUREMENT

The conference agreement is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------
                                         Budget      House     Senate Conference 
---------------------------------------------------------------------------------
SUMMARY                                                                          
ARMY:                                                                            
AIRCRAFT                              1,325,943  1,400,338  1,408,652  1,388,268 
MISSILES                              1,205,768  1,140,623  1,188,739  1,226,335 
WEAPONS, TRACKED COMBAT VEHICLES      1,433,608  1,513,540  1,484,055  1,548,340 
AMMUNITION                            1,008,855  1,099,155    998,655  1,065,955 
OTHER                                 3,198,811  3,101,130  3,395,729  3,339,486 
TOTAL, ARMY                           8,172,985  8,254,786  8,475,830  8,568,384 
NAVY:                                                                            
AIRCRAFT                              7,466,734  7,599,968  7,473,403  7,541,709 
WEAPONS                               1,327,545  1,191,219  1,324,045  1,211,419 
AMMUNITION                              429,539    473,803    488,939    484,203 
SHIPS                                 6,252,672  5,973,452  6,067,272  6,035,752 
OTHER                                 3,937,737  3,990,553  3,886,475  4,072,662 
MARINE CORPS                            745,858    812,618    954,177    874,216 
TOTAL, NAVY                          20,160,085 20,041,613 20,194,311 20,219,961 
AIR FORCE:                                                                       
AIRCRAFT                              7,756,475  8,384,735  7,967,023  8,095,507 
MISSILES                              2,359,803  2,191,527  2,219,299  2,069,827 
AMMUNITION                              384,161    388,925    384,161    379,425 
OTHER                                 6,974,387  7,034,217  6,904,164  6,960,483 
TOTAL, AIR FORCE                     17,474,826 17,999,404 17,474,647 17,505,242 
DEFENSE-WIDE                          2,041,650  2,055,432  1,932,250  1,944,833 
NATIONAL GUARD AND RESERVE EQUIPMENT               120,000    500,000    352,000 
TOTAL PROCUREMENT                    47,849,546 48,471,235 48,577,038 48,590,420 
---------------------------------------------------------------------------------

[Page: H8693]

Aircraft Procurement Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-------------------------------------------------------------------------
                                   Budget   House  Senate Qty Conference 
-------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, ARMY                                               
C-XX (MEDIUM RANGE) AIRCRAFT                       30,000   5     27,000 
UH-60 BLACKHAWK (MYP)             218,820 297,320 292,765  29    272,365 
AH-634 MODS                        52,902  55,902  54,402         56,902 
CH-47 CARGO HELICOPTER MODS (MYP) 101,176  88,476  73,876         81,176 
C-12 CARGO AIRPLANE MODS            2,658   9,658   8,658          8,658 
KIOWA WARRIOR                      40,466  56,446  52,646         52,646 
EH-60 QUICKFIX MODS                 3,015   3,015                        
AIRCRAFT SURVIVABILITY EQUIPMENT    5,144  12,544  18,944         12,544 
COMMON GROUND EQUIPMENT            30,107  31,307  30,107         31,307 
ADVISORY AND ASSISTANCE SERVICES           -1,584                 -1,584 
-------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousand of dollars]
--------------------------------------------------------------------------
                                        Budget   House  Senate Conference 
--------------------------------------------------------------------------
UH-60 BLACKHAWK (MYP):                 218,820 297,320 292,765    272,365 
Additional aircraft                          0  78,500  78,500     58,100 
Engineering change orders                    0       0  -4,555     -4,555 
AH-64 MODS:                             52,902  55,902  54,402     56,902 
VMEP for National Guard                      0   3,000       0      3,000 
AH-64 T701C engine upgrade                   0       0   1,500      1,000 
KIOWA WARRIOR:                          40,446  56,446  52,646     52,646 
System safety enhancement                    0  16,000   9,600      9,600 
Crew station mission equipment trainer       0       0   2,600      2,600 
--------------------------------------------------------------------------

Missile Procurement, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------
                                  Budget   House  Senate   Qty Conference 
--------------------------------------------------------------------------
MISSILE PROCUREMENT, ARMY                                                 
HELLFIRE SYS SUMMARY             360,625 313,325 360,625 2,000    360,625 
JAVELIN (AAWS-M) SYSTEM SUMMARY  319,988 319,988 349,988 3,316    339,988 
MLRS ROCKET                       16,513   3,413                          
MLRS LAUNCHER SYSTEMS             85,387 110,387 143,787    24    123,787 
ATACMS/BAT                        49,083  49,083  24,083    30     49,083 
BAT                              100,425 100,425  50,225   420    100,425 
AVENGER MODS                       8,425           8,425            8,425 
ADVISORY AND ASSISTANCE SERVICES          -7,604                   -7,604 
--------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
-------------------------------------------------------------------------------
                                             Budget   House  Senate Conference 
-------------------------------------------------------------------------------
MLRS LAUNCHER SYSTEMS:                       85,387 110,387 143,787    123,787 
National Guard launchers                          0  25,000  50,000          0 
COTS to procure joint technical architecture      0       0   8,400      8,400 
National Guard MLRS support equipment                                   30,000 
-------------------------------------------------------------------------------

Procurement of Weapons and Tracked Combat Vehicles, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-----------------------------------------------------------------------------------
                                             Budget   House  Senate Qty Conference 
-----------------------------------------------------------------------------------
PROCUREMENT OF W&TCV, ARMY                                                         
BRADLEY BASE SUSTAINMENT                    285,844 371,844 283,844        356,844 
BFVS SERIES (MOD)                            58,998  58,998  78,998         75,498 
IMPROVED RECOVERY VEHICLE (M88 MOD)          38,175  38,175  55,075  21     51,075 
HEAVY ASSAULT BRIDGE (HAB) SYS (MOD)         50,401  50,401  43,748         50,401 
M1 ABRAMS TANK (MOD)                         53,301  58,301  46,601         36,301 
ABRAMS UPGRADE PROGRAM                      412,661 403,661 408,061        419,061 
ARMOR MACHINE GUN, 7.62MM M240 SERIES         6,496   6,496  12,996 673     11,496 
GRENADE LAUNCHER, AUTO, 40MM, MK19-3         12,191  12,191  15,191 697     15,191 
M16 RIFLE MODS                                6,241   6,241   5,241          5,241 
DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS)                  25,000         20,000 
ADVISORY AND ASSISTANCE SERVICES                     -2,068                 -2,068 
-----------------------------------------------------------------------------------

[Page: H8694]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------------------
                                              Budget   House  Senate Conference 
--------------------------------------------------------------------------------
BRADLEY BASE SUSTAINMENT:                    285,844 371,844 283,844    356,844 
A0 to ODS variant                                  0  80,000       0     70,000 
AN/VIC-3                                           0   6,000       0      3,000 
Software delays                                    0       0  -2,000     -2,000 
BFVS SERIES (MOD):                            58,998  58,998  78,998     75,498 
Reactive armor tiles                               0       0  20,000     16,500 
M1 ABRAMS TANK (MOD):                         53,301  58,301  46,601     36,301 
AN/VIC-3                                           0   5,000       0      3,000 
M1A1D program savings                              0  -6,700       0    -20,000 
ABRAMS UPGRADE PROGRAM:                      412,661 403,661 408,061    419,061 
M1A1D termination                                  0 -20,000       0          0 
Tank upgrades                                      0  11,000       0     11,000 
Overhead rates--M1A2 program                       0  -4,600       0     -4,600 
DIRECT SUPPORT ELECTRICAL TEST SETS (DSETS):       0       0  25,000     20,000 
Abrams upgrade program                             0       0   5,000      4,000 
BFIST                                              0       0   5,000      4,000 
Bradley C2 vehicle                                 0       0   5,000      4,000 
Bradley legacy fleet                               0       0   5,000      4,000 
Bradley stinger                                    0       0   5,000      4,000 
--------------------------------------------------------------------------------

Procurement of Ammunition, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------
                                       Budget  House Senate Qty Conference 
---------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, ARMY                                            
CTG, 5.56MM, ALL TYPES                 91,620 97,220 77,620         94,420 
CTG, 7.62MM ALL TYPES                  10,463 14,463  7,263         12,463 
CTG, 25MM, ALL TYPES                   59,618 80,418 71,618         80,418 
CTG MORTAR 60MM PRACTICE M766                  5,000                 2,500 
CTG MORTAR 120MM HE M934 W/MO FUZE     29,087 38,087 29,087  33     37,087 
CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ         8,500                 5,000 
CTG 120MM APFSDS-T M829A2/M829E3        9,732 19,732  9,732   2     14,732 
CTG 120MM HEAT-MP-T M830A1                    10,000 15,000         10,000 
CTG ARTY 105MM DPICM XM915                     7,500                       
CTG ARTY 105 M927                              5,000                 5,000 
PROJ ARTY 155MM SADARM M898            56,542 36,542 31,542 550     31,542 
PROJ ARTY 155MM HE M107                25,650 35,650 25,650 124     32,650 
FUZE ARTY ELEC TIME M767                              5,000          4,000 
MINE AT M87 (VOLCANO)                                15,000         12,000 
BUNKER DEFEATING MUNITION (BDM)               10,000                10,000 
PROVISION OF INDUSTRIAL FACILITIES     47,660 52,560 47,660         50,660 
CONVENTIONAL AMMO DEMILITARIZATION     97,983 97,983 82,983         82,983 
---------------------------------------------------------------------------

KINETIC ENERGY TANK AMMUNITION

The conferees direct the Army to submit by December 1, 1998, their plan for funding the M829A2 at a minimum sustaining rate until the M829E3 enters production.

M830A1 TANK AMMUNITION

The conferees encourage the Army to include funding for the M830A1 and M830A1 to XM908 conversion programs in its fiscal year 2000 budget submission.

Other Procurement, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------
                                              Budget   House  Senate   Qty Conference 
--------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY                                                               
TACTICAL TRAILERS/DOLLY SETS                  11,948  11,948  19,448           17,948 
HI MOB MULTI-PURP WHLD VEH (HMMWV)            12,144  58,476  77,844   110     67,144 
FAMILY OF MEDIUM TACTICAL VEH (FMTV)         332,044 312,424 382,044 2,038    332,044 
MEDIUM TRUCK EXTENDED SVC PGM (ESP)           37,247  37,247  63,647 1,085     50,447 
LINE HAUL ESP                                  4,883   4,983   4,883    62      4,983 
HEAVY ARMORED SEDAN                            5,956   5,956            54      5,956 
PASSENGER CARRYING VEHICLES                      867     867            37        867 
GENERAL PURPOSE VEHICLES                       1,059   1,059                    1,059 
PROJECT MANAGEMENT SUPPORT                     2,437   2,437   1,437            1,437 
SYSTEM FIELDING SUPPORT (TACOM)                4,166   4,166   3,166            3,166 
SMART-T (SPACE)                               57,743  33,143  57,743           57,743 
ARMY DATA DISTRIBUTION SYSTEM (ADDS)          24,048  27,048  52,048           47,048 
SINCGARS FAMILY                               13,212  51,212  63,212           57,212 
ACUS MOD PROGRAM (WIN-T/T)                    97,080  97,080 132,080          129,830 
INFORMATION SYSTEM SECURITY PROGRAM--ISSP     29,714  31,714  33,714           33,714 
INFORMATION SYSTEMS                           91,213  91,213 122,213          119,213 
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA)        24,117  24,117  24,117           30,867 
JTT/CIBS-M (TIARA)                             5,340  10,340   5,340    56     10,340 
IEW--GND BASE COMMON SENSORS (TIARA)          25,388  14,188                   12,071 
JOINT STARS (ARMY) (TIARA)                    87,229  90,229  87,229           87,229 
TACTICAL EXPLOITATION OF NATIONAL CAPABILITY   1,690   1,690   1,690            6,090 
COMMON IMAGERY GRD/SURFACE SYS                         2,508                    2,508 
ITEMS LESS THAN $2.0M (TIARA)                    530     530   2,530            1,530 
SHORTSTOP                                             15,000                   10,000 
NIGHT VISION DEVICES                          29,636  38,636  53,136           43,636 
LTWT VIDEO RECON SYSTEM (LWVRS)                3,364   3,364   9,364   110      8,364 
MOD OF IN-SVC EQUIP (TAC SURV)                 5,477  23,227   5,477           16,477 
LOGTECH                                        3,238   3,238   9,238            8,238 
GUN LAYING AND POS SYS (GLPS)                 11,781   6,331  11,781   126      6,331 
ISYSCON EQUIPMENT                             34,175  10,175  34,175           15,175 
ARMY TRAINING XX1 MODERNIZATION               32,635          32,635           32,635 
AUTOMATED DATA PROCESSING EQUIP              130,712 120,712 130,712          123,712 
ITEMS LESS THAN $2.0M (CSS-EQ)                 4,749   4,749   4,749            5,749 
HYDRAULIC EXCAVATOR                            6,402   8,902   6,402    26      6,402 
CRANE, WHEEL MTD, 25T,  3/4  CU YD, RT        11,553  11,553  11,553    47     19,553 
PUSHER TUG, SMALL                              4,269   8,569   4,269     3      8,569 
FLOATING CRANE, 100-250 TON                           15,000             1     15,000 
GENERATORS AND ASSOCIATED EQUIP               82,749  69,049  82,749           69,049 
ROUGH TERRAIN CONTAINER CRANE                 13,615   3,615  13,615    30      8,615 
TRAINING DEVICES, NONSYSTEM                   56,755  67,755  44,655           60,755 
SIMNET/CLOSE COMBAT TACTICAL TRAINER         113,927  76,527  88,927           88,927 
FIRE SUPPORT COMBINED ARMS TACTICAL TRAINER   28,124          28,124           16,000 
INTEGRATED FAMILY OF TEST EQUIPMENT (IFTE)    54,051  69,051  64,051           66,551 
BASE LEVEL COM'L EQUIPMENT                     9,697   9,697   9,697           12,697 
MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)      17,667  22,467  17,667           22,667 
VEHICLE LEASES                                                   400                  
ADVISORY AND ASSISTANCE SERVICES                       4,030                    4,030 
R-2000 ENGINE FLUSH SYSTEM                             5,000                          
--------------------------------------------------------------------------------------

[Page: H8695]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Budget   House  Senate Conference 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ACUS MOD PROGRAM (WIN-T/T)                                                                                                                      97,080  97,080 132,080    129,830 
Program increase                                                                                                                                     0       0  35,000     30,000 
High speed multiplexer (moved from 203761A)                                                                                                          0       0       0      2,750 
INFORMATION SYSTEM SECURITY PROGRAM--ISSP                                                                                                       29,714  31,714  33,714     33,714 
`Uninterruptible' universal power supply sys                                                                                                         0   2,000       0      1,000 
Tactical Secure Terminal Equipment                                                                                                                   0       0   4,000      3,000 
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA)                                                                                                          24,117  24,117  24,117     30,867 
Analysis control team (Note: Transferred from 0203761A)                                                                                              0       0       0      6,750 
JOINT STARS (ARMY) (TIARA)                                                                                                                      87,229  90,229  87,229     87,229 
Common Ground Station (Note: Of the available funds, $2,000,00 is only to procure additional workstations for field units in Korea and Bosnia)       0   3,000       0          0 
TACTICAL EXPLOITATION OF NATIONAL CAPABILITY                                                                                                     1,690   1,690   1,690      6,090 
Grendier Brat (Note: Transferred from 0203761A)                                                                                                      0       0       0      4,400 
NIGHT VISION DEVICES                                                                                                                            29,636  38,636  53,136     43,636 
Increase procurement--various sytems                                                                                                                 0   9,000       0      6,000 
25mm gen III image intensifier                                                                                                                       0       0  10,000      8,000 
LTWT VIDEO RECON SYSTEM (LWVRS)                                                                                                                  3,364   3,364   9,364      8,364 
Increase procurement                                                                                                                                 0       0   6,000      5,000 
MOD OF IN-SVC EQUIP (TAC SURV)                                                                                                                   5,477  23,227   5,477     16,477 
Firefinder                                                                                                                                           0  16,000       0     10,000 
Automated Integrated Surveying Instrument                                                                                                            0   1,750       0      1,000 
AUTOMATED DATA PROCESSING EQUIP                                                                                                                130,712 120,712 130,712    123,172 
Ammo AIT                                                                                                                                             0  10,000       0     10,000 
JCALS                                                                                                                                                0 -20,000       0    -17,000 
ITEMS LESS THAN $2.0M (CSS-EQ)                                                                                                                   4,749   4,749   4,749      5,749 
Lightweight maintenance shelters                                                                                                                     0       0 [2,000]      1,000 
HYDRAULIC EXCAVATOR                                                                                                                              6,402   8,902   6,402      6,402 
Hydraulic excavator--active                                                                                                                          0   1,000       0          0 
Hydraulic excavator--reserves (Note: Funds are provided under Modification of In-service Equipment)                                                  0   1,500       0          0 
CRANE, WHEEL MTD, 25T, 3/4 CU YD, RT                                                                                                            11,553  11,553  11,553     19,553 
All terrain crates for the Army reserves                                                                                                             0       0       0      8,000 
TRAINING DEVICES, NONSYSTEM                                                                                                                     56,755  67,755  44,655     60,755 
Firefighter trainers                                                                                                                                 0   3,000   4,000      3,000 
Aerial weapons scoring system                                                                                                                        0   3,000       0      2,000 
Engagement skills trainers--NTL GRD                                                                                                                  0   5,000       0      3,000 
MILES                                                                                                                                                0       0 -16,100     -8,000 
MILES--Cope Thunder exercise                                                                                                                         0       0 [4,000]      4,000 
BASIC LEVEL COM'L EQUIPMENT                                                                                                                      9,697   9,697   9,697     12,697 
R-2000 Engine Flush System (Note: House provided funds under R-2000 Engine Flush System project)                                                     0       0       0      3,000 
MODIFICATION OF IN-SVC EQUIPMENT (OPA-3)                                                                                                        17,667  22,467  17,667     22,667 
Laser leveling systems                                                                                                                               0   4,800       0      3,500 
Laser leveling systems for hydraulic excavator systems (Note: House provided funds under Hydraulic Excavator Systems)                                0       0       0      1,500 
R-2000 ENGINE FLUSH SYSTEM (Note: Project is funded under base level com' equipment)                                                                 0   5,000       0          0 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TACTICAL RADIOS

The conferees encourage FORSCOM to procure off-the-shelf radios such as the AN/PRC-138 and AKLR/MIBTR to mee tthe 82nd Airborne Division's requirement to replace its aging non-secure radios.

Aircraft Procurement, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------
                                    Budget     House    Senate Qty Conference 
------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, NAVY:                                                   
AV-8B (V/STOL) HARRIER             282,713   279,513   282,713  12    279,513 
F/A-18E/F (FIGHTER) HORNET       2,787,783 2,568,083 2,787,783  30  2,772,783 
V-22 (MEDIUM LIFT)                 610,766   696,266   610,766   7    610,766 
CH-60                              106,027   144,027   106,027   5    125,027 
T-45TS (TRAINER) GOSHAWK           282,667   267,167   282,667  15    293,567 
T-45TS (TRAINER) GOSHAWK (AP-CY)    60,159    60,159     8,000          8,000 
KC-130J                                      112,400             2    112,400 
EA-6 SERIES                         75,735   114,735    80,735         95,735 
AV-8 SERIES                         99,109   112,409    99,109         86,509 
F-14 SERIES                        223,661   224,361   223,661        216,361 
F-18 SERIES                        198,049   211,149   198,049        194,149 
AH-1W SERIES                        22,394    27,894    33,394         27,894 
H-1 SERIES                          18,220    30,220    18,220         26,220 
EP-3 SERIES                          5,437     6,937     7,437          7,437 
P-3 SERIES                         268,633   341,033   279,133        291,633 
S-3 SERIES                          45,997    69,797    45,997         45,997 
E-2 SERIES                          91,502    96,502    91,502         93,502 
CARGO/TRANSPORT A/C SERIES          27,179    27,179    38,179         27,179 
E-6 SERIES                          64,660    60,060    64,660         64,660 
COMMON ECM EQUIPMENT                37,375    33,075    58,875         37,075 
COMMON AVIONICS CHANGES            104,697   109,197   104,697        102,697 
SPARES AND REPAIR PARTS            727,838   719,438   727,838        727,838 
COMMON GROUND EQUIPMENT            330,952   315,552   333,952        321,952 
AIRCRAFT INDUSTRIAL FACILITIES      13,753    11,953    13,753         11,953 
ADVISORY AND ASSISTANCE SERVICES             -15,394                  -15,394 
------------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------------------------------------
                                                            Budget     House    Senate Conference 
--------------------------------------------------------------------------------------------------
F/A-18E/F (FIGHTER) HORNET                               2,787,783 2,568,083 2,787,783  2,772,783 
Reduction of aircraft                                            0  -204,700         0          0 
Program Reduction                                                0   -15,000         0    -15,000 
T-45TS (TRAINER) GOSHAWK                                   282,667   267,167   282,667    293,567 
Authorization reduction, GSE/training equip                      0   -15,500         0          0 
Aircraft pricing                                                 0         0         0     10,900 
AV-8 SERIES                                                 99,109   112,409    99,109     86,509 
Transfer from RDT&E                                              0    11,000         0          0 
ALR-67 antennas                                                  0     2,300         0      2,300 
OSCAR                                                            0         0         0    -14,900 
F-14 SERIES                                                223,661   224,361   223,661    216,361 
LANTIRN                                                          0     8,000         0          0 
Authorization reduction, structural mods                         0    -7,300         0     -7,300 
F-18 SERIES                                                198,049   211,149   198,049    194,149 
Modification of Naval Reserve aircraft                           0    17,000         0          0 
Authorization reduction, installation costs                      0    -3,900         0     -3,900 
EP-3 SERIES                                                  5,437     6,937     7,437      7,437 
Flat panel displays                                              0     1,500         0        800 
JSAF test                                                        0         0     2,000      1,200 
P-3 SERIES                                                 268,633   341,033   279,133    291,633 
Transfer from RDT&E                                              0    28,700         0          0 
Lightweight environmentally sealed parachute assembly            0    10,000     7,400      7,400 
One additional AIP kit                                           0    12,200    12,200     12,200 
Specific emitter identification                                  0    15,000         0      7,500 
Advanced digital recorders                                       0     6,500         0      5,000 
Weapon system trainer                                            0         0    -9,100     -9,100 
COMMON ECM EQUIPMENT                                        37,375    33,075    58,875     37,075 
AN/ALR-67(V)2 radar warning receiver upgrades                    0     5,000     5,000      5,000 
IDECM, transfer to RDT&E                                         0    -9,300         0     -9,300 
AN/APR-39 radar warning receivers                                0         0     6,500      4,000 
ALQ-165 suites                                                   0         0    10,000          0 
COMMON AVIONICS CHANGES                                    104,697   109,197   104,697    102,697 
Transfer from RDT&E                                              0     6,500         0          0 
Authorization reduction, ARC-210 radio installs                  0    -2,000         0     -2,000 
COMMON GROUND EQUIPMENT                                    330,952   315,552   333,952    321,952 
Authorization reduction, CASS cost growth                        0   -15,400         0    -12,000 
Naval Reserve direct support squadron readiness training         0         0     3,000      3,000 

[Footnote] (Note: The conferees agree to the Senate direction that up to $5,000,000 is available for the replacement data storage system.)
--------------------------------------------------------------------------------------------------

[Page: H8696]

Weapons Procurement, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------
                                  Budget   House  Senate Qty Conference 
------------------------------------------------------------------------
WEAPONS PROCUREMENT, NAVY:                                              
TRIDENT II (AP-CY)                62,800  62,800  42,800         52,800 
TOMAHAWK                         129,758  33,258 129,758         33,258 
AMRAAM                            62,641  55,641  51,641 115     51.641 
JSOW                             125,207 110,207 125,207 328    117,707 
SLAM-ER                                   39,506          54     39,506 
STANDARD MISSILE                 225,702 205,702 210,702 120    215,602 
PENGUIN                                   10,000   7,500                
AERIAL TARGETS                    75,474  72,774  75,474         72,774 
DRONES AND DECOYS                    298     298  10,298          8,298 
HARPOON MODS                      39,506          39,506                
WEAPONS INDUSTRIAL FACILITIES     27,133  24,333  27,133         26,133 
MK-48 TORPEDO ADCAP MODS          52,813  50,613  52,813         50,163 
CIWS MODS                          2,778   6,778  12,778         10,778 
5/54 GUN MOUNT MODS                  909     909  15,909         13,909 
ADVISORY AND ASSISTANCE SERVICES          -4,126                 -4,126 
------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------
                                  Budget   House  Senate Conference 
--------------------------------------------------------------------
Amraam                            62,641  55,641  51,641     51.641 
Program Reduction/Merger Savings       0  -7,000 -11,000    -11,000 
STANDARD MISSILE                 225,702 205,702 210,702    215,602 
Support costs                          0 -20,000       0     -4,000 
Block IVA support costs                0       0  -8,900          0 
Program reduction/merger savings       0       0  -6,100     -6,100 
--------------------------------------------------------------------

Procurement of Ammunition, Navy and marine Corps

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-----------------------------------------------------------------------------------
                                               Budget  House Senate Qty Conference 
-----------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY & MARINE CORP:                                     
GENERAL PURPOSE BOMBS                          22,904 22,904 34,904         31,904 
JDAM                                           41,363 41,363 41,363 747     38,063 
PRACTICE BOMBS                                 40,134 60,134 40,134         55,134 
EXTENDED RANGE GUIDED MUNITIONS (ERGM)         27,452 27,452 37,452         27,452 
5.56 MM, ALL TYPES                             25,750 26,350 26,250         26,250 
.50 CALIBER                                     1,180  1,180  1,680          1,680 
60 MM. ALL TYPES                                              8,200          7,000 
120MM. ALL TYPES                               14,054 14,054 18,054         16,054 
120MM TPCSDS-T M865                                      500                   500 
120 MM TP-T M831                                         700                   700 
CTG 25MM, ALL TYPES                             3,860  4,760  4,860          4,760 
9 MM ALL TYPES                                  2,332  3,132  3,332          3,132 
GRENADES, ALL TYPES                             4,893  8,093  5,893          5,893 
ROCKETS, ALL TYPES                             21,346 38,346 39,346         39,346 
DEMOLITION MUNITIONS, ALL TYPES                 7,737  8,337  7,737          8,337 
FUZE, ALL TYPES                                13,645 13,645 16,145         15,145 
ADVISORY AND ASSISTANCE SERVICES                        -736                  -736 
-----------------------------------------------------------------------------------

Shipbuilding and Conversion, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------
                                    Budget     House    Senate Qty Conference 
------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION, NAVY:                                              
DDG-51                           2,672,078 2,662.078 2,672,078   3  2,667,078 
LHD-8 ADVANCE PROCUREMENT                               50,000         45,000 
OUTFITTING                          95,680    80,680    95,680         90,680 
POST DELIVERY                      123,277   114,977   123,277        117,277 
ADVISORY AND ASSISTANCE SERVICES             -10,520                  -10,520 
------------------------------------------------------------------------------

[Page: H8697]

NIMITZ OVERHAUL

The conferees withdraw direction in the fiscal year 1998 conference report that $20,000,000 of the amount budgeted for the Nimitz overall is only for the ship self-defense system, since the Navy has requested and this Act provides funds in the fiscal year 1999 Other Procurement, Navy appropriation for the same purpose.

