Index

                                     57 992                                 

                                       1999                                  

                          106 th Congress  1st Session                      

                            HOUSE OF REPRESENTATIVES                        

                                      Report                                 

                                      106 244                                 


                                                                             

                                                                         


                                                                         



                          DEPARTMENT OF DEFENSE                          

                        APPROPRIATIONS BILL, 2000                        



                                                                           


                                  REPORT                                 


                                  of the                                 


                       COMMITTEE ON APPROPRIATIONS                       


                              together with                              


                             ADDITIONAL VIEWS                            

                         [To accompany H.R. 2561]                        


[Graphic Image Not Available]

   July 20, 1999.--Committed to the Committee of the Whole House on the  
 State of the Union and ordered to be printed                            

                            C O N T E N T S                             
         Bill Totals                                                                   1
         Committee Budget Review Process                                               4
            Introduction                                                               4
            Basis for Committee Recommendations                                        5
            The President's Fiscal Year 2000 2005 Defense Program                      5
            Neglect of Traditional Appropriations and Acquisition Program Practices    8
            ``Lessons Learned'' from Recent Military Operations                        10
            Shortages of Low-Density, High Demand Assets                               13
            United States Air Force--At a Crossroads?                                  13
            Air Force Modernization Issues                                             16

    22                                                                     

        17                                                                      

    22 Concerns                                                            

        17                                                                      

   Potential Alternatives                                                  

        19                                                                      

   Major Committee Recommendations                                         

        20                                                                      

          Air Force Program Reprioritization                            

        20                                                                      

                    Ensuring ``Lessons Learned'' Are Incorporated into  
          FY 2001 2006 Defense Planning                                 
        21                                                                      

          Ensuring Appropriations Process Integrity                     

        22                                                                      

          Multiyear Procurement                                         

        22                                                                      

          Addressing High Priority Shortfalls                           

        22                                                                      

          Ensuring a Quality Ready Force                                

        23                                                                      

          Modernization Programs                                        

        23                                                                      

          Reforms/Program Reductions                                    

        24                                                                      

          Tactical Reconnaissance                                       

        25                                                                      

          Information Assurance                                         

        26                                                                      

          Preparedness Against WMD Terrorist Attacks                    

        26                                                                      

   Committee Recommendations by Major Category                             

        28                                                                      

          Active Military Personnel                                     

        28                                                                      

          Guard and Reserve                                             

        28                                                                      

          Operation and Maintenance                                     

        28                                                                      

          Procurement                                                   

        28                                                                      

          Research, Development, Test and Evaluation                    

        29                                                                      

   Forces to be Supported                                                  

        29                                                                      

          Department of the Army                                        

        29                                                                      

          Department of the Navy                                        

        30                                                                      

          Department of the Air Force                                   

        31                                                                      

   Title I, Military Personnel                                             

        33                                                                      

                    Programs and Activities Funded by Military Personnel
          Appropriations                                                
        33                                                                      

          Summary of Military Personnel Recommendations for FY2000      

        33                                                                      

   Overall Active End Strength                                             

        34                                                                      

   Overall Selected Reserve End Strength                                   

        34                                                                      

          Adjustments to Military Personnel Account                     

        35                                                                      

   Overview                                                                

        35                                                                      

   End Strength Adjustments                                                

        35                                                                      

   Pay and Retirement Reform                                               

        35                                                                      

   Basic Allowance for Housing                                             

        36                                                                      

   Aviation Continuation Pay                                               

        36                                                                      

   Unfunded Requirements                                                   

        36                                                                      

   JROTC Leadership Training                                               

        36                                                                      

   Quality of Life Study                                                   

        37                                                                      

   Guard and Reserve Forces                                                

        37                                                                      

   Full-Time Support Strengths                                             

        38                                                                      

   Guard and Reserve Full-Time End Strengths                               

        38                                                                      

          Military Personnel, Army                                      

        38                                                                      

          Military Personnel, Navy                                      

        40                                                                      

   AOE 1 Replenishment Ships                                               

        42                                                                      

          Military Personnel, Marine Corps                              

        42                                                                      

   Marine Corps Security Guards Detachments                                

        44                                                                      

          Military Personnel, Air Force                                 

        44                                                                      

          Reserve Personnel, Army                                       

        46                                                                      

          Reserve Personnel, Navy                                       

        48                                                                      

          Reserve Personnel, Marine Corps                               

        50                                                                      

          Reserve Personnel, Air Force                                  

        52                                                                      

   Test Support Mission                                                    

        54                                                                      

          National Guard Personnel, Army                                

        54                                                                      

   Army National Guard Workyear Requirements                               

        56                                                                      

          National Guard Personnel, Air Force                           

        56                                                                      

   Title II, Operation and Maintenance                                     

        59                                                                      

          Operation and Maintenance Overview                            

        62                                                                      

   Rotational Training Initiatives                                         

        63                                                                      

   Real Property Maintenance                                               

        63                                                                      

   Base Operations Support                                                 

        64                                                                      

   Depot Maintenance                                                       

        64                                                                      

   Spares and War Reserve Materiel                                         

        65                                                                      

   Force Protection Initiatives                                            

        65                                                                      

   Soldier Support Initiatives                                             

        66                                                                      

   Operating Tempo Funding                                                 

        66                                                                      

   Recruiting and Advertising                                              

        66                                                                      

   Small Business Advertising                                              

        67                                                                      

   Guard and Reserve Unfunded Requirements                                 

        67                                                                      

   Army Training Area Environmental Management                             

        67                                                                      

   Headquarters and Administrative Expenses                                

        67                                                                      

   Consultants and Advisory Services                                       

        68                                                                      

   Communications Services                                                 

        68                                                                      

   Security Programs                                                       

        68                                                                      

   Defense Finance and Accounting Service                                  

        69                                                                      

   Acquisition Contracting and Travel                                      

        69                                                                      

   Operation and Maintenance Budget Execution Data                         

        69                                                                      

   Operation and Maintenance Reprogrammings                                

        69                                                                      

   A 76 Studies                                                            

        70                                                                      

   Urban Warfare                                                           

        71                                                                      

   Controlled Humidity Preservation Program                                

        71                                                                      

          Operation and Maintenance, Army                               

        71                                                                      

   Logistics and Technology Project                                        

        74                                                                      

   Government-Owned, Contractor-Operated (GOCO) Facilities                 

        75                                                                      


   Humanitarian Airlift Aircraft                                           

        75                                                                      

   National Training Center Heliport Security                              

        75                                                                      

   Memorial Events                                                         

        75                                                                      

   General Purpose Tents                                                   

        76                                                                      

   Abrams Integrated Management Program                                    

        76                                                                      

   Information Technology Programs                                         

        76                                                                      

          Operation and Maintenance, Navy                               

        76                                                                      

   Oceanographic Research                                                  

        81                                                                      

   Naval Weapons Station Concorde                                          

        81                                                                      

   Portable Firefighting Equipment                                         

        82                                                                      

   Vieques Range Complex, Puerto Rico                                      

        82                                                                      

   Naval Air Station (NAS) LeMoore                                         

        82                                                                      

   Navy Electricity and Electronics Training Series                        

        83                                                                      

          Operation and Maintenance, Marine Corps                       

        83                                                                      

   Blount Island                                                           

        85                                                                      

          Operation and Maintenance, Air Force                          

        85                                                                      

   Interim Contractor Support                                              

        89                                                                      

   Manufacturing Technology Assistance Pilot Program                       

        90                                                                      

   McClellan Air Force Base                                                

        90                                                                      

   Enterprise Integration Program                                          

        90                                                                      

   REMIS                                                                   

        90                                                                      

          Operation and Maintenance, Defense-Wide                       

        90                                                                      

   Performance Measures                                                    

        92                                                                      

   DLA Warstoppers                                                         

        93                                                                      

   Defense Acquisition University                                          

        93                                                                      

   Family Therapy Program                                                  

        93                                                                      

   Defense Finance and Accounting Service                                  

        93                                                                      

   Information Technology Programs                                         

        93                                                                      

   DLA Security Locks                                                      

        93                                                                      

   DLA Improved Cargo Methods                                              

        94                                                                      

   DTRA Treaty Implementation                                              

        94                                                                      

   Joint Chiefs of Staff (JCS)-Management Support                          

        94                                                                      

   JCS J MEANS                                                             

        94                                                                      

   OSD C4ISR                                                               

        94                                                                      

   OSD Near East/South Asia Center for Security Studies                    

        94                                                                      

   OSD Middle East Regional Security Issues                                

        95                                                                      

   OSD Energy Savings Performance Contracts                                

        95                                                                      

   OSD Job Placement Program                                               

        95                                                                      

   OSD Youth Development and Leadership Program                            

        95                                                                      

   OSD Youth Development Initiative                                        

        95                                                                      

   OSD Management and Contract Support                                     

        95                                                                      

   WHS Emergency Notification                                              

        95                                                                      

   JCS Mobility Enhancements                                               

        95                                                                      

   National Curation Pilot Project                                         

        96                                                                      

   Information Systems Security Education                                  

        96                                                                      

   Improved General Purpose Tents                                          

        96                                                                      

   Department of Defense Education Activity                                

        97                                                                      

   Pine Bluff Arsenal Sustainment Training and Technical Assistance Program

        97                                                                      

   Legacy                                                                  

        97                                                                      

   Classified Program                                                      

        97                                                                      

          Operation and Maintenance, Army Reserve                       

        99                                                                      

          Operation and Maintenace, Navy Reserve                        

        99                                                                      

          Operation and Maintenance, Marine Corps Reserve               

        99                                                                      

          Operation and Maintenance, Air Force Reserve                  

        103                                                                     

          Operation and Maintenance, Army National Guard                

        105                                                                     

   Army National Guard Center                                              

        107                                                                     

   Armed Forces Reserve Center                                             

        107                                                                     

   National Guard Bureau Nationwide Fiber Optics Network                   

        107                                                                     

   National Guard Distance Learning                                        

        107                                                                     

   NGB Project Management System                                           

        107                                                                     

   Repair of UH 1 Engines                                                  

        108                                                                     

   Moffett Field and March Air Reserve Base                                

        108                                                                     

          Operation and Maintenance, Air National Guard                 

        108                                                                     

   National Guard State Partnership Program                                

        111                                                                     

   C 130 Operations                                                        

        111                                                                     

   159th Air National Guard Fighter Group                                  

        111                                                                     

          Overseas Contingency Operations Transfer Fund                 

        111                                                                     

   Budget Justification and Budget Execution Materials                     

        111                                                                     

   Kosovo Base Camp Construction                                           

        112                                                                     

          United States Court of Appeals for the Armed Forces           

        112                                                                     

          Environmental Restoration, Army                               

        112                                                                     

   Rocky Mountain Arsenal                                                  

        113                                                                     

   Environmental Remediation Contracts                                     

        113                                                                     

          Environmental Restoration, Navy                               

        113                                                                     

          Environmental Restoration, Air Force                          

        113                                                                     

          Environmental Restoration, Defense-Wide                       

        113                                                                     

          Environmental Restoration, Formerly Used Defense Sites        

        114                                                                     

   Camp Croft                                                              

        114                                                                     

   Lake City Army Ammunition Plant                                         

        114                                                                     

   Newmark                                                                 

        114                                                                     

          Overseas Humanitarian, Disaster, and Civic Aid                

        115                                                                     

          Former Soviet Union Threat Reduction                          

        115                                                                     

          Quality of Life Enhancements, Defense                         

        116                                                                     

   Title III, Procurement                                                  

        117                                                                     

          Estimates and Appropriations Summary                          

        117                                                                     

   Special Interest Items                                                  

        119                                                                     

   Classified Programs                                                     

        119                                                                     

   Rangeless Training                                                      

        119                                                                     

   Foreign Comparative Test New Starts                                     

        119                                                                     

   Air Force Interim Contractor Support                                    

        119                                                                     

   Reprogramming Procedures                                                

        120                                                                     

          Army Procurement Issues                                       

        120                                                                     

   Unfunded Requirements List                                              

        120                                                                     

          Aircraft Procurement, Army                                    

        121                                                                     

   Apache A Model Readiness                                                

        122                                                                     

          Missile Procurement, Army                                     

        124                                                                     


          Procurement of Weapons and Tracked Combat Vehicles, Army      

        126                                                                     

          Procurement of Ammunition, Army                               

        128                                                                     

   Program Manager for Ammunition                                          

        128                                                                     

   Self-Destruct Fuzes                                                     

        129                                                                     

          Other Procurement, Army                                       

        132                                                                     

   Family of Medium Tactical Vehicles                                      

        134                                                                     

   Information Technology Programs                                         

        134                                                                     

   Tactical Unmanned Aerial Vehicle (TUAV)                                 

        134                                                                     

          Aircraft Procurement, Navy                                    

        142                                                                     

   V 22 Aircraft                                                           

        143                                                                     

   KC 130J Aircraft                                                        

        143                                                                     

   Joint Primary Aircraft Training System                                  

        144                                                                     

   EA 6B Aircraft                                                          

        144                                                                     

   Consolidated Automated Support System                                   

        145                                                                     

   Advanced Tactical Airborne Reconnaissance System (ATARS)                

        146                                                                     

      Tactical Airborne Reconnaissance Pod System-Completely Digital       
   (TARPS-CD)                                                              
        146                                                                     

   Rescissions                                                             

        147                                                                     

          Weapons Procurement, Navy                                     

        149                                                                     

   JSOW                                                                    

        149                                                                     

   Rescissions                                                             

        149                                                                     

          Procurement of Ammunition, Navy and Marine Corps              

        151                                                                     

          Shipbuilding and Conversion, Navy                             

        153                                                                     

   Post Delivery Test and Trials                                           

        153                                                                     

   Rescissions                                                             

        153                                                                     

          Other Procurement, Navy                                       

        155                                                                     

   Pollution Control Equipment                                             

        156                                                                     

   Rescissions                                                             

        157                                                                     

          Procurement, Marine Corps                                     

        163                                                                     

          Aircraft Procurement, Air Force                               

        167                                                                     

    22                                                                     

        168                                                                     

    15                                                                     

        168                                                                     

    16                                                                     

        169                                                                     

   C 130J                                                                  

        169                                                                     

    8C                                                                     

        170                                                                     

   C 135 Modifications                                                     

        170                                                                     

    15 Modifications                                                       

        171                                                                     

   T 38 Modifications                                                      

        171                                                                     

          Missile Procurement, Air Force                                

        176                                                                     

   Minuteman III Guidance Replacement Program                              

        176                                                                     

   JSOW                                                                    

        177                                                                     

   Titan                                                                   

        177                                                                     

          Procurement of Ammunition, Air Force                          

        180                                                                     

          Other Procurement, Air Force                                  

        182                                                                     

          Procurement, Defense-Wide                                     

        187                                                                     

   Electronic Commerce Resource Centers                                    

        187                                                                     

   Information Technology Programs                                         

        188                                                                     

   Classified Programs                                                     

        188                                                                     

          National Guard and Reserve Equipment                          

        191                                                                     

   Fire Fighting                                                           

        191                                                                     

   Support to Non-Profit Agencies                                          

        192                                                                     

          Defense Production Act Purchases                              

        194                                                                     

          Information Technology                                        

        194                                                                     

   Year 2000 (Y2K) Computer Problem                                        

        195                                                                     

   Year 2000 (Y2K) Lessons Learned                                         

        195                                                                     

   Inadequate Information Technology Oversight                             

        196                                                                     

   Defense Joint Accounting System                                         

        197                                                                     

   Information Technology Oversight-Committee Recommendations              

        197                                                                     

   Financial Management Regulations                                        

        198                                                                     

   Standard Procurement System                                             

        199                                                                     

   Armor Officer Distance Learning                                         

        199                                                                     

   Power Projection C4 Infrastructure                                      

        199                                                                     

   Supercomputing Work                                                     

        199                                                                     

   Electricity and Electronics Training Series                             

        199                                                                     

   IMDS/REMIS                                                              

        199                                                                     

   DIMHRS                                                                  

        199                                                                     

   National Guard Bureau Nationwide Fiber Optics Network                   

        200                                                                     

   National Guard Distance Learning                                        

        200                                                                     

   Maintenance Automated Identification Technology                         

        200                                                                     

   Global Combat Support System--Army                                      

        200                                                                     

   Ammunition Automated Identification Technology                          

        201                                                                     

   National Guard Distance Learning-Courseware                             

        201                                                                     

   Joint Systems Education and Training Systems Development                

        201                                                                     

   Service Information Infrastructure Shortfalls                           

        201                                                                     

   Share in Savings                                                        

        201                                                                     

   Title IV, Research, Development, Test and Evaluation                    

        203                                                                     

          Estimates and Appropriation Summary                           

        203                                                                     

   Special Interest Items                                                  

        205                                                                     

   Classified Programs                                                     

        205                                                                     

   Technical Data                                                          

        205                                                                     

   Experimentation                                                         

        205                                                                     

   Information Assurance as Part of Independent Operational Testing        

        205                                                                     

   Special Termination Cost Clause                                         

        206                                                                     

   Joint Mission Planning System                                           

        206                                                                     

   Utilization of Small Business                                           

        206                                                                     

   Anti-Tank Weapons Master Plan                                           

        208                                                                     

   Tactical Radios                                                         

        208                                                                     

          Research, Development, Test and Evaluation, Army              

        208                                                                     

   Hunter Unmanned Aerial Vehicle (UAV)                                    

        212                                                                     

          Basic Research                                                

        213                                                                     

   Defense Research Sciences                                               

        213                                                                     

          Applied Research                                              

        213                                                                     

   Ballistics Technology                                                   

        213                                                                     

   Human Factor Engineering Technology                                     

        213                                                                     

   Environmental Quality Technology                                        

        213                                                                     

          Advanced Technology Development                               

        214                                                                     


   Medical Advanced Technology                                             

        214                                                                     

   Missile and Rocket Advanced Technology                                  

        214                                                                     

   Line-Of-Sight Technology Demonstration                                  

        214                                                                     

   Joint Tactical Radio                                                    

        214                                                                     

   Artillery Systems-Demonstration and Validation                          

        215                                                                     

   Operational Systems Development                                         

        215                                                                     

   Force XXI, Warfighting Rapid Acquisition Program                        

        215                                                                     

   Other Missile Improvement Programs                                      

        216                                                                     

   Aircraft Modifications/Product Improvement Program                      

        216                                                                     

          Research, Development, Test and Evaluation, Navy              

        221                                                                     

   Joint Experimentation                                                   

        226                                                                     

   Oceanographic and Atmospheric Technology                                

        228                                                                     

   Intercooled Recuperative Gas Turbine Engine                             

        228                                                                     

   JSOW                                                                    

        228                                                                     

   Aerial Targets                                                          

        229                                                                     

   Bone Marrow Registry                                                    

        229                                                                     

   Shared Reconnaissance Pod (SHARP)                                       

        229                                                                     

          Research, Development, Test and Evaluation, Air Force         

        236                                                                     

   Consolidation and Elimination of Small Programs                         

        236                                                                     

   AF/National Program Consolidation                                       

        236                                                                     

   Air Force Science and Technology                                        

        236                                                                     

   Wright Patterson Landing Gear Facility                                  

        236                                                                     

   Aerospace Propulsion Subsystems Integration                             

        241                                                                     

   Advanced Computing Technology                                           

        241                                                                     

   Crew Systems and Personnel Protection Technology                        

        241                                                                     

   Joint Strike Fighter                                                    

        242                                                                     

   B 2                                                                     

        242                                                                     

   Milstar                                                                 

        243                                                                     

   SBIRS High                                                              

        243                                                                     

   Development Planning                                                    

        244                                                                     

    16 Squadrons                                                           

        244                                                                     

    15 Squadrons                                                           

        245                                                                     

   Spacelift Range System                                                  

        245                                                                     

          Research, Development, Test and Evaluation, Defense-Wide      

        252                                                                     

          Basic Research                                                

        255                                                                     

   Chemical and Biological Defense Program                                 

        255                                                                     

          Applied Research                                              

        255                                                                     

   Historically Black Colleges and Universities                            

        255                                                                     

   Extensible Information Systems                                          

        255                                                                     

   Biological Warfare Defense                                              

        256                                                                     

          Advanced Technology Development                               

        256                                                                     

   Chemical and Biological Defense Program--Advanced Development           

        256                                                                     

   Verification Technology Demonstration                                   

        257                                                                     

   Advanced Concept Technology Demonstrations                              

        257                                                                     

   Ballistic Missile Defense                                               

        258                                                                     

   National Missile Defense Site Selection                                 

        259                                                                     

   Theater High Altitude Area Defense (THAAD)                              

        260                                                                     

   Medium Extended Air Defense System (MEADS)                              

        260                                                                     

   Russian American Observational Satellite (RAMOS)                        

        261                                                                     

   Space-Based Laser                                                       

        261                                                                     

   Sensor and Guidance Technology                                          

        261                                                                     

   Discoverer II                                                           

        262                                                                     

   Physical Security Equipment                                             

        262                                                                     

   Coalition Warfare                                                       

        262                                                                     

   Technical Studies, Support and Analysis                                 

        263                                                                     

   Strategic Environmental Research Program                                

        263                                                                     

   Defense Imagery and Mapping Agency Program                              

        263                                                                     

   Tri-Service Directed Energy Center                                      

        263                                                                     

   Special Operations Tactical Systems Development                         

        263                                                                     

   Information Technology Program                                          

        264                                                                     

          Developmental, Test and Evaluation, Defense                   

        269                                                                     

   Central Test and Evaluation Investment Program                          

        269                                                                     

          Operational Test and Evaluation, Defense                      

        271                                                                     

   Title V. Revolving and Management Funds                                 

        273                                                                     

          Defense Working Capital Funds                                 

        273                                                                     

   Defense Reutilization and Marketing Services                            

        273                                                                     

          National Defense Sealift Fund                                 

        273                                                                     

   Large Medium Speed Roll-On/Roll-Off (LMSR) Ships                        

        273                                                                     

   Maritime Prepositioning Force Enhancement Conversion                    

        274                                                                     

   National Defense Features                                               

        274                                                                     

   DOD Requirements for Commercial Tanker Ships                            

        275                                                                     

   Massachusetts Maritime Academy Training Ship                            

        275                                                                     

   Sealift Ship Leases                                                     

        275                                                                     

   Title VI. Other Department of Defense Programs                          

        277                                                                     

          Defense Health Program                                        

        277                                                                     

   Peer Reviewed Research                                                  

        278                                                                     

   Tricare Contracts and Pharmacy Costs                                    

        278                                                                     

   Custodial Care                                                          

        278                                                                     

   Fatigue Management                                                      

        279                                                                     

   Joint Diabetes Project                                                  

        279                                                                     

   Cervical Cancer Testing                                                 

        279                                                                     

   Gulf War Illness                                                        

        280                                                                     

   Computer Based Modeling in Health Care                                  

        280                                                                     

          Chemical Agents and Munitions Destruction, Army               

        280                                                                     

          Drug Interdiction and Counter-Drug Activities, Defense        

        283                                                                     

   Forward Operating Locations                                             

        283                                                                     

   Fingerprint Operations                                                  

        284                                                                     

   C 26 Aircraft Photo Reconnaissance Upgrade                              

        285                                                                     

   Drug Testing                                                            

        285                                                                     

   A 10 Logistical and Demilitarization Support                            

        285                                                                     

          Office of the Inspector General                               

        285                                                                     

   Title VII. Related Agencies                                             

        287                                                                     

          National Foreign Intelligence Program                         

        287                                                                     

   Introduction                                                            

        287                                                                     

   Classified Annex                                                        

        287                                                                     

                    Central Intelligence Agency Retirement and          
          Disability System Fund                                        
        287                                                                     

          Intelligence Community Management Account                     

        288                                                                     

                    Payment to Kaho'Olawe Island Conveyance,            
          Remediation, and Environmental Restoration Fund               
        288                                                                     

          National Security Education Trust Fund                        

        288                                                                     

   Title VIII. General Provisions                                          

        289                                                                     

          Definition of Program, Project and Activity                   

        289                                                                     

   Family of Medium Tactical Vehicles                                      

        289                                                                     

   B 52 Force Structure                                                    

        290                                                                     

   National Missile Defense                                                

        290                                                                     

   Aggressor Squadrons                                                     

        290                                                                     

   Advanced Concept Technology Demonstrations                              

        291                                                                     

   Medium Extended Air Defense System                                      

        291                                                                     

   Military Recruitment Financial Penalties                                

        291                                                                     

   House of Representatives Reporting Requirements                         

        291                                                                     

          Changes in the Application of Existing Law                    

        291                                                                     

   Appropriations Language                                                 

        292                                                                     

   General Provisions                                                      

        294                                                                     

          Appropriations Not Authorized by Law                          

        297                                                                     

          Transfer of Funds                                             

        299                                                                     

          Rescissions                                                   

        300                                                                     

          Compliance With Clause 3 of Rule XIII (Ramseyer Rule)         

        300                                                                     

          Constitutional Authority                                      

        301                                                                     

          Comparison with the Budget Resolution                         

        301                                                                     

          Five-Year Outlay Projections                                  

        302                                                                     

          Financial Assistance to State and Local Governments           

        302                                                                     

   Additional Views                                                        

        314                                                                     


106 th Congress                                                         

Report                                                                  

                                                                            

                                                                             

HOUSE OF REPRESENTATIVES                                                

1st Session                                                             

106 244                                                                 

                                                                        



       DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2000                         



                                                                         

  July 20, 1999.--Committed to the Committee of the Whole House on the   
 State of the Union and ordered to be printed                            
                                                                         

  Mr. Lewis of California, from the Committee on Appropriations,         
 submitted the following                                                 
 REPORT                                                                  

 together with                                                           

 ADDITIONAL VIEWS                                                        

 [To accompany H.R. 2561]                                                


      The Committee on Appropriations submits the following report in      
   explanation of the accompanying bill making appropriations for the      
   Department of Defense, and for other purposes, for the fiscal year      
   ending September 30, 2000.                                              
                                        BILL TOTALS                               

      Appropriations for most military functions of the Department of      
   Defense are provided for in the accompanying bill for the fiscal year   
   2000. This bill does not provide appropriations for military            
   construction, military family housing, civil defense, or nuclear        
   warheads, for which requirements are considered in connection with other
   appropriations bills.                                                   
      The President's fiscal year 2000 budget request for activities funded
   in the Department of Defense Appropriations Bill totals $263,265,959,000
   in new budget (obligational) authority. The amounts recommended by the  
   Committee in the accompanying bill total $266,061,503,000 in net new    
   budget authority. This is $2,795,544,000 above the budget estimate;     
   $15,540,955,000 above the sums made available for the Department of     
   Defense for fiscal year 1999 in the fiscal year 1999 Defense            
   Appropriations Act; and, in terms of the total authority available to   
   the Department of Defense in fiscal year 2000, $1,283,432,000 above the 
   sums made available for the Department of Defense for fiscal year 1999, 
   when fiscal year 1999 supplemental appropriations are included.\1\      
                                                                           

   \1\These figures include $16,095,949,000 in fiscal year 1999 emergency  
   defense funding included in Public Law 105 277, Omnibus Consolidated and
   Emergency Appropriations for Fiscal Year 1999, and Public Law 106 31,   
   Emergency Supplemental Appropriations for Fiscal Year 1999; and         
   $1,838,426,000 in Fiscal Year 2000 emergency defense funding also       
   included in Public Law 106 31.                                          

   Offset Folios 12 Insert here                                            



                              COMMITTEE BUDGET REVIEW PROCESS                     

      During its review of the fiscal year 2000 budget, the Subcommittee on
   Defense held a total of 17 hearings during the period of February 1999  
   to March 1999. Testimony received by the Subcommittee totaled 1,394     
   pages of transcript. Approximately half of the hearings were held in    
   open session. Executive (closed) sessions were held only when the       
   security classification of the material to be discussed presented no    
   alternative.                                                            
                                        INTRODUCTION                              

      The Committee's consideration of the fiscal year 2000 Defense        
   Appropriations bill comes as America's armed forces, and the plans and  
   budgets intended to support them and U.S. security demands in the       
   future, confront a series of difficult and interrelated challenges.     
      As evidenced by Operation Allied Force and other recent military and 
   humanitarian relief operations, the U.S. Armed Forces are still without 
   question the finest in the world. The overall quality and skill of      
   America's soldiers, sailors, airmen and marines remains unsurpassed. And
   U.S. training, equipment, and technology are, when considered in their  
   entirety, still superior to those of any potential adversary, as well as
   our allies. Even so, the immediate and long-term challenges confronting 
   the Department of Defense (DoD), the military services, and policymakers
   in the executive and legislative branches remain difficult and complex. 
      The international environment remains uncertain and potentially      
   explosive. Recent trends and developments involving Russia, China, India
   and Pakistan are assuredly not optimistic, while prospects for other    
   regional threats--including those which have dominated recent U.S.      
   military planning, North Korea, Iraq, and Iran--remain both unclear and 
   unsettling. Meanwhile, political instability persists in many regions,  
   as does the growing threat posed by the proliferation of technology.    
   Transnational issues such as ethnic conflicts, terrorism, the           
   international drug trade and increasingly, ``information age'' threats  
   continue to loom. And now, the United States, on the heels of a mission 
   in Bosnia which nears four years in duration, faces an even more        
   difficult and more protracted commitment to the Balkans in the wake of  
   the Kosovo conflict.                                                    
      Against this backdrop, the U.S. military--now having been drawn down 
   to the lowest force levels since the end of World War II--has been and  
   will doubtless continue to be engaged globally. Yet, even before the    
   recent hostilities involving Kosovo and Iraq, a combination of overseas 
   commitments, new missions, shrinking force structure, aging equipment,  
   and insufficient and, in some instances, misprioritized budgets joined  
   to bring the current and future readiness of the U.S. military into     
   question. These problems have created a punishing pace of operational   
   tempo and a decline in overall quality of life for servicemembers and   
   their families, which when combined with the effects of a strong        
   economy, have created a serious military manpower crisis. Within the    
   past year, for the first time in over two decades the U.S. Army, Navy   
   and Air Force have failed by significant margins to meet recruiting     
   goals, while these services' retention rates for experienced personnel  
   in critical specialty areas (such as Air Force pilots) have reached     
   dangerously low levels. In the meantime, serious readiness and weapons  
   modernization shortfalls persist. Recognizing these problems, both      
   Congress and now the Administration have proposed significant increases 
   in defense spending above previously planned levels.                    
                   Basis for Committee Recommendations                   

      The Committee strongly believes that, in many ways, this year is a   
   potential watershed for future defense planning, budgets, and programs. 
   It is significant that there now appears to be a general consensus      
   between the Administration and the Congress that the U.S. military's    
   operational, budgetary and programmatic needs call for a steady and     
   sustained increase in defense spending. Yet events of just the past     
   eight months--notably, the strengths and weaknesses displayed during the
   conduct of Operations Desert Fox and Allied Force; the deployment of    
   U.S. forces in support of the Kosovo Stabilization Force (KFOR); and the
   ongoing domestic debate over future government spending--combine to     
   reinforce serious questions regarding the prospects for and adequacy of 
   proposed defense budgets, be it the President's or Congressional        
   alternatives.                                                           
      Therefore, the Committee has endeavored to not only consider the     
   details of the Department's proposed fiscal year 2000 budget request,   
   but has also attempted to measure that budget and the new fiscal years  
   2000 2005 Future Years' Defense Plan (FYDP) against a number of factors.
   These include the international challenges cited above; the need to not 
   only plan for current DoD needs but those likely to be confronted in    
   2010, 2020 and beyond; and the already well-documented and articulated  
   manpower, readiness and modernization needs of the DoD generally and the
   services specifically.                                                  
      The Committee also gave careful consideration to three additional    
   areas in developing its recommendations:                                
      (a) The overall Federal budget debate and the strengths and          
   weaknesses of the Administration's defense budgets in that context;     
      (b) Neglect by certain DoD agencies of law, regulation and practices 
   concerning the use of appropriated funds, including the initiation of   
   new programs and diversion of funds provided for one purpose to another 
   without the required congressional notification or approval--events     
   which the Committee views as most troubling given the constitutional    
   imperative that appropriated funds be put to the uses specifically      
   delineated by the Congress; and                                         
      (c) The actual experience derived from the recent combat operations  
   involving Iraq and Yugoslavia; the degree to which the Future Years'    
   Defense Plan and the individual services' budgets address a series of   
   longstanding needs of the regional commanders-in-chief (CINCs) and our  
   forces in the field; and whether the nation's current national security 
   strategy (which calls for the U.S. military to carry out and win two,   
   near-simultaneous ``major theater wars'') can reasonably expect to be   
   supported given current defense planning and programming.               

          The President's Fiscal Year 2000 2005 Defense Program          

      The Committee finds, with some qualification, that the fiscal year   
   2000 budget and the overall fiscal years 2000 2005 defense program      
   announced by the President this February is a more realistic attempt to 
   match ``military means to goals'' than previous budget submissions. This
   new budget program calls for overall increases in previously planned    
   defense spending levels of approximately $112 billion over the period   
   2000 2005. Of this amount, a significant portion (nearly $35 billion) is
   targeted specifically at improving military pay and benefits, including 
   repeal of the military retirement program changes adopted in 1986. Other
   significant increases are programmed for readiness and operation and    
   maintenance funding generally, as well as critical weapons modernization
   programs.                                                               
      Despite these noteworthy proposals, the Committee remains deeply     
   troubled about whether this budget program can in fact meet both        
   immediate and longer-term national security challenges. Three specific  
   problems come to mind:                                                  
       The FY 2000 2005 Defense Budget Is Linked To Large Increases in     
   Overall Discretionary Spending: The President's new fiscal year 2000    
   2005 defense program proposes steady and sustained growth in defense    
   discretionary spending, from roughly $272 billion in FY 1999 (not       
   including enacted emergency supplemental appropriations) to about $330  
   billion annually in FY 2005. The Committee believes such growth is      
   justified, especially with numerous peacekeeping commitments and the    
   need to reinvigorate weapons modernization accounts. However, the       
   Committee also believes that it is a fair question to consider whether a
   defense program whose very viability hinges on such growth is in fact   
   realistic. The defense budget cannot be viewed in insolation from the   
   overall budget dynamic, involving spending levels for discretionary and 
   entitlement programs, potential changes in the the tax code, and        
   estimates of the government surplus.                                    
      Such questions about long-term budget levels are particularly        
   important to the DoD. Unlike most federal agencies, the DoD develops a  
   multi-year budget program with some degree of fidelity, essential for an
   agency with hundreds of major equipment procurement and developmental   
   efforts. Given the current uncertainty about the future budgetary       
   environment, the Committee views with some caution any long-term        
   revitalization plan for the DoD which has at its core an assumption of  
   very robust outyear defense spending levels. This is especially         
   important in light of plans being developed by each of the military     
   services to make long-term commitments to major production programs     
   which tend to ``squeeze'' other items in the budget to unacceptable     
   levels.                                                                 
       New, ``Unbudgeted'' Defense Budget Commitments Are Already Apparent:
   Since the budget was presented to the Congress in February, two new     
   developments have arisen which will require major revisions to the      
   existing DoD budget plan. The first involves Congressional action on    
   military pay and benefits, as expressed through both House- and         
   Senate-passed versions of the National Defense Authorization Act for    
   Fiscal Year 2000. The President's budget proposes a sizable increase    
   over previously programmed amounts for military compensation. Both the  
   House and Senate, most notably through increasing the size of the       
   proposed fiscal year 2000 military pay raise (from 4.4 to 4.8 percent), 
   but also through other initiatives, have now voted for authorization    
   changes which pose considerable unbudgeted outyear costs for the        
   DoD--perhaps more than $10 billion through fiscal year 2005.            
      Long-term, unbudgeted costs of continued contingency deployments are 
   also escalating, especially those resulting from NATO missions in the   
   Balkans. The Committee observes the current DoD budget plan was premised
   on a gradual drawdown of U.S. forces in Bosnia, with no funds budgeted  
   after fiscal year 2001 for any Balkan peacekeeping force or for         
   continued sanctions enforcement around Iraq. Until late last year, the  
   average cost of these two missions had appeared to stabilize at between 
   $1.5 2.0 billion per year. Realistically, one must assume there will be 
   costs of some greater magnitude from 2001 2005 stemming from continued  
   U.S. deployments associated with Bosnia and Iraq; and now, these        
   unbudgeted costs will be compounded by those resulting from Operation   
   Joint Guardian, the U.S. participation in KFOR. Using conservative      
   planning factors, the Committee believes these could result in up to $25
   billion in unbudgeted, unprogrammed costs over the FYDP.                
      The Committee believes it it essential that these issues be kept in  
   plain view as the Congress develops its defense spending recommendations
   for fiscal year 2000 and beyond. They clearly cast a long shadow over   
   DoD's overall Future Year's Defense Program, and the viability of       
   planned modernization budgets in particular since personnel and         
   readiness programs must continue to receive top budget priority.        
       ``Creative Accounting'' In The Fiscal Year 2000 Budget Request.-- Of
   immediate relevance to the Committee's consideration of the fiscal year 
   2000 defense appropriations request is what senior Department officials 
   have publicly conceded is a FY 2000 2005 program built largely on       
   optimistic economic assumptions and, for fiscal year 2000, ``one-time   
   initiatives'' which the Committee can most charitably describe as       
   ``creative accounting''. The most obvious and blatant of these are the  
   budget proposals to offset nearly $5 billion in new fiscal year 2000    
   programmatic increases with a like amount of budget authority           
   ``offsets''--a $3.1 billion reduction from a ``one-time'' proposal to   
   incrementally fund the fiscal year 2000 Military Construction program   
   (that is, providing only half the required budget authority needed to   
   actually complete proposed military construction projects); and an      
   unspecified cut of $1.65 billion (in the form of a proposed, non-program
   specific general reduction) embedded in the budget request for the      
   fiscal year 2000 Defense Appropriations bill.                           
      The Committee finds small solace in the refrain of many senior       
   Administration officials that its fiscal year 2000 defense budget ``has 
   a $12 billion increase'' over previous plans, much of which is for      
   critical personnel and readiness needs--when its budget really only pays
   for slightly more than half of those increases.                         
      In essence, the Department's FY 2000 budget tries to have it both    
   ways: it proposes needed increases in key programs, but ``offsets'' this
   growth with ``cuts'' having no substance.                               
      The Committee will not subscribe to such a ``quick fix'' mentality.  
   In both this bill, and the Military Construction bill reported by the   
   Committee, it has rejected these proposals out of hand. Rather, to meet 
   DoD's unfunded requirements, finance congressional initiatives and      
   backfill for the budget's creative accounting, the Committee proposes an
   increase over the total fiscal year 2000 defense spending level by the  
   President, combined with a wide range of program reductions, rescissions
   of previously appropriated funds and other initiatives. This approach is
   not only justified on the merits, but is a direct consequence of the    
   Administration's having sent up a fiscal year 2000 budget submission    
   which itself was ``oversubscribed'' by $4.75 billion.                   
 NEGLECT OF TRADITIONAL APPROPRIATIONS AND ACQUISITION PROGRAM PRACTICES 

      Adding to the difficulties confronting the Committee in its          
   consideration of the fiscal year 2000 budget request are serious        
   budgeting and funding execution issues regarding appropriations for     
   defense acquisition programs. These are occuring with increasing        
   frequency in both the budget requests submitted by the Department of    
   Defense as well as in the execution of program funding once             
   appropriations have been provided by the Congress. Throughout this      
   report there will be more specific descriptions of these and related    
   issues. Of particular concern is the failure of certain DoD entities to 
   comply with many existing procedures governing the expenditure of       
   appropriated funds.                                                     
      One of the highest duties of the Congress is to exercise the mandate 
   in Clause 7, Section 9, Article I of the Constitution of the United     
   States that ``No money shall be drawn from the Treasury but in          
   Consequence of Appropriations made by law.'' In terms of appropriations 
   provided to the Department of Defense, this mandate has evolved over    
   time as a result of statute, appropriations law, court rulings, and     
   executive branch regulations; decades of appropriations implementation  
   and resulting ``practices and rules''; and what the Committee regards as
   an ongoing discussion with the DoD and its component departments and    
   agencies over budget rules and appropriate procedures regarding the use 
   of appropriated funds.                                                  
      The Committee's perspective is one of ensuring that funds made       
   available in appropriations acts are in fact put to the use intended by 
   the elected members of Congress, under the terms and conditions the     
   Congress and the House and Senate Appropriations Committees place on the
   funding in question. This is a responsibility the Constitution clearly  
   intended for the Congress--the so-called power of the purse--and        
   therefore, the Committee does not take issues regarding the use of      
   appropriated funds lightly. However, given the sheer size, complexity,  
   and dynamism of both the real world and the funding environments that   
   the Department of Defense and the U.S. military operates, the Committee 
   is sensitive to and has in fact actively engaged the Department on      
   countless occasions to ensure that the DoD has the funding flexibility  
   it needs to respond rapidly to emerging circumstances. The Committee    
   notes that unless specific restrictions have been enacted into law, in  
   most instances the most restrictive rules require the DoD, in accordance
   with certain pre-established thresholds, to provide the Committee with  
   prior notification or, through the reprogramming process, to seek the   
   Committee's prior approval for contemplated funding shifts. All the     
   Committee demands is that these well-established procedures--many       
   enshrined in statute or appropriations law, not just custom or          
   practice--be followed.                                                  
      Regrettably, in recent years the Committee has observed a steady     
   erosion of departmental compliance with these standards, prompting the  
   Committee to actively address these problems in recent appropriations   
   acts and accompanying Committee reports. The Committee further observes 
   these abuses have generally been most numerous and blatant with respect 
   to defense acquisition programs--and of late, those managed by the      
   acquisition communities within the Department of the Air Force, the     
   Department of the Army, and the Office of the Secretary of Defense.     
      For example, with respect to the Air Force, despite recent Committee 
   direction and, in several instances, new appropriations law, the        
   Committee finds that both in execution of funds provided in             
   appropriations acts and in its fiscal year 2000 budget submission the   
   Air Force acquisition community continues to ignore and violate a wide  
   range of appropriations practices and acquisition rules. Details on     
   these specific instances can be found elsewhere in this report, but a   
   short summary of such Air Force abuses includes:                        
      (a) In its fiscal year 2000 budget the Air Force continues to        
   blithely ignore specific Committee direction and law intended to ensure 
   that funds appropriated for one purpose--for example, weapons           
   procurement--are in fact used for that purpose and not for other        
   efforts, such as research and development, by:                          
       (1) Requesting hundreds of millions of dollars in various           
   procurement programs, when in fact the intended use is to support       
   operation and maintenance funding needs (in violation of DoD policy);   
       (2) Requesting substantial procurement funds for a program (the F 22
   fighter) when in fact the use of the funds is for development (in       
   violation of specific Congressional direction), and                     
       (3) Requesting substantial development funds for a program (the     
   MILSTAR satellite), when the intent is to use the funds for procurement 
   (in violation of a provision of law);                                   
      (b) Violation of both new start program regulations and law, as well 
   as standard reprogramming procedures, by using fiscal year 1999 funds to
   begin a new start, several hundred-million dollar production program    
   which the Congress never formally approved (the C 5 avionics            
   modernization program)--and did so by diverting funds specifically      
   provided by the Congress for another program; and                       
      (c) Initiation of a new Special Access Program without prior         
   Congressional notification as required by law.                          
      Regarding the Army, it has in several instances ignored specific     
   Committee or House-Senate conference report direction on major programs,
   to include:                                                             
      (a) Entering into a new multi-year production contract for the Family
   of Medium Tactical Vehicles, despite specific Committee direction to    
   defer such action until it first identified and then formally submitted 
   to the Congress, an approved plan to fix significant technical and      
   safety problems plaguing thousands of vehicles already delivered and in 
   service;                                                                
      (b) Negotiating a multi-year production contract for the TOW Improved
   Target Acquisition System (ITAS) despite both fiscal year 1999 Committee
   and appropriations conference committee direction explicitly denying    
   approval of the ITAS multi-year contract; and                           
      (c) In conjunction with OSD, explicitly ignoring fiscal year 1999    
   conference committee direction and using Advanced Concept Technology    
   Demonstration funds for the Line-of-Sight Tank (LOSAT) program.         
      Regarding OSD acquisition officials, in addition to the example      
   involving LOSAT cited above, the Committee is little short of amazed    
   when it comes to their actions on the Medium Altitude Air Defense       
   (MEADS) program. This program was specifically terminated in the        
   conference report accompanying the fiscal year 1999 Defense             
   Appropriations Act. Internal DoD financial management documents issued  
   this spring noted this action and correctly stated that: ``This item has
   been denied by the Congress and is not subject to reprogramming''       
   (emphasis added). Nonetheless, the Committee has since learned that     
   officials in the OSD acquisition structure as well as in the Ballistic  
   Missile Defense Organization, an OSD acquisition organization, directed 
   the use of over $2 million of funds specifically provided for another   
   program to continue MEADS-related activities, and actually announced the
   winner of the MEADS contract competition. All for a program explicitly  
   terminated in the fiscal year 1999 appropriations process.              
      The Committee believes these and similar instances raise fundamental 
   questions regarding DoD program oversight and compliance with existing  
   law and regulations. The Committee is also compelled to note such       
   actions contribute to the Committee's uncertainty regarding the adequacy
   of the Department's proposed defense budget and program planning. The   
   extent of such problems gives the Committee little confidence that the  
   military service or defense agency in question is requesting            
   appropriations for its major acquisition programs based on solid cost   
   estimates, testing and production milestones, and firm estimates and    
   commitments to funding requirements. In this sense, such actions are    
   extremely corrosive to sensible program management, defense planning and
   budgeting. And it severely weakens the working relationship between the 
   executive branch--charged with proposing, then managing, programs if    
   funded--and the legislative branch, which in providing funding must have
   confidence that the budget and program proposals underlying the funding 
   requests in question are accurate and executable.                       
      The Committee could speculate as to the reason behind this growing   
   trend--for example, the pressure to deal with weapons modernization     
   demands following more than a decade of inflation-adjusted cuts in      
   funding--but to do so is to justify these practices. While sympathetic  
   to budget pressures, and aware of the desire of the acquisition         
   community to exercise as much control and flexibility over its programs 
   as possible, in keeping with its constitutional duties the Committee    
   simply cannot excuse violations of appropriations and acquisition law,  
   regulation and practice.                                                
           ``Lessons Learned'' From Recent Military Operations           

      The combat operations over Iraq and Yugoslavia (Operations Desert Fox
   and Allied Force, respectively) and their immediate aftermath have      
   already been instructive in terms of ``lessons learned''--not only for  
   DoD, the Joint Staff, the services, and the regional commands, but also 
   for others in the executive branch and Congress. These missions have    
   confirmed the wisdom of prudent investments over the years in so-called 
   ``force multipliers''. These include such programs as advanced          
   reconnaissance and intelligence collection; improved command, control   
   and communications; selective ``platform'' upgrades, such as night      
   attack capability for tactical strike assets, or conventional,          
   all-weather precision weapons delivery capability for the heavy bomber  
   force; and a new generation of precision-guided munitions.              
      Yet these technological improvements are only one aspect of the many 
   factors essential to battlefield success. While much attention is being 
   directed at the new capabilities brought to bear in these operations,   
   the Committee insists that without the less-glamorous ``basics''--such  
   as effective logistics systems; solid training; and most importantly,   
   keeping a highly motivated and quality force--our technological advances
   mean little.                                                            
      Accordingly, the Committee not only acknowledges the exemplary       
   performance of the U.S. forces deployed in direct support of these      
   operations, but all those who helped prepare, train, and equip those    
   forces. This provides a vivid reminder to Congress and the senior       
   leadership in the executive branch of the shared responsibility to work 
   in concert with the senior military leadership of the Department and the
   forces in the field to fashion a defense program which balances these   
   competing prerogatives.                                                 
      In keeping with this obligation, then, while laudatory of the        
   performance of U.S. forces in these recent engagements, the Committee   
   must register its deep concern over a number of issues which these      
   recent operations have highlighted.                                     
       Current Force Structure and Current Commitments Are Not In Balance. 
   --It is now all too apparent that the military services are not yet     
   properly reconfigured from their old ``Cold War'' orientation, or are   
   simply undermanned or underequipped in certain key categories, to meet  
   the Nation's emerging global commitments at an acceptable level of risk.
   In the immediate aftermath of the Yugoslav campaign, the Chiefs of Staff
   of Army and Air Force, in different yet equally compelling ways, have   
   brought this issue into sharp focus. The new Army Chief of Staff has    
   pronounced publicly that, without new and innovative thinking in his    
   service--including a fundamental restructuring of the Army's heavy and  
   light units--his service risks losing strategic and tactical relevance. 
   The Air Force Chief of Staff declares that the immediate well-being of  
   his service--stretched by years of unanticipated operations,            
   unprecedented rates of ``peacetime'' operational tempo, declining       
   readiness indicators, personnel turbulence and shortages, and now, two  
   major air campaigns within the past eight months--makes a lengthy       
   ``stand-down'', including a significant reprieve from overseas          
   deployments, essential if he is to properly reconstitute his force.     
      This Committee recognizes these are complex issues, with each Service
   facing its own unique challenges. But it is clear the strategy, roles   
   and missions, and force structure assumptions underpinning the          
   Quadrennial Defense Review (QDR) two years ago--which now form the basis
   of current DoD planning--must be revisited. This is a considerable      
   undertaking, made more difficult by the uncertain world situation, the  
   budget environment and many difficult resource allocation issues in each
   service. Nevertheless, the Committee expresses its conviction that, in  
   light of the additional commitments incurred by U.S. forces since the   
   QDR was conducted, as well as the serious personnel and readiness       
   problems that have emerged over the past few years, the Secretary of    
   Defense, the Chairman of the Joint Chiefs, the senior leadership of each
   of the military services, and ultimately, the President and the Congress
   must deal with these issues head on, as soon as possible.               
       Fundamental Problems Persist In Matching Resource Allocations To    
   Operational Requirements.-- For years, the Committee has expressed deep 
   concern that the DoD's annual budget submissions have consistently      
   failed to adequately address certain critical warfighting needs. This   
   disconnect was illustrated during the early stages of Operation Allied  
   Force, when the Air Force had to submit an urgent reprogramming request,
   and then an emergency supplemental budget request for the Conventional  
   Air-Launched Cruise Missile (the Air Force's only long-range, all       
   weather conventionally armed stand-off weapon), because inventories had 
   been drawn down to unacceptable levels. The Committee notes this problem
   would have been far worse had not the Congress in the mid-1990's        
   provided funding for 250 CALCMs, which had not been budgeted by the Air 
   Force or the DoD. Had this not occurred, CALCM would not have even been 
   available for Operations Desert Fox or Allied Force.                    
      The Committee also notes that many of the innovations which were used
   to great effect in Operation Allied Force--such as the use of B 2 and B 
   1 bombers in a conventional bombing role--are available now only because
   of congressional actions to both initiate and accelerate many of the    
   upgrades required for these missions. For example, the initial          
   deployment of a precision-guided conventional weapon on the B 2--which  
   served as a clear precursor to its subsequently being equipped with the 
   highly effective JDAM munition--was the so-called ``GATS GAM'' interim  
   weapon, a congressional initiative.                                     
      These examples, unfortunately, are symptomatic of many recent budget 
   decisions. The Committee has stated its view repeatedly that many       
   programs with strong warfighting applications ofttimes are given short  
   shrift in annual service budget submissions. The reasons for this vary, 
   but are usually found in either budget pressures, service parochialism, 
   and the aversion of many of the services' acquisition hierarchies to    
   upgrade existing systems (as opposed to developing a new system from    
   scratch). The Committee has also observed that these problems are       
   especially acute when the capability or system in question has a        
   ``joint'' or ``national'' character, and is needed by multiple services 
   or joint warfighting commands. Regrettably, even when such capabilities 
   are of great utility to forces in the field, they often involve missions
   or capabilities--such as logistics, transportation, intelligence        
   collection and reconnaissance, and electronic combat--which the military
   services often fail to consider on a par with what each considers its   
   core requirements.                                                      
               SHORTAGES OF LOW-DENSITY, HIGH-DEMAND ASSETS              

      The Committee is especially troubled as many of these deficiencies,  
   including shortages in so-called ``low-density, high-demand'' assets,   
   have been well known for some time. These include, but are not limited  
   to: electronic warfare aircraft and specialized jamming equipment;      
   tactical intelligence collection and dissemination assets (ranging from 
   collection assets such as the U 2, RIVET JOINT, AWACS and JSTARS        
   aircraft and tactical UAVs; interoperable, secure communications and    
   command and control, to include new data links and data fusion          
   capability); and tactical airlift, aerial refueling capability and other
   transportation and logistics support platforms and equipment. The       
   Committee has consistently supported additions over DoD budget requests 
   for such programs over the years. Nevertheless, continued shortages in  
   these and many other categories clearly posed operational constraints   
   during Operations Desert Fox and Allied Force. This not only impeded the
   regional commands charged with prosecuting the air campaigns, but also  
   other regional commanders who were confronted with the physical         
   diversion of assets from their areas of responsibility and other        
   unexpected resource shortfalls.                                         
      The Committee's concern about these problems is not new, and it has  
   demonstrated it will not shy from taking actions to ensure that our     
   forces in the field are not at risk or caught short. In this regard, the
   recently-enacted emergency supplemental appropriations act which        
   provided funding for the conduct of Operation Allied Force (Public Law  
   106 31) created a new appropriations account, the ``Operational Rapid   
   Response Transfer Fund'', that was expressly intended to provide a      
   funding source to meet immediate shortfalls and needs identified by the 
   regional CINCs. The Committee understands the Department will soon make 
   use of the $300,000,000 provided by the Congress in this fund to address
   some of these most urgent problems, such as those plaguing the limited  
   inventory of Navy EA 6B jamming aircraft. The Committee commends the    
   senior leadership of the Department for expeditiously following through 
   on the Congress' intent in this regard.                                 
      However, it is clear much more must be done. As with the questions   
   raised earlier in this report about the proper size and organization of 
   each of the military services, a continued failure by the DoD           
   generally--and the military services and defense agencies               
   specifically--to consistently link operational needs to decisions about 
   resource allocations and defense program development carries with it    
   serious implications for the ability of the U.S. military to carry out  
   the current national security strategy. This is not just a theoretical  
   discussion, nor one which the Committee believes can be deferred. The   
   Committee bill, across all services and defense agencies, is intended to
   bring these questions to the forefront--and in the instance of one of   
   the military services--the United States Air Force--the Committee       
   believes these problems are now so acute that it must take a series of  
   immediate and forceful steps.                                           
                United States Air Force--At A Crossroads?                

      The air campaigns against Iraq and Yugoslavia, which on the whole    
   featured an exemplary level of professionalism, technical sophistication
   and skill, were conducted and supported in large measure by the men and 
   women of the United States Air Force. To them, and their colleagues in  
   the other branches of the military and defense agencies who also played 
   important roles in these operations, the Committee expresses its        
   gratitude and respect for their service and bravery.                    
      In the Committee's view, this performance on the part of the Air     
   Force is all the more remarkable in light of the serious problems which,
   over the past few years, have increasingly beset this service as it     
   struggles with the twin dilemmas of redefining its role in the post Cold
   War era while being called to carry out an increasing number of missions
   with fewer people. Among the most serious of these problems:            

      --For the first time since 1979, the Air Force will miss its         
   recruiting goals for new enlistees--by nearly 2,600 individuals. This is
   especially noteworthy given the Air Force's success since the transition
   to an all-volunteer force in attracting many more potential recruits    
   than it actually requires.                                              
      --The Air Force also is coping with serious retention problems,      
   particularly in the midyear grades, with acute shortages in a large     
   number of specialty career fields ranging from air traffic controllers  
   to security police. Of considerable concern is that the Air Force is    
   already suffering from a steep shortage of pilots, with an existing     
   deficit of over 1,100 that is projected to approach 2,000 within the    
   next three years.                                                       
      --Overall Air Force readiness--as measured by the mission capable    
   rates of aircraft and other key systems--has steadily declined in each  
   of the past eight years, with an overall rating of less than 75 percent 
   (an eleven percent decline since 1991) prior to the onset of Operation  
   Allied Force.                                                           
      --In the past three years a major aviation spare parts shortfall has 
   arisen in the Air Force (as well as the Navy), due largely to faulty    
   estimates which failed to accurately reflect the effects of increased   
   operational tempo on aging equipment. Despite the appropriation of      
   roughly $2 billion over budgeted amounts for spare parts over the past  
   three years, continued operational demands and the time required to     
   procure the necessary parts and perform required maintenance make it    
   likely that Air Force operational readiness rates and equipment         
   availability will remain low for the foreseeable future.                
      --Despite the proposed increases in the President's budget           
   submission, major funding shortfalls persist across nearly all Air Force
   mission and functional areas. In February 1999 the Air Force Chief of   
   Staff submitted to Congress an ``unfunded priority list'' for fiscal    
   year 2000 alone of over $2.3 billion. The following month, in response  
   to a request from the House Armed Services Committee, senior Air Force  
   officials provided a detailed unfunded shortfall list covering the      
   period of the current Future Years Defense Plan (fiscal years 2000      
   2005). After adjusting this list (removing from it fiscal years 1999 and
   2000 needs tied to the contingency operations involving Iraq and Kosovo,
   most of which were dealt with in the emergency supplemental             
   appropriations act enacted in late May), the Air Force still documents  
   unfunded needs totaling over $14 billion (emphasis added).              
      All of these problems were present prior to the air campaigns against
   Iraq and Yugoslavia, which senior Air Force officials freely admit      
   stretched existing Air Force personnel and assets to the limit. For     
   example, during Operation Allied Force, the Air Force was compelled to  
   implement the so-called ``stop-loss'' program, whereby individuals whose
   terms of service were due to expire were formally notified that they    
   could be kept on active duty for an indefinite period owing to          
   operational needs. At the time stop-loss was invoked, the Air Force     
   indicated nearly 34,000 servicemembers in critical specialty areas could
   have their tours of duty involuntarily extended as a result of Operation
   Allied Force and the Air Force's other global missions.                 
      Air Force operational assets were also clearly taxed by Operations   
   Desert Fox and Allied Force. The most acute problems occurred in certain
   categories--such as reconnaissance, airlift, and aerial refueling--where
   the Air Force carries a disproportionate share of, if not the only,     
   capability within the U.S. armed forces to support major military       
   operations. The Air Force itself describes its unique capabilities as   
   ``Global Reach, Global Power''. One may then ask, can the Air Force     
   today or in the future deliver on this motto's promise? These weaknesses
   give the Committee doubts about the U.S. military's ability to carry out
   the ``near-simultaneous, two major theater war'' capability that the    
   national military strategy is premised upon. Of even greater concern is 
   the fact that the six-year Air Force budget program demonstrably falls  
   short of meeting both existing and projected requirements in these      
   critical areas.                                                         
      Now, following Operation Allied Force, the Air Force Chief of Staff  
   has made clear his view that the Air Force must conduct a ``stand-down''
   of at least several months duration, to reconstitute its forces and give
   its officers and airmen a chance to recover from the operational tempo  
   which is the root cause of many of the Air Force's personnel and        
   readiness problems. The Committee has been advised that this standdown, 
   as envisioned by the Air Force, would be of sufficient scope and length 
   that many current operational requirements being carried out by the Air 
   Force would either have to be transferred to the other services or left 
   unaddressed.                                                            
      The Committee believes such candor on the part of senior Air Force   
   leadership--clearly at variance from the typical ``can do'' attitude    
   which the military services often take to an extreme--deserves both     
   respect and careful consideration. It says much about the current state 
   in which the Air Force finds itself.                                    
      The Committee recognizes many of these problems are not of the Air   
   Force's making, nor could they have been forecast. Many stem from a     
   series of decisions and events which began in 1989 91, starting with the
   fall of the Berlin Wall, the resulting dissolution of the Warsaw Pact   
   and the Soviet Union, the Persian Gulf War, and the acceleration of a   
   major defense build-down in response to these events and federal budget 
   pressures. The Committee is well aware of the difficulties these changes
   posed for all the military services, and the Air Force in particular.   
      Moreover, the operational employment of U.S. forces has changed      
   markedly in recent years. The Air Force and its sister services not only
   continue to carry existing regional commitments and their potential     
   warfighting demands, but now find themselves regularly deployed on a    
   large scale on what had just a few years ago been called                
   ``non-traditional missions'', such as peacekeeping, peace enforcement,  
   and humanitarian relief operations. Each of the services--not just the  
   Air Force--have and will continue to struggle with these new missions.  
      With 20/20 hindsight, the Committee believes that the Air Force's    
   recognition of the scale of its modernization dilemma may have          
   inadvertently contributed to many of the personnel and readiness        
   problems it now confronts. The Committee remembers vividly how just two 
   years ago the then-Chief of Staff of the Air Force explained to the     
   Committee how his service had consciously decided to give up force      
   structure and manning levels in order to free up additional resources   
   for modernization. Now, that gamble, and others taken by this Service,  
   have come home to roost, leading to what the Committee believes is an   
   Air Force personnel and readiness crisis, even while the Air Force still
   confronts a modernization crisis of considerable size and scope.        
                      Air Force Modernization Issues                     

      It is indisputable that the Air Force has many unmet needs in        
   modernization, many of which were on clear display during Operation     
   Allied Force.                                                           
      There is a requirement for at least five additional Joint STARS      
   surveillance aircraft beyond those currently funded or budgeted--yet    
   after this year, the Air Force budget provides none.                    
      At least 20 percent of the KC 135 aerial refueling fleet--which uses 
   1950's and 1960's vintage airframes--has yet to be modernized with      
   improved engines and other equipment which will not only extend its     
   service life but greatly increase its operational flexibility and       
   availability. The Air Force budget fails to request even one tanker     
   conversion in its budget until fiscal year 2002.                        
      The Commander-in-Chief, U.S. Transportation Command, declares a need 
   for at least 150 C 130J tactical airlift aircraft--yet the Air Force    
   budget fails to buy any until fiscal year 2002 and active duty units are
   not scheduled to receive any new C 130's until 2006.                    
      Due to fiscal constraints the Air Force has restructured the         
   next-generation of early warning satellites used for detection of       
   ballistic missile launches, the Space-Based Infrared System-High and    
   -Low. In so doing, at least in the case of SBIRS-High, the Air Force has
   taken a fully funded, well-crafted acquisition program and within less  
   than nine months, restructured it into a higher risk program, with a two
   year slip in fielding, excessive concurrency between development and    
   production--and in the process generated an unfunded shortfall of nearly
   $100 million in its fiscal year 2000 budget.                            
      These are just a few examples where the Committee believes the Air   
   Force acquisition program and budget priorities are inconsistent with   
   actual need. Programs relied upon by forces in the field, and in some   
   instances the National Command Authority, are not funded adequately or  
   deferred. Other efforts, which may have some intrinsic merit but are    
   really nothing more than expensive demonstration projects, receive      
   increased budget allocations. Meanwhile, as described earlier in this   
   report, the Air Force acquisition community seems at times to be        
   completely oblivious to the legal and DoD policies in place governing   
   the proper use of appropriated funds.                                   
                                   f 22                                  

      The centerpiece of the Air Force's modernization program for at least
   the past decade, along with the C 17 transport aircraft, has been its   
   next generation air superiority fighter, the F 22. The F 22 was         
   originally conceived in the early 1980's to counter a projected threat  
   driven by the expectation that the then-Soviet Union would couple the   
   sheer size of its force structure with significant technological        
   advances in fighter and air-to-air technology. Following the demise of  
   the Soviet Union and the huge downsizing of the now Russian military,   
   the Air Force has continued development of the F 22 based largely on    
   what it states is its desire to guarantee air superiority over any      
   potential adversary for the foreseeable future. The original F 22       
   inventory objective of 750 aircraft has since been revised downwards, to
   a figure of 339 today, enough to equip three wings plus expected        
   attrition reserve requirements.                                         
      As currently configured, there is little doubt that the F 22, if it  
   meets its performance specifications, would far outclass any single     
   fighter known to be under development. Even with the change in the      
   threat environment, little of the F 22's high performance               
   characteristics have changed in the past decade. The Air Force would    
   concede that both development and production of the F 22 is indeed a    
   challenging task, for that is the purpose of the program--to develop a  
   fighter so capable that it will guarantee U.S. forces air superiority   
   for decades once it is fielded.                                         
      However, the ambitious technical goals of the F 22, which include a  
   series of new production processes as well as the most advanced avionics
   and electronics ever fielded on a U.S. aircraft, have led to a series of
   delays in the F 22 development program. Juxtaposed with the Air Force's 
   desired fielding schedule, this has led to a program whose recent       
   history has been marked by continual cost growth and whose current      
   acquisition profile would, even if examined in isolation, raise serious 
   questions about the overall affordability and feasibility of this       
   program.                                                                
      Given these factors, and the magnitude of other Air Force problems in
   personnel, readiness and modernization, the Committee decided to make   
   the F 22 a focus of its deliberations. The following sections cites the 
   key points which it took into consideration when making its             
   recommendations.                                                        
                                22 concerns                              

       F 22 has been experiencing technical problems.-- The F 22 has       
   experienced several technical problems including: manufacturing problems
   with titanium castings; delamination of longerons; structural weaknesses
   in aft fuselage; anomalies in brakes, inertial reference system and     
   environmental control system; nagging fuel leaks; problems with engine  
   low pressure turbine blades, high pressure turbine blades, and engine   
   combustors; and problems with excessive engine vibration. The Air Force 
   reports that there are 97 issues limiting aircraft operations and 68    
   issues limiting ground maintenance. There are already indications that  
   further flight testing in fiscal year 1999 will be curtailed while the  
   Air Force labors to correct these technical problems. While the         
   Committee recognizes that the sophisticated technology intended for use 
   in the F 22 makes such technical problems likely, it also must consider 
   that the successful resolution of these problems will further both delay
   schedules and drive up costs.                                           
       Affordability of the F 22 is questionable.-- Based on Air Force     
   acquisition reports, the F 22--even without further cost growth--is     
   projected to cost three times as much as the aircraft it replaces (the F
   15). The unit cost of the six F 22's proposed to be procured with fiscal
   year 2000 funds is $300 million per plane compared to a $55 million per 
   plane cost for the F 15. To finance such an expensive program, DoD's    
   modernization plan requires unprecedented levels of spending on tactical
   aircraft over the next 20 years. In fact, DoD's tactical aircraft       
   modernization plan requires twice the historical percentage of          
   procurement dollars to buy roughly half the number of aircraft.         

