Index

                          106 th Congress  2d Session                       

                                     SENATE                                 

                                      Report                                 

                                       106 292                                

                                                                             

                                                                         


                                 Calendar No. 543                            



                      NATIONAL DEFENSE AUTHORIZATION                     

                         ACT FOR FISCAL YEAR 2001                        


                                  REPORT                                 


                          [to accompany s. 2549]                         


                                    on                                   


  AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2001 FOR MILITARY ACTIVITIES
 OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE
 ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS
 FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES       

                              together with                              


                      ADDITIONAL AND MINORITY VIEWS                      


                                                                           


                       COMMITTEE ON ARMED SERVICES                       

                           UNITED STATES SENATE                          


                                                                         

[Graphic Image Not Available]
                                                                         


                   May  12, 2000.--Ordered to be printed                 

     Filed under authority of the order of the Senate of May 11, 2000    


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001         


                                    ?                                    

                                     64 303                                 

                                       2000                                  

                          106 th Congress  2d Session                       

                                     SENATE                                 

                                      Report                                 

                                       106 292                                

                                                                             

                                                                         


                                 Calendar No. 543                            



                      NATIONAL DEFENSE AUTHORIZATION                     

                         ACT FOR FISCAL YEAR 2001                        


                                  REPORT                                 


                          [to accompany s. 2549]                         


                                    on                                   


  AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2001 FOR MILITARY ACTIVITIES
 OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE
 ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS
 FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES       

                              together with                              


                      ADDITIONAL AND MINORITY VIEWS                      


                                                                           


                       COMMITTEE ON ARMED SERVICES                       

                           UNITED STATES SENATE                          


                                                                         

[Graphic Image Not Available]
                                                                         


                  May  12,  2000.--Ordered to be printed                 

     Filed under authority of the order of the Senate of May 11, 2000    


                                    ?                                    

                                                                        


                                COMMITTEE ON ARMED SERVICES                       

                             (106th Congress, 2d Session)                      


                           JOHN WARNER, Virginia,  Chairman                    



          STROM THURMOND, South Carolina, Chairman  Emeritus                CARL LEVIN, Michigan

          JOHN  McCAIN,  Arizona                                            EDWARD M. KENNEDY, Massachusetts
          BOB SMITH, New Hampshire                                          JEFF BINGAMAN, New Mexico
          JAMES M. INHOFE, Oklahoma                                         ROBERT C. BYRD, West Virginia
          RICK SANTORUM, Pennsylvania                                       CHARLES S. ROBB, Virginia
          OLYMPIA J. SNOWE, Maine                                           JOSEPH I. LIEBERMAN, Connecticut
          PAT ROBERTS, Kansas                                               MAX CLELAND, Georgia
          WAYNE ALLARD, Colorado                                            MARY L. LANDRIEU, Louisiana
          TIM HUTCHINSON, Arkansas                                          JACK REED, Rhode Island
          JEFF SESSIONS, Alabama                                            

        Les Brownlee,  Staff Director                                          

        David S. Lyles,  Staff Director for the Minority                       

                                            (II)                                  

                                                                         


                            C O N T E N T S                             
         Purpose of the Bill                                              1
         Committee Overview and Recommendations                           2
         Explanation of Funding Summary                                   14
         Division A--Department of Defense Authorizations                 21
         Title I--Procurement                                             21
            Explanation of tables                                         21
            Subtitle A--Authorization of Appropriations                   22

   Chemical demilitarization program (sec. 107)                            

        24                                                                      

          Subtitle B--Army Programs                                     

        25                                                                      

      Multiyear procurement authority for certain Army and Navy programs   
   (sec. 111)                                                              
        45                                                                      

   Army transformation (sec. 112)                                          

        45                                                                      

          Other Army Programs                                           

        49                                                                      

   Army Aircraft                                                           

        49                                                                      

   Utility aircraft                                                        

        49                                                                      

   UH 60 Blackhawk                                                         

        50                                                                      

   Longbow                                                                 

        50                                                                      

   Kiowa Warrior                                                           

        51                                                                      

   Avionics support equipment                                              

        51                                                                      

   Aircrew integrated systems                                              

        51                                                                      

   Army Missile                                                            

        51                                                                      

   Army tactical missile system--system summary                            

        51                                                                      

   Stinger modifications                                                   

        51                                                                      

   Weapons and Tracked Combat Vehicles                                     

        52                                                                      

   Carrier modifications                                                   

        52                                                                      

   Breacher system modification                                            

        52                                                                      

   Heavy assault bridge system modifications                               

        52                                                                      

   Machine gun, squad automatic weapon                                     

        53                                                                      

   Mark 19 grenade launcher                                                

        53                                                                      

   M4 carbine modifications                                                

        53                                                                      

   Army Ammunition                                                         

        53                                                                      

   Procurement of ammunition, Army                                         

        53                                                                      

   Armament retooling and manufacturing support initiative                 

        53                                                                      

   Other Army Procurement                                                  

        54                                                                      

   Family of medium tactical vehicles                                      

        54                                                                      

   Weapons of Mass Destruction Civil Support Teams                         

        54                                                                      

   Secure mobile anti-jam reliable tactical terminal                       

        55                                                                      

   Army data distribution system                                           

        56                                                                      

   Area common user system modification program                            

        56                                                                      

   Forward area air defense ground based sensor                            

        56                                                                      

   Night vision                                                            

        56                                                                      

   Forward area air defense command and control                            

        57                                                                      

   Striker-command and control system                                      

        57                                                                      

   Standard integrated command post system                                 

        57                                                                      

   Lightweight maintenance enclosure                                       

        57                                                                      

   Roller, vibratory, self-propelled                                       

        57                                                                      

   Deployable universal combat earth mover                                 

        58                                                                      

          Subtitle C--Navy Programs                                     

        59                                                                      

   CVNX 1 nuclear aircraft carrier program (sec. 121)                      

        83                                                                      

   Arleigh Burke-class destroyer program (sec. 122)                        

        83                                                                      

   Virginia-class submarine program (sec. 123)                             

        84                                                                      

   ADC(X) ship program (sec. 124)                                          

        85                                                                      

      Refueling and Complex Overhaul Program of the CVN 69 nuclear aircraft
   carrier (sec. 125)                                                      
        85                                                                      

          Other Navy Programs                                           

        86                                                                      

   Navy Aircraft                                                           

        86                                                                      

   Airborne low frequency sonar                                            

        86                                                                      

   SH 60 helicopters                                                       

        86                                                                      

   CH 60 helicopters                                                       

        86                                                                      

   UC 35 aircraft                                                          

        86                                                                      

   C 40A aircraft                                                          

        86                                                                      

   T 45 aircraft                                                           

        87                                                                      

   Joint primary air training system                                       

        87                                                                      

   KC 130J                                                                 

        87                                                                      

   EA 6B aircraft automatic flight control system                          

        87                                                                      

   AV 8B precision targeting pod                                           

        88                                                                      

    18 modifications                                                       

        88                                                                      

   AH 1W series                                                            

        88                                                                      

   H 1 series                                                              

        88                                                                      

   P 3 aircraft modifications                                              

        89                                                                      

   Tactical aircraft moving map capability                                 

        89                                                                      

   Navy Weapons                                                            

        90                                                                      

   Joint standoff weapon                                                   

        90                                                                      

   Weapons industrial facilities                                           

        90                                                                      

   Mark 48 advanced capability torpedo modifications                       

        90                                                                      

   Navy and Marine Corps Ammunition                                        

        90                                                                      

   Procurement of ammunition, Navy and Marine Corps                        

        90                                                                      

   Laser-guided bomb components                                            

        90                                                                      

   Training ordnance                                                       

        90                                                                      

   Navy Shipbuilding and Conversion                                        

        90                                                                      

   Shipbuilding overview                                                   

        90                                                                      

   LHD 8 advance procurement                                               

        93                                                                      

   Other Navy Procurement                                                  

        94                                                                      

   AN/WSN 7 inertial navigation system                                     

        94                                                                      

   Surveillance and security for military sealift ships                    

        94                                                                      

   Integrated condition assessment system                                  

        95                                                                      


   AN/SPS 73(V) surface search radar                                       

        95                                                                      

   Side-scanning sonar for forward deployed minesweepers                   

        95                                                                      

   Joint Engineering Data Management and Information Control System        

        95                                                                      

   Aviation life support                                                   

        96                                                                      

   Gun fire control radar performance improvements                         

        96                                                                      

   Cruiser smart ship                                                      

        96                                                                      

   NULKA anti-ship missile decoy system                                    

        97                                                                      

   Civil engineering support equipment                                     

        97                                                                      

   Marine Corps Procurement                                                

        97                                                                      

   Night vision                                                            

        97                                                                      

   Radio systems                                                           

        97                                                                      

          Subtitle D--Air Force Programs                                

        98                                                                      

      Repeal of requirement for annual report on B 2 bomber aircraft       
   program (sec. 131)                                                      
        114                                                                     

          Other Air Force Programs                                      

        114                                                                     

   Air Force Aircraft                                                      

        114                                                                     

   EC 130J                                                                 

        114                                                                     

   Joint primary aircraft training system                                  

        114                                                                     

   Joint surveillance and target attack radar system                       

        114                                                                     

   B 52H aircraft modifications                                            

        115                                                                     

   A 10 aircraft integrated flight and fire control computer               

        115                                                                     

    15 aircraft modifications                                              

        115                                                                     

    16 aircraft modifications                                              

        115                                                                     

   C 17 simulator                                                          

        116                                                                     

   Defense airborne reconnaissance program aircraft modifications          

        116                                                                     

   ALE 50 towed decoys                                                     

        116                                                                     

   Compass Call                                                            

        117                                                                     

   Defense airborne reconnaissance program                                 

        117                                                                     

   Air Force Missile                                                       

        117                                                                     

   Global Positioning System                                               

        117                                                                     

   Titan space boosters                                                    

        117                                                                     

   Medium launch vehicle                                                   

        118                                                                     

   Air Force Ammunition                                                    

        118                                                                     

   Procurement of ammunition, Air Force                                    

        118                                                                     

   Other Air Force Procurement                                             

        118                                                                     

   Combat training ranges                                                  

        118                                                                     

   Night vision goggles                                                    

        118                                                                     

   Defense-Wide Programs                                                   

        119                                                                     

   Advanced SEAL delivery system design enhancements                       

        124                                                                     

   Special operations forces small arms and support equipment              

        124                                                                     

   Nuclear, Biological and Chemical Defense Enhancement Kits               

        125                                                                     

   Communications assistance for law enforcement act                       

        125                                                                     

          Subtitle E--Other Matters                                     

        125                                                                     

   Pueblo Chemical Depot chemical agent destruction technologies (sec. 141)

        125                                                                     

          Other Items of Interest                                       

        126                                                                     

   Acquisition programs at the National Security Agency                    

        126                                                                     

   Army aviation                                                           

        126                                                                     

   C 5 aircraft upgrades                                                   

        127                                                                     

   Electronic digital compass system                                       

        127                                                                     

   Single channel ground and airborne radio system                         

        128                                                                     

   Soldier's portable on-system repair tool                                

        128                                                                     

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

        129                                                                     

          Explanation of tables                                         

        129                                                                     

          Subtitle A--Authorization of Appropriations                   

        130                                                                     

                    Subtitle B--Program Requirements, Restrictions, And 
          Limitations                                                   
        131                                                                     

   Fiscal year 2002 joint field experiment (sec. 211)                      

        131                                                                     

   Nuclear aircraft carrier design and production modeling (sec. 212)      

        132                                                                     

   DD 21 class destroyer program (sec. 213)                                

        133                                                                     

    22 aircraft program (sec. 214)                                         

        136                                                                     

   Joint strike fighter (sec. 215)                                         

        137                                                                     

   Global Hawk high altitude endurance unmanned aerial vehicle (sec. 216)  

        139                                                                     

      Unmanned advanced capability aircraft and ground combat vehicles     
   (sec. 217)                                                              
        141                                                                     

   Army space control technology (sec. 218)                                

        142                                                                     

   Russian American Observation Satellites program (sec. 219)              

        143                                                                     

   Joint Biological Defense Program (sec. 220)                             

        143                                                                     

      Report on biological warfare defense vaccine research and development
   programs (sec. 221)                                                     
        144                                                                     

          Subtitle C--Other Matters                                     

        145                                                                     

   Mobile offshore base (sec. 241)                                         

        145                                                                     

   Air Force science and technology planning (sec. 242)                    

        145                                                                     

          Additional Matters of Interest                                

        147                                                                     

   Army                                                                    

        147                                                                     

   Counter-terrorism basic research                                        

        156                                                                     

   Composite materials                                                     

        156                                                                     

   Advanced missile composite components                                   

        156                                                                     

   Smart truck initiative                                                  

        156                                                                     

   Portable hybrid electric power system                                   

        156                                                                     

   Thermoelectric power generation                                         

        156                                                                     

   Operational support                                                     

        157                                                                     

   Equipment readiness                                                     

        157                                                                     

   Fuel cell auxiliary power units                                         

        157                                                                     


   Big Crow program office                                                 

        157                                                                     

   Army Space and Missile Defense Command Simulations                      

        158                                                                     

   Aero-acoustics instrumentation                                          

        158                                                                     

   Acoustic technology research                                            

        158                                                                     

   Missile defense flight experiment                                       

        158                                                                     

   Radar power technology                                                  

        158                                                                     

   Scramjet acoustic combustion enhancement                                

        158                                                                     

   Space and missile defense battle lab                                    

        158                                                                     

   Supercluster distributed memory technology                              

        159                                                                     

   Tactical High Energy Laser                                              

        159                                                                     

   Anti-malarial research                                                  

        159                                                                     

   Electronic warfare development                                          

        159                                                                     

   Threat simulator development                                            

        159                                                                     

   Multiple launch rocket system product improvement program               

        159                                                                     

   Joint Land Attack Cruise Missile Defense Elevated Netted Sensor         

        160                                                                     

   Communications and networking technologies                              

        160                                                                     

   Navy                                                                    

        161                                                                     

   Free electron laser                                                     

        171                                                                     

   Biodegradable polymers                                                  

        171                                                                     

   Bioenvironmental hazards research                                       

        171                                                                     

   Nontraditional warfare initiatives                                      

        171                                                                     

      Communications, command, and control, intelligence, surveillance, and
   reconnaissance                                                          
        171                                                                     

   Cognitive research                                                      

        172                                                                     

   Ceramic and carbon based composites                                     

        172                                                                     

   Nanoscale sensor research                                               

        172                                                                     

   Littoral area acoustic demonstrations                                   

        172                                                                     

   Computational engineering design                                        

        172                                                                     

   Advanced water-jet technology                                           

        173                                                                     

   Composite helicopter hangar door                                        

        173                                                                     

   Composite modules for ship hull construction                            

        173                                                                     

   Laser welding and cutting                                               

        173                                                                     

   Supply chain best practices                                             

        174                                                                     

   Virtual test bed for reconfigurable ship                                

        174                                                                     

   Ocean modeling for mine and submarine warfare                           

        174                                                                     

   Marine Corps advanced technology transition                             

        175                                                                     

   Integrated combat weapons system for mine countermeasures ships         

        175                                                                     

   Trident SSGN design                                                     

        175                                                                     

   Enhanced performance electric motor brush technology                    

        176                                                                     

   Submarine composite sail                                                

        176                                                                     

   Joint command and control ship                                          

        176                                                                     

   Shipboard simulators for Marine Corps operations                        

        177                                                                     

   Navy common command and decision system                                 

        177                                                                     

   Advanced amphibious assault vehicle                                     

        178                                                                     

   Marine Corps ground combat/support system                               

        178                                                                     

   Extended range guided munition                                          

        178                                                                     

   Nonlethal research and technology development                           

        179                                                                     

   Navy collaborative integrated information technology initiative         

        179                                                                     

   Parametric airborne dipping sonar                                       

        179                                                                     

   Multi-mission helicopter upgrade development                            

        180                                                                     

   Power node control centers                                              

        180                                                                     

   Ship manpower reduction initiative                                      

        180                                                                     

   SPY 3 and volume search radars                                          

        181                                                                     

      Acoustic rapid commercial-off-the-shelf insertion of multi-purpose   
   processor                                                               
        181                                                                     

   Submarine antenna technology improvement                                

        181                                                                     

   Submarine common architecture                                           

        182                                                                     

   Advanced tactical software for submarines                               

        182                                                                     

   NULKA anti-ship missile decoy system                                    

        182                                                                     

   Navy single integrated human resources strategy                         

        182                                                                     

   Marine Corps research university                                        

        183                                                                     

   Reentry system applications program                                     

        183                                                                     

   Joint tactical combat training system                                   

        183                                                                     

    14 tactical reconnaissance                                             

        183                                                                     

   Software interoperability process tools                                 

        184                                                                     

   Satellite communications systems integration initiative                 

        184                                                                     

   Distributed engineering plant                                           

        184                                                                     

   Air Force                                                               

        186                                                                     

   Laser processing tools                                                  

        196                                                                     

   Resin systems for Air Force applications                                

        196                                                                     

   Thermal protection systems                                              

        196                                                                     

   Aeronautical research                                                   

        196                                                                     

   Polyphenylene benzobisoxozole membrane fuel cell                        

        196                                                                     

   Variable displacement vane pump                                         

        197                                                                     

   High frequency active auroral research                                  

        197                                                                     

   Space survivability                                                     

        197                                                                     

   Aluminum aerostructures                                                 

        197                                                                     

   Hyperspectral research                                                  

        197                                                                     

   Fiber optical control technology                                        

        197                                                                     

   Low cost launch technology                                              

        197                                                                     

   Micro-satellite technology                                              

        198                                                                     

   Miniature satellite threat reporting system                             

        198                                                                     

   Next generation composite launch vehicle payload fairings and shrouds   

        198                                                                     

   Solar orbital transfer vehicle                                          

        198                                                                     

   Space maneuver vehicle                                                  

        198                                                                     

   Upper stage flight experiment                                           

        198                                                                     

   Space Based Laser program                                               

        199                                                                     


   Airborne laser program                                                  

        199                                                                     

   Rocket systems launch program                                           

        200                                                                     

   Wideband gapfiller military satellite communications                    

        200                                                                     

   B 2 advanced technology bomber                                          

        200                                                                     

   Milstar satellite communications                                        

        200                                                                     

    15E squadrons                                                          

        200                                                                     

   Hyperspectral system development                                        

        200                                                                     

   Extended range cruise missile                                           

        200                                                                     

   Joint surveillance and target attack radar system                       

        201                                                                     

   Lighthouse cyber security                                               

        201                                                                     

   Dragon U 2                                                              

        201                                                                     

   Defense-Wide                                                            

        202                                                                     

   Advanced photonic composites research                                   

        211                                                                     

   Infrasound detection capability basic research                          

        211                                                                     

   Personnel research initiative                                           

        211                                                                     

   Defense experimental program to stimulate competitive research          

        211                                                                     

   Chemical and biological defense basic research                          

        211                                                                     

   Ballistic Missile Defense Organization funding and programmatic guidance

        212                                                                     

   Bio-defense research                                                    

        214                                                                     

   Hybrid sensor suite                                                     

        214                                                                     

   High definition systems                                                 

        214                                                                     

   Three dimensional structures research                                   

        215                                                                     

   Biological agent sensor technologies                                    

        215                                                                     

   Blast mitigation testing                                                

        215                                                                     

   Facial recognition access control technology                            

        215                                                                     

   Chemical and Biological Incident Response Force detector technologies   

        215                                                                     

   Consequence Management Information System                               

        216                                                                     

   Reactive materials                                                      

        216                                                                     

   Complex systems design                                                  

        216                                                                     

   Competitive sustainment initiative                                      

        216                                                                     

      Weapons of Mass Destruction (WMD) Attack-Effects-Response Assessment 
   capability at U.S. Joint Forces Command (USJFCOM)                       
        217                                                                     

   Integrated data environment technology                                  

        217                                                                     

      Demonstration/validation of technology for the remediation of        
   unexploded ordnance at active, inactive, closing, transferred, and      
   transferring ranges                                                     
        217                                                                     

   Next generation anthrax vaccine                                         

        218                                                                     

   Remote Ordnance Neutralization System                                   

        218                                                                     

   Cyber attack sensing and warning                                        

        218                                                                     

   Information Operations Technology Center                                

        218                                                                     

   Trusted RUBIX                                                           

        218                                                                     

   Virtual worlds initiative                                               

        218                                                                     

   Intelligent spatial technologies for smart mapping systems              

        219                                                                     

   Joint Mapping Tool Kit                                                  

        219                                                                     

   Information assurance testbed                                           

        219                                                                     

      Joint course of action analysis and targeting support for information
   operations                                                              
        219                                                                     

   Advanced lightweight grenade launcher                                   

        219                                                                     

   Management reform for Department of Defense test and evaluation centers 

        220                                                                     

   Augmented reality fire-fighting training                                

        221                                                                     

          Other Items of Interest                                       

        221                                                                     

   Aircraft carrier modernization                                          

        221                                                                     

   Advanced ship hull demonstrators                                        

        221                                                                     

   Crusader                                                                

        222                                                                     

   Future ship technology research and development                         

        222                                                                     

   Joint training and experimentation                                      

        223                                                                     

   Joint operational test bed system                                       

        224                                                                     

   Maritime patrol aircraft                                                

        224                                                                     

   Patriot theater missile defense                                         

        224                                                                     

   Prophylactic pharmaceuticals                                            

        225                                                                     

   Radiation hardened electronics investment strategy                      

        225                                                                     

   Small arms fire control system                                          

        226                                                                     

   Transition of successful research projects into the acquisition system  

        226                                                                     

   Title III--Operation And Maintenance                                    

        227                                                                     

          Explanation of tables                                         

        227                                                                     

          Subtitle A--Authorization of Appropriations                   

        228                                                                     

   Armed Forces Retirement Home (sec. 303)                                 

        261                                                                     

                    Subtitle B--Program Requirements, Restrictions, and 
          Limitations                                                   
        261                                                                     

   Impact aid for children with disabilities (sec. 311)                    

        261                                                                     

   Joint Warfighting Capabilities Assessment Teams (sec. 312)              

        261                                                                     

          Subtitle C--Humanitarian and Civic Assistance                 

        261                                                                     

      Increased authority to provide health care services as humanitarian  
   and civic assistance (sec. 321)                                         
        261                                                                     

      Use of humanitarian and civic assistance funding for pay and         
   allowances of special operations command reserves furnishing demining   
   training and related assistance as humanitarian assistance (sec. 322)   
        262                                                                     

          Subtitle D--Department of Defense Industrial Facilities       

        262                                                                     

      Codification and improvement of armament retooling and manufacturing 
   support programs (sec. 331)                                             
        263                                                                     


   Centers of industrial and technical excellence (sec. 332)               

        263                                                                     

      Effects of outsourcing on overhead costs of centers of industrial and
   technical excellence and ammunition plants (sec. 333)                   
        264                                                                     

      Revision of authority to waive limitation on performance of          
   depot-level maintenance (sec. 334)                                      
        264                                                                     

          Subtitle E--Environmental Provisions                          

        265                                                                     

   Environmental restoration accounts (sec. 341)                           

        265                                                                     

      Payments of fines and penalties for environmental compliance         
   violations (sec. 342)                                                   
        265                                                                     

      Annual reports under Strategic Environmental Research and Development
   Program (sec. 343)                                                      
        267                                                                     

      Modification of authority for indemnification of transferees of      
   closing defense property (sec. 344)                                     
        267                                                                     

      Payment of fines or penalties imposed for environmental compliance   
   violations at certain Department of Defense facilities (sec. 345)       
        267                                                                     

      Reimbursement for certain costs in connection with the former        
   Nansemond Ordnance Depot Site, Suffolk, Virginia (sec. 346)             
        268                                                                     

   Environmental restoration activities (sec. 347)                         

        268                                                                     

   Ship disposal project (sec. 348)                                        

        269                                                                     

      Report on the Defense Environmental Security Corporate Information   
   Management Program (sec. 349)                                           
        269                                                                     

   Report on Plasma Energy Pyrolysis System (sec. 350)                     

        269                                                                     

          Subtitle F--Other Matters                                     

        269                                                                     

      Effects of worldwide contingency operations on readiness of certain  
   military aircraft and equipment (sec. 361)                              
        269                                                                     

   Realistic budgeting for readiness requirements of the Army (sec. 362)   

        270                                                                     

      Additions to plan for ensuring visibility over all in-transit end    
   items and secondary items (sec. 363)                                    
        270                                                                     

      Performance of emergency response functions at chemical weapons      
   storage installations (sec. 364)                                        
        271                                                                     

      Congressional notification of use of radio frequency spectrum by a   
   system entering engineering and manufacturing development (sec. 365)    
        271                                                                     

      Monitoring of value of performance of Department of Defense functions
   by workforces selected from between public and private workforces (sec. 
   366)                                                                    
        272                                                                     

   Suspension of reorganization of naval audit service (sec. 367)          

        272                                                                     

   Investment of commissary trust revolving fund (sec. 368)                

        272                                                                     

   Economic procurement of distilled spirits (sec. 369)                    

        272                                                                     

   Resale of armor piercing ammunition disposed of by the Army (sec. 370)  

        273                                                                     

      Damage to aviation facilities caused by alkali silica reactivity     
   (sec. 371)                                                              
        273                                                                     

      Reauthorization of pilot program for acceptance and use of landing   
   fees charged for use of domestic military airfields by civil aircraft   
   (sec. 372)                                                              
        273                                                                     

      Reimbursement by civil air carriers for support provided at Johnston 
   Atoll (sec. 373)                                                        
        273                                                                     

   Review of costs of maintaining historical properties (sec. 374)         

        273                                                                     

      Extension of authority to sell certain aircraft for use in wildfire  
   suppression (sec. 375)                                                  
        274                                                                     

   Overseas airlift service on Civil Reserve Air Fleet aircraft (sec. 376) 

        274                                                                     

          Additional Matters of Interest                                

        275                                                                     

   Army                                                                    

        275                                                                     

   Real property maintenance                                               

        275                                                                     

   Excess carryover-defense working capital fund activities                

        275                                                                     

   Foreign currency fluctuation                                            

        276                                                                     

   Civilian personnel pay in excess of requirements                        

        276                                                                     

   Army equipment maintenance                                              

        277                                                                     

   Battlefield mobility enhancement system                                 

        277                                                                     

   Army aviation spares                                                    

        277                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        277                                                                     

   Navy                                                                    

        277                                                                     

   Navy spares                                                             

        277                                                                     

   Ship depot maintenance                                                  

        278                                                                     

   Oceanography                                                            

        278                                                                     

   Training range upgrades                                                 

        278                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        278                                                                     

   Navy information technology center                                      

        278                                                                     

   US Navy Call Center                                                     

        279                                                                     

   Marine Corps                                                            

        279                                                                     

   USMC initial issue                                                      

        279                                                                     

   USMC equipment maintenance                                              

        279                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        279                                                                     

   Air Force                                                               

        280                                                                     


   Air Force base operations                                               

        280                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        280                                                                     

   Air Force readiness spares packages                                     

        280                                                                     

   Air Force nuclear, biological and chemical defense                      

        280                                                                     

   Defense-Wide                                                            

        281                                                                     

   Mobility enhancements                                                   

        281                                                                     

   Mechanization of Contract Administration Service (MOCAS)                

        281                                                                     

   Partnership for Peace Program (Warsaw Initiative)                       

        281                                                                     

   Defense Environmental Security Corporate Information Management Program 

        282                                                                     

   Domestic preparedness center                                            

        282                                                                     

   Cultural and historic activities                                        

        282                                                                     

   Defense Travel System                                                   

        283                                                                     

   Command information superiority architecture program                    

        283                                                                     

   Guard and Reserve Components                                            

        284                                                                     

   Air Force Reserve equipment maintenance                                 

        284                                                                     

   National Guard initial issue                                            

        284                                                                     

   Distributed mission trainer                                             

        284                                                                     

   Miscellaneous                                                           

        284                                                                     

   Overseas humanitarian, disaster, and civic affairs                      

        284                                                                     

          Other Items of Interest                                       

        285                                                                     

   Charlestown Naval Auxiliary Landing Field, Charlestown, Rhode Island    

        285                                                                     

   Commander-in-Chiefs Initiative Fund                                     

        286                                                                     

   Inventory of financial management and feeder systems                    

        286                                                                     

   Joint computer-aided acquisition and logistics support (JCALS) program  

        287                                                                     

   Mechanization of Contract Administration Service                        

        287                                                                     

   National Defense Center for Environmental Excellence                    

        287                                                                     

      Pesticide contamination at the former Fort Devens, Devens,           
   Massachusetts, and other closed and active military installations       
        288                                                                     

      Revised requirements for report on Defense use of smart card as PKI  
   authentication device carrier                                           
        289                                                                     

   Title IV--Military Personnel Authorizations                             

        291                                                                     

          Subtitle A--Active Forces                                     

        291                                                                     

   End strengths for active forces (sec. 401)                              

        291                                                                     

          Subtitle B--Reserve Forces                                    

        291                                                                     

   End strengths for Selected Reserve (sec. 411)                           

        291                                                                     

      End strengths for reserves on active duty in support of the reserves 
   (sec. 412)                                                              
        292                                                                     

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

        292                                                                     

   Fiscal year 2001 limitation on non-dual status technicians (sec. 414)   

        292                                                                     

      Increase in number of members in certain grades authorized to be on  
   active duty in support of the reserves (sec. 415)                       
        293                                                                     

          Subtitle C--Other Matters Relating to Personnel               

   Strengths                                                               

        293                                                                     

      Suspension of strength limitations during war or national emergency  
   (sec. 421)                                                              
        293                                                                     

      Exclusion of certain reserve component members on active duty for    
   more than 180 days from active component end strengths (sec. 422)       
        293                                                                     

      Exclusion of Army and Air Force medical and dental officers from     
   limitations on strengths of reserve commissioned officers in grades     
   below brigadier general (sec. 423)                                      
        293                                                                     

      Authority for temporary increases in number of reserve personnel     
   serving on active duty or full-time National Guard duty in certain      
   grades (sec. 424)                                                       
        293                                                                     

      Temporary exemption of Director of the National Security Agency from 
   limitations on number of Air Force officers above major general (sec.   
   425)                                                                    
        293                                                                     

          Subtitle D--Authorization of Appropriations                   

        294                                                                     

   Authorization of appropriations for military personnel (sec. 431)       

        294                                                                     

   Title V--Military Personnel Policy                                      

        295                                                                     

          Subtitle A--Officer Personnel Policy                          

        295                                                                     

      Eligibility of Army Reserve colonels and brigadier generals for      
   position vacancy promotions (sec. 501)                                  
        295                                                                     

   Promotion Zones for Coast Guard Reserve Officers (sec. 502)             

        295                                                                     

   Time for release of officer promotion selection board reports (sec. 503)

        295                                                                     

      Clarification of authority for posthumous commissions and warrants   
   (sec. 504)                                                              
        295                                                                     

      Inapplicability of active-duty list promotion, separation, and       
   involuntary retirement authorities to reserve general and flag officers 
   serving in certain positions designated by the Chairman of the Joint    
   Chiefs of Staff (sec. 505)                                              
        295                                                                     

   Review of actions of selection boards (sec. 506)                        

        296                                                                     

      Extension to all Air Force biomedical sciences officers of authority 
   to retain until specified age (sec. 507)                                
        297                                                                     

      Termination of application requirement for consideration of officers 
   for continuation on the Reserve Active-Status List (sec. 508)           
        297                                                                     

      Technical corrections relating to retired grade of reserve           
   commissioned officers (sec. 509)                                        
        297                                                                     

      Grade of chiefs of reserve components and directors of National Guard
   components (sec. 510)                                                   
        297                                                                     

          Subtitle B--Joint Officer Management                          

        298                                                                     

   Joint officer management (sec. 521--528)                                

        298                                                                     

          Subtitle C--Education and Training                            

        298                                                                     

      Eligibility of children of reserves for Presidential appointment to  
   service academies (sec. 541)                                            
        298                                                                     

      Selection of foreign students to receive instruction at service      
   academies (sec. 542)                                                    
        298                                                                     

      Repeal of contingent funding increase for Junior Reserve Officers    
   Training Corps (sec. 543)                                               
        298                                                                     

      Revision of authority for Marine Corps platoon leader class tuition  
   assistance program (sec. 544)                                           
        298                                                                     

          Subtitle D--Matters Relating to Recruiting                    

        299                                                                     

   Army recruiting pilot programs (sec. 551)                               

        299                                                                     

      Enhancement of the joint and service recruitment market research and 
   advertising programs (sec. 552)                                         
        299                                                                     

   Access to secondary schools for military recruiting purposes (sec. 553) 

        299                                                                     

          Subtitle E--Other Matters                                     

        300                                                                     

      Authority for award of Medal of Honor to certain specified persons   
   (sec. 561)                                                              
        300                                                                     

      Waiver of time limitations for award of certain decorations to       
   certain persons (sec. 562)                                              
        300                                                                     

      Ineligibility for involuntary separation pay upon declination of     
   selection for continuation on active duty (sec. 563)                    
        300                                                                     

   Recognition by states of military testamentary instruments (sec. 564)   

        300                                                                     

      Sense of Congress on the court-martial conviction of Captain Charles 
   Butler McVay, Commander of the USS Indianapolis, and the courageous     
   service of its crew (sec. 565)                                          
        301                                                                     

          Other Items of Interest                                       

        301                                                                     

   Automated in- and out-processing of military personnel                  

        301                                                                     

   Funeral honors for members of the uniformed services                    

        302                                                                     

   Information related to alternatives to the Survivor Benefit Plan        

        302                                                                     


   Prevention of alcohol-related incidents                                 

        302                                                                     

   Study on the use of peyote by military personnel                        

        303                                                                     

   Title VI--Compensation and Other Personnel Benefits                     

        305                                                                     

          Subtitle A--Pay and Allowances                                

        305                                                                     

   Increase in basic pay for Fiscal Year 2001 (sec. 601)                   

        305                                                                     

   Corrections for basic pay tables (sec. 602)                             

        305                                                                     

   Pay in lieu of allowance for funeral honors duty (sec. 603)             

        305                                                                     

      Clarification of service excluded in computation of creditable       
   service as a Marine Corps officer (sec. 604)                            
        305                                                                     

   Calculation of Basic Allowance for Housing (sec. 605)                   

        305                                                                     

      Eligibility of members in grade E 4 to receive basic allowance for   
   housing while on sea duty (sec. 606)                                    
        306                                                                     

      Personal money allowance for the senior enlisted members of the armed
   forces (sec. 607)                                                       
        306                                                                     

   Increased uniform allowances for officers (sec. 608)                    

        306                                                                     

      Cabinet-level authority to prescribe requirements and allowance for  
   clothing of enlisted members (sec. 609)                                 
        306                                                                     

          Subtitle B--Bonuses and Special Incentive Pays                

        306                                                                     

      Extension of certain bonuses and special pay authorities for reserve 
   forces (sec. 611)                                                       
        306                                                                     

      Extension of certain bonuses and special pay authorities for nurse   
   officer candidates, registered nurses, and nurse anesthetists (sec. 612)
        307                                                                     

      Extension of authorities relating to payment of other bonuses and    
   special pays (sec. 613)                                                 
        307                                                                     

      Consistency of authorities for special pay for reserve medical and   
   dental officers (sec. 614)                                              
        307                                                                     

   Special pay for physician assistants of the Coast Guard (sec. 615)      

        307                                                                     

      Authorization of special pay and accession bonus for pharmacy        
   officers (sec. 616)                                                     
        307                                                                     

   Corrections of references to Air Force veterinarians (sec. 617)         

        307                                                                     

      Entitlement of active duty officers of the Public Health Service     
   Corps to special pays and bonuses of health professional officers of the
   armed forces (sec. 618)                                                 
        308                                                                     

   Career sea pay (sec. 619)                                               

        308                                                                     

   Increased maximum rate of special duty pay assignment pay (sec. 620)    

        308                                                                     

      Expansion of applicability of authority for critical skills          
   enlistment bonus to include all armed forces (sec. 621)                 
        308                                                                     

          Subtitle C--Travel and Transportation Allowances              

        308                                                                     

      Advance payments for temporary lodging of members and dependents     
   (sec. 631)                                                              
        308                                                                     

      Incentive for shipping and storing household goods in less than      
   average weights (sec. 632)                                              
        309                                                                     

   Expansion of funded student travel (sec. 633)                           

        309                                                                     

      Benefits for members not transporting personal motor vehicles        
   overseas (sec. 634)                                                     
        309                                                                     

          Subtitle D--Retirement Benefits                               

        309                                                                     

      Exception to high-36 month retired pay computation for members       
   retired following a disciplinary reduction in grade (sec. 641)          
        309                                                                     

      Automatic participation in Reserve Component Survivor Benefit Plan   
   unless declined with spouses' consent (sec. 642)                        
        309                                                                     

   Participation in thrift savings plan (sec. 643)                         

        310                                                                     

      Retirement from active reserve service after regular retirement (sec.
   644)                                                                    
        310                                                                     

      Same treatment for federal judges as for other federal officials     
   regarding payment of military retired pay (sec. 645)                    
        310                                                                     

          Subtitle E--Other Matters                                     

        310                                                                     

      Reimbursement of recruiting and ROTC personnel for parking expenses  
   (sec. 651)                                                              
        310                                                                     

      Extension of deadline for filing claims associated with capture and  
   internment of certain persons by North Vietnam (sec. 652)               
        311                                                                     

      Settlement of claims for payments for unused accrued leave and for   
   retired pay (sec. 653)                                                  
        311                                                                     

      Eligibility of certain members of the Individual Ready Reserve for   
   Servicemembers' Group Life Insurance (sec. 654)                         
        311                                                                     

      Authority to pay gratuity to certain veterans of Bataan and          
   Corregidor (sec. 655)                                                   
        311                                                                     

          Other Items of Interest                                       

        311                                                                     

   Adjustments to the Basic Allowance for Housing                          

        311                                                                     

   Title VII--Health Care                                                  

        313                                                                     

          Subtitle A--Senior Health Care                                

        313                                                                     

   Extension of TRICARE senior supplement demonstration program (sec. 701) 

        313                                                                     

   TRICARE senior prime demonstration program (sec. 702)                   

        313                                                                     

      Extension and expansion of demonstration project for participation of
   uniformed services personnel in the Federal Employee Health Benefit     
   program (sec. 703)                                                      
        313                                                                     


   Implementation of redesigned pharmacy system (sec. 704)                 

        MDBU314                                                                 

          Subtitle B--TRICARE Program                                   

        MDBU314                                                                 

      Additional beneficiaries under TRICARE prime remote program in CONUS 
   (sec. 711)                                                              
        MDBU314                                                                 

   Elimination of copayments for immediate family (sec. 712)               

        MDBU314                                                                 

      Improvement in business practices in the administration of the       
   TRICARE program (sec. 713)                                              
        MDBU314                                                                 

                    Subtitle C--joint Initiatives With Department of    
          Veterans Affairs                                              
        MDBU315                                                                 

      Tracking patient safety in military and veterans health care systems 
   (sec. 721)                                                              
        MDBU315                                                                 

   Pharmaceutical identification technology (sec. 722)                     

        MDBU315                                                                 

   Medical informatics (sec. 723)                                          

        MDBU315                                                                 

          Subtitle D--other Matters                                     

        MDBU315                                                                 

   Permanent authority for certain pharmaceutical benefits (sec. 731)      

        MDBU315                                                                 

      Provision of domiciliary and custodial care for CHAMPUS beneficiaries
   (sec. 732)                                                              

      Medical and dental care for medal of honor recipients and their      
   dependents (sec. 733)                                                   
        MDBU316                                                                 

      School-required physical examinations for certain minor dependents   
   (sec. 734)                                                              
        MDBU316                                                                 

      Two-year extension of dental and medical benefits for surviving      
   dependents of certain deceased members (sec. 735)                       
        MDBU316                                                                 

      Extension of authority for contracts for medical services at         
   locations outside medical treatment facilities (sec. 736)               
        MDBU317                                                                 

      Transition of chiropractic health care demonstration program to      
   permanent status (sec. 737)                                             
        MDBU317                                                                 

      Use of information technology for enhancement of delivery of         
   administrative services under the Defense Health Program (sec. 738)     
        MDBU317                                                                 

   Patient care reporting and management system (sec. 739)                 

        MDBU318                                                                 

   Health care management demonstration program (sec. 740)                 

        MDBU318                                                                 

      Studies of accrual financing for health care for military retirees   
   (sec. 741)                                                              
        MDBU318                                                                 

      Augmentation of Army Medical Department by reserve officers of the   
   Public Health Service Corps (sec. 742)                                  
        MDBU318                                                                 

          Other Items of Interest                                       

        MDBU319                                                                 

   Consultation with schools of pharmacy and nursing                       

        MDBU319                                                                 

   Financial assistance for those beneficiaries requiring animal assistance

        MDBU319                                                                 

   Health care benefits for retirees living overseas                       

        MDBU319                                                                 

      Implementation of Department of Defense and Veterans Affairs         
   Department sharing initiatives                                          
        MDBU319                                                                 

      Notification of persons affected by unanticipated adverse outcomes of
   medical care                                                            
        MDBU320                                                                 

   Special pays for military health care professionals                     

        MDBU320                                                                 

      Title VIII--Acquisition Policy, Acquisition Management, and          
   MDBURelated Matters                                                     
        MDBU321                                                                 

   Improvements in procurements of services (sec. 801)                     

        MDBU321                                                                 

      Addition of threshold value requirement for applicability of a       
   reporting requirement relating to multiyear contract (sec. 802)         
        MDBU322                                                                 

   Planning for the acquisition of information systems (sec. 803)          

        MDBU322                                                                 

   Tracking of information technology purchases (sec. 804)                 

        MDBU322                                                                 

      Repeal of requirement for contractor assurances regarding the        
   completeness, accuracy, and contractual sufficiency of technical data   
   provided by contractor (sec. 805)                                       
        MDBU323                                                                 

      Extension of authority for Department of Defense acquisition pilot   
   programs (sec. 806)                                                     
        MDBU324                                                                 

      Clarification and extension of authority to carry out certain        
   prototype projects (sec. 807)                                           
        MDBU324                                                                 

      Clarification of authority of Comptroller General to review records  
   of participants in certain prototype projects (sec. 808)                
        MDBU325                                                                 

      Eligibility of small business concerns owned and controlled by women 
   for assistance under the mentor-prote AE1ge AE1 program (sec. 809)      
        MDBU325                                                                 

   Navy-Marine Corps Intranet (sec. 810)                                   

        MDBU325                                                                 

      Qualifications required for employment and assignment in contracting 
   positions (sec. 811)                                                    
        MDBU326                                                                 

   Defense acquisition workforce (sec. 812)                                

        MDBU327                                                                 

      Financial analysis of use of dual rate for quantifying overhead costs
   at army industrial facilities (sec. 813)                                
        MDBU328                                                                 

          Other Items of Interest                                       

        MDBU328                                                                 

   Application of Cost Accounting Standards to universities                

        MDBU328                                                                 

   Appropriate use of the government purchase card                         

        MDBU329                                                                 

   Availability of contractor past performance information                 

        MDBU329                                                                 

   Contracts for ancillary commercial services                             

        MDBU330                                                                 

   Online auctioning                                                       

        MDBU330                                                                 


      Performance goals and measures for quality of equipment and other    
   products                                                                
        330                                                                     

   Polyacrylonitrile carbon fibers                                         

        331                                                                     

   Procurements from the small arms production industrial base             

        332                                                                     

   Risk management in the acquisition of major systems                     

        332                                                                     

   Technical data rights for items developed exclusively at private expense

        333                                                                     

   Title IX--Department of Defense Organization and Management             

        335                                                                     

      Repeal of limitation on major Department of Defense headquarters     
   activities personnel (sec. 901)                                         
        335                                                                     

      Overall supervision of Department of Defense activities for combating
   terrorism (sec. 902)                                                    
        335                                                                     

   National Defense Panel 2001 (sec. 903)                                  

        336                                                                     

   Quadrennial National Defense Panel (sec. 904)                           

        337                                                                     

      Inspector General investigations of prohibited personnel actions     
   (sec. 905)                                                              
        337                                                                     

   Network centric warfare (sec. 906)                                      

        338                                                                     

      Additional duties for the Commission to Assess United States National
   Security Space Management and Organization (sec. 907)                   
        340                                                                     

   Special authority for administration of Navy Fisher Houses (sec. 908)   

        340                                                                     

   Organization and management of the Civil Air Patrol (sec. 909)          

        340                                                                     

   Responsibility for the National Guard Challenge Program (sec. 910)      

        340                                                                     

      Supervisory control of Armed Forces Retirement Home Board by         
   Secretary of Defense (sec. 911)                                         
        340                                                                     

   Consolidation of certain Navy gift funds (sec. 912)                     

        341                                                                     

      Temporary authority to dispose of a gift previously accepted for the 
   Naval Academy (sec. 913)                                                
        341                                                                     

   Title X--General Provisions                                             

        343                                                                     

          Subtitle A--Financial Matters                                 

        343                                                                     

      Authorization of prior emergency supplemental appropriations for     
   fiscal year 2000 (sec. 1002)                                            
        343                                                                     

   United States contributions to NATO common-funded budgets (sec. 1003)   

        343                                                                     

   Annual OMB/CBO joint report on scoring budget outlays (sec. 1004)       

        343                                                                     

   Prompt payment of contractor vouchers (sec. 1005)                       

        343                                                                     

      The repeal of certain requirements relating to timing of contract    
   payments (sec. 1006)                                                    
        344                                                                     

   Plan for prompt posting of contractual obligations (sec. 1007)          

        344                                                                     

      Plan for the electronic submission of documentation supporting claims
   for contract payments (sec. 1008)                                       
        344                                                                     

      Administrative offsets for overpayment of transportation costs (sec. 
   1009)                                                                   
        344                                                                     

          Subtitle B--Counter-Drug Activities                           

        344                                                                     

      Extension and increase of authority to provide additional support for
   counter-drug activities (sec. 1011)                                     
        345                                                                     

      Recommendations on expansion of support for counter-drug activities  
   (sec. 1012)                                                             
        345                                                                     

   Review of riverine counter-drug program (sec. 1013)                     

        346                                                                     

          Subtitle C--Strategic Forces                                  

        347                                                                     

   Revised nuclear posture review (sec. 1015)                              

        347                                                                     

      Plan for the long-term sustainment and modernization of United States
   strategic nuclear forces (sec. 1016)                                    
        348                                                                     

      Correction of scope of waiver authority for limitation on retirement 
   or dismantlement of strategic nuclear delivery vehicles (sec. 1017)     
        348                                                                     

   Study and report on hardened and deeply buried targets (sec. 1018)      

        348                                                                     

          Subtitle D--Miscellaneous Reporting Requirements              

        349                                                                     

      Annual report of the chairman of the joint chiefs of staff on        
   combatant command requirements (sec. 1021)                              
        349                                                                     

   Joint Requirements Oversight Council (sec. 1022)                        

        349                                                                     

      Preparedness of military installation first responders for incidents 
   involving weapons of mass destruction (sec. 1023)                       
        350                                                                     

      Date of submittal of reports on shortfalls in equipment procurement  
   and military construction for reserve components in future years defense
   programs (sec. 1024)                                                    
        351                                                                     

   Management review of defense logistics agency (sec. 1025)               

        351                                                                     

   Management review of defense information systems agency (sec. 1026)     

        352                                                                     

          Subtitle E--Information Security                              

        352                                                                     

      Institute for defense computer security and information protection   
   (sec. 1041)                                                             
        352                                                                     

   Information security scholarship program (sec. 1042)                    

        353                                                                     

      Process for prioritizing background investigations for security      
   clearances for Department of Defense personnel (sec. 1043)              
        354                                                                     

      Authority to withhold certain sensitive information from public      
   disclosure (sec. 1044)                                                  
        355                                                                     


      Protection of operational files of the Defense Intelligence Agency   
   (sec. 1045)                                                             
        356                                                                     

          Subtitle F--Other Matters                                     

        356                                                                     

      Commemoration of the fiftieth anniversary of the Uniform Code of     
   Military Justice (sec. 1051)                                            
        356                                                                     

      Eligibility of dependents of American Red Cross employees for        
   enrollment in Department of Defense Domestic Dependent Schools in Puerto
   Rico (sec. 1053)                                                        
        356                                                                     

      Grants to American Red Cross for Armed Services Emergency Services   
   (sec. 1054)                                                             
        356                                                                     

      Transit pass program for certain Department of Defense personnel     
   (sec. 1055)                                                             
        356                                                                     

   Fees for providing historical information to the public (sec. 1056)     

        357                                                                     

      Access to criminal history record information for national security  
   purposes (sec. 1057)                                                    
        357                                                                     

      Sense of Congress on the naming of the CVN 77 aircraft carrier (sec. 
   1058)                                                                   
        357                                                                     

   Donation of civil war cannon (sec. 1059)                                

        358                                                                     

      Maximum size of parcel posts transported overseas for Armed Forces   
   Post Offices (sec. 1060)                                                
        358                                                                     

          Other Items of Interest                                       

        358                                                                     

   Department of Defense export control procedures                         

        358                                                                     

   Firefighting equipment                                                  

        358                                                                     

   Peacekeeper intercontinental ballistic missile                          

        359                                                                     

   Title XI--Department of Defense Civilian Personnel Policy               

        361                                                                     

   Computer/electronic accommodations program (sec. 1101)                  

        361                                                                     

      Additional special pay for foreign language proficiency beneficial   
   for United States national security interests (sec. 1102)               
        361                                                                     

      Increased number of positions authorized for the defense intelligence
   senior executive service (sec. 1103)                                    
        361                                                                     

      Extension of authority for tuition reimbursement and training for    
   acquisition personnel in shortage categories (sec. 1104)                
        361                                                                     

   Work safety demonstration program (sec. 1105)                           

        361                                                                     

      Employment and compensation of employees for temporary organizations 
   established by law or executive order (sec. 1106)                       
        362                                                                     

      Extension of authority for voluntary separations in reductions in    
   force (sec. 1107)                                                       
        362                                                                     

   Electronic maintenance of performance appraisal systems (sec. 1108)     

        362                                                                     

   Approval authority for cash awards in excess of $10,000 (sec. 1109)     

        362                                                                     

   Leave for crews of certain vessels (sec. 1110)                          

        362                                                                     

      Life insurance for emergency essential Department of Defense         
   employees (sec. 1111)                                                   
        363                                                                     

      Civilian personnel services public-private competition pilot program 
   (sec. 1112)                                                             
        363                                                                     

      Extension, expansion, and revision of authority for experimental     
   personnel program for scientific and technical personnel (sec. 1113)    
        363                                                                     

   Title XII--Matters Relating to Other Nations                            

        365                                                                     

   Transfers of naval vessels to foreign countries (sec. 1201)             

        365                                                                     

      Support of United Nations-sponsored efforts to inspect and monitor   
   Iraqi weapons activities (sec. 1202)                                    
        365                                                                     

      Repeal of restriction preventing cooperative airlift support through 
   acquisition and cross servicing agreements (sec.1203)                   
        366                                                                     

      Western Hemisphere Institute for Professional Education and Training 
   (sec. 1204)                                                             
        366                                                                     

   Biannual report on Kosovo peacekeeping (sec. 1205)                      

        366                                                                     

      Mutual assistance for monitoring test explosions of nuclear devices  
   (sec. 1206)                                                             
        367                                                                     

      Consolidated annual report on Cooperative Threat Reduction assistance
   and activities (sec. 1207)                                              
        368                                                                     

      Limitation on use of funds for construction of a Russian facility for
   the destruction of chemical weapons (sec. 1208)                         
        368                                                                     

      Limitation on the use of funds for the Elimination of Weapons Grade  
   Plutonium Program (sec. 1209)                                           
        368                                                                     

   Title XIII--Navy Activities on the Island of Vieques, Puerto Rico       

        371                                                                     

   Navy activities on the island of Vieques, Puerto Rico (secs. 1301 1308) 

        371                                                                     

   Division B--Military Construction Authorizations                        

        373                                                                     

   Title XXI--Army                                                         

        393                                                                     

          Summary                                                       

        393                                                                     

   Authorized Army construction and land acquisition projects (sec. 2101)  

        393                                                                     

   Family housing (sec. 2102)                                              

        393                                                                     

   Improvement to military family housing units (sec. 2103)                

        393                                                                     


   Authorization of appropriations, Army (sec. 2104)                       

        393                                                                     

      Modification of authority to carry out certain fiscal year 2000      
   projects (sec. 2105)                                                    
        394                                                                     

      Modification of authority to carry out certain fiscal year 1999      
   project (sec. 2106)                                                     
        394                                                                     

      Modification of authority to carry out fiscal year 1998 project (sec.
   2107)                                                                   
        394                                                                     

      Authority to accept funds for realignment of certain military        
   construction project, Fort Campbell, Kentucky (sec. 2108)               
        394                                                                     

          Other Items of Interest                                       

        395                                                                     

      Presidio Housing, Golden Gate National Recreation Area, San          
   Francisco, California                                                   
        395                                                                     

   Title XXII--Navy                                                        

        397                                                                     

          Summary                                                       

        397                                                                     

   Authorized Navy construction and land acquisition projects (sec. 2201)  

        397                                                                     

   Family housing (sec. 2202)                                              

        397                                                                     

   Improvements to military family housing units (sec. 2203)               

        397                                                                     

   Authorization of appropriations, Navy (sec. 2204)                       

        397                                                                     

      Correction in authorized use of funds, Marine Corps Combat           
   Development Command, Quantico, Virginia (sec. 2205)                     
        397                                                                     

   Title XXIII--Air Force                                                  

        399                                                                     

          Summary                                                       

        399                                                                     

      Authorized Air Force construction and land acquisition projects (sec.
   2301)                                                                   
        399                                                                     

   Family housing (sec. 2302)                                              

        399                                                                     

   Improvements to military family housing units (sec. 2303)               

        399                                                                     

   Authorization of appropriations, Air Force (sec. 2304)                  

        399                                                                     

   Title XXIV--Defense Agencies                                            

        401                                                                     

          Summary                                                       

        401                                                                     

      Authorized Defense Agencies construction and land acquisition        
   projects (sec. 2401)                                                    
        401                                                                     

   Energy conservation projects (sec. 2402)                                

        401                                                                     

   Authorization of appropriations, Defense Agencies (sec. 2403)           

        401                                                                     

          Other Items of Interest                                       

        401                                                                     

      Certification of requirement for military construction projects,     
   Manta Air Base, Ecuador                                                 
        401                                                                     

   Planning and design, Defense Intelligence Agency                        

        402                                                                     

   Title XXV--North Atlantic Treaty Organization Security                  

        403                                                                     

          Summary                                                       

        403                                                                     

   Authorized NATO construction and land acquisition projects (sec. 2501)  

        403                                                                     

   Authorization of appropriations, NATO (sec. 2502)                       

        403                                                                     

   Title XXVI--Guard and Reserve Forces Facilities                         

        405                                                                     

          Summary                                                       

        405                                                                     

      Authorized Guard and Reserve construction and land acquisition       
   projects (sec. 2601)                                                    
        405                                                                     

          Other Items of Interest                                       

        405                                                                     

   Support for Weapons of Mass Destruction Civil Support Teams             

        405                                                                     

   Title XXVII--Expiration and Extension of Authorizations                 

        407                                                                     

      Expiration of authorizations and amounts required to be specified by 
   law (sec. 2701)                                                         
        407                                                                     

      Extensions of authorizations of certain fiscal year 1998 projects    
   (sec. 2702)                                                             
        407                                                                     

      Extensions of authorizations of certain fiscal year 1997 projects    
   (sec. 2703)                                                             
        407                                                                     

   Effective date (sec. 2704)                                              

        407                                                                     

   Title XXVIII--General Provisions                                        

        409                                                                     

                    Subtitle A--Military Construction Program and       
          Military Family Housing Changes                               
        409                                                                     

   Joint use military construction projects (sec. 2801)                    

        409                                                                     

      Exclusion of certain costs from determination of applicability of    
   limitation on use of funds for improvement of family housing (sec. 2802)
        409                                                                     

      Replacement of limitations on space by pay grade of military family  
   housing with requirement for local comparability of military family     
   housing (sec. 2803)                                                     
        409                                                                     

      Modification of lease authority for high-cost military family housing
   (sec. 2804)                                                             
        410                                                                     

      Applicability of competitive policy to alternative authority for     
   acquisition and improvement of military housing (sec. 2805)             
        410                                                                     

      Provisions of utilities and services under alternative authority for 
   acquisition and improvement of military housing (sec. 2806)             
        410                                                                     

      Extension of alternative authority for acquisition and improvement of
   military housing (sec. 2807)                                            
        411                                                                     

      Inclusion of readiness center in definition of armory for purposes of
   construction of reserve components facilities (sec. 2808)               
        411                                                                     

          Subtitle B--Real Property and Facilities Administration       

        411                                                                     


      Increase in threshold for reports to Congress on real property       
   transactions (sec. 2811)                                                
        411                                                                     

   Enhancements to military lease authority ( sec. 2812)                   

        411                                                                     

      Expansion of procedures for selection of conveyees under authority to
   convey utility systems (sec. 2813)                                      
        412                                                                     

          Subtitle C--Defense Base Closure and Realignment              

        413                                                                     

      Scope of agreements to transfer property to redevelopment authorities
   without consideration under the base closure laws (sec. 2821)           
        413                                                                     

          Subtitle D--Land Conveyances                                  

        413                                                                     

   Part I--Army Conveyances                                                

        413                                                                     

      Land conveyance, Charles Melvin Price Support Center, Illinois (sec. 
   2831)                                                                   
        413                                                                     

      Land conveyance, Lieutenant General Malcolm Hay, Army Reserve Center,
   Pittsburgh, Pennsylvania (sec. 2832)                                    
        414                                                                     

      Land conveyance, Colonel Harold E. Steele, Army Reserve Center and   
   Maintenance Shop, Pittsburgh, Pennsylvania (sec. 2833)                  
        414                                                                     

   Land conveyance, Fort Lawton, Washington (sec. 2834)                    

        414                                                                     

   Land conveyance, Vancouver Barracks, Washington (sec. 2835)             

        414                                                                     

   Part II--Navy Conveyances                                               

        415                                                                     

      Modification of land conveyance, Marine Corps Air Station, El Toro,  
   California (sec. 2851)                                                  
        415                                                                     

      Modification of land conveyance, Defense Fuel Supply Point, Casco    
   Bay, Maine (sec. 2852)                                                  
        415                                                                     

      Modification of land conveyance authority, former Navy Training      
   Center, Bainbridge, Cecil County, Maryland (sec. 2853)                  
        415                                                                     

      Land conveyance, Naval Computer and Telecommunications Station,      
   Cutler, Maine (sec. 2854)                                               
        415                                                                     

   Part III--Defense Agencies Conveyance                                   

        415                                                                     

      Land conveyance, Army and Air Force Exchange Service property,       
   Farmers Branch, Texas (sec. 2871)                                       
        415                                                                     

          Subtitle E--Other Matters                                     

        416                                                                     

      Naming of the Army missile testing range at Kwajalein Atoll as the   
   Ronald Reagan Ballistic Missile Defense Test Site at Kwajalein Atoll    
   (sec. 2881)                                                             
        416                                                                     

          Other Items of Interest                                       

        416                                                                     

   Report on Naval Foundry and Propeller Center, Philadelphia, Pennsylvania

        416                                                                     

   Report on requirement for Education Center at Fort Stewart, Georgia     

        417                                                                     

   Study on commercial leases                                              

        417                                                                     

      Study regarding the location of the National Museum of the United    
   States Army                                                             
        417                                                                     

      Division C--Department of Energy National Security Authorizations and
   Other Authorizations                                                    
        419                                                                     

   Title XXXI--Department of Energy National Security Programs             

        419                                                                     

   Atomic energy defense activities                                        

        419                                                                     

          Subtitle A--National Security Programs Authorizations         

        421                                                                     

   National Nuclear Security Administration (sec. 3101)                    

        434                                                                     

   Defense environmental restoration and waste management (sec. 3102)      

        438                                                                     

   Other defense activities (sec. 3103)                                    

        441                                                                     

   Defense environmental management privatization (sec. 3104)              

        443                                                                     

   Energy employees compensation initiative (sec. 3105)                    

        443                                                                     

   Defense nuclear waste disposal (sec. 3106)                              

        443                                                                     

          Subtitle B--Recurring General Provisions                      

        444                                                                     

   Reprogramming (sec. 3121)                                               

        444                                                                     

   Limits on general plant projects (sec. 3122)                            

        444                                                                     

   Limits on construction projects (sec. 3123)                             

        444                                                                     

   Fund transfer authority (sec. 3124)                                     

        444                                                                     

   Authority for conceptual and construction design (sec. 3125)            

        444                                                                     

      Authority for emergency planning, design, and construction activities
   (sec. 3126)                                                             
        445                                                                     

      Funds available for all national security programs of the Department 
   of Energy (sec. 3127)                                                   
        445                                                                     

   Availability of funds (sec. 3128)                                       

        445                                                                     

   Transfer of defense environmental management funds (sec. 3129)          

        445                                                                     

          Subtitle C--National Nuclear Security Administration          

        445                                                                     

      Term of Office of person first appointed as Under Secretary for      
   Nuclear Security of the Department of Energy (sec. 3031)                
        445                                                                     

      Membership of Under Secretary for Nuclear Security on the Joint      
   Nuclear Weapons Council (sec. 3132)                                     
        446                                                                     

      Scope of authority of Secretary of Energy to modify organization of  
   National Nuclear Security Administration (sec. 3133)                    
        446                                                                     

      Prohibition on pay of personnel engaged in concurrent service or     
   duties inside and outside National Nuclear Security Administration (sec.
   3134)                                                                   
        446                                                                     


      Organization plan for field offices of the National Nuclear Security 
   Administration (sec. 3135)                                              
        446                                                                     

   Future-years nuclear security program (sec. 3136)                       

        447                                                                     

      Cooperative research and development of the National Nuclear Security
   Administration (sec. 3137)                                              
        447                                                                     

                    Subtitle D--Program Authorizations, Restrictions,   
          and Limitations                                               
        448                                                                     

      Processing, treatment, and disposition of legacy nuclear materials   
   (sec. 3151)                                                             
        448                                                                     

   Formerly Utilized Sites Remedial Action Program (sec. 3152)             

        448                                                                     

      Department of Energy Defense Nuclear Nonproliferation Program (sec.  
   3153)                                                                   
        448                                                                     

   Modification of counterintelligence polygraph program (sec. 3154)       

        453                                                                     

      Employee incentives for employees at closure project facilities (sec.
   3155)                                                                   
        453                                                                     

          Subtitle E--Other Matters                                     

        454                                                                     

      Extension of authority for appointment of certain scientific,        
   engineering, and technical personnel (sec. 3171)                        
        454                                                                     

   Updates of report on nuclear test readiness postures (sec. 3172)        

        454                                                                     

      Frequency of reports on inadvertent releases of restricted data and  
   formerly restricted data (sec. 3173)                                    
        454                                                                     

      Form of certifications regarding the safety or reliability of the    
   nuclear weapons stockpile (sec. 3174)                                   
        455                                                                     

      Engineering and manufacturing research, development and demonstration
   by plant managers of certain nuclear weapons production plants (sec.    
   3175)                                                                   
        455                                                                     

      Cooperative research and development agreements for government-owned,
   government-operated laboratories (sec. 3176)                            
        455                                                                     

      Commendation of Department of Energy and contractor employees for    
   Exemplary Service in Stockpile Stewardship and Security (sec. 3177)     
        456                                                                     

          Other Items of Interest                                       

        456                                                                     

      Department of Energy participation in the Interstate Technology      
   Reciprocity Council                                                     
        456                                                                     

   Laboratory directed research and development                            

        456                                                                     

   Report on Post-closure employee benefits at closure project facilities  

        457                                                                     

   Title XXXII--Defense Nuclear Facilities Safety Board                    

        459                                                                     

   Defense Nuclear Facilities Safety Board (sec. 3201)                     

        459                                                                     

   Title XXXIII--Naval Petroleum Reserves                                  

        461                                                                     

      Minimum price of petroleum sold from the naval petroleum reserves    
   (sec. 3301)                                                             
        461                                                                     

      Repeal of authority to contract for cooperative or unit plans        
   affecting Naval Petroleum Reserve Numbered 1 (sec. 3302)                
        461                                                                     

   Title XXXIV--National Defense Stockpile                                 

        463                                                                     

   National defense stockpile (secs. 3401 3402)                            

        463                                                                     

   Legislative Requirements                                                

        463                                                                     

   Departmental Recommendations                                            

        463                                                                     

   Committee Action                                                        

        463                                                                     

   Congressional Budget Office Cost Estimate                               

        463                                                                     

   Regulatory Impact                                                       

        463                                                                     

   Changes in Existing Law                                                 

        464                                                                     

      Additional Views of Senators Levin, Kennedy, Bingaman, Robb, Landrieu
   and Reed                                                                
        465                                                                     

   Additional Views of Senator Bingaman                                    

        468                                                                     

   Minority Views of Senator McCain                                        

        471                                                                     


 64 303                                                                  

106 th Congress                                                         

Report                                                                  

                                                                            

                                                                             

SENATE                                                                  

2d Session                                                              

106 292                                                                 

                                                                        



              AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2001 FOR MILITARY     
       ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND 
       FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE        
       PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR  
       OTHER PURPOSES                                                          


                                                                         

 May  12, 2000.--Ordered to be printed                                   

  Filed under authority of the order of the Senate of May 11, 2000       

                                                                         

  Mr. Warner , from the Committee on Armed Services, submitted the       
 following                                                               
 REPORT                                                                  

 together with                                                           

 ADDITIONAL AND MINORITY VIEWS                                           

 [To accompany S. 2549]                                                  


      The Committee on Armed Services reports favorably an original bill to
   authorize appropriations during the fiscal year 2001 for military       
   activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe        
   personnel strengths for such fiscal year for the armed forces, and for  
   other purposes, and recommends that the bill do pass.                   
                                     PURPOSE OF THE BILL                          

   This bill would:                                                        

       (1) authorize appropriations for (a) procurement, (b) research,     
   development, test and evaluation, (c) operation and maintenance and the 
   revolving and management funds of the Department of Defense for fiscal  
   year 2001;                                                              
       (2) authorize the personnel end strengths for each military active  
   duty component of the armed forces for fiscal year 2001;                
       (3) authorize the personnel end strengths for the Selected Reserve  
   of each of the reserve components of the armed forces for fiscal year   
   2001;                                                                   
    (4) impose certain reporting requirements;                             

       (5) impose certain limitations with regard to specific procurement  
   and research, development, test and evaluation actions and manpower     
   strengths; provide certain additional legislative authority, and make   
   certain changes to existing law;                                        
       (6) authorize appropriations for military construction programs of  
   the Department of Defense for fiscal year 2001; and                     
       (7) authorize appropriations for national security programs of the  
   Department of Energy for fiscal year 2001.                              
            Committee overview and recommendations                                 

      The national security challenges that the United States will face in 
   the new millennium are many and diverse--new adversaries, new           
   battlefields, and new weapons. It is important that we remain vigilant, 
   forward thinking, and prepared to address these challenges.             
      While the Department of Defense (DOD) must plan and allocate         
   resources to meet future threats, ongoing military operations and       
   deployments from the Balkans to Southwest Asia to East Timor continue to
   demand significant resources in the short term and the foreseeable      
   future. The National Defense Authorization Act for Fiscal Year 2001     
   provides funding guidelines and policy directives which will allocate   
   some of the most critical readiness, modernization, and recruiting and  
   retention problems facing our military, while addressing complex current
   and future challenges and threats to the nation's security.             
      For over a decade, our defense budget has been based on constrained  
   funding, not on the threats facing the nation or the military strategy  
   necessary to meet those threats. The result of this is evident today in 
   continuing recruiting and retention difficulties, declining readiness   
   ratings, and aging equipment.                                           
      Last year, the Congress reversed the downward trend in defense       
   spending by approving a defense authorization bill which, for the first 
   time in 14 years, included a real increase in the authorized level of   
   defense spending. This year, the committee continued the momentum       
   initiated last year by authorizing $309.8 billion for defense spending  
   for fiscal year 2001, an increase of $4.5 billion over the budget       
   request, and a real increase of 4.4 percent.                            
      The committee's support for additional funding for defense is based  
   on an in-depth analysis of the threats facing U.S. interests, and       
   testimony from senior military leaders on the many shortfalls in the    
   defense budget.                                                         
      It is evident that the world remains a complex and violent place. The
   greatest threat to our national security today is instability;          
   instability fueled by ethnic, religious, and racial animosities that    
   have existed for centuries, but are now resulting in conflicts fought   
   with the weapons of modern warfare. Many have turned to the United      
   States, as the sole remaining superpower, to resolve the many conflicts 
   around the world and to ensure stability in the future. However, this   
   military power does not ensure our security. As Director of Central     
   Intelligence George Tenet told the committee in January, ``The fact that
   we are arguably the world's most powerful nation does not bestow        
   invulnerability; in fact, it may make us a larger target for those who  
   don't share our interest, values, or beliefs.''                         
      U.S. military forces are involved in overseas deployments at an      
   unprecedented rate. Currently, our troops are involved in over 10       
   contingency operations around the globe. At an October 1999 hearing of  
   the Committee, the Chairman of the Joint Chiefs of Staff, General Hugh  
   Shelton, stated that, ``Two factors that erode military readiness are   
   the pace of operations and funding shortfalls. There is no doubt that   
   the force is much smaller than it was a decade ago, and also much       
   busier.'' Over the past decade, our active duty manpower has been       
   reduced by nearly a third, active Army divisions have been reduced by   
   almost 50 percent, and the number of Navy ships has been reduced from   
   567 to 316. During this same period, our troops have been involved in 50
   military operations worldwide. By comparison, from the end of the       
   Vietnam War in 1975 until 1989, U.S. military forces were engaged in    
   only 20 such military deployments.                                      
      The fiscal year 2001 defense budget submitted by the administration  
   was a positive development. Encouraging elements of the plan included   
   full funding of the pay raise as directed by Congress last year,        
   achieving the procurement goal of $60.0 billion a year, and initiatives 
   to improve military health care. After careful examination, however, it 
   was clear that many shortfalls remained that required action by the     
   committee.                                                              
      The Joint Chiefs of Staff have testified that they have a remaining  
   shortfall in funding of $9.0 billion for fiscal year 2000, a requirement
   for an additional $15.5 billion above the budget request to meet        
   shortfalls in readiness and modernization for fiscal year 2001, and a   
   requirement for an additional $85.0 billion in the Future Years Defense 
   Program (FYDP). The committee has provided additional funding to meet   
   the most urgent requirements identified by the Joint Chiefs of Staff,   
   but remains troubled by the negative impact of the large number of      
   contingency operations on our smaller military force.                   

                    Unfortunately, there appears to be no end in sight for many of
          these operations.                                                       
      The high operations tempo of our armed forces has a negative impact  
   on recruiting and retention. Last year, the committee took action to    
   provide a pay raise and a package of retirement reforms and retention   
   incentives in an effort to recruit and retain highly qualified          
   personnel. The committee also took action to require intense senior     
   level management of the personnel tempo of the armed forces. The        
   committee has received testimony that these changes are having a        
   positive impact. This year the committee has focused on improving       
   military health care for our active duty and retired personnel and their
   families.                                                               
      The Secretary of Defense, the Chairman of the Joint Chiefs, and the  
   service chiefs have all highlighted the many problems associated with   
   implementing a user-friendly health care program for active duty service
   members, military retirees, and their families. The committee strongly  
   supported initiatives that ensure our active duty personnel and their   
   families receive quality healthcare, and initiatives that begin to      
   fulfill our commitment to military retirees. These initiatives include  
   accelerating improvements in TRICARE, expanding TRICARE benefits to     
   families of military personnel serving in the remote locations,         
   increasing access to health care and providing pharmacy benefits for    
   military retirees, and expanding the longstanding cooperative           
   relationship between the DOD and the Department of Veterans' Affairs.   
      Last year, NATO conducted its first large-scale, offensive military  
   operation with the 78-day air war on behalf of Kosovo. The lessons      
   learned from that operation, addressed during a series of committee     
   hearings, highlighted not only shortfalls in weapon systems and         
   intelligence programs, but also the complexities of engaging in         
   coalition operations. As noted in the combined testimony of Operation   
   Allied Force commanders, General Wesley Clark, Admiral James Ellis, and 
   Lieutenant General Michael Short, the campaign ``. . . required (that)  
   we adapt (U.S.) military doctrine and strategy to strike a balance      
   between maintaining allied cohesion, striking key elements of the       
   Yugoslav armed forces, minimizing losses of allied aircraft, and        
   maintaining collateral damage.'' Of paramount concern to the committee  
   was applying the lessons learned from the air campaign over Kosovo to   
   ensure the future preparedness of the U.S. armed forces. The committee  
   added funding above the amount requested to address some of the most    
   essential lessons learned from Kosovo.                                  
      Over 38,000 combat sorties were conducted during the Kosovo air      
   campaign with no combat casualties. While the committee understands that
   no military operation is without risk, limiting the risk to military    
   personnel is clearly an important goal. Every day, advances in          
   technologies such as computing and telecommunications are being         
   integrated into warfighting equipment.                                  
      The committee believes that the Defense Department must further      
   pursue these technological advances in an effort to provide advanced    
   warfighting capabilities, while at the same time limiting the risk to   
   military personnel. To this end, the committee directed the DOD to      
   aggressively develop and field unmanned combat systems in the air and on
   the ground so that within 10 years, one-third of our operational deep   
   strike aircraft would be unmanned, and within 15 years, one-third of our
   ground combat vehicles would be unmanned. The committee has provided an 
   additional $200.0 million for this initiative.                          
            Personnel                                                              

      This year the Personnel Subcommittee focused on some of the most     
   pressing issues facing the DOD and the military services. Recruiting and
   retention, pay and compensation, personnel tempo, and health care are   
   identified in every survey, poll and informal gathering of soldiers,    
   sailors, airmen and Marines as the areas that affect decisions on       
   joining or continuing to serve in the armed forces. The committee       
   prioritized its efforts to address each of these issues.                
      When the Cold War ended and the nation began to reduce the active    
   forces, it became clear that the pressures caused by the reduction in   
   the number of medical personnel and facilities and the increase in      
   medical costs made it almost impossible for the military health care    
   system to meet its wartime missions, as well as fulfill its mission to  
   provide health care to the families of active duty personnel and retired
   personnel and their families. As a result, in 1993 Congress directed the
   DOD to take the bold step of implementing a nationwide managed care     
   system in which the DOD partnered with the private sector to deliver    
   health care. This system, known as TRICARE, is struggling with          
   implementation problems. The committee devoted a significant amount of  
   time and effort to examining TRICARE and determining how that system    
   might be improved and made more efficient and effective.                
      On February 23, 2000, a bipartisan group of Senators introduced S.   
   2087, the Military Health Care Improvement Act of 2000, to address the  
   most urgent medical needs of our active duty and retired personnel and  
   their families. In addition to providing for improvements in the TRICARE
   program, this bill would provide, for the first time, an entitlement to 
   military health care for Medicare-eligible military retirees and their  
   families. The most significant benefit of this bill is a pharmacy       
   benefit for Medicare-eligible military retirees. The committee has      
   determined that access to prescription drugs is the single most critical
   unmet need of Medicare-eligible military retirees.                      
      The committee has incorporated the provisions of S. 2087 and         
   additional initiatives in this bill. The committee views this as only   
   the first step toward providing a comprehensive health care benefit to  
   all military health care system beneficiaries, including those who are  
   Medicare-eligible.                                                      
      The Personnel Subcommittee has made recruiting and retention a       
   priority for each of the past three years. Despite efforts on behalf of 
   recruiters, military leaders, the Office of the Secretary of Defense and
   the Congress, the disturbing trends of declining numbers and missed     
   goals in both recruiting and retention continue.                        
      While last year's legislative initiatives have slowed the decline,   
   more needs to be done if we are to recruit and retain quality personnel 
   to defend the nation's vital interests around the world. Once these     
   young men and women have been trained in their military skills, it is   
   essential that the services retain these developing military leaders so 
   that we can benefit from their experience and use their abilities to    
   train those recruits who will follow.                                   
      The committee recognizes that if the services cannot man the force   
   with qualified, well-trained personnel, readiness will continue to      
   suffer. The committee believes that the proposals, resources and        
   policies recommended in this bill will assist the military services in  
   recruiting and retaining the numbers of quality personnel required to   
   meet the national military strategy.                                    
            Readiness and Management Support                                       

      Aging equipment, spare parts shortfalls, manning and experience gaps 
   continue to manifest themselves in terms of declining mission capable   
   rates and decreasing unit readiness ratings. According to the DOD       
   Quarterly Readiness Report to the Congress, October through December    
   1999, ``. . . the pace of contingency operations continues to stress the
   readiness of certain segments of the force.'' Most troubling are        
   indications that problems are emerging in the readiness of forward      
   deployed and first-to-fight units.                                      
      During the past year, the committee focused on the readiness of the  
   armed forces to meet the challenges of today while preparing for those  
   of tomorrow. Maintaining a ready force is particularly difficult if     
   military personnel are not provided with sufficient opportunities to    
   receive the training necessary to perform their difficult missions. The 
   committee notes the prohibition of live-fire training by Atlantic fleet 
   units at Vieques is resulting in significant degradation of unit        

                    readiness. Ensuring that our armed forces receive the         
          necessary training to make certain they have safe and successful        
          deployments continues to be one of the committee's highest priorities.  
      The committee is also concerned with continuing reports of readiness 
   problem as a result of the declining materiel condition of military     
   equipment, primarily due to shortfalls in spare parts and increasing    
   equipment age. The committee added significant resources to the defense 
   budget in previous fiscal years to ensure that the current inventory of 
   equipment was adequately maintained until the modernization programs    
   could provide sufficient replacements. Unfortunately, with the pace of  
   operations continuing to place strains on both maintenance personnel and
   supply availability, the increased funding has not prevented declines in
   materiel condition.                                                     
            Military construction                                                  

      Although the overall DOD request for fiscal year 2001 is more than   
   $11.0 billion higher than the previous year, neither military           
   construction nor family housing construction benefitted from this       
   increase. In fact, the military construction and family housing Request 
   is $400.0 million less than the administration's fiscal year 2000       
   incrementally funded military construction program, and $500.0 million  
   less than the amount authorized in fiscal year 2000.                    
      One noteworthy shortfall is that the budget request for fiscal year  
   2001 did not include construction contingency funds which are critical  
   to correct design flaws or unforseen construction problems. In testimony
   before the Subcommittee on Readiness and Management Support, service    
   officials stated that the elimination of the $128.0 million for         
   contingency construction will cause significant difficulty in executing 
   construction programs.                                                  
      The committee is deeply disturbed that for two consecutive years the 
   Department has used budgetary gimmicks in funding the military          
   construction program. The committee urges the Department to refrain from
   such practices in future years.                                         
      To correct the deficiencies in the budget request, the committee     
   recommends an increase of $430.0 million for military construction. The 
   focus of the additional funding is on quality of life projects and on   
   critical projects for the reserve components, whose construction        
   programs continue to be underfunded. In addition, the committee did     
   include contingency construction funding for each project the committee 
   added.                                                                  
            Emerging Threats and Capabilities                                      

      The Subcommittee on Emerging Threats and Capabilities continued to   
   provide an effective forum for highlighting such issues as the threat   
   posed by the proliferation of nuclear, chemical and biological weapons, 
   the ever increasing danger of terrorist attacks both in the United      
   States and overseas, the impact of narco-trafficking on U.S. national   
   security and regional stability, and the growing threat cyber-attacks on
   the military's critical information infrastructure. The committee       
   continued its review and assessment of the Department's ability to      
   respond to these threats. The committee believes it is of the utmost    
   importance that the Department prepare for these and other emerging     
   threats through robust investments in technology and exploration of new 
   warfighting concepts.                                                   
      Unfortunately, the terrorist threat to our citizens and service      
   members--both at home and abroad--shows no signs of diminishing. During 
   the weeks leading up to the millennium celebrations, numerous           
   individuals suspected of planning terrorist attacks directed against    
   U.S. citizens were arrested in the United States and abroad. With the   
   proliferation of weapons of mass destruction, the threat of a terrorist 
   attack with a chemical, biological or nuclear weapon is increasing at an
   alarming rate. We, as a nation, must be prepared.                       
      This committee will continue to play a leading role in ensuring that 
   the DOD is adequately funded and structured to perform its critical role
   in the overall U.S. government's efforts to combat terrorism. Last year,
   the committee conducted a comprehensive review of the Defense           
   Department's activities to combat terrorism, with the goal of making the
   Department's efforts in this critical area more visible and better      
   organized; and of increasing the capabilities of DOD assets to assist in
   the event of a terrorist attack on U.S. soil involving the use of a     
   weapon of mass destruction.                                             
      This year, the committee has taken action to build on last year's    
   efforts by assigning overall policy and budgeting oversight of the DOD  
   activities for combating terrorism to the assistant secretary of defense
   for special operations and low-intensity conflict; and by adding funding
   for the establishment of five new Weapons of Mass Destruction Civil     
   Support Teams to bring the total number of such teams to 32 by the end  
   of fiscal year 2001.                                                    
      During the post-Cold War decade, the U.S. government has spent over  
   $4.7 billion in the former Soviet Union to reduce the threat posed by   
   the possible proliferation of weapons of mass destruction,              
   weapons-usable nuclear materials, and scientific expertise. After nearly
   a decade of working in Russia and the other states of the former Soviet 
   Union on this effort, the committee believes it is important to review  
   what these programs have achieved. The committee is concerned that for  
   the significant investment made in some areas, the return in terms of   
   reducing the threat has been relatively small. For example, the General 
   Accounting Office (GAO) found that $481.2 million has been spent since  
   fiscal year 1993 on a program designed to secure weapons-usable nuclear 
   material in Russia and the states of the former Soviet Union, but only  
   seven percent of the total nuclear material identified as being at risk 
   has been secured. The committee is troubled by the progress achieved in 
   light of this significant investment.                                   
      In March 2000, the GAO testified that the costs associated with      
   achieving threat reduction will continue to remain high due to Russia's 
   inability to pay its share of the costs of these programs, Russia's     
   reluctance to provide the United States with needed access to its       
   sensitive facilities, and expanding program budget requirements. The    
   committee recommends several initiatives to obtain greater Russian      
   commitment and necessary access so that the programs will have a greater
   chance of attaining their intended threat reduction objectives.         
      In the area of chemical and biological warfare defense, the committee
   notes that the Department has continued to maintain steady increases in 
   funding since fiscal year 1996. The committee is concerned, however,    
   that the Department's efforts to focus on the acquisition of the anthrax
   vaccine may be taking an inordinate amount of personnel and financial   
   resources from other critical elements of the chem-bio defense program. 
   While the Department's fiscal year 2001 request represents a nearly 20  
   percent increase for procurement of chemical and biological defense     
   equipment and programs, a significant portion of this increase is to    
   address issues associated with the anthrax vaccine acquisition program. 
   The committee is concerned with the risks associated with continuing to 
   support the current Anthrax acquisition strategy, and believes that the 
   Department should develop an alternative plan to ensure that a vaccine  
   will be available to meet ongoing and future requirements.              
      In the year since the Subcommittee on Emerging Threats and           
   Capabilities was created, cyber threats to the United States, including 
   the DOD, have increased dramatically. During the subcommittee's March 1,
   2000 hearing on cyber-security, the DOD reported that computer attacks  
   on Defense Department systems increased from under 6,000 in 1998 to over
   22,000 in 1999. There is every indication that this trend will continue.
      The committee remains concerned that many important information      
   assurance programs designed to protect against such cyber-attacks,      
   remain underfunded by the DOD. At the March 1, 2000, subcommittee       
   hearing, witnesses from the Department once again confirmed that such   
   funding shortfalls remain significant, and presented a list of almost   
   $500.0 million in unfunded requirements in this area.                   