LPD-17

The Navy desires to move to the more capable advanced enclosed mast system (EMS) for the LPD-17 class ships and has informed the Appropriations Committees it has sufficient funds for this program. The conferees direct the Navy to include the AEMS on LPD 17 and 18 and to provide sufficient funds for the AEMS on subsequent ships. Should additional funding be required the Navy is directed to request reprogramming or ship cost adjustments next year. The conferees concur with the House direction regarding the evaluation of combat systems and ship self defense alternatives for the LPD-17 class ships. Currently planned systems are not sufficient to meet the anti-ship cruise missile and other threat scenarios. The report to the Appropriations Committees shall include, but not be limited to, alternatives such as multi-function radars together with an evolved sea sparrow to enhance cruise missile defense and Navy plans to ensure the post delivery availability or backfit of enhanced combat system and ship self defense alternatives for the LPD-17 class ships.

Other Procurement, Navy

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
----------------------------------------------------------------------------
                                      Budget   House  Senate Qty Conference 
----------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY                                                     
OTHER GENERATORS                       9,637   9,637   8,437          8,437 
OTHER NAVIGATION EQUIPMENT            45,259  63,259  57,259         59,259 
POLLUTION CONTROL EQUIPMENT          149,669 130,269 123,669        130,269 
HM&E ITEMS UNDER $2.0 MILLION         58,121  55,021  58,121         56,121 
REACTOR POWER UNITS                  227,338 200,038 227,338        227,338 
REACTOR COMPONENTS                   211,382 200,882 211,382        211,382 
NUCLEAR ALTERATIONS                   96,752  90,752  96,752         96,752 
RADAR SUPPORT                          1,260  23,260  10,260         23,260 
FFG UPGRADES                                                         11,000 
AN/SQQ-89 SURF ASW COMBAT SYSTEM      27,432  18,732  27,432         23,432 
SSN ACOUSTICS                        133,535 132,335 148,535        144,735 
SONAR SWITCHES AND TRANSDUCERS        12,785  11,785  12,785         12,785 
C-3 COUNTERMEASURES                    6,080  12,580   6,080         10,080 
BATTLE GROUP PASSIVE HORIZON EXTEN    73,542  73,542  65,328         65,328 
NAVY TACTICAL DATA SYSTEM                 34  10,034      34          8,034 
COOPERATIVE ENGAGEMENT CAPABILITY     47,332  82,332  19,432         82,332 
COMMON IMAGERY GRD/SURFACE SYS                65,827                 65,827 
MINESWEEPING SYSTEM REPLACEMENT       32,934  17,034  17,039         17,039 
STRATEGIC PLATFORM SUPPORT EQUIP      12,687  11,687  12,687         12,687 
NATIONAL AIR SPACE SYSTEM             28,201          28,201          8,018 
ID SYSTEMS                            15,330  13,430  15,330         13,430 
JMCIS TACTICAL/MOBILE                  3,982  25,982   3,982         23,982 
INTEG COMBAT SYSTEM TEST FACILITY      4,482   4,482   6,482          6,482 
SHORE ELEC ITEMS UNDER $2.0 MILLION    2,559  10,559   2,559         10,559 
SHIPBOARD TACTICAL COMMUNICATIONS     34,397  34,397  38,397         37,397 
SHIP COMM ITEMS UNDER $2.0 MILLION    24,220  22,320  24,220         22,320 
SUBMARINE COMMUNICATION EQUIPMENT     64,583  64,583  50,283         60,583 
SATCOM SHIP TERMINALS (SPACE)        145,193 155,193 145,193        152,193 
INTEGRATED BROADCAST SERVICE                  10,271                 10,271 
JEDMICS                                        5,000  10,000          7,000 
NAVAL SHORE COMMUNICATIONS           113,546 110,546 113,546        110,546 
WEAPONS RANGE SUPPORT EQUIPMENT        8,064  13,064  23,064         26,064 
AIRCRAFT LAUNCH & RECOVERY EQUIPMENT  39,749  35,649  39,749         35,649 
METEOROLOGICAL EQUIPMENT              32,892  28,492  32,892         28,492 
GUN FIRE CONTROL EQUIPMENT            20,203  35,203  20,203         31,203 
ENGAGEMENT SYSTEMS SUPPORT               307             307                
SHIP SELF DEFENSE SYSTEM              22,944  43,944  22,944         38,944 
AEGIS SUPPORT EQUIPMENT               83,169  85,169  95,169         94,169 
SURFACE TOMAHAWK SUPPORT EQUIPMENT    90,209 103,009  90,209         98,009 
STRATEGIC MISSILE SYSTEMS EQUIP      283,612 278,612 283,612        278,612 
ANTI-SHIP MISSILE DECOY SYSTEM        21,504   8,004  22,504         22,504 
SURFACE TRAINING DEVICE MODS           5,891   6,891   5,891          6,891 
ARMORED SEDANS                           255     255                    255 
PASSENGER CARRYING VEHICLES            3,224   3,224     246          2,540 
POLLUTION CONTROL EQUIPMENT           28,039  22,539  28,039         21,039 
VEHICLE LEASING                                          806            684 
TRAINING SUPPORT EQUIPMENT             2,174   7,174   2,174          5,174 
COMMAND SUPPORT EQUIPMENT             17,916  19,916  17,916         19,916 
OPERATING FORCES SUPPORT EQUIPMENT     4,684   6,184   4,684          6,184 
SPARES AND REPAIR PARTS              279,028 247,528 271,028        247,528 
ADVISORY AND ASSISTANCE SERVICES              -4,594                 -4,594 
----------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                  Budget   House  Senate Conference 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
OTHER NAVIGATION EQUIPMENT:                                                                                                                                                                                                                                       45,259  63,259  57,259     59,259 
WSN-7 ring laser gyro                                                                                                                                                                                                                                                  0  12,000  12,000     10,000 
WQN-2 doppler sonar velocity log                                                                                                                                                                                                                                       0   6,000       0      2,000 
Doppler sonar velocity log alternate competitive source                                                                                                                                                                                                                0       0       0      2,000 
(Note: This item was funded in RDT&E, Navy in the Senate bill)                                                                                                                                                                                                                                      
POLLUTION CONTROL EQUIPMENT                                                                                                                                                                                                                                      149,669 130,269 123,669    130,269 
Authorization reduction                                                                                                                                                                                                                                                0 -19,400       0    -19,400 
Shore-based program                                                                                                                                                                                                                                                    0       0 -15,000          0 
Ship-based program                                                                                                                                                                                                                                                     0       0 -11,000          0 
(Note: The conferees direct that none of the reduction be applied to ship conversions of refrigeration equipment from refrigerant CFC-114 to ozone-friendly CFC substitutes)                                                                                                                        
FFG UPGRADES                                                                                                                                                                                                                                                           0       0       0     11,000 
(Note: These funds are only for FFG upgrades to support the Naval Reserve Force Western Hemisphere mission. Funding will allow for upgrades that include, but are not limited to, consoles, radar, and tracking software as well as maintenance logistics costs)                                    
SSN ACOUSTICS                                                                                                                                                                                                                                                    133,535 132,335 148,535    144,735 
Authorization reduction                                                                                                                                                                                                                                                0  -1,200       0          0 
Acoustic rapid COTS insertion                                                                                                                                                                                                                                          0       0  15,000     11,200 
C-3 COUNTERMEASURES                                                                                                                                                                                                                                                6,080  12,580   6,080     10,080 
Outlaw Bandit ship signature reduction kits                                                                                                                                                                                                                            0   6,000       0      4,000 
(Note: Outlaw Bandit funds provided in this Act in both RDT&E and OPN are of special interest)                                                                                                                                                                                                      
Cancelled MK-12 field changes                                                                                                                                                                                                                                          0  -1,900       0     -1,900 
JMCIS TACTICAL/MOBILE                                                                                                                                                                                                                                              3,982  25,982   3,982     23,982 
Littoral surveillance system                                                                                                                                                                                                                                           0  12,000       0     12,000 
(Note: Funds are only to procure an engineering development model for operational use to support Naval Reserve operations of the Pacific Disaster Center).                                                                                                                                          
Mobile inshore undersea warfare van improvements                                                                                                                                                                                                                       0  10,000       0      8,000 
(Note: $4,000,000 is for MIUW improvements and $4,000,000 is only to establish integrated logistics support for the MIUW system)                                                                                                                                                                    
Submarine high data rate communications                                                                                                                                                                                                                                0       0 -14,300     -4,000 
WEAPONS RANGE SUPPORT EQUIPMENT                                                                                                                                                                                                                                    8,064  13,064  23,064     26,064 
Rangeless air combat training                                                                                                                                                                                                                                          0   5,000       0      5,000 
Mobile remote emitter simulator for 2nd location                                                                                                                                                                                                                       0       0   5,000      3,000 
PMRF upgrades                                                                                                                                                                                                                                                          0       0  10,000     10,000 
AEGIS SUPPORT EQUIPMENT                                                                                                                                                                                                                                           83,169  85,169  95,169     94,169 
Wireless sensors                                                                                                                                                                                                                                                       0   2,000       0      1,000 
Smart ship equipment                                                                                                                                                                                                                                                   0       0  12,000     10,000 
SURFACE TOMAHAWK SUPPORT EQUIPMENT                                                                                                                                                                                                                                90,209 103,009  92,209     98,009 
Afloat planning system                                                                                                                                                                                                                                                 0  10,000       0      5,000 
Tactical Tomahawk                                                                                                                                                                                                                                                      0   2,800       0      2,800 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Page: H8698]

Procurement, Marine Corps

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------
                                         Budget  House  Senate Qty Conference 
------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS                                                     
MODIFICATION KITS (TRKD VEH)              5,726  5,726  25,326          7,726 
MOD KITS (ARTILLERY)                      1,809  1,809   4,309          2,809 
155MM LIGHTWEIGHT TOWED HOWITZER         10,002 10,002  10,002                
PEDESTAL MOUNTED STINGER (PMS) (MYP)        218    218   5,218          3,218 
AUTO TEST EQUIP SYS                      19,312 19,312  34,312         29,312 
MOD KITS (INTEL)                          4,791  4,791   7,891          7,391 
ITEMS LESS THAN $2.OM (INTELL)                   2,000                  2,000 
NIGHT VISION EQUIPMENT                   11,563 11,563  50,063         33,663 
COMMAND POST SYSTEMS                      7,134 12,134   7,134         17,134 
COMM & ELEC INFRASTRUCTURE SUPPORT       57,862 89,862 131,962        105,862 
MOD KITS MAGTF C41                       27,427 27,427  27,427         33,927 
COMMERCIAL PASSENGER VEHICLES             1,248  1,248      53  37      1,248 
COMMERCIAL CARGO VEHICLES                 8,821  8,821   7,624          8,821 
VEHICLE LEASES                                             611                
MEDIUM TACTICAL VEHICLE REPLACEMENT      83,717 69,717  83,717 240     69,717 
LT TACTICAL VEHICLE REMANUFACTURE (LTRV) 39,263 72,763  66,263         69,263 
POWER EQUIPMENT ASSORTED                  5,097  5,097  14,597          9,597 
SHOP EQ CONTACT MAINTENANCE (SECM)        5,972  5,972  11,372          8,372 
COMMAND SUPPORT EQUIPMENT                   514  4,914     514          4,914 
MATERIAL HANDLING EQUIP                   6,453 11,453  16,853         11,453 
ADVISORY AND ASSISTANCE SERVICES                -1,140                 -1,140 
------------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
------------------------------------------------------------------------------------------------------------------------
                                                                                       Budget  House  Senate Conference 
------------------------------------------------------------------------------------------------------------------------
MODIFICATION KITS (TRKD VEH)                                                            5,726  5,726  25,326      7,726 
Mod kits for tracked vehicles                                                               0      0   4,600       2,00 
JTF enhanced core communications                                                            0      0  15,000          0 
(Note: Funds are provided under Command Post Systems)                                                                   
AUTO TEST EQUIPMENT SYSTEM                                                             19,312 19,312  34,312     29,312 
DSESTS-LAV, TOW2 and Abrams                                                                 0      0  15,000     10,000 
NIGHT VISION EQUIPMENT                                                                 11,563 11,563  50,063     33,663 
Borelights                                                                                  0      0   1,000      1,000 
Medium power laser illuminator                                                              0      0   3,800      2,000 
Laser aiming modules                                                                        0      0   5,000      3,000 
Gen III tubes                                                                               0      0   6,100      6,100 
AN/AVS-6 night vision goggle OMNI retrofit                                                  0      0  22,600     10,000 
COMMAND POST SYSTEMS                                                                    7,134 12,134   7,134     17,134 
JTF Enhanced Core Communications                                                            0  5,000       0     10,000 
(Note: Senate added $15,000,000 under Modification Kits (Trked Vehicles))                                               
COMM & ELEC INFRASTRUCTURE SUPPORT                                                     57,862 89,862 131,962    105,862 
Upgrades--Quantico, 29 Palms, Barstow                                                       0 32,000       0     32,000 
Upgrades non-specific                                                                       0      0  74,100     16,000 
(Note: Funds are provided for Quantico MCB, 29 Palms MCB, Barstow MCB, and Albany MCB)                                  
MOD KITS MAGTF C41                                                                     27,427 27,427  27,427     33,927 
MEWSS                                                                                       0      0       0      6,500 
------------------------------------------------------------------------------------------------------------------------

DIRECT SUPPORT ELECTRICAL SYSTEM TEST SETS

The conferees urge the DoD to include the general purpose Direct Support Electrical System Test Sets (DSESTS) in the DoD automatic test system family. DSESTS are currently in use by the Army and Marine Corps as automatic test equipment (ATE) on several wheeled and tracked combat vehicles. DSESTS are proven test equipment that are comparable to other ATE included in the ATE family.

Aircraft Procurement, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------
                                  Budget   House  Senate Qty Conference 
------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE                                         
ADVANCED TACTICAL FIGHTER (F-22) 595.094 525.094 595.094   2    581,094 
F-16 C/D (MYP)                            60,000           1     30,000 
EC-130J                                   51,500           1     85,000 
C-130J                            63,782 237,782  30,000         30,000 
WC-130                                    59,700  75,400   1     75,400 
JPATS                            107,086 102,186  97,186  22    106,186 
CIVIL AIR PATROL A/C               2,619   3,000   2,619  27      3,000 
SMALL VCX                                         79,600   1     39,800 
E-8C (AP-CY)                              72,000                 36,000 
B-1B                              91,614  91,614  58,514         91,614 
B-52                              38,308  38,308  48,608         46,608 
F-15                             196,579 241,579 236,579        241,579 
F-16                             229,319 235,319 239,219        239,119 
C-5                               63,635  98,635  63,635         78,635 
T-38                              53,570  46,570  53,570         50,570 
C-130                            119,592 148,292 119,592        120,592 
C-135                            291,070 341,070 381,070        291,070 
DARP                             139,242 139,242  83,942        139,242 
E-3                              114,181 107,181 114,181        114,181 
E-4                               13,987  13,987   9,317         9,317  
E-8                               44,179  44,179  50,179         44,179 
PASSENGER SAFETY MODIFICATIONS            50,000  50,000         30,000 
SPARES AND REPAIR PARTS          524,829 522,398 551,829        522,398 
COMMON SUPPORT EQUIPMENT         152,109 158,109 152,109        158,109 
B-2A                             189,869 275,869 159,869        239,869 
F-16 POST PRODUCTION SUPPORT      27,289  42,289  27,289         37,289 
WAR CONSUMABLES                   49,396  49,396  49,396         34,720 
MISC PRODUCTION CHARGES          221,464 207,864 210,564        207,064 
COMMON ECM EQUIPMENT               4,963  20,663   4,963         11,963 
DARP                             152,113 141,813 152,113        141,813 
ADVISORY AND ASSISTANCE SERVICES         -11,490                -11,490 
------------------------------------------------------------------------

[Page: H8699]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
------------------------------------------------------------------------------
                                            Budget   House  Senate Conference 
------------------------------------------------------------------------------
EC-130J                                          0  51,500       0     85,000 
C-130J                                      63,782 237,782  30,000     30,000 
Additional aircraft for Air National Guard       0 174,000       0          0 
C-130J aircraft trainer                          0       0  30,000     30,000 
Active aircraft reduction                        0       0 -63,782    -63,782 
JPATS                                      107,086 102,186  97,186    106,186 
Three additional aircraft                        0   9,100   9,100      9,100 
GBTS concurrency                                 0 -14,000       0    -10,000 
GBTS delays                                      0       0 -15,000          0 
Other government cost growth                     0       0  -4,000          0 
B-52                                        38,308  38,308  48,608     46,608 
Modifications for 94 aircraft fleet              0       0  10,300     10,300 
Program reduction                                0       0       0     -2,000 
F-15                                       196,579 241,579 236,579    241,579 
`E' kit engine upgrades                          0  20,000  25,000     20,000 
ALQ-135 jammer                                   0  25,000  15,000     25,000 
F-16                                       229,319 235,319 239,219    239,119 
600 gal fuel tanks                               0   6,000   4,000      4,000 
Digital terrain system                           0       0   5,900      4,000 
ALR-56M                                          0       0       0      1,800 
C-130                                      119,592 148,292 119,592    120,592 
EC-130 modifications                             0  24,700       0          0 
Aluminum mesh system                             0   4,000       0      1,000 
C-135                                      291,070 341,070 381,070    291,070 
Reengine 2 KC-135 aircraft                       0  50,000       0          0 
C-135 engine lease program                       0       0  90,000          0 
SPARES AND REPAIR PARTS                    524,829 522,398 551,829    522,398 
PACER COIN                                       0  -2,431       0     -2,431 
WC-130J modifications                            0       0  27,000          0 
B-2A                                       189,869 275,869 159,869    239,869 
B-2 upgrades                                     0  86,000       0     50,000 
Software investment                              0       0 -20,000          0 
Initial spares                                   0       0 -10,000          0 
WAR CONSUMABLES                             49,396  49,396  49,396     34,720 
LAU-117 contract savings                         0       0       0    -14,676 
MISC PRODUCTION CHARGES                    221,464 207,864 210,564    207,064 
Harm Targeting System                            0 -10,100       0          0 
JTCTS                                            0  -3,500       0     -3,500 
GPS user equipment production testing            0       0  -3,000     -3,000 
GPS undefined hardware                           0       0  -2,700     -2,700 
Program reduction                                0       0  -5,200     -5,200 
COMMON ECM EQUIPMENT                         4,963  20,663   4,963     11,963 
ALQ-184 sustainment                              0  10,000       0      5,000 
ALE-50 decoys                                    0   5,700       0      2,000 
------------------------------------------------------------------------------

DEFENSE AIRBORNE RECONNAISSANCE PROGRAM

The conferees direct that the Air Force use the previously appropriated funds and, if necessary, a below threshold reprogramming to complete the demonstration and test of the Theater Airborne Warning System (TAWS). The conferees believe that any continuation of this program should be budgeted for in the Air Force's fiscal year 2000 request.

Missile Procurement Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------
                                        Budget   House  Senate Qty Confernece 
------------------------------------------------------------------------------
MISSILE PROCUREMENT, AIR FORCE                                                
AMRAAM                                 114,627  93,727  87,323 180     93,727 
TARGET DRONES                           36,263  36,263  26,263         26,263 
MM III MODIFICATIONS                    90,618 136,618 120,618        120,618 
AGM-65H MAVERICK                                 3,000                  3,000 
GLOBAL POSITIONING (MYP) SPACE (AP-CY)  77,400          77,400                
INERITIAL UPPER STAGES SPACE            48,012  46,012  37,812         44,012 
TITAN SPACE BOOSTERS SPACE             578,540 550,540 548,540        548,540 
MEDIUM LAUNCH VEHICLE SPACE            188,406 177,406 188,406   5    177,406 
DEFENSE SUPPORT PROGRAM SPACE           89,904  82,904  89,904         89,904 
SPECIAL UPDATE PROGRAMS                224,299 204,999 131,299        151,299 
SPECIAL PROGRAMS                       616,271 576,271 616,271        531,271 
ADVISORY AND ASSISTANCE SERVICES               -11,676                -11,676 
------------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------
                                  Budget   House  Senate Conference 
--------------------------------------------------------------------
AMRAAM:                          114,627  93,727  87,323     93,727 
Merger savings/program reduction       0 -20,900 -27,304    -20,900 
Restructured program                   0       0 -10,000    -10,000 
--------------------------------------------------------------------

Procurement of Ammunition, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:

[Page: H8700]

[In thousands of dollars]
---------------------------------------------------------------------------
                                     Budget  House Senate   Qty Conference 
---------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR FORCE                                       
JOINT DIRECT ATTACK MUNITION         53,157 53,157 53,157 1,819     46,157 
PRACTICE BOMBS                               5,000                   2,500 
ADVISORY AND ASSISTANCE SERVICES              -236                    -236 
---------------------------------------------------------------------------

Other Procurement, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
----------------------------------------------------------------------------------
                                        Budget     House    Senate Qty Conference 
----------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE                                                      
SEDAN, 4 DR 4X2                            780       780                          
STATION WAGON, 4X2                         413       413                          
BUSES                                    5,174     5,174                          
AMBULANCES                                 306       306                          
ARMORED SEDAN                              239       239                          
TRUCK, CARGO-UTILITY, 3/4T, 4X4          6,160     6,160                          
TRUCK, CARGO-UTILITY, 1/2T, 4X2          2,612     2,612                          
TRUCK, PICKUP, 1/2T, 4X2                 3,379     3,379                          
TRUCK, PICKUP, COMPACT                   2,445     2,445                          
TRUCK, UTILITY                           3,347     3,347           124      3,347 
CAP VEHICLES                               744     1,400       744          1,400 
INTELLIGENCE DATA HANDLING SYS          17,574    21,174    17,574         20,674 
INTELLIGENCE COMM EQUIP                  5,697     8,697     5,697          8,697 
AIR TRAFFIC CTRL/LAND SYS (ATCALS)                          16,000                
NATIONAL AIRSPACE SYSTEM                45,308    45,308    45,308         13,400 
THEATER AIR CONTROL SYS IMPROVEMENT     30,002    32,502    30,002         35,002 
TAC SIGINT SUPPORT                       1,883               1,883                
AUTOMATIC DATA PROCESSING EQUIP         33,190    33,190    33,190         36,190 
AF GLOBAL COMMAND & CONTROL SYS          5,819     4,519     5,819          4,519 
COMBAT TRAINING RANGES                  13,194    12,694    13,194         22,694 
C3 COUNTERMEASURES                      10,228    10,228    17,728         17,728 
BASE LEVEL DATA AUTO PROGRAM            28,876    28,876    27,000         27,000 
BASE INFORMATION INFRASTRUCTURE        159,383   180,383   158,383        159,383 
AFE SATELLITE CONTROL NETWORK SPACE     26,007    23,007    26,007         23,007 
TACTICAL C-E EQUIPMENT                  31,064    27,364    31,064         27,364 
COMBAT SURVIVOR/EVADER LOCATER RADIO    13,757              13,757          3,000 
CAP COM & ELECT                            378       450       378            450 
NIGHT VISION GOGGLES                     8,118     6,118     8,118          6,118 
MECHANIZED MATERIAL HANDLING EQUIP      14,516    14,516    14,516         18,516 
BASE PROCURED EQUIPMENT                  5,644    10,244     5,644          7,744 
AIR BASE OPERABILITY                     5,363     5,363    12,363          5,363 
PRDUCTIVITY INVESTMENTS                 12,304    17,304    12,304         12,304 
INTELLIGENCE PRODUCTION ACTIVITY        72,605    71,605    72,605         72,605 
COMMON IMAGERY GRD/SURFACE SYS                     5,681                    5,681 
DARP RC135                              12,656    16,456    12,656         16,456 
SELECTED ACTIVITIES                  5,322,644 5,405,644 5,256,344      5,354,744 
SPECIAL UPDATE PROGRAM                 179,813   149,813   179,813        169,813 
FIRST DESTINATION TRANSPORTATION        16,442    16,442    16,000         16,000 
SPARES AND REPAIR PARTS                 52,712    52,712    52,712         49,012 
VEHICLE LEASES                                               4,887          2,400 
VEHICLE PURCHASE                                                           12,200 
ADVISORY AND ASSISTANCE SERVICES                  -4,802                   -4,802 
----------------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
-------------------------------------------------------------------------------------------------------
                                                                     Budget   House  Senate Conference 
-------------------------------------------------------------------------------------------------------
THEATER AIR CONTROL SYS IMPROVEMENT                                  30,002  32,502  30,002     35,002 
Mobile Radar Approach Control (RAPCON) for Air National Guard             0   8,000       0      8,000 
Contract savings                                                          0  -5,500       0     -3,000 
AUTOMATIC DATA PROCESSING EQUIP                                      33,190  33,190  33,190     36,190 
Battle lab collaborative network                                          0   3,000       0      3,000 
Commercially available equipment                                          0  -3,000       0     -3,000 
Spares Information System (transfer)                                      0       0       0      3,000 
COMBAT TRAINING RANGES                                               13,194  12,694  13,194     22,694 
Rangeless training                                                        0   5,000       0     15,000 
JTCTS                                                                     0  -5,500       0     -5,500 
BASE INFORMATION INFRASTRUCTURE                                     159,383 180,383 158,383    159,383 
Base information protection improvements                                  0  20,000       0          0 
Office of Security and Investigations computer crime investigations       0   1,000       0      1,000 
Program reduction                                                         0       0  -1,000     -1,000 
MECHANIZED MATERIAL HANDLING EQUIP:                                  14,516  14,516  14,516     18,516 
Supply Asset Tracking System (transfer)                                   0       0       0      4,000 
BASE PROCURED EQUIPMENT                                               5,644  10,244   5,644      7,744 
Ultimate Building Machines for Air National Guard                         0   1,800       0        800 
Ultimate Building Machines for Air Force                                  0     800       0        300 
Automated Integrated Surveying Equipment                                  0   2,000       0      1,000 
-------------------------------------------------------------------------------------------------------

Procurement, Defense-Wide

The conference agreement on items addressed by either House or the Senate is as follows:


[In thousands of dollars]
----------------------------------------------------------------------------------
                                         Budget   House  Senate    Qty Conference 
----------------------------------------------------------------------------------
PROCUREMENT, DEFENSE-WIDE                                                         
MAJOR EQUIPMENT, OSD                    100,245 137,245 100,245           120,245 
DARP                                     77,435   3,419  77,435             3,419 
DEFENSE AIRBORNE RECONNAISSANCE PROGRAM  11,988   8,569  11,988            11,988 
DEFENSE SUPPORT ACTIVITIES               68,682  68,682  88,682 68,682            
AUTOMATIC DOCUMENT CONVERSION SYSTEM             25,000                    20,000 
MAJOR EQUIPMENT, DSPO                    16,214          16,214             3,913 
PATRIOT PAC-3                           343,235 303,235 192,735     40    248,235 
C-130 MODIFICATIONS                      58,359  58,359  63,359            60,859 
SOF ORDNANCE ACQUISITION                 15,707  15,707  21,707            18,707 
MARITIME EQUIPMENT MODIFICATIONS         26,012  22,012  26,012            22,012 
CLASSIFIED PROGRAMS                      73,991  79,084  84,091            84,091 
CONSEQUENCE MANAGEMENT                           15,000                           
CLASSIFIED PROGRAMS                     349,694 407,032 349,694           370,594 
MILITARY PERSONNEL INFORMATION SYSTEM            12,000                    12,000 
----------------------------------------------------------------------------------

[Page: H8701]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
------------------------------------------------------------------------
                                     Budget   House   Senate Conference 
------------------------------------------------------------------------
MAJOR EQUIPMENT, OSD:               100,245 137,245  100,245    120,245 
Mentor-Protege Program                    0  10,000        0     10,000 
High Performance Computing Hardware       0  27,000        0     10,000 
MAJOR EQUIPMENT, DSPO:               16,214       0   16,214      3,913 
Program reduction                         0  -7,826        0     -3,913 
IBS transfer                              0  -8,388        0     -8,388 
PATRIOT PAC-3:                      343,235 303,235  192,735    248,235 
Reduction due to schedule slip            0       0 -150,500    -55,000 
Transfer                                  0 -40,000        0    -40,000 
CLASSIFIED PROGRAMS;                 73,991  79,084   84,091     84,091 
Program increase                          0   5,093        0          0 
Program increase                          0       0   10,100     10,100 
------------------------------------------------------------------------

Patriot Advanced Capability 3 (PAC-3)

The conferees agree to provide $248,235,000, a decrease of $95,000,000 to the budget request for Patriot PAC-3 procurement, based on delays in the test program and in execution of the fiscal year (FY) 1998 Low Rate Initial Procurement (LRIP). The conferees direct that the FY 1998 PAC-3 LRIP funds may not be obligated until the PAC-3 missile successfully completes two intercept flight tests.