       The Air Force has not demonstrated it can control F 22 costs.-- Ten 
   years ago, the Committee recommended termination of the F 22 (then      
   called the Advanced Tactical Fighter) based in part on concerns over    
   cost growth and unrealistic budgeting. Then, the Air Force told the     
   Committee that F 22 development would cost $14 billion, a $900 million  
   increase from the estimate provided six months earlier. Since then, the 
   program has experienced a decade of cost growth with the current        
   estimate for F 22 development now exceeding $23 billion. In the last six
   months alone, the development cost increased another $700 million and   
   the production cost of just the first 6 aircraft increased $300 million.
      The Committee notes, that without any further cost growth, the F 22  
   program is budgeted for more than $23 billion over the next six years   
   alone, and has a ``total cost to complete'' of $40 billion assuming the 
   Air Force's current schedule, cost estimates, and inventory objective of
   339 remain static. Independent cost estimates developed within the      
   Pentagon, the Congressional Budget Office, and the General Accounting   
   Office all indicate that the Air Force production cost estimates are    
   excessively optimistic. For example, the Cost Analysis Improvement Group
   within the Office of the Secretary of Defense, responsible for          
   developing independent cost estimates for the Secretary, believes the F 
   22's total production costs are understated by at least $9 billion.     
       The current F 22 acquisition plan has a high potential for even     
   further cost growth.-- The F 22 is a technically challenging program    
   combining stealth, advanced sensors and avionics, and the ability to    
   cruise at supersonic speeds. The Air Force will not finish basic testing
   of these capabilities for another four years. To date, the program has  
   completed only five percent of the required testing. The advanced       
   sensors and avionics (perhaps the highest risk elements of the program) 
   have not been tested on the F 22 at all. Yet this year's budget proposes
   production funding for six aircraft.                                    
      Overall, the Air Force's acquisition strategy requires the purchase  
   of over $13 billion worth of aircraft before completion of basic        
   operational testing. The unit cost of these initial aircraft increased  
   40 percent over the last 2 years, and any problems found during the next
   four years of testing will simply add to these costs.                   
       U.S. has overwhelming numerical advantage of advanced fighters      
   without F 22.-- Current threat projections for 2010 indicate that the   
   United States will have a 5 to 1 numerical advantage of advanced        
   fighters against our most challenging adversaries without the F 22.     
   Against what could be considered the most likely medium term adversaries
   used in Air Force planning scenarios, the United States enjoys a numeric
   advantage of 26 of our advanced fighters for every one belonging to our 
   adversaries.                                                            
                          POTENTIAL ALTERNATIVES                         

      The Committee also examined potential alternatives to the current F  
   22 program, and makes the following findings.                           
       F 15 economic service life extends beyond 2015.-- The Air Force has 
   justified the need for the F 22 in part as a replacement for aging F 15 
   aircraft. However, service life data from the Air Force indicates that  
   the F 15 can exceed 16,000 flying hours without major structural        
   changes. The average age of the F 15 inventory is expected to be only   
   8000 flying hours by 2015.                                              
       F 15 can be improved to provide greatly enhanced combat             
   capability.-- F 15 combat capabilities can be improved substantially    
   with upgraded radars, jammers, and helmet mounted targeting systems. The
   most cost effective upgrade may be a new datalink which allows aircraft 
   to share target information. Air Force testimony to the Committee this  
   year described the so-called ``Link 16'' datalink as ``the most         
   significant increase in fighter avionics since the introduction of the  
   on-board radar.'' Tests with this $200,000 per aircraft upgrade to the F
   15 have demonstrated a five-fold increase in air combat kill ratios.    
      (The Committee fails to understand why the Air Force has neglected to
   budget for this modestly priced upgrade for all its combat coded F 15s, 
   while it chooses to request $150 million in fiscal year 2000 to redesign
   F 22 parts that have already become obsolete. The Committee notes that  
   while this upgrade makes the F 15 five times more effective in the air  
   combat mission, the Air Force only requires the F 22 to be twice as     
   effective as the F 15.)                                                 
       JSF has robust air-to-air capabilities and will be available in     
   fiscal year 2007. --The Joint Strike Fighter (JSF), in development to   
   produce a lower cost, yet highly capable replacement for Navy F/A 18's, 
   Marine Corps F/A 18's and AV 8B's, and Air Force F 16's is scheduled to 
   begin production deliveries in 2007. This program will be badly needed  
   in this timeframe to begin replacing these aircraft types, which        
   comprise the vast majority of the U.S. tactical fighter force, as their 
   age and usage rates make a replacement in this timeframe essential,     
   While incorporating advanced technology similar to that being developed 
   for the F 22, the much higher inventory objective (over 2,800 aircraft) 
   plus the lack of any other alternatives at present to deal with the     
   block obsolescence issue make the JSF, in the Committee's view, one of  
   the DoD's highest acquisition priorities.                               
      Like the F 22, the Joint Strike Fighter combines stealth and advanced
   avionics to provide a robust air-to-air capability. Unlike the F 22, the
   JSF is being designed to be an affordable joint aircraft with far       
   superior air-to-ground capabilities.                                    

       U.S. has other advantages in the area of air dominance.-- While not 
   minimizing the potential advantages which accrue to the side with a high
   technology air superiority aircraft, the Committee believes that the    
   achievement of air dominance in the information age is more than        
   one-on-one dogfights. Eight years ago, during Operation Desert Storm,   
   200 Iraqi aircraft were destroyed or captured on the ground whereas only
   35 were destroyed in air-to-air combat. Since then, the U.S. has        
   immensely improved its ability to achieve battlefield information       
   dominance and to prosecute ground targets with precision guided weapons.
   The U.S. ability to damage runways, destroy aircraft fuel and repair    
   infrastructure, and disrupt enemy command and control is improving      
   markedly with the continued introduction of precision stand-off weapons 
   into the bomber and tactical fighter inventory. This will severely limit
   any adversary's ability to get fighters airborne to mount serious       
   challenges to U.S. fighters.                                            
      Should enemy fighters get airborne, absent a complete change in U.S. 
   training and readiness priorities, they will likely confront a U.S.     
   force possessing large numbers of highly maintained advanced fighters   
   operated by better trained pilots with superior situational awareness.  
   Despite current inventory problems (due largely to limited numbers of   
   the total number of specialized platforms), there is no question the    
   United States enjoys tremendous advantages in surveillance (AWACS,      
   JSTARS), jamming (EA 6B, EC 130), command, control and communications,  
   intelligence (RC 135s, EP 3s, UAVs, satellites), tactics, training,     
   maintenance, and long-range precision weapons. It is vitally important  
   that sufficient resources be invested in these systems as               
   well--something the Committee believes is not being done.               
                              MAJOR COMMITTEE RECOMMENDATIONS                     

                    Air Force Program Reprioritization                   

      As outlined earlier in this report, the Air Force is currently facing
   critical problems in terms of personnel, overall readiness, and funding 
   for many essential warfighting needs, including many that give U.S.     
   forces significant operational advantages over any adversary. The       
   Committee believes the case for addressing these shortfalls as soon as  
   possible is compelling. At the same time, the Committee is not convinced
   that the F 22 program as currently constituted can continue as planned, 
   especially considering the other difficulties confronting the Air Force 
   and the DoD generally.                                                  
      Therefore, the Committee believes that unless and until the Air Force
   and the Department of Defense can clearly demonstrate how they intend to
   meet these competing demands, continued F 22 production is not justified
   at this time. The Committee thus recommends an F 22 ``production pause''
   until these issues can be resolved. To implement this recommendation,   
   the Committee specifically denies the $1.8 billion F 22 production      
   funding requested for fiscal year 2000. The Secretary of the Air Force  
   is further directed to take all necessary actions to cease production of
   aircraft funded in fiscal year 1999 and use all available procurement   
   funds provided in that year to finance activities needed to ensure an   
   orderly pause in the production program.                                
      The Committee does approve the budgeted amount of $1.2 billion for F 
   22 development. These funds are provided in expectation that they will  
   be used to complete the buy of nine F 22 development aircraft previously
   purchased. The Committee directs the Secretary of the Air Force to use  
   these funds to take all necessary actions to restructure the ongoing F  
   22 development program into an affordable demonstration program tailored
   to reduce the risk of the Joint Strike Fighter. The Committee's         
   expectation is that nine F 22 test aircraft currently funded will be    
   more than sufficient to satisfy the requirements of this tailored       
   demonstration program. The Committee therefore directs that none of the 
   funds provided for the F 22 can be used to acquire more than nine flying
   test aircraft without written prior notification to the congressional   
   defense committees. The Committee further reminds the Air Force that    
   section 8090 of the Committee bill prohibits the use of research and    
   development funding for procurement of aircraft for operational use.    
      Regarding other major Air Force issues, the Committee recommands     
   significant increases over the budget request for a variety of programs 
   such as: Air Force personnel recruiting and retention incentives        
   (including $300 million over the budget for the aviation continuation   
   pay program, targeted at retaining mid-grade pilots); spare parts and   
   war reserve shortages; quality of life upgrades at Air Force facilities;
   and weapons modernization enhancements. The latter includes additions   
   over the budget request for new production F 15 and F 16 fighters, and  
   upgrades for these aircraft. The Committee also has provided funds over 
   the budget request for bomber modernization, to accelerate upgrades to  
   the existing inventory of B 52, B 1 and B 2 bombers, and has also       
   increased funding for precision guided weapons. The Committee also      
   proposes adding funding for a variety of Air Force reconnaissance assets
   including one additional Joint STARS aircraft, additional Predator      
   unmanned aerial vehicles, and upgrades to existing RC 135 RIVET JOINT   
   and U 2 surveillance platforms. The Committee also provides sizable     
   increases in funding for the KC 135 tanker and RIVET JOINT engine       
   upgrade programs. Finally, the Committee also adds $100 million to the  
   Joint Strike Fighter program for risk reduction efforts. Additional     
   details on these and other Air Force program adjustments can be found   
   elsewhere in this report.                                               
 Ensuring ``Lessons Learned'' Are Incorporated Into FY 2001 2006 Defense 
                                Planning                                 
      The Committee commends the Secretary of Defense for his establishment
   of an ``After-Action Review Board'' to assess Operation Allied Force,   
   jointly chaired by the Deputy Secretary of Defense and the Vice Chairman
   of the Joint Chiefs, with representation from the services and the Joint
   Staff. The Committee expects that this group will examine issues        
   associated with the actual conduct of Operation Allied Force, which as  
   the first offensive military operation in NATO's history clearly        
   evidenced the various problems, be they political, strategic, or        
   tactical, associated with coalition warfare on this scale.              
      However, the Committee also believes that this group, which is       
   meeting while the Department is also developing its detailed fiscal year
   2001 2006 defense plan, must also seek to address the force structure,  
   organizational, and resource allocation cited earlier in this report.   
   The Committee, therefore, recommends a new general provision (Section   
   8129), which following after the lead of a similar                      
   congressionally-mandated review following the Persian Gulf War, is      
   intended to build on the Secretary's initiative by directing that he    
   formally assess the conduct of Operation Allied Force, as well as that  
   of Operation Desert Fox in December 1998. The Committee believes it     
   imperative the Secretary use these reviews to determine deficiencies in 
   existing U.S. capabilities; report on his findings to both the President
   and Congress; and to the degree possible, incorporate these findings    
   into the defense planning guidance and the fiscal year 2001 budget      
   submission. Under this section, the Secretary is to report his initial  
   findings to the President and the Congress not later than October 15,   
   1999, and will submit his final report with the submission of the fiscal
   year 2001 budget request.                                               
                Ensuring Appropriations Process Integrity                

      The Committee recommends a number of initiatives to ensure that      
   appropriated funds will not be diverted to programs without the required
   congressional notification or approval. To address the agency problems  
   cited earlier in this report, the Committee recommends several          
   adjustments to Section 8005 of the Committee bill, which provides the   
   Secretary of Defense with the authority to transfer funds and propose   
   reprogramming of funds. In the instance of problems encountered with    
   specific acquisition programs, the Committee has also proposed several  
   general provisions which realign and limit certain funding, as well as a
   number of appropriations adjustments described elsewhere in this report.
                          Multiyear Procurement                          

      The Defense Department proposed a number of new multiyear procurement
   initiatives in the fiscal year 2000 budget. As described earlier in this
   report, the Committee is concerned that defense acquisition budgets will
   not materialize as forecast. As a result, the Committee believes it     
   unwise to commit at this stage to any additional new multiyear          
   procurements. If such contracts are initiated and subsequently broken   
   for lack of funds, there would be severe cost penalties and program     
   disruption. On the other hand, those programs not subject to multiyear  
   contracts could suffer disproportionate reductions as an even larger    
   share of defense procurement funding could be locked into long-term     
   contracts.                                                              
      The Committee, therefore, recommends that no funds or authority be   
   provided to initiate new multiyear contracts in fiscal year 2000.       
   Section 8008 of the Committee bill, which in past years has provided    
   multiyear contracting authority, has been modified to prohibit new      
   multiyear contracts. This action has no effect on on-gong multiyear     
   contracts begun in prior years with prior appropriations, except in     
   those instances where authority is sought to expand such contracts      
   beyond their original timeframes.                                       

                   Addressing High Priority Shortfalls                   

      The Committee bill recommends additions to the budget request of over
   $3.6 billion to address unbudgeted shortfalls identified by the military
   Service Chiefs in personnel, acquisition and readiness-related programs.
   In total, the Committee recommends additions to the budget request that 
   encompass nearly 44 percent of the noncontingency operation-related     
   unbudgeted shortfalls identified by the military Service Chiefs. The    
   Committee has also recommended increases over the budget request and    
   fiscal year 1999 enacted levels for intelligence programs. Specific     
   details are cited throughout the report and the classified annex.       
                      Ensuring a Quality Ready Force                     

       Personnel Issues. --The Committee fully funded the 4.4 percent      
   military pay raise in the Fiscal Year 1999 Emergency Supplemental       
   Appropriations bill (Public Law 106 31). The Committee recommends an    
   additional $165,000,000 in fiscal year 2000 to increase the pay raise to
   4.8 percent. The Committee has fully funded and in some cases adds funds
   over the budget request for other pay compensation and bonus programs.  
       Military Medical Programs. --The Committee recommends fully funding 
   the Defense Health Program and has provided a net increase of over      
   $480,000,000 above the budget request for a variety of health care      
   efforts.                                                                
       Training/OPTEMPO. --For the Active duty forces, the Committee has   
   added $112,100,000 to fund various shortfalls at the rotational training
   centers and $55,600,000 for operating tempo deficiencies in both the    
   active and Guard and Reserve components identified by the Service       
   Chiefs.                                                                 
       Spare Parts/War Reserve Material Shortfalls. --The Committee has    
   added $453,000,000 to fund shortfalls in the active and Reserve         
   components' stocks of spare and repair parts, to maintain near-term     
   readiness and ensure sustainability of U.S. forces.                     
       Equipment Repair/Maintenance. --The Committee has added $297,900,000
   for depot level maintenance of active and Reserve component weapons     
   systems and support equipment.                                          
       Real Property Maintenance. --The Committee has added a total of     
   $854,000,000 for real property maintenance, targeted at quality-of-life 
   related needs at defense installations.                                 
       Force Protection. --The Committee has added $41,400,000 for force   
   protection initiatives identified by the military services as unfunded  
   priorities. In addition, the Committee recommends that five percent of  
   the additional $400,000,000 provided to the active components for base  
   operations support be directed toward installation security and force   
   protection costs.                                                       
       Soldier Support Equipment. --The Committee has added $88,000,000 to 
   fund purchases of additional soldier support equipment such as cold     
   weather clothing, body armor and initial issue equipment for both the   
   active and Reserve components.                                          
                          Modernization Programs                         

      The fiscal year 2000 budget request proposes an increase of          
   $4,440,977,000 over fiscal year 1999 levels for modernization programs. 
   While this increase is welcomed by the Committee, persistent shortfalls 
   still exist. The Committee has included many recommendations throughout 
   this bill which address these shortfalls identified from the testimony  
   of Defense Department witnesses as well as shortfall lists provided to  
   the Committee by the Department. In total, the bill recommends a net    
   increase to the budget request of over $1,179,859,000 for procurement   
   programs.                                                               
   The most significant recommendations include:                           

       Missile Defense. --The Committee recommends total funding of        
   $3,899,543,000 for the Ballistic Missile Defense Program. This total    
   includes $761,555,000 for national missile defense and $1,116,432,000   
   for theater systems. The Committee has provided $527,871,000 for the    
   Theater High Altitude Air Defense (THAAD) program, a reduction of       
   $83,755,000 to the budget request due to the delay in entering the      
   engineering and manufacturing development phase. A total of $419,768,000
   in new appropriations is proposed for the Navy Theater-Wide (Upper Tier)
   program, an increase of $90,000,000 above the budget request.           
       Major Weapon Programs. --The Committee recommends fully funding the 
   budget request for the Army's Crusader next generation artillery system,
   the Navy's AV 8B and F/A 18 E/F aircraft, the carrier replacement       
   program, and DDG 51 and LPD 17 ships. The Committee has also funded the 
   number of C 17 aircraft requested by the Air Force.                     
      The Committee has added funds over the budget request to procure     
   additional aircraft such as UH 60 Blackhawk helicopters for the Army,   
   JPATS trainer aircraft for the Navy and Air Force, V 22 and KC 130Js for
   the Marine Corps, and F 15, F 16 and JSTARS aircraft for the Air Force. 
   The Committee has also added funds over the request for Apache          
   modifications, Bradley fighting vehicle industrial base sustainment, KC 
   135 tanker re-engining, continued upgrades to the B 2 bomber fleet and  
   additional AMRAAM missiles.                                             
       Mission Essential Shortfalls.-- The Committee has included          
   additional funding for less glamorous, yet mission essential items which
   are critical for the capabilities of deployed troops. The Committee     
   recommends increases over the budget request for such items as: tactical
   radios ($40,000,000), afloat protection systems ($24,400,000),          
   enhancements to the EA 6B electronic warfare aircraft fleet             
   ($111,000,000), ammunition for all services ($202,954,000),             
   communication and electronics infrastructure equipment ($135,200,000)   
   and tracked vehicle modification kits ($60,500,000).                    
       Guard and Reserve Components. --The Committee continues its support 
   of the Guard and Reserve in the fiscal year 2000 Defense Appropriations 
   Bill with recommended increases of approximately $616,000,000 over the  
   budget request for selected personnel and operation and maintenance     
   programs. With respect to modernization programs, the Committee has     
   provided $2,485,300,000 in accounts throughout the bill for procurement 
   of National Guard and Reserve Equipment. This is an increase of         
   $796,400,000 above the budget request for aircraft, tactical vehicles,  
   miscellaneous equipment and upgrades to miscellaneous equipment for the 
   guard and reserve components of the total force.                        
                        Reforms/Program Reductions                       

      The following table shows selected programs in the budget request    
   which the Committee has eliminated or reduced funding based on their    
   having a relatively low priority, program duplication, unaffordability, 
   or where the requested funding is excessive due to fact-of-life changes 
   or when compared to previously enacted levels.                          

Program                                                                 

Reduction                                                               



           22 Production Pause           -$1,852,075,000



          Revised Fiscal Year 1999 Inflation Estimates                -452,100,000



          Chemical Demilitarization Program                -388,000,000



          Military end-strength underexecution                -212,300,000



          Headquarters and Administrative Expenses                -179,000,000



          Discoverer II                  -108,481,000



          Javelin Missile                -98,000,000



          THAAD                          -83,755,000



          T 38 Upgrade                   -77,000,000



          JSOW                           -68,000,000



          GPS Satellites                 -67,498,000



          SADARM Procurement             -54,546,000



          Standard Missile               - 43,600,000



          Maneuver Control System                -42,049,000



          SHF Terminals                  -31,950,000


                         Tactical Reconnaissance                         

      During Operation Allied Force and the subsequent deployment of NATO  
   peace keeping troops in the Balkans region, the Committee believes the  
   Department of Defense learned at least two important lessons with       
   respect to tactical reconnaissance: it is extremely valuable and there  
   are not enough assets. It was clear to many of the commanders that the  
   RIVET JOINT and unmanned aerial vehicle assets became the best ``eyes   
   and ears'' tactical intelligence monitoring available in theater. The   
   problem is that there are a limited number of these assets and staffing 
   is extremely lean.                                                      
      Unmanned Aerial Vehicles proved their worth during Operation Allied  
   Force. The vehicles could fly at altitudes and in areas that could not  
   and should not be attempted by manned aircraft. The vehicles were       
   vulnerable to enemy fire but managed to provide valuable intelligence   
   that was used to target future strikes and monitor troop movements.     
      The RIVET JOINT, U 2 and special Navy manned reconnaissance aircraft 
   were also effective during Operation Allied Force. These aircraft were a
   lucrative source of intelligence and logged in excess of 700 sorties    
   over Kosovo and surrounding areas. Due to their effectiveness, these    
   assets were popular with local commanders. However, the numbers of these
   aircraft are incredibly limited which puts tremendous pressure on       
   aircrews.                                                               
      Despite the obvious benefits of these reconnaissance assets and the  
   fact that they are major providers of intelligence for force protection,
   target acquisition, troop movements, and battle damage assessment, the  
   Department's fiscal year 2000 budget does not include adequate funding  
   for its tactical reconnaissance requirements. Therefore, the Committee  
   has included a total of $270,100,000 above the budget request to fund a 
   variety of upgrades for tactical reconnaissance assets.                 
      The following is a list of the additional major items for which      
   funding is provided by the Committee:                                   


Amount                                                                  



          Predator Unmanned Aerial Vehicle                +$20,000,000



          Global Hawk Unmanned Aerial Vehicle                +25,000,000



          RIVET JOINT                    +102,200,000



          U 2                            +36,000,000



          Joint SIGINT Avionics Family                +17,400,000



      The Committee believes that these funds will provide significant     
   tactical reconnaissance capability for future operations. The Department
   should ensure that the benefits from these increases are not            
   shortchanged in future budget requests and that needed enhancements and 
   aircraft replacements are fully funded.                                 

                          Information Assurance                          

      The Committee is concerned that the Department of Defense is         
   vulnerable to unauthorized entries into its information infrastructure  
   that could endanger U.S. troops or compromise U.S. security. There have 
   been many instances in the past few years in which individuals outside  
   of the Department of Defense have gained unauthorized access to the     
   Defense Information Infrastructure. This is a serious threat to the     
   protection of vital data. The DoD must have confidence that unauthorized
   persons have not altered critical information.                          
      Therefore, throughout this report, the Committee recommends increases
   of over $500,000,000 to the President's fiscal year 2000 budget request,
   for critical technology developments and system upgrades that will      
   provide information superiority and information assurance. As a part of 
   this overall funding level, the Committee recommends providing an       
   additional $150,000,000 for the Deputy Secretary of Defense to use in   
   support of these efforts in section 8114 of the Committee bill. These   
   funds are available for transfer by the Deputy Secretary to those       
   agencies and organizations that require additional funds for specific   
   projects, programs and activities that support information assurance and
   computer security. The Committee anticipates these funds will only be   
   used as part of an overall Department of Defense Information Assurance  
   Plan and not simply divided proportionately among the Services.         
      The Committee therefore has included language which prohibits the    
   transfer of any portion of the additional $150,000,000 until the Deputy 
   Secretary has submitted to the House and Senate Committees on           
   Appropriations a proposed funding allocation and plan, with specific    
   goals, targeted at meeting DoD's needs in information superiority and   
   information assurance.                                                  
                Preparedness Against WMD Terrorist Attacks               

      Section 8113 of the Committee bill provides an additional $50,000,000
   above the budget request to enhance efforts underway within the         
   Department to develop a domestic emergency response capability against  
   potential terrorist attacks using weapons of mass destruction. These    
   funds are to be allocated as follows:                                   
       RAID Team Training/Equipment.-- To complete the training and        
   outfitting of Rapid Assessment Initial Detection (RAID) teams funded in 
   FY 1999 and in this bill, including procurement of unified command      
   suites and mobile analytical laboratory systems.                        


Appropriation                                                           

Amount                                                                  



          National Guard Personnel, Army                $4,240,000



          National Guard Personnel, Air Force                1,060,000



          Operation and Maintenance, Army                10,930,000



          Other Procurement, Army                12,180,000



       Military Support Detachment RAID (Light) Team. --To provide the     
   training and preliminary equipment issue to field an initial operating  
   capability for one traditional drilling Military Support Detachment RAID
   (Light) team.                                                           


Amount                                                                  



          National Guard Personnel, Army                $70,000



          National Guard Personnel, Air Force                20,000



          Operation and Maintenance, Army                1,180,000



       Additional Training/Exercises/Coordination Activities.-- To enhance 
   the training, organization, and support of DOD forces to prepare for and
   respond to WMD terrorism, and to enhance interoperability and           
   connectivity between local, state, and federal interagency WMD response 
   forces.                                                                 


Amount                                                                  



          Reserve Personnel, Army                $2,000,000



          Operation and Maintenance, Army National Guard                12,320,000



          Research, Development, Test and Evaluation, Army                6,000,000




      Of the funds provided for Operation and Maintenance, Army National   
   Guard, the bill provides: $3,000,000 only to establish a cost effective 
   counter terrorism training program at the Memorial Tunnel facility which
   has been outfitted by the Federal Highway Administration to study the   
   effects of fire and smoke mitigation in enclosed spaces; $2,000,000 to  
   develop a structured undergraduate research program to address the      
   shortage of laboratory personnel skilled in the study of organisms and  
   chemicals necessary to defend against biological and chemical weapons;  
   $3,500,000 to enhance the Army National Guard's distance learning       
   capabilities by implementing and expanding the Virtual Readiness        
   University concept, enhancing the security of the Guardnet 21 backbone, 
   and other related initiatives.                                          
      The Committee believes the National Guard's Distance Learning Network
   provides a ready-made and cost-effective infrastructure to deliver WMD  
   training courses across the country to local, state, and federal WMD    
   response forces. The Committee recommends that the National Guard Bureau
   and the Department of Justice establish a collaborative training program
   to make expanded use of the National Guard Distance Learning Network,   
   and other training and education resources of the National Guard and    
   Department of Justice, to train civilian and military personnel.        
      Of the funds provided for Research, Development, Test and Evaluation,
   Army, the bill provides $3,000,000 (PE 273610A) to continue consequence 
   management and related training activities through the National         
   Terrorism Preparedness Institute at the Southeastern Public Safety      
   Institute. In addition, funds are provided to study the mass            
   psychological trauma and impact of a WMD terrorism attack on civilians  
   and on the military, and to identify appropriate response strategies.   
                        COMMITTEE RECOMMENDATIONS BY MAJOR CATEGORY               

                        ACTIVE MILITARY PERSONNEL                        

      The Committee recommends a total of $62,132,237,000 for active       
   military personnel, a reduction of $1,526,243,000 below the budget      
   request. The Committee has reduced the active and reserve military      
   personnel accounts by $1,838,426,000 to reflect action taken in the     
   Fiscal Year 1999 Emergency Supplemental Appropriations Act (Public Law  
   106 31) which provided advance funding for the fiscal year 2000 pay and 
   retirement reform initiatives proposed by the President. The Committee  
   also includes additional funds to pay for the cost of the pay raise     
   increase from 4.4 percent to 4.8 percent, as proposed in the            
   House-passed Defense Authorization bill. The Committee agrees with the  
   authorized end strength as requested in the President's budget, and has 
   included funds to provide for additional personnel costs for the Navy   
   and Marine Corps.                                                       

                            Guard and Reserve                            

      The Committee recommends a total of $9,899,740,000, a decrease of    
   $165,073,000 below the budget request for Guard and Reserve personnel.  
   The Committee agrees with the authorized end strength as requested in   
   the President's budget for Selected Reserve, and has included funds to  
   provide for additional personnel costs for the Air Force Reserve, and   
   Air National Guard. The Committee has also included funds for the       
   proposed pay raise to 4.8 percent.                                      
                        Operation and Maintenance                        

      The Operation and maintenance appropriation provides for the         
   readiness of U.S. Forces as well as the maintenance of facilities and   
   equipment, the infrastructure that supports the combat forces and the   
   quality of life service members and their families.                     
      The Committee recommends $93,686,750,000, a net increase of          
   $2,418,501,000 above the fiscal year 2000 budget request. This increase 
   in driven primarily by the need to address shortfalls in funding for    
   rotational training centers, spare and repair part stocks, depot-level  
   maintenance, support equipment, and the infrastructure of U.S. military 
   bases. The Committee also recommends reductions from the budget request 
   as the result of fact of life changes and management actions the        
   Department should undertake to streamline activities.                   
                               Procurement                               

      The Committee recommends $53,031,397,000 in obligational authority   
   for programs funded in Title III of the bill, Procurement, a net        
   increase of $1,179,859,000 over the fiscal year 2000 budget request.    
   Major programs funded in the bill include the following:                
   $207,140,000 for 19 UH 60 Blackhawk helicopters.                        

   $774,536,000 for Apache Longbow modifications.                          

   $296,472,000 for 2200 Hellfire missiles.                                

   $307,677,000 for 2682 Javelin anti-tank missiles.                       

   $138,134,000 for 47 MLRS launcher systems.                              

   $392,762,000 for Bradley fighting vehicle industrial base sustainment.  

   $422,996,000 for the Abrams Tank upgrade program.                       

   $260,444,000 for 12 AV 8B strike aircraft.                              

   $2,691,989,000 for 36 F/A 18E/F fighter aircraft.                       

   $856,392,000 for 11 V 22 aircraft.                                      

   $284,493,000 for 17 CH 60S helicopters.                                 

   $325,476,000 for 15 T 45 Trainer aircraft.                              

   $576,257,000 for 8 KC 130J airlift aircraft.                            

   $361,202,000 for P 3 aircraft modifications.                            

   $437,488,000 for 12 Trident II ballistic missiles.                      

   $155,267,000 for 91 Standard missiles.                                  

   $751,540,000 for the aircraft carrier replacement program.              

   $748,497,000 for the New Attack Submarine.                              

   $2,681,653,000 for 3 DDG 51 Destroyers.                                 

   $1,508,338,000 for 2 LPD 17 ships.                                      

   $439,966,000 for 1 ADC(X) ship.                                         

   $440,000,000 for 8 F 15 aircraft.                                       

   $350,610,000 for 15 F 16 aircraft.                                      

   $2,671,047,000 for 15 C 17 aircraft.                                    

   $468,465,000 for 2 JSTARS aircraft.                                     

   $321,818,000 for F 15 modifications.                                    

   $295,536,000 for F 16 modifications.                                    

   $552,988,000 for C 135 modifications.                                   

   $190,279,000 for AMRAAM missiles.                                       

   $300,898,000 for 32 Patriot PAC 3 missiles.                             

   $2,044,331,000 for ammunition for all services.                         

                research, development, test and evaluation               

      The Committee recommends $37,169,446,000 for Research, Development,  
   Test and Evaluation. Major programs funded in the bill include:         
   $282,937,000 for the Crusader artillery system.                         

   $427,069,000 for the Comanche helicopter.                               

   $190,931,000 for cooperative engagement capability.                     

   $251,456,000 for new submarine design.                                  

   $111,580,000 for ship self defense.                                     

   $308,634,000 for the Airborne Laser program.                            

   $576,612,000 for the Joint Strike Fighter.                              

   $1,222,232,000 for F 22 development.                                    

   $344,165,000 for B 2 development.                                       

   $322,803,000 for the evolved expendable launch vehicle program.         

   $527,871,000 for Theater High Altitude Area Defense (THAAD).            

   $419,768,000 for Navy Theater Wide Missile Defense.                     

   $761,555,000 for National Missile Defense.                              


                                   FORCES TO BE SUPPORTED                         

                          DEPARTMENT OF THE ARMY                         

      The fiscal year 2000 budget is designed to support active Army forces
   of 10 divisions, 3 armored cavalry regiments, and reserve forces of 8   
   divisions, 3 separate brigades, and 15 enhanced National Guard brigades 
   (6 enhanced brigades will be aligned under 2 AC/ARNG integrated division
   headquarters). These forces provide the minimum force necessary to meet 
   enduring defense needs and execute the National Military Strategy.      
   A summary of the major active forces follows:                           


                                                                                 

                                                                   Fiscal year--        

                                                                 1998  1999       2000  

Divisions:                                                          1  1             1  
                                                              -------  -------  ------  
Total                                                              10  10           10  
                                                              =======  =======  ======  
   Non-division Combat units:                                          3  3             3  
                                                              -------  -------  ------  
Total                                                               3  3             4  
                                                              =======  =======  ======  
Active duty military personnel, end strength (thousands)          495  480         480  

\1\Separate brigade is aligned to one of the light divisions.                   

                          DEPARTMENT OF THE NAVY                         

      The fiscal year 2000 budget supports battle forces totaling 316 ships
   at the end of fiscal year 2000, a decrease of 1 ship from fiscal year   
   1999. Forces in fiscal year 2000 include 18 strategic submarines, 11    
   aircraft carriers, 245 other battle force ships, 1,852 Navy/Marine Corps
   tactical/ASW aircraft, 645 Undergraduate Training aircraft, 454 Fleet   
   Air Training aircraft, 238 Fleet Air Support aircraft, 442 Reserve      
   aircraft, and 450 aircraft in the pipeline.                             
   A summary of the major forces follows:                                  


                                                                               

                                                Fiscal year--             

                                            1998         1999       2000  

Strategic Forces                              18           18         18  
                                     -----------  -----------  ---------  
SLBM Launchers                               432          432        432  
General Purpose                              271          256        256  
                                     -----------  -----------  ---------  
Support Forces                                25           25         25  
                                     -----------  -----------  ---------  
Mobilization Category A                       18           18         16  
                                     -----------  -----------  ---------  
                                     ===========  ===========  =========  
Total Ships, Battle Force                    333          317        316  
Total Local Defense/Misc Forces              162          161        167  
Auxiliaries/Sea Lift Forces                  139          138        143  
Surface Combatant Ships                        2            1          0  
Coastal Defense                               13           12         13  
Mobilization Category B                        6            8         10  
Surface Combatants                             0            0          0  
Mine Warfare Ships                             8           10         11  
Support Ships                                  0            0          0  
   Naval Aircraft:                            4,204        4,128      4,168  
                                     -----------  -----------  ---------  
   Naval Personnel:                         560,036      544,896    543,929  
   Reserve:                                  94,294       90,843     90,288  


                       DEPARTMENT OF THE AIR FORCE                       

      The fiscal year 2000 Air Force budget is designed to support a total 
   active inventory force structure of 49 fighter and attack squadrons, 6  
   Air National Guard air defense interceptor squadrons and 8 bomber       
   squadrons, including B 2s, B 52s, and B 1s. The Minuteman and           
   Peacekeeper ICBM forces will consist of 700 active launchers.           
   A summary of the major forces follows:                                  


                                                                               

                                              1998      1999     2000  

USAF fighter and attack (Active)                51        51       49  
USAF fighter and attack (ANG and AFRC           36        35       35  
Air defense interceptor (ANG)                   10         6        6  
Strategic bomber (Active)                        8         9        8  
Strategic bomber (ANG and AFRC)                  3         3        3  
ICBM launchers/silos                           700       700      700  
ICBM missile boosters                          580       580      550  
                                          ========  ========  =======  
   USAF airlift squadrons (Active):                13        13       11  
                                          --------  --------  -------  
Total Airlift                                   22        22       20  
                                          ========  ========  =======  
Total Active Inventory                       6,242     6,207    6,187  


                                                                               

                          FY 1998  (Actual)     FY 1999 Col FY 00 PB    FY 2000  

Active Duty                         367,470                  365,882    360,877  
Reserve Component                   180,066                  181,233    180,386  
Air National Guard                  108,096                  106,991    106,678  
Air Force Reserve                    71,970                   74,242     73,708  


                                           TITLE I                                

                                     MILITARY PERSONNEL                           

            PROGRAMS AND ACTIVITIES FUNDED BY MILITARY PERSONNEL APPROPRIATIONS   

      The President's fiscal year 2000 budget request has made military    
   personnel its first priority to improve retention and recruiting through
   a more equitable compensation package. The budget request proposed      
   increasing the military personnel accounts by over $3,100,000,000 from  
   the fiscal year 1999 enacted levels, and by more than $36,000,000,000   
   over the Five Year Defense Plan. These personnel initiatives include    
   enhanced pay raises, reform of the basic pay tables, legislation to     
   repeal the Military Retirement Reform Act of 1986, new legislative      
   initiatives designed to improve recruiting and retention in specific    
   skill areas or critical military skills, and increased funding for      
   enlistment bonuses and education benefits to help the Services' meet    
   their accession goals.                                                  
      The Committee, in the Fiscal Year 1999 Emergency Supplemental        
   Appropriations Act (Public Law 106 31), provided $1,838,426,000 in      
   advance funds to support the President's fiscal year 2000 request for a 
   4.4 percent pay raise, pay table reform and retirement reform. In       
   addition to the funds provided in the fiscal year 1999 supplemental, the
   Committee recommends including $164,510,000 for an increase of 0.4      
   percent in the military's pay raise to 4.8 percent, as proposed by the  
   House-passed Defense Authorization bill. The Committee also includes    
   $367,200,000 for increases to enlistment, reenlistment and aviation     
   bonuses to improve recruiting and retention in the Department,          
   $103,800,000 for recruiting, advertising and recruiter support programs,
   and $225,000,000 for the acceleration of the Basic Allowance for Housing
   reform.                                                                 
            SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR  2000   




          Fiscal year 1999               $70,607,566,000



          Fiscal year 2000 budget request                73,723,293,000



          Fiscal year 2000 recommendation                72,011,977,000



          Change from budget request                -1,711,316,000



      The Committee recommends an appropriation of $72,011,977,000 for the 
   Military Personnel accounts. The recommendation is an increase of       
   $1,404,411,000 above the $70,607,566,000 appropriated in fiscal year    
   1999. These military personnel budget total comparisons include         
   appropriations for the active, reserve, and National Guard accounts. The
   following tables include a summary of the recommendations by            
   appropriation account. Explanations of changes from the budget request  
   appear later in this section.                                           

  SUMMARY OF APPROPRIATION ACCOUNT OF THE FISCAL YEAR 2000 MILITARY PERSONNEL RECOMMENDATION  
                                   [In thousands of dollars]                                  

Account                                 Budget       Recommendation     Change from budget  

Military Personnel:                $22,006,632          $21,475,732              -$530,900  
                                --------------  -------------------  ---------------------  
Subtotal, Active                    63,658,480           62,132,237             -1,526,243  
                                ==============  ===================  =====================  
Reserve Personnel:                   2,270,964            2,235,055                -35,909  
National Guard Personnel:            3,570,639            3,486,427                -84,212  
                                --------------  -------------------  ---------------------  
Subtotal, Guard and Reserve         10,064,813            9,879,740               -185,073  
                                ==============  ===================  =====================  
Total, Title I                      73,723,293           72,011,977             -1,711,316  


      The fiscal year 2000 budget request includes a decrease of 5,631 end 
   strength for the active forces and a decrease of 11,744 end strength for
   the selected reserve over fiscal year 1999 authorized levels.           
      The Committee recommends the following levels highlighted in the     
   tables below.                                                           
                       OVERALL ACTIVE END STRENGTH                       


                                                                               

                                                                   

     Fiscal year 1999 estimate                               1,390,437  
     Fiscal year 2000 budget request                         1,384,806  
     Fiscal year 2000 House authorization                    1,385,432  
     Fiscal year 2000 recommendation                         1,385,512  
       Compared with Fiscal year 1999                           -4,925  
       Compared with Fiscal year 2000 budget request              +706  

                  OVERALL SELECTED RESERVE END STRENGTH                  


                                                                               

                                                                 

     Fiscal year 1999 estimate                               877,042  
     Fiscal year 2000 budget request                         865,298  
     Fiscal year 2000 House authorization                    865,298  
     Fiscal year 2000 recommendation                         865,373  
       Compared with Fiscal year 1999                        -11,669  
       Compared with Fiscal year 2000 budget request             +75  


                                                                                                                            

                                      FY 1999  estimate      Budget  request                               Fiscal year 2000                            

                                                                                    House authorization      Recommendation     Change from request  

Active Forces (end strength):                      480,000             480,000                  480,000             480,000                          
                                      --------------------  ------------------  -----------------------  ------------------  ----------------------  
Total, Active Force                              1,390,437           1,384,806                1,385,432           1,385,512                    +706  
                                      ====================  ==================  =======================  ==================  ======================  
Guard and Reserve (end strength):                  208,000             205,000                  205,000             205,000                          
                                      --------------------  ------------------  -----------------------  ------------------  ----------------------  
Total, Guard and Reserve                           877,042             865,298                  865,298             865,373                     +75  

                         ADJUSTMENTS TO MILITARY PERSONNEL ACCOUNT                

                                          OVERVIEW                                

                         END STRENGTH ADJUSTMENTS                        

      The Committee recommends an understrength reduction of $212,300,000  
   to the budget request, as a result of a General Accounting Office review
   of the 1999 military personnel end strength levels. The General         
   Accounting office has been examining the costs for military pay and     
   allowances to determine if the fiscal year 2000 requirements are        
   correct. They have concluded, based on May 1999 end strength            
   projections, that the active components will begin fiscal year 2000 with
   approximately 12,000 fewer military personnel on-board than budgeted. In
   addition, actual data shows active military personnel on-board, by grade
   mix, is different than was requested in last year's budget request. This
   means the fiscal year 2000 pay and allowances requirements for personnel
   are incorrect and the budgets are overstated. The Committee will        
   continue to monitor the Services end strength levels as more current    
   data becomes available.                                                 

                        PAY AND RETIREMENT REFORM                        

      The Committee included funds in support of the President's budget    
   request for a 4.4 percent increase in basic pay, pay table reform, and  
   the repeal of the 1986 Military Retirement Reform Act in the Fiscal Year
   1999 Emergency Supplemental Appropriations Act (Public Law 106 31), and,
   therefore, recommends a reduction of $1,838,426,000 in the active and   
   reserve military personnel accounts for fiscal year 2000 for these pay  
   and compensation initiatives.                                           
      Subsequent to the Supplemental appropriations bill, however, the     
   House-passed Defense Authorization bill recommended language to enhance 
   the percentage pay raise for military personnel, effective January 1,   
   2000, and revised the budget's legislative proposal concerning the      
   proposed repeal of the Redux retirement system. The Committee recommends
   an additional $164,510,000 to cover the cost of the increased pay raise,
   and recommends a reduction of $392,000,000 to the military personnel    
   accounts for modifications to the Redux retirement system consistent    
   with the House-passed authorization bill.                               
                       BASIC ALLOWANCE FOR HOUSING                       

      The Committee recommends an increase over the request of $225,000,000
   for the reform of the Basic Allowance for Housing (BAH) program. In     
   1998, the services began phasing in the Basic Allowance for Housing     
   program, which will replace two separate allowances, the Variable       
   Housing Allowance and Basic Allowance for Quarters. The transition from 
   the old housing allowance system to the new Basic Allowance for Housing 
   was to be phased in over six years and was required to be cost neutral. 
   The intent of BAH is to provide service members compensation that is    
   based on comparable civilian costs of housing, and reduce their         
   out-of-pocket housing expenses. The Committee recommends the additional 
   funds to complete the transition phase of BAH reform, as recommended by 
   the House-passed Defense Authorization bill, in order to protect service
   members from any further erosion of their housing benefits.             

                        AVIATION CONTINUATION PAY                        

      The Committee recommends an increase of $300,000,000 over the budget 
   request to provide additional funds for the pilot Aviation Continuation 
   Pay (ACP) bonus. The Committee is concerned about the high personnel    
   tempo and operations tempo that aviation officers and enlisted crew     
   members are undergoing, and understands that the Air Force is           
   experiencing major retention problems in these career fields, as well as
   other critical skill areas. Prior to 1995, one in 14 pilots separated   
   after 14 years of service. Today, one in four pilots separate prior to  
   retirement. In addition, the Air Force is currently operating with      
   approximately 1,100 less pilots, or at 92 percent of their manning      
   requirements, and have projected over 1,600 pilot shortages by fiscal   
   year 2003. The Committee believes that an increase in this bonus will   
   allow the Air Force to implement an ACP program which offers bonuses to 
   those eligible pilots who would otherwise separate from the military.   
   The Committee also supports the budget request which establishes a new  
   Career Enlisted Flyer Incentive Pay, designed to reverse declining      
   retention of enlisted crew members.                                     
                          UNFUNDED REQUIREMENTS                          

      The Committee recommends an increase over the budget request of      
   $592,200,000 for additional active duty and reserve component pays and  
   allowances to enhance recruiting, retention and quality of life         
   initiatives for military personnel, as follows:                         

                                                                               
                            [In thousands of dollars]                          

                                              

     Enlistment Bonuses                   $39,200  
     Selective Reenlistment Bonuses        28,000  
     Aviation Continuation Pay            300,000  
     Basic Allowance for Housing          225,000  
                                  ----------  
       Total                              592,200  

                        JROTC LEADERSHIP TRAINING                        

      The Committee recommends an increase of $34,800,000 over the budget  
   request in the services' personnel and operations and maintenance       
   accounts to expand the number of JROTC programs during fiscal year 2000.
      The Committee is impressed with the proposal of the George C.        
   Marshall Foundation to develop, deliver, and evaluate a school-based    
   community service program to develop ethical leadership and             
   problem-solving abilities of JROTC students. The Committee commends this
   proposal to the Department for consideration.                           
                          QUALITY OF LIFE STUDY                          

      The Committee is encouraged by the Department's decision to proceed  
   with a service-wide quality of life survey similar to the model         
   developed by the General Accounting Office (GAO) and reported in GAO    
   Report NSIAD 99 197. The Committee expects that the Department's survey 
   will take into account the factors GAO identified as having negative    
   effects on unit morale and readiness, such as the availability of parts 
   and equipment to perform daily job functions, the frequency of          
   deployments, and other factors related to the work environment. In      
   addition, the Committee supports a limited annual quality of life survey
   with consistent questions to develop longitudinal data on this issue.   
   The Department may also consider the use of focus groups and the        
   involvement of impartial entities to provide independent review and     
   analysis. A report on the findings of the survey shall be submitted to  
   the Committee by February 1, 2000.                                      
                         GUARD AND RESERVE FORCES                        

      The Committee recognizes that Guard and Reserve Forces are an        
   essential part of the total force having played an important role in    
   recent peacetime operations such as assistance to South American        
   countries after Hurricane Mitch, and their continued work under the     
   Enhanced New Horizons Exercises, Operations Desert Thunder/Fox in       
   Southwest Asia, Operations Joint Guard/Forge in Bosnia-Herzegovina, and 
   most recently the conflict in Kosovo. Many of the skills needed for     
   response to a crisis reside in the Reserve components, guaranteeing the 
   increased use of Reservists in military operations other than war. The  
   Committee's recommendation for fiscal year 2000 continues its support of
   the Guard and Reserve and recommends an increase of $611,906,000 over   
   the budget request for the operation and maintenance accounts. In       
   addition to the $1,688,900,000 requested in the budget, and fully funded
   for Guard and Reserve equipment, the Committee has recommended          
   $796,400,000 throughout the bill for additional aircraft, tactical      
   vehicles, and various miscellaneous equipment and upgrades to existing  
   equipment for the Guard and Reserve components. The following table     
   summarizes the Guard and Reserve funding issues:                        

                                                                               
                            [In thousands of dollars]                          

                                           

     Operation and Maintenance       +$611,900  
     Modernization                    +796,400  
                             ------------  
       Total                        +1,408,306  

                       full-time support strengths                       

      There are four categories of full-time support in the Guard and      
   Reserve components: civilian technicians, active Guard and Reserve      
   (AGR), non-technician civilians, and active component personnel.        
      Full-time support personnel organize, recruit, train, maintain and   
   administer the Reserve components. Civilian (Military) technicians      
   directly support units, and are very important to help units maintain   
   readiness and meet the wartime mission of the Army and Air Force.       

      Full-time support end strength in all categories totaled 90,086 in   
   fiscal year 1999. The fiscal year 2000 budget request is 113,827 end    
   strength. The following table summarizes Guard and Reserve full-time    
   support end strengths:                                                  

                                        GUARD AND RESERVE FULL-TIME END STRENGTHS                                       

                           FY 1999  estimate    Budget  estimate     House authorization    Recommendation    Change from request  

Army Reserve:                         12,804              12,804                  12,804            12,804                         
Navy Reserve TAR                      15,618              15,010                  15,010            15,010                         
Marine Corps Reserve                   2,362               2,272                   2,272             2,272                         
Air Force Reserve:                       991               1,078                   1,078             1,134                    +56  
Army National Guard:                  21,763              21,807                  22,563            21,807                         
Air National Guard:                   10,930              11,091                  11,025            11,096                     +5  
Total:                                64,468              64,062                  64,752            64,123                    +61  

                                  MILITARY PERSONNEL, ARMY                        


                                                                               

                                                        

     Fiscal year 1999 appropriation         $20,841,687,000  
     Fiscal year 2000 budget request         22,006,632,000  
     Committee recommendation                21,475,732,000  
     Change from budget request                -530,900,000  

      The Committee recommends an appropriation of $21,475,732,000 for     
   Military Personnel, Army. The recommendation is an increase of          
   $634,045,000 above the $20,841,687,000 appropriated for fiscal year     
   1999.                                                                   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 48 Insert here                                            


      The adjustments to the budget activities for Military Personnel, Army
   are shown below:                                                        

                                                                               
                            [In thousands of dollars]                          

                                                                                

     xlBudget Activity 2: Pay and Allowances of Enlisted Personnel:                  
       1100 Special Pays/Enlistment Bonuses                                  25,000  
       1100 Special Pays/Selective Reenlistment Bonus                        24,000  
     xlOther Adjustments:                                                            
       2755 Pay Increase Provided in P.L. 106 31                           -559,533  
       2770 Personnel Underexecution                                        -15,000  
       2790 4.8% Pay Raise Increase                                          49,533  
       2800 Retirement Reform                                              -127,500  
       2805 Basic Allowance for Housing                                      72,600  

                                  MILITARY PERSONNEL, NAVY                        


                                                                               

                                                       

     Fiscal year 1999 appropriation        $16,570,754,000  
     Fiscal year 2000 budget request        17,207,481,000  
     Committee recommendation               16,737,072,000  
     Change from budget request               -470,409,000  

      The Committee recommends an appropriation of $16,737,072,000 for     
   Military Personnel, Navy. The recommendation is an increase of          
   $166,318,000 above the $16,570,754,000 appropriated for fiscal year     
   1999.                                                                   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 50 Insert here                                            



      The adjustments to the budget activities for Military Personnel, Navy
   are shown below:                                                        

                                                                               
                            [In thousands of dollars]                          

                                                            

     xlOther Adjustments:                                        
       5555 Pay Increase Provided in P.L. 106 31       -436,773  
       5580 Personnel Underexecution                    -51,300  
       5595 4.8% Pay Raise Increase                      37,464  
       5605 Retirement Reform                           -96,400  
       5610 Basic Allowance for Housing                  71,600  
       5615 AOE 1 Replenishment Ships                     5,000  

                        AOE 1 REPLENISHMENT SHIPS                        

      The Committee recommends an increase over the budget request of      
   $5,000,000 in ``Military Personnel, Navy'' to provide additional        
   manpower costs for the required end strength associated with the        
   decision not to implement the fiscal year 2000 decommissionings of the  
   AOE 1 class of ships.                                                   
                              MILITARY PERSONNEL, MARINE CORPS                    


                                                                               

                                                      

     Fiscal year 1999 appropriation        $6,263,387,000  
     Fiscal year 2000 budget request        6,544,682,000  
     Committee recommendation               6,353,622,000  
     Change from budget request              -191,060,000  

      The Committee recommends an appropriation of $6,353,622,000 for      
   Military Personnel, Marine Corps. The recommendation is an increase of  
   $90,235,000 above the $6,263,387,000 appropriated for fiscal year 1999. 
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 52 Insert here                                            


      The adjustments to the budget activities for Military Personnel,     
   Marine Corps are shown below:                                           

                                                                               
                            [In thousands of dollars]                          

                                                            

     xlOther Adjustments:                                        
       8205 Pay Increase Provided in P.L. 106 31       -177,980  
       8240 4.8% Pay Raise Increase                      15,520  
       8242 Marine Corps Security Guards                  6,600  
       8250 Retirement Reform                           -38,700  
       8255 Basic Allowance for Housing                  19,500  
       8260 Marine Corps Execution Repricing            -16,000  

                 MARINE CORPS SECURITY GUARD DETACHMENTS                 

      The Committee recommends an increase over the budget request of      
   $6,600,000 in ``Military Personnel, Marine Corps'', and $4,100,000 in   
   ``Operation and Maintenance, Marine Corps'' to provide additional       
   personnel and sufficient operational support costs associated with      
   increasing the number of embassies guarded by Marine Security Guard     
   Detachments.                                                            
                               MILITARY PERSONNEL, AIR FORCE                      


                                                                               

                                                       

     Fiscal year 1999 appropriation        $17,211,987,000  
     Fiscal year 2000 budget request        17,899,685,000  
     Committee recommendation               17,565,811,000  
     Change from budget request               -333,874,000  

      The Committee recommends an appropriation of $17,565,811,000 for     
   Military Personnel, Air Force. The recommendation is an increase of     
   $353,824,000 above the $17,211,987,000 appropriated for fiscal year     
   1999.                                                                   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 54 Insert here                                            



      The adjustments to the budget activities for Military Personnel, Air 
   Force are shown below:                                                  

                                                                               
                            [In thousands of dollars]                          

                                                             

     xlOther Adjustments:                                         
       11005 Pay Increase Provided in P.L. 106 31       -471,892  
       11020 Personnel Underexecution                   -146,000  
       11040 4.8% Pay Increase                            40,518  
       11070 Retirement Reform                          -105,800  
       11080 Basic Allowance for Housing                  61,300  
       11090 Aviation Continuation Pay                   300,000  
       11100 TERA Rephasing                              -12,000  

                                  RESERVE PERSONNEL, ARMY                         


                                                                               

                                                      

     Fiscal year 1999 appropriation        $2,167,052,000  
     Fiscal year 2000 budget request        2,270,964,000  
     Committee recommendation               2,235,055,000  
     Change from budget request               -35,909,000  

      The Committee recommends an appropriation of $2,235,055,000 for      
   Reserve Personnel, Army. The recommendation is an increase of           
   $68,003,000 above the $2,167,052,000 appropriated for fiscal year 1999. 
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 56 Insert here                                            


      The adjustments to the budget activities for Reserve Personnel, Army 
   are shown below:                                                        

                                                                               
                            [In thousands of dollars]                          

                                                                     

     xlBudget Activity 2: Other Training and Support:                     
       11750 Administration and Support/Enlistment Bonuses         2,200  
     xlOther Adjustments:                                                 
       12005 Pay Increase Provided in P.L. 106 31                -40,574  
       12030 4.8% Pay Raise Increase                               4,765  
       12045 JROTC Program                                         2,400  
       12050 Retirement Reform                                    -4,700  

                                  RESERVE PERSONNEL, NAVY                         


                                                                               

                                                      

     Fiscal year 1999 appropriation        $1,426,663,000  
     Fiscal year 2000 budget request        1,446,339,000  
     Committee recommendation               1,425,210,000  
     Change from budget request               -21,129,000  

      The Committee recommends an appropriation of $1,425,210,000 for      
   Reserve Personnel, Navy. The recommendation is a decrease of $1,453,000 
   below the $1,426,663,000 appropriated for fiscal year 1999.             
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 58 Insert here                                            


      The adjustments to the budget activities for Reserve Personnel, Navy 
   are shown below:                                                        

                                                                               
                            [In thousands of dollars]                          

                                                                                  

     xlBudget Activity 2: Other Training and Support:                                  
       12600 Administration and Support/Enlistment Bonuses                      5,000  
       12600 Administration and Support/Selective Reenlistment Bonuses          4,000  
     xlOther Adjustments:                                                              
       12855 Pay Increase Provided in P.L. 106 31                             -29,833  
       12895 4.8% Pay Raise Increase                                            3,004  
       12899 JROTC Program                                                      1,400  
       12910 Retirement Reform                                                 -4,700  


                              RESERVE PERSONNEL, MARINE CORPS                     


                                                                               

                                                      

     Fiscal year 1999 appropriation          $406,616,000  
     Fiscal year 2000 budget request          409,189,000  
     Committee recommendation                 403,822,000  
     Change from budget request                -5,367,000  

      The Committee recommends an appropriation of $403,822,000 for Reserve
   Personnel, Marine Corps. The recommendation is a decrease of $2,794,000 
   below the $406,616,000 appropriated for fiscal year 1999.               
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 60 Insert here                                            


      The adjustments to the budget activities for Reserve Personnel,      
   Marine Corps are shown below:                                           

                                                                               
                            [In thousands of dollars]                          

                                                             

     xlOther Adjustments:                                         
       13755 Pay Increase Provided in P.L. 106 31         -7,820  
       13780 JROTC Program                                 2,600  
       13790 4.8% Pay Raise Increase                         853  
       13795 Retirement Reform                            -1,000  

                                RESERVE PERSONNEL, AIR FORCE                      


                                                                               

                                                      

     Fiscal year 1999 appropriation          $852,324,000  
     Fiscal year 2000 budget request          881,170,000  
     Committee recommendation                 872,978,000  
     Change from budget request                -8,192,000  

      The Committee recommends an appropriation of $872,978,000 for Reserve
   Personnel, Air Force. The recommendation is an increase of $20,654,000  
   above the $852,342,000 appropriated for fiscal year 1999.               
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 62 Insert here                                            


      The adjustments to the budget activities for Reserve Personnel, Air  
   Force are shown below:                                                  

                                                                               
                            [In thousands of dollars]                          

                                                                

     xlOther Adjustments:                                            
       14605 Pay Increase Provided in P.L. 106 31           -13,143  
       14620 4.8% Pay Raise Increase                          1,751  
       14626 JROTC Program                                    1,900  
       14630 Retirement Reform                               -1,000  
       14635 Transfer of Test Support Mission/AGR's           2,300  

                           TEST SUPPORT MISSION                          

      The Committee recommends an increase over the budget request of      
   $2,300,000 in ``Reserve Personnel, Air Force'' to provide additional    
   personnel costs required for the proposed transfer of the Functional    
   Check Flight mission and two Test Support missions to the Air Force     
   Reserve Command from the active Air Force.                              
                               NATIONAL GUARD PERSONNEL, ARMY                     


                                                                               

                                                        

     Fiscal year 1999 appropriation          $3,489,987,000  
     Fiscal year 2000 budget request          3,570,639,000  
     Committee recommendation                 3,486,427,000  
     Change from budget request                 -84,212,000  

      The Committee recommends an appropriation of $3,486,427,000 for      
   National Guard Personnel, Army. The recommendation is a decrease of     
   $3,560,000 below the $3,489,987,000 appropriated for fiscal year 1999.  
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 64 Insert here                                            



      The adjustments to the budget activities for National Guard          
   Personnel, Army are shown below:                                        

                                                                               
                            [In thousands of dollars]                          

                                                                      

     xlBudget Activity 2: Other Training and Support:                      
       15200 Administration and Support/Enlistment Bonuses          7,000  
     xlOther Adjustments:                                                  
       15355 Pay Increase Provided in P.L. 106 31                 -70,416  
       15370 4.8% Pay Raise Increase                                7,704  
       15395 Retirement Reform                                     -8,500  
       15400 Workyear Reduction/Annual Training                   -20,000  

                ARMY NATIONAL GUARD WORKYEAR REQUIREMENTS                

      The Committee recommends a reduction from the budget request of      
   $20,000,000 due to a General Accounting Office (GAO) review of the Army 
   National Guard's military personnel budget request. The GAO reports that
   the Guard has overstated the number of average workyears of military    
   personnel that is budgeted in fiscal year 2000 because of overstated    
   participation rates for annual training and the variance in costs of the
   different pay groups. In addition, the GAO reports that last year the   
   Army Guard moved approximately $86,000,000 of annual training funds     
   (budget activity one) to pay for schools and special training costs     
   (budget activity two) without the Department's knowledge and without    
   congressional approval. The Committee directs that the Secretary of     
   Defense report to the Committee, by February 1, 2000, on its efforts to 
   ensure the Army Guard's accounting procedures for determining annual    
   training and schools and special training costs are properly coded, and 
   that the Army Guard follow the Department's financial management        
   regulations in the future.                                              
                            NATIONAL GUARD PERSONNEL, AIR FORCE                   


                                                                               

                                                        

     Fiscal year 1999 appropriation          $1,377,109,000  
     Fiscal year 2000 budget request          1,486,512,000  
     Committee recommendation                 1,456,248,000  
     Change from budget request                 -30,264,000  

      The Committee recommends an appropriation of $1,456,248,000 for      
   National Guard Personnel, Air Force. The recommendation is an increase  
   of $79,139,000 above the $1,377,109,000 appropriated for fiscal year    
   1999.                                                                   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 66 Insert here                                            


      The adjustments to the budget activities for National Guard          
   Personnel, Air Force are shown below:                                   

                                                                               
                            [In thousands of dollars]                          

                                                              

     xlOther Adjustments:                                          
       16105 Pay Increase Provided in P.L. 106 31         -30,462  
       16130 4.8% Pay Raise Increase                        3,398  
       16140 Retirement Reform                             -3,700  
       16145 C 130 Personnel                                  500  


                                          TITLE II                                

                                  OPERATION AND MAINTENANCE                       

      The fiscal year 2000 budget request for Operation and maintenance is 
   $91,268,249,000 in new budget authority, which is an increase of        
   $7,225,435,000 above the amount appropriated in fiscal year 1999. The   
   request also includes a $150,000,000 cash transfer from the National    
   Defense Stockpile Transaction fund.                                     
      The accompanying bill recommends $93,686,750,000 for fiscal year     
   2000, which is an increase of $2,418,501,000 above the budget request.  
   In addition, the Committee recommends that $150,000,000 be transferred  
   from the National Defense Stockpile Transaction fund, as proposed in the
   budget request.                                                         
      These appropriations finance the costs of operating and maintaining  
   the Armed Forces, including the reserve components and related support  
   activities of the Department of Defense (DoD), except military personnel
   costs. Included are pay for civilians, services for maintenance of      
   equipment and facilities, fuel, supplies, and spare parts for weapons   
   and equipment. Financial requirements are influenced by many factors,   
   including force levels such as the number of aircraft squadrons, Army   
   and Marine Corps divisions, installations, military personnel strength  
   and deployments, rates of operational activity, and the quantity and    
   complexity of equipment such as aircraft, ships, missiles and tanks in  
   operation.                                                              
   The table below summarizes the Committee's recommendations.             