      Due to the expanding nature of the cyber threat, the committee       
   recommends increased funding for important information assurance        
   initiatives. In particular, the committee recommends initiatives in the 
   area of information assurance training and education. The committee     
   agrees with the conclusion contained in the National Plan for           
   Information Systems Protection, which was released by the White House in
   January, that ``. . . within the Federal Government, the lack of skilled
   information systems security personnel amounts to a crisis.'' The       
   committee also recommends funding increases to support information      
   assurance research and development, and procurement of critical         
   information assurance tools and detection devices.                      
      The committee continued its examination of joint experimentation and 
   the prudent transformation of our armed forces to defend against current
   and future threats to our national security. While encouraged by the    
   progress made by U.S. Joint Forces Command in the area of joint         
   experimentation since its activation with an expanded charter on October
   1, 1999, the committee is concerned with the slow pace of robust        
   experimentation, noting that the first true joint field experiment is   
   not scheduled until 2004. Additionally, the committee is concerned that 
   there is not yet an institutionalized process to rapidly integrate      
   lessons learned into the overall service and defense-wide requirements  
   process. During a hearing before the subcommittee on April 4, 2000, the 
   Vice Chairman, Joint Chiefs of Staff, indicated that a review was       
   underway to revise and strengthen this joint requirements process. At   
   that same hearing, the Commander-in-Chief, U.S. Joint Forces Command    
   expressed interest in accelerating the pace of joint experimentation.   
   These are welcome developments which the committee will follow closely. 
      It is a priority of the committee to maintain a strong, stable       
   investment in science and technology in order to develop superior       
   technology that will permit the United States to maintain its current   
   military advantages, provide flexible options to future warfighters, and
   hedge against technological surprise. The military dimensions of the    
   next century are likely to be so different from those on which the      
   current force was built that an evolutionary approach--based on         
   correcting near-term deficiencies--will not be sufficient to meet the   
   need for change. We must ensure that our ongoing efforts to maintain    
   current advantages in capability are complemented with bold action that 
   can effect the true transformation required for the 21st Century force. 
   For that reason, the committee has added approximately $200.0 million to
   the defense science and technology (S&T) program.                       
      It has been an on-going concern that the current S&T planning process
   appears to focus on the ``micro'' issue of ensuring that individual     
   projects address legitimate warfighting needs, rather than on the       
   ``macro'' issue of prioritizing those needs and ensuring that sufficient
   S&T funding is made available to meet them. Both the Army and the Navy  
   took ambitious steps this year to address that shortcoming in the S&T   
   planning process by prioritizing their own needs on a ``macro'' basis,  
   and realigning S&T funding to match new priorities.                     
      The Air Force does not appear to have undertaken any comparable      
   planning effort. The committee remains concerned with the serious       
   decline in the Air Force technology investment and the lack of support  
   for science and technology within the Air Force leadership. Critical    
   investment decisions are being made based on numbers rather than need.  
   Therefore, the committee recommends a provision which requires the      
   Secretary of the Air Force to conduct a thorough review of the S&T      
   program and to certify to Congress that the plans provided and the      
   investments planned will meet their objectives for air and space        
   superiority in the 21st Century and beyond.                             
            Airland                                                                

      The Airland Subcommittee focused on the impact of inadequate         
   modernization accounts, testing and evaluation activities associated    
   with developmental efforts, the Army transformation initiative and the  
   status of tactical aviation programs.                                   
      The committee has conducted an in-depth analysis of the Army         
   transformation initiative that was announced last fall. The committee   
   advocates transformation and recognizes that heavy forces within the    
   Army are difficult to deploy in support of the National Military        
   Strategy. The Army Chief of Staff has challenged the status quo within  
   the Army and initiated a process to transform the Army into a more      
   lethal, lightweight, strategically relevant and deployable force that   
   will be better suited to meet future defense challenges. While the      
   committee has expressed support for the transformation initiative, the  
   committee is concerned about the Army's ability to develop the objective
   force and field an interim force capability. The committee has          
   particular concerns about the operational capabilities of the interim   
   force and the Army's acquisition strategy.                              
      Given no significant change in projected Army modernization resources
   from the DOD, the committee is concerned that the Army will not have    
   adequate resources to recapitalize the existing legacy force to maintain
   operational readiness, field an interim force capability, and conduct a 
   robust research and development effort designed to lead to the objective
   force in fiscal year 2012. The committee believes the Army vision should
   more heavily focus on efforts for the objective force. Near-term interim
   forces can provide an operational capability available to respond to    
   contingency operations while at the same time provide insights into     
   future force requirements. The committee believes that least cost       
   alternatives, including light, armored vehicles currently available     
   within the Army, should be primarily considered in efforts to fill an   
   interim force.                                                          
      In response to last year's congressional direction, the Army issued  
   revised aviation and armor system modernization plans in which          
   significant steps have been taken to address long standing deficiencies 
   in service modernization programs. While the committee remains concerned
   about the ability of future budgets to support these revised plans, the 
   Army is commended for ensuring that these plans more adequately reflect 
   the broad range of requirements that exist across the force.            
      The committee also focused on a range of tactical aviation issues.   
   The budget request included almost $8.0 billion for continued           
   development and procurement of the three new tactical fighter aircraft: 
   the F/A 18E/F Super Hornet, the F 22 Raptor, and the Joint Strike       
   Fighter (JSF). The committee remains concerned about the overall        
   affordability of these systems against the backdrop of increasing       
   average aircraft age, required modifications of legacy aircraft, and    
   precision guided weapon inventory shortages. Particular tactical        
   aviation issues examined by the committee included: F/A 18E/F upgrade   
   funding; F 22 flight test hours and the adequacy of test content; and,  
   JSF validation, program cost growth, and technical challenges.          
      The lessons learned from the Kosovo conflict presented additional    
   concerns that the committee addressed. In Kosovo after-action reviews,  
   the committee repeatedly heard concerns expressed about low-density,    
   high-demand weapon systems and platforms. Commanders reported having to 
   conserve certain precision weapon systems to prevent depletion. Tactical
   electronic attack assets were seriously overtasked, as were             
   intelligence, surveillance and reconnaissance (ISR) assets. The         
   committee added over $700.0 million for programs supporting aircraft    
   precision strike capability, aircraft survivability, and ISR assets.    
      The committee continues to be concerned about the impact that        
   inadequate modernization funding will have on our ability to modernize  
   our forces. Significant levels of unfunded requirements, as identified  
   by the service chiefs, suggest that significant modernization shortfalls
   are likely to continue.                                                 
            Seapower                                                               

      The committee continued its focus on reviewing the adequacy of Navy  
   and Marine Corps force structure and strategic lift to carry out the    
   National Security Strategy, and the ability of                          

                    Navy and Marine Corps programs to support new operational     
          concepts to influence events ashore, and from the sea.                  
      Operational commanders presented compelling testimony to the         
   subcommittee that indicated that their commands do not have enough ships
   and aircraft to shape the international environment and respond to      
   crises within the required time frame. As stated by the Commander, U.S. 
   Second Fleet, even with the current level of 316 ships, there ``. . .   
   are not enough resources to meet demands, and the cost of doing business
   is being borne increasingly by our sailors.'' The commanding general of 
   the 2nd Marine Expeditionary Force and the director of operations and   
   logistics of the U.S. Transportation Command described similar impacts  
   on the Marines and airmen in their command.                             
      Operational commanders also pointed out that aging equipment         
   translates into both operational and fiscal costs. Maintenance personnel
   routinely work long hours on shifts and into the weekends to keep       
   equipment operational. This testimony was consistent with information   
   gathered by the committee during visits to fleet units.                 
      The Congressional Research Service testified before the subcommittee 
   that the Navy requires a $12.0 billion annual ship construction budget, 
   commencing in fiscal year 2001, to build an average of 8.6 ships per    
   year to maintain a Navy force structure of at least 300 ships. While the
   Navy acquisition and requirements witnesses agreed with this assessment,
   the ship construction budget for fiscal year 2001 is only $11.7 billion 
   and is projected to decrease in the outyears. In an effort to provide a 
   long-term look at shipbuilding requirements and plans, the National     
   Defense Authorization Act for Fiscal Year 2000 directed the Secretary of
   Defense to deliver a long-range shipbuilding report to the Congress no  
   later than February 1, 2000. Unfortunately, that report has yet to be   
   provided.                                                               
      The Transportation Command testified before the subcommittee that C  
   17 strategic lift aircraft procurement and C 5 strategic lift aircraft  
   reliability were the two highest Transportation Command priorities, and 
   that the Transportation Command has been unable to respond to all of the
   requests for strategic airlift support.                                 
      In addition to these findings, information obtained by the committee 
   during the course of its deliberations revealed the following:          
      (1) the present Navy force structure of 316 ships is not sufficient  
   to carry out the National Security Strategy, and the shipbuilding plan  
   of 39 ships planned in the Future Years Defense Program is insufficient 
   to recapitalize the fleet;                                              
      (2) changing the DDG 51 acquisition strategy from three to two ships 
   per year is inconsistent with the Navy's previous industrial base       
   studies, and counter to the emphasis on procurement efficiency and smart
   business decisions that save taxpayer dollars;                          
      (3) the DD 21 destroyer is the key enabler to providing the Marine   
   Corps fire support from the sea, and DD 21 will accomplish that mission 
   at lower acquisition and operating costs compared to other destroyers;  
      (4) the Joint Chiefs of Staff study on attack submarine force        
   structure states that the requirement for submarines may be             
   significantly more than the 1997 Quadrenniel Defense Review level of 50 
   submarines;                                                             
      (5) Marine Corps operational concepts require the capabilities       
   included in new platforms, such as the LPD 17, LHD, and DD 21 ship      
   classes and the performance of new equipment, such as the Advanced      
   Amphibious Assault Vehicle(AAAV), the Landing Craft Air Cushion (LCAC), 
   the V 22 Tiltrotor aircraft, and night vision and thermal imaging       
   devices; and                                                            
      (6) within ten years there will be insufficient helicopters to       
   support the operational requirements of destroyers, aircraft carriers,  
   mine warfare, and replenishment ships.                                  
      Versatility continues to be the hallmark of the Navy and Marine      
   Corps. This year, maritime forces were moved rapidly between the        
   Mediterranean Sea and the Persian Gulf for operations that ranged from  
   war and peacekeeping in Kosovo to humanitarian relief for earthquake    
   victims in Turkey.                                                      
      The committee concluded that our Navy and Marine Corps forces are an 
   inherently forward-deployed, combat credible, expeditionary force       
   engaged in daily, round-the-clock operations to influence the world's   
   security environment and support world-wide U.S. national security      
   interests. The committee notes that in the 84 months that ended in      
   September 1999, the Navy participated in 80 contingency operations      
   around the world.                                                       
      While there are insufficient funds to address all of the fiscal year 
   2001 unfunded requirements identified by the service chiefs, the        
   committee will continue to support efforts to identify, prioritize and  
   take action within the constraints of the budget to fund the            
   deficiencies identified by the Navy and Marine Corps. The committee will
   continue to highlight the risks associated with the budget constraints, 
   and the resulting impact on the ability of our men and women of the     
   armed forces to carry out their duties.                                 
            Strategic                                                              

      The Strategic Subcommittee continued to review the adequacy of       
   programs and policies in the following areas: (1) ballistic and cruise  
   missile defense; (2) national security space; (3) strategic nuclear     
   delivery systems; (4) military intelligence; and (5) Department of      
   Energy (DOE) activities regarding the nuclear weapons stockpile, nuclear
   waste cleanup, and other defense activities.                            
      On February 28, 2000, the Strategic Subcommittee held a hearing on   
   national and theater missile defense programs. Based on this hearing,   
   the committee concluded that the DOD continues to pursue a              
   funding-constrained ballistic missile defense (BMD) program. Although   
   the committee is pleased by Department's decision to substantially      
   increase funding for the National Missile Defense (NMD) program, the    
   Strategic Subcommittee found that all of the Ballistic Missile Defense  
   Organization's major defense acquisition programs remain underfunded.   
   The committee recommends substantial increases in funding for ballistic 
   missile defense programs and technologies, including the NMD program for
   risk reduction.                                                         
      On March 8, 2000, the Strategic Subcommittee held a hearing on       
   national security space issues. The committee identified a number of    
   areas in which budget constraints have caused DOD to insufficiently fund
   key space programs and technologies. The committee also identified key  
   areas of space technology development that require additional support,  
   as addressed in detail elsewhere in this report.                        
      One of the key findings of the Kosovo after-action reviews was that  
   intelligence processing and dissemination does not always meet the      
   requirements of warfighting forces. The committee has initiated efforts 
   to provide funding and other assistance to ensure that relevant         
   intelligence products are provided to military forces in a timely       
   manner. In particular, the committee recommends funding increases for   
   the National Imagery and Mapping Agency to improve the imagery tasking, 
   processing, exploitation and dissemination process.                     
            Department of Energy National Security Programs                        

      The committee has responsibility for oversight and authorization of  
   over two-thirds of the Department of Energy's budget, including the     
   National Nuclear Security Administration; weapons activities; defense   
   environmental management; other defense activities; and defense nuclear 
   waste disposal. The committee also authorizes funds for the Defense     
   Nuclear Facility Safety Board, an independent agency responsible for    
   external oversight of safety at DOE defense nuclear facilities.         
      The committee held the first congressional hearing to assess the     
   programs of the newly-established National Nuclear Security             
   Administration (NNSA). The committee identified a number of critical    
   issues that must be addressed by the Congress, the Secretary of Energy, 
   and the new NNSA administrator. The committee notes that the Secretary  
   of Energy has failed to fully comply with the National Nuclear Security 
   Administration Act,                                                     

                    which was signed into law by the President as part of the     
          National Defense Authorization Act for Fiscal Year 2000 (Pubic Law 106  
          65).                                                                    
      In the area of weapons activities, the committee remains concerned   
   that the Department has not prepared the long-term program or funding   
   plan for the stockpile stewardship and management program, as directed  
   last year by Congress. The committee notes that the DOD provides a FYDP 
   plan to Congress each year with the annual budget request. The committee
   believes that DOE should provide comparable budgetary information to    
   Congress.                                                               
      The committee is concerned with the speculative nature of the        
   science-based stockpile stewardship program. The committee received     
   testimony from the three weapons laboratory directors that it may be as 
   long as 15 years before the DOE stockpile stewardship program can be    
   evaluated as an acceptable substitute for underground nuclear testing.  
      The committee remains concerned that the Department is moving too    
   slowly in re-establishing pit manufacturing and tritium production      
   capabilities. The committee further notes that the Department has not   
   established any long-term requirements or plans for modernization of its
   aging weapon production plants.                                         
      In the area of environmental management, the DOE continues to make   
   progress in focusing its resources on closure of a limited number of    
   sites and facilities. However, the committee remains concerned that the 
   request for science and technology development continues to decline,    
   despite the Department's increased reliance on the application of       
   innovative technologies at cleanup sites. The committee notes that the  
   fiscal year 2001 request for technology development is the lowest in    
   over eight years. The committee believes that a vigorous research and   
   development program must be maintained if the Department is to meet its 
   accelerated cleanup and closure goals.                                  
      The committee remains deeply concerned with proposals to establish a 
   new, external regulation regime for DOE defense nuclear facilities. The 
   committee does not support such efforts. The committee notes that the   
   only DOE defense facility to be placed under regulation by the Nuclear  
   Regulatory Commission (NRC) required almost $500.0 million and three    
   years to establish a new licencing process. The committee believes that 
   placing additional DOE facilities under NRC regulation would not be     
   beneficial or cost-effective. Such moves would waste scarce cleanup     
   funds and jeopardize the pace of cleanup at DOE facilities. The         
   committee believes that the Defense Nuclear Facilities Safety Board     
   (DNFSB) continues to provide comparable, independent safety oversight   
   for all DOE defense nuclear facilities with an annual budget of less    
   than $20.0 million a year.                                              
            Explanation of funding summary                                         

      The administration's budget request for the national defense function
   of the federal budget for fiscal year 2001 was $305.3 billion, of which 
   $305.3 billion was for programs that require specific funding           
   authorization.                                                          
      The following table summarizes both the direct authorizations and    
   equivalent budget authority levels for fiscal year 2001 defense         
   programs. The columns relating to the authorization request do not      
   include funding for the following items: military personnel funding;    
   military construction authorizations provided in prior years; and other 
   small portions of the defense budget that are not within the            
   jurisdiction of this committee or that do not require an annual         
   authorization. As explained above, funding for military personnel is    
   included in the amounts authorized by the committee, but not in the     
   total funding requested for authorization.                              
      Funding for all programs in the national defense function is         
   reflected in the columns related to the budget authority request and the
   total budget authority implication of the authorizations in this bill.  
   The committee recommends funding for national defense programs totaling 
   $309.8 billion in budget authority, which is consistent with the fiscal 
   year 2001 budget resolution.                                            

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                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            

                                    TITLE I--PROCUREMENT                          

            Explanation of tables                                                  

      The tables in this title display items requested by the              
   administration for fiscal year 2001 for which the committee either      
   increased or decreased the requested amounts. As in the past, the       
   administration may not exceed the amounts approved by the committee (as 
   set forth in the tables or, if unchanged from the administration        
   request, as set forth in the Department of Defense's budget             
   justification documents) without a reprogramming action in accordance   
   with established procedures. Unless noted explicitly in the report, all 
   changes are made without prejudice.                                     

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            Chemical demilitarization program (sec. 107)                           

      The committee recommends a provision that would provide funding for  
   chemical demilitarization in a Department of Defense (DOD) budget line. 
   The budget request for the Army included $1.0 billion for the Chemical  
   Agents and Munitions Destruction (CAMD) Program: $607.2 million for     
   operations and maintenance; $121.9 million for procurement; and $274.4  
   million for research and development.                                   
      Section 1521(f) of title 50, United States Code, states that funds   
   for this program shall not be included in the budget accounts for any   
   military department, but shall be set forth in the budget of the DOD as 
   a separate account. The committee is concerned that funds for this      
   program continue to be included in the Army budget accounts, despite the
   clear and direct statutory requirement to the contrary. Funding for this
   program should not be balanced against Army modernization plans or      
   funding of continued military operations in the Balkans.                

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                       Multiyear procurement authority for certain Army and Navy   
           programs (sec. 111)                                                     
      The committee recommends a provision that would authorize the Army to
   enter into multiyear procurement contracts for the Bradley A3 Infantry  
   Fighting Vehicle, the UH 60L Blackhawk helicopter, and the CH 60S       
   Seahawk helicopter. For the Bradley A3 Infantry Fighting Vehicle, the   
   multiyear procurement authority is for a period not to exceed three     
   years, beginning in fiscal year 2001. The committee notes the Army is   
   scheduled to complete the initial operational test and evaluation       
   (IOT&E) of the Bradley A3, and a subsequent milestone III review in the 
   fourth quarter of fiscal year 2000. The committee expects the Secretary 
   of the Army to ensure that the Army successfully completes the IOT&E and
   milestone III review prior to awarding the multiyear contract.          
            Army transformation (sec. 112)                                         

      The committee recommends a provision that would require the Secretary
   of the Army to provide a report on the objective force process, that    
   describes the following:                                                
    (1) operational environments envisioned for the objective force;       

       (2) threat assumptions for objective force research and development 
   efforts;                                                                
       (3) potential operational and organizational concepts for the       
   objective force;                                                        
       (4) anticipated Key Performance Parameters (KPPs) and emerging      
   requirements that will ultimately be reflected in a future operational  
   requirements document (ORD) for the objective force;                    
       (5) program schedule and projected research and development and     
   procurement funding required to support proposed transformation         
   activities through fiscal year 2012, and identification of specific     
   adjustments made to Army programs in both the Future Years Defense      
   Program (FYDP) and extended planning program to fund the transformation 
   initiative and summarize anticipated investments by the Defense Advanced
   Research Projects Agency in programs designed to lead to the fielding of
   a future combat system;                                                 
       (6) joint warfighting requirements that will be supported by the    
   fielding of the objective force, including a description of planned     
   adjustments to war plans of the regional commanders in chief;           
       (7) changes to current strategic and tactical lift requirements     
   resulting from the creation and fielding of objective forces; and       
       (8) the evaluation process that will support future decisions on the
   course of the transformation initiative leading to the objective force, 
   including a description of operational evaluations and experimentation  
   that will be used to validate the KPPs and ORD requirements associated  
   with objective forces.                                                  
    In addition, the committee has recommended additional funding,        
  described elsewhere in this report, to support near-term acceleration of
  the future combat system research and development effort.               
      The Army has begun an effort to transform itself to meet the new     
   security challenges that the nation faces today. The committee agrees   
   that the Army needs to transform into a lighter, more lethal, survivable
   and tactically mobile force. The committee believes that the Army must  
   begin the transformation process and applauds the recognition that the  
   force must be better positioned to meet the significant defense         
   challenges in an uncertain and troubling future. It is clear that these 
   challenges will require our armed services to think and act differently 
   than in the past. The committee recognizes that the Army must be able to
   provide a mix of light, medium, and heavy forces. Future intervention   
   scenarios will call for different capabilities, requiring that the Army 
   be able to respond to a variety of national security missions, including
   mechanized warfare, defense of humanitarian sanctuaries, and peace      
   enforcement.                                                            
      The committee has a long history of supporting Army efforts to       
   transform itself through the advanced warfighting experiment (AWE)      
   process, the Army after next (AAN) activity, and the digitization       
   initiative. The committee has also supported Army modernization         
   activities that the Army later decided to terminate, including the      
   armored gun system (AGS), liquid propellant technology for Crusader,    
   Wolverine, Grizzly, Command and Control Vehicle, Prophet Air, Stinger   
   Block II, and Army Tactical Missile System Block IIA.                   
      The committee realizes that the Army has had several false starts and
   traveled up several ``blind alleys'' in pursuit of reforms since the end
   of the Cold War. The Chief of Staff of the Army also realizes that many 
   previous ``reforms'' have only lasted as long as the tenure of the      
   proponent Army Chief of Staff. He has said that he wants to achieve     
   ``irreversible momentum for change'' so that the Army will continue on a
   path to the new objective force even after his tenure as Chief of Staff.
      The committee commends the Chief of Staff for the actions he has     
   taken to begin to transform the Army into a force more relevant to the  
   diverse defense challenges of the new millennium. To achieve these      
   reforms, the Army will have to implement innovative changes to force    
   structure, modernization plans, and spending priorities.                

      The committee wants to support the Army's current efforts to achieve 
   ``irreversible momentum for change,'' but the committee wants to ensure 
   this momentum is along the proper path, not another ``blind alley.'' The
   best way to ensure that a transformation process will be reversed by    
   future Army leadership is to start down the wrong path.                 
      The committee strongly agrees with recommendations from a fiscal year
   1999 Army Science Board Summer Study report on Enabling Rapid and       
   Decisive Strategic Maneuver for The Army Beyond 2010, which included the
   following recommendations that:                                         
       (1) Training and Doctrine Command (TRADOC) experiment with          
   alternative, available equipment and recommend, within 12 months, needed
   procurements;                                                           
       (2) TRADOC and XVIII Airborne Corps develop split-based support     
   options, to include necessary organizational redesign;                  
       (3) The Army conduct an expeditionary experiment (possibly Joint    
   Contingency Force AWE) and examine within 24 months improvements in     
   early entry deployment and capability; and                              
       (4) TRADOC examine both traditional platform centric solutions as   
   well as non traditional ``ensemble'' solutions for future combat        
   systems. Army concept experimentation is needed.                        
      The committee finds the recommendations of the Army Science Board    
   compelling.                                                             
      The committee believes that the Army's transformation process must   
   focus on the objective force, first and foremost. However, the committee
   notes that the current Army plans do not adequately address how, or if, 
   the Army Science Board recommendations will be implemented.             
      The committee, therefore, directs the Army to establish a process of 
   operational analysis, experimentation, and platform demonstrations that 
   will serve to determine optimum organizational structures, equipment    
   types and numbers, and operational concepts for the objective force. The
   committee directs that the Army fully integrate this process with the   
   joint experimentation activities conducted by the Commander in Chief,   
   U.S. Joint Forces Command.                                              
      Consistent with the committee's view that the objective force must be
   preeminent in the planning process, the committee believes that the     
   interim capability adjustments that the Army is intending to pursue must
   not displace the attention and resources appropriate for the objective  
   force. Army forces continue to age precipitously because the Army has   
   not been able to afford sufficient modernization to support even the    
   current force structure. Absent significant additional investment, the  
   situation will only grow worse. The committee recognizes that the Army  
   modernization program has not competed well for resources within the    
   Department of Defense budget process. This fact alone makes it clear    
   that the Army can ill afford a major misstep in pursuing the goal of    
   transformation.                                                         
      While pursuing the objective force capability, the Army must also    
   focus on how it reforms in the mean time. The committee notes that there
   is great merit in Army plans to transform one heavy and one light       
   brigade into a medium brigade configuration. The Army effort involves   
   fielding interim brigade combat teams (IBCT) designed to bridge a       
   perceived near-term capability gap. Actions designed to field IBCT's are
   focused on requirements for medium weight forces that are strategically 
   deployable with a combat capability that exceeds those capabilities     
   provided by existing light forces. The committee agrees that such a     
   reconfiguration is necessary to provide insights into force structure,  
   equipment, and tactics alternatives for full-spectrum operations while  
   optimizing these forces for the challenges of peacekeeping.             
      In context of very limited resources, however, the committee believes
   that Army cannot afford to establish an interim medium force capability 
   when the primary aim is to serve as a rotational peacekeeping force. The
   committee believes that an effective evaluation of alternatives and     
   review of equipment evaluation data are critical to making informed     
   funding decisions. The Army must further define and validate interim    
   force operational concepts, force structure, equipment requirements, and
   funding alternatives before making acquisition commitments beyond the   
   two brigades described in the Chief of Staff's transformation           
   implementation letter. As the IBCT effort is clearly designed to provide
   an interim capability, the committee believes that life cycle cost      
   factors should be a primary consideration in determining equipment      
   solutions for IBCT requirements.                                        
      While the committee understands the established Army goal to achieve 
   commonality among medium combat vehicle types and the perceived need for
   momentum, these should not be the primary objectives. Principal         
   objectives should include: (1) focusing on fielding the objective force;
   and (2) ensuring that interim medium forces are formed based on         
   least-cost alternatives that lead to the most combat ready and cost     
   effective solution that ensures successful operations in a broad range  
   of environments. The committee believes it is possible that the Army may
   already have equipment in the inventory that could meet the requirements
   established for the interim force and allow the service to focus more of
   its resources on developing the objective force.                        
      Current acquisition policy requires the services to first explore the
   potential for existing equipment to meet emerging mission requirements. 
   The use of existing equipment could allow the Army to avoid expensive   
   new equipment acquisition costs, as well as a requirement to establish a
   new logistical support system that would result from the fielding of new
   equipment. The committee recognizes that the Army does not own a mobile 
   gun system (MGS) that could meet IBCT requirements. Fortunately, the    
   requirement for a MGS is relatively small. The committee is concerned,  
   however, that the Army appears to be preparing to select a mobile gun   
   system without conducting a performance and reliability evaluation of   
   candidate systems.                                                      
      Therefore, the committee believes it essential that the Army conduct 
   an operational evaluation of alternative systems that explores, at a    
   minimum, measures of operational and cost effectiveness between medium  
   armored vehicles already in the Army inventory compared with any new    
   system selected to meet IBCT requirements. The committee recognizes that
   this evaluation will be in addition to actions the Army has already     
   identified in the acquisition strategy report for interim armored       
   vehicles.                                                               
      The committee's recommended provision would also support, on a track 
   parallel to the objective force development activity, the fielding of   
   three interim brigades through fiscal year 2003. This provision would   
   provide guidance on analysis required to support the fielding of IBCTs  
   and establish two additional reporting requirements for the results of  
   that analysis. Moreover, the committee has supported the full budget    
   request for the Army's plan to field a new armored vehicle family in the
   IBCTs.                                                                  
      The first report would be required to describe the Army's plans for  
   conducting the side-by-side comparison of existing versus new hardware  
   implementations. The provision would require that the Secretary of the  
   Army:                                                                   
       (1) provide a report, no later than February 1, 2001, on plans to   
   conduct an operational analysis of medium armored combat vehicles that  
   will be selected later in fiscal year 2000 to meet IBCT infantry        
   battalion requirements compared with medium armored vehicles currently  
   found in the Army inventory. The assessment will determine cost and     
   operational effectiveness differences between new and existing medium   
   armored combat vehicles, and will be made on a comparative basis with at
   least one infantry battalion fielded with existing medium armored       
   vehicles similarly structured to IBCT infantry battalions;              
       (2) submit the plan to the Director, Operational Test and           
   Evaluation, Office of the Secretary of Defense, for review and comment; 
       (3) include the comments of the Director, Operational Test and      
   Evaluation as an attachment to the Army report;                         
       (4) describe how the results of the operational evaluation will     
   guide future acquisition decisions for additional interim brigade combat
   team equipment; and                                                     
       (5) identify specific adjustments made to Army programs in both the 
   FYDP and extended planning program to fund interim force fielding       
   requirements.                                                           

                    The second report would include the Army's analysis of the    
          results of the side-by-side comparisons. This would require that the    
          Secretary of the Army provide the results of the comparative operational
          analysis to the congressional defense committees no later than March 1, 
          2002. Additionally, the provision would require that the Secretary of   
          Defense certify that the conclusions of the operational analysis        
          contained in the second report support the Army's proposed acquisitions 
          for additional IBCT equipment in fiscal year 2003 and beyond.           
      The provision would limit obligations of the fiscal year 2001 funds  
   to 60 percent of the total amount authorized and appropriated for the   
   new armored vehicle family until 30 days after the date on which the    
   Secretary of the Army submits the first report to the congressional     
   defense committees. The provision would also limit obligations of the   
   funds for fiscal year 2002 funds provided for the fielding of a second  
   IBCT to 60 percent of the amount authorized and appropriated for the new
   armored vehicle family until 30 days after the date in which the        
   Secretary of the Army submits the second report on the conclusions of   
   the operational analysis.                                               
      The committee does not intend to impede current Army IBCT fielding   
   plans, but believes that the comparative operational analysis will serve
   to strengthen the transformation process and might ultimately accelerate
   the fielding of future brigades at lower costs. The Army cannot be      
   confident that what it is buying is what it needs, absent normally      
   required testing and evaluation. The Army transformation process cannot 
   afford more false starts.                                               
                                     OTHER ARMY PROGRAMS                          

                                        ARMY AIRCRAFT                             

            Utility aircraft                                                       

      The Army budget request included no funding for fixed-wing, medium   
   range, utility aircraft, but these aircraft were included on the Army's 
   unfunded priorities list. This aircraft is used for small unit movements
   to remote airfields, and is necessary to replace an aging system. The   
   committee recommends an increase of $24.3 million for the procurement of
   three UC 35 aircraft.                                                   
            UH 60 Blackhawk                                                        

      The budget request included $81.2 million to procure six UH 60       
   Blackhawk helicopters. The committee has watched with great interest    
   actions taken to revise an inadequate Army aviation modernization plan. 
   While the committee still has several outstanding concerns about the    
   overall viability of the Army plan, it is pleased to note decisions     
   taken by the Army to retire both AH 1 Cobra and UH 1 Huey helicopters as
   soon as practicable. This action will ultimately result in a pure fleet 
   of UH 60L Blackhawk helicopters for both active and reserve component   
   utility helicopter requirements. These aircraft will provide a more     
   capable fleet and support crew rotation requirements associated with    
   military operations across the spectrum of conflict. The committee      
   understands that the difficult decisions taken to address utility       
   helicopter requirements have resulted in an increased requirement for UH
   60L Blackhawk aircraft. The committee, therefore, recommends an increase
   of $196.3 million to procure 20 UH 60L aircraft, a total authorization  
   of $277.5 million. The committee does not support the acquisition of UH 
   60Q medical evacuation helicopters in fiscal year 2001. Current Army    
   plans call for the acquisition of these aircraft beginning in fiscal    
   year 2002. The committee expects the Army to address outstanding UH 60L 
   Blackhawk requirements in future budget requests.                       
            Longbow                                                                

      The budget request included $744.8 million for the acquisition of AH 
   64D Apache Longbow helicopters. The committee recognizes the AH 64      
   Apache helicopter as the most advanced and lethal attack helicopter in  
   the world. The committee notes with concern that there is a range of    
   known problems associated with the AH 64 Apache attack helicopter that  
   have existed for the last several years. Program delays in providing for
   required improvements to correct system component deficiencies has, in  
   part, resulted in aircraft groundings and serious questions about the   
   long-term reliability of these critical aircraft. The committee applauds
   actions taken by the Vice Chief of Staff of the Army to thoroughly      
   review and consolidate outstanding issues associated with the Apache    
   program and address these deficiencies in a corrective action program.  
   The committee recognizes that the Army had already identified a         
   significant unfunded requirement to provide upgrades to existing        
   critical components for fielded aircraft. In light of lessons learned   
   from the operation in Kosovo and critical warfighting requirements that 
   depend on the future viability of AH 64 aircraft, the committee believes
   it is essential to pursue immediate action designed to ensure the       
   viability of these aircraft. Therefore, the committee recommends an     
   increase of $158.0 million to support critical component upgrades, as   
   identified in the Army's unfunded requirements list, a total            
   authorization of $902.8 million for the Apache Longbow program. The     
   committee expects the Army to budget for any additional upgrades that   
   may be required after the ongoing program review is completed.          
            Kiowa Warrior                                                          

      The budget request included $41.8 million for Kiowa Warrior upgrade  
   requirements. The committee strongly supports actions intended to       
   improve the nature and scope of training currently provided for Army    
   aviators. The committee notes the significant action taken by the Army  
   in the recently revised aviation modernization plan to address          
   deficiencies in the training base associated with the Army aviation     
   center at Fort Rucker, Alabama. New Army training plans will provide    
   more flight training for new aviators and a corresponding need for      
   additional TH 67 training aircraft. These aircraft have been identified 
   as a near-term unfunded requirement for the Army. The committee supports
   this effort and recommends an increase of $35.0 million to procure 19 TH
   67 aircraft, a total authorization of $76.8 million for the Kiowa       
   Warrior line.                                                           
            Avionics support equipment                                             

      The budget request included no funding for avionics support          
   equipment. The committee notes an outstanding requirement for AN/AVS 6  
   (ANVIS) helmet mounted night vision devices. The committee has          
   consistently supported the capability of the armed forces to operate    
   effectively at night and during periods of reduced visibility. The      
   committee recommends an increase of $13.9 million to procure 1,603 ANVIS
   devices to meet outstanding Army aviation requirements.                 
            Aircrew integrated systems                                             

      The budget request included $3.5 million for aircrew integrated      
   system equipment requirements. The committee was pleased to note the    
   development of advanced laser eye protection (ALEP) visors produced     
   through a Joint Service program designed to address battlefield eye     
   protection requirements for military aviators. The committee supports   
   this effort and believes these visors should be fielded to Army aviators
   as soon as practicable. The committee recommends an increase of $5.9    
   million for aircrew integrated systems, to procure 12,640 ALEP visors, a
   total authorization of $9.4 million.                                    
                                        ARMY MISSILE                              

            Army tactical missile system-system summary                            

      The budget request included $15.0 million for Army tactical missile  
   system (ATACMS) fielding and production line shutdown. The committee    
   notes a critical unfunded requirement for additional ATACMS block IA    
   missiles necessary to meet the Army                                     

                    acquisition objective. Additionally, the Chairman of the Joint
          Chiefs of Staff has identified a requirement for additional ATACMS block
          IA missiles on the unfunded requirements list. Therefore, the committee 
          recommends an increase of $77.4 million to procure 100 ATACMS block IA  
          missiles necessary to meet war reserve, a total authorization of $92.4  
          million.                                                                
            Stinger modifications                                                  

      The budget request included $21.8 million for Stinger missile        
   modifications. The committee notes an outstanding requirement for       
   additional Stinger block I missile modifications necessary to meet Force
   Package 3 and 4 fielding requirements. These block I missiles have      
   improved performance against advanced countermeasures and improved the  
   accuracy of the Stinger system. The committee recommends an increase of 
   $15.2 million to procure 651 Stinger block I missiles, a total          
   authorization of $37.0 million.                                         
                             WEAPONS AND TRACKED COMBAT VEHICLES                  

            Carrier modifications                                                  

      The budget request included $45.1 million for M113 armored personnel 
   carrier modifications. The committee notes the Army has over 17,000 M113
   armored personnel carriers in the inventory today. The M113 has been in 
   Army combat units for decades and requires upgrades necessary to improve
   mobility, reliability, and survivability. As these vehicles represent   
   almost one-half of the tracked combat vehicle fleet, it is critical that
   they be upgraded as soon as practicable. The committee recommends an    
   increase of $50.0 million to modify 227 vehicles, a total authorization 
   of $95.1 million.                                                       
            Breacher system modification                                           

      The budget request included no funding for the Grizzly (M1 Breacher) 
   system. The committee believes that critical mobility systems like the  
   Grizzly armored engineer vehicle must be continued to correct critical  
   operational shortfalls for deployed forces. Operations in Iraq, Somalia,
   and Bosnia continue to highlight the critical need for combat engineer  
   equipment necessary to clear obstacles and support maneuver forces. The 
   ability of our fast-moving M 1 Abrams tanks and M 2 Bradley fighting    
   vehicles to operate successfully on the battlefield is dependant on the 
   ability of these vehicles to maintain their momentum and speed of       
   maneuver. Finally, the committee notes that a request for funds         
   necessary to restore this program was one of the top Army unfunded      
   requirements for fiscal year 2001. Therefore, the committee recommends  
   an increase of $108.0 million to restore the Grizzly program. The       
   committee expects the Army to ensure that this program is funded in     
   future budget requests.                                                 
            Heavy assault bridge system modifications                              

      The budget request included no funding for the heavy assault bridge  
   system modifications. The committee has noted with great concern        
   decisions that terminated the effort to field the Wolverine heavy       
   assault bridge. One of the major tenets of combat for our forces is     
   movement at a rapid pace to ensure a decisive engagement that will      
   result in the defeat of enemy forces. The Wolverine heavy assault bridge
   is a critical element on the battlefield to ensure the mobility of our  
   forces. The committee believes that this program should be restored and 
   that the armored vehicle launch bridge (AVLB) service life extension    
   program (SLEP) effort should be terminated. Therefore, the committee    
   recommends an increase of $77.0 million to restore the Wolverine heavy  
   assault bridge program and a corresponding decrease of $15.2 million to 
   the AVLB SLEP program. The committee expects the Army to ensure that    
   this program is funded in future budget requests.                       
            Machine gun, squad automatic weapon                                    

      The budget request included no funding for the squad automatic weapon
   (SAW). The committee notes an outstanding requirement for an additional 
   4,280 weapons necessary to meet the Army procurement objective.         
   Therefore, the committee recommends an increase of $18.3 million to     
   procure 4,280 weapons and complete the acquisition of the SAW system, a 
   total authorization of $18.3 million.                                   
            Mark 19 grenade launcher                                               

      The budget request included $11.8 million for Mark 19 grenade        
   launchers. The committee notes an outstanding requirement for additional
   Mark 19 systems necessary to avoid a break in production prior to       
   acquiring the total number of systems necessary to meet the acquisition 
   objective. The committee recommends an increase of $8.1 million to      
   procure 386 Mark 19 systems and avoid a break in production, a total    
   authorization of $19.9 million.                                         
            M4 carbine modifications                                               

      The budget request included $2.5 million for M4 carbine              
   modifications. The committee notes an outstanding requirement for       
   additional modular weapon systems (MWS) for the M4 carbine              

                    necessary to mount the weapons optical systems. The committee 
          recommends an increase of $1.3 million to procure 7,201 MWS for the M4  
          carbine, a total authorization of $3.8 million.                         
                                       ARMY AMMUNITION                            

            Procurement of ammunition, Army                                        

      The committee is concerned with continued reports of inadequate      
   supplies of ammunition for training and war reserves. The Chief of Staff
   of the Army identified a requirement of $242.9 million for ammunition   
   programs that were not included in the fiscal year 2001 budget request. 
   For the past several years, field commanders have expressed concern     
   regarding the inadequate stocks of ammunition to support their training 
   and war reserve requirements. The committee recommends the following    
   adjustments to the budget request for Army ammunition procurement:      


Item                                                                    

Millions                                                                

  30 mm                                                                   

 $6.0                                                                    

  60 mm                                                                   

 5.0                                                                     

  105 mm M915                                                             

 .15.0                                                                   

  120 mm M934                                                             

 6.0                                                                     

  155 mm M107                                                             

 10.0                                                                    

  MACS                                                                    

 20.0                                                                    

  Wide Area Munition                                                      

 16.0                                                                    

                                                                          

   Subtotal                                                               

 78.0                                                                    


            Armament retooling and manufacturing support initiative                

      The budget request included $4.7 million for the continuation of the 
   Armament Retooling and Manufacturing Support (ARMS) program. The        
   committee is aware this does not satisfy all proposals that would reduce
   the operating costs of Army Ammunition plants. This program has had     
   great success, saving the Army $37.0 million each year in program and   
   operating costs, while preserving hundreds of jobs for skilled workers. 
   Therefore, the committee recommends an increase of $20.0 million for    
   this program. The committee expects these funds to be utilized in the   
   most effective manner to ensure preservation of those facilities most   
   likely to be required to fulfill the military's needs to support the    
   national military strategy.                                             
                                   OTHER ARMY PROCUREMENT                         

            Family of medium tactical vehicles                                     


      The budget request included $438.3 million to procure family of      
   medium tactical vehicle (FMTV) trucks to replace an aging fleet of      
   medium trucks found in the Army today. The Army has identified an       
   unfunded requirement for additional FMTV trucks necessary to meet Force 
   Package 2 fielding requirements. The committee recommends an increase of
   $77.9 million, to procure additional FMTV trucks necessary to accelerate
   the fielding of these trucks to reserve component units, a total        
   authorization of $516.2 million.                                        
            Weapons of Mass Destruction Civil Support Teams                        

      The committee recommends an increase of $25.0 million for the Weapons
   of Mass Destruction Civil Support Team (WMD CST) program. This funding  
   will establish five additional WMD CSTs and provide additional equipment
   for the WMD CST program. The $25.0 million is authorized as follows:    
   $3.2 million in military personnel; $7.5 million in Operations and      
   Maintenance, Army; $1.8 million in Contamination Avoidance, Chemical    
   Biological Defense Program, Procurement, Defense-Wide; and $12.5 million
   in Special Purpose Vehicles, Other Procurement, Army.                   
      The WMD CSTs, formerly know as Rapid Assessment and Initial Detection
   (RAID) teams, are comprised of 22 full-time National Guard personnel who
   are specially trained and equipped to deploy and assess suspected       
   nuclear, biological, chemical, or radiological events in support of     
   local first responders. The committee recommends an increase of $21.0   
   million, included in the categories listed above, for the addition of   
   five WMD CSTs which will result in a total of 32 WMD CSTs by the end of 
   fiscal year 2001. The committee reaffirms the commitment it made last   
   year to ultimately provide funding for the establishment of a WMD CST in
   every state and U.S. territory.                                         
      The committee recommends an increase of $3.5 million, included above 
   in Special Purpose Vehicles, Other Procurement, Army, for the purchase  
   of two additional Unified Command Suites (UCS) and Mobile Analytical    
   Labs (MALS) in order to provide the WMD CST program with needed spare   
   equipment. The committee is concerned that, under the Department of     
   Defense's current plan for WMD CSTs, no provision has been made to      
   provide spare equipment for the teams. The committee understands that   
   the spare UCSs and MALs that had been available for the initial 10 teams
   are being used to outfit the 17 teams authorized last year. Provision   
   should be made for spare equipment to support a military capability that
   must respond rapidly to a crisis. The committee also recommends an      
   increase of $500,000, included above in Special Purpose Vehicles, Other 
   Procurement, Army, for the purchase of 35 tactical mobility systems for 
   use by the WMD CSTs to improve survey operations of potentially         
   contaminated areas by rapidly moving Reconnaissance and Survey teams.   
   This system would also facilitate the expeditious recovery of WMD CST   
   response force personnel who may become casualties.                     
      The committee also expresses some concerns with the WMD CST program. 
   First, the committee is concerned with the Department's failure to      
   formulate a plan and provide funding to rapidly deploy WMD CSTs to each 
   state and U.S. territory as recommended in the January 1998 DOD report  
   entitled ``Department of Defense Plan for Integrating National Guard and
   Reserve Component Support for Response to Attacks Using Weapons of Mass 
   Destruction''. Second, the committee is concerned with the Department's 
   delay in submitting the reprogramming request necessary to stand up the 
   17 WMD CSTs authorized in fiscal year 2000. As a result of this delay,  
   very little of the funding authorized and appropriated in fiscal year   
   2000 for the 17 additional teams has been spent. Third, the committee is
   concerned with the Department's decision to locate a second WMD CST in  
   California, while many states do not have a WMD CST. The committee      
   believes that each state and territory should be provided with a WMD CST
   before additional capabilities are provided to a single state.          
      The result of this behavior by the Department is that vast areas of  
   the United States are currently not covered by WMD CSTs. If the         
   Department had acted swiftly to deploy the 27 teams previously          
   authorized and appropriated by Congress, the committee would have been  
   in a position to provide funding for more than five additional teams in 
   fiscal year 2001. Given the growing terrorist threat to the United      
   States, the committee is troubled by the lack of urgency on the part of 
   the Department to fund and field these teams.                           
            Secure mobile anti-jam reliable tactical terminal                      

      The budget request included $48.6 million for the Secure Mobile      
   Anti-jam Reliable Tactical Terminal (SMART T), the Army's secure,       
   multi-channel satellite terminal used with the Milstar satellite        
   communications system. In its report on the National Defense            
   Authorization Act for Fiscal Year 2000 (S. Rept. 106 50), the committee 
   noted significant developmental problems associated with the SMART T    
   program and cited a review by the Department of Defense Director of     
   Operational Test and Evaluation, which concluded that ``. . . the SMART 
   T is not operationally suitable,'' and which recommended temporary      
   cessation of production while the Army and the contractor sought to     
   solve the problems. Unfortunately, significant problems remain and the  
   Army does not currently believe that these problems can be resolved in  
   time to award the currently planned production option. SMART T fielding 
   has been stopped pending the launch of the next Milstar II satellite.   
   Therefore, the committee recommends a reduction of $20.0 million in Army
   Other Procurement for SMART T.                                          
            Army data distribution system                                          

      The budget request included $32.7 million for Army data distribution 
   system (ADDS) requirements. The committee recognizes the critical role  
   that the enhanced position location reporting system (EPLRS) plays in   
   supporting Army digitization efforts. Future military operations will   
   continue to demand more data throughput to meet the demands of a dynamic
   and complex battlefield. The Army has identified an opportunity to      
   improve existing EPLRS systems that will ultimately result in five times
   the communications throughput currently available. The committee,       
   therefore, recommends an increase of $5.3 million to support EPLRS      
   software development requirements. The committee also notes that        
   requirements for EPLRS equipment continues to grow as the Army works to 
   digitize the force. The committee also recommends an increase of $27.3  
   million to procure 634 EPLRS systems and accelerate efforts to meet the 
   Army acquisition objective for this system, a total authorization of    
   $65.3 million for ADDS requirements.                                    
            Area common user system modification program                           

      The budget request included $114.0 million for area common user      
   system (ACUS) modification program requirements. The committee          
   recognizes and supports ongoing efforts by the Army to digitize the     
   force and enhance the situational awareness and warfighting             
   effectiveness of our land forces. The committee notes an outstanding    
   requirement for warfighter information network down-sized communications
   switches, which are mounted on high mobility multipurpose wheeled       
   vehicles instead of the larger five ton trucks that housed older TTC 39D
   switching equipment. Additionally, the Army has additional requirements 
   for high mobility DGM assemblages (HMDA) to support communications      
   requirements for reserve component signal battalions. The committee     
   recommends an increase of $60.0 million to procure 27 down-sized        
   communications switches and 229 HMDA devices. Additionally, the         
   committee notes the successful use of TS 21 Blackjack facsimile machines
   throughout the force. The committee also recommends an increase of $14.0
   million to accelerate the fielding of 2,901 TS 21 Blackjack secure      
   facsimile machines. The committee recommends a total authorization of   
   $188.0 million for the ACUS modification program.                       
            Forward area air defense ground based sensor                           

      The budget request included $24.2 million for forward area air       
   defense (FAAD) ground based sensor (GBS) procurement. The committee     
   recognizes an outstanding requirement for additional Sentinel systems   
   necessary to meet operational requirements and                          

                    to obtain a minimum economic order quantity. The committee    
          recommends an increase of $7.3 million, for a total authorization of    
          $31.5 million, to support Sentinel production requirements and          
          modifications for these critical systems.                               
            Night vision                                                           

      The budget request included $34.1 million for Army night vision      
   devices. The committee has consistently supported night vision          
   development and fielding efforts in recognition of service focus on     
   night operations. The committee notes that the Army identified          
   significant unfunded requirements for night vision devices in fiscal    
   year 2001. Therefore, the committee recommends the following increases: 
       (1) $18.1 million to procure 5,000 AN/PEQ 2A and 10,000 AN/PAC 4C   
   target pointer/aiming lights;                                           
       (2) $14.9 million to procure 18,600 AN/PVS 7 night vision           
   binoculars; and                                                         
       (3) $15.0 million for 25mm image intensification tubes for AN/PVS 4 
   and AN/TVS 5 night vision weapon scopes.                                
    The committee recommends a total authorization of $82.1 million for   
  night vision devices.                                                   
            Forward area air defense command and control                           

      The budget request included $17.9 million for forward area air       
   defense (FAAD) command and control (C2) requirements. The committee     
   recognizes an outstanding requirement to upgrade existing FAAD hardware 
   and software to meet evolving threat capabilities and operational       
   requirements and to enable full materiel release of air defense brigade 
   and higher headquarters prototype FAAD C2 systems. The committee        
   recommends an increase of $14.3 million to support identified           
   requirements for additional FAAD C2 hardware and software upgrades      
   necessary to ensure the full materiel release of prototype systems, a   
   total authorization of $32.2 million.                                   
            Striker-command and control system                                     

      The budget request included $19.1 million for the Striker system. The
   committee notes the current budget request will only procure 33 Striker 
   systems, which will result in an inefficient rate of production. The    
   committee recommends an increase of $8.0 million to procure additional  
   Striker systems and achieve an economic procurement level, a total      
   authorization of 27.1 million.                                          
            Standard integrated command post system                                

      The budget request included $36.0 million to procure standard        
   integrated command post systems (SICPS). The committee notes an         
   opportunity to complete the fielding of these important systems to force
   package two units and support critical fielding requirements. The       
   committee recommends an increase of $17.5 million to procure additional 
   SICPS, a total authorization of $53.5 million.                          
            Lightweight maintenance enclosure                                      

      The budget request included $2.0 million to procure lightweight      
   maintenance enclosure (LME) units. The committee notes an outstanding   
   requirement for additional funding for LME units to maintain minimum    
   sustaining rates (MSR) for production. The committee recommends an      
   increase of $4.6 million to procure 258 LME units and to meet MSR       
   requirements, a total authorization of $6.6 million.                    
            Roller, vibratory, self-propelled                                      

      The budget request included $4.7 million for self-propelled vibratory
   roller systems. The committee recommends an increase of $5.0 million to 
   procure 80 vehicles necessary to meet the requirements of Army engineer 
   units, a total authorization of $9.7 million.                           
            Deployable universal combat earth mover                                

      The budget request included $14.1 million for deployable universal   
   combat earth movers (DEUCE). The committee recommends an increase of    
   $7.0 million to procure 18 DEUCE vehicles, a total authorization of     
   $21.1 million.                                                          

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            CVNX 1 nuclear aircraft carrier program (sec. 121)                     

      The budget request included $21.9 million for advance procurement and
   advance construction of long lead time components for CVNX 1. The       
   committee recommends a provision that would authorize the Secretary of  
   the Navy to procure the nuclear aircraft carrier designated CVNX 1, and 
   enter into a contract for the advance procurement and advance           
   construction of that ship.                                              
      The Navy's long-term plan is to provide full funding for CVNX 1 in   
   fiscal year 2006. There are a number of castings for the large machinery
   associated with an aircraft carrier propulsion plant that have a very   
   long production lead time. To maintain the schedule for CVNX 1 and      
   deliver these needed pieces of machinery as required by the construction
   sequence, the Navy needs to obligate funds for some of these components 
   in fiscal year 2001.                                                    
      Therefore, the committee recommends an authorization of the $22.0    
   million in advance procurement included in the budget request.          
            Arleigh Burke-class destroyer program (sec. 122)                       

      The authorization request included a provision to extend the DDG 51  
   multiyear procurement authorization contained in the National Defense   
   Authorization Act for Fiscal Year 1997 (Public Law 104 208). The        
   committee recommends a provision that would: (1) authorize the Secretary
   of the Navy to extend the 1997 multiyear contract to include the fiscal 
   year 2004 and fiscal year 2005 DDG 51 procurements; (2) express that it 
   is the sense of Congress that the most economical rate for procurement  
   is three ships per year; and (3) direct the Secretary to update the     
   Arleigh Burke (DDG 51) Class Industrial Base Study of 1993 and the      
   Comptroller General to review this update.                              
      The budget request included $356.8 million for advance procurement   
   for DDG 51 ships. The committee received information that indicated that
   providing $500.0 million in advance procurement funds for DDG 51 would  
   maximize savings to the taxpayers for procurement of six ships over a   
   two year period: fiscal years 2002 and 2003.                            
      The Future Years Defense Program (FYDP) shows that the Navy plans to 
   buy only two DDG 51 destroyers per year over a three year period (fiscal
   years 2002 2004) and two destroyers (one DDG 51 and one DD 21) in fiscal
   year 2005. The Navy's Arleigh Burke (DDG 51) Class Industrial Base Study
   of 1993 stated that procurement of three destroyers per year could only 
   sustain the destroyer industrial base if some additional, non-DDG 51    
   work, were available to each shipbuilder. The study also stated that at 
   a rate of two ships per year, a very substantial amount of non-DDG 51   
   work would be required for each shipbuilder and risk to survival of one 
   or both shipyards could be high.                                        
      The Navy testified that a proposal to build two DDG 51 ships per year
   would result in potential reductions in shipyard workforces and the     
   workforce skill mix, and that maintaining the industrial base would be  
   perilous. The committee concurred with the Navy's assessment regarding  
   the industrial base at the time of the original study, and does not     
   believe that the assumptions in that study have changed enough to       
   invalidate its conclusions for the situation the Navy faces today.      
      It is clear to the committee that stretching out this procurement    
   will cause reductions in workforce skill mix that will result in higher 
   costs for not only the DDG 51 ships, but also for other Navy work in the
   shipyards that build DDG 51 ships.                                      
      In fact, the budget request shows a dramatic cost increase of between
   $60.0 million and $100.0 million per ship when a projected procurement  
   rate of two DDG 51 ships per year is computed. Therefore, buying six    
   ships at a rate of two ships per year for three years will cost the     
   taxpayers between $360.0 and $600.0 million more than buying the same   
   ships over a two year period. The Navy appears to be willing to pay this
   premium in an attempt to partially accommodate the destroyer industrial 
   base potential problems (as discussed above: three destroyers per year  
   are required to maintain the industrial base) caused by delaying DD 21  
   one year.                                                               
      The destroyer industrial base, which will also be required to build  
   DD 21, should be maintained while maximizing cost savings to taxpayers  
   by buying required ships at proven economical rates.                    
      The Navy testified that the current shipbuilding budget is inadequate
   to recapitalize at the required rate to provide the number of ships     
   needed to carry out the National Security Strategy. Therefore, the      
   committee believes that every opportunity to save scarce ship           
   construction funds should be considered. The Navy has documented over   
   $1.4 billion in savings by buying three ships per year under the        
   multiyear procurement authority provided by Congress. As discussed      
   above, continuing the proven economical rate of three ships per year and
   use of multiyear authority would save additional taxpayer dollars on    
   this program which the Navy intends to complete.                        
      Therefore, the committee recommends an increase of $143.2 million in 
   advance procurement for DDG 51 to achieve the maximum savings for the   
   taxpayer and to relieve some pressure on the underfunded shipbuilding   
   account in future years.                                                
      The additional advance procurement, coupled with the savings to the  
   taxpayer of buying six ships in two years instead of three years, should
   result in procurement of six ships on a two year multiyear contract for 
   the approximate cost of five ships procured at a lower rate.            
            Virginia-class submarine program (sec. 123)                            

      The committee recommends a provision that would authorize the        
   Secretary of the Navy to enter into a contract for up to a total of five
   Virginia -class submarines between fiscal year 2003 and fiscal year     
   2006. The provision would authorize the Secretary to continue the       
   shipbuilder teaming arrangement authorized in the National Defense      
   Authorization Act for Fiscal Year 1998 (Public Law 105 85). The         
   provision would also authorize procurement of material in economic order
   quantity when cost savings to the taxpayers will result.                
      The current acquisition and construction strategies for the          
   procurement of the first four Virginia -class submarines appears to be  
   yielding positive results to date. However, the two shipbuilders have   
   not yet completed the critical test of joining sections constructed in  
   two separate shipbuilder facilities. In addition, the subsystems being  
   developed by a number of subcontractors require continued oversight     
   regarding cost and schedule excursions.                                 
      The committee notes the importance of the technology insertion       
   approach of building submarines. This approach provides both the        
   flexibility and opportunity to forward fit and refresh capabilities.    
   Administration officials have supported this approach in testimonies    
   before congressional committees.                                        
      Therefore, the provision would require the Secretary of Defense to   
   submit a report to the congressional defense committees with submission 
   of the fiscal year 2002 President's budget to include the following:    
       (1) a plan for maintaining at least 55 attack submarines through    
   2015, and a plan for achieving a force of 18 Virginia -class submarines 
   by 2015;                                                                
       (2) assessments of savings to the program of production rates of two
   submarines per year, if that rate were to begin in fiscal year 2004 and 
   construction were to continue at that rate in fiscal year 2006 and      
   thereafter; and                                                         
       (3) an analysis of the advantages and disadvantages of alternative  
   contracting strategies including multiyear procurement and block buy    
   with economic order quantity.                                           
            ADC(X) ship program (sec. 124)                                         

      The committee recommends a provision that would authorize the        
   Secretary of the Navy to procure ADC(X)-class ships using the           
   contracting authority most advantageous to the taxpayer. This ship      
   program is important because ADC(X)-class ships will replace            

                    the auxiliary vessels that have the oldest average age in the 
          active fleet.                                                           
      The Navy intends to require at least two shipyards to construct      
   ADC(X) class ships. The committee is concerned that this could result in
   higher risk in building, which could lead to delays and higher costs.   
   The committee encourages the Navy to minimize the risks associated with 
   constructing the ADC(X)-class ships.                                    
                       Refueling and Complex Overhaul Program of the CVN 69 nuclear
           aircraft carrier (sec. 125)                                             
      The committee recommends a provision that would authorize the        
   Secretary of the Navy to enter into a contract and commence overhaul of 
   the CVN 69 nuclear aircraft carrier during fiscal year 2001. The        
   provision would also authorize the budget request of $703.4 million to  
   commence the overhaul of CVN 69. The committee concurs with the Navy's  
   intention to budget for nuclear aircraft carrier overhauls over a two   
   year period and to commence the overhauls during the first year of      
   authorization and appropriation of funds for that purpose.              
                                     OTHER NAVY PROGRAMS                          

                                        NAVY AIRCRAFT                             

            Airborne low frequency sonar                                           

      The budget request included $162.3 million for the procurement of    
   four remanufactured SH 60R helicopters. The airborne low frequency sonar
   (ALFS) is a subsystem of the SH 60R. ALFS is a helicopter borne low     
   frequency dipping sonar system that can be rapidly deployed from        
   aircraft carriers and surface combatants to detect and track submarines 
   both in blue water and the littorals.                                   
      The committee recommends an increase of $6.0 million for the         
   procurement, installation, and spare parts for the ALFS resulting in a  
   more efficient low rate initial production.                             
            SH 60 helicopters                                                      

      The budget request included $162.3 million for the procurement of    
   four remanufactured SH 60R helicopters. The SH 60R remanufacturing scope
   includes the airframe, an avionics upgrade, service life extension and  
   incorporation of engineering change proposals. It represents a          
   significant improvement, providing the battle group with added          
   protection in the coastal littorals and in regional conflicts. The Navy 
   included the procurement of additional SH 60R helicopters on its        
   unfunded requirements list. The committee recommends an increase of     
   $90.0 million for the procurement of three SH 60R helicopters.          
            CH 60 helicopters                                                      

      The budget request included $238.5 million for the procurement of 15 
   CH 60S helicopters, less $73.4 million in advanced procurement from     
   prior years. The primary roles of the CH 60S are to conduct vertical    
   replenishment with external transfer of cargo and internal transfer of  
   passengers ship-to-ship, ship-to-shore, and shore-to-ship, and to       
   conduct day and night search and rescue. The Navy has included the      
   procurement of additional CH 60S helicopters on its unfunded            
   requirements list. The committee recommends an increase of $63.0 million
   for the procurement of three CH 60S helicopters.                        
            UC 35 aircraft                                                         

      The budget request included no funding for the procurement of UC 35  
   medium range operational support aircraft (OSA). The Navy and the Marine
   Corps intend to use this aircraft to modernize their OSA fleet. The Navy
   will purchase UC 35 aircraft to restore a portion of the capability that
   was lost when the Navy retired CT 39 aircraft without replacement. Both 
   the Navy and the Marine Corps have included the requirement for UC 35   
   aircraft on their unfunded priorities list. The committee recommends an 
   increase of $48.6 million for the procurement of six UC 35 aircraft,    
   three each for the Navy and the Marine Corps.                           
            C 40A aircraft                                                         

      The budget request included no funding for the procurement of C 40A  
   aircraft, although additional C 40A procurement is scheduled in the     
   Future Years Defense Program, and is included on the Navy unfunded      
   requirements list. The C 40A is being procured as a replacement for the 
   aging C 9 to provide intra-theater logistics essential to maintaining   
   the readiness of forward-deployed naval forces. Funding has been        
   provided for five C 40A aircraft to date, with deliveries scheduled to  
   commence in fiscal year 2001. The committee recommends an increase of   
   $128.4 million for the procurement of two C 40A aircraft, including     
   $11.2 million for spare parts.                                          
            T 45 aircraft                                                          

      The budget request included $278.1 million for the procurement of 12 
   T 45 Goshawk aircraft, less advance procurement of $9.5 million from    
   prior years. The T 45 Goshawk training system consists of aircraft,     
   simulators, and academic materials required to train carrier-based naval
   aviators. Additional T 45 aircraft are included on the Navy unfunded    
   requirements list.                                                      
      The committee is concerned that the current budget request indicates 
   the Navy may shut down the production line for the T 45 before the      
   service acquires sufficient aircraft to offset attrition or accommodate 
   any potential surge in pilot training rate. The committee recommends an 
   increase of $49.2 million for the procurement of three T 45 aircraft, a 
   total authorization of $327.3 million.                                  
            Joint primary air training system                                      

      The budget request included $74.4 million for 21 joint primary air   
   training system (JPATS) aircraft for the Navy. The Navy has included    
   additional JPATS aircraft on its unfunded requirements list. The        
   committee recommends an increase of $7.0 million for the procurement of 
   three JPATS aircraft for the Navy, a total authorization of $81.4       
   million.                                                                
            KC 130J                                                                

      The budget request included $154.8 million for the procurement of two
   KC 130J aircraft. The Marine Corps is facing a shortfall of aerial      
   refueling aircraft as it uses up the remaining fatigue life of its KC   
   130F and KC 130R fleet. The Marine Corps has included the procurement of
   additional KC 130J aircraft on its unfunded priorities list. The        
   committee recommends an increase of $74.6 million for the procurement of
   one KC 130J aircraft, a total authorization of $229.4 million.          
            EA 6B aircraft automatic flight control system                         

      The budget request included $203.1 million for modifications for the 
   EA 6B aircraft. Although the budget request included no funds for       
   automatic flight control systems (AFCS), a new AFCS for the EA 6B was   
   included on the Navy unfunded priorities list. A new AFCS is required to
   replace the obsolete air navigation computer, and will provide the pilot
   with axis stability and attitude, speed, and altitude control. The new  
   system will also improve reliability and maintainability for the EA 6B, 
   the only tactical electronic jammer in use by the services. Heavily used
   in Operation Allied Force, the EA 6B is a high demand, low density      
   platform. The committee recommends an increase of $21.0 million for the 
   procurement of EA 6B AFCS, a total authorization of $224.1 million.     
            AV 8B precision targeting pod                                          


      The budget request included $40.6 million for modifications to the AV
   8B aircraft. The budget request included no funding for Litening II     
   precision targeting pods, although they were included on the Marine     
   Corps unfunded priorities list. The Litening II is a precision targeting
   system which allows the aircraft to acquire targets and deliver         
   precision munitions. The Marine Corps currently has nine targeting pods 
   on contract, funded through the Emergency Supplemental Appropriations   
   Act for Fiscal Year 1999.                                               
      Operation Allied Force demonstrated a continuing requirement for     
   precision weapons and aircraft platforms capable of delivering them. The
   committee recommends an increase of $79.4 million to procure 47 Litening
   II precision targeting pods, a total authorization of $120.0 million in 
   AV 8B aircraft modifications.                                           
            F 18 modifications                                                     

      The budget request included $212.6 million for modifications to the F
   18 aircraft, including $22.7 million for engineering change proposal 583
   (ECP 583), which upgrades Marine Corps F/A 18A aircraft to a            
   configuration with capabilities comparable to Lot 17 F/A 18C aircraft.  
   This upgrade allows these F/A 18A aircraft to remain viable for use on  
   the modern battlefield. Acceleration of this upgrade over what is       
   currently included in the Future Years Defense Program is included in   
   the Navy unfunded requirements list. The committee recommends an        
   increase of $86.9 million to upgrade 20 F/A 18A aircraft with ECP 583, a
   total authorization of $299.5 million.                                  
            AH 1W series                                                           

      The budget request included $9.8 million for AH 1W series aircraft   
   modifications. The committee notes an outstanding requirement for four  
   additional night targeting systems (NTS) for reserve component AH 1W    
   series aircraft. The committee recommends an increase of $4.0 million,  
   necessary to complete the last four aircraft upgrades with NTS devices. 
   The committee recommends a total authorization of $13.8 million for AH  
   1W series aircraft modifications.                                       
            H 1 series                                                             

      The budget request included $2.6 million for H 1 series aircraft     
   modifications.                                                          
      The Marine Corps is fielding AN/AAQ 22 UH 1N navigation thermal      
   imaging systems (NTIS) to support operational enhancements to fielded   
   aircraft. The committee supports this effort and believes these         
   modifications should be completed as soon as practicable. The committee 
   recommends an increase of $10.0 million to procure an additional 28 NTIS
   upgrades for UH 1N aircraft.                                            
      The Marine Corps plans to begin the induction of existing UH 1N      
   aircraft into the remanufacturing process which will convert older      
   aircraft into the future four bladed ``November'' (4BN) configuration.  
   Due to a shortage of existing aircraft in the operational fleet, the    
   Marine Corps will have to use aircraft from operating squadrons to start
   the contractor conversion program. The committee would prefer to avoid  
   such an effect on the operating squadrons. The Marine Corps has informed
   the committee that there are aircraft currently housed in the aerospace 
   maintenance and regeneration center (AMARC) that could be used to begin 
   the conversion process instead. The committee recommends another        
   increase of $17.5 million to reclaim and convert 14 aircraft from AMARC 
   necessary to initiate the remanufacturing process without impacting     
   operational units. The committee, therefore, recommends a total         
   authorization of $30.1 million for H 1 series modifications.            
            P 3 aircraft modifications                                             

      The budget request included $60.7 million for modifications to the P 
   3 aircraft. The committee recommends an overall increase of $87.2       
   million in P 3 modifications for two modifications included on the Navy 
   unfunded priorities list, a total authorization of $147.9 million.      
      The budget request included $31.6 million for installation of        
   previously procured anti-surface warfare improvement program (AIP) kits,
   along with associated support items, but did not include the procurement
   of any additional AIP kits. The AIP modification allows the P 3 to      
   combat emerging third world, limited operations, surface, subsurface,   
   and air threats with simultaneous multi-mission capabilities, a         
   capability proven in Operation Allied Force. The committee recommends an
   increase of $44.1 million for the procurement of three P 3 AIP kits.    
      The budget request included $17.7 million for the P 3C Update III    
   common configuration program, also known as the block modification      
   upgrade program (BMUP). This program provides modern processing systems 
   for the mission computer and acoustics sensors to achieve a common P 3C 
   configuration with improved performance. The committee recommends an    
   increase of $43.1 million for the conversion of five aircraft with BMUP 
   kits.                                                                   
            Tactical aircraft moving map capability                                

      The budget request included $71.6 million for common avionics        
   changes, but included no funding for installation of the tactical       
   aircraft moving map capability (TAMMAC) in the F/A 18C/D                

                    aircraft. TAMMAC is a modular hardware and software base      
          system that helps the aircrew maintain situational awareness by         
          providing a graphical presentation of the aircraft position and relative
          positions of targets, threats, terrain features, planned mission flight 
          path, no fly zones, safe bases, and other objects. Funding for TAMMAC is
          included for the F/A 18C/D in the Future Years Defense Program, and it  
          is included on the Navy unfunded requirements list. The committee       
          recommends an increase of $9.3 million to procure 80 TAMMAC units, the  
          maximum annual rate for F/A 18C/D installations, a total authorization  
          of $80.9 million for common avionics changes.                           
                                        NAVY WEAPONS                              

            Joint standoff weapon                                                  

      The budget request included $171.6 million for the procurement of 636
   joint standoff weapons (JSOWs) for the Navy. The JSOW is a precision    
   air-to-ground glide weapon capable of attacking a variety of fixed area 
   targets in day, night, and adverse weather conditions. With the         
   increased emphasis on the use of precision guided munitions demonstrated
   in Operation Allied Force, it is necessary to build up inventories of   
   such weapons for use in contingencies. The committee recommends an      
   increase of $36.0 million for the procurement of 180 JSOWs, a total     
   authorization of $207.6 million.                                        
            Weapons industrial facilities                                          

      The budget request included $21.3 million for various activities at  
   government-owned and contractor-operated weapons industrial facilities. 
   The committee recommends an increase of $7.7 million to accelerate the  
   facilities restoration program at the Allegany Ballistics Laboratory.   
            Mark 48 advanced capability torpedo modifications                      

      The budget request included $16.4 million for Mark 48 advanced       
   capability (ADCAP) torpedo modifications. The Mark 48 ADCAP torpedo is  
   the primary anti-ship and anti-submarine weapon for the submarine fleet.
   However, torpedo modifications are required for effective operations in 
   the littorals. Therefore, the committee recommends an increase of $2.0  
   million for Mark 48 ADCAP modifications to field this improved          
   capability in the submarine fleet as soon as possible.                  
                              NAVY AND MARINE CORPS AMMUNITION                    

            Procurement of ammunition, Navy and Marine Corps                       

      The committee is concerned with continued reports of inadequate      
   supplies of ammunition for training and war reserves. The Commandant of 
   the Marine Corps recently identified a requirement for $69.8 million for
   ammunition programs, and the Chief of Naval Operations identified a     
   requirement for $5.0 million for air expendable countermeasures, that   
   were not included in the fiscal year 2001 budget request. Ammunition is 
   an important contributor to military readiness--for training and in     
   anticipation of conflict. The committee recommends the following        
   adjustments to the budget request for Navy and Marine Corps ammunition  
   procurement:                                                            

Item:                                                                   

Millions                                                                

  20 mm                                                                   

 3.0                                                                     

  25 mm                                                                   

 3.5                                                                     

  2.75 Rockets                                                            

 9.6                                                                     

  MJU 52 Countermeasures                                                  

 5.0                                                                     

                                                                          

   Subtotal                                                               

 $21.1                                                                   


            Laser-guided bomb components                                           

      The budget request included $63.2 million for the procurement of     
   general purpose bombs, with $29.2 million for the procurement of        
   laser-guided bomb components. Laser-guided bombs provide the ability to 
   conduct precision attacks while minimizing collateral damage. Recent    
   contingency operations have demonstrated the need for these weapons, and
   the Navy has included laser-guided bombs on its unfunded requirements   
   list to augment critically low inventory levels. Operation Allied Force 
   highlighted a dramatic increase in the percentage of precision guided   
   munitions versus unguided munitions. The committee directs the Navy to  
   create a separate line item for laser-guided bomb components in future  
   budget submissions. The committee recommends an increase of $20.0       
   million for the competitive procurement of additional laser-guided bombs
   components, a total authorization of $83.2 million for general purpose  
   bombs.                                                                  
            Training ordnance                                                      