National Guard and Reserve Equipment

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-----------------------------------------------------------------------------------
                                              Budget  House  Senate Qty Conference 
-----------------------------------------------------------------------------------
NATIONAL GUARD & RESERVE EQUIPMENT                                                 
RESERVE EQUIPMENT:                                                                 
ARMY RESERVE: MISCELLANEOUS EQUIPMENT                20,000  45,000         20,000 
NAVY RESERVE:                                                                      
MISCELLANEOUS EQUIPMENT                              20,000  25,000         20,000 
C-9 REPLACEMENT                                              40,000         40,000 
MARINE CORPS RESERVE: MISCELLANEOUS EQUIPMENT        20,000  30,000         20,000 
AIR FORCE RESERVE: MISCELLANEOUS EQUIPMENT           20,000  35,000         20,000 
NATIONAL GUARD EQUIPMENT:                                                          
ARMY NATIONAL GUARD: MISCELLANEOUS EQUIPMENT         20,000  72,000         20,000 
AIR NATIONAL GUARD:                                                                
MISCELLANEOUS EQUIPMENT                              20,000  40,000         20,000 
C-130J                                                      128,000   3    192,000 
EC-130J                                                      85,000                
-----------------------------------------------------------------------------------

MISCELLANEOUS EQUIPMENT

The conferees agree that each of the Chiefs of the Reserve and National Guard components should exercise control of modernization funds provided in this account including aircraft and aircraft modernization. The conferees further agree that separate submissions of a detailed assessment of its modernization priorities by the component commanders is required to be submitted to the defense committees. The conferees expect the component commanders to give priority consideration to the following items: Reconfigurable Mission Simulator, Mobile Backscatter Radar, F-16 ALR-56M Radar Warning Receivers WR, P-3C Reserve Modernization, AN/PVS-7 and AN/PVS-14 Night Vision Devices, C-17 Simulator, Early Production and Fielding Program, F-15 Night Vision Imaging Systems, Frequency Hopping Multiplexer, Full Mission Trainer Upgrades, MIDS System Intergration, D7 Tractor Bulldozer PIP, D7 Tractor Bulldozer, IREMBASS, Sandbagger, CH-47 Internal Crashworthy Fuel Cells, A20DS, Counterdrug Sensor Upgrades, Armored Combat Earth Movers, ATARS MAEO Sensors, Bradley A20D, C-130 Modernization, C-130J Flight Simulators, C-22 Replacement, HH-60 Combat Rescue Upgrades, D-7 Bulldozers and Product Improvements, Engagement Skills Trainers, F-15 Fighter Data Link, F-16 Situation Awareness Data Link, F-16 Targeting Pods, F-16 Unit Training Devices, F-16 Midlife Update, Heavy Tactical Vehicles, Field Artillery Ammunition Support Vehicles, LITENING Targeting pod system, M88 A2, Material Handling Equipment Product Improvements, Mobile Electronic Warfare Support Systems, Simulators, SINCGARS radios, Onboard Oxygen Generating System, Outfitting of the 220th ADA Patriot Battalion, Paladin, Theater Aircommunication Equipment, UC-35A, UH-1 Modernization, Vibration Management Enhancement Program, UH-60Q Upgrades, WC-130J Modifications, Masters Cranes, F-16 Intermediate Avionics Shop, Medium Truck Extended Service Program, MJU-52 IR Expendable Countermeasures and Trucks and Support Equipment for Transportation Companies.

NATIONAL GUARD AND RESERVE AIRCRAFT

The conferees agree to provide $232,000,000 specifically for the acquisition and modernization of the following aircraft to support Reserve and National Guard missions:

C-9 REPLACEMENT FOR THE NAVY RESERVE

$40,000,000

C-130J AIRCRAFT FOR THE AIR NATIONAL GUARD (3)

192,000,000

TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

The conference agreement is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------
                                      Budget      House     Senate Conference 
------------------------------------------------------------------------------
RECAPITULATION                                                                
RDTE, ARMY                         4,780,545  4,967,446  4,891,640  5,031,788 
RDTE, NAVY                         8,108,923  8,297,986  8,215,519  8,636,649 
RDTE, AIR FORCE                   13,598,093 13,577,441 13,693,153 13,758,811 
RDTE, DEFENSE-WIDE                 9,314,665  8,776,318  9,032,908  9,036,551 
DEVELOPMENTAL TEST AND EVALUATION    251,106    263,606    249,106    258,606 
OPERATIONAL TEST AND EVALUATION       25,245     35,245     25,245     34,245 
GRAND TOTAL, RDTE                 36,078,577 35,918,042 36,107,571 36,756,650 
------------------------------------------------------------------------------

Research, Development, Test and Evaluation, Army

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
-----------------------------------------------------------------------------------------
                                                       Budget   House  Senate Conference 
-----------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL ARMY                                                    
IN-HOUSE LABORATORY INDEPENDENT RESEARCH               14,902  13,678  14,902     13,678 
DEFENSE RESEARCH SCIENCES                             137,399 121,827 129,463    126,463 
TRACTOR ROSE                                            6,000   6,000                    
MATERIALS TECHNOLOGY                                   10,137  10,137  15,137     13,137 
SENSORS AND ELECTRONIC SURVIVABILITY                   18,738  18,738  16,895     16,895 
AVIATION TECHNOLOGY                                    29,746  29,746  25,160     25,160 
MISSILE TECHNOLOGY                                     25,180  24,880  30,680     30,380 
MODELING AND SIMULATION TECHNOLOGY                     27,981  22,531  24,153     21,653 
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY               40,107  30,107  44,362     39,562 
BALLISTICS TECHNOLOGY                                  31,115  31,115  27,475     27,475 
WEAPONS AND MUNITIONS TECHNOLOGY                       29,489  25,689  31,489     29,189 
ELECTRONICS AND ELECTRONIC DEVICES                     22,329  29,829  25,479     25,479 
HUMAN FACTORS ENGINEERING TECHNOLOGY                   13,369  21,169  18,169     16,619 
ENVIRONMENTAL QUALITY TECHNOLOGY                       13,842  42,342  51,742     64,842 
MILITARY ENGINEERING TECHNOLOGY                        37,488  42,488  42,188     52,688 
MEDICAL TECHNOLOGY                                     67,255 155,740  70,255    139,255 
DUAL USE APPLICATIONS PROGRAM                          20,000  20,000  10,000     10,000 
WARFIGHTER ADVANCED TECHNOLOGY                         32,969  27,369  32,969     30,669 
MEDICAL ADVANCED TECHNOLOGY                            11.012 179,012  30,012    230,862 
AVIATION ADVANCED TECHNOLOGY                           30,048  40,048  51,048     45,048 
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY              24,555  27,055  29,055     25,055 
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY      54,435  54,435  49,535     61,735 
COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOLOGY   20,109  28,109  20,109     24,109 
MISSILE AND ROCKET ADVANCED TECHNOLOGY                 86,096  47,896  92,096     71,896 
LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY       21,944  24,944  25,844     23,944 
JOINT SERVICE SMALL ARMS PROGRAM                        5,173  10,673   8,673      9,673 
LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION                 20,099          20,099     12,000 
NIGHT VISION ADVANCED TECHNOLOGY                       23,960  23,960  26,460     27,460 
MILITARY ENGINEERING ADVANCED TECHNOLOGY               13,564  13,564  16,264     15,564 
TACTICAL TOWED ARRAY SONAR (H)                         54,419          54,419            
JOINT TACTICAL RADIO                                   15,600  15,600  15,600     10,100 
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION               12,200  21,240  38,240     37,740 
ARMAMENT ENHANCEMENT INITIATIVE                        26,526  46,526  28,526     36,026 
ARMY DATA DISTRIBUTION SYSTEM                          17,281   6,281   6,300     15,281 
NATO RESEARCH AND DEVELOPMENT                          11,161           9,161      4,161 
AVIATION--ADV DEV                                       7,487  12,487  11,487     11,487 
LOGISTICS AND ENGINEER EQUIPMENT--ADV DEV              17,478  17,478  19,978     18,978 
ARTILLERY SYSTEMS--DEM/VAL                            313,166 313,166 313,166    317,166 
AIRCRAFT AVIONICS                                       7,878   7,878  17,878     14,878 
COMANCHE                                              367,823 391,823 349,208    367,823 
EW DEVELOPMENT                                         85,989  90,989  90,589     86,989 
ALL SOURCE ANALYSIS SYSTEM                             28,081  36,081  28,081     34,081 
FOLLOW-ON TO TOW                                       48,106  48,106   8,106            
FAMILY OF HEAVY TACTICAL VEHICLES                               3,000   1,250      8,300 
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT                63,069  76,069  66,569     71,069 
COMBAT FEEDING, CLOTHING, AND EQUIPMENT                62,218  82,218  53,568     68,218 
TERRAIN INFORMATION--ENG DEV                            2,999   2,999   2,999      6,229 
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE           6,476   6,476   6,476     11,606 
AUTOMATIC TEST EQUIPMENT DEVELOPMENT                    7,030  12,030   7,030     10,030 
TACTICAL EXPLOITATION OF NATIONAL CAPABILITIES         44,674  40,074  44,674     44,674 
BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)                134,858 128,858 134,858    128,858 
AVIATION--ENG DEV                                       6,599  12,599  11,599     11,599 
WEAPONS AND MUNITIONS--ENG DEV                         37,725  40,725  35,725     35,725 
LANDMINE WARFARE/BARRIER--ENG DEV                      46,905  41,405  46,905     52,905 
SENSE AND DESTROY ARMAMENT MISSILE--ENG DEV            20,813          33,813     31,813 
RADAR DEVELOPMENT                                       2,786   2,786   6,786      6,786 
FIREFINDER                                             19,822  19,822  20,722     20,722 
DUAP COMMERCIAL OPERATIONS AND SUPPORT SAVINGS         33,600  19,700  23,600     21,600 
ARTILLERY SYSTEMS--EMD                                    100   2,600     100      1,100 
THREAT SIMULATOR DEVELOPMENT                           11,935  11,935  13,935     12,935 
MAJOR T&E INVESTMENT                                   40,284  40,284  32,142     37,284 
ARMY KWAJALEIN ATOLL                                  142,710 142,710 122,710    134,710 
CONCEPTS EXPERIMENTATION PROGRAM                       17,441  17,441  10,541     10,541 
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS        33,439  43,439  40,439     43,939 
SURVIVABILITY/LETHALITY ANALYSIS                       30,498  36,498  34,498     34,498 
DOD HIGH ENERGY LASER TEST FACILITY                    15,022  28,022  23,022     24,022 
DISTRIB/IMAGERY COMMON-GRD SYSTEMS                              8,912                    
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY     8,497  11,497  12,497     10,497 
POLLUTION PREVENTION                                    8,694   8,694  10,694     10,694 
ENVIRONMENTAL COMPLIANCE                               44,116  47,116  51,116     49,116 
MAINTENANCE AND REPAIR (RPM)--RDT&E                    49,233  49,233  80,233     80,233 
MAINTENANCE HEADQUARTERS (RESEARCH AND DEVELOPMENT)     4,683   4,683  22,683     22,683 
MLRS PRODUCT IMPROVEMENT PROGRAM                       20,244  32,744  20,244     25,244 
AEROSTAT JOINT PROJECT OFFICE                         103,937          45,000     15,000 
AIRBORNE RECONNAISSANCE SYSTEMS                                 7,500                    
ADV FIELD ARTILLERY TACTICAL DATA SYSTEM               35,111  35,111  40,381     34,881 
COMBAT VEHICLE IMPROVEMENT PROGRAMS                    94,756 101,856 108,256    104,756 
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM           2,948  11,948   6,948      6,948 
DIGITIZATION                                           45,007  45,007  48,007     47,007 
FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION  99,528  64,528  69,528     27,168 
TACTICAL SIMULATOR INTERFACE UNIT                                                  1,500 
MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM        11,252  19,252  11,252     15,252 
SPECIAL ARMY PROGRAM                                    6,537   7,537  12,037      9,787 
INFORMATION SYSTEMS SECURITY PROGRAM                    7,433  12,433   7,433     11,433 
DIGITAL INFORMATION TECHNOLOGY TEST BED                                 6,600      3,500 
TACTICAL UNMANNED AERIAL VEHICLES                      75,636  53,636  97,838     53,636 
ADVANCED TECHNOLOGY                                                     7,500      7,500 
COMMON IMAGERY GROUND/SURFACE SYS                                       8,912      8,912 
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES            30,511  59,711  37,861     52,861 
NATO JOINT START                                        6,405   6,405              3,000 
ADVISORY AND ASSISTANCE SERVICES                              -20,000            -20,000 
CONSEQUENCE MANAGEMENT                                          15,00                    
CIVILIAN PRESONNEL UNDEREXECUTION                                                 -6,400 
-----------------------------------------------------------------------------------------

[Page: H8702]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Budget    House    Senate Conference 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES                                                                                                                                                                                                           137,399  121,827   129,463    126,463 
Program Growth                                                                                                                                                                                                                            0  -15,572         0     -3,000 
Nutrition research                                                                                                                                                                                                                        0  [3,700]         0    [3,700] 
Scientific problems with military applications growth                                                                                                                                                                                     0        0    -7,936     -7,936 
University and Industry Research Centers (Note: The conferees direct that the reduction is to be allocated on a fair share basis)                                                                                                    48,459   45,138    45,138     45,138 
AVIATION TECHNOLOGY                                                                                                                                                                                                                  29,746   29,746    25,160     25,160 
Air mobility concept                                                                                                                                                                                                                      0        0    -1,923     -1,923 
Precision kill and nonlethal weapon integration and manned/unmanned system technology                                                                                                                                                     0        0    -2,663     -2,663 
MISSILE TECHNOLOGY                                                                                                                                                                                                                   25,180   24,880    30,680     30,380 
MLRS Smart Tactical Rocket                                                                                                                                                                                                                0     -300         0       -300 
Acoustic detection                                                                                                                                                                                                                        0        0     1,500      1,500 
Scramjet missile technology                                                                                                                                                                                                               0        0     3,000      2,000 
Counteractive protection                                                                                                                                                                                                                  0        0     5,000      2,000 
Compact kinetic energy missile                                                                                                                                                                                                            0        0    -4,000          0 
Solid state dye laser                                                                                                                                                                                                                     0        0   [3,000]    [2,000] 
MODELING AND SIMULATION TECHNOLOGY                                                                                                                                                                                                   27,981   22,531    24,153     21,653 
AAN applied research project                                                                                                                                                                                                              0   -5,450    -4,450     -5,450 
Standards development and testing                                                                                                                                                                                                         0        0    -1,600     -1,600 
Advanced concepts and technology                                                                                                                                                                                                          0        0    -1,778     -1,778 
Photonics research                                                                                                                                                                                                                        0        0     4,000      2,500 
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY                                                                                                                                                                                             40,107   30,107    44,362     39,562 
Next generation light truck                                                                                                                                                                                                               0   -5,000         0     -2,500 
Future infantry and combat system                                                                                                                                                                                                         0   -5,000    -5,245     -5,245 
Alternative vehicle propulsion system                                                                                                                                                                                                     0        0     2,500      1,700 
Robotic and manned ground systems enhancements                                                                                                                                                                                            0        0     4,500      3,000 
Commercial automotive technology                                                                                                                                                                                                          0        0     2,500      2,500 
BALLISTICS TECHNOLOGY                                                                                                                                                                                                                31,115   31,115    27,475     27,475 
Electric gun technology (Note: The conferees direct that the first priority for the available funding is ETC technology)                                                                                                                  0        0    -3,640     -3,640 
WEAPONS AND MUNITIONS TECHNOLOGY                                                                                                                                                                                                     29,489   25,689    31,489     29,189 
SADARM sensor improvements                                                                                                                                                                                                                0   -3,800         0     -1,300 
Future direct support weapon system (Note: The Army shall use the additional funding to produce a 5,000 pound version of the howitzer using the soft-recoil technology)                                                                   0        0     2,000      1,000 
ELECTRONICS AND ELECTRONIC DEVICES                                                                                                                                                                                                   22,329   29,829    25,479     25,479 
MEMS--deep silicon etching process technology (Note: MEMS funds transferred to DARPA)                                                                                                                                                     0   07,500         0          0 
Improved high rate alkaline cell                                                                                                                                                                                                          0        0       700        700 
Low cost reusable alkaline maganese-zinc                                                                                                                                                                                                  0        0       900        900 
Rechargeable coin cells                                                                                                                                                                                                                   0        0       650        650 
Coin cell zinc air                                                                                                                                                                                                                        0        0       900        900 
HUMAN FACTORS ENGINEERING TECHNOLOGY                                                                                                                                                                                                 13,369   21,169    18,169     16,619 
Medical Teams                                                                                                                                                                                                                             0    4,800     4,800      3,000 
Life Support Trauma and Transport                                                                                                                                                                                                         0    3,000         0          0 
Pharmacokinetics Research                                                                                                                                                                                                                 0        0         0        250 
ENVIRONMENTAL QUALITY TECHNOLOGY                                                                                                                                                                                                     13,842   42,342    51,742     64,842 
Plasma Energy Pyrolysis System                                                                                                                                                                                                            0    3,000     5,000      3,000 
Sustainable Green Manufacturing initiative                                                                                                                                                                                                0    5,000         0      3,000 
Computer based land management                                                                                                                                                                                                            0    3,000         0      2,500 
ARO--chemical and hazardous material disposal                                                                                                                                                                                             0    2,000         0      1,500 
Commercialization Tech, to Lower Defense Costs Initiatives                                                                                                                                                                                0    7,500         0      6,000 
Electronic Equipment Demanufacturing                                                                                                                                                                                                      0    8,000         0      6,000 
MP4 Initiative (NDCEE)                                                                                                                                                                                                                    0        0    20,000     15,000 
Lightweight spectrophotometer system                                                                                                                                                                                                      0    [500]         0      [500] 
Small Business Development Center                                                                                                                                                                                                         0        0     5,400      4,000 
Agriculturally based bioremediation                                                                                                                                                                                                       0        0     4,000       4,00 
Radford environmental development and management system                                                                                                                                                                                   0        0     3,500      2,000 
Western Environmental Technology Office                                                                                                                                                                                                   0        0   [5,000]      4,000 
MILITARY ENGINEERING TECHNOLOGY                                                                                                                                                                                                      37,488   42,488    42,188     52,688 
Construction Engineering Research Labs--fuel cells                                                                                                                                                                                        0    5,000         0      3,000 
Cold regions research and development                                                                                                                                                                                                     0        0     1,700      1,200 
University partnering for operational support                                                                                                                                                                                             0        0     3,000      3,000 
GEOSAR (Note: transferred from DARPA)                                                                                                                                                                                                     0        0         0      8,000 
MEDICAL TECHNOLOGY                                                                                                                                                                                                                   67,255  155,740    70,255    139,255 
Disaster Relief and Emergency Medical Services                                                                                                                                                                                            0    9,985         0     10,000 
LSTAT                                                                                                                                                                                                                                     0        0     3,000      2,000 
Advanced Cancer Detection                                                                                                                                                                                                                 0    3,500         0      3,500 
Diagnostic and surgical breast imaging                                                                                                                                                                                                    0    3,000         0      2,000 
Minimally invasive                                                                                                                                                                                                                        0   15,000         0     11,500 
Musculoskeletal injuries                                                                                                                                                                                                                  0    3,000         0      2,000 
Neurofibromatosis                                                                                                                                                                                                                         0   15,000         0     11,500 
Neurotoxin                                                                                                                                                                                                                                0   25,000         0     20,000 
Osteoporosis                                                                                                                                                                                                                              0    5,000         0      2,500 
Pain                                                                                                                                                                                                                                      0    1,000         0    [1,000] 
Portable cardiopulmonary bypass pum and oxygenator                                                                                                                                                                                        0    3,000         0      2,000 
Technology Roadmap                                                                                                                                                                                                                        0    2,000         0      2,000 
Teleradiology                                                                                                                                                                                                                             0    3,000         0      3,000 
MEDICAL ADVANCED TECHNOLOGY                                                                                                                                                                                                          11,012  179,012    30,012    230,862 
Disaster Relief and Emergency Medical Services                                                                                                                                                                                            0        0    10,000          0 
Assistive Technology                                                                                                                                                                                                                      0    8,000         0      6,000 
Diabetes                                                                                                                                                                                                                                  0    9,000         0      4,500 
Digital x-ray                                                                                                                                                                                                                             0    5,000         0      4,000 
National Medical Testbed                                                                                                                                                                                                                  0   11,000         0      8,000 
Nutrition Research                                                                                                                                                                                                                        0        0     2,000          0 
Breast Cancer Peer Review                                                                                                                                                                                                                 0  135,000         0    135,000 
Intravenous membrane oxygenator                                                                                                                                                                                                           0        0     1,000        850 
Prostate [Note: The conferees provide $50,000,000 for peer reviewed prostate research.]                                                                                                                                                   0        0         0     50,000 
Prostate--Walter Reed [Note: the conferees provide $7,500,000 to continue the intramural research effort conducted by the Walter Reed Center for Prostate Disease Research in the area of prostate cancer detection and treatment.]       0        0     2,000      7,500 
Volume Angiocat                                                                                                                                                                                                                           0        0     4,000      4,000 
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY                                                                                                                                                                                            24,555   27,055    29,055     25,055 
MLRS Smart Tactical Rocket                                                                                                                                                                                                                0   -5,000         0     -5,000 
ER fluid recoil system                                                                                                                                                                                                                    0    5,000         0      2,500 
Precision guided mortar munition                                                                                                                                                                                                          0        0     4,500      3,000 
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHN                                                                                                                                                                                         54,435   54,435    49,535     61,735 
Aluminum metal matrix                                                                                                                                                                                                                     0        0     6,500      4,000 
Heavy truck propulsion systems                                                                                                                                                                                                            0        0     3,600      2,500 
Geisel engine testing                                                                                                                                                                                                                     0        0     2,000        800 
Program reduction                                                                                                                                                                                                                         0        0   -17,000          0 
MISSILE AND ROCKET ADVANCED TECHNOLOGY                                                                                                                                                                                               86,096   47,896    92,096     71,896 
EFOG                                                                                                                                                                                                                                      0  -35,700         0    -15,700 
MLRS Smart Tactical Rocket                                                                                                                                                                                                                0   -2,500         0     -2,500 
Future missile technology integration                                                                                                                                                                                                     0        0     6,000      4,000 
JOINT SERVICE SMALL ARMS PROGRAM                                                                                                                                                                                                      5,173   10,673     8,673      9,673 
Objective crew served weapon                                                                                                                                                                                                              0    3,500     3,500      3,500 
Objective individual combat weapon                                                                                                                                                                                                        0    2,000         0      1,000 
NIGHT VISION ADVANCED TECHNOLOGY                                                                                                                                                                                                     23,960   23,960    26,460     27,460 
Millimeter wave technology (Note: funds are to be allocated for low cost millimeter wave technology ($500,000) and passive millimeter wave camera technology ($3,000,000))                                                                0        0     2,500      3,500 
JOINT TACTICAL RADIO                                                                                                                                                                                                                 15,600   15,600    15,600     10,100 
General Provision                                                                                                                                                                                                                         0        0 [-10,981]     -5,500 
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION                                                                                                                                                                                             12,240   21,240    38,240     37,740 
SSDC Battlelab                                                                                                                                                                                                                            0    9,000    11,000      8,000 
Tactical High Energy Laser                                                                                                                                                                                                                0        0    15,000     12,500 
Range Upgrades to support upper state flight experiments (Note: Senate provided funds under 0603401F)                                                                                                                                     0        0         0      5,000 
ARMAMENT ENHANCEMENT INITIATIVE                                                                                                                                                                                                      26,526   46,526    28,526     36,026 
Tank Extended Range Munition--Kinetic Energy                                                                                                                                                                                              0   20,000    10,000     17,500 
M829E3 development                                                                                                                                                                                                                        0        0    -8,000     -8,000 
ARMY DATA DISTRIBUTION SYSTEM                                                                                                                                                                                                        17,281    6,281     6,300     15,281 
Near Term/Digital Tactical Radio                                                                                                                                                                                                          0  -11,000         0     -2,000 
General Provision                                                                                                                                                                                                                         0        0  [10,981]          0 
ARTILLERY SYSTEMS--DEM/VAL                                                                                                                                                                                                          313,166  313,166   313,166    317,166 
Alternative transmission                                                                                                                                                                                                                  0        0         0      4,000 
EW DEVELOPMENT                                                                                                                                                                                                                       85,989   90,989    90,589     86,989 
ATIRCM/CMWS integration                                                                                                                                                                                                                   0    5,000     8,600      5,000 
Ground base common sensor                                                                                                                                                                                                                 0        0    -4,000     -4,000 
FAMILIY OF HEAVY TACTICAL VEHICLES                                                                                                                                                                                                        0    3,000     1,250      8,300 
Trailer development                                                                                                                                                                                                                       0    3,000         0      2,500 
HETS highway use trailer                                                                                                                                                                                                                  0        0     1,250      1,000 
Passenger Safety System for heavy tactical vehicles                                                                                                                                                                                       0        0   [1,300]      1,000 
Forward repair system heavy (Note: Transferred from 0203761A)                                                                                                                                                                             0        0         0      3,800 
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT                                                                                                                                                                                              63,069   76,069    66,569     71,069 
Grizzly--prototype (Note: Funds are to procure one Grizzly simulator)                                                                                                                                                                     0   13,000         0      6,000 
DSETS                                                                                                                                                                                                                                     0        0     3,500      2,000 
COMBAT FEEDING, CLOTHING, AND EQUIPMENT                                                                                                                                                                                              62,218   82,218    53,568     68,218 
Transfer from OP, A                                                                                                                                                                                                                       0   20,000         0     10,000 
Contract modification and engineering change proposals                                                                                                                                                                                    0        0    -4,000     -4,000 
Landwarrior product improvement                                                                                                                                                                                                           0        0    -4,650          0 
TERRAIN INFORMATION--ENG DEV                                                                                                                                                                                                          2,999    2,999     2,999      6,229 
Digitial topographic support system (Note: Transferred from 0203761A)                                                                                                                                                                     0        0         0      3,230 
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE                                                                                                                                                                                         6,476    6,476     6,476     11,606 
Air and missile defense planning (Note: Transferred from 0203761A)                                                                                                                                                                        0        0         0      5,130 
AUTOMATIC TEST EQUIPMENT DEVELOPMENT                                                                                                                                                                                                  7,030   12,030     7,030     10,030 
IFTE (Note: Funds are only for IFTE off-system, pre-planned product improvements and related test program set development)                                                                                                                0    5,000         0      3,000 
WEAPONS AND MUNITIONS--ENG DEV                                                                                                                                                                                                       37,725   40,725    35,725     35,725 
Trajectory correctable munition (Note: Transferred to USMC)                                                                                                                                                                               0    3,000         0          0 
Motar fire control system contract savings                                                                                                                                                                                                0        0    -2,000     -2,000 
LANDMINE WARFARE/BARRIER--ENG DEV                                                                                                                                                                                                    46,905   41,405    46,905     52,905 
Remote anti-armor mine system                                                                                                                                                                                                             0   -5,500         0          0 
NSD-A program delays                                                                                                                                                                                                                      0        0   -12,000          0 
Landmine alternatives                                                                                                                                                                                                                     0        0    12,500          0 
NSD-A and mixed alternatives studies                                                                                                                                                                                                      0        0         0      6,000 
MAJOR T&E INVESTMENT                                                                                                                                                                                                                 40,284   40,284    32,142     37,284 
Program reduction                                                                                                                                                                                                                         0        0    -1,000          0 
USAKA (Kwajalein Atoll)                                                                                                                                                                                                                   0        0    -7,142     -3,000 
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS                                                                                                                                                                                      33,439   43,439    40,439     43,939 
Testing instrumentation and targets (WSMR)                                                                                                                                                                                                0   10,000     7,000     10,000 
Phase III SBIR Characterization and Quantification of missile debris hazard to aircraft--WSMR                                                                                                                                             0        0         0        500 
DOD HIGH ENERGY LASER TEST FACILITY                                                                                                                                                                                                  15,022   28,022    23,022     24,022 
Solid state laser                                                                                                                                                                                                                         0    8,000     8,000      8,000 
Hybrid HMMWV                                                                                                                                                                                                                              0    5,000         0      1,000 
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY                                                                                                                                                                                   8,497   11,497    12,497     10,497 
Environmentally sound technologies for demilitarization of ammunition                                                                                                                                                                     0    3,000         0          0 
Lexington Blue Grass Army Depot Blast Chamber                                                                                                                                                                                             0        0     2,000      1,000 
Anniston Army Depot Blast Chamber                                                                                                                                                                                                         0        0     2,000      1,000 
ENVIRONMENTAL COMPLIANCE                                                                                                                                                                                                             44,116   47,116    51,116     49,116 
Climate change fuel cell                                                                                                                                                                                                                  0        0     5,000      3,000 
Low emissions gas boiler demo                                                                                                                                                                                                             0    3,000     2,000      2,000 
MAINTENANCE AND REPAIR (RPM)--RDT&E                                                                                                                                                                                                  49,233   49,233    80,233     80,233 
White Sands Missile Range                                                                                                                                                                                                                 0        0    20,800     20,800 
Aberdeen Proving Ground (PG)/Dugway PG/Yuma PG                                                                                                                                                                                            0        0     9,200      9,200 
Cold Regions Research Lab                                                                                                                                                                                                                 0        0     1,000      1,000 
MANAGEMENT HEADQUARTERS (R&D)                                                                                                                                                                                                         4,683    4,683    22,683     22,683 
Akamai (Note: Off the additional funds $4,000,000 is only for Hyperspectral diagonistic imaging and $2,000,000 is only for remote access to medical specialists program)                                                                  0        0    18,000     18,000 
MLRS PRODUCT IMPROVEMENT PROGRAM                                                                                                                                                                                                     20,244   32,744    20,244     25,244 
Commercial component usage and joint service communications                                                                                                                                                                               0    8,300         0          0 
HIMARS                                                                                                                                                                                                                                    0    6,000         0      5,000 
Improved launcher mechanical system                                                                                                                                                                                                       0    3,200         0          0 
Guided MLRS MOU                                                                                                                                                                                                                           0   -5,000         0          0 
ADV FIELD ARTILLERY TACTICAL DATA SYSTEM                                                                                                                                                                                             35,111   35,111    40,439     34,881 
Airspace deconfliction and technical fire support (AFATDS) enhancement                                                                                                                                                                    0        0    12,500      7,000 
AFATDS 2000 software development                                                                                                                                                                                                          0        0    -7,230     -7,230 
COMBAT VEHICLE IMPROVEMENT PROGRAMS                                                                                                                                                                                                  94,756  101,856   108,256    104,756 
M-1 Flat Panel Dispays (FED)                                                                                                                                                                                                              0    7,100     7,000      7,000 
DSESTS                                                                                                                                                                                                                                    0        0     6,500      3,000 
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM                                                                                                                                                                                         2,948   11,948     6,948      6,948 
Fadec                                                                                                                                                                                                                                     0    5,000     2,000      2,000 
Variable Vane Pump (Note: Funding is only for helicopter secondary power unit application)                                                                                                                                                0    4,000     2,000      2,000 
DIGITIZATION                                                                                                                                                                                                                         45,007   45,007    48,007     47,007 
Digitization research at Ft. Hood                                                                                                                                                                                                         0        0     3,000      2,000 
Digital intelligence situation mapboard                                                                                                                                                                                                   0        0   [2,000]    [2,000] 
FORCE TWENTY-ONE (XXI), WARFIGHTING RAPID ACQUISITION                                                                                                                                                                                99,528   64,528    69,528     27,168 
Program reduction                                                                                                                                                                                                                         0  -35,000   -30,000    -35,000 
Air and missile defense planning (Note: Transferred to 0604741A)                                                                                                                                                                          0        0         0     -5,130 
Analysis control team (Note: Transferred to OPA P-67)                                                                                                                                                                                     0        0         0     -6,750 
Grenadier Brat (Note: Transferred to OPA P-75)                                                                                                                                                                                            0        0         0     -4,400 
High speed multiplexer (Note: Transferred to OPA P-44)                                                                                                                                                                                    0        0         0     -2,750 
Digital topographic support system (Note: Transferred to 0604716A)                                                                                                                                                                        0        0         0     -3,230 
Tactical simulation (Note: Transferred to new program element)                                                                                                                                                                            0        0         0     -1,500 
Forward repair system (Note: Transferred to 0604622A)                                                                                                                                                                                     0        0         0     -3,800 
CCTT (Note: The conferees deny funding for this initiative)                                                                                                                                                                               0        0         0     -7,300 
Global combat support system (Note: The conferees deny funding for this initiative)                                                                                                                                                       0        0         0     -2,500 
TACTICAL SIMULATION INTERFACE UNIT (Note: Transferred from 0203761A)                                                                                                                                                                      0        0         0      1,500 
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES                                                                                                                                                                                          30,511   59,711    37,861     52,861 
Munitions manufacturing technology                                                                                                                                                                                                        0   13,200     5,000     10,000 
Instrumented factory for gears                                                                                                                                                                                                            0    4,000     4,000      4,000 
Totally integrated munitions enterprise                                                                                                                                                                                                   0    9,000         0      7,000 
Composite armor vehicle technology                                                                                                                                                                                                        0    1,000         0        500 
Center for optics manufacturing                                                                                                                                                                                                           0    2,000         0      1,000 
Undefined projects                                                                                                                                                                                                                        0        0    -1,650     -1,650 
Electronic circuit board manufacturing development center                                                                                                                                                                                 0        0   [2,000]      1,500 
ALTERNATIVE VEHICLE PROPULSION TECHNOLOGIES                                                                                                                                                                                               0 [10,000]         0          0 
CIVILIAN PERSONNEL UNDER EXECUTION                                                                                                                                                                                                        0        0         0     -6,400 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Page: H8704]