   Offset Folios 69 to 70 Insert here                                      


                             OPERATION AND MAINTENANCE OVERVIEW                   

      Despite increases proposed by the administration in the fiscal year  
   2000 budget request, the Committee notes that there are substantial     
   unfunded requirements in the Operation and Maintenance accounts that are
   critical to maintaining the readiness of U.S. armed forces, enhancing   
   the sustainability of such forces when they are deployed, and improving 
   the condition of the supporting infrastructure. As in past years, the   
   Committee requested that the Military Services identify their top       
   unfunded priorities for consideration during the Committee's            
   deliberations on the fiscal year 2000 Department of Defense             
   Appropriations bill. Once again, the Military Services have identified  
   significant shortfalls in the Operation and Maintenance accounts. In the
   Committee's view, these shortfalls pose a serious risk to both the near 
   term readiness of U.S. forces as well as the ability of these forces to 
   sustain combat operations. These shortfalls are evident in a number of  
   areas financed by the Operation and Maintenance accounts including:     
   funding for the rotational training centers; funding for stocks of spare
   and repair parts necessary to ensure that equipment is mission capable  
   and can be sustained once deployed; depot-level maintenance of weapons  
   systems and support equipment; and, basic troop support gear such as    
   cold weather clothing and body armor. These shortfalls are also apparent
   in the funding required to maintain the condition of U.S. military bases
   which, despite increases in the budget request, is perennially          
   underfunded. To correct these deficiencies, the Committee recommends    
   increased funding above the budget request in a number of areas         
   including those areas of need cited above.                              
      The Committee notes that an additional $2,250,000,000 was provided in
   the fiscal year 1999 Emergency Supplemental Appropriations Act (Public  
   Law 106 31) for critical, readiness-related shortfalls identified by the
   military Services including: spare parts, depot maintenance, readiness  
   related training and base operations support. These increases, outlined 
   below, have had a direct impact on certain recommendations made by the  
   Committee in its deliberations on the fiscal year 2000 Department of    
   Defense Appropriations bill. For instance, the Committee recommendation 
   for additional spare parts for the Services is biased toward improving  
   stocks of war reserve materials because a large percentage of the       
   Department's immediate needs were met in Public Law 106 31, the         
   Supplemental Appropriations Act.                                        
      The following listing indicates those readiness categories and       
   funding addressed earlier this year in Public Law 106 31.               

                                                                               

                                                    

     Spare Parts Requirements            $1,124,900,000  
     Depot Maintenance                      742,500,000  
     Readiness Training and OPTEMPO         200,200,000  
     Base Operations Support                182,400,000  

      The Committee also notes that there are areas in the Operation and   
   Maintenance accounts where savings can be achieved to free up resources 
   both for readiness needs, and to make resources available for more      
   robust modernization programs. Given the need to correct deficiencies in
   the Operation and Maintenance accounts in order to enhance near-term    
   readiness and sustainability as well as weapons modernization, the      
   Committee believes it is imperative for the Department of Defense to use
   its Operation and Maintenance funding as efficiently as possible.       
   Therefore, the Committee recommends certain reductions based on         
   fact-of-life considerations, as well as management actions that the     
   Department should undertake to streamline activities funded in the      
   Operation and Maintenance accounts.                                     
                     ROTATIONAL TRAINING INITIATIVES                     

      The Committee recommends an increase of $112,100,000 above the budget
   request to address shortages of equipment and parts and to improve the  
   state of infrastructure at each of the Military Service's rotational    
   training centers. Consistent with the recommendations of the House Armed
   Services Committee in the report accompanying the fiscal year 2000      
   National Defense Authorization bill, the Committee finds that the       
   rotational training centers are a key to maintaining the readiness of   
   U.S. forces, and that the equipment, facilities and ranges at these     
   centers are in urgent need of upgrades and repairs. To address these    
   shortfalls, the Committee recommends additional funding over the budget 
   request, to be distributed as follows:                                  

                                                                               

                                 

     Army                $42,100,000  
     Navy                  2,000,000  
     Marine Corps         25,700,000  
     Air Force            42,300,000  


                        REAL PROPERTY MAINTENANCE                        

      The Committee recognizes that the Administration, for the first time,
   requested funding for the Quality of Life Enhancements, Defense account.
   While the Committee recommends including funding in this account, as    
   discussed elsewhere in this report, the Committee recommends returning  
   the funds included in the budget request to the Services' Operation and 
   Maintenance accounts. The Committee notes that a substantial portion of 
   the funding included in the budget request for Quality of Life          
   Enhancements, Defense is not related to quality of life enhancing       
   projects such as dormitories, barracks and related facilities.          
   Similarly, the Committee notes that the funding proposed in the budget  
   request was derived primarily by transferring funds which would have    
   otherwise been included in the Services' Operation and Maintenance      
   accounts.                                                               
      Despite the administration's change in approach to real property     
   maintenance (RPM) funding, the budget materials acknowledge that the    
   central problem of RPM, a persistent and growing backlog, continues     
   unabated. The budget estimates indicate that the RPM backlog is at least
   $9,600,000,000 and growing. The Committee notes with interest that the  
   budget materials have not even included an estimate of the backlog of   
   Army RPM for the past two years. (The last available data indicate that 
   the backlog for this one service alone was $5,900,000,000.) To improve  
   the information in the budget request, the Committee directs that the   
   Department of Defense include estimates of the backlog of real property 
   maintenance for the Army as well as all other Services and Defense-wide 
   components in the fiscal year 2001 budget request, and all subsequent   
   budget requests.                                                        
      In order to reduce the backlog of real property maintenance          
   requirements, the Committee recommends an increase totaling $854,000,000
   above the budget request. Of this amount, $800,000,000 for the Active   
   components is provided in the Quality of Life Enhancements, Defense     
   account as described elsewhere in this report. Funding over the budget  
   request for the Guard and Reserve components totals $54,000,000 and is  
   provided to each component's respective Operation and Maintenance       
   account. The additional funding over the budget request is distributed  
   as follows:                                                             




          Army                           $182,600,000



          Navy                           285,200,000



          Marine Corps                   62,100,000



          Air Force                      259,600,000



          Defense-wide                   10,500,000



          Army Reserve                   10,000,000



          Navy Reserve                   10,000,000



          Marine Corps Reserve           4,000,000



          Air Force Reserve              10,000,000



          Army National Guard            10,000,000



          Air National Guard             10,000,000


                         BASE OPERATIONS SUPPORT                         

      The Committee recommends increases above the budget request totaling 
   $439,800,000 to meet unfunded requirements associated with base         
   operations support, broken out by component in the table below. The     
   Services continue to suffer from significant unfunded priorities in     
   their base operations support accounts. The Committee recognizes that   
   unfunded requirements in this area have an indirect yet corrosive effect
   on the readiness of U.S. forces, as the Services have and will continue 
   to shift funding from readiness related activities, such as training and
   equipment maintenance, to meet ``must pay'' bills related to base       
   operations. Due to continuing concerns about installation security and  
   force protection, the Committee expects the Department of Defense to    
   allocate not less than 5 percent of the increases over the budget       
   request for the active military services for base operations support to 
   programs and costs associated with installation security and force      
   protection.                                                             




          Army                           $154,600,000



          Navy                           91,200,000



          Marine Corps                   10,000,000



          Air Force                      144,200,000



          Army Reserve                   10,000,000



          Navy Reserve                   10,000,000



          Air Force Reserve              10,000,000



          Air National Guard             9,800,000


                            DEPOT MAINTENANCE                            

      The Committee recommends an increase of $297,900,000 above the budget
   request to meet unfunded depot-level equipment maintenance requirements.
   The Committee notes that the Department of Defense has an unfunded      
   backlog of depot-level maintenance of over $1,100,000,000, with an      
   additional $200,000,000 in unfunded ship maintenance availabilities. As 
   it has noted in previous years, the Committee observes the fiscal year  
   2000 budget request once again provides for depot maintenance funding at
   significantly less than 100 percent of the Services' requirements. In   
   order to reduce backlogs, and improve the availability of weapons       
   systems and related equipment, the Committee recommends increases over  
   the budget request, to be distributed as outlined below. Further detail 
   on the distribution of this funding is found in the tables accompanying 
   the description of each Service's Operation and Maintenance account.    
   The following list indicates the additions over the budget request.     





          Army                           $35,600,000



          Navy                           125,100,000



          Marine Corps                   20,000,000



          Air Force                      68,800,000



          Army Reserve                   3,400,000



          Air Force Reserve              15,000,000



          Army National Guard            10,000,000



          Air National Guard             20,000,000


                     SPARES AND WAR RESERVE MATERIEL                     

      The Committee recommends an increase of $453,000,000 above the budget
   request to meet unfunded requirements for the acquisition of spare and  
   repair parts for both peacetime operations as well as war reserve       
   requirements. The Services have significant unfunded requirements as    
   regards to the acquisition of critical inventory, including unit        
   readiness spares and war reserve sustainment spares for the Army;       
   aviation spares for the Navy, Marine Corps, Air Force and Air National  
   Guard; readiness spares kits and bare base kits for the Air Force; war  
   reserve material procured by the Defense Logistics Agency; and various  
   peacetime operating stocks in support of Marine Corps Reserve and Air   
   National Guard requirements. The availability of this material has a    
   direct bearing on the Services' ability to prosecute the two MRC        
   scenario postulated in the National Security Strategy.                  
      To address these shortfalls, the Committee recommends increases over 
   the budget request as outlined below. In addition, the Committee directs
   that the Secretary of Defense provide a report to the congressional     
   defense committees not later than January 31, 2000, which delineates the
   amounts that the each Service plans to spend on peacetime operating     
   stocks and war reserve materials. The Committee further directs the     
   Secretary of the Army to provide a report to the congressional defense  
   committees not later than February 28, 2000, that identifies the        
   components of both the peacetime operating stocks and war reserve       
   materials that will be allocated to improve the readiness of Apache     
   helicopters.                                                            

   The following list indicates the additions over the budget request.     





          Army                           $213,500,000



          Navy                           85,000,000



          Marine Corps                   25,000,000



          Air Force                      115,000,000



          Defense-wide                   3,000,000



          Marine Corps Reserve           1,500,000



          Air National Guard             10,000,000


                       FORCE PROTECTION INITIATIVES                      

      The Committee recommends an increase of $41,400,000 above the budget 
   request for force protection to meet unfunded priorities identified by  
   the Chief of Naval Operations and the Chief of Staff of the Air Force.  
   This increased funding is distributed as outlined below. In addition to 
   these amounts, as described elsewhere in this report the Committee has  
   directed that not less than 5 percent of the additional funding provided
   above the budget request for base operations support for the active duty
   military services be directed toward enhanced facilities security and   
   force protection requirements.                                          

                                                                               

                             

     Navy            $36,400,000  
     Air Force         5,000,000  

                       SOLDIER SUPPORT INITIATIVES                       

      The Committee recommends an increase of $88,000,000 above the budget 
   request in several Operation and Maintenance accounts for additional    
   soldier support equipment. The Committee notes that there continues to  
   be a substantial backlog of this type of equipment, which is essential  
   to sustain troops in the field and enhance combat readiness. Items to be
   procured with these extra funds include extended cold weather clothing, 
   body armor, equipment harnesses and other initial issue gear, and other 
   personnel support equipment items. The funds added above the budget     
   request are outlined below:                                             


                                                                               

                                        

     Army                       $26,000,000  
     Marine Corps                35,000,000  
     Marine Corps Reserve        13,000,000  
     Army National Guard         14,000,000  

                         OPERATING TEMPO FUNDING                         

      The Committee recommends an increase of $55,600,000 above the budget 
   request for training operations. Based on unfunded training needs       
   identified by the Service Chiefs, and the recommendations in the House  
   report accompanying the fiscal year 2000 National Defense Authorization 
   bill, the Committee recommends that this increased funding be           
   distributed as shown below. In addition, the Committee notes the        
   additional funds provided for the Air National Guard are for the purpose
   of increased flying hours in support of F 16 training activities.       

                                                                               

                                       

     Marine Corps              $10,600,000  
     Army Reserve               20,000,000  
     Army National Guard        10,000,000  
     Air National Guard         15,000,000  

                        RECRUITING AND ADVERTISING                       

      The Committee recognizes that the military Services' recruiting      
   efforts to enlist high quality recruits is continuing to be difficult   
   and recommends an increase of $103,800,000 over the budget request to   
   support the Department's efforts in achieving their recruiting          
   objectives.                                                             
      The Committee understands the Army is currently developing two new   
   test accession programs, the GED+ and the College First Program. These  
   programs while designed to expand recruiting markets to all qualified   
   applicants, and increase opportunities for youths to serve in the Army, 
   are also expected to increase minority representation in the military.  
   Of the funds provided, the Committee has included $33,000,000 for the   
   Army for recruiting and advertising, which will allow for the           
   implementation of these two new test programs.                          
                        Small Business Advertising                       

      The Committee understands that there are many qualified              
   minority-owned businesses, women-owned businesses, and small businesses 
   that design and place advertising and advertising campaigns, which can  
   assist the Department in its recruiting efforts using print, electronic,
   and the radio media. The Committee believes these firms can provide     
   valuable new insights and expertise to servicewide recruiting programs. 
   The Committee expects the Department to increase the use of these       
   qualified businesses in the initiation, design and placement of its     
   advertising in the print, radio and electronic media.                   

                 GUARD AND RESERVE UNFUNDED REQUIREMENTS                 

      The Committee recommends an increase of $356,600,000 over the budget 
   request for additional Guard and Reserve Operation and maintenance      
   requirements described by the Service's as readiness priorities, as     
   follows:                                                                




          Base Operations Support                $39,800,000



          Real Property Maintenance Backlog                54,000,000



          Depot Maintenance              48,400,000



          Optempo/Flying Hours           45,000,000



          Spares                         11,500,000



          Recruiting and Recruiter Support                51,500,000



          Military (civilian) technicians shortfall                48,000,000



          Information Management/Operations                31,400,000



          Initial Issue/ECWCS            27,000,000


               ARMY TRAINING AREA ENVIRONMENTAL MANAGEMENT               

      The Committee recommends providing $32,000,000 over the budget       
   request, in Operation and Maintenance, Army, Army Reserve, and Army     
   National Guard accounts, as outlined in the Army's unfunded requirements
   list, to conduct preventive maintenance on training grounds to ensure   
   continued realistic training and to protect the environment. This       
   funding is distributed as follows:                                      

                                                                               

                                        

     Army                       $24,736,000  
     Army Reserve                 1,000,000  
     Army National Guard          6,264,000  

                 HEADQUARTERS AND ADMINISTRATIVE EXPENSES                

      The Committee recommends a reduction of $179,000,000 below the budget
   request for headquarters and administrative activities. Despite past    
   attempts to streamline the management of DoD activities, the Committee  
   notes that the budget request once again reflects headquarters          
   activities which cost in excess of $3,000,000,000 in total and which are
   manned by over 40,000 personnel. In addition, the Committee agrees with 
   the assessment found in the House report accompanying the fiscal year   
   2000 National Defense Authorization bill that these figures             
   substantially understate the true funding and manning levels of         
   headquarters and administrative activities. Accordingly, the Committee  
   recommends the following reductions from the budget request:            

                                                                               

                                  

     Army                -$64,000,000  
     Navy                 -35,000,000  
     Air Force            -20,000,000  
     Defense-wide         -60,000,000  

                    CONSULTANTS AND ADVISORY SERVICES                    

      The Committee recommends a reduction of $40,000,000 below the budget 
   request for consulting and advisory services. Despite numerous unfunded 
   requirements which contribute directly to the readiness of U.S. forces, 
   or which represent must pay bills, as noted elsewhere in this report,   
   the Department continues to request substantial amounts for studies     
   which do not contribute directly to solving these fundamental problems. 
   Accordingly, the Committee recommends the following reductions from the 
   budget request:                                                         

                                                                               

                                  

     Army                -$10,000,000  
     Navy                 -10,000,000  
     Air Force            -10,000,000  
     Defense-wide         -10,000,000  

                         COMMUNICATIONS SERVICES                         

      The Committee recommends a reduction of $81,150,000 below the budget 
   request for communications services. The Committee notes that the budget
   request includes alarmingly high levels of both price and program       
   growth. For instance, on prices, the budget request reflects growth of  
   over 16 percent in some cases, as compared to the general purchase rate 
   of inflation of 1.5 percent. Therefore, the Committee recommends the    
   following reductions from the budget request:                           

                                                                               

                                  

     Army                -$36,000,000  
     Navy                 -23,000,000  
     Marine Corps            -150,000  
     Air Force            -22,000,000  

                            SECURITY PROGRAMS                            

      The Committee recommends a decrease of $24,067,000 below the budget  
   request for security programs of the Department of Defense. The budget  
   request reflects substantial growth for security programs, notably work 
   performed by the Defense Security Service and certain arms control      
   programs. A review performed by the House Appropriations Surveys and    
   Investigations staff indicates that this growth can be reduced and      
   effect neither the work of the Defense Security Service, nor U.S. treaty
   compliance obligations. Accordingly, the Committee recommends the       
   following reductions from the budget request:                           

                                                                               

                              

     Army             -$9,867,000  
     Navy              -6,900,000  
     Air Force         -7,300,000  


                  DEFENSE FINANCE AND ACCOUNTING SERVICE                 

      The Committee recommends a reduction of $30,000,000 below the budget 
   request for the Defense Finance and Accounting Service. The Committee   
   notes that, on balance, the budget portrays program growth in the       
   Services' Operation and Maintenance accounts, and is convinced that DFAS
   can further increase the efficiency of its operations. The Committee    
   therefore recommends this reduction be distributed as follows:          

                                                                               

                                 

     Army                -$9,300,000  
     Navy                 -9,300,000  
     Marine Corps         -2,000,000  
     Air Force            -9,400,000  

                    ACQUISITION CONTRACTING AND TRAVEL                   

      The Committee recommends a reduction of $17,531,000 from the budget  
   request for acquisition personnel travel and contracting expenses, to be
   distributed as follows:                                                 

                                                                               

                                 

     Army                -$3,350,000  
     Air Force            -4,181,000  
     Defense-Wide        -10,000,000  

             OPERATION AND MAINTENANCE BUDGET EXECUTION DATA             

      The Committee directs the Department of Defense to continue 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 Committee requires 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 Committee further
   directs 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.                                                               
                 OPERATION AND MAINTENANCE REPROGRAMMINGS                

      The Committee directs that proposed transfers of funds between O 1   
   budget activities in excess of $15,000,000 be subject to normal, prior  
   approval reprogramming procedures. Items for which funds have been      
   specifically provided in any appropriation in this report using phrases 
   ``only for'' or ``only to'' are Congressional interest items for the    
   purpose of the Base for Reprogramming (DD form 1414). Each of these     
   items must be carried on the DD form 1414 at the stated amount, or a    
   revised amount if changed during conference or if otherwise specifically
   addressed in the conference report. In addition, due to continuing      
   concerns about force readiness and the diversion of Operation and       
   maintenance funds, the Committee directs the Department of Defense to   
   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:  
           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.                               
           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, Army                                         

   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.                                
                               A 76 STUDIES                              

      The Committee harbors serious concerns about the current DoD         
   outsourcing and privatization effort. While the Committee recognizes the
   need to reduce DoD infrastructure costs, the cost savings benefits from 
   the current outsourcing and privatization effort are, at best,          
   debatable. Despite end-strength savings, there is no clear evidence that
   this effort is reducing the cost of support functions within DoD with   
   high cost contractors simply replacing government employees. In         
   addition, the current privatization effort appears to have created      
   serious oversight problems for DoD especially in those cases where DoD  
   has contracted for financial management and other routine administrative
   functions. DoD appears to be moving toward a situation in which         
   contractors are overseeing and paying one another with little DoD       
   oversight or supervision. As a result of this developing situation, the 
   Committee recommends a reduction of $100,000,000 from the budget request
   as described in a new general provision, Section 8109. In addition, the 
   Committee directs that DoD undertake a comprehensive review of A 76     
   studies as described in a new general provision, Section 8110.          

                              URBAN WARFARE                              

      The Department of Defense has recently placed increased emphasis on  
   the importance of urban warfare. For example, the Committee is aware    
   that the Army has recently begun efforts to acquire weapons systems that
   would have special application to an urban environment, and has         
   developed an urban training area within the Joint Readiness Training    
   Center. Nevertheless, the Committee is persuaded that efforts in this   
   area must be substantially expanded in order to improve the readiness of
   U.S. forces for possible conflicts centered in urban environments.      
   Consequently, the Secretary of Defense shall submit a report to the     
   congressional defense committees not later than March 31, 2000, that    
   provides the following: an inventory of Department of Defense assets    
   dedicated to urban warfare and associated training, including equipment 
   and training areas; a description of the training programs specific to  
   urban warfare; and an assessment of the readiness of U.S. forces in the 
   conduct of urban warfare. This report shall also provide an assessment  
   of shortfalls in equipment, personnel and facilities necessary to       
   enhance the posture of U.S. forces in this area.                        
                 CONTROLLED HUMIDITY PRESERVATION PROGRAM                

      The Committee believes that the Controlled Humidity Preservation     
   (CHP) Program will enhance the condition of Department of Defense       
   equipment such as weapons systems and associated support equipment by   
   minimizing maintenance requirements associated with moisture-induced    
   corrosion. Accordingly, the Committee requires that the Secretary of    
   Defense submit a report to the congressional defense committees not     
   later than March 31, 2000, that outlines measures taken by each of the  
   military Services to expand the application of the CHP Program.         
                              OPERATION AND MAINTENANCE, ARMY                     


                                                                               

                                                        

     Fiscal year 1999 appropriation         $17,185,623,000  
     Fiscal year 2000 budget request         18,610,994,000  
     Committee recommendation                19,629,019,000  
     Change from budget request               1,018,025,000  

      The Committee recommends an appropriation of $19,629,019,000 for     
   Operation and Maintenance, Army. The recommendation is an increase of   
   $2,443,396,000 above the amount appropriated for fiscal year 1999.      
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 83 to 84 Insert here                                      


      The adjustments to the budget activities for Operation and           
   Maintenance, Army are shown below:                                      

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          250 Soldier Support--Extended Cold Weather Clothing system (ECWCS)                19,000



          250 Military Gator             8,000



          250 Soldier Support--Field Kitchen Modern Burner Units (MBU)                4,000



          250 Soldier Support--Soldier Modernization                3,000



          450 Rotational Training--NTC Prepo Fleet Maintenance                28,000



          450 Rotational Training--Korea Training Area                4,100



          450 Rotational Training--CMTC Mission Support                4,000



          450 Rotational Training--FORSCOM Developments to National Training Center                4,000



          450 Rotational Training--JRTC Prepo Fleet Maintenance                2,000



          550 Training Area Environmental Management                23,984



          650 Depot Maintenance/System Sustainment Tech Support                35,600



          650 Humanitarian Airlift Aircraft Maintenance                200



          750 Transportation Improvements-National Training Center                12,500



          750 Ft. Baker Repairs and Maintenance                6,000



          750 NTC Airhead                2,000



          750 Security Improvements-NTC Heliport                300



          850 Headquarters growth                -4,000

   Budget Activity 3: Training and Recruiting:                             



          1650 Air Battle Captain Program                1,250



          1850 Improved Moving Target Simulator (IMTS)                3,500



          1950 Center for Hemispheric Defense Studies                1,500



          2000 University of Mounted Warfare                3,000



          2000 Armor Officers Distance Learning                500



          2000 Training Area Environmental Management                440



          2050 Training Area Environmental Management                312



          2200 Recruiting and Advertising                17,500



          2400 Junior ROTC               6,000



          2450 Recruiting Leases                15,500

   Budget Activity 4: Administration and Servicewide Activities:           



          2650 Security Program (Arms Control, DSS)                -9,867



          2800 Pulse Technology                5,000



          2850 Supercomputing Work                6,500



          2850 Logistics and Technology Project                1,100



          2850 Power Projection C4 Infrastructure                -16,552



          3000 Acquisition Travel and Contracts                -3,350



          3000 Headquarters growth                -5,000



          3050 Service-wide communication underexecution                -20,000



          3200 Ft. Atkinson Preservation                250



          3200 DFAS Reduction            -9,300



          3250 Claims Underexecution                -43,400



          3350 Corps of Engineers Building Demolition                4,650

   Undistributed:                                                          



          3710 Classified Undistributed                2.500



          3775 Base Operations Support                154,600



          3835 Memorial Events           400



          3940 Real Property Maintenance (Transfer From Quality of Life Enhancements)                625,808



          3960 Contract and Advisory Services                -10,000



          4070 Management Headquarters                -55,000



          4080 Reductions in JCS Exercises                -10,000



          4085 Spares/War Reserve Material                213,500



          4086 Communications Reduction                -16,000



               CECOM telecommunications upgrades (Ft. Monmouth)                (18,600)


                     LOGISTICS AND TECHNOLOGY PROJECT                    

      The Committee recognizes the need for substantial improvements in the
   Department of Defense logistics system. Accordingly, the Committee      
   directs that $1,100,000 of the funds provided for Operation and         
   Maintenance, Army be used only to initiate a Logistics and Technology   
   project to establish benchmarks based on civilian technologies and to   
   develop and present educational materials to DoD logistics personnel.   
         government-owned, contractor-operated (goco) facilities         

      The Committee remains concerned about the Army's lack of progress in 
   recovering costs associated with the environmental restoration of GOCO  
   facilities. The Committee is disappointed with the gaps in the Army's   
   information collection efforts on 24 GOCO facilities, frustrated with   
   the continued failure to file claims, and skeptical that the Army's     
   proposed recovery strategy will produce results. Accordingly, the       
   Committee includes a provision in Operation and Maintenance, Army which 
   withholds $4,000,000 of the funds available in the Army Administration  
   subactivity group until the completion of a 120-day assessment of the   
   prospects of recovering costs associated with the environmental         
   restoration at these 24 GOCO facilities.                                
      Consistent with its request in last year's Conference Report, the    
   Committee further directs that no later than March 30, 2000, the        
   Secretary of the Army shall submit a report on the results of that      
   assessment to the congressional defense committee that provides: a      
   summary of historical third-party insurance coverage for each GOCO      
   facility; a detailed legal analysis of the potential claims for each of 
   the GOCO facilities; recommendations as to which insurance carriers to  
   notify, including the procedure for notifying the carriers;             
   recommendations for interfacing with past and present GOCO contractors  
   relative to the pursuit of insurance recovery; recommendations for      
   responding to insurance carrier inquiries and/or coverage positions; and
   recommendations for maximizing the insurance recovery in an efficient   
   and cost effective manner, including a projected timetable for          
   completion.                                                             
                      HUMANITARIAN AIRLIFT AIRCRAFT                      

      The Committee understand that Department of the Army is in possession
   of a C 12 Aircraft which may be deemed surplus. The Committee directs   
   the Secretary of the Army to convey, without consideration, this plane  
   to a non-governmental organization (NGO) which provides humanitarian    
   airlift primarily to sub-Saharan Africa. Further, the committee includes
   $200,000 solely for the purposes of repairing the aircraft prior to     
   transfer.                                                               
                NATIONAL TRAINING CENTER HELIPORT SECURITY               

      The Committee believes that there is not adequate security for the   
   National Training Center's heliport. To begin addressing this problem,  
   the Committee provides $300,000 only to begin implementing the planned  
   security improvements at this facility.                                 
                             Memorial Events                             

      The Committee has included an additional $400,000 above the budget   
   request of $1,500,000 only to support memorial events to reflect        
   increased costs.                                                        
                          GENERAL PURPOSE TENTS                          

      Of the funds made available in Operation and Maintenance, Army, for  
   soldier life support equipment, the Committee directs that $18,000,000  
   be made available for the purpose of meeting prospective requirements   
   for modular general purpose tents (M.G.P.T.) associated with wartime and
   other mobilizations. The Committee understands that the M.G.P.T. system 
   developed by the Army provides a more durable and habitable replacement 
   for the current general purpose tent, and has provided funds to continue
   the program under Army management.                                      
                   ABRAMS INTEGRATED MANAGEMENT PROGRAM                  

      The Department of Defense budget request for fiscal year 2000        
   includes funding of $72,600,000 for the Abrams Integrated Management XXI
   Program (AIM XXI), to rebuild early versions of the Abrams tank and to  
   bring these tanks up to the most recent configuration. The Committee    
   supports this program, and the funding level proposed in the budget     
   request.                                                                

                     INFORMATION TECHNOLOGY PROGRAMS                     

      Information on the Armor Officer Distance Learning, Supercomputing   
   Work, and Power Projection C4 Infrastructure programs can be found in   
   the Information Technology section of this report.                      
                              OPERATION AND MAINTENANCE, NAVY                     


                                                                               

                                                       

     Fiscal year 1999 appropriation        $21,872,399,000  
     Fiscal year 2000 budget request        22,188,715,000  
     Committee recommendation               23,029,584,000  
     Change from budget request                840,869,000  

      The Committee recommends an appropriation of $23,029,584,000 for     
   Operation and Maintenance, Navy. The recommendation is an increase of   
   $1,157,185,000 above the amount appropriated for fiscal year 1999.      

                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 85 to 87 insert here                                      


      The adjustments to the budget activities for Operation and           
   Maintenance, Navy are shown below:                                      

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          4400 Flying Hours (Marine Aviation Logistics CH 46/7 58)                27,400



          4400 UAV Flight Hours                2,000



          4450 Contractor Maintenance Support (Marine Corps Aviation)                3,100



          4450 Rotational Training--Naval Air Strike Airwarfare Center                2,000



          4600 Depot Maintenance--Aircraft and Support Equipment Rework                37,600



          4600 Depot Maintenance--EA 6B Depot Support (Marine Corps Aviation)                2,500



          4600 Depot Maintenance--EA 6B Pod Repair (Marine Corps Aviation)                1,000



          5000 Depot Maintenance--Ship Depot Maintenance                55,000



          5400 Joint Warfare Analysis Center                5,000



          5500 Unjustified Growth for USACOM                -2,000



          5550 Reverse Osmosis Desalinators                500



          5950 Depot Maintenance--Aegis Cruiser Upgrade Program                15,000



          5950 Depot Maintenance--MK 45 Overhaul                10,000



          5950 Depot Maintenance--CWIS Overhaul                4,000

   Budget Activity 2: Mobilization:                                        



          6650 NWS Concord               500

   Budget Activity 3: Training and Recruiting:                             



          7300 Monterey Institute for Counter Proliferation Studies                4,000



          7300 Naval Postgraduate School--Facility Maintenance                2,000



          7300 Defense Language Institute                1,500



          7350 CNET                      4,000



          7350 Navy Electricity and Electronic Training                4,000



          7550 Recruiting and Advertising                5,000



          7700 Junior ROTC               3,500

   Budget Activity 4: Administration and Servicewide Activities:           



          8000 DFAS Reduction            -9,300



          8250 Servicewide Communications                -4,000



          8600 ATIS                      2,500



          8600 Object Oriented Simulations/Reengineering                2,500



          8750 Integrated Combat Systems Test Facility Support                2,000



          9000 Security Programs (DSS)                -6,900

   Undistributed:                                                          



          9355 Real Property Maintenance (Transfer from Quality of Life Enhancements)                508,369



          9357 Force Protection (Afloat)                24,400



          9357 Force Protection (Ashore)                12,000



          9360 Classified Programs Undistributed                5,500



          9395 Base Operations Support                91,200



          9540 Navy Environmental Leadership Program                5,000



          9590 Executive Education Demonstration Project                1,000



          9600 Spares                    85,000



          9700 Management Headquarters                -35,000



          9705 Reduction in JCS Exercises                -2,000



          9710 Contract and Advisory Services                -10,000



          9725 Communications Reduction                -19,000


                          OCEANOGRAPHIC RESEARCH                         

      Within the funds provided for Operation and Maintenance, Navy, the   
   Committee directs that $7,500,000 be used only to fund backlogs in      
   oceanographic research.                                                 
                      NAVAL WEAPONS STATION CONCORD                      

      The Committee recommends an increase of $500,000 above the budget    
   request only to conduct a joint-use study examining the potential for   
   joint use of the Naval Weapons Station, Concord (CA), by civilian and   
   military entities that is consistent with the missions of the Navy and  
   the Army and the needs of the surrounding communities. The study shall  
   be conducted by the Navy in conjunction with the Army and the cities of 
   Concord, Martinez, and Pittsburg, Contra Costa County, the communities  
   of Clyde and Bay Point, and the East Bay Regional Parks District. This  
   study shall be concluded no later than December 31, 2000.               
                     PORTABLE FIREFIGHTING EQUIPMENT                     

      The Committee is concerned about the condition and types of equipment
   currently used by Navy and Marine Corps initial fire fighting response  
   teams. The Committee is aware that equipment has recently become        
   available that can improve the effectiveness of fire fighters while     
   substantially improving the safety of working conditions for such       
   personnel. Accordingly, the Committee directs that not less than        
   $300,000 of the funds made available in Operation and Maintenance, Navy 
   be used to purchase commercially available portable foam supply vests.  
                    VIEQUES RANGE COMPLEX, PUERTO RICO                   

      The Committee is deeply concerned about the tragic accident which    
   occurred in April 1999 on the Navy's training range on the Island of    
   Vieques. The Committee recognizes that the Navy considers this range to 
   be a critical training asset, necessary to maintain the readiness of the
   aviation units of the Navy's Atlantic Fleet. However, because of this   
   incident and other factors, the Committee directs the Navy to reexamine 
   this issue, supports the Navy's decision to temporarily suspend all     
   training at Vieques, and awaits the results of the panel that the       
   Secretary of Defense has appointed to review this incident. The         
   Committee believes the Panel must place special emphasis on reviewing   
   the actual need for the Navy's use of the Vieques range, and should     
   study the results of the Puerto Rican Special Commission on Vieques. In 
   addition, the Committee directs the Panel to look at the use of         
   alternative sites.                                                      
                     NAVAL AIR STATION (NAS) LEMOORE                     

      The Committee strongly believes that a key to enhancing retention    
   rates in the Navy is to improve the quality of life at its key bases and
   installations. In particular, the Committee has been told by many Navy  
   fighter pilots that the deficiency of quality of life facilities,       
   including recreation facilities, at NAS Lemoore, California is a        
   significant reason for the retirement of experienced personnel. As the  
   major new concentration for west coast tactical Naval Aviation, the     
   excellence of this facility is critical to morale and retention. Because
   NAS Lemoore is located in a remote and isolated location, the normal    
   metrics defining policy for construction of revenue generating          
   recreational facilities cannot prevail. The Committee encourages the    
   Department of Defense to find a method such as designation as remote and
   funding by appropriated funds, or waiver of the normal parameters for   
   rates of return to allow for construction of necessary recreation       
   facilities at NAS Lemoore. The Committee directs DoD to report on this  
   plan by December 31, 1999.                                              
             NAVY ELECTRICITY AND ELECTRONICS TRAINING SERIES            

      Information on this project can be found in the Information          
   Technology section of this report.                                      
                          OPERATION AND MAINTENANCE, MARINE CORPS                 


                                                                               

                                                      

     Fiscal year 1999 appropriation        $2,578,718,000  
     Fiscal year 2000 budget request        2,558,929,000  
     Committee recommendation               2,822,004,000  
     Change from budget request               263,075,000  

      The Committee recommends an appropriation of $2,822,004,000 for      
   Operation and Maintenance, Marine Corps. The recommendation is an       
   increase of $243,286,000 above the amount appropriated for fiscal year  
   1999.                                                                   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 91 insert here                                            


      The adjustments to the budget activities for Operation and           
   Maintenance, Marine Corps are shown below:                              

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          10050 Soldier Support--Initial Issue                30,000



          10050 Rotational Training--MCAGCC Improvements                25,700



          10050 Training and OPTEMPO (III MEF Airlift Requirements)                10,600



          10050 Soldier Support--Body Armor                5,000



          10050 NBC Defense Equipment                1,100



          10100 Corrosion Control                13,800



          10100 Fuel Conversion to JP 5/8                1,100



          10150 Depot Maintenance                20,000



          10350 Care in Storage (WRM Materials)                2,000

   Budget Activity 3: Training and Recruiting:                             



          11200 Recruiting and Advertising                5,000



          11250 Off-Duty and Voluntary Education                3,000



          11300 Junior ROTC              2,000

   Budget Activity 4: Administration and Servicewide Activities:           



          11650 DFAS Reduction           -2,000

   Undistributed:                                                          



          11905 Real Property Maintenance (Transfer from Quality of Life Enhancements)                120,225



          11945 Base Operations Support                10,000



          12030 Reduction in JCS Exercises                -2,400



          12070 Marine Corps Security Guards                4,100



          12075 Spares/War Reserve Materiel                25,000



          12085 Communications Reductions                -150



          12090 IRV Transfer             -11,000


                              BLOUNT ISLAND                              

      The Committee supports the actions of the Marine Corps to acquire the
   Blount Island Command Complex property that is currently under lease.   
   The Committee expects that this initiative will include acquisition of  
   all surrounding property impacted by the current explosive safety       
   quantity distance (ESQD) arc to permanently prevent development that is 
   incompatible with the loading/offloading of ordnance on Maritime        
   Prepositioning Ships.                                                   
                            OPERATION AND MAINTENANCE, AIR FORCE                  


                                                                               

                                                        

     Fiscal year 1999 appropriation         $19,021,045,000  
     Fiscal year 2000 budget request         20,313,203,000  
     Committee recommendation                21,641,099,000  
     Change from budget request               1,321,896,000  

      The Committee recommends an appropriation of $21,641,099,000 for     
   Operation and Maintenance, Air Force. The recommendation is an increase 
   of $2,619,964,000 above the amount appropriated for fiscal year 1999.   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folios 93 to 95 insert here                                      


      The adjustments to the budget activities for Operation and           
   Maintenance, Air Force are shown below:                                 

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          12600 Battlelabs--Engineering and Technical Support                4,000



          12650 Reverse Osmosis Dersalinators                1,000



          12750 Rotational Training--AETC Mission Essential Equipment                14,000



          12750 Rotational Training--Utah Test and Training Range Support                11,700



          12750 Rotational Training--Funding for Air Warfare Center Range Support                6,100



          12750 Rotational Training--AETC Range Improvements                5,900



          12750 Rotational Training--Funding for Air Warfare Center Fiber Link                4,600



          12775 Depot Maintenance                31,000



          12775 Object Oriented Simulations/Reengineering                2,500



          12800 Communications, Other Contracts                -2,000



          13100 Power Scene              4,000



          13100 SIMVAL                   1,261



          13350 Launch Facility Enhancements                10,000

   Budget Activity 2: Mobilization:                                        



          13850 Interim Contractor Support (C 17)                396,600



          13850 Airlift Operations (C 17 Sustainability)                2,900



          13975 Depot Maintenance                5,400

   Budget Activity 3: Training and Recruiting:                             



          14950 Recruiting and Advertising                9,300



          15150 Junior ROTC              15,000

   Budget Activity 4: Administration and Servicewide Activities:           



          15350 REMIS                    3,500



          15350 Joint Service Ammo Management Automated Info System (JAMSS)                1,935



          15650 Acquisition Travel and Contracts                -4,181



          15700 Servicewide Communications                -4,000



          15750 Personnel Programs                -11,400



          15950 DFAS Reduction           -9,400



          16050 Civil Air Patrol Corporation                7,500



          16100 William Lehman Aviation Center                500



          16250 Security Programs (DSS)                -7,300

   Undistributed:                                                          



          16410 Classified Undistributed                -800



          16480 Base Operations Support                109,300



          16670 Force Protection Infrastructure                5,000



          16680 Real Property Maintenance (Transfer from Quality of Life Enhancements)                400,826



          16700 Spares                   115,000



          16775 Base Operations Support (Real Property Support)                34,900



          16795 NBC High Leverage Programs                18,800



          16800 C 130J Logistics and Training                6,055



          16810 ICBM Prime Contract                16,300



          16825 AEF Joint Experimentation (JEFX)                35,600



          16835 Management Headquarters                -20,000



          16840 Reduction in JCS Exercises                -10,000



          16845 Contract and Advisory Services                -10,000



          16850 Depot Maintenance--Rivet Joint  #15 16/COBRA BALL 3                32,400



          16855 Air Force MTAP           4,000



          16865 Air Force ICS Transfer                106,100



          16870 Communications Reduction                -16,000


                        Interim Contractor Support                       

      As described elsewhere in this report, the Committee has transferred 
   a total of $502,700,000 from various Air Force procurement accounts to  
   Operation and Maintenance, Air Force. This includes $396,600,000        
   associated with the C 17, and $106,600,000 associated with various other
   weapons systems. In the Committee's view, this funding, since it covers 
   expenses such as sustainment spares and depot maintenance, should be    
   both budgeted for and appropriated under Operation and Maintenance, Air 
   Force, rather than in the procurement accounts.                         
            Manufacturing Technology Assistance Pilot Program            

      The Committee recommends an increase of $4,000,000 above the budget  
   request to continue and expand the Manufacturing Technology Assistance  
   Pilot Program (MTAPP). Of this amount, not less than $2,000,000 shall be
   available only to expand the MTAP program to Pennsylvania.              
                         McClellan Air Force Base                        

      The Committee notes that with the impending closure of McClellan Air 
   Force Base, unique research assets will become available to the local   
   community. Accordingly, the Committee supports the provision included in
   the House-passed National Defense Authorization bill for fiscal year    
   2000 which provides for the transfer of the McClellan Nuclear Radiation 
   Center.                                                                 
                      Enterprise Integration Program                     


      The Committee urges the Air Force and the Defense Logistics Agency to
   jointly consider the development and implementation of an Enterprise    
   Integration program to improve the quality and availability of          
   logistical data necessary to support the acquisition of spare and repair
   parts required to field Air Force weapons systems.                      
                                  REMIS                                  

      Information on this project can be found in the Information          
   Technology section of this report.                                      
                          OPERATION AND MAINTENANCE, DEFENSE-WIDE                 


                                                                               

                                                        

     Fiscal year 1999 appropriation         $10,914,076,000  
     Fiscal year 2000 budget request         11,419,233,000  
     Committee recommendation                11,401,733,000  
     Change from budget request                 -17,500,000  

      The Committee recommends an appropriation of $11,401,733,000 for     
   Operation and Maintenance, Defense-Wide. The recommendation is an       
   increase of $487,657,000 from the amount appropriated in fiscal year    
   1999.                                                                   
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folio 98 insert here                                             


      The adjustments to the budget activities for Operation and           
   Maintenance, Defense-Wide are shown below:                              

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          17050 JCS Exercises:           -35,000



          17100 SOCOM--ASDS Slip                -3,000



          17100 SOCOM--JTT/CIBS M                500

   Budget Activity 2: Mobilization:                                        



          17250 DLA--Warstopper                3,000

   Budget Activity 3: Training and Recruiting:                             



          17460 DAU--Organizational Composition Research                2,000

   Budget Activity 4: Administration and Servicewide Activities:           



          17775 Starbase                 300



          17775 Innovative Readiness Training                -15,000



          17800 Classified and Intelligence                11,600



          17900 DCAA--Low priority program growth                -5,000



          17900 DCAA--Performance Measures                -2,000



          18000 DHRA--DIMHRS             -41,200



          18000 DHRA--DEERS              8,000



          18000 DHRA--DCPDS (program slip)                -2,000



          18200 DLA--Automated Document Conversion                12,500



          18200 DLA--Security Locks                10,000



          18200 DLA--Performance Measures                -5,000



          18200 DLA--Improved Cargo Methods                4,000



          18310 DSCA--Performance Measures                -2,000



          18475 DTRA--Treaty Implementation                -4,500



          18475 DTRA--Performance Measures                -2,000



          18500 DoDEA--WIC Program Overseas                2,000



          18600 JCS--JMEANS              4,500



          18600 JCS--Management Support                -5,000



          18650 OEA--Pico Rivera                2,000



          18650 OEA--Completion of Fort Ord conversion support                5,000



          18650 OEA--Completion of San Diego Conversion Center                5,000



          18700 OSD--C4ISR               6,000



          18700 OSD--NGB Project Management System                5,000



          18700 OSD--NE/SA Center for Security Studies                1,500



          18700 OSD--Middle East Regional Security Issues                1,500



          18700 OSD--Energy Savings Performance Contracts                8,000



          18700 OSD--Job Placement Program                4,000



          18700 OSD--Youth Development and Leadership Program                300



          18700 OSD--Performance Measures                -10,000



          18700 OSD--Youth Development Initiative                2,500



          18700 OSD--Management and Contract Support                -15,000



          18700 OSD--(A&T) Travel and Contracts                -10,000



          18700 OSD--Commercial Technologies for Maintenance Activities                12,000



          18900 WHS--Low Priority Programs                -10,000



          18900 WHS--Defense Travel Service                -32,000



          18900 WHS--Emergency Notification                2,500



          19110 Impact Aid               35,000



          19250 JCS Mobility Enhancements                50,000



          19295 Human Resources Enterprise Strategy                7,500



          19305 Headquarters and Management                -40,000



          19335 Contract and Advisory Services                -10,000



          19341 United Service Organizations                25,000


                           Performance Measures                          

      The Committee is disappointed with the quality of the performance    
   measures included in the Department's Operation and Maintenance,        
   Defense-Wide budget justification books. On multiple occasions the      
   Congress has made clear its intentions to link an agency's budget to the
   quality of its performance measures and the progress it makes in        
   improving its performance. The Committee recommends reductions totaling 
   $21,000,000 against those defense agencies that presented weak or       
   non-existent performance goals.                                         

                             DLA--Warstoppers                            

      The Committee recommends $3,000,000 only for the warstopper program  
   to be used to maintain industrial readiness through microcircuit        
   solutions like the Department's Generalized Emulation of Microcircuits  
   program.                                                                
                      Defense Acquisition University                     

      The Committee recommends $2,000,000 for the Defense Systems          
   Management College, only for the Information Technology Organizational  
   Composition Research Project. The Committee also supports the Defense   
   Acquisition University's efforts to use state-of-the-art commercial     
   training technology that would train the acquisition workforce in a     
   simulated government procurement environment.                           
                          FAMILY THERAPY PROGRAM                         

      The Department's National Guard Youth Challenge program has developed
   a residential program for at-risk youths which focuses on providing     
   leadership, responsible citizenship, job skills, life coping skills, and
   educational and physical fitness programs. The Committee urges the      
   Department to consider adding to this curriculum an in-depth family     
   reintegration phase to the Challenge Youth program, which addresses the 
   problems of family disintegration and juvenile violence.                
                  Defense Finance and Accounting Service                 

      The Committee understands that due to unusual circumstances the      
   Department had to budget for $400,000 in security costs in the Operation
   and Maintenance, Defense-Wide account, but that starting in fiscal year 
   2001, these expenses will be properly realigned to the Defense Working  
   Capital Fund.                                                           
                     Information Technology Programs                     

      Information on Defense Human Resources Agency (DEERS), Defense Human 
   Resources Agency (DIMHRS), Military Personnel Information Systems, and  
   Automated Document Conversion programs can be found in the Information  
   Technology section of this report.                                      
                           DLA--Security Locks                           

      Federal Specification FF L 2740A was established by the Inter-Agency 
   Committee on Security Equipment as the standard for providing secure    
   protection to our nation's most sensitive classified material. In the   
   past, the Committee has supported Department of Defense efforts to      
   retrofit existing containers with security locks that conform to this   
   specification.                                                          
      The Committee is concerned, however, that sensitive classified       
   materials in the possession of defense contractors are not subject to   
   the same protection under Federal Specification FF L 2740A, as mandated 
   by Executive Order 12829. While new containers purchased by defense     
   contractors must have locks which meet or exceed this specification,    
   there remain a great deal of classified materials stored by defense     
   contractors in containers which fall well below the prescribed standard.
      The Committee therefore directs the Department to retrofit all       
   security containers under the control of, or accessed by defense        
   contractors with locks meeting the federal specification FF L 2740A. The
   Committee has provided $10,000,000 for this purpose, and expects full   
   utilization of these funds in the current fiscal year.                  
                       DLA--Improved Cargo Methods                       

      The Committee recommends $4,000,000 only to test, develop and        
   implement cost saving opportunities identified in ongoing studies of    
   private sector logistics technology, practices and procedures to move   
   military cargo more cheaply, with greater speed, and with greater       
   reliability.                                                            
                       DTRA--Treaty Implementation                       

      The Committee recommends a reduction of $4,500,000 due to delays in  
   treaty implementation and changes in requirements. If additional funds  
   prove necessary to meet emergent requirements stemming from valid treaty
   obligations, the Committee expects the Department to submit a           
   reprogramming request subject to normal, prior approval reprogramming   
   procedures.                                                             
             Joint Chiefs of Staff (JCS)--Management Support             

      The Committee recommends a reduction of $5,000,000 from JCS          
   Management Support. None of this, or any other reduction, is to be taken
   against the Joint Staff's efforts in Operation and Maintenance,         
   Defense-Wide to support Joint Vision 2010.                              
                               JCS--J MEANS                              

      The Committee recommends $4,500,000 only for the Joint               
   Multi-Dimensional Education and Analysis System (J MEANS). This program 
   will incorporate the National Defense University's wargaming modules and
   allow students to fully assess the effect of alternate strategies and   
   technologies in an information age battlefield.                         
                                OSD--C4ISR                               

      The Committee recommends $6,000,000 only to sustain the enhanced     
   Command, Control, Communications, Computer, Intelligence, Surveillance  
   and Reconnaissance (C4ISR) Integrated Architecture Program and to extend
   the development across all the unified commands.                        
          OSD--Near East/South Asia Center for Security Studies          

      The Committee supports the Department's plans to examine establishing
   a Near East/South Asia Center for Security Studies to promote a stable  
   regional security environment, enhance military-to-military exchanges   
   and to promote regional security cooperation. The Committee recommends  
   $1,500,000 for the Office of the Secretary of Defense, International    
   Security Affairs, to facilitate planning for the Center.                
                OSD--Middle East Regional Security Issues                

      The Committee recommends providing $1,500,000 for the Office of the  
   Secretary of Defense, International Security Affairs only to support    
   current and established programs, conducted since 1993, to promote      
   informal region-wide dialogues on Arms Control and regional security    
   issues for Arab and Israeli officials and experts.                      
                 OSD ENERGY SAVINGS PERFORMANCE CONTRACTS                

      The Committee recommends $8,000,000 only to assist in training,      
   providing technical expertise, performing energy audits, and otherwise  
   assisting in the ESPC process.                                          
                        OSD--Job Placement Program                       

      The Committee understands that the Department has been fully briefed 
   on an innovative job placement and community outreach services program, 
   FirstDay of the Future. With the imminent closure of Kelly and McClellan
   Air Force Bases, the Committee continues to believe that this innovated 
   program will be beneficial to the effected military and civilian        
   personnel and their families. Therefore, the Committee recommends       
   $4,000,000 only to expeditiously implement this program.                
              OSD--Youth Development and Leadership Program              

      The Committee recommends an increase of $300,000 over the budget     
   request for the Youth Development and Leadership program, only to       
   develop a safety net program to serve as the follow-up activity for the 
   program initiated under Public Law 105 174.                             
                    osd--youth development initiative                    

      The Committee recommends $2,500,000, consistent with Section 8107,   
   only for a grant to a widely respected non-profit organization to       
   finance on a dollar-for-dollar matching basis efforts to mobilize       
   individuals, groups, and organizations to build and strengthen the      
   character and competence of America's youth.                            
                   osd--management and contract support                  

      The Committee is concerned about the continued growth in contractor  
   support to the Office of the Secretary of Defense (OSD), that more than 
   offsets the reductions made in OSD personnel. The Committee therefore   
   recommends a reduction of $15,000,000 and directs that none of this, or 
   any other reduction, be taken against the studies funded through the    
   Office of Net Assessment.                                               
                       whs--emergency notification                       

      The Committee notes the success the Pentagon's Army Operation Center 
   has had with its automated emergency notification system and recommends 
   $2,500,000 only to field the system to other organizations in the       
   Department with similar notification requirements.                      
                        JCS MOBILITY ENHANCEMENTS                        

      The Committee recommends $50,000,000 to support Transportation       
   Command's mobility enhancements efforts. The Committee believes that the
   Center for Commercial Deployment of Transportation Technologies should  
   be considered for up to $15,000,000 of this amount.                     
                     NATIONAL CURATION PILOT PROJECT                     

      The Committee understands that the Department has a requirement to   
   safely store over 41,000 cubic feet of cultural and historical artifacts
   collected from public lands and to make these collections available to  
   the public. In response to this, the Defense Legacy Resources Management
   Program awarded a grant to the Corps of Engineers, in cooperation with  
   the State of Montana, to study and develop a design for a curatorial    
   collections and processing building. The curation pilot project is      
   designed to lead to the construction of new facilities in cooperation   
   with the pilot institutions who will rehabilitate federally-associated  
   collections for the Department. The Committee understands that the study
   is complete. The Committee therefore directs the Department to provide  
   this report to the Committee by September 30, 1999, and the Department  
   is encouraged to move forward with this important effort.               
                  INFORMATION SYSTEMS SECURITY EDUCATION                 

      The increasing dependence by the Department of Defense on computers  
   and computer communications has also increased its vulnerability to     
   attacks on these information systems. This threat to a national critical
   infrastructure mandates the fostering and ongoing support of            
   well-educated professionals that are able to protect our critical       
   information system. The President's Commission on Critical              
   Infrastructure Protection completed a two-year study that concluded, in 
   part, that a significant portion of the nation's infrastructure         
   protection is tied to the development of information security           
   professionals.                                                          
      The Committee is aware that, although there are several post-graduate
   level educational programs currently available for advanced training in 
   this area, there are no doctorate level programs currently available.   
   The Committee believes that the development of a doctoral program in    
   information security is required to provide a flow of individuals with  
   the knowledge and credentials to support the expanding needs of the     
   Department. The Committee urges the Secretary of Defense to review      
   requirements for doctorate-level information systems security           
   professionals within the Department and, if appropriate, consider       
   sponsoring the establishment of doctorate level education programs in   
   educational institutions capable of providing this level of training.   

                      IMPROVED GENERAL PURPOSE TENTS                     

      The Committee is pleased with the Army's successful development of a 
   modular general purpose tent system (M.G.P.T.S.) to replace the current 
   general purpose small, medium and large tents, which use 1940's design  
   and manufacturing techniques. The M.G.P.T.S. has been designed to serve 
   as a new generation of tents, providing greater durability and improved 
   performance when exposed to severe weather. The Committee believes the  
   new system may better support Marine and Air Force field operations and 
   encourages utilization of the improved system by these forces.          
                 DEPARTMENT OF DEFENSE EDUCATION ACTIVITY                

      The Committee understands that before and after school programs are a
   strong support system to families living on military bases. The         
   Committee believes that consideration should be given to enhancing      
   services including tutorial and learning enrichment programs.           
 PINE BLUFF ARSENAL SUSTAINMENT TRAINING AND TECHNICAL ASSISTANCE PROGRAM

      The Committee directs the Department of Defense to establish a       
   Sustainment Training and Technical Assistance Program at Pine Bluff     
   Arsenal, AR, for chemical and biological defense equipment in support of
   the Department of Justice equipment grant program.                      
                                  LEGACY                                 

      The Committee encourages the Department to consider the U.S.S.       
   Constitution museum for funding in its legacy program.                  
                           CLASSIFIED PROGRAMS                           

      Additional recommendations by the Committee are described in the     
   classified annex accompanying this report.                              