      The budget request included $50.6 million for practice bombs. The    
   Navy unfunded priorities list includes a requirement for additional     
   laser-guided bombs and associated ordnance to meet critical readiness   
   and training needs. Recent contingency operations have highlighted a    
   dramatic increase in the use of                                         

                    precision weapons. The committee directs the Navy to establish
          a separate line item for laser-guided bomb training ordnance in future  
          budget submissions. The committee recommends an increase of $26.0       
          million for the procurement of additional laser guided bombs and        
          associated ordnance to meet critical training and readiness             
          requirements, a total authorization of $76.6 million for practice bombs.
                              NAVY SHIPBUILDING AND CONVERSION                    

            Shipbuilding overview                                                  

      The Navy and Marine Corps are a forward deployed force carrying out  
   the National Security Strategy of shaping the international environment,
   responding to crises, and preparing for an uncertain future. Seventy    
   percent of the world's population lives within 200 miles of coastline.  
   The normal operating areas of Navy and Marine Corps forces, referred to 
   as the littorals, thus have the potential to include numerous future hot
   spots around the world.                                                 
      Navy and Marine Corps forces are an inherently forward deployed and  
   combat credible expeditionary force engaged daily to influence the      
   world's security environment and sustain our national security. Navy and
   Marine Corps forces do not rely on host country airfields, security, or 
   lines of communication. Their capabilities range from humanitarian      
   assistance and strengthening ties with other nations through            
   international exercises to forcible entry and full scale war.           
      As was demonstrated in the past year, once forward deployed, Navy and
   Marine Corps forces respond immediately without extensive preparation   
   time to a wide range of national tasks.                                 
      The committee has repeatedly received testimony that indicates the   
   burden of inadequate force structure (ships and submarines) falls       
   squarely on the shoulders of the men and women in uniform. The testimony
   indicates that even at the current fleet size of 316 ships, the Navy and
   Marine Corps have been ``. . . stretched too thin.'' Under these        
   circumstances, it is the people who man the ships that are being asked  
   to bear a heavier burden to respond to more contingencies than          
   envisioned when the Quadrennial Defense Review decided that a force of  
   about 300 ships would be adequate.                                      
      In recognition of the long term view that must be taken for          
   shipbuilding, section 1013 of the National Defense Authorization Act for
   Fiscal Year 2000 (Public Law 106 65) required the Secretary of Defense  
   to submit no later than February 1, 2000, a report on the long-range    
   shipbuilding requirements of the Department of Defense. The report is   
   required to include a statement of the ship types and the annual        
   investment required through 2030.                                       
      The Secretary did not submit the report on the date required by law. 
   Although Congress still waits for the report, the committee received    
   testimony from a representative of the Congressional Research Service   
   (CRS) on the various analyses CRS has conducted on supporting Navy force
   levels. The CRS analyses concluded that an annual ship procurement      
   investment of about $10.0 to $12.0 billion and a procurement rate of 8.7
   to 10.2 ships per year are required to maintain a fleet of about 300    
   ships. The CRS estimates did not consider the requirements of, or       
   resources for, strategic sealift ships which have previously been funded
   in the National Defense Sealift Fund.                                   
      Navy witnesses concurred with the CRS conclusions on the annual      
   investment and annual procurement rates required to maintain the fleet. 
   The committee also agrees with the CRS conclusions, but recognizes that 
   a $10.0 to $12.0 billion annual investment alone will not ensure the    
   nation has the ships required to carry out the National Security        
   Strategy.                                                               
      The committee recognizes there are a number of different approaches  
   to funding shipbuilding in the long-term. One approach would be to defer
   near-term investment, allow the average age of the force to increase,   
   and permit a large backlog of ship purchases to accrue. This would match
   the pattern of recent years: we have been building ships at a much lower
   rate than 8.7 ships per year. However, the committee recognizes that,   
   for every year that we invest less than $10.0 to $12.0 billion and buy  
   fewer than 8.7 ships, we will have to invest more than $10.0 to $12.0   
   billion and buy more than 8.7 ships in a future year. Continuing at     
   rates that are too low could result in unattainable ship procurement    
   funding levels and will inevitably increase the burden on our men and   
   women in uniform.                                                       
      The committee also recognizes that, in addition to attaining the     
   required annual investment, the Department of Defense (DoD) should      
   consider more innovative procedures to ensure shipbuilding procurement  
   funds are leveraged to attain the most efficient and productive results.
   For example, the Navy was persuaded that initiating funding early for   
   CVN 77 would result in protecting the required worker skill base at the 
   shipyard and result in savings. These savings were verified by a Rand   
   Corporation analysis. Multiyear commitment of funding for the DDG 51    
   program also resulted in over $1.4 billion in savings compared to a     
   normal annual procurement strategy.                                     
      In addition, research and development for shipbuilding programs      
   provides an opportunity to drastically lower the life-cycle costs of    
   building, maintaining, and operating ships. Ship research and           
   development is an investment in not only the required war fighting      
   characteristics and capabilities, but also the economic feasibility of  
   operating multi-purpose complex ships.                                  
      Therefore, the committee recommends that the DoD take the following  
   actions to alter current budget practices to leverage scarce ship       
   procurement funding when economic advantage or beneficial program       
   stability can be achieved:                                              
       (1) include total ownership costs as an explicit independent        
   variable when determining requirements for all future ship classes;     
       (2) maximize production efficiencies of economic order quantities   
   for block buy and multiyear contract opportunities;                     
       (3) maximize use of advance procurement to retain vendor base       
   efficiencies and critical skill mix learning curve progress; and        
       (4) budget for auxiliary ships and strategic lift ships in the      
   National Defense Sealift Fund.                                          
      The committee believes that the Navy should use specific criteria in 
   evaluating the alternative budgeting approaches in items (2) through (4)
   above. These criteria are analogous to those specified for evaluating   
   multiyear procurement programs in section 2306(b) of title 10, United   
   States Code. These criteria include whether:                            
       (1) the use of such alternative budgeting will result in savings in 
   total contract costs;                                                   
       (2) there is reasonable certainty that the need for the program will
   not change;                                                             
       (3) there is reasonable expectation that the Navy will continue to  
   budget for the program;                                                 
       (4) the ship design is stable, and the technical risks are not      
   excessive; and                                                          
    (5) cost estimates are realistic.                                      

      The committee recommends action elsewhere in this report to increase 
   the new ship procurement funding authorization to achieve potential     
   savings of $1.1 billion in new ship construction and encourages the DoD 
   to make the recommended budget process changes. The committee encourages
   the administration to submit legislative initiatives that would assist  
   in leveraging shipbuilding research and development and procurement     
   funding.                                                                
            LHD 8 advance procurement                                              

      The budget request included LHD 8 advance procurement in fiscal year 
   2004 and full funding in fiscal year 2005 as part of the Future Year    
   Defense Program (FYDP).                                                 
      In the statement of managers accompanying the Strom Thurmond National
   Defense Authorization Act for Fiscal Year 1999 (H. Rept. 105 736),      
   Congress authorized $50.0 million for advance procurement of long lead  
   materials for construction of LHD 8 in lieu of a future service life    
   extension program for LHA 1. In                                         

                    addition, the National Defense Authorization Act for Fiscal   
          Year 2000 (Public Law 106 65) authorized the procurement and advance    
          construction of components and authorized $375.0 million for that       
          purpose as a confirmation that building LHD 8 was preferred to extending
          the life of LHA 1.                                                      
      The Navy and Marine Corps included, as a priority, the $1.2 billion  
   remaining cost for LHD 8 on their fiscal year 2001 unfunded requirements
   priorities list.                                                        
      The committee realizes that actual cost savings and price will depend
   on the final procurement funding profile.                               
      The committee continues to be concerned that the FYDP plan would     
   cause an unnecessary interruption of learning curve efficiencies and the
   loss of long-term vendor pricing economies. However, fiscal year 2001   
   advance procurement of LHD 8 would accomplish the following:            
       (1) save taxpayers between $500 and $630 million dollars by         
   leveraging skilled labor force and vendor base efficiencies resulting   
   from the continuous LHD construction for the past 16 years;             
       (2) provide the Marine Corps required warfighting improvements      
   including landing craft, air cushion (LCAC) carrying capacity, improved 
   ship stability, and enhanced communications capability;                 
       (3) initiate life-cycle cost improvements for large deck amphibious 
   ships including gas turbine main propulsion engines; and                
       (4) take action to address the annual shipbuilding investment       
   required to maintain about 300 ships, mentioned elsewhere in this       
   report, by spreading out the recapitalization of the five ships in the  
   LHA 1 class which will turn 35 years old at a rate of one per year      
   beginning in fiscal year 2011.                                          
      The committee reiterates its direction that the Navy structure any   
   contract for LHD 8 to maximize these potential savings and to report    
   same to the Congress. Therefore, the committee recommends an increase of
   $460.0 million to continue the advance procurement and advance          
   construction of components for the LHD 8 amphibious ship.               
                                   OTHER NAVY PROCUREMENT                         

            AN/WSN 7 inertial navigation system                                    

      The budget request included $7.3 million for procurement of AN/WSN 7 
   ring laser inertial navigation systems. The AN/WSN 7 continuously and   
   automatically determines and indicates a ship's position, attitude      
   (heading, roll, and pitch), and velocity. This system replaces three    
   legacy navigation systems and provides equipment commonality between    
   surface combatants, submarines, and aircraft carriers. The annual       
   operating cost of the AN/WSN 7 is projected to be only 10 percent of the
   cost of operating the legacy navigation systems it replaces. Therefore, 
   accelerated procurement of the AN/WSN 7 could produce a substantial     
   savings in maintenance costs.                                           
      The committee recommends an increase of $7.0 million to the budget   
   request for the procurement and installation of additional AN/WSN 7     
   navigation sets.                                                        
            Surveillance and security for military sealift ships                   

      The budget request included no funding for thermal imaging           
   surveillance and security for military sealift ships. Military sealift  
   ships may operate independently in high threat areas. Thermal imaging   
   capabilities could improve the ability of these ships to navigate and   
   operate in reduced visibility while improving their overall self        
   protection capabilities. The committee recommends an increase of $4.0   
   million for thermal imaging surveillance and security procurement and   
   installation on Military Sealift Command (MSC) ships.                   
            Integrated condition assessment system                                 

      The budget request included $11.3 million for integrated condition   
   assessment system (ICAS) for ships. The ICAS is a system that           
   electronically monitors the operating parameters of machinery and       
   electronic systems, thus reducing man-hours spent taking readings on    
   equipment. The committee recommends an increase of $5.0 million for     
   procurement and installation of ICAS equipment for surface ships.       
            AN/SPS 73(V) surface search radar                                      

      The budget request included no funding for procurement and           
   installation of AN/SPS 73(V) surface search radars which would replace a
   number of aging radars on surface ships with one radar. The AN/SPS 73(V)
   is a commercial off-the-shelf radar which provides surface ships with a 
   reliable, lower maintenance and lower life-cycle cost surface search    
   radar capability. To capture the reliability and life-cycle cost        
   savings, the Navy is replacing aging surface ship radars with the AN/SPS
   73(V). The committee recommends an increase of $8.0 million for the     
   procurement and installation of AN/SPS 73(V) radars.                    
            Side-scanning sonar for forward deployed minesweepers                  

      The budget request included no funding for side-scanning sonar for   
   forward deployed minesweepers. Commercial off-the-shelf high resolution 
   side-scanning sonars are available that would enhance the ability of    
   forward deployed minesweepers to detect and classify sea mines located  
   on the bottom of the ocean floor. These sonars have been used by Navy   
   units with great success in locating aircraft wreckage. The Navy's      
   experience with these sonars provides the basis for developing          
   operational expertise to apply this technology to the challenging task  
   of detecting and classifying bottom sea mines.                          
      The committee recommends an increase of $5.0 million for the         
   procurement and installation of a side-scanning sonar in a forward      
   deployed minesweeper to enhance the ability to detect and classify      
   bottom mines.                                                           
            Joint Engineering Data Management and Information Control System       

      The budget request included no funds for the Joint Engineering Data  
   Management and Information Control System (JEDMICS), the designated     
   Department of Defense standard system for management, control and       
   storage of engineering drawings. This system is designed as an open,    
   client-server architecture and is nearing full deployment for global    
   access to the data in its repositories. However, the JEDMICS data       
   available is not fully accessible to all clients using the joint        
   technical data environment.                                             
      The committee recommends an increase of $4.0 million for procurement,
   integration and accreditation surveys to ensure JEDMICS is fully        
   compliant with the joint technical data environment.                    
            Aviation life support                                                  

      The budget request included $20.4 million for aviation life support  
   equipment. The committee continues to support efforts designed to       
   improve the ability of Marine Corps flight crews to operate their       
   aircraft at night by providing the most capable night vision systems    
   available. The committee recommends an increase of $9.9 million to      
   procure additional AN/AVS 9 night vision goggles which offer significant
   improvements over existing AN/AVS 6 goggles, a total authorization of   
   $30.3 million.                                                          
            Gun fire control radar performance improvements                        

      The budget request included $15.6 million for AN/SPQ 9B gun fire     
   control equipment (GFCE) procurement, installation, and engineering     
   change proposals. The AN/SPQ 9B radar interface is the primary gun fire 
   control radar for surface ships. The AN/SPQ 9B GFCE program provides a  
   low cost product improvement to support both surface and sea skimming   
   target engagements. The committee recommends an increase of $4.0 million
   to develop and                                                          

                    field engineering change proposals to improve the performance 
          of the SPQ 9B radar.                                                    
            Cruiser smart ship                                                     

      The budget request included $47.9 million for programs referred to as
   ``smart ship'' programs. Of this amount $22.5 million is for smart ship 
   equipment procurement and logistics for Ticonderoga-class cruisers.     
      The Navy's goal in introducing smart ship programs was to leverage   
   technology to reduce the workload on sailors at sea. Prior year         
   authorizations of funds for the smart ship program were originally      
   justified by expectations that hardware and software installation would 
   enable subsequent manpower reductions. Unfortunately, for the past five 
   years, program delays and software problems have resulted in little     
   progress toward achieving the Navy's goal.                              
      The Navy is currently testing version 11 of the software and has     
   stated that version 12 is required prior to further test and evaluation.
   The damage control assistant flooding and counter flooding software     
   developed by a fleet sailor almost six years ago on a laptop computer   
   has yet to be introduced as part of the smart ship software for the     
   fleet.                                                                  
      Installation of smart ship equipment has not yet resulted in any     
   personnel savings. The Chief of Naval Operations has instituted a policy
   which requires a waiting period of one year with smart ship equipment   
   aboard before the Navy will consider realizing any end strength savings.
   The justification for the smart ship program appears to be evolving to a
   basis of installing the equipment for a potential reduction of workload 
   on sailors.                                                             
      The committee recommends a decrease of $17.5 million for procurement 
   of smart ship equipment. The committee will assess, during the review of
   the fiscal year 2002 budget request, the progress in testing and        
   development of cruiser smart ship software and the results of the Navy's
   Smart Ship Steering Committee (SSSC). The SSSC is attempting to         
   standardize procurement of hardware, software, and training for surface 
   combatants, amphibious ships, aircraft carriers, and minesweepers.      
            NULKA anti-ship missile decoy system                                   

      The budget request included $33.8 million for procurement and        
   installation of the NULKA anti-ship missile decoy program. NULKA is a   
   proven decoy against anti-ship missiles. The committee recommends an    
   increase of $4.3 million for the procurement of launcher systems and    
   decoys to outfit the fleet with this key self-defense equipment.        
      In addition, the committee recommends an increase of $4.3 million in 
   the Navy operations and maintenance account for critical training on the
   NULKA system.                                                           
            Civil engineering support equipment                                    

      The budget request included $10.5 million for light and medium duty  
   tactical equipment used mostly by the Naval Construction Force (NCF),   
   Maritime Prepositioning Force (MPF), Naval Beach Group (NBG), and other 
   special operating units. The light duty tactical vehicles are used for  
   the movement of personnel and equipment. The medium tactical trucks are 
   essential for rapid deployment of material to support combat            
   construction of airfields, landing zones, road battle damage repair and 
   rapid runway repair.                                                    
      Heavy use of the equipment to support military and humanitarian      
   assistance operations during the past decade have heavily strained the  
   existing inventory of already over-aged civil engineering support       
   equipment (CESE). The committee recommends an increase of $10.0 million 
   for the procurement of civil engineering support equipment for the Naval
   Construction Force.                                                     
                                  MARINE CORPS PROCUREMENT                        

            Night vision                                                           

      The budget request included $14.4 million for Marine Corps night     
   vision equipment. The committee notes an outstanding requirement for the
   improved night/day fire-control observation device (INOD). The committee
   recommends an increase of $2.7 million to procure INOD devices for the  
   Marine Corps, a total authorization of $17.1 million for night vision   
   devices.                                                                
            Radio systems                                                          

      The budget request included $3.1 million for Marine Corps radio      
   system equipment. The committee notes outstanding requirements for      
   additional enhanced position location reporting system (EPLRS) equipment
   necessary to provide network data distribution capabilities and enhance 
   situational awareness. The committee recommends an increase of $6.4     
   million for additional EPLRS systems necessary to meet requirements     
   associated with the acquisition objective, a total authorization of $9.5
   million.                                                                

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                       Repeal of requirement for annual report on B 2 bomber       
           aircraft program (sec. 131)                                             
      Since the B 2 bomber is no longer in production, the committee       
   recommends a provision that would repeal section 112 of the National    
   Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101
   189; 103 Stat. 1373), as amended by section 141 of Public Law 104 106   
   (110 Stat. 213).                                                        
                                  OTHER AIR FORCE PROGRAMS                        

                                     AIR FORCE AIRCRAFT                           

            EC 130J                                                                

      The budget request included no funding for the procurement of EC 130J
   aircraft, a high demand, low density asset. The EC 130 is used to       
   conduct special missions such as psychological operations, civil affairs
   radio and television broadcasts, command and control countermeasures,   
   and limited intelligence gathering. The Air Force is converting the     
   inventory EC 130 aircraft to the EC 130J configuration. Procurement of  
   additional EC 130J aircraft is on the Air National Guard unfunded       
   priorities list. The committee recommends an increase of $90.0 million  
   for the procurement of one EC 130J aircraft.                            
            Joint primary aircraft training system                                 

      The budget request included $113.8 million for the procurement of 27 
   joint primary aircraft training system (JPATS) aircraft. The Air Force  
   has requested additional JPATS aircraft on its unfunded requirements    
   list. The committee recommends an increase of $18.9 million for the     
   procurement of seven JPATS aircraft, a total authorization of $132.7    
   million.                                                                
            Joint surveillance and target attack radar system                      

      The budget request included no funding for advanced procurement of a 
   16th E 8C Joint Surveillance and Target Attack Radar System (JSTARS)    
   aircraft or shutdown of the production line. Funding for either advance 
   procurement or line shutdown was, however, included in the Air Force's  
   unfunded requirements list.                                             
      JSTARS provides target information for pairing direct attack aircraft
   and standoff weapons against selected targets. JSTARS successfully      
   supported Operation Allied Force. General Wesley Clark, Commander in    
   Chief, Europe, in testimony before the Committee on Armed Services of   
   the Senate, stated that if he were able to have more of anything in     
   support of this operation, it would have been another JSTARS.           
      The last Quadrennial Defense Review, however, recommended the Air    
   Force inventory objective of JSTARS be reduced from 19 to 13, with the  
   understanding that the North Atlantic Treaty Organization (NATO) would  
   acquire four to six aircraft. This NATO acquisition did not materialize,
   and the budget request is for the 15th JSTARS aircraft.                 
      The committee, therefore, recommends an increase of $46.0 million, to
   be used, at the discretion of the Secretary of Defense, either for: (1) 
   long lead funding for aircraft number 16, if the Department requests    
   funding for a 16th JSTARS aircraft in the fiscal year 2002 budget       
   request; or (2) production line shutdown and last lot costs.            
            B 52H aircraft modifications                                           

      The budget request included $8.4 million for modifications to the B  
   52H aircraft. The budget request included no funding for ALQ 172        
   self-protection electronic countermeasures. The Air Force has included  
   continued procurement of self-protection electronic countermeasure      
   equipment for the B 52 on its unfunded requirements list. The committee 
   recommends an increase of $12.0 million in aircraft procurement, Air    
   Force, for the ALQ 172 electronic countermeasures improvement program   
   for the B 52H aircraft, a total authorization of $20.4 million.         
            A 10 aircraft integrated flight and fire control computer              

      The budget request included $33.9 million for modifications to the A 
   10 aircraft, but included no funds for procurement of the integrated    
   flight and fire control computer (IFFCC). Although development of this  
   capability is to be complete in fiscal year 2001, production funding    
   would commence in fiscal year 2002 in the Future Years Defense Program. 
   The IFFCC provides the processing power that handles fire control,      
   flight control, digital terrain system, data link management,           
   situational awareness, and cockpit control and display management. The A
   10 IFFCC is included on the Air Force unfunded priorities list. The     
   committee recommends an increase of $11.2 million for the procurement   
   and fielding of IFFCCs for the A 10 aircraft, a total authorization of  
   $45.1 million.                                                          
            F 15 aircraft modifications                                            

      The budget request included $258.2 million for modifications to the F
   15 aircraft. The committee recommends an overall increase of $74.9      
   million, a total authorization of $333.1 million. Both increases        
   recommended by the committee are included on the Air Force unfunded     
   priorities list.                                                        
      The budget request included $37.3 million for upgrading F 15 engines 
   from the F100 PW 100 to the F100 PW 220E configuration. This upgrade    
   would significantly improve the reliability and maintainability of the  
   engine, and has reduced the unscheduled engine removal rate by 35       
   percent. Procurement savings are achievable by accelerating this        
   program. The committee recommends an increase of $48.0 million for      
   additional F 15 engine upgrades.                                        
      The budget request did not include any funding for the procurement of
   BOL chaff and flare systems or countermeasures for the F 15 aircraft.   
   The committee understands that the BOL countermeasure system is being   
   evaluated under a foreign comparative test program, and that the system 
   has been successfully integrated on other tactical aircraft. The        
   committee recommends an increase of $26.9 million for the procurement of
   BOL systems and countermeasures for the F 15 aircraft.                  
            F 16 aircraft modifications                                            

      The budget request included $248.8 million for modifications to the F
   16 aircraft. The committee recommends an overall increase of $119.5     
   million in F 16 modifications, a total authorization of $368.3 million. 
      The committee also recommends a series of increases to address the   
   fact that the budget request included no funding for other F 16 aircraft
   modifications. Each of these items were included on an Air Force or Air 
   National Guard unfunded priority list.                                  
      The digital terrain system includes precise navigation capabilities  
   and a ground collision avoidance system designed to prevent mishaps. The
   committee recommends an increase of $16.5 million for the digital       
   terrain system. The committee understands that this amount of funding   
   was removed from the budget request late in the cycle, so recommended   
   offsets for this increase have been taken from other Air Force programs.
      Precision targeting pods are the number one unfunded requirement for 
   the Air National Guard. The committee recommends an increase of $34.0   
   million for the procurement of precision targeting pods.                
      Compared to other F 16 block aircraft, the thrust of the block 42 is 
   relatively low. For this reason, block 42 F 16 aircraft have not been   
   used in combat. The committee recommends an increase of $69.0 million   
   for the retrofit of Air National Guard block 42 F 16 aircraft with F100 
   PW 229 engines.                                                         
            C 17 simulator                                                         


      The budget request included $97.1 million for modifications to the C 
   17 aircraft. The committee recommends an overall increase of $26.4      
   million for C 17 aircraft modifications, a total authorization of $123.5
   million.                                                                
      The budget request included no funding for the procurement of another
   C 17 cockpit system simulator. Procurement of an additional cockpit     
   system simulator is necessary to meet projected aircrew training        
   requirements, and the Air Force has included the procurement of this    
   simulator on its unfunded requirements list. The committee recommends an
   increase of $14.9 million for the procurement of a C 17 cockpit system  
   simulator.                                                              
      The budget request included no funding for the C 17 aircraft         
   maintenance systems trainer (AMST), for which $3.5 million in long lead 
   funding was provided in fiscal year 2000. The committee recommends an   
   increase of $11.5 million to complete procurement of the C 17 AMST.     
            Defense airborne reconnaissance program aircraft modifications         

      The budget request included $165.5 million for modifications to      
   defense airborne reconnaissance program aircraft. The budget request    
   included no funding for the procurement of Senior Year electro-optic    
   reconnaissance system (SYERS) equipment. The committee recommends an    
   increase of $3.0 million for the procurement of SYERS equipment, a total
   authorization of $168.5 million.                                        
            ALE 50 towed decoys                                                    

      The budget request included $43.0 million for war consumables, with  
   $32.3 million dedicated to the procurement of ALE 50 towed decoys. The  
   ALE 50 is a low cost radio frequency countermeasure that provides       
   increased survivability against semi-active guided missile threats. This
   countermeasure was credited with saving aircraft and lives during       
   Operation Allied Force. Additional procurement of the ALE 50 is included
   on the Air Force unfunded requirements list. The committee recommends an
   increase of $46.2 million for the procurement of additional ALE 50 towed
   decoys, a total authorization of $89.2 million for war consumables.     
            Compass Call                                                           

      The budget request included $398.5 million for other production      
   charges for the Air Force. Compass Call is the premier tactical airborne
   information warfare platform. In fiscal year 1993, funding for the block
   30 Compass Call mission simulator was cut, and there is no training     
   system fielded for the current configuration. Key Compass Call program  
   content was lost in fiscal year 1999 due to Operation Allied Force      
   costs, which were absorbed out of existing budget authority. Compass    
   Call block 35 improved frequency coverage has been reduced. The         
   committee, therefore, recommends increases of $23.7 million for the     
   procurement of a Compass Call mission training system for block 30/35   
   aircraft and $4.1 million to provide a technology upgrade to the        
   acquisition subsystem of Compass Call block 35, a total authorization of
   $426.3 million. Both of the increases recommended by the committee are  
   included on the Air Force unfunded priorities list.                     
            Defense airborne reconnaissance program                                

      The budget request included $98.4 million for the procurement of     
   equipment for the defense airborne reconnaissance program (DARP), of    
   which, $85.1 million was for equipment for the joint signals            
   intelligence avionics family (JSAF). The committee understands this does
   not fully outfit the first U 2 aircraft with a complete JSAF unit. The  
   committee recommends an increase of $8.0 million in Aircraft            
   Procurement, Air Force, for the procurement of additional JSAF equipment
   for the U 2 aircraft.                                                   
                                      AIR FORCE MISSILE                           

            Global Positioning System                                              

      The budget request included $210.3 million in Missile Procurement,   
   Air Force, and $250.2 in Research, Development, Test, and Evaluation,   
   Air Force, for the Global Positioning System (GPS). The committee has   
   recently received an amended budget request for the GPS system that     
   reflects the Air Force's GPS modernization plan. The committee supports 
   this effort. In order to properly align funds according to the amended  
   budget request, the committee recommends a decrease of $30.3 million in 
   Missile Procurement, Air Force, and an increase of $10.7 million in PE  
   35165F.                                                                 
            Titan space boosters                                                   

      The budget request included $469.7 million for procurement of Titan  
   IV space boosters. Based on current projections, it appears that the    
   Titan IV program may not require this full amount to execute its fiscal 
   year 2001 requirements. Therefore, the committee recommends a decrease  
   of $10.0 million in Air Force Missile Procurement for Titan space       
   boosters.                                                               
            Medium launch vehicle                                                  


      The budget request included $55.9 million for Medium Launch Vehicle  
   (MLV) procurement. As a result of the Department of Defense's Global    
   Positioning System (GPS) modernization plan, the Air Force now plans to 
   delay a number of GPS block IIR launches. This delay reduces the        
   procurement funding requirement for MLV during fiscal year 2001.        
   Therefore, the committee recommends a decrease of $10.0 million in Air  
   Force Missile Procurement funds for MLV.                                
                                    AIR FORCE AMMUNITION                          

            Procurement of ammunition, Air Force                                   

      The budget request included $11.5 million for the procurement of 2.75
   inch rockets for the Air Force. The committee is concerned with         
   continued reports of inadequate supplies of ammunition for training and 
   war reserves. The Chief of Staff of the Air Force recently identified a 
   requirement for $211.0 million for high priority munition programs,     
   including 2.75 inch rockets, that were not included in the fiscal year  
   2001 budget request. Ammunition is an important contributor to military 
   readiness--for training and in anticipation of conflict. Therefore, the 
   committee recommends an additional $28.0 million for 2.75 inch rockets. 
                                 OTHER AIR FORCE PROCUREMENT                      

            Combat training ranges                                                 

      The budget request includes $26.0 million for procurement of         
   equipment for combat training ranges, of which $18.4 million is for     
   advanced threat upgrades. Realistic simulation of threats in training   
   increases the survivability of our aircraft and aircrews in actual      
   combat situations. The committee understands there are competing systems
   to fill the Air Force requirement for advanced threat emitters. The     
   committee recommends an increase of $20.0 million to procure additional 
   advanced threat emitters for its combat training ranges, a total        
   authorization of $46.0 million.                                         
            Night vision goggles                                                   

      The budget request included $2.8 million for the procurement of night
   vision goggles (NVGs) and associated test equipment for aircrew,        
   maintenance, and security personnel. There is a shortage of this        
   equipment, and the Air Force has included procurement of additional NVGs
   on its unfunded priority list. The committee recommends an increase of  
   $8.0 million for the procurement of additional NVGs and associated test 
   equipment, a total authorization of $10.8 million.                      

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            Advanced SEAL delivery system design enhancements                      

      The budget request included $33.5 million for the Advanced SEAL      
   Delivery System (ASDS) Program. The committee recommends an increase of 
   $3.3 million in the Defense Wide Procurement, Special Operations        
   Command, ASDS account to fund design enhancements required to implement 
   necessary changes and enhancements on subsequent ASDS production        
   vehicles.                                                               
      ASDS design enhancement costs are estimated to be $10.0 million.     
   Special Operations Command has funded $6.8 million of ASDS design costs 
   with savings in its ongoing ASDS developmental testing program. Full    
   funding of these design enhancements could result in a $10.0 million    
   reduction in procurement unit cost for the remaining five ASDS vehicles.
      The statement of managers accompanying the National Defense          
   Authorization Act for Fiscal Year 2000 (H. Rept. 106 301) required the  
   Commander-in-Chief, U.S. Special Operations Command (CINCSOCOM) to      
   report on various aspects of the ASDS program, including whether the    
   program should be elevated to a major acquisition program. The CINCSOCOM
   provided a report on technical aspects of the ASDS program, but failed  
   to address whether the program had been reviewed by the Department of   
   Defense (DOD), and why the program was not elevated to the category of a
   major defense acquisition. The committee expects the Under Secretary of 
   Defense for Acquisition, Technology and Logistics to provide a report   
   explaining why he decided not to elevate this program to a higher level 
   of review, as was required.                                             
            Special operations forces small arms and support equipment             

      The budget request included $11.8 million for Special Operations     
   Forces (SOF) Small Arms and Support Equipment, but did not include      
   funding to continue procurement of SOF Body Armor Load Carriage System, 
   the Modular Integrated Communications Helmet, or the SOF Peculiar       
   Modifications to the M 4 Carbine. The Commander-in-Chief, U.S. Special  
   Operations Command (CINCSOCOM), identified procurement of this improved 
   body armor, improved helmets, and special modifications to individual   
   weapons, as his highest set of priority unfunded requirements for fiscal
   year 2001. The committee has followed developments in this area closely 
   and is encouraged that equipment that will enhance the survivability,   
   flexibility, and precision of our special operations forces is now      
   available for general procurement.                                      
      The committee understands this equipment has been rigorously tested  
   and fielded to some SOF elements. The committee applauds the efforts of 
   CINCSOCOM to field this important equipment to all SOF operators. The   
   committee recommends an increase of $21.7 million for SOF Small Arms and
   Support Equipment to be distributed as follows: $4.9 million for SOF    
   Body Armor Load Carriage System; $4.7 million for SOF Modular Integrated
   Communications Helmet; and $12.1 million for SOF Peculiar Modifications 
   to the M 4 Carbine. This represents approximately one-half of the       
   funding requested by CINCSOCOM to fully equip all SOF operators. The    
   committee further directs that CINCSOCOM fully evaluate the suitability 
   of this equipment for all SOF operators across the wide spectrum of     
   activities conducted by SOCOM and report back to the defense committees 
   of Congress his assessment of the suitability of these enhancements for 
   all SOF operational elements and any recommendations for improvements to
   meet the unique needs of the various, diverse operational elements of   
   SOCOM. Upon receipt of such an assessment, the committee would consider 
   additional authorizations to complete procurement of this equipment for 
   all SOF operators.                                                      
            Nuclear, Biological and Chemical Defense Enhancement Kits              

      The budget request included no funding for Nuclear, Biological, and  
   Chemical (NBC) Defense Enhancement Kits. The Marine Corps continues to  
   require the development of NBC force protection training and equipment  
   support packages for deploying Marine Expeditionary Units. The NBC      
   Defense Enhancement Kits will provide equipment to on-scene leaders to  
   allow for isolation of NBC contaminated areas, agent detection and      
   identification, and decontamination. The Marine Corps has a requirement 
   for thirteen NBC kits; nine kits have been procured. The committee      
   recommends an increase of $2.5 million in the Chemical and Biological   
   Defense Program for four NBC Defense Enhancement Kits to complete the   
   planned acquisition.                                                    
            Communications assistance for law enforcement act                      

      The budget request included $120.0 million for the Telecommunications
   Carrier Compliance Fund, which was created as a result of the           
   Communications assistance for law enforcement act of 1994. The committee
   is concerned that this may represent an inappropriate first step by the 
   Department of Defense towards involvement in placing wiretaps on        
   communications system of American citizens. Court-authorized wiretaps   
   are, and should remain, the responsibility of law enforcement agencies. 
   Therefore, the committee recommends a reduction of $120.0 million to the
   budget request for this activity.                                       
                                  SUBTITLE E--OTHER MATTERS                       

                       Pueblo Chemical Depot chemical agent destruction            
           technologies (sec. 141)                                                 
      The committee recommends a provision that would provide for the      
   destruction of the stockpile of lethal chemical agents at the Pueblo    
   Chemical Depot either by incineration or any technology demonstrated by 
   the Assembled Chemical Weapons Assessment on or before May 1, 2000.     
      Residents and leaders of communities surrounding the Pueblo Chemical 
   Depot continue to voice concerns about delays in the destruction of     
   chemical agents at the Pueblo depot and the attendant risk to community 
   safety. The National Academy of Sciences (NAS) has reported on several  
   occasions about the risk associated with the prolonged storage of       
   chemical agents and munitions. According to the NAS, this risk increases
   significantly with time.                                                
      Approximately eight percent of the total U.S. chemical weapons       
   inventory is stored at the Pueblo Chemical Depot, Colorado. Community   
   leaders have expressed support for the baseline incineration method and 
   the technologies developed through the Assembled Chemical Weapons       
   Assessment program. This provision is intended to expedite destruction  
   activities utilizing one of these technologies at the Pueblo Chemical   
   Depot in the interest of community safety.                              
                                   OTHER ITEMS OF INTEREST                        

            Acquisition programs at the National Security Agency                   

      There are substantial challenges facing the National Security Agency 
   (NSA) as it seeks to modernize its operations and infrastructure. The   
   United States has relied on the NSA for vital information in the past,  
   and will need a significant contribution from NSA as we face the new    
   demands of the future.                                                  
      The committee believes that the Director of the NSA is making        
   significant progress in making fundamental reform within the agency. The
   committee encourages the Director to continue this important process.   
      Although the Director has indicated the need to improve the          
   acquisition process, the committee has become concerned that the current
   acquisition management procedures may not provide sufficient structure, 
   accountability, or visibility for these important programs.             
      The committee directs that NSA and the Department of Defense manage  
   the current NSA modernization effort as though it were a major defense  
   acquisition program, as defined in section 2430 of title 10, United     
   States Code. The committee does not intend that these programs be merged
   into a single contracting vehicle, rather these programs should be      
   elevated to a higher level of review to ensure that the overall         
   modernization effort receives appropriate review and management         
   attention within the Office of                                          

                    the Secretary of Defense. Further discussion of this issue is 
          included in the classified annex to this report.                        
            Army aviation                                                          

      The committee has been very pleased with Army efforts over the last  
   year to revise outdated and incomplete aviation modernization plans. The
   committee applauds the outstanding efforts of active Army, Army National
   Guard, and Army Reserve leaders to establish a plan that will ultimately
   result in a seamless force of modernized aircraft. The most significant 
   action taken will be that of retiring legacy UH 1 Huey and AH 1 Cobra   
   aircraft by fiscal year 2004 and replacing these aircraft with UH 60    
   Blackhawks. Most of these aircraft, largely found in the reserve        
   components, have reached the end of their useful life and must be       
   retired as soon as practicable. The revised modernization plan will     
   result in an aviation force structure that is common across both active 
   and reserve components, will reduce the number of rotary wing platforms 
   from seven to four, and will facilitate crew rotation requirements for  
   the broad range of missions that will challenge the Army over the next  
   decade.                                                                 
      The committee still has serious questions about the ability of the   
   Army to fund some of the critical requirements in the revised plan. In  
   fact, despite congressional direction that the Secretary of the Army to 
   fully fund the revised plan, the Army plan remains underfunded by at    
   least $400.0 million each year.                                         
            C 5 aircraft upgrades                                                  

      In testimony before the Subcommittee on Readiness and Management     
   Support in March, 2000, the Secretary of the Air Force stated that the  
   decision regarding the priority for upgrade of the C 5As or the newer C 
   5Bs was pending the results of the outsized and oversized cargo portion 
   of the larger Joint Chiefs of Staff mobility requirements study 05 (MRS 
   05). The Air Force budget documentation, however, clearly indicates a   
   schedule for upgrade of the C 5Bs before C 5As. The budget documentation
   also includes a plan to continue kit development options for two        
   aircraft. The committee is concerned that the Air Force will upgrade the
   newer C 5Bs to optimize strategic airlift operational readiness rates in
   the near-term, with severe effects on the overall airlift force         
   readiness in the not-too-distant future. This is one of several key     
   decisions being delayed pending the results of MRS 05. Section 1034 of  
   the National Defense Authorization Act for Fiscal Year 2000 required the
   Secretary of Defense to submit a report based on MRS 05 to the          
   congressional defense committees by February 15, 2000. The Secretary of 
   Defense has asked for an extension of this requirement until September  
   30, 2000. The committee directs the Secretary of the Air Force to submit
   a report by February 15, 2001, which contains the analysis to support   
   the Air Force recommendation on sequence of C 5 aircraft upgrades based 
   on the lift requirements outlined in MRS 05. The kit development efforts
   for the two aircraft should be for one C 5A and one C 5B. The analysis  
   should project lift capabilities for ten years based on most likely     
   operational readiness rates under the scenario of upgrading the C 5As   
   before the C 5Bs and under the scenario of upgrading the C 5Bs before   
   the C 5As.                                                              
            Electronic digital compass system                                      

      The committee continues to support the Army digitization effort,     
   which will establish a tactical internet for enhanced situational       
   awareness. The output from the Global Positioning System (GPS) receiver 
   on Army combat and tactical vehicles is key to the knowledge of friendly
   positions. GPS is generally an effective device, but has its            
   limitations, such as susceptibility to blockages from terrain and       
   foliage, enemy electronic countermeasures, including jamming,           
   constellation misalignments, and multi-path errors. The committee is    
   concerned that there is currently no backup to GPS, other than the      
   enhanced position location reporting system, to ensure that critical    
   situational awareness inputs to the tactical internet are not           
   interrupted. This backup could be improved at modest cost by an         
   electronic digital compass system, which can also provide steer-to      
   navigation capabilities. The committee directs the Secretary of the Army
   to provide a report assessing the utility and costs involved in         
   integrating and procuring electronic digital compass systems for combat 
   and tactical vehicles of the first digitized division and the digitized 
   corps.                                                                  
            Single channel ground and airborne radio system                        

      The committee is aware of outstanding requirements for additional    
   single channel ground and airborne radio systems (SINCGARS) to provide  
   necessary voice and data communications for a small number of Army      
   National Guard units that are still operating with earlier generation   
   equipment. The committee recognizes plans within the Department of      
   Defense to begin an acquisition program that will procure the next      
   generation joint tactical radio system. Unfortunately, these radios will
   not be available in the near-term and there are still units in the Army 
   that must be modernized. The committee encourages the Army to review the
   plans and programs associated with communications fielding requirements 
   and identify alternatives that will meet outstanding requirements as    
   soon as practicable.                                                    
            Soldier's portable on-system repair tool                               

      For the last several years, the committee has monitored the fielding 
   of the soldier's portable on-system repair tool (SPORT) and is aware    
   that the current contract will expire in fiscal year 2001. SPORT is the 
   on-system tester designed to augment the built-in test equipment of all 
   major Army weapon systems, including the M1 Abrams, the M2 Bradley, the 
   UH 60 Blackhawk, the Paladin, and the multiple launch rocket system. In 
   addition, SPORT has served as a significant maintenance diagnostic tool 
   for many other Army systems. The committee is concerned that any        
   interruption in the fielding of SPORT could have a significant impact on
   overall readiness. The committee directs the Army to review outstanding 
   requirements for SPORT equipment, identify an acquisition strategy      
   designed to meet those requirements, and provide the Congress with a    
   report on that strategy.                                                

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

            Explanation of tables                                                  

      The tables in this title display items requested by the              
   administration for fiscal year 2001 for which the committee either      
   increased or decreased the requested amounts. As in the past, the       
   administration may not exceed the amounts approved by the committee (as 
   set forth in the tables or, if unchanged from the administration        
   request, as set forth in the Department of Defense's budget             
   justification documents) without a reprogramming action in accordance   
   with established procedures. Unless noted explicitly in the report, all 
   changes are made without prejudice.                                     

[Graphic Image Not Available]
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

            Fiscal year 2002 joint field experiment (sec. 211)                     

      The committee has worked closely with the Secretary of Defense and   
   the Chairman, Joint Chiefs of Staff (CJCS) to develop a credible,       
   comprehensive joint experimentation program. The creation of the U.S.   
   Joint Forces Command (USJFCOM) on October 1, 1999, with an              
   organizational element dedicated to joint experimentation,              
   institutionalized this process. The committee has noted, with great     
   interest, the strides made by USJFCOM in implementing this program.     
      The committee is encouraged that a joint experimentation program has 
   been established, but was disappointed to learn that the first fully    
   planned, joint field experiment is not scheduled until fiscal year 2004.
   While the need to carefully build this program is appreciated, this has 
   to be balanced against the need for urgency. Many of the transformation 
   concepts being explored by the respective services will have evolved    
   considerably by 2004, without the benefit of experimentation and        
   evaluation within a joint war fighting context.                         
      The committee is concerned that familiar problems continue to plague 
   joint operations. Many of the lessons learned in the recent Kosovo      
   operation were noted in previous military operations. Combatant         
   commanders continue to appear before the committee with recurring       
   concerns, including: incompatible command and control; interoperability 
   problems; no combat identification standard; insufficient strategic     
   lift; insufficient intelligence assets (intelligence, surveillance and  
   reconnaissance); and inadequate theater-level force protection          
   capabilities. While efforts appear to be underway to correct these      
   deficiencies, questions are continuously raised regarding the priority  
   and urgency assigned to these requirements, and the absence of a        
   detailed, defense-wide strategy to guide transformation of our forces.  
      Therefore, the committee directs that the Secretary of Defense plan  
   in fiscal year 2001 and conduct in fiscal year 2002, a joint field      
   experiment focused on exploring the most critical war fighting          
   challenges at the operational level of war which will confront U.S.     
   joint military forces. This experiment should incorporate elements of   
   all military services and special operations forces. In addition, the   
   Secretary of Defense is directed to ensure that each military service   
   and U.S. Special Operations Command participate with elements           
   representative of their future force concepts, e.g., Air Force          
   Expeditionary Aerospace Force, Army medium-weight brigades, and Navy    
   Forward                                                                 

                    from the Sea vision. The committee sees merit in each of these
          individual service initiatives, and believes that combining these       
          concepts in a joint context has potential for improving our military    
          capabilities, individually and collectively. The committee directs the  
          services to adjust their fiscal year 2001 planning activities and fiscal
          year 2002 experimentation activities to accommodate participation in    
          this experiment and evaluation of capabilities. The committee recommends
          an increase of $6.0 million in PE 63727N to accomplish the necessary    
          planning and preparation for this joint experiment in fiscal year 2001. 
          The committee expects the Department of Defense (DOD), the military     
          departments and USJFCOM to include adequate funding in the fiscal year  
          2002 budget request to properly conduct this experiment.                
      The Report of the Defense Science Board Task Force on DOD War        
   Fighting Transformation, published in August 1999, observed that there  
   is no comprehensive DOD-wide strategy and road map for a coordinated    
   transformation of our armed forces and that there are no apparent       
   standards to measure progress. The committee recommends that the        
   Secretary use the opportunity presented by this joint field exercise to 
   accomplish the following: collect the data that will enable a more      
   specific description of the desired attributes of the objective joint   
   forces for Joint Vision 2010; establish the standards to measure        
   progress; and establish achievable, affordable milestones.              
            Nuclear aircraft carrier design and production modeling (sec. 212)     

      The budget request included $38.3 million in PE 64567N for aircraft  
   carrier contract design. The committee recommends a provision that would
   authorize the Navy to convert nuclear aircraft carrier design to a      
   three-dimensional, computer based system. The budget request did not    
   include funds specifically designated for this effort. However, minimal 
   conversion of paper designs has occurred from funds designated for      
   aircraft carrier research and development and shipbuilding and          
   conversion. The Navy conversion effort thus far has proven to be        
   cost-effective in saving taxpayer dollars.                              
      The Navy intends to develop a three-dimensional product model for    
   portions of CVNX 1. The committee also understands that the Navy intends
   to build certain sections of CVN 77 that will be major new designs      
   derived from the CVN 76 baseline. The Navy recently made the decision   
   that CVNX hulls will be based on the Nimitz-class hull design. Because  
   of this decision, it may now be possible to achieve cost savings in     
   designing, constructing, and modifying CVNX and sections of CVN 77      
   through use of a computer-aided design and product model. Such a product
   model might also be beneficial in supporting the Nimitz class ships in  
   the fleet.                                                              
      Major new construction shipbuilding programs, including the Flight   
   IIA Arleigh Burke-class destroyer, the Virginia-class submarine, and the
   San Antonio-class amphibious ship, using the three-dimensional,         
   computer-based product models have resulted in over $184.0 million      
   savings. The Navy predicts that additional savings will continue to     
   accrue throughout the life cycle of the ships when they are repaired and
   modified. These product models were developed and funded through the    
   ship class' research and development and construction funds.            
      The committee recommends an increase of $10.0 million in PE 64567N to
   develop an electronic product model of the CVNX 1 and applicable        
   sections of CVN 77 nuclear aircraft carrier design. The committee also  
   directs the Navy to provide an analysis of the potential costs and      
   benefits of extending this product model effort for use in supporting   
   the Nimitz-class ships in the fleet.                                    
            DD 21 class destroyer program (sec. 213)                               

      The budget request included $549.7 million for research and          
   development for DD 21, the Navy's new destroyer program. The committee  
   recommends authorization of the budget request for fiscal year 2001 and 
   fully supports the DD 21 as the future destroyer required to replace    
   Spruance-class destroyers and Oliver Hazard Perry-class frigates. The   
   committee concurs that the administration's research and development    
   budget request is required to attain a fiscal year 2005 start of        
   construction and that additional resources would most likely be required
   for a fiscal year 2004 construction start.                              
      While the committee fully supports DD 21, the committee has not been 
   provided adequate explanation of the following issues:                  
       (1) the advisability of delaying the initial operational capability 
   for three years;                                                        
       (2) maintaining key capabilities required for completion of the     
   mission of DD 21;                                                       
       (3) the need for a one year delay in the start of construction of DD
   21;                                                                     
       (4) the requirement for extending the construction performance      
   period by two years; and                                                
       (5) the inclusion of all life-cycle maintenance in a non-competitive
   life-of-the-ship contract award.                                        
                          DELAYING THE INITIAL OPERATING CAPABILITY               

      It would appear that the Navy has given a lower priority to the      
   mission of DD 21, providing ordnance on target to influence the events  
   ashore (land attack), than that of building a technologically superior  
   ship in the first hull. The one year                                    

                    delay in the DD 21 program without analysis of technology     
          insertion approaches, successful in previous ship procurement programs  
          and presently being used in the CVN(X) and the Virginia-class attack    
          submarine programs, requires additional explanation.                    
      While Marine Corps witnesses testified that the two 155 millimeter   
   guns on the DD 21 would be the first at-sea system to fully meet the    
   Marine Corps requirements for fire support since decommissioning of the 
   battleships, Navy witnesses did not provide information regarding the   
   risks to the Marines caused by the one year delay in commencing         
   construction and two year delay in delivery of the first DD 21.         
                                MAINTAINING KEY CAPABILITIES                      

      The Marine Corps has stated a requirement that all naval surface fire
   support weapon systems be easily sustainable via underway replenishment.
   The Navy apparently intends to provide the surface fire support with    
   options that includes both gun-fired 155 millimeter ammunition and land 
   attack missiles. The committee understands that the Navy is working with
   the contractor teams to specify underway replenishment requirements and 
   fully supports the continued refinement of capabilities. The committee  
   encourages the Navy to fully involve the Marine Corps with the review of
   requirements which affect Marine Corps concepts of operations including 
   whether the land attack missile at-sea resupply requirement is valid for
   the DD 21.                                                              
                                       ONE YEAR DELAY                             

      The Navy has consistently emphasized the need for a destroyer which  
   has lower procurement and operating costs than the present fleet of     
   destroyers and frigates. In attempting to bring such a ship to reality, 
   the Navy determined that manning the ship was the main cost driver in   
   operating the ship. To reduce manning requirements, the Navy challenged 
   two industry teams to develop a new destroyer design which would reduce 
   total ownership cost. The Navy directed the two teams to include in     
   their design proposal justification of the requirement for each member  
   of the crew and consideration of the life-of-the-ship cost of           
   maintaining each piece of equipment when determining what equipment     
   would be included in their design.                                      
      Without the advantage of analysis, the Navy set a goal of a 95 person
   crew and a threshold of a 150 person crew. Consequently, the focus of   
   design and scheduling efforts for the land attack destroyer, thus far,  
   appear to have been on manning and total operating costs. Again,        
   apparently without a thorough analysis, the Navy determined that the    
   design teams could not produce a design which met the 95 person crew and
   life cycle costs criteria in time to commence construction in fiscal    
   year 2004, the time frame both teams had been working toward. This      
   determination resulted in the Navy submitting a Future Years Defense    
   Program for DD 21 which would delay commencing construction of the first
   DD 21 for one year (from fiscal year 2004 to fiscal year 2005).         
                        EXTENDING THE CONSTRUCTION PERFORMANCE PERIOD             

      The Navy determined that the original five year performance period   
   (fiscal year 2004 through fiscal 2008) for building the first DD 21     
   would result in unacceptable risk for successful completion of the      
   program. Therefore, the Navy budget supports a two year delay in the    
   delivery of DD 21 (from fiscal year 2008 to fiscal year 2010).          
                    NON-COMPETITIVE AWARD OF LIFE-OF-THE-SHIP MAINTENANCE         

      The Navy intends to build 32 DD 21 land attack destroyers to replace 
   the aging Spruance-class (DD 963) and Oliver Hazard Perry-class (FFG 7) 
   destroyers. The Navy has discussed the possibility of awarding the      
   winner of the phase II design competition not only the contract to build
   the first DD 21, but also a contract to provide life-cycle support for  
   all DD 21 ships. The estimated value of a full support contract that    
   includes all ship maintenance for the life of all DD 21 ships would be  
   greater than the contract value for building all 32 ships. If such a    
   maintenance contract were awarded, the winner of the full service       
   support contract could be in a position to determine the ship repair    
   contractors in fleet concentration areas that would be permitted to     
   repair DD 21 ships. The committee believes that this could be a         
   troubling divestiture to a contractor of what is inherently a government
   function. In addition, the committee is concerned that awarding a full  
   service support contract for maintenance of DD 21 may reduce the        
   flexibility of the operational fleet commanders to maintain all the     
   fleet ships based on a prioritization of overall fleet maintenance      
   requirements.                                                           
   Therefore, the committee recommends a provision which would:            

       (1) authorize the Secretary of the Navy to pursue a technology      
   insertion approach to DD 21 that would commence construction of the     
   first DD 21 in fiscal year 2004 followed by a fiscal year 2009 delivery;
       (2) express the sense of Congress that there are compelling reasons 
   to commence DD 21 in fiscal year 2004 followed by sequential            
   construction of DD 21 destroyers until a total of 32 are built, and that
   the Secretary should consider the following when making his decisions   
   regarding DD 21 procurement:                                            
       (a) the Marine Corps requires fire support which the Navy will be   
   unable to provide until the DD 21 155 millimeter guns are introduced in 
   the fleet;                                                              
       (b) a technology insertion approach has been successful for other   
   ship construction programs and is being used in the CVN(X) aircraft     
   carrier and Virginia-class submarine programs;                          
       (c) a stable configuration for the first 10 ships of the class could
   help ensure the greatest capabilities are provided at the lowest cost;  
   and                                                                     
       (d) action to acquire DD 21 destroyers should be taken as soon as   
   possible to realize fully the cost savings of construction and operation
   of DD 21 class destroyers when compared to construction and operation of
   other classes of destroyers;                                            
       (3) direct the Secretary to submit a report not later than April 18,
   2001, on a plan, including the resources required, for pursuing a       
   technology insertion approach to DD 21; and                             
       (4) direct the Secretary of Defense to submit a report not later    
   than April 18, 2001, that discusses the following:                      
       (a) the technical feasibility of commencing DD 21 construction in   
   fiscal year 2004 with a delivery date in fiscal year 2009. For this     
   section of the report, the committee suggests input by an independent   
   entity, such as the Defense Science Board;                              
       (b) an analysis of various contracting strategies for acquiring the 
   first 10 ships of the DD 21 class;                                      
       (c) the effects on the destroyer industrial base and on the costs of
   other shipbuilding programs of delaying constructing the first DD 21    
   until fiscal year 2005, and of delaying the construction of the second  
   DD 21 destroyer until 2007; and                                         
       (d) the effects on fleet maintenance strategies and on commercial   
   maintenance facilities in fleet concentration areas of awarding a       
   shipbuilding contractor team a maintenance contract which includes all  
   maintenance actions above ships force and below depot maintenance       
   levels.                                                                 
      The committee fully supports the DD 21 program and recognizes the    
   difficulty the Navy faces in instituting an acquisition strategy that   
   emphasizes private sector flexibility in meeting general Navy           
   requirements for a complicated ship.                                    
      The committee encourages the Navy and the DD 21 program office to    
   make maximum use of the expertise and facilities resident in Navy field 
   activities for analysis, test, and evaluation of private sector         
   proposals and designs.                                                  
            F 22 aircraft program (sec. 214)                                       


      The committee recommends a provision that would increase the F 22    
   program engineering and manufacturing development (EMD) cost cap by one 
   percent, funds for which could only be obligated for testing            
   requirements approved by the Defense Acquisition Executive and the      
   Director of Operational Test and Evaluation. This provision will add a  
   cushion to the development phase, as it nears completion, to ensure     
   adequate testing has been accomplished. The Defense Acquisition         
   Executive and the Director, Operational Test and Evaluation, would share
   the responsibility for ensuring that the expenditure of any funds above 
   the EMD cost cap would be for testing purposes only.                    
      The performance of the F 22, in testing to date, has been impressive.
   When introduced as the Air Force's air dominance fighter, it will be far
   and away the best fighter aircraft in the world. A comprehensive test   
   program now is required to prevent costly retrofits later.              
      The budget request included $2.2 billion to commence low rate initial
   production of 10 F 22 Raptor aircraft, $396.2 million for advance       
   procurement items for 16 more aircraft in fiscal year 2002, and $1.4    
   billion in PE 64239F for continuing F 22 EMD. The Director of           
   Operational Test and Evaluation has voiced concern that the             
   congressionally mandated cost cap for the EMD Phase may drive the Air   
   Force to reduce too much content from the F 22 test program. The        
   committee echoes this concern.                                          
      The EMD and production cost caps were established by the National    
   Defense Authorization Act for Fiscal Year 1998. This action was taken   
   after the Air Force canceled the manufacture of four pre-production     
   verification aircraft and slowed aircraft production, transferring $2.2 
   billion from procurement to cover an EMD overrun. The purpose of the    
   cost caps was to force the program to exercise a greater degree of      
   fiscal discipline. In testimony before the AirLand Subcommittee, the Air
   Force has given the caps credit for exacting this discipline on both the
   government and the contractor teams. In its latest annual report on the 
   F 22 program, the General Accounting Office concluded that: ``the F 22  
   development program could still be managed within its cost limitation,''
   but ``[s]hould further significant cost increases materialize, the      
   development program may need to be scaled back, or other ways may need  
   to be found to reduce the costs.''                                      
      In the past year, the F 22 program has implemented two structural    
   fixes: the forward aft tail boom and a structural member in the         
   flaperon. These occurrences are normal in any development program, but  
   because flight testing constitutes the majority of the remaining EMD    
   efforts, funding for fixing these occurrences is more difficult to find 
   without reducing testing effort. The committee is concerned that if the 
   program were to be scaled back due to cost increases in other areas, it 
   would be testing that would be cut. The Air Force has already announced 
   that testing efficiencies have enabled it to reduce the actual flight   
   test hours from 4,337 hours to 3,757 hours. It is not the committee's   
   intent to prevent the service from finding further testing efficiencies,
   but rather to ensure the test program remains adequate.                 
            Joint strike fighter (sec. 215)                                        

      The budget request for the Joint Strike Fighter (JSF) program        
   included $261.1 million to complete the concept demonstration phase,    
   with $129.5 million in PE 63800F and $131.6 million in PE 63800N. The   
   budget request also included $595.5 million to initiate the engineering 
   and manufacturing development (EMD) phase, with $299.5 million in PE    
   64800F and $296.0 million in PE 64800N.                                 
      The committee fully appreciates the critical need to modernize our   
   aging fleet of legacy aircraft with aircraft possessing the capabilities
   promised by the JSF program. The purpose of the JSF program is to       
   develop and field an affordable, highly common family of next generation
   strike fighter aircraft for the U.S. Navy, U.S. Marine Corps, the U.S.  
   Air Force, and allies. The Navy variant (called CV) will be aircraft    
   carrier capable, the Marine Corps variant will be capable of short      
   takeoff and vertical landing (STOVL), and the Air Force variant will be 
   of a conventional takeoff and landing (CTOL) design. Commonality within 
   this family of aircraft is crucial to keeping the overall tactical      
   aviation modernization plan affordable.                                 
      Two contractor teams are competing to win a competition to enter into
   the next phase of the program, the EMD phase. In addition to conducting 
   design and risk mitigation activities, each contractor team is building 
   two concept demonstration aircraft. Although these are not JSF          
   prototypes, they are required to demonstrate key enabling performance   
   criteria, such as slow speed handling characteristics for aircraft      
   carrier approaches, and short takeoff and vertical landing for the      
   Marine Corps variant.                                                   
      Unfortunately, the schedule for flying the concept demonstrator      
   aircraft has slipped for both of the contractor teams, primarily due to 
   propulsion system problems. The committee understands that, if the      
   program adheres to the current schedule, with no further delays, the    
   STOVL variants will not fly until after the contractor teams deliver    
   their proposals for EMD to the government. While the contractors may    
   still be able to present additional test results to the government on   
   these flights and on the STOVL design, the competitive environment will 
   inevitably restrict the free flow of information after proposal         
   delivery. This leaves uncertainty on the technical readiness of the     
   program to enter EMD along the budgeted schedule.                       
      The committee has also been apprized of a General Accounting Office  
   (GAO) report on the JSF program that raises concerns about the level of 
   maturity of the design at the point when the Department intends to make 
   a decision to proceed into EMD. The GAO report specifically mentioned   
   several enabling technologies whose technical risk will not have been   
   reduced to an acceptable level before the planned transition to EMD.    
      In addition to the testing maturity, the committee has additional    
   concerns about the nature of the acquisition strategy and how potential 
   changes in that acquisition strategy might affect the program. Many have
   questioned the advisability of continuing the current                   
   ``winner-take-all'' strategy for selecting the winning team for EMD on  
   one of the largest defense programs in history. Losing outright could   
   force one of the teams to leave the fighter development and production  
   business, which would in turn leave the government in the position of   
   depending on a single team for all future tactical aviation             
   modernization. Recognizing the import of this situation, the Under      
   Secretary of Defense for Acquisition, Technology, and Logistics has     
   commissioned a review of the currently approved JSF acquisition         
   strategy. The Department of Defense has not completed this review, but  
   expects to make a decision on the appropriate acquisition strategy      
   within the next two months. The time spent making this decision could   
   delay releasing the call for improvement (analogous to a request for    
   proposal), the response to which will be the basis for making the final 
   decision before proceeding to EMD.                                      
      The committee continues to be a strong advocate for the JSF program. 
   The committee believes that the JSF program, with certain modest        
   exceptions, has demonstrated how a joint service requirement development
   process should work and how a joint service program should be           
   implemented. However, with so much at stake in this centerpiece of      
   tactical aviation modernization, the committee believes that it would be
   terribly shortsighted for the Department to pursue a program that is    
   driven by the calendar, and not by events.                              
      The committee does not believe that it would be prudent to proceed   
   into EMD without having conducted adequate testing, and reduced the data
   from that testing, for the competing demonstrator aircraft. This is     
   particularly the case for the version possessing the highest technical  
   risk, the STOVL version, which is also on the slowest track to testing. 
      Therefore, the committee recommends a provision that would require   
   the Department to submit a report, before December 15, 2000, describing:
   (1) how the program may have been restructured to reflect any changes in
   the acquisition strategy; and (2) exit criteria that the Department has 
   established to ensure that technical risks are at acceptable levels     
   before the program enters into EMD.                                     

      In consonance with this recommendation, the committee also recommends
   no funding in support of the budget request for EMD funds, specifically 
   a decrease of $595.5 million, including $299.5 million in PE 64800F and 
   $296.0 million in PE 64800N, but recommends an increase of $424.2       
   million in demonstration and validation funds, including $212.1 million 
   in PE 63800F and $212.1 million in PE 63800N.                           
      The committee believes that the Department should use this time and  
   funding to complete flight testing of the concept demonstrator aircraft,
   acquire the data from the test program, spend such funds as can be used 
   to reduce risk for technologies that would need to mature during EMD,   
   and define and implement a preferred acquisition strategy.              
      The committee is not interested in having the contractor team or     
   teams sitting around waiting for the first day of fiscal year 2002.     
   Indeed, the committee would support the Department's moving past the    
   concept demonstration tests with the fiscal year 2001 funds provided.   
   Such activities could perhaps include even selecting a contractor team  
   or teams to conduct various pre-EMD activities to begin planning for    
   EMD. Such committee support, however, presumes that: (1) the Department 
   will have provided the report required by the provision regarding       
   acquisition strategy and technical risk exit criteria; and (2) the      
   results of flight testing the STOVL variants will have been available to
   inform such decisions.                                                  
      The committee is also not interested in having the contractors make  
   additional unreimbursed investments in winning this program. The        
   Department has informed the committee that it has recently modified the 
   current JSF demonstration contracts to allow significant contractor     
   investment in the concept demonstration phase. The committee recommends 
   that the Department not propose any restructured program that would     
   allow any further individual contractor investment beyond the levels    
   envisioned by this modification. While the Department has made a        
   reasonable case for implementing the current modification, the committee
   does not view additional contractor investment during the competition   
   phase as conducive to smooth implementation of any potential acquisition
   strategy.                                                               
      The committee is well aware of the considerable international        
   interest in this program. The actions recommended by the committee      
   should in no way be interpreted as a lack of support for the JSF or a   
   lack of appreciation for the critical role that the JSF can play in     
   tactical aviation modernization. At this critical juncture, however, the
   JSF program is too important to be rushed into the EMD phase until the  
   program is ready to graduate. The committee believes that a more prudent
   technical and programmatic approach will, in the final analysis,        
   strengthen the process of developing and fielding the family of aircraft
   that will dominate tactical aviation for the next half century.         
            Global Hawk high altitude endurance unmanned aerial vehicle (sec. 216) 

      The budget request included $109.2 million for the development of    
   endurance unmanned aerial vehicles (HAE UAVs), of which $103.2 million  
   was for the continued development of the Global Hawk HAE UAV. The Global
   Hawk is an advanced concept technology demonstration (ACTD), nearing    
   completion of its highly successful military utility phase, and         
   preparing for its engineering and manufacturing (EMD) phase.            
      The budget request also included $22.4 million for the procurement of
   long lead items for the first two production Global Hawk HAE UAVs and   
   one common ground station. The General Accounting Office (GAO) has      
   studied the Global Hawk program, and has concluded that production in   
   fiscal year 2001 would be premature. The GAO identified three reasons   
   for arriving at this conclusion:                                        
    (1) Global Hawk has not yet begun a scheduled one year EMD phase;      

       (2) testing of a production representative Global Hawk system will  
   not have been started; and                                              
    (3) during EMD, the Global Hawk design will be changing.               

      The committee strongly supports the continued development of the     
   Global Hawk HAE UAV, but concurs with the GAO that long lead production 
   for two additional HAE UAVs is premature. The committee recommends a    
   decrease of $22.4 million in Aircraft Procurement, Air Force, that would
   allow the Air Force sufficient time to use the EMD program to stabilize 
   the final design.                                                       
      Although one developmental Global Hawk HAE UAV was destroyed in a    
   mishap, six other developmental Global Hawk HAE UAVs have either been   
   delivered to the Air Force or are at varying stages of production. The  
   Air Force has requested additional electro-optical and infra-red sensor 
   payloads for the Global Hawk HAE UAV on its unfunded requirements list  
   because there are not enough sensors to outfit all six of these Global  
   Hawk HAE UAVs.                                                          
      The six remaining ACTD HAE UAVs do not meet the operational          
   requirement. The committee believes, however, that these aircraft are   
   still excellent platforms for continuing development and expansion of   
   the current HAE UAV operational concept. For example, advances in the   
   production of active electronic scanned array (AESA) radars and the     
   development of associated technologies, such as modular, scalable       
   antennas could make this an appropriate time to further expand          
   operational concepts to include an airborne surveillance capability.    
   This may be preferable to merely buying more of the current sensor      
   payloads                                                                

                    that we know will not meet the Air Force's requirements. The  
          committee also understands that Commander in Chief, Joint Forces        
          Command, is interested in using the existing ACTD Global Hawk aircraft  
          for experimentation after the Air Force begins producing HAE UAVs that  
          meet the operational requirement.                                       
      The committee is well aware of how taxing recent operations have been
   on such low density, high demand units such as the E 3A Airborne Warning
   and Control (AWACS) aircraft. The long endurance capability of the      
   Global Hawk could make it an ideal candidate to substitute for such low 
   density, high demand units as AWACS aircraft in certain situations, if  
   it were to be outfitted with an appropriate payload. Such situations    
   could include such lower threat environments as the area of             
   responsibility of the Commander in Chief, Southern Command. Appropriate 
   missions could include filling the air surveillance requirements in     
   support of counter-drug operations off the coast of Central and South   
   America.                                                                
      The committee recommends an increase of $18.0 million in PE 35205F to
   extend the ACTD effort. The Air Force should use $12.0 million of this  
   amount to acquire and integrate a non-developmental AESA radar on Global
   Hawk, and to demonstrate its operational viability in the Southern      
   Command area of responsibility. This demonstration should be conducted  
   as soon as practicable in fiscal year 2001, with participation and      
   guidance from the Commanders in Chief of the Joint Forces and Southern  
   Commands, to include requirements and scenario planning. To further this
   goal, the committee recommends a provision that would direct the        
   Secretary of Defense to coordinate a demonstration of the capability of 
   the Global Hawk HAE UAV in an airborne surveillance role in the         
   counter-drug effort, and to provide a report on the technical           
   feasibility and operational concept for using Global Hawk HAE UAVs in   
   this role.                                                              
      In the long-term, the Air Force should apply the remaining $6.0      
   million of this total to begin a concurrent development effort for an   
   improved surveillance radar for potential use on the Global Hawk. The   
   committee believes that this development effort should capitalize on the
   efforts detailed in the report delivered to Congress in April, 2000, on 
   modular, scalable, active electronically scanned antenna (AESA)-based   
   radar development activities.                                           
                       Unmanned advanced capability aircraft and ground combat     
           vehicles (sec. 217)                                                     
      The challenges that the United States will face in the new millennium
   are diverse--new threats, new battlefields, and new weapons. Our armed  
   forces must remain vigilant, forward thinking and prepared to address   
   these challenges. The committee believes that the Department of Defense 
   must exploit the opportunities created by the rapid pace of             
   technological development to provide our men and women in uniform with  
   the most advanced weaponry and leverage these developments in a way that
   minimizes the risk to those deployed in harm's way.                     
      During the offensive military operation in Kosovo, U.S. forces       
   carried out 78 days of round-the-clock operations and over 38,000 combat
   sorties with no combat casualties. The American people are coming to    
   expect that military operations are casualty free. This is a factor that
   is more and more influencing the planning of military operations. How   
   else do we explain bombing operations in Kosovo that largely restricted 
   coalition pilots to altitudes between ten and fifteen thousand feet?    
      Limiting risk to our personnel is clearly an important goal and one  
   of the most advantageous benefits of deploying unmanned combat systems  
   and technologies. An initiative to expand the use of such technologies  
   would allow the Department to aggressively pursue and field remotely    
   controlled combat systems with this goal: within 10 years one-third of  
   U.S. military operational deep strike aircraft will be unmanned and     
   within 15 years one- third of all U.S. military ground combat vehicles  
   will also be unmanned. It is not the intention of the committee to      
   replace pilots and manned aircraft with unmanned combat systems, but to 
   provide added capabilities to manned combat aircraft--added capabilities
   that would provide alternatives to sending military personnel into the  
   highest risk missions.                                                  
      Casualty aversion limits the flexibility of foreign policy. Taking   
   full advantage of advances in technology will allow future              
   administrations greater flexibility and, at the same time, reduce       
   exposure of U.S. personnel. For these reasons, the committee recommends 
   an increase of $200.0 million in research, development, test and        
   evaluation (RDT&E) to accelerate the technologies that will lead to the 
   development and fielding of remotely controlled air combat vehicles by  
   2010 and remotely controlled ground combat vehicles by 2015. The        
   committee has identified three promising programs, initiated by the     
   services, in which to invest these funds:                               

                        AIR FORCE UNMANNED COMBAT AIR VEHICLE (UCAV)              

      The committee recognizes the on-going joint Defense Advanced Research
   Projects Agency (DARPA)/Air Force unmanned combat air vehicle (UCAV)    
   program, initiated in 1998. The committee notes that a small-scale      
   demonstrator will flight test in the Spring of 2001. The committee      
   recommends an increase of $100.0 million in PE 62702E to accelerate risk
   reduction and ``Concept of Operation'' evaluation. The additional funds 
   would be applied as follows: design, development of additional          
   demonstrator vehicles; invest in low-cost commercial core engine        
   derivative; demonstrate intelligent decision aids; validate suppression 
   of enemy air defense(SEAD)/strike targeting in realistic environment;   
   and fully validate multi-vehicle flight modes.                          
                              NAVY UNMANNED COMBAT AIR VEHICLE                    

      DARPA and the Navy initiated a joint program this year to explore    
   concepts for a Naval unmanned combat air vehicle (UCAV N). The committee
   recommends an increase of $25.0 million to be applied to a preliminary  
   design of a UCAV N demonstrator system suitable for ship-based          
   SEAD/strike/surveillance missions.                                      
                              ARMY FUTURE COMBAT SYSTEMS (FCS)                    

      In February 2000, the Army signed a Memorandum of Agreement (MOA)    
   with DARPA to develop a future combat system (FCS) to replace the       
   current generation of armored combat vehicles. Although robotics is a   
   key part of development, there is not a requirement for an autonomous,  
   remotely-controlled vehicle in the current program. The committee       
   recommends an increase of $121.3 million for the FCS program as follows:
   an increase of $46.3 million in PE 63005A to accelerate the enabling    
   technologies for the FCS program, and an increase of $75.0 million in PE
   62702A to add an unmanned, remotely-controlled aspect to the future     
   combat system. The committee expects this requirement to be added to the
   MOA on FCS.                                                             
      The committee directs the Secretary of Defense report to the         
   congressional defense committees by January 31, 2001, on: (1) the       
   schedule for this initiative; (2) the funding required for fiscal year  
   2002 and for the future years defense program; and (3) a description and
   assessment of the acquisition strategy for remotely-controlled air and  
   ground combat vehicles.                                                 
            Army space control technology (sec. 218)                               

      The committee recommends a provision that would authorize $20.0      
   million for the Army's Kinetic Energy Anti-Satellite (KE ASAT) program  
   and $5.0 million for other Army space control technology development    
   emphasizing temporary and reversible effects. The provision would limit 
   the obligation of funds for space control technology, other than KE     
   ASAT, until the funds authorized for the KE ASAT program have been      
   released to the KE ASAT program manager.                                
      The committee directs the Commander of the Army Space and Missile    
   Defense Command (SMDC) to use the $20.0 million authorized for the KE   
   ASAT program to advance the three existing KE ASAT kill vehicles and    
   associated hardware to a point where a flight test could occur one year 
   following any decision to do so. None of the funds authorized for the KE
   ASAT program may be used to support research and development on         
   capabilities to counter satellites in a non-destructive, reversible     
   manner. The Commander of SMDC shall also begin planning and preparation 
   for a KE ASAT flight demonstration. The committee is aware that the     
   Kodiak Island launch facility in Alaska is well suited to support a     
   launch of a KE ASAT test vehicle. The committee directs the Commander of
   SMDC to include an assessment of the Kodiak Island facility as part of  
   the overall flight test planning and evaluation process.                
      The committee continues to support the KE ASAT technology program. At
   the same time, the committee has also directed the Army to develop      
   capabilities to counter satellites in a non-destructive, reversible     
   manner. The committee does not view these two objectives to be          
   incompatible.                                                           
            Russian American Observation Satellites program (sec. 219)             

      As detailed elsewhere in this report, the committee is concerned that
   the Ballistic Missile Defense Organization plans a two-satellite Russian
   American Observation Satellites (RAMOS) program. The committee believes 
   that the Secretary of Defense should develop, and seek congressional    
   approval of, a technology protection plan before proceeding with the    
   RAMOS program, regardless of the program's structure and focus.         
   Therefore, the committee recommends a provision that would prohibit the 
   obligation or expenditure of any funds for RAMOS until 30 days after the
   Secretary submits to Congress a report explaining how the Secretary     
   plans to protect U.S. advanced military technology that may be          
   associated with the RAMOS program.                                      
            Joint Biological Defense Program (sec. 220)                            

      The committee recommends a provision that would prohibit the         
   obligation of funds to procure the vaccine for the biological agent     
   anthrax until the Secretary of Defense: (1) notifies the congressional  
   defense committees in writing that the Food and Drug Administration     
   (FDA) has approved the current production facility of the anthrax       
   vaccine for FDA-approved vaccine production operations; and (2) provides
   a report to the congressional defense committees that addresses         
   contingencies associated with relying on the current manufacturer to    
   produce the vaccine. The report will include recommended strategies to  
   mitigate the risk of the loss of the current sole-source manufacturer of
   the vaccine and a budget to support these strategies. The report will   
   also provide recommended strategies to ensure that an FDA-licensed      
   anthrax vaccine can be procured should the sole-source manufacturer fail
   to obtain FDA approval to release stockpiled or newly produced vaccine, 
   or the manufacturer terminates anthrax vaccine production permanently.  
   The Secretary will report the funding requirements and the criteria for 
   implementing these strategies.                                          
      In the Senate report accompanying S. 2060 (S. Rept 105 189), the     
   committee noted that the anthrax vaccine is approved by the Food and    
   Drug Administration (FDA), and has been used by cattle and sheep        
   ranchers since the 1970s. The committee also emphasized the criticality 
   of maintaining sufficient supplies of the vaccine to immunize U.S.      
   military personnel against the biological warfare agent anthrax.        
      The Department of Defense (DOD) currently relies on a single-source  
   manufacturer to supply the military services with the anthrax vaccine.  
   The vaccine manufacturer, however, failed to maintain required FDA      
   approvals for the vaccine production facility and the stockpiled        
   vaccine. As a result, the DOD delayed the start of phase two of the     
   Anthrax Vaccine Immunization Program (AVIP). In addition, the Defense   
   Contract Audit Agency (DCAA) conducted audits of the manufacturer's     
   financial capability in June 1999, and February 2000, and reported after
   both reviews that there is ``* * * substantial doubt * * *'' that the   
   manufacturer will be financially able to continue performing on         
   government contracts. The committee believes that it is incumbent on the
   Department to assess the implications of the FDA, DCAA, and other       
   federal agency reviews of the current procurement plan, and to ensure   
   that an effective plan is in place to provide a vaccine to immunize U.S.
   military personnel against the anthrax virus.                           
                       Report on biological warfare defense vaccine research and   
           development programs (sec. 221)                                         
      The committee recommends a provision that would direct the Secretary 
   of Defense to report on the progress of the Department of Defense (DOD) 
   program to develop and procure vaccines for biological warfare agents.  
   The Secretary will provide this report to the congressional defense     
   committees no later than February 1, 2001. The report will include: an  
   evaluation of the ability of the commercial sector to meet the vaccine  
   requirements of the Department; a design for a government               
   owned/contractor                                                        

                    operated (GOCO) vaccine production facility at an alternative 
          site determined by the Secretary; and a comparison of the costs and     
          benefits of the current acquisition strategy, a GOCO facility at an     
          alternative site determined by the Secretary, and other acquisition     
          alternatives. The design recommendation for the GOCO facility at the    
          alternative site determined by the Secretary will include: a            
          recommendation, in consultation with the U.S. Surgeon General, on the   
          possibility of the GOCO providing support for civilian vaccine          
          requirements and the related impact on the operating costs of the GOCO  
          vaccine production facility; and an analysis of the impact of           
          international requirements for vaccines on the operating costs of the   
          GOCO.                                                                   
      The biological warfare capability of the government of Iraq during   
   Operation Desert Storm led to a requirement for vaccines to immunize    
   military personnel against biological agents. Since that time, the Joint
   Chiefs of Staff (JCS) biological warfare threat list now includes over  
   twenty biological agents that are in some stage of development, from    
   basic research to production, by several countries. During this same    
   period, the Department has initiated a mandatory program to immunize all
   active and reserve military personnel against the biological warfare    
   agent anthrax.                                                          
      During an April 14, 2000, hearing of the Subcommittee on Personnel,  
   witnesses from the DOD and General Accounting Office identified many of 
   the challenges associated with vaccine development and acquisition.     
   These challenges included the reluctance of large pharmacuetical        
   companies to participate in vaccine development and production, the     
   speculative costs associated with working with start-up commercial      
   vaccine research and production companies, and the requirement to pay a 
   premium to the private sector for vaccine research and development due  
   to the relatively limited quantities of vaccines required by the DOD.   
   The committee notes the recommendation of Project Badger in the early   
   1990s for a GOCO vaccine production facility and subsequent DOD plans   
   and budgeting to construct a facility at the Pine Bluff Arsenal in Pine 
   Bluff, Arkansas. Based on the work that has already been done, the      
   committee believes that the Secretary should give strong consideration  
   to the Pine Bluff Arsenal as the site for the alternate facility. Given 
   these issues, the committee believes a reevaluation by the DOD of the   
   issues relating to vaccine development and production, and the merits of
   a GOCO facility at an alternative site are necessary at this time.      
                                  SUBTITLE C--OTHER MATTERS                       