AEROSTAT JOINT PROJECT OFFICE

The conferees have provided $15,000,000 for the Aerostat program to participate in joint demonstrations of surveillance technologies and to continue development efforts. Within the available funds, the conferees urge the Defense Department to investigate issues associated with building and demonstrating a deployable mobile large aerostate system platform.

LANDMINE WARFARE/BARRIER--ENG DEV

The conferees understand that the Department has launched a search for alternatives to anti-personnel landmines with the goal of fielding such alternatives as soon as practicable. The conferees support this effort relating to the identification, adaption, modification, research, and development of existing and new technologies and concepts that are militarily equivalent cost effective and safe. These efforts should result in: (1) a combat capability that is equivalent to the combat capability provided by non-self destructing anti-personnel landmines; (2) a combat capability that is equivalent to the combat capability provided by anti-personnel (AP) submunitions used in mixed anti-tank mine systems; or (3) a combat capability to replace the entire mixed munitions.

The conference recommendation provides a total of $32,200,000 as follows: $17,200,000 ($12,500,000 in RDT&E, Army and $4,700,000 in RDT&E, Defense-Wide) for the Army's current Non-Self Destruct Alternatives (NSD-A); $2,000,000 for studies of NSD-4 designs, beyond man-in-the-loop technology; and $4,000,000 to research, identify and adapt technology and concepts that could replace capabilities now provided by mixed system or the AP submunitions in mixed systems. The Secretary of Defense shall submit a report to the congressional defense committees not later than April 1, 2000 and April 1, 2001, describing progress made in identifying and fielding such alternative, and future plans in this effort.

The conferees direct that the Secretary of Defense obtain the recommendations of two appropriate scientific organizations regarding concepts that would provide comparable combat capabilities to current anti-personnel landmines and anti-personnel landmines used in mixed systems.

ARMY MISSILE DEFENSE SYSTEMS INTEGRATION

The conferees are aware of the High Accuracy Guidance (HAG) system and its potential to improve the capability of the seeker found in certain missile defense interceptors. Therefore, the conferees strongly urge the Department to conduct additional tests of the HAG system.

ANTI-ARMOR WEAPONS MASTER PLAN

The conferees agree with the House direction with regard to submission of an Anti-Tank Weapon Master Plan and further direct that the scope of the report be expanded to include all DoD weapon systems with an anti-armor capability.

ULTRA-LIGHT STEEL BASED HIGH MOBILITY MULTI-PURPOSE WHEELED VEHICLE (HMMWV)

The conferees direct the Secretary of the Army to submit a report to the congressional defense committees with the fiscal year 2000 budget request assessing the potential benefits of integrating advanced commercially based tactical truck platforms incorporating leading edge ultra-steel concepts into its HMMWV fleet replacement plan.

[Page: H8705]

MEDICAL RESEARCH PROGRAM MANAGEMENT

The conferees commend the Army for organizing outstanding medical research initiatives in various fields of study that have received high marks from independent review panels and from various advocacy groups. The conferees not especially the 1997 review of the Army's breast cancer research program by the Institute of Medicine of the National Research Council. This review concluded that the Army's program `fills a unique niche among public and private funding sources for cancer research . . . and is a promising vehicle for forging new ideas and scientific breakthroughs in the nation's fight against breast cancer.' The conferees have received similar reports about the other medical research programs managed by the Army. The conferees expect the Army to continue its emphasis on coordinating and integrating its medical research programs with those of the National Institutes of Health to avoid duplication and to accelerate promising avenues of treatment. In setting annual research priorities, the Army should consider ways to maximize involvement from responsible advocacy and survivor groups, especially in the Prostate research program. The conferees also urge the Army to consider ways to lengthen the terms of peer review group members for the Neurofibromatosis program and other smaller programs to promote consistency of guidance and direction.

METALS REMEDIATION

The conferees urge the Department to provide up to $2,750,000 for a metals remediation demonstration project at Wheeler Army Air Field. This effort would demonstrate the technology in the fragile Pacific ecosystems and potentially reduce infrastructure and environmental cleanup costs.

DIABETES RESEARCH

The conference agreement includes $4,500,000 to continue the successful diabetes research program currently underway. The conferees urge the Department to work to include the activities identified in House Report 105-591.

Research, Development, Test and Evaluation, Navy

The conference agreement on items addressed by either the House or the Senate is as follows


[In thousands of dollars]
------------------------------------------------------------------------------------------
                                                        Budget   House  Senate Conference 
------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL NAVY                                                     
IN-HOUSE LABORATORY INDEPENDENT RESEARCH                14,734  14,248  14,734     14,734 
DEFENSE RESEARCH SCIENCES                              347,945 324,495 347,945    347,945 
AIR AND SURFACE LAUNCHED WEAPONS TECHNOLOGY             37,140  41,140  40,140     41,140 
SHIP, SUBMARINE & LOGISTICS TECHNOLOGY                  43,177  45,177  46,177     56,677 
AIRCRAFT TECHNOLOGY                                     23,229  27,029  30,729     29,229 
MARINE CORPS LANDING FORCE TECHNOLOGY                   12,132  13,632  12,132     13,132 
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES             4,699   6,699   4,699      6,699 
COMMUNICATIONS, COMMAND AND CONTROL, INTELLIGENCE       65,033  60,033  68,033     64,033 
HUMAN SYSTEMS TECHNOLOGY                                29,722  31,722  29,722     31,722 
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY          77,617  80,617  93,117     88,117 
ELECTRONIC WARFARE TECHNOLOGY                           23,849  22,849  23,849     22,849 
UNDERSEA WARFARE SURVEILLANCE TECHNOLOGY                50,619  51,119  50,619     51,119 
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY                56,722  70,222  57,472     69,222 
UNDERSEA WARFARE WEAPONRY TECHNOLOGY                    34,856  36,856  44,356     40,856 
DUAL USE APPLICATIONS PROGRAM                           20,000  20,000  10,000     10,000 
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY             48,143  46,143  43,143     48,143 
PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY             58,306  62,306  54,406     54,406 
SURFACE SHIP & SUBMARINE HM&E ADVANCED TECHNOLOGY       39,264  47,264  46,264     51,264 
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)    41,931  51,931  52,931     56,931 
MEDICAL DEVELOPMENT                                     18,728  69,028  20,728     68,728 
MANPOWER, PERSONNEL AND TRAINING ADV TECH DEV           21,042  26,042  23,042     26,542 
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOG  20,919  20,919  26,919     22,919 
UNDERSEA WARFARE ADVANCED TECHNOLOGY                    56,827  56,827  60,027     58,827 
MINE AND EXPEDITIONARY WARFARE ADVANCED TECHNOLOGY      41,710  41,710  42,710     42,710 
ADVANCED TECHNOLOGY TRANSITION                          74,392  59,392  84,392     73,892 
C3 ADVANCED TECHNOLOGY                                  22,294  28,294  29,794     40,294 
MARITIME TECHNOLOGY                                                     20,000     19,000 
AIR/OCEAN TACTICAL APPLICATIONS                         28,824  25,824  28,824     25,824 
AVIATION SURVIVABILITY                                   8,164  13,164   8,164     11,164 
ASW SYSTEMS DEVELOPMENT                                 20,184  35,184  20,184     26,184 
ADVANCED COMBAT SYSTEMS TECHNOLOGY                       8,653   6,653   8,653      6,653 
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT           68,402  75,802  68,402     73,402 
SURFACE SHIP TORPEDO DEFENSE                                     6,000              5,000 
CARRIER SYSTEMS DEVELOPMENT                            154,307  64,307  74,307     74,307 
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT                  27,725  28,725  24,725     25,725 
SHIP CONCEPT ADVANCED DESIGN                            14,900  19,900  14,900     14,900 
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES           42,668  42,668   8,000     44,596 
ADVANCED SURFACE MACHINERY SYSTEMS                      58,419  34,919  63,419     58,419 
CONVENTIONAL MUNITIONS                                  39,775  42,775  39,775     40,775 
MARINE CORPS ASSAULT VEHICLES                          104,822 108,822 104,822    104,822 
MARINE CORPS MINE/COUNTERMEASURES SYSTEMS--ADV DEV       1,958   2,958   1,958      1,958 
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM               37,133  39,633  50,633     53,133 
COOPERATIVE ENGAGEMENT                                 131,623 186,123 141,623    196,123 
ENVIRONMENTAL PROTECTION                                59,438  73,138  61,938     74,438 
NAVY LOGISTICS PRODUCTIVITY                                      3,000              3,000 
RETRACT MAPLE                                          117,186 115,686 117,186    115,686 
RETRACT ELM                                             11,665  22,165  11,665     19,665 
NATO RESEARCH AND DEVELOPMENT                           11,004           9,004      9,004 
LAND ATTACK TECHNOLOGY                                 110,104 103,104  92,404    105,604 
JOINT STRIKE FIGHTER (JSF)--DEM/VAL                    463,402 463,402 478,402    470,902 
NONLETHAL WEAPONS--DEM/VAL                              22,592  25,092  35,892     34,592 
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDSTDS)     9,827   9,827   9,827      3,000 
SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/ENGINE  17,955  17,955  20,955     19,955 
OTHER HELO DEVELOPMENT                                 231,120 231,620 253,120    262,120 
AV-8B AIRCRAFT--ENG DEV                                 13,787  50,387  13,787     40,587 
S-3 WEAPON SYSTEM IMPROVEMENT                           31,469   4,376  26,469      4,376 
H-1 UPGRADES                                            98,542 122,542 121,942    121,942 
ACOUSTIC SEARCH SENSORS                                 29,637  31,637  29,637     30,637 
AIR CREW SYSTEMS DEVELOPMENT                             9,454  12,454   9,454     11,954 
EW DEVELOPMENT                                         128,586 137,886 138,586    137,886 
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING            132,561 169,061 134,561    164,061 
STANDARD MISSILE IMPROVEMENTS                            1,320   1,320   6,320     11,320 
AIRBORNE MCM                                            24,967  30,967  26,967     28,967 
SSN-688 AND TRIDENT MODERNIZATION                       50,300  60,300  65,300     62,300 
AIR CONTROL                                              4,198   4,198   8,198      7,698 
NEW DESIGN SSN                                         218,816 240,816 231,816    235,816 
SSN-21 DEVELOPMENTS                                     27,456  22,456  27,456     22,456 
SUBMARINE TACTICAL WARFARE SYSTEM                       28,573  28,573  30,573     28,573 
SHIP CONTRACT DESIGN/ LIVE FIRE T&E                    133,645  60,845 137,645    130,717 
NAVY TACTICAL COMPUTER RESOURCES                         8,249  44,749   8,249     28,249 
NAVY ENERGY PROGRAM                                      5,544   5,544   3,544      3,544 
JOINT STANDOFF WEAPON SYSTEMS                           73,022   8,022  73,022     48,022 
LOW COST STAND-OFF WEAPON                                       10,000                    
SHIP SELF DEFENSE--EMD                                 148,165 148,165 156,665    156,665 
MEDICAL DEVELOPMENT                                      4,321   9,721   5,321      5,821 
DISTRIBUTED SURVEILLANCE SYSTEM                         42,017  55,417  42,017     50,017 
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE    28,500  14,600  18,500     16,500 
TARGET SYSTEMS DEVELOPMENT                              54,800  54,800  50,800     54,800 
MAJOR T&E INVESTMENT                                    17,281  23,281  17,281     21,281 
STUDIES AND ANALYSIS SUPPORT-NAVY                       10,132   6,132  10,132      6,132 
TECHNICAL INFORMATION SERVICES                           8,513   8,513   6,013      6,013 
DISTRIB/IMAGERY COMMON GRD SYSTEMS                               4,966                    
RDT&E SCIENCE AND TECHNOLOGY MANAGEMENT                 64,455  54,455  64,455     64,455 
RDT&E SHIP AND AIRCRAFT SUPPORT                         57,421  55,421  57,421     55,421 
TEST AND EVALUATION SUPPORT                            260,601 256,801 245,601    255,801 
SEW SURVEILLANCE/RECONAISSANCE SUPPORT                  13,185  15,185  17,185     16,185 
AIRBORNE RECONNAISSANCE SYS                                     16,448                    
MARINE CORPS PROGRAM WIDE SUPPORT                        7,132  14,632   7,132     13,632 
SSBN SECURITY TECHNOLOGY PROGRAM                        33,588  28,588  33,588     31,088 
F/A-18 SQUADRONS                                       357,214 288,805 336,314    308,805 
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)    66,727 165,300  66,727    166,300 
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT               28,390  32,490  35,390     36,890 
HARM IMPROVEMENT                                        18,921  33,921  18,921     30,921 
SURFACE ASW COMBAT SYSTEM INTEGRATION                    9,390   9,390   9,390     13,390 
AVIATION IMPROVEMENTS                                   64,956  61,956  68,956     63,956 
NAVY SCIENCE ASSISTANCE PROGRAM                                         12,000     12,000 
MARINE CORPS COMMUNICATIONS SYSTEMS                     50,594  56,390  50,594     55,390 
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS      14,699  14,699  17,699     18,699 
TACTICAL UAV                                                    55,200             51,192 
TACTICAL UAV (MC)                                                8,000              6,000 
VERTICAL TAKEOFF LANDING                                                10,000            
ADVANCED SENSORS/TECH                                                    8,448     16,448 
COMMON IMAGERY GROUND/FURFACE SYS                                        4,966      4,966 
MANNED RECONNAISSANCE SYSTEMS                              342  42,751     342     30,342 
INTEGRATED BROADCAST SERVICE                                    14,580             14,580 
DEPOT MAINTENANCE (NON-IF)                              69,967          49,967     69,967 
INDUSTRIAL PREPAREDNESS                                 59,060  69,060  59,060     69,060 
CLASSIFIED PROGRAMS                                    521,541 542,041 528,241    531,741 
ADVISORY AND ASSISTANCE SERVICES                               -50,000            -50,000 
CIVILIAN PERSONNEL UNDEREXECUTION                                                  -5,000 
------------------------------------------------------------------------------------------