   Offset Folios 105 Insert here                                           


                          OPERATION AND MAINTENANCE, ARMY RESERVE                 


                                                                               

                                                       

     Fiscal year 1999 appropriation         $1,202,622,000  
     Fiscal year 2000 budget request         1,369,213,000  
     Committee recommendation                1,513,076,000  
     Change from budget request               +143,863,000  

      The Committee recommends an appropriation of $1,513,076,000 for      
   Operation and Maintenance, Army Reserve. The recommendation is an       
   increase of $310,454,000 above the $1,202,622,000 appropriated for      
   fiscal year 1999.                                                       
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            
      The adjustments to the budget activities for Operation and           
   Maintenance, Army Reserve are shown below:                              

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          19620 Mission Operations/Increased Optempo                20,000



          19640 Forces Readiness Operations Support/Training Area Environmental          Management                1,000



          19660 Depot Maintenance                3,400



          19680 Base Support             10,000

   Budget Activity 4: Administration and Servicewide Activities:           



          20070 Recruiting and Advertising                25,000

   Other Adjustments:                                                      



          20090 Real Property Maintenance                10,000



          20120 Recruiting Support                3,500



          20360 Real Property Maintenance (Transfer from Quality of Life Enhancements)                39,563



          20365 Information Management                27,000



          20365 Information Operations                4,400


                          OPERATION AND MAINTENANCE, NAVY RESERVE                 


                                                                               

                                                     

     Fiscal year 1999 appropriation         $957,239,000  
     Fiscal year 2000 budget request         917,647,000  
     Committee recommendation                969,478,000  
     Change from budget request              +51,831,000  

      The Committee recommends an appropriation of $969,478,000 for        
   Operation and maintenance, Navy Reserve. The recommendation is an       
   increase of $12,239,000 above the $957,239,000 appropriated for fiscal  
   year 1999.                                                              
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folio 107 Insert here                                            



      The adjustments to the budget activities for Operation and           
   Maintenance, Navy Reserve are shown below:                              

                                                                               
                            [In thousands of dollars]                          

                                                                         

     xlBudget Activity 1: Operating Forces:                                   
       22055 Recruiting and Advertising                                3,000  
       22060 Recruiting Support                                        5,000  
     xlOther Adjustments:                                                     
     xl  22794 Real Property Maintenance (Transfer from Quality               
        of Life Enhancements)                                         13,831  
       22796 Base Operations                                          10,000  
       22810 Real Property Maintenance                                10,000  
       22815 Contributory Support to CINCs                            10,000  

                      OPERATION AND MAINTENANCE, MARINE CORPS RESERVE             


                                                                               

                                                     

     Fiscal year 1999 appropriation         $117,893,000  
     Fiscal year 2000 budget request         123,266,000  
     Committee recommendation                143,911,000  
     Change from budget request              +20,645,000  

      The Committee recommends an appropriation of $143,911,000 for        
   Operation and maintenance, Marine Corps Reserve. The recommendation is  
   an increase of $26,018,000 above the $117,893,000 appropriated for      
   fiscal year 1999.                                                       
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folio 109 insert here                                            


      The adjustments to the budget activities for Operation and           
   Maintenance, Marine Corps Reserve are shown below:                      

                                                                               
                            [In thousands of dollars]                          

                                                                         

     xlBudget Activity 1: Operating Forces:                                   
       23600 Maintenance of Real Property                              4,000  
     xlOther Adjustments:                                                     
       24110 Increased Use of Guard and Reserves                       1,200  
     xl  24220 Real Property Maintenance (Transfer from Quality               
        of Life Enhancements)                                            945  
       24250 Initial Issue                                            10,000  
       24260 782 Career Gear Issue                                     3,000  
       24270 Spares                                                    1,500  

                        OPERATION AND MAINTENANCE, AIR FORCE RESERVE              


                                                                               

                                                       

     Fiscal year 1999 appropriation         $1,747,696,000  
     Fiscal year 2000 budget request         1,728,437,000  
     Committee recommendation                1,788,091,000  
     Change from budget request                +59,654,000  

      The Committee recommends an appropriation of $1,788,091,000 for      
   Operation and maintenance, Air Force Reserve. The recommendation is an  
   increase of $40,395,000 above the $1,747,696,000 appropriated for fiscal
   year 1999.                                                              
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folio 111 Insert here                                            


      The adjustments to the budget activities for Operation and           
   Maintenance, Air Force Reserve are shown below:                         

          [In thousands of dollars]                                               

   Budget Activity 1: Operating Forces:                                    



          24970 Depot Maintenance                15,000

   Budget Activity 4: Administration and Servicewide Activities:           



          25400 Recruiting and Advertising                1,500



                                         1,000

   Other Adjustments:                                                      



          25510 Real Property Maintenance                10,000



          25520 Base Operations                10,000



          25558 Real Property Maintenance (Transfer from Quality of Life Enhancements)                12,154



          25570 C 130 Operations                10,000


                       OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD             


                                                                               

                                                       

     Fiscal year 1999 appropriation         $2,678,015,000  
     Fiscal year 2000 budget request         2,903,549,000  
     Committee recommendation                3,103,642,000  
     Change from budget request               +200,093,000  

      The Committee recommends an appropriation of $3,103,642,000 for      
   Operation and maintenance, Army National Guard. The recommendation is an
   increase of $425,627,000 above the $2,678,015,000 appropriated for      
   fiscal year 1999.                                                       
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folio 113 Insert here                                            



      The adjustments to the budget activities for Operation and           
   Maintenance, Army National Guard are shown below:                       

          [In thousands of dollars]                                               

    Budget Activity 1: Operating Forces:                                    



                                         10,000



                                         6,264

    Budget Activity 4: Administration and Servicewide Activities:           



                                         17,500



                                         6,500

    Other Adjustments:                                                      



                                         48,000



                                         10,000



                                         10,000



                                         60,629



                                         10,000



                                         14,000



                                         4,200



                                         3,000


                        Army National Guard Center                       

      The Committee understands that the Headquarters, 53rd Support        
   Battalion, Army National Guard is in extensive need of repair and       
   renovation. The Committee has provided additional funds for Real        
   Property Maintenance for the Army National Guard's backlog of repair and
   maintenance projects, and directs that $1,000,000 be designated for     
   repair of the armory in Florida.                                        
                       ARMED FORCES RESERVE CENTER                       

      The Committee has provided additional funds for Real Property        
   Maintenance for the Army National Guard and directs that $3,000,000 be  
   provided for remedial site preparation for the Eugene Armed Forces      
   Reserve Center and Organizational Maintenance Shop.                     
          National Guard Bureau Nationwide Fiber Optics Network          

      Information on this project can be found in the Information          
   Technology section of this report.                                      
                     National Guard Distance Learning                    

      Information on this project can be found in the Information          
   Technology section of this report.                                      
                      NGB Project Management System                      

      The Committee recommends a total increase of $8,000,000 for the      
   National Guard's Project Management System. The Committee understands   
   that the National Guard Bureau has taken the lead within the Department 
   to implement a project management system using the latest commercially  
   developed off-the-shelf technology, which will enable program managers  
   to better manage programs in a timely manner and stay within budget and 
   cost limits. The Committee believes that the National Guard Bureau      
   Project Management System Pilot Project has tremendous applicability    
   throughout all services and urges the Secretary of Defense to implement 
   this program throughout the Department. The Committee has included      
   $3,000,000 in Operation and Maintenance, Army National Guard for the    
   continuation of the Project Management System Pilot Project, and        
   $5,000,000 in Operation and Maintenance, Defense-Wide to implement this 
   project management system throughout the Department.                    
                          REPAIR OF UH 1 ENGINES                         

      The Committee understands that the Army National Guard's UH 1        
   Iroquois helicopter fleet has been restricted in the types of missions  
   flown because of the unreliability of the T 53 engines, many of which   
   require major repairs or overhaul for deficiencies. The Committee urges 
   the Secretary of the Army to consider the use of commercial practices   
   regarding the repair and overhaul of these helicopter engines.          
                 MOFFETT FIELD AND MARCH AIR RESERVE BASE                

      The Committee recognizes the many advantages of the Moffett Airfield 
   complex and the March Air Reserve Base for providing needed facilities  
   in supporting the ongoing effort to upgrade domestic preparedness       
   against weapons of mass destruction. Moffett's infrastructure and       
   command and control capabilities include not only the airfield, but     
   critical Federal, civil and housing assets, including NASA/Ames, Onizuka
   Air Station, DoD and DoT activities, together with the unique emergency 
   support capabilities of the California Air National Guard 129th Rescue  
   Wing, FEMA and the Red Cross.                                           
      March Air Reserve Base hosts various military and civilian activities
   including Air Mobility, National Guard Refueling, and a Fighter Wing    
   serving the U.S. Customs Service Domestic Air Interdiction. March is a  
   fully operational public safety training complex which combines law     
   enforcement, fire and rescue, emergency management, response and medical
   training for first responders or biological and chemical terrorism, SWAT
   training, domestic terrorism and fire technology for hazardous          
   materials.                                                              
      The Committee urges the Department and cognizant state and local     
   officials to fully consider Moffett's and March's operational and       
   support capabilities when selecting new locations for expanding the     
   capability of weapons of mass destruction first responders to train,    
   equip and support local authorities in California. The Committee        
   requests a report from DoD/National Guard and Reserves by December 31,  
   1999 on use of these key Federal facilities.                            
                       OPERATION AND MAINTENANCE, AIR NATIONAL GUARD              


                                                                               

                                                       

     Fiscal year 1999 appropriation         $3,106,933,000  
     Fiscal year 2000 budget request         3,099,618,000  
     Committee recommendation                3,239,438,000  
     Change from budget request               +139,820,000  

      The Committee recommends an appropriation of $3,239,438,000 for      
   Operation and maintenance, Air National Guard. The recommendation is an 
   increase of $132,505,000 above the $3,106,933,000 appropriated for      
   fiscal year 1999.                                                       
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   program in fiscal year 2000:                                            

   Offset Folio 117 Insert Here                                            


      The adjustments to the budget activities for Operation and           
   Maintenance, Air National Guard are shown below:                        

          [In thousands of dollars]                                               

    Budget Activity 1: Operating Forces:                                    



                                         10,000



                                         5,000



                                         4,800



                                         10,000



                                         20,000



                                         15,000

    Budget Activity 4: Administration and Servicewide Activities:           



                                         4,000

    Other Adjustments:                                                      



                                         63,020



                                         5,000



                                         2,000



                                         1,000


                 National Guard State Partnership Program                

      The Committee recommends $1,000,000 only for the National Guard's    
   State Partnership Program. The Committee directs that these funds be    
   used to support theater engagement opportunities for National Guard     
   soldiers and state civilian personnel who directly support the State    
   Partnership Program and civil-military engagement goals and for the     
   National Guard Minuteman Fellows Program which the Committee has        
   supported in the past.                                                  
                             C 130 Operations                            

      The Committee recommends a total of $1,500,000 over the budget       
   request for personnel and operation and maintenance costs to support the
   restoration of C 130 operational capabilities for the Florida Air       
   National Guard.                                                         

                  159th Air National Guard Fighter Group                 

      The Committee recommends an increase of $1,500,000 over the budget   
   request in Operation and Maintenance, Air National Guard and directs    
   that these funds be used for the operation of C 130H operational support
   aircraft of the 159th ANG Fighter Group.                                
                       OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND              


                                                                               

                                                      

     Fiscal year 1999 appropriation          $439,400,000  
     Fiscal year 2000 budget request        2,387,600,000  
     Committee recommendation               1,812,600,000  
     Change from budget request              -575,000,000  

      The Committee recommends an appropriation of $1,812,600,000 for the  
   Overseas Contingency Operations Transfer Fund. The funding in this      
   paragraph provides for ongoing DoD operations in Southwest Asia and     
   Bosnia. Due to the termination of air operations over Kosovo and reduced
   air operations tempo over Southwest Asia, the Committee recommends a    
   reduction of $575,000,000 from the budget request.                      
           Budget Justification and Budget Execution Materials           

      The Committee notes that the budget request includes a relative lack 
   of justification data concerning U.S. participation in contingency      
   operations in both the Military Personnel accounts, the Procurement     
   accounts and the Overseas Contingency Operations Transfer Fund.         
   Accordingly, the Committee includes a new general provision, Section    
   8111, which requires the Department of Defense to include the same type 
   of budget justification materials as are provided for other Department  
   of Defense activities. In addition, the Committee directs the Secretary 
   of Defense to provide a report to the congressional defense committees  
   at the end of each quarter of the fiscal year, with the first such      
   report due on December 31, 1999, detailing both the financial           
   transactions associated with the Overseas Contingency Operations        
   Transfer Fund as well as all other appropriation accounts from which    
   contingency operations expenses are paid, and programmatic data for each
   contingency operation. This budget execution data shall include the     
   amounts paid from each appropriation account to include funds           
   distributed from the Overseas Contingency Operations Transfer Fund to   
   each appropriation account, for each contingency operation; a comparison
   of actual troop strength for active duty and Guard and Reserve          
   components for each contingency operation compared to the amounts       
   anticipated in the budget request; and, a comparison of major weapons   
   systems, including but not limited to all types of aircraft, naval      
   vessels and major ground equipment items for each active duty and Guard 
   and Reserve component for each contingency operation compared to the    
   level assumed in the budget request.                                    
                      Kosovo Base Camp Construction                      

      The Committee is aware of ongoing efforts to construct two base camps
   that will house U.S. troops deployed in support of the NATO peacekeeping
   force in Kosovo. While the Committee acknowledges that such efforts are 
   essential to support the quality of life for deployed troops, the       
   Committee agrees with the language included in the report accompanying  
   the House version of the fiscal year 2000 Military Construction         
   Appropriations bill. Accordingly, the Committee reminds the Department  
   of Defense that Section 110 of Public Law 105 237 prohibits construction
   of new bases overseas without prior notification to the Committee on    
   Appropriations.                                                         
                    UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES           


                                                                               

                                                     

     Fiscal year 1999 appropriation           $7,324,000  
     Fiscal year 2000 budget request           7,621,000  
     Committee recommendation                  7,621,000  
     Change from budget request                           

      The Committee recommends an appropriation of $7,621,000 for the      
   United States Court of Appeals for the Armed Forces. The recommendation 
   is an increase of $297,000 from the amount appropriated in fiscal year  
   1999.                                                                   
                              ENVIRONMENTAL RESTORATION, ARMY                     


                                                                               

                                                      

     Fiscal year 1999 appropriation          $370,640,000  
     Fiscal year 2000 budget request          378,170,000  
     Committee recommendation                 378,170,000  
     Change from budget request                            


      The Committee recommends an appropriation of $378,170,000 for        
   Environmental Restoration, Army. The recommendation is an increase of   
   $7,530,000 from the amount appropriated in fiscal year 1999.            
                          Rocky Mountain Arsenal                         

      The Committee is encouraged by the Department's progress in          
   remediating the environmental contamination at the Rocky Mountain       
   Arsenal site near Denver, Colorado, and in facilitating the successful  
   conversion and reuse of the property. The Committee encourages the      
   Defense Department to continue to fully support the cleanup and         
   conversion projects at this site.                                       
                   Environmental Remediation Contracts                   

      The Committee is concerned about the Department's limited use of     
   indefinite delivery/indefinite quantity (IDIQ) contracts for            
   environmental remediation. The Committee directs the Department to      
   report to the congressional defense committees on how this contract     
   vehicle compares with other contract options in cost, involvement of    
   small businesses and inclusion of local companies.                      
                              ENVIRONMENTAL RESTORATION, NAVY                     


                                                                               

                                                      

     Fiscal year 1999 appropriation          $274,600,000  
     Fiscal year 2000 budget request          284,000,000  
     Committee recommendation                 284,000,000  
     Change from budget request                            

      The Committee recommends an appropriation of $284,000,000 for        
   Environmental Restoration, Navy. The recommendation is an increase of   
   $9,400,000 from the amount appropriated in fiscal year 1999.            
                            ENVIRONMENTAL RESTORATION, AIR FORCE                  


                                                                               

                                                      

     Fiscal year 1999 appropriation          $372,100,000  
     Fiscal year 2000 budget request          376,800,000  
     Committee recommendation                 376,800,000  
     Change from budget request                            

      The Committee recommends an appropriation of $376,800,000 for        
   Environmental Restoration, Air Force. The recommendation is an increase 
   of $4,700,000 from the amount appropriated in fiscal year 1999.         
                          ENVIRONMENTAL RESTORATION, DEFENSE-WIDE                 


                                                                               

                                                       

     Fiscal year 1999 appropriation            $26,091,000  
     Fiscal year 2000 budget request            25,370,000  
     Committee recommendation                   25,370,000  
     Change from budget request                             

      The Committee recommends an appropriation of $25,370,000 for         
   Environmental Restoration, Defense-Wide. The recommendation is a        
   decrease of $721,000 from the amount appropriated in fiscal year 1999.  
                   ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES         


                                                                               

                                                     

     Fiscal year 1999 appropriation         $225,000,000  
     Fiscal year 2000 budget request         199,214,000  
     Committee recommendation                209,214,000  
     Change from budget request              +10,000,000  

      The Committee recommends an appropriation of $209,214,000 for        
   Environmental Restoration, Formerly Used Defense Sites. The             
   recommendation is a decrease of $15,786,000 from the amount appropriated
   in fiscal year 1999.                                                    
                                Camp Croft                               


      The Committee is concerned about the unexploded ordnance at the      
   former Camp Croft and the danger this poses to the safety of the        
   citizens living on or near this former military base. The Committee     
   encourages the Department to address this problem as quickly and as     
   completely as possible.                                                 
                     LAKE CITY ARMY AMMUNITION PLANT                     

      The Committee is concerned about the soil and groundwater            
   contamination at the Lake City Army Ammunition Plant. The Committee     
   understands that the U.S. Army has signed an interagency agreement with 
   the Environmental Protection agency and the Missouri Department of      
   Natural Resources and urges the Department to allocate the funds        
   necessary to implement the projects required by this agreement.         
                                 NEWMARK                                 

      The Committee continues to have serious concern about the            
   Department's failure to respond at a senior level to groundwater        
   contamination at the Newmark and Muscoy Superfund sites in California.  
   The Committee understands that both the Environmental Protection Agency 
   (EPA) and the City of San Bernardino believe that the contamination is a
   direct result of industrial waste from Camp Ono, a World War II depot   
   and maintenance facility. The EPA has reported that there is ``no other 
   reasonable source for the contamination,'' than the former Army base,   
   and, more recently, that the Army is ``a likely source of the           
   contamination.''                                                        
      Report language in the conference reports accompanying the fiscal    
   year 1997 and 1998 Defense Appropriations Bills highlighted the urgency 
   of this problem and requested adequate funding and prompt action by the 
   Department to remediate this site. The Committee is disappointed with   
   the Department's response. The Department has, thus far, ignored a      
   September, 1998 court order to mediate the dispute. The Committee is    
   particularly concerned by the Department's lack of a response to the    
   Committee's November, 1998 request for senior-level mediation involving 
   the Department and the Environmental Protection Agency. As a result, the
   Committee strongly believes that the Department should, within 60 days  
   of enactment of this Act, initiate mediation in this matter with the EPA
   and report to the congressional defense committees fully explaining the 
   Department's plan to reach a timely resolution to this matter.          
                       OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID             


                                                                               

                                                   

     Fiscal year 1999 appropriation        $50,000,000  
     Fiscal year 2000 budget request        55,800,000  
     Committee recommendation               55,800,000  
     Change from budget request                         

      The Committee recommends an appropriation of $55,800,000 for Overseas
   Humanitarian, Disaster, and Civic Aid. The recommendation is an increase
   of $5,800,000 from the amount appropriated in fiscal year 1999.         
                            FORMER SOVIET UNION THREAT REDUCTION                  


                                                                               

                                                    

     Fiscal year 1999 appropriation        $440,400,000  
     Fiscal year 2000 budget request        475,500,000  
     Committee recommendation               456,100,000  
     Change from budget request             -19,400,000  

      This appropriation funds the Former Soviet Union Threat Reduction    
   activities of the Department of Defense.                                
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes to the budget request 
   in accordance with House authorization action.                          

                                                                                                                
                                            [In thousands of dollars]                                           

Item                                               Budget request     Committee recommendation    Change from request  

Former Soviet Union Threat Reduction                      475,500                      456,100                -19,400  
Strategic Nuclear Arms Elimination Ukraine                 33,000                       43,000                +10,000  
Strategic Offensive Arms Elimination Russia               157,300                      177,300                +20,000  
Weapons Transportation Russia                              15,200                       15,200                      0  
Weapons Storage Security Russia                            40,000                       90,000                +50,000  
Warhead Dismantlement Processing Russia                     9,300                        9,300                      0  
Reactor Core Conversion                                    20,000                       20,000                      0  
Fissile Material Storage Russia                            64,500                       60,900                 -3,600  
Chemical Weapons Destruction Russia                       130,400                       24,600               -105,800  
Defense and Military Contacts                               2,000                            0                 -2,000  
Other Assessments                                           1,800                        1,800                      0  



                                           PROJECT LEVEL TABLE                                          
                                        [In thousands of dollars]                                       

                                                         Budget request    Recommended    Change from request  

Biological Weapons Proliferation Prevention Russia                2,000         14,000                +12,000  

                   FORMER SOVIET UNION THREAT REDUCTION                  

      The Department recommended $475,500,000 for the Former Soviet Union  
   Threat Reduction programs. The Committee recommends $456,100,000, a net 
   decrease of $19,400,000. The Committee has recommended changes to each  
   program in accordance with the House-passed Defense Authorization bill. 
   However, the Committee is also recommending an increase of $12,000,000  
   for the biological weapons proliferation prevention program for         
   additional security enhancements.                                       
                           QUALITY OF LIFE ENHANCEMENTS, DEFENSE                  


                                                                               

                                                     

     Fiscal year 1999 appropriation         $455,000,000  
     Fiscal year 2000 budget request       1,845,370,000  
     Committee recommendation                800,000,000  
     Change from budget request           -1,045,370,000  

      The Committee recommends an appropriation of $800,000,000 for Quality
   of Life Enhancements, Defense. The recommendation is an increase of     
   $345,000,000 above the amount appropriated for fiscal year 1999.        
      The President's budget proposed providing $1,845,370,000 for this    
   account. However, upon examination the Committee has determined these   
   funds are intended to be used for general real property maintenance     
   projects, and not solely quality of life-related efforts, which was the 
   basis for the Committee's having created this account several years ago.
   Accordingly, the Committee recommends providing the $1,845,370,000,     
   requested by the administration in this account directly to the Services
   in their respective Operation and Maintenance accounts.                 
      For this account, the Committee provides an increase of $800,000,000 
   for active component real property maintenance which is reserved only   
   for quality of life related projects. The Committee designates the      
   increased funding provided in this account as a special interest item,  
   subject to normal prior approval reprogramming procedures.              
      The adjustments to the budget request for Quality of Life            
   Enhancements, Defense are shown in the table below:                     

          [In thousands of dollars]                                               

   Quality of Life Enhancements, Defense: Program Increases:               



          Army                           $182,600



          Navy                           285,200



          Marine Corps                   62,100



          Air Force                      259,600



                                         10,500



          NTC LEA                        (1,200)

   Quality of Life Enhancements, Defense: Transfers Out:                   



          Army                           625,808



          Navy                           508,369



          Marine Corps                   120,225



          Air Force                      400,826



          Army Reserve                   39,563



          Navy Reserve                   13,831



          Marine Corps Reserve           945



          Air Force Reserve              12,154



          Army National Guard            60,629



          Air National Guard             63,020


                                          TITLE III                               

                                         PROCUREMENT                              

                            ESTIMATES AND APPROPRIATIONS SUMMARY                  

      The fiscal year 2000 Department of Defense procurement budget request
   totals $51,851,538,000. The accompanying bill recommends                
   $53,031,397,000. The total amount recommended is an increase of         
   $1,179,859,000 above the fiscal year 2000 budget estimate and is        
   $4,440,977,000 above the total provided in fiscal year 1999. The table  
   below summarizes the budget estimates and the Committee's               
   recommendations.                                                        

   Offset folio 125 insert here                                            



                          SPECIAL INTEREST ITEMS                         

      Items for which additional funds have been provided as shown in the  
   project level tables or in paragraphs using the phrases ``only for'' or 
   ``only to'' in this report are Congressional interest items for the     
   purpose of the Base for Reprogramming (DD Form 1414). Each of these     
   items must be carried on the DD Form 1414 at the stated amount, or a    
   revised amount if changed during conference or if otherwise specifically
   addressed in the conference report. These items remain special interest 
   whether or not they are repeated in a subsequent conference report.     
                           CLASSIFIED PROGRAMS                           

      Adjustments to classified programs are addressed in a classified     
   annex accompanying this report.                                         
                                     RANGELESS TRAINING                           

      Last year, the Congress directed the Defense Department to conduct a 
   technical evaluation between the Joint Tactical Combat Training System  
   and other alternatives to ensure that the best and most affordable      
   system is chosen to accomplish the rangeless training mission for the   
   Navy and the Air Force. The Department did an outstanding job of        
   initiating the evaluation on a timely basis. In particular, the         
   Committee commends the Principal Deputy Under Secretary of Defense for  
   Acquisition and Technology; the Director of Test, Systems Engineering   
   and Evaluation, Ranges and Resources; the Deputy Under Secretary of     
   Defense for Readiness, Readiness and Training; the Director, Operational
   Test and Evaluation, Conventional Systems; and the Joint Tactical       
   Training System project office. The Committee recognizes that           
   implementing the initiative took a great deal of time and commitment    
   from these organizations. The result of these efforts will allow the    
   Department to field a much-needed rangeless training system in the most 
   efficient and cost-effective manner.                                    
      The Navy and the Air Force requested a total of $42,300,000 to       
   continue the Joint Tactical Training System in fiscal year 2000 which   
   the Committee recommends. The procurement funds are designated to be of 
   special interest, and may only be obligated to procure equipment for the
   system which DoD selects as the result of the congressionally-directed  
   technical evaluation.                                                   

                   FOREIGN COMPARATIVE TEST NEW STARTS                   

      The Committee directs the Secretary of Defense to ensure that all DoD
   components follow new start notification procedures prior to award of   
   production contracts resulting from successful foreign comparative      
   tests. The Committee notes that DoD notification of the desire to test a
   foreign system does not constitute notification of procurement of that  
   system.                                                                 
                   AIR FORCE INTERIM CONTRACTOR SUPPORT                  

      Interim Contractor Support is the maintenance and support of a new   
   weapon system provided by a commercial vendor pending transition to     
   organic support. Current DoD policy allows procurement appropriations to
   fund Interim Contractor Support (ICS) whereas organic support is funded 
   in the operation and maintenance (O&M) appropriations. DoD policy calls 
   for all acquisition programs to minimize the scope and duration of ICS. 
   However, the Committee has recently learned of a growing trend in the   
   Air Force to abuse the ICS concept by maximizing its scope and duration,
   effectively shifting the O&M burden of certain programs to the          
   procurement accounts. For example, the C 17 program now plans to use    
   approximately $400 million a year of procurement funding to finance     
   flying hour spares and depot aircraft maintenance for the life of the C 
   17 production program.                                                  
      The Committee believes that using ICS in this manner blurs the       
   distinction between O&M and procurement appropriations and therefore    
   seriously compromises oversight in Congress and OSD. ICS represents     
   large pools of funding that a program manager could divert, without the 
   prior knowledge of Congress, for additional procurement end-items or    
   acquisition cost overruns while ``shorting'' operational forces. The    
   Committee also notes that in the last several years, DoD witnesses have 
   highlighted efforts to increase modernization funding to meet the Joint 
   Staff goal of $60 billion per year. Funding high levels of O&M effort in
   the procurement accounts gives Congress a false picture of how well DoD 
   is meeting these higher modernization funding goals.                    
      Given these concerns, the Committee recommendation includes a        
   transfer of $502.7 million from Air Force procurement to O&M            
   appropriations. The Committee directs the Air Force to fund all ICS in  
   the O&M accounts in future budget submissions.                          
                         REPROGRAMMING PROCEDURES                        

      The Committee understands that DoD policy prevents defense components
   from acting on notification reprogrammings until written approval has   
   been provided by the Senate defense committees. The Committee further   
   understands that DoD policy does not extend this courtesy to House      
   defense committees. The Committee believes that each of the             
   congressional defense committees should be accorded the same opportunity
   to review and approve all reprogrammings submitted for Congressional    
   consideration, including notification reprogrammings. Accordingly, the  
   Committee directs the Secretary of Defense to ensure the reprogramming  
   policy is updated to reflect the requirement to receive written approval
   from all congressional defense committees prior to implementing         
   reprogrammings, including notification reprogrammings. This direction   
   applies to all defense appropriations.                                  
                                  ARMY PROCUREMENT ISSUES                         

                        UNFUNDED REQUIREMENTS LIST                       

      This year, as in the past, the Committee requested that the Service  
   Chiefs provide ``unfunded requirements lists''. Usually the lists       
   include critical activities or items that the Services believe are not  
   adequately funded in the budget request, for example, base operations.  
   It has also been the Committee's understanding that the Secretary of    
   Defense only allows the Services to include those items that are        
   included in the current budget request and the outyears. However, the   
   Committee notes that several items on the Army's shortfall list are not 
   funded in the Future Years' Defense Plan and have such large outyear    
   funding requirements that the Committee does not believe they can be    
   accommodated in future budget submissions, such as the Huey, Blackhawk, 
   and the Bradley Service Life Extension Programs (SLEP). While programs  
   such as the Blackhawk SLEP have merit, the Committee is reluctant to add
   a ``down payment'' of $31 million in fiscal year 2000 if the Army will  
   not budget the half billion dollars required in the outyears. Although  
   the Committee appreciates the Army Chief of Staff's candor when         
   submitting the Army's unfunded requirements list, the Committee         
   encourages him to include only items which are included in the budget   
   request and can be supported in future budget submissions.              

                                 AIRCRAFT PROCUREMENT, ARMY                       


                                                                               

                                                       

     Fiscal year 1999 appropriation         $1,388,268,000  
     Fiscal year 2000 budget request         1,229,888,000  
     Committee recommendation                1,590,488,000  
     Change from budget request               +360,600,000  

      This appropriation finances the acquisition of tactical and utility  
   airplanes and helicopters, including associated electronics, electronic 
   warfare, and communications equipment and armament, modification of     
   in-service aircraft, ground support equipment, components and parts such
   as spare engines, transmissions gear boxes, and sensor equipment. It    
   also funds related training devices such as combat flight simulators and
   production base support.                                                
                                 COMMITTEE RECOMMENDATIONS                        

                          Authorization Changes                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                
                                    [In thousands of dollars]                                   

Item                               Budget request    Committee recommendation     Change from request  

CH 47 Cargo Helicopter Mods                70,738                     126,838                 +56,100  
Utility/Cargo Airplane Mods                 6,308                       9,308                  +3,000  
AH 64 Longbow Mods                        729,536                     774,536                 +45,000  


                                                                               PROJECT LEVEL CHANGES                                                                               
                                                                             [In thousands of dollars]                                                                             

                                                                                                                                   Budget request    Recommended     Change from request  

UH 60 BLACKHAWK (MYP)                                                                                                                      86,140        207,140                +121,000  
 (NOTE: UH 60L aircraft are only for the Dual Mission General Support Aviation Company, National Guard, 40 Infantry Division)                                                     +67,000  
 (NOTE: UH 60Q aircraft are only for the National Guard)                                                                                                                                   
AH 64 MODS                                                                                                                                 22,565        116,565                 +94,000  
 (NOTE: Only for the National Guard)                                                                                                                                               +3,000  
UH 60 MODS                                                                                                                                 12,087         13,587                  +1,500  
AIRBORNE AVIONICS                                                                                                                          43,690         47,090                  +3,400  
AIRCRAFT SURVIVABILITY EQUIPMENT                                                                                                               88         24,188                 +24,100  
COMMON GROUND EQUIPMENT                                                                                                                    35,915         37,915                  +2,000  
AIRCREW INTEGRATED SYSTEMS                                                                                                                  4,394         14,894                 +10,500  


                         APACHE A MODEL READINESS                        

      The deployment of Task Force Hawk to Albania during Operation Allied 
   Force revealed a series of personnel training, readiness, and equipment 
   problems affecting the Army's Apache forces. The Committee is extremely 
   concerned with the condition of the current Apache fleet and has        
   recommended the following increases in procurement to alleviate         
   recognized deficiencies: $75,000,000 only to procure and integrate the  
   Second Generation Forward Looking Infrared Radar and $6,000,000 only to 
   procure and integrate HF radios on Apache A model helicopters. The      
   Committee also recommends an increase of $213,500,000 in Operations and 
   Maintenance, Army for spare parts and war reserve material. The         
   Committee expects that a portion of these funds will be used to meet    
   Apache requirements.                                                    
      The Committee's recommendation procures upgrades for 24 Apache A     
   model helicopters. The Committee encourages the Army to adequately fund 
   upgrades for the remaining fleet in subsequent budget requests.         
                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset folio 130 insert here                                            


                                 MISSILE PROCUREMENT, ARMY                        


                                                                               

                                                       

     Fiscal year 1999 appropriation         $1,226,335,000  
     Fiscal year 2000 budget request         1,358,104,000  
     Committee recommendation                1,272,798,000  
     Change from budget request                -85,306,000  

      This appropriation finances the acquisition of surface-to-air,       
   surface-to-surface, and anti-tank/assault missile systems. Also included
   are major components, modifications, targets, test equipment, and       
   production base support.                                                
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                    
                                      [In thousands of dollars]                                     

Item                                Budget  request      Committee recommendation     Change from request  

Avenger System Modifications                 33,750                        35,050                  +1,300  
Avenger Modifications                             0                         4,300                  +4,300  


                                        PROJECT LEVEL CHANGES                                        
                                      [In thousands of dollars]                                      

                                                 Budget  request      Recommended      Change from request  

JAVELIN (AAWS M) SYSTEM SUMMARY (AP CY)                   98,406                0                  -98,406  
MLRS LAUNCHER SYSTEMS                                    130,634          138,134                   +7,500  

                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset folio 132 insert here                                            


                  PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY        


                                                                               

                                                       

     Fiscal year 1999 appropriation         $1,548,340,000  
     Fiscal year 2000 budget request         1,416,765,000  
     Committee recommendation                1,556,665,000  
     Change from budget request               +139,900,000  

      This appropriation finances the acquisition of tanks; personnel and  
   cargo carriers; fighting vehicles; tracked recovery vehicles;           
   self-propelled and towed howitzers; machine guns; mortars; modification 
   of in-service equipment, initial spares; and production base support.   
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                         
                                        [In thousands of dollars]                                        

Item                                   Budget  request      Committee recommendations      Change from request  

Armor Machine Gun, 7.62MM M240                  12,204                         40,004                  +27,800  
Machine Gun, 5.56 (SAW)                              0                         10,100                  +10,100  


                                   PROJECT LEVEL CHANGES                                  
                                 [In thousands of dollars]                                

                                          Budget request     Recommended    Change from request  

Bradley base sustainment                         308,762         392,762                +84,000  
 (Note: Only for the National Guard)                                                      +4,000  
Carrier, MOD                                      53,463          68,463                +15,000  
Howitzer, 155MM M109A6 (MOD)                       6,259           7,259                 +1,000  
M1 Abrams Tank Modifications                      29,815          31,815                 +2,000  

                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset folio 134 insert here                                            


                              PROCUREMENT OF AMMUNITION, ARMY                     


                                                                               

                                                       

     Fiscal year 1999 appropriation         $1,065,955,000  
     Fiscal year 2000 budget request         1,140,816,000  
     Committee recommendation                1,228,770,000  
     Change from budget request                +87,954,000  

      This appropriation finances the acquisition of ammunition,           
   modification of in-service stock, and related production base support   
   including the maintenance, expansion, and modernization of industrial   
   facilities and equipment.                                               
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                     
                                      [In thousands of dollars]                                      

Item                              Budget  request      Committee recommendations      Changes from request  

25MM, All Types                            46,618                         48,618                    +2,000  
40MM, All Types                            36,645                         44,645                    +8,000  
105MM DPICM XM915                               0                          5,000                    +5,000  
Bunker Defeating Munition                       0                         10,000                   +10,000  
Grenades, All types                        11,431                         16,431                    +5,000  



                                      PROJECT LEVEL CHANGES                                     
                                    [In thousands of dollars]                                   

                                              Budget  request    Recommended      Change from request  

CTG, Mortar 60MM Smoke WP M722                              0          4,000                   +4,000  
CTG Mortar 81MM Prac 1/10 Range M880                    1,906          3,306                   +1,400  
CTG Mortar 120MM HE M934 W/MO Fuze                     46,279         49,279                   +3,000  
CTG Mortar 120MM Illum XM930 W/MTSQ FZ                      0         10,000                  +10,000  
CTG 120MM WP Smoke M929A1                              51,819         59,619                   +7,800  
CTG 120MM APFSDS T M829A2/M829E3                            0         32,000                  +32,000  
CTG 120MM HEAT MP T M830A1                                  0         22,000                  +22,000  
Proj Arty 155MM SADARM M898                            54,546              0                  -54,546  
Mine at M87 (VOLCANO)                                       0         15,000                  +15,000  
Wide Area Munitions                                    10,387         20,837                  +10,000  
Provision of Industrial Facilities                     46,139         53,439                   +7,300  

                      PROGRAM MANAGER FOR AMMUNITION                     

      A July 1997 study conducted for the Army advocated the               
   reconfiguration and management of the U.S. munitions industrial base    
   through the creation of a single, general-officer level Program Manager 
   who would be responsible for overseeing the life-cycle development of   
   ammunition. According to the study, creating a single Program Manager   
   for ammunition would significantly reduce costs for the Army and provide
   better management of the U.S. munitions industrial base. To date, the   
   Army has not implemented this recommendation. The Committee encourages  
   the Army to create a Program Manager for Ammunition at Picatinny Arsenal
   and directs the Commander of the Army Materiel Command to report by     
   January 5, 2000, on his plan to implement this recommendation.          
                           self-destruct fuzes                           

      The Committee is aware that the Army has completed testing of, and   
   type classified, M234 and M235 self-destruct fuzes for artillery and    
   rocket grenades. The Committee believes that using a self-destruct fuze 
   in future production of grenades, bomblets and submunitions could reduce
   the risk of unexploded ordnance casualities on the battlefield. The     
   Committee directs the Secretary of Defense to report to the Committee,  
   no later than December 31, 1999, an analysis of unexploded ordnance     
   issues and the recommended solutions including the use of self-destruct 
   fuzes.                                                                  
                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset folios 137 to 138 insert here                                    


                                  OTHER PROCUREMENT, ARMY                         


                                                                               

                                                      

     Fiscal year 1999 appropriation        $3,339,486,000  
     Fiscal year 2000 budget request        3,423,870,000  
     Committee recommendation               3,604,751,000  
     Change from budget request              +180,881,000  

      This appropriation finances the acquisition of: (a) tactical and     
   commercial vehicles, including trucks, semi-trailers, and trailers of   
   all types to provide mobility and utility support to field forces and   
   the worldwide logistical system; (b) communications and electronics     
   equipment of all types to provide fixed, semi-fixed, and mobile         
   strategic and tactical communication equipment; (c) other support       
   equipment such as chemical defensive equipment, floating and rail       
   equipment, generators and power units, material handling equipment,     
   medical support equipment, special equipment for user testing, and      
   non-system training devices. In each of these activities, funds are also
   included for modification of in-service equipment, investment spares and
   repair parts, and production base support.                              
                                  COMMITTEE RECOMMENDATION                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                                             
                                                  [In thousands of dollars]                                                  

Item                                                          Budget request    Committee  recommendation     Change from  request  

Family of Heavy Tactical Vehicles                                    190,399                      196,399                   +6,000  
Product Improved Combat Vehicle Crewman Headset                            0                       15,000                  +15,000  
Lightweight Video Reconnaissance System                                3,436                        5,936                   +2,500  
Combat Support Medical                                                25,250                       40,250                  +15,000  
Roller, vibratory, self-propelled                                          0                       10,300                  +10,300  
Compactor, high speed                                                  9,798                       12,938                   +2,600  
Crane, wheel mounted, 25 ton                                          12,089                       20,089                   +8,000  
Items less than $2 million (Construction Equipment--UBM)               4,286                        6,286                   +2,000  
Pusher tug, small                                                          0                        9,000                   +9,000  



                                       PROJECT LEVEL CHANGES                                      
                                     [In thousands of dollars]                                    

                                                   Budget request    Recommended    Change from request  

Tactical Trailers/Dolly Sets                               15,277         20,277                 +5,000  
HEMTT Modifications                                         4,901         11,701                 +6,800  
Modification of Inservice Equipment                        29,769         33,269                 +3,500  
SHF Term                                                   31,950              0                -31,950  
SMART-T (Space)                                            61,761         31,761                -30,000  
SCAMP (Space)                                               5,033              0                 -5,033  
Army Data Distribution System                              36,763         58,763                +20,000  
SINCGARS Family                                            13,205         33,205                 20,000  
ACUS Mod Program (WIN T/T)                                109,056        115,956                 +6,900  
Medical Comm for CBT Casualty Care (MC4)                   20,600         21,600                 +1,000  
Information System Security Program-ISS                    28,750         39,450                +10,700  
Joint Stars (Army) (TIARA)                                 82,176        107,176                +25,000  
CI HUMINT Automated Tool Set (CHATS) (TIARA)                3,137          4,637                 +1,500  
Shortstop                                                       0         28,000                +28,000  
Night Vision Devices                                       20,977         67,777                +46,800  
Combat Identification Aiming/Light                          9,486              0                 -9,486  
Mod of In-Svc Equip (Tac Surv)                              6,533         29,533                +23,000  
Digitization Applique                                      66,423         56,423                -10,000  
Mortar Fire Control System                                  3,740              0                 -3,740  
Maneuver Control System (MCS)                              52,049         10,000                -42,049  
Production Base Support (C E)                                 378          2,878                 +2,500  
Heavy Dry Supt Bridge System                               13,980         17,980                 +4,000  
Explosive Ordnance Disposal Eqpmt (EOD E)                   4,989         10,989                 +6,000  
Lightweight Maintenance Enclosure (LME)                     2,128          3,728                 +1,600  
Distribution Sys, Pet and Water                            10,716         13,716                 +3,000  
Generators and Associated Equip                            78,639         81,639                 +3,000  
Combat Training Centers Support                             2,450          9,050                 +6,600  
Training Devices, Nonsystem                                67,374         75,124                 +7,750  
SIMNET/Close Combat Tactical Trainer                       75,367         40,367                -35,000  
Intergrated Family of Test Equipment (IFTE)                41,602         56,602                +15,000  
Modification of In-Svc Equipment (OPA 3)                   24,852         39,352                +14,500  
Ultra Lightweight Camouflage Net System                         0         20,000                +20,000  

                    FAMILY OF MEDIUM TACTICAL VEHICLES                   

      Recently, the Committee's Surveys and Investigations (S&I) staff     
   completed an in-depth analysis of the Family of Medium Tactical Vehicles
   Program (FMTV). The Committee was very disturbed when it became aware of
   the S&I staff's findings. The S&I staff, which spent many hours in the  
   field with unit personnel, found many problems with the truck. For      
   example: (1) Door latches do not secure properly causing the doors to   
   open during normal operations; (2) Starters which fail after only 2,000 
   miles of operation; (3) Transmission tanks that crack causing           
   anti-freeze and transmission fluid to mix; (4) Tail gates that cannot be
   closed with troops seated because the truck bed warps; and (5) Batteries
   that boil over and leak acid onto air tanks causing corrosion. The S&I  
   staff found many other problems, from poorly constructed seats to       
   fragile bumpers. The Committee remains troubled that the FM TV truck has
   so many outstanding technical issues.                                   
      Additionally, the S&I staff found that even though the Army claims   
   that many of the problems identified by the S&I staff are being         
   resolved, the Army is unable to provide even rudimentary cost estimates 
   for fixing the problems. The Committee directs that the Army provide the
   Congress, no later than December 15, 1999, a report that addresses the  
   outstanding technical and operational problems with the FMTV, the       
   solution for each problem and the cost of implementing each solution.   
                     Information Technology Programs                     

      Information on the Committee's proposed adjustments to the LAN,      
   LogTech, STAMIS, and ADPE programs can be found in the Information      
   Technology section of this report.                                      
                 tactical unmanned aerial vehicle (tuav)                 

      The Committee supports the Army's revised Acquisition Strategy for   
   the Tactical Unmanned Aerial Vehicle (TUAV). This revised strategy was  
   outlined in a March 26, 1999 letter from the Assistant Secretary of the 
   Army for Acquisition, Logistics and Technology. The revised strategy    
   includes the termination of the Outrider Advanced Concept Technology    
   Demonstration and a new competition to meet the Army's TUAV requirement.
      The Committee notes that since the new strategy was presented to     
   Congress after submission of the fiscal year 2000 budget, funding for   
   the TUAV was not requested in the proper appropriation. The Army        
   requested procurement funding for the Outrider vehicle, not research and
   development funding for the new acquisition strategy. The Committee has 
   made the necessary correction by reducing Outrider procurement funding  
   by $45,863,000 and increasing the research and development funding for  
   tactical unmanned aerial vehicle by $40,000,000, a net reduction of     
   $5,863,000 which the Committee believes is justified given the revised  
   acquisition plan.                                                       
      The Committee directs that the Army consider reliability and         
   interoperability with the Tactical Control System (TCS) as critical     
   source selection evaluation criteria for the new TUAV.                  
                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset Folios 143 to 148 Insert here                                    



                                 AIRCRAFT PROCUREMENT, NAVY                       


                                                                               

                                                      

     Fiscal year 1999 appropriation        $7,541,709,000  
     Fiscal year 2000 budget request        8,228,655,000  
     Committee recommendation               9,168,405,000  
     Change from budget request              +939,750,000  

      This appropriation provides funds for the procurement of aircraft and
   related support equipment and programs; flight simulators; equipment to 
   modify in-service aircraft to extend their service life, eliminate      
   safety hazards, and improve their operational effectiveness; and spare  
   parts and ground support equipment for all end items procured by this   
   appropriation.                                                          
                                 COMMITTEE RECOMMENDATIONS                        

                          Authorization Changes                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                              
                                   [In thousands of dollars]                                  

Item                           Budget request    Committee  recommendation     Change from  request  

V 22                                  796,392                      856,392                  +60,000  
Special Project Aircraft               28,782                       30,782                   +2,000  



                                    PROJECT LEVEL CHANGES                                   
                                  [In thousands of dollars]                                 

                                Budget  request     Commitee  recommended    Change from  request  

CH 60S                                  208,493                   284.493                 +76,000  
JPATS                                    44,826                    55,826                 +11,000  
KC 130J                                  12,257                   576,257                +564,000  
EA 6 Series                             161,047                   272,047                +111,000  
 18 Series                              308,789                   281,789                 -27,000  
AH 1W Series                             13,726                    16,726                  +3,000  
SH 60 Series                             56,824                    60,324                  +3,500  
H 1 Series                                6,339                    16,339                 +10,000  
EP 3 Series                              27,433                    44,433                 +17,000  
P 3 Series                              276,202                   361,202                 +85,000  
 2 Series                                28,201                    55,101                 +26,900  
 6 Series                                86,950                    85,250                  -1,700  
Special Project Aircraft                 28,782                    30,782                  +2,000  
Common ECM Equipment                     50,584                    58,584                  +8,000  
Common Ground Equipment                 413,732                   379,782                 -33,950  
Other Production Charges                 39,991                    64,991                 +25,000  

                              V 22 aircraft                              

      The Navy requested $796,392,000 for 10 V 22 aircraft. The Committee  
   recommends $856,392,000, an increase of $60,000,000 for one additional V
   22. The Committee strongly endorses the Department's plan to replace    
   aging CH 46E's and CH 53D's with the versatile and comparatively quieter
   V 22 Osprey. The Committee expects the Department to accelerate the     
   procurement of the V 22 to achieve the most economical buy rate. In     
   addition, the Committee directs the Department to accelerate the stand  
   up of West Coast V 22 squadrons in order to provide better operational  
   support and geographical balance.                                       

                             KC 130J AIRCRAFT                            

      The Marine Corps requested $12,257,000 for support of KC 130J        
   aircraft. The Committee recommends $576,257,000 to procure eight        
   aircraft and their associated support equipment, an increase of         
   $564,000,000. The Marine Corps requires 51 KC 130J aircraft to replace  
   KC 130F air-to-air refueler/tactical transports, the oldest aircraft in 
   the Marine Corps' inventory, which were procured between 1960 1962 and  
   are currently being flown by the active forces. KC 130Fs comprise 73    
   percent of the Marine Corps active force tanker inventory and 45 percent
   of the Department of Defense's rotary wing capable tanker inventory.    
   They play a vital role in supporting forward-deployed Marine Air-Ground 
   Task Forces and other CINC forward presence missions.                   
      Current KC 130F aircraft are not night vision capable, they lack     
   external fuel tanks (which reduces range by 1000 miles or fuel offload  
   capability by 18,000 pounds), and they lack defensive systems to warn   
   and protect from enemy missile attack. The KC 130F fleet averages over  
   22,000 flight hours and 12,000 landings per aircraft. An engineering    
   assessment completed in December 1998 indicated that actual center wing 
   fatigue life remaining on these aircraft is significantly less than     
   previously estimated. The Marine Corps subsequently informed the        
   Committee that the urgency of the need for KC 130J aircraft to replace  
   those in-service aircraft significantly increased after the fiscal year 
   2000 budget request was submitted to Congress. During the last four     
   years, 3 aircraft (6 percent of the active tanker fleet) were struck    
   from operation due to fatigue. Today, while the inventory requirement is
   79 KC 130 tanker aircraft, the Marines are only operating at 77         
   aircraft.                                                               
      The Committee agrees with Marine Corps assessments concerning the    
   overwhelming need to modernize the tactical tanker aircraft force. The  
   Committee notes that even with congressional funding, 80 percent of the 
   Marine Corps requirement for KC 130J aircraft has not been budgeted. The
   Committee directs the Secretary of the Navy to ensure that the fiscal   
   year 2001 and subsequent budgets contain sufficient funds to sustain the
   KC 130J line at an efficient rate after fiscal year 2000.               

                  JOINT PRIMARY AIRCRAFT TRAINING SYSTEM                 

      The Navy requested $44,826,000 for procurement of 8 JPATS training   
   aircraft. The Committee recommends $55,826,000 for 12 aircraft, an      
   increase of $11,000,000. This includes $12,000,000 for procurement of 4 
   additional aircraft only for the navigator (UNFO) mission, and a        
   decrease of $1,000,000 as recommended by House authorization action due 
   to excessive engineering change order allowances. The Navy recently     
   informed the Committee that by replacing 16 older training aircraft with
   9 new JPATS aircraft, it could save $16,000,000 annually while also     
   significantly improving the quality of training. In this bill, the      
   Committee has recommended the maximum number of additional JPATS        
   aircraft in both Navy and Air Force aircraft procurement accounts       
   allowable under the current contract, in order to take advantage of the 
   contract's favorable pricing. The Committee directs the Secretary of the
   Navy to ensure that the fiscal year 2001 budget contains funds for the  
   remaining 5 JPATS UNFO aircraft.                                        
                             e/a 6b aircraft                             

      With the retirement of the Air Force EF 111 aircraft, the EA 6B has  
   become the Defense Department's primary escort jammer aircraft to       
   support combat strike missions. The crews and aircraft of Navy and      
   Marine EA 6B squadrons performed admirably during Operation Allied      
   Force. However, due to the Department's overall lack of jamming         
   aircraft, the forces were stretched, air crews were stressed, and the   
   logistics support tail was strained. This operation also made it clear  
   that even advanced stealth aircraft benefit from escort jamming from the
   EA 6B, counter to assumptions made when the EF 111s were retired.       
      The Committee views recent EA 6B operations be it in Operation Allied
   Force, or in the ongoing sanctions enforcement operations around Iraq,  
   as a premier example of the actual and potential future benefits of     
   joint service combat operations. The Committee believes this clearly    
   indicates that more, not less, tactical escort jamming support, will be 
   needed in the future. Yet the EA 6B airframe has limited life remaining 
   and its limited numbers have already posed severe challenges to         
   operational planners. Therefore, the Committee bill recommends an       
   additional $227,000,000 to reinvigorate the tactical jamming aircraft   
   force.                                                                  
      The fiscal year 1999 Supplemental Appropriations Act financing the   
   cost of Operation Allied Force provided $300,000,000 for a operational  
   rapid response fund. The Defense Department has indicated that a number 
   of EA 6B near-term upgrades will be financed from the supplemental      
   funds, to include: $45,000,000 for band 9/10 jammers, $39,000,000 for   
   universal exciters, and $30,400,000 for miniaturized automated tactical 
   terminals/integrated data modems. Although these items provide important
   and quick warfighting improvements to the EA 6B fleet (a use for the    
   fund consistent with its creation by this Committee), they do not       
   address the mid and long term fleet force structure and modernization   
   issues.                                                                 
      Therefore, the Committee recommends an additional $111,000,000 in    
   Aircraft Procurement, Navy for EA 6B enhancements. This includes        
   $60,000,000 for the procurement of high-fidelity simulators for EA 6B   
   bases at Cherry Point, North Carolina and Whidbey Island, Washington;   
   $31,000,000 to procure and install EA 6B night vision equipment; and    
   $20,000,000 to remanufacture a test aircraft into an operational asset. 
   The rationale for these additions as follows. After the budget was      
   submitted, the Navy informed the Committee that competitively procuring 
   high fidelity simulators for east and west coast EA 6B bases was        
   feasible and would result in reduced need for aircraft flight training  
   hours, more airframes for forward deployment, and reduced airframe wear.
   Outfitting the EA 6Bs with night vision devices increases operational   
   effectiveness while reducing crew risk to enemy optically guided        
   surface-to-air missiles. Finally, refurbishment of an EA 6B test asset  
   will result in one additional combat aircraft deployed to the fleet.    

      The EA 6B force structure, already heavily tasked to meet current    
   commitments, will decline over time due to aircraft wear and attrition  
   and cannot be augmented with new production aircraft on a cost-effective
   basis. Moreover, in about ten years, the EA 6B fleet size and           
   capabilities will begin a steady decline as older aircraft reach the age
   of retirement. The Defense Department currently has no plan to meet     
   these eventualities, and therefore, the Committee believes it would be  
   prudent to begin planning now to ensure that no EA 6B force degradation 
   occurs. Elsewhere in this report, the Committee recommends an additional
   $116,000,000 in the Research, Development, Test and Evaluation, Navy    
   account for tactical jamming aircraft enhancements. This includes       
   $60,000,000 to provide the EA 6B with Link 16 connectivity; $16,000,000 
   to initiate an analysis of alternatives for a follow-on jammer aircraft;
   and $40,000,000 to immediately begin risk reduction and concept         
   development for a F/A 18E/F variant to become the follow-on tactical    
   jamming aircraft. The Committee urges the Defense Department to expand  
   the tactical jammer aircraft fleet, in particular to capitalize upon the
   operational need and advantages which accrue from combining jamming with
   stealth aircraft, by introducing a tactical jamming variant of the F/A  
   18E/F aircraft by the year 2006.                                        
                  CONSOLIDATED AUTOMATED SUPPORT SYSTEM                  

      The Navy has standardized its aircraft support equipment through the 
   Consolidated Automated Support System. The Committee believes that the  
   Navy should develop a longer term acquisition strategy, rather than     
   using annual buys, in order to stabilize the program and achieve cost   
   reductions.                                                             
         Advanced Tactical Airborne Reconnaissance System (ATARS)        

      The Committee remains concerned about the lack of progress that has  
   been made in fielding new technologies to meet Marine Corps tactical    
   reconnaissance requirements. The F/A 18 ATARS program has been hindered 
   with a troubled past and despite its recent deployment to meet emergency
   requirements in the Balkans region, is limited by technology developed  
   in the mid-1980's. Following an investment of almost $1,000,000,000 and 
   15-years of development effort, the ATARS program remains plagued with  
   annoying maintenance issues, has yet to complete a successful           
   Operational Evaluation (OPEVAL), and has not been certified for full    
   rate production.                                                        
      Therefore, the Committee directs that prior to the obligation of any 
   fiscal year 2000 appropriations, the Marine Corps must complete a ``by  
   the book'' OPEVAL of the full-up ATARS system. If the ongoing           
   operational assessment tests and the OPEVAL indicate that the system    
   does not meet the stated requirements, the Committee requires that it be
   immediately notified of the shortfalls and the Marine Corps plan for the
   future of ATARS.                                                        
      The Committee notes that in fiscal year 1999, the Navy's budget      
   justification material indicated that it intended to use 1999 funds to  
   finance the ATARS OPEVAL and initiation of Full Rate Production.        
   Congress agreed and this became the ``Congressionally approved''        
   program. The Committee understands that the Navy now desires to not use 
   1999 appropriations to initiate Full Rate Production, but intends to    
   waive acquisition regulations and move to a Low Rate Initial Production 
   (LRIP) III decision prior to completion of the OPEVAL. With the         
   execution of the LRIP III, the Navy will have committed, through the    
   LRIP process, to procure half of the ATARS inventory objective. The     
   Committee requests that prior to making such a decision, the Secretary  
   of the Navy submit to the Committee a revised acquisition plan for      
   ATARS. Additionally, the Secretary of the Navy should submit a letter to
   the Committee that addresses the Navy's desire to alter the fiscal year 
   1999 Congressionally approved program and request approval to use       
   appropriated funds for a similar, although alternative, purpose.        
      Additionally, the Committee directs that the Marine Corps complete   
   and submit to the Committee by November 1, 1999, a report that addresses
   its future plans for meeting reconnaissance requirements. This ``road   
   map'' of tactical reconnaissance must address the Marine Corps plan to  
   acquire the Navy's Shared Reconnaissance Pod (SHARP) system when it     
   successfully completes evaluation and testing and becomes available for 
   procurement.                                                            
     tactical airborne reconnaissance pod system--completely digital     
                               (tarps-cd)                                
      The Committee understands that TARPS(CD) is the proof of concept for 
   the next generation of tactical reconnaissance systems: the Shared      
   Airborne Reconnaissance Pod (SHARP). TARPS(CD) is employing off the     
   shelf technology similar to the more capable technology being developed 
   for the SHARP system. The Committee fully supports this approach and the
   rapid prototyping process that the Navy, particularly the Naval Research
   Lab, is promoting with SHARP.                                           
      The Committee also supports the Navy's decision to deploy TARPS(CD)  
   on board the USS John F. Kennedy to support peacekeeping operations in  
   the Balkans region. The opportunity now presents itself for additional  
   limited operational experience with TARPS(CD) and through that          
   experience, to assist with the design and risk mitigation for SHARP. The
   operational lessons learned from a limited, interim deployment of       
   TARPS(CD) therefore would have a two-fold effect: preparing operational 
   forces to more quickly integrate the capability increases of SHARP into 
   their tactics and also allowing that experience to assist the final     
   design of the SHARP system to ensure it meets fleet operational         
   requirements.                                                           
      Therefore, the Committee adds $25,000,000 only to procure and test   
   additional TARPS(CD) systems. These additional systems will provide for 
   continued development in support of the rapid prototyping process for   
   SHARP, as well as spares for the system deployed with the USS John F.   
   Kennedy.                                                                
                               RESCISSIONS                               

      The Committee recommends rescissions of $62,500,000 from several     
   fiscal year 1999 Aircraft Procurement, Navy programs. These include:    
   $41,500,000 in Common Ground Equipment due to the cancellation of the   
   jet start unit project; $11,000,000 in AV 8B due to cancellation of the 
   aircraft life extension program; and $10,000,000 due to contract savings
   resulting from E 2C multiyear procurement.                              
                                    PROGRAM RECOMMENDED                           

      The total recommended in the bill will provide the following program 
   in fiscal year 2000.                                                    

   Offset Folio 155 Insert Here                                            


                                 WEAPONS PROCUREMENT, NAVY                        


                                                                               

                                                      

     Fiscal year 1999 appropriation        $1,211,419,000  
     Fiscal year 2000 budget request        1,357,400,000  
     Committee recommendation               1,334,800,000  
     Change from budget request               -22,600,000  

      This appropriation provides funds for the procurement of strategic   
   and tactical missiles, target drones, torpedoes, guns, associated       
   support equipment, and modification on in-service missiles, torpedoes,  
   and guns.                                                               
                                 COMMITTEE RECOMMENDATIONS                        


                                                                PROJECT LEVEL CHANGES                                                               
                                                              [In thousands of dollars]                                                             

                                                                                           Budget request    Committee recommended    Change from request  

Standard missile                                                                                  198,867                  155,267                -43,600  
Aerial Targets                                                                                     21,177                   51,177                +30,000  
Penguin missiles                                                                                        0                   10,000                 10,000  
Tomahawk                                                                                           50,894                   50,894                      0  
 Note: Funds provided only to convert Anti-Ship Tomahawks to the block III C variant.     

                                   JSOW                                  

      The Navy requested $154,913,000 for JSOW. The Committee recommends   
   $135,913,000, a net decrease of $19,000,000. This amount includes a     
   decrease of $39,300,000 for the anti-armor JSOW variant and an increase 
   of $20,300,000 for the baseline JSOW variant. As discussed in the Air   
   Force section of this report, the Committee recommends deferring        
   production of the anti-armor variant of the JSOW pending resolution of  
   technical problems with the improved BLU 108 submunition and pending    
   resolution of targeting problems. In order to minimize disruption to the
   JSOW production flow, the Committee recommends converting the proposed  
   BLU 108 weapons to baseline weapons resulting in a savings of           
   $19,000,000. The Committee expects the Navy to include separate budget  
   exhibits for each variant of JSOW in future budget submissions.         
                               RESCISSIONS                               

      The Committee recommends a rescission of $8,000,000 from fiscal year 
   1999 Weapons Procurement, Navy due to delay in procurement of the       
   Improved Tactical Air Launched Decoy resulting from deficiencies        
   revealed in recent operational testing.                                 