            Mobile offshore base (sec. 241)                                        

      The committee recommends a provision that would require the Secretary
   of Defense to provide the congressional defense committees with the     
   results of the operational utility cost-benefit analysis. The provision 
   would also require the Secretary to designate a lead service and        
   tentative program schedule if the Secretary decides to continue the MOB 
   program.                                                                
      The Senate report accompanying S. 1059 (S. Rept. 106 50) directed the
   Secretary of Defense to initiate an analysis of the operational utility 
   of the mobile offshore base (MOB), and report to the congressional      
   defense committees by March 1, 2000. The analysis was to include the    
   results of the technical feasibility studies, assessment of the         
   operational utility versus the life-cycle cost of such a system, and a  
   recommendation on whether to proceed with pre-development or development
   activities. The report further directed that, if the recommendation were
   to proceed with the program, the Department of Defense should designate 
   an executive service and provide an estimate of fiscally phased         
   resources for program execution.                                        
      The Navy delivered a report to the congressional defense committees  
   in April, 2000. This report, however, only detailed the technical work  
   accomplished and described the effort that would need to be accomplished
   were the program to be initiated, along with cost estimates of the      
   remaining effort. There was no mention of operational utility versus    
   life-cycle cost, nor was there a recommendation on whether to proceed   
   with the program.                                                       
            Air Force science and technology planning (sec. 242)                   

      The committee recommends a provision that would require the Secretary
   of the Air Force to submit a report to the congressional defense        
   committees on the long-term challenges and short term objectives of the 
   Air Force science and technology (S&T) program.                         
      The committee was deeply disappointed by the science and technology  
   budget proposed by the Air Force for fiscal year 2000. This budget not  
   only failed to measure up to the congressional goals established in     
   section 214 of the Strom Thurmond National Defense Authorization Act for
   Fiscal Year 1999 (Public Law 105 261), but also risked mortgaging the   
   future of the Air Force by sacrificing long-term technological          
   superiority in favor of short-term readiness. The science and technology
   budget proposed by the Air Force for fiscal year 2001 shows some        
   improvement, but the committee remains concerned that the Air Force has 
   made deep cuts to some programs without undertaking a comprehensive     
   planning process to ascertain its long-term technology needs and how    
   those needs can be supported by the science and technology program.     
      Over the last five years, the Department of Defense (DOD) has        
   developed a coordinated planning process for S&T spending,              

                    known as the joint warfighting science and technology planning
          process. This process has helped DOD address redundancies and overlaps, 
          and ensure that the S&T programs funded by the services are             
          appropriately designed to meet the Department's warfighting needs. The  
          result has been a significant improvement in the quality of the         
          Department's science and technology budget submissions. As successful as
          it has been, however, the current S&T planning process appears to focus 
          on the micro issue of ensuring that individual projects address         
          legitimate warfighting needs, rather than on the macro issue of         
          prioritizing those needs and ensuring that sufficient funding is made   
          available to meet them.                                                 
      Two of the three services have undertaken ambitious steps to try to  
   address that shortcoming in the science and technology planning process 
   by prioritizing their own needs on a macro basis, and realigning S&T    
   funding to match new priorities. The Army has attempted to identify     
   science and technology spending that is directly linked to the planned  
   transformation of the force, and prioritized that spending over funding 
   for incremental improvements to existing platforms. The Navy has        
   undertaken to reevaluate all science and technology spending from the   
   ground up and focus investments on areas designated as long-term Grand  
   Challenges and more immediate Future Naval Capabilities. By focusing its
   spending in this way, the Navy hopes to avoid the usual practice of     
   trying to fund a little bit of everything, and ensure that it will have 
   critical mass in the areas that are most important to the Navy of the   
   future.                                                                 
      In view of the serious cuts in the Air Force S&T budget and the      
   danger that these cuts could undermine long-term technological          
   superiority in key areas, the provision recommended by the committee    
   would require the Air Force to undertake a comparable planning effort.  
   This process must include not only the Air Force research community, but
   also the entire warfighter community, requirements community, and       
   acquisition community. It is the committee's hope that the planning     
   process--and the Air Force science and technology program--will be      
   driven by the future needs of the Air Force, rather than the budgetary  
   constraints of today.                                                   

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            Counter-terrorism basic research                                       

      The committee recommends an increase of $3.0 million in PE 61102A for
   the Army's counter-terrorism research program. Last year, the committee 
   provided the funding to initiate a basic research program in order to   
   explore technologies that deter, resolve, and mitigate terrorist acts,  
   including physical structure and physical effects research. It is of the
   utmost concern that we conduct research and development not only for    
   near-term solutions, but also for investigating revolutionary approaches
   in science and techologies that will provide next generation solutions  
   for force protection and terrorist threats. The committee urges the Army
   to include funding for this important project in the future.            
            Composite materials                                                    

      The committee recommends an increase of $6.0 million in PE 62105A for
   composite materials for the next generation armored vehicle for the     
   Army's objective force. The committee directs that all applicable       
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
            Advanced missile composite components                                  

      The committee recommends an increase of $5.0 million in the missile  
   technology applied research program (PE 62303A) to develop the enabling 
   technology for the next generation of tactical missiles. The committee  
   directs that all applicable competitive procedures be used in the award 
   of contracts or other agreements under this program and that cost       
   sharing be used to the maximum extent practicable.                      
            Smart truck initiative                                                 

      The committee recommends an increase of $3.5 million in PE 62601A,   
   the Army's combat vehicle and automotive technology account for the     
   National Automotive Center, to conduct demonstrations for the smart     
   truck initiative. The committee directs that cost sharing be used to the
   maximum extent practicable.                                             
            Portable hybrid electric power system                                  

      The committee recommends an increase of $1.5 million in PE 62705A for
   research in a portable, hybrid electric power system that would combine 
   battery, fuel cell, super-capacitor, and other subsystems. The          
   additional funds would be used to model and assess the tradeoffs as they
   relate to military missions. The committee directs that all applicable  
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
            Thermoelectric power generation                                        

      The committee recommends an increase of $1.0 million in PE 62784A for
   a feasibility study on thermoelectric power generation for military     
   applications.                                                           
            Operational support                                                    

      The committee recommends an increase of $4.0 million in the Army's   
   military engineering program (PE 62784A) for university partnering for  
   operational support. The committee directs that all applicable          
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
            Equipment readiness                                                    

      Long lead times and the high costs of procuring and inventory of     
   replacement parts has resulted in soaring operation and support costs   
   with a reduction of equipment readiness rates. The committee understands
   the Department of Defense has initiated a program to address these      
   problems through the development of a self-contained, mobile            
   manufacturing center that can produce spare parts at the point of need. 
   The committee recommends an increase of $8.0 million in PE 63005A for   
   the continuation of this important effort. The committee directs cost   
   sharing be used to the maximum extent practicable.                      
            Fuel cell auxiliary power units                                        

      The committee recommends an increase of $4.0 million in PE 63005A for
   research in fuel cell auxiliary power units for use in the Army's       
   objective force. The Army's transformation strategy includes reducing   
   the size of the deployed logistics footprint and prioritizing the       
   development of vehicles that are smaller, lighter, more lethal, yet more
   reliable, fuel efficient and survivable. A key component of increased   
   survivability is reducing the signature of future Army platforms.       
   Addressing these logistics and survivability challenges should entail a 
   full evaluation of alternative energy sources.                          
            Big Crow program office                                                


      The committee recommends an increase of $7.0 million in PE 63006A for
   the Big Crow program, a national test asset supporting a wide variety of
   electronic warfare test and training exercises. The Big Crow program has
   historically been operated under the Department of Defense Major Range  
   and Test Facility Base (MRTFB), primarily in a test asset role.         
   Recently, however, the operational forces have recognized the asset's   
   potential. The Big Crow program has been deployed operationally to      
   support NATO and U.S. force deployments in southeast Europe as well as  
   Commander in Chief for Space (CINCSpace) activities. The committee      
   understands that the Department is making progress in developing a new  
   strategy to ensure long-term funding for this program that will provide 
   stability to support test and evaluation as well as operational         
   missions. Oversight of the program has been assigned to the Army Space  
   and Missile Defense Command and funding for this program is provided in 
   the Future Years' Defense Program beginning in fiscal year 2002. The    
   additional $7.0 million would provide bridge funding to maintain        
   continuity in operations until the program completes this transition.   
            Army Space and Missile Defense Command Simulations                     

      The committee recommends an increase of $3.0 million in PE 63308A for
   Family of Systems Simulators and an increase of $4.5 million in PE      
   63308A for Simulations Center Upgrade.                                  
            Aero-acoustics instrumentation                                         

      The budget request included no funds for aero-acoustics              
   instrumentation. The committee has supported research and development   
   activities conducted by the Army Space and Missile Defense Command in   
   the area of aero-acoustics. Aero-acoustics instrumentation will enable  
   the Army to understand acoustic coupling of missile airframes to the    
   internal components for vehicles flying as fast as Mach 10. Therefore,  
   the committee recommends an increase of $4.0 million in PE 63308A to    
   continue this important research and development.                       
            Acoustic technology research                                           

      The committee continues to support research sponsored by the Army's  
   Space and Missile Defense Command in acoustic applications for          
   detection, identification, and tracking of cruise missiles and mobile   
   missile launchers. The committee recommends an increase of $4.0 million 
   in PE 63308A to support continued effort in this area.                  
            Missile defense flight experiment                                      

      The committee has supported the Army's program to demonstrate        
   critical missile defense kill vehicle technologies through flight       
   testing. To continue this effort, the committee recommends an increase  
   of $14.7 million in PE 63308A.                                          
            Radar power technology                                                 

      The committee continues to support advanced radar power technology   
   development at the Army Missile Defense and Space Technology Center. The
   committee recommends an increase of $4.0 million in PE 63308A to        
   continue this important research and development.                       
            Scramjet acoustic combustion enhancement                               

      The committee is aware of research and development activities being  
   conducted by the Army Space and Missile Defense Command in the area of  
   scramjet acoustic mixing. A scramjet engine that can utilize acoustics  
   to more efficiently burn propellant could significantly increase the    
   performance and efficiency of air defense interceptors. Therefore, the  
   committee recommends an increase of $2.0 million in PE 63308A to support
   continuation of this important research and development.                
            Space and missile defense battle lab                                   

      The committee continues to support the Army's Space and Missile      
   Defense Battle Lab. To support this important modeling and simulation   
   capability, the committee recommends an increase of $5.0 million in PE  
   63308A.                                                                 
            Supercluster distributed memory technology                             

      The budget request included no funds for supercluster distributed    
   memory technology. The committee is aware that supercluster distributed 
   memory technology may provide a cost-effective approach to running      
   complex computer simulations to predict the control forces exerted on a 
   missile over its flight trajectory. To support evaluation of this       
   technology, the committee recommends an increase of $2.0 million PE     
   63308A.                                                                 
            Tactical High Energy Laser                                             

      The budget request included no funding for completion of testing of  
   the Tactical High Energy Laser (THEL) program. The committee supports   
   expeditious completion of THEL development and testing. The committee   
   recommends an increase of $15.0 million in PE 63308A to support         
   continued THEL testing and deployment preparation activities.           

            Anti-malarial research                                                 

      The committee recommends an increase of $2.0 million in PE 63807A to 
   accelerate the development and fielding of the anti-malarial compound   
   taphenoquine. The committee directs that cost sharing be used to the    
   maximum extent practicable.                                             
            Electronic warfare development                                         

      The budget request included $61.1 million for Army electronic warfare
   development activities. The committee notes and appreciates ongoing     
   efforts by the Army to completely identify and understand issues        
   associated with the deployment of Task Force Hawk last year during      
   operations in Kosovo. The committee recognizes an outstanding           
   requirement to install a suite of radio frequency countermeasures       
   (SIRFC) and advanced threat infrared countermeasures (ATIRCM) equipment 
   on Apache helicopters necessary to improve the ability of aircraft crews
   to survive in future conflicts. The committee recommends an increase of 
   $38.5 million in PE 64270A for electronic warfare development, a total  
   authorization of $99.6 million. Of this amount, $18.0 million would be  
   used to support the development of a SIRFC production line and $20.5    
   million to complete development of SIRFC and ATIRCM ``A'' kits for the  
   Apache Longbow helicopter.                                              
            Threat simulator development                                           

      The budget request included $13.9 million for threat simulator       
   development activities. The committee recognizes the important roles    
   that threat simulators play in preparing our forces to fight and win    
   future battles. The committee recommends an increase of $4.6 million in 
   PE 64256A, a total authorization of $18.5 million. Of the $4.6 million  
   increase, $2.1 million would be used for threat information operations  
   attack simulator development and $2.5 million would be used for threat  
   virtual mine simulator development.                                     
            Multiple launch rocket system product improvement program              

      The budget request included $59.5 million for multiple launch rocket 
   system product improvements. The committee understands that the Army    
   continues to pursue a cost reduction initiative associated with the     
   multiple launch rocket system (MLRS) improved launcher and the high     
   mobility artillery and rocket system (HIMARS). The committee understands
   this initiative could result in cost savings of greater than $500.0     
   million over the life of these programs. The committee, therefore,      
   recommends an increase of $16.0 million in PE 63728A to support the     
   ongoing MLRS and HIMARS cost reduction initiatives.                     
            Joint Land Attack Cruise Missile Defense Elevated Netted Sensor        

      The budget request included $25.0 million for the Joint Land Attack  
   Cruise Missile Defense Elevated Netted Sensor (JLENS) system. The       
   committee is concerned about possible vulnerabilities of an aerostat to 
   climatic conditions and understands that the Army has established an    
   Aerostat Design and Manufacturing (ADAM) program to facilitate the      
   design and manufacture of affordable aerostats with improved performance
   and availability. The committee recommends an increase of $2.0 million  
   in PE 12419A in support of the ADAM program to provide the type of      
   material and tether technology to make the JLENS system viable.         
            Communications and networking technologies                             

      The budget request included $8.1 million for Army information systems
   security research, development, test and evaluation. The committee      
   supports efforts managed by the Army's Communications and Electronics   
   Command (CECOM) in the area of applied communications and networking    
   technology. To support these efforts, the committee recommends an       
   increase of $5.0 million in PE 33140A.                                  

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            Free electron laser                                                    

      The committee recommends an increase of $5.0 million in PE 62111N to 
   complete the development of the infrared free electron laser            
   demonstration project to the 10 kilowatt level. This investment would   
   enable the Department of the Navy to determine capabilities of such a   
   tool for infrared counter-measures and further the technology base in   
   high energy lasers.                                                     
            Biodegradable polymers                                                 

      The budget request included no funds for biodegradable polymers. The 
   committee recommends an increase of $1.25 million in PE 62121N to aid in
   the development of polymer membrane methods for treating graywater      
   (kitchen, shower, and cleaning solution), blackwater (sewage), and bilge
   water (oily contaminants) to acceptable levels prior to shipboard       
   release.                                                                
            Bioenvironmental hazards research                                      

      The committee recommends an increase of $3.0 million in PE 62121N for
   bioenvironmental hazards research. The committee is concerned that there
   is insufficient knowledge of the full impact and hazards to humans,     
   animals, and plants from the potential use of biological warfare agents.
   Besides the obvious lethal effects on living organisms, biological      
   warfare agents could have other very serious long-term consequences that
   would require a dedicated mitigation response or prophylaxis. The       
   additional funds should be applied to research and development of the   
   technologies and methods for better measuring and understanding the full
   range of impacts of biological warfare hazards to people and other      
   living organisms, and thus improve our ability to develop suitable      
   preparations or responses to such hazards. The committee directs that   
   all applicable competitive procedures be used in the award of contracts 
   or other agreements under this program and that cost sharing be used to 
   the maximum extent practicable.                                         
            Nontraditional warfare initiatives                                     

      The committee recommends an increase of $2.0 million in PE 62131M for
   the Marine Corps to conduct applied research directed at their role as  
   first responders. The additional funds should be used to explore        
   innovative concepts for addressing non-traditional tactics and          
   operational challenges arising in the 21st Century. The committee       
   directs that all applicable competitive procedures be used in the award 
   of contracts or other agreements under this program and that cost       
   sharing be used to the maximum extent practicable.                      
                       Communications, command, and control, intelligence,         
           surveillance, and reconnaissance                                        
      The committee recommends an increase of $3.0 million in PE 62232N to 
   accelerate the introduction of fused hyperspectral, synthetic aperture  
   radar and electronic intelligence. The committee directs that cost      
   sharing be used to the maximum extent practicable.                      
            Cognitive research                                                     

      The committee recommends an increase of $3.0 million in PE 62233N for
   applied cognitive technologies to improve learning. In a hearing before 
   the Subcommittee on Emerging Threats and Capabilities, Dr. Delores      
   Etter, Deputy Under Secretary of Defense for Science and Technology,    
   explained the importance and the growing need for cognitive research,   
   ``. . . an area that we think is one of increasing importance is        
   cognitive readiness. This is really the area of human optimization. The 
   challenges in this area include sustained operations, environmental     
   ambiguity, distributed learning, and the overall information overload   
   that we are presenting to our soldiers.'' The committee understands that
   the Chief of Naval and Education and Training has initiated a program to
   deal with cognitive development for Navy personnel. The additional funds
   would extend this program's focus to include technological research in  
   cognitive readiness and human optimization.                             
            Ceramic and carbon based composites                                    

      The committee recommends an increase of $2.0 million in PE 62234N for
   the continued development, evaluation and testing of ceramic and carbon 
   based composites for use in strategic missiles and hypersonic vehicles. 
   The committee directs that cost sharing be used to the maximum extent   
   practicable.                                                            
            Nanoscale sensor research                                              

      The committee recommends an increase of $3.0 million in PE 62234N for
   applied research in nanoscale sensor technologies. The additional       
   funding would be expected to support the area designated by the Office  
   of Naval Research as a Grand Challenge to develop highly                
   multi-functional nanoscale architecture devices to their ultimate limits
   (high speed (100x), small size (0.01x), and low power (0.001x)), that   
   interactively combine sensing, image processing, computation, signal    
   processing, and communication functions, to achieve real-time adoptive  
   response, on-site for Navy missions. The committee directs that all     
   applicable competitive procedures be used in the award of contracts or  
   other agreements under this program and that cost sharing be used to the
   maximum extent practicable.                                             
            Littoral area acoustic demonstrations                                  

      The committee recommends an increase of $3.0 million in PE 62435N for
   acoustic data collection, all source data fusion, and advanced acoustic 
   modeling and signal processing techniques in support of Navy research   
   and development efforts. The committee directs that all applicable      
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
            Computational engineering design                                       

      The committee recommends an increase of $2.0 million in PE 62633N for
   computational engineering research and design for marine and aerospace  
   vehicles. This research provides a focus on the simulation and design of
   surface ship and submarine applications. It is particularly relevant in 
   the view of the Navy's decision to transfer ship design from the Navy   
   laboratories to the shipyards. There is also some extension of the      
   technology to aerospace based on requirements of the National           
   Aeronautical and Space Administration (NASA). The committee expects the 
   Office of Naval Research to fully explore such applications in the      
   execution of the research. The committee directs that all applicable    
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
            Advanced water-jet technology                                          

      The budget request included no funds for advanced water-jet          
   technology. Advanced water-jet technology represents the type of        
   technological improvement in ship propulsion that could reduce both     
   acquisition and total ownership costs. Water-jet technology has the     
   potential to reduce ship signatures critical to maintaining war fighting
   superiority through battle space awareness. Therefore, the committee    
   recommends an increase of $4.0 million in PE 63508N for advanced        
   water-jet technology.                                                   
            Composite helicopter hangar door                                       

      The budget request included no funds for developing a composite      
   helicopter hangar door. The initiative to design and fabricate a        
   composite helo hangar door for surface combatants has the potential to  
   reduce combatant ship life-cycle costs by improving reliability and     
   reducing maintenance requirements. The                                  

                    program will leverage enabling technologies that can lead to  
          reduced radar signatures and cost and weight savings.                   
      The committee recommends an increase of $5.0 million in PE 63508N for
   the design and fabrication of a DDG 51 helicopter hangar door structure 
   using composite materials.                                              
            Composite modules for ship hull construction                           

      The budget request included no funding in PE 63508N for development  
   of composite hull modules which may be required for future ship         
   construction. While composites have some war fighting advantages over   
   standard ship construction using steel and aluminum components, the     
   technical expertise for constructing composite modules is limited. It is
   anticipated that future ship construction may include expanded use of   
   composites.                                                             
      The committee encourages development of key technologies that will   
   provide the foundation should the Navy decide to pursue the war fighting
   advantages of composites. Therefore, the committee recommends an        
   increase of $4.0 million in PE 63508N for the development and           
   construction of prototype composite modules for ship construction.      
            Laser welding and cutting                                              

      The budget request included no funding in PE 63508N for development  
   of laser welding and cutting techniques. Navy ships are built using     
   structural shapes and plate steel. Most shapes are currently stripped or
   split from I-beam stock material. Laser cutting and welding shapes from 
   plate steel could enhance the quality and reduce the cost of producing  
   shapes used in ship construction. Laser cutting and welding also has the
   potential to enable more creative designs for shapes.                   
      The committee encourages development of key technologies that have   
   the potential to provide higher quality and lower costs for building    
   Navy ships. Therefore, the committee recommends an increase of $2.8     
   million in PE 63508N for the development and application to naval ship  
   construction of laser welding and cutting techniques.                   
            Supply chain best practices                                            

      The budget request included $37.4 million in PE 63508N for surface   
   ship and submarine hull, mechanical, and engineering systems in support 
   of present and future ships and submarines.                             
      The supply system for ships and submarines requires interface and    
   interaction of a number of different communications and software        
   systems. This incompatibility requires reentry of data which is manpower
   intensive. Because the supply chain best practices initiative has the   
   potential to improve affordability, quality, and productivity by        
   providing connectivity for an alliance among the Navy, industry,        
   universities, and government agencies, the committee recommends an      
   increase to the initiative.                                             
      The committee recommends an increase of $2.0 million in PE 63508N for
   supply chain best practices.                                            
            Virtual test bed for reconfigurable ship                               

      The budget request included no funds for a virtual test bed for a    
   reconfigurable ship. The Navy is developing a virtual machinery design, 
   test, and evaluation capability for future ship systems. This will      
   enable the combination of real time, interactive, software simulation   
   with the hardware in-the-loop technologies.                             
      The committee fully supports this simulation and testing prior to    
   committing to system configuration. Therefore, the committee recommends 
   an increase of $2.0 million in PE 63508N for a virtual test bed for a   
   reconfigurable ship.                                                    
            Ocean modeling for mine and submarine warfare                          

      The budget request included $45.6 million for mine and expeditionary 
   warfare advanced technology. Within that amount, the request included   
   funds for algorithm development and modeling and simulation to provide  
   battle space products to the Office of the Naval Oceanographer for      
   promulgation to the war fighting commanders in chiefs (CINCs).          
      Research and development of products critical to monitoring,         
   modeling, and disseminating environmental data are key factors in battle
   space awareness. Specifically, the databases and information regarding  
   environments and predictions in littoral regions require emphasis on the
   mine warfare mission area. Investigation, data analysis, and prediction 
   tools are required for current and eddy flow, bottom contour and        
   content, and thermal layer behavior, cold water phenomena and man-made  
   clutter.                                                                
      Effective mine and submarine warfare are dependent on correct and    
   timely environmental data. The committee recommends an increase of $3.0 
   million in PE 603782N for ocean modeling.                               
            Marine Corps advanced technology transition                            

      The committee recommends an increase of $15.0 million in PE 63792N   
   for a Marine Corps advanced technology transition initiative focused on 
   the development of expeditionary warfighting technologies identified and
   developed through experimentation at the Commandant's Warfighting       
   Laboratory (CWL). The committee expects the Marine Corps program to be  
   implemented in the same fashion as the current Navy initiative in PE    
   63792N.                                                                 

                    The program should demonstrate high risk/high payoff          
          technologies and provide the Marine Corps with the opportunity to       
          identify and move emerging technologies quickly and efficiently from    
          laboratory to field. These projects should be selected by matching      
          technological potential with requirements derived from operational      
          issues of concern to the Marine Corps.                                  
            Integrated combat weapons system for mine countermeasures ships        

      The budget request included $14.4 million in PE 63502N for an        
   integrated combat weapons system (ICWS) for mine countermeasures ships. 
   The global positioning system, autonomous mine-hunting neutralization,  
   and mine sweeping capabilities contribute to a complex mine warfare     
   information battlefield in ICWS. The mine countermeasures ships have the
   responsibility of maintaining mine warfare tactical and operational     
   situations. At present, information from multiple sources is gathered   
   and plotted by slow and manpower-intensive methods.                     
      The committee recommends an increase of $5.0 million in PE 63502N for
   continuation of ICWS for mine countermeasures ships.                    
            Trident SSGN design                                                    

      The budget request included $34.8 million for the design of the      
   Trident-class nuclear ballistic missile submarine (SSBN) conversion to a
   nuclear guided missile submarine (SSGN). In addition, the Future Years  
   Defense Program (FYDP) includes $1.1 billion in fiscal years 2002       
   through 2005 for maintaining additional attack submarine (SSN) force    
   structure by either (1) refueling SSN 688-class submarines which were   
   previously scheduled for decommissioning or (2) refueling and           
   converting, to SSGN configuration, Trident SSBNs which were also        
   previously scheduled for decommissioning. The decision to refuel up to  
   four Ohio-class SSBNs, which would be converted for the SSGN mission, or
   use the funding to refuel Los Angeles-class SSNs, will be proposed by   
   the administration as part of the fiscal year 2002 budget submission.   
      The committee recognizes that the design work on the SSGN capability 
   which began in fiscal year 2000 must be sufficient to maintain viable   
   options for converting SSBNs to the SSGN until the fiscal year 2002     
   decision is made. To meet the requirements for planning coincidental    
   with the refueling of the first available SSBN, the committee recommends
   an increase of $9.0 million in PE 63559N to continue design activity for
   converting SSBNs to an SSGN configuration.                              
      The study of attack submarine force structure requirements conducted 
   by the Joint Chiefs of Staff (JCS) evaluated requirements of the        
   commanders in chief (CINCs). That study concluded that a submarine force
   structure below 55 SSNs in 2015 would be insufficient to meet           
   warfighting requirements and that 68 SSNs would be necessary by 2015 to 
   meet all the CINCs' and national intelligence community's highest       
   operational and collection requirements. The study focused on           
   intelligence, surveillance, and reconnaissance (ISR) requirements of the
   CINCs.                                                                  
   The committee is concerned that the Navy's decision to refuel           

    Los Angeles-class SSNs or convert Ohio-class SSBNs could be based more
  narrowly on the ISR deficiencies identified in the JCS study, without   
  giving adequate consideration to the other warfighting capabilities     
  offered by the SSGN, such as those outlined in the March 1999 Navy study
  of the Trident SSGN conversion option. Therefore, the committee directs 
  the Navy to report to Congress on the attributes used to analyze the    
  options of whether to refuel SSNs or to refuel and convert SSBNs and the
  distinctions among these attributes in the near-term and long-term. The 
  committee directs that the Navy submit this report with the fiscal year 
  2002 budget.                                                            
            Enhanced performance electric motor brush technology                   

      The budget request included $2.2 million in PE 63561N for enhanced   
   performance electric motor brush technology. Electric motors use        
   monolithic carbon brushes to transfer electricity from a stationary     
   stator to a rotating rotor. Carbon brushes wear relatively quickly and  
   must be frequently inspected and replaced. A Navy-funded small business 
   innovative research (SBIR) project demonstrated that fiber metal brushes
   provide significant wear and survivability improvements compared to     
   carbon brushes. Fiber metal electric motor brushes have the potential to
   significantly reduce total ownership costs of ships and increase the    
   survivability and operational reliability of electric motors.           
      The committee recommends an increase of $2.0 million in PE 63561N for
   shock and vibration qualification and completion of design and testing  
   of enhanced performance electric motor brush technology.                
            Submarine composite sail                                               

      The budget request included no funding for development of a submarine
   sail made from composite materials. Preliminary studies indicate that a 
   submarine sail with areas fabricated from composite materials may       
   provide enhanced war fighting capabilities. In addition, the composite  
   sail may provide lower weight and life-cycle costs for submarines. A    
   composite sail is consistent with the technology insertion approach of  
   the Virginia-class submarine program. The committee recommends an       
   increase of $2.5 million in PE 63561N for development of an advanced    
   submarine composite sail.                                               

            Joint command and control ship                                         

      The budget request included $30.8 million in PE 63564N to continue   
   feasibility studies for the joint command and control ship (JCC(X)). The
   request is an increase of $14.1 million over the amount projected for   
   the effort when the Administration submitted the fiscal year 2000 budget
   request. Congress authorized and appropriated $11.9 million for this    
   program in fiscal year 2000.                                            
      The analysis of alternatives for the joint command and control ship  
   mission is scheduled for completion in fiscal year 2001 and will be     
   followed by the development of an operational requirements document.    
   When the fiscal year 2001 request for JCC(X) is added to the amount     
   included for the same effort in fiscal year 2000, the total is $42.7    
   million. However, the Navy required less than $26.3 million for analysis
   of alternatives and to commence the competition for the ADC(X)-class    
   ship. These efforts for the ADC(X) should be similar in complexity to   
   the JCC(X) effort.                                                      
      Therefore, the committee recommends a decrease of $16.4 million in PE
   63564N to bring the research and development for JCC(X) in line with the
   planning for a ship of similar complexity in the study phase of         
   analysis.                                                               
            Shipboard simulators for Marine Corps operations                       

      The budget request included no funding for analysis of shipboard     
   Marine Corps operational simulator technology. The committee is aware of
   advances made in training simulation technology and the potential that  
   training and rehearsal planning simulators have in supporting Marines   
   deployed at sea. It is clear that technology exists to provide shipboard
   simulators for many of the expeditionary missions embarked Marines will 
   have to execute. As these simulators will allow Marines an opportunity  
   to train to the fullest extent possible while in transit, the committee 
   believes it is time to explore the availability and applicability of    
   both existing and new training simulators to meet Marine Corps          
   requirements.                                                           
      Therefore, the committee recommends an increase of $20.0 million in  
   PE 63564N to initiate a program to provide enhanced shipboard           
   operational training simulators on amphibious ships for embarked        
   Marines. The committee directs the Secretary of the Navy to provide a   
   report, no later than March 1, 2001, that provides the following:       
       (1) an assessment of Marine Corps training requirements, plans to   
   enhance future training opportunities, candidate systems that could     
   provide both individual and collective training simulators to enhance   
   the warfighting ability of deployed Marines, and an assessment of       
   existing training simulators available for Marines afloat;              
       (2) a program to develop and field additional simulation            
   capabilities beyond those currently available; and                      
       (3) plans for obligating the funding provided, and future program   
   adjustments necessary to support the fielding of new training simulation
   systems.                                                                
            Navy common command and decision system                                

      The budget request did not include funding for a common command and  
   decision system. The common command and decision system development is a
   pre-planned product improvement (P3I) to the AEGIS Weapon System and the
   Mk 2 Ship Self-Defense System (SSDS). The improvement would replace the 
   command and decision capability presently in these systems with a common
   computer architecture.                                                  
   This effort will reduce future life-cycle costs by:                     

    (1) reducing the number of computer programs that must be maintained;  

       (2) enabling the Navy to field new or modified warfighting          
   capability much more quickly and at a lower cost; and                   
       (3) improving warfighting capability by eliminating the redundant   
   and conflicting processing now inherent in these systems.               
      Therefore, the committee recommends an increase of $10.0 million in  
   PE 63582N for continuation and completion of small business innovative  
   research (SBIR) project for the common command and decision system.     
            Advanced amphibious assault vehicle                                    

      The budget request included $138.0 million for research and          
   development efforts associated with Marine Corps assault vehicles. The  
   committee has noted with great interest progress made to date in the    
   ongoing evaluation of the advanced amphibious assault vehicle (AAAV).   
   Early testing has yielded positive results and the committee looks      
   forward to the results of future testing as these new combat vehicles   
   continue in development. The committee notes an unfunded requirement for
   an additional AAAV which would be used to mature the vehicle's software 
   and accelerate reliability testing. The committee recommends an increase
   of $27.5 million to support efforts to accelerate the development and   
   testing of AAAV hardware and software, a total authorization of $165.5  
   million.                                                                
            Marine corps ground combat/support system                              


      The budget request included $23.2 million to support research and    
   development activities associated with Marine Corps ground combat and   
   combat support systems. The committee continues to be concerned about   
   inadequate levels of fire support available to support Marine Corps     
   operations ashore. The committee was interested to note a new effort by 
   the Marine Corps to explore the utility of the Army's high mobility     
   artillery rocket system (HIMARS) to meet some of their outstanding fire 
   support requirements. The committee believes this effort could result in
   a potential near-term solution for longer range general support         
   artillery requirements. The committee recommends an increase of $17.3   
   million to support the acquisition of two HIMARS systems and to support 
   testing and evaluation of the equipment and rocket systems, a total     
   authorization of $40.5 million.                                         
            Extended range guided munition                                         

      The budget request included $39.1 million in PE 63795N for           
   development of the extended range guided munition (ERGM). ERGM will     
   provide precision fire support for forces ashore from Naval gunfire     
   support ships. The budget request includes a two year delay (fiscal year
   2002 to fiscal 2004) in the initial operating capability for ERGM.      
   However, ERGM has demonstrated success in a number of technical issues  
   and is scheduled for flight tests in calendar year 2000. The program    
   appears to have regained momentum lost after moving the contractor's    
   program office to a new geographic area. This move resulted in having to
   fill key staff positions with new personnel.                            
      Because the development of ERGM technologies are key to providing    
   extended range fire support to the Marine Corps, the committee          
   recommends an increase of $10.0 million in PE 63795N to reduce the risk 
   in developing the advanced technologies required for ERGM.              
            Nonlethal research and technology development                          

      The budget request included $23.6 million for the joint nonlethal    
   weapons program. The committee recommends an total increase of $8.0     
   million in PE 63851M.                                                   
      The committee recommends an increase of $2.0 million in PE 63851M for
   research in nonlethal environmental effects and remediation. Both at    
   home and abroad, Americans, our allies, and innocent populations face an
   escalating danger of environmental threats and hazards: purposely from  
   rogue elements and inadvertently from the results of adjacent or        
   contiguous conflict. The committee finds current understanding of the   
   environmental effects of emerging military responses to asymmetric and  
   conventional threats and availability of protections from environmental 
   agents woefully inadequate. Protections for civilian populations and    
   their environs do not exist at all.                                     
      These additional funds should be applied to develop a program for    
   assessing, determining and optimizing the environmental effects and     
   remediative capabilities of emerging nonlethal weapons, as well as for  
   removing, destroying, neutralizing, or containing environmental hazards 
   once those hazards are deployed by adversaries. Only by assessment,     
   evaluation, and development of methodologies to limit the spread of     
   environmental damage from the fielding of emerging environmental threats
   and capabilities can new environmental consequences be avoided or       
   countered. The committee directs that all applicable competitive        
   procedures be used in the award of contracts or other agreements under  
   this program and that cost sharing be used to the maximum extent        
   practicable.                                                            
      The committee authorizes the remaining $6.0 million in additional    
   funds be allocated as follows: $2.0 million to continue the nonlethal   
   technology research innovation initiative; an increase of $1.0 million  
   for the neutralization of weapons of mass destruction sites; and $3.0   
   million for the nonlethal smart mortar casing demonstration. The        
   committee notes that all four of these items were included on the       
   Commandant's unfunded priority list.                                    
            Navy collaborative integrated information technology initiative        

      The committee continues to support the Navy collaborative integrated 
   information technology initiative (NAVCIITI) to continue development in 
   reliable secure communications and advanced information technologies.   
   The committee recommends an increase of $4.0 million in PE 64707N for   
   this purpose.                                                           
            Parametric airborne dipping sonar                                      

      The budget request included no funds for the parametric airborne     
   dipping sonar (PADS). The PADS program is the continuation of a small   
   business innovative research project that is designed to develop,       
   demonstrate, and evaluate the three dimensional, stabilized steerable   
   acoustic beams for mine avoidance and submarine detection in shallow    
   water. It is the only system that has the potential to provide airborne 
   active dipping sonars with antisubmarine and anti-mine capabilities for 
   shallow water littoral operations.                                      
      The committee is encouraged with test results that demonstrated      
   anti-mine detection capability superior to present and other planned    
   systems. In addition, Navy analysis and present plans include the       
   possibility of PADS being a shallow water adjunct to the Airborne Low   
   Frequency sonar (ALFS) system                                           

                    deployed on H 60 helicopters. Demonstrations of its capability
          with the H 60 aircraft have thus far been successful.                   
      The dual mine and submarine warfare potential of PADS makes it a     
   flexible and cost effective war fighting enhancement for two deficient  
   missions: mine location and diesel submarine detection. The Navy is     
   encouraged to continue the present testing and development of PADS. The 
   committee recommends an increase of $10.0 million in PE 64212N for the  
   continued development of PADS.                                          
            Multi-mission helicopter upgrade development                           

      The budget request included $69.9 million for the continued          
   development of the multi-mission helicopter upgrade. Although the Navy  
   had planned to integrate the advance threat infrared countermeasure     
   (ATIRCM) on the SH 60R, a fiscal year 1999 program and schedule         
   restructure has resulted in a funding shortfall to complete this        
   integration on time. The committee recommends an increase of $8.0       
   million in PE 64216N to continue to develop the integrated self-defense 
   suite for the SH 60R, a total authorization of $77.9 million.           
            Power node control centers                                             

      The budget request did not include funding for power node control    
   centers (PNCCs). PNCCs have the potential to integrate all of the       
   shipboard power functions, such as switching, conversion, distribution  
   and system operation and protection. This technology would support      
   present and future surface ship and submarine platforms as a building   
   block for increased use of electrical equipment. The committee          
   recommends an increase of $3.0 million to PE 64300N for PNCCs.          
            Ship manpower reduction initiative                                     

      The budget request included no funding for research and development  
   of technologies that could lead to manpower reductions resulting from   
   altering food service operations on ships. Committee visits to fleet    
   units verified that food service operations at sea are manpower         
   intensive in preparing and serving food, cleaning of food service areas,
   and maintaining food service equipment.                                 
      Civilian cruise ships have developed technologies and methods for    
   food service operations at sea that may be applicable to Navy ships. The
   Navy is investigating methods of reducing manpower required for food    
   service operations at sea, while maintaining the quality and freshness  
   of meals. These methods could lead to reduced manpower requirements in  
   fleet units. Therefore, the committee recommends an increase of $2.0    
   million in PE 64300N for advanced food service technology testing.      
            SPY 3 and volume search radars                                         

      The budget request included $69.6 million for development of the SPY 
   3 multi-function radar and $57.5 million for development of a new volume
   search radar (VSR) in PE 64300N. Both radars are being developed for    
   future surface ships including CVN 77 and DD 21.                        
      The goal of the SPY 3 is to provide an affordable, high performance  
   radar for ship defense. It will provide search, detect, track, and      
   weapon control functions that are now provided by two to three different
   radars.                                                                 
      The VSR will be required to complement the SPY 3 by providing long   
   range above the horizon surveillance and timely cuing to the SPY 3.     
   Development of these radars are keys to reducing life-cycle costs in the
   combat systems of future surface ships. The committee recommends an     
   increase of $8.0 million to PE 64300N for the development of the SPY 3  
   and VSR radars.                                                         
                       Acoustic rapid commercial-off-the-shelf insertion of multi- 
           purpose processor                                                       
      The budget request included $28.2 million for submarine sonar        
   improvement. The multi-purpose processor (MPP) is the result of a small 
   business innovative research (SBIR) initiative. The MPP provides a      
   capability to transport new, advanced software to existing hardware     
   installations more easily. It lies at the heart of the Navy's acoustic  
   rapid commercial-off-the-shelf (COTS) insertion (ARCI) program. This    
   program is designed to permit anti-submarine forces to regain acoustic  
   superiority over diesel and nuclear submarines of other navies.         
      The committee believes that the proven success of MPP and ARCI in    
   attack submarines should be applied to other platforms such as surface  
   ships, integrated undersea surveillance systems (IUSS), and maritime    
   patrol aircraft.                                                        
      Therefore, the committee recommends an increase of $15.0 million in  
   PE 64503N for continuation of the SBIR follow-on for advanced           
   development of MPP transportable software technology, technology        
   insertion, advanced processor software builds, and for providing MPP    
   units and training throughout the fleet and the Navy research and       
   development community.                                                  
            Submarine antenna technology improvement                               

      The budget request included $0.9 million in PE 64503N for submarine  
   communications antenna systems improvement. Submarine communications are
   vital to the evolving submarine littoral                                

                    operational concepts. The submarine's ability to remain       
          undetected while communicating depends on continuous development of     
          submarine antenna technology. The committee recommends an increase of   
          $5.0 million in PE 64503N for submarine antenna technology improvements.
            Submarine common architecture                                          

      The budget request included no funding in PE 64558N for migrating the
   Virginia-class submarine architecture to the Los Angeles-class          
   submarines. Systems engineering and integration to define and manage    
   common network interfaces enables low cost and low risk capability      
   improvements for the Los Angeles, Ohio, and Seawolf-classes' submarine  
   non-propulsion electronics and tactical integrated electronics systems. 
   Therfore, the committee recommends an increase of $5.0 million in PE    
   64558N for development of a submarine common architecture.              
            Advanced tactical software for submarines                              

      The budget request included $20.5 million in PE 64562N for software  
   upgrades to integrate improved submarine weapons capabilities.          
   Integration and installation planning for implementation of the Navy's  
   family of processors and displays, the AN/UYQ 70, will enable maximum   
   results from submarine combat systems software upgrades.                
      The committee recommends an increase of $4.0 million in PE 64562N for
   the system engineering necessary to integrate advanced tactical software
   into existing combat control systems for submarines.                    
            NULKA anti-ship missile decoy system                                   

      The budget request included $1.1 million for continued development   
   and testing of the NULKA active countermeasures decoy. Development of a 
   dual band, spatially distributed infrared signature payload is required 
   for defense against advanced heat-seeking anti-ship missiles (ASMs).    
      The NULKA decoy was developed to improve surface ship survivability  
   against ASMs. The ASM threat is growing rapidly. An estimated 100       
   nations possess more than 40,000 ASMs. These missiles pose a potent     
   threat to surface combatants and amphibious ships involved in littoral  
   operations.                                                             
      The committee recommends an increase of $2.1 million in PE 64755N for
   the development and operational testing of the dual band, spatially     
   distributed infrared signature payload upgrade.                         
            Navy single integrated human resources strategy                        

      The budget request included $15.3 million PE 65013N for information  
   technology development. The Navy has been designated the lead agency for
   development of software which will be used by all services to           
   consolidate pay and personnel reporting systems. However, there are a   
   number of service-specific systems which will provide information to the
   joint system that is under development. The Navy's single integrated    
   human resources strategy (SIHRS) will update legacy systems which will  
   provide input data to the joint personnel and pay system. SIHRS has the 
   potential to provide enhanced system performance, workload reduction,   
   and reduced cost.                                                       
      Therefore, the committee recommends an increase of $3.0 million in PE
   65013N for the business process re-engineering of Navy legacy systems   
   through the single integrated human resources strategy (SIHRS).         
            Marine Corps research university                                       

      The committee recommends an increase of $3.0 million in PE 65873M for
   the Marine Corps Research University. The Marine Corps Research         
   University, initiated by the Corps and competitively awarded to         
   Pennsylvania State University in May of 1999, was established to assist 
   the Marine Corps to enter the 21st Century. The rush of the information 
   age and increased operational requirements has taxed the capabilities of
   the Corps to remain on the cutting edge of a broad range of issues      
   routinely dealt with on a university campus. These and other factors led
   the Marine Corps to seek a relationship with a major multi-disciplinary 
   research university. Additional funds should be used to provide support 
   initiatives and critical research in areas, such as the new Marine Corps
   Integrated Logistics Concept (ILC), the Human Effects Advisory Panel    
   (HEAP) which supports non-lethal weapons development, the V 22          
   alternative metals study, the Probable Cause Detection System (PCDS) for
   Chem-Bio detection, continuing and distance education courses, and      
   supply-chain courses in support of logistics education.                 
            Reentry system applications program                                    

      The committee continues to support the reentry system applications   
   program (RSAP) as a sustaining technology program. The committee        
   recommends an increase of $2.0 million in PE 11221N to support the RSAP 
   program. Also, the committee directs that the Navy establish a separate 
   project category for the RSAP program within PE 11221N to ensure program
   continuity and execution.                                               
            Joint tactical combat training system                                  


      The budget request included $27.1 million for consolidated training  
   systems development. Of this amount, $7.8 million was for the joint     
   tactical combat training system (JTCTS). JTCTS is a joint Navy and Air  
   Force program to provide realistic combat training for joint air and sea
   forces through a combination of simulated and real targets, instrumented
   aircraft, and ship participants. The committee recommends an increase of
   $5.0 million in PE 24571N to accelerate hardware and software           
   integration of JTCTS, a total authorization of $32.1 million.           
            F 14 tactical reconnaissance                                           

      The budget request included $1.2 million for operational systems     
   development of the F 14 aircraft. The F 14 remains the only near-term   
   tactical reconnaissance aircraft organic to the carrier battle group.   
   Weather and battlefield conditions with smoke and dust continue to      
   hamper tactical reconnaissance platforms for both pre-strike            
   reconnaissance and battle damage assessment. Synthetic aperture radar   
   (SAR) systems offer a technical solution to all-weather, day and night  
   reconnaissance that is missing on our tactical reconnaissance platforms.
   The committee understands that there are potentially two                
   non-developmental SAR systems that could be demonstrated for suitability
   on strike fighter aircraft, neither of which is being procured for U.S. 
   tactical aircraft at this time. Recent experience in Operation Allied   
   Force in marginal weather again emphasized the need for all weather     
   reconnaissance and battle damage assessment capabilities to match the   
   all weather weapons now available. Because of the high military utility 
   provided to operational commanders, the committee recommends an increase
   of $9.0 million in PE 25667N to demonstrate the military utility of     
   non-developmental SAR reconnaissance systems, a total authorization of  
   $10.2 million.                                                          
            Software interoperability process tools                                

      The budget request included $0.9 million for joint command control   
   communications computer intelligence surveillance and reconnaissance    
   (C4ISR) operational architectures. The operational architectures will   
   provide the baseline to identify war fighter requirements, design and   
   structure assessments, and generate functional metrics.                 
      Software interoperability process tools prevent interoperability     
   problems by anticipating needs and shortfalls and implementing          
   solutions. The process tools have the potential to reduce software      
   development time lines by providing essential analysis that complements 
   the joint communications infrastructure synchronization initiative. The 
   committee recommends an increase of $2.0 million in PE 35118N for       
   software interoperability process tools.                                
            Satellite communications systems integration initiative                

      The budget request included no funding for the Space and Naval       
   Warfare Systems Command (SPAWAR) satellite communications (SATCOM)      
   systems integration (SSI) initiative. The SSI initiative is intended to 
   facilitate improved identification and evaluation of new and emerging   
   communication and network technologies in the area of SATCOM that can   
   distribute a wider diversity of information products. The committee     
   recommends an increase of $2.0 million in PE 35972N for the SSI         
   initiative.                                                             
            Distributed engineering plant                                          

      The budget request included $9.1 million in PE 38601N for modeling   
   and simulation activities including development and analysis. It is the 
   Navy's intention to continue a new focus for battle group pre-deployment
   hardware and software testing by leveraging shore based facility        
   capabilities. The linking of the shore based facilities with battle     
   group assets is referred to as a distributed engineering plant (DEP).   
   The DEP will be used to feedback information into the acquisition cycle 
   as well as to test software and hardware compatibility in both actual   
   and virtual environments.                                               
      The East Coast Command Control Communications and Computers          
   Intelligence Surveillance and Reconnaissance (C4ISR) Engineering Center 
   is a critical node in the DEP. Three of the C4ISR focus areas that will 
   improve the connectivity and responsiveness of the DEP are:             
       (1) fusing geographically distributed simulators using the high     
   level architecture to conduct end-to-end system interoperability        
   testing;                                                                
       (2) adapting visualization and computer-aided design tools to       
   shipboard C4ISR configuration management; and                           
       (3) integrating systems for distributed simulation/stimulation in   
   end-to-end Navy and joint testing.                                      
      The committee recommends an increase of $5.0 million in PE 38601N for
   the three C4ISR battle center focus areas described in the above        
   paragraph.                                                              

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            Laser processing tools                                                 

      The committee recommends an increase of $4.0 million in PE 62102F for
   the development and application of a high power, tunable, ultraviolet   
   laser processing tool for the fabrication of micro-engineered components
   and subsystems pertinent to aerospace applications. A high-average power
   free electron laser with ultraviolet capability would allow processing  
   materials and micro make micro- and nano-devices for space systems      
   applications. This research would also assist in enabling the Air       
   Force's ability to manufacture low-cost pico and nano-satellites, and   
   microsystems. The committee directs that all applicable competitive     
   procedures be used in the award of contracts or other agreements under  
   this program and that cost sharing be used to the maximum extent        
   practicable.                                                            
            Resin systems for Air Force applications                               

      The committee recommends an increase of $2.0 million in PE 62102F for
   the development and demonstration of high temperature resin systems for 
   Air Force engine applications. The committee understands that this      
   technology could reduce the cost of high temperature components in      
   turbine engines for fighter aircraft. The committee directs that cost   
   sharing be used to the maximum extent practicable.                      
            Thermal protection systems                                             

      The committee recommends an increase of $1.5 million in PE 62102F for
   the development of thermal protection systems for hypervelocity vehicles
   and atmospheric flight trajectories. The committee directs that all     
   applicable competitive procedures be used in the award of contracts or  
   other agreements under this program and that cost sharing be used to the
   maximum extent practicable.                                             
            Aeronautical research                                                  

      The committee remains gravely concerned with the failure of the Air  
   Force to properly fund critical aeronautical research. The committee    
   recommends an increase of $6.0 million in PE 62201F for advanced        
   concepts research and technology development for long term aeronautical 
   systems. The committee directs that all applicable competitive          
   procedures be used in the award of contracts or other agreements under  
   this program and that cost sharing be used to the maximum extent        
   practicable.                                                            
            Polyphenylene benzobisoxozole membrane fuel cell                       

      The committee recommends an increase of $5.0 million in PE 62203F for
   research in polyphenylene benzobisoxozole (PBO) films for fuel cell     
   membranes. The committee notes that fuel cells can provide a lower cost,
   lighter weight, higher performance and more energy efficient fuel cell. 
   The microporous PBO substrate may provide a component solution that will
   increase the strength and high temperature capabilities currently       
   inhibiting fuel cell technologies. The committee directs that all       
   applicable competitive procedures be used in the award of contracts or  
   other agreements under this program and that cost sharing be used to the
   maximum extent practicable.                                             
            Variable displacement vane pump                                        

      The committee recommends an increase of $3.0 million in PE 62203F to 
   complete the development and demonstration of the variable displacement 
   vane pump (VDVP) as an alternate engine fuel pump. The committee directs
   that cost sharing be used to the maximum extent practicable.            
            High frequency active auroral research                                 

      The committee recommends an increase of $12.0 million to continue    
   experimentation in the high frequency active auroral research program as
   follows: an increase of $7.0 million in PE 62601F and an increase of    
   $5.0 million in PE 63714D.                                              
            Space survivability                                                    

      The committee recommends an increase of $5.6 million in PE 62601F to 
   continue critical research in clutter mitigation, space weather effects 
   on spacecraft, ionospheric effects on global positioning systems (GPS), 
   communication and geolocation, and space environment distributed anomoly
   resolution sensor research.                                             
            Aluminum aerostructures                                                

      The committee recommends an increase of $3.0 million in PE 603112F   
   for the development and demonstration of methodology for producing      
   advanced aluminum aerostructures. This effort is critical for improved  
   afford ability, maintainability, and enhanced performance of current and
   future Air Force systems. The committee directs that all applicable     
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
            Hyperspectral research                                                 


      The committee recommends an increase of $6.0 million in PE 63203F to 
   complete the development of a multi-spectral synthetic battlespace      
   simulation capability to address the critical needs of the Air Force's  
   advanced air and space sensor technologies. The committee directs that  
   cost sharing be used to the maximum extent practicable.                 
            Fiber optical control technology                                       

      The committee recommends an increase of $2.0 million in PE 63205F for
   the development and demonstration of all optical control interface with 
   an electro-mechanical flight actuator. The committee understands this   
   technology has the potential to improve performance and survivability   
   while lowering operating costs for future Air Force flight vehicles. The
   committee directs that all applicable competitive procedures be used in 
   the award of contracts or other agreements under this program and that  
   cost sharing be used to the maximum extent practicable.                 
            Low cost launch technology                                             

      The committee continues to support the development of a range of     
   low-cost launch technologies, including the Scorpius concept. Therefore,
   the committee recommends an increase of $5.0 million in PE 63401F for   
   low cost launch technology development, including Scorpius.             
            Micro-satellite technology                                             

      The committee continues to support the Micro-Satellite Technology    
   program. The committee was disappointed that the Air Force Research     
   Laboratory was unable to complete preparations for the launch of the XSS
   10 micro-satellite with funds available in fiscal year 2000. Therefore, 
   the committee recommends a transfer of $5.0 million requested for the   
   Tech-Sat 21 program in PE 62601F to PE 63401F for an overall increase of
   $12.0 million in PE 63401F to complete work on and launch the XSS 10.   
            Miniature satellite threat reporting system                            

      The budget request included no funding for the Miniature Satellite   
   Threat Reporting System (MSTRS). The committee continues to support     
   MSTRS to develop the capability to protect satellites from uplink       
   jamming, interference, or intrusion. The committee also supports efforts
   to develop sensors capable of detecting laser threats. Therefore, the   
   committee recommends an increase of $5.0 million in PE 63401F for the   
   MSTRS program.                                                          
            Next generation composite launch vehicle payload fairings and shrouds  

      The committee supports the development of composite manufacturing and
   processing technologies for the next generation of payload fairings and 
   shrouds to improve the performance of U.S. space systems while reducing 
   overall production cost. The committee recommends an increase of $2.0   
   million in PE 63401F to support this effort.                            
            Solar orbital transfer vehicle                                         

      The committee has supported development of the solar orbital transfer
   vehicle (SOTV) technology program. The SOTV program combines thermionic 
   technology for electricity production and thermal propulsion. To        
   continue this effort, the committee recommends an increase of $5.0      
   million in PE 63401F.                                                   
            Space maneuver vehicle                                                 

      The committee continues to support the Air Force and National        
   Aeronautics and Space Administration (NASA) partnership to develop a    
   reusable upper stage vehicle. The committee supports the Air Force      
   effort to acquire a ``second tail number'' of NASA's X 37 as a Space    
   Maneuver Vehicle operational technology demonstrator (X 40B). Therefore,
   the committee recommends an increase of $15.0 million in PE 63401F to   
   support acquisition of the ``second tail number'' X 40B SMV             
   demonstrator.                                                           
            Upper stage flight experiment                                          

      The Air Force has developed a program to demonstrate advanced upper  
   stage technologies to lower the cost of space launch. To support the    
   launch of this experimental rocket motor in the near future, the        
   committee recommends an increase of $5.0 million in PE 63401F.          
            Space Based Laser program                                              

      The budget request included $137.7 million for the Space Based Laser 
   (SBL) program, including $63.2 million in the Air Force budget and $74.5
   million in the Ballistic Missile Defense Organization budget. Although  
   the Air Force and BMDO have structured a viable program to launch an SBL
   integrated flight experiment (IFX) in the fiscal year 2012 2014         
   timeframe, this program remains funding-constrained. Therefore, the     
   committee recommends an increase of $30.0 million in PE 63876F to       
   support acceleration of the IFX and its integrated test facility.       

            Airborne laser program                                                 

      The budget request included $148.6 million for the Airborne laser    
   (ABL) program. Although the committee has raised concerns regarding the 
   maturity of the ABL technology in the past, the committee is concerned  
   by the Air Force's decision to significantly reduce funding for the ABL 
   program in fiscal year 2001, and throughout the years of the Future     
   Years Defense Program. The committee notes that the Air Force has       
   implemented a range of risk reduction measures that the committee had   
   previously directed, including efforts in the area of atmospheric       
   compensation being conducted at the North Oscura Peak test facility in  
   New Mexico. As required by the National Defense Authorization Act of    
   Fiscal Year 2000, the Air Force reviewed progress in five specific risk 
   reduction areas. Pursuant to this requirement, the Secretary of the Air 
   Force reported to Congress on December 6, 1999, that ``[e]xcellent      
   progress has been made in all five areas,'' and that ``[t]he ABL Program
   continues to meet or exceed every technical and programmatic milestone  
   and remains on-cost and on-schedule.''                                  
      In light of this positive report, the committee does not understand  
   or support the Air Force's decision to significantly reduce the ABL     
   program funding. This cut jeopardizes the ability to complete the       
   initial ABL test aircraft in a timely manner. The first test aircraft is
   critical to determining whether all necessary ABL technologies are ready
   for production. The committee supports rapid demonstration of these key 
   technologies and thus strongly opposes the delay in the completion of   
   the Program Definition and Risk Reduction (PDRR) aircraft. Therefore,   
   the committee recommends an increase of $92.4 million in PE 63319F, the 
   amount needed in fiscal year 2001 to keep the PDRR aircraft on schedule 
   to conduct the first lethal demonstration during fiscal year 2003. The  
   committee directs the Secretary of the Air Force to spend these         
   additional fiscal year 2001 funds consistent with the fiscal year 2000  
   program plan. Absent the development of technical problems, the ABL     
   program should remain on schedule for a lethal demonstration in fiscal  
   year 2003 and initial operational capability in fiscal year 2007.       
            Rocket systems launch program                                          

      The committee continues to support the Rocket Systems Launch Program 
   (RSLP), which utilizes excess strategic missile rocket motors to launch 
   small payloads. The committee recommends an increase of $19.2 million in
   PE 63851F to demonstrate quick reaction launch capabilities, Global     
   Positioning System range safety, and common strategic missile           
   technology.                                                             
            Wideband gapfiller military satellite communications                   

      The budget request included $92.3 million in research, development,  
   test and evaluation (RDT&E), Air Force, for the Wideband Gapfiller      
   satellite communications system (WGS). The committee notes that, as a   
   result of the Department of Defense policy to fully fund satellites with
   procurement funding, the fiscal year 2001 RDT&E budget request for WGS  
   was increased by $34.1 million over fiscal year 2000 projections. The   
   committee recommends a decrease of $18.0 million in PE 63854F for WGS   
   satellite design.                                                       
            B 2 advanced technology bomber                                         

      The budget request included $48.3 million for continued development  
   of the B 2 advanced technology bomber. The Air Force unfunded           
   requirements list included a request for additional risk reduction for  
   connectivity. The committee recommends an increase of $5.0 million in   
   PE64240F for the connectivity risk reduction for the B 2 advanced       
   technology bomber.                                                      
      The budget request also included $17.8 million for the operational   
   system development of military satellite communications (MILSATCOM)     
   terminals. The committee recommends an increase of $3.0 million in      
   PE33601F for risk reduction efforts in MILSATCOM terminals specific to  
   integration with the B 2 advanced technology bomber.                    
            Milstar satellite communications                                       

      The budget request included $236.8 million for Milstar satellite     
   communications research, development, test and evaluation, including an 
   increase of $11.0 million over fiscal year 2000 budget projections for  
   satellite engineering requirements. The committee believes that this    
   growth is not fully justified. Therefore, the committee recommends a    
   decrease of $4.0 million in PE 64479F.                                  
            F 15E squadrons                                                        

      The budget request included $61.3 million for continued operational  
   systems development of the F 15 aircraft. The budget request included no
   funding for the integration of the BOL countermeasure system on the F 15
   series of aircraft, although it was included on the Air Force unfunded  
   priorities list. Integration of this system will dramatically increase  
   the chaff and flare capacity of the F 15, giving it preemptive          
   expendable capability. The committee recommends an increase of $7.6     
   million in PE 27134F for BOL countermeasure system integration on the F 
   15, a total authorization of $68.9 million.                             
            Hyperspectral system development                                       


      The committee supports research and development of hyperspectral     
   technology for use in high altitude and space applications. Therefore,  
   the committee recommends an increase of $2.0 million in PE 27247F to    
   support these efforts.                                                  
            Extended range cruise missile                                          

      The budget request included no funding for the extended range cruise 
   missile (ERCM). Section 132 of the National Defense Authorization Act   
   for Fiscal Year 2000 (Public Law 106 65) required the Secretary of the  
   Air Force to submit a report on replacement options for the conventional
   air-launched cruise missile (CALCM). The CALCM has become the Air Force 
   weapon of choice in recent conflicts, and as such, its inventory has    
   been seriously depleted. This report defined near-term, mid-term, and   
   long-term solutions to address this required capability. The near-term  
   solution, which is ongoing and funded, is to convert the remaining,     
   available air-launched cruise missiles (ALCMs) to CALCMs. The mid-term  
   solution, which is not funded in the fiscal year 2001 budget request, is
   to begin a two to three-year ERCM development to upgrade an existing    
   cruise missile design. This development will be followed by a four-year 
   production run to build up the cruise missile stockpile. Funding for the
   initiation of this development is very high on the Air Force unfunded   
   priorities list. The committee recommends an increase of $86.1 million  
   in PE 27323F to commence ERCM development.                              
            Joint surveillance and target attack radar system                      

      The budget request included $144.1 million for operational system    
   development of the E 8 joint surveillance and target attack radar system
   (JSTARS) aircraft and weapons system. The global access, navigation, and
   safety strategic management plan, published in fiscal year 1999,        
   included a requirement for installation of global air traffic management
   (GATM) equipment in the E 8 JSTARS aircraft. This modification will be  
   required to maintain current access to oceanic and continental routes in
   Europe, ensuring that missions can be safely and effectively flown. The 
   Air Force has included development of GATM modifications for the E 8 on 
   its unfunded requirements list. The committee recommends an increase of 
   $7.2 million in PE 27581F for development and integration of GATM on the
   JSTARS aircraft, a total authorization of $151.3 million.               
            Lighthouse cyber security                                              

      The budget request included $7.2 million for Air Force information   
   system security research, development, test and evaluation. The         
   committee supports the Lighthouse Cyber Security Program managed by the 
   Air Force, which focuses on computer system vulnerabilities and threats,
   and provides guidance and corrective courses of action through the use  
   of modeling and prototype tools. The committee recommends an increase of
   $5.0 million in PE 33140F to support the Lighthouse Cyber Security      
   Program.                                                                
            Dragon U 2                                                             

      The budget request included $27.5 million in PE 35202F for           
   operational systems development of the U 2 aircraft. The budget request 
   included no funding for the continued development of the Senior Year    
   electro-optic reconnaissance system (SYERS). The committee recommends an
   increase of $6.0 million in PE 35202F for further SYERS development, a  
   total authorization of $33.5 million.                                   

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            Advanced photonic composites research                                  

      The budget request includes $90.1 million for defense research       
   sciences (PE 61101E). The committee recommends that, of the funds, $3.0 
   million be used to extend the Advanced Photonic Composites Research     
   Program in the Defense Advanced Research Projects Agency. Photonic      
   composite materials are complex material systems whose key optical      
   property is described by a periodic function. The optical property      
   typically is an index of refraction or some non-linear optical behavior.
   Due to their complex three dimensional nature, photonic composite       
   materials are very difficult to produce. However, these materials offer 
   great promise for the development of photonic devices with greatly      
   improved performance due to their inherent ability to substantially     
   reduce the volume of material required to achieve certain optical       
   effects.                                                                
            Infrasound detection capability basic research                         

      The committee recommends an increase of $1.5 million in PE 61103D for
   basic research in the Comprehensive Nuclear Test Ban Treaty             
   verification. The additional funds will be used to develop and evaluate 
   infrasound sensors and conduct studies and analysis for use in          
   developing more effective and efficient infrasound detection capability 
   to support the detection of nuclear explosions on a global basis. The   
   committee directs that all applicable competitive procedures be used in 
   the award of contracts or other agreements under this program and that  
   cost sharing be used to the maximum extent practicable.                 
            Personnel research initiative                                          

      The committee recommends an increase of $4.0 million in PE 61103D for
   the defense personnel research initiative. The additional funds will    
   support basic research efforts in manpower and personnel including      
   operations research, economics, cognitive and experimental psychology   
   with the objective of reducing attrition, increasing retention, and     
   ensuring an efficient allocation of military forces.                    
            Defense experimental program to stimulate competitive research         

      The budget request includes $9.9 million for the Defense Experimental
   Program to Stimulate Competitive Research (DEPSCoR) to broaden the      
   infrastructure for universities that support national defense research. 
   The research conducted is peer reviewed and competitively awarded. The  
   committee recommends an increase of $15.0 million in PE 61114D to       
   continue efforts in this merit-based program.                           
            Chemical and biological defense basic research                         

      The budget request included $33.2 million in PE 61384BP for chemical 
   and biological defense basic research. The goal of this program is to   
   improve the operational performance of the military services by         
   concentrated research in areas that can contribute to defense against   
   chemical and biological agents. The committee recommends an increase of 
   $5.0 million in PE 61384BP for basic research, to be distributed as     
   follows: $2.0 million for optical computing chemical agent detection;   
   and $3.0 million for continued research in thin film technology         
   development.                                                            
                       Ballistic Missile Defense Organization funding and          
           programmatic guidance                                                   
      The budget request included approximately $4.9 billion for the       
   Ballistic Missile Defense Organization (BMDO), including Procurement,   
   Research, Development, Test and Evaluation (RDT&E) and military         
   construction. The committee's recommended changes to the budget request 
   for BMDO procurement and RDT&E are provided below. The committee's      
   recommendations for BMDO military construction are provided elsewhere in
   this report.                                                            
                                     SUPPORT TECHNOLOGY                           

      The committee continues to support BMDO's efforts in the area of wide
   bandgap electronics materials and devices. To support this important    
   technology effort, the committee recommends an increase of $2.0 million 
   in PE 62173C and an increase of $10.0 million in PE 63173C.             
      The committee continues to support the Atmospheric Interceptor       
   Technology (AIT) program to develop advanced interceptor kill vehicle   
   technologies. The committee recommends an increase of $15.0 million in  
   PE 63173C to support the AIT program.                                   
      The committee believes that BMDO should immediately begin to define  
   and develop the necessary technology for the Navy Theater Wide (NTW)    
   Standard Missile 3 (SM 3) block II kill vehicle. The committee          
   recommends an increase of $10.0 million in PE 62173C to support the     
   development of advanced NTW kill vehicle concepts employing light-weight
   non-toxic pumped-propulsion and active/passive sensor technology.       
      The committee has supported BMDO's efforts to evaluate innovative and
   low-cost launch technologies. The committee recommends an increase of   
   $3.0 million in PE 63173C to support low cost launch technology,        
   including the Excalibur concept.                                        
      The committee recommends an increase of $9.0 million in PE 63173C to 
   support the Magdalena Ridge Observatory.                                

                                  NATIONAL MISSILE DEFENSE                        

      The budget request included approximately $1.8 billion for the       
   National Missile Defense (NMD) program, including Procurement and RDT&E.
   The committee notes that the Director of BMDO has identified an         
   additional $300.0 million that could be utilized to further enhance risk
   reduction and testing activities. Of this amount, the Director          
   identified $129.0 million as critical risk reduction unfunded           
   requirements. Therefore, the committee recommends an increase of $129.0 
   million in PE 63871C for NMD risk reduction.                            
      The committee understands that BMDO is considering entering into a   
   competition for the NMD X-band ground-based radars (GBR) that would be  
   deployed following the initial deployment of the Alaska GBR site. The   
   committee directs the Director of BMDO to conduct an analysis of the    
   advantages and disadvantages of a competitive approach to follow-on GBR 
   development and deployment, and provide a report to the congressional   
   defense committees by April 1, 2001.                                    
                                      NAVY THEATER WIDE                           

      The committee continues to support the NTW program and urges the     
   Secretary of Defense to accelerate this important program to the extent 
   permitted by the pace of technological development. The committee       
   recommends an increase of $60.0 million in PE 63868C to accelerate the  
   NTW SM 3 interceptor.                                                   
                                  BMD TECHNICAL OPERATIONS                        

      The committee continues to support the Army Space and Missile Defense
   Command's Advanced Research Center (ARC). The ARC provides a valuable   
   tool in support of both theater and national missile defense programs.  
   The committee recommends an increase of $6.5 million in PE 63874C in    
   support of the ARC.                                                     
      The committee supports BMDO's efforts to improve missile defense     
   technologies and capabilities against advanced theater ballistic missile
   threats. One promising area of research is in optical data and sensor   
   fusion for detection and discrimination of advanced threats, missile    
   plumes, and penetration aids using advanced image processing and optical
   discrimination algorithms. The committee recommends an increase of $3.0 
   million in PE 63874C for BMDO to continue this work.                    
                             INTERNATIONAL COOPERATIVE PROGRAMS                   

      The budget request included $117.0 million for BMDO International    
   Cooperative Programs, including $81.2 million for Israeli Cooperative   
   Projects and $35.8 million for the Russian-American Observation         
   Satellites (RAMOS) program.                                             
      The committee is pleased that the budget request includes funding to 
   support continued acquisition of the Arrow Third Battery. The committee 
   recommends an increase of $8.0 million in PE 63875C to initiate the     
   Arrow System Improvement Plan.                                          
      The committee notes that the Department of Defense has revised the   
   Russian-American Observation Satellites (RAMOS) program from its fiscal 
   year 2000 approach to a restructured two-satellite program. The         
   committee understands that this revised program is intended to improve  
   the prospects for technical success with a greater focus on defense     
   objectives, while also protecting sensitive U.S. technology. Under the  
   revised proposal, Russia would build, launch and operate two essentially
   identical satellites that carry U.S.-built infrared sensors. The U.S. is
   attempting to devise a plan to place these sensors in tamper-resistant  
   containers and have monitors to ensure proper handling to preclude      
   unauthorized technology transfer.                                       
      Although this revised two-satellite program is a significant         
   improvement over the previous two-satellite RAMOS concept, the committee
   continues to have serious concerns. The committee is concerned that, one
   year after the U.S. Department of Defense (DOD) determined that RAMOS   
   was of marginal benefit to BMDO, the Department now proposes to spend   
   approximately $350.0 million on the development and production of two   
   satellites over the Future Years Defense Program (FYDP), and that this  
   entire amount is to be paid for by DOD. In contrast, BMDO's core        
   technology program is widely recognized to be under-funded throughout   
   the years of the FYDP. The committee also is not convinced that the     
   United States can provide infrared sensors for integration into         
   Russian-built and launched satellites without compromising this         
   technology or otherwise providing significant technical assistance to   
   Russia to accommodate the integration and proper functioning of the     
   U.S.-built sensors. In light of these concerns, the committee directs   
   the Secretary of Defense to restore the RAMOS program to the approach   
   presented to Congress in the fiscal year 2000 budget request, which was 
   approved by Congress in the National Defense Authorization Act for      
   Fiscal Year 2000. Consistent with this approach, the committee          
   recommends a reduction of $20.0 million in PE 63875C for the RAMOS      
   program.                                                                
                                         BMD TARGETS                              

      The committee continues to support BMDO's effort to develop a theater
   missile defense surrogate target based on a liquid fuel engine. The     
   committee recommends an increase of $5.0 million in PE 63872C to        
   continue this effort.                                                   

            Bio-defense research                                                   

      The budget request included $18.6 million for PE 62234D, the Lincoln 
   Laboratory research program. This reflects a 10 percent decrease that   
   has not been explained or substantiated by the Department of Defense.   
   The reduction included in the budget request will have a significant    
   impact on the advanced bio-defense development activities, a project    
   that the Department has extolled as ``best in its class''. Performance  
   was rated ``beyond expectation''. The effort is to develop an integrated
   bio agent detection, identification, and warning sensor system that is  
   smaller, lighter and quicker; the actual target is an integrated system 
   the size of a mailbox.                                                  
      The committee recommends an increase of $2.1 million in PE 62234D to 
   continue the development and demonstration of this bio- defense         
   technology in the vital national security interest.                     
            Hybrid sensor suite                                                    

      The budget request included no funding in PE 62384BP for a           
   lightweight, man-portable hybrid sensor suite using thin film           
   technology. The committee notes the requirement for a low-power,        
   inexpensive chemical agent detector. Therefore, The committee recommends
   an increase of $8.0 million in PE 62384BP for a hybrid sensor suite     
   using thin-film technology.                                             
            High definition systems                                                

      The committee recommends an increase of $7.0 million in PE 62708E for
   the Defense Advanced Research Projects Agency's high definition system  
   program. The committee directs that all applicable competitive          
   procedures be used in the award of contracts or other agreements under  
   this program and that no projects be pursued without an industry cost   
   share.                                                                  
            Three dimensional structures research                                  

      The committee recommends an increase of $3.0 million in PE 62712E for
   the development, optimization and demonstration of fabrication processes
   for highly integrated three dimensional microcircuits. The committee    
   directs that all applicable competitive procedures be used in the award 
   of contracts or other agreements under this program and that cost       
   sharing be used to the maximum extent practicable.                      
            Biological agent sensor technologies                                   

      The budget request included $300,000 for combating terrorism         
   technology support to continue to develop aerogel and fiber optic based 
   technologies for chemical and biological collector and detector         
   prototypes that meet the requirements of multiple federal agencies. The 
   committee notes that since calendar year 1997, the Defense Advanced     
   Research Projects Agency (DARPA) has provided an estimated $2.9 million 
   for technology base development of aerogel-based chemical and biological
   sample collector and sensor systems. The research efforts of DARPA      
   indicate that aerogel properties can be tailored to meet or exceed the  
   requirements of existing and future collector and sensor platforms.     
   Therefore, the committee recommends an increase of $5.0 million in PE   
   63122D to transition the continued development of aerogel and coupled   
   fiber optic-based biological sensor technologies from the DARPA         
   Biological Defense Program to the Technical Support Working Group       
   support program.                                                        
            Blast mitigation testing                                               

      The committee recommends an increase of $3.0 million in PE 63122D,   
   Combating Terrorism Technology Support, to accelerate the testing and   
   certification of blast mitigation effects technology. These funds would 
   allow the Department of Defense to accelerate the testing and analysis  
   of building components and improve building design standards and        
   guidelines for use in new construction applications.                    
            Facial recognition access control technology                           

      The committee recommends an increase of $2.0 million in PE 63122D,   
   Combating Terrorism Technology Support, for facial recognition access   
   control technology. These funds will be used to further the Department  
   of Defense's efforts to develop, test and evaluate this surveillance,   
   identification, and access control technology, and allow prototype      
   development and testing.                                                
            Chemical and Biological Incident Response Force detector technologies  

      The budget request included no funding in PE 63384BP for the Chemical
   and Biological Individual Sampler (CBIS) or the Small Unit Biological   
   Detector (SUBD) programs. The committee notes the continuing requirement
   of the Marine Corps for chemical and biological detectors and analyzers 
   in conjunction with the Chemical and Biological Incident Response Force 
   capability requirements. The committee continues to support CBIS and    
   SUBD research and development initiatives and recommends an increase in 
   PE 63384BP of $11.2 million, to be distributed as follows: $2.7 million 
   for the CBIS program to carry forward multiple, mature technologies and 
   allow for operational assessments by the Joint Forces Command; and $8.5 
   million for the SUBD program to                                         

          evaluate component detection sensitivity, and to fabricate prototypes.  