[Page: H8706]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                               Budget    House  Senate Conference 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES                                                                                                                                                     347,945  324,495 347,945    347,945 
Budget growth                                                                                                                                                                       0  -23,450       0          0 
Marine mammal research                                                                                                                                                              0        0   (500)      (500) 
SHIPS, SUBMARINE & LOGISTICS TECHNOLOGY                                                                                                                                        43,177   45,177  46,177     56,677 
Ship machinery component level intelligent distributed control systems for AUVs                                                                                                     0    2,000       0      1,500 
Stainless steel double hull                                                                                                                                                         0        0   3,000      2,000 
High precision fabrication technology for large steel structural components requiring compound curvatures and precise dimensional control to be used in advanced ship designs       0        0       0      5,000 
Bioenvironmental hazards                                                                                                                                                            0        0       0      5,000 
AIRCRAFT TECHNOLOGY                                                                                                                                                            23,229   27,029  30,729     29,229 
Vectored thrust ducted propeller                                                                                                                                                    0    2,000   7,500      5,000 
Advanced 1000-plus line resolution charged coupled device II night vision camera                                                                                                    0    1,800       0      1,000 
COMMUNICATIONS, COMMAND AND CONTROL, INTELLIGENCE                                                                                                                              65,033   60,033  68,033     64,033 
Hybrid wireless fiber optic communications                                                                                                                                          0    1,000       0      1,000 
Infrared search and track                                                                                                                                                           0   -1,000       0          0 
General reduction                                                                                                                                                                   0   -5,000       0     -5,000 
USEA radar                                                                                                                                                                          0        0  11,000     11,000 
Strategic sustainment program                                                                                                                                                       0        0  -8,000     -8,000 
MATERIALS, ELECTRONICS AND COMPUTER TECHNOLOGY                                                                                                                                 77,617   80,617  93,117     88,117 
Advanced energy devices                                                                                                                                                             0        0   1,000          0 
Nanoscale materials and devices                                                                                                                                                     0        0   1,000          0 
Advanced materials intelligent processing center                                                                                                                                    0        0   5,000      3,000 
High temperature superconducting ship propulsion/auxillary systems                                                                                                                  0        0   2,000      2,000 
Superconducting waveform generator                                                                                                                                                  0    3,000       0      1,000 
Materials micronization technology                                                                                                                                                  0        0       0      4,000 
Carbon-carbon materials for reentry bodies                                                                                                                                          0    1,000   2,500      1,500 
Silicon carbide semiconductor substrates                                                                                                                                            0    3,500   2,500      3,500 
Ultra-high thermal conductivity fibers                                                                                                                                              0    2,500   1,500      2,500 
Terfenol-D                                                                                                                                                                          0  (1,800)       0          0 
General reduction                                                                                                                                                                   0   -7,000       0     -7,000 
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY                                                                                                                                       56,722   70,222  57,472     69,222 
Autonomous underwater vehicle and sensor development                                                                                                                                0   10,000       0     10,000 
Naval Surface Warfare Center South Florida test facility                                                                                                                            0    2,750       0      2,000 
PM-10 clean air study                                                                                                                                                               0      750     750        500 
UNDERSEA WARFARE WEAPONTRY TECHNOLOGY                                                                                                                                          34,856   36,856  44,356     40,856 
Micro electromechanical technology                                                                                                                                                  0    2,000       0      1,000 
Lithium carbon monoflouride batteries for mine applications                                                                                                                         0        0     500          0 
Computational engineering research                                                                                                                                                  0        0   3,000      3,000 
Half-length torpedo                                                                                                                                                                 0        0   3,000      2,000 
6.25 anti-torpedo torpedo                                                                                                                                                           0        0   3,000          0 
DUAL USE APPLICATIONS PROGRAM                                                                                                                                                  20,000   20,000 -10,000    -10,000 
National Technology Alliance Program                                                                                                                                                0 (15,000)       0          0 
Program decrease                                                                                                                                                                    0        0 -10,000    -10,000 
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY                                                                                                                                    48,143   46,143  43,143     48,143 
VECTOR                                                                                                                                                                              0   -7,000  -5,000     -2,000 
DP-2                                                                                                                                                                                0    5,000       0      2,000 
PRECISION STRIKE AND AIR DEFENSE TECHNOLOGY                                                                                                                                    58,306   62,306  54,406     54,406 
Mobile off-shore basing                                                                                                                                                             0    5,000   5,000      5,000 
General reduction                                                                                                                                                                   0   -1,000       0          0 
Fleet ATDs                                                                                                                                                                          0        0  -8,900     -8,900 
SURFACE SHIP & SUBMARINE HM&E ADVANCED TECHNOLOGY                                                                                                                              39,264   47,264  46,264     51,264 
Power electronic building blocks                                                                                                                                                    0    6,000   3,000      6,000 
Power node converters                                                                                                                                                               0    2,000       0      2,000 
Composite helicopter hangar                                                                                                                                                         0        0   5,000      5,000 
Advanced electronic systems                                                                                                                                                         0        0  -1,000     -1,000 
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)                                                                                                                           41,931   51,931  52,931     56,931 
BURRO project                                                                                                                                                                       0    5,000   5,000      5,000 
SMAW product improvement program                                                                                                                                                    0    5,000       0      5,000 
Warfighting lab Modeling and Simulation                                                                                                                                             0        0   5,000      4,000 
K-band training and test instrumentation system                                                                                                                                     0        0   1,000      1,000 
MEDICAL DEVELOPMENT                                                                                                                                                            18,728   69,028  20,728     68,728 
Bone marrow donor program                                                                                                                                                           0   34,000       0     34,000 
Naval blood research laboratory                                                                                                                                                     0    3,000       0      1,500 
Dental research                                                                                                                                                                     0    4,000       0      3,000 
National Biodynamics Laboratory                                                                                                                                                     0    1,800       0      1,800 
Medical readiness telemedicine initiative                                                                                                                                           0    4,500      0,      3,000 
Rural health                                                                                                                                                                        0    3,000       0      3,000 
Freeze dried blood                                                                                                                                                                  0        0   1,000        850 
Directly transfusable cryoprotected blood products                                                                                                                                  0        0   1,000      850   
Center for disaster management (Note: $1,000,000 is only for the Center for Disaster Management and Humanitarian Assistance)                                                        0        0       0      1,000 
Telemedicine (Note: $1,000,000 is only for a university/community hospital telemedicine/telehealth consortium)                                                                      0        0       0      1,000 
MANPOWER, PERSONNEL AND TRAINING ADVANCED TECH DEVELOPMENT                                                                                                                     21,042   26,042  23,042     26,542 
Advanced distributed learning                                                                                                                                                       0    5,000       0      4,500 
Integrated manufacturing studies                                                                                                                                                    0        0   2,000      1,000 
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY                                                                                                                        20,919   20,919  26,919     22,919 
Asbestos removal                                                                                                                                                                    0        0   4,000          0 
Visualization of technical information                                                                                                                                              0        0   2,000      2,000 
UNDERSEA WARFARE ADVANCED TECHNOLOGY                                                                                                                                           56,827   56,827  60,027     58,827 
Terfenol-D                                                                                                                                                                          0        0   3,200      2,000 
ADVANCED TECHNOLOGY TRANSITION                                                                                                                                                 74,392   59,392  84,392     73,892 
General reduction                                                                                                                                                                   0  -15,000       0    -10,000 
SLICE trailer                                                                                                                                                                       0        0  10,000      9,500 
C3 ADVANCED TECHNOLOGY                                                                                                                                                         22,294   28,294  29,794     40,294 
Dominant battlespace command                                                                                                                                                        0    6,000       0      3,000 
National Technology Alliance Program                                                                                                                                                0        0   7,500     15,000 
MARITIME TECHNOLOGY                                                                                                                                                                 0        0  20,000     19,000 
Transfer from DARPA                                                                                                                                                                 0        0  15,000     15,000 
Program increase                                                                                                                                                                    0        0   5,000      4,000 
AVIATION SURVIVABILITY                                                                                                                                                          8,164   13,164   8,164     11,164 
Escape system dynamic flow test facility                                                                                                                                            0    3,000       0      1,000 
Helicopter aircrew integrated life support system                                                                                                                                   0    2,000       0      2,000 
ASW SYSTEMS DEVELOPMENT                                                                                                                                                        20,184   35,184  20,184     26,184 
Beartrap acoustic processor for SH-60B LAMPS helicopter                                                                                                                             0    9,000       0      5,000 
Beartrap advanced ASW technologies                                                                                                                                                  0    3,000       0          0 
SSQ-62 sonobuoy at-sea performance evaluation                                                                                                                                       0    3,000       0      1,000 
ADVANCED COMBAT SYSTEMS TECHNOLOGY                                                                                                                                              8,653    6,653   8,653      6,653 
General reduction                                                                                                                                                                   0   -2,000       0     -2,000 
Visualization architecture and technology                                                                                                                                           0        0 (2,000)          0 
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT                                                                                                                                         27,725   28,725  24,725     25,725 
150 Kilowatt static frequency converters                                                                                                                                            0    1,000       0      1,000 
Shipboard auxiliary systems development                                                                                                                                             0        0  -3,000     -3,000 
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES                                                                                                                                  42,668   42,668   8,000     44,596 
SSGN study                                                                                                                                                                          0        0   1,000      1,000 
CV feasibility studies                                                                                                                                                              0        0 -35,688     -5,000 
CVX red team                                                                                                                                                                        0        0 (5,000)          0 
ADC(X)                                                                                                                                                                              0        0       0          0 
ADVANCED SURFACE MACHINERY SYSTEMS                                                                                                                                             58,419   34,919  63,419     58,419 
Intercooled recuperated gas turbine engine                                                                                                                                          0  -23,500   5,000          0 
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM                                                                                                                                      37,133   39.633  50,633     53,133 
Lightweight howitzer                                                                                                                                                                0    2,500       0      7,000 
Trajectory corrected munitions                                                                                                                                                      0        0   7,500      5,000 
SMAW follow-on                                                                                                                                                                      0        0   4,000      3,000 
Predator                                                                                                                                                                            0        0   2,000      1,000 
COOPERATIVE ENGAGEMENT                                                                                                                                                        131,623  186,123 141,623    196,123 
Aegis integration                                                                                                                                                                   0   -9,500       0     -9,500 
LAMPS data link                                                                                                                                                                     0   -3,000       0     -3,000 
Battlegroup developmental-and operational testing                                                                                                                                   0   20,000       0     20,000 
Design agent transitioin                                                                                                                                                            0   15,000       0     15,000 
Large network capability                                                                                                                                                            0   13,000       0     13,000 
Low cost common equipment set                                                                                                                                                       0   10,000       0     10,000 
Land based network                                                                                                                                                                  0    9,000       0      9,000 
CEC/SBIRS integration                                                                                                                                                               0        0  10,000     10,000 
ENVIRONMENTAL PROTECTION                                                                                                                                                       59,438   73,138  61,938     74,438 
Aviation depot maintenance technology                                                                                                                                               0    2,700       0      2,000 
Resource recovery technology center                                                                                                                                                 0    7,000       0      7,000 
Asbestos removal                                                                                                                                                                    0    4,000       0      4,000 
Molten salt oxidation technology                                                                                                                                                    0        0   2,500      2,000 
NATO RESEARCH AND DEVELOPMENT                                                                                                                                                  11,004        0   9,004      9,004 
VECTOR                                                                                                                                                                              0   -5,000       0          0 
General reduction                                                                                                                                                                   0   -6,004  -2,000     -2,000 
LAND ATTACK TECHNOLOGY                                                                                                                                                        110,104  103,104  92,404    105,604 
Vertical gun system                                                                                                                                                                 0   -7,000 -10,000    -10,000 
Surface fire support integration                                                                                                                                                    0        0  -7,700     -2,500 
Extended range guided munition                                                                                                                                                      0        0       0      8,000 
NONLETHAL WEAPONS--DEM/VAL                                                                                                                                                     22,592   25,092  35,892     34,592 
Joint non-lethal directorate human effects panel                                                                                                                                    0    2,500       0      2,000 
Accelerate non-lethal technologies                                                                                                                                                  0        0   6,300      5,000 
Non-lethal tactical denial system                                                                                                                                                   0        0   7,000      5,000 
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS)                                                                                                                            9,827    9,827   9,827      3,000 
Program reduction                                                                                                                                                                   0        0 (9,827)     -9,827 
Analysis of alternative                                                                                                                                                             0        0       0      3,000 
OTHER HELO DEVELOPMENT                                                                                                                                                        231,120  231,620 253,120    262,120 
LAMPS data link (transfer from CEC)                                                                                                                                                 0    3,000       0      3,000 
CH-60 mine countermeasures testing                                                                                                                                                  0   15,000       0     12,000 
Naval Air Warfare Center aircraft division ship ground station                                                                                                                      0    1,000       0      1,000 
Advanced low frequency sonar                                                                                                                                                        0  -18,500       0          0 
SH-60 LAMPS COTS acoustic/radar data processor                                                                                                                                      0        0  15,000     10,000 
Parametric airborne dipping sonar                                                                                                                                                   0        0   8,000      6,000 
Helicopter development CDR                                                                                                                                                          0        0  -1,000     -1,000 
AV-8B AIRCRAFT--ENG DEV                                                                                                                                                        13,787   50,387  13,787     40,587 
Open systems core avionics                                                                                                                                                          0   31,500       0     26,800 
Landing signal officer automated shipboard operating bulletin                                                                                                                       0    5,100       0          0 
S-3 WEAPON SYSTEM IMPROVEMENT                                                                                                                                                  31,469    4,376  26,469      4,376 
Common support aircraft                                                                                                                                                             0  -27,093  -5,000    -27,093 
Common support aircraft, floor amendment                                                                                                                                            0        0 (8,000)          0 
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING                                                                                                                                   132,561  169,061 134,561    164,061 
CEC integration (transfer from CEC)                                                                                                                                                 0    9,500       0      9,500 
Aegis baseline software development                                                                                                                                                 0   27,000       0     20,000 
High dynamic range, low-cost, towed array receiver/beamformer sonar                                                                                                                 0  (9,000)       0          0 
Labs and field activities monitoring efforts                                                                                                                                        0        0  -3,000     -3,000 
DDG-51 composite director room                                                                                                                                                      0        0   5,000      5,000 
STANDARD MISSILE IMPROVEMENTS                                                                                                                                                   1,320    1,320   6,320     11,320 
ADSAM demonstration                                                                                                                                                                 0        0   5,000      5,000 
Optical correlators                                                                                                                                                                 0        0       0      5,000 
AIRBORNE MCM                                                                                                                                                                   24,967   30,967  29,967     28,967 
CH-60 borne autonomous mine destruction                                                                                                                                             0    2,000   2,000      2,000 
SWIMS acoustic projector                                                                                                                                                            0    4,000       0      2,000 
NEW DESIGN SSN                                                                                                                                                                218,816  240,816 231,816    235,816 
Submarine technology insertion                                                                                                                                                      0   10,000       0      5,000 
Glass-reinforced plastic/rubber sandwich sonar domes                                                                                                                                0    7,000   7,000    7,000   
Non-propulsion electronics                                                                                                                                                          0    5,000   6,000      5,000 
SHIP CONTRACT DESIGN/LIVE FIRE T&E                                                                                                                                            133,645   60,845 137,645    130,717 
DD-21                                                                                                                                                                               0  -68,872       0          0 
ADC(X)                                                                                                                                                                              0   -5,928       0     -5,928 
Smart propulsor product model                                                                                                                                                       0    2,000   4,000      3,000 
NAVY TACTICAL COMPUTER RESOURCES                                                                                                                                                8,249   44,749   8,249     28,249 
UYQ-70 display improvements                                                                                                                                                         0   17,000       0     15,000 
Virtual prototyping of electronic circuits                                                                                                                                          0   14,500       0          0 
Computer aided dead reckoning tracer                                                                                                                                                0    5,000       0      5,000 
SHIPS SELF DEFENSE--EMD                                                                                                                                                       148,165  148,165 156,665    156,665 
Infrared search and track                                                                                                                                                           0        0   6,500      6,500 
NULKA                                                                                                                                                                               0        0   2,000      2,000 
MEDICAL DEVELOPMENT                                                                                                                                                             4,321    9,721   5,321      5,821 
Filtration materials with high-flow biocide characteristics                                                                                                                         0    2,000       0    (2,000) 
Voice instructional device modifications                                                                                                                                            0    3,400   1,000      1,500 
DISTRIBUTED SURVEILLANCE SYSTEM                                                                                                                                                42,017   55,417  42,017     50,017 
All-optical deployable system                                                                                                                                                       0    6,700       0      4,000 
ADS automation and data fusion                                                                                                                                                      0    6,700       0      4,000 
TEST AND EVALUATION SUPPORT                                                                                                                                                   260,601  256,801 245,601    255,801 
General reduction                                                                                                                                                                   0   -5,800 -15,000     -5,800 
Man-overboard indicator                                                                                                                                                             0    2,000       0      1,000 
SEW SURVEILLANCE/RECONNAISSANCE SUPPORT                                                                                                                                        13,185   15,185  17,185     16,185 
COTS visualization software and database servers                                                                                                                                    0    2,000       0      1,000 
Global C4ISR visualization                                                                                                                                                          0        0   4,000      2,000 
MARINE CORPS PROGRAM WIDE SUPPORT                                                                                                                                               7,132   14,632   7,132     13,632 
Interim biological agent detection system, phase III                                                                                                                                0    4,000       0      3,500 
Probable cause detection system                                                                                                                                                     0    3,500       0      3,000 
F/A-18 SQUADRONS                                                                                                                                                              357,214  288,805 336,314    308,805 
Superhornet advanced reconnaissance pod                                                                                                                                             0  -43,409   2,500    -43,409 
Excessive budget growth                                                                                                                                                             0  -25,000       0     -5,000 
Tactical reconnaissance development                                                                                                                                                 0        0 -23,400          0 
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)                                                                                                                           66,727  165,300  66,727    166,300 
Tactical tomahawk                                                                                                                                                                   0   98,573       0     98,573 
Alternate turbine engine                                                                                                                                                            0        0 (1,000)      1,000 
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT                                                                                                                                      28,390   32,490  35,390     36,890 
Rangeless training                                                                                                                                                                  0    5,000       0      2,500 
Conversion of BFTT trainer to Windows operating enviroinment                                                                                                                        0    6,000   7,000      6,000 
Joint tactical combat training system                                                                                                                                               0   -6,900 (9,827)          0 
SURFACE ASW COMBAT SYSTEM INTEGRATION                                                                                                                                           9,390    9,390   9,390     13,390 
High dynamic range, low-cost, towed array receiver/beamformer sonar system                                                                                                          0        0       0      4,000 
AVIATION IMPROVEMENTS                                                                                                                                                          64,956   61,956  68,956     63,956 
Engine component improvement                                                                                                                                                        0   -3,000       0     -3,000 
Eddy current sensors                                                                                                                                                                0        0   4,000      2,000 
MARINE CORPS COMMUNICATIONS SYSTEMS                                                                                                                                            50,594   56,390  50,594     55,390 
Joint task force enhanced communications                                                                                                                                            0    5,000       0      4,000 
Tactical control and analysis center                                                                                                                                                0      796       0        796 
MARINE CORPS GROUND COMBAT/SUPPORTING ARMS SYSTEMS                                                                                                                             14,699   14,699  17,699     18,699 
Automatic target tracker                                                                                                                                                            0        0   3,000      2,000 
Shortstop                                                                                                                                                                           0        0 (5,000)      2,000 
TACTICAL UAV                                                                                                                                                                        0   55,200       0     51,192 
Multiple participant competitive demonstration                                                                                                                                      0   14,008       0     10,000 
Multi-function self-aligned gate technology                                                                                                                                         0    4,000       0      4,000 
Common systems development (transfer from R&D Defense-wide)                                                                                                                         0    5,048       0      5,048 
Tactical control system                                                                                                                                                             0   32,144       0     32,144 
ADVANCED SENSORS/TECH                                                                                                                                                               0        0   8,448     16,448 
Program transfer                                                                                                                                                                    0        0   8,448      8,448 
EO framing (on-chip FMC)                                                                                                                                                            0        0       0      8,000 
DEPOT MAINTENANCE (NON-IF)                                                                                                                                                     69,967        0  49,967     69,067 
Transfer to APN                                                                                                                                                                     0  -69,967       0          0 
General reduction                                                                                                                                                                   0        0 -20,000          0 
CIVILIAN PERSONNEL UNDERSTRENGTH                                                                                                                                                    0        0       0     -5,000 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Page: H8708]

COMMON INTEGRATED ELECTRIC DRIVE SYSTEMS

The conferees agree to Senate direction requiring a report on a common integrated electric drive system for surface combatant ships, but direct that development of superconducting DC homopolar motor technology also be addressed in the report.

VECTORED THRUST DUCTED PROPELLER (VDTP) HELICOPTER

The conferees direct the Navy to submit to the Congress by December 1, 1998, a specific plan for accomplishing a flight demonstration of the VDTP compound helicopter technology. The conferees reiterate last year's language which directed that the Navy's H-60 program office shall have the responsibility for the management and execution of this program.

SEMI-AUTONOMOUS UNDERWATER VEHICLE FOR INTERVENTION MISSIONS

The conferees have just been advised of a potential funding shortfall for the Semi-Autonomous Underwater Vehicle for Intervention Missions (SAUVIM) program in the upcoming year. The conferees encourage the Navy to ensure that sufficient funding is provided for this program to carry it through until the end of 1999.

PROJECT M

The Congress appropriated $5,000,000 in fiscal year 1998 for Project M, including funds for a prototype system for surface ships. The Navy has yet to obligate funds for a surface ship application. Of the amount requested in the fiscal year 1999 budget and appropriated in this Act for Project M, $1,000,000 is only to begin development of a prototype system for surface ships. The conferees direct that the Navy budget funds in the future to ensure an at-sea demonstration of a full scale active control of machinery raft within two years.

ADC(X)

The conferees direct that fiscal year 1999 funds may not be obligated for an ADC(X) program unless the program plan includes ship construction in at least two shipyards.

ICR ENGINE

The conferees agree to provide the amount requested in the budget to continue development of the intercooled recuperated gas turbine engine. The conferees direct the Secretary of Defense to limit obligation of additional funds, while allowing the program to proceed in an orderly basis, until an international memorandum of understanding has been promulgated ending United States government participation in the ICR development program after design review five at a cost of no more than $60,000,000 in fiscal year 1999 and subsequent fiscal years.

TACTICAL TOMAHAWK

The conferees are aware that the contract solicitation for the tactical Tomahawk weapons control system does not specify the type of display to be used. The recent contract award for the standard Navy display system for air, surface, and subsurface applications specified that development of new configurations to meet legacy equipment replacement requirements would be accomplished under that contract. Accordingly, the Navy should avoid duplication in development costs and take advantage of the economies of scale and infrastructure support by developing the tactical Tomahawk display under this contract.

SEAWOLF SHOCK TEST

The conferees agree to House language concerning system-level, live-fire shock testing of Seawolf submarines and note that the Commander in Chief of the Atlantic Command has recently indicated that he has no requirement for such a test. The conferees fully endorse the existing live fire legislation and testing for weapon systems in a normal acquisition cycle. The conferees fully expect that the Defense Department will conduct such a test on the New Attack Submarine early in its production cycle, where the lessons-learned from the test can be incorporated into future production of that weapon system. The unique circumstances that caused the Congress not to support the Seawolf shock test should not be viewed either that Congress no longer requires live fire testing nor as a precedent for other weapon systems to be exempted from the requirements of law.

[Page: H8709]

RANGELESS TRAINING

The House proposed to terminate the Joint Tactical Combat Training System (JTCTS) and eliminate a total of $17,300,000 in four procurement or RDT&E line items. The House also proposed an alternate system, the integrated Large Area Tracking Range (LATR)/Kadena Interim Training System (KITS), and provided a total of $15,000,000 in three procurement or RDT&E line items. The Senate provided the amount requested by the Defense Department for JTCTS, with an increase of $9,827,000 in the Navy RDT&E account to provide an initial JTCTS system to support Cope Thunder exercises. The budget requested funds to initiate JTCTS production in fiscal year 1999.

Since JTCTS has not entered into production, and development and testing has not been completed, there is an opportunity to ensure that the Defense Department has identified the best technical solution prior to expenditure of significant amounts of funds in future years for rangeless training equipment. The conferees also want assurance that combat training systems for tactical aircraft will be compatible with surface ship and submarine training range systems, to the extent practicable, for joint service exercise or Navy battlegroup training. The conferees direct that the Defense Department conduct a technical evaluation, using actual equipment, to compare the capabilities, performance, and costs of an integrated LATR/KITS system to JTCTS. The conferees therefore agree to provide the full amount requested in RDT&E for JTCTS, plus an additional $2,500,000 in the Navy RDT&E account only for LATR/KITS integration. The conferees agree to a reduction of a total of $9,000,000 in Air Force procurement accounts requested for JTCTS, but an increase of a total of $20,000,000 in Navy and Air Force Other Procurement accounts which is only for purchase of equipment needed to conduct the technical evaluation, and purchase of objective systems once reporting requirements in the next paragraph have been met. Of this amount, $8,000,000 is only to begin installation of a rangeless training system to support Cope Thunder exercises. Further, the conferees direct that the JTCTS RDT&E funds are provided to proceed with equipping CAG 5 with an initial JTCTS training capability in fiscal year 1999.

The goal of the technical evaluation is to ensure that the Defense Department has identified the best technical solution to meet its rangeless training needs which minimizes technical risk at lowest life cycle cost based on performance of real equipment in a realistic environment. The conferees direct that no funds may be obligated for rangeless training production, other than those needed to conduct the technical evaluation, until the following criteria have been met:

The Director of Operational Test and Evaluation in the Office of the Secretary of Defense has certified to the congressional defense committees that the Defense Department has established a technical evaluation between JTCTS and integrated LATR/KITS which is reasonable, realistic, and objective in order to determine the relative performance of the systems;

The technical evaluation has been conducted and the results reported to the congressional defense committees; and

The Undersecretary of Defense for Acquisition and Technology has certified to the congressional defense committees that the best technical solution to meet DOD rangeless training requirements at the best value has been identified and validated by the results of the technical evaluation. His certification should include a determination whether the most cost effective method to satisfy future Navy and Air Force training needs is to continue development and deployment of JTCTS, begin an evolutionary LATR/KITS system development and deployment, or expand the JTCTS program to include integrated LATR/KITS features.

Research, Development, Test and Evaluation, Air Force

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------------------------
                                                          Budget     House    Senate Conference 
------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST AND EVAL AF                                                           
DEFENSE RESEARCH SCIENCES                                209,395   202,751   209,395    210,395 
MATERIALS                                                 62,578    72,578    68,678     75,278 
AEROSPACE PROPULSION                                      69,061    74,061    69,561     69,561 
PHILLIPS LAB EXPLORATORY DEVELOPMENT                     116,139   116,139   125,139    129,139 
COMMAND CONTROL AND COMMUNICATION                         65,175    67,675    65,175     72,175 
DUAL USE APPLICATIONS PROGRAM                             19,606    19,606    10,000     10,000 
LOGISTICS SYSTEMS TECHNOLOGY                               8,677     9,677     8,677      9,177 
ADVANCED MATERIALS FOR WEAPON SYSTEMS                     21,006    37,006    25,006     33,006 
AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION               30,814    30,814    27,814     27,814 
ADVANCED AVIONICS FOR AEROSPACE VEHICLES                  26,442    26,442    29,442     28,642 
AEROSPACE PROPULSION AND POWER TECHNOLOGY                 38,984    38,984    36,984     36,984 
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY          16,603    22,603    35,103     30,053 
ELECTRONIC COMBAT TECHNOLOGY                              25,553    31,553    39,553     25,553 
SPACE AND MISSILE ROCKET PROPULSION                       21,121    25,121    21,121     24,121 
ADVANCED SPACECRAFT TECHNOLOGY                            42,571    54,571    65,071     60,571 
ADVANCED WEAPONS TECHNOLOGY                               40,153    50,153    46,153     53,653 
AIRBORNE LASER PROGRAM                                   292,219   292,219   235,219    267,219 
SATELLITE SYSTEM SURVIVABILITY                                                15,000      7,500 
NATO RESEARCH AND DEVELOPMENT (H)                         11,117              10,717      4,117 
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL               29,360    42,360    16,360     27,337 
GLOBAL BROADCAST SERVICE                                  70,147    67,947    70,147     70,147 
AIR FORCE/NRO PARTNERSHIP (AFNP)                          17,645              17,645     17,645 
SPACE-BASED LASER                                         35,000    25,000    35,000     35,000 
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST AIRCRAFT                           7,400      4,000 
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS)       9,803     9,803                3,000 
F-22 EMD                                               1,582,217 1,582,217 1,582,217  1,575,417 
EW DEVELOPMENT                                            90,126    95,126   100,126     98,626 
SPACE BASED INFRARED SYSTEM (SBIRS) HIGH EMD             538,438   538,438   543,238    541,938 
GLOBAL POSITIONING SYSTEM BLOCK IIF (SPACE)               62,591    62,591    84,591     73,591 
LIFE SUPPORT SYSTEMS                                       3,744     6,744     3,744      6,244 
COMBAT TRAINING RANGES                                    14,581    13,181    14,581     14,581 
COMPUTER RESOURCE TECHNOLOGY TRANSITION (CRTT)               200     4,200       200      2,200 
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE      27,937    14,037    17,937     15,937 
EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)        280,297   230,297   280,297    260,297 
THREAT SIMULATOR DEVELOPMENT                              32,582    29,582    39,582     34,582 
TARGET SYSTEMS DEVELOPMENT                                 1,666     1,666     9,666      6,666 
MAJOR T&E INVESTMENT                                      34,518    42,018    39,518     41,068 
INITIAL OPERATIONAL TEST & EVALUATION                     24,541    24,541    24,541     29,541 
TEST AND EVALUATION SUPPORT                              370,168   376,168   366,168    363,168 
DEVELOPMENT PLANNING                                       6,075     6,075     4,075      4,075 
POLLUTION PREVENTION                                       1,673     1,673     6,673      5,173 
ROCKET SYSTEMS LAUNCH PROGRAM (SPACE)                      7,865    18,865     7,865     14,865 
B-52 SQUADRONS                                             6,436     6,436     5,036      6,436 
REGION/SECTOR OPERATION CONTROL CENTER MODERNIZATION      13,592    21,792    18,792     21,792 
F-16 SQUADRONS                                           125,076   125,076   145,076    140,076 
ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)         45,078    15,078    36,078     36,078 
SPECIAL EVALUATION PROGRAM                                92,551    72,551   102,551    102,551 
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM             92,069   117,069    92,069     97,069 
JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)            132,870   129,870   132,870    129,870 
AIRBORNE WARNING AND CONTROL SYSTEM (AWACS)               28,189    28,189    36,189     34,189 
EVALUATION AND ANALYSIS PROGRAM                           84,950    84,950    72,150     72,150 
ADVANCED PROGRAM TECHNOLOGY                               74,707    79,707    74,707     77,207 
THEATER BATTLE MANAGEMENT (TBM) C4I                       27,292    27,292    32,292     30,792 
AIRBORNE RECON SYSTEMS                                              47,362                      
JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM        123,793    98,193    98,793    101,793 
SEEK EAGLE                                                17,590    19,590    17,090     19,090 
ADVANCED PROGRAM EVALUATION                              272,914   260,914   251,014    208,314 
TACTICAL INFORMATION PROGRAM (TIP)                        10,685              10,685            
INFORMATION WARFARE SUPPORT                                1,375     1,375     3,375      2,375 
FOREIGN TECHNOLOGY DIVISION                                1,234     1,234     1,834      2,134 
MISSILE AND SPACE TECHNICAL COLLECTION                    18,595    26,595    12,595     20,595 
E-4B NATIONAL AIRBORNE OPERATIONS CENTER (NAOC)            4,233     4,233     2,143      2,143 
DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPACE)           15,641    13,141    15,641     14,141 
INFORMATION SYSTEMS SECURITY PROGRAM                       8,420    10,420     8,420      9,420 
SECURITY AND INVESTIGATIVE ACTIVITIES                        458     1,458       458      1,458 
TITAN SPACE LAUNCH VEHICLES (SPACE)                       87,443    87,443    77,443     77,443 
DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)          20,432    17,932    20,432     17,932 
NAVSTAR GLOBAL POSITIONING SYSTEM (USER EQUIPMENT)        67,238    62,238    36,638     36,638 
ENDURANCE UNMANNED AERIAL VEHICLES                         4,307   182,975   155,457    188,957 
ADVANCED SENSORS/TECHNOLOGY                                                  134,768    126,768 
COMMON IMSGERY GROUND/SURFACE SYS                                             20,379            
MANNED RECONNAISSANCE SYSTEMS                                       25,800    21,566     38,366 
DISTRIBUTED COMMON GROUND/SURFACE SYSTEM INTEROPERABIL              14,701               21,159 
SPACETRACK (SPACE)                                        39,532    38,532    42,832     45,832 
C-5 AIRLIFT SQUADRONS                                     47,940    47,940    33,736     33,736 
C-17 AIRCRAFT                                            123,069   123,069   108,069    119,069 
KC-135S                                                   11,093    11,093     1,093      1,093 
INDUSTRIAL PREPAREDNESS                                   50,997    50,997    53,997     52,997 
PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN            970       970    14,970     10,470 
COBRA BALL (FLD)                                                               8,000      6,000 
CLASSIFIED PROGRAMS                                    4,420,330 4,188,138 4,189,930  4,281,116 
CIVILIAN PERSONNEL UNDEREXECUTION                                                        -9,600 
ADVISORY AND ASSISTANCE SERVICES                                   -40,000              -40,000 
COMPASS CALL                                                        20,000               12,500 
------------------------------------------------------------------------------------------------