                                    PROGRAM RECOMMENDED                           

      The total recommended in the bill will provide the following program 
   in fiscal year 2000.                                                    

   Offset Folio 157 Insert Here                                            


                      PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS            


                                                                               

                                                    

     Fiscal year 1999 appropriation        $484,203,000  
     Fiscal year 2000 budget request        484,900,000  
     Committee recommendation               537,600,000  
     Change from budget request             +52,700,000  

      This appropriation finances the acquisition of ammunition, ammunition
   modernization, and ammunition related material for the Navy and Marine  
   Corps.                                                                  
                                  COMMITTEE RECOMMENDATION                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                   
                                     [In thousands of dollars]                                     

Item                                   Budget request    Committee recommendation    Change from request  

Air Expendable Countermeasure                  34,259                      39,259                 +5,000  
5.56MM, All Types                              12,958                      21,958                 +9,000  
7.62MM, All Types                                   7                       5,007                 +5,000  
40MM, All Types                                11,247                      12,547                 +1,300  
60MM, All Types                                12,433                      16,433                 +4,000  
25MM, All Types                                 3,194                      11,394                 +8,200  
Demolition Munitions, All Types                14,733                      21,933                 +7,200  


                             PROJECT LEVEL CHANGES                             
                           [In thousands of dollars]                           

                           Budget request    Recommended    Change from request  

50 Caliber                         16,364         18,364                 +2,000  
Grenades, All Types                 2,270          4,270                 +2,000  
Rockets, All Types                 11,030         20,030                 +9,000  

                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset folios 065 to insert here                                        


                             SHIPBUILDING AND CONVERSION, NAVY                    


                                                                               

                                                      

     Fiscal year 1999 appropriation        $6,035,752,000  
     Fiscal year 2000 budget request        6,678,454,000  
     Committee recommendation               6,656,554,000  
     Change from budget request               -21,900,000  

      This appropriation provides funds for the construction of new ships  
   and the purchase and conversion of existing ships, including hull,      
   mechanical, and electrical equipment, electronics, guns, torpedo and    
   missile launching systems, and communication systems                    
                                 COMMITTEE RECOMMENDATIONS                        

                          Project Level Changes                          

          [In thousands of dollars]                                               


                                                                                                 

                                       Budget request     Committee recommended    Change from Request  

CVN Refueling Overhauls (AP-CY)               345,565                   323,665                -21,900  

                      POST DELIVERY TEST AND TRIALS                      

      The Committee directs that in future budgets, the costs associated   
   with post delivery test and trials conducted during the post delivery   
   period for all fiscal year 1997 and subsequent ships be included in the 
   subdivision of funds appropriated in the fiscal year in which the test  
   and trials occur.                                                       
                                        RESCISSIONS                               

      The Committee recommends rescissions of $46,400,000 from several     
   fiscal year 1999 Shipbuilding and Conversion, Navy programs. These      
   include: $32,400,000 in the Virginia class submarine due to reduction in
   shipyard labor and overhead rates resulting from the multi-mission      
   modification to SSN 23; $11,400,000 due to contract savings in the CVN  
   69 CVN refueling advance planning contract; and $2,600,000 due to       
   contract savings in nuclear propulsion components for the Virginia class
   submarine.                                                              
                                    PROGRAM RECOMMENDED                           

      The total recommended in the bill will provide the following program 
   in fiscal year 2000.                                                    

   Offset folios 161 to insert here                                        


                                  OTHER PROCUREMENT, NAVY                         


                                                                               

                                                      

     Fiscal year 1999 appropriation        $4,072,662,000  
     Fiscal year 2000 budget request        4,100,091,000  
     Committee recommendation               4,252,191,000  
     Change from budget request              +152,100,000  

      This appropriation provides funds for the procurement of major       
   equipment and weapons other than ships, aircraft, missiles, and         
   torpedoes. Such equipment ranges from the latest electronic sensors for 
   updating naval forces to trucks, training equipment, and spare parts.   
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                      
                                       [In thousands of dollars]                                      

                                          Budget request    Committee recommendation    Change from request  

Undersea Warfare Support Equipment                 2,605                      11,205                 +8,600  
SATCOM ship Terminals (Space)                    237,722                     247,722                +10,000  



                                                                                                                                                PROJECT LEVEL CHANGES                                                                                                                                                
                                                                                                                                              [In thousands of dollars]                                                                                                                                              

                                                                                                                                                                                                                                                           Budget  request    Committee recommended    Change from request  

Other Navigation Equipment                                                                                                                                                                                                                                          67,516                   87,516                +20,000  
 Note: CADRT funds are only to begin low rate initial production.                                                                                                                                                                                                                                                            
Pollution Control Equipment                                                                                                                                                                                                                                        113,506                  116,506                 +3,000  
Strategic Platform Support Equipment                                                                                                                                                                                                                                 6,070                   21,070                +15,000  
 Note: For procurement of submarine workstations, to include but not be limited to the navigation system workstation, OJ 172, and the data exchange auxilliary console, on SSN 688 and Trident class submarines.                                                                                                             
Minesweeping Equipment                                                                                                                                                                                                                                              16,302                   20,802                 +4,500  
Dyad mine countermeasures system                                                                                                                                                                                                                                         0                                          +4,500  
Items Less Than $5.0M                                                                                                                                                                                                                                              126,133                  154,533                +28,400  
Radar Support                                                                                                                                                                                                                                                            0                   22,300                +22,300  
Surface Sonar Support Equipment                                                                                                                                                                                                                                          0                    5,000                 +5,000  
Undersea Warfare Support Equipment                                                                                                                                                                                                                                   2,605                   11,205                 +8,600  
 Note: Only for procurement of surface ship enhanced capability torpedo defense systems for large deck ships and LEAD countermeasure units for all ships to include upgraded torpedo countermeasure winch and tow capability for littoral operations.                                                                        
Sonar Support Equipment                                                                                                                                                                                                                                                  0                    3,000                 +3,000  
C 3 Countermeasures                                                                                                                                                                                                                                                      0                   10,000                +10,000  
Shipboard IW Exploit                                                                                                                                                                                                                                                48,031                   21,531                -26,500  
Common High Bandwidth Data Link                                                                                                                                                                                                                                     40,083                   31,283                 -8,800  
Navy Tactical Data System                                                                                                                                                                                                                                                0                   25,000                +25,000  
 Note: To install Wintel-based shipboard display emulator computers workstations, and displays in LHA 1, LHA 3, and LHA 5 ships.                                                                                                                                          0                                          +5,000  
Other Training Equipment                                                                                                                                                                                                                                            44,229                   54,229                +10,000  
TADIX B                                                                                                                                                                                                                                                              6,248                   23,548                +17,300  
Naval Space Surveillance System                                                                                                                                                                                                                                      6,634                    7,834                 +1,200  
GCCS M Equipment Tatical/Mobile                                                                                                                                                                                                                                      7,077                   17,077                +10,000  
RADIAC                                                                                                                                                                                                                                                               7,778                    4,278                 -3,500  
Items Less Than $5.0M                                                                                                                                                                                                                                                5,206                   10,206                 +5,000  
Submarine Communication Equipment                                                                                                                                                                                                                                   85,368                   53,268                -32,100  
SATCOM Ship Terminals (Space)                                                                                                                                                                                                                                      237,722                  247,722                +10,000  
 Note: Includes procurement/installation of mini-DAMA UHF SATCOM terminals on MCM and MHC ships, and mini-DAMA medium data rate upgrades for DDGs, SSN 688s, MHCs, MCMs, and submarine shore sites.                                                                                                                          
JEDMICS                                                                                                                                                                                                                                                                  0                   17,000                +17,000  
 Note: Only for the continued procurement and integration of the same security solution implemented in 1999.                                                                                                                                                              0                                          +5,000  
Naval Shore Communications                                                                                                                                                                                                                                         114,339                   92,439                -21,900  
Passive Sonobuoys (non-Beam forming)                                                                                                                                                                                                                                15,933                   23,933                 +8,000  
AN/SSQ 57 (Special purpose)                                                                                                                                                                                                                                              0                    1,000                 +1,000  
AN/SSQ 62 (DICASS)                                                                                                                                                                                                                                                  17,111                   17,711                   +600  
AN/SSQ 101 (ADAR)                                                                                                                                                                                                                                                   12,773                   18,773                 +6,000  
Aviation Life Support                                                                                                                                                                                                                                               17,053                   23,053                 +6,000  
Aegis Support Equipment                                                                                                                                                                                                                                             86,668                   93,668                 +7,000  
Command Support Equipment                                                                                                                                                                                                                                           14,471                   16,471                 +2,000  

                       Pollution Control Equipment                       

      The Committee directs the Inspector General of the Department of     
   Defense to conduct an evaluation of the effectiveness and               
   cost-effectiveness of Navy's pollution control equipment program for    
   upgrading equipment on Navy ships.                                      
                               RESCISSIONS                               

      The Committee recommends rescissions of $22,700,000 from several     
   Other Procurement, Navy programs. This includes $6,384,000 in fiscal    
   year 1998 and $8,953,000 in fiscal year 1999 due to the recent program  
   slip in the Combat Survivor Evader Radio; $5,500,000 in fiscal year 1999
   for FFG upgrades; and $1,900,000 in fiscal year 1999 due to a reduction 
   in quantity in the MK XII IFF digital interrogator systems.             
                                    PROGRAM RECOMMENDED                           


      The total recommended in the bill will provide the following program 
   in fiscal year 2000.                                                    

   Offset folios 165 to 169 insert here                                    



                                 PROCUREMENT, MARINE CORPS                        


                                                                               

                                                      

     Fiscal year 1999 appropriation          $874,216,000  
     Fiscal year 2000 budget request        1,137,220,000  
     Committee recommendation               1,333,120,000  
     Change from budget request              +195,900,000  

      This appropriation provides the Marine Corps with funds for          
   procurement, delivery and modification of missiles, armament,           
   communication equipment, tracked and wheeled vehicles, and various      
   support equipment.                                                      
                                  COMMITTEE RECOMMENDATION                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                               
                                   [In thousands of dollars]                                   

Item                               Budget request    Committee recommendation    Change from request  

Night Vision Equipment                      9,032                      17,532                 +8,500  
Material Handling Equipment                50,010                      66,510                +16,500  


                                                                     PROJECT LEVEL CHANGES                                                                    
                                                                   [In thousand of dollars]                                                                   

Item                                                                                             Budget request     Committee recommendation    Change from request  

Modification Kits (TRKD Veh)                                                                             22,853                       83,353                +60,500  
Comm Switching and Control Systems                                                                       65,125                       98,025                +32,900  
 (Note: Further details are provided in the Information Technology section of this report)                                                                            
Comm and Elec Infrastructure Support                                                                     81,770                      139,070                +57,300  
 (Note: Further details are provided in the Information Technology section of this report).                                                                           
Mod Kits MAGTF C41                                                                                       13,821                       18,821                 +5,000  
Fire Support System                                                                                           0                        6,000                 +6,000  
Command Support Equipment                                                                                     0                        2,000                 +2,000  
Field Medical Equipment                                                                                   2,445                        7,645                 +5,200  
Modification Kits                                                                                             0                        2,000                 +2,000  

                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset folios 171 to 173 insert here                                    



                               AIRCRAFT PROCUREMENT, AIR FORCE                    


                                                                               

                                                      

     Fiscal year 1999 appropriation        $8,095,507,000  
     Fiscal year 2000 budget request        9,302,086,000  
     Committee recommendation               8,298,313,000  
     Change from budget request            -1,003,773,000  

      This appropriation provides for the procurement of aircraft, and for 
   modification of in-service aircraft to improve safety and enhance       
   operational effectiveness. It also provides for initial spares and other
   support equipment to include aerospace ground equipment and industrial  
   facilities. In addition, funds are provided for the procurement of      
   flight training simulators to increase combat readiness and to provide  
   for more economical training.                                           
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes to the budget request 
   in accordance with House authorization action.                          

                                                                                                
                                    [In thousands of dollars]                                   

Item                               Budget request     Committee recommendation    Change from request  

 16 Post Production Support                30,010                       50,010                +20,000  
C 17 Modifications                         95,543                       93,543                 -2,100  


                                              Project Level Changes                                              
                                            [In thousands of dollars]                                            

Item                                                Budget request     Committee recommendation    Change from request  

C 17 (MYP)                                               3,080,147                    2,671,047               -409,100  
C 17 (MYP) (AP CY)                                         304,900                      301,700                 -3,200  
JPATS                                                       88,232                      106,332                +18,100  
V 22 OSPREY                                                 29,203                       16,736                -12,467  
Operational Support Aircraft                                     0                       63,000                +63,000  
TARGET DRONES                                               36,152                       31,652                 -4,500  
B 1B                                                       130,389                      147,039                +16,650  
Predator UAV                                                38,003                       58,003                +20,000  
A 10                                                        24,360                       29,360                 +5,000  
 16                                                        249,536                      295,536                +46,000  
KC 10A (ATCA)                                               53,366                       29,757                -23,609  
C 130                                                      207,646                      165,546                -42,100  
 Transfer to RDTEAF for Avionics Modernization                                                                  -38,600  
DARP                                                       138,436                      302,936               +164,500  
 3                                                         124,061                       94,561                -29,500  
 4                                                          19,985                        9,985                -10,000  
PASSENGER SAFETY MODIFICATIONS                                   0                       75,000                +75,000  
COMMON SUPPORT EQUIPMENT                                   171,369                      185,897                +14,528  
B 2A                                                       106,882                       75,482                -31,400  
WAR CONSUMABLES                                             29,282                       54,282                +25,000  


                                   f 22                                  

      The Committee recommendation with respect to F 22 is discussed       
   elsewhere in this report.                                               
                                   f 15                                  

      The Committee recommendation includes $440,000,000 to procure 8 F 15E
   aircraft. The budget proposed no funding for new F 15 production. The F 
   15E is a multi-role fighter with both robust air-to-air and             
   air-to-ground capabilities, and was a key player in Operation Allied    
   Force because of its ability to carry a wide range of precision guided  
   munitions. The F 15E is the only Air Force all-weather deep interdiction
   aircraft capable of employing the entire range of available or          
   programmed precision guided munitions including laser guided bombs, AGM 
   130, JDAM, JSOW, JASSM, and WCMD. The procurement of these aircraft will
   not only significantly enhance warfighting capability, but also, in view
   of the Committee's recommendation regarding a production ``pause'' on   
   the F 22, it will preserve fighter modernization options pending        
   delivery of the Joint Strike Fighter.                                   
                                   f 16                                  

      The Air Force requested $252,610,000 for 10 F 16 aircraft. The       
   Committee recommends $350,610,000, a net increase of $98,000,000, for a 
   total of 15 F 16s. (This amount includes a $17,000,000 reduction for    
   excess engineering change orders and nonrecurring engineering funding.  
   The Committee notes that given the maturity of the F 16 program, there  
   should be few changes demanding such funding.)                          
      The Air Force budget this year included 10 F 16s in fiscal year 2000 
   and a total of 30 F 16s over the next 4 years, none of which were       
   programmed prior to submission of the fiscal years 2000 2005 defense    
   program. The Air Force has made this adjustment in light of the need to 
   bolster the Suppression of Enemy Air Defense (SEAD) mission area, as    
   well to address various inventory and unit shortfalls and modernization 
   needs by cascading active F 16s to the Air National Guard and Reserves. 
   The Committee agrees with the Air Force plan and notes that that        
   Operation Allied Force has further highlighted the urgent need for      
   additional SEAD assets, and the limitations of those early model F 16s  
   which remain fielded largely in Guard and Reserve units. Accordingly,   
   the Committee believes the Air Force F 16 procurement plan could be     
   accelerated through purchase of additional aircraft in fiscal year 2000 
   and has included an additional $115,000,000 over the budget request to  
   procure an additional 5 F 16 Block 50 aircraft. The Committee has also  
   provided an additional $24,000,000 in F 16 advance procurement to allow 
   follow-on buys to be accelerated into fiscal year 2001.                 
                                  c 130j                                 

      The Air force requested $30,618,000 for the C 130J program. The      
   Committee recommends $17,718,000, a reduction of $17,718,000            
   representing a transfer of Interim Contractor Support to the Operations 
   and Maintenance account as discussed elsewhere in this report.          
      The Committee is concerned with the current Air Force C 130J         
   acquisition plan. The Air Mobility Command (AMC) has clearly indicated  
   its requirement for 150 new production C 130J aircraft beyond those     
   already purchased. In fact, the Committee notes AMC has just issued     
   preliminary basing plans for the aircraft. Yet the Air Force budget does
   not include funding for these aircraft until fiscal year 2002, and under
   the preliminary AMC fielding plan these assets will not begin arriving  
   at active duty units until 2006. Moreover, an Air Force failure to      
   budget for any C 130Js for two years could cause significant disruption 
   to the existing production program. As stated throughout this report,   
   this is yet another example of a well documented CINC operational       
   requirement which is being deferred or not funded (a need which in this 
   case is further buttressed by production line concerns).                
      As discussed earlier in this report, to ameliorate this disruption   
   and to satisfy an even more urgent Marine Corps requirement, the        
   Committee has recommended eight KC 130J aircraft for the U.S. Marine    
   Corps. Given its own tactical airlift needs, the Committee directs the  
   Air Force to accelerate the start of its buy of C 130J aircraft into    
   next year's budget (fiscal year 2001) which, along with continued Marine
   Corps purchases, would minimize the inefficiencies in the current       
   production profile.                                                     
                                   e 8c                                  

      The Air Force requested $280,265,000 for one E 8C Joint STARS        
   aircraft. The Committee recommends $468,465,000 for two Joint STARS     
   aircraft (a net increase over the budget of $188,200,000). This amount  
   includes a decrease of $13,000,000 budgeted for shutdown, a decrease of 
   $23,000,000 based on refurbishment cost savings of the newly acquired   
   German Boeing 707, and a $25,800,000 decrease associated with transfer  
   of Interim Contractor Support funding to the Air Force Operations and   
   Maintenance account.                                                    
      The Committee recommendation also includes a $250,000,000 increase to
   procure the fifteenth Joint STARS aircraft. The Committee notes the     
   Joint Requirements Oversight Council (JROC) approved requirement for    
   Joint STARS is 19 aircraft. Though all 19 aircraft were budgeted several
   years ago, the quantity was reduced largely in anticipation of sales to 
   NATO. NATO has decided not to buy Joint STARS, leaving a shortfall of   
   five aircraft. Operation Allied Force has only highlighted the          
   importance of Joint STARS, whose performance has been lauded by the     
   operational community. However, it has also reinforced the importance   
   of, and need to adequately budget for, a sufficient quantity of these   
   and other ``low-density, high demand'' assets. The Joint STARS          
   operational base of aircraft and crews is among the most stressed in the
   U.S. military's force structure, and there are clearly not enough Joint 
   STARS programmed to support the current strategy of being able to       
   conduct two near-simultaneous major theater wars.                       
      Given these concerns, the Committee believes it is prudent to procure
   an additional aircraft in fiscal year 2000. The Committee further       
   strongly encourages the Air Force to fund the remaining four aircraft in
   its fiscal year 2001 2006 budget plan.                                  
                           C 135 Modifications                           

      The Air Force requested $347,088,000 for C 135 Modifications. The    
   Committee recommends $552,988,000, a net increase of $205,900,000. This 
   amount includes a $2,100,000 decrease for Pacer Crag in accordance with 
   House authorization action, and a $208,000,000 increase to procure eight
   additional KC 135E to R reengining conversions for the Air National     
   Guard.                                                                  
      Having a robust and capable aerial refueling capability is yet       
   another critical link in the overall ability of the American military to
   conduct global operations and meet its worldwide security commitments.  
   This has been demonstrated repeatedly in recent years, be it through    
   humanitarian relief deployments or military operations abroad. Like the 
   need for intelligence support, or adequate air- and sealift, the aerial 
   refueling mission area is critical national military asset. Operation   
   Allied Force stressed that capability, both in terms of the sheer number
   of aerial refueling platforms and aircrews needed to support that air   
   campaign, and the adjustments, workarounds and disruptions to other U.S.
   global military activities that resulted from the diversion of assets to
   EUCOM's area of operation.                                              
      At present, the bulk of the nation's aerial refueling capability     
   resides in the KC 135 tanker fleet, which was largely acquired during   
   the 1950's and 1960's. Despite its age, this fleet has been slowly      
   modernized over the last fifteen years, largely as a result of funds    
   added by the Congress for the KC 135E to R engine conversion program.   
   Each aircraft so upgraded has a 25 percent increase in fuel offload     
   capability, a 35 percent reduction in time-to-climb, and a 23 percent   
   decrease in take-off distance, and also meets all Stage III noise and   
   emission standards. Combined, these improvements greatly enhance        
   operational utility and flexibility, as well as access to a wider number
   and variety of airfields.                                               
      This re-engining program is a high priority for the Air Mobility     
   Command, and the Committee notes that there are still over 130 Air      
   National Guard tankers requiring this upgrade, many of which are over 40
   years old. Yet the current Air Force outyear budget plan defers         
   additional conversions until fiscal year 2002. Given the operational    
   need and considerable utility of a more modern, robust and available    
   aerial refueling capability, the Committee recommends $208,000,000 over 
   the budget request for an additional eight KC 135E to R conversions.    
                             15 Modifications                            

      The Air Force requested $263,490,000 for F 15 modifications. The     
   Committee recommends $321,818,000, a net increase of $58,328,000. This  
   amount includes a decrease of $22,000,000 for excess funds budgeted for 
   APG 63 radar nonrecurring costs, a decrease of $8,672,000 for excess    
   funds in various modification programs as identified by GAO, an increase
   of $21,000,000 for F 15C fighter datalinks for active combat coded      
   aircraft, an increase of $18,000,000 for fighter datalinks for the Air  
   National Guard, an increase of $25,000,000 for E-kit engine upgrades for
   Air National Guard aircraft, and an increase of $25,000,000 for E-kit   
   engine upgrades for active component Air Force aircraft.                
      At relatively modest cost and in relatively short time, such upgrades
   can provide considerably improved operational capabilities to the Air   
   Force's fighter inventory. For example, the fighter datalinks are       
   estimated to provide the F 15 with a 5-to-1 increase in kill ratio, and 
   are part of a capability which Air Force testimony to the Committee this
   year described as ``the most significant increase in fighter avionics   
   since the introduction of the on-board radar.'' The funds added by the  
   Committee over the budget request will outfit all remaining active and  
   guard combat coded F 15 air superiority aircraft with this vital        
   capability. The E-kit engine upgrades recommended by the Committee      
   likewise provide significant benefits including 86 percent increased    
   availability, 46 percent reduction in engine flight hour costs,         
   increased throttle response and overall thrust, and an estimated        
   improvement in aircraft safety rates.                                   
                            T 38 Modifications                           

      The Air Force requested $94,487,000 for T 38 modifications. The      
   Committee recommends $43,987,000, a decrease of $50,500,000. The Air    
   Force request includes funding for the T 38 Avionics Update Program.    
   When structuring this program, the Air Force wisely adopted a ``fly     
   before buy'' acquisition strategy with operational testing scheduled to 
   complete prior to procurement. However, initial flight tests revealed   
   both hardware and software deficiencies which will delay completion of  
   operational testing approximately one year. The Committee believes it is
   important to preserve the ``fly before buy'' acquisition strategy,      
   especially in light of the development problems recently experienced.   
   Therefore, the Committee recommends deferring the production program one
   year to accommodate the delayed testing by rescinding fiscal year 1999  
   production funds and reducing fiscal year 2000 funds by $50,000,000. In 
   addition, the Committee recommends a reduction to the T 38 propulsion   
   upgrade by $500,000. The Committee fully supports this program, but     
   believes production funding in fiscal year 2000 is premature.           

   Offset folios 180 to 182 insert here                                    


                               MISSILE PROCUREMENT, AIR FORCE                     


                                                                               

                                                      

     Fiscal year 1999 appropriation        $2,069,827,000  
     Fiscal year 2000 budget request        2,359,608,000  
     Committee recommendation               2,329,510,000  
     Change from budget request               -30,098,000  

      This appropriation provides for procurement, installation, and       
   checkout of strategic ballistic and other missiles, modification of     
   in-service missiles, and initial spares for missile systems. It also    
   provides for operational space systems, boosters, payloads, drones,     
   associated ground equipment, non-recurring maintenance of industrial    
   facilities, machine tool modernization, and special program support.    
                MINUTEMAN III GUIDANCE REPLACEMENT PROGRAM               

      For the past several years, the Air Force has reduced the budget for 
   the Minuteman III Guidance Replacement Program (GRP) as a billpayer for 
   other Service priorities. The Committee is concerned about how these    
   actions are impacting the projected reliability of the Minuteman III    
   weapon system. Accordingly, the Committee directs the Secretary of      
   Defense, in consultation with the Chairman of the Joint Chiefs of Staff,
   to provide a report separately detailing the inventory and the weapon   
   system reliability (required and projected) of each Minuteman III       
   variant (unmodified missiles, missiles modified with GRP only, and      
   missiles modified with GRP and Propulsion Replacement Program) by year  
   for fiscal year 1996 through fiscal year 2010. The Committee further    
   directs that this report be provided to the congressional defense       
   committees no later than September 1, 1999.                             
                                 COMMITTEE RECOMMENDATIONS                        

            AUTHORIZATION CHANGES                                                   

      The Committee recommends the following changes to the budget request 
   in accordance with House authorization action.                          

                                                                                        
                                [In thousands of dollars]                               

Item                       Budget  request    Committee recommendation    Change from request  

AGM 65 Maverick                      2,800                      12,800                +10,000  
Spaceborne equipment                 9,594                       4,594                 -5,000  


                                    PROJECT LEVEL CHANGES                                   
                                  [In thousands of dollars]                                 

                                            Budget request    Recommended    Change from requests  

AMRAAM                                              97,279        190,279                 +93,000  
MM III Modifications                               242,960        277,960                 +35,000  
Global Positioning (Space)                         139,049        103,349                 -35,700  
Global Positioning (Space) (AP CY)                  31,798              0                 -31,798  
NUDET Detection System                              11,375          1,575                  -9,800  
DEF Meteorological SAT Prog (Space)                 38,223         34,223                  -4,000  
Defense Support Programs (Space)                   111,609        106,609                  -5,000  
Evolved Expendable Launch Veh (Space)               70,812         66,812                  -4,000  
MILSTAR                                                  0        150,000                +150,000  

                                   JSOW                                  

      The Air Force request includes $79,981,000 for procurement of JSOW   
   precision guided munitions. The Committee recommends $60,981,000, a net 
   decrease of $19,000,000 which includes a decrease of $39,300,000 for BLU
   108 JSOW and an increase of $20,300,000 for baseline JSOW. The BLU 108  
   is designed to attack armored vehicles, however, Air Force testimony    
   provided to the Committee states that the technology which would allow  
   aircraft to target these vehicles is years away. Air Force testimony    
   further states that the technology required to transfer targeting data  
   from a third party such as JSTARS is also years away. Without realtime  
   targeting, the Air Force and Navy must rely on prior intelligence to    
   develop pre-planned JSOW missions. However, predicting the precise      
   location of vehicles 24 to 48 hours in advance (in order to incorporate 
   the missions into the theater's Air Tasking Order) is extremely         
   difficult.                                                              
      The Committee further notes that recently identified delays in the   
   improved BLU 108 submunition have further degraded the performance of   
   the JSOW anti-armor variant. Because of the development delays in the   
   improved BLU 108, the Air Force and Navy propose to procure the JSOW    
   anti-armor variant using the older, less capable BLU 108 submunition.   
   The Committee believes it is more prudent to defer procurement of the   
   anti-armor variant until the Air Force and Navy can resolve the         
   targeting issues and complete development on the improved BLU 108       
   submunition. In order to minimize disruption to the JSOW production     
   flow, the Committee recommends converting the proposed BLU 108 weapons  
   to baseline weapons resulting in a savings of $19,000,000.              
                                  TITAN                                  

      The Air Force budget for Titan assumes approval of a Special         
   Termination Cost Clause which waives the requirement to budget for      
   termination liability. The Committee notes that the Air Force has not   
   yet submitted an STCC notification letter to the Congress. Nevertheless,
   the Committee sees no reason to make an exception to the longstanding   
   requirement to budget for termination liability for this program. The   
   Committee directs the Air Force to fully fund the Titan contract        
   including all termination liability.                                    
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   OFFSET FOLIOS 186 INSERT HERE                                           


                            PROCUREMENT OF AMMUNITION, AIR FORCE                  


                                                                               

                                                    

     Fiscal year 1999 appropriation        $379,425,000  
     Fiscal year 2000 budget request        419,537,000  
     Committee recommendation               481,837,000  
     Change from budget request             +62,300,000  

      This appropriation finances the acquisition of ammunition,           
   modifications, spares, weapons, and other ammunition-related items for  
   the Air Force.                                                          
                                 COMMITTEE RECOMMENDATIONS                        


                                PROJECT LEVEL CHANGES                                
                              [In thousands of dollars]                              

                                    Budget request     Recommended     Change from request  

Practice Bombs                              24,325          24,325                  (6000)  
Sensor Fuzed Weapon                         61,334          73,634                 +12,300  
Joint Direct Attack Munition               125,605         175,605                 +50,000  

                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   OFFSET FOLIOS 188 INSERT HERE                                           



                                OTHER PROCUREMENT, AIR FORCE                      


                                                                               

                                                      

     Fiscal year 1999 appropriation        $6,960,483,000  
     Fiscal year 2000 budget request        7,085,177,000  
     Committee recommendation               6,964,227,000  
     Change from budget request              -120,950,000  

      This appropriation provides for the procurement of weapon systems and
   equipment other than aircraft and missiles. Included are vehicles,      
   electronic and telecommunications systems for command and control of    
   operation forces, and ground support equipment for weapon systems and   
   supporting structure.                                                   
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes to the budget request 
   in accordance with House authorization action.                          

                                                                                                       
                                       [In thousands of dollars]                                       

Item                                      Budget request     Committee recommendation    Change from request  

Mechanized Material Handling Equip                15,320                       25,320                +10,000  


                                     PROJECT LEVEL CHANGES                                    
                                   [In thousands of dollars]                                  

                                           Budget request     Recommendation    Change from request  

60K A/C Loader                                     81,163             69,863                -11,300  
Intelligence Comm Equip                             5,495             28,395                +22,900  
Air Traffic Ctrl/Land Sys (Atcals)                    887              5,887                 +5,000  
National Airspace System                           54,394             45,394                 -9,000  
Theater Air Control Sys Improvement                37,917             23,417                -14,500  
Automatic Data Processing Equip                    71,173             84,173                +13,000  
Theater Battle MGT C2 Sys                          47,648             44,548                 -3,100  
Base Information Infrastructure                   122,839            197,839                +75,000  
Defense Message System (DMS)                       14,025              4,125                 -9,900  
NAVSTAR GPS Space                                  14,614             13,314                 -1,300  
AF Satellite Control Network Space                 33,591             17,591                -16,000  
Eastern/Western Range I&M Space                    83,410            107,910                +24,500  
MILSATCOM Space                                    46,257             37,757                 -8,500  
Radio Equipment                                    16,685             20,435                 +3,750  
Comm Elect Mods                                    56,195             53,995                 -2,200  
Base/ALC Calibration Package                       10,157              7,557                 -2,600  
Night Vision Goggles                                2,800              4,800                 +2,000  
Items Less Than $5.0M                               3,559              6,559                 +3,000  
Base Procured Equipment                            14,035             25,035                +11,000  
Items Less than $5.0M                              22,500             21,500                 -1,000  
Intelligence Production Activity                   40,047             16,247                -23,800  
Tech Surv Countermeasures EQ                        2,976              3,976                 +1,000  

                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   OFFSET FOLIOS 191 TO 193 INSERT HERE                                    



                                 PROCUREMENT, DEFENSE-WIDE                        


                                                                               

                                                     

     Fiscal year 1999 appropriation       $1,944,833,000  
     Fiscal year 2000 budget request       2,128,967,000  
     Committee recommendation              2,286,368,000  
     Change from budget request             +157,401,000  

      This appropriation funds the Procurement, Defense-Wide activities of 
   the Department of Defense.                                              
                                 COMMITTEE RECOMMENDATIONS                        


                                    PROJECT LEVEL CHANGES                                   
                                  [In thousands of dollars]                                 

                                            Budget request     Recommended    Change from request  

Major Equipment, OSD                                88,976         166,976                +78,000  
Major Equipment, DLA                                                                               
Defense Support Activities                          47,455          56,455                 +9,000  
Automatic Document Conversion System                     0          12,500                +12,500  
Special Operations Command                                                                         
SOF Rotary Wing Upgrades                            41,233          83,233                +42,000  
Advanced Seal Delivery Sys                          21,213           7,400                -13,813  
SOF Intelligence Systems                            19,154          21,154                 +2,000  
SOF Small Arms and Weapons                          23,355          30,355                 +7,000  
Chemical/Biological Defense:                       124,612         125,612                 +1,000  
M42 protective mask reclamation                                                            +1,000  
Human Resources Enterprise Strategy                      0           7,500                  7,500  

                   ELECTRONIC COMMERCE RESOURCE CENTERS                  

      The Committee has long supported the Electronic Commerce Resource    
   Center (ECRC) program as a means to streamline acquisition procedures   
   and reduce acquisition costs, and has provided a total of $39,491,000 to
   continue this program for FY 2000. The ECRC program continues to provide
   valuable service to small- and medium-sized businesses to move to       
   paperless electronic contracting when conducting business affairs with  
   the Department of Defense. The Committee believes it is important to    
   ensure that small- and medium-sized businesses are not placed at further
   competitive disadvantages as the Department rapidly moves to more       
   sophisticated methods of electronic commerce as part of its acquisition 
   reform strategy.                                                        
      The Committee is disappointed that the Department has requested      
   significantly less funding for this program in FY 2000 than was         
   requested in FY 1999 with no apparent justification for this decrease   
   provided in the budget submission. In addition, the Committee is        
   disturbed to learn that ECRC program funds appropriated for FY 1999 have
   not been released and in fact have been used for other purposes or for  
   activities of lower value, including reimbursement of administrative    
   support contractors. The Committee has recommended bill language to     
   ensure that ECRC funds are used as intended by the Congress. The        
   Committee is also aware that the Undersecretary of Defense (Acquisition)
   finally has chartered a panel to review this program pursuant to the    
   direction of this Committee two years ago. The Committee intends that   
   this review be a constructive effort to retool and expand the ECRC      
   program to become a more integral part of the Department's broader      
   paperless contracting strategy. This should include a strategy to spin  
   off those centers that become self-sustaining, consolidate overlapping  
   centers, create new centers, and develop program performance measures.  
                     INFORMATION TECHNOLOGY PROGRAMS                     

      Information on the Automated Document Conversion and Human Resources 
   Enterprise Strategy programs can be found in the Information Technology 
   section of this report.                                                 
                           CLASSIFIED PROGRAMS                           

      Additional recommendations by the Committee are described in the     
   classified annex accompanying this report.                              
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 196 to 197 Insert here                                    


                            NATIONAL GUARD AND RESERVE EQUIPMENT                  


                                                                               

                                                    

     Fiscal year 1999 appropriation        $352,000,000  
     Fiscal year 2000 budget request                  0  
     Committee recommendation               130,000,000  
     Change from budget request            +130,000,000  

      This appropriation provides funds for the procurement of tactical    
   aircraft and other equipment for the National Guard and Reserve.        

                                 COMMITTEE RECOMMENDATIONS                        

      In all accounts throughout the bill, the Committee recommends a total
   of $2,485,300,000 for procurement of National Guard and Reserve         
   equipment, a net increase of $796,400,000 above the budget request.     
      The Committee believes that the Chiefs of the Reserve and National   
   Guard components should exercise control of modernization funds provided
   in Procurement, National Guard and Reserve Equipment account, and       
   directs that they provide a separate submission of a detailed assessment
   of their modernization requirements and priorities to the congressional 
   defense committees. The Committee expects the component commanders to   
   give priority consideration for funding in this appropriation of the    
   following items: CH 47 helicopters, AN/PEQ 2A TPIALs and AN/PAQ 4C      
   infrared aiming lights, master crane aircraft component hoisting        
   systems, aluminum mesh gas tank liners for C 130 aircraft and Army      
   ground vehicles, A/B FIST 21 training systems, CH 60S combat search and 
   rescue kits, super scooper aircraft, modular airborne fire fighting     
   systems, F 16 ALR 56M radar warning receivers, deployable rapid assembly
   shelters, C 40A aircraft, C 22 replacement aircraft, secure             
   communications and data systems, CH 60 helicopters, M270A1 long-range   
   surveillance launchers, M106A Paladin self-propelled howitzer/M1992A2   
   FAASV ammunition carrier, AN/AVR 2A(V) laser detecting sets, ALQ 184(V)9
   electronic countermeasure pods, extended cold weather clothing systems, 
   HEMTT trucks, multi-role bridge companies, medium tactical wreckers,    
   rough terrain container cranes, CH 47 cargo compartment expanded range  
   fuel systems, C 38A aircraft, C 17 communications suite upgrades, mobile
   radar approach control, internal crashworthy fuel cells, DFIRST, F/A 18 
   series mods, UH 60 Q kits, MLRS launchers, meterological measuring      
   systems, improved target simulators, and C 17 maintenance training      
   systems.                                                                
                              Fire-Fighting                              

      The Committee is aware that National Guard Units in California and   
   Florida are providing valuable assistance to federal, state, and local  
   firefighters whose states have been ravaged by an unusually large number
   of wildfires. The Committee is also aware that the current inventory of 
   aircraft available to assist in these efforts is inadequate and that    
   there are a number of platforms and systems available for lease or      
   purchase which could improve the National Guard's fire-fighting         
   capabilities dramatically. The Committee has included a general         
   provision (Section 8112) providing $20,000,000 to the Army National     
   Guard to begin to improve fire-fighting capabilities and directs the    
   National Guard Bureau to provide a report to the Committee examining the
   various options available for this mission prior to the expenditure of  
   any of these funds.                                                     
                      Support to non-profit Agencies                     

      The Committee is aware that National Guard units throughout the      
   United States provide assistance to non-profit organizations including  
   the transportation and lending of equipment as goodwill in their        
   community relations programs. One such example is the cooperative       
   relationship between the Alabama Sports Festival and the Alabama Army   
   National Guard. The Committee is concerned that the Department of       
   Defense is interfering with these relationships by impeding the ability 
   of National Guard units to assist local non-profit organizations and    
   directs the Secretary of Defense to review current policy to determine  
   if it has become overly restrictive.                                    
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 200 to Insert here                                        



                              DEFENSE PRODUCTION ACT PURCHASES                    


                                                                               

                                                   

     Fiscal year 1999 appropriation                  0  
     Fiscal year 2000 budget request                 0  
     Committee recommendation               $5,000,000  
     Change from request                    +5,000,000  

      The Committee recommends $5,000,000 only for microwave power tubes.  
   The Annual Industrial Capabilities Report to Congress, submitted by the 
   Secretary of Defense in February 1999, stated that the most pressing    
   concern for the microwave power tube industry was the difficulty in     
   obtaining reliable suppliers of various critical materials and          
   components. Microwave power tubes generate and amplify microwave energy 
   for applications in radar, electronic warfare, and telecommunications   
   systems. DOD currently uses over 270 different types of operating       
   systems employing over 180,000 microwave tubes. Microwave power tubes   
   will be used in these and similar applications for at least the next two
   to three decades since there are no foreseeable replacement             
   technologies. The additional funding will provide DOD assured access to 
   affordable microwave tubes by incentivizing the insertion of consistent,
   quality-driven improvements in the tube industry's supplier chain.      
                                   INFORMATION TECHNOLOGY                         

      The Department requested $16,216,119,000 for Information Technology. 
   The Committee recommends $16,517,219,000, an increase of $301,100,000 as
   explained below:                                                        

          [In thousands of dollars]                                               

    Operation and Maintenance, Army:                                        



                                         500



                                         -16,552



                                         6,500

    Operation and Maintenance, Navy:                                        



                                         4,000

    Operation and Maintenance, Air Force:                                   



                                         3,500

    Operation and Maintenance, Defense-Wide:                                



                                         -41,200



                                         8,000



                                         -2,000



                                         12,500



                                         7,500

    Operation and Maintenance, Army National Guard:                         



                                         2,500



                                         15,000

    Other Procurement, Army:                                                



                                         16,552



                                         5,000



                                         -18,100



                                         15,000



                                         15,000



                                         8,000

    Other Procurement, Navy:                                                



                                         12,000



                                         5,000

    Procurement, Marine Corps:                                              



                                         32,900



                                         57,300

    Other Procurement, Air Force:                                           



                                         10,000



                                         45,000



                                         10,000

    Procurement, Defense-Wide:                                              



                                         12,500



                                         7,500

    Research, Development, Test and Evaluation, Army:                       



                                         2,000

    Research, Development, Test and Evaluation, Navy:                       

                                                                         



                                         10,000

    Research, Development, Test and Evaluation, Air Force:                  

                                                                         



                                         9,000

    Research, Development, Test and Evaluation, Defense-Wide:               

                                                                         



                                         5,000



                                         41,200


                     Year 2000 (Y2K) Computer Problem                    

      In the Department of Defense Appropriations Act, 1999, the Congress  
   directed the Department to undertake an extensive program of system     
   tests, functional end-to-end tests and warfighting operational          
   evaluations to ensure the Department's readiness to deal with the Year  
   2000 computer problem. In the subsequent Omnibus Consolidated and       
   Emergency Supplemental Appropriations Act, 1999, the Congress provided  
   $1,100,000,000 in emergency appropriations to support the testing and   
   remediation efforts.                                                    
      Although it was initially difficult to get the Department to focus on
   the Year 2000 computer problem, the Committee is pleased with the       
   progress the Department has made since last Fall. The direct            
   intervention of the Deputy Secretary of Defense proved critical to      
   focusing the attention of the services, regional commanders and         
   functional managers on this important issue and ensuring the sustained  
   level of effort needed to address this problem. The numerous audit      
   reports prepared by the Department of Defense Inspector General were    
   very effective in focusing the attention of individual commanders on    
   this problem and in keeping the reporting system honest. In addition,   
   the Committee appreciates the Department's openness and, in particular, 
   its willingness to include representatives from several congressional   
   committees in its oversight process.                                    
      This summer, the Department is entering the most critical phase of   
   the process, conducting tests to evaluate multiple computer systems     
   working together as part of ``end-to-end'' testing for different        
   functional capabilities. With little time remaining for the Department  
   to conduct hundreds of related end-to-end test events it is critical    
   that these events and their evaluations be well planned and well        
   managed. The Committee agrees with the recommendations of the recent    
   General Accounting Office report and encourages the Department to       
   establish a strong quality assurance program for its testing efforts.   
                     Year 2000 (Y2K) Lessons Learned                     

      There have been many positive outcomes to dealing with the Y2K       
   computer problem. The Department has developed a series of databases,   
   tests, and exercises that are readily applicable to information         
   assurance. The Department, for instance, has created a database listing 
   its information technology systems, examined the interfaces between     
   systems, outlined a ``thin line'' series of systems that have to work to
   complete particular warfighting missions, and has conducted operational 
   evaluations of how regional commanders would continue to fight even if  
   certain key systems failed.                                             
      One of the unfortunate lessons of the Y2K process, however, was the  
   inability of the Department's Chief Information Officer (CIO) to get the
   services and agencies to concentrate on this problem earlier. With the  
   exception of a few activities (the White Sands Missile Range in New     
   Mexico deserves particular mention for its early and aggressive Y2K     
   remediation effort), the Department did not become fully engaged until  
   the Secretary of Defense and the Deputy Secretary of Defense made it a  
   continued priority. The Committee is concerned that similar problems    
   will occur in addressing the Department's information assurance problem.
      The Committee believes that the problems the Department encountered  
   and the steps it has taken to deal with the Y2K problem are directly    
   related to addressing the problem of information assurance. For example,
   maintaining the database of information technology systems, with key    
   information about the system interfaces, is a prerequisite to any       
   information assurance effort. To this end, the Committee has included a 
   general provision (Section 8125) requiring all information technology   
   systems to register with the CIO by March 31, 2000 and to provide       
   additional information as the Secretary of Defense may require. The     
   Committee directs the Department to provide a report to the             
   congressional defense committees by March 15, 2000 on the lessons       
   learned from Y2K with particular emphasis on what additional programs   
   should be continued and what lessons can be applied to information      
   assurance.                                                              

               INADEQUATE INFORMATION TECHNOLOGY OVERSIGHT               

      The Committee is disappointed with the Department's current level of 
   oversight of its information technology systems. In the words of the    
   Department of Defense Inspector General (DoD IG), information technology
   projects ``have tended to overrun budgets, slip schedules, evade data   
   standardization and interoperability requirements, and shortchange user 
   needs''. The DoD IG rates this as one of the Department's top ten most  
   serious management problems. Likewise, the General Accounting Office has
   consistently designated the Department's information technology project 
   management as a high risk area.                                         
      Despite these concerns, the senior group responsible for reviewing   
   and approving information technology investments (called the IT OIPT)   
   has not even met in over a year. Those systems that are reviewed are    
   often approved despite lacking key documentation. For example, at least 
   seven programs totaling $780,000,000 are moving forward despite lacking 
   an Acquisition Program Baseline, a critical tool for program management.
   Others have gone forward without being able to demonstrate the costs and
   benefits of the investment. In hearings, when the Committee has         
   requested lists of systems terminated or significantly restructured as  
   part of the Department's oversight process, the answers have            
   consistently indicated that this rarely if ever happens. In fact, an    
   investigation of the systems terminated by the Office of the Secretary  
   of Defense reveals that the majority of them were canceled because their
   sponsoring organization was abolished, not because of any problems with 
   the system.                                                             
                     DEFENSE JOINT ACCOUNTING SYSTEM                     

      A recent example of these problems is the Defense Joint Accounting   
   System (DJAS), currently under development. Despite the importance of   
   developing joint systems, the Department has allowed the Air Force and  
   the Navy to opt out of this program and to develop and modernize their  
   own distinct systems. Thus, this `joint' system will be fielded only to 
   the Army and a few defense-wide activities. After its initial Milestone 
   O approval, the timeline for completing the DJAS software development   
   effort expanded from 16 months to six or more years, the benefits       
   declined from $322,000,000 to $204,000,000 and are now characterized as 
   ``productivity savings'', whereas before they were real cost savings. In
   November, the DoD IG issued a draft report warning that DJAS had not    
   completed the steps required under the program management process to be 
   prepared for a Milestone I review. In March, the Office of Program      
   Analysis and Evaluation issued similar warnings about the dramatic      
   change in the programs scope, cost and duration. Despite these serious  
   concerns, the Department not only issued Milestone I approval, but also 
   Milestone II approval at the same time, all without having a meeting of 
   the IT OIPT to review the system. The Committee rejects this approval as
   inconsistent with the intent of the Information Technology oversight    
   process and the Clinger-Cohen Act. Further, the Committee directs that  
   the DoD IG update and complete their audit of DJAS with particular      
   emphasis on determining if DJAS meets the standards for Milestone I or  
   Milestone II approval and the requirements of the Clinger-Cohen Act. In 
   addition, following the Inspector General's report, the Committee       
   directs the Department to conduct a proper Milestone I review of this   
   system and to provide a report to the congressional defense committees  
   consistent with the requirements of general provision Section 8125 of   
   this bill.                                                              
                INFORMATION TECHNOLOGY OVERSIGHT--COMMITTEE RECOMMENDATIONS       

      The basic policies and procedures necessary for sound oversight and  
   program management are clearly outlined in the Clinger-Cohen Act of     
   1996. The Committee believes that a strong Chief Information Officer,   
   with visibility over the programs and a commitment to implementing the  
   Clinger-Cohen Act, is the best approach to correcting the Department's  
   problem. The Committee therefore supports the Department's request for a
   $14,710,000 increase in the ASD(C3I)/CIO operation and maintenance      
   budget specifically for improving information technology oversight and  
   for compliance with the Clinger-Cohen Act and directs that no reductions
   be taken against this account.                                          
      Furthermore, the Committee has included a new general provision      
   (Section 8125) that prohibits any information technology system from    
   receiving Milestone I, Milestone II, or Milestone III approval until the
   Chief Information Officer certifies in writing to the congressional     
   defense committees that the system is in compliance with the provisions 
   of the Clinger-Cohen Act. The Committee provides this funding and this  
   additional authority in the expectation that they will be used to       
   instill discipline into the process. The Committee is prepared to make  
   an activity's or a program's compliance with the Clinger-Cohen Act a    
   condition of future funding.                                            
      In addition, the Committee directs the Department to take the        
   following steps and except where otherwise noted, to provide a report on
   its progress to the congressional defense committees by March 1, 2000.  

      1. Ensure that program managers for all major information technology 
   investments are adequately trained and provide to the congressional     
   defense committees a status report on the number of program managers who
   meet the training requirements and the plans to train those who do not  
   meet the requirements.                                                  
      2. Establish separate program elements for each major information    
   technology system.                                                      
      3. Review how information technology infrastructure is acquired and  
   consolidate infrastructure resources into infrastructure specific       
   accounts, if appropriate.                                               
      4. Establish procedures to ensure infrastructure efforts, such as the
   Metropolitan Area Networks, are consistent with Department policy and   
   architecture.                                                           
      5. Establish clear guidance for how economic analyses should be done 
   and ensure that they are implemented uniformly.                         
      6. Periodically, conduct post-implementation reviews to determine if 
   programs are achieving the anticipated benefits.                        
      7. Resolve the discrepancies between how the Acquisition Program     
   Baselines, the Economic Analysis, and the IT 42s report costs and       
   benefits to ensure consistency in reporting and analysis.               
      8. Include in the 300b reports the original baseline costs and       
   benefits, any revised baseline costs and benefit projections as well as 
   the actual costs and benefits achieved.                                 
      9. Examine the Milestone review process for information technology to
   determine if changes are needed to reflect the front loaded costs of    
   software development.                                                   
      10. Complete a coordinated, final 1999 DOD Information Technology    
   strategic plan and the incorporated CIO Action Plan and provide to the  
   congressional defense committees no late than September 1, 1999. In     
   addition, the Department should provide a detailed report on the        
   progress made thus far toward achieving the established priorities as   
   outlined in the Action Plan.                                            
                     Financial Management Regulations                    

      In last year's report this Committee highlighted its concern that the
   Department's use of operation and maintenance funds to develop and      
   modernize its information technology systems was inconsistent with the  
   Financial Management Regulations and directed the Department to correct 
   this in its fiscal year 2000 budget submission. The Department failed to
   do so. The Committee is concerned the continuation of this practice     
   undermines the most basic distinction between appropriations and puts   
   the Department in jeopardy of committing anti-deficiency violations.    
   Consistent with last year's report the Committee directs the Department 
   to submit prior approval reprogrammings as necessary to bring its       
   programs into compliance. The Committee, however, remains prepared to   
   work with the Department to realign funding between appropriation       
   accounts prior to the completion of the fiscal year 2000 defense        
   appropriations bill in order to bring the Department into compliance    
   with the least disruption.                                              
                       Standard Procurement System                       

      The Committee is concerned about the ability of the Standard         
   Procurement System to meet the requirements of its users. The Committee 
   recommends that the Chief Information Officer delay the fielding of the 
   infrastructure for this system, until it confirms that the software     
   release version 5.0 satisfies the users requirements and until there is 
   resolution on the appropriateness of the Defense Logistic Agency's      
   contracting strategy.                                                   

                     ARMOR OFFICER DISTANCE LEARNING                     

      The Committee recommends $500,000 only to continue developing        
   distance learning technologies for the Armor officer's courses at Fort  
   Knox.                                                                   
                    POWER PROJECTION C4 INFRASTRUCTURE                   

      The Committee recommends transfering $16,552,000 from the Operation  
   and Maintenance, Army account to the Other Procurements, Army account   
   (Local Area Network) to ensure that this program is funded in accordance
   with fiscal law and the Department's Financial Management Regulations   
   for investments.                                                        
                           SUPERCOMPUTING WORK                           

      The Committee recommends an increase of $6,500,000 only for the      
   Army's High Performance Computing Research efforts to enable the Army to
   continue its supercomputing work.                                       
               ELECTRICITY AND ELECTRONICS TRAINING SERIES               

      The Committee recommends $4,000,000 only for the Center for Navy     
   Education and Training (CNET), for the conversion of Navy training      
   manuals into an enhanced interactive electronic format suitable for     
   distance learning.                                                      
                                imds/remis                               

      The Committee recommends $12,500,000 only for the Integrated         
   Maintenance Data Systems (IMDS) and the Reliability and Maintainability 
   Information System (REMIS). Of this amount, $9,000,000 is provided in   
   Research, Development, Test and Evaluation, Air Force for accelerated   
   development and fielding in addition to improved training for IMDS. The 
   remaining $3,500,000 is provided in Operations and Maintenance, Air     
   Force to ensure continued support for the legacy REMIS system while the 
   necessary changes are being made to transition it to the IMDS system.   

                                  DIMHRS                                 

      The Committee supports section 8147 of the 1999 Department of Defense
   Appropriations Act which directed the Department to establish a Defense 
   Reform Initiative (DRI) enterprise program for military manpower,       
   personnel, training and compensation programs using a revised Defense   
   Integrated Military Human Resources System (DIMHRS) as a baseline. The  
   Committee supports the President's request of $65,100,000 for the DIMHRS
   program. In coordination with the Department and the Program Manager's  
   office, $41,200,000 has been realigned from Operation and Maintenance,  
   Defense-wide to Research, Development, Test and Evaluation, Defense-wide
   to be consistent with the Financial Management Regulations (FMR) and to 
   provide more flexibility in managing the program. The Committee directs 
   that this funding be used only to develop a system that is consistent   
   with the Human Resources Enterprise Strategy. The Committee recommends  
   $7,500,000 in Operation and Maintenance, Defense-wide and $7,500,000 in 
   Procurement, Defense-wide only to support the development of the Human  
   Resources Enterprise Strategy and to continue program support and       
   infrastructure improvements at the Systems Executive Officer for        
   Manpower and Personnel (SEO/MP) and the Navy/DoD Information Technology 
   Center. The Committee directs the Department to provide these funds only
   for and under the management and control of the Secretary of the Navy   
   and the SEO/MP. The Committee expects that these funds will be allocated
   quickly and that the Department will coordinate the modernization of    
   individual service systems to ensure they are consistent with the Human 
   Resources Enterprise Strategy.                                          
          NATIONAL GUARD BUREAU NATIONWIDE FIBER OPTICS NETWORK          

      The Committee recommends $2,500,000 for the National Guard Bureau    
   only for feasibility study and engineering design of NDFON to provide a 
   dedicated fiber optic network to satisfy high volume telecommunications 
   traffic generated by the National Guard's distance learning initiative. 
   The Committee expects this initiative to determine if a fiber optic     
   network can satisfy the National Guard's requirements and save the      
   government money while being consistent with the Department's           
   information architecture.                                               

                     NATIONAL GUARD DISTANCE LEARNING                    

      The Committee recommends $15,000,000 in Other Procurement, Army      
   (ADPE) and $15,000,000 in Operation and Maintenance, Army National Guard
   only for the continued fielding of the National Guard Distance Learning 
   Network Program.                                                        
             MAINTENANCE AUTOMATED IDENTIFICATION TECHNOLOGY             

      The Committee recommends an increase of $5,000,000 to Other          
   Procurement, Army (LogTech) only to allow the implementation of the     
   Maintenance Automated Identification Technology Initiative into the     
   Army's Blackhawk aviation units and at the Corpus Christi Army Depot.   
                    global combat support system--army                   

      The Committee recommends a reduction of $18,100,000 from Other       
   Procurement, Army (STAMIS) for the Global Combat Support System--Army.  
   This program was awarded a combined Milestone O/I/II without even a     
   cost--benefit analysis. The budget requests procurement funds to begin  
   fielding this system in fiscal year 2000 even though the first tier of  
   the program is not scheduled for a Milestone III review until fiscal    
   year 2001. The Committee is skeptical of this program's approval process
   and opposes providing any funds for fielding until after it has achieved
   Milestone III.                                                          
              AMMUNITION AUTOMATED IDENTIFICATION TECHNOLOGY             

      The Committee recommends providing $15,000,000 in Other Procurement, 
   Army (ADPE) to be used only for the completion of the ongoing           
   Radio-Frequency Tagging/Intransit Visibility program at the remaining   
   Army ammunition depots and related ammunition supply points and ports.  
               national guard distance learning--courseware              

      The Committee recommends an increase of $8,000,000 in Other          
   Procurement, Army (ADPE) for the Washington State Army National Guard   
   only to develop online distance learning courses. This program is       
   important to meet unfunded Army National Guard training requirements and
   to take full advantage of the Army National Guard Distance Learning     
   Network.                                                                
         JOINT SYSTEMS EDUCATION AND TRAINING SYSTEMS DEVELOPMENT        

      The Committee recommends $5,000,000 only for the Simulation Training 
   and Instrumentation Command and the Naval Air Warfare Center--Training  
   Systems Division for the development of an advanced distributed learning
   (ADL) prototype.                                                        
              SERVICE INFORMATION INFRASTRUCTURE SHORTFALLS              

      In response to significant shortfalls identified in the service      
   unfunded requirements list, the Committee recommends providing an       
   additional $135,200,000. Of this amount, $32,900,000 is to upgrade the  
   Marine Corps base telecommunications infrastructure. Another $57,300,000
   is to procure upgrades and replacement of information transfer          
   components located inside buildings on Marine Corps bases and stations  
   (to include Barstow, 29 Palms, Camp Pendleton, and Quantico). Finally   
   $45,000,000 is for upgrades to the Air Force Communications             
   Infrastructure.                                                         
                             SHARE IN SAVINGS                            

      The Committee is interested in the potential benefits of the         
   share-in-savings pilot program as authorized in the Clinger-Cohen Act   
   and encourages the Department to present its recommendations to the     
   congressional defense committees on how to expand the use of this       
   program.                                                                

                                          TITLE IV                                

                         RESEARCH, DEVELOPMENT, TEST AND EVALUATION               

                            ESTIMATES AND APPROPRIATION SUMMARY                   

      The fiscal year 2000 Department of Defense research, development,    
   test and evaluation budget request totals $34,375,219,000. The          
   accompanying bill recommends $37,169,446,000. The total amount          
   recommended is an increase of $2,794,227,000 above the fiscal year 2000 
   budget estimate and is $412,796,000 above the total provided in fiscal  
   year 1999. The table below summarizes the budget estimates and the      
   Committee's recommendations.                                            

   Offset Folio 210 Insert Here                                            



                          Special Interest Items                         

      Items for which additional funds have been provided as shown in the  
   project level tables or in paragraphs using the phrases ``only for'' or 
   ``only to'' in this report are Congressional interest items for the     
   purpose of the Base for Reprogramming (DD Form 1414). Each of these     
   items must be carried on the DD Form 1414 at the stated amount, or a    
   revised amount if changed during conference or if otherwise specifically
   addressed in the conference report. These items remain special interest 
   whether or not they are repeated in a subsequent conference report.     
                           Classified Programs                           

      Adjustments to classified programs are addressed in a classified     
   annex accompanying this report.                                         
                              Technical Data                             

      The Rand Corporation has been funded by many federal agencies to     
   create a common data base for government and private-sector research, in
   order to prevent duplication of effort by individual researchers funded 
   under federal contracts. The Committee directs the Defense Department to
   continue its support for and participation in the Rand RADIUS data base.
   In addition, the Department shall ensure that access to defense         
   technical data is provided to Members of Congress and their staffs on   
   the same level as Defense Department employees. The Committee directs   
   the Deputy Secretary of the Department of Defense to report to the      
   congressional defense committees by September 1, 1999 on how these      
   objectives will be met.                                                 
                             Experimentation                             

      The Committee directs that with each annual budget submission to     
   Congress, the Defense Department provide a report to the congressional  
   defense committees which identifies all funds for experimentation by    
   appropriation, fiscal year, P 1 or R 1 line item, and effort. The report
   shall include Atlantic Command experimentation, other experimentation,  
   exercises with significant experimentation, wargaming, advanced concept 
   technology demonstrations, modelling and simulation, science and        
   technology exercises, CINC initiative funding, BMDO experiments, and    
   advanced technology demonstrations.                                     