            Consequence Management Information System                              

      The budget request included no funding in PE 63384BP for a           
   Consequence Management Information System. The committee notes the      
   requirement for a program to enable civilian and military incident      
   responders, such as Weapons of Mass Destruction Civil Support Teams, to 
   access and share selected information for operational planning and      
   execution. The committee supports this initiative and recommends an     
   increase of $6.4 million in PE 63384BP for a Consequence Management     
   Information System.                                                     
            Reactive materials                                                     

      The budget request included no funding in PE 63384BP for the         
   evaluation of advanced materials that contain reactive technologies.    
   These technologies have demonstrated the potential to increase          
   protection to the warfighter when incorporated into clothing, tentage,  
   and shelters for defense against chemical and biological agents. The    
   committee recommends an increase of $3.5 million in PE 63384BP for the  
   evaluation of advanced materials that contain reactive technologies.    
            Complex systems design                                                 

      The committee recommends an increase of $5.0 million in PE 63704D to 
   continue the development of the multi-view data standards for integrated
   digital environment for complex systems design. The Department of       
   Defense currently employs a number of computer-based synthesis and      
   analysis tolls that advance all phases of the life cycle of complex     
   defense systems. From concept design, through development and           
   production, and throughout life cycle ownership of a complex system,    
   these tools have dramatically improved the efficiency and reduced the   
   costs of each discrete phase. However, since each tool employs its own  
   unique data representation and data storage mechanism, there exists,    
   with few exceptions, no substantial interoperability between tools at   
   the semantic level for interchange of similar data structures. This     
   inability to collaborate results in a development process that remains  
   largely manual, with no means for even semi-automated configuration     
   management of the total project design. Congress has expressed strong   
   support of this effort. The committee requires the Department to conduct
   a review of the project and report back to congressional defense        
   committees on the Department's plan to implement this technology once it
   is completed.                                                           
            Competitive sustainment initiative                                     

      The committee recommends an increase of $8.0 million in PE 62712S for
   the competitive sustainment initiative. This initiative provides the    
   foundation for forging new, more cooperative links between the          
   Department of Defense and the supply base to eliminate waste and improve
   the velocity of logistics. The committee directs that all applicable    
   competitive procedures be used in the award of contracts or other       
   agreements under this program and that cost sharing be used to the      
   maximum extent practicable.                                             
                       Weapons of Mass Destruction (WMD) Attack-Effects-Response   
           Assessment capability at U.S. Joint Forces Command (USJFCOM)            
      The committee recommends an increase of $5.0 million in PE 63832D,   
   Joint Wargaming Simulation Management Office, for the development and   
   installation of a Weapon of Mass Destruction Attack-Effects-Response    
   Assessment capability for the Joint Task Force-Civil Support that was   
   recently established as part of the U.S. Joint Forces Command (USJFCOM).
   This program will allow USJFCOM, along with government agencies, state, 
   and local authorities, to model chemical, biological or radiological    
   incidents from the initial detection of the attack and initial effects  
   through the medical response to the incident in an integrated,          
   interoperable manner.                                                   
            Integrated data environment technology                                 

      The committee recommends an increase of $2.0 million in PE 63736D for
   the continuous acquisition life-cycle support initiative's integrated   
   data environment program. This technology addresses the critical issues 
   of life-cycle costs and logistic support for the warfighter. The        
   committee directs that cost sharing for this project be used to the     
   maximum extent practicable.                                             
                       Demonstration/validation of technology for the remediation  
           of unexploded ordnance at active, inactive, closing, transferred, and   
           transferring ranges                                                     
      The budget request included $9.0 million for research, development,  
   testing, and evaluation (RDT&E) related to the environmental remediation
   of unexploded ordnance (UXO), $5.0 million for development of UXO       
   technology through the Strategic Environmental Research and Development 
   Program (SERDP)(PE 63716D) and $4.0 million for demonstration/validation
   through the Environmental Security Technology Certification Program     
   (ESTCP)(PE 63851D). The committee recommends an increase of             

                    $10.0 million in ESTCP (PE 63851D) for                        
          demonstration/validation of UXO remediation technology.                 
      The committee has previously expressed concern (S. Rept. 106 50)     
   about the lack of focus or support in the Department of Defense (DOD)   
   RDT&E base for UXO remediation. Based on information provided to the    
   committee, it is evident that increased emphasis in this area is        
   absolutely essential, particularly for demonstration/validation of      
   technology that has been developed through SERDP and other DOD programs.
   It is the committee's expectation that the increased funding will be    
   used for the demonstration/validation of viable, cost effective         
   solutions that will help the military departments meet the extraordinary
   challenge of UXO remediation at active, inactive, closed, transferred,  
   and transferring ranges. Moreover, the committee intends that ESTCP     
   shall establish performance measures for UXO remediation technologies in
   order to determine the resulting level of implementation within the DOD.
            Next generation anthrax vaccine                                        

      The budget request included $400,000 in PE 64384BP for a second      
   generation, recombinant vaccine against the biological warfare agent    
   anthrax. The committee recommends an increase of $2.1 million in PE     
   64384BP for continued research and development of a recombinant vaccine 
   against the biological warfare agent anthrax.                           
      The U.S. Army Medical Research Institute of Infectious Diseases      
   (USAMRIID) developed a second generation, recombinant vaccine against   
   the biological warfare agent anthrax in 1995. The committee notes that  
   the vaccine currently utilized by the Department of Defense in the      
   Anthrax Vaccine Immunization Program (AVIP) was licensed in 1970 and has
   been certified as safe and effective by the Food and Drug Administration
   (FDA). The committee is concerned that there is inadequate support for  
   continued research and development of a second generation, recombinant  
   vaccine against the biological agent anthrax and provides additional    
   funding for this effort.                                                
            Remote Ordnance Neutralization System                                  

      The budget request included $11.6 million for the Joint Robotics     
   Program, PE 64709D. The committee recommends an increase of $1.6 million
   in PE 64709D to develop and test improvements to the Remote Ordnance    
   Neutralization System (RONS). These funds would allow the Department of 
   Defense to upgrade RONS to a digital system and improve operator        
   interface capabilities.                                                 
            Cyber attack sensing and warning                                       

      The committee is aware of efforts being undertaken by the Department 
   of Defense to develop technologies to detect and respond to cyber       
   attacks on the defense information infrastructure. To support the       
   development and deployment of such sensors, the committee recommends an 
   increase of $20.0 million in PE 33140G.                                 
            Information Operations Technology Center                               

      The committee strongly supports the efforts by the Information       
   Operations Technology Center (IOTC) to develop information              
   operations/information warfare tools. The committee recommends an       
   increase of $5.0 million in PE 33140G to support these important efforts
   by the IOTC.                                                            
            Trusted RUBIX                                                          

      The budget request included no funding to complete evaluation of the 
   Trusted RUBIX multilevel security database guard. The committee         
   recommends an increase of $1.8 million in PE 33140G for evaluation and  
   certification of the Trusted RUBIX information system security          
   technology for interface with multilevel security software.             
            Virtual worlds initiative                                              

      The U.S. Special Operations Command has developed a program for      
   integrating various sources of imagery and other information into       
   three-dimensional products to support special operations forces. In     
   order to support development of a scene generation database and other   
   elements of the Virtual Worlds Initiative, the committee recommends an  
   increase of $2.0 million in PE 34210BB.                                 
            Intelligent spatial technologies for smart mapping systems             

      The committee recognizes the importance and technological challenges 
   involved in developing intelligent spatial technologies for military    
   applications. Therefore, the committee recommends an increase of $2.0   
   million in the advanced research and development component of PE 35102BQ
   for intelligent spatial technology development in spatio-temporal       
   database research for smart maps.                                       
            Joint Mapping Tool Kit                                                 

      The committee continues to support the development of the Joint      
   Mapping Tool Kit (JMTK) by the National Imagery and Mapping Agency      
   (NIMA). The committee recommends an increase of $5.0                    

                    million in PE 35102BQ for continued development of the JMTK   
          and the NIMA viewer.                                                    
            Information assurance testbed                                          

      The budget request included no funding to support the Information    
   Assurance Testbed. Section 1043 of the National Defense Authorization   
   Act for Fiscal Year 2000 (Public Law 106 65) established an Information 
   Assurance Testbed within the Department of Defense (DOD) to facilitate  
   simulations, wargames, exercises and experiments in the area of         
   information assurance and information warfare. The Testbed was also     
   intended to provide an organizational structure with which DOD could    
   interact with other departments and agencies and with the private sector
   on matters related to cyber security and cyber threats. The committee   
   continues to support this important effort. Therefore, the committee    
   recommends an increase of $5.0 million in PE 35190D to support the      
   Testbed.                                                                
                       Joint course of action analysis and targeting support for   
           information operations                                                  
      The committee supports the Secretary of Defense's efforts to         
   coordinate and de-conflict activities in the Department of Defense in   
   the area of information operations (IO). The joint course of action     
   analysis and targeting support for IO (JCOATS IO) program is intended to
   establish a centralized process for IO-based capabilities. To support   
   this important initiative, the committee recommends an increase of $5.0 
   million in PE 35190D.                                                   
            Advanced lightweight grenade launcher                                  

      The budget request included $87.1 million for Special Operations     
   Forces (SOF) Operational Enhancements. The committee recommends an      
   increase of $5.6 million in SOF Operational Force Enhancements (PE      
   1160408BB) to fund the continued research and development of the        
   advanced lightweight grenade launcher.                                  
            Management reform for Department of Defense test and evaluation centers

      Congress has addressed the issue of management reform for Department 
   of Defense test and evaluation centers twice in the last two years.     
      Section 907 of the Strom Thurmond National Defense Authorization Act 
   for Fiscal Year 1999 (Public Law 105 261) required the Secretary to     
   conduct a comprehensive review of the management of the test and        
   evaluation centers. Section 907 specifically required the Secretary to  
   develop a plan, including a schedule for establishing a cost-based      
   management information system for the test and evaluation centers. The  
   statement of managers on the conference report on the National Defense  
   Authorization Act for Fiscal Year 2000 (H. Rept. 106 301) added the     
   requirement that the Department report to the congressional defense     
   committees on the feasibility of financing test and evaluation          
   facilities through a working capital fund.                              
      The committee is concerned that the Department has not yet submitted 
   the plan and schedule required by section 907 or the report required by 
   the statement of managers. The committee directs the Department to      
   ensure that these requirements are fully implemented in a timely manner.
   In particular, the committee understands that the Department has        
   developed a cost-based information system for use by the major range    
   test facilities base (MRTFB). In accordance with the requirements of    
   section 907, the Department should develop a schedule to implement this 
   system for all test and evaluation centers and to ensure that the data  
   collected by this system is actively used to make management and        
   investment decisions.                                                   
      The committee is also aware of certain cases in which developmental  
   testing has been conducted outside the Department's test and evaluation 
   base to reduce program costs. The committee directs the Department to   
   review these decisions and ensure that the quality and integrity of the 
   testing program has not been compromised by these cost-cutting          
   decisions.                                                              
      Furthermore, the committee has serious concerns with the budget      
   request for the Central Test and Evaluation Investment Program (CTEIP). 
   CTEIP provides critical test and evaluation capabilities for joint and  
   multi-service system test requirements. In this role, CTEIP provides a  
   corporate means to leverage test investments for the services and       
   defense agencies. This year funding decreased even though the Annual    
   Report of the Office of Operational Test and Evaluation for 1999 stated 
   the clear and pressing need for new investments in the test and         
   evaluation infrastructure, ``. . . with its emphasis on such efforts as 
   improving and test efficiencies, promoting increased use of modeling and
   simulation, creating common instrumentation, and developing capabilities
   for test information systems, the CTEIP is clearly focused on developing
   the test capabilities we will require to meet the test challenges of the
   next century.''                                                         
      The committee recommends an increase of $20.0 million in PE 64940D to
   be applied to critical upgrades at the defense test and evaluation      
   facilities as determined by the Director of Operational Test and        
   Evaluation (DOT&E). The committee directs that the additional funds be  
   awarded in accordance with the standards provided in the assessment of  
   the centers from the MRTFB criteria. The DOT&E should report back to    
   committee on the allocation of such funds and the criteria used to      
   determine the recipients.                                               

            Augmented reality fire-fighting training                               

      The committee recommends an increase of $1.5 million in PE 65131D for
   augmented reality fire-fighting training. Augmented reality is the use  
   of live and virtual (computer generated) objects. The current project   
   has demonstrated the basic technology in a multi-room office            
   environment. This follow-on would focus on a shipboard system that would
   allow the actual crew to train in the actual environment during a       
   deployment. The Live Fire Test and Evaluation Office is chartered with  
   ensuring timely and accurate assessments of system survivability,       
   vulnerability, and munitions effectiveness of weapons systems. One of   
   the leading causes of casualties, in wartime or peace, is fire or fire  
   effects. Evaluation of the training of ship crews under realistic combat
   emergency conditions is of critical importance to total ship            
   survivability assessments.                                              
                                   OTHER ITEMS OF INTEREST                        

            Aircraft carrier modernization                                         

      The Navy is acquiring the next nuclear powered aircraft carrier in   
   the Nimitz-class, the CVN 77. In order to reduce the total operational  
   cost and improve system capability, the Navy intends to rely on the     
   contractor team to provide total systems integration effort for the     
   combat system, a function that has previously been managed by the       
   Department of the Navy. The Navy believes that this approach will take  
   advantage of commercial-based design to improve overall capability.     
      The committee is aware that the Department of Defense is conducting a
   review of the process by which we acquire electronic warfare programs.  
   This review has been generated because of the Department's repeated     
   experience of cost, schedule and technical problems associated with such
   acquisitions.                                                           
   The committee believes that the Department of the Navy should           

    apply appropriate lessons derived from this on-going study to the     
  aircraft carrier program. In particular, the committee believes that the
  Navy should give due consideration to risk, cost, and benefit of newer  
  electronic warfare systems compared to other alternatives.              
            Advanced ship hull demonstrators                                       

      The budget request included no funding in PE 63792N for advanced ship
   hull demonstrators. However, within PE 64300N and PE 64558N, both       
   destroyer and submarine hull designs are being tested.                  
      Tactics and operational concepts for littoral operations from the sea
   continue to evolve. The introduction of new capabilities requires the   
   review of both strategic and tactical doctrine. Although it is not      
   feasible to build a full scale prototype test vehicle for the many      
   advanced hull designs proposed to the Navy, the Navy should leverage    
   investments in advanced hull designs made by other entities including   
   those of allied/foreign navies.                                         
      Rapid evaluation of advanced hull design tactical and strategic      
   advantages should provide the Navy with valuable information for the    
   development of operational concepts and tactics.                        
      The committee is encouraged by Navy War College innovative concepts  
   for applying available and future ship capabilities to influence both   
   strategic and tactical operations.                                      
      Therefore, the committee recommends the Navy demonstrate capabilities
   inherent in advanced hulls where those capabilities have the potential  
   to provide valuable insights for use in modeling, simulation, war       
   gaming, operational concept development, and ship construction. In      
   addition, the committee encourages the Navy to take advantage of        
   authority previously provided to them, by including the use of advanced 
   hull designs in joint and combined exercises, as well as fleet battle   
   experiments.                                                            
            Crusader                                                               

      The committee noted with interest decisions made by the Secretary of 
   the Army to restructure the Crusader artillery system development       
   program. The committee has supported efforts to develop and field this  
   next generation system to fully modernize a heavy corps, and is         
   concerned that adjustments made to the program appear to make this      
   outcome unlikely. The committee understands the Chief of Staff has      
   directed the program manager to determine the feasibility of producing a
   40-ton system that will be easier to deploy but just as operationally   
   capable as the existing concept. While the notion of lightening this    
   system is admirable, this action will further delay any potential       
   fielding of a system that has been in development for more than a       
   decade. Most troubling is the revised schedule that now calls for a     
   production decision to be delayed until the first quarter of fiscal year
   2009. The committee does not understand how this delayed program fits   
   with efforts to field an objective force, with common platforms, in the 
   fiscal year 2012 time frame. The committee directs the Army to provide a
   report, by March 1, 2001, that describes how the current development and
   acquisition strategy for Crusader will fit with efforts designed to     
   field the objective force described in the Army transformation          
   initiative.                                                             

            Future ship technology research and development                        

      The budget request includes significant investments in future ship   
   research and development. These investments are key to ensuring future  
   ships have the technology required to maintain a war fighting advantage.
   In addition, some technologies may lower operating and construction     
   costs. The Navy is encouraged to review the following technologies which
   have the potential to provide a technological edge and/or reduce        
   life-cycle costs for future ships:                                      
       (1) applying multi-purpose processor technology to advanced         
   integrated electronic warfare systems;                                  
       (2) developing a battle force tactical trainer with an upgraded     
   personal computer system;                                               
    (3) modernizing aircraft carrier design software;                      

       (4) pursuing advanced hull, mechanical, and engineering development 
   of integrated topside structures and reduced ship signatures;           
       (5) emphasizing total ship engineering for enhanced damage control  
   and survivability;                                                      
    (6) modifying surface ship sonars for advanced mine detection;         

    (7) developing a damage control action management system;              

       (8) reviewing life-cycle cost benefits of an inter-cooled           
   recuperated gas turbine engine;                                         
       (9) commercial off the shelf desktop computers which are capable of 
   processing both secure information and unclassified data;               
       (10) wireless, low power level onboard and off-board personnel      
   tracking and monitoring device with applications for shore material     
   tracking;                                                               
       (11) developing interfaces between Navy legacy human resources      
   systems and the Global Combat Support System; and                       
       (12) developing business process re-engineering of legacy Navy and  
   Naval Reserve personnel systems.                                        
            Joint training and experimentation                                     

      The committee has noted with great interest the ongoing efforts by   
   the Department of Defense (DOD) and the Joint Chiefs of Staff (JCS) to  
   establish the organizational and procedural mechanisms to promulgate    
   doctrine, concepts, and requirements for joint military operations. The 
   establishment of the U.S. Joint Forces Command (USJFCOM) on October 1,  
   1999 was a major milestone on this path.                                
      The steps taken by USJFCOM to date are promising. The joint          
   experimentation program is underway. The Joint Warfighting Center       
   continues to make progress in standardizing joint training and          
   procedures across the entire force. The federation of the various       
   service and defense agency battle labs to eliminate unnecessary         
   duplication and provide a unifying vision for future efforts was        
   especially notable.                                                     
      In its December 1997 report on the Quadrennial Defense Review, the   
   National Defense Panel recommended the establishment of a joint national
   training center. Other official and independent studies have made       
   similar recommendations to make use of the capabilities of the existing 
   training centers, e.g., Joint Readiness Training Center, National       
   Training Center, Nellis Air Force Base, 29 Palms, and the San Diego Navy
   training facilities, for joint training and concept development. During 
   his testimony before the committee on March 1, 2000, General James      
   Jones, USMC, Commandant, U.S. Marine Corps, stated that the Marine Corps
   and Army were discussing the possibility of physically joining the 29   
   Palms Training Center and the Army National Training Center at Fort     
   Irwin, CA.                                                              
      Such proposals appear to have great merit and potential for further  
   enhancing joint training and experimentation. While each service clearly
   has specific core competencies it must train to at its own centers, the 
   benefits that would accrue from having a joint organization that        
   monitors and leverages these training activities for future joint       
   concept development and periodically coordinated joint training and     
   experimentation activities seem compelling.                             
      The committee directs the Chairman, Joint Chiefs of Staff to provide 
   a report to the congressional defense committees no later than March 1, 
   2001, containing an assessment of the advisability and feasibility of   
   establishing a joint national training center. The report shall include 
   a summary of actions taken, planned or under consideration regarding the
   establishment of such a center.                                         
            Joint operational test bed system                                      

      The Commander, Joint Forces Command (JFCOM) intends to establish a   
   joint operational test bed system (JOTBS) to conduct joint              
   interoperability testing and experimentation. The committee understands 
   that, under the current plan, JFCOM intends to demonstrate              
   interoperability of Predator unmanned aerial vehicles (UAVs) and the    
   tactical control system (TCS). The committee encourages JFCOM to        
   continue this JOTBS activity and other efforts to continue fulfilling   
   its mandate for ensuring interoperability among various services'       
   systems. The committee also encourages the services to provide          
   appropriate assistance to JFCOM to continue these efforts.              
            Maritime patrol aircraft                                               


      The committee is concerned about the overall state of maritime patrol
   and reconnaissance forces. The recent cancellation of the P 3 sustained 
   readiness program is cause for concern about the age and condition of   
   these aircraft, and whether there will be sufficient assets to meet     
   unified and fleet commander in chief requirements. Insufficient funding 
   of capability upgrade programs for the P 3, such as anti-surface warfare
   improvement program (AIP) and the block modification upgrade, further   
   exacerbates the problem by causing over-utilization of the limited      
   numbers of aircraft with these modifications. The capability of         
   AIP-equipped P 3s was demonstrated in Operation Allied Force with the   
   destruction of multiple targets with standoff land attack missiles.     
      The committee is aware of the recent acquisition decision by the     
   Under Secretary of Defense for Acquisition, Technology and Logistics,   
   which approved entry into concept exploration of the multi-mission      
   maritime aircraft (MMA) and directed an analysis of alternatives for    
   such a program. The committee directs the Secretary of Defense to       
   provide a report to the congressional defense committees by March 1,    
   2001, which outlines the current status of the MMA concept exploration, 
   to include the impact of funding requested in the fiscal year 2002      
   budget request to prevent near-term shortfalls in this critical mission 
   area.                                                                   
            Patriot theater missile defense                                        

      The committee notes that Patriot is the first system that the United 
   States has deployed specifically to counter theater ballistic missile   
   threats, and is evolving toward significantly improved capabilities with
   the PAC 3 system. The Army currently has almost 3,000 Patriot PAC 2     
   missiles deployed and has recently commenced low-rate production of the 
   Patriot PAC 3 missile. The Army is planning to upgrade approximately    
   1,500 PAC 2 missiles into the Guidance Enhanced Missile Plus (GEM+)     
   configuration by fiscal year 2005. The Army has also invested           
   significant resources in the development of the Patriot Anti-Cruise     
   Missile (PACM) upgrade to PAC 2. At the same time, the Army and the     
   Ballistic Missile Defense Organization (BMDO) are seeking to reduce the 
   per-unit cost of the PAC 3 missile. To be successful, BMDO will have to 
   increase the production rate for the PAC 3 missile. Further complicating
   the dilemma regarding the Patriot force composition and funding         
   priorities is the fact that the Army has recently discovered a number of
   technical problems associated with the fielded Patriot inventory.       
   Therefore, the Army and BMDO need to balance the needs of the existing  
   PAC 2 force with those of the future PAC 3 force. The committee strongly
   supports both the GEM+ and PAC 3 programs and directs the Secretary of  
   the Army and the Director of BMDO to develop an investment strategy that
   properly balances the need to upgrade the PAC 2 system and accelerate   
   deployment of PAC 3.                                                    
            Prophylactic pharmaceuticals                                           

      Many life-threatening diseases today are treated by multiple drug    
   efforts that can include vaccines. The committee notes the efforts of   
   the Department of Defense (DOD) to procure a vaccine and develop a      
   second generation vaccine to protect service personnel against the      
   biological agent anthrax. Relying on a single medical approach strategy 
   rather than multiple drug therapies may expose protection efforts to    
   undue risk should a vaccine procurement or development effort fail.     
   Relying on a single medical approach may also deny service personnel the
   full range of modern pharmaceutical treatment that may be available from
   the medical research community.                                         
      The committee is aware of medical research involving synthetic       
   compounds which inhibit the anthrax enzyme NAD Sythetase. Application of
   this synthetic compound could possibly be developed into a man-made     
   prophylactic pharmaceutical to protect against exposure to anthrax and  
   cure post-infection exposure.                                           
      The committee supports efforts to explore a multi-tiered medical     
   approach to defending military service members against biological       
   agents. The committee directs the U.S. Army Medical Research Institute  
   of Infectious Diseases (USAMRIID) to report to the congressional defense
   committees the results of a cost-benefit analysis of a prophylactic     
   pharmaceutical development program that is based on current medical     
   research to develop synthetic compounds that inhibit the anthrax enzyme 
   NAD Sythetase. USAMRIID will also report on the funding requirement to  
   fully develop this research into a prophylactic pharmaceutical. The     
   development program will have the following goals: (1) to develop       
   synthetic pharmaceutical compounds that can be taken prophylactically   
   immediately before exposure to anthrax spores and offer additional      
   post-exposure protection against the germinating spore for              
   non-vaccinated personnel; and (2) to develop a novel mechanism of       
   action-based drugs that would kill the infectious anthrax bacteria      
   whether it was a natural strain or a genetically engineered strain.     
            Radiation hardened electronics investment strategy                     

      The committee strongly supports the Secretary of Defense's           
   establishment of a Radiation Hardened Oversight Council and other       
   initiatives to ensure the availability of radiation hardened            
   microelectronic components to meet the Department of Defense's unique   
   requirements for future national security systems. The investment       
   strategy directed by the Under Secretary of Defense                     

                    for Acquisition, Technology and Logistics, would ensure       
          adequate funding to meet science and technology, engineering, and       
          production needs from fiscal year 2001 to fiscal year 2005. The         
          committee supports this strategy and urges the military departments and 
          defense agencies to support the investment strategy goals.              
      The committee directs the Secretary of Defense, in consultation with 
   the Secretary of Energy, to submit a report to the congressional defense
   committees by April 1, 2001, and annually thereafter, on the            
   implementation of the Radiation Hardened Electronics Investment         
   Strategy, including the degree to which the relevant military           
   departments and defense agencies are fulfilling their directed          
   investment goals.                                                       
            Small arms fire control system                                         

      The committee notes with great interest progress made to date in     
   developing the small arms fire control system (SAFCS). This lightweight,
   automated, optical sight system greatly enhances the accuracy of fire   
   for both the Mark 19 grenade launcher and the M2 .50 caliber machine    
   gun. The committee was pleased to note that the Army has recognized the 
   critical role this system can play in ground combat operations and has  
   requested the funding necessary to continue the development of this     
   system. The committee encourages the Army to complete the development of
   SAFCS as soon as is practical and begin a robust procurement program to 
   enhance the ability of our ground forces to fight and win decisively.   
            Transition of successful research projects into the acquisition system 

      The Defense Advanced Research Projects Agency (DARPA) has a long     
   history of successfully providing innovative technologies and           
   revolutionary warfighting systems concepts to the services. In recent   
   years, DARPA has worked closely with the services to identify areas of  
   opportunity and technological needs where DARPA can play an effective   
   role. Unfortunately, the percentage of DARPA initiatives transitioned to
   the services continues to be relatively low. In some cases, this        
   transition problem appears to be attributable to the rapid pace of      
   technological developments and the comparatively slow pace of the       
   acquisition system. As a result, a research program may be successfully 
   completed before the money is available, leaving a budget gap that      
   adversely affects the program.                                          
      The committee directs the Under Secretary of Defense for Acquisition,
   Technology and Logistics to review this problem and report to the       
   congressional defense committees not later than six months after the    
   date of enactment of this Act on alternative approaches to ensuring that
   successful research initiatives are fielded in a timely manner. The     
   review should consider possible changes to the acquisition and budgeting
   systems, including, but not limited to, the development of a transition 
   opportunity fund that would provide the Department greater flexibility  
   to take advantage of rapidly developing technology.                     

                            TITLE III--OPERATION AND MAINTENANCE                  

            Explanation of tables                                                  

      The tables in this title display items requested by the              
   administration for fiscal year 2001 for which the committee either      
   increased or decreased the requested amounts. As in the past, the       
   administration may not exceed the amounts approved by the committee (as 
   set forth in the tables or, if unchanged from the administration        
   request, as set forth in the Department of Defense's budget             
   justification documents) without a reprogramming action in accordance   
   with established procedures. Unless noted explicitly in the report, all 
   changes are made without prejudice.                                     

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            Armed Forces Retirement Home (sec. 303)                                

      The committee recommends a provision that would authorize $69.832    
   million to be appropriated from the Armed Forces Retirement Home Trust  
   Fund for fiscal year 2001.                                              
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

            Impact aid for children with disabilities (sec. 311)                   

      The committee recommends a provision that would add $20.0 million to 
   Operation and Maintenance funding for defense-wide activities for impact
   aid payments for children with disabilities under section 8003(d) of the
   Elementary and Secondary Education Act of 1965, title 20 United States  
   Code, 7703(d).                                                          
            Joint Warfighting Capabilities Assessment Teams (sec. 312)             

      The budget request included $157.9 million for the Joint Chiefs of   
   Staff (JCS), but did not include funding to strengthen the Joint        
   Requirements Oversight Council (JROC). The Chairman, Joint Chiefs of    
   Staff (CJCS) requested an additional $12.0 million to obtain the        
   additional analytical expertise required to strengthen the Joint        
   Warfighting Capabilities Assessment (JWCA) teams that support the JROC  
   process, thus enabling the JROC to focus on more strategic,             
   future-oriented, overarching issues. The committee is concerned that an 
   investment of $12.0 million for this effort is premature. The committee 
   favors a more modest, focused investment that would allow the CJCS to   
   measure the progress and effectiveness of these reforms before reporting
   back to the Congress and requesting additional resources.               
      Therefore, the committee directs that, of the $157.9 million         
   authorized to be appropriated for the JCS under Operations and          
   Maintenance, Defense Wide, Budget Activity 04, $4.0 million will be     
   available only for the purpose of additional investment in the JWCA     
   teams to re-focus and strengthen their analytical efforts in support of 
   the JROC process. Upon receipt of the CJCS report on the progress to    
   strengthen and re-focus the JROC process, required by a separate        
   provision in this bill, the committee would consider requests for a     
   re-programming, additional authorizations, and/or legislative provisions
   to support the CJCS in this important, timely effort to improve the     
   joint warfighting capabilities of U.S. armed forces.                    
                        SUBTITLE C--HUMANITARIAN AND CIVIC ASSISTANCE             

                       Increased authority to provide health care services as      
           humanitarian and civic assistance (sec. 321)                            
      The committee recommends a provision that would allow any underserved
   community, in addition to rural underserved areas, to receive medical,  
   dental, and veterinary services through the humanitarian and civic      
   assistance program.                                                     
                       Use of humanitarian and civic assistance funding for pay and
           allowances of special operations command reserves furnishing demining   
           training and related assistance as humanitarian assistance (sec. 322)   
      The committee recommends a provision that would authorize pay and    
   allowances from within funds for the Overseas Humanitarian, Disaster,   
   and Civic Assistance Account, for reserve members of the U.S. Special   
   Operations Command when these reservists perform humanitarian demining  
   activities. This will enable these individuals to benefit from the same 
   valuable training opportunities currently experienced by their active   
   duty counter-parts, and will help mitigate the high operations tempo of 
   the active component resulting from the numerous requirements placed on 
   them for low intensity engagement operations.                           
                   SUBTITLE D--DEPARTMENT OF DEFENSE INDUSTRIAL FACILITIES        

      The committee is concerned with the long-term efficiency of the      
   industrial facilities of the armed forces including depots, arsenals,   
   and ammunition manufacturing plants. Over the past several years the    
   military services have continued to downsize their force structure,     
   which has reduced the requirement for the products and services of these
   facilities. However, as a result of the national security requirement to
   retain an industrial infrastructure capable of surging to meet the      
   military's needs during a conflict, the Department of Defense must      
   maintain industrial facilities that are not required on a day-to-day    
   basis.                                                                  
      In 1992, the Congress enacted the Armament Retooling and             
   Manufacturing Support Initiative which provided the mechanisms necessary
   to allow the Army's ammunition plants to attract private sector firms to
   locate at these plants, utilizing the unused surge capacity, and paying 
   rents which were used to offset                                         

                    the Army's cost of maintaining and operating these plants. The
          private sector jobs also provided for the retention of critical skills  
          at the ammunition plants that would then be available whenever          
          necessary. This initiative has had great success, saving the Army $37.0 
          million each year and preserving hundreds of skilled workers.           
      Section 361 of the National Defense Authorization Act for Fiscal Year
   1998 authorized the Secretary of Defense to designate of each depot     
   level activity of the Department of Defense as a Center of Industrial   
   and Technical Excellence in the recognized core competencies of the     
   depot activity, to adopt best-business practices at these facilities in 
   connection with their core competency, and encourage the creation of    
   public-private partnerships at these Centers for the performance of     
   depot-level maintenance and repair in order to maximize the utilization 
   of the capacity at these Centers. It also authorized the lease of excess
   depot-level equipment and facilities to private sector entities.        
   Unfortunately, because of conflicting legal interpretations and other   
   institutional barriers, the Department of Defense has made only limited 
   use of these authorities.                                               
      The committee believes it is important to improve the efficiency of  
   all Department of Defense industrial facilities that are required to    
   maintain a core capability necessary for the repair and manufacturing of
   military ordnance and weapon systems. Therefore, the committee includes 
   a number of provisions to clarify and enhance current legal authorities 
   to provide the mechanisms necessary to more fully utilize these         
   facilities by government and commercial organizations.                  
                       Codification and improvement of armament retooling and      
           manufacturing support programs (sec. 331)                               
      The committee recommends a provision that would make certain changes 
   and codify in permanent law the Armament Retooling and Manufacturing    
   Support Initiative. The provision would expand the objectives of the    
   program to include a reduction of the cost of ownership and/or disposal 
   of ammunition plants, to enhance best business practices, and foster    
   cooperation with the private sector at these facilities. The provision  
   would also make it easier for non-federal entities to use excess        
   capacity at these facilities, and offset the costs to the Federal       
   Government of ownership by allowing revenues generated through private  
   sector use to be applied to overhead and production costs.              
            Centers of industrial and technical excellence (sec. 332)              

      The committee recommends a provision that would amend section 2474 of
   title 10, United States Code, by devolving the authority to designate   
   the depot-level activities to the respective secretaries of the military
   departments, including the arsenals of the United States Army. The      
   provision would also expand the activities authorized to be conducted at
   these centers by employees of the center, the private sector, or other  
   entities outside the Department of Defense, to include the performance  
   of work under contract, or subcontract, in any of the core competencies 
   of the center; the performance of depot-level maintenance and repair at 
   the center; other work consistent with the needs of the Department of   
   Defense that requires the use of any facility or equipment of the center
   that are not fully utilized by a military department for its own        
   production and maintenance requirements. The full costs of work         
   performed by the employees of the Center under contract from the private
   sector must be charged to the contract. Any revenues generated, by rents
   or through other mechanisms, by private sector use of facilities and    
   equipment at these centers would be available to offset the costs of    
   facility operations, maintenance, and environmental restoration at the  
   center where the leased property is located.                            
      The committee believes that the head of the center should use these  
   authorities to maximize the utilization of the capacity at the center,  
   reduce or eliminate the cost of Department of Defense ownership of the  
   center, reduce the cost of products of the Department of Defense        
   produced or maintained at the center, foster cooperation between the    
   armed forces and private industry, and leverage private sector          
   investment in the recapitalization of plant and equipment at the center.
                       Effects of outsourcing on overhead costs of centers of      
           industrial and technical excellence and ammunition plants (sec. 333)    
      The committee recommends a provision that would require the Secretary
   of Defense to submit a report to Congress thirty days prior to entering 
   into a contract that would result in moving workload, performed by 50 or
   more employees, from a center or ammunition plant. The report should    
   describe the impact of any reduction in workload at a center or         
   ammunition plant as a result of a contract and describe the overhead    
   costs of that facility                                                  
      The committee is concerned that the process for determining the costs
   associated with entering into a contract with a private sector source   
   for the performance of a workload currently performed at a center of    
   industrial and technical excellence, or an ammunition plant, does not   
   include a review of the impact that such a contract will have on the    
   overhead costs of the center or plant.                                  
                       Revision of authority to waive limitation on performance of 
           depot-level maintenance (sec. 334)                                      

      The committee recommends a provision that would amend section 2466 of
   title 10, to allow the President of the United States rather than the   
   secretary of the respective military service to waive the 50 percent    
   requirement for reasons of national security. The committee is concerned
   that the Secretary of the Air Force has not taken the actions necessary 
   to ensure the Air Force is able to comply with the requirement contained
   in section 2466 of title 10, that 50 percent of all depot maintenance   
   funds of a military service be spent on depot maintenance services      
   provided by employees of the Federal Government. The committee believes 
   that this requirement is essential to maintain the core maintenance     
   capability necessary to preserve a ready and controlled source of repair
   and maintenance.                                                        
            Manufacturing technical assistance pilot program                       

      The committee recognizes the valuable contribution that the          
   manufacturing technical assistance pilot program has made to the        
   development and retention of a skilled private sector workforce capable 
   of supporting the manufacturing requirements of the United States Air   
   Force. The committee believes that this program could also provide great
   value to the manufacturing and maintenance needs of the other military  
   services, such as the ship building industry that supports the United   
   States Navy.                                                            
      Therefore, the committee recommends an increase of $2.0 million to   
   support an Atlantic Fleet pilot program for the development and         
   retention of the manufacturing skills necessary to support the Navy's   
   shipbuilding requirements of the 21st Century. The committee also       
   directs the Secretary of Defense to provide the congressional defense   
   committees with a report outlining the results of this pilot program.   
                            SUBTITLE E--ENVIRONMENTAL PROVISIONS                  

            Environmental restoration accounts (sec. 341)                          

      The committee recommends a provision that would amend section 2703(a)
   of title 10, United States Code, by inserting a new paragraph that would
   designate an account for formerly used defense sites within the         
   Environmental Restoration Account. The provision would also ensure that 
   all site closeout activities would be funded out of an appropriate      
   Environmental Restoration Account.                                      
                       Payments of fines and penalties for environmental compliance
           violations (sec. 342)                                                   
      The committee recommends a provision that would require the Secretary
   of Defense or the secretaries of the military departments to seek       
   congressional authorization prior to paying any fine or penalty for an  
   environmental compliance violation if the fine or penalty amount agreed 
   to is $1.5 million or more or is based on the application of economic   
   benefit or size of business criteria. Supplemental environmental        
   projects carried out as part of fine or penalty for amounts $1.5 million
   or more and agreed to after the enactment of this Act would also require
   specific authorization by law.                                          
      The committee recommends this provision as a result of concerns that 
   stem from a significant fine imposed at Fort Wainwright, Alaska, (FWA), 
   a related policy established by U.S. Environmental Protection Agency    
   (EPA), and an apparent need for further congressional oversight in this 
   area. On March 5, 1999, EPA Region 10 sent FWA a notice of violation    
   (NOV) and on August 25, 1999, EPA sent a settlement offer of $16.07     
   million: (1) $155,000 for the seriousness of the offenses; (2) $10.56   
   million for recapture of economic benefit for noncompliance; and (3) an 
   additional $5.35 million because of the ``size of business'' at FWA.    
      According to EPA, the $16.07 million fine was imposed to correct     
   excessive emissions of particulate matter from an aging coal-fired      
   central heat and power plant (CHPP) at FWA, and to impose a penalty for 
   years of violations under the Clean Air Act (CAA). The EPA policy or    
   rule that directs the application of economic benefit or ``size of      
   business'' penalty assessment criteria to federal facilities is based on
   memoranda dated October 9, 1998, and September 30, 1999, issued by the  
   EPA headquarters Federal Facilities Enforcement Office (FFEO). Notice   
   and comment procedures were not used to promulgate these memoranda.     
      The compliance and enforcement history of the CHPP provides some     
   insight into this committee's concerns regarding the EPA NOV. In the mid
   1980s, EPA delegated its CAA program authority to the State of Alaska.  
   In order to comply with opacity requirements, FWA purchased opacity     
   monitors in 1988 and installed them in 1989, however, the monitors had a
   high failure and maintenance rate. In March 1994, the Alaska Department 
   of Environmental Conservation (ADEC) issued an NOV for opacity          
   violations at the FWA CHPP that identified a need for PM emission       
   reductions. In response, FWA negotiated a compliance schedule with ADEC 
   for the construction of a full-steam baghouse for each of the boilers in
   the CHPP.                                                               
      FWA continued to work with ADEC from March 1994 to 1999 to:          
   accomplish about $15.3 million worth of numerous CHPP upgrades for      
   controlling air emissions; resolve Department of Defense (DOD)          
   privatization issues; conduct a baghouse feasibility study; and seek    
   military construction authorization for a $15.9 million baghouse        
   project. In the interim, FWA received a CAA Title V Permit completeness 
   determination from the state on February 19, 1998. As a result, FWA     
   continues to operate the CHPP under a CAA Title V permit application,   
   which contains schedules for compliance that were the result of careful 
   coordination with ADEC.                                                 
      The $15.9 million baghouse was programmed for fiscal year 2000 and   
   was authorized and appropriated by Congress in fiscal year 2000. As     
   planned, the baghouse design complies with all applicable CAA           
   requirements, including compliance assurance monitoring. When the EPA   
   NOV was issued, FWA was in compliance with the Title V schedules for    
   implementing air emission control technologies agreed to with ADEC.     
      First, the committee questions EPA's regulatory judgement in         
   assessing fines and penalties despite the fact that the installation was
   operating in good faith under a Title V permit application that is      
   overseen by a state with delegated authority. Second, it is the         
   committee's view that the application of economic benefit or ``size of  
   business'' penalty assessment criteria to the DOD is inconsistent with  
   the statutory language and the legislative history under section 7413 of
   title 42, United States Code.                                           
      The terms economic benefit and ``size of business'' suggest          
   market-based activities, not government functions subject to            
   congressional appropriations. In addition, the statement of managers    
   accompanying the Clean Air Act Amendments of 1990 (Public Law 101 549;  
   104 Stat. 2399 (October 27, 1990)) provides that with respect to the    
   economic benefit criterion: ``Violators should not be able to obtain an 
   economic benefit vis-a-vis their competitors as a result of their       
   noncompliance with environmental laws.'' The committee is not aware that
   the DOD has competitors.                                                
      As a practical matter, the functions of DOD facilities are not       
   analogous to private business. The DOD, unlike private sector, must fund
   all of its operations, to include environmental compliance, through     
   congressional appropriations. ``No money shall be drawn from the        
   Treasury but in consequence of appropriations made by law; and a regular
   statement and account of the receipts and expenditures of all public    
   money shall be published from time to time.'' (U.S. Constitution,       
   Article 1, Section 9, Clause 7; Anti-Deficiency Act (ADA) 31 U.S.C.     
   1501). Moreover, the expenditure of federal funds must be consistent    
   with authorization and appropriation acts--Congress and the Office of   
   Management and Budget oversee apportionment of funds to agencies during 
   the fiscal year to avoid overspending--DOD allocates funds to the       
   military departments, which in turn issue allotments to command and     
   staff organizations. (31 U.S.C. 1341(a)(1); Department of Defense       
   Directive 7200.1, Administrative Control of Appropriations (1984)).     

      The committee has concluded that DOD payment of fines or penalties   
   based on economic benefit or size of business criteria would interfere  
   with the management power of the Federal Executive Branch and upset the 
   balance of power between the Federal Executive and Legislative Branches,
   exceeding the immediate objective of compliance. Therefore, the         
   committee recommends a provision that would prohibit the Secretary of   
   Defense and the secretaries of the military departments from paying such
   fines and penalties without specific authorization by law.              
                       Annual reports under Strategic Environmental Research and   
           Development Program (sec. 343)                                          
      The committee recommends a provision that would modify the current   
   reporting requirement for the Science Advisory Board to allow for its   
   inclusion in the annual report for the Strategic Environmental Research 
   and Development Program. This provision allows for more streamlined     
   reporting by the Department of Defense.                                 
                       Modification of authority for indemnification of transferees
           of closing defense property (sec. 344)                                  
      The committee recommends a provision that would amend section 330 of 
   the National Defense Authorization Act for Fiscal Year 1993 (Public Law 
   102 484; 106 Stat. 2315) to clarify the application of the existing     
   indemnification authority. The exercise of the current authority under  
   section 330 is predicated upon cumbersome conditions for claimant       
   eligibility, which has resulted in confusion and a complete absence of  
   claims for indemnification. The provision would eliminate ambiguous     
   conditions, streamline claimant access, and facilitate early transfer of
   base closure properties to assist communities in recovering from the    
   initial effects of base closure.                                        
      Consistent with existing authority, the recommended provision would  
   authorize the Secretary of Defense to indemnify any state, political    
   subdivision, or any person who acquires ownership or control over       
   transferred surplus base closure property for the costs of legally      
   required remediation. Presently, the capital markets are reluctant to   
   finance certain projects at base closure properties due to the potential
   for contamination, and liability under the Comprehensive Environmental  
   Response, Compensation and Liability Act (CERCLA) and analogous state   
   laws. That concern is magnified in those instances in which a military  
   department transfers surplus base closure property for which there is a 
   deferral of covenants under section 120(h)(3)(C) of the Comprehensive   
   Environmental Response, Compensation and Liability Act (42 U.S.C. 9601  
   et seq.)                                                                
                       Payment of fines or penalties imposed for environmental     
           compliance violations at certain Department of Defense facilities (sec. 
           345)                                                                    
      The committee recommends a provision that would authorize the        
   Department of Defense (DOD) to pay fines and penalties, or to carry out 
   supplemental environmental projects in accordance with section 8149 of  
   the Department of Defense Appropriations Act for Fiscal Year 2000. The  
   Secretary of the Army would be specifically authorized to pay following 
   supplemental environmental projects carried out in satisfaction of an   
   assessed fine or penalty: (1) $993,000 for Walter Reed Army Medical     
   Center, Washington, D.C.; (2) $377,250 for Fort Campbell, Kentucky; (3) 
   $20,701 for Fort Gordon, Georgia; (4) $78,500 for Pueblo Chemical Depot,
   Colorado; (5) $20,000 for Deseret Chemical Depot, Utah. The Secretary of
   the Navy would be specifically authorized to pay the following fines and
   penalties: (1) $108,000 for Allegany Ballistics Laboratory, West        
   Virginia; and (2) $5,000 for Naval Air Station, Corpus Christi, Texas.  
                       Reimbursement for certain costs in connection with the      
           former Nansemond Ordnance Depot Site, Suffolk, Virginia (sec. 346)      
      The committee recommends a provision that would authorize the        
   Secretary of Defense to pay not more than $98,210 from the Environmental
   Restoration, Formerly Used Defense Sites Account to reimburse the       
   Nansemond Ordnance Depot Site Special Account of the Hazardous Substance
   Superfund, established by section 9507 of the Internal Revenue Code of  
   1986 (26 U.S.C. 9507). The reimbursement is for oversight costs incurred
   by the U.S. Environmental Protection Agency on a time critical removal  
   action at the Former Nansemond Ordnance Depot performed by the          
   Department of Defense under the Comprehensive Environmental Response,   
   Compensation and Liability Act (42 U.S.C. 9601 et seq.) and the Defense 
   Environmental Restoration Program (10 U.S.C. 2701 et seq.).             
            Environmental restoration activities (sec. 347)                        

      The committee recommends a provision that would authorize the        
   Secretary of Defense or the secretaries of the military departments to  
   use funds available in the environmental restoration accounts, pursuant 
   to section 2703 of title 10, United States Code, to permanently relocate
   facilities. That authorization is contingent upon a secretary's written 
   determination that such permanent relocation is part of a response      
   action that: (1) has the support of the affected community; (2) has the 
   approval of relevant regulatory agencies;                               

                    and (3) is the most cost effective response action available. 
          The authority would terminate after September 30, 2003, and be subject  
          to a five percent funding cap within each fiscal year for the funds     
          available under section 2703. The secretary concerned would also be     
          required to provide an annual report to the congressional defense       
          committees on each response action for which there has been a written   
          determination made under this provision.                                
      The committee expects the Department of Defense (DOD) to use this    
   authority judiciously, and ensure that funds are used only for          
   legitimate environmental restoration priorities. It is expected that    
   this provision will provide the necessary flexibility to facilitate     
   environmental restoration at certain formerly used defense sites (FUDS),
   where progress has been slow.                                           
      The committee is concerned about the progress of environmental       
   remediation planning and activities, and the appearance of an overall   
   lack of support for the FUDS Program within the Army and the DOD.       
   (Formerly Used Defense Sites: Army Corps of Engineers, U.S. Army Audit  
   Agency Report, AA 99 186, April 19, 1999). It is expected that both the 
   Secretaries of Defense and Army shall address with consistency the      
   environmental remediation issues at these sites. Moreover, the          
   Secretaries of Defense and Army shall ensure that there is adequate     
   funding in the fiscal year 2002 budget request and the Future Years     
   Defense Program to meet environmental remediation requirements and other
   related activities throughout the FUDS program.                         
            Ship disposal project (sec. 348)                                       

      The committee recommends a provision that would direct the Secretary 
   of the Navy to continue to carry out a ship disposal project in fiscal  
   year 2001 and to use competitive contracting procedures to award task   
   orders within the ship disposal project. The provision would also direct
   the Secretary to submit, not later than December 31, 2000, a report to  
   the congressional defense committees on the ship disposal project.      
                       Report on the Defense Environmental Security Corporate      
           Information Management Program (sec. 349)                               
      The committee recommends a provision that would direct the Secretary 
   of Defense to submit, not later than 60 days after the date of the      
   enactment of this act, a report to the congressional defense committees.
   The report shall contain specific recommendations regarding the future  
   mission of the Defense Environmental Security Corporate Information     
   Management Program and address issues of concern within the Department  
   of Defense.                                                             
            Report on Plasma Energy Pyrolysis System (sec. 350)                    

      The committee recommends a provision that would require the Secretary
   of the Army to submit, not later than October 1, 2000, a report to the  
   congressional defense committees that includes the Army's analysis and  
   recommendations regarding future applications for both phases of the    
   Plasma Energy Pyrolysis System (PEPS) technology. The committee notes   
   that PEPS has demonstrated merit as a research and development project  
   (PE 62720A) that could provide the Army and other military departments  
   with the capability to reduce costs associated with treatment and       
   disposal of hazardous and toxic waste streams. The project has been     
   executed in two phases: (1) a fixed-transportable unit demonstration;   
   and (2) a mobile unit demonstration. It is expected that the data       
   produced during both phases of the technology demonstrations should     
   provide the Army with the information necessary to determine PEPS       
   applications within the military user community.                        
                                  SUBTITLE F--OTHER MATTERS                       

                       Effects of worldwide contingency operations on readiness of 
           certain military aircraft and equipment (sec. 361)                      
      The committee recommends a provision that would require the Secretary
   of Defense to submit a report to Congress on the effects of worldwide   
   contingency operations on the aircraft of the Navy, Marine Corps, and   
   Air Force, and the ground equipment of the Army and Marine Corps. The   
   report shall include the Secretary's assessment of the effects of those 
   operations on the ability of the Department of Defense to maintain a    
   high level of readiness.                                                
      The committee is concerned that the continued high OPTEMPO of        
   military forces is wearing out already aging weapon systems. This is    
   particularly true for aviation assets that have been used to provide    
   extensive support in the no-fly zone over Iraq, to execute the air war  
   over Kosovo, and support the numerous other contingency operations      
   around the world, including East Timor. This is also true for the ground
   equipment that is used in these operations.                             
            Realistic budgeting for readiness requirements of the Army (sec. 362)  

      The committee recommends a provision that would require the Secretary
   of the Army to develop a new methodology to be used in preparing a      
   budget request that more accurately reflects the Army's requirements.   
   This methodology should be based on the level of training that is       
   required to be conducted to maintain essential readiness, the cost of   
   conducting that required                                                

                    training, and the cost of all other Army operations, including
          the cost of funding its infrastructure requirements. This methodology   
          should be used in the preparation of the fiscal year 2002 budget        
          request.                                                                
      The committee is concerned that the U.S. Army, despite repeated      
   assurances, continues to migrate training funds to its infrastructure   
   support and other accounts as a result of insufficient funding for these
   programs in the budget request. Over the past several years the Army has
   included funding for 800 miles of training in its budget, but has only  
   executed between 600 and 650 training miles during the fiscal year.     
   Those funds that were not utilized for training were reprogrammed to pay
   for such things as real property maintenance and base operations, which 
   have been dramatically underfunded over the past few years.             
      The committee is concerned that this practice indicates there are    
   significant problems with the methodology used to identify resources    
   necessary to fund its operations. The first problem stems from the fact 
   that the current methodology does not accurately reflect the required   
   training that must be conducted to maintain a division's necessary level
   of readiness. If it did, the Army would not report that its divisions   
   are ready to perform the National Military Strategy when they only      
   execute 75 percent of the funds programmed for this purpose. The second 
   problem stems from the unrealistic budget request for must pay accounts,
   such as base operations, and other essential accounts, such as real     
   property maintenance. Insufficient funding in these areas will continue 
   to force operational commanders to reprogram funds from their training  
   accounts to their infrastructure accounts in order to ensure the        
   delivery of essential services such as utilities and building           
   maintenance.                                                            
                       Additions to plan for ensuring visibility over all          
           in-transit end items and secondary items (sec. 363)                     
      The committee recommends a provision that would amend section 349 of 
   the Strom Thurmond National Defense Authorization Act for Fiscal Year   
   1999 by including specific requirements for monitoring and measuring    
   implementation of the plan to ensure visibility over in-transit         
   inventory items. The requirements would include the assignment of       
   oversight responsibility for each action required to address weaknesses 
   in the controls over in-transit items, a description of the resources   
   required for oversight, and an estimate of the annual cost of oversight.
                       Performance of emergency response functions at chemical     
           weapons storage installations (sec. 364)                                
      The committee recommends a provision that would prohibit the         
   Secretary of the Army from converting to contractor performance the     
   emergency response functions of any chemical weapons storage            
   installation currently performed by U.S. government employees until the 
   Secretary certifies to the Committees on Armed Services of the Senate   
   and the House of Representatives that the plan for conversion of the    
   emergency response functions:                                           
       (1) is consistent with the recommendation contained in the General  
   Accounting Office report, Department of Defense Competitive Outsourcing,
   dated March 2000; and                                                   
       (2) provides for a transition to contractor performance of emergency
   response functions that ensure an adequate transfer of the relevant     
   knowledge and expertise regarding chemical weapon emergency response to 
   the contractor personnel.                                               
    The Secretary's certification is necessary to ensure that there will  
  be no lapse of capability to perform the chemical weapon emergency      
  response mission at a chemical weapons storage installation during any  
  transition to contractor performance of those emergency response        
  functions.                                                              
                       Congressional notification of use of radio frequency        
           spectrum by a system entering engineering and manufacturing development 
           (sec. 365)                                                              
      The committee recommends a provision that would require the Secretary
   of Defense to submit a report to the congressional defense committees   
   before a new weapon system is acquired that would outline the frequency 
   that the system will use. The report would also include a statement of  
   whether the Department is designated as the primary user of that        
   frequency and, if not, the unique technical characteristics that make it
   necessary to use that particular frequency, and a description of the    
   protections that the Department of Defense has been given to ensure that
   it will not incur costs as a result of current or future interference   
   from other users of that particular frequency. The committee further    
   recommends an increase of $25.0 million for the upgrade of the Joint    
   Spectrum Center data base.                                              
      The committee is concerned that in the past the Department of Defense
   has pursued the development of weapons systems utilizing portions of the
   radio frequency spectrum that are not designated for military use. This 
   can lead to unintended interference between that system and a commercial
   system licensed to use the same frequency. This interference could then 
   result in operational constraints, or expensive redesign of the weapon  
   system. The committee is further concerned that there is insufficient   
   funding in the budget request to maintain an effective data base to     
   assist program managers in determining the characteristics of various   
   systems currently operating on particular frequencies, and in testing   
   these systems to ensure non-interference.                               

                       Monitoring of value of performance of Department of Defense 
           functions by workforces selected from between public and private        
           workforces (sec. 366)                                                   
      The committee recommends a provision that would require the Secretary
   of Defense to establish a system for monitoring the performance of      
   functions of the Department of Defense that are performed by 50 or more 
   employees of the Department and have been subjected to a review to      
   determine whether the function should be performed by federal employees 
   or a private sector workforce. The provision would also establish three 
   performance measures; the costs incurred, the savings derived, and the  
   value of the performance by the selected workforce measured against the 
   costs of the performance of the workload by the workforce at the        
   beginning of the review. Finally, the provision would require the       
   Secretary of Defense to provide the Congress with an annual report      
   outlining the results of the performance reviews conducted over the     
   previous years.                                                         
            Suspension of reorganization of naval audit service (sec. 367)         

      The committee is concerned that the Naval Audit Service has launched 
   a program for total consolidation of audit personnel into the National  
   Capitol Region without benefit of a convincing, detailed cost-benefit   
   analysis, an assessment of the impact of the reorganization on the      
   service's auditing mission, including an assessment of the impact of    
   such a consolidation on this highly skilled and critical workforce. The 
   committee is concerned that consolidation will undermine the efficiency 
   and effectiveness of auditing functions throughout the Navy and         
   particularly in the three highest concentrations of naval facilities and
   activities: San Diego, Norfolk, and Honolulu. The Congress, and the     
   military departments, depend upon the quality of investigation and      
   reporting done by audit agencies as an independent and credible source  
   of information necessary to fulfill oversight responsibilities. The     
   committee is concerned that consolidation could undermine the           
   institutional and individual auditor independence so essential to an    
   effective audit service and the quality of information provided to Navy 
   leadership and the Congress. Therefore, the committee includes a        
   provision that would delay the implementation of further consolidations 
   until such time as the Secretary provides his analysis of the savings   
   that the reorganization will achieve.                                   
            Investment of commissary trust revolving fund (sec. 368)               

      The committee recommends a provision that would authorize the        
   Secretary of Defense to invest a portion of the Commissary Trust        
   Revolving Fund in public debt securities. Any income resulting from     
   these investments would be credited to and become part of the fund.     
            Economic procurement of distilled spirits (sec. 369)                   

      The committee recommends a provision that would authorize the        
   military exchanges to use private distributors to distribute distilled  
   spirits in those cases in which such an option is determined to be the  
   most cost-effective means of distribution.                              
            Resale of armor piercing ammunition disposed of by the Army (sec. 370) 

      The committee is concerned that excess Department of Defense         
   armor-piercing ammunition could be made available to the public. The    
   committee recommends a provision that would require the Secretary of the
   Army to ensure that excess armor-piercing ammunition that is not        
   transferred to law enforcement or other governmental agencies or made   
   available for foreign military sales is destroyed. This requirement     
   would not apply to the non- armor-piercing components of that           
   ammunition, but such components could not be used to produce            
   armor-piercing ammunition for sale to civilian purchasers.              
                       Damage to aviation facilities caused by alkali silica       
           reactivity (sec. 371)                                                   
      The committee recommends a provision that would require the Secretary
   of Defense to test the use of lithium salts to preserve runway integrity
   and provide the congressional defense committees with a report outlining
   its success in mitigating the impact of Alkali Silica Reactivity (ASR). 
      The committee is concerned with reports of significant damage to     
   aircraft engines as a result of the ingestion of pieces of cement from  
   runways and parking aprons that have deteriorated because of alkali     
   silica reactivity (ASR). The Corps of Engineers' Research and           
   Development Center recently recommended the application of lithium salts
   to selected pavements at Fort Campbell to test the ability of this      
   product to reduce or eliminate ASR damage to cement surfaces.           
                       Reauthorization of pilot program for acceptance and use of  
           landing fees charged for use of domestic military airfields by civil    
           aircraft (sec. 372)                                                     
      The committee recommends a provision that would reauthorize a        
   military service to accept payments for the use of domestic military and
   shared use airfields by civil aircraft and to use those payments for the
   operation and maintenance of the airfield. The pilot program would be   
   authorized through fiscal year 2010.                                    
                       Reimbursement by civil air carriers for support provided at 
           Johnston Atoll (sec. 373)                                               
      The committee recommends a provision that would authorize the        
   Secretary of the Air Force to require payment from a civil air carrier  
   for support provided by the United States to that carrier at Johnston   
   Atoll that is either requested by the carrier, or determined to be      
   necessary to accommodate the carrier's use of Johnston Atoll. The       
   payment shall be equal to the actual costs incurred by the United       
   States, and shall be credited to either Air Force operation and         
   maintenance accounts or to the Army chemical demilitarization accounts. 
            Review of costs of maintaining historical properties (sec. 374)        

      The committee recommends a provision that would require the          
   Comptroller General of the United States to conduct a review of the     
   annual costs incurred by the Department of Defense in complying with the
   requirements of the National Historic Preservation Act (NHPA)(16 U.S.C. 
   470 et seq.). The committee is concerned that NHPA places a significant 
   burden on the already underfunded real property maintenance budgets of  
   the military services. As those buildings which were constructed during 
   World War I and the Korean War reach fifty years of age, the cost of    
   meeting these requirements has increased and will continue to increase. 
      The provision would require the Comptroller General to provide the   
   congressional defense committees with a report of the results of the    
   review including the projected costs of maintaining these properties    
   over the next 10 years, an analysis of maintaining only those properties
   which originally qualified as historic properties when the NHPA was     
   first enacted, the accounts used for paying the costs to comply with the
   NHPA, and the identity of all properties that must be maintained in     
   order to comply with the NHPA.                                          
                       Extension of authority to sell certain aircraft for use in  
           wildfire suppression (sec. 375)                                         
      The committee recommends a provision that would extend the current   
   authority for the Secretary of Defense to sell excess aircraft and spare
   parts to persons or entities that contract with the Federal Government  
   for the delivery of fire retardant by air in order to suppress          
   wildfires. The provision would extend the authority which currently     
   expires at the end of fiscal year 2000 through fiscal year 2005.        

            Overseas airlift service on Civil Reserve Air Fleet aircraft (sec. 376)

      The committee recommends a provision that would amend section        
   41106(a) of title 49, United States Code, to bring it in line with      
   current Department of Defense (DOD) policy regarding the procurement of 
   air transportation services. This provision would require that the DOD  
   procure transportation from air carriers with aircraft in the Civil     
   Reserve Air Fleet (CRAF) for travel from a place in the United States to
   a place outside the United States, and to the extent practicable,       
   between two locations outside the United States.                        
      The committee understands the need to maintain a viable CRAF to      
   transport military personnel and equipment to a theater of operations   
   during conflict. Following Operation Desert Storm, the General          
   Accounting Office testified before Congress that the CRAF program had   
   saved the DOD between $50.0 billion and $90.0 billion over the 40 year  
   life of the program. United States air carriers commit their aircraft to
   the CRAF program largely in exchange for DOD international airlift      
   business. DOD has little to offer these carriers in return for their    
   commitment except U.S. Government business.                             
                               ADDITIONAL MATTERS OF INTEREST                     

                                            ARMY                                  

            Real property maintenance                                              

      The committee is concerned with the continuing growth in the backlog 
   of real property maintenance (RPM) throughout the Department of Defense.
   The current backlog of real property maintenance exceeds several billion
   dollars. This is a particular problem for our aging Army facilities. The
   insufficient funding dedicated to maintaining our military              
   infrastructure is having a direct and negative impact on military       
   readiness as necessary repairs on roads, airstrips, rifle ranges, and   
   other training and operational facilities are continually deferred.     
   Furthermore, the underfunding is undermining the quality of life of our 
   military personnel and their families as repairs on the buildings in    
   which they work and live, such as barracks, are also deferred. If this  
   necessary maintenance continues to go unfunded, the Department will be  
   faced with even larger costs to repair damages caused by inclement      
   weather and other environmental conditions. In many cases, this deferral
   of property maintenance will lead to higher costs in a few short years  
   when the military is already facing a ``bow wave'' of procurement to    
   replace its aging weapon systems.                                       
      Therefore, the committee recommends an increase of $320.0 million to 
   the operations and maintenance accounts of the military services for the
   maintenance of real property, as outlined below:                        


                                                                        

Millions                                                                



          Army                           120.0



          Navy                           180.0



          National Guard                 20.0

                                                                            



          Total                          320.0


            Excess carryover-defense working capital fund activities               

      Current Department of Defense policy states that three months of     
   carryover is the maximum amount allowable for the Defense Working       
   Capital Fund Business Activities for organic work. Carryover workload is
   the gross unfilled orders at the end of the prior fiscal year, plus new 
   orders for the current fiscal year, minus work in process for the       
   current fiscal year. This does not include carryover for non-supply     
   intra and inter working capital fund orders, foreign military sales     
   orders, base closure orders, non-Department of Defense orders and       
   contract obligations. The committee is aware that several defense       
   working capital fund activities currently exceed the allowable carryover
   under the Department of Defense policy. The budget request for fiscal   
   year 2001 in these activities would provide $678.4 million in funding   
   that could not be expended until sometime after December 31, 2001, more 
   than three months after the beginning of fiscal year 2002 when          
   additional resources would be made available.                           
      Therefore, the committee recommends a reduction of $678.4 million in 
   the military service operation and maintenance accounts to reflect the  
   funds that cannot be expended during fiscal year 2001, and bring these  
   accounts within the Department's policy. These reductions are           
   distributed, as follows:                                                


                                                                        

Millions                                                                

  Army                                                                    

 40.5                                                                    

  Navy                                                                    

 585.7                                                                   

  Air Force                                                               

 52.2                                                                    


            Foreign currency fluctuation                                           

      The committee notes the continuing strength of the American dollar in
   relation to other currencies. This makes the purchase of services and   
   goods overseas less expensive than was originally believed when the     
   Department of Defense put together the fiscal year 2001 President's     
   budget request. Furthermore, the committee is aware that the foreign    
   currency fluctuation (FCF) account currently contains approximately     
   $639.4 million, or $319.4 million more than the historical level of     
   foreign currency fluctuation reserves. The committee further understands
   that current exchange rates mean the Department will accumulate an      
   additional $290.4 million in these reserves through the operation and   
   maintenance (O&M) accounts during fiscal years 2000 and 2001 for a total
   of $929.8 million.                                                      
      The committee believes that this is more than enough to compensate   
   for any unforseen weakening of the dollar in relation to foreign        
   currencies. Therefore, the committee recommends a reduction of $607.8   
   million in the military services O&M accounts to reflect the savings    
   that will be realized in fiscal years 2000 and 2001, and to draw down   
   the FCF account to an appropriate level. These reductions are           
   distributed as follows:                                                 


                                                                        

Millions                                                                

  Army                                                                    

 292.1                                                                   

  Navy                                                                    

 105.1                                                                   

  USMC                                                                    

 25.8                                                                    

  Air Force                                                               

 157.6                                                                   

  Defense Wide                                                            

 27.2                                                                    

                                                                          

  Total                                                                   

 607.8                                                                   


            Civilian personnel pay in excess of requirements                       

      The committee notes that the Department of Defense civilian personnel
   drawdown continues at a more rapid pace than expected. During the past  
   several years, civilian personnel levels in the Department of Defense   
   have been reduced faster than anticipated when the budgets for each     
   succeeding fiscal year were drafted. This drawdown resulted in          
   lower-than-budgeted civilian personnel levels, yielding savings of      
   several million dollars during the past few fiscal years. Analysis      
   performed by the General Accounting Office of the President's budget    
   request indicates that this under-execution will continue during fiscal 
   years 2000 and 2001.                                                    
      Therefore, the committee recommends a reduction to the military      
   services operation and maintenance accounts to reflect the funds that   
   were requested for civilian personnel budgets but will not be necessary 
   as a result of the lower civilian personnel levels:                     


                                                                        

Millions                                                                

  Army                                                                    

 4.6                                                                     

  Navy                                                                    

 53.8                                                                    

  Defense Wide                                                            

 27.5                                                                    

                                                                          

  Total                                                                   

 81.9                                                                    


            Army equipment maintenance                                             

      The committee is concerned with the continuing impact that aging     
   equipment is having on the Army's ability to maintain its readiness.    
   Aging equipment and extensive deployments have led to increased work    
   hours as young soldiers have labored to prevent mission capable rates   
   from falling. The committee is aware of the shortfall in equipment      
   maintenance that needs to be performed in order to restore the readiness
   of this equipment. The committee is also aware of the unfunded          
   requirement for corrosion control treatments on this equipment to slow  
   its rate of degradation. Therefore, the committee recommends an increase
   of $10.0 million for Army corrosion control, and $5.0 million for depot 
   level maintenance of Army Reserve equipment.                            
            Battlefield mobility enhancement system                                

      The committee recommends an increase of $10.0 million for the        
   purchase of the battlefield mobility enhancement system, a six wheeled  
   vehicle used for logistical support in training and on the battlefield  
   by light infantry divisions.                                            
            Army aviation spares                                                   

      The committee is concerned with the continuing reports of increased  
   cannibalization rates and decreased mission capable rates as a result of
   insufficient quantities of spare parts. In testimony before the         
   Subcommittee on Readiness and Management Support, and during visits to  
   the field, military officers have listed spare parts shortfalls amongst 
   their principal concerns. Furthermore, in letters to the Congress,      
   spares were identified as one of the leading unfunded requirements of   
   the service chiefs and the Chairman of the Joint Chiefs. Therefore, the 
   committee recommends an increase of $40.0 million for Army aviation     
   spares.                                                                 
            Adjustments to Junior Reserve Officers Training Corps                  

      The budget request included $77.5 million for the Junior Reserve     
   Officer Training Corps program. The committee recommends an increase of 
   $3.0 million for Army Junior Reserve Officer Training Corps programs.   
                                            NAVY                                  

            Navy spares                                                            

      The committee is concerned with the continuing reports of increased  
   cannibalization rates and decreased mission capable rates as a result of
   insufficient quantities of spare parts. In testimony before the Senate  
   Armed Services Committee, and in the field, military officers have      
   listed spare parts shortfalls amongst their principal concerns. These   
   shortfalls exist for new systems, as well as older, established systems.
   Furthermore, in letters to the Congress, spares were identified as one  
   of the leading unfunded requirements of the Chief of Naval Operations   
   and the Chairman of the Joint Chiefs. Therefore, the committee          
   recommends an increase of $232.0 million for Navy spares including;     
   $82.0 million for TACAMO spares; $75.0 million for spares for other     
   fielded aviation systems; and $75.0 million for ship spares.            
            Ship depot maintenance                                                 

      The budget request included $2.2 billion for ship depot maintenance. 
   The committee is concerned with reports of insufficient funding for ship
   depot maintenance. Recent testimony of the Chief of Naval Operations    
   indicates that there is more than $200.0 million worth of such          
   maintenance that currently cannot be executed because of a lack of      
   funding. The committee is also concerned with reports that many private 
   shipyards, which are essential to maintaining a healthy domestic        
   maintenance capability, are being forced to downsize their operations as
   a result of insufficient workloads.                                     
      Therefore, the committee recommends an increase of $237.3 million for
   ship depot maintenance, including $40.0 million for the AOE class ships,
   $32.0 million for LHA maintenance, $22.0 million for berthing and       
   messing barge maintenance, and $143.0 million for general ship depot    
   maintenance. The committee recommends a further increase of $5.0 million
   for depot maintenance of Navy Reserve vessels.                          
            Oceanography                                                           

      The budget request included $257.9 million for operational           
   meteorology and oceanography. The committee recommends an increase of   
   $7.0 million for the Naval Meteorology and Oceanography Command for     
   operations and collaborative oceanography programs.                     
            Training range upgrades                                                

      As a result of insufficient funding over the past several years, much
   of the infrastructure at our military training ranges is obsolete and   
   degrading. Training range modernization was identified in letters to the
   committee as one of the leading unfunded requirements of the United     
   States military. Furthermore, the recent difficulties at the Navy's     
   training range on the island of Vieques, together with the significant  
   deployment of U.S. military personnel to combat environments,           
   demonstrates the need to pursue the development of most up-to-date and  
   non-intrusive training areas as soon as possible. Therefore, the        
   committee recommends an increase of $50.0 million for Army training     
   range upgrades and $25.0 million for Navy training range upgrades.      
            Adjustments to Junior Reserve Officers Training Corps                  

      The budget request included $31.3 million for the Junior Reserve     
   Officer Training Corps program. The committee recommends an increase of 
   $3.0 million for Navy Junior Reserve Officer Training Corps programs.   
            Navy information technology center                                     

      The budget request included no funding to support operation of the   
   Navy information technology center (ITC). The Navy recently created the 
   ITC organization to serve under the Navy's Program Executive Officer for
   Information Technology (PEO IT). The ITC will support the PEO IT        
   organization and will provide officers' organization much like the naval
   systems commands operate today. The Navy needs funding to span the time 
   between creating the organization and the time when the PEO IT and      
   organizations that will use the services of the ITC can align their     
   funding and budgets to support the ITC. The committee, therefore,       
   recommends an increase of $5.0 million to support ITC operations.       
            US Navy Call Center                                                    

      The budget request included no funding for a contractor-supported    
   national employee benefits call center. The committee recommends an     
   increase of $3.0 million in Operation and Maintenance Navy to establish 
   a contractor-supported national employee benefits call center in Cutler,
   Maine. This call center would provide a full range of benefit and       
   entitlement information and assistance to civilian employees of the     
   Department of the Navy. The call center would replace eight separate    
   Human Resource Services Centers now in operation.                       
                                        MARINE CORPS                              

            USMC initial issue                                                     

      The committee is concerned that the budget request does not          
   adequately fund personal gear such as cold weather gear and body        

                    armor. Adequate funding for this gear is essential to the     
          safety and comfort of our military personnel in the field. Therefore,   
          the committee recommends an increase of $23.1 million in the operation  
          and maintenance accounts for the Marine Corps to purchase items of      
          individual combat clothing and equipment including ballistic plates,    
          outer vests, and polar fleece pullovers. This will help provide Marines 
          in the field with the clothing, gear, and other equipment they need to  
          survive and sustain themselves during combat operations.                
            USMC equipment maintenance                                             

      The committee is concerned with the continuing impact that aging     
   equipment is having on the Marine Corps ability to maintain its         
   readiness. Aging equipment and extensive deployments in corrosive       
   environments have led to increased work hours as young Marines have     
   labored to prevent mission capable rates from falling. The committee is 
   aware of the significant shortfall in depot maintenance that needs to be
   performed in order to restore the readiness of this equipment. The      
   committee is also aware of the unfunded requirement for corrosion       
   control treatments on this equipment to slow its rate of degradation.   
      Therefore, the committee recommends an increase of $33.1 million for 
   general and depot level maintenance of aging Active Marine Corps        
   equipment, and $5.0 million for equipment of the Marine Corps Reserves. 
   The committee recommends a further increase of $7.5 million for the     
   Marine Corps corrosion control program.                                 
            Adjustments to Junior Reserve Officers Training Corps                  

      The budget request included $11.9 million for the Junior Reserve     
   Officer Training Corps program. The committee recommends an increase of 
   $3.0 million for Marine Corps Junior Reserve Officer Training Corps     
   programs.                                                               
                                          AIR FORCE                               

            Air Force base operations                                              

      The budget request included $4.6 billion for Air Force base          
   operations. The committee is concerned with the continued underfunding  
   of essential base operations. The Chief of Staff of the Air Force has   
   informed the committee that the Air Force has $144.7 million in base    
   operating requirements, including the installation of communications    
   networks for C 17 support that were not funded within the President's   
   budget request for fiscal year 2001. Insufficient funding for base      
   operations forces unit commanders to migrate funding from training      
   accounts in order to meet the day-to-day requirements of military       
   installations, such as sewer, electricity, and communications.          
   Therefore, the Committee recommends an increase of $144.7 million for   
   Air Force base operations.                                              
            Adjustments to Junior Reserve Officers Training Corps                  

      The budget request included $31.8 million for the Junior Reserve     
   Officer Training Corps program. The committee recommends an increase of 
   $3.0 million for Air Force Junior Reserve Officer Training Corps        
   programs.                                                               
            Air Force readiness spares packages                                    

      The committee is concerned with the continuing reports of increased  
   cannibalization rates and decreased mission capable rates as a result of
   insufficient quantities of spare parts. In testimony before the         
   Subcommittee on Readiness and Management Support, and during visits to  
   the field, military officers have listed spare parts shortfalls amongst 
   their principal concerns. Finally, in letters to the Congress, spares   
   were identified as one of the leading unfunded requirements of the Chief
   of Staff of the Air Force and the Chairman of the Joint Chiefs.         
   Therefore, the committee recommends an increase of $75.0 million for Air
   Force readiness spares packages.                                        
            Air Force nuclear, biological and chemical defense                     

      The budget request included $12.4 million for Air Force nuclear,     
   biological, and chemical (NBC) defense readiness programs. An important 
   element of the Department of the Air Force Expeditionary Air Forces     
   (EAF) program is to ensure sustained and effective EAF operations in an 
   environment contaminated with nuclear, biological and/or chemical       
   agents. The Air Force, the Air National Guard, and the Air Force Reserve
   require decontamination kits, chemical air processing systems, life     
   support NBC equipment, handheld biological sampling kits, individual    
   protective equipment and training to implement this capability.         
   Therefore, the committee recommends an increase of $29.2 million for EAF
   NBC defense readiness programs.                                         
      It is imperative that the budget request for the Department of       
   Defense (DOD) fully support requirements for the NBC defense            
   capabilities of each military service. Any review by the DOD to ensure  
   this requirement is fulfilled should be defense-wide and not limited to 
   one military branch. In funding this requirement, the committee intends 
   to provide the Air Force with the same level of NBC defense capability  
   as the Navy, Army, and Marine Corps.                                    
                                        DEFENSE-WIDE                              

            Mobility enhancements                                                  

      With the end of the Cold War and the reduction in the number of U.S. 
   military personnel stationed abroad, the armed forces are far more      
   dependent upon strategic lift and its supporting mobility               
   infrastructure. Unfortunately, much of this infrastructure, including   
   rail heads and port facilities, experienced significant degradation as a
   result of insufficient funding to maintain military bases. The committee
   is concerned that this degraded infrastructure will delay the deployment
   of military forces to a theater of operations, and thereby increase the 
   risk associated with the successful execution of that operation, unless 
   properly repaired. Therefore, the committee recommends an increase of   
   $50.0 million to repair and replace infrastructure associated with the  
   deployment of forces.                                                   
            Mechanization of Contract Administration Service (MOCAS)               

      The budget request included $1.1 billion for the Defense Logistics   
   Agency. The committee recommends an increase of $1.2 million for        
   improvements to the Mechanization of Contract Administration Service    
   (MOCAS) System. The increase in funding is necessary for the development
   of a query tool and enhanced shared data warehouse that will allow      
   contractors to view contract data that resides in the MOCAS data base.  
            Partnership for Peace Program (Warsaw Initiative)                      

      The budget request included $48.4 million within the Defense Security
   Cooperation Agency budget line for the Partnership for Peace (PfP)      
   program. The committee recommends $45.3 million for this program for    
   fiscal year 2001, the same amount allocated to the program by the       
   Department of Defense for fiscal year 2000.                             
      When this program was initiated in fiscal year 1996 as an assistance 
   program jointly funded by the Departments of Defense and State, the     
   money provided by the Department of Defense was intended to be used to  
   strengthen military-to-military relationships through joint military    
   exercises, professional military education, and interoperability        
   programs with the Partnership for Peace nations. The committee is       
   concerned that the money provided for this program is being used        
   increasingly for purposes and projects that are not focused on the      
   military-to-military goals for which this program was intended. For     
   example, the committee notes that $1.0 million of the amount requested  
   for this program is intended to be used to pay for packing, crating,    
   handling and transportation charges associated with the delivery of     
   Excess Defense Articles (EDA) to PfP                                    

                    nations. The committee believes that this is an inappropriate 
          use of defense funds to pay for what is essentially security assistance.
          Such charges, to the extent they are paid by the PfP program, should be 
          funded by the State Department's portion of this program. The committee 
          believes that the Defense Department should conduct a review of the PfP 
          program to ensure that it is properly focused on improving the          
          military-to-military relationship between the United States and the PfP 
          nations, and on enhancing military interoperability between NATO and the
          PfP nations.                                                            
            Defense Environmental Security Corporate Information Management Program

      The budget request included $14.0 million for Defense Environmental  
   Security Information Management (DESCIM) Program. Based on concerns     
   related to program management and performance, the committee recommends 
   a decrease of $5.0 million in the DESCIM program. The $5.0 million from 
   DESCIM shall be used in the Environmental Security Technology           
   Certification Program (PE 63851D) to demonstrate/validate technology for
   environmental remediation of unexploded ordnance.                       
            Domestic preparedness center                                           

      The budget request included no funding for a domestic preparedness   
   center. The Congress established the Clara Barton Center for Domestic   
   Preparedness to contribute to providing civilians from federal, state,  
   and local agencies with training and expert advice regarding emergency  
   response to incidents involving weapons of mass destruction (WMD). The  
   center, operated by the American Red Cross, is developing the curriculum
   and capability to begin training in fiscal year 2001. The committee     
   recommends an increase of $1.5 million for the Office of the Secretary  
   of Defense for WMD response training. The committee notes that on       
   October 1, 2000, the Department of Justice will be designated the lead  
   federal agency for oversight, management, funding, and execution of the 
   domestic preparedness program, including operations at the Clara Barton 
   Center for Domestic Preparedness.                                       
            Cultural and historic activities                                       