[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                        Budget     House    Senate Conference 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES                                                                                                                                                                                                                              209,395   202,751   209,395    210,395 
Coal derived jet fuel                                                                                                                                                                                                                                        0     3,500         0      3,000 
Center for Adaptive Optics                                                                                                                                                                                                                                   0     3,000         0      2,000 
Basic Research reduction                                                                                                                                                                                                                                     0   -13,144         0     -4,000 
Sacramento Peak Observatory                                                                                                                                                                                                                                  0     [650]     [650]      [650] 
Air Force Research Lab mission-focused research projects through AFIT                                                                                                                                                                                        0         0   [3,000]    [3,000] 
MATERIALS                                                                                                                                                                                                                                               62,578    72,578    68,678     75,278 
Advanced Material Research                                                                                                                                                                                                                                   0    10,000         0      8,000 
Friction stir welding                                                                                                                                                                                                                                        0         0     1,500      1,200 
Environmentally safe aircraft coating                                                                                                                                                                                                                        0         0     2,000      1,500 
Inorganic/organic optical limiters                                                                                                                                                                                                                           0         0     2,600      2,000 
AEROSPACE PROPULSION                                                                                                                                                                                                                                    69,061    74,061    69,561     69,561 
Variable dispacement vane pump for KC-135                                                                                                                                                                                                                    0     5,000     2,000      3,000 
Program reduction                                                                                                                                                                                                                                            0         0    -4,000     -4,000 
Thermophotovoltaics                                                                                                                                                                                                                                          0         0     2,500      1,500 
PHILLIPS LAB EXPLORATORY DEVELOPMENT                                                                                                                                                                                                                   116,139   116,139   125,139    129,139 
HAARP                                                                                                                                                                                                                                                        0         0     9,000      9 000 
Terabit                                                                                                                                                                                                                                                      0         0         0      4,000 
COMMAND CONTROL AND COMMUNICATIONS                                                                                                                                                                                                                      65,175    67,676    65,175     72,175 
Protein memory                                                                                                                                                                                                                                               0     2,500         0      2,000 
Cyber security program                                                                                                                                                                                                                                       0         0   [8,000]      5,000 
ADVANCED MATERIALS FOR WEAPON SYSTEMS                                                                                                                                                                                                                   21,006    37,006    25,006     33,006 
Advanced low observable coatings                                                                                                                                                                                                                             0     9,000         0      4,000 
National Center for Industrial Competitiveness                                                                                                                                                                                                               0     7,000         0      5,000 
Aerospace metals programs                                                                                                                                                                                                                                    0         0     4,000      3,000 
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY                                                                                                                                                                                                        16,603    22,603    35,103     30,053 
Ejection seat technology                                                                                                                                                                                                                                     0     3,000         0          0 
Aircrew laser eye protection                                                                                                                                                                                                                                 0     3,000     5,500      4,250 
Panoramic night vision goggles                                                                                                                                                                                                                               0         0     3,000      2,200 
ACES II risk reduction                                                                                                                                                                                                                                       0         0     2,000      2,000 
Helmet display technology                                                                                                                                                                                                                                    0         0     8,000      5,000 
BALLISTIC MISSILE TECHNOLOGY                                                                                                                                                                                                                                 0    16,000    16,000     16,000 
Missile and GPS range safety technology dev. and demonstration                                                                                                                                                                                               0    16,000    16,000     16,000 
ADVANCED SPACECRAFT TECHNOLOGY                                                                                                                                                                                                                          42,571    54,571    65,071     60,571 
Scorpius                                                                                                                                                                                                                                                     0     5,000         0      2,500 
Miniature satellite threat reporting system                                                                                                                                                                                                                  0     7,000         0      5,000 
Range upgrades to support upper stage flight experiments                                                                                                                                                                                                     0         0     5,000          0 
Solar orbital transfer vehicle                                                                                                                                                                                                                               0         0     7,500      4,500 
Micro-Satellite Technology Program                                                                                                                                                                                                                           0         0    10,000      6,000 
ADVANCED WEAPONS TECHNOLOGY                                                                                                                                                                                                                             40,153    50,153    46,153     53,653 
Geo Space Object Imaging                                                                                                                                                                                                                                     0    10,000         0      7,500 
Field laser radar upgrade                                                                                                                                                                                                                                    0         0     6,000      6,000 
AIRBORNE LASER PROGRAM                                                                                                                                                                                                                                 292,219   292,219   235,219    267,219 
Aircraft purchase and integration                                                                                                                                                                                                                            0         0   -97,000          0 
Ground testing and targets                                                                                                                                                                                                                                   0         0    40,000          0 
Concurrency                                                                                                                                                                                                                                                  0         0         0    -25,000 
INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL                                                                                                                                                                                                             29,360    42,360    16,360     27,337 
Conventional ICBM ACTD                                                                                                                                                                                                                                       0    13,000         0     11,000 
Advanced IMU                                                                                                                                                                                                                                                 0         0    -8,000     -6,000 
AIMU interferometer fiber opic gyro                                                                                                                                                                                                                          0         0    -3,000     -3,000 
Sensor/instrumentation integration                                                                                                                                                                                                                           0         0    -2,000     -2,000 
Evaluate force applications technologies of AF Global Studies                                                                                                                                                                                                0         0         0     -2,023 
VARIABLE STABILITY IN-FLIGHT SIMULATOR TEST AIRCRAFT                                                                                                                                                                                                         0         0     7,400      4,000 
3NF-16D VISTA support                                                                                                                                                                                                                                        0         0     3,800          0 
NF-16D VISTA VSS:                                                                                                                                                                                                                                                                             
Improvements                                                                                                                                                                                                                                                 0         0     1,100          0 
Ground simulator                                                                                                                                                                                                                                             0         0     1,500          0 
Hotbench                                                                                                                                                                                                                                                     0         0     1,000          0 
NF-16D VISTA Support and VSS                                                                                                                                                                                                                                 0         0         0      4,000 
HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM (HDBTDS)                                                                                                                                                                                                     9,803     9,803         0      3,000 
Complete Joint Analysis of Alternatives                                                                                                                                                                                                                      0         0         0      3,000 
F-22 EMD                                                                                                                                                                                                                                             1,582,217 1,582,217 1,582,217  1,575,417 
Unused award fees identified by GAO                                                                                                                                                                                                                          0         0         0     -6,800 
EW DEVELOPMENT                                                                                                                                                                                                                                          90,126    95,126   100,126     98,626 
Advanced flares for B-1 and C-17                                                                                                                                                                                                                             0     5,000         0      4,000 
Classified adjustment                                                                                                                                                                                                                                        0         0    10,000          0 
PLAID for AN/ALR-69 (transfer from 0603270F)                                                                                                                                                                                                                 0         0         0      4,500 
THREAT SIMULATOR DEVELOPMENT                                                                                                                                                                                                                            32,582    29,582    39,582     34,582 
JMASS delays                                                                                                                                                                                                                                                 0    -3,000         0     -3,000 
REDCAP/DIADS                                                                                                                                                                                                                                                 0         0         0      5,000 
Integration with ECIT                                                                                                                                                                                                                                        0         0     4,000          0 
Simulation threat correlation                                                                                                                                                                                                                                0         0       600          0 
Special project laydowns                                                                                                                                                                                                                                     0         0     1,000          0 
Technology proliferation                                                                                                                                                                                                                                     0         0     1,400          0 
MAJOR T&E INVESTMENT                                                                                                                                                                                                                                    34,518    42,018    39,518     41,068 
Santa Rosa Island range complex                                                                                                                                                                                                                              0     5,000         0      2,500 
Eglin Range Complex                                                                                                                                                                                                                                          0     2,500         0      1,250 
Hypersonic wind tunnel                                                                                                                                                                                                                                       0         0     5,000      2,800 
TEST AND EVALUATION SUPPORT                                                                                                                                                                                                                            370,168   376,168   366,168    363,168 
Air Force Flight Test Center safety improvements                                                                                                                                                                                                             0     6,000         0      3,000 
Program reduction                                                                                                                                                                                                                                            0         0    -4,000    -10,000 
JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM                                                                                                                                                                                                      123,793    98,193    98,793    101,793 
RTIP reduction                                                                                                                                                                                                                                               0   -25,600   -25,000    -25,000 
JSTARS multi-service datalink competition                                                                                                                                                                                                                    0         0         0      3,000 
SEEK EAGLE                                                                                                                                                                                                                                              17,590    19,590    17,090     19,090 
LongShot                                                                                                                                                                                                                                                     0     2,000         0     1,500  
Program reduction                                                                                                                                                                                                                                            0         0      -500          0 
NAVSTAR GLOBAL POSITIONING SYSTEM (USER EQUIPMENT)                                                                                                                                                                                                      67,238    62,238    36,638     36,638 
NAVWAR pricing                                                                                                                                                                                                                                               0    -5,000         0          0 
NAVWAR EMD                                                                                                                                                                                                                                                   0         0   -28,600    -28,600 
Undefined product improvement efforts                                                                                                                                                                                                                        0         0    -2,000     -2,000 
ENDURANCE UNMANNED AERIAL VEHICLES                                                                                                                                                                                                                       4,307   182,975   155,457    188,957 
Darkstar                                                                                                                                                                                                                                                     0    40,518         0     34,000 
Global Hawk transfer/increase                                                                                                                                                                                                                                0    90,051   115,051    102,551 
CGS transfer                                                                                                                                                                                                                                                 0    48,099    36,099     48,099 
ADVANCED SENSORS/TECHNOLOGY                                                                                                                                                                                                                                  0         0   134,768    126,768 
Transfer                                                                                                                                                                                                                                                     0         0   125,768    125,768 
EO framing                                                                                                                                                                                                                                                   0         0     9,000          0 
High Data Rate Laser Comms                                                                                                                                                                                                                                   0         0         0      1,000 
COMMON IMAGERY GROUND/SURFACE SYS                                                                                                                                                                                                                            0         0    20,379          0 
MANNED RECONNAISSANCE SYSTEMS                                                                                                                                                                                                                                0    25,800    21,566     38,366 
U-2 transfers                                                                                                                                                                                                                                                0    25,800     7,466     26,766 
Fuel conversion                                                                                                                                                                                                                                              0         0     3,600      3,600 
Glass cockpit                                                                                                                                                                                                                                                0         0     3,000      3,000 
RAS-1R                                                                                                                                                                                                                                                       0         0     7,500      5,000 
DISTRIBUTED COMMON GROUND/SURFACE SYSTEM                                                                                                                                                                                                                     0    14,701         0     21,519 
INTEROPERABILITY, NIMA                                                                                                                                                                                                                                                                        
SPACETRACK (SPACE)                                                                                                                                                                                                                                      39,532    38,532    42,832     45,832 
HAVE STARE                                                                                                                                                                                                                                                   0    -1,000         0     -1,000 
AEOS activities                                                                                                                                                                                                                                              0         0     3,300      7,300 
(NOTE: The AEOS activities increase is provided for the following: $1,400,000 is only for the spectrograph program; $1,300,000 is only for AEOS-related acquisition and research; and $4,000,000 is only for MSSS research and development efforts.)                                          
C-5 Airlift Squadrons                                                                                                                                                                                                                                   47,940    47,940    33,736     33,736 
System design and test                                                                                                                                                                                                                                       0         0    -8,415     -8,415 
Preproduction fabrication                                                                                                                                                                                                                                    0         0    -3,209     -3,209 
Software development                                                                                                                                                                                                                                         0         0    -2,580     -2,580 
INDUSTRIAL PREPAREDNESS                                                                                                                                                                                                                                 50,997    50,997    53,997     52,997 
Aerospace metals programs                                                                                                                                                                                                                                    0         0     3,000      2,000 
Wright Technology Network                                                                                                                                                                                                                                    0   [1,000]         0    [1,000] 
PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN                                                                                                                                                                                                          970       970    14,970     10,470 
Aging Landing Gear Life Extension Program                                                                                                                                                                                                                    0         0     6,000      4,000 
Blade repair facility                                                                                                                                                                                                                                        0         0     8,000      5,500 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Page: H8711]

AVIATION SAFETY

The Committee understands that the U.S. Air Force is working with the Federal Aviation Administration (FAA) to use the capabilities at the FAA Airworthiness Assurance Center of Excellence and other FAA research resources for projects that will enhance the safety of both military and civilian aircraft. The Committee encourages increased coordination to maximize improvements in safety research and to avoid duplicative efforts.

AIRBORNE LASER PROGRAM

The conferees have provided $267,219,000, a reduction of $25,000,000 to the budget request. The conferees direct that the first priority within the available funds shall be to conduct a meaningful ground demonstration of the capability to produce a high energy beam, compensate the beam for atmospheric disturbances, and measure the deposition of laser energy on a target under realistic test conditions. The funding level recommended by the conferees reduces concurrency in the program to enable the lessons learned from the test to be incorporated in the program.

HARD AND DEEPLY BURIED TARGET DEFEAT SYSTEM

The conferees have provided a total of $6,000,000, with $3,000,000 in the RDT&E, Navy account and $3,000,000 in the RDT&E, Air Force account. The conferees direct that the $6,000,000 shall be available only for completion of a joint analysis of alternatives (AOA) as well as planning efforts associated with establishing a joint hard and deeply buried target defeat program.

TARGET SYSTEMS DEVELOPMENT

The conferees agree with the Senate direction with regard to the KC-135 Big Crow report and further direct that the report be provided no later than December 31, 1998.

TACTICAL AIR RECONNAISSANCE SYSTEM

The conferees believe that if the Defense Department decides to acquire additional sensors for the AF Tactical Air Reconnaissance System (TARS) program, the Department should consider the CA 261, the MAEO and other sensors based on best value, capability and stated Air Force requirements.

WARFIGHTER

The conferees continue to support the Warfighter-1 program. The conferees are concerned however, that the license amendment for commercial operation of the Warfighter-1 sensor has still to be adjudicated 13 months after initial application. While the conferees recognize the importance of a stringent national security review before any commercial remote sensing license is granted, the excessive length of the review process may jeopardize program milestones and objectives.

The conferees therefore, strongly encourage the Secretary of Defense and the Director of Central Intelligence to take immediate steps to resolve remaining license issues and report to the Committees on Appropriations no later than November 15, 1998 on the resolution of all outstanding issues concerning the commercial operation of the Warfighter-1 program.

EVOLVED EXPENDABLE LAUNCH VEHICLE (EELV)

The conferees agree to provide $260,297,000 for the Evolved Expendable Launch Vehicle Program, a reduction of $20,000,000 to the budget request. The conferees also agree to House language directing that reports and certifications regarding the EELV program be provided to the Committees on Appropriations and necessary program information be provided to the Comptroller General. The conferees do not agree that the obligation of fiscal year 1999 appropriations for the EELV program should be restricted pending the receipt of said reports and certifications.

DEFENSE SATELLITE COMMUNICATIONS SYSTEM (DSCS)

The conferees agree to the House language requiring the Air Force to report to the Committees on Appropriations on the resolution of difficulties associated with the completion of the operational requirements document for the DSCS follow-on system. The conferees do not agree that the report needs to be provided prior to the release of any draft RFP for the DSCS follow-on system.