     INFORMATION ASSURANCE AS PART OF INDEPENDENT OPERATIONAL TESTING    

      The Committee directs the Secretary of Defense to ensure that        
   information assurance testing is included in the Independent Operational
   Test and Evaluation (IOT&E) of all DOD information technologies and     
   national security systems. The Committee further directs the Secretary  
   of Defense to report to the congressional defense committees no later   
   than February 1, 2000 on the Department's plans to implement the        
   directed testing.                                                       
                     SPECIAL TERMINATION COST CLAUSE                     

      The Committee reaffirms the existing policy of providing the         
   congressional defense committees notification 30 days prior to          
   contractual implementation of a special termination cost clause. The    
   Committee further notes that the need to budget for termination         
   liability is a fundamental financial management principle and therefore 
   discourages, as a general principle, the use of special termination cost
   clauses for either procurement or research and development programs.    
                      JOINT MISSION PLANNING SYSTEM                      

      The Committee is concerned that several DOD programs are continuing  
   to develop separate, ``stove-piped'' mission planning systems rather    
   than taking full advantage of the joint mission planning system         
   architecture currently under development by the Air Force and Navy. The 
   Committee notes that efforts are underway to develop new or upgraded    
   planning systems for Tomahawk, CALCM, and Air Mobility Command's        
   Advanced Computer Flight Plan System. The Committee directs the         
   Secretary of Defense to review these programs and make recommendations  
   on the merits, cost, and timetable of migrating these systems to the    
   joint mission planning system architecture. The Committee directs that  
   this report be provided to the congressional defense committees no later
   than February 1, 2000.                                                  
                      UTILIZATION OF SMALL BUSINESS                      

      The Committee recognizes that the Department of Defense has made     
   great strides at developing programs that foster small business         
   involvement in the material development and acquisition process. There  
   are a number of programs that provide opportunities for small businesses
   to develop new technologies, and a number of management organizations   
   and mechanisms already in place in an effort to facilitate such         
   opportunities. The Committee also recognizes that the military          
   department scientific and technology communities also play an active    
   role in encouraging small business participation in development of      
   advanced technologies for military applications. The Committee          
   encourages such activities and urges that they be strengthened.         
      During the last decade, corporate mergers, acquisitions, and         
   downsizing have considerably reduced the number of competitors in       
   defense industry generally. While this may be desirable to the Defense  
   Department to reduce infrastructure costs and to minimize the           
   unnecessary duplication of capabilities, it may have the effect of      
   making it much more difficult for small businesses to gain access to    
   compete with large industrial organizations than just five years ago.   
   Further, the fiscal pressure on the Defense budget and major contractors
   during the last few years have driven down both government funded and   
   corporate R&D investments in new technologies and processes. Technology 
   development itself, particularly in the areas of advanced communications
   and information technologies, is evolving at such a rapid pace that it  
   is incompatible with DoD weapon system acquisition timelines. These     
   factors argue for an increased emphasis on technology development and   
   insertion by small businesses, which are more affordable and more able  
   to take risk and to innovate.                                           
      The Committee notes that the current Department of Defense system    
   relating to small businesses does well on the front-end of the process: 
   providing R&D funds to small businesses for development of new concepts,
   approaches, and technologies. However, the Committee believes that the  
   present system could do better in terms of integrating small businesses 
   into mainstream weapons acquisition programs. The present system is     
   geared to providing incentives to DoD weapon system managers to use     
   small businesses, who however are under no real pressure to utilize or  
   foster small businesses in their programs for the long term. The        
   Committee recognizes that there are some unique defense areas--such as  
   nuclear reactor technology--that do not readily lend themselves to small
   business approaches. On the other hand, the Committee believes that     
   program managers for major weapons system should be more prone to use   
   and grow small business participation in their programs that may span 20
   and 30 year timeframes. The Committee is also concerned that the present
   DoD system for small business innovative research is viewed as a ``tax''
   by weapon system program managers. Once taxed, they may no longer feel  
   compelled to foster small business involvement within their programs as 
   the funds they would use to do this have been taken from them and given 
   to another organization to manage.                                      
      An area that may be ripe for increased small business participation  
   is DOD upgrades or modifications to major platforms which tend to be    
   done with incumbent contractors who have little real incentive to       
   innovate and little competitive pressure once awarded a contract. The   
   budget situation generally has caused DoD to forgo new system           
   development and to rely more on modifications, upgrades, and conversions
   of existing systems. A main feature of such upgrades is the insertion of
   new technologies, particularly those involving computing and            
   communications.                                                         
      The Department of Defense reported to Congress in February 1999 on   
   its plan on processes that would facilitate the rapid transition of     
   successful SBIR projects to Phase III incorporation into DoD acquisition
   programs. While the Committee supports these initiatives and believes   
   that they may bring together initial SBIR research and development with 
   acquisition program needs, the Committee also strongly believes that    
   unless program managers budget for phase III SBIR participation in their
   acquisition programs that the increased utilization of small businesses 
   will not occur. The Committee also believes that program managers for   
   weapon system upgrades should expressly be charged with the             
   responsibility for generating small business participation in their     
   modification/upgrade programs, including budgeting for SBIR phase III   
   activities.                                                             
      The Committee directs the Under Secretary of Defense for Acquisition 
   and Technology to provide a report to the congressional defense         
   committees by February 1, 2000 which: (1) describes the current system  
   for small business participation, technology development, and technology
   insertion into defense weapon system acquisition programs; (2) describes
   improvements that are underway to improve the SBIR process; (3) provides
   options, including legislative initiatives, to increase SBIR            
   participation in DoD weapon system programs and contracts; and (4)      
   provides options and incentives for weapon system program mangers to    
   themselves foster development of small business technologies and        
   integration of small business products into long term weapon system     
   acquisition or modernization programs.                                  
                      ANTI-ARMOR WEAPONS MASTER PLAN                     

      In the fiscal year 1999 Statement of the Managers, the DoD was       
   directed to provide Anti-Armor Weapons Master Plan with the fiscal year 
   2000 budget. To date, the Congress has not received the plan. The       
   Committee understands that the Master Plan is complete, but             
   disagreements on the recommendations and analysis between the Services  
   and the Office of Secretary of Defense prevent the plan from being      
   delivered to the Congress. The Committee directs the Secretary of       
   Defense to deliver the Anti-Armor Weapons Master Plan immediately.      
   Absent the Anti-Armor Weapons Master Plan, the Committee has recommended
   the following program reductions and terminations: The Army's Javelin   
   missile system, the Army's Line-of-Sight Anti-tank missile system, and  
   the joint Navy and Air Force Joint Stand-off Weapon Anti-Armor missile  
   variant.                                                                
                             TACTICAL RADIOS                             

      The Committee directs that no more than 25 percent of the funds      
   appropriated for the research and development of any tactical radio     
   program may be obligated until the Assistant Secretary of Defense for   
   Command, Control, Communications, and Intelligence certifies in writing 
   to the congressional defense committees that the development program    
   meets interoperability requirements, is not duplicative of other        
   developmental efforts, and is fully funded in the budget.               
                      RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY            


                                                                               

                                                       

     Fiscal year 1999 appropriation         $5,031,788,000  
     Fiscal year 2000 budget request         4,426,194,000  
     Committee recommendation                5,148,093,000  
     Change from budget request               +721,899,000  

      This appropriation finances the research, development, test and      
   evaluation activities for the Department of the Army.                   
                                  COMMITTEE RECOMMENDATION                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                                          
                                         [In thousands of dollars]                                        

Item                                        Budget request     Committee recommendation     Change from request  

Human Factors Engineering Technology                16,932                       19,792                  +3,400  
MLRS Product Improvement Program                    36,540                       67,440                 +30,900  
Maneuver Control System                             45,125                       46,125                  +1,000  
Information Systems Security Program                 9,426                       15,426                  +6,000  



                                                                                                                                                                                                                                                                                   PROJECT LEVEL CHANGES                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                 [In thousands of dollars]                                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Budget request    Recommended    Change from request  

Sensors and Electronic Survivability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               22,978         25,978                 +3,000  
Missile Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 32,892         43,892                +11,000  
 (Note: Only to accelerate the development of a low cost guidance unit for precision guided weapons and munitions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Combat Vehicle and Automotive Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           39,749         42,249                 +2,500  
Weapons and Munitions Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   34,687         37,187                 +2,500  
Electronics and Electronic Devices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 25,796         37,596                +11,800  
Countermine Systems                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                10,321         14,121                 +3,800  
Military Engineering Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    41,085         61,085                +20,000  
 (Note: For the continuation of the dual-use geographic synthetic aperture radar (GeoSAR) program. The development and implementation of this airborne dual and interferometic SAR technology will not only provide the Army with highly detailed, comprehensive data and significantly contribute to target identification, trafficability analysis, and battlefield awareness capabilities, but will serve to clearly demonstrate the productivity and cost benefits which accrue through the Defense Department's dual-use policy).                                                    +5,000  
Warfighter Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              23,971         26,971                 +3,000  
Dual Use Applications Program                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      18,222         10,000                 -8,222  
Medical Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 70,136        169,636                +99,500  
 [Note: $6,000,000 is only to continue the Army Molecular Genetics and Musculoskeletal Research program.]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                +15,000  
Warfighter Advanced Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     31,287         42,773                +11,486  
Medical Advanced Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        10,539         69,339                +58,800  
Weapons and Munitions Advanced Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          39,893         67,643                +27,750  
 (Note: This Center of Excellence will focus on the development and demonstration of the next generation of warheads and explosives, and would provide the Army with the smart munitions and enhanced ballistics necessary to maintain our military's lethality overmatch)                                                                                                                                                                                                                                                                                          1,800                 +1,800  
 (Note: Only for concurrent development of light cannon armament systems for use with future vehicles)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Combat vehicle and Automotive Advanced Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  90,941        137,441                +46,500  
 (Note: Only to further the Army's development and deployment of the advanced combat vehicle building of the programs initiated in this area by DARPA)                                                                                                                                                                                                                                                                                                                                                                                                                                   +13,500  
 (Note: Only for a technology transfer center to identify and transfer weight reduction technologies and processes for ground vehicles)                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Missile and Rocket Advanced Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             43,639         51,639                 +8,000  
Night Vision Advanced Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   36,628         45,628                 +9,000  
 (Note: The UAV could be employed as an adjunct to ground reconnaissance units. The funds are to be applied by the U.S. Army Armor Center, Ft. Knox, for concept exploration, initial hardware development and evaluation.)                                                                                                                                                                                                                                                                                                                                                               +5,000  
Advanced Tactical Computer Science and Sensor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      22,610         27,610                 +5,000  
Army Missile Defense Systems Integration (DEM/V)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   12,353         24,853                +12,500  
 (Note: Only for multi-mission battlefield sensors program including spectral analysis, isotope identification, and real time forensic analysis in support of WMD detection and counter-terrorism.)                                                                                                                                                                                                                                                                                                                                                                                       +3,000  
Landmine Warfare and Barrier--Adv Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               4,099         12,099                 +8,000  
Armament Enhancement Initiative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    36,937         56,937                +20,000  
Tactical Electronic Surveillance System--Adv Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        0          2,500                 +2,500  
Weapons and Munitions--Adv Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      1,751          4,751                 +3,000  
 (Note: Funds are to improve the SMAW D by leveraging SMAW CS technology to give the system a fire from confined space capability)                                                                                                                                                                                                                                                                                                                                                                                                                                                                
All Source Analysis System                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         49,684         57,684                 +8,000  
 (Note: The successful development of this lightweight laptop computer will complete the intelligence fusion architecture and provide a ``seamless intelligence flow'' to all echelons)                                                                                                                                                                                                                                                                                                                                                                                                           
Logistics and Engineer Equipment--Adv Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           6,514          9,514                 +3,000  
Family of Heavy Tactical Vehicles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       0          1,400                 +1,400  
Air Traffic Control                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 1,981          5,981                 +4,000  
Tactical Unmanned Ground Vehicle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        0          7,000                 +7,000  
 (Note: To continue research on joint mine-clearing flail technology under the direction of the Unmanned Ground Vehicles/Systems Joint Program Office)                                                                                                                                                                                                                                                                                                                                                                                                                                            
Night Vision Systems--Eng Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      30,644         36,544                 +5,900  
Combat Feeding, Clothing, and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           110,829         84,329                -26,500  
Non-System Training Devices--Eng Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               71,034         74,234                 +3,200  
Automatic Test Equipment Development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               10,252         20,252                +10,000  
 (Note: Only to continue the development of the Improved Target Acquisition Systems electro-optical avionics support)                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Brilliant Anti-Armor Submunition (BAT)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            128,026        144,026                +16,000  
Joint Surveillance/Target Attack Radar System                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      11,535         27,535                +16,000  
 (Note: Of this amount, $5,000,000 is only for Engineering Support for Requirements Development and $8,000,000 is only for the Surveillance Common DataLink.)                                                                                                                                                                                                                                                                                                                                                                                                                             +3,000  
Aviation--Eng Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   6,312         13,312                 +7,000  
Weapons and Munitions--Eng Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     54,943         73,143                +18,200  
 (Note: Transferred from PE 0203761A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Landmine Warfare/Barrier--Eng Dev                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  40,916         30,120                -10,796  
 (Note: Transfer $8,000,000 to 0603619A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Army Tactical Command & Control Hardware & Software                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                35,299         39,799                 +4,500  
 (Note: Only to leverage advanced 3D display technology development work in support of other services at a not-for-profit technology transfer center for incorporation into Army command and control modernization initiatives for fixed sites and at tactical command centers at the corps, division and brigade levels)                                                                                                                                                                                                                                                                         
Concepts Experimentation Program                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   16,990         19,990                 +3,000  
Army Test Ranges and Facilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   137,193        147,193                +10,000  
Army Technical Test Instrumentation and Target                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     30,470         31,670                 +1,200  
Survivability/Lethality Analysis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   30,138         40,138                +10,000  
DOD High Energy Laser Test Facility                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                14,230         34,230                +20,000  
Munitions Standardization, Effectiveness and Safety                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                10,537         19,037                 +8,500  
Environmental Compliance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                0          8,000                 +8,000  
Adv Field Artillery Tactical Data System                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           36,222         42,722                 +6,500  
Combat Vehicle Improvement Programs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                29,544         42,544                +13,000  
Aircraft Engine Component Improvement Program                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2,900          4,900                 +2,000  
Digitization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       28,180         30,180                 +2,000  
Force XXI Battle Command, Brigade and Below (FBC)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  44,225         59,225                +15,000  
Missile/Air Defense Product Improvement Program                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    29,985         34,985                 +5,000  
Digital Information Technology Test Bed                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 0          2,000                 +2,000  
Security and Investigative Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   0         10,000                +10,000  
 (Note: Funds are only for the U.S. Army Intelligence and Security Command's Information Dominance Center)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
End Item Industrial Preparedness Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        66,167        102,667                +36,500  
 (Note: To support the existing Mantech Electro-Optics Center in meeting precision manufacturing requirements)                                                                                                                                                                                                                                                                                                                                                                                                                                                                            +4,000  
Army Ground Intelligence Center                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         0         35,000                +35,000  

                   Hunter Unmanned Aerial Vehicle (UAV)                  

      The Hunter UAV, a system whose production the Army has terminated,   
   was deployed to Operation Allied Force in the Balkans region. The Army  
   has lost seven air vehicles in theater. Despite these losses, the Army  
   claims it possesses sufficient Hunter inventory to continue operational 
   support.                                                                
      While the Army is not continuing to develop the Hunter, it has       
   incorporated certain modifications to improve performance and reduce    
   support costs for deployment to the Balkans region. The Committee       
   understands that the Joint Requirements Oversight Council (JROC) has    
   recommended that $15,650,000 from the amount appropriated in Public Law 
   106 31 for the Operational Rapid Response Transfer Fund, be used to     
   offset the cost of Hunter operations in the Balkans region. The         
   Committee supports this recommendation.                                 
      The Committee directs the Secretary of the Army to ensure that within
   available resources, adequate funds are provided for all necessary      
   Hunter requirements.                                                    
                                       BASIC RESEARCH                             

                        DEFENSE RESEARCH SCIENCES                        

      The Army requested $125,613,000 for defense research sciences. The   
   Committee recommends the budget request and directs that $3,000,000 is  
   only for vehicle mobility research at the Center for Advanced Propulsion
   Systems.                                                                

                                      APPLIED RESEARCH                            

                          BALLISTICS TECHNOLOGY                          

      The Army requested $36,287,000 for ballistics technology. The        
   Committee recommends $42,287,000, an increase of $6,000,000 only for    
   electromagnetic (EM) gun pulsed power technology. Furthermore, the      
   Committee directs that within the available amount, $2,500,000 is only  
   for electrothermal-chemical technology development.                     
                   HUMAN FACTORS ENGINEERING TECHNOLOGY                  

      The Committee urges all the military services to budget for the      
   implementation of the lessons learned through the Army's MedTeams       
   program to reduce emergency department errors and improve patient       
   satisfaction.                                                           
                     Environmental Quality Technology                    


      The Army requested $12,758,000 for environmental quality technology. 
   The Committee recommends $81,258,000, an increase of $68,500,000. Of    
   this amount $9,000,000 is only for the Plasma Energy Pyrolysis System,  
   which is capable of destroying hazardous, chemical and medical waste. In
   addition, $7,000,000 is only for the Sustainable Green Manufacturing    
   Initiative to develop advanced, environmentally responsible             
   manufacturing processes for weapons systems. Of the total, $3,000,000 is
   only to continue efforts to develop a computer-based land management    
   model for the Army to reduce time and costs attributable to military    
   training area recovery and restoration. Further, $8,000,000 is only for 
   the continuation of the Commercialization of Technologies to Lower      
   Defense Costs Initiative. In addition, $13,000,000 is only for the      
   continuation of the Demanufacturing of Electronic Equipment for Reuse   
   and Recycling (DEER2) Initiative. Another $3,000,000 is only to continue
   the next phase of the ongoing DEER2 program by establishing a state of  
   the art product and material recycling site. Furthermore, $9,000,000 is 
   only for a Corrosion Measurement and Control Project to leverage        
   available technologies and tools to detect, measure and control         
   corrosion to meet the Department's sustainment and readiness goals and  
   to lower maintenance costs. Another $10,000,000 is only for the Range   
   Safe Technology Demonstration Initiatives which include clean-up        
   demonstrations at five installations. An additional, $4,500,000 is only 
   for the continuation of the environmental pollution projects at         
   Watervliet Arsenal. Finally, $2,000,000 is only to advance the          
   maturation of Vessel Plating Technology, an environmental friendly      
   process for chrome plating long gun tubes.                              

                              ADVANCED TECHNOLOGY DEVELOPMENT                     

                       MEDICAL ADVANCED TECHNOLOGY                       

      The Committee is very concerned about the roughly $15 million the    
   Services spend on alcohol rehabilitation each year. Research to uncover 
   the biological basis for alcoholism and to develop a chemical block to  
   the addiction appears promising. The Committee encourages the Department
   to participate or partner in this research to identify the              
   pharmacological causes of alcoholism.                                   
                  MISSILE AND ROCKET ADVANCE TECHNOLOGY                  

      Last year, the Congress terminated the EFOG M program. The Committee 
   is aware that adequate funding was appropriated in fiscal year 1999 to  
   pay for any termination costs incurred for the EFOG M program, and no   
   additional funds are required for program termination.                  
                  LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION                 

      The Army requested $41,619,000 for the Line-of-Sight Technology      
   (LOSAT) Demonstration. The Committee recommends no funds for this       
   program based on recommendations in the Army's Light Anti-Tank (LAT)    
   Study/Program and inadequate outyear funding.                           
      The Army LAT Study indicated an improved TOW missile, with a Fire and
   Forget capability is of higher priority of than LOSAT. It is the        
   Committee's understanding that the Army has decided to begin developing 
   an improved TOW fire and forget system in fiscal year 2001 and has      
   included this item on this year's unfunded requirements list. Therefore,
   the Committee has included funds to accelerate the TOW Fire and Forget  
   Program. Additionally, the Army budget does not include adequate funds  
   to procure LOSAT and the Army has identified a shortfall in excess of   
   $250 million. Further details are provided under the heading ``Other    
   Missile Product Improvement Programs.''                                 
                           JOINT TACTICAL RADIO                          

      The Committee understands that the Under Secretary of Defense for    
   Acquisition and Technology will make key architecture and acquisition   
   strategy decisions on the Joint Tactical Radio System (JTRS) in October 
   2000. Although the Committee is pleased that top management attention is
   being given to this program, the Committee believes that the            
   architecture and acquisition strategy decisions need to be made at an   
   earlier date in order to influence key development decisions.           
      Since JTRS will resolve interoperability issues among service radios,
   the Committee believes the DoD should accelerate this effort. The       
   Committee recognizes the difficult task of replacing approximately      
   750,000 radios in the DoD inventory; but believes the task can be made  
   less daunting if DoD will determine which radios and wave forms will be 
   given priority. Additionally, the Committee believes an operational test
   and evaluation plan needs to be established with adequate criteria to   
   measure successful operations, both in joint and coalition operations.  
      The Committee directs the DoD to provide to the Committee by December
   15, 1999, a report on its strategy for developing and fielding the JTRS.
   The plan is to include priority radios for replacement, cost of the     
   development program, a development schedule and estimated unit cost of  
   production radios.                                                      
             ARTILLERY SYSTEMS--DEMONSTRATION AND VALIDATION             

      The Army requested $282,937,000 for artillery systems demonstration  
   and validation. The Committee recommends the budget request. The        
   Committee expresses its continued support for the Crusader development  
   program and encourages the Army to provide adequate funding in future   
   budget submissions for this program.                                    
                              OPERATIONAL SYSTEMS DEVELOPMENT                     

             FORCE XXI, WARFIGHTING RAPID ACQUISITION PROGRAM            

      The Army requested $55,921,000 for the Force XXI, Warfighting Rapid  
   Acquisition Program (WRAP). The Committee recommends $36,621,000, a     
   decrease of $19,300,000. Of the decrease $10,500,000 is excess funds due
   to the denial of a fiscal year 1999 WRAP initiative. The Committee also 
   recommends the transfer of $8,800,000 from this program element to other
   lines, as follows:                                                      

                                                                               

                                                                               

     xlResearch, Development, Test and Evaluation, Army:                            
       Rifle Launch Entry Munitions (Transferred to PE 0604802A)        $1,000,000  
     xlOther Procurement, Army:                                                     
       HEMTT-Load handling                                              $6,800,000  
       MEDLOG-Division                                                  $1,000,000  

      The Army's rationale for establishing the WRAP initiative was to     
   accelerate the development and fielding of mature technologies. Once    
   again, the Committee notes a significant number of WRAP initiatives have
   experienced schedule delays and cost growth, such as the Mortar Fire    
   Control, Gun Laying and Positioning System, and the Airborne Command and
   Control System. Additionally, the Committee notes the Army has not fully
   supported all of the WRAP initiatives in subsequent budget requests such
   as the Airborne Command and Control system. Therefore, the Committee    
   directs the Army to submit with its fiscal year 2001 budget request a   
   detailed report describing the status of the WRAP initiatives. The      
   report is to include the original and current schedule and cost         
   estimates for each approved initiative.                                 
      The Committee directs that none of the WRAP funds may be obligated   
   without prior approval from the congressional defense committees.       
   Notification of the Army's intent to obligate the funds is to include   
   supporting criteria outlining the technical merit and maturity;         
   criticality and priority to warfighting requirements; affordability;    
   effectiveness; and sustainability in future budget submissions. Further,
   the Committee directs that none of the WRAP funds may be used for       
   technologies included in the budget request, such as, but not limited   
   to, applique, night vision equipment, and radios. Instead, WRAP funds   
   are to be reprogrammed, with prior approval, to the proper project for  
   obligation.                                                             
                    OTHER MISSILE IMPROVEMENT PROGRAMS                   

      The Army requested $9,914,000 for other missile improvement programs.
   The Committee recommends $20,914,000, an increase of $11,000,000 only   
   for a TOW Fire and Forget missile. Based on the Army's Light Anti-Armor 
   Study, the Committee believes that the TOW Fire and Forget System will  
   increase lethality and survivability for the light forces. The Committee
   understands this particular initiative is among the programs analyzed in
   the Anti-Armor Weapons Master Plan. Also, the Committee understands that
   the Army is reviewing various options for fielding a TOW Fire and Forget
   capability to include modifications to existing missiles; producing new 
   Fire and Forget missiles; and developing a new TOW-like Fire and Forget 
   missile. Therefore, the Committee directs that none of the funds        
   appropriated for the improved TOW Fire and Forget may be obligated until
   30 days after Congress receives the Anti-Armor Weapons Master Plan.     
   Additionally, none of the funds may be obligated until the Army submits 
   a TOW Fire and Forget program plan to the Congress for prior approval.  
   The plan is to include the TOW Fire and Forget requirement, the         
   alternatives for satisfying that requirement, and the total program cost
   for each alternative.                                                   
            AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT PROGRAM           

      The Army's unfunded requirements list included $31,400,000 for a     
   Blackhawk Service Life Extension Program (SLEP). Although the Committee 
   believes that the current Blackhawk fleet is aging and needs to be      
   upgraded, the Committee believes it is premature to add funds for this  
   initiative at this time. The Committee directs the Army to provide with 
   the fiscal year 2001 budget request a report on the state of the        
   Blackhawk fleet. The report is to include the various Blackhawk models  
   in the inventory, the average age of each model type, required upgrades 
   and the estimated cost of a Service Life Extension Program as compared  
   to the cost of procuring new aircraft. Furthermore, the Committee       
   directs the Army to provide adequate funds for either the Blackhawk SLEP
   or new aircraft in subsequent budget submissions.                       
                                    PROGRAM RECOMMENDED                           

      The total program recommended in the bill will provide the following 
   in fiscal year 2000:                                                    

   Offset Folios 223 to 226 Insert Here                                    


                      RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY            


                                                                               

                                                       

     Fiscal year 1999 appropriation         $8,636,649,000  
     Fiscal year 2000 budget request         7,984,016,000  
     Committee recommendation                9,080,580,000  
     Change from budget request             +1,096,564,000  

      This appropriation provides funds for the research, development, test
   and evaluation activities of the Department of the Navy and the Marine  
   Corps.                                                                  
                                 COMMITTEE RECOMMENDATIONS                        

                          Authorization Changes                          

      The Committee recommends the following changes in accordance with    
   House authorization action:                                             

                                                                                           
                                 [In thousands of dollars]                                 

                              Budget  request    Committee recommendation    Change from request  

ASW systems development                17,780                      23,780                 +6,000  
Industrial preparedness                59,104                      74,104                +15,000  



                                                                                                                                                                                                   PROJECT LEVEL CHANGES                                                                                                                                                                                                   
                                                                                                                                                                                                 [In thousands of dollars]                                                                                                                                                                                                 

                                                                                                                                                                                                                                                                                                                                                      FY 2000 budget request  Committee  recommendation      Change from request  

Air and Surface Launched Weapons Technology                                                                                                                                                                                                                                                                                                                           37,616  54,616                                     +17,000  
Ship, Submarine & Logistics Technology                                                                                                                                                                                                                                                                                                                                43,786  64,586                                     +20,800  
 (Note: Funds for curved plate double hull are only to continue the demonstration of developed techniques for the advancement of curved plate advanced double hull technology for naval and commercial applications.)                                                                                                                                                                                                      +4,000  
 NOTE: Funds for metalworking technology are only for test and evaluation of systems that provide more efficient and affordable methods of metal fabrication for components on navy ships, carriers and submarines performed at the Center for Concurrent Technology in Bremerton, Washington.                                                                                                                                     
Communications, Command and Control, Intel, Surveillan                                                                                                                                                                                                                                                                                                                68,823  78,073                                      +9,250  
Human Systems Technology                                                                                                                                                                                                                                                                                                                                              30,586  37,086                                      +6,500  
Materials, Electronics and Computer Technology                                                                                                                                                                                                                                                                                                                        77,957  90,457                                     +12,500  
 NOTE: Funds for engineered wood composite lumber are only to continue the ongoing collaborative research to adapt wood based composites for specific building applications for improved Navy construction.                                                                                                                                                                                                                +2,000  
Oceanographic and Atmospheric Technology                                                                                                                                                                                                                                                                                                                              60,334  71,084                                     +10,750  
Undersea Warfare Weaponry Technology                                                                                                                                                                                                                                                                                                                                  34,066  39,066                                      +5,000  
Dual Use Applications Program                                                                                                                                                                                                                                                                                                                                         18,390  10,000                                      -8,390  
Air Systems and Weapons Advanced Technology                                                                                                                                                                                                                                                                                                                           42,046  51,046                                      +9,000  
Precision Strike and Air Defense Technology                                                                                                                                                                                                                                                                                                                           52,580  82,080                                     +29,500  
 NOTE: Funds for small combatant craft are only for the purchase, test, and evaluation of small combatant craft (one low radar signature and one high effective operational speed), for close in-shore naval operations.                                                                                                                                                                                                   +7,500  
Surface Ship & Submarine HM&E Advance Technology                                                                                                                                                                                                                                                                                                                      41,515  75,515                                     +34,000  
Marine Corps Advanced Technology Demonstration (ATD)                                                                                                                                                                                                                                                                                                                  56,943  62,943                                      +6,000  
Medical Development                                                                                                                                                                                                                                                                                                                                                   15,064  81,864                                     +66,800  
Manpower, Personnel and Training Adv Tech Dev                                                                                                                                                                                                                                                                                                                         20,632  39,632                                     +19,000  
 NOTE: Funds are only to continue effort to standardize distributed learning courseware.                                                                                                                                                                                                                                                                                                                                   +6,000  
 NOTE: Funds are only to begin phase I, developing linkage between joint and military service demonstration and experimentation initiatives and the design of future carriers using methodology demonstrated in the JMO T program.                                                                                                                                                                                                 
Environmental Quality and Logistics Advanced Tech                                                                                                                                                                                                                                                                                                                     23,809  28,809                                      +5,000  
 NOTE: Only for Integrated Data Environment Systems development and testing.                                                                                                                                                                                                                                                                                                                                                       
Navy Technical Information Presentation System                                                                                                                                                                                                                                                                                                                        41,840  19,940                                     -21,900  
 NOTE: $520,000 is only to establish the Center for Defense Technology and Education for the military services at the Naval Postgraduate School to focus on the impact of emerging technologies on joint warfare.                                                                                                                                                                                                                  
Advanced Technology Transition                                                                                                                                                                                                                                                                                                                                        75,635  96,535                                     +20,900  
 NOTE: Sub carrier modulation is to be managed by the Navy Undersea Warfare Center.                                                                                                                                                                                                                                                                                                                                                
C3 Advanced Technology                                                                                                                                                                                                                                                                                                                                                23,808  39,808                                     +16,000  
C2W Replacement for EA 6B                                                                                                                                                                                                                                                                                                                                                  0  16,000                                     +16,000  
Software Development and Management                                                                                                                                                                                                                                                                                                                                        0  2,000                                       +2,000  
Aviation Survivability                                                                                                                                                                                                                                                                                                                                                 7,280  16,280                                      +9,000  
 NOTE: Funds are only for improvements to the existing ejection seat test facility at Naval Air Warfare Center Aircraft Division.                                                                                                                                                                                                                                                                                          +1,500  
ASW Systems Development                                                                                                                                                                                                                                                                                                                                               17,780  23,780                                      +6,000  
Surface and Shallow Water Mine Countermeasures                                                                                                                                                                                                                                                                                                                        82,465  94,465                                     +12,000  
Advanced Submarine Combat Systems Development                                                                                                                                                                                                                                                                                                                              0  10,000                                     +10,000  
Surface Ship Torpedo Defense                                                                                                                                                                                                                                                                                                                                             640  5,640                                       +5,000  
 NOTE: Funds are only to continue the joint collaborative SSTD program with the United Kingdom including the upgrade of the SLQ 25 A torpedo countermeasure capability, including the winch and tow, for littoral operations.                                                                                                                                                                                                      
Shipboard System Component Development                                                                                                                                                                                                                                                                                                                               108,334  114,484                                     +6,150  
Advanced Submarine System Development                                                                                                                                                                                                                                                                                                                                115,767  124,267                                     +8,500  
Ship Concept Advanced Design                                                                                                                                                                                                                                                                                                                                           5,318  29,818                                     +24,500  
 NOTE: Automated maintenance  environment funds are only to integrate the NAVSEA AME project with the NAVAIR GAME project to create a deployable battle group level integrated maintenance system under the NAVSEA AME contract.                                                                                                                                                                                                   
Advanced Surface Machinery Systems                                                                                                                                                                                                                                                                                                                                    17,727  22,727                                      +5,000  
Combat System Integration                                                                                                                                                                                                                                                                                                                                             46,740  79,740                                     +33,000  
Conventional Munitions                                                                                                                                                                                                                                                                                                                                                34,309  43,309                                      +9,000  
Marine Corps Assault Vehicles                                                                                                                                                                                                                                                                                                                                         94,843  112,843                                    +18,000  
Marine Corps Ground Combat/Support System                                                                                                                                                                                                                                                                                                                             42,654  45,654                                      +3,000  
Cooperative Engagement                                                                                                                                                                                                                                                                                                                                               114,931  190,931                                    +76,000  
Environmental Protection                                                                                                                                                                                                                                                                                                                                              70,793  84,793                                     +14,000  
 NOTE: Only to continue the validation of a thermochemical conversion process used to decontaminate mixed waste streams and PCB's from retired Navy submarines at Puget Sound Naval Shipyard.                                                                                                                                                                                                                             +10,000  
Navy Energy Program                                                                                                                                                                                                                                                                                                                                                    4,984  7,984                                       +3,000  
Navy Logistics Productivity                                                                                                                                                                                                                                                                                                                                                0  27,500                                     +27,500  
Ship Self Defense--Dem/Val                                                                                                                                                                                                                                                                                                                                             5,654  10,654                                      +5,000  
Land Attack Technology                                                                                                                                                                                                                                                                                                                                               101,489  111,489                                    +10,000  
Space and Electronic Warfare (SEW) Architecture/Engine                                                                                                                                                                                                                                                                                                                35,170  37,170                                      +2,000  
Other Helo Development                                                                                                                                                                                                                                                                                                                                                48,776  80,776                                     +32,000  
Standards Development                                                                                                                                                                                                                                                                                                                                                 74,325  78,825                                      +4,500  
S 3 Weapon System Improvement                                                                                                                                                                                                                                                                                                                                          2,095  7,095                                       +5,000  
P 3 Modernization Program                                                                                                                                                                                                                                                                                                                                              3,010  18,010                                     +15,000  
Tactical Command System                                                                                                                                                                                                                                                                                                                                               41,599  45,599                                      +4,000  
Air Crew Systems Development                                                                                                                                                                                                                                                                                                                                           6,801  14,301                                      +7,500  
 NOTE: Funds are only for continuation of Navy effort in concert with a similar Air Force program to define ejection seat deficiencies and identify corrective actions relative to stability, restraint, and accommodation configurations.                                                                                                                                                                                 +3,500  
EW Development                                                                                                                                                                                                                                                                                                                                                       163,077  237,577                                    +74,500  
Surface Combatant Combat System Engineering                                                                                                                                                                                                                                                                                                                          204,480  244,480                                    +40,000  
 NOTE: Funds for displays are only to address AEGIS-specific interoperability issues and the development of tactical display services supporting TMD and CEC systems.                                                                                                                                                                                                                                                      +7,500  
SSN 688 and Trident Modernization                                                                                                                                                                                                                                                                                                                                     48,896  76,896                                     +28,000  
 NOTE: BQG 5 funds are for integration and installation planning for the inboard segment and testing on a submarine.                                                                                                                                                                                                                                                                                                               
Submarine Combat System                                                                                                                                                                                                                                                                                                                                                6,546  9,546                                       +3,000  
New Design SSN                                                                                                                                                                                                                                                                                                                                                       241,456  251,456                                    +10,000  
Navy Tactical Computer Resources                                                                                                                                                                                                                                                                                                                                       3,300  58,300                                     +55,000  
 NOTE: Funds are only to develop selected submarine combat system Q 70 retrofits for SSN 688/Trident class submarines.                                                                                                                                                                                                                                                                                                     +5,000  
 NOTE: UYQ 70 technology refresh funds are only to develop and implement technology refresh, to include but not be limited to, Q 70 COTS networking and interconnect infrastructure, common system service software components, advanced human to machine interfaces, IT21 workstation, systems compatibility design and logistics streamlining.                                                                           +5,000  
 NOTE: ADLIDCA equipment only for Puget Sound Naval Shipyard.                                                                                                                                                                                                                                                                                                                                                                      
Ship Self Defense--EMD                                                                                                                                                                                                                                                                                                                                                96,580  111,580                                    +15,000  
Medical Development                                                                                                                                                                                                                                                                                                                                                    4,285  10,285                                      +6,000  
 NOTE: Only for continued development of a Navy voice interactive device to facilitate the collection, processing, storing, and forwarding of critical medical information for treatment of combat casualties.                                                                                                                                                                                                                     
Distributed Surveillance System                                                                                                                                                                                                                                                                                                                                       14,910  38,910                                     +24,000  
Commerical Operations and Support Savings Initiative                                                                                                                                                                                                                                                                                                                  18,729  16,500                                      -2,229  
Major T&E Investment                                                                                                                                                                                                                                                                                                                                                  42,621  49,621                                      +7,000  
Studies and Analysis Support--Navy                                                                                                                                                                                                                                                                                                                                     8,531  6,031                                       -2,500  
Sew Surveillance/Reconnaissance Support                                                                                                                                                                                                                                                                                                                               12,121  16,121                                      +4,000  
Marine Corps Program Wide Support                                                                                                                                                                                                                                                                                                                                      8,198  28,398                                     +20,200  
Strategic Sub & Weapons System Support                                                                                                                                                                                                                                                                                                                                45,907  60,407                                     +14,500  
F/A 18 Squadrons                                                                                                                                                                                                                                                                                                                                                     315,714  373,214                                    +57,500  
 2 Squadrons                                                                                                                                                                                                                                                                                                                                                          16,132  55,132                                     +39,000  
Tomahawk and Tomahawk Mission Planning Center (TMPC)                                                                                                                                                                                                                                                                                                                 147,223  142,223                                     -5,000  
Consolidated Training Systems Development                                                                                                                                                                                                                                                                                                                         26,257 500  33,757                                      +7,500  
Harm Improvement                                                                                                                                                                                                                                                                                                                                                      23,642  43,642                                     +20,000  
Aviation Improvements                                                                                                                                                                                                                                                                                                                                                 53,292  63,292                                     +10,000  
Marine Corps Communications Systems                                                                                                                                                                                                                                                                                                                                   90,293  94,293                                      +4,000  
Marine Corps Ground Combat/Supporting Arms Systems                                                                                                                                                                                                                                                                                                                    39,941  36,741                                      -3,200  
Tactical Unmanned Aerial Vehicles                                                                                                                                                                                                                                                                                                                                     69,742  77,242                                      +7,500  
Airborne Reconnaissance Systems                                                                                                                                                                                                                                                                                                                                        4,958  18,958                                     +14,000  
 NOTE: Funds are only for Electro-Optical Framing with on chip FMC.                                                                                                                                                                                                                                                                                                                                                        +4,000  
Manned Reconnaissance Systems                                                                                                                                                                                                                                                                                                                                         30,958  39,958                                      +9,000  
 NOTE: Funds are only for testing and evaluation of a small lightweight synthetic aperture radar for the SHARP reconnaissance system.                                                                                                                                                                                                                                                                                              
Naval Space Surveillance                                                                                                                                                                                                                                                                                                                                                 712  2,712                                       +2,000  
Industrial Preparedness                                                                                                                                                                                                                                                                                                                                               59,104  74,104                                     +15,000  
Maritime Technology (Maritech)                                                                                                                                                                                                                                                                                                                                        19,681  24,681                                      +5,000  

                          Joint Experimentation                          

      The Navy requested $41,840,000 for joint experimentation conducted by
   the United States Atlantic Command (ACOM). The Committee recommends     
   $19,940,000, a decrease of $21,900,000 due to delay in the fiscal year  
   1999 program and to reduce program scope as explained below. The        
   Committee notes that a reprogramming request to accelerate the fiscal   
   year 1999 program was not approved by Congress until the last quarter of
   the fiscal year, and these funds can be used to partially offset the    
   amount requested in fiscal year 2000. Within the amount requested in    
   fiscal year 2000, $18,720,000 has been identified for the highest       
   priority: attack operations against critical mobile targets. This       
   highest priority is fully funded in the Committee's recommendation.     
      The joint experimentation program has noble goals, namely to improve 
   wartime operations and interoperability of the military services' forces
   by analyzing, evaluating, and perhaps changing organizations, doctrine, 
   tactics, weapon system acquisitions, and identifying or defining        
   requirements for the development of future technologies. The budget     
   request envisions an expenditure of over $374 million and establishing a
   bureaucracy of 161 personnel during the next six years to address these 
   issues. The output of this large expenditure of funds, according to the 
   Commander-in-Chief of the United States Atlantic Command, is workshops, 
   seminars, and wargames. The Committee notes that for $374 million       
   proposed for this initiative, not a single item of equipment would be   
   fielded to combat troops, who today face many shortages of equipment and
   parts. The proposed ACOM organization would operate autonomously and not
   be integrated with or responsible to any other chain of command. The    
   potential for duplication of effort or wasted effort is of major concern
   to the Committee. The Atlantic Command also cannot articulate with      
   clarity how these funds would be used, other than to provide general    
   categorization of broad potential activities.                           
      The Committee agrees that ACOM could play a useful role in improving 
   joint organizations, tactics, and doctrine. The Committee questions     
   whether ACOM can play a significant role in weapon systems acquisition  
   or technology development. Before agreeing to the manpower and funding  
   investments envisioned in the budget, the Committee would like to see   
   ACOM focus on a well-defined area of weapon systems acquisition and     
   demonstrate to the Defense Department and to Congress that through its  
   activities it can make a meaningful contribution to the process. The    
   Committee directs that ACOM experimentation funds in fiscal years 1999  
   and 2000 may only be used for attack operations against critical mobile 
   targets, limited infrastructure investments needed to facilitate that   
   single objective, and participation in OSD weapon system reviews. The   
   Committee also directs the Secretary of Defense to report quarterly to  
   the congressional defense committees on the results of ACOM activities  
   during the previous quarter. Such reports should not focus on inputs    
   (how much ACOM has spent, how many seminars it conducted, how many trips
   were taken) but rather on outputs (changes that have been made to       
   organizations, tactics, doctrine, or weapon system acquisitions).       
      The claimed rationale for an investment of $374 million and          
   establishment of a new bureaucracy of 161 non-combat personnel is the   
   perception that the Defense weapon system oversight process is not      
   working properly and weapons are not being fielded which are            
   interoperable among the military services. The Committee views the ACOM 
   initiative as a politically-driven substitute to addressing the real    
   problem, managing the weapon system acquisition process to ensure that  
   the best systems are fielded to U.S. combat forces, to provide the best 
   performance during wartime when conducting joint service operations. The
   Commander-in-Chief of the United States Atlantic Command informed the   
   Committee that the test of whether the ACOM joint experimentation       
   initiative is successful is whether or not ACOM ``gets a seat at the    
   table'' when weapon systems acquisition decisions are made. The         
   Committee believes this concern can be addressed in a straightforward   
   manner without a huge investment of funds for studies and establishment 
   of a huge new bureaucracy. The Committee has therefore included a new   
   general provision (Section 8120) which: requires the Defense Acquisition
   Board to include the Commander-in-Chief of the U.S. Atlantic Command as 
   a fully participating member; prohibits approving weapons systems from  
   moving into subsequent phases unless the Commander-in-Chief of the U.S. 
   Atlantic Command certifies to the congressional defense committees that 
   an acquisition before the Defense Acquisition Board fully meets joint   
   service interoperability requirements as determined by theater          
   Commanders-in-Chief; and requires that funds to support the U.S.        
   Atlantic Command participation in Defense Acquisition Board reviews be  
   absorbed within those proposed in the President's budget for ACOM       
   activities.                                                             
                 OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY                

      The Committee encourages the Navy to accelerate transfer of the      
   research ship USNS Hayes from Cape Canaveral to the South Florida Test  
   Facility as soon as possible.                                           
               INTERCOOLED RECUPERATIVE GAS TURBINE ENGINE               

      The Navy requested $17,700,000 for continued development of the      
   intercooled recuperated gas turbine engine. The Committee recommends    
   $22,700,000, an increase of $5,000,000 to provide a federal government  
   share of a cost improvement program with industry and international     
   partners that could allow the engine to be better suited for future     
   ships such as DD 21. The Committee has included bill language to        
   implement the cost improvement program, while limiting the Navy's       
   program share to not more than one-third of the total program cost, to  
   capitalize on the approximate $400 million investment in this program to
   date. The Committee hereby withdraws the program development cost cap   
   stated in the conference report accompanying the fiscal year 1999       
   Department of Defense Appropriations Act, since the Navy has indicated  
   that it desires to participate in the allied engine qualification effort
   and to reflect the additional costs of the cost improvement initiative. 
                                   JSOW                                  

      The Navy requested $30,567,000 for JSOW. The Committee recommends    
   $15,000,000, a net decrease of $15,567,000. This amount includes a      
   decrease of $30,567,000 for the JSOW unitary variant and an increase of 
   $15,000,000 only for GPS anti-spoofing. Last year, the Committee        
   recommended termination of the Navy-unique JSOW unitary variant based on
   its high cost and low performance relative to other DoD stand-off       
   munitions. Despite the Committee's recommendation last year, the Navy   
   has requested additional funds in fiscal year 2000 for development of a 
   new, cheaper unitary variant. As a cost saving measure, the new variant 
   no longer includes ``man-in-the-loop'' which severely limits the        
   weapon's capability against moving targets. However, the GAO has learned
   that the Navy's JSOW unitary inventory requirement is based almost      
   completely on the use of the weapon against just this class of targets. 
   The small number of fixed targets that drive the inventory requirement  
   hardly justifies development of another service-unique weapon system,   
   given the acquisition plans for such other service-unique systems as    
   SLAM-ER, Tactical Tomahawk, and JASSM which can more effectively attack 
   the same targets. Accordingly, the Committee once again recommends      
   termination of the JSOW unitary program.                                
                              AERIAL TARGETS                             

      The Navy is conducting a competition for development and production  
   of the Supersonic Sea-Skimming Target (SSST). The Committee directs the 
   Navy conclude the competition and select a vendor by October 15, 1999.  
   The Committee further directs that none of the funds in this Act may be 
   used for the SSST after October 15, 1999 if the Navy has not concluded  
   the competition by that time.                                           
                           BONE MARROW REGISTRY                          

      The Committee provides $34,000,000 to be administered by the C.W.    
   Bill Young Marrow Donor Recruitment and Research Program, also known,   
   and referred to, within the Naval Medical Research Center, as the Bone  
   Marrow Registry. This DoD donor center has recruited 200,000 DoD        
   volunteers, and provides more marrow donors per week than any other     
   donor center in the Nation. The Committee is aware of the continuing    
   success of this life saving program for military contingencies and      
   civilian patients, which now includes more than 3,600,000 potential     
   volunteer donors, and encourages agencies involved in contingency       
   planning to include the C.W. Bill Young Marrow Donor Recruitment and    
   Research Program in the development and testing of their contingency    
   plans. DD Form 1414 shall show this as a special congressional interest 
   item, and the Committee directs that all of the funds appropriated for  
   this purpose be released to the C.W. Bill Young Marrow Donor Recruitment
   and Research Program within 60 days of enactment of the Fiscal Year 2000
   Defense Appropriations Act.                                             
                    shared reconnaissance pod (sharp)                    

      The Committee is pleased with the commitment the Secretary of the    
   Navy and the Chief of Naval Operations have made in the development of  
   the SHARP system. The Committee notes that in a June 1, 1999 report to  
   Congress, the Secretary of the Navy determined that the SHARP program is
   the ``most effective reconnaissance system for the F/A 18, the scheduled
   replacement for F 14 Tactical Airborne Reconnaissance Pod System        
   (TARPS).''                                                              
      Given these results, it is difficult to understand why the Marine    
   Corps has not aggressively pursued this technology in conjunction with  
   the Navy. The Committee requests that the Secretary of the Navy review  
   the Marine Corps proposals for its roadmap to meet future tactical      
   reconnaissance requirements to ensure that this plan includes a         
   transition to SHARP when the system becomes available for acquisition.  
      The rapid prototyping development and acquisition strategy for SHARP 
   is unique in that the Navy seeks to use off the shelf sensor technology 
   and integrate this technology into a pod that can be used on the F/A 18.
   The Committee believes that significant progress has been made in the   
   commercial sector to develop electro-optic sensor, radar, and pod       
   technologies that can meet most of SHARP's operational needs            
   immediately. However, several challenges exist, both technically and    
   philosophically, to getting this technology integrated, tested, and     
   fielded on the F/A 18.                                                  
      Technical challenges include development of a suitable pod and the   
   integration of the sensors, radar, and the ground station data link with
   the aircraft. The Committee is confident that the Navy will overcome    
   these challenges. The philosophical challenge includes a new development
   and acquisition strategy that requires the Service to adopt a rapid     
   prototyping process with ``off-the-shelf'' technology. The Committee    
   believes a flexible and dynamic development and acquisition approach is 
   necessary to quickly and effectively field SHARP.                       
      The Committee has included $9,000,000 for the SHARP program only to  
   pursue the acquisition and testing of a small, lightweight synthetic    
   aperture radar for inclusion into SHARP. Significant work has already   
   been conducted on such a system that is being leveraged by the Navy on  
   other platforms. The Navy should not use these funds to pursue a new    
   developmental effort for this SAR, but should test what is available    
   today. This is a congressional interest item. These funds shall not be  
   used for other program requirements without prior approval.             
      The Committee is aware that there could be future funding shortfalls 
   in the SHARP program based on additional requirements and technology    
   enhancements. The Committee directs the Secretary of the Navy to ensure 
   that any and all SHARP program requirements are fully funded in future  
   budget requests.                                                        
      Finally, the Committee is concerned that technical challenges in the 
   development of a suitable pod could potentially delay fielding of SHARP.
   The Navy should aggressively pursue the most innovative and competitive 
   SHARP pod design and development. It appears the current acquisition    
   approach does not allow for participation by small innovative companies.
                                    PROGRAM RECOMMENDED                           

      The total recommended in the bill will provide the following program 
   in fiscal year 2000.                                                    

   Offset Folios 237 to 241 Insert Here                                    


                   RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE          


                                                                               

                                                       

     Fiscal year 1999 appropriation        $13,758,811,000  
     Fiscal year 2000 budget request        13,077,829,000  
     Committee recommendation               13,709,233,000  
     Change from budget request               +631,404,000  

      This appropriation funds the Research, Development, Test and         
   Evaluation activities of the Department of the Air Force.               
                                 COMMITTEE RECOMMENDATIONS                        

             CONSOLIDATION AND ELIMINATION OF SMALL PROGRAMS             

      The Committee is concerned about the proliferation of program element
   line-items in the Air Force research and development budget. The        
   Committee notes that several of these program elements request          
   appropriations below a million dollars often to fund legacy programs    
   that have long since transitioned from development to production to     
   fielding. The Committee believes that these efforts should either be    
   consolidated with other similar efforts or eliminated altogether.       
   Accordingly, the Committee recommendation denies funding for these small
   programs with the expectation that the Air Fore will make further       
   suggestions regarding consolidation or elimination.                     
                    af/national program consolidation                    

      The Air Force request included three line-items each funding         
   different aspects of cooperation among national intelligence programs   
   and the Air Force. The Committee believes it would be more efficient to 
   consolidate these efforts into a single line-item. The Committee        
   recommendation for this new line-item totals $23,500,000, which includes
   $19,500,000 (representing a 15 percent reduction based on consolidation 
   efficiencies) and a $4,000,000 increase for a TENCAP program as         
   authorized in the House version of the Fiscal Year 2000 Defense         
   Authorization Act.                                                      
                     AIR FORCE SCIENCE AND TECHNOLOGY                    

      The Air Force budget reduces various Science and Technology efforts  
   by $94,600,000 to fund the Space Based Laser and Space Based Radar      
   programs. The Air Force subsequently submitted a request for $94,600,000
   as part of its list of unfunded priorities. The Committee recommendation
   includes the additional $94,600,000 of Science and Technology funding.  
   This additional funding has been spread to the various Science and      
   Technology line-items in accordance with specific project               
   recommendations made by the Air Force. As discussed elsewhere in this   
   report, the Committee recommendation further includes reductions to the 
   budgeted amounts for Space Based Laser and termination of the Space     
   Based Radar.                                                            
                  WRIGHT PATTERSON LANDING GEAR FACILITY                 

      The Committee understands that the Air Force intends to keep the     
   Wright Patterson Landing Gear Facility open and available to both       
   military and commercial users, but plans to shift ownership of the      
   facility from the Air Force Research Laboratory to either another Air   
   Force organization or a commercial firm. The Committee further          
   understands that the Air Force is evaluating options and will make a    
   decision on the final disposition of the facility by the end of fiscal  
   year 1999. The Committee agrees with the Air Force that the facility    
   should stay open and makes no judgments as to the final ownership.      
   However, the Committee does expect the Air Force to notify the Committee
   of its final decision on the disposition of the facility prior to       
   implementation of this decision.                                        
                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes to the budget request 
   in accordance with House authorization action.                          

                                                                               
                           [In thousands of dollars]                           

Item       Budget request    Committee recommendation    Change from request  

EELV              324,803                     322,803                 -2,000  



                                              PROJECT LEVEL CHANGES                                              
                                            [In thousands of dollars]                                            

                                                                  Budget request    Recommended  Change from request    

Defense Research Sciences                                                209,505        216,505  +7,000                 
Materials                                                                 63,334         74,234  +10,900                
Aerospace Flight Dynamics                                                 43,898         49,298  +5,400                 
Human Effectiveness Applied Research                                      51,512         72,412  +20,900                
Aerospace Propulsion                                                      62,012         77,212  +15,200                
Aerospace Sensors                                                         64,988         75,688  +10,700                
Hypersonic Technology Program                                                  0         16,600  +16,600                
Phillips Lab Exploratory Development                                     115,313        147,613  32,300                 
Command Control and Communications                                        46,448         47,548  +1,100                 
Dual Use Science and Technology Program                                   17,927         10,000  -7,927                 
Advanced Materials for Weapon Systems                                     25,890         31,890  +6,000                 
Advanced Aerospace Sensors                                                29,405         47,805  +18,400                
Flight Vehicle Technology                                                  5,992         11,992  +6,000                 
Aerospace Propulsion and Power Technology                                 38,778         39,378  +600                   
Personnel, Training and Simulation Technology                              4,827          7,027  +2,200                 
Electronic Combat Technology                                              27,334         34,434  +7,100                 
Space and Missile Rocket Propulsion                                       11,231         26,531  +15,300                
Ballistic Missile Technology                                                   0         23,000  +23,000                
Advanced Spacecraft Technology                                            76,229         67,259  -8,970                 
Space Systems Environmental Interactions Technology                        3,677          4,177  +500                   
Conventional Weapons Technology                                           21,479         23,033  +1,554                 
Advanced Weapons Technology                                               38,995         56,495  +17,500                
Environmental Engineering Technology                                           0          3,000  +3,000                 
C31 Subsystem Integration                                                  9,122          7,922  -1,200                 
Space-Based Laser                                                         63,840         35,000  -28,840                
National Polar-Orbiting Operational Environmental Satellite               80,137         40,137  -40,000                
Space Based Infrared Architecture (SPACE)--DEM/VAL                       151,378              0  -151,378               
C 130                                                                                    43,600  +43,600                
Wideband Milsatcom (SPACE)                                                53,344         44,344  -9,000                 
Air Force/NRO Partnership (AFNP)                                           2,905                 -2,905                 
B 1B                                                                     203,544        183,544  -20,000                
Specialized Undergraduate Pilot Training                                  38,656         41,156  +2,500                 
EW Development                                                            90,347         89,047  -1,300                 
Space Based Infrared System (SBIRS) Low EMD                               77,651        229,029  +151,378               
Munitions Dispenser Development                                                0          3,900  +3,900                 
Armament/Ordnance Development                                              8,887         27,887  +19,000                
Submunitions                                                               4,798         10,798  +6,000                 
Agile Combat Support                                                         946              0  -946                   
Joint Direct Attack Munition                                               1,385         20,385  +19,000                
Life Support Systems                                                       6,135          9,135  +3,000                 
Combat Training Ranges                                                     6,220         17,820  +11,600                
Computer Resource Technology Transition (CRTT)                               196          6,396  +6,200                 
Joint Interoperability of Tactical Command & Control                       5,837          2,837  -3,000                 
Commercial Operations and Support Savings Initiative                      30,485         15,937  -14,548                
Evolved Expendable Launch Vehicle Program (SPACE)                        324,803        322,803  -2,000                 
Target Systems Development                                                   192              0  -192                   
Major T&E Investment                                                      47,334         69,534  +22,200                
Initial Operational Test & Evaluation                                     23,819         30,569  +6,750                 
Test and Evaluation Support                                              392,104        400,104  +8,000                 
Information Operations Technology                                            491              0  -491                   
B 52 Squadrons                                                            32,139         47,539  +15,400                
Advanced Cruise Missile                                                      688              0  -688                   
Air and Space Command and Control Agency (ASC2A)                           2,946              0  -2,946                 
Manned Destructive Suppression                                             5,402          3,402  -2,000                 
Advanced Medium Range Air-To-Air Missile (AMRAAM)                         49,783         52,783  +3,000                 
AF TENCAP                                                                 10,102              0  -10,102                
Compass Call                                                               4,908          12908  +8,000                 
Aircraft Engine Component Improvement Program                            160,212        175,212  +15,000                
Theater Air Control Systems                                                  467          6,467  +6,000                 
Airborne Warning and Control System (AWACS)                               33,393         36,393  +3,000                 
Advanced Communications Systems                                            2,864              0  -2,864                 
Joint Surveillance and Target Attack Radar System                        130,488        161,988  +31,500                
USAF Modeling and Simulation                                              19,299         23,799  +4,500                 
Wargaming and Simulation Centers                                           5,192         26,692  +21,500                
Mission Planning Systems                                                  16,764         20,764  +4,000                 
War Reserve Materiel--Equipment/Secondary Items                            1,467                 -1,467                 
Defense Satellite Communications System (SPACE)                            8,985          3,985  -5,000                 
Information Systems Security Program                                       7,992         12,492  +4,500                 
Medium Launch Vehicles (SPACE)                                             1,179              0  -1,179                 
Security and Invesigative Activities                                         466          1,466  +1,000                 
National Airspace System (NAS) Plan                                        1,756              0  -1,756                 
Tactical Terminal                                                            239              0  -239                   
Navstar Global Positioning System (User Equipement)                       53,963         49,313  -4,050                 
Endurance Unmanned Aerial Vehicles                                        70,835         89,800  +18,965                
Airborne Reconnaissance Systems                                          124,608        144,008  +19,400                
Manned Reconnaissance Systems                                              9,388         12,488  +3,100                 
Distributed Common Ground Systems                                         12,820         33,820  +21,000                
NCMC--TW/AA System                                                        16,408          4,524  -11,884                
Space Architect                                                            9,898              0  -9,898                 
Modeling and Simulation Support                                            1,069              0  -1,069                 
C 5 Airlift Squadrons                                                     63,041         60,041  -3,000                 
C 17 Aircraft                                                            170,718        149,918  -20,800                
Air Cargo Material Handling                                                  502              0  -502                   
KC 10                                                                                    23,609  +23,609                
Depot Maintenance (non-IF)                                                 1.500          5,000  +3,500                 
Joint Logistics Program--Ammunition Standard System                       11,333         13,268  +1,935                 
Support Systems Development                                               22,383         37,383  +15,000                


               AEROSPACE PROPULSION SUBSYSTEMS INTEGRATION               

      The Air Force requested $29,825,000 for Aerospace Propulsion         
   Subsystems Integration. The Committee recommends $8,925,000, a decrease 
   of $20,000,000 associated with the advanced engine demonstration project
   for next generation fighter and bomber aircraft. The Committee notes    
   that all next generation aircraft currently in development already have 
   dedicated engine development programs. In the absence of a clear        
   transition path to a next generation aircraft, the Committee believes it
   is premature to fund such an engine demonstration project at this time. 
                      ADVANCED COMPUTING TECHNOLOGY                      

      The Air Force requested $4,507,000 for Advanced Computing Technology.
   The Committee recommends no funding for this program given that the     
   commercial computer marketplace is making sufficient investment in this 
   technology area.                                                        
             CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY            

      The Air Force requested $14,841,000 for crew systems and personnel   
   protection technology. The Committee recommends $34,341,000, an increase
   of $19,500,000. Of this amount, $4,500,000 is only for the high         
   brightness head-mounted display project and $15,000,000 is only for risk
   reduction to initiate a program to conduct pre-qualification testing and
   modifications for ejection seats from all viable competitors. The       
   Committee believes there is a great need to upgrade ejection seat       
   technology to maximize safety at all airspeeds, attitudes and altitudes 
   for all pilot profiles to include lighter weight female pilots. The     
   Committee is aware that at least three different manufacturers are      
   actively engaged in development efforts to improve ejection seat safety 
   and believes that a fair and open competitive process will best ensure  
   safety, performance and affordability. The Committee therefore has added
   $15,000,000 to this account and directs that this sum be combined with  
   $5,000,000 from the amount requested for ejection seat risk reduction   
   efforts. This program shall be a joint Air Force--Navy program, and     
   shall have as its goal to complete pre-qualification testing within 12  
   months of contract award. The Committee expects that this program will  
   lead to development of fully qualified generic seats that can be        
   competed for installation into the Joint Strike Fighter and other       
   current and future aircraft.                                            

                           JOINT STRIKE FIGHTER                          

      The Air Force requested $235,374,000 for the Joint Strike Fighter    
   program. The Committee recommends $335,374,000, an increase of          
   $100,000,000 only for further risk reduction for the Joint Strike       
   Fighter program. The Joint Strike Fighter program is being designed to  
   be a joint, affordable, multi-mission aircraft. The Committee believes  
   these attributes are fully consistent with the changed national security
   environment. The Committee provides the additional funds to ensure the  
   Joint Strike Fighter program remains on track to meet its objectives.   
                                   B 2                                   

      The Air Force requested $201,765,000 for B 2 bomber development      
   efforts. The Committee recommends $344,165,000, an increase of          
   $142,400,000. This amount includes a decrease of $31,600,000 for JASSM  
   integration contract savings, a decrease of $37,000,000 based on        
   rephased upgrades to AV 3, an increase of $30,100,000 for a classified  
   program identified by the Air Force, an increase of $92,000,000 for Link
   16/Center Instrument Display upgrades, an increase of $35,900,000 for   
   EGBU 28 integration, an increase of $35,000,000 for an inflight         
   replanning upgrade, an increase of $16,000,000 for stealth enhancements,
   and an increase of $2,000,000 for a next generation bomber study.       
      With respect to the reduction associated with aircraft designated AV 
   3, the Committee notes that the AV 3 Block 30 modification budgeted in  
   fiscal year 2000 will now be delayed to future years to allow the       
   aircraft to serve as a test vehicle for JSOW, LO maintenance            
   improvements, SATCOM/DAMA, software updates, and JASSM integration.     
   These funds should be budgeted in the year of need.                     
      With respect to the next generation bomber study, the Committee      
   believes that the conflict in Kosovo has clearly demonstrated the value 
   of a highly capable bomber force. The Committee supports the Long Range 
   Air Power Panel recommendation that ``the Department develop a plan to  
   replace the existing force over time.'' However, the Committee notes    
   that the Air Force's Long Range Bomber Roadmap postpones the start of   
   any program to fulfill the requirements of such a plan until 2013. The  
   Committee believes this decision is unsupportable given the long-lead   
   times associated with bomber development programs. The Committee notes  
   that in the past several years, three different studies have each       
   indicated the need for additional bombers. These studies have recognized
   that bombers are force multipliers, providing the inherent advantage of 
   being able to carry large payloads over extremely long ranges.          
      The Committee further believes that the integration of precision     
   guided munitions on bombers provides a tremendous capability to attack  
   multiple targets per sortie at a fraction of the cost of using expensive
   cruise missiles. Accordingly, the Committee directs the Air Force to    
   study alternatives for modernizing the bomber force with new aircraft.  
   The Committee directs that this study include required capabilities,    
   required quantities, projected costs (by year, by appropriation and in  
   total), and nominal schedules for two alternatives: (1) a new design    
   bomber, and (2) a new ``low cost'' B 2 using acquisition reform measures
   and commercial best practices. The Committee believes RAND should review
   the Air Force assumptions, analysis, and conclusions and provide its    
   comments along with the Air Force report. Finally, the Committee directs
   that this report be provided no later than May 1, 2000.                 