      The budget request included $300,000 for the Legacy Resource         
   Management Program. The committee recommends an increase of $6.1 million
   for the recovery and preservation of three Civil War vessels: the H.L.  
   Hunley, a Civil War submarine; the U.S.S. Monitor, a Civil War ironclad 
   warship; and the C.S.S. Alabama, a Civil War commerce raider.           
      The committee strongly supports continued efforts to recover and     
   preserve these three sunken U.S. vessels, which have gained cultural and
   historical significance based on their unique design and the            
   circumstances under which they were lost. All three vessels qualify for 
   listing on the National Register under the National Historic            
   Preservation Act (16 U.S.C. 470 et seq.). The importance of these       
   vessels also stems from their identification as potential war graves. As
   a matter of policy, the Department of Defense (DOD) and the Navy, on    
   behalf of the United States, have asserted sole ownership and survey    
   responsibility for submerged vessels that serve as war graves. In       
   addition, the activities associated with the survey, recovery, and      
   preservation of these vessels have provided Navy salvage divers with    
   essential deepwater diving experience.                                  
      The committee notes that the DOD and the Navy have a responsibility  
   to protect and preserve these historic vessels. As a result, these      
   vessels are eligible for funding under the Legacy Resource Management   
   Program. Moreover, it is the committee's expectation that the Navy would
   continue to use these historic preservation activities as an opportunity
   to secure valuable deepwater training for its salvage divers.           
      Therefore, the committee directs the Secretary of Defense and the    
   Secretary of the Navy in fiscal year 2001 to use the additional Legacy  
   funds to accomplish the following: (1) to raise the H.L. Hunley, recover
   other remaining artifacts, and conduct related preservation activities; 
   (2) to make preparations for the turret recovery of the U.S.S. Monitor  
   and recover other remaining artifacts, including two cannons; and (3) to
   survey and recover the artifacts of the C.S.S. Alabama, including the   
   aft pivot gun and the lifting screw.                                    
      The committee further directs that, not later than April 1, 2001, the
   Secretary of Defense shall submit to the congressional defense          
   committees a report that completely describes all prior and current use 
   of Legacy funds and relevant state funds, and the status of recovery and
   preservation activities related to the H.L. Hunley, the U.S.S. Monitor, 
   and the C.S.S. Alabama. The report should also describe the projected   
   funding and date for completion of all recovery and preservation        
   activities.                                                             
            Defense Travel System                                                  

      The committee recommends a reduction of $20.0 million for the Defense
   Travel System (DTS) Program delays.                                     
      The committee is becoming increasingly concerned over the delays in  
   the fielding of this new travel system. The modernization of the massive
   military travel system will yield significant savings to the Department 
   of Defense as well as the government traveler. The Department spends an 
   estimated $3.0 billion a year on travel, and almost a third of this cost
   is the processing of the paperwork. After fielding of the DTS, the      
   savings are expected to be more than $300.0 million a year and make trip
   planning less complex for the traveler.                                 
      During fiscal year 2000, the Department used below threshold         
   reprogrammings to reduce the funding for the DTS by more than 22        
   percent. While the committee is again receiving assurances that the     
   program is on schedule and properly funded, the committee is concerned  
   that the funding for this program will be further reduced from the      
   budget request. Therefore, the committee directs the Secretary to treat 
   this program as a congressional interest item under the procedures for  
   prior approval reprogramming.                                           
            Command information superiority architecture program                   

      The committee has supported the Command Information Superiority      
   Architecture (CISA) program. This program has focused on command,       
   communications and intelligence architectures and is now oriented toward
   command-specific communications and computer information architectures  
   (CCIAs). The committee recommends an increase of $2.0 million in        
   Operations and Maintenance, Defense-Wide, to support CISA's efforts in  
   the area of CCIAs.                                                      
                                GUARD AND RESERVE COMPONENTS                      

            Air Force Reserve equipment maintenance                                

      The budget request included $281.0 million for Air Force Reserve     
   depot maintenance. The committee is concerned with the continuing impact
   that aging equipment and extensive deployments are having on the Air    
   Force Reserve's ability to maintain its readiness. Aging equipment and  
   extensive deployments have led to increased work hours as young airmen  
   have labored to prevent mission capable rates from falling. The         
   committee is aware of the significant shortfall in depot maintenance    
   that needs to be performed in order to restore the readiness of Air     
   Force Reserve equipment. Therefore, the committee recommends an increase
   of $5.0 million for depot level maintenance of aging Active Marine Corps
   equipment, and $5.0 million for equipment of Air Force Reserve aircraft.
            National Guard initial issue                                           

      The committee is concerned that the budget request does not          
   adequately fund personal gear such as cold weather gear. Adequate       
   funding for this gear is essential to the safety and comfort of our     
   military personnel in the field. Therefore, the committee recommends an 
   increase of $20.0 million for the                                       

                    Extended Cold Weather Clothing System for the Army National   
          Guard to provide protection in combat conditions during cold and wet    
          weather.                                                                
            Distributed mission trainer                                            

      The committee is aware of the $4.5 million unfunded requirement for a
   12 year fee-for-service contract and logistics support for F 15 linked  
   simulators to support increased production of F 15 pilots. This will    
   enable linked training among advanced flight training bases. Therefore, 
   the committee recommends an increase of $4.5 million for this purpose.  
                                        MISCELLANEOUS                             

            Overseas humanitarian, disaster, and civic affairs                     

      The committee supports the humanitarian demining and emergency       
   humanitarian response activities of the Department of Defense (DOD).    
   These activities have enabled military personnel of the DOD to forge    
   constructive relationships with the armed forces and civilian population
   of other nations, while carrying out valuable training which enhances   
   the military skills of our troops. However, the committee is concerned  
   that the Department continues to request funding for humanitarian       
   assistance activities in this account that do not enhance military      
   training, do not require military unique capabilities, and should       
   therefore be funded by the Department of State. These activities include
   paying commercial carriers to deliver privately-donated goods to foreign
   recipients and procuring food solely for humanitarian relief operations.
   The committee is also concerned with increased reliance upon the DOD to 
   construct facilities in foreign countries that would more appropriately 
   be funded through the foreign aid account and constructed by local      
   private sector firms.                                                   
      Therefore, the committee recommends $26.5 million for the            
   humanitarian demining program, an increase of $1.0 million above the    
   President's budget request. The committee further recommends $28.9      
   million for the humanitarian assistance program that is used by the     
   regional commanders-in-chief for emergency response activities. This    
   represents a level of funding for this program that is equal to last    
   year's level in real terms. However, it does not include the $1.0       
   million that was requested to pay commercial carriers to deliver        
   privately-donated goods to foreign recipients. The committee directs the
   DOD to restrict its use of commercial carriers in this area to instances
   where such use enhances a military activity. The committee is also      
   concerned with the continued reliance upon the DOD for the procurement  
   of humanitarian daily rations that the committee indicated in the Senate
   report accompanying S. 1059 should be funded through the Department of  
   State.                                                                  
      The committee expects the Department of State in the future to fund  
   those activities and programs that do not require military unique       
   capabilities, and do not enhance the military mission. If the Department
   continues to request funding for activities that are clearly foreign    
   assistance, rather than activities related to a military mission, the   
   committee will recommend legislation providing strict guidelines on what
   activities can be funded through this program in the future.            
                                   OTHER ITEMS OF INTEREST                        

            Charlestown Naval Auxiliary Landing Field, Charlestown, Rhode Island   

      The Charlestown Naval Auxiliary Landing Field (CNALF), Rhode Island, 
   is a formerly used defense site (FUDS) that was used for pilot and      
   aviation crew training during World War II. In 1970, CNALF was closed   
   and reported as excess to the General Services Administration for       
   disposal in 1974. By deed, dated May 22, 1981, 172.4 acres were conveyed
   to the Town of Charlestown and in June 1982 an additional 55 acres was  
   conveyed.                                                               
      The site was determined eligible for the Defense Environmental       
   Restoration Program (DERP) for FUDS. In 1992, the Town of Charlestown,  
   Rhode Island, requested the consideration of a military warehouse and   
   two boiler houses for demolition because of hazards that existed prior  
   to disposal of the site. The town previously had not wanted these       
   buildings to be considered for demolition. In June 1993, the Army       
   recommended a building demolition project for these buildings, which was
   included in the fiscal year 1994 DERP FUDS workplan, but has been       
   continually delayed as a result of funding constraints. The Army has now
   tentatively rescheduled the CNALF building demolition activities for    
   fiscal year 2001.                                                       
      The committee is generally concerned about the lack of adequate      
   funding for DERP FUDS. Delayed action at sites like CNALF is further    
   reason for questions regarding the management of the FUDS Program. It is
   the committee's expectation that the Secretary of the Army would ensure 
   better management of the FUDS program, and specifically the CNALF site. 
   If the site demolition workplan cannot be executed in fiscal year 2001, 
   then the Secretary of the Army shall, not later than January 1, 2002,   
   provide a report to the congressional defense committees that explains  
   the Army's inaction.                                                    
            Commander-in-Chiefs Initiative Fund                                    

      The Department of Defense (DOD) and the Department of State (DOS)    
   have numerous programs and authorities to provide education and training
   to military and civilian personnel associated with foreign militaries.  
   Combatant commanders, who are charged with peacetime engagement with    
   foreign militaries in their respective geographic regions, unanimously  
   attest to the value of foreign military education and training. During  
   hearings this year before the committee, three combatant commanders and 
   the Director of the Central Intelligence Agency, praised foreign        
   military education and training as a very low-cost investment that      
   produces great results. These results are significant numbers of foreign
   military officials, many of whom rise to senior leadership positions,   
   military and civilian, within their respective nations who were         
   positively exposed to American democratic values, military              
   professionalism, and the role of the military within a democracy. All of
   these witnesses stressed that modest increases in foreign military      
   education and training programs would produce significant dividends in  
   the form of friendly, professional, military partners for the United    
   States.                                                                 
      A review of existing DOD authorities and use of available funds in   
   this area revealed that combatant commanders are authorized to use up to
   $2.0 million of the Commander-in-Chiefs Initiative Fund (CIF) for       
   foreign military education and training. However, the committee is      
   concerned that virtually none of this authority has been used in the    
   past several years, despite the testimony of our senior military and    
   civilian leadership on the importance of such education and training.   
      Therefore, the committee directs that $2.0 million of the $25.0      
   million authorized to be appropriated for the CIF (Operations and       
   Maintenance, Defense Wide, BA 01, Joint Chiefs of Staff) shall be used  
   only for foreign military education and training.                       
            Inventory of financial management and feeder systems                   

      Section 1007 of the National Defense Authorization Act for Fiscal    
   Year 2000 required the Department of Defense to include an inventory of 
   financial management and feeder systems in its biennial Financial       
   Management Improvement Plan. Section 1007 requires the Secretary of     
   Defense to develop a detailed plan for ensuring that systems have       
   appropriate interfaces and internal controls.                           
      In addition to the material required to be included in this inventory
   pursuant to section 1007, the committee directs the Secretary to        
   identify each system listed in the inventory as critical or non-critical
   and major or non-major, and provide the criteria used in making these   
   designations.                                                           
      It is the expectation of the committee that the Chief Financial      
   Officer and the Chief Information Officer of the                        

                    Department will certify the accuracy and completeness of the  
          inventory required by section 1007. The committee directs the           
          Comptroller General to review the Financial Management Improvement Plan 
          and report any findings and recommendations to the congressional defense
          committees.                                                             
            Joint computer-aided acquisition and logistics support (JCALS) program 

      The committee is pleased with the progress that the Joint            
   computer-aided acquisition and logistic support (JCALS) program has made
   during fiscal year 2000. JCALS is a demonstrated effective tool in the  
   automated technical manual area that has helped the Department of       
   Defense achieve its goals for cost-reduction and moving to paperless    
   operations. Beyond its traditional technical manual capability JCALS has
   also proven to be an effective tool in addressing the paper-intensive   
   acquisition and procurement processes used by the military services. The
   committee applauds these efforts by the Department to leverage its      
   significant investment in JCALS to support other initiatives in         
   acquisition and logistics, and would encourage even greater use of the  
   program in the future. The Department's ability to capitalize on        
   existing assets such as JCALS by making them multi-functional rather    
   than single purpose will pay dividends by minimizing investment in      
   duplicative systems development and support for the Department's        
   acquisition and logistics community. The committee directs the          
   Department to report to the congressional defense committees by March 1,
   2001, on the progress made to restructure the program to expand the     
   functionality and use of the JCALS program beyond the technical manual  
   capability.                                                             
            Mechanization of Contract Administration Service                       

      The committee is concerned that the Department of Defense will not   
   maintain adequate funding for Mechanization of Contract Administration  
   Service (MOCAS) pending full replacement by the Defense Procurement     
   Payment System (DPPS). The DPPS has experienced system problems that    
   have delayed the implementation of this system. It is critical that the 
   Department maintain the MOCAS system until the conversion is complete.  
   Failure to adequately fund MOCAS will lead to unacceptable delays in the
   payment of service, commercial, and payment vouchers, and force the     
   committee to seek further action.                                       
            National Defense Center for Environmental Excellence                   

      In the statement of managers to accompany the National Defense       
   Authorization Act for Fiscal Year 1999, the conferees directed the      
   Secretary of the Army to transfer the National Defense Center for       
   Environmental Excellence (NDCEE) to a new program element under the     
   control and oversight of the Assistant Secretary of the Army            
   (Installations and Environment). The conferees directed the Secretary to
   take such action based on concerns related to management and focus.     
      The committee notes that, through a memorandum dated March 14, 2000, 
   the Secretary successfully accomplished the transfer and provided       
   specific direction regarding the environmental technology focus of      
   NDCEE. The committee agrees with the Secretary's direction that the     
   NDCEE address technologies for all environmental quality issues, to     
   include pollution prevention, conservation, compliance, and restoration.
      It is the committees view that the NDCEE has significant potential to
   serve as a national asset that will promote demonstration/validation of 
   innovative technologies. It is anticipated that the NDCEE efforts will  
   serve to reduce the total ownership costs of the Department of Defense  
   (DOD) weapon systems. The committee is particularly interested in an    
   emphasis on demonstration/validation of viable technologies that address
   the complexities associated with environmental remediation of unexploded
   ordnance (UXO).                                                         
                       Pesticide contamination at the former Fort Devens, Devens,  
           Massachusetts, and other closed and active military installations       
      In order to transfer portions of Fort Devens in 1996, the Army made a
   finding of suitability to transfer (FOST) pursuant to section 120(h)(3) 
   of the Comprehensive Environmental Response, Compensation and Liability 
   Act (CERCLA) (42 U.S.C. 9601 et seq.). That finding of suitability      
   certified that a comprehensive assessment had been conducted to identify
   sources of hazardous contaminants and to specify that all remedial      
   actions had been taken. The FOST was based on the environmental baseline
   survey (EBS) that identified limited quantities of pesticides in        
   buildings used for storage of such chemicals at Fort Devens. Contrary to
   the Army's FOST, environmental testing conducted on behalf of           
   Massachusetts Development Finance Agency (MassDevelopment) revealed a   
   widespread and pervasive presence of pesticides in the soils. These     
   undisclosed environmental conditions have jeopardized the               
   MassDevelopment's implementation of its reuse plan at Fort Devens.      
      In early 1997, MassDevelopment notified the Army of the              
   extraordinarily high levels of pesticide contamination that existed at  
   locations which the Army had not disclosed prior to the 1996 property   
   transfer, and demanded Army remedial action pursuant to section         
   120(h)(3) of CERCLA. While the Army has participated in discussions with
   MassDevelopment about the undisclosed environmental conditions, the Army
   has not formally responded to the MassDevelopment notice or demand. In  
   these discussions the Army suggested that the Army may have no liability
   for the remediation of the pesticides.                                  
      The committee is very concerned about the Army's lack of             
   responsiveness and apparent inclination to deny remedial action         
   liabilities under section 120(h)(3) of CERCLA at Fort Devens. The       
   committee expects the Secretary of the Army to conduct cleanup of the   
   pesticide contamination, consistent with section 120(h)(3) and the      
   relevant congressional intent under CERCLA. The Secretary of Defense and
   the secretaries of the military departments will comply with all        
   environmental legal requirements, to include ``. . . any remedial action
   found to be necessary after the date of such transfer. . . .'' (42      
   U.S.C. 9620(h)(3)).                                                     
                       Revised requirements for report on Defense use of smart card
           as PKI authentication device carrier                                    
      The Secretary of Defense shall submit a report not later than        
   December 1, 2000 on the cost and feasibility of existing hard disk      
   storage technology or other technologies that could be used as a        
   Public-Private Key Infrastructure (PKI) authentication device. The      
   Secretary should include in this report a comparison of these           
   technologies on the basis of cost and performance to the Smart Card     
   discussed in the report required by section 374 of the National Defense 
   Authorization Act for Fiscal Year 2000. This review should not delay the
   Department's ongoing deployment of the Smart Card.                      

                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              

                                  SUBTITLE A--ACTIVE FORCES                       

            End strengths for active forces (sec. 401)                             

      The committee recommends a provision that would authorize active duty
   end strengths for fiscal year 2001, as shown below:                     

                                                                               

                  2000  Authorization    2001  Request     2001  Recommendation  

Army                          480,000          480,000                  480,000  
Navy                          372,037          372,000                  372,000  
Marine Corps                  172,518          172,600                  172,600  
Air Force                     360,877          357,000                  357,000  

                                 SUBTITLE B--RESERVE FORCES                       

            End strengths for Selected Reserve (sec. 411)                          

      The committee recommends a provision that would authorize Selected   
   Reserve end strengths for fiscal year 2001, as shown below:             

                                                                                            

                                                2000 Authorization                 Fiscal Year--               

                                                                       2001 Request     2001 Recommendation  

The Army National Guard of the United States                350,000         350,000                 350,088  
The Army Reserve                                            205,000         205,000                 205,000  
The Naval Reserve                                            90,288          88,900                  88,900  
The Marine Corps Reserve                                     39,624          39,500                  39,558  
The Air National Guard of the United States                 106,678         108,000                 108,022  
The Air Force Reserve                                        73,708          74,300                  74,300  
The Coast Guard Reserve                                       8,000           8,000                   8,500  

      The increase of 88 in the Army National Guard and 22 in the Air      
   National Guard is necessary to support five additional Weapons of Mass  
   Destruction-Civil Support Teams.                                        
      The increase of 58 above the request in the Marine Corps Reserve end 
   strength is necessary to accommodate an additional four officers and 54 
   enlisted Active Reserve personnel on active duty in support of the      
   reserves to enhance the readiness of the Marine Corps Reserve.          
      The increase in the Coast Guard Reserve end strength is the          
   continuation of the committee's efforts to restore the Coast Guard      
   Reserve to a robust augmentation force. An Office of Management and     
   Budget study has validated the requirement that the Coast Guard Reserve 
   strength be 12,293. The Coast Guard Reserve is to be commended for      
   recovering from the severe shortfall of the past several years. The     
   committee recommends that the appropriation for the Coast Guard Reserve 
   be increased from $73.6 million to $80.0 million.                       
                       End strengths for reserves on active duty in support of the 
           reserves (sec. 412)                                                     
      The committee recommends a provision that would authorize the full   
   time support end strengths for fiscal year 2001, as shown below:        

                                                                                           

                                                2000 Authorization                 Fiscal Year--               

                                                                       2001 Request     2001 Recommendation  

The Army National Guard of the United States                 22,430          22,448                  22,536  
The Army Reserve                                             12,804          12,806                  12,806  
The Naval Reserve                                            15,010          14,649                  14,649  
The Marine Corps Reserve                                      2,272           2,203                   2,261  
The Air National Guard of the United States                  11,157          11,148                  11,170  
The Air Force Reserve                                         1,134           1,278                   1,278  

      The increase of 88 in the Army National Guard and 22 in the Air      
   National Guard is necessary to support five additional Weapons of Mass  
   Destruction-Civil Support Teams.                                        
      The recommended increase of 58 above the request in the Marine Corps 
   Reserve end strength will permit the Marine Corps Reserve to retain four
   officers and 54 enlisted Active Reserve personnel on active duty in     
   support of the reserves to enhance the readiness of the Marine Corps    
   Reserve.                                                                
            End strengths for military technicians (dual status) (sec. 413)        

      The committee recommends a provision that would authorize the minimum
   level of dual status technician end strengths for fiscal year 2001, as  
   shown below:                                                            

                                                                                           

                                                2000 Authorization                 Fiscal Year--               

                                                                       2001 Request     2001 Recommendation  

The Army National Guard of the United States                 23,125          22,357                  22,357  
The Army Reserve                                              6,474           5,249                   5,249  
The Air National Guard of the United States                  22,247          22,221                  22,221  
The Air Force Reserve                                         9,785           9,733                   9,733  

            Fiscal year 2001 limitation on non-dual status technicians (sec. 414)  

      The committee recommends a provision that would establish numerical  
   limits on the number of non-dual status technicians who may be employed 
   in the Department of Defense as of September 30, 2001, as shown below:  

                                                                                          

                                                2000 Authorization                 Fiscal Year--               

                                                                       2001 Request     2001 Recommendation  

The Army National Guard of the United States                  1,180           1,600                   1,600  
The Army Reserve                                              1,295           1,195                   1,195  
The Air National Guard of the United States                     342             326                     326  
The Air Force Reserve                                             0               0                       0  

                       Increase in number of members in certain grades authorized  
           to be on active duty in support of the reserves (sec. 415)              
      The committee recommends a provision that would increase the control 
   grades for Active Guard Reserve personnel. The recommended control grade
   increases support changes in the roles and missions of the reserve      
   components.                                                             
                  SUBTITLE C--OTHER MATTERS RELATING TO PERSONNEL STRENGTHS       

                       Suspension of strength limitations during war or national   
           emergency (sec. 421)                                                    
      The committee recommends a provision that would authorize the        
   Secretary of Defense to suspend the grade limitations for senior        
   enlisted personnel and senior reservists on active duty in support of   
   the reserve during time of war or national emergency.                   
                       Exclusion of certain reserve component members on active    
           duty for more than 180 days from active component end strengths (sec.   
           422)                                                                    

      The committee recommends a provision that would exempt a number,     
   limited to not more than two tenths of one percent of the active duty   
   end strength, of reserve component members on active duty performing    
   special work in support of the armed forces and the combatant commands  
   from counting against the active component end strengths. MDRV          
                       Exclusion of Army and Air Force medical and dental officers 
           from limitations on strengths of reserve commissioned officers in grades
           below brigadier general (sec. 423)                                      
      The committee recommends a provision that would exempt reserve       
   component medical and dental officers of the Army and Air Force from the
   grade ceilingMDRV limits on the same basis as active component and Naval
   Reserve medical and dental officers. MDRV                               
                       Authority for temporary increases in number of reserve      
           personnel serving on active duty or full-time National Guard duty in    
           certain grades (sec. 424)                                               
      The committee recommends a provision that would authorize the        
   Secretary of Defense to temporarily increase the number of reserve      
   personnel serving on active duty or full-time National Guard duty in    
   certain grades. The recommended provision would permit the Secretary of 
   Defense to increase, by not more than two percent, the number of reserve
   component personnel serving on active duty or full-time National Guard  
   duty only when the Secretary has authorized an increase in end strength 
   for a fiscal year. MDRV                                                 
                       Temporary exemption of Director of the National Security    
           Agency from limitations on number of Air Force officers above major     
           general (sec. 425)                                                      
      The committee recommends a provision that would temporarily exempt   
   the Air Force officer serving as the Director of the National Security  
   Agency from the limitations on the number of Air Force officers         
   authorized to serve on active duty in grades above major general. The   
   exemption of the recommended provision would expire on September 30,    
   2005. MDRV                                                              
                    SUBTITLE DMDRV--AUTHORIZATION OF APPROPRIATIONS MDRV          

            Authorization of appropriations for military personnel (sec. 431)      

      The committee recommends a provision that would authorize a total of 
   $75,632,266,000 to be appropriated to the Department of Defense for     
   military personnel.                                                     
      The budget request of $75,801,666,000 was reduced by $172,600,000 due
   to adjustments in foreign currency fluctuation and military personnel   
   under execution. $3,200,000 was added to accommodate the recommended    
   increase in full-time reservists in the Army National Guard and the Air 
   National Guard.                                                         

                             TITLE V--MILITARY PERSONNEL POLICY                   

                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

                       Eligibility of Army Reserve colonels and brigadier generals 
           for position vacancy promotions (sec. 501)                              
      The committee recommends a provision that would authorize the        
   Secretary of the Army to use a single selection board to recommend Army 
   Reserve colonels and brigadier generals for assignment to vacant        
   positions and to recommend the colonels or brigadier generals for       
   promotion to brigadier general or major general.                        
            Promotion Zones for Coast Guard Reserve Officers (sec. 502)            

      The committee recommends a provision that would authorize the        
   Secretary of Transportation the same flexibility as secretaries of the  
   military departments to establish promotion zones for the Coast Guard   
   Reserve based on service need.                                          
                       Time for release of officer promotion selection board       
           reports (sec. 503)                                                      
      The committee recommends a provision that would authorize the        
   Secretary of Defense to make public the names of officers recommended   
   for promotion by a selection board prior to approval of the board by the
   President. The recommended provision would permit reserve component     
   promotion board results to be made public in a more timely manner and in
   a manner consistent with that used for active component promotion board 
   results.                                                                
                       Clarification of authority for posthumous commissions and   
           warrants (sec. 504)                                                     
      The committee recommends a provision that would clarify the existing 
   statute concerning the authority for posthumous promotion to include an 
   officer who had been selected for promotion but died before the service 
   secretary approved the recommendation of the selection board.           
                       Inapplicability of active-duty list promotion, separation,  
           and involuntary retirement authorities to reserve general and flag      
           officers serving in certain positions designated by the Chairman of the 
           Joint Chiefs of Staff (sec. 505)                                        
      The committee recommends a provision that would exclude reserve      
   component general and flag officers in certain joint duty assignments   
   from the active duty list for promotion purposes. These reserve         
   component general and flag officers would be considered for promotion on
   the active-status list of their reserve component.                      
            Review of actions of selection boards (sec. 506)                       

      The committee recommends a provision that would authorize the        
   secretary concerned to correct a person's military records in accordance
   with a recommendation made by a special board. The remedy may be        
   restoration to active duty or status, if the person was separated,      
   retired, or transferred to the retired or inactive reserve as the result
   of a recommendation made by a selection board; or the person may elect  
   to receive back pay and allowances in lieu of restoration. If a special 
   board does not recommend the correction, the action of the original     
   selection board shall be considered as final. The secretaries concerned 
   are to prescribe regulations to carry out this provision, which may     
   include the circumstances under which consideration by a special board  
   requires an application by the person, and applicable time limits. All  
   such regulations are to be subject to the approval of the Secretary of  
   Defense.                                                                
      A person challenging the action or recommendation of a selection     
   board, or a secretary's action thereon, is not entitled to relief in any
   judicial proceeding unless the matter has first been considered by a    
   special board or a secretary has denied such consideration. A court     
   reviewing a special board's action or recommendation or the action of a 
   secretary thereon may hold it unlawful only on the basis that it did not
   comply with applicable procedures, or was contrary to law. If the review
   is of a secretary's denial of special board consideration, the bases are
   the same, with the addition of the arbitrary and capricious standard.   
   The remedies provided under this provision are exclusive. This provision
   does not limit the jurisdiction of any federal court to determine the   
   validity of any relevant statute, regulation, or policy, but the        
   remedies set out herein are to be the exclusive remedies for any person 
   challenging the action of a selection board on the basis of any         
   invalidity. These provisions also do not limit the secretaries'         
   authority to correct military records through boards for correction of  
   such records under section 1552 of title 10, United States Code. A      
   special board may include a board for correction of military or naval   
   records, if designated by the secretary concerned. For these purposes, a
   ``selection board'' includes boards for continuation on active duty, or 
   selective early retirement, but does not include promotion selection    
   boards. Similarly, the term ``special board'' does not include a        
   promotion special selection board.                                      

      The provision would also amend section 628 of title 10, United States
   Code, the statute dealing with promotion special selection boards, to   
   require exhaustion of a person's remedies before a special selection    
   board (or the Secretary of Defense's rejection of the claim without     
   consideration by such a board). No official or court of the United      
   States may grant any relief on a promotion claim until the officer or   
   former officer has been selected for promotion by a promotion special   
   selection board and the board's report has been approved by the         
   President. A court may review a secretary's determination not to convene
   a special selection board. If the determination is found to be          
   arbitrary, capricious, not based on substantial evidence, or contrary to
   law, the secretary concerned shall convene such a board. Similarly, a   
   court may review the recommendation of a special selection board and, if
   it finds that the recommendation was contrary to law or involved        
   material error, the secretary must provide for reconsideration of the   
   officer or former officer by another special selection board. The       
   provision has additional requirements on exclusivity and remedies       
   similar to those provided for on continuation and special early         
   retirement boards referred to above. As in the earlier provision,       
   nothing herein would limit the authority of correction boards under     
   section 1552 of title 10, United States Code.                           
      The provision would take effect on the date of enactment of this Act 
   and would apply to all proceedings pending on or after that date, but   
   would not apply with respect to any action commenced in a court of the  
   United States before the date of enactment.                             
                       Extension to all Air Force biomedical sciences officers of  
           authority to retain until specified age (sec. 507)                      
      The committee recommends a provision that would authorize the        
   Secretary of the Air Force to retain, with the officer's consent,       
   biomedical sciences officers. The recommended provision would provide   
   the Secretary of the Air Force with the same authority to retain        
   biomedical sciences officers as currently used by the Secretary of the  
   Army and the Secretary of the Navy.                                     
                       Termination of application requirement for consideration of 
           officers for continuation on the Reserve Active-Status List (sec. 508)  
      The committee recommends a provision that would terminate the        
   requirement that a reserve officer apply for continuation on the Reserve
   Active-Status List. The recommended provision would permit the secretary
   of a military department to offer continuation on the Reserve           
   Active-Status List to an officer who was recommended for continuation by
   a board without requiring the officer to apply for such consideration.  
   The officer would retain the option to accept or decline such an offer. 
                       Technical corrections relating to retired grade of reserve  
           commissioned officers (sec. 509)                                        
      The committee recommends a provision that would eliminate conflicting
   provisions regarding the time-in-grade requirement to retire at the     
   current grade held by a reserve component officer. The recommended      
   provision would apply to reserve commissioned officers promoted as a    
   result of a selection board recommendation after October 1, 1996, the   
   effective date of the Reserve Officer Personnel Management Act.         
                       Grade of chiefs of reserve components and directors of      
           National Guard components (sec. 510)                                    
      The committee recommends a provision that would require the          
   secretaries of the military departments to, within 90 days of enactment 
   of this Act, increase the grade of the Chief of Army Reserve, Chief of  
   Naval Reserve, Chief of Air Force Reserve, Director of the Army National
   Guard, and the Director of the Air National Guard to lieutenant general 
   or, in the case of the Navy, vice admiral. The recommended provision    
   would permit the Secretary of the Navy to increase the grade of the     
   Chief of Marine Corps Reserve to lieutenant general.                    
                            SUBTITLE B--JOINT OFFICER MANAGEMENT                  

            Joint officer management (sec. 521 528)                                

      The committee recommends a series of provisions that would streamline
   the designation and management of joint speciality officers. The        
   recommended provisions would simplify the requirements to be designated 
   as a joint speciality officer, would require that Joint Professional    
   Military Training be conducted in residence, would establish the        
   promotion objectives for joint speciality officers as a group to be     
   equal to or greater than the rate for officers of the same armed force  
   in the same grade and competitive category serving on the headquarters  
   staff of that armed force, would establish the minimum tour length to   
   qualify for a joint tour, and would modify the required contents of the 
   annual report to comply with the simplified management requirements.    
                             SUBTITLE C--EDUCATION AND TRAINING                   

                       Eligibility of children of reserves for Presidential        
           appointment to service academies (sec. 541)                             
      The committee recommends a provision that would make the children of 
   members of reserve components and retired or retirement-eligible        
   reservists eligible for presidential appointments to the service        
   academies on the same basis as children of active duty or retired active
   duty personnel.                                                         
                       Selection of foreign students to receive instruction at     
           service academies (sec. 542)                                            
      The committee recommends a provision that would require the          
   secretaries of the military departments to give priority consideration  
   to foreign students applying for admission to the service academies who 
   have a national service obligation upon graduation from the academy.    
                       Repeal of contingent funding increase for Junior Reserve    
           Officers Training Corps (sec. 543)                                      
      The committee recommends a provision that would repeal the           
   requirement that any amount in excess of $62,500,000 appropriated for   
   the National Guard Youth Challenge Program be made available for the    
   Junior Reserve Officers Training Corps.                                 
                       Revision of authority for Marine Corps platoon leader class 
           tuition assistance program (sec. 544)                                   
      The committee recommends a provision that would authorize members of 
   the Marine Corps platoon leader class to continue to receive tuition    
   assistance while in pursuit of an undergraduate degree. Currently,      
   participants in the Marine Corps platoon leader class lose their        
   eligibility to use the tuition assistance program once they are         
   commissioned.                                                           
                         SUBTITLE D--MATTERS RELATING TO RECRUITING               

            Army recruiting pilot programs (sec. 551)                              

      The committee recommends a provision that would require the Secretary
   of the Army to carry out three distinct pilot programs to assess the    
   effectiveness for creating enhanced opportunities for recruiters and to 
   improve the effectiveness of Army recruiting programs. The recommended  
   provision would require the pilot programs to be carried out during a   
   period beginning on                                                     

                    October 1, 2000 and ending on December 31, 2005. The Secretary
          of the Army would be required to submit, not later than February 1,     
          2006, a separate report that would assess the value of each of the pilot
          programs and make recommendations for permanent authority to the        
          Committees on Armed Services of the Senate and the House of             
          Representatives.                                                        
                       Enhancement of the joint and service recruitment market     
           research and advertising programs (sec. 552)                            
      The committee recommends a provision that would direct the Secretary 
   of Defense to take the necessary actions to enhance joint and service   
   recruiting and advertising programs through an aggressive market        
   research program and would waive certain requirements of the Paperwork  
   Reduction Act to enhance the flexibility of the Secretary of Defense and
   the military services to react to changes in the recruiting market.     
            Access to secondary schools for military recruiting purposes (sec. 553)

      The committee recommends a provision that would, effective July 1,   
   2002, require local educational agencies to provide military recruiters 
   access to secondary schools on the same basis as colleges, universities,
   and private sector employers, unless the governing body of the local    
   educational agency acts by majority vote to deny access to military     
   recruiters. The recommended provision would also establish a process to 
   ensure that secondary schools provide military recruiters access to the 
   campus, directories, and student lists on the same basis as that        
   afforded colleges, universities, and private sector employers. The      
   recommended provision would require the relevant military service to    
   send a senior official to meet with the local educational agency within 
   120 days of a military recruiter being denied access. If the secondary  
   school continues to deny access to military recruiters the Secretary of 
   Defense shall, within 60 days, communicate with the governor of the     
   state requesting assistance in restoring access for military recruiters.
   A copy of this correspondence shall be provided to the Secretary of     
   Education. If one year after the date of the transmittal of the letter  
   from the Secretary of Defense the local educational agency continues to 
   deny access to at least two of the armed forces, the Secretary of       
   Defense shall notify the Committees on Armed Services of the Senate and 
   the House of Representatives, and the members of the House of           
   Representatives and the Senate who represent the district or districts  
   in which the local educational agency operates.                         
      Today, more than 600 high schools deny access to military recruiters 
   from three or more services. Thousands of high schools deny access to   
   military recruiters of at least one service. The Department of Defense, 
   the military services, and the Department of Education have not         
   aggressively pursued restoration of access to these high schools despite
   the requests of the military recruiters. The recommended provision would
   establish a process through which the military services, the Department 
   of Defense, the Department of Education, the governors, and the local   
   educational agencies would work together to establish local procedures  
   and practices that would permit military recruiters the same access to  
   high school students as colleges and universities. The committee        
   believes that every high school student deserves the opportunity to     
   learn of the opportunities of military service just as they learn of the
   opportunities associate with college or private sector employment.      
      The committee directs the Secretary of Defense to report, not later  
   than March 1, 2001, to the Committees on Armed Services of the Senate   
   and the House of Representatives outlining his plan to eliminate the    
   backlog of high schools that currently deny access to military          
   recruiters. The required report shall include specific milestones for   
   each service.                                                           
                                  SUBTITLE E--OTHER MATTERS                       

                       Authority for award of Medal of Honor to certain specified  
           persons (sec. 561)                                                      
      The committee recommends a provision that would waive the statutory  
   time limits and authorize the President to award the Medal of Honor to  
   Ed W. Freeman of Boise, Idaho for valor during the Vietnam Conflict; to 
   James K. Okubo of Detroit, Michigan for valor during World War II; and  
   to Andrew J. Smith of Massachusetts for valor during the Civil War.     
                       Waiver of time limitations for award of certain decorations 
           to certain persons (sec. 562)                                           
      The committee recommends a provision that would waive the statutory  
   time limits for award of military decorations to certain individuals who
   have been recommended by the service secretaries for these awards.      
                       Ineligibility for involuntary separation pay upon           
           declination of selection for continuation on active duty (sec. 563)     
      The committee recommends a provision that would make an officer, who 
   has twice failed selection for promotion to the next higher grade, and  
   who was offered the opportunity to continue on active duty, and who     
   declines this offer, ineligible to receive involuntary separation pay.  
            Recognition by states of military testamentary instruments (sec. 564)  

      The committee recommends a provision that would exempt a military    
   testamentary instrument from any requirement of form, formality, or     
   recording before probate under the laws of a state; and would provide   
   that such an instrument has the same legal effect as a testamentary     
   instrument prepared and executed in accordance with the laws of the     
   state in which it is presented for probate. A ``military testamentary   
   instrument'' is one prepared with testamentary intent in accordance with
   regulations prescribed under this provision by a person eligible for    
   military legal assistance, which makes a disposition of that person's   
   property, and takes effect upon his death. An instrument is a valid     
   military testamentary instrument only if: it is executed by the testator
   (or in his presence, by his direction, and on his behalf); it is        
   executed in the presence of a military legal assistance counsel, whether
   a judge advocate or a civilian attorney; it is executed in the presence 
   of at least two disinterested witnesses; and it is executed in          
   accordance with any additional requirements as may be provided by       
   regulation. In addition, a military testamentary instrument may be      
   regarded as self-proving with respect to the genuiness of the signature,
   the testator's status and title, and compliance with applicable         
   regulations if certain prescribed additional formalities are complied   
   with.                                                                   
                       Sense of Congress on the court-martial conviction of Captain
           Charles Butler McVay, Commander of the USS Indianapolis, and the        
           courageous service of its crew (sec. 565)                               
      The committee recommends a provision that would express a sense of   
   Congress that, on the basis of facts presented in a public hearing      
   conducted by the Committee on Armed Services of the Senate on September 
   14, 1999, the American people should now recognize Captain McVay's lack 
   of culpability for the loss of the USS Indianapolis and the lives of the
   men who died as a result of the sinking and that Captain McVay's        
   military record now reflect that he is exonerated for the loss of the   
   ship and its crew; and that Congress strongly encourages the Secretary  
   of the Navy to award a Navy Unit Commendation to the USS Indianapolis   
   and its final crew.                                                     
                                   OTHER ITEMS OF INTEREST                        


            Automated in- and out-processing of military personnel                 

      The committee is aware that Fort McPherson, Georgia, a U.S. Army     
   installation, is conducting a pilot program using standard              
   commercial-off-the-shelf software products to implement an electronic   
   one-stop in/out-processing system. The committee believes that any      
   effort that reduces the personnel time lost to in/out-processing and    
   streamlines these processes while improving efficiency is a positive    
   initiative that should be considered for expanded use. The committee    
   urges the Secretary of the Navy and the Secretary of the Air Force to   
   review the pilot program at Fort McPherson, Georgia, and consider       
   conducting a similar pilot program at several bases. The committee      
   believes that such an electronic one-stop in/out-processing concept     
   would work very well at any installation, especially at an installation 
   that is using smart cards in other base support activities. The         
   committee also urges the secretaries of the military departments to     
   consider expanding the concept of electronic one-stop in/out- processing
   to civilian employees.                                                  
            Funeral honors for members of the uniformed services                   

      Section 578 of the National Defense Authorization Act for Fiscal Year
   2000 requires the Secretary of Defense to ensure that, upon request, a  
   funeral honors detail be provided for the funeral of any veteran. For   
   the purposes of this provision, the term veteran was defined to include 
   a decedent who served in the active military, naval, or air service. The
   committee directs the Secretary of Defense, in consultation with the    
   Secretary of Veterans Affairs, the Secretary of Health and Human        
   Services, and the Secretary of Commerce, to convene a conference, not   
   later than December 31, 2000, to assess the desirability and feasibility
   of expanding eligibility for a funeral honors detail to former members  
   of the Commissioned Officer Corps of the U.S. Public Health Service and 
   the National Oceanic and Atmospheric Administration. The committee      
   further directs the Secretary of Defense to report the findings and     
   recommendations resulting from the conference to the Committees on Armed
   Services of the Senate and the House of Representatives not later than  
   March 1, 2001.                                                          
            Information related to alternatives to the Survivor Benefit Plan       

      The committee recognizes that the Department of Defense has          
   consistently and commendably administered, through the military         
   departments, mandatory Transition Assistance Programs (TAP) for military
   members prior to separation. Among the mandatory briefing subjects      
   during these pre-retirement programs is a session on the Survivor       
   Benefit Plan (SBP). The committee notes that, today, military members   
   are retiring at younger ages and with an increased actuarial longevity  
   in their retirement years. This fact should have a substantial positive 
   impact on the financial condition of the funds supporting SBP. The      
   committee also notes that, many times, during the required TAP seminars,
   alternatives to the SBP are excluded from presentation or exposure even 
   though many in the retiring population might benefit from considering   
   alternatives to SBP during pre-retirement processing. The committee     
   directs the Secretary of Defense to provide, not later than January 30, 
   2001, to the Committees on Armed Services of the Senate and the House of
   Representatives, a description of the TAP program and its content by    
   service, including a description of the methods of exposure, if any, to 
   information on to SBP; the number of retirees by pay grade for the last 
   three years; and the number of individuals in the same categories with  
   full participation in SBP (55 percent), those who elected a reduced SBP 
   between 35 and 55 percent, those who elected a reduced SBP below 35     
   percent, and those who declined SBP.                                    
            Prevention of alcohol-related incidents                                

      The committee is aware of the potential for reducing the incidence of
   alcohol-related automobile accidents and incidents of misconduct through
   the use of portable one-step, saliva-based test strips that provide an  
   immediate estimate of blood alcohol concentration. The committee directs
   the secretaries of the military departments to examine how and if the   
   use of personal, one-step, blood-alcohol concentration tests might      
   enhance ongoing efforts to reduce the incidence of drunk driving and    
   alcohol-related misconduct on military bases and installations.         
            Study on the use of peyote by military personnel                       

      The committee is aware that current Department of Defense policy     
   permits, as an accommodation of a religious practice, service members   
   who are Indian Tribe members to use peyote, a hallucinogenic drug,      
   providing it is not used on a military installation and is used at least
   24 hours prior to any scheduled duty. Although the committee supports   
   reasonable accommodation of religious practices of military personnel,  
   the committee is also concerned that the Department of Defense has not  
   conducted a comprehensive study of the impact the use of peyote may have
   on the long-term health of military personnel and on military safety and
   readiness. To ensure that these concerns are addressed, the committee   
   directs the Secretary of Defense to conduct a study, in coordination    
   with the National Institute on Drug Abuse, on the real and potential    
   hazards related to peyote use. The Secretary of Defense shall report the
   findings of the study and any recommendations to the Committees on Armed
   Services of the Senate and the House of Representatives prior to        
   finalizing the Department of Defense directive regarding accommodation  
   of religious practices within the Department.                           

                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          

                               SUBTITLE A--PAY AND ALLOWANCES                     

            Increase in basic pay for Fiscal Year 2001 (sec. 601)                  

      The committee recommends a provision that would waive section 1009 of
   title 37, United States Code, and increase the rates of basic pay for   
   members of the uniformed services by 3.7 percent. This increase would be
   effective January 1, 2001.                                              
            Corrections for basic pay tables (sec. 602)                            

      The committee recommends a provision that would make several         
   technical corrections to the basic pay tables for the uniformed         
   services. The recommended provision would change the pay table as it    
   pertains to monthly basic pay for members of the Joint Chiefs of Staff  
   and the Commandant of the Coast Guard from $12,441.00 to $12,488.70.    
   Since the pay of these officers is capped under other provisions of law,
   there will be no change in the pay these officers receive. The          
   recommended provision would also change the monthly basic pay for       
   members serving as Sergeant Major of the Army, Master Chief Petty Office
   of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of  
   the Marine Corps, or Master Chief Petty Officer of the Coast Guard from 
   $4,701.00 to $4,719.00. The recommended changes would be effective July 
   1, 2000.                                                                
            Pay in lieu of allowance for funeral honors duty (sec. 603)            

      The committee recommends a provision that would authorize the        
   secretary of a military department to pay a reserve component member who
   performs funeral honors duty using either the stipend authorized in the 
   National Defense Authorization Act for Fiscal Year 2000 or one day of   
   basic pay, as if the funeral honor duty was a unit training assembly.   
                       Clarification of service excluded in computation of         
           creditable service as a Marine Corps officer (sec. 604)                 
      The committee recommends a provision that would clarify that the     
   limitation on creditable service computation as a result of accepting   
   tuition assistance applies only to service as an enlisted member and not
   as a commissioned officer.                                              
            Calculation of Basic Allowance for Housing (sec. 605)                  

      The committee recommends a provision that would authorize the        
   Secretary of Defense to prescribe the Basic Allowance for Housing based 
   on the cost of adequate housing for civilians of comparable income      
   levels in the area at rates that would reduce or eliminate the member's 
   out-of-pocket expenses. The recommended provision would eliminate the   
   current requirement that 15 percent of the estimated housing expenses   
   for military personnel be paid by the service member.                   
                       Eligibility of members in grade E 4 to receive basic        
           allowance for housing while on sea duty (sec. 606)                      
      The committee recommends a provision that would authorize the payment
   of the basic allowance for housing to members serving in the grade of E 
   4, without dependents, who are assigned to sea duty in ships. The       
   recommended provision would authorize the Secretary of the Navy to      
   permit an E 4 assigned to a ship to live off-base and receive the basic 
   allowance for housing while that ship is in port.                       
                       Personal money allowance for the senior enlisted members of 
           the armed forces (sec. 607)                                             
      The committee recommends a provision that would authorize payment of 
   a personal money allowance of $2,000 per year to the Sergeant Major of  
   the Army, the Master Chief Petty Officer of the Navy, the Chief Master  
   Sergeant of the Air Force, the Sergeant Major of the Marine Corps, and  
   the Master Chief Petty Officer of the Coast Guard. The personal money   
   allowance is intended to defray expenses incurred in connection with    
   official duties not reimbursable through the use of Official            
   Representation Funds. The Personal Money Allowance is currently         
   authorized for certain senior officers.                                 
            Increased uniform allowances for officers (sec. 608)                   

      The committee recommends a provision that would increase the initial 
   uniform allowance for officers from $200 to $400 and the additional     
   uniform allowance for officers from $100 to $200.                       
                       Cabinet-level authority to prescribe requirements and       
           allowance for clothing of enlisted members (sec. 609)                   
      The committee recommends a provision that would authorize the        
   Secretary of Defense, and the Secretary of Transportation with respect  
   to the Coast Guard when it is not operating as a service of the Navy, to
   prescribe the clothing to be furnished annually to enlisted members and 
   to establish the amount of the cash allowance paid when the prescribed  
   clothing is not provided.                                               

                       SUBTITLE B--BONUSES AND SPECIAL INCENTIVE PAYS             

                       Extension of certain bonuses and special pay authorities for
           reserve forces (sec. 611)                                               
      The committee recommends a provision that would extend, until        
   December 1, 2001, the authority to pay the special pay for critically   
   short wartime health care specialists in the Selected Reserve, the      
   Selected Reserve reenlistment bonuses, the Selected Reserve enlistment  
   bonuses, the special pay for enlisted members assigned to certain high  
   priority units in the Selected Reserve, the Selected Reserve affiliation
   bonus, the Ready Reserve enlistment and reenlistment bonus, the         
   repayment of education loans for certain health professionals who serve 
   in the Selected Reserve, and the prior service enlistment bonus.        
                       Extension of certain bonuses and special pay authorities for
           nurse officer candidates, registered nurses, and nurse anesthetists     
           (sec. 612)                                                              
      The committee recommends a provision that would extend, until        
   December 1, 2001, the authority to pay certain bonuses and a special pay
   for nurse officer candidates, registered nurses, and nurse anesthetists.
                       Extension of authorities relating to payment of other       
           bonuses and special pays (sec. 613)                                     
      The committee recommends a provision that would extend, until        
   December 1, 2001, the authority to pay the aviation officer retention   
   bonus, the reenlistment bonus for active members, the enlistment bonuses
   for critical skills, the Army enlistment bonus, the special pay for     
   nuclear qualified officers who extend the period of active service, the 
   nuclear career accession bonus and the nuclear career annual incentive  
   bonus.                                                                  
                       Consistency of authorities for special pay for reserve      
           medical and dental officers (sec. 614)                                  
      The committee recommends a provision that would make the amount of   
   special pays for reserve medical and dental officers consistent.        
   Currently, reserve component medical officers and reserve component     
   dental officers receive disparate pays for similar qualifications and   
   periods of service.                                                     
            Special pay for physician assistants of the Coast Guard (sec. 615)     

      The committee recommends a provision that would authorize the payment
   of a special pay to Coast Guard physician assistants on the same basis  
   as non-physician health care providers in the military services.        
                       Authorization of special pay and accession bonus for        
           pharmacy officers (sec. 616)                                            
      The committee recommends a provision that would authorize the        
   secretary of a military department or, in the case of the Public Health 
   Service Corps, the Secretary of Health and Human Services, to pay a     
   special pay and an accession bonus for pharmacy officers. The           
   recommended provision would provide the military departments and the    
   Public Health Service additional incentives to recruit and retain       
   trained pharmacy officers.                                              
            Corrections of references to Air Force veterinarians (sec. 617)        

      The committee recommends a provision that would clarify that the     
   special pay for board certified veterinarians in the armed forces and   
   the Public Health Service includes Air Force biomedical sciences        
   officers who hold a degree in veterinary medicine.                      
                       Entitlement of active duty officers of the Public Health    
           Service Corps to special pays and bonuses of health professional        
           officers of the armed forces (sec. 618)                                 
      The committee recommends a provision that would make the special pays
   and bonuses for active duty officers of the Public Health Service Corps 
   equal to those of health professional officers of the armed forces. The 
   recommended provision would eliminate inequities in the special pays and
   bonuses paid to health professionals of the uniformed services.         
            Career sea pay (sec. 619)                                              

      The committee recommends a provision that would authorize the        
   secretary of a military department to establish the rates of career sea 
   pay up to a limit of $750 per month and would increase the maximum      
   career sea pay premium pay from $100 per month to $350 per month for    
   consecutive or cumulative duty at sea.                                  
            Increased maximum rate of special duty pay assignment pay (sec. 620)   


      The committee recommends a provision that would increase the limit on
   special duty assignment pay from $275 per month to $600 per month. The  
   secretary of a military department would retain the flexibility to      
   establish the rate of special duty assignment pay within the maximum    
   limit to meet the needs of the service. For those assignments common to 
   all services, such as recruiters, the Secretary of Defense would ensure 
   that the rate of the special duty assignment pay is consistent among the
   services.                                                               
                       Expansion of applicability of authority for critical skills 
           enlistment bonus to include all armed forces (sec. 621)                 
      The committee recommends a provision that would extend, to all the   
   services, the authority, now available only to the Army, to offer a     
   bonus for enlistment for a period of two years in a critical skill.     
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

                       Advance payments for temporary lodging of members and       
           dependents (sec. 631)                                                   
      The committee recommends a provision that would authorize the        
   secretary of a military department to pay the temporary lodging         
   allowance in advance of the incurrence of the expenses. Currently,      
   payment of the temporary lodging allowance must be paid after a service 
   member pays the bills and files a claim. The recommended provision would
   also require the Secretary of a military department to consider all     
   elements of the cost of living to service members and their families,   
   including the cost of housing, subsistence and necessary incidental     
   expenses, when determining the per diem allowance for a member on duty  
   outside the Continental United States in a travel status.               
                       Incentive for shipping and storing household goods in less  
           than average weights (sec. 632)                                         
      The committee recommends a provision that would authorize the        
   secretary of a military department to pay a service member a share of   
   the amount of savings resulting from the service member shipping or     
   storing a lower household good or baggage weight than the average weight
   shipped or stored by members of the same grade and dependent status.    
            Expansion of funded student travel (sec. 633)                          

      The committee recommends a provision that would authorize unmarried  
   military dependents, under the age of 23 and enrolled in an accredited, 
   full-time graduate degree program or an accredited vocational technical 
   educational program in the Continental United States, one funded round  
   trip per year to the sponsor's overseas duty location. Currently, only  
   dependents in secondary or undergraduate educational programs are       
   entitled to this funded travel.                                         
                       Benefits for members not transporting personal motor        
           vehicles overseas (sec. 634)                                            
      The committee recommends a provision that would authorize the        
   secretary of a military department to pay a service member a share of   
   the savings that accrue when an authorized member elects not to ship    
   their personal vehicle overseas at government expense. The recommended  
   provision would also limit the amount payable to store a personal       
   vehicle in lieu of the authorized shipment of the vehicle to an amount  
   equal to the cost that would have been incurred by shipping the vehicle 
   overseas and back.                                                      
                               SUBTITLE D--RETIREMENT BENEFITS                    

                       Exception to high-36 month retired pay computation for      
           members retired following a disciplinary reduction in grade (sec. 641)  
      The committee recommends a provision that would require the          
   computation of retired pay for military personnel who retire following a
   reduction in grade be based on the basic pay of the grade held at the   
   time of retirement rather than the average of the highest three years of
   basic pay. The recommended provision would correct a situation in which 
   a service member who is reduced in grade as a result of a disciplinary  
   action and subsequently retires would have his or her retired pay       
   computed based on the average of the highest three years of basic pay,  
   effectively circumventing the intention of the reduction-in-grade.      
                       Automatic participation in Reserve Component Survivor       
           Benefit Plan unless declined with spouses' consent (sec. 642)           
      The committee recommends a provision that would require reserve      
   component personnel notified of eligibility for retired pay upon        
   reaching 60 years of age to make an election regarding coverage under   
   the Reserve Component Survivor Benefit Plan. The recommended provision  
   would require spousal consent if the member makes an election to decline
   or to provide less than the full, immediate annuity for the spouse.     
   Currently, the reserve                                                  

                    component member may decline coverage or elect less than full 
          participation without the spouse's knowledge or consent. The recommended
          provision would treat spouses of reserve component members in the same  
          manner as spouses of active component members.                          
            Participation in thrift savings plan (sec. 643)                        

      The committee recommends a provision that would amend section 663 of 
   the National Defense Authorization Act for Fiscal Year 2000 to establish
   the effective date for offering the Thrift Savings Plan to active and   
   reserve military personnel, effective not later than 180 days from the  
   enactment of this Act. The recommended provision would also eliminate   
   the requirement for the President to identify mandatory spending offsets
   that are currently provided in the Concurrent Resolution on the Budget  
   for Fiscal Year 2001.                                                   
                       Retirement from active reserve service after regular        
           retirement (sec. 644)                                                   
      The committee recommends a provision that would permit a retired     
   active component service member who later serves, and is promoted in an 
   active reserve position, to retire as a member of the retired reserve at
   the higher grade. The recommended provision would permit such           
   individuals to retire as a member of the retired reserve. Promotion in  
   the reserves is currently authorized by sections 1370, 1406(b)(2) and   
   12771 of title 10, United States Code.                                  
                       Same treatment for federal judges as for other federal      
           officials regarding payment of military retired pay (sec. 645)          
      The committee recommends a provision that would make a technical     
   correction to ensure that Article III federal judges are treated the    
   same as other federal officials with regard to reduction in military    
   retired pay. Section 651 of the National Defense Authorization Act for  
   Fiscal Year 2000 eliminated the reduction in military retired pay for   
   retired uniformed services personnel who are civilian employees of the  
   federal government. The recommended provision makes a technical         
   correction eliminating this reduction of retired pay for retired        
   uniformed services personnel who are employed in certain judicial       
   positions.                                                              
                                  SUBTITLE E--OTHER MATTERS                       

                       Reimbursement of recruiting and ROTC personnel for parking  
           expenses (sec. 651)                                                     
      The committee recommends a provision that would authorize the        
   secretary of a military department to reimburse military recruiters,    
   Senior Reserve Officer Training Corps cadre members, and Military       
   Entrance Processing Command members for parking expenses incurred in the
   performance of their duties.                                            
                       Extension of deadline for filing claims associated with     
           capture and internment of certain persons by North Vietnam (sec. 652)   
      The committee recommends a provision that would permit the Secretary 
   of Defense to pay claims to a person, or the survivor of a person, who  
   demonstrates that he or she served as a Vietnamese operative pursuant to
   OPLAN 34A or OPLAN 35, was captured, remained in captivity after 1973,  
   has not received any payment for the period spent in captivity, and     
   whose original claim was received after the deadline for submitting     
   claims, if the Secretary considers it necessary to prevent an injustice.
   The committee is aware of four claims that would qualify under the      
   recommended provision. Payment of the additional claims would be made   
   from within the original appropriations for this program.               
                       Settlement of claims for payments for unused accrued leave  
           and for retired pay (sec. 653)                                          
      The committee recommends a provision that would authorize the        
   Secretary of Defense to settle claims for payments for unused accrued   
   leave and to waive time limitations for filing claims for payments for  
   unused accrued leave and for retired pay. The committee encourages      
   liberal use of this authority to ensure that otherwise valid claims of  
   service members and former service members are not denied solely because
   the claim was not filed within the time required.                       
                       Eligibility of certain members of the Individual Ready      
           Reserve for Servicemembers' Group Life Insurance (sec. 654)             
      The committee recommends a provision that would authorize volunteers 
   for assignment to a category in the Individual Ready Reserve that is    
   subject to involuntary recall to active duty to participate in the      
   Servicemembers' Group Life Insurance program.                           
                       Authority to pay gratuity to certain veterans of Bataan and 
           Corregidor (sec. 655)                                                   
      The committee recommends a provision that would authorize the        
   Secretary of Veterans Affairs to pay a $20,000 gratuity to a veteran or 
   surviving spouse of a veteran who served at Bataan or Corregidor, was   
   captured and held as a prisoner of war, and was required to perform     
   slave labor by the Japanese.                                            
                                   OTHER ITEMS OF INTEREST                        

            Adjustments to the Basic Allowance for Housing                         

      The Basic Allowance for Housing (BAH) rates for uniformed services   
   personnel are determined by the Secretary of Defense based on the       
   monthly cost of adequate housing for civilians of comparable income     
   levels in the area in which the service member is assigned. Section 403 
   of title 37, United States Code, includes a protection against          
   reductions in the BAH as long as the member retains uninterrupted       
   eligibility to receive BAH. The committee is aware of cases in which the
   BAH for service members who have made a no-cost permanent change of     
   station move and who remain in the same quarters they occupied during   
   their previous assignment has been reduced. The committee believes that 
   implementation of the statutory provisions, as interpreted in the Joint 
   Federal Travel Regulations, is flawed. The committee did not intend that
   service members would be adversely affected by a no-cost permanent      
   change of station move in which the original quarters continue to be    
   occupied. The committee directs the Secretary of Defense to review the  
   statute and the Joint Federal Travel Regulations, and to make such      
   changes as may be necessary to ensure that service members who make     
   no-cost moves are not adversely impacted by a reduction in BAH. The     
   committee believes these changes should be retroactive, effective as of 
   the date of the BAH legislation.                                        

                                   TITLE VII--HEALTH CARE                         

                               SUBTITLE A--SENIOR HEALTH CARE                     

            Extension of TRICARE senior supplement demonstration program (sec. 701)

      The committee recommends a provision that would extend the TRICARE   
   senior supplement demonstration program providing health care delivery  
   to the over 64 Medicare eligible population. Congress authorized        
   implementation of several demonstration programs (Medicare Subvention,  
   the Federal Employee Health Benefits Program, a Medicare insurance      
   supplement or ``medi-gap'' type policy, and pharmacy pilot programs).   
   One of these programs is due to expire this year, some have just        
   started, and others are due to start later this year. The recommended   
   provision would extend the TRICARE senior supplement program to allow   
   for continuity of care through calendar year 2005, and to allow the     
   Department of Defense and the Congress time to evaluate and determine   
   the most appropriate long-term health care solutions for these          
   beneficiaries.                                                          
            TRICARE senior prime demonstration program (sec. 702)                  

      The committee recommends a provision that would authorize expansion  
   of the TRICARE Senior Prime, or ``Medicare Subvention'' program to major
   medical centers of the Department of Defense and extend the program     
   through calendar year 2005. While the Medicare subvention demonstration 
   program has provided limited data upon which to base evaluation and     
   expansion decisions, it appears clear that the most productive expansion
   sites are those with the more extensive capabilities of major medical   
   centers. Teaching programs conducted at the medical centers require a   
   more extensive case-load and beneficiary population to support medical  
   educational programs and readiness training requirements.               
      Although data is still limited, the committee believes that the      
   reimbursement methodology agreed to by the Department of Defense and the
   Health Care Financing Administration may need modification. Therefore,  
   the committee directs the Department of Defense to engage in            
   consultation with the Health Care Financing Administration to determine 
   what modifications need to be addressed, both in terms of data          
   collection and reimbursement methods, to facilitate expansion of the    
   program.                                                                
                       Extension and expansion of demonstration project for        
           participation of uniformed services personnel in the Federal Employee   
           Health Benefit program (sec. 703)                                       
      The committee recommends a provision that would remove the limitation
   on the number of sites covered by the demonstration program allowing    
   participation of Medicare-eligible military beneficiaries and their     
   family members in the Federal Employees Health Benefits Program. The    
   recommended provision would extend the program through calendar year    
   2005 to allow for continuity in the provision of care for beneficiaries 
   while the Department of Defense and the Congress analyze approaches to  
   meeting the health care needs of the Medicare-eligible military retiree 
   population.                                                             
            Implementation of redesigned pharmacy system (sec. 704)                

      The committee recommends a provision that would direct the Department
   of Defense to reduce the enrollment fee and consider using deductibles  
   for the pharmacy pilot program authorized in the National Defense       
   Authorization Act for Fiscal Year 1999. The Department of Defense has   
   been slow to implement this pilot program and there is considerable     
   concern among the beneficiary population over the high cost of          
   participation. The committee believes that the use of deductibles, which
   apply only when a benefit is utilized, are a more prudent management    
   tool.                                                                   
                                 SUBTITLE B--TRICARE PROGRAM                      

                       Additional beneficiaries under TRICARE prime remote program 
           in CONUS (sec. 711)                                                     
      The committee recommends a provision that would expand TRICARE prime 
   remote to the uniformed services and to family members of active duty   
   personnel who qualify for TRICARE prime remote. The committee recognizes
   the importance of providing a uniform and equitable medical benefit to  
   all military members and their families, without regard to where they   
   happen to be stationed in the United States.                            
            Elimination of copayments for immediate family (sec. 712)              

      The committee recommends a provision that would eliminate copayments 
   for those immediate family members of active duty service members       
   enrolled in TRICARE Prime who receive care from a source that currently 
   requires copayment.                                                     
                       Improvement in business practices in the administration of  
           the TRICARE program (sec. 713)                                          
      The committee recommends a provision that would direct the Secretary 
   of Defense to complete implementation of improved                       

                    health care business practices no later than October 1, 2001. 
          Previous legislation directed the Secretary of Defense to make          
          improvements in providing access to beneficiaries, scheduling           
          appointments, simplifying and making more efficient claims processing   
          and payment systems, and ensuring portability and national enrollment.  
          These improvements have not been fully implemented in a timely manner.  
          The committee directs the Secretary to ensure the systemic changes      
          necessary to achieve improved business practices and increased          
          beneficiary and provider satisfaction are implemented no later than     
          October 1, 2001.                                                        
              SUBTITLE C--JOINT INITIATIVES WITH DEPARTMENT OF VETERANS AFFAIRS   

                       Tracking patient safety in military and veterans health care
           systems (sec. 721)                                                      
      The committee recommends a provision that would direct enhanced      
   cooperation between the Department of Defense and Department of Veterans
   Affairs in the area of patient safety. The two Departments are currently
   collaborating on a number of joint initiatives, including common        
   information systems and patient safety initiatives. This provision      
   directs the two agencies to work to develop a common set of patient     
   safety indicators and to provide for centralized tracking of those      
   indicators.                                                             
            Pharmaceutical identification technology (sec. 722)                    

      The committee recommends a provision that would direct the Secretary 
   of Defense and the Secretary of Veterans Affairs to jointly develop a   
   plan to bar code pills and to explore a bar code capability for the mail
   order pharmacy program. Joint initiatives and the commonality they      
   produce can provide opportunities to greatly enhance patient safety.    
            Medical informatics (sec. 723)                                         

      The committee recommends a provision that would direct the Secretary 
   of Defense to include two additional sections in the medical informatics
   report required by section 723(d)(5) of the National Defense            
   Authorization Act for Fiscal Year 2000. The recommended provision       
   includes a requirement to report on the progress or growth in medical   
   informatics and how the TRICARE program and the Department of Veterans  
   Affairs health care system can use medical information technology to    
   raise standards of treatment. The provision also directs that, from     
   within the resources of the Defense Health Program, $64.0 million be    
   expended on a computerized patient record system, and $9.0 million be   
   expended on an integrated pharmacy system in fiscal year 2001.          
                                  SUBTITLE D--OTHER MATTERS                       

            Permanent authority for certain pharmaceutical benefits (sec. 731)     

      The committee recommends a provision that would authorize a specific 
   pharmacy benefit for eligible beneficiaries of the military health care 
   system, including those eligible for Medicare. The recommended provision
   would authorize a national mail order program and a retail pharmacy     
   network. The recommended provision would not require an enrollment fee  
   nor an annual deductible for the mail order program. Drugs obtained     
   through the retail network would require beneficiary cost shares of 20  
   percent and government coverage of 80 percent. The recommended provision
   would phase out the current base realignment and closure pharmacy       
   benefit now in effect, in recognition of implementation of the          
   recommended program.                                                    
      The committee believes that meeting the pharmaceutical needs of our  
   older retirees is a major step in meeting the commitment to ensure      
   access to health care for those who have made military service a career.
   This is the first time the age 65 and over military retiree population  
   will have a legal entitlement to health care benefits. The recommended  
   provision would provide a uniform benefit for all military beneficiaries
   and would meet the major unmet healthcare need of older retirees, access
   to a pharmacy benefit.                                                  
                       Provision of domiciliary and custodial care for CHAMPUS     
           beneficiaries (sec. 732)                                                
      The committee recommends a provision that would cap the Department of
   Defense domiciliary and custodial care program costs at $100.0 million  
   per year. The committee understands that the current programmatic       
   estimates are significantly less and expects the Secretary of Defense to
   move quickly to implement a case management program to address the needs
   of those with chronic conditions. The recommended provision would also  
   grandfather those that participated in the Department of Defense's home 
   health care demonstration and allow their continued participation in the
   case management program, without regard to age.                         