Research, Development, Test and Evaluation, Defense-Wide

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------------------------------
                                                          Budget     House    Senate Conference 
------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE:                                                       
UNIVERSITY RESEARCH INITIATIVES                          216,320   218,400   219,320    229,420 
GULF WAR ILLNESS                                          19,646    19,646    19,646     23,796 
GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIVERSITY RESEAR     9,870               9,870      4,870 
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                   25,282    25,282    30,282     28,782 
NEXT GENERATION INTERNET                                  40,000    53,000    30,000     50,000 
SUPPORT TECHNOLOGIES--APPLIED RESEARCH                    86,866    81,866   100,866     97,866 
MEDICAL FREE ELECTRON LASER                                9,706    17,206    16,706     14,706 
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY          417,723   390,723   346,323    331,323 
BIOLOGICAL WARFARE DEFENSE                                88,000    88,000    82,500     82,000 
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                   57,683    57,683    66,683     63,583 
TACTICAL TECHNOLOGY                                      188,995   151,995   192,995    175,395 
INTEGRATED COMMAND AND CONTROL TECHNOLOGY                 34,000    40,000    42,000     40,000 
MATERIALS AND ELECTRONICS TECHNOLOGY                     244,408   253,408   271,408    277,908 
WMD RELATED TECHNOLOGIES                                 203,598   204,598   221,598    215,598 
EXPLOSIVES DEMILITARIZATION TECHNOLOGY                    11,650    13,650    14,850     14,650 
COUNTERTERROR TECHNICAL SUPPORT                           35,813    35,813    40,813     38,313 
COUNTERPROLIFERATION SUPPORT--ADV DEV                     70,611    55,611    77,611     53,111 
SUPPORT TECHNOLOGIES--ADVANCED TECHNOLOGY DEVELOPMENT    166,676   193,676   299,676    277,676 
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADVANCED DEV     42,762    55,262    42,762     51,762 
VERIFICATION TECHNOLOGY DEMONSTRATION                     63,052    48,052    63,052     58,052 
GENERIC LOGISTICS R&D TECHNOLOGY DEMONSTRATIONS           17,788    25,388    21,788     23,788 
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM                            59,419               59,419 
JOINT WARFIGHTING PROGRAM                                 23,700    23,700    19,100     19,100 
COOPERATIVE DOD/VA MEDICAL RESEARCH                                 11,000                6,000 
ADVANCED ELECTRONICS TECHNOLOGIES                        244,737   264,537   261,337    264,637 
MARITIME TECHNOLOGY                                       15,000    15,000                      
ELECTRIC VEHICLES                                                                         9,000 
ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS               116,330    81,076   110,330     89,830 
HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM         140,927   120,927   163,927    153,927 
COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS              200,100   172,600   177,000    181,300 
COMMUNICATION AND SIMULATION TECHNOLOGY                   56,114    56,114    56,114     54,114 
SENSOR AND GUIDANCE TECHNOLOGY                           213,154   203,654   233,054    208,054 
LAND WARFARE TECHNOLOGY                                  108,490    96,890    93,490     92,990 
CLASSIFIED DARPA PROGRAMS                                 55,500    42,000    55,500     51,000 
DUAL USE APPLICATION PROGRAMS                              6,000               6,000      6,000 
JOINT WARGAMING SIMULATION MANAGEMENT OFFICE              70,696    70,696    61,496     61,496 
PHYSICAL SECURITY EQUIPMENT                               31,792    31,792    25,792     25,792 
ADVANCED SENOR APPLICATIONS PROGRAM                       15,147    15,147    17,147     18,147 
CALS INITIATIVE                                            1,863    11,363     6,863      7,863 
NATO RESEARCH AND DEVELOPMENT                             10,762               8,462      5,762 
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD           497,752   392,752   497,752    445,252 
NAVY THEATER WIDE                                        190,446   340,446   295,446    338,446 
MEADS CONCEPTS--DEM/VAL                                   43,027    43,027    10,027     10,027 
BOOST PHASE INTERCEPT THEATER MISSILE DEFENSE ACQUISIT                        10,000      6,500 
JOINT THEATER MISSILE DEFENSE--DEM/VAL                   176,846   176,846   209,346    207,846 
BMD TECHNICAL OPERATIONS                                 190,147   190,147   192,147    191,147 
INTERNATIONAL COOPERATIVE PROGRAMS                        50,676    50,676    62,676     59,676 
THREAT AND COUNTERMEASURES                                22,113    22,113    25,113     24,613 
HUMANITARIAN DEMINING                                     17,234     8,234    19,234     18,734 
JOINT ROBOTICS PROGRAM--ENG DEV                           11,307    11,307    18,307     15,307 
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE      13,410    13,410    13,410      8,000 
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD--EMD      323,942    22,942                      
PATRIOT PAC-3 THEATER MISSILE DEFENSE ACQUISITION        137,265   177,265   182,265    182,265 
JOINT THEATER AIR AND MISSILE DEFENSE ORGANIZATION        17,423    17,423    17,423    109,923 
CLASSIFIED PROGRAM USD(P)                                            3,387                3,387 
CLASSIFIED PROGRAMS--C3I                                     439       439     6,439      6,439 
DEFENSE TECHNOLOGY ANALYSIS                                5,010     5,010     8,010      8,010 
DEFENSE TECHNICAL INFORMATION SERVICES (DTIC)             46,469    46,469    45,469     45,469 
INFORMATION SYSTEMS SECURITY PROGRAM                     239,081   239,081   239,081    251,081 
DEFENSE IMAGERY AND MAPPING PROGRAM                      114,417   109,417   114,417    109,417 
DISTRIB/IMAGERY COMMON GRD SYS                                       9,358                5,080 
DISTRIB COMMON GRD SYS                                               2,540                      
DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES (SPACE)         40,504    30,617    48,504     44,609 
AIRBORNE RECONNAISSANCE SYSTEMS                          162,666              15,000            
MANNED RECONNAISSANCE SYSTEMS                             10,840               5,874            
MANNED RECONNAISSANCE SYSTEMS                              4,085     4,085     4,085      9,959 
DISTRIBUTED COMMON GROUND SYSTEMS                         34,985               4,200            
TACTICAL CRYPTOLOGIC ACTIVITIES                          104,510   201,810   104,510    115,564 
PARTNERSHIP FOR PEACE ACTIVITIES                           1,957     5,957     1,957      4,957 
SPECIAL OPERATIONS ADVANCED TECHNOLOGY DEVELOPMENT         8,020    34,020     8,020     29,020 
SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT          106,238   106,238   113,238    107,738 
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS DEVELOPMENT        1,805    10,805     1,805      8,805 
SOF OPERATIONAL ENHANCEMENTS                              33,799    47,604    33,799     45,599 
CLASSIFIED PROGRAMS                                    1,057,100 1,141,826 1,163,100  1,157,958 
ADVISORY AND ASSISTANCE SERVICE                                    -50,000              -50,000 
CIVILIAN PERSONNEL UNDEREXECUTION                                                        -7,200 
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[Page: H8712]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Budget    House   Senate Conference 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES                                                                                                                                                                                                                                                                                                                                                                                                                                                 65,102   65,102   65,102     65,102 
Interdisciplinary research in anticorrosion                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0  [1,200]    [1,000] 
Research on applications of spectral hole burning                                                                                                                                                                                                                                                                                                                                                                                                                              0        0  [2,000]    [1,400] 
UNIVERSITY RESEARCH INITIATIVES                                                                                                                                                                                                                                                                                                                                                                                                                                          216,320  218,400  219,320    229,420 
Southern observatory for astronomical research (SOAR)                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    3,000      2,200 
Anticorrosion research on aluminum clad systems used in aircraft fleets                                                                                                                                                                                                                                                                                                                                                                                                        0        0  [1,250]    [1,250] 
Defense Experimental Program to Stimulate Competitive Research                                                                                                                                                                                                                                                                                                                                                                                                                 0   15,000 [20,000]   [20,000] 
Software quality and productivity                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0  [1,300]    [1,300] 
Photoacoustic detection device                                                                                                                                                                                                                                                                                                                                                                                                                                                 0    1,800        0      1,200 
Medical ultrasound technology                                                                                                                                                                                                                                                                                                                                                                                                                                                  0    1,600        0      1,200 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -16,320        0          0 
Military Family Research Institute                                                                                                                                                                                                                                                                                                                                                                                                                                             0  [9,000]        0    [8,000] 
Acoustic sensor technology development planning                                                                                                                                                                                                                                                                                                                                                                                                                                0        0  [1,000]      1,000 
New Starts                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0        0        0      5,500 
Computational neuroscience (Note: $2,000,000 shall be available only to add a multi-disciplinary URI topic area on computational neuroscience and vision studies for learning and human/machine interaction.)                                                                                                                                                                                                                                                                  0        0        0      2,000 
NEXT GENERATION INTERNET                                                                                                                                                                                                                                                                                                                                                                                                                                                  40,000   53,000   30,000     50,000 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0  -10,000          0 
Program increase                                                                                                                                                                                                                                                                                                                                                                                                                                                               0   13,000        0     10,000 
Partnerships between centers with super computers purchased with DOD RDT&E funds and DOD MSRCs                                                                                                                                                                                                                                                                                                                                                                                 0        0        0    [5,000] 
SUPPORT TECHNOLOGIES--APPLIED RESEARCH                                                                                                                                                                                                                                                                                                                                                                                                                                    86,866   81,866  100,866     97,866 
Wideband gap semiconductor research                                                                                                                                                                                                                                                                                                                                                                                                                                            0    5,000   14,000     11,000 
Space-based laser                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -10,000        0          0 
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY                                                                                                                                                                                                                                                                                                                                                                                                                          417,723  390,723  346,323    331,323 
Hand free interface                                                                                                                                                                                                                                                                                                                                                                                                                                                            0        0   -7,500     -7,500 
Joint infrastructure protection                                                                                                                                                                                                                                                                                                                                                                                                                                                0        0  -69,900    -69,900 
Software security research                                                                                                                                                                                                                                                                                                                                                                                                                                                     0        0      500        500 
Asset source for software engineering technology [ASSET]                                                                                                                                                                                                                                                                                                                                                                                                                       0        0    2,500      2,500 
Reuse technology adoption program                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0    3,000      2,000 
Multi-spectral imaging                                                                                                                                                                                                                                                                                                                                                                                                                                                         0    5,000        0      2,000 
Computer security                                                                                                                                                                                                                                                                                                                                                                                                                                                              0    2,000        0      1,000 
Networking                                                                                                                                                                                                                                                                                                                                                                                                                                                                     0  -34,000        0    -20,000 
Applied Software Engineering (Note: $3,000,000 is only for the National Applied Software Engineering Center to perform a Microelectronics and Very Large-Scale Integration (VSLI) software initiative to demonstrate the integration of artificial intelligence software technologies with VLSI microelectronics circuits.)                                                                                                                                                    0        0        0      3,000 
BIOLOGICAL WARFARE DEFENSE                                                                                                                                                                                                                                                                                                                                                                                                                                                88,000   88,000   82,500     82,000 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0   -7,000     -7,000 
Biological warfare multimedia demonstration                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    1,500      1,000 
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                                                                                                                                                                                                                                                                                                                                                                                                                                   57,683   57,683   66,683     63,583 
Chemical and biological detection sensor                                                                                                                                                                                                                                                                                                                                                                                                                                       0        0    5,000      3,500 
Safeguard                                                                                                                                                                                                                                                                                                                                                                                                                                                                      0        0    4,000      2,400 
TACTICAL TECHNOLOGY                                                                                                                                                                                                                                                                                                                                                                                                                                                      188,995  151,995  192,995    175,395 
Center of excellence for research in ocean sciences [CEROS]                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    7,000      7,000 
Simulation-based design                                                                                                                                                                                                                                                                                                                                                                                                                                                        0    2,000    5,000      2,000 
Microadaptive flow control                                                                                                                                                                                                                                                                                                                                                                                                                                                     0        0   -3,000     -3,000 
Counterartillery force protection                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0   -5,000     -5,000 
High performance algorithm development                                                                                                                                                                                                                                                                                                                                                                                                                                         0   -5,600        0     -5,600 
Advanced fire support system                                                                                                                                                                                                                                                                                                                                                                                                                                                   0   -8,000        0     -4,000 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -25,400        0     -5,000 
MATERIALS AND ELECTRONICS TECHNOLOGY                                                                                                                                                                                                                                                                                                                                                                                                                                     244,408  253,408  271,408    277,908 
Multitechnology integration in mixed-mode electronics [MIME]                                                                                                                                                                                                                                                                                                                                                                                                                   0        0    8,000      5,000 
3-D diamond electronics                                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0    9,000      5,500 
Seamless high off chip connectivity [SHOCC]                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    8,000      5,000 
Cryogenic/superconducting electronics                                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    8,000      5,000 
Electromagnetic pulse [EMP]                                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    2,000          0 
Sonoelectronics                                                                                                                                                                                                                                                                                                                                                                                                                                                                0        0   -8,000     -8,000 
MEMS deep silicon etching process technology                                                                                                                                                                                                                                                                                                                                                                                                                                   0    7,500        0      7,000 
Nanophase magnetic particle (advanced materials research institute)                                                                                                                                                                                                                                                                                                                                                                                                            0    4,000        0      7,000 
Polymer materials and processing                                                                                                                                                                                                                                                                                                                                                                                                                                               0    5,000        0      4,000 
Strategic Materials Manufacturing                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0  [2,000]    [2,000] 
Laser diode array alignment (Note: $3,000,000 is only for the development of automated laser diode bar mounting techniques.)                                                                                                                                                                                                                                                                                                                                                   0        0        0      3,000 
WMD RELATED TECHNOLOGIES                                                                                                                                                                                                                                                                                                                                                                                                                                                 203,598  204,598  221,598    215,598 
Nuclear weapons effects technology                                                                                                                                                                                                                                                                                                                                                                                                                                             0        0   10,000      7,000 
Thermionics                                                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    5,000      3,000 
Deep digger                                                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    3,000      2,000 
Facial recognition technology                                                                                                                                                                                                                                                                                                                                                                                                                                                  0    1,000        0          0 
EXPLOSIVES DEMILITARIZATION TECHNOLOGY                                                                                                                                                                                                                                                                                                                                                                                                                                    11,650   13,650   14,850     14,650 
Program increase                                                                                                                                                                                                                                                                                                                                                                                                                                                               0    2,000    2,000      2,000 
Demilitarization advanced cutting technology                                                                                                                                                                                                                                                                                                                                                                                                                                   0        0    1,200      1,000 
COUNTERTERROR TECHNICAL SUPPORT                                                                                                                                                                                                                                                                                                                                                                                                                                           35,813   35,813   40,813     38,313 
Facial recognition technology                                                                                                                                                                                                                                                                                                                                                                                                                                                  0        0    4,000      2,500 
Pulsed fast neutron analysis                                                                                                                                                                                                                                                                                                                                                                                                                                                   0        0    1,000          0 
Transfer                                                                                                                                                                                                                                                                                                                                                                                                                                                                       0  -25,000        0          0 
COUNTERPROLIFERATION SUPPORT--ADV DEV                                                                                                                                                                                                                                                                                                                                                                                                                                     70,611   55,611   77,611     53,111 
HAARP                                                                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    3,000      1,500 
Counterproliferation analysis planning system [CAPS]                                                                                                                                                                                                                                                                                                                                                                                                                           0   10,000    4,000      6,000 
Transfer (special reconnaissance capabilities)                                                                                                                                                                                                                                                                                                                                                                                                                                 0  -25,000        0    -25,000 
SUPPORT TECHNOLOGIES--ADVANCED TECHN. DEVELOPMENT                                                                                                                                                                                                                                                                                                                                                                                                                        166,676  193,676  299,676    277,676 
Scorpius space launch tech                                                                                                                                                                                                                                                                                                                                                                                                                                                     0    5,000    5,000      4,000 
Excalibur space launch tech                                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0    5,000      4,000 
Space-based laser demonstrator                                                                                                                                                                                                                                                                                                                                                                                                                                                 0        0   94,000     74,000 
Atmospheric interceptor technology                                                                                                                                                                                                                                                                                                                                                                                                                                             0   22,000   22,000     22,000 
Photoconduction on active pixel sensors                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0    5,000      5,000 
Silicon thick film mirror coatings                                                                                                                                                                                                                                                                                                                                                                                                                                             0        0    2,000      2,000 
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADVANCED DEV                                                                                                                                                                                                                                                                                                                                                                                                                     42,762   55,262   42,762     51,762 
Biocide-based protective ensembles                                                                                                                                                                                                                                                                                                                                                                                                                                             0    2,500        0      1,500 
Exposure to low levels of chemical agents and sub-chronic exposures                                                                                                                                                                                                                                                                                                                                                                                                            0   10,000        0      7,500 
VERIFICATION TECHNOLOGY DEMONSTRATION                                                                                                                                                                                                                                                                                                                                                                                                                                     63,052   48,052   63,052     58,052 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -25,000        0    -15,000 
Nuclear detection, analysis and forensics systems (Note: $5,000,000 is only for continuation of the industry based program and $5,000,000 is only for accelerated development of nuclear detection systems.)                                                                                                                                                                                                                                                                   0   10,000        0     10,000 
Peer reviewed basic and applied research to support nuclear testing (Note: Of the $8,500,000, $7,300,000 shall be available only for basic peer-reviewed explosion seismology research; and $1,200,000 shall be available only for applied peer-reviewed explosion seismology research. The conferees direct that the applied seismic research program address the specific prioritized research topics recommended to the Department by the National Research Council.)       0 [12,000]        0    [8,500] 
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM                                                                                                                                                                                                                                                                                                                                                                                                                                       0   59,419        0     59,419 
Transfer from RDTE,A                                                                                                                                                                                                                                                                                                                                                                                                                                                           0   54,419        0     54,419 
Environmental workers safety                                                                                                                                                                                                                                                                                                                                                                                                                                                   0    2,000        0      2,000 
Risk-based approach to research effects of toxic chemicals                                                                                                                                                                                                                                                                                                                                                                                                                     0    3,000        0      3,000 
ADVANCED ELECTRONICS TECHNOLOGIES                                                                                                                                                                                                                                                                                                                                                                                                                                        244,737  264,537  261,337    264,637 
X-ray masks for F-22, Apache Longbow                                                                                                                                                                                                                                                                                                                                                                                                                                           0        0   10,000      7,000 
Advanced lithography                                                                                                                                                                                                                                                                                                                                                                                                                                                           0        0   10,000      7,000 
Defense techlink center                                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0    1,000      1,000 
Center for advanced microstructures and devices                                                                                                                                                                                                                                                                                                                                                                                                                                0  [4,000]    4,000      4,000 
Molecular level printing program acceleration                                                                                                                                                                                                                                                                                                                                                                                                                                  0        0   -3,300     -3,300 
Submarine sensor suite development                                                                                                                                                                                                                                                                                                                                                                                                                                             0        0   -5,100     -5,100 
Cryogenic electronics                                                                                                                                                                                                                                                                                                                                                                                                                                                          0    9,500        0          0 
Laser plasma x-ray source technology                                                                                                                                                                                                                                                                                                                                                                                                                                           0    7,000        0      6,000 
Nanotechnology and crystalline control arrays                                                                                                                                                                                                                                                                                                                                                                                                                                  0    3,300        0      3,300 
HIGH PERFORMANCE COMPUTING MODERNIZATION PROGRAM                                                                                                                                                                                                                                                                                                                                                                                                                         140,927  120,927  163,927    153,927 
Operation and upgrade of supercomputing centers, purchased with RDT&E funds                                                                                                                                                                                                                                                                                                                                                                                                    0        0   20,000     20,000 
High performance visualization center                                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    3,000      3,000 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -20,000        0    -10,000 
COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS                                                                                                                                                                                                                                                                                                                                                                                                                              200,100  172,600  177,000    181,300 
Cynamic data bases program                                                                                                                                                                                                                                                                                                                                                                                                                                                     0        0   -5,000     -5,000 
Joint forward air component commander [JFACC] acceleration                                                                                                                                                                                                                                                                                                                                                                                                                     0        0   -5,800     -5,800 
Dynamic multiuser information fusion [DMIF]                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0   -8,000     -8,000 
JSIMS program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0   -4,300          0 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -27,500        0          0 
SENSOR AND GUIDANCE TECHNOLOGY                                                                                                                                                                                                                                                                                                                                                                                                                                           213,154  203,654  233,054    208,054 
Enhanced global positioning receiver (GPX)                                                                                                                                                                                                                                                                                                                                                                                                                                     0        0   -5,600     -5,600 
Low cost cruise missile defense airframe design and integration                                                                                                                                                                                                                                                                                                                                                                                                                0        0   -7,500     -7,500 
Air directed surface-to-air missile demonstration (ADSAM)                                                                                                                                                                                                                                                                                                                                                                                                                      0        0   30,000          0 
Large millimeter telescope                                                                                                                                                                                                                                                                                                                                                                                                                                                     0        0    3,000      1,500 
GPS Guidance Package                                                                                                                                                                                                                                                                                                                                                                                                                                                           0    6,500        0      6,500 
GEOSAR (transfer to Army)                                                                                                                                                                                                                                                                                                                                                                                                                                                      0   11,000        0          0 
Tactical Radar/Discoverer II                                                                                                                                                                                                                                                                                                                                                                                                                                                   0  -27,000        0          0 
LAND WARFARE TECHNOLOGY                                                                                                                                                                                                                                                                                                                                                                                                                                                  108,490   96,890   93,490     92,990 
Reconnaissance, surveillance, and targeting vehicle                                                                                                                                                                                                                                                                                                                                                                                                                            0        0   -9,000     -4,500 
Tactical mobile robots acceleration                                                                                                                                                                                                                                                                                                                                                                                                                                            0        0   -3,000     -3,000 
Situational awareness system program growth                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0   -3,000     -8,000 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0  -11,600        0          0 
CLASSIFIED DARPA PROGRAMS                                                                                                                                                                                                                                                                                                                                                                                                                                                 55,500   42,000   55,200     51,000 
Program reduction--UCAV                                                                                                                                                                                                                                                                                                                                                                                                                                                        0  -13,500        0     -4,500 
PHYSICAL SECURITY EQUIPMENT                                                                                                                                                                                                                                                                                                                                                                                                                                               31,792   31,792   25,792     25,792 
Analytic system software for safeguards and security                                                                                                                                                                                                                                                                                                                                                                                                                           0        0  [3,000]    [3,000] 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0   -6,000     -6,000 
ADVANCED SENSOR APPLICATIONS PROGRAM                                                                                                                                                                                                                                                                                                                                                                                                                                      15,147   15,147   17,147     18,147 
HAARP                                                                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    2,000      2,000 
Stochastic Resonance Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                0        0        0      1,000 
CALS INITIATIVE                                                                                                                                                                                                                                                                                                                                                                                                                                                            1,863   11,363    6,863      7,863 
IDE/continuous acquisition and life-cycle support                                                                                                                                                                                                                                                                                                                                                                                                                              0    4,000    5,000      4,000 
Commodity management                                                                                                                                                                                                                                                                                                                                                                                                                                                           0    3,000        0          0 
Paperless contracting                                                                                                                                                                                                                                                                                                                                                                                                                                                          0    2,500        0      2,000 
THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--TMD                                                                                                                                                                                                                                                                                                                                                                                                                           497,752  392,752  497,752    445,252 
User operational evaluation system (40 missiles, spares)                                                                                                                                                                                                                                                                                                                                                                                                                       0        0 -180,000          0 
Demonstration/validation                                                                                                                                                                                                                                                                                                                                                                                                                                                       0        0  180,000     52,500 
User operational evaluation system (40 missiles)                                                                                                                                                                                                                                                                                                                                                                                                                               0 -105,000        0   -105,000 
NAVY THEATER WIDE                                                                                                                                                                                                                                                                                                                                                                                                                                                        190,446  340,446  295,446    338,446 
Program increase                                                                                                                                                                                                                                                                                                                                                                                                                                                               0  150,000   70,000    120,000 
Radar improvements competition                                                                                                                                                                                                                                                                                                                                                                                                                                                 0        0   35,000     28,000 
MEADS CONCEPTS--DEM/VAL                                                                                                                                                                                                                                                                                                                                                                                                                                                   43,027   43,027   10,027     10,027 
Program termination                                                                                                                                                                                                                                                                                                                                                                                                                                                            0        0  -43,027    -43,027 
Air directed surface-to-air missile demonstration (ADSAM)                                                                                                                                                                                                                                                                                                                                                                                                                      0        0   10,027     10,027 
JOINT THEATER MISSILE DEFENSE--DEM/VAL                                                                                                                                                                                                                                                                                                                                                                                                                                   176,846  176,846  209,346    207,846 
Extended air defense testbed                                                                                                                                                                                                                                                                                                                                                                                                                                                   0        0    7,500      6,000 
Pacific Missile Range Facility TMD upgrades                                                                                                                                                                                                                                                                                                                                                                                                                                    0        0   20,000     20,000 
Optical-electro sensors                                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0    5,000      5,000 
Kauai test facility                                                                                                                                                                                                                                                                                                                                                                                                                                                            0        0  [5,000]    [5,000] 
FAMILY-OF-SYSTEMS ENGINEERING AND INTEGRATION                                                                                                                                                                                                                                                                                                                                                                                                                             96,915   96,915   96,915     96,915 
Air directed surface-to-air missile demonstration (ADSAM)                                                                                                                                                                                                                                                                                                                                                                                                                      0        0 [10,000]   [10,000] 
BMD TECHNICAL OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                 190,147  190,147  192,147    191,147 
Advanced research center                                                                                                                                                                                                                                                                                                                                                                                                                                                       0        0    7,000      6,000 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0        0   -5,000     -5,000 
HUMANITARIAN DEMINING                                                                                                                                                                                                                                                                                                                                                                                                                                                     17,234    8,234   19,234     18,734 
Acoustic technologies                                                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    [800]      [800] 
Humanitarian demining                                                                                                                                                                                                                                                                                                                                                                                                                                                          0        0    2,000      1,500 
Program reduction                                                                                                                                                                                                                                                                                                                                                                                                                                                              0   -9,000        0          0 
JOINT ROBOTICS PROGRAM--ENG DEV                                                                                                                                                                                                                                                                                                                                                                                                                                           11,307   11,307   18,307     15,307 
Joint robotics technology                                                                                                                                                                                                                                                                                                                                                                                                                                                      0        0    6,000      3,000 
Robotic combat support system [RCSS] with flailhead for demining                                                                                                                                                                                                                                                                                                                                                                                                               0        0    1,000      1,000 
PATRIOT PAC-3 THEATER MISSILE DEFENSE ACQUISITION                                                                                                                                                                                                                                                                                                                                                                                                                        137,265  177,265  182,265    182,265 
TRANSFER OF FUNDS                                                                                                                                                                                                                                                                                                                                                                                                                                                              0   40,000   40,000     40,000 
PAC-3 air directed surface-to-air missile testing                                                                                                                                                                                                                                                                                                                                                                                                                              0        0    5,000      5,000 
JOINT THEATER AIR AND MISSILE DEFENSE ORGANIZATION                                                                                                                                                                                                                                                                                                                                                                                                                        17,423   17,423   17,423    109,923 
ADSAM Demonstration                                                                                                                                                                                                                                                                                                                                                                                                                                                            0        0        0     92,500 
INFORMATION SYSTEMS SECURITY PROGRAM                                                                                                                                                                                                                                                                                                                                                                                                                                     239,081  239,081  239,081    251,081 
High security computational structure project                                                                                                                                                                                                                                                                                                                                                                                                                                  0        0    [500]      [500] 
Protection of vital data                                                                                                                                                                                                                                                                                                                                                                                                                                                       0        0        0     12,000 
DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES (SPACE)                                                                                                                                                                                                                                                                                                                                                                                                                         40,504   30,617   48,504     44,609 
IBS Transfer                                                                                                                                                                                                                                                                                                                                                                                                                                                                   0   -9,887        0     -3,895 
Pacific disaster center                                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0    8,000      8,000 
MANNED RECONNAISSANCE SYSTEMS                                                                                                                                                                                                                                                                                                                                                                                                                                              4,085    4,085    4,085      9,959 
U-2 transfer                                                                                                                                                                                                                                                                                                                                                                                                                                                                   0        0        0      5,874 
TACTICAL CRYPTOLOGIC ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                          104,510  201,810  104,510    115,564 
Adv Sensors transfer                                                                                                                                                                                                                                                                                                                                                                                                                                                           0        0        0      6,359 
Adv Technology (NSA)                                                                                                                                                                                                                                                                                                                                                                                                                                                           0        0        0      8,641 
DCP program decrease                                                                                                                                                                                                                                                                                                                                                                                                                                                           0        0        0     -3,946 
PARTNERSHIP FOR PEACE ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                           1,957    5,957    1,957      4,957 
International medical programs global satellite surveillance system                                                                                                                                                                                                                                                                                                                                                                                                            0    4,000        0      3,000 
SPECIAL OPERATIONS ADVANCED TECHNOLOGY DEVELOPMENT                                                                                                                                                                                                                                                                                                                                                                                                                         8,020   34,020    8,020     29,020 
Advanced lightweight grenade launcher                                                                                                                                                                                                                                                                                                                                                                                                                                          0    1,000        0      1,000 
Special reconnaissance capabilities program                                                                                                                                                                                                                                                                                                                                                                                                                                    0   25,000        0     20,000 
SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT                                                                                                                                                                                                                                                                                                                                                                                                                          106,238  106,238  113,238    107,738 
Special operations intelligence vehicle                                                                                                                                                                                                                                                                                                                                                                                                                                        0        0    5,000          0 
Light vehicle intercom system                                                                                                                                                                                                                                                                                                                                                                                                                                                  0        0    2,000      1,500 
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS DEVELOPMENT                                                                                                                                                                                                                                                                                                                                                                                                                        1,805   10,805    1,805      8,805 
Joint threat warning system                                                                                                                                                                                                                                                                                                                                                                                                                                                    0    4,000        0      2,000 
Special operations intelligence vehicle                                                                                                                                                                                                                                                                                                                                                                                                                                        0    5,000        0      5,000 
SOF OPERATIONAL ENHANCEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                              33,799   47,604   33,799     45,599 
Advanced special warfare craft/vsv                                                                                                                                                                                                                                                                                                                                                                                                                                             0    6,000        0      6,000 
Classified program                                                                                                                                                                                                                                                                                                                                                                                                                                                             0    7,805        0      5,800 
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Page: H8714]

MISSILE DEFENSE

The conferees are concerned by recent evidence that the theater ballistic missile threat is emerging more rapidly and in a more sophisticated form than previously projected. Further, the recent ballistic missile launch by North Korea clearly demonstrates that longer range missiles, even intercontinental class, could soon be within the reach of our adversaries. Thus, world events continue to clearly validate the Defense Department requirement for national missile defenses as well as a mix of upper and lower tier TMD systems to defend U.S. interests and forward-deployed forces.

Testimony this year by the Chief of Naval Operations, Army Chief of Staff, and Director of the Ballistic Missile Defense Organization established that the department's two upper tier systems, THAAD and Navy Theater Wide, are complements, not substitutes, for each other. The conferees are concerned by the THAAD program's failure to achieve an intercept in five attempts. However, believing that additional testing is the appropriate course of action, the conferees have provided $445,252,000 to continue the THAAD Demonstration and Validation flight test program during fiscal year 1999.

The Navy Theater Wide program offers the capability to defend a large area against the medium and longer range ballistic missiles our adversaries are seeking to acquire. The deployability of Navy Theater Wide systems will allow this nation to respond to the theater ballistic missile threat whenever and wherever required. The conferees have a dedicated $338,446,000 to Navy Theater Wide development and strongly urge the Department of Defense to proceed aggressively with development and adequate testing.

The conferees have also provided $950,473,000 for the development of a national missile defense system. The conferees are pleased that this program is now poised to make critical progress given the recent NMD contract award. The conferees view NMD as a national priority and place full responsibility on the Department of Defense to prudently and aggressively complete the technical work and testing necessary for an effective national missile defense system which can provide protection for all 50 states.

The conferees also recognize the Airborne Laser as a high priority and promising program for our nation's defense. The program is proceeding on budget and schedule, and the conferees look forward to the results of ground demonstrations which will provide confidence in the capability of the ABL design.

INFORMATION SYSTEMS SECURITY PROGRAM (ISSP)

The conferees have agreed to provide a total of $251,081,000 for the Information Systems Security Program (ISSP); $12,000,000 over the amount proposed by both the House and the Senate. In its recommendation, the House included a $15,000,000 increase in a different program element and directed that the funding be transferred to the ISSP. The conference agreement reduces the recommended increase to $12,000,000 and funds the program in the correct program element, which eliminates the need for a transfer of funds. The additional $12,000,000 is for a new program to establish a clearinghouse for information related to the protection of vital systems data as addressed in the classified annex accompanying the House-passed fiscal year 1999 Department of Defense Appropriations bill.

SUPPORT TECHNOLOGIES--APPLIED RESEARCH

The conferees urge the Department of Defense to give strong consideration to the potential benefits, both military and civilian offered by the EXCEL Stern Cell process. Providing funding for the EXCEL program in fiscal year 1999 would ready technology for clinical trials and provide the nation with a new and aggressive treatment for individuals exposed to weapons of mass destruction.

GULF WAR ILLNESS

The conferees have provided $23,796,000 for Gulf War Illness research, an increase over the budget of $4,150,000. The conferees agree that within this increase, $3,000,000 may be provided for research into Gulf War Syndrome that includes multi-disciplinary studies of fibromyalgia, chronic fatigue syndrome, multiple chemical sensitivity and the use of research methods of cognitive and computational neuroscience.

NUCLEAR EFFECTS TESTING CAPABILITY

The conferees are concerned that insufficient resources and attention are being paid to ensure the continued survivability of weapon platforms and supporting C3I systems from the effects of a nuclear explosion, particularly in light of India and Pakistan's recent nuclear testing. With the termination of underground nuclear testing and the emerging nuclear capability of rogue states, there is an urgent national security requirement for continued above ground qualification and verification testing of new and upgraded military components and subsystems. The conferees agree that the current industry-based Defense Threat Reduction Agency X-ray simulator program should have increased funding for timely development of affordable pulsed power based x-ray test capabilities that were lost with the cessation of underground nuclear tests and encourage the Department to fund this program at adequate levels in future budgets.

Developmental Test and Evaluation, Defense

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
--------------------------------------------------------------------------------------
                                                    Budget   House  Senate Conference 
--------------------------------------------------------------------------------------
DEVELOPMENTAL TEST & EVAL. DEFENSE:                                                   
CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT 122,169 134,669 122,169    131,669 
DEVELOPMENT TEST AND EVALUATION                     96,253  96,253  94,253     94,253 
--------------------------------------------------------------------------------------

[Page: H8715]

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
--------------------------------------------------------------------------------------
                                                    Budget   House  Senate Conference 
--------------------------------------------------------------------------------------
CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT 122,169 134,669 122,169    131,669 
Airborne separation video system                         0   9,500       0      8,000 
Roadway simulator                                        0   3,000       0      1,500 
--------------------------------------------------------------------------------------

Operation Test and Evalaution, Defense

The conference agreement on items addressed by either the House or the Senate is as follows:


[In thousands of dollars]
------------------------------------------------------------------------
                                        Budget  House Senate Conference 
------------------------------------------------------------------------
OPERATIONAL TEST & EVALUATION, DEFENSE:                                 
LIVE FIRE TESTING                        9,934 19,934  9,934     18,934 
------------------------------------------------------------------------

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
----------------------------------------------------------
                          Budget  House Senate Conference 
----------------------------------------------------------
LIVE FIRE TESTING          9,934 19,934  9,934     18,934 
Vulnerability assessments      0  4,000      0      4,000 
Modeling and simulation        0  6,000      0      5,000 
----------------------------------------------------------

TITLE V--REVOLVING AND MANAGEMENT FUNDS

The conferees agree to the following amounts for Revolving and Management Funds programs:


[In thousands of dollars]
-------------------------------------------------------------------------
                                       Budget   House  Senate Conference 
-------------------------------------------------------------------------
Defense Working Capital Funds          94,500  94,500  94,500     94,500 
National Defense Sealift Fund         418,166 673,366 669,566    703,366 
Total, Revolving and Management Funds 512,666 767,866 764,066    797,866 
-------------------------------------------------------------------------

Defense Working Capital Funds

The conferees agree to provide $94,500,000 for the Defense Working Capital Fund.

COMMISSARY FUNDING

In view of the Department of Defense decision to move the appropriations requested in support of commissary operations back into the Military Services' operation and maintenance accounts, the conferees expect to see a significant adjustment in the fiscal year 2000 budget request for the Defense Commissary Agency (DeCA) headquarters. The conferees direct the Department of Defense to report to the congressional defense committees on the adjusted responsibilities and purposes of the DeCA headquarters organization in light of this development, no later than December 1, 1998.

National Defense Sealift Fund

The conferees agree to provide $708,366,000, an increase of $290,200,000 to the budget request. The increase consists of $251,400,000 for a Large Medium Speed Roll-on/Roll-off (LMSR) ship, $28,800,000 to be transferred as specified in the House bill, and $10,000,000 only for Marine Corps' maritime prepositioning ship research and development.