                                 MILSTAR                                 

      The Air Force requested $361,308,000 for the MILSTAR program. The    
   Committee recommends $214,308,000, a net decrease of $147,000,000. The  
   Committee recommendation includes a $3,000,000 increase for integrated  
   satellite communication control and a $150,000,000 decrease to transfer 
   MILSTAR satellite procurement to the missile procurement account. The   
   Committee is concerned with the Air Force's compliance with past        
   legislation on this program. Over the last two years, Congress has      
   passed legislation preventing the use of research and development funds 
   to procure end-items for operational use unless these end-items are     
   required for testing purposes. Over these past two years, the Air Force 
   has ignored this provision of law with respect to the MILSTAR program   
   and has continued to budget and execute the program using research and  
   development funding. The Committee was further dismayed to learn that by
   incrementally funding satellite procurement along with various          
   development activities, the Air Force is now unable to determine an     
   accurate unit cost of the MILSTAR satellite recently lost. Therefore,   
   the Air Force has no way to determine a fair and reasonable cost for any
   MILSTAR satellite replacement. The Committee finds this lack of         
   accountability astonishing and is a perfect example of the dangers of   
   budgeting for procurement items in the research and development account.
   Accordingly, the Committee recommendation transfers the remaining       
   funding for MILSTAR satellite procurement to the Missile Procurement,   
   Air Force account and expects the Air Force to budget for MILSTAR and   
   other satellites not specifically needed as test articles in the        
   procurement accounts.                                                   
                                SBIRS HIGH                               

      The Air Force requested $328,653,000 for SBIRS High. The Committee   
   recommendation provides this amount. The Committee is concerned that the
   currently proposed Air Force production program maximizes hardware      
   concurrency, an unacceptably high risk acquisition approach. For        
   example, the Air Force proposes to procure hardware in fiscal year 2001 
   for the entire SBIRS High constellation (including all development and  
   production satellites), a full four years before launch and test of the 
   first development satellite. Parts for the fifth satellite are being    
   procured more than 4 years ahead of need and will presumably ``sit on a 
   shelf'' for these years. Given the significant remaining development    
   risk in this program, by all appearances such a highly concurrent       
   acquisition strategy is unwise, representing a potential ``rush to      
   failure'' that the Government would be well advised to avoid.           

      In addition, the proposed production program is incrementally funded,
   in violation of the long-standing ``full funding policy'' for           
   procurement. There is no sound reason to make an exception to this      
   long-standing and important acquisition principle for the SBIRS program.
   If the program is a priority, then it should be funded in the           
   traditional manner, with Air Force budget submissions and program       
   execution so configured.                                                
      Accordingly, the Committee directs that no more than $100,000,000 of 
   the funds provided for SBIRS High shall be obligated until the Secretary
   of Defense certifies that the production program complies with all DoD  
   full funding policies (including the prohibition against funding more   
   than 20% of the end-item cost using advance procurement) and that       
   program concurrency risk has been minimized through the use of          
   annualized production buys. The Committee further directs that          
   concurrent with the Secretary of Defense certification above, the       
   Director of Operational Test and Evaluation submit an assessment of     
   whether the SBIRS High acquisition strategy allows for adequate on-orbit
   testing prior to a final production decision.                           
                           DEVELOPMENT PLANNING                          

      The Air Force requested $5,696,000 for development planning. The     
   Committee specifically denies funding for this program. This program is 
   ostensibly intended to perform pre-milestone I studies and analysis in  
   order to transition projects into later phases of the acquisition       
   process. Though the FY 1999 President's Budget requested funding in this
   program for specific efforts which received subsequent appropriations,  
   the Committee has learned that the Air Force diverted these appropriated
   funds to an entirely different set of efforts without prior notification
   to congressional defense committees. Such diversion of funds is         
   inconsistent with the spirit, if not the letter, of Section 8111 of the 
   Fiscal Year 1999 Appropriations Act prohibiting initiation of new       
   programs without prior congressional notification. Though this abuse    
   alone would be sufficient justification to deny funding for this        
   line-item, the Committee further notes the program's failure to         
   transition projects into later phases of the acquisition process. The   
   Committee simply will not tolerate these abuses, and therefore          
   specifically denies all funding for this program.                       
                              F 16 SQUADRONS                             

      The Air Force requested $112,670,000 for F 16 squadron development.  
   The Committee recommends $152,670,000, an increase of $15,000,000 only  
   for jamming countermeasure improvements for F 16 aircraft. The Committee
   believes that the Air Force has not sufficiently prioritized the need to
   address advances in threat jamming techniques in its current fighters.  
   Consistent with the Department's strategy of maintaining Information    
   Dominance on the battlefield, the Committee believes it is critical to  
   maintain superiority in electronic counter countermeasures (ECCM) and   
   provides the additional funds to accelerate efforts in this area. The   
   Committee is further concerned about limitations in the combat range of 
   F 16s and encourages the Air Force to explore ways to increase this     
   range.                                                                  
                              F 15 SQUADRONS                             

      The Air Force requested $112,670,000 for F 15 squadron development.  
   The Committee recommends $152,670,000, an increase of $40,000,000. Of   
   the additional funds provided, $20,000,000 is only for F 15 service life
   extension and $20,000,000 is only for jamming countermeasure            
   improvements for F 15 aircraft as discussed in association with the F   
   16. The Committee understands that F 15 aircraft service life can be    
   extended to 16,000 flight hours without major structural modifications, 
   allowing the aircraft to stay in service well past 2015. To maximize the
   return on the nation's significant investment in this platform, the     
   Committee provides an additional $20,000,000 to ensure the aircraft     
   reaches its maximum economic service life.                              
                          SPACELIFT RANGE SYSTEM                         

      The Air Force requested $43,186,000 for the Spacelift Range System.  
   The Committee recommends $60,986,000, an increase of $17,800,000 which  
   includes $9,300,000 only to fund Air Force identified shortfalls in     
   on-going space range modernization and an additional $8,500,000 only to 
   prepare a comprehensive study of required modernization, upgrades, and  
   enhancement of existing space launch related facilities at Vandenberg   
   AFB and Edwards AFB. The Committee is deeply troubled with the pace,    
   scope, and cost of the space range modernization program. The space     
   launch ``business'' has changed dramatically in recent years, going from
   a ``design, test, fix, and retest'' approach dominated by relatively    
   infrequent government launches to a significant increase in launches    
   dominated by the commercial sector. Much of the equipment at the ranges 
   is 30 years old and manpower intensive and simply cannot support the    
   nation's space launch needs in an efficient manner. For years, range    
   modernization funds have been used as a funding ``source'' to address   
   other Air Force priorities. Now there appears to be growing recognition,
   both in and out of the Air Force, that the range problems must be fixed 
   quickly. For example, recommendation 24 of the Cox Commission report    
   states that it is in the national security interest of the United States
   to increase U.S. domestic launch capacity. In addition, the White House 
   has recently initiated a major review of the space ranges with          
   participation from DOD, NASA, and industry. The Committee further notes 
   that the Air Force unfunded priority list requests additional funds to  
   address range problems which the Committee has provided. The Committee  
   further recommends an increase of $8,500,000 for the state spaceport    
   authority to prepare a comprehensive study of required modernization,   
   upgrades, and enhancements of existing space launch related facilities  
   at Vandenberg AFB and Edwards AFB. The study shall include, but is not  
   limited to, engineering plans and designs for a universal launch        
   complex, solid rocket motor storage facility, hazardous structural test 
   systems, launch vehicle processing facility, and gas storage and        
   distribution system.                                                    
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 253 to 257 Insert here                                    



                  RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE        


                                                                               

                                                       

     Fiscal year 1999 appropriation         $9,036,551,000  
     Fiscal year 2000 budget request         8,609,289,000  
     Committee recommendation                8,930,149,000  
     Change from budget request               +320,860,000  

      This appropriation funds the Research, Development, Test and         
   Evaluation activities of the Department of Defense.                     
                                 COMMITTEE RECOMMENDATIONS                        

                          AUTHORIZATION CHANGES                          

      The Committee recommends the following changes to the budget request 
   in accordance with House authorization action.                          

                                                                                                              
                                           [In thousands of dollars]                                          

Item                                             Budget request    Committee recommendation    Change from  request  

     Advanced Concept Technology Demonstrations              117,969                      88,569                 -29,400  
     PATRIOT PAC-3                                            29,141                      77,641                 +48,500  
Industrial Preparedness                                   6,665                      10,415                  +3,750  


                                                                                                           PROJECT LEVEL CHANGES                                                                                                          
                                                                                                         [In thousands of dollars]                                                                                                        

                                                                                                                                                                                        Budget request     Recommended     Change from  request  

Defense Research Sciences                                                                                                                                                                       64,293          66,293                   +2,000  
University Research Initiatives                                                                                                                                                                216,778         227,278                  +10,500  
Chemical and Biological Defense Program                                                                                                                                                         31,386          45,386                  +14,000  
Next Generation Internet                                                                                                                                                                        40,000          41,000                   +1,000  
Support Technologies--Applied Research                                                                                                                                                          65,328          80,328                  +15,000  
Medical Free Electron Laser                                                                                                                                                                      9,719          12,000                   +2,281  
Historically Black Colleges and Universities (HBCU)                                                                                                                                             14,329          16,329                   +2,000  
 [Note: $2,000,000 is only for Hispanic-Serving Institutions (HSI).]                                                                                                                                                                              
Computing Systems and Communications Technology                                                                                                                                                322,874         330,874                   +8,000  
Extensible Information Systems                                                                                                                                                                  70,000          30,000                  -40,000  
Biological Warfare Defense                                                                                                                                                                     145,850         101,850                  -44,000  
Chemical and Biological Defense Program                                                                                                                                                         64,780          99,280                  +34,500  
Tactical Technology                                                                                                                                                                            137,626         137,626                           
Integrated Command and Control Technology                                                                                                                                                       31,296          43,996                  +12,700  
Materials and Electronics Technology                                                                                                                                                           235,321         248,821                  +13,500  
WMD Related Technology                                                                                                                                                                         203,512         215,512                  +12,000  
Explosives Demilitarization Technology                                                                                                                                                          11,183          22,383                  +11,200  
Counterterror Technical Support                                                                                                                                                                 52,223          57,223                   +5,000  
Support Technologies--Advanced Technology Development                                                                                                                                          173,704         196,317                  +22,613  
Chemical and Biological Defense Program--Advanced Development                                                                                                                                   40,910          45,910                   +5,000  
Special Technical Support                                                                                                                                                                       10,948          15,948                   +5,000  
Verification Technology Demonstration                                                                                                                                                           58,455          76,455                  +18,000  
Generic Logistics R&D Technology Demonstrations                                                                                                                                                 17,336          30,536                  +13,200  
Strategic Environmental Research Program                                                                                                                                                        53,506          59,506                   +6,000  
Advanced Electronics Technologies                                                                                                                                                              246,023         256,523                  +10,500  
High Performance Computing Modernization Program                                                                                                                                               159,099         167,099                   +8,000  
Sensor and Guidance Technology                                                                                                                                                                 232,319         182,658                   49,661  
Marine Technology                                                                                                                                                                               22,538          23,538                   +1,000  
Physical Security Equipment                                                                                                                                                                     37,107          25,792                  -11,315  
Joint Robotics Program                                                                                                                                                                          12,937          16,937                   +4,000  
Advanced Sensor Applications Program                                                                                                                                                            15,345          26,845                  +11,500  
Theater High-Altitude Area Defense System--TMD                                                                                                                                                  34,133         527,871                 +493,738  
Navy Theater-Wide Missile Defense System                                                                                                                                                       329,768         419,768                  +90,000  
 [Note: The Committee bill also provides $35,000,000 in additional funding for Navy Theater-Wide accleration to be derived from funds previously provided in Public Law 105 277.]                                                     *[+35,000]  
MEADS--DEM/VAL                                                                                                                                                                                  48,597               0                  -48,597  
National Missile Defense--DEM/VAL                                                                                                                                                              836,555         761,555                  -75,000  
National Missile Defense DEM/VAL                                                                                                                                                                                                        -75,000  
 [Note: The Committee bill also provides $75,000,000 in additional funding for National Missile Defense to be derived from funds previously provided in Public Law 105 277.]                                                          *[+75,000]  
Joint Theater Missile Defense--DEM/VAL                                                                                                                                                         195,722         200,722                   +5,000  
BMD Technical Operations                                                                                                                                                                       190,650         200,650                  +10,000  
International Cooperative Programs                                                                                                                                                              36,650          36,650                           
 [Note: The Committee bill also provides $45,000,000 in additional funding for the Arrow Third Battery to be derived from funds previously provided in Public Law 105 277.]                                                           *[+45,000]  
Chemical and Biological Defense Program--DEM/VAL                                                                                                                                                62,033          69,533                   +7,500  
Joint Systems Education and Training                                                                                                                                                                 0           5,000                   +5,000  
Humanitarian Demining                                                                                                                                                                           15,847          20,647                   +4,800  
Chemical and Biological Defense Program--EMD                                                                                                                                                   116,365         120,865                   +4,500  
Commercial Operations and Support Savings Initiative                                                                                                                                            16,976           8,000                   -8,976  
Theater High-Altitude Area Defense System--TMD--EMD                                                                                                                                            577,493               0                 -577,493  
Patriot PAC 3 Theater Missile Defense Acquisition--EMD                                                                                                                                          29,141          77,641                  +48,500  
 [Note: The Committee bill also provides $75,000,000 in additional funding for PAC 3 to be derived from funds previously provided in Public Law 105 277.]                                                                             *[+75,000]  
Navy Area Theater Missile Defense--EMD                                                                                                                                                         268,389         310,189                  +41,800  
DIMHRS                                                                                                                                                                                               0          41,200                  +41,200  
OSD Technical Studies and Assessments [Note: Consolidation of studies lines.]                                                                                                                        0          30,021                  +30,021  
Network Security                                                                                                                                                                                     0          12,000                  +12,000  
 [Note: The Department is directed to transfer funds provided for this project to the National Security Agency for execution.]                                                                                                                    
Defense Imagery and Mapping Program                                                                                                                                                             88,401         101,401                  +13,000  
C3I Intelligence Programs                                                                                                                                                                        9,480          15,480                   +6,000  
Manned Reconnaissance Systems                                                                                                                                                                    8,494          16,994                   +8,500  
Tactical Cryptologic Activities                                                                                                                                                                109,540         106,840                   -2,700  
Industiral Preparedness                                                                                                                                                                          6,665          10,415                   +3,750  
Special Operations Tactical Systems Development                                                                                                                                                106,671         149,370                  +42,699  
Special Operations Intelligence Systems Development                                                                                                                                              1,407           6,507                   +5,100  
SOF Medical Technology Development                                                                                                                                                               2,039           6,039                   +4,000  

*Funds noted in brackets are provided from within those provided for in Section 102 of division B, title 1, chapter 1 of Public Law 105 277.                                                                                             


                                       BASIC RESEARCH                             

                 CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM                 

      The Department requested $31,386,000 for Chemical and Biological     
   Defense basic research. The Committee recommends $45,386,000, an        
   increase of $14,000,000. Within this amount $1,000,000 is only for      
   chemical and biological detection programs, $10,000,000 is only for     
   laboratory-based and analytical threat assessment research at the U.S.  
   Army Medical Research Institute of Infectious Diseases (USAMRIID), and  
   $3,000,000 is only for chemical and biological point detectors.         
                                      APPLIED RESEARCH                            

               HISTORICALLY BLACK COLLEGES AND UNIVERSITIES              

      The Department requested $14,329,000 for Historically Black Colleges 
   and Universities. The Committee recommends $16,329,000, an increase of  
   $2,000,000. Within this amount, the Committee recommends an increase of 
   $2,000,000 only for a minority research program.                        
                      EXTENSIBLE INFORMATION SYSTEMS                     

      The Department requested $70,000,000 for Extensible Information      
   Systems. The Committee recommends $30,000,000, a decrease of            
   $40,000,000. The Committee recognizes the importance of advanced        
   computing capability for defense weapon systems and requirements.       
   However, the Committee notes that DARPA is requesting funds for three   
   new projects: deeply networked systems (AE 01), software for autonomous 
   systems (AE 02) and software for embedded systems (AE 03). The Committee
   believes that all three new technology areas have promise but notes that
   DARPA is requesting a 15 percent increase in overall computing          
   technology programs versus the prior year. The Committee therefore      
   recommends a total of $30,000,000 for these new programs. This is a 5   
   percent increase over the prior year level for computing technology     
   programs--including Next Generation Internet ($40 million), Computing   
   Systems and Communications Technology ($323.8 million) and Extensible   
   Information Systems ($30 million).                                      
                        BIOLOGICAL WARFARE DEFENSE                       

      The Department requested $145,850,000 for Biological Warfare Defense 
   programs. The Committee recommends $101,850,000, a decrease of          
   $44,000,000. Within this amount, the Committee recommends an increase of
   $4,000,000 only for aerogel special silica material technology and an   
   increase of $4,000,000 only for asymmetrical protocols for biological   
   warfare defense. In addition, the Committee recommends a decrease of    
   $12,000,000 for consequence management software as proposed in the      
   House-passed Defense Authorization bill. The Committee also notes that  
   the fiscal year 2000 request represents an approximately 77 percent     
   increase in the biological warfare defense program over last year's     
   enacted level. While the Committee believes that the additional emphasis
   is warranted, it is not sure that such a significant increase in funding
   can be executed properly.                                               
      In addition, the Committee notes that the Army Medical Research      
   Institute for Infectious Disease (USAMRIID) has significant experience  
   with known and emerging biological threat agents. Furthermore, the      
   Committee believes that USAMIIRD may be able to substantially enhance   
   the work being done within the DARPA program through additional         
   laboratory-based and threat assessment research--to include medical     
   countermeasures and novel approaches to emerging biological threat      
   agents. Therefore, as noted elsewhere in this report, the Committee     
   recommends an increase in the Chemical and Biological Program           
   appropriation for USAMRIID. The Committee believes that the Army        
   research program should supplement the DARPA Biological Warfare Defense 
   program and the Committee encourages collaboration between DARPA and    
   USAMRIID on emerging biological defense research.                       
                              ADVANCED TECHNOLOGY DEVELOPMENT                     

      CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADVANCED DEVELOPMENT      

      The Department requested $64,780,000 for Chemical and Biological     
   Defense advanced development. The Committee recommends $99,280,000, an  
   increase of $34,500,000. Within this amount, the Committee recommends an
   increase of $10,000,000 only for laboratory-based and analytical threat 
   assessment research and protocols to enhance biological defense, an     
   increase of $13,000,000 only for countermeasures to biological and      
   chemical threats, an increase of $3,000,000 only for safeguard, an      
   increase of $4,500,000 for chemical and biological point detectors and  
   an increase of $4,000,000 only for biological and chemical hazard       
   detection.                                                              
      The Committee recommends an increase of $13,000,000 only to establish
   a program to develop interdisciplinary research and training for        
   countermeasures to biological and chemical agents. The Committee        
   believes that such a program will provide a working infrastructure for  
   the scientific resources needed to improve countermeasures to chemical  
   and biological threats.                                                 
                  VERIFICATION TECHNOLOGY DEMONSTRATION                  

      The Department requested $58,455,000 for Verification Technology     
   Demonstration. The Committee recommends $76,455,000, an increase of     
   $18,000,000. Within this amount, the Committee recommends an increase of
   $6,000,000 only for nuclear detection analysis, and an increase of      
   $12,000,000 only for basic and applied research to support nuclear      
   testing. In addition, the Committee recommends from within available    
   funds $10,000,000 only for the center for monitoring research.          
      The Committee recommends an additional $6,000,000 only for the       
   Nuclear Treaty sub-element of the Verification Technology Demonstration 
   program, of which $2,500,000 is only for the continuation of an         
   industry-based program for developing systems using advances in solid   
   state nuclear detectors, processing electronics, and analysis software; 
   and $3,500,000 is only for the continuation of an industry-based program
   for the development of detection technologies and advanced analytical   
   and monitoring techniques.                                              
      Last year's nuclear tests in South Asia raise serious concerns about 
   the Department's ability to support a robust operational nuclear test   
   monitoring program. The Committee directs that $12,000,000 shall be     
   available only for peer-reviewed basic and applied research only to     
   support operational nuclear test monitoring. Of this amount, $4,000,000 
   shall be available only for peer-reviewed seismic research; and         
   $8,000,000 shall be available only for peer-reviewed basic              
   research--$7,000,000 of which is only for explosion seismology research.
   The Committee directs that the basic and applied seismic research       
   program address the specific prioritized research topics recommended to 
   the Department by the National Research Council.                        
      The Committee directs the Defense Threat Reduction Agency to award   
   these funds through a competitive peer panel review process; to         
   segregate the basic and applied research funds for this program into    
   clearly identifiable projects within the 6.1 and 6.2 budget categories; 
   and to improve integration of the basic and applied components of the   
   program. Further, the Committee directs the Department to provide by    
   December 1, 1999, a detailed report to the Committee on the plan for    
   obligating these funds. Finally, the Committee directs the Department to
   sustain funding for these activities in future budgets to ensure the    
   expertise needed in this critical operational program.                  
                ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS               

      The Department requested $117,969,000 for Advanced Concept Technology
   Demonstrations (ACTD). The Committee recommends $88,569,000, a decrease 
   of $29,400,000 as proposed in the House-passed Defense Authorization    
   bill.                                                                   
      The Committee notes that the goal of ACTDs is to get critical        
   technology into the field so that it can be expeditiously evaluated in  
   an operational environment. Although the Committee supports this idea in
   principle, the Committee remains concerned about the process of funding 
   these demonstrations. Furthermore, the Committee is concerned about     
   providing funds to the Department in advance of an explicit             
   justification of individual projects. The ACTD appropriation is provided
   with the understanding that the Department may make funds available for 
   specific projects without further notification to Congress. The         
   Department has argued that such fiscal flexibility is necessary in order
   to take advantage of emerging technologies and to field these           
   technologies expeditiously and it has consistently asked for increased  
   appropriations to expand ACTDs. However, the Committee has been         
   reluctant to approve increases because of the potential for abuse of    
   resources inherent in this program. Unfortunately, it has come to the   
   Committee's attention that such an abuse has occurred.                  
      The House Defense Appropriations Committee report for Fiscal Year    
   1999 contained a specific prohibition on the use of ACTD funds. The     
   report directed that ``none of these funds can be used for LOSAT or     
   EFOGM.'' Unfortunately, the Department willingly disregarded this       
   prohibition and proceeded to use $7,000,000 of Fiscal Year 1999 ACTD    
   funds for LOSAT. As discussed at the beginning of this report, this is  
   but one of an increasing number of instances where specific guidance    
   from the Congress has been ignored. Therefore the Committee recommends  
   its reduction to the budget request with prejudice, and expresses its   
   intent to deny future funding increases for ACTDs under this account.   
   The Committee cannot overstate its strong concern regarding this matter.
   Therefore, the Committee has included a general provision (Section 8118)
   that requires DOD to submit a report to the congressional defense       
   committees prior to the obligation of funds for all ACTD projects.      
                        BALLISTIC MISSILE DEFENSE                        

      The Department requested $3,672,822,000 for all ballistic missile    
   defense programs.                                                       
      The Committee bill provides for a total of $3,899,543,000 for all    
   ballistic missile defense programs. This amount includes $3,669,543,000 
   in new appropriations and $230,000,000 to be derived from funds         
   previously provided in Section 102 of division B, title I, chapter 1 of 
   Public Law 105 277. Of the new appropriations provided within this bill,
   a total of $2,970,009,000 is provided for research and development;     
   $355,900,000 is provided for procurement within the Ballistic Missile   
   Defense Organization (BMDO) budget; and, $343,634,000 is provided in Air
   Force research and development programs to include $308,634,000 for the 
   Airborne Laser and $35,000,000 for the Space-Based Laser. The Committee 
   bill provides the budgeted amount for the joint U.S.-Israel ARROW       
   anti-tactical ballistic missile development program, and also provides  
   for $45,000,000 to support deployment of a third ARROW battery. The     
   recommended amounts represent an increase of $226,721,000 over the      
   budget request of $3,672,822,000 for these programs.                    
   Changes to specific programs are summarized in the following table:     


                                                                                                              

                                                             Budget  request    Recommended    Change from  request  

Support Technologies--Applied Research                                65,328         80,328                 +15,000  
Support Technologies-Advanced Technology Development                 173,704        196,317                 +22,613  
Theater High-Altitude Area Defense systems--TMD                       34,133        527,871                +493,738  
Navy Theater Wide Missile Defense system                             329,768       +419,768                 +90,000  
MEADS--DEM/VAL                                                        48,597              0                 -48,597  
National Missile Defense--DEM/VAL                                    836,555        761,555                 -75,000  
National Missile Defense--DEM/VAL                                                                           -75,000  
Joint Theater Missile Defense--DEM/VAL                               195,722        200,722                  +5,000  
BMD Technical Operations                                             190,650        200,650                 +10,000  
International Cooperative Programs                                    36,650         36,650                          
Theater High-Altitude Area Defense systems--TMD--EMD                 577,493              0                -577,493  
Patriot PAC 3 Theater Missile Defense Acquisition--EMD                29,141         77,641                 +48,500  
Navy Area Theater Missile Defense--EMD                               268,389        310,189                 +41,800  

*Funds noted in brackets are provided from within those provided for in Section 102 of division B, title I, chapter 1, of Public Law 105 277.  

                 NATIONAL MISSILE DEFENSE SITE SELECTION                 

      The Committee is concerned about the growing ballistic missile threat
   and the implications of testing by North Korea of advanced ballistic    
   missiles. Furthermore, the Committee believes that potential deployment 
   options for the National Missile Defense system should be fully examined
   for their effectiveness in defending the U.S. against a potential       
   limited ballistic missile threat. Therefore, the Committee directs that 
   with the submission of the Fiscal Year 2001 budget, the Secretary of    
   Defense shall submit to the congressional defense committees a report   
   that contains an assessment of the advantages or disadvantages of       
   deploying a ground-based National Missile Defense system at more than   
   one site.                                                               
                THEATER HIGH ALTITUDE AREA DEFENSE (THAAD)               

      The Department requested $611,626,000 for the Theater High Altitude  
   Area Defense (THAAD) program. Of that amount, $527,871,000 is requested 
   for Demonstration and Validation and $83,755,000 is requested for       
   Engineering and Manufacturing Development (EMD). The Committee          
   recommends $527,871,000 for Demonstration and Validation and no funds   
   for Engineering and Manufacturing Development (EMD).                    
      The THAAD program has experienced serious problems--including        
   extensive delays, cost growth, and six consecutive intercept test       
   failures. However, the Committee believes that continued demonstration  
   and validation flight testing is necessary to verify that               
   ``hit-to-kill'' missile defense systems like THAAD will be effective    
   against the growing theater ballistic missile threat. While the         
   Committee is pleased that Flight Test 10 was successful in intercepting 
   a target last month, the Committee believes that THAAD should not       
   proceed to the next phase of acquisition until all exit criteria have   
   been met and that senior acquisition officials are confident that the   
   proposed system design will meet the needs of the military. Therefore,  
   the Committee recommends no funding for the EMD phase of the THAAD      
   program at this time.                                                   
                MEDIUM EXTENDED AIR DEFENSE SYSTEM (MEADS)               

      The Department requested $48,597,000 to continue the international   
   cooperative Medium Extended Air Defense System (MEADS) program. The     
   Committee denies the request. The Committee continues to be concerned   
   about several issues regarding the MEADS program and believes that these
   concerns have not been addressed in the proposed Fiscal Year 2000       
   budget.                                                                 
      The Committee recognizes the valid need for a mobile ground based    
   system for ballistic missile defense. In addition, it recognizes that a 
   multinational program could possibly meet both U.S. needs but also those
   of our NATO allies. However, the MEADS program, since its inception, has
   been inadequately funded, ill-defined, and as currently structured is   
   unlikely to meet the requirements of the military.                      
      To date, more than $100,000,000 has been appropriated for MEADS with 
   little more accomplished than a seemingly endless series of studies.    
   This pattern is repeated in the fiscal year 2000 request. Senior OSD    
   acquisition officials have told the Committee that the request of       
   $48,597,000 is nothing more than a planning wedge. The Department's lack
   of a strong commitment to this program is further evidenced by the      
   programming of only $146 million over the next three years for MEADS.   
   The GAO has recently reported that MEADS development costs alone are    
   estimated to be rougly $2 billion, with deployment costing approximately
   $12 billion. Under existing funding costraints, the Committee fails to  
   see how these funding requirements can be met without reducing          
   programmed funding and delaying the potential deployment of more mature 
   programs such as PAC-3, THAAD, and the Navy Area and Theater-Wide       
   programs. The Committe also notes the checkered record of other efforts 
   to launch multinational programs, and while recognizing the importance  
   of this program to our multinational partners it realizes such an effort
   raises a series of problems which previous multinational development    
   efforts failed to overcome. For such an ambitious undertaking as MEADS  
   to succeed, it will require a real commitment from all partners,        
   including the United States, as well as focused management and a solid  
   acquisition program.                                                    
      In addition to these serious programmatic issues, the Committee is   
   also greatly disturbed about fiscal irregularities regarding the use of 
   fiscal year 1999 funds. As indicated earlier in this report, officials  
   in the Office of the Secretary of Defense knowingly decided to expend   
   fiscal year 1999 funds to continue the MEADS program, in direct conflict
   with specific congressional direction. Furthermore, the Committee is    
   extremely disturbed that the funds used for MEADS were from the Air     
   Directed Surface to Air Missile, appropriations which according to DoD's
   own internal financial management documents were not available for such 
   purposes. In order to preclude a repeat of this experience, the         
   Committee bill includes new general provisions, which restores the funds
   diverted from the Air Directed Surface to Air Missile and also          
   implements the Committee's recommendation regarding fiscal year 2000    
   funds for MEADS.                                                        
      For the reasons cited, even though it acknowledges the operational   
   need for a program which meets the MEADS requiremet, the Committee      
   cannot support the MEADS program as currently constituted and therefore 
   denies the budget request.                                              
             RUSSIAN AMERICAN OBSERVATIONAL SATELLITE (RAMOS)            

      The Committee understands that the Ballistic Missile Defense         
   Organization, working with the Office of the Secretary of Defense, plans
   to make $16,000,000 of current and/or prior year funds available for the
   RAMOS program. The Committee directs that these funds shall be available
   only to continue the RAMOS satellite demonstration program.             
                            space-based laser                            

      The Department requested $75,000,000 and the Air Force requested     
   $63,840,000 for the Space Based Laser (SBL) program for a total program 
   of $138,840,000. The Committee recommends a total of $93,813,000, a     
   decrease of $16,187,000 from the Department's request and a decrease of 
   $28,840,000 from the Air Force request. The Committee believes that the 
   SBL is an interesting technology program but believes that the          
   Department has higher priority considerations and more immediate        
   requirements for space--including the Space-Based Infrared System       
   (SBIRS) High and Low programs. The Committee therefore recommends no    
   increase over the fiscal year 1999 budget request.                      
                      SENSOR AND GUIDANCE TECHNOLOGY                     

      The Department requested $232,319,000 for Sensor and Guidance        
   Technology. The Committee recommends $180,658,000, a net decrease of    
   $51,661,000. Within this amount, the Committee recommends an increase of
   $3,000,000 only for the large millimeter telescope, a decrease of       
   $4,000,000 for the low cost cruise missile defense initiative and a     
   decrease of $50,661,000 for the Discoverer II program.                  
                              DISCOVERER II                              

      The Department requested $50,661,000, the Air Force requested        
   $28,670,000 and the National Reconnaissance Office requested $29,150,000
   for the Discoverer II satellite technology demonstration program. The   
   Committee denies the request.                                           
      The Committee understands the Department's interest in developing and
   building a low-cost constellation of radar satellites to provide        
   tactical commanders with important information--including ground moving 
   target indication and terrain-mapping capability.                       
      However, while the Committee agrees that the goals of the Discover II
   program are laudable, it does not believe that they can realistically be
   achieved. The Committee is very concerned about the technological risk  
   in the program and the lack of a validated requirement. Furthermore, the
   Committee is extremely concerned that one of the principal goals of the 
   program--a low cost system--is highly unrealistic given the history of  
   space acquisition programs. The Committee notes that an Independent Cost
   Estimate (ICE) already concludes that the demonstration program would   
   cost approximately twice the original $600 million estimate.            
      Therefore, the Committee recommends no funding for the program and   
   directs that the Discoverer II program should be terminated.            
                       PHYSICAL SECURITY EQUIPMENT                       

      The Department requested $37,107,000 for Physical Security Equipment.
   The Committee recommends $25,792,000, a decrease of $11,315,000. The    
   Committee notes the budget request is a 44 percent increase over the    
   fiscal year 1999 enacted level. Therefore the Committee recommends a    
   reduction due to program growth.                                        
                            COALITION WARFARE                            

      The Department requested $12,781,000 for Coalition Warfare. The      
   Committee denies the request. This is a new start program that would    
   provide $12,781,000 to conduct Advanced Concept Technology              
   Demonstrations (ACTD) with U.S. allies. The Committee agrees with the   
   goal of increasing interoperability with coalition forces. However, the 
   Committee believes that the first priority must be to insure that U.S.  
   forces have the capability to be interoperable. Furthermore, the        
   Committee believes that issues of interoperability should be considered 
   in the normal course of planning and acquisition and does not believe   
   that the U.S. will gain substantially by after the fact measures to     
   force interoperability with allied forces. The Committee also notes that
   funding provided in this bill for the Joint Warfighting Experimentation 
   program should provide a basis for understanding and correcting problems
   with U.S. military joint operations and encourages the Department to    
   address and solve these issues before it tries to address the larger    
   problems related to coalition warfare.                                  
                 TECHNICAL STUDIES, SUPPORT AND ANALYSIS                 

      The Department requested a total of $40,861,000 for several different
   studies activities. These include $353,000 for Technical Studies,       
   Support and Analysis; $4,900,000 for Assessments and Evaluations;       
   $29,506,000 for Technical Studies, Support and Analysis; $588,000 for   
   Technical Studies, Support and Analysis; $2,215,000 for USD(A&T)        
   Critical Technology Support; and $3,299,000 for Industrial Capabilities 
   Assessments. The Committee recommends no funds for these studies lines. 
   However, the Committee recommends a new line for technical studies and  
   assessments and provides $30,021,000 for all technical studies, support 
   and analysis.                                                           
                 Strategic Environmental Research Program                

      The Department requested $53,506,000 for the Strategic Environmental 
   Research Program. The Committee recommends $59,506,000, an increase of  
   $6,000,000. Of this amount, $3,000,000 is only to continue the research,
   development and demonstration program devoted to health and safety      
   issues of environmental cleanup and shipyard workers and $3,000,000 is  
   only to continue the risk-based approach to research the effects of     
   toxic chemicals on human health and the environment to help establish   
   cleanup criteria for the Department's environmental cleanup sites.      

                DEFENSE IMAGERY AND MAPPING AGENCY PROGRAM               

      The Department requested $88,401,000 for the Defense Imagery and     
   Mapping Agency Program. The committee recommends $101,401,000, an       
   increase of $13,000,000. Of the additional amount provided by the       
   Committee, $5,000,000 is only for the National Technology Alliance (NTA)
   and $8,000,000 is only for NIMA's acquisition of an enterprise license  
   of the commercial off-the-shelf NIMA viewer and for the distribution and
   support of the NIMA Viewer to NIMA customers.                           
                    tri-service directed energy center                   

      The Committee requests the Air Force, as the lead for the Tri-Service
   Directed Energy Center (Tri-DEC), to further investigate the use of     
   non-lethal directed energy (DE) technologies for intelligence gathering 
   in the area of counter-proliferation to support the needs of the        
   services. The Air Force should give specific emphasis on technologies   
   that support the following areas:                                       
       1. Long range detection and identification of development,          
   production, and test of weapons of mass destruction;                    
    2. Detection and identification of illicit drug production;            

       3. Long range detection and characterization of battlefield use of  
   weapons of mass destruction; and,                                       
       4. Assessment of battle damage and the need for follow-up strikes   
   against underground storage facilities for weapons of mass destruction. 
             SPECIAL OPERATIONS TACTICAL SYSTEMS DEVELOPMENT             

      Special Operations MC 130 Combat Talon aircraft are required to      
   provide night, all-weather infiltration and extraction of Special       
   Operations personnel and equipment as well as the resupply of military  
   operations in hostile areas. The Committee is aware that the Autonomous 
   Landing Guidance System (ALG) may provide Special Operations Force      
   pilots with a precision approach system that enhances their ability to  
   descend into landing strips under adverse conditions. The Committee     
   encourages the U.S. Special Operations Command (USSOCOM) to investigate 
   the feasibility of equipping its aircraft with ALG and directs USSOCOM  
   to provide a report to the Committee not later than April 1, 2000 on the
   operational utility of incorporating this system into its Combat Talon  
   aircraft.                                                               
                     INFORMATION TECHNOLOGY PROGRAMS                     

      Information on the Joint Systems Education, Training Systems         
   Development and DIMHRS programs can be found in the Information         
   Technology section of this report.                                      
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 273 to 276 Inset here                                     


                         DEVELOPMENTAL TEST AND EVALUATION, DEFENSE               



                                                                               

                                                      

     Fiscal year 1999 appropriation          $258,606,000  
     Fiscal year 2000 budget request          253,457,000  
     Committee recommendation                 271,957,000  
     Change from budget request               +18,500,000  

      This appropriation funds the Developmental, Test and Evaluation      
   activities of the Department of Defense.                                
                                 COMMITTEE RECOMMENDATIONS                        


                                          PROJECT LEVEL CHANGES                                          
                                        [In thousands of dollars]                                        

                                                         Budget request    Recommended    Change from  request  

Central Test and Evaluation Investment Development              121,741        140,241                 +18,500  

                       CENTRAL TEST AND EVALUATION INVESTMENT PROGRAM             

      The Department requested $121,741,000 for Central Test and Evaluation
   Investment Program. The Committee recommends $140,241,000, an increase  
   of $18,500,000. Within this amount, $8,500,000 is only for the roadway  
   simulator, $5,000,000 is only for the airborne separation video system  
   and $5,000,000 is only for the Magdalena Ridge observatory program. The 
   Committee directs that none of the funds provided for the roadway       
   simulator may be made available for military construction.              
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 278 inset here                                            


                          OPERATIONAL TEST AND EVALUATION, DEFENSE                


                                                                               

                                                    

     Fiscal year 1999 appropriation         $34,245,000  
     Fiscal year 2000 budget request         24,434,000  
     Committee recommendation                29,434,000  
     Change from budget request              +5,000,000  

      This appropriation funds the Operational Test and Evaluation         
   activities of the Department of Defense.                                
                                 COMMITTEE RECOMMENDATIONS                        


                                             PROJECT LEVEL CHANGES                                            
                                           [In thousands of dollars]                                          

                                                Budget request    Change from  request    Committee  recommendation  

Live Fire Testing                                        9,832                  14,832                       +5,000  
Live fire testing and training initiative                                                                    +5,000  

                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 280 insert here                                           



                                           TITLE V                                

                               REVOLVING AND MANAGEMENT FUNDS                     

                               DEFENSE WORKING CAPITAL FUNDS                      


                                                                               

                                                    

     Fiscal year 1999 appropriation         $94,500,000  
     Fiscal year 2000 budget request         90,344,000  
     Committee recommendation                90,344,000  
     Change from budget request                          

      The Committee recommends an appropriation of $90,344,000 for the     
   Defense Working Capital Funds. The recommendation is a decrease of      
   $4,156,000 below the amount appropriated for fiscal year 1999.          
               DEFENSE REUTILIZATION AND MARKETING SERVICES              

      The Committee does not recommend including language, as proposed in  
   the budget request, allowing the transfer of Defense Stockpile sales    
   proceeds to the Defense Reutilization and Marketing Service (DRMS). The 
   Committee notes that this solution, like other recent funding schemes   
   for DRMS is a temporary measure; and would not last longer than five to 
   six years. The Committee directs that the Department of Defense continue
   funding the relevant portion of DRMS operations costs through the       
   surcharge included in the price of wholesale supply items until such    
   time as a permanent funding mechanism can be developed for DRMS.        
   Accordingly, the Committee directs the Secretary of Defense to provide a
   report to the congressional defense committees not later than March 31, 
   2000, which outlines a plan to provide funding for DRMS on a permanent  
   basis.                                                                  
                               NATIONAL DEFENSE SEALIFT FUND                      


                                                                               

                                                   

     Fiscal Year 1999 appropriation       $708,366,000  
     Fiscal Year 2000 budget request       354,700,000  
     Committee recommendation              729,700,000  
     Change from budget request           +375,000,000  

      This appropriation provides funds for the lease, operation, and      
   supply of prepositioning ships; operation of the Ready Reserve Force;   
   and acquisition of ships for the Military Sealift Command, the Ready    
   Reserve Force, and the Marine Corps.                                    
             LARGE MEDIUM SPEED ROLL-ON/ROLL-OFF (LMSR) SHIPS            

      In fiscal years 1995 and 1997, Congress appropriated funds for       
   conversion of three commercial ships for the Marine Corps' Maritime     
   Prepositioning Fleet Enhancement (MPF E). These ships were a direct     
   response to lessons-learned from Operation Desert Storm, and have a     
   significant impact on the warfighting ability of the Marine Corps. Late 
   last year, it became evident that the program was not viable under the  
   existing plan. Cost increases/overruns have occurred on the first two   
   MPF E ships, and the procurement for the third ship was canceled. This  
   has left a major void in the combat prepositioning capability of the    
   Marine Corps.                                                           
      The Defense Department has a successful program to build 14          
   new-construction prepositioning ships for the Army. These Large Medium  
   Speed Roll-on/Roll-off (LMSR) ships have much more capability and a     
   significantly longer life than the used commercial ships that the Marine
   Corps originally envisioned for the MPF E mission. The Committee        
   understands that one of the Army ships can be reconfigured for the      
   Marine Corps mission and fielded within a year. The Committee believes  
   reconfiguring this ship immediately to meet one-third of the Marine     
   Corps' prepositioning enhancement requirement and replacing the diverted
   Army capability with a new LMSR to be delivered in the mid-term provides
   the best mix of sealift assets to increase warfighting capability. The  
   Committee directs that an existing LMSR ship be transferred to the      
   Marine Corps. The Committee recommends $320,000,000 for procurement of  
   one additional LMSR ship for prepositioning of Army materiel. The       
   Committee also recommends $30,000,000 to convert an existing LMSR ship  
   to the Marine Corps MPF E specifications.                               
           MARITIME PREPOSITIONING FORCE ENHANCEMENT CONVERSION          

      The Navy recently notified Congress of a second episode of           
   significant cost growth for the conversion a used commercial ship to    
   meet Marine Corps Maritime Prepositioning Force Enhancement             
   requirements. In section 8083 of the Committee bill, the Committee has  
   transferred $38 million of previously appropriated funds within the     
   National Defense Sealift Fund as requested by the Navy so that the      
   conversion can continue without disruption.                             
                        NATIONAL DEFENSE FEATURES                        

      The commercial shipping industry is contemplating the construction of
   a new class of high-speed, high-capacity sealift ships for cargo routes 
   in the North Atlantic ocean. Should such ships be constructed in the    
   United States, the Committee believes they could also provide much      
   needed fast sealift capability for the U.S. military and would be       
   excellent candidates for the defense features program. This program     
   provides funding by the Department of Defense so that commercial ships  
   constructed in the United States are to be built in a manner to         
   facilitate their use by the military during a national emergency. This  
   can provide substantial cost savings over existing and traditional      
   sealift capability. Should the United States Maritime Administration    
   (MARAD) approve loan guarantees for construction of such commercial     
   ships, the Committee directs that the Department of Defense report to   
   the congressional defense committees within one month of the MARAD      
   approval on the feasibility, cost-effectiveness, desirability, and cost 
   to the Department of Defense for installation and life cycle maintenance
   of such features in those ships.                                        
               DOD REQUIREMENTS FOR COMMERCIAL TANKER SHIPS              

      The Committee is concerned that the Department of Defense has not    
   determined with sufficient precision the extent to which it may have to 
   request the U.S. Maritime Administration to requisition former U.S.     
   government-owned tankers to meet defense needs in the event of a        
   national emergency. The Department of Defense must have an adequate     
   tanker capacity to draw upon in a national emergency. On the other hand,
   commercial shipping companies should not be unduly burdened with        
   requisition and other conditions on use of their tanker ships that are  
   in excess of legitimate defense needs. The Committee is most concerned  
   about tanker ships which are more than 25 years old, the generally      
   accepted useful life of a tanker ship, and whether the Maritime         
   Administration is being too restrictive in prohibiting the disposition  
   of ships that have exceeded their useful life estimates due to          
   uncertainty over Department of Defense actual requirements. The         
   Committee directs that the Secretary of Defense submit a report to the  
   congressional defense committees by February 1, 2000 on the Department's
   requirements and criteria for maintaining government control on         
   commercial tanker ships which have exceeded their estimated useful      
   lives.                                                                  
               MASSACHUSETTS MARITIME ACADEMY TRAINING SHIP              

      The Committee recommends $25,000,000 only for the Department of      
   Defense to upgrade a ship for the Ready Reserve Force that can also be  
   used as a training ship for Massachusetts Maritime Academy cadets. These
   funds would be used to convert an existing vessel in the Department of  
   Defense Ready Reserve Force into a training ship for Academy's maritime 
   cadet during peacetime which also serves as a Ready Reserve Force troop 
   ship for use during national emergencies. The current ship that the     
   Department of Defense uses for these dual purposes has been deemed      
   unsuitable due to its material condition. The Commander in Chief of the 
   U.S. Transportation Command recently approved the upgrade of a ship     
   already in the DOD inventory on an interim basis but that ship is ported
   on the west coast and is too small for the wartime troop carrying       
   mission, leaving a significant gap in the Defense Department's sealift  
   capability for wartime. The Committee directs the Secretary of Defense  
   to include any additional funds beyond those contained in this bill     
   needed to complete the ship in the fiscal year 2001.                    
                           SEALIFT SHIP LEASES                           

      The Committee notes that no funds were requested in the National     
   Defense Sealift Funds for leases of ships which involve new             
   construction, and therefore none of the funds in this Act are available 
   for such leases.                                                        

                                          TITLE VI                                

                            OTHER DEPARTMENT OF DEFENSE PROGRAMS                  

                                   DEFENSE HEALTH PROGRAM                         


                                                                               

                                                        

     Fiscal year 1999 appropriation         $10,149,872,000  
     Fiscal year 2000 budget request         10,834,657,000  
     Committee recommendation                11,078,417,000  
     Change from budget request                +243,760,000  

      This appropriation funds the Defense Health Program activities of the
   Department of Defense.                                                  
                                 COMMITTEE RECOMMENDATIONS                        


                               PROJECT LEVEL CHANGES                               
                             [In thousands of dollars]                             

                                 Budget  request     Recommended    Change from  request  

Operation and Maintenance             10,477,687      10,471,447                  -6,240  

                          DEFENSE HEALTH PROGRAM                         

      The Department requested $10,834,657,000 for the Defense Health      
   Program, of which $10,477,687,000 is for operation and maintenance and  
   $356,970,000 is for procurement. The Committee recommends               
   $11,078,417,000, a net increase of $243,760,000. Of this amount         
   $10,471,447,000 is for operation and maintenance, $356,970,000 is for   
   procurement and $250,000,000 is only for research and development.      
                          PEER REVIEWED RESEARCH                         

      Once again, the Administration requested no funds for breast cancer  
   and prostate cancer peer-reviewed research programs. The Committee      
   recommends $175,000,000 for the Army peer-reviewed breast cancer        
   research program, and $75,000,000 for the Army peer-reviewed prostate   
   cancer research program.                                                
                   TRICARE CONTRACTS AND PHARMACY COSTS                  

      The Committee notes that the Defense Health Program budget request is
   significantly higher than in prior years. In fact, the DHP budget       
   request represents over a six percent increase over the fiscal year 1999
   level. The Committee is pleased that the Department has fully funded the
   Defense Health Program, has recognized the impact of technology and     
   pharmaceutical costs on the military health care budget, and that it has
   proposed increases in funding for these purposes.                       
      However, the Committee also understands that various trends in       
   pharmaceutical use, to include cost shifting, may be having an adverse  
   and unanticipated impact on existing TRICARE contracts. In addition,    
   these increases have not been accounted for under existing TRICARE      
   contracts nor are they reflected in the budget request.                 
      Therefore, where it can be demonstrated that increases in            
   pharmaceutical costs could not be anticipated by a contractor at the    
   time of the initial contract award, the Committee believes the          
   Department and its TRICARE vendors should work together to make         
   arrangements for equitable adjustment.                                  
      However, the Committee also recognizes that there is no conclusive   
   study that attributes increases in the cost of care provided under      
   TRICARE contracts solely to increases in pharmaceutical costs.          
   Therefore, the Committee directs the Assistant Secretary of Defense for 
   Health Affairs to provide a report on the impact of pharmaceutical costs
   on TRICARE contracts to the congressional defense committees no later   
   than February 1, 2000. The report should evaluate and review civilian   
   contractor and government data to determine the actual reasons for the  
   increases in health care costs. If it is determined that cost shifting  
   is a primary reason for the increase in pharmacy costs, the Department  
   is directed to take steps to ensure that requests for equitable         
   adjustment are promptly and fairly considered.                          
                              Custodial Care                             

      The Committee recommends a general provision (section 8122)          
   clarifying the definition of ``custodial care'' for the provision of    
   health care to military families with complex medical needs. The        
   Committee strongly disagrees with the Department's decision to interpret
   the custodial care exclusion to include medically necessary skilled care
   and thereby transition this care to Medicaid. The Committee intends that
   the military health care system interpret the custodial care exclusion  
   in a manner consistent with other federal programs (FEHBP and Medicare) 
   and related case law. The Committee intends that the military health    
   care system continue to provide for the needs of patients with          
   exceptionally serious, long range, and incapacitating physical or mental
   conditions in a manner fully consistent with the direction provided in  
   section 726 of P.L. 102 484, and in P.L. 97 377. The Committee expects  
   the Department to redesign its case management program to ensure that:  
   (a) members and former members of the uniformed services, and their     
   dependents and survivors, have access to all medically necessary health 
   care through the health care delivery system of the uniformed services  
   regardless of the age or health care status of the person seeking the   
   health care; and (b) military families do not have to resort to         
   Medicaid, welfare or charity programs for the provision of medically    
   necessary health care services.                                         
                            FATIGUE MANAGEMENT                           

      The Committee commends the Department for its efforts to better      
   understand the risks of fatigue and the impact of fatigue on safety. The
   Committee believes a department-wide fatigue management initiative,     
   designed to minimize accidents, injuries, and fatalities associated with
   fatigue has merit and should be considered for implementation of such a 
   program. The initiative should include research on non-amphetamine      
   treatments.                                                             
                          JOINT DIABETES PROJECT                         

      The Committee has provided $14,000,000 in the Army (603002A) for     
   continued funding for the Joint Diabetes Project, as presented in       
   testimony before the Committee. These funds are to be equally divided   
   between the participating institutions. The project will reduce         
   suffering and costs associated with diabetes and related complications  
   for DOD personnel and dependents, utilizing the partnership's advanced, 
   state-of-the-art expertise and strengths in the areas of diabetes       
   research, detection, prevention and managed care protocol (clinical     
   practice guidelines).                                                   
                         CERVICAL CANCER TESTING                         

      The Committee strongly urges the Department to investigate emerging  
   methods to better test for, prevent, and treat cases of cervical cancer.
   In 1999, there were an estimated 12,800 new cases of cervical cancer and
   4,800 cervical cancer deaths in the United States. It has clearly been  
   shown that this cancer is more than 90 percent curable if it is detected
   in the early stages. The Committee is aware of new testing techniques   
   combining tests for the human papillomavirus (HPV) and conventional pap 
   tests that can provide a new dimension to the cervical cancer screening 
   process. The Committee is also aware of promising clinical trials of a  
   new HPV 16 vaccine at the National Cancer Institute, which could        
   potentially prevent the spread of the type of HPV found in 50 percent of
   cervical cancers. The Committee directs the Assistant Secretary of      
   Defense (Health Affairs) to report to the congressional defense         
   committees by no later than January 31, 2000 on actions taken in the    
   military health system to establish a systematic program for early      
   detection and prevention of cervical cancer using the most modern and up
   to date screening methods.                                              
                             GULF WAR ILLNESS                            

      The Committee concurs with the findings of a recent GAO report on    
   squalene antibodies and is concerned by the Department's reluctance to  
   test for squalene antibodies since squalene is a potential contributing 
   factor in illnesses of veterans of the Persian Gulf War. The Secretary  
   of Defense is directed to develop and/or validate the assay to test for 
   the presence of squalene antibodies. A report detailing the proposals to
   carry out this requirement shall be submitted to the Committee by       
   January 1, 2000.                                                        
                  COMPUTER BASED MODELING IN HEALTH CARE                 

      The Committee believes that computer based modeling and simulation   
   capabilities may assist military health planners to assess the cost,    
   access and quality impacts of reengineering delivery processes, delivery
   of protocols, and insertion of technology before committing vital       
   resources. The Committee urges the Department to consider these         
   management tools.                                                       
                      CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY             


                                                                               

 ,                                                    

     Fiscal year 1999 appropriation          $780,150,000  
     Fiscal year 2000 budget request        1,169,000,000  
     Committee recommendation                 781,000,000  
     Change from budget request              -388,000,000  

                                 COMMITTEE RECOMMENDATIONS                        

                            Program Reductions                           

      The Army requested $1,169,000,000 for Chemical Agents and Munitions  
   Destruction, Army. The Committee recommends $781,000,000, a decrease of 
   $388,000,000. Of the decrease, $4,500,000 is taken with prejudice       
   against program management consultants. Of the funds available,         
   $75,303,000 shall be transferred to the Federal Emergency Preparedness  
   Program to provide off-post emergency response and preparedness         
   assistance to the communities surrounding the eight continental United  
   States chemical storage and disposal sites.                             
      The Chemical Agents and Munitions Destruction Program, Army mission  
   is to safely destroy all U.S. chemical warfare munitions and related    
   materiel while ensuring maximum protection of the public, personnel     
   involved in the destruction effort, and the environment. The Committee  
   commends the Army for its efforts in destroying chemical munitions in a 
   safe manner. As of March 17, 1999, over 13.5 percent, or 4,259 tons, of 
   the stockpile has been destroyed. Currently there are two sites         
   operational and five sites in the design phase. Despite the fact that   
   two additional sites are on hold until completion of the Assembled      
   Chemical Weapons Assessment Demonstration, the Committee is hopeful that
   the U.S. will meet the deadline of April 2007 for the destruction of    
   chemical munitions as called for by the Chemical Weapons Convention.    
      Although the Committee is extremely supportive of this important     
   national program, it is troubled at the lack of management and financial
   oversight exercised by both the Army and OSD on such a large program. In
   earlier years, the Committee expressed its concern because the chemical 
   munitions destruction program was plagued by cost growth and schedule   
   delays. It appears as if the DoD has made an attempt to rectify cost and
   schedule issues by managing the program as an Aquisition Category 1     
   program. The Committee hopes that this action will allow the Army better
   control over the schedule and costs in the future.                      
      The Committee is aware that the chemical agents and munitions program
   uses the practice of budgeting in advance of need and uses funds outside
   of the funded delivery period. As a result, the funds are often         
   obligated later than anticipated.                                       
      The Committee remains concerned over the extremely slow obligation   
   and expenditure rates for the chemical munitions destruction program.   
   Recently, the Committee has learned that its concerns are valid.        
      Through an internal DoD comptroller memorandum, the Committee has    
   learned that the chemical agents and munitions program uses unique and  
   questionable budget execution actions. Not only are there large         
   unexpended and unobligated balances of prior year funds, but the budget 
   request is $388 million higher than last year's appropriated amount.    
   Since not only the Committee, but also the Office of the Secretary of   
   Defense Comptroller's staff, can not determine the validity of the      
   program's prior year obligations, the Committee recommends the program  
   be held at last year's level.                                           
      The Committee is disturbed to learn that individuals employed by the 
   Department of Defense have visited the Congress with paid consultants to
   ``promote'' the chemical agents and munitions destruction program.      
   Therefore, the Committee recommends the decrease in program management  
   for consultants.                                                        
      Given the questionable budget execution and management activities,   
   the Committee directs that the DoD Inspector General and the General    
   Accounting Office report to the Congress no later than March 15, 2000 on
   the chemical agents and munitions destruction program.                  
                           ALTERNATIVE METHODS                           

      The Committee recognizes the proximity of densely populated areas and
   the importance of safely and completely destroying chemical munitions   
   such as those stored in the Bluegrass Army Depot. The Committee directs 
   the Army to proceed in a timely manner to complete the evaluation of the
   merits of all practical methods, including alternatives to incineration,
   that may effectively and efficiently dispose of stored chemical         
   ordnance.                                                               
                                    PROGRAM RECOMMENDED                           

      The total amount recommended in the bill will provide the following  
   in fiscal year 2000:                                                    

   Offset Folios 289 Insert here                                           


                   DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE         


                                                                               

                                                      

     Fiscal year 1999 appropriation          $735,582,000  
     Fiscal year 2000 budget request          788,100,000  
     Committee recommendation                 883,700,000  
     Change from budget request               +95,600,000  

      This appropriation provides funds for Military Personnel; Operation  
   and Maintenance; Procurement; Research, Development, Test and           
   Evaluation; and Military Construction for drug interdiction and         
   counter-drug activities of the Department of Defense.                   
                                 COMMITTEE RECOMMENDATIONS                        

      The Department of Defense requested $788,100,000 for Drug            
   Interdiction and Counter-Drug Activities. The Committee recommends      
   $883,700,000, an increase of $95,600,000.                               
                          Authorization Changes                          

      The Committee recommends the following changes in the budget request 
   in accordance with House authorization action:                          

                                                                                                       
                                       [In thousands of dollars]                                       

Item                                      Budget request    Committee recommendation    Change from  request  

Operation Caper Focus                                  0                       6,000                  +6,000  
Wide Aperture Radar Facility                           0                      17,500                 +17,500  
Southwest Border Fence                                 0                       6,000                  +6,000  
P 3 Forward Looking Infrared Radars                    0                       2,700                  +2,700  
Tethered Aerostat Radar System                    40,489                      31,689                  -8,800  

                     SUMMARY OF COMMITTEE ADJUSTMENTS                    


          [In thousands of dollars]                                               



          National Guard counter-drug support                +20,000



          Gulf States Initiative                +10,000



          Regional Counter-drug Training Academy                +2,000



          Northeast Regional Counter-drug Training Center                +2,000



          Counter-narcotics Center at Hammer                +2,000



          Other Joint Military Intelligence Programs                +6,000



          Observation Aircraft           +4,000



          Mothership Operations                +3,500



          Lake County HIDTA              +1,000



          Appalachian HIDTA              +3,200



          Multi-Jurisdictional Counter-drug Task Force                +4,000



          Southwest Border States Initiative                +6,000



          National Interagency Counter-drug Institute                +2,000



          Young Marines                  +1,500



          A 10 Logistical and Demilitarization Support                +5,000


                       FORWARD OPERATING LOCATIONS                       

      In the ``Drug Interdiction and Counter-Drug Activities, Defense''    
   appropriations account, the Department requested $59,555,000 to         
   establish Forward Operating Locations (FOLs) in Central and South       
   America including $42,800,000 for Military Construction to establish    
   these new facilities. The Committee recommends the budget request.      
   However, it directs that none of the funds can be used for Military     
   Construction at an FOL until a formal binding long-term agreement which 
   specifies the extent, use of, and host nation support for, the forward  
   operating location is executed by both the host nation and the United   
   States.                                                                 
      As a consequence of the Panama Canal Treaty, U. S. Forces are        
   required to fully withdraw from the Republic of Panama by December 31,  
   1999 and Howard AFB will no longer be available as the principal        
   operating location for Counter-drug operations in Central and South     
   America. Negotiations for the continued use of Howard AFB beyond 1999   
   failed shortly before the budget was submitted. The Commander-in-Chief  
   U.S. Southern Command (CINCSOUTH) plans to restructure his theater      
   counter-drug concept of operations by establishing FOL staging areas at 
   Liberia, Costa Rica; Manta, Ecuador; and Curacao and Aruba as           
   replacements for Howard AFB. U.S. Forces are currently operating out of 
   Curacao, Aruba, and Ecuador under interim agreements.                   
      The Committee commends the Department and CINCSOUTH for their ability
   to begin operations so quickly and successfully at three of the four    
   sites after suspending operations at Howard AFB on May 1, 1999. The     
   Committee notes that an agreement to use the Costa Rica FOL has not been
   achieved. Therefore, the Departments of Defense and State are encouraged
   to seek another location to cover the area previously identified with   
   that site as soon as possible.                                          
      The Committee is concerned that the military construction costs      
   identified in the budget have grown substantially, and are still not    
   stable. The Committee has been assured by the CINCSOUTH that these      
   estimates will stabilize below the current estimate of $122,500,000 over
   the next two fiscal years.                                              

      The Committee would not normally provide Military Construction funds 
   in the DoD appropriations bill as proposed in the budget. It does so    
   this year only following consultation with, and with the approval of,   
   both the Military Construction Appropriations Subcommittee and the House
   Armed Services Committee. This one-time recommendation is an effort to  
   facilitate and expedite plans the CINCSOUTH has made to protect the     
   substantial investment the Committee has made above the budget in the   
   past to stem the flow of drugs to the United States from the source zone
   and through the transit zone. The Committee, however, directs that      
   future requests for Military Construction funding be contained in budget
   requests for Military Construction consistent with past practices.      
                          Fingerprint Operations                         

      The Committee is aware of a proposal to install and demonstrate      
   contactless fingerprint device systems in drug theater corridors of the 
   U.S.-Mexico border region. The Committee believes that such devices,    
   once fully certified by the Federal Bureau of Investigation, have the   
   potential to enhance the identification of drug traffickers, reduce     
   costs, and reduce the time required to process Federal, State and local 
   government drug suspects throughout the region. The Committee encourages
   the Department of Defense, in conjunction with the Justice Department,  
   to carry out a broad-based demonstration of contactless fingerprint     
   device systems in those areas where the drug trafficking threat is most 
   acute.                                                                  
                C 26 Aircraft Photo Reconnaissance Upgrade               

      In fiscal year 1998 and 1999, the Committee provided $9,500,000 to   
   upgrade counter-drug C 26 aircraft with an improved photo reconnaissance
   capability. The Committee is concerned that this program has not yet    
   begun and directs the National Guard to expedite delivery of this       
   enhanced mission capability to C 26 counter-drug aircraft.              
                               DRUG TESTING                              

      The Committee is aware of a number of new technologies in the drug   
   testing area which have the potential to provide immediate, onsite      
   results, at less cost than existing systems. In view of the significant 
   existing expenditures by the Department of Defense and the services to  
   carry out drug testing, the Committee encourages the Department to      
   conduct an evaluation of available testing systems and technologies to  
   determine if the methods currently in use by the DoD are the most       
   cost-effective and efficient.                                           
               A 10 Logistical and Demilitarization Support              

      The Committee recommends $5,000,000 only to provide logistical and   
   demilitarization support for the transfer of three excess A 10 aircraft 
   from the Aircraft Maintenance Regeneration Center for loan to the Bureau
   of International Narcotics and Law Enforcement Affairs of the Department
   of State to support international drug eradication and interdiction     
   efforts.                                                                
                              OFFICE OF THE INSPECTOR GENERAL                     


                                                                               

                                                     

     Fiscal year 1999 appropriation         $132,064,000  
     Fiscal year 2000 budget request         140,844,000  
     Committee recommendation                140,844,000  
     Change from budget request                           

      The Committee recommends an appropriation of $140,844,000 for the    
   Office of the Inspector General. The recommendation is an increase of   
   $8,780,000 above the amount appropriated for fiscal year 1999.          