                       Medical and dental care for medal of honor recipients and   
           their dependents (sec. 733)                                             
      The committee recommends a provision that would extend lifetime      
   medical and dental care, to be provided by the Department of Defense, to
   medal of honor recipients and their dependents. The committee recognizes
   the significant contributions of these current and former service       
   members and their families, and would extend complete legal entitlement 
   for these beneficiaries.                                                
                       School-required physical examinations for certain minor     
           dependents (sec. 734)                                                   
      The committee recommends a provision that would direct the Secretary 
   of Defense to provide eligible dependents a physical examination when   
   such an examination is required by a school in connection with the      
   enrollment in that school. Eligible dependents are between the ages of 5
   and 12 years of age. The proposed provision would recognize school      
   requirements for such physicals and, consistent with other provisions in
   this bill, would require no copayment for TRICARE Prime enrollees.      
   Enrollees in TRICARE options other than Prime would pay appropriate cost
   shares. The committee expects, to the extent possible, that primary care
   managers would utilize the results of school physicals to accommodate   
   other requirements for health assessments for school age children, such 
   as sports physical requirements.                                        
                       Two-year extension of dental and medical benefits for       
           surviving dependents of certain deceased members (sec. 735)             
      The committee recommends a provision that would extend the medical   
   and dental benefits for surviving dependents of certain deceased members
   from one year to three years. The committee recognizes the impact on    
   dependents of loss of a family member and that transition to alternate  
   sources of health care may take a period of time longer than previously 
   permitted. The recommended provision would recognize the sacrifices of  
   these family members and assist in their difficult transition from the  
   military system.                                                        
                       Extension of authority for contracts for medical services at
           locations outside medical treatment facilities (sec. 736)               
      The committee recommends a provision that would extend from December 
   31, 2000 to September 30, 2002, the authority to enter into personal    
   services contracts with physicians for medical screening of enlistment  
   applicants. The Secretary of Defense is currently conducting a test to  
   evaluate whether the employment of fee-basis physicians in medical      
   screening of enlistment applicants should be sustained, or whether an   
   alternate approach is more appropriate. The recommended provision would 
   allow the Secretary of Defense to complete the evaluation of alternative
   medical screening strategies, and to sustain the pace of medical        
   screening for armed forces applicants by extending contracting authority
   for an additional period of time.                                       
                       Transition of chiropractic health care demonstration program
           to permanent status (sec. 737)                                          
      The committee recommends a provision that would make permanent the   
   provision of chiropractic health care services to military health care  
   system beneficiaries who enroll in TRICARE Prime. The recommended       
   provision would direct the Secretary of Defense to develop and implement
   a plan to make available chiropractic services using a primary care     
   manager model, that requires referral by a primary care physician. The  
   recommended provision would continue services at existing demonstration 
   sites until 180 days after the date of the enactment of this Act, at    
   which time TRICARE Prime enrollees at those sites would continue to have
   available chiropractic services. The recommended provision recognizes   
   the importance of the primary care manager in a managed care program and
   the value of offering a variety of approaches to meeting the health care
   needs of the beneficiary population.                                    
                       Use of information technology for enhancement of delivery of
           administrative services under the Defense Health Program (sec. 738)     
      The committee recommends a provision that would direct the Secretary 
   of Defense to implement, in at least one TRICARE region, a managed care 
   support contract using commercially available internet-based systems and
   products, to assist in simplifying administrative processes in the      
   TRICARE program. The recommended program would comply with patient      
   confidentiality and security requirements and incorporate data          
   requirements that are currently used in the marketplace, to include     
   those used by Medicare and/or commercial insurers. This effort would    
   include such areas as marketing, enrollment, beneficiary and provider   
   education, appointment setting, and claims processing. The committee    
   expects the initiative to enhance efficiency and improve services, as   
   well as match commercially recognized standards of performance.         
            Patient care reporting and management system (sec. 739)                


      The committee recommends a provision that would direct the Secretary 
   of Defense to implement a patient care reporting and management system  
   in the military health system. The recommended provision would create a 
   patient care reporting and management system that would identify, track,
   and report on errors and safety problems in the military medical system.
   The recommended provision would direct development of a process to study
   occurrence of errors, identify system factors contributing to           
   occurrences, and provide for corrective actions throughout the military 
   health care system.                                                     
            Health care management demonstration program (sec. 740)                

      The committee recommends a provision that would direct the Secretary 
   of Defense to conduct a test of two models to improve health care       
   delivery in the Defense Health Program. The recommended provision would 
   provide for two tests of health care simulation models: one for studying
   alternative delivery policies, processes, organizations, and            
   technologies; and the second for studying long term disease management. 
   The recommended provision directs the Secretary of Defense to implement 
   each of these concepts in at least one site in fiscal year 2001 and     
   report, not later than January 31, 2002, to the Committees on Armed     
   Services of the Senate and the House of Representatives on the          
   desirability and feasibility of incorporating these programs throughout 
   the military health care system.                                        
                       Studies of accrual financing for health care for military   
           retirees (sec. 741)                                                     
      The committee recommends a provision that would direct the Secretary 
   of Defense to conduct two studies, one by the Department of Defense and 
   one by an independent entity, to evaluate the potential of revising the 
   financing of the military medical benefit through an accrual based      
   system. While the committee recognizes the potential of such a proposal,
   there remain many unanswered questions about administration and         
   budgeting. The required studies will provide the committee with the     
   necessary data to determine if permanently implementing such a concept  
   would be warranted.                                                     
                       Augmentation of Army Medical Department by reserve officers 
           of the Public Health Service Corps (sec. 742)                           
      The committee recommends a provision that would permit the Secretary 
   of the Army and the Secretary of Health and Human Services to enter into
   an agreement to conduct a program under which officers of the Public    
   Health Service Corps Inactive Reserve may be detailed to augment the    
   Army Medical Department, subject to existing legislative authorities.   
      The recommended provision would require the Secretary of the Army, in
   consultation with the Secretary of Health and Human Services, to review 
   existing legislative authorities and report to the Committees on Armed  
   Services of the Senate and the House of Representatives not later than  
   March 1, 2001, on the findings of this review and any recommendations   
   necessary to permit enhanced augmentation by the Public Health Service  
   Inactive Reserve.                                                       
                                   OTHER ITEMS OF INTEREST                        

            Consultation with schools of pharmacy and nursing                      

      The committee directs the military services to implement a program in
   which military treatment facilities and clinics would partner with local
   pharmacy and nursing schools to incorporate the full range of health    
   care professional resources in health care endeavors. The committee     
   supports integrating all aspects of professional health care delivery.  
   Specifically, students of pharmacy and nursing schools could become a   
   significant resource to pharmacies through participation in patient     
   education programs. Patients would benefit from increased personal      
   interaction, pharmacies would benefit by access to increased            
   professional resources, and students would expand their clinical        
   experience.                                                             
                       Financial assistance for those beneficiaries requiring      
           animal assistance                                                       
      The committee directs the Secretary of Defense to study and report to
   the Committees on Armed Services of the Senate and the House of         
   Representatives on the requirements for animal assistance for dependents
   of military personnel whose medical conditions may require such         
   assistance. The report should include an assessment of the economic     
   impact to families of obtaining animals for such purposes as            
   ``seeing-eye'' assistance and other medical conditions. The report      
   should include an analysis of the current benefit coverage by the       
   Department of Defense, if any, and, if appropriate, a proposal for      
   coverage of such assistance.                                            
            Health care benefits for retirees living overseas                      

      The committee directs the Secretary of Defense to study and report to
   the Committees on Armed Services of the Senate and the House of         
   Representatives, no later than March 12, 2001, on the                   

                    desirability and feasibility of providing health care benefits
          to military retirees living outside the United States. The committee    
          recognizes that some military retirees make a conscious choice to live  
          overseas but other military members return to their home of origin upon 
          retirement from military service. The study will include an assessment  
          of the numbers of retirees permanently residing overseas, an assessment 
          of how many have returned to their home of origin, and options for      
          providing health care benefits to retirees overseas.                    
                       Implementation of Department of Defense and Veterans Affairs
           Department sharing initiatives                                          
      The committee directs the Secretary of Defense and the Secretary for 
   Veterans Affairs to develop a plan and report to the Committees on Armed
   Services of the Senate and the House of Representatives, not later than 
   January 31, 2001, on the formation of problem solution groups and       
   regional liaisons to facilitate sharing opportunities. Issues to be     
   addressed should include reimbursement and payment, joint contracting,  
   data commonality, and any other issues inhibiting full and beneficial   
   sharing of resources. The committee continues to observe that additional
   sharing is of value and that administrative obstacles preclude full     
   benefit of existing arrangements between the two departments.           
                       Notification of persons affected by unanticipated adverse   
           outcomes of medical care                                                
      The committee directs the Secretary of Defense to review the process 
   for identifying serious medical errors and notifying affected patients  
   or their families of such error events. The review shall include the    
   mandatory reporting system used in the 500 hospitals and clinics within 
   the Department of Defense, as described in the Report of the Quality    
   Interagency Coordination Task Force to the President, dated February    
   2000. The Secretary of Defense shall report to the Committees on Armed  
   Services of the Senate and the House of Representatives, not later than 
   March 1, 2001, on the current notification process and any additional   
   requirements the Secretary deems necessary after such review.           
            Special pays for military health care professionals                    

      The committee directs the Secretary of Defense to conduct a review   
   and to report to the Committees on Armed Services of the Senate and the 
   House of Representatives, not later than March 1, 2001, on the adequacy 
   of special pays and bonuses for medical corps officers and other health 
   care professionals. The committee directs this review because of the    
   level of competition within the economy for health care professionals   
   and the potential devaluation of current special pays and bonuses, which
   could have a significant impact on recruiting and retention of health   
   care professionals.                                                     

            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
            Improvements in procurements of services (sec. 801)                    

      The committee recommends a provision that would address concerns     
   about the manner in which the Department of Defense (DOD) contracts for 
   services. The committee is concerned that the DOD has not adjusted its  
   contracting and oversight practices to meet the increasing significance 
   of service contracting. From 1992 through 1999, DOD procurement of      
   services increased from $39.9 billion to $51.8 billion while procurement
   of goods during that same time period decreased from $59.8 billion to   
   $53.5 billion.                                                          
      The DOD Inspector General (IG) recently reviewed contracts for       
   professional, administrative, and management support services, which is 
   the largest sub-category of contracts for services valued at $10.3      
   billion. The IG reviewed 105 contracts and each contract had one or more
   significant problems. These problems included the non-use of prior      
   history to define requirements (58 out of 84 or 69 percent), inadequate 
   government cost estimates (81 out of 105 or 77 percent), cursory        
   technical reviews (60 out of 105 or 57 percent), inadequate competition 
   (63 out of 105 or 60 percent), failure to award multiple-award contracts
   (7 out of 38 or 18 percent), inadequate contract surveillance (56 out of
   84 or 67 percent) and lack of cost control (21 out of 84 or 24 percent).
   The IG found that ``* * * cost-type contracts that placed a higher risk 
   on the government continued without question for the same services for  
   inordinate lengths of time (39 years in one extreme case) and there were
   no performance measures in use to judge efficiency and effectiveness of 
   the services rendered.''                                                
      The committee is concerned about the lack of oversight and           
   accountability in managing these contracts. As a result, the committee  
   recommends a provision that would require the Secretary of Defense to   
   develop specific training applicable to services contracting and for the
   Secretary of each military department to establish centers of excellence
   in contracting for services. The committee has added $2.0 million to the
   Defense Acquisition University account to be used at the Defense Systems
   Management College for this purpose. The committee expects that these   
   centers of excellence will be staffed with trained and experienced      
   personnel that can assist the acquisition community when procuring      
   services, make all acquisition personnel aware of the problems          
   identified by the DOD IG, develop a time-phased plan with goals and     
   performance measures to track improvements in the acquisition of        
   services, and serve as a clearinghouse for best practices in contracting
   for services in the public and private sectors.                         
      This provision would require the Secretary of Defense to establish a 
   contracting preference for performance based contracting in services in 
   which performance work statements would set forth requirements in clear,
   specific, and objective terms with measurable outcomes. As an incentive 
   for DOD to adopt performance based contracting techniques, performance  
   based contracts for services under $5.0 million may be treated as       
   contracts for a commercial item. The committee expects these            
   improvements to lead to improved oversight and a greater results based  
   focus on service contracting.                                           
                       Addition of threshold value requirement for applicability of
           a reporting requirement relating to multiyear contract (sec. 802)       
      The committee recommends a provision that would clarify the multiyear
   reporting requirements required by section 809 of the National Defense  
   Authorization Act for Fiscal Year 2000. Under this provision, the head  
   of an agency may not enter into a multiyear contract if the value       
   exceeds $500.0 million until the Secretary of Defense has submitted to  
   the congressional defense committees a report on the total obligational 
   authority associated with existing and requested multiyear contracts    
   contained in the Future Years Defense Program.                          
            Planning for the acquisition of information systems (sec. 803)         

      The committee recommends a provision that would require the Chief    
   Information Officers of the Department of Defense (DOD) and the military
   services to maintain a consolidated inventory of DOD mission critical   
   and mission essential information systems, to identify interfaces       
   between these and other information systems, and to maintain contingency
   plans for responding to a disruption in the operation of any of these   
   information systems. The DOD in its report to the committee on Year 2000
   Lessons Learned stressed the importance of maintaining the information  
   that was developed to meet the Year 2000 problem and stated that ``* * *
   centralized visibility of assets is fundamental to information          
   technology management (e.g. acquisition, configuration management, and  
   information assurance).''                                               
      The provision would also require that Department of Defense Directive
   5000.1 be revised to establish minimum planning requirements for the    
   acquisition of information technology systems, require registration and 
   oversight by the Chief Information Office before award of a contract for
   mission critical or essential information technology systems, and       
   prohibit Milestone I, II, or III approval until the Chief Information   
   Officer has determined that the system is being                         

                    developed in accordance with the Clinger-Cohen Act of 1996,   
          including capital planning and investment control and performance,      
          results based management techniques, and incremental acquisition.       
            Tracking of information technology purchases (sec. 804)                

      The committee recommends a provision that would require the Secretary
   of Defense and the secretaries for each military department to          
   administer an automated system to track and manage purchases of         
   information technology products and services in excess of the simplified
   acquisition threshold.                                                  
      As a result of recent procurement reforms, there are many new        
   procurement vehicles from which agencies can buy information technology.
   The Department of Defense (DOD) and the services can choose to buy      
   information technology goods and services from the General Services     
   Administration (GSA) multiple award schedules, government-wide          
   acquisition contracts (GWACs), blanket purchase agreements, indefinite  
   delivery/indefinite quantity contracts, multiple award task order       
   contracts, by credit card directly from vendors, or through a standard  
   competitive contract.                                                   
      The committee is concerned that there is insufficient data available 
   to effectively support management decisions in determining whether the  
   government is choosing the most appropriate vehicle to obtain the best  
   price or best value for information technology (IT) purchases. For      
   example, DOD and the services are negotiating enterprise software       
   agreements designed to give DOD customers commercial off-the-shelf      
   software products at prices significantly lower than those available on 
   the GSA's Federal Supply Schedules. There is no data, however, to show  
   to what degree buyers are using other agreements to buy the same        
   products at potentially higher prices. In another example, the services,
   when asked by the committee how much IT was bought through GWACs, could 
   not provide the answer. One military service tried to get this          
   information and was told by the non-DOD agency who administered a GWAC  
   that they would not share sales data with the service. This provision   
   would prohibit any purchase by DOD off GWACs unless sales data is       
   included in the data base required by this provision.                   
      With DOD planning to spend $20.3 billion on information technology it
   is imperative that the Department have visibility over how these funds  
   are being spent and whether there are more appropriate contracting      
   strategies for achieving the Department's information technology needs. 
   The committee expects DOD to use the data contained in this data base to
   more efficiently manage IT purchases to obtain best value products and  
   services, while maximizing cost savings, competition, and efficient use 
   of resources.                                                           
                       Repeal of requirement for contractor assurances regarding   
           the completeness, accuracy, and contractual sufficiency of technical    
           data provided by contractor (sec. 805)                                  
      The committee recommends a provision that would eliminate the        
   requirement for contractors providing technical data to the government  
   to furnish written assurances that the technical data is complete,      
   accurate, and satisfies the requirements of the contract. This provision
   was requested by the Department of Defense.                             
      The committee understands that the elimination of this requirement   
   will not in any way diminish either the contractor's obligation to      
   provide technical data that meets contract requirements or the          
   government's ability to enforce this requirement. The committee expects 
   that the Defense Contract Management Agency will continue to monitor    
   contractor technical data programs in order to protect government data  
   rights and to ensure the government receives timely and accurate        
   information regarding contractor processes, practice, and controls for  
   developing technical data.                                              
                       Extension of authority for Department of Defense acquisition
           pilot programs (sec. 806)                                               
      The committee recommends a provision that would extend the authority 
   of section 5064 of the Federal Acquisition Streamlining Act (FASA) and  
   authorize the Department of Defense to continue to conduct five Defense 
   Acquisition Pilot Programs through October 1, 2007. The committee notes 
   that it would be inefficient and inappropriate to change contracting    
   approaches in the middle of these programs, and understands that the    
   extension provided in this provision should be sufficient to permit the 
   completion of the programs under the pilot authority.                   
      The committee directs the Secretary of Defense to report to the      
   congressional defense committees by March 1, 2001, on the lessons       
   learned from the section 5064 pilot programs, how these lessons are     
   being incorporated in major weapons systems acquisition, and what       
   specific statutory constraints preclude new weapons systems programs    
   from adopting the practices tested in the pilot programs.               
                       Clarification and extension of authority to carry out       
           certain prototype projects (sec. 807)                                   
      The committee recommends a provision that would extend for three     
   years the other transaction prototype authority under section 845 of the
   National Defense Authorization Act for Fiscal Year 1994 and identify    
   appropriate uses of this authority to include cost sharing arrangements 
   and the participation of                                                

                    nontraditional defense contractors. The committee also        
          recommends a pilot program for the transition to follow-on production   
          contracts for prototypes developed under the section 845 authority.     
          Under the pilot program, an item or process developed by nontraditional 
          defense contractors may be treated as a commercial item under a contract
          or subcontract for less than $20.0 million and purchased under the      
          streamlined procedures established under the Federal Acquisition        
          Regulations (48 C.F.R. Part 12). The committee intends that this        
          provision will test and identify alternative methods to transition      
          successful section 845 prototypes to production.                        
      This provision would support using section 845 authority to attract  
   companies that typically do not do business with the Department of      
   Defense and encourage cost sharing and experimentation in potentially   
   more efficient ways of doing business with traditional defense          
   contractors. Other transaction authority is an important acquisition    
   tool that can facilitate the incorporation of commercial technology into
   military weapon systems. In an environment where, in many areas,        
   commercial technology is now more advanced than defense technology, it  
   is imperative that the Department continue to have the flexibility to   
   use innovative contractual instruments that provide access to this      
   technology. There are, however, improvements that can be made in        
   managing and overseeing these contractual arrangements.                 
      The General Accounting Office (GAO) recently reviewed the            
   Department's use of section 845 authority for the committee and         
   recommended that the Secretary of Defense provide updated guidance that 
   sets out the conditions for using section 845 agreements and provides a 
   framework to tailor the terms and conditions appropriate for each       
   agreement. In addition, the GAO recommended that the Secretary of       
   Defense establish and require the use of a set of performance metrics   
   directly related to the use of the agreements. The committee directs the
   Secretary of Defense to implement these recommendations by March 1,     
   2001, and further directs the GAO to report to the committee on the     
   Department's compliance with these recommendations.                     
                       Clarification of authority of Comptroller General to review 
           records of participants in certain prototype projects (sec. 808)        
      The committee recommends a provision that would clarify the audit    
   access of the General Accounting Office (GAO) over other transaction    
   prototype authority agreements for those contractors who have only done 
   business with the government under other transaction authority or       
   through cooperative agreements.                                         
      Congress in the National Defense Authorization Act for Fiscal Year   
   2000 required the Department of Defense to ensure that the General      
   Accounting Office has audit access to other transaction prototype       
   authority agreements that provide for payments in excess of $5.0        
   million, unless a public interest waiver is obtained, or if a party or  
   entity, or a subordinate element of a party or entity, has not entered  
   into any other agreement that provides for audit access in the year     
   prior to the agreement. This provision would clarify audit access by the
   GAO in those cases where a firm may have had a cooperative agreement or 
   other transaction with the government prior to one year and has had no  
   other government contracts.                                             
                       Eligibility of small business concerns owned and controlled 
           by women for assistance under the mentor-prote AE1ge AE1 program (sec.  
           809)                                                                    
      The committee recommends a provision that would add small business   
   concerns owned and controlled by women to the list of entities that are 
   eligible to participate in the pilot mentor-prote AE1ge AE1 program     
   established by section 831 of the National Defense Authorization Act for
   Fiscal Year 1991.                                                       
      The pilot mentor-prote AE1ge AE1 program provides incentives to major
   defense contractors to assist qualified small business to enhance their 
   capabilities as contractors on Department of Defense (DOD) contracts.   
   The mentor-prote AE1ge AE1 program does not guarantee contracts to      
   qualified small businesses. Instead, it is designed to equip these      
   businesses with the knowledge and expertise that they need to win such  
   contracts on their own, in the competitive market place.                
      The DOD has yet to meet the five percent government-wide annual goal 
   for women-owned business participation in federal contracting required  
   by section 7106 of the Federal Acquisition Streamlining Act of 1994. The
   committee encourages the Department to use the authority granted in this
   section, as well as existing programs, outreach, training and technical 
   assistance to further the participation of women-owned businesses in DOD
   contracting.                                                            
            Navy-Marine Corps Intranet (sec. 810)                                  

      The committee recommends a provision that would require the Secretary
   of the Navy to submit a report to Congress on the amount to be expended 
   on the Navy-Marine Corps Intranet (NMCI) contract, the accounts from    
   which the contract will be funded, a plan for incremental development,  
   the management information specified in section 803(e), and any impact  
   on the existing civilian workforce before beginning performance of the  
   NMCI contract. The provision would require that the Marine Corps, the   
   naval shipyards, and the naval aviation depots be excluded from the     
   performance of the contract in the first year, and that the program be  
   implemented in accordance with the requirements of the Clinger-Cohen Act
   of 1996 and applicable regulations and directives.                      

      The NMCI is a long-term ``seat management'' arrangement under which  
   the Navy would transfer to a contractor the responsibility for providing
   and managing the Navy's desktop computer, server, infrastructure, and   
   communication assets and services. Up to $2.0 billion a year could be   
   expended on the contract over the next five years.                      
      The committee recognizes that each of the military services faces    
   aging information technology infrastructure, which is plagued with      
   severe interoperability and information assurance problems. The         
   committee supports the Navy's efforts to address these problems, and    
   encourages the other military services to address them in an equally    
   comprehensive manner. However, many questions have been raised by the   
   General Accounting Office and others about the effectiveness of the     
   Navy's NMCI contracting approach. To move forward before these questions
   have been addressed could risk wasting valuable defense resources and   
   put in jeopardy the future use of this innovative contracting concept by
   the Federal Government.                                                 
      The committee believes that for the Navy to successfully implement   
   the NMCI, it will have to outline the business case for its information 
   technology investments, demonstrate superior information technology     
   project management expertise, and develop performance metrics based on  
   sound baselines. The NMCI should be managed according to best private   
   and public sector practices, including incremental development, as      
   mandated in the Clinger-Cohen Act of 1996. The committee also believes  
   that oversight by the DOD Chief Information Office is critical to the   
   success of the program and that effective implementation of the         
   memorandum of agreement between the Navy and DOD officials is a first   
   step in ensuring effective management of the program.                   
      The committee further recommends that the Navy ensure that the       
   contractor for the NMCI program evaluates the use of commercial off the 
   shelf desktop computers capable of securely processing, storing, and    
   networking classified, sensitive, and unclassified data via the NMCI.   
                       Qualifications required for employment and assignment in    
           contracting positions (sec. 811)                                        
      The committee recommends a provision that would require a            
   baccalaureate degree and 24 semester credit hours in business           
   disciplines for new entrants into the GS 1102 occupational series and   
   for contracting officers above the simplified acquisition threshold. The
   24 semester credit hours may be included within the requirements for the
   baccalaureate degree or may be in addition to the basic undergraduate   
   degree requirement. The credit hours may be either undergraduate or     
   graduate credit hours or a combination of both. These requirements will 
   not apply to those who are already serving in these capacities as of    
   September 30, 2000. This provision also does not effect the waiver      
   authority in section 1724(d) of title 10, United States Code, which     
   allows employees who do not meet these requirements to serve in these   
   capacities if it is determined by the acquisition career program board  
   of a military department that they possess significant potential for    
   advancement based on demonstrated job performance and qualifying        
   experience.                                                             
      Defense contracting has changed significantly since the passage of   
   the Defense Acquisition Workforce Improvement Act of 1990. This         
   provision will ensure that new entrants into the contracting field have 
   the educational tools they need to effectively perform as contracting   
   professionals in the changing federal marketplace.                      
            Defense acquisition workforce (sec. 812)                               

      The committee recommends a provision that would establish a          
   moratorium on further cuts in the acquisition workforce for three years.
   The Secretary of Defense may waive this prohibition upon certification  
   to Congress that any reductions to the workforce will not negatively    
   impact on the ability of the workforce to efficiently and effectively   
   carry out its legally required functions.                               
      The provision would also require a report on the sufficiency of the  
   acquisition and support workforce of the Department of Defense (DOD).   
   This provision would require the Secretary of Defense to perform a      
   comprehensive reassessment of programmed reductions in the acquisition  
   workforce, assess the impact of impending retirements, develop a plan to
   address future acquisition workforce challenges and problems arising    
   from past reductions in the acquisition workforce, and identify steps   
   that are being taken or could be taken by the DOD to enhance the tenure 
   and reduce the turnover of program executive officers, program managers,
   and contracting officers.                                               
      The DOD Inspector General (IG) recently reported that DOD has reduced
   its acquisition workforce from 460,516 to 230,556 personnel, about 50   
   percent, from the end of fiscal year 1990 to the end of fiscal year     
   1999, while the workload has remained essentially constant, and even    
   increased by some measures. The committee recognizes that the           
   implementation of acquisition reform has improved efficiency in DOD     
   contracting. However, according to the IG: ``. . . staffing reductions  
   have clearly outpaced productivity increases and the acquisition        
   workforce's capacity to handle its still formidable workload.''         
      The IG reported that reductions in the acquisition workforce have    
   resulted in: (1) an increased backlog in closing out completed          
   contracts; (2) increased program costs resulting from contracting for   
   technical support versus using in-house technical support; (3)          
   insufficient personnel to fill-in for employees on                      

                    deployment; (4) insufficient staff to manage requirements; (5)
          reduced scrutiny and timeliness in reviewing acquisition actions; (6)   
          personnel retention difficulty; (7) an increase in procurement action   
          lead time; (8) some skill imbalances; and (9) lost opportunities to     
          develop cost savings initiatives. The 14 DOD acquisition organizations  
          reviewed by the IG anticipate additional adverse effects on performance 
          if further downsizing occurs.                                           
      In addition to concerns about the impacts of past acquisition        
   workforce reductions, the committee is concerned about the changing     
   demographics of the acquisition workforce as DOD loses a projected      
   55,000 of its most experienced personnel through attrition by fiscal    
   year 2005.                                                              
      In a hearing before the Subcommittee on Readiness and Management     
   Support, Administration witnesses testified about the need for          
   innovative personnel changes to address impending demographic changes in
   the workforce, as well as addressing qualitative shortfalls. As a means 
   to test personnel changes, the committee recommends a provision that    
   would extend for three years the acquisition workforce demonstration    
   project conducted under section 4308 of the National Defense            
   Authorization Act for Fiscal Year 1996. In addition, the committee      
   recommends, as part of the report required by this provision, that the  
   Secretary report on the lessons learned from this demonstration project 
   and provide any recommendations to improve personnel management laws,   
   policies, or procedures with respect to the DOD acquisition workforce.  
                       Financial analysis of use of dual rate for quantifying      
           overhead costs at army industrial facilities (sec. 813)                 
      The committee recommends a provision that would require the Secretary
   of the Army to conduct a financial analysis of the benefits and costs of
   permitting the use of dual overhead rates at Department of Army         
   Government-Owned facilities as a means of encouraging commercial use of 
   these facilities. The provision would also require the Secretary to     
   report to the congressional defense committees on the results of this   
   study by February 15, 2001.                                             
                                   OTHER ITEMS OF INTEREST                        

            Application of Cost Accounting Standards to universities               

      Section 802 of the National Defense Authorization Act for Fiscal Year
   2000 contained provisions that modified and streamlined the             
   applicability of the Cost Accounting Standards. Section 802(h) provided 
   that these changes should not be construed to modify, supersede, impair,
   or restrict the applicability of the Cost Accounting Standards to       
   educational institutions. Section 802(h) has been interpreted by some to
   preclude the Cost Accounting Standards Board (CAS Board) from altering  
   the Cost Accounting Standards in any way, as they apply to universities 
   and other educational institutions. That was not the committee's intent.
      The committee understands that the applicability of both the Cost    
   Accounting Standards and the cost accounting provisions in the Office of
   Management and Budget (OMB) Circular A 21 to universities and other     
   educational institutions has led to confusion and misunderstanding. The 
   committee believes that OMB and the CAS Board should work together to   
   develop a more complete and seamless incorporation of the relevant Cost 
   Accounting Standards into OMB Circular A 21. It is the committee's hope 
   that OMB and the CAS Board will utilize terminology applicable to basic 
   and applied research, and give examples relevant to university          
   operations to provide clear and consistent guidance on the steps that   
   educational institutions must take to maintain compliance with          
   applicable standards.                                                   
            Appropriate use of the government purchase card                        

      Last year, the committee directed that each of the military services 
   conduct a review of purchase card transactions and report to Congress on
   their findings no later than March 1, 2000. The committee was           
   disappointed that none of the services sampled the records of actual    
   purchases to identify the items purchased and determine if the prices   
   paid were reasonable. In the absence of such a review, the findings of  
   the three services were inconclusive. For this reason, the committee    
   directs each of the three military services to develop a plan for       
   sampling purchase card transactions in selected commands to determine   
   whether the prices paid were fair and reasonable, and to ensure that the
   purchase card is being used in an appropriate manner. The committee     
   directs the military services to report their findings to the           
   congressional defense committees no later than February 1, 2001.        
      While the services provided some data on procurement savings through 
   the use of the purchase card, the committee is concerned that processing
   costs at the Defense Finance and Accounting Service may have increased  
   due to increased usage of the purchase card. The committee directs the  
   Secretary of Defense to report to the congressional defense committees  
   on this problem by February 1, 2001. The Secretary's report should: (1) 
   provide an estimate of financial processing costs incurred due to the   
   use of the purchase card and compare those costs to estimated           
   contracting savings; and (2) discuss the feasibility of reducing those  
   processing costs by electronically integrating purchases                

                    made through the government purchase card with the payment    
          systems of the Department of Defense (for example, through the use of   
          the Standard Procurement System).                                       
            Availability of contractor past performance information                

      The committee is aware that award fee determination information from 
   previous contracts may be used in the assessment of a contractor's past 
   performance for source selection purposes. Past performance information 
   is generally considered to be source selection sensitive and, therefore,
   exempt from disclosure under the Freedom of Information Act (FOIA). Once
   an award fee determination has been made under the previous contract,   
   however, the information underlying the basis for that determination,   
   because it is no longer pre-decisional, may be disclosed under FOIA     
   unless some other express exemption applies. As a result, information   
   may be treated as exempt from disclosure for the purpose of one         
   contract, when it is subject to disclosure as it relates to another     
   contract.                                                               
      The committee directs the Secretary of Defense to examine the issue  
   to make a determination whether a clarification in regulation would be  
   in the public interest. The committee directs the Secretary to provide a
   report to the congressional defense committees, to the Committee on     
   Governmental Affairs of the Senate, and to the Committee on Government  
   Reform of the House of Representatives on any determinations and actions
   with respect to this issue, no later than March 1, 2001.                
            Contracts for ancillary commercial services                            

      Section 805 of the National Defense Authorization Act for Fiscal Year
   2000 clarified that services ancillary to a commercial item, such as    
   installation, maintenance, repair, training, and other support services 
   would be considered commercial services, regardless of whether the      
   services are provided by the same vendor or at the same time as the     
   item, if the services are provided contemporaneously to the general     
   public under similar terms and conditions.                              
      It has come to the committee's attention that commercial practice may
   be to contract for such services on a basis other than firm-fixed prices
   under certain circumstances. For example, an elevator repair company may
   contract for the maintenance and repair of building elevators on a time 
   and materials basis. The committee believes that the Department of      
   Defense should utilize the flexibility provided in Section 8002(d) of   
   the Federal Acquisition Streamlining Act--which requires the use of     
   firm, fixed price contracts ``to the maximum extent practicable''--by   
   authorizing the use of other than firm-fixed price contracts for the    
   acquisition of ancillary commercial services when this is the common    
   practice in sales to the general public.                                
      At the same time, the committee has requested that the General       
   Accounting Office undertake a broad review of best practices in the     
   private sector for the acquisition of commercial products and services. 
   In addition, this bill contains a number of provisions directed at      
   improving the Department's management of contracts for commercial       
   products and services. The committee does not believe that the          
   Department should revise the current regulation prohibiting the use of  
   other than firm-fixed price contracts under section 8002(d) for the     
   acquisition of categories of commercial products and services other than
   ancillary services until the GAO review has been completed, the required
   management changes have been implemented, and the committee has had an  
   opportunity to review the results.                                      
            Online auctioning                                                      

      The Department of Defense has advised the committee that online      
   auctioning may be well suited for competitive, high volume, commodity   
   type purchases, and has the potential to save the Department significant
   resources in time, funding, and labor for such purchases. The committee 
   urges the Department to identify specific markets for which the use of  
   online auctioning may be appropriate and develop a pilot program to test
   the use of this innovate purchasing approach. The Department is directed
   to provide a progress report on this effort to the Committee on Armed   
   Services of the Senate no later than March 1, 2001.                     
                       Performance goals and measures for quality of equipment and 
           other products                                                          
      The committee is concerned that reductions in the acquisition        
   workforce have increased the risk that quality control oversight        
   measures may be inadequate. Recent reports of quality control problems  
   related to satellite launch failures, the continued stocking in the     
   inventory of defective chemical protective suits, and concerns raised   
   about the quality of aircraft carrier catapult parts raise questions    
   about whether defense quality control problems may be systemic.         
      The Department of Defense Inspector General (DOD IG) recently        
   reported that the number of defense quality assurance personnel         
   decreased from 12,117 in 1990 to 5,191 in 1999, a 57 percent decrease.  
   The Defense Contract Management Agency (DCMA), the organization         
   primarily responsible for in-plant quality assurance, stated to the DOD 
   IG that increased quality control risk exists because of continued      
   workforce reductions. DCMA also reported this risk from reduced         
   oversight of contractors in its annual statement of assurance. DCMA     
   commented that some                                                     

                    contractors stated that when DCMA stopped performing          
          inspections of all products, so did the contractors.                    
      The Defense Logistics Agency (DLA) stated that while customer        
   complaints about the quality of material received have increased, DLA   
   has placed less emphasis on responding to the customer complaints       
   because of acquisition workforce reductions. Another military command   
   stated that reduced staffing caused it to pay little attention to       
   backlogs in Quality Deficiency Reports and Equipment Improvement        
   Reports.                                                                
      The committee is concerned that while staffing for quality assurance 
   has been reduced, there are no overall DOD performance measures for the 
   quality of products received from contractors. To address this issue,   
   the committee directs the Secretary of Defense to require the heads of  
   acquisition activities in the DOD to establish and submit to the        
   Secretary, for the Department's annual performance plan under the       
   Government Performance and Results Act, performance goals and measures  
   for the quality of military equipment and other products received from  
   private sector sources. The Secretary of Defense shall also submit, by  
   February 1, 2001, a report to Congress on how the Department plans to   
   improve its quality assurance program.                                  
            Polyacrylonitrile carbon fibers                                        

      Polyacrylonitrile (PAN) carbon fibers are used in a variety of       
   defense and space applications such as aircraft, missiles, launch       
   vehicles, and helicopters. In 1985, the Department of Defense (DOD)     
   determined that DOD was overly dependent on foreign industry for PAN    
   carbon fibers and directed that one-third of PAN carbon fiber used in   
   defense production should be supplied by domestic sources by the end of 
   calendar year 1988. Congress included in the Defense Appropriations Act 
   for Fiscal Year 1988 (Public Law 100 202) a requirement that by calendar
   year 1992, 50 percent of the DOD PAN carbon fiber requirements be       
   purchased from domestic sources. To accomplish this objective, the      
   statute also required that all new major systems use U.S. or Canadian   
   manufacturers for all PAN carbon fiber requirements. DOD                
   institutionalized these requirements in the Defense Federal Acquisition 
   Regulations (DFAR). The statutory restrictions were not renewed after   
   1991. In 1996, DOD decided to continue the restrictions, but recommended
   that the issue be revisited in three years. The Department is currently 
   studying whether to maintain the PAN carbon fiber DFAR restriction.     
      The committee directs the Secretary of Defense to report to the      
   congressional defense committees by February 1, 2001, on the domestic   
   and international industrial structure that produces PAN carbon fibers, 
   current and anticipated market trends for this product, and on any      
   decision made to maintain or discontinue the PAN carbon fiber DFAR      
   restriction.                                                            
            Procurements from the small arms production industrial base            

      The committee understands that there have been problems with the     
   Department of the Army's process for forwarding waiver requests to the  
   Secretary of Defense to authorize expanded competition on particular    
   small arms critical repair parts contracts, as provided for in section  
   2473(a) of title 10, United States Code. The committee reiterates that  
   waivers on small arms critical repair parts contracts should be         
   forwarded to and granted by the Secretary of Defense when it is         
   determined, with regard to a particular procurement, that restricting   
   the procurement is not necessary to preserve the small arms production  
   industrial base, as defined by section 2473(c) of title 10, United      
   States Code.                                                            
      The committee also reiterates its concern that quality and           
   reliability be paramount in the execution of all small arms procurement.
   The Army must ensure that all solicitations for small arms, parts, and  
   modifications--regardless of the method of procurement--will result in  
   our troops receiving the safest and most reliable systems possible from 
   reliable suppliers, and that each procurement will be based on detailed 
   analyses of alternatives.                                               
            Risk management in the acquisition of major systems                    

      The committee has reviewed a report entitled Report of the           
   Price-based Acquisition Study Group, dated November 15, 1999, prepared  
   for the Office of the Under Secretary of Defense for Acquisition,       
   Technology and Logistics. Many of the recommendations of this report    
   could be implemented without any change to existing law, and show       
   significant promise for the reduction of risk in the acquisition of     
   major systems. In this regard, the report is consistent with the        
   recommendations of the General Accounting Office in work conducted for  
   this committee.                                                         
      For example, the report recommends that the Department: (1) establish
   a Defense-wide policy for risk mitigation through the use of            
   evolutionary and incremental acquisition strategies, consistent with the
   requirements established for the acquisition of major systems of        
   information technology in section 5202 of the Clinger-Cohen Act of 1996;
   (2) establish a Defense-wide policy for using price to help prioritize  
   operational requirements; (3) facilitate the development of competitive 
   pricing through the use of dissimilar competition in major systems      
   acquisitions where it is not practicable to maintain multiple sources;  
   (4) establish a center of excellence in market research to coordinate   
   the use of best practices in market research across the department; and 
   (5) conduct a Defense Science Board study on the impact of contract     
   modifications and changes on contract cost, schedule, and               

                    quality. The committee urges the Department of Defense to take
          strong action to implement these recommendations.                       
      While the committee encourages the Department to implement the       
   recommendations of the Study Group report relating to risk mitigation,  
   the committee is concerned that several other recommendations of the    
   report appear to be inconsistent with the requirements of existing law. 
   In particular, the committee notes that the so-called ``Cost or Pricing 
   Analysis Decision Assistance Tool (COPADAT)'' developed by the study    
   group would direct results that are inconsistent with the requirements  
   of the Truth in Negotiations Act--encouraging contracting officers to   
   avoid obtaining certified cost or pricing data in circumstances where it
   is required by law. The committee directs the Department to stop all use
   of the COPADAT or any similar tool that would dictate a result that is  
   inconsistent with statutory requirements to obtain certified cost or    
   pricing data in sole source procurements of non-commercial items, absent
   ``exceptional circumstances.''                                          
      Similarly, the report recommends that the Defense Supplement to the  
   Federal Acquisition Regulation be revised to express a clear,           
   unambiguous preference for price-based acquisition and that price-based 
   acquisition be addressed in every acquisition plan or equivalent        
   document, even in cases where the statute requires contracting officers 
   to obtain certified cost or pricing data. The committee supports the use
   of price-based acquisition techniques to supplement the use of certified
   cost or pricing data in the determination of fair and reasonable prices 
   in sole-source contracts for non-commercial items. However, the use of  
   such techniques is not a substitute for statutory requirements or a     
   basis for waiving the statutory requirements to obtain certified cost or
   pricing data in such acquisitions.                                      
      Finally, the committee notes that section 802 of the National Defense
   Authorization Act for Fiscal Year 2000, established a new ``exceptional 
   circumstances'' waiver to the Cost Accounting Standards. This waiver    
   authority parallels waiver authority already available to the Department
   under the Truth in Negotiations Act.                                    
      The committee reminds the Department that the statement of managers  
   accompanying the National Defense Authorization Act for Fiscal Year     
   2000, section 802 expressly limits the use of ``exceptional             
   circumstances'' waivers to circumstances ``. . . when the agency        
   determines that it would not be able to obtain needed products or       
   services from the vendor in the absence of a waiver.'' For this reason, 
   the committee directs the Department to clarify that ``exceptional      
   circumstances'' waivers to the Truth in Negotiations Act and the Cost   
   Accounting Standards may not ordinarily be used to enter a contract with
   a major defense contractor or any other contractor that routinely does  
   business with the Federal Government in contracts that are covered by   
   the Truth in Negotiations Act and the Cost Accounting Standards.        
                       Technical data rights for items developed exclusively at    
           private expense                                                         
      Section 2320 of Title 10, United States Code, establishes the        
   statutory basis for regulations governing rights in technical data under
   Department of Defense contracts. This provision establishes the basic   
   rule that the government has unlimited rights to technical data         
   developed exclusively with federal funds; the government does not       
   generally have rights in technical data established exclusively at      
   private expense; and rights to data developed in part with federal funds
   and in part at private expense are negotiable. When the government      
   purchases an item developed exclusively at private expense, however,    
   Section 2320 reserves the government's limited right to technical data  
   that ``. . . is necessary for operation, maintenance, installation, or  
   training (other than detailed manufacturing or process data).''         
      Department of Defense officials have noted that it is increasingly   
   common that commercially-developed systems or components are either     
   returned to the manufacturer for repair or discarded. In such cases,    
   these officials state, the government does not need technical data, and 
   our insistence that contractors provide such data could discourage      
   commercial companies from doing business with the government.           
      The committee believes that this concern is based upon a misreading  
   of the statute. Section 2320 requires contractors to provide only       
   technical data that ``is necessary'' for operation, maintenance,        
   installation, or training. This requirement provides executive branch   
   officials with the flexibility to determine what data, if any, is       
   necessary for these limited purposes. If, in view of the manner in which
   the system or component will be used, no data is necessary for these    
   purposes, the government should not require the seller to provide any   
   such data. The committee directs the Department to review the           
   regulations implementing Section 2320 and adopt any changes that may be 
   necessary to clarify this point.                                        

                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      

                       Repeal of limitation on major Department of Defense         
           headquarters activities personnel (sec. 901)                            
      The committee recommends a provision that would repeal the           
   requirement to reduce the number of personnel assigned to major         
   Department of Defense headquarters activities. The committee believes   
   the reductions mandated by the previous legislation would adversely     
   impact the ability of the service staffs, the Joint Staff, and the      
   combatant commands to accomplish their missions.                        
                       Overall supervision of Department of Defense activities for 
           combating terrorism (sec. 902)                                          
      The committee recommends a provision that would designate the        
   Assistant Secretary of Defense for Special Operations and Low-Intensity 
   Conflict (ASD SOLIC) as the principal civilian adviser to the Secretary 
   of Defense on, and the principal official within the senior management  
   of the Department of Defense (DOD) (after the Secretary and Deputy      
   Secretary of Defense) responsible for, combating terrorism. The ASD     
   SOLIC would provide overall direction and supervision for policy,       
   program planning and execution, and allocation and use of resources for 
   the activities of the Department of Defense for combating terrorism,    
   including antiterrorism activities, counterterrorism activities,        
   terrorism consequence management activities, and terrorism-related      
   intelligence support activities. The committee is concerned that there  
   is currently no single individual responsible for policy oversight at   
   the Department to ensure a focused, comprehensive, cohesive, and        
   well-funded DOD combating terrorism policy. The committee believes that 
   there must be one official responsible for policy and budgetary         
   oversight of this important mission. The intent of this provision is    
   also to ensure that the Department's combating terrorism program is     
   fully included in all stages of the Programs, Planning and Budgeting    
   System (PPBS) as a single entity, rather than as separate activities.   
      As included in the Department of Defense's report, DOD Combating     
   Terrorism Activities, provided to Congress pursuant to section 932 of   
   the National Defense Authorization Act for Fiscal Year 2000, the        
   Department's combating terrorism activities are divided into four       
   components: antiterrorism/force protection, counterterrorism, terrorism 
   consequence management, and intelligence support to combating terrorism.
   Currently, numerous DOD officials are responsible for these various     
   combating terrorism activities. In many cases, responsibilities for     
   these important activities overlap and it is unclear who has oversight  
   for specific activities or ultimate responsibility for program          
   direction. Through this provision, it is the committee's intent to      
   consolidate the oversight and management of this vital program.         
      Finally, the committee commends the Department for the fiscal year   
   2001 congressional justification book (CJB) for Combating Terrorism.    
   This was a good first step in consolidating the numerous programs and   
   activities of the Department of Defense combating terrorism program. The
   committee looks forward to working with the Department to make certain  
   modifications that will improve this product. In particular, the        
   committee would like to see the Department separate military personnel  
   costs from the other combating terrorism costs.                         
            National Defense Panel 2001 (sec. 903)                                 

      The committee recommends a provision that authorizes the             
   establishment of a National Defense Panel (NDP) in fiscal year 2001 to  
   accompany the fiscal Quadrennial Defense Review (QDR) for fiscal year   
   2001. The Defense Authorization Act for fiscal year 1997 (Public Law 105
   85) established the QDR and the NDP, but the provision was a one year   
   provision, and did not establish a recurring requirement. The Congress  
   established the QDR as a permanent recurring requirement (10 U.S. Code, 
   118) in the National Defense Authorization Act of FY 2000, but did not  
   include a requirement for the NDP.                                      
      This provision responds to widespread belief that the combination of 
   the QDR and NDP serve to heighten awareness of the administration, the  
   Pentagon, the Congress, and the broader national security establishment 
   on national defense strategies and policies for the future. This        
   provision authorizes establishment of an NDP, consisting of nine        
   recognized national security experts and appropriate support staff, to  
   proceed concurrently with the QDR. Three members are to be appointed by 
   the Chairman, Senate Armed Services Committee, in consultation with the 
   ranking member. Three members are to be appointed by the Chairman, House
   Armed Services Committee, in consultation with the ranking member. Three
   members are to be appointed by the Secretary of Defense. The Secretary  
   of Defense, in consultation with the Chairman and ranking member of each
   Committee on Armed Services, will designate one of the nine members as  
   the Chairman of the NDP.                                                
      The intent of this provision is to establish an NDP in fiscal year   
   2001 that will independently and objectively assess the current and     
   projected strategic environment, assess the most dangerous threats to   
   the national security interests of the                                  

                    United States over the next 10 to 20 years, and identify the  
          strategic and operational challenges for the armed forces in countering 
          these threats. The NDP will provide an interim report to the Secretary  
          of Defense not later than July 1, 2001, that will be of assistance to   
          him as he evaluates the overall QDR process. The NDP will provide a     
          final report to the Secretary of Defense and to Congress not later than 
          December 1, 2001. The Secretary of Defense will provide the defense     
          committees of Congress his comments on the final NDP report not later   
          than December 15, 2001.                                                 
            Quadrennial National Defense Panel (sec. 904)                          

      The committee recommends a provision that amends title 10, United    
   States Code, to require that a National Defense Panel (NDP) be          
   established on a recurring basis, every four years in the year preceding
   the inauguration of a new President. The National Defense Authorization 
   Act for Fiscal Year 1997 (Public Law 105 85) established the Quadrennial
   Defense Review (QDR) and the NDP, but the provision was a one year      
   provision, and did not establish a recurring requirement. The Congress  
   established the QDR as a permanent recurring requirement (10 U.S.C.     
   118), but did not include a requirement for the NDP.                    
      This provision responds to widespread belief that the combination of 
   the QDR and NDP serve to heighten awareness of the administration, the  
   Pentagon, the Congress, and the broader national security establishment 
   on national defense strategies and policies for the future. This        
   provision authorizes the establishment an NDP, consisting of nine       
   recognized national security experts and appropriate support staff, to  
   precede the QDR. Three members are to be appointed by the Chairman,     
   Senate Armed Services Committee, in consultation with the ranking       
   member. Three members are to be appointed by the Chairman, House Armed  
   Services Committee, in consultation with the ranking member. Three      
   members are to be appointed by the Secretary of Defense. The Secretary  
   of Defense, in consultation with the Chairman and ranking member of each
   Committee on Armed Services, will designate one of the nine members as  
   the Chairman of the NDP.                                                
      The intent of this provision is to establish a recurring NDP that    
   will independently and objectively assess the current and projected     
   strategic environment, assess the most dangerous threats to the national
   security interests of the United States over the next 10 to 20 years,   
   and identify the strategic and operational challenges for the armed     
   forces in countering these threats. The NDP will serve to provide an    
   incoming Secretary of Defense of a new administration with a range of   
   strategic directions and policy options which may assist him in         
   formulating the strategic framework and guidance to be used by the QDR  
   required to be conducted during the first year of a new administration. 
   Additionally, this provision provides the opportunity for Congress, in  
   accordance with its oversight role, to have insight and an avenue for   
   input into the QDR process.                                             
                       Inspector General investigations of prohibited personnel    
           actions (sec. 905)                                                      
      The committee recommends a provision that would amend section 1034 of
   title 10, United States Code, to broaden the definition of ``Inspector  
   General'' in that section to include any officer of the armed forces or 
   employee of the Department of Defense, not otherwise referred to in that
   definition, who is assigned or detailed to serve as an inspector general
   at any level in the Department. This expanded definition would authorize
   defense agency and joint service inspectors general, and civilian       
   employees serving in such positions elsewhere in the Department, to     
   handle alleged violations of the whistleblower protections afforded     
   members of the armed forces in this statute. The provision also         
   clarifies that the procedures necessary to ensure the expeditious       
   processing and investigation of such alleged violations shall be set out
   in regulations to be prescribed by the Secretary of Defense. The        
   committee understands that these regulations require that any           
   investigation undertaken pursuant to section 1034 must be conducted by  
   an inspector general who is independent of any individuals who may be   
   subjects of the investigation.                                          
            Network centric warfare (sec. 906)                                     

      The committee has noted, with great interest, the efforts by         
   Department of Defense (DOD) agencies, the military services, the joint  
   staff, and combatant commanders to establish mechanisms to integrate    
   information systems, sensors, weapons systems and decision-makers. The  
   common terminology for this is network centric warfare (NCW). In        
   conversations with various agencies and organizations, it has become    
   increasingly apparent that many of these efforts are innovative but are 
   unnecessarily redundant and not designed to work in conjunction with    
   each other. More importantly, it appears that there is not an effective 
   overarching concept at the DOD level to fully integrate these various   
   concepts of operation and maximize their potential contribution to      
   information superiority--a cornerstone of Joint Vision 2010.            
      Although ideas relating to the concepts of NCW have been analyzed    
   within DOD, no clear consensus has emerged as to what priority it should
   have within broader efforts to transform the military. Additionally,    
   there is no agreement on what fundamental organizational and doctrinal  
   changes need to be                                                      

                    pursued in order to most effectively implement these concepts 
          or how the military services should work jointly in this effort. As a   
          result, although the military services and several defense agencies are 
          exploring new organizational concepts, operating procedures, training   
          programs, and technologies to ensure information superiority in their   
          operations, these efforts are often underfunded, low priority, and have 
          not included joint war fighting and interoperability considerations.    
      Specifically, the committee has noted the following: (1) NCW is a set
   of concepts being developed to exploit the power of information and U.S.
   superiority in information technologies to maintain dominance on the    
   battlefield while protecting the infrastructure and information that is 
   critical to the United States; (2) NCW involves the integration of      
   information from combat, combat support, logistics elements and         
   headquarters staffs into a seamless system that provides a common       
   picture of the battlespace that can be simultaneously shared and used by
   sensors, weapons systems, combat personnel, decision makers, support    
   elements, and other elements of the military services, unified commands,
   and allied forces operating in that battlespace; (3) a robust joint     
   command, control, communications, computers, intelligence, surveillance,
   and reconnaissance (C4ISR) capability involving a networking of all     
   these entities facilitates the timely flow of relevant, processed       
   information that is necessary for achieving the sharing of an accurate  
   common picture of the battlespace; (4) NCW is about networking          
   capabilities, rather than creating separate networks or technologies,   
   and is a means to generate greater combat power, dominance, and synergy 
   through a linking of critical information sources that are              
   geographically or hierarchically dispersed; (5) NCW is inherently joint,
   in that new air, sea, and land platforms under development must be able 
   to integrate themselves into a seamless, overarching information        
   architecture to be able to see the battlespace, contribute to the       
   information base, and quickly receive orders to employ required         
   capabilities; (6) being joint in nature, the NCW concepts must be       
   approved at the highest levels of DOD and executed aggressively by a    
   coordinated, iterative effort of all the military services, defense     
   agencies, combatant commands and the joint staff; (7) successful        
   implementation of the concepts will produce numerous benefits,          
   including: (a) significant reduction in fratricide; (b) more adaptive   
   and agile forces capable of engaging effectively across the spectrum of 
   conflict with higher probability of success and reduced risk; (c)       
   enhancement of interoperability among the military services and allied  
   forces; (d) reduced manning requirements and life cycle costs for       
   weapons systems; and (e) efficient combat support operations; (8) the   
   well-intentioned, but separate efforts of the military services and     
   defense agencies have resulted in recurring difficulties and            
   deficiencies, including a number of interoperability failures of        
   critical systems and inefficiencies in recent operations, including     
   Kosovo.                                                                 
      As a result of these findings and concerns, the committee directs    
   that DOD provide three reports to the congressional defense committees  
   no later than March 1, 2001, that summarize their efforts to coordinate 
   NCW activities within the entire Department. The first report will be a 
   comprehensive summary on the development and implementation of NCW      
   concepts in DOD. The report will include: (1) a clear definition of NCW;
   (2) identification and description of Office of the Secretary of        
   Defense, joint staff and U.S. Joint Forces Command activities to        
   coordinate NCW related activities; (3) recommended metrics for          
   evaluating the progress towards implementing NCW concepts and attainment
   of fully integrated C4ISR capabilities; (4) recommendations for joint   
   concept development and joint experimentation; (5) progress made, as    
   determined by quantitative standards: (a) toward establishing an        
   overarching conceptual foundation in programs and initiatives currently 
   underway; (b) in fielding force-wide friendly combat identification; and
   (c) in effective fire control and airspace management; (6) discussion of
   additional authorities, authorizations and other resources required to  
   effectively implement NCW; (7) joint requirements and acquisition policy
   changes being made or considered to implement NCW; (8) a discussion of  
   how private sector lessons learned in networking are being incorporated;
   and (9) a discussion of how DOD NCW systems will integrate with other   
   agencies of the federal government when DOD civil support is required.  
      Additionally, the committee directs the Commander-in-Chief, U.S.     
   Joint Forces Command, on behalf of the Secretary of Defense, to conduct 
   a study and submit a report on how to best use service and joint        
   experimentation programs to develop NCW concepts and identify barriers  
   to their implementation.                                                
      Finally, the committee directs the Undersecretary of Defense for     
   Acquisition, Technology and Logistics to submit a report describing the 
   coordination in several specified areas of the science and technology   
   investments of the military departments and defense agencies in the     
   development of future NCW capabilities.                                 
                       Additional duties for the Commission to Assess United States
           National Security Space Management and Organization (sec. 907)          
      Subtitle C of title XVI of the National Defense Authorization Act for
   fiscal year 2000 established a Commission to Assess United States       
   National Security Space Management and Organization. The committee      
   recommends a provision that would amend section 1622 of the National    
   Defense Authorization Act for Fiscal year 2000 to include additional    
   duties for the commission.                                              

            Special authority for administration of Navy Fisher Houses (sec. 908)  

      The committee recommends a provision that would clarify the degree to
   which Navy Fisher Houses may be provided common support equivalent to   
   category B community support activities and would permit the current    
   general schedule employees to continue to serve until they leave those  
   positions.                                                              
            Organization and management of the Civil Air Patrol (sec. 909)         

      The committee recommends a provision that would codify the agreement 
   recently reached between the Secretary of the Air Force and the         
   leadership of the Civil Air Patrol. However, the provision would not    
   allow contract employees of the Air Force to commit federal resources.  
      The committee commends the Secretary of the Air Force and the        
   leadership of the Civil Air Patrol for their efforts to establish a more
   cooperative relationship. The committee supports the proposal to develop
   an appropriate oversight mechanism to ensure the responsible expenditure
   of federal resources.                                                   
            Responsibility for the National Guard Challenge Program (sec. 910)     

      The committee recommends a provision that would transfer             
   responsibility for the National Guard Challenge Program from the Chief  
   of the National Guard Bureau to the Secretary of Defense, and would     
   amend the limitation on federal funding for the National Guard Challenge
   program to limit only Department of Defense funding. The fiscal year    
   2001 budget request for the National Guard Challenge is $62,500,000,    
   which is also the maximum permitted by the existing statute. The        
   recommended provision recognizes the concept of civilian control of the 
   military and would clarify that the Assistant Secretary of Defense for  
   Reserve Affairs is not required to communicate with state National Guard
   Challenge programs through the National Guard Bureau. The committee     
   expects the National Guard Bureau to continue to be an important element
   in the National Guard Challenge Program.                                
                       Supervisory control of Armed Forces Retirement Home Board by
           Secretary of Defense (sec. 911)                                         
      The committee recommends a provision that would establish that the   
   Armed Forces Retirement Home Board is subject to the authority,         
   direction, and control of the Secretary of Defense in the performance of
   its responsibilities, would give the Secretary of Defense authority over
   appointment and terms of board members, and would make the Chairman of  
   the Retirement Home Board responsible to the Secretary of Defense.      
            Consolidation of certain Navy gift funds (sec. 912)                    

      The committee recommends a provision that would authorize the        
   Secretary of the Navy to transfer all amounts in the Naval Historical   
   Center Fund to the Department of the Navy General Gift Fund and to close
   the Naval Historical Center Fund. The recommended provision would also  
   authorize the Secretary of the Navy to transfer all amounts in the      
   United States Naval Academy Museum Fund to the gift fund maintained for 
   the benefit and use of the United States Naval Academy, and to close the
   United States Naval Academy Museum Fund.                                
                       Temporary authority to dispose of a gift previously accepted
           for the Naval Academy (sec. 913)                                        
      The committee recommends a provision that would authorize the Naval  
   Academy to, during fiscal year 2001 and at the request of the donor,    
   transfer a gift previously given to the Naval Academy Gift fund to      
   another entity.                                                         

                                 TITLE X--GENERAL PROVISIONS                      

                                SUBTITLE A--FINANCIAL MATTERS                     

                       Authorization of prior emergency supplemental appropriations
           for fiscal year 2000 (sec. 1002)                                        
      The committee recommends a provision that would authorize the        
   emergency supplemental appropriations enacted in the 2000 Supplemental  
   Appropriations and Rescissions Act (Public Law 106 XXX). The            
   supplemental provided funding for fiscal year 2000 expenses related to  
   military operations in Kosovo, Drug Interdiction and Counter-Drug       
   Activities, and natural disasters.                                      
            United States contributions to NATO common-funded budgets (sec. 1003)  

      The resolution of ratification for the Protocols to the North        
   Atlantic Treaty of 1949 on the Accession of Poland, Hungary and the     
   Czech Republic contained a provision (section 3(2)(c)(ii)) that requires
   a specific authorization for U.S. payments to the common-funded budgets 
   of NATO for each fiscal year, beginning in fiscal year 1999, that U.S.  
   payments exceed the fiscal year 1998 total. The committee recommends a  
   provision to authorize the U.S. contribution to NATO common-funded      
   budgets for fiscal year 2001, including the use of unexpended balances  
   from prior years.                                                       
            Annual OMB/CBO joint report on scoring budget outlays (sec. 1004)      

      The committee recommends a provision that makes minor administrative 
   changes to the joint annual Office of Management and                    
   Budget/Congressional Budget Office (OMB/CBO) report on the scoring of   
   budget outlays.                                                         
            Prompt payment of contractor vouchers (sec. 1005)                      

      The committee recommends a provision that will require the Secretary 
   of Defense to reduce the backlog of vouchers to be paid by the Defense  
   Finance and Accounting Service (DFAS) to five percent or less of the    
   total Mechanization of Contract Administration Service (MOCAS) vouchers 
   received. Normal commercial practice, as well as the government's own   
   policy, calls for payment within 30 days for work satisfactorily        
   accomplished. The committee is concerned that this standard is not being
   accomplished and creates undue hardships for private sector enterprises 
   doing business with the Department of Defense (DOD).                    
      The Committee recognizes the efforts by DFAS to reduce the backlog of
   vouchers and the electronic initiatives to expedite the processing of   
   these vouchers, and applauds this effort. The DOD is urged to move more 
   aggressively in the areas of electronic commerce to develop a common    
   family of invoices, reduce excessive detail and supporting data, and    
   streamline the payment process. Electronic invoicing and payment has    
   demonstrated its value and the Department is urged to be more aggressive
   in these areas.                                                         
                       The repeal of certain requirements relating to timing of    
           contract payments (sec. 1006)                                           
      The committee recommends a provision that would repeal two provisions
   of the Department of Defense Appropriations Act for Fiscal Year 2000    
   (Public Law 106 79) concerning the prompt payment act and the shifting  
   of pay days for federal employees.                                      
            Plan for prompt posting of contractual obligations (sec. 1007)         

      The committee recommends a provision that would require the Secretary
   of Defense to submit a plan concerning the timely obligation of funds.  
   The committee notes that the ability to obligate funds is not           
   standardized or even centralized within the Department of Defense. This 
   obligation authority resides in the services in some cases and Defense  
   Finance and Accounting Service in others. This lack of uniformity calls 
   into question the Department's ability to reduce the backlog of vouchers
   and problem disbursements, and to improve the accounting systems.       
                       Plan for the electronic submission of documentation         
           supporting claims for contract payments (sec. 1008)                     
      The committee recommends a provision that would require the Secretary
   of Defense to submit a plan to the congressional defense committees by  
   March 31, 2001, for the electronic submission of contract supporting    
   transactions (e.g. invoices, receiving reports, and certifications).    
                       Administrative offsets for overpayment of transportation    
           costs (sec. 1009)                                                       
      The committee recommends a provision that would provide a streamlined
   offset procedure for amounts overpaid for transportation services, that 
   are below the simplified acquisition threshold of $100,000. The amounts 
   offset would be credited to the appropriation or accounts that funded   
   the                                                                     

                    transportation service. This provision does not effect the    
          budgetary requirements for these services.                              
                             SUBTITLE B--COUNTER-DRUG ACTIVITIES                  

      The budget request for drug interdiction and other counter-drug      
   activities of the Department of Defense (DOD) totals $1.1 billion:      
   $836.0 million in central transfer account; $166.5 million in the       
   operating budgets of the military services for authorized counter-drug  
   operations; and $76.8 million in the military construction account for  
   infrastructure improvements at the forward operating locations. This    
   request is in addition to the $137.0 million in the emergency fiscal    
   year 2000 supplemental funding request for Plan Colombia.               
      The Committee recommends the following fiscal year 2001 budget for   
   the Department's counter-narcotics activities.                          

Drug Interdiction & Counterdrug Activities, Operations and Maintenance  

          [In thousands of dollars]                                               

          [May not add due to rounding]                                           



          Fiscal Year 2001 Drug and Counterdrug Request                $1,070,064



          Goal 1 (Dependent Demand Reduction)                22,736



          Goal 2 (Support to DLEAs)                89,905



          Goal 3 (DOD Personnel Demand Reduction)                74,067



          Goal 4 (Drug Interdiction--TZ/SWB)                447,414



          Goal 5 (Supply Reduction)                435,942

   Increases:                                                              



          Airborne Reconnaissance Low                31,000



          National Guard Support                25,000

   Decreases:                                                              



          DINANDRO Riverine Support                3,000



          DEA Transportation Support (PC 2307)                1,350



          Carribean Law Enforcement Support                2,703

   Supplemental Appropriation                                              



          Forward Operating Location Construction                76,800



          Plan Colombia                  40,000

                                                                            



           Total Fiscal Year 2001 Drug and Counterdrug Funding                1,119,011


                       Extension and increase of authority to provide additional   
           support for counter-drug activities (sec. 1011)                         
      The committee recognizes the importance of providing the             
   democratically elected governments of the countries of the Andean Ridge,
   particularly Colombia, with the tools and training necessary to assert  
   control over their sovereign national territory to prevent the illegal  
   trafficking of narcotics and the regional in stability that narcotics   
   trafficking creates. The committee supports the President's request for 
   the supplemental funding that would be used to help train and equip the 
   military and police forces of these countries. However, the resources   
   requested for these activities would exceed the current authorities.    
   Therefore, the committee recommends a provision that would extend until 
   fiscal year 2006 the authority for the DOD to provide certain           
   counter-drug assistance to the Government of Colombia. The provision    
   would also increase the level of resources authorized to be expended    
   through this authority to $40.0 million each year.                      
                       Recommendations on expansion of support for counter-drug    
           activities (sec. 1012)                                                  
      The committee understands the valuable contribution that the         
   Department of Defense has made in providing needed assistance to the    
   counter-drug forces of Colombia and Peru. However, the committee is     
   concerned about efforts to seek an expansion of current authority to    
   other nations without a clear plan on how this assistance will be put to
   the most effective use.                                                 
      Therefore, the committee recommends a provision that would require   
   the Secretary of Defense to provide a report to the Committees on Armed 
   Services of the Senate and the House of Representatives that would      
   outline the Secretary's views regarding what, if any, additional        
   countries should be included; what, if any, additional support should be
   provided; and a detailed plan for providing support, including the      
   counter-drug activities proposed to be supported.                       
            Review of riverine counter-drug program (sec. 1013)                    

      The committee is concerned with reports of problems in the management
   and operation of certain portions of the riverine counter-drug program. 
   While this program has made great strides improving the counter-drug    
   capability of some forces, other forces have had far less success.      
      Therefore, the committee includes a provision that would require the 
   Secretary of Defense, acting through the Assistant Secretary of Defense 
   for Special Operations and Low Intensity Conflict, to review the        
   riverine counter-drug program and provide a report to Congress on the   
   results of that review. The report should include an assessment of the  
   effectiveness of the program for each country receiving support, and a  
   recommendation regarding which of the armed forces, units of the armed  
   forces, or other organizations within the DOD should be responsible for 
   managing the program.                                                   

      The committee further recommends a reduction of $3.0 million in the  
   support provided to the riverine operations of the Government of Peru.  
            Airborne Reconnaissance Low                                            

      The committee recognizes the critical need for intelligence,         
   surveillance, and reconnaissance (ISR) assets to be deployed to the U.S.
   Southern Command (SOUTHCOM) in order to more effectively combat the     
   illegal trafficking of narcotics. In recent testimony before the Senate 
   Armed Services Committee, General Wilhelm, Commander-in-Chief of the    
   U.S. Southern Command, identified a need for more ISR assets.           
   Unfortunately, as a result of requirements in other theaters, and the   
   tragic accident in Colombia last year, there are insufficient quantities
   of ISR assets to always meet SOUTHCOM's requirements. In recent letters 
   to the committee, General Shinseki, Chief of Staff of the U.S. Army, and
   General Shelton, Chairman of the Joint Chiefs of Staff, identified a    
   requirement for an additional Airborne Reconnaissance Low aircraft that 
   was not included in the fiscal year 2001 budget request.                
      The committee recommends an increase of $31.0 million for the        
   procurement of an Airborne Reconnaissance Low aircraft to be used in the
   Department's counter-drug mission.                                      
            National Guard counter-drug activities                                 

      The committee understands the valuable contribution of the National  
   Guard in the war on drugs. Therefore, the committee recommends an       
   increase of $25.0 million for the counter-drug activities of the        
   National Guard including the regional counter- drug operations such as  
   the Gulf States Counter-Drug Initiative, the Regional Counter-Drug      
   Training Academy, and the Northeast Counter-Drug Training Center.       
            Plan Colombia & Forward Operating Location construction                

      The committee recommends a decrease of $40.0 million to the fiscal   
   year 2001 budget request for Plan Colombia to reflect the fact that     
   these funds were provided through the counter-drug budget supplemental  
   in fiscal year 2000. The adjustment for the supplemental appropriation  
   for the Forward Operating Location construction is reflected in Division
   B of this report.                                                       
            Drug Enforcement Agency transportation support                         

      The committee is concerned with the Drug Enforcement Agency's (DEA)  
   reliance on the DOD to transport DEA personnel around the Caribbean.    
   Transportation of DEA personnel does not enhance military capabilities  
   or require unique military assets, is the responsibility of the DEA, and
   should be funded through the DEA budget. The DOD budget request includes
   $3.4 million for such transportation services. The committee recommends 
   a decrease of $1.4 million to the budget request for this activity. The 
   committee expects the DEA to assume all costs for this activity after   
   fiscal year 2001.                                                       
            Caribbean law enforcement support                                      

      The committee is concerned with the increased reliance upon the DOD  
   to provide assistance to foreign law enforcement agencies where the     
   Department has limited, or no mission responsibility. The budget request
   includes $6.7 million for assistance to law enforcement agencies of     
   Caribbean nations. The committee recommends a decrease of $2.7 million  
   to the request for this activity. The committee expects the State       
   Department to provide the support for this activity in the future.      
                                SUBTITLE C--STRATEGIC FORCES                      

            Revised nuclear posture review (sec. 1015)                             

      Six years have passed since the nuclear posture review of fiscal year
   1994. The committee believes that a new nuclear posture review is       
   overdue and should be completed in the near future. Although            
   Presidential Decision Directive 60, signed in November 1997, reaffirmed 
   and updated U.S. nuclear weapons employment policy guidance, there has  
   not been an end-to-end review of U.S. nuclear weapons strategy,         
   requirements, and posture since fiscal year 1994.                       
      The committee recommends a provision that would require the Secretary
   of Defense, in consultation with the Secretary of Energy, to conduct a  
   comprehensive nuclear posture review that looks out five to ten years.  
   The review would include: (1) the role of nuclear forces in United      
   States military strategy, planning, and programming; (2) the policy     
   requirements and objectives for the United States to maintain a safe,   
   reliable and credible nuclear deterrence posture; (3) the relationship  
   between U.S. nuclear deterrence policy, targeting strategy, and arms    
   control objectives; (4) the levels and composition of nuclear delivery  
   systems that will be required to implement the U.S. national and        
   military strategy, including any plans to replace or modify existing    
   systems; (5) the nuclear weapons complex that will be required to       
   implement U.S. national and military strategy, including any plans to   
   modernize or modify the complex; and (6) the active and inactive nuclear
   weapons stockpile that will be required to implement U.S. national and  
   military                                                                

                    strategy, including any plans for replacing or modifying      
          warheads. The provision would also require that, concurrently with the  
          Quadrennial Defense Review due in December 2001, the Secretary of       
          Defense shall submit to Congress a report, in unclassified and          
          classified forms as necessary, on the nuclear posture review. Finally,  
          the provision expresses the sense of Congress that a revised nuclear    
          posture review should be used as the basis for establishing future arms 
          control objectives and negotiating positions.                           
                       Plan for the long-term sustainment and modernization of     
           United States strategic nuclear forces (sec. 1016)                      
      The committee recommends a provision that would require the Secretary
   of Defense, in consultation with the Secretary of Energy, to prepare a  
   plan for the long-term sustainment and modernization of U.S. strategic  
   forces. The committee expects that the plan would look beyond current   
   efforts to modernize existing systems and lay out a comprehensive vision
   for the maintenance of deterrent forces.                                
      The committee is concerned that the Department of Defense and the    
   Department of Energy may not be adequately planning for United States   
   strategic nuclear forces in the long term. The committee supports       
   current efforts to provide for continued sustainment of existing        
   strategic delivery systems and warheads, but is concerned that there    
   appears to be no long-range vision of how the United States should      
   preserve strategic deterrent forces. The committee believes that the    
   United States will require such forces beyond the date when existing    
   systems become obsolete.                                                
                       Correction of scope of waiver authority for limitation on   
           retirement or dismantlement of strategic nuclear delivery vehicles (sec.
           1017)                                                                   
      Section 1501 of the National Defense Authorization Act for Fiscal    
   Year 2000 revised the limitation on retirement or dismantlement of      
   strategic nuclear delivery vehicles contained in the National Defense   
   Authorization Act of Fiscal Year 1998 by permitting the Navy to retire  
   (or otherwise eliminate from strategic nuclear operational status) four 
   of its eighteen Trident ballistic missile submarines. The provision also
   includes a waiver authority that the President can exercise if the START
   II treaty enters into force. As drafted, however, the waiver only       
   applies to the retirement of submarines. Therefore, the committee       
   recommends a provision that would revise the scope of the section 1501  
   waiver so that it applies to all of the strategic nuclear delivery      
   vehicles covered by section 1501.                                       
            Study and report on hardened and deeply buried targets (sec. 1018)     

      The committee recommends a provision that would require the          
   Secretaries of Defense and Energy to assess requirements and options for
   defeating hardened and deeply buried targets. The provision would       
   expressly authorize the Department of Energy (DOE) to conduct any       
   limited research and development that may be necessary to complete such 
   assessments.                                                            
      The committee notes that a recent legal interpretation of existing   
   law raised questions regarding whether DOE could participate in or      
   otherwise support certain Department of Defense (DOD) studies and       
   options assessments for defeating hardened and deeply buried targets.   
   This provision removes any uncertainty and expressly allows DOE to      
   assist the DOD with a review of these targets and the options for       
   defeating such targets. The committee believes that DOE should provide  
   information and all other assistance required to help DOD make informed 
   decisions on whether: (1) to proceed with a new method of defeating     
   hardened and deeply buried targets and; (2) to seek any necessary       
   modifications to existing law.                                          
      The committee is concerned that the ability to defeat hardened and   
   deeply buried targets will continue to be a significant challenge for   
   the foreseeable future.                                                 
                      SUBTITLE D--MISCELLANEOUS REPORTING REQUIREMENTS            

                       Annual report of the chairman of the joint chiefs of staff  
           on combatant command requirements (sec. 1021)                           
      The committee recommends a provision that would amend section        
   153(d)(1) to require the Chairman of the Joint Chiefs to include within 
   his report to Congress on the readiness requirements of the combatant   
   commanders, information on the extent to which those requirements are   
   addressed in the future years defense program.                          
            Joint Requirements Oversight Council (sec. 1022)                       

      The Joint Requirements Oversight Council (JROC) was formed by the    
   Department of Defense (DOD) after enactment of the Goldwater-Nichols    
   Defense Reorganization Act of 1986. At the request of DOD, title 10,    
   U.S. Code was amended by the National Defense Authorization Act of 1996 
   (Public Law 105 85) to establish a legal requirement for the JROC (title
   10, U.S. Code, 181). The JROC was formed to assist the Chairman, Joint  
   Chiefs                                                                  

                    of Staff (CJCS), in carrying out his title 10 responsibilities
          to provide the best possible advice to the Secretary on the degree to   
          which defense budget proposals conform to requirements expressed by the 
          combatant commanders, and to ensure that joint war fighting capabilities
          and joint interoperability issues were highlighted to the Secretary as  
          he prepared his defense budget guidance. Accordingly, the JROC became a 
          mechanism for forging consensus among the services on programming and   
          budgeting issues.                                                       
      While the JROC has made progress in promoting joint interoperability,
   much remains to be done. In recent years, the JROC has been increasingly
   involved in solving short-term unified commander requirements. At an    
   April 4, 2000 Emerging Threats and Capabilities Subcommittee hearing on 
   joint requirements, capabilities, and experimentation, General Richard  
   B. Myers, USAF, the Vice Chairman, Joint Chiefs of Staff, testified that
   the JROC must evolve further, shifting its focus to more strategic,     
   future advanced war fighting requirements. To implement required changes
   in the JROC, the CJCS, with the support of the service chiefs and the   
   combatant commanders has proposed an initiative, which includes: (1)    
   shifting the primary focus of the JROC to more strategic issues; (2)    
   integrating joint experimentation activities fully into the             
   requirements, capabilities, and acquisition processes; and (3) shifting 
   the focus of the Joint War Fighting Capability Assessment Teams from    
   short-term, narrow issues to directly supporting the JROC in analyzing  
   broader, future joint war fighting requirements.                        
      The committee is encouraged by this initiative and will follow it    
   closely. However, the committee is troubled to hear concerns from       
   combatant commanders about continuing deficiencies in joint military    
   capabilities. A JROC process that recommends solutions to the most      
   critical joint war fighting challenges at the strategic and operational 
   levels could play a critical role in solving many of these problems.    
      In order to monitor developments in this area, the committee directs 
   the CJCS to submit a report to the congressional defense committees, by 
   February 28, 2001, and semi-annually thereafter, detailing the progress 
   made in reforming and re-focusing the Joint Requirements Oversight      
   Council process. The report must include, but not necessarily be limited
   to, the following: (1) a listing and justification for each of the      
   distinct capability areas selected by the CJCS as the principal domain  
   of the JROC; (2) a listing of joint requirements developed, considered, 
   and/or approved within each of those capability areas; (3) a listing and
   explanation of decisions made by the JROC during the reporting period,  
   with special note of actions made that were in disagreement with the    
   position presented by the Commander-in- Chief, U.S. Joint Forces        
   Command, as the chief proponent of joint and combatant commander        
   requirements; (4) an assessment of the progress made in elevating the   
   JROC to a more strategic focus on future war fighting requirements,     
   integration of requirements, and the development of over-arching common 
   architectures; (5) a summation and assessment of the role and impact of 
   joint experimentation on the joint requirements, service requirements,  
   defense acquisition and service acquisition processes and decisions; (6)
   recommendations as to additional legislation and/or resources required  
   to further refocus and reform the JROC process; and (7) procedural      
   actions taken to improve the JROC.                                      
                       Preparedness of military installation first responders for  
           incidents involving weapons of mass destruction (sec. 1023)             
      The committee is supportive of the Department of Defense's (DOD)     
   efforts to ensure first responder preparedness on military              
   installations. However, the committee is concerned with the timetable   
   for the program and also with the degree of coordination between the    
   services and the local community first responders, particularly with    
   regards to standardized equipment. The committee has included a         
   provision directing, not less than 90 days after the date of enactment  
   of this act, the Secretary of Defense to submit to the committee a      
   report on the Department's program to ensure the preparedness of DOD    
   first responders for incidents involving weapons of mass destruction on 
   military installations. The provision directs the Secretary to include  
   within the report the following: a detailed description of the program; 
   the schedule and costs associated with the implementation of the        
   program; how the program is being coordinated with first responders in  
   the local communities in the localities of the installations; and the   
   plan for promoting the interoperability of the equipment used by the    
   installation first responders with the equipment used by the first      
   responders in the localities.                                           
                       Date of submittal of reports on shortfalls in equipment     
           procurement and military construction for reserve components in future  
           years defense programs (sec. 1024)                                      
      The committee recommends a provision that would amend section        
   10543(c) of title 10, United States Code, to specify that the report    
   required by the section be submitted not later than 15 days after the   
   date on which the President submits to Congress the budget for a fiscal 
   year.                                                                   
      The committee is aware that the current level of funding for the     
   reserve components will not reduce the significant backlog in military  
   construction requirements. The impact will be increased costs for repair
   and maintenance, declining readiness and quality of life. The backlog   
   problem is further aggravated by the lack of a uniform standard in      
   characterizing the funding requirements. For the past several years, the
   Air Force has characterized some                                        

                    reserve component military construction projects as being in  
          the ``unfunded'' future years defense program (FYDP), while the other   
          components have resorted to other means to identify their requirements  
          above those in the FYDP. However, the reporting requirement in section  
          10543 requires the Department of Defense to identify the highest        
          priority unfunded requirements for the reserve components. It does not  
          equate those unfunded requirements to an ``unfunded FYDP''. The         
          committee expects the military departments to adhere to the traditional 
          practices of classifying projects as either in the FYDP or not in the   
          FYDP and of inclusion of the highest priority projects in the FYDP. To  
          ensure consistency and that the highest priority construction projects, 
          both unfunded and those in the FYDP, receive appropriate congressional  
          consideration for additional funds, when available, the report required 
          by section 10543(c)(1) shall reflect the highest priority projects      
          whether or not they are included in the FYDP.                           
      The committee is encouraged by the efforts of the Assistant Secretary
   of Defense for Reserve Affairs to increase funding and improve          
   facilities for the reserve components through innovative approaches,    
   such as joint use facilities. However, the ultimate solution is         
   additional funding. The committee urges the military departments to more
   robustly fund reserve component construction in future budget requests  
   and the future year defense program.                                    
      To ensure the funding resources available are devoted to the highest 
   priority needs, the committee stringently follows the criteria          
   established by the sense of the Senate provision on authorization of    
   funds for military construction projects not requested in the           
   President's Annual Budget Request (section 2856 of the National Defense 
   Authorization Act for Fiscal Year 1995). The committee urges the        
   military departments to cooperate in this effort by adhering to this    
   clear standard when identifying military construction projects for      
   authorization that are not in the military construction budget request. 
            Management review of defense logistics agency (sec. 1025)              

      The committee recommends a provision that would require the          
   Comptroller General of the United States to conduct a review of all the 
   functions of the Defense Logistics Agency to assess their efficiency,   
   their effectiveness in meeting customer needs, their ability to adopt   
   best business practices, and to identify alternative approaches for     
   improving the agency's operations.                                      
      An effective, efficient, and responsive logistics system is essential
   for ensuring a ready and reliable military force capable of successfully
   executing the national military strategy with a minimum of risk. The    
   committee believes that the Defense Logistics Agency must be capable of 
   meeting its customer requirements in the most efficient manner,         
   exploiting best business practices where practical, and exploring       
   alternative approaches when they make sense.                            
            Management review of defense information systems agency (sec. 1026)    

      The Committee recommends a provision that would require the          
   Comptroller General of the United States to conduct a comprehensive     
   review of the operations of the Defense Information Systems Agency      
   (DISA) and make such recommendations that the Comptroller General       
   determines would improve the support that this agency provides to the   
   military services.                                                      
      The increased role that information technology and services play in  
   the national security environment requires that the military services   
   receive the most efficient and effective support from those who provide 
   these services. DISA, as the principal supplier of information services 
   in the Department of Defense, must ensure that it is structured to take 
   advantage of best business practices and to adopt alternative approaches
   where it makes sense.                                                   
                              SUBTITLE E--INFORMATION SECURITY                    

                       Institute for defense computer security and information     
           protection (sec. 1041)                                                  
      The committee recommends a provision that would require the Secretary
   of Defense to establish an institute for defense computer security and  
   information assurance to address the critical information assurance     
   requirement of the Department of Defense (DOD). The institute would also
   facilitate the exchange of information regarding cyber threats,         
   technology, tools, and other relevant issues, between government and    
   non-government organizations and entities. The provision would require  
   the Secretary to enter into a contract with a not-for-profit entity or  
   consortium to organize and operate the institute. Finally, the provision
   would require the use of competitive procedures for the selection of the
   organization responsible for the operation of the institute, to the     
   extent determined necessary by the Secretary. The committee recommends  
   an increase of $10.0 million in Operations and Maintenance,             
   Defense-Wide, for establishment and initial operation of the institute. 
      The committee strongly supports the information assurance efforts of 
   the DOD. A critical element of this effort is research and development  
   in the area of information and network security. Although the DOD       
   currently undertakes such research in various ways, including through   
   private contractors, federally funded research and development centers  
   and universities, the DOD                                               

                    does not have a central mechanism for coordinating these      
          efforts. Currently a significant amount of research relevant to DOD is  
          not being undertaken in the private sector or within government.        
          Moreover, some research being done in the private sector is not         
          available to the DOD.                                                   
            Information security scholarship program (sec. 1042)                   

      The committee recommends a provision that would establish an         
   Information Security Scholarship Program within the Department of       
   Defense (DOD) that would allow the Secretary of Defense to provide      
   educational assistance to individuals seeking a baccalaureate or an     
   advanced degree in disciplines related to computer security, network    
   security, and information assurance in exchange for a service agreement.
   This program would allow active duty military personnel, DOD civilian   
   personnel, and individuals not employed by the DOD to acquire such      
   education in exchange for accepting or continuing employment in the DOD 
   in the area of computer security and information assurance. The         
   committee has received extensive testimony and other reports regarding  
   the importance of education and training to the defense information     
   assurance program and all other facets of cyber security.               
      The committee notes that Presidential Decision Directive/NSC 63, of  
   May 22, 1998, regarding critical infrastructure protection, states that:
   ``. . . there shall be Vulnerability Awareness and Education Programs   
   within both the government and the private sector to sensitize people   
   regarding the importance of security and to train them in security      
   standards, particularly regarding cyber systems.'' The National Plan for
   Information Systems Protection of January 12, 2000, states that: ``. . .
   within the Federal Government, the lack of skilled information systems  
   security personnel amounts to a crisis. This shortfall of workers       
   reflects a scarcity of university graduate and undergraduate information
   security programs.'' The National Plan calls for the creation of ``. . .
   a Scholarship for Service Program to recruit and educate the next       
   generation of Federal information technology workers and security       
   managers.'' According to the National Plan: ``. . . an important part of
   this program is the need to identify universities for participation in  
   the program and assist in the development of information security       
   faculty and laboratories at these universities.''                       
      The committee believes that the Secretary of Defense should work with
   selected universities to develop cyber security curricula that respond  
   to the needs of the DOD. The committee believes that, initially, the    
   Secretary should focus on establishing cyber security programs at two or
   three institutions of higher education. Such universities should become 
   important sources of recruitment for satisfying the Department's        
   information assurance personnel requirements. Although the committee    
   believes that all qualified universities should be evaluated, it also   
   believes that the universities already identified by the National       
   Security Agency as information assurance centers of excellence should be
   leading candidates for involvement in the Information Security          
   Scholarship Program. In order for universities to develop the requisite 
   curricula and faculty, the DOD should also involve such universities in 
   research relevant to the Department's information assurance needs. Once 
   the Information Security Scholarship Program has been established at two
   or three institutions of higher education, the committee urges the      
   Secretary to expand and adequately fund the program to satisfy the      
   personnel needs of the DOD.                                             
      The committee recommends an increase of $20.0 million in Operations  
   and Maintenance, Defense-Wide, for establishment and initial operation  
   of the Information Security Scholarship Program. The committee directs  
   the Secretary of Defense to provide a report to the congressional       
   defense committees not later than April 1, 2001, describing the         
   Secretary's plans for implementing this program.                        
      The committee is also concerned that existing military and civilian  
   education and training programs of the DOD and the military departments 
   are not sufficiently focused on the problem of computer security and    
   information assurance. Therefore, the committee directs the Secretary of
   Defense to review the education and training programs of the defense    
   agencies and the military departments to determine the requirements for 
   personnel qualified in the area of information technology security and  
   what education and training programs are available in the area of       
   information technology security. In addition to the review of programs  
   for enlisted and officer personnel, this examination should include a   
   review of the Reserve Officers Training Corps scholarship program in    
   each service to determine whether scholarships leading to degrees in the
   information technology security area are sufficient to meet the         
   projected officer needs of the military departments and the Department  
   of Defense. The review shall include education and training programs,   
   including internships, for civilian employees as well. Finally, the     
   review shall evaluate the adequacy of cyber security programs at the    
   military service academies. The Secretary of Defense shall report the   
   results of his review to the congressional defense committees by April  
   1, 2001, in conjunction with the Secretary's report on the Information  
   Security Scholarship Program.                                           
                       Process for prioritizing background investigations for      
           security clearances for Department of Defense personnel (sec. 1043)     