In fiscal year 1997, the Congress provided $250,000,000 above the budget as an initiative to enhance the capabilities of the Maritime Prepositioning Force through procurement of two ships. The Congress recognized that these ships could not only significantly enhance the capability of the Marine Corps during combat operations but also provide a strategic national asset. In order to expedite fielding of the ships, the Marine Corps chose to convert used commercial ships rather than build new ones. The conferees recently discovered that, as was the case in conversion of used commercial ships for Army strategic sealift, the second and third MPF-E ship conversions have suffered significant cost and schedule difficulties. The conferees understand that the Navy issued a solicitation for the third MPF-E ship, but subsequently cancelled it after issues arose on the second ship. The conferees further understand that the Marine Corps must now divert a substantial amount of funds from the third ship to finance increased costs on the second ship in order to make it viable. Given the unfortunate recent events in this program, the conferees have rescinded $65,000,000 from the fiscal year 1997 funds for the third MPF-E ship and direct the Department of the Navy to use the remaining funds for the first two ships in order to keep their fielding on track. Since the third ship is no longer viable, the conferees agree to provide $10,000,000 only for maritime prepositioning ship research and development to begin work on design of a new-construction ship to meet MPF-2010 requirements. The conferees suggest that the CVN-77 `transition-ship' model, to bridge from the capabilities of current MPF sealift ships to the objective future configuration, should be considered. The conferees direct the Secretary of Defense to develop and budget for a new-construction maritime prepositioning ship program and to report by February 1, 1999 to the congressional defense committees on how technical issues in the MPF-E conversion program will be resolved and the new-construction program implemented.

The conferees also agree to rescind funding appropriated in fiscal year 1996 for the National Defense Features (NDF) program by $20,000,000 because of serious funding shortages. The conferees continue to believe that the NDF program would provide great benefits to the defense sealift capabilities of the nation. Therefore, the conferees direct that the remaining $20,000,000 funding be available only for the NDF program and that no funds may be reprogrammed from this program without the approval of the Committees on Appropriations.

TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

The conferees agreement is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------------------------
                                                           Budget      House     Senate Conference 
---------------------------------------------------------------------------------------------------
Defense Health                                         10,055,822 10,127,622 10,337,322 10,149,872 
Chemical Agents and Munitions Destruction, Army           855,100    796,100    780,150    780,150 
Drug Interdiction and Counter-Drug Activities, Defense    727,582    764,595    742,582    735,582 
Office of the Inspector General                           132,064    132,064    132,064    132,064 
Total, Other Department of Defense Programs            11,770,568 11,820,381 11,992,118 11,797,668 
---------------------------------------------------------------------------------------------------

[Page: H8716]

Defense Health Program

EXPLANATION OF PROJECT LEVEL ADJUSTMENTS


[In thousands of dollars]
------------------------------------------------------------------------------------
                                                 Budget   House   Senate Conference 
------------------------------------------------------------------------------------
Epideremolysis Bullosa                                0   1,000        0      1,000 
Lyme Disease                                          0       0  [3,000]    [3,000] 
Brain Injury                                          0   1,500        0      1,500 
Breast Cancer                                         0  25,000        0   [25,000] 
Molecular Genetics                                    0   4,000        0      3,000 
Nervous System Studies                                0   5,000        0      4,000 
Ovarian Cancer                                        0  10,000        0     10,000 
Personel Identification Carrier                       0   7,300        0      5,000 
Post Polio                                            0   1,000        0      1,000 
POW Studies                                           0   1,000        0        750 
Prostate Cancer Research                              0  10,000        0          0 
Non-invasive Prostate/Coronary Reversal               0 (2,500)        0    [2,500] 
Proton Beam                                           0   6,000        0      4,000 
Air Force Research Laboratory                         0       0 (11,000)   (11,000) 
Alaska Federal Healthcare Partnership                 0       0    1,900      1,900 
Brown Tree Snakes                                     0       0    1,000      1,000 
Cancer Control Program                                0       0    5,600      5,600 
Center for Disaster Management                        0       0    [760]      [760] 
Disaster Management Training                          0       0    5,000      5,000 
Graduate School of Nursing                            0       0    2,300      2,300 
Military Health Services Information Management       0       0   10,000      8,500 
Military Nursing Programs                             0       0    5,000      5,000 
Pacific Island Health Care                            0       0    5,000      5,000 
PACMEDNET                                             0       0   10,000     10,000 
Uniformed Services University of Health Sciences      0       0  [8,310]    [8,310] 
Medical Research and Development                      0       0  250,000     19,500 
USTF reduction                                        0       0  -14,300          0 
------------------------------------------------------------------------------------

PACMEDNET

The conferees have provided $10,000,000 to continue this activity, including implementation of automated clinical practice guidelines and outcome management on an individual, as well as a population, basis.

MEDICAL RESEARCH ACTIVITIES

Within the Defense Health Program, the conferees provide an additional $19,500,000 for medical research activities conducted by the Department. The funds are to be used for research that focuses on issues pertinent to our military forces.

Such efforts would include: alcoholism research; sleep management; chemical weapons treatment; disease management; healthcare information protection; lung research; laser eye injury/eye cancer research and treatment; mustard gas anecdote; prostate diagnostic imaging; retinal display technology for cardiovascular research; smoking cessation; neurological examination equipment; digital mammography; Paget's disease; and pediatric asthma. The conferees direct the Deputy Secretary of Defense to work with the Surgeons General of the Services to establish a medical research program that satisfies military objectives in this area.

ABLATABLE DISC LASER VISION CORRECTION

The conferees are aware of the successful clinical trials involving laser vision correction technology and believe this could have the potential to enhance the combat effectiveness, especially in critical night operations, for nearsighted military personnel. The conferees therefore encourage the Department to determine the cost-effectiveness, utility and desirability of ablatable disc laser vision correction technology for military personnel.

SMOKING CESSATION

The conferees agree that not later than 60 days after enactment, effective tobacco cessation products and counseling may be provided for members of the Armed Forces (including retired members), former members of the Armed Forces entitled to retired or retainer pay and dependents of such members and former members who are identified as likely to benefit from such assistance in a manner that does not impose costs on the individual.

CHRONIC DISEASE MANAGEMENT

The conferees strongly request that the Department conduct a study of chronic disease management and the provision of comprehensive care for chronically ill patients outside the hospital emergency room. The conferees believe that such a study may result in a reduction in the number of emergency room visits for chronically ill patients and therefore has the potential to provide savings and a better quality of life.

DENTAL CARE POLICIES

The conferees direct the Secretary of Defense to prepare and submit a report regarding the policies, practices and experience of the uniformed services pertaining to the provision of dental care to dependents, 18 years of age and younger, of active duty members of the uniformed services to the defense congressional oversight committees not later than March 15, 1999.

IMPROVING PATIENT CARE

The conferees are encouraged by Department of Defense efforts to reengineer medical care in accordance with Program Decision Memorandum (PDM) number 1, directed by the Under Secretary of Defense for Personnel and Readiness, the Director of Program Analysis and Evaluation and the Surgeons General. This initiative should improve inpatient and out-patient care in several major urban centers and provide for greater efficiency in the Military Health System. The conferees strongly urge the Department to continue such reengineering efforts and direct the Department to provide a report to the congressional defense committees on subsequent initiatives to accomplish these goals by February 15, 1999.

GALLO INSTITUTE

The conferees strongly support the comprehensive efforts of the Cancer Institute of New Jersey and commend the work of the Gallo Institute to address prostate cancer.

Chemical Agents and Munitions Destruction, Army

The conference agreement is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------
                                           Budget   House  Senate Qty Conference 
---------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY                                        
CHEM DEMILITARIZATION--O&M                531,650 508,650 491,700        491,700 
CHEM DEMILITARIZATION--PROC               140,670 124,670 115,670        115,670 
CHEM DEMILITARIZATION--RDTE               182,780 162,780 172,780        172,780 
---------------------------------------------------------------------------------

Drug Interdiction and Counter-drug Activities, Defense

The conference agreement is as follows:


[In thousands of dollars]
---------------------------------------------------------------------------------------
                                                     Budget   House  Senate Conference 
---------------------------------------------------------------------------------------
Educate America's youth                              12,830  13,730  12,830     13,730 
Young Marines                                           500   1,400     500      1,400 
Increase safety of Citizens                          86,669 112,069 106,669    121,869 
Indiana HIDTA                                             0     500       0      1,000 
Gulf States Counter-drug Initiative C31               1,147  10,147   8,147     10,147 
Gulf States Counter-drug Initiative RCTA              2,209   3,209       0      3,809 
Multi-Jurisdictional Counter-drug Task Force          2,007   6,207       0      6,207 
C-26 Aircraft Photo Reconnaissance Upgrade                0   5,500       0      5,000 
Marijuana Eradication/Guard Counter-drug Activities       0   5,200   6,000      7,400 
Kentucky                                                  0   5,200   3,800      5,200 
Hawaii                                                    0       0   2,200      2,200 
Northeast Counterdrug Training Center                     0       0   2,000      2,000 
Counternarcotics Center at Hammer, WA                     0       0   5,000      5,000 
Reduce health and social costs                       72,936  72,936  72,936     72,936 
Shield America's frontiers                          301,334 325,334 329,334    306,334 
National Guard Cargo/Mail Inspection                 29,000       0  29,000          0 
National Guard General Support                      118,620 158,620 138,620    147,620 
Southwest Border Fence                                    0   5,000       0      3,000 
Caribean/eastern Pacific Surface Interdiction         8,500  12,500  16,500      8,500 
Southwest Border Information Systems                      0   4,000       0      2,000 
Break drug sources of supply                        253,813 240,526 220,813    220,713 
Southern Air Force Counter-drug Support              26,416   7,416  26,416     22,416 
Joint Interagency Task Force South                   23,063   7,663   6,063      6,063 
Operation Caper Focus                                     0  10,500       0          0 
Civil Air Patrol                                      1,187   3,800   1,187      1,187 
SOUTHCOM Observation/Spray Aircraft                       0   8,000       0          0 
Ground-based End Game--SOUTHCOM                      27,660  27,660  17,660     23,660 
Ground-based End Game--Mexico                        16,000  16,000  10,000      7,900 
Total                                               727,582 764,595 742,582    735,582 
---------------------------------------------------------------------------------------

[Page: H8717]

CARIBBEAN COUNTER-DRUG ENHANCEMENT

The conferees direct that up to $8,500,000 may be made available to support restoration of enhanced counter-narcotics operations around the island of Hispaniola, for procurement of 2 Schweizer observation/spray aircraft, and for upgrades for 3 UH-1N helicopters for Colombia.

Office of the Inspector General

The conferees agree to provide $132,064,000 for the Office of the Inspector General. Of this amount, $130,764,000 shall be for operation and maintenance activities and $1,300,000 shall be for procurement.

TITLE VII--RELATED AGENCIES

The conferees agree to the following amounts for Related Agencies:


[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                Budget   House  Senate Conference 
----------------------------------------------------------------------------------------------------------------------------------
Intelligence Community Management Account                                                      138,623 136,123 134,623    129,123 
Central Intelligence Agency Retirement and Disability System Fund                              201,500 201,500 201,500    201,500 
Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund  15,000  15,000  25,000     25,000 
National Security Education Trust Fund                                                           5,000   3,000   3,000      3,000 
----------------------------------------------------------------------------------------------------------------------------------

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

Details of the adjustments to this account are addressed in the classified annex accompanying this report.

TITLE VIII--GENERAL PROVISIONS

The conference agreement incorporates general provisions of the House and Senate versions of the bill which were not amended. Those general provisions that were amended in conference follow:

The conferees included a general provision (Section 8005) which amends language concerning transfer authority.

The conferees included a general provision (Section 8014) which amends language requiring the Department of Defense to report to the Congress on contracting out Department of Defense functions performed by ten or more Department of Defense personnel.

The conferees included a general provision (Section 8033) which amends House language to earmark funds for the Civil Air Patrol.

The conferees included a general provision (Section 8034) governing the activities of defense federally funded research and development centers (FFRDCs).

The conferees included a general provision (Section 8056) which amends Senate language authorizing intelligence activities.

The conferees included a general provision (Section 8058) which amends language recommending rescissions. The rescissions are:

Fiscal year 1988:

Shipbuilding and Conversion, Navy: Excess funds

-$19,431,327

Fiscal year 1989:

Shipbuilding and Conversion, Navy: Excess funds

-17,407,490

Fiscal year 1990:

Shipbuilding and Conversion, Navy: Excess funds

-18,974,163

Fiscal year 1991:

Shipbuilding and Conversion, Navy: Excess funds

-1,819,438

Fiscal year 1992:

Shipbuilding and Conversion, Navy: Excess funds

-3,307,524

Fiscal year 1993:

Shipbuilding and Conversion, Navy: Excess funds

-4,540,746

Fiscal year 1997:

Research, Development, Test and Evaluation, Defense-wide: THAAD

-67,000,000

Missile Procurement, Air Force: Classified program

-8,000,000

Fiscal year 1998:

Missile Procurement, Army: EFOGM

-12,800,000

Procurement of Weapons and Tracked Combat Vehicles, Army: MIAID

-6,700,000

Other Procurement, Army: NATO AGS

-24,000,000

Shipbuilding and Conversion, Navy: CVN Refueling

-35,000,000

Weapons Procurement, Navy: MA-31 target delay

-2,000,000

NULKA decoy delay

-15,000,000

WLQ-4 cancelled requirements

-1,500,000

Type 8B Mod 3 periscopes, cancelled requirement

-3,000,000

Other Navigation Equipment, contract savings

-1,700,000

Pollution Control Equipment, decommissioned ships

-3,600,000

Other training equipment, BFTT contract savings

-1,400,000

AN/SQQ-62 sonobouy, contract savings

-2,300,000

Subtotal

-28,500,000

Procurement of Ammunition, Navy and Marine Corps: JDAM

-12,560,000

Aircraft Procurement, Air Force: F-15 Advance Procurement

-8,934,000

Missile Procurement, Air Force: Classified program

-4,200,000

Procurement of Ammunition, Air Force: JDAM

-14,106,000

Other Procurement, Air Force: Classified program

-3,508,000

NATO R&D, Vector

-3,000,000

Navigation/ID systems

-1,000,000

Lightweight torpedo, contract savings

-1,500,000

High Power Discriminator

-15,000,000

Subtotal

-20,500,000

Terminated AAIS program

-3,200,000

NATO JSTARS

-7,000,000

Classified program

-7,420,000

Subtotal

-17,620,000

Defense features

-20,000,000

MPF-E third ship program delay

-65,000,000

The conferees included a general provision (Section 8080) which amends House language making funds available for Reserve peacetime support to active duty and civilian activities.

The conferees included a general provision (Section 8083) which amends a Senate provision transferring funds to cover unanticipated shipbulding cost increases.

The conferees included a general provision (Section 8090) which amends House language regarding the use of refunds from Government travel cards.

The conferees included a general provision (Section 8095) which amends a Senate provision requiring the Department of Defense to identify costs incurred by the Department of Defense to support the North Atlantic Treaty Organization.

The conferees included a general provision (Section 8099) which amends Senate language concerning reciprocal trade agreements and the condition under which the Secretary of Defense may issue waivers to the Buy America Act.

The conferees included a general provision (Section 8101) to provide permanent clarification of the application of the `Brooks Act' qualifications based selection (QBS) process to surveying, mapping, charting and geodesy contracts of the National Imagery and Mapping Agency (NIMA). The conferees expect the officials responsible for the Federal Acquisition Regulations (FAR) to strike and revise the last sentence of section 36.601-4(a)(4) of the FAR (48CFR 36.601-4(a)(4)) to define `Surveying and mapping' in such a manner as to include contracts and subcontracts for services for Federal agencies for collecting, storing, retrieving, or disseminating graphical or digital data depicting natural or man made physical features, phenomena and boundaries of the earth and any information related thereto, including but not limited to surveys, maps, charts, remote sensing data and images and aerial photographic services.

The conferees have included a general provision (Section 8105) which amends Senate language reducing funds available to the Department of Defense by $70,000,000 for efficiencies realized as a result of the Defense Reform Initiative.

The conferees included a general provision (Section 8106) which amends House language requiring the Secretary of Defense to submit an in-depths analysis of any proposed establishment or expansion of depot facilities by the Reserve components.

The conferees included a general provision (Section 8109) which amends Senate language on National Defense Stockpile Asset sales.

The conferees included a general provision (Section 8110) which amends House language related to the transfer of specific ships under certain conditions.

The conferees included a general provision (Section 8114) which amends House language regarding the Cavalese, Italy accident.

The conferees included a general provision (Section 8115) which amends Senate language regarding limitations on deployment of United States forces to Yugoslavia, Albania, or Macedonia.

The conferees included a general provision (Section 8116) which amends House language prohibiting the expenditure of funds on developing or modernizing any information technology or national security system until that system has been independently certified as Year 2000 compliant.

The conferees included a general provision (Section 8117) which amends House language requiring the Department to include Year 2000 simulations as part of their major military exercises.

The conferees remain concerned about the progress the Department is making in bringing its systems into Year 2000 compliance. However, the conferees are encouraged by the actions outlined in recent letters from the Secretary of Defense and Deputy Secretary of Defense regarding Year 2000 compliance. The conferees believe a strong and sustained effort by the Department is critical to minimizing the risk.

The conferees included a general provision (Section 8119) which amends Senate language requesting a report on the need for food stamp assistance by military families.

The conferees included a general provision (Section 8120) which amends House language prohibiting the Department from contracting with the People's Republic of China (PRC) or the People's Liberation Army of the PRC.

The conferees included a general provision Section 8124) which amends Senate language regarding a vessel scrapping pilot program.

The conferees included a general provision (Section 8125) which amends Senate language providing funds for work performed at Fort Wainwright, Alaska.

The conferees included a general provision (Section 8128) which amends Senate language to express a sense of Congress regarding the use of child soldiers in armed conflicts.

The conferees included a new general provision (Section 8131) which waives limitations on expenditures for the National Guard Youth ChalleNGe Program for fiscal year 1999.

The conferees included a new general provision (Section 8132) which allows the Air Force to convey surplus relocatable shelters.

The conferees included a new general provision (Section 8133) which amends Senate language regarding the donation of surplus dental equipment to Indian Health Service facilities.

The conferees included a new general provision (Section 8134), reducing funds in Title III, Procurement, by $142,100,000. The House had recommended reducing the budget request by $142,100,000 in Title II, Operation and Maintenance, in order to reduce total funding requested for advisory and assistance services. The conferees have instead agreed to levy a $142,100,000 reduction against Title III.

The conferees included a new general provision (Section 8135) which reduces funding available for the Military Personnel and Operation and Maintenance accounts by $193,600,000 due to foreign currency fluctuation.

The conferees included a new general provision (Section 8136) which reduces funding available for the Operation and Maintenance accounts by $502,000,000 due to declining prices for bulk fuel.

The conferees included a new general provision (Section 8137) concerning the Global Positioning System. Section 8137 requires the Secretary of Defense to develop strategy to protect the integrity of the GPS frequency spectrum against interference and disruption. The conferees expect this strategy to be devised with the support of the Secretaries of State, Commerce, and Transportation, the director of the Office of Science and Technology Policy, and interested user and industry representatives. The required report shall include plans for collection and analysis of test and demonstration data to be completed in time for presentation by the United States at the World Radiocommunications Conference 2000. The report shall also include recommendations for additional filings for both space-based and ground-based services, as appropriate, to meet civil safety-of-life applications within existing international spectrum bands allocated for radionavigation satellite operations.

The conferees included a new general provision (Section 8138) which requires the Secretary of Defense to submit a report regarding military deployment rates for each service.

The conferees have included a general provision (Section 8139) which amends Senate language directing the Secretary of the Air Force to convey property at the former Pease Air Force Base to the Town of Newington, New Hampshire.

The conferees have included a new general provision (Section 8142) which allows the Secretary of Defense to retain family housing at Fort Buchanan, Puerto Rico.

The conferees have included a new general provision (Section 8143) which allows the Secretary of the Navy to convey the Magnolia housing area to the City of Seattle, Washington.

The conferees have included a new general provision (Section 8144) which conveys an Army Reserve Center in Reading, Pennsylvania to the City of Reading, Pennsylvania.

The conferees have included a new general provision (Section 8145) which directs the Secretary of the Air Force to obligate up to $7,646,000 of previously appropriated funds for demolition and related environmental restoration of 31 buildings at the former Norton Air Force Base, California. Sufficient funds remain available for obligational adjustments within `Base Realignment and Closure Account, Part I' to absorb this cost within existing balances in the Base Realignment and Closure Accounts.

The conferees have included a new general provision (Section 8146) which establishes a cash objective and policy for unbudgeted operating losses in the Defense Working Capital Funds.

The conferees have included a new general provision (Section 8147) which addresses the Military Personnel Information Systems. The conferees concur in the direction in the House Report regarding military personnel information systems and the revised Defense Integrated Military Human Resources System (DIMHRS). Section 8147 establishes a revised DIMHRS program, a defense reform initiative enterprise pilot program for military and manpower personnel information systems. Manpower and personnel information systems shall include, but not be limited to, personnel, manpower, training, and compensation. Health and dependent systems should only be included for interoperability and coordination purposes. The conferees have provided the budget request for DIMHRS and the Navy Standard Integrated Personnel System (NSIPS) and direct that DIMHRS funding be used for the revised DIMHRS enterprise level pilot program. The conferees direct DoD to provide full funding for this revised program in future budget requests and defense plans. The conferees have provided an additional $38,000,000 in Operation and Maintenance, Defense-Wide and $12,000,000 in Procurement, Defense-Wide and direct these funds be obligated as directed in the House Report.

The Department shall identify, develop and approve strategic functional requirements for the current and revised enterprise DIMHRS program through the Under Secretary of Defense for Personnel and Readiness, and in full coordination with the individual services and Joint Chiefs, no later than nine months from the date of enactment of this Act. The DoD Chief Information Officer and Director, Program Analysis and Evaluation, shall establish and incorporate into the budget process mission performance goals and measures and identify functional savings resulting from business process improvements. The Department shall identify changes to the planning, programming, and budgeting system needed to implement the revised DIMHRS enterprise solution including, but not limited to, instituting program elements and activity based costing for this enterprise solution. The conferees direct that configuration management and budget oversight of all manpower and personnel legacy systems be centralized with day to day operational management remaining with the services. The Department shall provide a report to the Appropriations Committees by May 1, 1999 on the revised enterprise DIMHRS, and how the revised program, budget changes and business process improvement changes comply with Appropriations Committee direction and with Public Laws 104-106 and 103-62.

The conferees included a new general provision (Section 8148) regarding a review of military compensation. The conferees are deeply concerned with the increasing demands placed on our military personnel, which affect the ability to recruit and retain the highly skilled personnel needed to maintain the all-volunteer force. Operating tempos, particularly for those forces deployed in support of contingency operations, are at historic high rates at the same time force structure has been reduced. People are working harder and under more challenging circumstances. At the same time, outside employment opportunities for highly skilled military personnel, especially in certain career fields, are readily available due to the nation's prolonged period of economic prosperity. In this environment, while none of our military personnel serve for financial advancement, we should not expect them to serve and suffer financial hardship.

These competing demands are being compounded by a widespread perception within the force that there has been, and will continue to be, a steady erosion in those programs associated with military compensation and benefits. For example, the conferees note that while the Administration has in recent years proposed increases in pay rates consistent with existing legal limits, those increases have not reversed the gap between military and private compensation. Of even more concern, it is becoming steadily more apparent that the changes in the military retirement system enacted in 1986 are having a direct impact on the services' reenlistment rates, and have raised fundamental questions of equity between those service members who are under the previously established retirement structure and those who have joined the force since 1986. Finally, the conferees continue to observe persistent problems in other programs intended to provide for an adequate quality of life for service members and their families, including medical care, housing programs, and family support programs. The conferees are convinced that these problems, coupled with the high level of demands being placed on the force and the effects of a healthy economy, are directly responsible for the emergence of downward trends in recruiting and retention of personnel. If these interweaving issues are not dealt with soon, and in a meaningful manner, the conferees fear it could inevitably result in a dramatic decline in the capability of the nation's armed forces.

The conferees believe that a long-term solution to these issues cannot be found by simply focusing on one aspect of these problems, such as pay or retirement, in isolation from the others. The complexity of these issues requires a more broad approach if the Department of Defense is to truly address the new and different demands confronting the military force of the future. Therefore, in Section 8148, the conferees direct the Secretary of Defense, in consultation with the nation's senior military leadership, to undertake a comprehensive reassessment of the array of existing compensation and benefit programs, and the need, if any, for changes in these programs in order to meet both future manpower and quality of life requirements. The conferees intend that this effort provide the underpinning for a total review of these programs and issues by both the executive and legislative branches as soon as possible, and therefore direct that the Secretary provide an interim report on these issues to the congressional defense committees within 60 days of the enactment of the fiscal year 1999 Department of Defense Appropriations Act. In order to provide for full consideration of these matters in the next Congress, the Secretary is also directed to provide his recommendations on these issues to the Congress in conjunction with submission of the fiscal year 2000 budget request.

[Page: H8719]

CONFERENCE TOTAL--WITH COMPARISONS

The total new budget (obligational) authority for the fiscal year 1999 recommended by the Committee of Conference, with comparisons to the fiscal year 1998 amount, the 1999 budget estimates, and the House and Senate bills for 1999 follow:

NEW BUDGET (OBLIGATIONAL) AUTHORITY, FISCAL YEAR 1998

$247,708,522,000

BUDGET ESTIMATES OF NEW (OBLIGATIONAL) AUTHORITY, FISCAL YEAR 1999

250,998,803,000

HOUSE BILL, FISCAL YEAR 1999

250,727,097,000

SENATE BILL, FISCAL YEAR 1999

250,518,092,000

CONFERENCE AGREEMENT, FISCAL YEAR 1999

250,510,548,312

Conference agreement compared with:

New budget (obligational) authority, fiscal year 1998

+2,802,026,312

Budget estimates of new (obligational) authority, fiscal year 1999

-488,254,688

House bill, fiscal year 1999

-216,548,688

Senate bill, fiscal year 1999

-7,543,688

BILL YOUNG,

JOE MCDADE,

JERRY LEWIS,

JOE SKEEN,

DAVID L. HOBSON,

HENRY BONILLA,

GEORGE R. NETHERCUTT, JR.,

ERNEST J. ISTOOK, JR.,

RANDY `DUKE' CUNNINGHAM,

BOB LIVINGSTON,

JOHN P. MURTHA,

NORMAN D. DICKS,

W.G. (BILL) HEFNER,

MARTIN OLAV SABO,

JULIAN C. DIXON,

PETER J. VISCLOSKY,
Managers on the Part of the House.

TED STEVENS,

THAD COCHRAN,

PETE V. DOMENICI,

CHRISTOPHER S. BOND,

MITCH MCCONNELL,

RICHARD C. SHELBY,

JUDD GREGG,

KAY BAILEY HUTCHISON,

DANIEL K. INOUYE,

ERNEST F. HOLLINGS,

ROBERT BYRD,

PATRICK J. LEAHY,

DALE BUMPERS,

FRANK R. LAUTENBERG,

TOM HARKIN,

BYRON DORGAN,
Managers on the Part of the Senate.

END