                                          TITLE VII                               

                                      RELATED AGENCIES                            

                           NATIONAL FOREIGN INTELLIGENCE PROGRAM                  


                               INTRODUCTION                              

      The National Foreign Intelligence Program consists of those          
   intelligence activities of the government which provide the President,  
   other officers of the Executive Branch, and the Congress with national  
   foreign intelligence on broad strategic concerns bearing on U.S.        
   national security. These concerns are stated by the National Security   
   Council in the form of long-range and short-range requirements for the  
   principal users of intelligence.                                        
      The National Foreign Intelligence Program budget funded in the       
   Department of Defense Appropriations Act consists primarily of resources
   for the Central Intelligence Agency, Defense Intelligence Agency,       
   National Reconnaissance Office, National Security Agency, National      
   Imagery and Mapping Agency, intelligence services of the Departments of 
   the Army, Navy and Air Force, Intelligence Community Management Staff   
   and the CIA Retirement and Disability System Fund.                      
                             CLASSIFIED ANNEX                            

      Because of the highly sensitive nature of intelligence programs, the 
   results of the Committee's budget review are published in a separate,   
   detailed and comprehensive classified annex. The intelligence community,
   Department of Defense and other organizations are expected to comply    
   fully with the recommendations and directions in the classified annex   
   accompanying the fiscal year 2000 Defense Appropriations Bill.          
             CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND    


                                                                               

                                                    

     Fiscal year 1999 appropriation        $201,500,000  
     Fiscal year 2000 budget request        209,100,000  
     Committee recommendation               209,100,000  
     Change from budget request                          

      This appropriation provides payments of benefits to qualified        
   beneficiaries in accordance with the Central Intelligence Agency        
   Retirement Act of 1964 for Certain Employees (P.L. 88 643). This statute
   authorized the establishment of a CIA Retirement and Disability System  
   (CIARDS) for a limited number of CIA employees, and authorized the      
   establishment and maintenance of a fund from which benefits would be    
   paid to those beneficiaries.                                            
                                  COMMITTEE RECOMMENDATION                        

      The Committee recommends $209,100,000 for the Central Intelligence   
   Agency Retirement and Disability Systems Fund (CIARDS). The             
   recommendation is the same as the budget request and $7,600,000 above   
   the amount appropriated in fiscal year 1999.                            

                         INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT                


                                                                               

                                                    

     Fiscal year 1999 appropriation        $129,123,000  
     Fiscal year 2000 budget request        149,415,000  
     Committee recommendation               144,415,000  
     Change from budget request              -5,000,000  

      This appropriation provides funds for the activities that support the
   Director of Central Intelligence (DCI) and the Intelligence Community.  
                                  COMMITTEE RECOMMENDATION                        

      The budget requested $149,415,000 for the Intelligence Community     
   Management Account. The Committee recommends $144,415,000, a decrease of
   $5,000,000. Details of adjustments to this account are included in the  
   classified annex accompanying this report.                              
          PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND ENVIRONMENTAL 
                                RESTORATION FUND                                  

                                                                               

                                                    

     Fiscal year 1999 appropriation         $25,000,000  
     Fiscal year 2000 budget request         15,000,000  
     Committee recommendation                15,000,000  
     Change from budget request                          

      The Committee recommends an appropriation of $15,000,000 for Payment 
   to Kaho'olawe Island Conveyance, Remediation, and Environmental         
   Restoration Fund. The recommendation is a decrease of $10,000,000 below 
   the amount appropriated for fiscal year 1999.                           
                           NATIONAL SECURITY EDUCATION TRUST FUND                 


                                                                               

                                                  

     Fiscal year 1999 appropriation        $3,000,000  
     Fiscal year 2000 budget request        8,000,000  
     Committee recommendation               8,000,000  
     Change from budget request                        

      The National Security Education Trust Fund was established to provide
   scholarships and fellowships to U.S. students to pursue higher education
   studies abroad and grants to U.S. institutions for programs of study in 
   foreign areas and languages.                                            
                                  COMMITTEE RECOMMENDATION                        

      The Committee recommends $8,000,000 for the National Security        
   Education Trust Fund. This recommendation is the same as the budget     
   request and $5,000,000 above the amount appropriated in fiscal year     
   1999.                                                                   

                                         TITLE VIII                               

                                     GENERAL PROVISIONS                           

      The accompanying bill includes 129 general provisions. Most of these 
   provisions were included in the Department of Defense Appropriations Act
   for fiscal year 1999 and many have been included in the Defense         
   Appropriations Act for a number of years.                               
      Actions taken by the Committee to amend last year's provisions or new
   provisions recommended by the Committee are discussed below or in the   
   applicable section of the report.                                       
                        DEFINITION OF PROGRAM, PROJECT AND ACTIVITY               

      For purposes of the Balanced Budget and Emergency Deficit Control Act
   of 1985 (Public Law 99 177) as amended by the Balanced Budget and       
   Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100 119)
   and by the Budget Enforcement Act of 1990 (Public Law 101 508), the     
   following information provides the definitions of the term ``program,   
   project, and activity'' for appropriations contained in the Department  
   of Defense Appropriations Act. The term ``program, project, and         
   activity'' shall include the most specific level of budget items,       
   identified in the Department of Defense Appropriations Act, 1999, the   
   accompanying House and Senate Committee reports, the conference report  
   and accompanying joint explanatory statement of the managers of the     
   Committee on Conference, the related classified reports, and the P 1 and
   R 1 budget justification documents as subsequently modified by          
   Congressional action.                                                   
      In carrying out any Presidential sequestration, the Department of    
   Defense and agencies shall conform to the definition for ``program,     
   project, and activity'' set forth above with the following exception:   
      For Military Personnel and the Operation and Maintenance accounts the
   term ``program, project, and activity'' is defined as the appropriations
   accounts contained in the Department of Defense Appropriations Act.     
      The Department and agencies should carry forth the Presidential      
   sequestration order in a manner that would not adversely affect or alter
   Congressional policies and priorities established for the Department of 
   Defense and the related agencies and no program, project, and activity  
   should be eliminated or be reduced to a level of funding which would    
   adversely affect the Department's ability to effectively continue any   
   program, project, and activity.                                         
                             FAMILY OF MEDIUM TACTICAL VEHICLES                   

      The Committee has serious concerns over the status of the Family of  
   Medium Tactical Vehicle Program. Since the current program has          
   experienced cost growth, schedule delays, and technical issues, the     
   Committee believes it is extremely important to conduct a second source 
   competition. The Army has requested that the Committee provide language 
   which clarifies Section 112 of Public Law 105 261 because it hinders the
   second source competition strategy. Therefore, the Committee includes a 
   new general provision (Section 8105) which makes Section 112 of Public  
   Law 105 261 apply only to Phase III of the Army's second source         
   acquisition strategy for the Family of Medium Tactical Vehicles.        
                                    B 52 FORCE STRUCTURE                          

      The Committee includes a new general provision (Section 8108) which  
   earmarks $47,100,000 from various Air Force appropriation accounts to   
   fund a total force structure of 94 B 52 aircraft of which 23 shall be   
   maintained in an attrition reserve status. Given the Air Force's        
   continuing requirements for these aircraft, as evident in the recent    
   campaign in Kosovo, the Committee is convinced that a robust force      
   structure should be maintained. Of the funds earmarked for this purpose,
   $3,000,000 shall be derived from Military Personnel, Air Force,         
   $34,500,000 from Operation and Maintenance, Air Force, and $9,600,000   
   from Aircraft Procurement, Air Force.                                   
                                  NATIONAL MISSILE DEFENSE                        

      The Committee includes a new provision (section 8115) that requires  
   the Secretary of Defense to submit a report with the fiscal year 2001   
   budget on National Missile Defense basing locations. The report shall   
   include an assessment of (1) The ability of a single site versus        
   multiple sites to counter the expected ballistic missile threat; (2)    
   optimum basing locations; (3) the survivability and redundancy of       
   potential National Defense Systems; (4) the estimated costs associated  
   with different site deployment options. The Committee is concerned that 
   prior to the decision to deploy National Missile Defense at any         
   particular site, all options should be evaluated.                       
                                    AGGRESSOR SQUADRONS                           

      The Committee has serious concerns about the state of dedicated      
   aggressor squadrons maintained by both the Navy and the Air Force. The  
   committee notes that the size of such squadrons has dwindled over the   
   course of this decade, and that the current force structure is          
   insufficient to meet as much of the training burden as it once did. In  
   addition, the Committee is aware that the dissimilar combat flight      
   training provided by these squadrons is essential to developing, and    
   maintaining the skills of Navy, Marine Corps and Air Force combat       
   pilots. Accordingly, the Committee includes a new general provision     
   (Section 8116) which requires the Secretary of the Navy and the         
   Secretary of the Air Force to provide an inventory of the personnel and 
   equipment available for dedicated aggressor squadrons from 1990 to the  
   present, and an assessment of the training requirements that such       
   squadrons are able to meet over the same time period.                   
                         ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS               

      The Committee includes a new general provision (section 8118) that   
   requires the Department to submit a report to the congressional defense 
   committees regarding the obligation of funds for ACTDs. The Committee   
   includes this section due to the Department's disregard for instructions
   included in the Fiscal Year 1999 House Report regarding Line of Site    
   Anti-Tank (LOSAT). In addition, the section includes language regarding 
   the use of funds made available in Public Law 105 262.                  
                             MEDIUM EXTENDED AIR DEFENSE SYSTEM                   

      The Committee includes a new general provision (section 8119) that   
   provides that none of the funds available in Public Law 105 262 may be  
   used to fund MEADS. The Committee recommends this section due to DOD's  
   improper use of fiscal year 1999 funds for MEADS. That action was in    
   direct conflict with the Conference Report direction to terminate MEADS.
                          MILITARY RECRUITMENT FINANCIAL PENALTIES                

      The Committee includes a new general provision (Section 8124)        
   clarifying the scope of previous law governing the withholding of       
   federal funds from institutions of higher education that choose to      
   restrict the U.S. military from recruiting on their campuses and from   
   conducting ROTC programs. Section 8124 makes clear that this prohibition
   of federal funds affects all identified categories of federal aid except
   student financial assistance.                                           
                      HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS             

      The following items are included in accordance with various          
   requirements of the Rules of the House of Representatives:              
                         CHANGES IN THE APPLICATION OF EXISTING LAW               

      Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of 
   Representatives, the following statements are submitted describing the  
   effect of provisions in the accompanying bill which directly or         
   indirectly change the application of existing law.                      
      Language is included in various parts of the bill to continue        
   on-going activities which require annual authorization or additional    
   legislation, which to date has not been enacted.                        
      The bill includes a number of provisions which place limitations on  
   the use of funds in the bill or change existing limitations and which   
   might, under some circumstances, be construed as changing the           
   application of existing law.                                            
      The bill includes a number of provisions, which have been virtually  
   unchanged for many years, that are technically considered legislation.  
      The bill provides that appropriations shall remain available for more
   than one year for some programs for which the basic authorizing         
   legislation does not presently authorize each extended availability.    
      In various places in the bill, the Committee has earmarked funds     
   within appropriation accounts in order to fund specific programs and has
   adjusted some existing earmarking.                                      
      Those additional changes in the fiscal year 2000 bill, which might be
   interpreted as changing exiting law, are as follows:                    

                         Appropriations Language                         

      Language has been amended in ``Operation and Maintenance, Army''     
   which changes the amount provided for emergency and extraordinary       
   expenses, and includes language which transfers funds to the National   
   Park Service for necessary infrastructure repair improvements at Fort   
   Baker. Language has also been included concerning environmental         
   remediation costs of government-owned, contractor-operated facilities.  
      Language has been amended in ``Operation and Maintenance, Navy''     
   which changes the amount provided for emergency and extraordinary       
   expenses.                                                               
      Language has been amended in ``Operation and Maintenance, Air Force''
   which changes the amount provided for emergency and extraordinary       
   expenses.                                                               
      Language has been included in ``Operation and Maintenance,           
   Defense-wide'' which earmarks funds for providing the                   
   Computer/Electronic Accommodations program to federal agencies; amends  
   the amount provided for emergency and extraordinary expenses; deletes   
   language concerning federally owned educational facilities located on   
   military installations; includes language which earmarks funds provided 
   in Public Law 105 277 for certain procurement and research and          
   development accounts; and includes language which earmarks funds for    
   certain classified activities to be transferred as necessary to the     
   appropriate appropriations. Language has also been included which       
   earmarks $10,000,000 for security locks.                                
      Language has been deleted in ``Operation and Maintenance, Army       
   National Guard'' regarding base operations reporting requirements.      
      Language has been included in ``Overseas Contingency Operations      
   Transfer Fund'' which allows for additional transfer authority for the  
   Defense Health Program, and which provides that funds may be transferred
   back to this appropriation if not necessary for the purposes otherwise  
   provided.                                                               
      Language has been deleted in ``Environmental Restoration, Army''     
   which earmarked funds for environmental remediation by the Corps of     
   Engineers; and includes language regarding additional transfer          
   authority.                                                              
      Language has been included in ``Environmental Restoration, Navy''    
   regarding additional transfer authority.                                
      Language has been included in ``Environmental Restoration, Air       
   Force'' regarding additional transfer authority.                        
      Language has been included in ``Environmental Restoration,           
   Defense-Wide'' regarding additional transfer authority.                 
      Language has been included in ``Environmental Restoration, Formerly  
   Used Defense Sites'' regarding additional transfer authority.           
      Language has been deleted in ``Former Soviet Union Threat Reduction''
   which earmarked funds for the dismantling and disposal of submarine     
   reactor components in the Russian Far East.                             
      Language has been included in ``Quality of Life Enhancements,        
   Defense'' which authorizes the use of Operation and Maintenance,        
   Defense-Wide funds for grants to local educational authorities.         
      Language has been amended in ``Other Procurement, Army'' which       
   changes the number of passenger motor vehicles for replacement, and the 
   purchase cost of vehicles for physical security of personnel.           
      Language has been amended in ``Shipbuilding and Conversion, Navy''   
   which provides specific project-level appropriations.                   
      Language has been amended in ``Other Procurement, Navy'' which       
   changes the number of passenger motor vehicles for replacement.         
      Language has been amended in ``Procurement, Marine Corps'' which     
   changes the number of passenger motor vehicles for replacement.         
      Language has been amended in ``Other Procurement, Air Force'' which  
   changes the number of passenger motor vehicles for replacement.         
      Language has been amended in ``Procurement, Defense-Wide'' which     
   changes the number of passenger motor vehicles for replacement, and the 
   purchase cost of vehicles for physical security of personnel; includes  
   language which earmarks funds only to support Electronic Commerce       
   Centers; and includes language which prohibits funds for the Joint      
   Electronic Commerce Program Office.                                     
      A new appropriations paragraph, ``Defense Production Act Purchases'' 
   has been included which provides funds only for microwave power tubes.  
      Language has been deleted in ``Research, Development, Test and       
   Evaluation, Army'' which earmarks funds for an operational test of the  
   Starstreak and Stinger missiles.                                        
      Language has been deleted in ``Research, Development, Test and       
   Evaluation, Navy'' regarding live fire stock tests on the SSN 21        
   submarine; and includes language which earmarks funds for the           
   Intercooled Recuperated Gas Turbine Engine program subject to           
   certification by the Secretary of the Navy.                             
      Language has been deleted in ``Research, Development, Test and       
   Evaluation, Defense-Wide'' that restricted funds for the Navy Upper Tier
   program; amends language which earmarks funds for the Theater Wide      
   Missile Defense program; and includes language which earmarks funds     
   provided in Public Law 105 277 for ballistic missile defense, for       
   certain missile defense programs.                                       
      Language has been included in ``Defense Working Capital Funds'' which
   provides for the purchase of passenger motor vehicles for replacement   
   only for the Defense Security Service.                                  
      Language has been deleted in ``National Defense Sealift Fund'' which 
   earmarked funds for alteration of bridges.                              
      Language has been included in ``Defense Health Program'' which       
   earmarks research and development funds only for the Army peer-reviewed 
   breast cancer and prostate cancer research programs.                    
      Language has been amended in ``Chemical Agents and Munitions         
   Destruction, Army'' which deletes an earmark of funds for the Johnston  
   Atoll off-island leave program, and includes language which would       
   transfer funds to the Federal Emergency Management Agency's Defense     
   Chemical Stockpile Emergency Preparedness Program.                      

      Language has been included in ``Drug Interdiction and Counter-Drug   
   Activities, Defense'' which transfers funds to ``Military Construction, 
   Air Force'' for construction at forward operating locations in the      
   United States Southern Command area of responsibility.                  
      Language has been amended in ``Office of the Inspector General''     
   which changes the amount provided for emergency and extraordinary       
   expenses.                                                               
      Language has been amended in ``Intelligence Community Management     
   Account'' which earmarks funds for the Advanced Research and Development
   Committee.                                                              

                            GENERAL PROVISIONS                           

      Section 8005 has been amended to include restrictions on below       
   threshold reprogramming of funds within certain accounts in Titles III  
   and IV of the bill as discussed in the Major Committee Recommendations  
   section of this report.                                                 
      Section 8008 has been amended to restrict initiation or expansion of 
   certain multiyear contracts as discussed in the Major Committee         
   Recommendations section of this report.                                 
      Section 8013 has been amended to delete language which prohibited    
   Army personnel from jointly receiving an enlistment bonus and Army      
   College Fund benefits.                                                  
      Section 8024 has been amended to delete language which referenced    
   Public Law 105 56 concerning the availability of funds appropriated for 
   the Indian Financing Act Incentive payments program.                    
      Section 8033 has been amended to designate funds exclusively for use 
   by the Civil Air Patrol.                                                
      Section 8034 has been amended to delete language which reduced       
   amounts in the bill to reflect savings from the number of staff years to
   be performed by Federally Funded Research and Development Centers.      
      Section 8036 has been amended to change the names of the             
   ``congressional defense committees''.                                   
      Section 8044 has been amended to delete language which prohibited    
   obligation of funds until a report was submitted on details in the      
   Overseas Military Facility Investment Recovery Account.                 
      Section 8056 has been amended which provides authorization of        
   appropriations in this Act and in fiscal year 1999 supplemental         
   appropriations on intelligence activities until enactment of the        
   Intelligence Authorization Act for fiscal year 2000.                    
      Section 8057 has been amended to include language to permit the Army 
   Corps of Engineers to demolish and remove its former northwest district 
   headquarters.                                                           
      Section 8058 has been amended to include language which rescinds     
   funds from the following programs:                                      

                                                                        

(Rescissions)                                                           

    1998 Appropriations:                                                    

    Other Procurement, Navy:                                                



          Combat Survivor Evader Radio                $6,384,000

    Aircraft Procurement, Air Force:                                        



           16 savings                    11,700,000



          C 130 Avionics Modernization Program                1,800,000



          JSTARS contract savings                12,600,000

    Missile Procurement, Air Force:                                         



          Classified program             100,000,000

    1999 Appropriations:                                                    

    Other Procurement, Army:                                                



          Scamp terminals                4,000,000



          CSEL                           13,700,000



          Maneuver Control System                3,000,000

    Aircraft Procurement, Navy:                                             



          Universal Jet Air Start Unit                41,500,000



           2C savings                    10,000,000



          AV 8B Mods, termination of life extension program                11,000,000

    Weapons Procurement, Navy:                                              



          Improved Tactical Air Launched Decoy                8,000,000

    Under the heading, Shipbuilding and Conversion, Navy:                   



          New Attack Submarine overhead savings                32,400,000



          New Attack Submarine contract savings                2,600,000



          CVN 69 Overhaul contract savings                11,400,000

    Other Procurement, Navy:                                                



          Combat Survivor Evader Radio                8,953,000



          MK 12 IFF contract savings                1,900,000



          FFG upgrades                   5,500,000

    Aircraft Procurement, Air Force:                                        



           16 savings                    7,800,000



          C 130 Avionics Modernization Program                2,700,000



          T 38 Avionics Upgrade Program                27,600,000



          C 17 prior year savings (GAO)                36,400,000



          B 1 prior year savings (GAO)                6,729,000

    Missile Procurement, Air Force:                                         



          GPS prior year savings (GAO)                6,800,000



          Medium Launch Vehicle Savings from delayed GPS launch (GAO)                2,600,000



          Classified program             146,100,000

    Research, Development, Test and Evaluation, Army:                       



          Mines                          4,000,000



          Force XXI initiative           12,400,000

    Research, Development, Test and Evaluation, Air Force:                  



          Satellite Control Network (GAO)                10,300,000



          DSCS delays in EELV integration (GAO)                2,500,000



          GBS reduced receiver suites (GAO)                5,300,000



          SBIRS SABRS (GAO)              3,500,000



          B 2 JASSM savings              7,000,000



          B 1B prior year savings (GAO)                10,721,000



          Milstar (GAO)                  10,600,000

    Research, Development, Test and Evaluation, Defense-Wide:               



          ACTD/LOSAT                     7,000,000



          Tactical Technology            16,500,000



      Section 8064 has been amended to include language on the design and  
   construction of secure offices and support facilities to the subway     
   entrance at the Pentagon.                                               
      Section 8075 has been amended, concerning quarterly reports on loan  
   guarantees, to reflect a name change of the congressional defense       
   committees.                                                             
      Section 8080 has been amended to change the amount of funds that     
   would be available for transfer from operation and maintenance accounts 
   to military personnel accounts for the Innovative Readiness Training    
   program.                                                                
      Section 8083 has been amended to change the amounts of shipbuilding  
   and conversion transfers.                                               
      Section 8091 has been included which rescinds $452,100,000 of 1999   
   appropriations to reflect savings from revised economic assumptions.    
      Section 8097 has been amended to include the Office of Management and
   Budget to be notified regarding initiating a new start program.         
      Section 8098 has been amended to prohibit contracting with           
   individuals who have been debarred by the Department for the unlawful   
   manufacture or sale of the Congressional Medal of Honor.                
      Section 8099 has been included which earmarks funds for a grant to   
   the Women in Military Service for America Memorial.                     
      Section 8100 has been amended to delete reporting requirements by the
   Secretary of Defense regarding training of foreign security forces.     
      Section 8101 has been included which reduces the budget request by   
   $171,000,000 to reflect savings from favorable foreign currency         
   fluctuations.                                                           
      Section 8103 has been included which provides funding to repair and  
   upgrade the road access route to the National Training Center.          
      Section 8104 has been included which makes funds appropriated to the 
   Navy available to replace lost Treasury checks for which claims were    
   filed.                                                                  
      Section 8105 has been included which make Section 112 of Public Law  
   105 261 apply only to Phase III of the Army's second source acquisition 
   strategy.                                                               
      Section 8106 has been included which prohibits funds appropriated to 
   the Navy to be used to develop, lease or procure ADC(X) class of ships  
   unless the main propulsion diesel engines are manufactured domestically 
   in the United States.                                                   
      Section 8107 has been included which provides funds for a non-profit 
   organization.                                                           
      Section 8108 has been included which earmarks $47,100,000 to maintain
   an attrition reserve of 23 B 52 aircraft and a total inventory of 94    
   such aircraft.                                                          
      Section 8109 has been included which reduces amounts available in    
   several Operation and Maintenance accounts by $100,000,000 for savings  
   related to A 76 studies, and which prohibits contracting out certain    
   functions pursuant to such studies.                                     
      Section 8110 has been included requiring the Department of Defense to
   provide a summary of the results of A 76 studies conducted by DoD since 
   1995.                                                                   
      Section 8111 has been included requiring that the Department of      
   Defense submit budget justification materials for contingency operations
   costs for each appropriation account.                                   
      Section 8112 has been included which appropriates $20,000,000 for the
   Army National Guard for the procurement or lease of fire-fighting       
   aircraft or systems.                                                    
      Section 8113 has been included which appropriates $50,000,000 only   
   for Weapons of Mass Destruction Domestic Preparedness.                  
      Section 8114 has been included which provides $150,000,000 in        
   Operation and Maintenance, Defense-Wide for information security and    
   assurance programs and includes reporting requirements.                 
      Section 8115 has been included which directs the Department to submit
   a report regarding basing options for National Missile Defense.         
      Section 8116 has been included which requires a study of dedicated   
   aggressor squadrons by the Secretary of the Navy and the Secretary of   
   the Air Force.                                                          
      Section 8117 has been added prohibiting the Department of Defense    
   from using funds provided in Department of Defense Appropriations Acts  
   for the repair and maintenance of military family housing.              
      Section 8118 has been included which provides that funds appropriated
   in the Research, Development, Test and Evaluation, Defense-Wide account 
   for advance concept technology demonstrations may only be obligated     
   after a report to the congressional defense committees is provided by   
   the Department.                                                         
      Section 8119 has been included which provides that none of the funds 
   appropriated may be used for the Medium Extended Air Defense System     
   (MEADS).                                                                
      Section 8120 has been added as discussed in the Research,            
   Development, Test and Evaluation, Navy section of this report under the 
   heading ``Joint Experimentation.''                                      
      Section 8121 has been included providing $250,000 for the purpose of 
   acquiring and preserving the cemetery site near Ft. Atkinson, Nebraska. 
      Section 8122 has been included which defines custodial care as care  
   designed essentially to assist an individual in meeting the activities  
   of daily living not medically necessary care.                           
      Section 8123 has been amended to credit refunds associated with the  
   use of government travel and purchase cards to the appropriation account
   which initially paid for purchases made with such cards.                
      Section 8124 has been included concerning funds for student financial
   assistance at schools.                                                  
      Section 8125 has been included to enhance DoD oversight of           
   information technology systems.                                         
      Section 8126 has been included which enforces current policy by      
   prohibiting the Department from providing certain support to other      
   agencies who are in arrears to the Department.                          
      Section 8127 has been included which restores reimbursement rules for
   the Foreign Military Sales account.                                     
      Section 8128 has been included which allows the acceleration of      
   certain spectrum sales.                                                 
      Section 8129 has been included which requires a report from the      
   Secretary of Defense on the conduct of recent contingency operations.   
                            APPROPRIATIONS NOT AUTHORIZED BY LAW                  

      Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of 
   Representatives, the following table lists the appropriations in the    
   accompanying bill which are not authorized by law:                      

  Military Personnel, Army                                                

  Military Personnel, Navy                                                

  Military Personnel, Marine Corps                                        

  Military Personnel, Air Force                                           

  Reserve Personnel, Army                                                 

  Reserve Personnel, Navy                                                 

  Reserve Personnel, Marine Corps                                         

  Reserve Personnel, Air Force                                            

  National Guard Personnel, Army                                          

  National Guard Personnel, Air Force                                     

  Operation and Maintenance, Army                                         

  Operation and Maintenance, Navy                                         

  Operation and Maintenance, Marine Corps                                 

  Operation and Maintenance, Air Force                                    

  Operation and Maintenance, Defense-Wide                                 

  Operation and Maintenance, Army Reserve                                 

  Operation and Maintenance, Navy Reserve                                 

  Operation and Maintenance, Marine Corps Reserve                         

  Operation and Maintenance, Air Force Reserve                            

  Operation and Maintenance, Army National Guard                          

  Operation and Maintenance, Air National Guard                           

  Overseas Contingency Operations Transfer Fund                           

  United States Court of Appeals for the Armed Forces                     


  Environmental Restoration, Army                                         

  Environmental Restoration, Navy                                         

  Environmental Restoration, Air Force                                    

  Environmental Restoration, Defense-Wide                                 

  Environmental Restoration, Formerly Used Defense Sites                  

  Overseas Humanitarian, Disaster, and Civic Aid                          

  Former Soviet Union Threat Reduction                                    

  Quality of Life Enhancements, Defense                                   

  Aircraft Procurement, Army                                              

  Missile Procurement, Army                                               

  Procurement of Weapons and Tracked Combat Vehicles, Army                

  Procurement of Ammunition, Army                                         

  Other Procurement, Army                                                 

  Aircraft Procurement, Navy                                              

  Weapons Procurement, Navy                                               

  Procurement of Ammunition, Navy and Marine Corps                        

  Shipbuilding and Conversion, Navy                                       

  Other Procurement, Navy                                                 

  Procurement, Marine Corps                                               

  Aircraft Procurement, Air Force                                         

  Missile Procurement, Air Force                                          

  Procurement of Ammunition, Air Force                                    

  Other Procurement, Air Force                                            

  Procurement, Defense-Wide                                               

  National Guard and Reserve Equipment                                    

  Defense Production Act Purchases                                        

  Research, Development, Test and Evaluation, Army                        

  Research, Development, Test and Evaluation, Navy                        

  Research, Development, Test and Evaluation, Air Force                   

  Research, Development, Test and Evaluation, Defense-Wide                

  Developmental Test and Evaluation, Defense                              

  Operational Test and Evaluation, Defense                                

  Defense Working Capital Funds                                           

  National Defense Sealift Fund                                           

  Defense Health Program                                                  

  Chemical Agents and Munitions Destruction, Army                         

  Drug Interdiction and Counter-Drug Activities, Defense                  

  Office of the Inspector General                                         

  Central Intelligence Agency Retirement and Disability System Fund       

  Intelligence Community Management Account                               

    Payment to Kaho'olawe Island Conveyance, Remediation and Environmental
  Restoration Fund                                                        
  National Security Education Trust Fund                                  

   Sec. 8099.                                                              

   Sec. 8112.                                                              

   Sec. 8113.                                                              

   Sec. 8114.                                                              

                                     TRANSFER OF FUNDS                            

      Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of 
   Representatives, the following is submitted describing the transfer of  
   funds provided in the accompanying bill.                                
   The following table shows the appropriation affected by the transfers:  


                                                                                                                        

Appropriations to which transfer is made             Amount  Appropriations from which transfer is made                Amount  

Operation and maintenance, Army                 $50,000,000  National Defense Stockpile xlTransaction Fund       $150,000,000  
Operation and maintenance, Navy                  50,000,000                                                                    
Operation and maintenance, Air Force             50,000,000  


      Language has been included in ``Operation and Maintenance, Army'',   
   which provides for the transfer of $6,000,000 to the ``National Park    
   Service'' for improvements at Fort Baker.                               
      Language has been included in ``Operation and Maintenance,           
   Defense-Wide'', which provides for the transfer of $40,000,000 to       
   certain classified activities.                                          
      Language has been included in ``Overseas Contingency Operations      
   Transfer Fund'', which provides for the transfer of funds out of this   
   account to other appropriations accounts.                               
      Language has been included in ``Environmental Restoration, Army''    
   which provides for the transfer of funds out of and into this account.  
      Language has been included in ``Environmental Restoration, Navy''    
   which provides for the transfer of funds out of and into this account.  
      Language has been included in ``Environmental Restoration, Air       
   Force'' which provides for the transfer of funds out of and into this   
   account.                                                                
      Language has been included in ``Environmental Restoration,           
   Defense-Wide'' which provides for the transfer of funds out of and into 
   this account.                                                           
      Language has been included in ``Environmental Restoration, Formerly  
   Used Defense Sites'' which provides for the transfer of funds out of and
   into this account.                                                      
      Language has been included in ``Procurement, Defense-Wide'' which    
   provides for the transfer of $6,000,000 out of ``Research, Development, 
   Test and Evaluation, Defense-Wide'' into the account.                   
      Language has been included in ``Chemical Agents and Munitions        
   Destruction, Army'' which provides for the transfer of $75,303,000 to   
   the Federal Emergency Management Agency for the Defense Chemical        
   Stockpile Emergency Preparedness program.                               
      Language has been included in ``Drug Interdiction and Counter-Drug   
   Activities, Defense'' which transfers funds to other appropriations     
   accounts of the Department of Defense.                                  
      Language has been included in ``Intelligence Community Management    
   Account'' which provides for the transfer of $27,000,000 to the         
   Department of Justice for the National Drug Intelligence Center.        
      Ten provisions (Section 8005, 8006, 8015, 8040, 8064, 8066, 8080,    
   8083, 8113, and 8114) contain language which allows transfers of funds  
   between accounts.                                                       
                                        RESCISSIONS                               

      Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of 
   Representatives, the following table is submitted describing the        
   rescissions recommended in the accompanying bill:                       




          Other Procurement, Navy 1998/2000                $6,384,000



          Aircraft Procurement, Air Force 1998/2000                26,100,000



          Missile Procurement, Air Force 1998/2000                100,000,000



          Aircraft Procurement, Army 1999/2001                8,000,000



          Missile Procurement, Army 1999/2001                7,000,000



          Procurement of Weapons and Tracked Combat Vehicles, Army 1999/2001                9,000,000



          Procurement of Ammunition, Army 1999/2001                6,000,000



          Other Procurement, Army 1999/2001                39,700,000



          Aircraft Procurement, Navy 1999/2001                106,500,000



          Weapons Procurement, Navy 1999/2001                16,000,000



          Procurement of Ammunition, Navy and Marine Corps 1999/2001                3,000,000

    Under the heading, Shipbuilding and Conversion, Navy, 1999/2003:        



                                         37,000,000



                                         35,000,000



                                         11,400,000



          Other Procurement, Navy 1999/2001                39,353,000



          Procurement, Marine Corps 1999/2001                5,000,000



          Aircraft Procurement, Air Force 1999/2001                127,229,000



          Missile Procurement, Air Force 1999/2001                169,500,000



          Procurement of Ammunition, Air Force 1999/2001                2,000,000



          Other Procurement, Air Force 1999/2001                44,400,000



          Procurement, Defense-Wide 1999/2001                5,200,000



          Chemical Agents and Munitions Destruction, Army 1999/2000                5,000,000



          Research, Development, Test and Evaluation, Army 1999/2000                36,400,000



          Research, Development, Test and Evaluation, Navy 1999/2000                40,900,000



          Research, Development, Test and Evaluation, Air Force 1999/2000                126,821,000



          Research, Development, Test and Evaluation, Defense-Wide 1999/2000                52,200,000


                   COMPLIANCE WITH CLAUSE 3 OF RULE XIII (RAMSEYER RULE)          

      In compliance with clause 3(e) of rule XIII of the Rules of the House
   of Representatives, changes in existing law made by the bill, as        
   reported, are shown as follows (existing law proposed to be omitted is  
   enclosed in black brackets, new matter is printed in italic, existing   
   law in which no change is proposed is shown in roman):                  
    SECTION 8118 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1999   

       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 debarred by the Department of Defense based upon a   
   conviction under section 704 of title 18, United States Code, of the    
   unlawful manufacture or sale of the Congressional Medal of Honor.       
              section 337 of the communications act of 1934              

                    SEC. 337. ALLOCATION AND ASSIGNMENT OF NEW PUBLIC SAFETY      
          SERVICES LICENSES AND COMMERCIAL LICENSES.                              
   (a) * * *                                                               

   (b)  Assignment. --The Commission shall--                               

       (1) commence assignment of the licenses for public safety services  
   created pursuant to subsection (a) no later than September 30, 1998; and
       (2) commence competitive bidding for the commercial licenses created
   pursuant to subsection (a) after January 1, 2001.                       
         * * * * * * *                                                           

                                  CONSTITUTIONAL AUTHORITY                        

      Clause 3(d)(1) of rule XIII of the Rules of the House of             
   Representatives states that:                                            
      ``Each report of a committee on a bill or joint resolution of a      
   public character, shall include a statement citing the specific powers  
   granted to the Congress in the Constitution to enact the law proposed by
   the bill or joint resolution.''                                         
      The Committee on Appropriations bases its authority to report this   
   legislation from Clause 7 of Section 9 of Article I of the Constitution 
   of the United States of America which states:                           
      ``No money shall be drawn from the Treasury but in consequence of    
   Appropriations made by law . . .''                                      
      Appropriations contained in this Act are made pursuant to this       
   specific power granted by the Constitution.                             
                           COMPARISON WITH THE BUDGET RESOLUTION                  

      Clause 3(c)(2) of rule XIII of the Rules of the House of             
   Representatives requires an explanation of compliance with section      
   308(a)(1)(A) of the Congressional Budget and Impoundment Control Act of 
   1974 (Public Law 93 344), as amended, which requires that the report    
   accompanying a bill providing new budget authority contain a statement  
   detailing how that authority compares with the reports submitted under  
   section 302 of the Act for the most recently agreed to concurrent       
   resolution on the budget for the fiscal year from the Committee's       
   section 302(a) allocation. For purposes of determining the 302(b)       
   allocation for this bill, all figures in this table include funding in  
   this bill, plus previously enacted fiscal year 2000 appropriations from 
   Public Law 106 31.                                                      

                                                                               
                            [In millions of dollars]                           

                      302(b) allocation--                 This bill--            

                   Budget authority    Outlays    Budget authority    Outlays  

Discretionary               267,692    259,130             267,691    258,040  
Mandatory                       209        209                 209        209  

                                FIVE-YEAR OUTLAY PROJECTIONS                      

      In compliance with section 308(a)(1)(B) of the Congressional Budget  
   and Impoundment Control Act of 1974 (Public Law 93 344), as amended, the
   following table contains five-year projections associated with the      
   budget authority provided in the accompanying bill. (This includes      
   funding in this bill, plus previously enacted fiscal year 2000          
   appropriations from Public Law 106 31.)                                 

                                                                               
                            [In millions of dollars]                           

                                       

     Budget Authority in bill      267,900  
      2000                         181,503  
      2001                          55,399  
      2002                          19,790  
      2003                           6,897  
      2004                           5,748  

                    FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS           

      In accordance with section 308(a)(1)(C) of the Congressional Budget  
   and Impoundment Control Act of 1974 (Public Law 93 344), as amended, no 
   new budget or outlays are provided by the accompanying bill for         
   financial assistance to State and local governments.                    
                                    FULL COMMITTEE VOTES                          

      Pursuant to the provisions of clause 3(b) of rule XIII of the House  
   of Representatives, the results of each roll call vote on an amendment  
   or on the motion to report, together with the names of those voting for 
   and those voting against, are printed below:                            
   There were no recorded votes.                                           


   Offset Folios 312 to 321 Insert here                                    



                                      ADDITIONAL VIEWS                            

      This bill may signify an important change in how Congress approaches 
   defense budget policy in the next century as we continue to struggle    
   under highly constrained discretionary budget caps.                     
                            22 Fighter Program                           

      In recognition of the changing post-Cold War threat and the          
   constraints being placed on all discretionary programs by unrealistic   
   budget caps, the Committee has for the first time in recent years taken 
   issue with a costly high-profile military program proposed by the       
   Defense Department. The Committee has deleted all production funds in   
   this budget ($1.858 billion for six aircraft) for the proposed F 22     
   fighter aircraft program. This action not only frees up nearly $2       
   billion for higher priority military programs this year, but also will  
   allow reallocation of roughly $40 billion of military funds over the    
   next decade for higher priority needs.                                  
      The Defense Subcommittee recommended this action in a bipartisan and 
   unanimous fashion, and the Committee agreed by voice vote with little   
   controversy.                                                            
       Reorient Military Spending Priorities. --By this action, the        
   Committee is sending a clear message to the Pentagon that it is time to 
   reorient its spending priorities to meet a broader array of military    
   budget requirements for the 21st Century. That means paying far more    
   attention to so-called ``asymmetrical'' threats like chemical and       
   biological terrorism, information warfare, smaller scales urban warfare,
   cruise missile defense and bolstering conventional military capabilities
   like airlift, sealift, electronic jamming, intelligence and             
   surveillance, and communications. It also means we must review the force
   structures of our NATO allies and demand more investment from them in   
   force modernization as well.                                            
       Tactical Aircraft Plan is Out of Balance. --For too long the        
   Pentagon has resisted calls to restructure its hyper-expensive tactical 
   aircraft procurement plan to buy three separate types of tactical       
   aircraft costing in excess of $300 billion even though the traditional  
   Cold War threats for which they were designed have dissipated and new   
   non-conventional threats are emerging.                                  
      The most expensive of these planes is the F 22, which was first      
   designed to meet a Cold War threat from overwhelming numbers of advanced
   Soviet aircraft. Over the years, even though the old Soviet threat has  
   evaporated, the only thing that has changed about the F 22 program has  
   been its cost and its production schedule. Development costs have nearly
   doubled from $12 billion in 1985 to over $23 billion today. Current     
   estimates are that it will cost at least another $40 to $60 billion to  
   procure. Over the next five years, the Air Force proposes to pay $151   
   million apiece for the F 22 fighter, about three times the cost of our  
   top of the line F 15E fighter (about $55 million), and about six times  
   the cost of an F 16 fighter. And since the Air Force wants to begin     
   buying these planes with less than 5% of the required testing completed,
   most independent analysts predict that F 22 costs will grow even        
   further.                                                                
       F 22 Consumes Too Much Funding Needed For Other Military            
   Capabilities. --In making this decision, the Committee reviewed not only
   what capability the F 22 can provide for the future compared to other   
   planes, but what capability we are giving up because of the cost of this
   plane--the so-called ``opportunity cost.'' It is now clear from         
   experiences in Yugoslavia and Iraq that other Air Force, Navy, and      
   Marine Corps aviation capabilities are being stretched dangerously thin 
   in certain key areas because of the need to pay the exorbitant F 22     
   budget costs. It is also clear that from a larger perspective, the F 22 
   is consuming resources that could be used to address other critical     
   strategic concerns such as emerging threats from                        
   chemical/biological/nuclear terrorism, information warfare, and cruise  
   missiles.                                                               
      The Committee has recognized that it takes more than an              
   ultra-sophisticated fighter to successfully prosecute modern-day air    
   operations. It requires a total balanced and integrated system, starting
   with highly trained and well-motivated aircrews. It also depends on     
   sophisticated surveillance systems such as the AWACS and JSTARS systems,
   modern information and communications systems to provide instantaneous  
   situation awareness, sophisticated missiles, electronic jamming support,
   intelligence gathering platforms such as the U 2 and various unmanned   
   aerial vehicles, and support from refueling tankers and specialized     
   helicopters.                                                            
      The Committee rightly believes that the Pentagon is over-emphasizing 
   fighter procurement, proposing to buy this expensive high tech fighter  
   at a cost that will severely limit other weapons purchases and upgrades.
   This could actually degrade performance in the years ahead, since there 
   will be no additional funds to sufficiently upgrade these other systems 
   in a timely manner. The Air Force and the Department as a whole are     
   already starting to pay this price. For instance:                       
       The Air Force retired its F 111 airplanes with their electronic     
   jamming capability in order to save money for the F 22; now we find that
   the military will not fly missions even with our stealthy aircraft, such
   as the B 2, without jammer protection and there is concern about a      
   shortage of these critical assets;                                      
       The Air Force has greatly cut back on its ``Red Flag'' pilot        
   training program using dedicated aggressor squadrons--a program widely  
   regarded as a key to superior US pilot proficiency;                     
       The Air Force relies on 1950s and 1960s-era aerial tankers, many of 
   which urgently require re-engineering and other upgrades, yet no funding
   is requested.                                                           

       One of their most critical intelligence assets--the U 2 plan--flies 
   with outdated avionics, which the Air Force has no plan to upgrade due  
   to budget constraints;                                                  
       The Air Force has no bomber modernization plan--the best they can   
   come up with is a plan to keep the B 52s flying until they are literally
   80 years old;                                                           
       To find more money for the F 22, the Air Force has forced at least a
   two year delay in our next generation satellite early warning system    
   (SBIRS High) for the detection of ballistic missile attack--a critical  
   system to our national security;                                        
       The Air Force isn't able to find enough new recruits and it is      
   losing veteran pilots to early retirement at an alarming rate with the  
   shortage now topping over 1,100 pilots--in part due to poor facilities  
   for Air Force personnel and their families;                             
       The Air Force has had serious ongoing spare parts shortages and has 
   increasing equipment maintenance backlogs;                              
       The Air Force ran out of key precision guided cruise missiles--the  
   CALCM--during the Kosovo campaign;                                      
       There are new technologies for our top of the line F 15 and F 16    
   aircraft that will add significantly to their effectiveness, like the   
   ``link 16'' system that could and should be fielded now--but must wait  
   due to funding considerations;                                          
       The Marine Corps is being forced to replace its worn out helicopters
   with the new V 22 tiltrotor at a much slower rate than is optimal from  
   an operational perspective.                                             
       What is the Realistic Threat? In making its recommendation on the F 
   22, the Committee also had to weigh whether the potential threat to     
   future air superiority was real and as ominous as the Air Force alleges.
   It is fair to say that the Air Force can make a case for only an        
   ill-defined and ambiguous potential threat that would justify this level
   of expenditure. In making the decision to allocate limited dollars,     
   national security decisionmakers are put in the unenviable position of  
   making choices based on the likelihood and severity of potential        
   threats. It seems clear in this case that other concerns, such as the   
   spread of weapons of mass destruction and terrorism rate a higher budget
   priority than the F 22 program.                                         
      There are also some issues of credibility. The Air Force does not    
   have a particularly good record in making straightforward threat        
   assessments to support its F 22 budget proposals. In the early 1990s,   
   after the Soviet Union collapsed (and the Air Force's argument for      
   procuring the F 22 with it), the Air Force changed its threat analysis  
   to say that some 35 countries had procured aircraft with the            
   capabilities that threatened U.S. air domination. Only later were we    
   surprised to learn that the Air Force included countries like           
   Switzerland, Norway, Israel, Australia, even New Guinea as possible     
   threat countries, all of whom possessed U.S.-built F 16 aircraft that we
   had sold to them. We were also told at the time that new Russian planes 
   like the Mig 29 were making our F 15s and F 16s obsolete. This of course
   was disproved in Iraq and Yugoslavia.                                   
      Since events of the last decade have made many of the old F 22       
   arguments untenable, it is not surprising that a new argument is taking 
   shape. We are now told that yet a new Russian plan, the SU 37, and      
   several Western European planes under development are the new threats to
   U.S. air supremacy                                                      
      While these planes might be highly capable (an assumption that should
   be closely scrutinized for the SU 37), most analysts doubt whether the  
   Russian economy will be in a position for decades to finance and produce
   such an expensive plane in large quantity. The Air Force budget alone is
   more than the entire Russian, Iraqi, North Korean, Iranian, Syrian, and 
   Cuban authorized military budgets combined. It is reported that the     
   Russians now spend a paltry sum for military research and development   
   (about $2 billion a year) and for military procurement (about $3.5      
   billion per year). Most analysts believe this decline has fractured the 
   Russian defense industrial base to the point that it will not recover   
   for decades if at all.                                                  
      The real threat from Russia emanates from its weakness, not its      
   strength. A much more productive use of just some of the funds earmarked
   for the F 22 program would be to expand ongoing efforts to disarm       
   Russian nuclear and chemical warheads, and to keep Russian weapons      
   scientists gainfully employed for peaceful purposes. This threat is much
   more real and ominous than the paper threat of great numbers of         
   futuristic Russian-made aircraft.                                       
      As for the potential fielding of advanced Western European fighter   
   aircraft, the Yugoslav air campaign exposed numerous deficiencies in the
   military capabilities of even our largest Western European NATO allies. 
   Domestic pressure for continuing military budget cutbacks continues in  
   many of these same European countries and it remains to be seen if there
   is the political will to undertake massive and expensive upgrades of    
   European air force units. A strong argument could be made that these    
   countries should undertake such upgrades to pull a far greater share of 
   the burden in any future NATO military air operation. A valid concern   
   may exist about proliferation of these aircraft to other nations. But it
   would seem that a cheaper and far more rationale response is to work    
   with our allies diplomatically to ensure that these planes do not fall  
   into the hands of the rogue states and other undesirable regimes        
   (something that certainly seems attainable).                            

       Pilot Training and Skill Levels Are Being Discounted. --Even more   
   important than any single piece of technology or the numbers of aircraft
   possessed by potential opponents are the capabilities of the pilots     
   flying those aircraft. History repeats the same lesson whether from     
   World War I, from Mig Alley , from Viet Nam, or from Desert Storm , that
   the training of pilots, including their ability to see the battlefield, 
   is the key factor in victory. That factor continues to favor the United 
   States and should continue well into the 21st Century. It seems unlikely
   that any second-world or Third World nation could possibly match the    
   training and skill of American pilots.                                  
       Threats From Rogue States .--Indeed, no serious analyst would       
   predict that potential opponents such as Iraq, North Korea, Libya, or   
   Iran will be in a position politically or financially to acquire such   
   advanced aviation technology in the quantities needed to threaten U.S.  
   air supremacy. Nor will they be able to train a sophisticated air force 
   and provide the sophisticated support assets that would be required to  
   sustain them in any kind of serious conflict. It is clear that if they  
   wish to challenge the United States in the 21st Century, there are      
   cheaper, quicker, and potentially more deadly ways to confront us. Those
   threats should be the focus of our budget priorities for the 21st       
   Century.                                                                
       Reassessment Is Warranted .--Given the high cost that the Air Force 
   has proposed for addressing such an ambiguous threat to our fighter     
   supremacy, it is time that U.S. defense planners reassess the entire    
   tactical aircraft program. Three hundred billion dollars for three      
   different new tactical airplanes is extravagant in a world where we will
   have no military peer for at least the next 20 years. The Committee is  
   to be congratulated for making this difficult choice on a bipartisan    
   basis, and forcing this reassessment to take place.                     
                         Problems With This Bill                         

      As much as I would wish to support the Committee bill because of its 
   F 22 provision, there are other problems that prevent me from doing so  
   at this point--problems that I hope will be corrected so that I can     
   eventually support the conference report.                               
      Unfortunately, this bill still exhibits many of the same tired old   
   military spending traits we have seen in recent years from this         
   Congress. Too many extra dollars have again been siphoned off from key  
   domestic education, health, clean water, food and drug safety, law      
   enforcement, veterans' health care, national parks, and other important 
   priorities to pay for military pork barrel projects of little or no     
   value. We still see hundreds of millions of dollars in military         
   equipment being bought in this bill not on the basis of how much it is  
   needed, but rather on the basis of where it is built.                   
       Serious Congressional Oversight Is Too Often Lacking .--This        
   Congress also has already dodged any significant attempt at reform to   
   cut out the wasteful military spending that everyone knows is widely    
   prevalent. For instance, the authorizing committees have once again     
   refused to act on military base closures, rejecting the Pentagon's      
   request for two additional rounds of base closures that some have       
   projected would save another $20 billion by 2005, and $3 billion per    
   year thereafter. Instead, this Congress finds it acceptable to pay      
   billions of extra dollars per year for unneeded and unnecessary military
   bases that the Defense Department readily admits add little or nothing  
   to our national security.                                               
      Many other opportunities for making large military spending savings  
   exist as well. Little serious Congressional attention has been paid to a
   continuous stream of GAO reports explaining how the Pentagon's financial
   management operations are so weak that they are classified as a ``high  
   risk'' for fraud, waste, and abuse. Despite many promises, the Pentagon 
   still cannot properly account for billions of dollars of property,      
   equipment, inventory, and supplies.                                     
      The Navy for instance has lost track of more than $3 billion worth of
   goods over the last three years, including night vision devices,        
   communications gear of all sorts, even guided missile launchers for     
   planes. That's the equivalent of misplacing three Navy destroyers. In   
   April of this year, the GAO reported that about 60% of DoD's inventory  
   of on-hand items, or about #39.4 billion of DoD's secondary inventory,  
   exceeded DoD's requirements.                                            
      The Pentagon's financial management system is so weak that it cannot 
   keep track of billions of dollars of yearly military expenditures.      
   Million dollar-plus overpayments to military contractors are oftentimes 
   found out only because the contractor voluntarily returns the money.    
      In past reports to Congress, the GAO has pointed out many other      
   opportunities to save significant sums as well, only to have them fall  
   on deaf ears in Congress. For instance, the GAO has reported that:      
       DoD's laboratory infrastructure is estimated to have an excess      
   capacity approaching 35 percent;                                        
       DoD's capacity for rotary-wing aircraft training is close to double 
   what is needed by all the military services;                            
       The cost to educate a physician in DoD's Uniform Services University
   of Health Sciences is more than twice as much as the cost of providing  
   scholarships to students in civilian medical schools;                   
       DoD's overhead for transportation services has been two to three    
   times the basis cost of transportation.                                 
      In my view, it is not possible to support a bill that shifts billion 
   from key domestic accounts like education, health, veterans, and the    
   environment to pay for extra military spending. This is especially the  
   case when the Congress makes no serious effort to clean up the billions 
   in wasteful and unnecessary military spending--waste that every Member  
   of Congress knows exists.                                               

       Budget Gimmickry At An All Time. --Instead of rigorous oversight to 
   root out these inefficiencies and wasteful practices, this Congress has 
   spent its time concocting budget gimmickry of unprecedented proportions 
   to pay for these excesses.                                              
      Three-and-a-half years ago, the Congressional Republican leadership  
   closed down the federal government over its demand that the President   
   use only ``honest numbers'' from the Congressional Budget Office to     
   measure appropriations bills. They said at the time that estimates from 
   the CBO were the only ``meaningful'' numbers that provided ``no wiggle  
   room'' and ``no smoke and mirrors.''                                    
      Now, the Republican leadership has wiggled into a complete about face
   on this issue. For this bill, the Republican leadership has very quietly
   ``directed'' the head of the Congressional Budget Office to ignore his  
   own professional spending estimates and simply not count $10.473 billion
   of spending in this bill. The leadership has also directed the CBO to   
   ignore its scoring rules on asset sales as well--ordering them to credit
   this bill with another $2.6 billion from the expected proceeds from the 
   FCC auction of portions of the frequency spectrum (having little of     
   nothing to do with defense).                                            
      We once again have a situation in which this Republican leadership is
   pronouncing their unabiding support and steadfastness for adhering to   
   the budget caps while they whisper orders to the CBO to ignore those    
   very same caps.                                                         

                      FY 2000 DEFENSE APPROPRIATIONS BILL                      
                            [In billions of dollars]                           

                                              Budget authority      Outlays  

Budget Resolution Cap (302b for FY 2000)               267.692      259.130  
Actual CBO Spending Estimate:                          270.291      271.113  
                                            ------------------  -----------  
                                            ==================  ===========  
Scorekeeping Gimmickry:                                             -10.473  
                                            ------------------  -----------  
Total scorekeeping changes                            (-2.600)    (-13.073)  
                                            ==================  ===========  
Under caps due to ``directed scoring''                     0.0       -1,090  

                      MILITARY SPENDING AND TAX CUTS                     


      Perhaps the most important decision that Congress will make this year
   affecting the defense budget over the next decade will be the upcoming  
   vote to cut taxes.                                                      
      Last week, the House Ways and Means Committee, in correct with the   
   House Republican leadership, approved an $864 billion ten-year tax cut  
   bill. Since the bill will trigger additional debt service of $155       
   billion, the real cost of this bill is $1.02 trillion.                  
       Tax Cut Crowds Out Defense Increases. --This tax cut dissipates more
   than the entire non-Social Security surplus projected by CBO, and it    
   leaves no money to extend the solvency of either Social Security or     
   Medicare. This tax cut would make it extremely unlikely that other      
   initiatives including the $150 billion ten-year defense spending        
   (outlays) increase proposed by the President, could be financed without 
   returning to deficit spending.                                          
      What's more, the underlying spending assumptions that make up the    
   10-year budget surplus estimates are fallacious--they assumed deeper    
   cuts in the discretionary spending category (that includes defense) than
   Congress has ever imposed before.                                       
      The implications for all discretionary programs (including defense)  
   are ominous if Congress chooses to endorse these spending assumptions by
   voting for a massive tax cut. If enacted, this tax cut promises to      
   return us to the dark days of the 1980's--with large deficits and       
   cutthroat competition between domestic and defense programs.            
       Living Within The Assumed Caps. --The CBO now projects a non-Social 
   Security surplus totaling $964 billion over the next ten years. This    
   projection assumes that appropriations will be capped at designated     
   levels in 2000, 2001, and 2002 (an extremely dubious assumption), in    
   accordance with the Balanced Budget Act of 1997. Thereafter, the        
   projected surplus assumes that total appropriations will remain at the  
   2002 funding level in real purchasing power. In addition, the           
   projections assume that there will be no emergencies in the next decade 
   that require federal spending.                                          
      Congress has already breached this ten-year ``freeze'' assumption by 
   providing growth rates above this level for highway and mass transit    
   programs. In addition, the President has called for providing an        
   additional $150 billion (outlays) above a freeze level for defense      
   programs over this period. If only these two deviations are allowed to  
   occur over the next decade, the remaining funds for                     
   non-defense/non-transportation domestic programs would have to be       
   reduced by 31 percent (-$750 billion) below their 1999 levels, after    
   adjusting for inflation.                                                
      While some may think this could be somewhat acceptable in the        
   abstract, I challenge Members to say whether they would vote for 31     
   percent reductions (at a minimum) in the following domestic programs:   
    Veteran's hospitals and medical care                                   

    National Institutes of Health (NIH)                                    

    NASA                                                                   

    FAA air traffic control system                                         

    Education for the disadvantaged                                        

    Special education                                                      

    Community development block grants                                     

    Coast Guard                                                            

    Federal Bureau of Investigation                                        

    WIC (nutrition for women, infants, and children)                       

    Customs                                                                

    Section 8 housing for the elderly and handicapped                      

    National Park Service                                                  

    Drug Enforcement Agency                                                

    INS                                                                    

    FEMA                                                                   

    National Science Foundation                                            

    EPA Superfund grants to states                                         

    Head Start                                                             

    Pell Grants                                                            

    National Weather Service                                               

    Agriculture conservation                                               

    Flood control                                                          

    Teacher training                                                       

    Food and Drug Administration                                           

      It is politically and economically nai AE4ve and irresponsible to the
   people whom we represent to think that these programs can sustain a 31% 
   reduction over ten years without threatening public health and safety   
   and the economic prosperity on which the future of American working     
   families depends. America will not be frozen in time for ten years. Our 
   population will continue to grow, our economy and social structures will
   continue to evolve and become more complex, and our responsibilities as 
   the world's only economic and military superpower will be great.        
      The Republican tax cut would place into serious jeopardy the         
   President's military spending proposal and sets the chances at zero that
   any funds could be found to increase the President's defense plan.      

         Dave Obey.