      The committee is concerned by delays in the background investigation 
   process for granting security clearances to Department of Defense (DOD) 
   personnel and contractors. The Defense Security Service (DSS) has       
   experienced significant delays in processing requests for security      
   investigations, which has resulted in a large backlog of overdue        
   reinvestigations. This situation has imposed significant costs on DOD   
   and its contractors and has delayed important programs. The committee   
   supports the recommendations of the DOD Inspector General, outlined in  
   the April 5, 2000, audit report (Report Number D 2000 111), which       
   recommends that DOD implement a process for prioritizing security       
   clearance investigations as a way of expediting the most important      
   clearances. Therefore, the committee recommends a provision that would  
   require the Secretary of Defense to establish a process for expediting  
   the completion of background investigations. This process shall include:
   (1) quantification of the requirements for background investigations;   
   (2) categorization of personnel on the basis of the degree of           
   sensitivity of their duties and the extent to which those duties are    
   critical to the national security; and (3) prioritization of the        
   processing of investigations on the basis of the categories of          
   personnel.                                                              
                       Authority to withhold certain sensitive information from    
           public disclosure (sec. 1044)                                           
      The committee recommends a provision that would protect from         
   unauthorized disclosure two categories of sensitive unclassified        
   information. Many allied and other friendly nations, and some           
   international organizations, have a category of unclassified information
   that is subject to certain special controls and protected from release  
   outside the government or organization. In addition, many governments   
   have a category of classified information, ``restricted'', that is not  
   used by the United States. ``Restricted'' information is normally       
   provided at a level of protection less than that protection afforded to 
   ``confidential'' in the U.S. classification system.                     
      Information falling into one of these categories is frequently       
   provided to the United States by foreign governments or international   
   organizations under the condition that it be protected from unauthorized
   release. Under the present U.S. system, the only way that the United    
   States can do so is to classify the information in the interests of     
   national security under Executive Order 12958. This requires that the   
   security requirements for classified information apply, including       
   security clearances, safes, and precautions in transmission. This       
   situation frequently imposes unnecessary costs and has caused problems  
   for cooperative defense programs.                                       
      This provision would authorize the Secretary of Defense, the         
   Secretary of Transportation (with respect to the Coast Guard when not   
   operating in the Navy), and the Secretary of Energy (with respect to    
   that Department's national security programs) to withhold from public   
   disclosure otherwise authorized by law sensitive information provided by
   a foreign government or an international organization which is itself   
   protecting the information from disclosure. The information must be the 
   subject of a written request from the government or organization that it
   be withheld, or have been provided on the condition that it be withheld,
   or fall within a category specified in regulations as being information 
   the release of which would have an adverse effect on the ability of the 
   United States to obtain similar information in the future. If the       
   secretary of the department having the information transfers it to      
   another agency, that agency shall withhold it from disclosure unless    
   specifically authorized by the secretary of the department transferring 
   it. The prohibition on disclosure will normally extend for the period   
   specified by the country or organization providing the information, or  
   for ten years if no period is so stated. The ten-year rule may be       
   extended at the written request of the entity providing the information,
   as may the 25 year period applicable to certain information obtained by 
   the United States prior to the enactment of this provision.             
      This provision does not authorize the withholding of information from
   Congress, or (except in the case of foreign intelligence or             
   counterintelligence activities) the Comptroller General. The Secretary  
   of Defense, the Secretary of Transportation, and the Secretary of Energy
   are to prescribe regulations to carry out this provision.               
                       Protection of operational files of the Defense Intelligence 
           Agency (sec. 1045)                                                      
      The committee recommends a provision that would authorize the        
   Secretary of Defense to withhold from public disclosure the operational 
   files of the Defense Intelligence Agency. These files would be protected
   from disclosure, under the Freedom of Information Act or otherwise, to  
   the same extent as provided for under section 701 of the National       
   Security Act of 1947 (50 U.S.C 431). The provision also makes applicable
   to these files the decennial review provisions of section 702 of that   
   Act (50 U.S.C. 432), with the Secretary of Defense exercising the       
   authority granted to the Director of Central Intelligence in that       
   section.                                                                
                                  SUBTITLE F--OTHER MATTERS                       


                       Commemoration of the fiftieth anniversary of the Uniform    
           Code of Military Justice (sec. 1051)                                    
      The committee recommends a provision that would request the President
   to issue a proclamation commemorating the fiftieth anniversary of the   
   Uniform Code of Military Justice, which was enacted May 5, 1950, and    
   call upon the Department of Defense, the armed forces, and the United   
   States Court of Appeals for the Armed Forces to commemorate the occasion
   in a suitable manner.                                                   
                       Eligibility of dependents of American Red Cross employees   
           for enrollment in Department of Defense Domestic Dependent Schools in   
           Puerto Rico (sec. 1053)                                                 
      The committee recommends a provision that would authorize the        
   Secretary of Defense to permit dependents of American Red Cross         
   employees performing Armed Forces Emergency Services duties in Puerto   
   Rico to enroll in Department of Defense Domestic Dependent Schools. The 
   recommended provision would require that the Department of Defense be   
   reimbursed for the education services.                                  
                       Grants to American Red Cross for Armed Services Emergency   
           Services (sec. 1054)                                                    
      The committee recommends a provision that would authorize the        
   Secretary of Defense to provide a grant to the American Red Cross up to 
   $9,400,000 in each of fiscal years 2001, 2002, and 2003 in support of   
   the American Red Cross. The recommended provision would provide that a  
   grant may not be made until the American Red Cross certifies that it    
   will expend, for the Armed Forces Emergency Services, an amount from    
   non-federal sources that equals or exceeds the amount of the grant.     
                       Transit pass program for certain Department of Defense      
           personnel (sec. 1055)                                                   
      The committee recommends a provision that would require the Secretary
   of Defense to provide Department of Defense personnel with a transit    
   pass benefit if they are assigned in areas that do not meet the revised 
   national ambient air quality standards under section 109 of the Clean   
   Air Act and they use means other than a single-occupancy vehicle to     
   commute to or from work.                                                
            Fees for providing historical information to the public (sec. 1056)    

      The committee recommends a provision that would authorize the        
   secretaries of the military departments to charge the public fees for   
   providing historical information from the services' historical centers  
   or agencies. These fees could be retained by the military departments to
   defray the costs of responding to requests for information. The fees    
   charged for providing information pursuant to this section may not      
   exceed the costs of providing the information. These fees would not     
   apply to requests from members of the armed forces or federal employees 
   which are made in the course of their official duties, or to requests   
   made under the Freedom of Information Act (5 U.S.C. 552).               
                       Access to criminal history record information for national  
           security purposes (sec. 1057)                                           
      The committee recommends a provision that would amend section 9101 of
   title 5, United States Code, to provide expanded access to criminal     
   history information by the Department of Defense and certain other      
   executive departments and agencies to better evaluate employees and     
   contractors with regard to fitness for assignment or employment. Current
   law provides access to such information only for security clearances or 
   assignment to sensitive national security duties. This provision would  
   expand that authority to cover also acceptance or retention in the armed
   forces, and appointment, retention, or assignment to a position of      
   public trust or a critical or sensitive position either while employed  
   by the Federal Government or as a federal contractor employee. This     
   provision would also authorize the Federal Government to obtain such    
   information through the use of common identifiers, such as names or     
   Social Security numbers, rather than the cumbersome submission of paper 
   fingerprint cards, as required under existing law. It would further     
   prohibit states and localities from conditioning the provision of such  
   information on indemnification agreements, thereby clearing up a problem
   that has existed since 1989, when the Defense Department's authority to 
   enter into such agreements expired. Finally, it would allow access to   
   such information by the most efficient, technologically-advanced means, 
   from any point within or without a particular state or other            
   jurisdiction, and provide for the payment of reasonable fees therefor.  
                       Sense of Congress on the naming of the CVN 77 aircraft      
           carrier. (sec. 1058)                                                    
      The committee recommends a provision that would express the sense of 
   Congress that it is appropriate to recommend to the President, as       
   Commander in Chief of the armed forces, that an                         

                    appropriate name for the final Nimitz-class aircraft carrier, 
          CVN 77, is the U.S.S. Lexington.                                        
      The provision also expresses the sense of Congress that CVN 77 should
   be named U.S.S. Lexington in order to honor the 16 million veterans of  
   the armed forces that served during World War II, and the incalculable  
   number of U.S. citizens on the home front during that war, who mobilized
   in the name of freedom, and who are today respectfully referred to as   
   the greatest generation.                                                
            Donation of civil war cannon (sec. 1059)                               

      The committee recommends a provision that would convey all right,    
   title and interest of the United States to a Civil War era cannon to the
   Edward Dorr Tracey, Jr. Camp 18 of the Sons of the Confederate Veterans.
   This cannon was manufactured by the Confederate States Arsenal at Macon,
   Georgia. The cannon, on loan from the Army, is currently on public      
   display in Macon, Georgia.                                              
                       Maximum size of parcel posts transported overseas for Armed 
           Forces Post Offices (sec. 1060)                                         
      The committee recommends a provision that would increase the         
   authorized size of packages permitted to be mailed to eligible patrons  
   of military post offices overseas to conform with those of the United   
   States Postal Services.                                                 
                                   OTHER ITEMS OF INTEREST                        

            Department of Defense export control procedures                        

      The committee is encouraged by the Department of Defense's focus on  
   improving the performance of its export control responsibilities and    
   supports efforts to increase the effectiveness and efficiency of the    
   defense export licensing system. National security concerns must always 
   remain paramount over commercial concerns in this area. At the same     
   time, where appropriate, the United States should not place unnecessary 
   restraints on the ability of the private sector to compete in the global
   marketplace.                                                            
      The Defense Department has undertaken an internal review of its      
   practices for processing and scrutinizing export licence applications   
   with an aim toward reducing the time it takes to review licences. The   
   committee supports this effort and encourages the Department to work    
   with the State Department to achieve a system that protects national    
   security, and at the same time does not unnecessarily penalize U.S.     
   industry.                                                               
      The committee also supports the Department's efforts to modernize    
   computer systems for licensing agencies. This computer modernization is 
   important to ensure that the Defense Threat Reduction Agency and the    
   State Department's Office of Defense Trade Controls can move, over time,
   to an all-electronic system. This effort will provide more efficient and
   comprehensive review of the national security impact of proposed export 
   transactions while providing exporters with a more transparent and      
   timely process.                                                         
            Firefighting equipment                                                 

      An important element of the chemical weapons demilitarization program
   is ensuring that the local cities and towns within the vicinity of      
   destruction facilities receive the necessary education, training, and   
   equipment to ensure community safety in the unlikely event of an        
   accident during the destruction process. The Department of the Army has 
   equipped the Umatilla Army Chemical Depot with firefighting vehicles,   
   including an Emergency One Cyclone II Custom Pumper, for this purpose.  
   To ensure the Umatilla community has continued and unhindered access to 
   the Emergency One Cyclone II Custom Pumper, the Department of the Army  
   is working with the Confederated Tribes of the Umatilla Indian          
   Reservation to convey the firefighting vehicle to the community. The    
   committee supports this initiative and urges the Department of the Army 
   to transfer the vehicle to the Confederated Tribes of the Umatilla      
   Indian Tribes as soon as possible.                                      
            Peacekeeper intercontinental ballistic missile                         

      Section 1302 of the National Defense Authorization Act for Fiscal    
   Year 1998, as amended by section 1501 of the National Defense           
   Authorization Act for Fiscal Year 2000, prohibits the use of funds for  
   retiring or dismantling, or preparing to retire or dismantle specified  
   strategic nuclear delivery systems, including the Peacekeeper           
   intercontinental ballistic missile, until the START II Treaty enters    
   into force. Although the START II Treaty has been approved by the       
   Russian Duma, it has not yet entered into force. Nevertheless, the      
   committee recognizes that the Air Force must take certain steps to be in
   a position to be able to retire the Peacekeeper system if the START II  
   Treaty, and associated protocols, enter into force. Specifically, the   
   committee understands that the Air Force would need to acquire warhead  
   containers and missile stage storage end rings in the near future if the
   Air Force is to retain the ability to deactivate the Peacekeeper weapon 
   system by December 31, 2003, and eliminate the associated silos by      
   December 31, 2007. Since the committee has long supported entry into    
   force of the START II Treaty, the committee believes that the           
   acquisition of such equipment is consistent with the current prohibition
   on preparing to retire or dismantle the Peacekeeper weapon system.      
   Therefore, funds available to the Air Force from within existing        
   appropriations are authorized to be utilized for the acquisition of     
   Peacekeeper warhead containers and missile stage storage end rings.     

                  TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY       

            Computer/electronic accommodations program (sec. 1101)                 

      The committee recommends a provision that would authorize the        
   Secretary of Defense to expand the Computer/Electronic Accommodations   
   Program to provide assistive technology, assistive technology devices,  
   and assistive technology services to any department or agency of the    
   Federal Government. The recommended provision limits the cost of the    
   assistance provided to not more than $2.0 million in any fiscal year.   
                       Additional special pay for foreign language proficiency     
           beneficial for United States national security interests (sec. 1102)    
      The committee recommends a provision that would authorize the        
   Secretary of Defense to provide additional pay for civilian employees   
   who maintain a foreign language proficiency determined to be beneficial 
   for national security interests.                                        
                       Increased number of positions authorized for the defense    
           intelligence senior executive service (sec. 1103)                       
      The committee recommends a provision that would increase, by 25, the 
   number of positions authorized for the defense intelligence senior      
   executive service. The committee is concerned by recent reports that the
   National Imagery and Mapping Agency (NIMA) and the National Security    
   Agency (NSA) are experiencing significant problems in the area of       
   acquisition and acquisition oversight. Both agencies are seeking to     
   strengthen their acquisition management and need to be able to attract  
   skilled people. The committee expects that the recommended provision    
   would help NIMA and NSA attract such individuals. The committee directs 
   that the additional 25 positions established by the provision would be  
   used by NIMA and NSA only to address acquisition-related deficiencies.  
                       Extension of authority for tuition reimbursement and        
           training for acquisition personnel in shortage categories (sec. 1104)   
      The committee recommends a provision that would extend the           
   termination date of the authority for tuition reimbursement and training
   for acquisition personnel in shortage categories from September 30, 2001
   to September 30, 2010.                                                  
            Work safety demonstration program (sec. 1105)                          

      The committee recommends a provision that would direct the Secretary 
   of Defense to conduct a work safety demonstration program in which      
   private sector work safety models would be used to determine whether the
   work safety record of Department of Defense civilian employees can be   
   improved. The demonstration program would begin within 180 days of      
   enactment of the Act and end on September 30, 2002. The Secretary of    
   Defense would be required to submit an interim report not later than    
   December 1, 2001 and a final report not later than December 1, 2002, to 
   the Committees on Armed Services of the Senate and the House of         
   Representatives.                                                        
                       Employment and compensation of employees for temporary      
           organizations established by law or executive order (sec. 1106)         
      The committee recommends a provision that would authorize the heads  
   of federal agencies the flexibility to hire and pay individuals under a 
   streamlined process to work in temporary organizations, commissions,    
   boards, etc. that have been established for a period not to exceed three
   years. The recommended provision would permit federal agencies to hire  
   temporary employees in a timely manner so they can meet the deadlines   
   imposed by the President or Congress. The recommended provision would   
   permit the temporary employees to receive life and health insurance     
   benefits for the duration of their employment. Employees transferred to 
   a temporary position from a career civil service position would have    
   return rights to their former positions at the end of their employment  
   with the temporary organization.                                        
                       Extension of authority for voluntary separations in         
           reductions in force (sec. 1107)                                         
      The committee recommends a provision that would extend, from         
   September 30, 2001 to September 30, 2005, the temporary authority that  
   would permit civilian employees to volunteer for reductions-in-force.   
            Electronic maintenance of performance appraisal systems (sec. 1108)    

      The committee recommends a provision that would authorize the head of
   an executive branch agency to administer and maintain the performance   
   appraisal system electronically.                                        

            Approval authority for cash awards in excess of $10,000 (sec. 1109)    

      The committee recommends a provision that would authorize the        
   Secretary of Defense to grant a cash award up to the maximum of $25,000 
   without seeking approval from the Office of Personnel Management.       
            Leave for crews of certain vessels (sec. 1110)                         

      The committee recommends a provision that would authorize the        
   Military Sealift Command to pay civil service mariners, in an extended  
   leave status, a lump-sum equal to the difference between their pay at a 
   temporary promotion rate and their lower permanent grade rates.         
                       Life insurance for emergency essential Department of Defense
           employees (sec. 1111)                                                   
      The committee recommends a provision that would authorize civilian   
   employees designated by the Secretary of Defense as emergency essential 
   and subject to being deployed to combat areas to elect to participate in
   the Federal Employees' Group Life Insurance program.                    
                       Civilian personnel services public-private competition pilot
           program (sec. 1112)                                                     
      The committee recommends a provision that would require the Secretary
   of Defense to establish a public-private competition pilot program to   
   assess the extent to which the effectiveness and efficiency of providing
   civilian personnel services could be increased by conducting            
   competitions for the performance of such services between the public and
   private sectors. The recommended provision would require that the pilot 
   program be conducted during the period beginning on October 1, 2000 and 
   ending on December 31, 2004. The Secretary of Defense would be required 
   to submit, not later than February 1, 2005, a report that would assess  
   the value of the pilot program and make recommendations for permanent   
   authority to the Committees on Armed Services of the Senate and the     
   House of Representatives.                                               
                       Extension, expansion, and revision of authority for         
           experimental personnel program for scientific and technical personnel   
           (sec. 1113)                                                             
      The committee recommends a provision to extend, expand, and revise   
   the authority for the experimental personnel program for scientific and 
   technical personnel established pursuant to section 1101 of the Strom   
   Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public
   Law 105 261). Section 1101 authorized the Secretary of Defense to       
   appoint up to 20 eminent experts in science and engineering to temporary
   employment positions within the Defense Advanced Research Projects      
   Agency (DARPA) without regard to existing civil service laws concerning 
   appointment and compensation.                                           
      The committee recognizes that DARPA expects to fill all 20 authorized
   positions in the near future and would benefit greatly from the         
   expansion of the program. The committee is also aware that the defense  
   laboratories would benefit from similar access to capable scientists and
   engineers from outside the civil service. For these reasons, the        
   provision recommended by the committee would increase the number of     
   positions authorized for DARPA from 20 to 40 and expand the program to  
   the defense laboratories, authorizing an additional 40 positions for    
   each of the military services and a total of ten additional positions   
   for the National Imagery and Mapping Agency (NIMA) and National Security
   Agency (NSA). The provision would extend the program for an additional  
   two years and clarify that the maximum pay authorized under the         
   provision is intended to include locality pay adjustments.              

                        TITLE XII--MATTERS RELATING TO OTHER NATIONS              

            Transfers of naval vessels to foreign countries (sec. 1201)            

      The committee recommends a provision that would transfer to various  
   countries: on a combined lease-sale basis, four Kidd-class destroyers;  
   on a grant basis, two Thomaston-class dock landing ships; on a grant    
   basis, four Garcia-class frigates; on a combined lease-sale basis, two  
   Oliver Hazard Perry-class frigates; on a grant basis, one Dixie-class   
   destroyer tender; on a grant basis, two Knox-class frigates; and, on a  
   combined lease-sale basis, two Oliver Hazard Perry-class frigates. The  
   Chief of Naval Operations has certified, pursuant to statutory          
   requirement, that such naval vessels are not essential to the defense of
   the United States. Any expense incurred by the United States in         
   connection with these transfers would be charged to the recipient. The  
   provision would also:                                                   
       (1) direct that, to the maximum extent possible, the Secretary of   
   the Navy shall require, as a condition of transfer, that repair and     
   refurbishment associated with the transfer be accomplished in a shipyard
   located in the United States; and                                       
       (2) stipulate that the authority to transfer these vessels will     
   expire at the end of a two-year period that begins on the date of       
   enactment of the National Defense Authorization Act for Fiscal Year     
   2001.                                                                   
                       Support of United Nations-sponsored efforts to inspect and  
           monitor Iraqi weapons activities (sec. 1202)                            
      The committee recommends a provision that extends, for one year, the 
   Department of Defense's authority to support United Nations             
   (UN)-sponsored inspection and monitoring efforts to ensure full Iraqi   
   compliance with its international obligations to destroy its weapons of 
   mass destruction and associated delivery systems. The committee is      
   troubled by Iraq's long-standing suspension of UN inspection and        
   monitoring missions, and continued defiance of UN Security Council      
   efforts to resume weapons inspections. Despite the December 17, 1999    
   adoption by the UN Security Council of Resolution 1284, which           
   established the United Nations Monitoring, Verification and Inspection  
   Commission (UNMOVIC) as the successor to the United Nations Special     
   Commission on Iraq (UNSCOM), Iraq refuses to comply with this resolution
   and allow inspectors to resume operations in Iraq. The committee        
   continues to believe that it is imperative that inspections of Iraq     
   weapons sites resume as soon as possible to ensure Iraqi compliance with
   the disarmament obligations it accepted in 1991 at the end of the       
   Persian Gulf conflict.                                                  
                       Repeal of restriction preventing cooperative airlift support
           through acquisition and cross servicing agreements (sec. 1203)          
      The committee recommends a provision to eliminate the restriction in 
   section 2350c of title 10, United States Code, that allows the Secretary
   of Defense to enter into military airlift agreements with allied        
   countries only under the authority of section 2350c. This provision     
   would clear up any ambiguity regarding the Secretary's authority to     
   include airlift in cross servicing agreements for ``. . . logistics     
   support, supplies, and services . . .'' under the authority of section  
   2342, title 10, United States Code.                                     
                       Western Hemisphere Institute for Professional Education and 
           Training (sec. 1204)                                                    
      The U.S. Army School of the Americas has been subjected to a great   
   deal of controversy, mainly for the actions of a relatively small number
   of individuals who were graduated from the school many years ago. The   
   committee is aware that the school's curricula has undergone significant
   positive changes in recent years. The committee believes that there     
   continues to be a need for an institution that would provide            
   professional education and training for the military, law enforcement   
   and civilian (governmental and non-governmental) personnel of the       
   Western Hemisphere.                                                     
      The committee recommends a provision that would repeal the statute   
   authorizing the Army to operate the U.S. Army School of the Americas and
   would authorize the Secretary of Defense to operate a Western Hemisphere
   Institute for Professional Education and Training. The institute would  
   be operated for the purpose of providing professional education and     
   training to military, law enforcement and civilian personnel of the     
   Western Hemisphere in areas such as leadership development, counterdrug 
   operations, peace support operations, and disaster relief. The curricula
   of the institution would include, at a minimum, eight hours of          
   instruction relating to human rights, the rule of law, due process,     
   civilian control of the military, and the role of the military in a     
   democratic society. There would be a board of visitors, including four  
   members of Congress and six members from academia, the religious        
   community, and the human rights community, to review the institute's    
   curricula and instruction. The board would submit an annual report to   
   the Secretary of Defense. The selection of foreign personnel to attend  
   the institute would be subject to the concurrence of the Secretary of   
   State. The Secretary of Defense would submit an annual report to        

                    Congress detailing the activities of the institute during the 
          previous calendar year.                                                 
            Biannual report on Kosovo peacekeeping (sec. 1205)                     

      The committee recommends a provision that would require a biannual   
   report from the President on the contributions of European nations and  
   organizations to the peacekeeping operations in Kosovo. Specifically,   
   each report shall include detailed information on the commitments and   
   pledges made by the European Commission, the member nations of the      
   European Union (EU) and the European member nations of the North        
   Atlantic Treaty Organization (NATO) for reconstruction assistance in    
   Kosovo, humanitarian assistance in Kosovo, the Kosovo Consolidated      
   Budget, police (including special police) for the United Nations (UN)   
   international police force for Kosovo, and military personnel for       
   peacekeeping operations in Kosovo; the amount of assistance that has    
   been provided in each category, and the number of police and military   
   personnel deployed to Kosovo by each such nation or organization. In    
   addition, each report shall include a description of the full range of  
   commitments and responsibilities undertaken for Kosovo by the UN, the EU
   and the Organization for Security and Cooperation in Europe (OSCE), the 
   progress made by each in fulfilling those commitments and               
   responsibilities, an assessment of the remaining tasks and an           
   anticipated timetable for completing those tasks. The first report is to
   be provided to the relevant congressional committees on December 1,     
   2000.                                                                   
      The committee is concerned with the slow pace of the civil           
   implementation effort in Kosovo and, in particular, with the            
   unsatisfactory progress on the part of European nations and             
   organizations to provide, in a timely manner, the assistance and        
   personnel they have pledged to Kosovo. The committee notes that the     
   United States bore the major share of the military burden for the air   
   war on behalf of Kosovo; in return, European nations agreed to pay the  
   major share of the burdens to secure the peace. Although European       
   nations and organizations have pledged billions of dollars and thousands
   of personnel for this goal, only a fraction of the assistance has been  
   provided to Kosovo. As a result, U.S. troops, and troops of other       
   nations, serving in Kosovo are performing non-military missions--such as
   basic police functions--to make up for the shortfalls on the civilian   
   side. These are missions for which military personnel were not          
   specifically trained and which increase their personal risk. The        
   committee believes that more must be done by the international          
   organizations that have accepted the responsibilities for the civil     
   implementation efforts in Kosovo, and by the European nations that have 
   committed to provide a major portion of the assistance, to ensure that  
   the economic and security infrastructure is put in place in Kosovo to   
   avoid an open-ended U.S. military commitment in Kosovo.                 
      The report required by this provision will provide the Congress with 
   the data necessary to evaluate the performance of the organizations and 
   nations covered by this provision in fulfilling their commitments       
   regarding Kosovo.                                                       
                       Mutual assistance for monitoring test explosions of nuclear 
           devices (sec. 1206)                                                     
      The committee recommends a provision that would provide authority to 
   the Secretary of Defense to remedy problems that may arise with respect 
   to the installation of nuclear test explosion monitoring equipment as   
   part of the International Monitoring System (IMS) of the Comprehensive  
   Nuclear Test Ban Treaty or as part of the United States Atomic Energy   
   Detection System. Without this provision, the Department of Defense     
   would be prohibited from accepting funds directly from an international 
   organization to establish, operate, or maintain IMS equipment, owned by 
   the U.S. Government, and to maintain equipment that is not the property 
   of the U.S. Government.                                                 
                       Consolidated annual report on Cooperative Threat Reduction  
           assistance and activities (sec. 1207)                                   
      The committee recommends a provision that would consolidate the      
   information found in several Cooperative Threat Reduction reports into  
   one annual report, thereby reducing the number of reports the committee 
   receives each year, but maintaining the information the committee       
   values. This new, consolidated annual report would be due no later than 
   the first Monday in February, with the first report due in February     
   2002.                                                                   
                       Limitation on use of funds for construction of a Russian    
           facility for the destruction of chemical weapons (sec. 1208)            
      The budget request included $35.0 million for construction activities
   for the Shchuch'ye Chemical Weapons Destruction Facility in Russia as   
   part of the Cooperative Threat Reduction (CTR) Program. While the       
   committee recommends the requested amount, the committee has concerns   
   about the construction of this facility. The committee believes that    
   there may be higher priority CTR efforts to reduce the threat posed by  
   chemical weapons in Russia that will provide a greater security return  
   on investment, such as security improvements and maintenance for the    
   seven Russian chemical weapons storage sites, completion and maintenance
   of the CTR-funded mobile central analytical laboratory, and expansion of
   the chemical weapons production facility destruction efforts at         
   Volgograd and Novocheboksark.                                           

      However, after reviewing the administration's concerns regarding the 
   threats posed by the nerve agent stockpile at Shchuch'ye, the committee 
   recommends a provision that would provide conditional authority for the 
   administration to proceed with the construction of this facility.       
   Specifically, the provision provides that prior to obligating or        
   expending fiscal year 2000 funds, or any funds in subsequent fiscal     
   years, the Secretary of Defense must provide in writing to both the     
   House and Senate Armed Services Committees a certification that: (1) the
   government of the Russian Federation has annually agreed to provide at  
   least $25.0 million for the construction support and operation of that  
   facility to destroy chemical weapons and for the support and maintenance
   of the facility for that purpose for each year of the entire operating  
   life-cycle of the facility; (2) the government of the Russian Federation
   has agreed to utilize the facility to destroy the remaining four        
   stockpiles of nerve agents located at Kisner, Pochep, Leonidovka, and   
   Maradykovsky; (3) the United States has obtained multiyear commitments  
   from governments of other countries to donate funds for the support of  
   essential social infrastructure projects in sufficient amounts to ensure
   that the projects are maintained during the entire operating life-cycle 
   of the facility; and (4) Russia has agreed to destroy its chemical      
   weapons production facilities at Volgograd and Novocheboksark.          
                       Limitation on the use of funds for the Elimination of       
           Weapons Grade Plutonium Program (sec. 1209)                             
      The request included $32.1 million for the Elimination of Weapons    
   Grade Plutonium Program as part of the Cooperative Threat Reduction     
   (CTR) Program. While the committee supports the request, the committee  
   is troubled by the Russian Federation's announcement in February 2000   
   that due to increasing costs, Russia wanted to change the approach      
   selected for converting its remaining three plutonium producing nuclear 
   reactors. Since that time, meetings between the United States and Russia
   have failed to determine the future direction of the this program.      
   Because of these circumstances, the committee is concerned that the     
   project will be unable to expend its budget request during the fiscal   
   year.                                                                   
      Therefore, the committee recommends a provision prohibiting the      
   obligation of more than 50 percent of the funds provided for this       
   program until 30 days after the Secretary of Defense reports to the     
   committee on an agreement between the U.S. Government and the Government
   of the Russia Federation regarding any new option selected for shutting 
   down or converting the three Russian plutonium producing reactors. Any  
   such agreement should include the new date on which such reactors will  
   stop producing weapons grade plutonium and the cost sharing arrangement 
   between the United States and Russia in undertaking activities under    
   such an agreement.                                                      

              TITLE XIII--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO   

            Navy activities on the island of Vieques, Puerto Rico (secs. 1301 1308)

      The committee remains concerned with the lack of live fire access to 
   the Naval training facility on the island of Vieques, Puerto Rico, and  
   the resultant negative consequences this has for Navy and Marine Corps  
   readiness. In testimony before the Senate Armed Services Committee, the 
   Chairman of the Joint Chiefs of Staff along with the Chief of Naval     
   Operations and the Commandant of the Marine Corps, stated that Vieques  
   provides integrated live-fire training ``critical to our readiness.''   
   The Secretary of the Navy also testified that ``* * * only by providing 
   this preparation can we fairly ask our service members to put their     
   lives at risk.'' The concern of these individuals was reinforced by     
   operational commanders, including the Commander of the Sixth Fleet of   
   the Navy, who stated that the loss of Vieques would ``cost American     
   lives.''                                                                
      The committee recognizes and appreciates the sacrifice that the      
   people of Vieques and other communities throughout America located near 
   military training installations have made over the years to ensure that 
   our military personnel are adequately prepared before being sent into   
   harm's way. The committee is concerned that as a result of the Navy's   
   failure to take those actions necessary to develop sound relations with 
   the people of Vieques, and the tragic accident which resulted in the    
   death of a civilian employee of the Navy, the future of such training is
   in jeopardy.                                                            
      Therefore, the committee includes a number of provisions that would  
   support the agreement reached between the Department of Defense and the 
   Government of Puerto Rico intended to restore relations between the     
   people of Vieques and the Navy, and provide for the continuation of live
   fire training on the island.                                            
      Specifically, subtitle 13 would authorize the expenditure of $40.0   
   million for infrastructure and other economic projects on the island of 
   Vieques, and require the President to conduct a referendum on Vieques to
   determine whether the people of Vieques approve or disapprove of the    
   continuation of Naval training on the island. The conservation zones on 
   the western side of the island, containing seven endangered and         
   threatened species, would be transferred to the Secretary of Interior to
   be administered as wildlife refuges.                                    
      If the people of Vieques approve the continuation of live fire       
   training, the subtitle would authorize an additional $50.0 million in   
   economic aid for the island residents.                                  
      If the people of Vieques do not approve the continuation of live fire
   training, the subtitle would require the Navy and Marine Corps to cease 
   all training operations on the island of Vieques by May 1, 2003; to     
   terminate any operations at Roosevelt Roads that are related to the use 
   of training ranges on Vieques; and the transfer of all conservation     
   zones on Navy property on the eastern side of the island of Vieques,    
   together with the live impact area and other Navy property on the       
   eastern side of the island, to the Secretary of the Interior until such 
   time as the Congress enacts subsequent legislation regarding the        
   disposition of that land.                                               
      If the Navy ceases operations on Vieques and reduces its presence on 
   Roosevelt Roads, the subtitle would place a moratorium on military      
   construction projects at Fort Buchanan, Puerto Rico, until such time as 
   it can be determined if the active military units at Fort Buchanan can  
   be consolidated on Roosevelt Roads with the remaining Naval units. The  
   Comptroller General of the United States will be required to conduct a  
   review of the continuing requirement for Fort Buchanan and provide the  
   congressional defense committees with a report outlining his            
   recommendations regarding the potential consolidation of active U.S.    
   Army units in Puerto Rico with the Navy at Roosevelt Roads.             

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                                       TITLE XXI--ARMY                            

                                           SUMMARY                                

      The Army requested authorization of $897,938,000 for military        
   construction and $1,140,381,000 for family housing for fiscal year 2001.
   The committee recommends authorization of $781,079,000 for military     
   construction and $1,176,670,000 for family housing for fiscal year 2001.
      The budget request included 10 military construction projects which  
   were authorized for appropriation by division B of the National Defense 
   Authorization Act for Fiscal Year 2000. Since these projects required no
   additional authorization, the committee did not authorize $168.5 million
   based on the prior year authorization. The committee also did not       
   authorize $18.0 million for the renovation of unaccompanied personnel   
   barracks at Kwajalein Atoll based on the fact that the majority of the  
   beneficiaries were not military personnel.                              
      The amounts authorized for military construction reflects a reduction
   of $20.5 million based on savings in the foreign currency account. The  
   reduction shall not cancel any military construction authorized by title
   XXI of this bill.                                                       
            Authorized Army construction and land acquisition projects (sec. 2101) 

      This section contains the list of authorized Army construction       
   projects for fiscal year 2001. The authorized amounts are listed on an  
   installation-by-installation basis. The state list contained in this    
   report is intended to be the binding list of the specific projects      
   authorized at each location.                                            
            Family housing (sec. 2102)                                             

      This section would authorize new construction and planning and design
   of family housing units for the Army for fiscal year 2001.              
            Improvement to military family housing units (sec. 2103)               

      This section would authorize improvements to existing family housing 
   units for fiscal year 2001.                                             
            Authorization of appropriations, Army (sec. 2104)                      

      This section would authorize specific appropriations for each line   
   item contained in the Army's budget for fiscal year 2001. This section  
   also provides an overall limit on the amount the Army may spend on      
   military construction projects.                                         
                       Modification of authority to carry out certain fiscal year  
           2000 projects (sec. 2105)                                               
      The committee recommends a provision that would amend section 2101(a)
   of the Military Construction Act for Fiscal Year 2000 (division B of    
   Public Law 106 65; 113 Stat. 825) to reduce the funding authorization   
   for Fort Stewart, Georgia, from $71.7 million to $25.7 million due to a 
   technical correction. The provision would also strike the funding       
   authorization for Fort Riley, Kansas, due to a technical correction. The
   provision would also increase the authorization of appropriations for   
   unspecified minor construction from $9.5 million to $14.6 million and   
   make certain conforming changes.                                        
                       Modification of authority to carry out certain fiscal year  
           1999 project (sec. 2106)                                                
      The committee recommends a provision that would amend section 2101(a)
   of the Military Construction Act for Fiscal Year 1999 (division B of    
   Public Law 105 261; 112 Stat. 2182) to increase the funding             
   authorization of a barracks project at Fort Riley, Kansas, from $41.0   
   million to $44.5 million and the Railhead Facility at Fort Hood, Texas, 
   from $32.5 million to $45.3 million. The provision would also make      
   certain technical corrections.                                          
                       Modification of authority to carry out fiscal year 1998     
           project (sec. 2107)                                                     
      The committee recommends a provision that would amend section 2101(a)
   of the Military Construction Act for Fiscal Year 1998 (division B of    
   Public Law 105 85; 111 Stat. 2185) to increase the funding authorization
   of a barracks project at Hunter Army Airfield, Fort Stewart, Georgia,   
   from $54.0 million to $57.5 million. The provision would also make      
   certain technical corrections.                                          
                       Authority to accept funds for realignment of certain        
           military construction project, Fort Campbell, Kentucky (sec. 2108)      
      The committee recommends a provision that would authorize the        
   Secretary of the Army to accept funds from the Federal Highway          
   Administration or the State of Kentucky to fund the additional costs    
   associated with the realignment of a rail connector military            
   construction at Fort Campbell, Kentucky, authorized in section 2101(a)  
   of the Military Construction                                            

                    Authorization Act for Fiscal Year 1997 (division B of Public  
          Law 104 210; 110 Stat. 2763). The provision would authorize the         
          Secretary to use the funds received under this authority in addition to 
          the funds authorized and appropriated for the rail connector project.   
          The provision would also specify that the costs associated with         
          realignment include, but are not limited to, redesign costs, additional 
          construction costs, additional costs due to construction delays related 
          to the realignment, and additional real estate costs.                   
                                   OTHER ITEMS OF INTEREST                        

                       Presidio Housing, Golden Gate National Recreation Area, San 
           Francisco, California                                                   
      The committee notes that base closures in the San Francisco Bay Area 
   have severely reduced the availability of government housing for        
   military families and that the lack of housing in proximity to the duty 
   stations of service personnel impacts on readiness and the quality of   
   life of uniform personnel. The committee further notes that the Army and
   the Presidio Trust have reached an interim accord on the use of 22      
   designated housing units at the Presidio through September 2005.        
   Although this agreement will mitigate the near-term housing crisis, it  
   only postpones a problem that must have a long-term solution. The       
   committee directs the Secretary of the Army and the Presidio Trust to   
   develop a long-term agreement on the use of the 22 units by military    
   families. The agreement should provide that the reimbursement for the   
   housing will be no more than the basic allowance for housing. The       
   Secretary shall report on the status of the negotiations to the         
   Committees on the Armed Services of the Senate and the House of         
   Representatives by March 15, 2001. The report shall include the issues  
   relating to the 22 houses, including the rank and grade of senior       
   occupant of each house, the position taken by the Presidio, the cost of 
   alternative housing, and the replacement value of the 22 houses.        

                                      TITLE XXII--NAVY                            

                                           SUMMARY                                

      The Navy requested authorization of $753,422,000 for military        
   construction and $1,245,460,000 for family housing for fiscal year 2001.
   The committee recommends authorization of $817,371,000 for military     
   construction and $1,268,441,000 for family housing for fiscal year 2001.
      The amounts authorized for military construction and family housing  
   reflect reductions of $3.9 million based on saving in the foreign       
   currency account, $5.3 million to be offset by prior year unobligated   
   funds. The reductions shall not cancel any military construction        
   authorized by title XXII of this bill.                                  
            Authorized Navy construction and land acquisition projects (sec. 2201) 

      This section contains the list of authorized Navy construction       
   projects for fiscal year 2001. The authorized amounts are listed on an  
   installation-by-installation basis. The state list contained in this    
   report is intended to be the binding list of the specific projects      
   authorized at each location.                                            
            Family housing (sec. 2202)                                             

      This section would authorize new construction and planning and design
   of family housing units for the Navy for fiscal year 2001.              
            Improvements to military family housing units (sec. 2203)              

      This section would authorize improvements to existing units of family
   housing for fiscal year 2001.                                           
            Authorization of appropriations, Navy (sec. 2204)                      

      This section would authorize specific appropriations for each line   
   item in the Navy's budget for fiscal year 2001. This section also       
   provides an overall limit on the amount the Navy may spend on military  
   construction projects.                                                  
                       Correction in authorized use of funds, Marine Corps Combat  
           Development Command, Quantico, Virginia (sec. 2205)                     
      The committee recommends a provision that would correct the          
   authorization of appropriations for fiscal year 1997 military           
   construction project at Marine Corps Combat Development Command,        
   Quantico, Virginia. The provision would permit the use of previously    
   authorized funds to carry out a military construction project involving 
   infrastructure development at that installation.                        

                                   TITLE XXIII--AIR FORCE                         

                                           SUMMARY                                


      The Air Force requested authorization of $530,969,000 for military   
   construction and $1,049,754,000 for family housing for fiscal year 2001.
   The committee recommends authorization of $763,491,000 for military     
   construction and $1,054,572,000 for family housing for fiscal year 2001.
      The amounts authorized for military construction and family housing  
   reflect reductions of $12.0 million based on savings in the foreign     
   currency account and $15.0 million to be offset by prior year           
   unobligated funds. The reductions shall not cancel any military         
   construction authorized by title XXIII of this bill.                    
                       Authorized Air Force construction and land acquisition      
           projects (sec. 2301)                                                    
      This section contains the list of authorized Air Force construction  
   projects for fiscal year 2001. The authorized amounts are listed on an  
   installation-by-installation basis. The state list contained in this    
   report is intended to be the binding list of the specific projects      
   authorized at each location.                                            
            Family housing (sec. 2302)                                             

      This section would authorize new construction and planning and design
   of family housing units for the Air Force for fiscal year 2001.         
            Improvements to military family housing units (sec. 2303)              

      This section would authorize improvements to existing units of family
   housing for fiscal year 2001.                                           
            Authorization of appropriations, Air Force (sec. 2304)                 

      This section would authorize specific appropriations for each line   
   item in the Air Force's budget for fiscal year 2001. This section also  
   would provide an overall limit on the amount the Air Force may spend on 
   military construction projects.                                         

                                TITLE XXIV--DEFENSE AGENCIES                      

                                           SUMMARY                                

      The Defense Agencies requested authorization of $784,753,000 for     
   military construction and $44,886,000 for family housing for fiscal year
   2001. The committee recommends authorization of $689,333,000 for        
   military construction and $44,886,000 for family housing or fiscal year 
   2001.                                                                   
      The committee recommends a reduction of $76.8 million for the        
   construction of forward operating locations in Ecuador and              
   Curacao/Aruba. The committee takes this action without prejudice and is 
   aware that the funds for these military construction projects will be   
   funded in a supplemental appropriations bill. The amounts authorized for
   military construction and family housing reflect a reduction of $7.1    
   million based on savings in the foreign currency account. The reduction 
   shall not cancel any military construction authorized by title XXIV of  
   this bill.                                                              
                       Authorized Defense Agencies construction and land           
           acquisition projects (sec. 2401)                                        
      This section contains the list of authorized Defense Agencies        
   construction projects for fiscal year 2001. The authorized amounts are  
   listed on an installation-by-installation basis. The state list         
   contained in this report is intended to be the binding list of the      
   specific projects authorized at each location.                          
            Energy conservation projects (sec. 2402)                               

      This section would authorize the Secretary of Defense to carry out   
   energy conservation projects.                                           
            Authorization of appropriations, Defense Agencies (sec. 2403)          

      This section would authorize specific appropriations for each line   
   item in the Defense Agencies budget for fiscal year 2001. This section  
   also would provide an overall limit on the amount the Defense Agencies  
   may spend on military construction projects.                            
                                   OTHER ITEMS OF INTEREST                        

                       Certification of requirement for military construction      
           projects, Manta Air Base, Ecuador                                       
      The budget request included $22.7 million for construction projects  
   at Manta Air Base, Ecuador. The number of projects and funding level is 
   based on the requirement that the facilities would support two E 3s, two
   KC 135s, three P 3s, three ARL, and one Senior Scout (C 130) missions   
   and accompanying personnel. The committee directs that funds available  
   for construction of large aerial surveillance aircraft related          
   facilities at Manta Air Base, Ecuador, not be obligated until the       
   Secretary of                                                            

                    Defense submits a report directed elsewhere in this bill on   
          the demonstration of the Global Hawk HAE UAV in airborne surveillance   
          role in the counter-drug effort.                                        
      The committee further directs that the construction of the visiting  
   officers quarters and visiting airmen quarters and dining facility not  
   be executed until the Secretary of Defense certifies that sufficient    
   aircraft are scheduled to operate out of the Manta Airfield on a routine
   basis to ensure the construction of these facilities is justified.      
            Planning and design, Defense Intelligence Agency                       

      The budget request included $6,786,000 for the planning and design   
   for Defense Intelligence Agency. The committee is aware of the urgent   
   need to consolidate and relocate the Defense Intelligence Agency        
   activities to a more secure location. The committee supports the        
   Department of Defense plans for a new Defense Intelligence Agency       
   Headquarters and directs the Secretary of Defense to expedite the       
   planning and design.                                                    

             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
                                           SUMMARY                                

      The Department of Defense requested authorization of $190,000,000 for
   the North Atlantic Treaty Organization (NATO) Security Investment       
   Program for fiscal year 2001. The committee recommends $190,000,000 for 
   fiscal year 2001.                                                       
            Authorized NATO construction and land acquisition projects (sec. 2501) 

      This section would authorize the Secretary of Defense to make        
   contributions to the North Atlantic Treaty Organization (NATO) Security 
   Investment Program in an amount equal to the sum of the amount          
   specifically authorized in section 2502 of this title and the amount of 
   recoupment due to the United States for construction previously financed
   by the United States.                                                   
            Authorization of appropriations, NATO (sec. 2502)                      

      This section would authorize appropriations of $190,000,000 for the  
   contribution of the United States to the North Atlantic Treaty          
   Organization (NATO) Security Investment Program.                        

                       TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES            

                                           SUMMARY                                

      The Department of Defense requested a military construction          
   authorization of $221,976,000 for fiscal year 2001 for National Guard   
   and Reserve facilities. The committee recommends authorization for      
   fiscal year 2001 of $506,696,000 to be distributed, as follows:         




          Army National Guard            $181,629,000



          Air National Guard             161,806,000



          Army Reserve                   92,497,000



          Air Force Reserve              32,673,000



          Naval and Marine Corps Reserve                38,091,000

                                                                            



                                         506,696,000


                       Authorized Guard and Reserve construction and land          
           acquisition projects (sec. 2601)                                        
      This section would authorize appropriations for military construction
   for the National Guard and Reserve by service component for fiscal year 
   2001. The state list contained in this report is intended to be the     
   binding list of the specific projects authorized at each location.      
                                   OTHER ITEMS OF INTEREST                        

            Support for Weapons of Mass Destruction Civil Support Teams            

      The committee included $25.0 million in the authorization of         
   appropriation for the Army National Guard military construction account 
   for the specific purpose of facilitating the activation of the Weapons  
   of Mass Destruction Civil Support Teams. Although these teams are to be 
   assigned to locations that have the facilities to accommodate their     
   needs, the committee understands that the Army National Guard has       
   identified a requirement of approximately $31.0 million for renovation  
   of the facilities to accommodate these teams. The committee is aware    
   that the military construction program for the reserve components is    
   underfunded and that this requirement would place an additional burden  
   on an already constrained Army National Guard military construction     
   program. The committee recommends this additional                       

                    funding be provided on a one time basis and directs the       
          Secretary of the Army to provide a report on the expenditure of these   
          funds not later than October 1, 2001.                                   

                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        

                       Expiration of authorizations and amounts required to be     
           specified by law (sec. 2701)                                            
      This section would provide that authorizations for military          
   construction projects, repair of real property, land acquisition, family
   housing projects and facilities, contributions to the North Atlantic    
   Treaty Organization infrastructure program, and National Guard and      
   Reserve projects will expire on October 1, 2003, or the date of         
   enactment of an Act authorizing funds for military construction for     
   fiscal year 2004, whichever is later. This expiration would not apply to
   authorizations for which appropriated funds have been obligated before  
   October 1, 2003, or the date of enactment of an Act authorizing funds   
   for these projects, whichever is later.                                 
                       Extensions of authorizations of certain fiscal year 1998    
           projects (sec. 2702)                                                    
      This section would provide for selected extension of certain fiscal  
   year 1998 military construction authorizations until October 1, 2001, or
   the date of the enactment of an Act authorizing funds for military      
   construction for fiscal year 2002, whichever is later.                  
                       Extensions of authorizations of certain fiscal year 1997    
           projects (sec. 2703)                                                    
      This section would provide for selected extension of certain fiscal  
   year 1997 military construction authorizations until October 1, 2001, or
   the date of the enactment of an Act authorizing funds for military      
   construction for fiscal year 2002, whichever is later.                  
            Effective date (sec. 2704)                                             

      This section would provide that titles XXI, XXII, XXIII, XXIV, and   
   XXVI of this bill shall take effect on October 1, 2000, or the date of  
   the enactment of this Act, whichever is later.                          

                              TITLE XXVIII--GENERAL PROVISIONS                    

           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                     CHANGES                                      
            Joint use military construction projects (sec. 2801)                   

      The committee recommends a provision that would express the sense of 
   Congress that the Secretary of Defense, when preparing the fiscal year  
   defense budget request, should identify military construction projects  
   suitable for joint use, specify in the budget request joint use military
   construction projects, and give priority to joint use military          
   construction projects. The provision would also direct the Secretary to 
   include in the budget request a certification by each secretary         
   concerned that the service screened each construction project in the    
   budget request for the feasibility for joint use. The provision would   
   further require the Secretary of Defense to submit, not later than      
   September 30 of each year, a report that included the number of military
   construction projects evaluated for joint use construction, when the    
   project could be executed, and a list of the military construction      
   projects determined to be feasible for joint use. The provision would   
   also make certain conforming changes.                                   
                       Exclusion of certain costs from determination of            
           applicability of limitation on use of funds for improvement of family   
           housing (sec. 2802)                                                     
      The committee recommends a provision that would amend section 2825   
   (b) of title 10, United States Code, to authorize the secretary         
   concerned to exclude certain costs from the counting against the        
   limitation for housing improvement. The specific costs that would be    
   excluded are the installation, maintenance and repair of communications,
   security or anti-terrorism equipment required by the occupant in the    
   performance of his duties. The provision would also exclude the cost of 
   repairing or replacing the exterior of the unit or units if such repair 
   or replacement is necessary to meet historic preservation standards.    
      The committee directs that whenever the secretary concerned exercises
   this authority, the secretary shall submit a report to the congressional
   defense committees and wait 30 days prior to executing any project for  
   which the exemptions apply. The report should include a description of  
   the project, its purpose, and cost.                                     
                       Replacement of limitations on space by pay grade of military
           family housing with requirement for local comparability of military     
           family housing (sec. 2803)                                              
      The committee recommends a provision that would amend section 2826 of
   title 10, United States Code, to eliminate the limitation on            
   space-by-grade requirement for family housing construction. The         
   provision would authorize the secretary concerned to construct family   
   housing units that are consistent with similar housing units constructed
   in the local area. The provision would also direct the secretary        
   concerned to include the net square area when requesting the            
   authorization for construction of military family housing units.        
      The committee expects the secretary concerned to continue reporting  
   as part of the military construction project data (DD1391) the net      
   square area of each type family housing unit proposed for construction. 
                       Modification of lease authority for high-cost military      
           family housing (sec. 2804)                                              
      The committee recommends a provision that would amend section 2828   
   (b)(4) of title 10, United States Code, to eliminate the $60,000 per    
   year cap on the lease of an individual housing unit and to authorize the
   Secretary of the Army to enter into leases for eight housing units in   
   the Miami area for no more than five years. The provision would further 
   amend section 2828 (b) to authorize the Secretary concerned to adjust   
   the maximum cost authorized for family housing leases based on the      
   percentage that the national average monthly cost of housing differ     
   during the two preceding fiscal years. The provision would authorize the
   Secretary of the Army to adjust the maximum amount of the eight family  
   housing unit leases in the Miami area by the percent the annual average 
   cost of housing for the Miami Military Housing Area exceeds the annual  
   average cost for the same region for the fiscal year preceding the      
   fiscal year.                                                            
                       Applicability of competitive policy to alternative authority
           for acquisition and improvement of military housing (sec. 2805)         
      The committee recommends a provision that would amend Subchapter IV  
   of chapter 169 of title 10, United States Code, to require that the     
   Secretary concerned use competitive procedures when exercising the      
   alternative authorities for the acquisition and improvement of military 
   housing. The Secretary concerned could waive competitive procedures if  
   he determines competition would be inconsistent with public interest and
   notifies the                                                            

                    Congress in writing of such determination not less than 30    
          days before entering the agreement.                                     
                       Provisions of utilities and services under alternative      
           authority for acquisition and improvement of military housing (sec.     
           2806)                                                                   
      The committee recommends a provision that would amend section 2872 of
   title 10, United States Code, to authorize the service secretaries to   
   provide utilities and services to privatized housing units located on a 
   military installation on a reimbursable basis. The payments received for
   such services would be credited to the appropriate account or working   
   capital fund from which the cost of furnishing the utilities and        
   services was paid.                                                      
                       Extension of alternative authority for acquisition and      
           improvement of military housing (sec. 2807)                             
      The committee recommends a provision that would amend section 2885 of
   title 10, United States Code, to extend the authority to enter a        
   contract for military housing privatization until February 10, 2004.    
                       Inclusion of readiness center in definition of armory for   
           purposes of construction of reserve components facilities (sec. 2808)   
      The committee recommends a provision that would amend section        
   18232(3) of title 10, United States Code, to equate the term Readiness  
   Center to the term Armory. The provision would also make certain        
   conforming changes.                                                     
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

                       Increase in threshold for reports to Congress on real       
           property transactions (sec. 2811)                                       
      The committee recommends a provision that would amend section 2662 of
   title 10, United States Code, to increase the reporting threshold to    
   congressional defense committees for real property transactions from    
   $200,000 to $500,000.                                                   
            Enhancements to military lease authority (sec. 2812)                   

      The committee recommends a provision that would amend section 2667 of
   title 10, United States Code, to authorize the secretary concerned to   
   lease facilities that are under the control of that department and that 
   are not excess to the needs of that department. The secretary concerned 
   would be authorized to accept as compensation for the leases, either    
   payment in-kind or cash. The provision would clarify that in-kind       
   consideration may be applied at any military installation and that it   
   may take the following forms: maintenance, protection, alteration,      
   repair, improvement, or restoration of any property; construction of new
   facilities for the department; provision of facilities for use by the   
   department; base operating support services; and other services related 
   to the activity that will occur on the leased property, as the secretary
   considers appropriate. In the instances where the payment in-kind       
   payment is the construction or provision of new facilities with a value 
   in excess of $500,000, the secretary would not be authorized to enter   
   the lease until 30 days after the date on which a report on the facts of
   the lease is submitted to the congressional defense committees. The     
   provision would further authorize the secretary concerned to use cash   
   proceeds from leases for maintenance, protection, alteration, repair,   
   improvements or restoration of property or facilities, construction or  
   acquisition of new facilities, lease facilities, and facilities support.
   At least 50 percent of the cash payment received would be available for 
   use only at the military installation at which the property is located. 
   The provision would authorize the secretary concerned to construct or   
   acquire facilities in excess of $500,000 only after he submits a report 
   on the facts of the construction or acquisition of such facilities to   
   the congressional defense committees and waits 30 days. The provision   
   would require the Secretary of Defense to submit, not later than March  
   15 of each year, a report to the congressional defense committees       
   providing an accounting of the rental receipts and a detailed           
   explanation of all leases and amendments to existing leases. The        
   provision would also authorize the secretary concerned to indemnify the 
   leasee from any claim for personal injury or property damage, that      
   results from the release of hazardous substance, pollutants or          
   contaminants, petroleum, or unexploded ordnance as a result of Defense  
   activities on the military installation at which the leased property is 
   located.                                                                
                       Expansion of procedures for selection of conveyees under    
           authority to convey utility systems (sec. 2813)                         
      The committee recommends a provision that would amend section 2688(b)
   of title 10, United States Code, to clarify that the secretary concerned
   may use procedures other than competitive procedures only under the     
   circumstances specified in section 2304 (c) through (f) of title 10,    
   United States Code.                                                     

      The committee believes that maximizing competition in the            
   privatization of utility systems within the Department of Defense is    
   essential to ensuring that the military receives the most efficient and 
   effective service and to ensuring taxpayers derive the maximum value    
   from the government's previous investment in these systems. However, the
   committee is concerned that the Department may be inadvertently creating
   barriers to competition. Specifically, the committee believes that the  
   Department may not be giving potential offerors enough time to respond  
   to its requests for proposals. This particularly affects the utilities  
   required to obtain permission from their regulators in order to form    
   teams or partnerships to respond to the Department's requirements.      
   Providing insufficient time for regulated entities, therefore, has the  
   effect of limiting competition. The Department should examine and adjust
   its existing timetables to ensure that potential competitors have       
   adequate time to respond. Additionally, the committee believes that the 
   Department's efforts to bundle systems or installations into a single   
   solicitation for a large region may exclude entities that are only      
   qualified to provide one type of service, or are limited to operating   
   within a specific geographical area. The committee believes the         
   Department should structure its solicitations in a way that allows      
   interested entities to bid on parts of that which is being offered, as  
   well as the entire package, thereby ensuring that all have a fair chance
   in the competition.                                                     
      While the committee supports the Department's competitive            
   privatization efforts, it believes that the Department must be mindful  
   of the impacts of these efforts upon public safety and the public       
   interest in assuming a safe and effective network of utility systems    
   among multiple users. The Department should take steps, either through  
   reliance upon existing public utility regulatory mechanisms or through  
   careful contract provisions and service oversight of privatization      
   contracts, to protect public interests both within and without base     
   installation boundaries. Further, the Department should consider the    
   cost of protecting these public interests in the decision to privatize. 
   Finally, the committee applauds the Department's efforts to work with   
   industry, in particular the two-day, Utility Privatization Industry     
   Forum. The committee directs the Department to build on that effort by  
   taking action to eliminate barriers to full competition.                
                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            

                       Scope of agreements to transfer property to redevelopment   
           authorities without consideration under the base closure laws (sec.     
           2821)                                                                   
      The committee recommends a provision that would amend section        
   2905(b)(4)(B)(i) of the Department of Defense Base Closure and          
   Realignment Act of 1990 (part A of title XXIX of Public Law 101 510; 10 
   U.S.C. 2687 note) and section 204(b)(4)(B)(i) of the Defense            
   Authorization Amendments and Base Closure Realignment Act (title II of  
   Public Law 100 526; 10 U.S.C. 2687 note) to clarify that the seven-year 
   period to account for the proceeds from any sale or lease of property   
   received by the redevelopment authority begins at the date of the       
   initial transfer of property.                                           
                                SUBTITLE D--LAND CONVEYANCES                      

                                  PART I--ARMY CONVEYANCES                        

                       Land conveyance, Charles Melvin Price Support Center,       
           Illinois (sec. 2831)                                                    
      The committee recommends a provision that would authorize the        
   Secretary of the Army to convey, as public benefit, if qualified, or at 
   fair market value, as determined by the Secretary, a parcel of real     
   property consisting of approximately 752 acres, including improvements  
   thereon, and known as the Charles Melvin Price Support Center to the    
   Tri-City Regional Port District of Granite City, Illinois, for the      
   development of a port facility and for other public purposes. The       
   property authorized for conveyance may include 158 military family      
   housing units, but only if the Port Authority agrees to accord priority 
   use to members of the armed services for the lease of the housing. The  
   Secretary may include personal property of the Army at the Charles      
   Melvin Price Support Center that the Secretary of Transportation        
   recommends is appropriate for the development or operation of the port  
   facility, and that the Secretary of the Army agrees is excess to the    
   needs of the Army. The provision would authorize the Secretary to       
   provide for an interim lease of the property to the Port District until 
   such time it is conveyed by deed. As compensation for the interim lease,
   the Secretary may accept payment in-kind at less than fair market value 
   if the Secretary determines that it is in the public interest.          
      The provision would also authorize the Secretary to retain part of   
   the parcel, not to exceed 50 acres, for the development of an Army      
   Reserve Center. When the Secretary determines the acreage is no longer  
   required, the Secretary shall transfer the acreage to the Port District.
   In determining the location of the                                      

                    Army Reserve Center, the Secretary shall consider its impact  
          on the Port District's use of the remainder of the property.            
      The provision would further authorize the Secretary of the Army to   
   require the Port District to lease to the Department of Defense or any  
   other Federal Agency facilities. Any lease under this authority shall be
   made under terms and conditions satisfactory to the Secretary and the   
   Port District. The agency leasing the facility shall provide for        
   maintenance of the facility, as required by all Federal, State, and     
   local laws and ordinances. At the end of the lease, the property would  
   revert to the Port Authority. As a further condition of conveyance, the 
   Port District would grant the Secretary of the Army an easement on the  
   property conveyed to permit the Secretary to implement and maintain     
   flood control projects. The Secretary shall be responsible for the      
   maintenance of any flood control project built on the easement.         
                       Land conveyance, Lieutenant General Malcolm Hay Army Reserve
           Center, Pittsburgh, Pennsylvania (sec. 2832)                            
      The committee recommends a provision that would authorize the        
   Secretary of the Army to convey, at fair market value, to the City of   
   Pittsburgh, Pennsylvania, a parcel of real property, including          
   improvements, located at 950 Saw Mill Run Boulevard in Pittsburgh,      
   Pennsylvania, and containing the Lieutenant General Malcolm Hay Army    
   Reserve Center. The exact acreage and legal description of the real     
   property would be determined by a survey satisfactory to the Secretary. 
   The cost of the survey would be borne by the City.                      
                       Land conveyance, Colonel Harold E. Steele Army Reserve      
           Center and Maintenance Shop, Pittsburgh, Pennsylvania (sec. 2833)       
      The committee recommends a provision that would authorize the        
   Secretary of the Army to convey, at fair market value, to the Ellis     
   School, Pittsburgh, Pennsylvania, a parcel of real property, including  
   improvements, located at 6482 Aurelia Street in Pittsburgh, Pennsylvania
   and containing the Colonel Harold E. Steele Army Reserve Center and     
   Maintenance Shop. The exact acreage and legal description of the real   
   property would be determined by a survey satisfactory to the Secretary. 
   The cost of the survey would be borne by the Ellis School.              
            Land conveyance, Fort Lawton, Washington (sec. 2834)                   

      The committee recommends a provision that would authorize the        
   Secretary of the Army to convey, without consideration, to the City of  
   Seattle, Washington, a parcel of real property at Fort Lawton,          
   Washington, consisting of Area 500 and Government Way from 36th Avenue  
   to Area 500. The purpose of the conveyance would be to include the      
   property in Discovery Park, Seattle, Washington.                        
            Land conveyance, Vancouver Barracks, Washington (sec. 2835)            

      The committee recommends a provision that would authorize the        
   Secretary of the Army to convey, without consideration, to the City of  
   Vancouver, Washington, a parcel of real property, including any         
   improvements, at Vancouver Barracks, Washington. The conveyance includes
   19 structures known as the west barracks. The purpose of the conveyance 
   would be to include the property as part of the Vancouver National      
   Historic Reserve.                                                       
                                  PART II--NAVY CONVEYANCES                       

                       Modification of land conveyance, Marine Corps Air Station,  
           El Toro, California (sec. 2851)                                         
      The committee recommends a provision that would amend section 2811 of
   the Military Construction Authorization Act for Fiscal Year 1990 and    
   1991 (division B of Public Law 101 189; 103 Stat. 1650). The provision  
   would change the authority to use the monetary consideration from       
   construction of family housing at Marine Corps Air Station Tustin,      
   California, for the repair of roads and development of facilities at    
   Marine Corps Air Station, Miramar, California.                          
                       Modification of land conveyance, Defense Fuel Supply Point, 
           Casco Bay, Maine (sec. 2852)                                            
      The committee recommends a provision that would amend section 2839 of
   the Military Construction Authorization Act for Fiscal Year 1995        
   (division B of Public Law 103 337; 108 Stat. 3065) to authorize the     
   Secretary of Defense to replace electric utility service removed during 
   environmental remediation. The provision would also authorize the       
   Secretary, in consultation with the community, to improve the utility   
   services and install telecommunications service, provided the community 
   funds the cost of the improvements.                                     
                       Modification of land conveyance authority, former Navy      
           Training Center, Bainbridge, Cecil County, Maryland (sec. 2853)         
      The committee recommends a provision that would amend section 1 of an
   Act to convey land in Cecil County, Maryland (Public Law 99 596; 100    
   Stat. 3349) to authorize the Secretary of the Navy to reduce the amount 
   of consideration received from the                                      

                    State of Maryland by an amount equal to the cost of restoring 
          the historic buildings on the property. The total amount of the         
          reduction would not exceed $500,000.                                    
                       Land conveyance, Naval Computer and Telecommunications      
           Station, Cutler, Maine (sec. 2854)                                      
      The committee recommends a provision that would authorize the        
   Secretary of the Navy to convey, without consideration, a parcel of real
   property, including improvements thereon, consisting of approximately   
   263 acres known as the Naval Computer and Telecommunications Station,   
   Cutler, Maine, to the State of Maine, any political subdivision of the  
   State of Maine, or any tax-supported agency in the State of Maine. The  
   Secretary may require the recipient of the property to reimburse the    
   Secretary for any environmental assessment or other studies required    
   with respect to the conveyance of the property.                         
                            PART III--DEFENSE AGENCIES CONVEYANCE                 

                       Land conveyance, Army and Air Force Exchange Service        
           property, Farmers Branch, Texas (sec. 2871)                             
      The committee recommends a provision that would authorize the        
   Secretary of Defense to convey at fair market value a parcel of real    
   property, owned and purchased by the Army and Air Force Exchange        
   Service, a non-appropriated fund instrumentality, located in Farmers    
   Branch, Texas. As a condition of the conveyance, the provision would    
   require cash payment as consideration and would require that the payment
   be processed according to the Federal Property and Administrative       
   Services Act of 1949 (40 U.S.C. 485 (c)). The provision would waive     
   section 2693 of title 10, United States Code, the provisions of the     
   Federal Property Administrative Act of 1949 (40 U.S.C. 471 et seq.), and
   section 501 of the Stewart B. McKinney Homeless Assistance Act (42      
   U.S.C. 11411). The provision would also direct the Secretary to submit a
   report on the conveyance to the congressional defense committees not    
   later than one year after the conveyance.                               
      The committee does not intend the waivers of current law to become   
   general policy, instead the waivers pertain to the unique aspect of the 
   property authorized for conveyance. Specifically, the property is not   
   located on a military base, the title of the property is held by a      
   non-appropriated fund property, and no appropriated funds were used to  
   acquire, construct, rehabilitate, or improve the property.              
                                  SUBTITLE E--OTHER MATTERS                       

                       Naming of the Army missile testing range at Kwajalein Atoll 
           as the Ronald Reagan Ballistic Missile Defense Test Site at Kwajalein   
           Atoll (sec. 2881)                                                       
      The committee recommends a provision that would name the Army missile
   testing range at the Kwajalein Atoll as the Ronald Reagan Ballistic     
   Missile Defense Test Site at Kwajalein Atoll.                           
                                   OTHER ITEMS OF INTEREST                        

                       Report on Naval Foundry and Propeller Center, Philadelphia, 
           Pennsylvania                                                            
      The committee is aware that the Secretary of the Navy is considering 
   an increase above the recommended number of submarines in the           
   Quadrennial Defense Review. Anticipating this future need, it is        
   important to ensure that all the organizations providing support to the 
   submarine force have sufficient resources to meet both current and      
   potentially increased future requirements. As the only government       
   facility capable of producing the highest quality silent propellers and 
   related equipment for submarines, the Naval Foundry and Propeller       
   Center, Philadelphia, Pennsylvania, is an essential facility for support
   of the submarine fleet. Because of its unique capability, it is critical
   that the Center has sufficient facilities, equipment, and trained staff 
   to meet the Navy's current and future requirements.                     
      The committee directs the Secretary of the Navy to submit, not later 
   than March 1, 2001, a report to the congressional defense committees    
   that analyzes the facility, equipment, and staffing requirements of the 
   Naval Foundry and Propeller Center. This report should also include the 
   funding levels needed in future budgets to provide the needed           
   capabilities and capacity at the Center.                                
            Report on requirement for Education Center at Fort Stewart, Georgia    

      The committee is aware that the opportunity for continuing education 
   while in the military is a valuable tool for enhancing recruiting and   
   retention of highly motivated individuals. To maximize the available    
   resources, several military installations have or are prepared to enter 
   joint cooperative agreements with State or local university systems. The
   committee is aware that Fort Stewart, Georgia, has identified an        
   opportunity for a joint cooperative agreement with the University System
   of Georgia to address the educational needs of the military personnel   
   and                                                                     

                    family members stationed at the installation. However, the    
          lack of adequate facilities precludes the full achievement of such an   
          agreement. The committee is supportive of such innovative approaches to 
          meeting the educational needs of our military personnel and directs the 
          Secretary of the Army to study the requirement for and feasibility of   
          funding and constructing an education center at Fort Stewart, Georgia.  
          The study should also address the desirability of joint use of such     
          facility by the local community and the cost sharing arrangements that  
          should accompany such joint use. The Secretary should provide the       
          results of the study to the Committee on Armed Services of the Senate by
          January 15, 2001.                                                       
            Study on commercial leases                                             

      The committee recognizes that the Department of Defense (DOD) has    
   made progress in reducing the number of commercial leases. However, the 
   committee believes that a more aggressive approach to relocating        
   activities from leased facilities to government-owned space would yield 
   additional savings for the Department.                                  
      The committee directs the Secretary of Defense to submit to the      
   Committees on Armed Services of the Senate and the House of             
   Representatives by April 1, 2001, a report that analyzes the relocation 
   of activities from leased facilities to available DOD owned space in    
   metropolitan areas that currently have vacant or underutilized DOD      
   property. The metropolitan areas studied should include, but not be     
   limited to, Philadelphia, Pennsylvania, and San Antonio, Texas.         
                       Study regarding the location of the National Museum of the  
           United States Army                                                      
      The Military Construction Authorization Act, 1985, established the   
   precedence that permits each service (to include the Marine Corps) to   
   designate one museum at one location to be the official service museum. 
   In response to this authority, the Department of the Navy and the       
   Department of the Air Force have designated official museums. The Army  
   and the Marine Corps have not yet specified a museum, although the      
   committee understands that the Marine Corps is considering a location at
   the Marine Corps Base, Quantico, Virginia.                              
      The Chief of Staff of the Army initiated a National Military Museum  
   of the United States Army site selection process in 1983. This process  
   culminated in the selection of a site within the National Capitol       
   Region. The proposed site was submitted for congressional approval in   
   both the fiscal year 1993 and fiscal year 1995. For reasons not related 
   to the specific site, the Congress did not approve the procurement of   
   the location. Since 1996, the Army has not made a concerted effort to   
   identify or seek congressional approval for an Army museum in the       
   National Capitol Region.                                                
      The committee is aware that communities have an interest in hosting  
   the National Military Museum of the United States Army and have         
   dedicated resources toward that effort. The committee supports the      
   establishment of a museum dedicated to honor the 225-year history of the
   Army and believes that any further delay in selecting a site would not  
   only be a disservice to the thousands of men and women who wear the Army
   uniform, but also to the communities eager to host the National Military
   Museum of the United States Army. The committee directs the Secretary of
   the Army to immediately initiate a new site selection process and       
   provide a report to the congressional defense committees not later than 
   one year after enactment of the National Defense Authorization Bill for 
   Fiscal Year 2001. The report shall include the selected site, if one is 
   judged appropriate, the site selection process, schedule for developing 
   the National Military Museum for the United States Army, and funding    
   sources.                                                                

           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      

            Atomic energy defense activities                                       

      Title XXXI authorizes appropriations for the atomic energy defense   
   activities of the Department of Energy for fiscal year 2001, including: 
   the purchase, construction, and acquisition of plant and capital        
   equipment; research and development; nuclear weapons; naval nuclear     
   propulsion; environmental restoration and waste management; operating   
   expenses; and other expenses necessary to carry out the purposes of the 
   Department of Energy Organization Act (Public Law 95 91). The title     
   would authorize appropriations in six categories: national nuclear      
   security administration; defense environmental restoration and waste    
   management; defense environmental management privatization; other       
   defense activities; Department of Energy Employees Compensation         
   Initiative; and defense nuclear waste disposal.                         
      The budget request for the atomic energy defense activities totaled  
   $13.1 billion, an 8.3 percent increase over the adjusted fiscal year    
   2000 level. Of the total amount requested: $4.6 billion was for weapons 
   activities; $1.6 billion was for other nuclear security activities; $4.6
   billion was for defense environmental restoration and waste management  
   activities; $1.0 billion was for defense facility closure projects;     
   $540.1 million was for defense environmental management privatization;  
   $555.1 million was for other defense activities; $112.0 million was for 
   defense nuclear waste disposal; $17.0 million was for a Department of   
   Energy Employees Compensation Initiative; and $140.0 million was for the
   formerly utilized sites remedial action program.                        
      The committee recommends $12.8 billion for atomic energy defense     
   activities, a decrease of $323.6 million to the budget request. The     
   committee recommends $6.2 billion for the national nuclear security     
   administration (NNSA), an increase of 37.2 million to the budget        
   request. The amount authorized for the NNSA is as follows: $4.7 billion 
   for weapons activities, an increase of $78.8 million to the budget      
   request; $847.0 million for defense nuclear nonproiferation, a decrease 
   of $59.0 million to the budget request; and $695.0 million for naval    
   reactors, an increase of $17.4 million to the budget request. The       
   committee further recommends $5.5 billion for defense environmental     
   restoration and waste management, including defense facility closure    
   projects, a decrease of $132.0 million to the budget request; $515.0    
   million for defense environmental management privatization, the amount  
   of the budget request; $466.3 million for other defense activities, a   
   decrease of $88.8 million to the budget request; $17.0 million for a    
   Department of Energy Employees Compensation Initiative, the amount of   
   the budget request; and $112.0 million for defense nuclear waste        
   disposal, the amount of the budget request. The committee recommends no 
   funding for the formerly utilized sites remedial action program,        
   representing a decrease of $140.0 million to the budget request.        
      The following table summarizes the budget request and the committee  
   recommendations:                                                        

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            National Nuclear Security Administration (sec. 3101)                   

      The committee recommends a provision that would authorize $6.2       
   billion for activities of the Department of Energy (DOE) National       
   Nuclear Security Administration (NNSA), an increase of $97.3 million to 
   the budget request.                                                     
            Weapons activities                                                     

      The committee recommends $4.6 billion for weapons activities, an     
   increase of $78.8 million to the budget request. The amount authorized  
   is for the following activities: $842.6 million for directed stockpile  
   work, an increase of $6.0 million; $1.5 billion for campaigns, an       
   increase of $447.1 million; $1.5 billion for readiness in technical base
   and facilities, a decrease of $405.8 million; $115.7 million for secure 
   transportation assets, the amount of the budget request; $448.2 million 
   for construction, an increase of $34.0 million; and $221.6 million for  
   program direction, a decrease of $2.5 million.                          
                                   DIRECTED STOCKPILE WORK                        

      In the directed stockpile work account, the committee recommends an  
   increase of $6.0 million to the budget request for a cooperative        
   research effort with the Department of Defense regarding defeating hard 
   and deeply buried targets.                                              
                                          CAMPAIGNS                               

      In the campaigns account, the committee recommends an increase of    
   $10.0 million to the budget request for the pit manufacturing readiness 
   campaign to begin conceptual design activities for a pit production     
   facility adequate to meet future national security needs; an increase of
   $477.1 million to the defense computing and modeling campaign to reflect
   the consolidation of all defense computing and modeling activities into 
   a single program line item; a decrease of $20.0 million to the defense  
   computing and modeling campaign to reflect delays in acquisition of the 
   100-trillion-operations-per-second computer platform; a decrease of $5.0
   million to the defense computing and modeling campaign to slow the rate 
   of growth in the Visual Interactive Environment Weapon Simulation       
   (VIEWS) program; and a decrease of $15.0 million to the defense         
   computing and modeling campaign to slow the rate of growth in university
   partnership activities. The authorized amounts for both the VIEWS and   
   university partnerships programs represents an increase over fiscal year
   2000 funding levels.                                                    
      The committee notes that the National Defense Authorization Act for  
   Fiscal Year 1996 (Public Law 104 106) requires that the Nuclear         
   Emergency Search Team remain a program function within the Office of    
   Military Applications under the Office of Defense Programs. The         
   committee further notes that the National Defense Authorization Act for 
   Fiscal Year 2000 (Public Law 104 65) directed the Secretary of Energy to
   slow the rate of growth in the Advanced Strategic Computing Initiative  
   and Strategic Computing accounts. Finally, the committee is aware that  
   the November 8, 1999, report of the Panel to Assess the Reliability,    
   Safety, and Security of the U.S. Nuclear Stockpile stated that its      
   ``paramount concern'' with the DOE stockpile stewardship program ``. . .
   is the need to begin work now on an adequate plutonium pit production   
   manufacturing capability.'' The committee endorses this finding and     
   directs the Secretary of Energy to begin conceptual design activities   
   for a pit production facility with a capacity adequate to meet future   
   national security needs immediately.                                    
                         READINESS IN TECHNICAL BASE AND FACILITIES               

      In the budget request for the readiness in technical base and        
   facilities account, the committee recommends: an increase of $56.3      
   million to reflect the movement of the nuclear emergency search team and
   accident response group from the other defense activities emergency     
   management account to the weapons activities account; and an increase of
   $15.0 million for the Kansas City, Pantex, and Y 12 plants to continue  
   advanced manufacturing, modernization, infrastructure improvement, and  
   skills retention efforts.                                               
                                        CONSTRUCTION                              

      In the construction account, the committee recommends an increase of 
   $34.0 million to the budget request for continued preliminary design and
   engineering development activities in the accelerator production of     
   tritium program.                                                        
                                      PROGRAM DIRECTION                           

      In the program direction account, the committee recommends a decrease
   of $2.5 million to the budget request.                                  
      The committee recommends moving the nuclear emergency response       
   programs from the other defense account into the weapons activities     
   account. The amount authorized for program direction reflects an        
   increase of $2.5 million to account for the salaries of those federal   
   employees who will likewise be transferred.                             
      The committee directs that the proposed decrease to the program      
   direction account be achieved through the reorganization and realignment
   of headquarters and field office roles and responsibilities. The        
   committee believes that the performance of                              

                    the Office of Defense Programs will be improved by eliminating
          duplicative efforts and by streamlining management control of DOE       
          weapons activities.                                                     
      The committee continues to believe that the Office of Defense        
   Programs is overstaffed. The committee notes that several independent   
   assessments of the organizational structure of the Office of Defense    
   Programs, dating back as far as calendar year 1997, have also concluded 
   that the Office of Defense Programs would benefit from a realignment of 
   headquarters and field organization personnel. The committee expects the
   Department to utilize the authority to make voluntary separation        
   incentive payments authorized in the National Defense Authorization Act 
   for Fiscal Year 2000 (Public Law 106 65) to fully implement the         
   realignment recommendations described in the calendar year 1997 report  
   by the Institute for Defense Analysis.                                  
           BUDGET STRUCTURE FOR OFFICE OF THE ASSISTANT ADMINISTRATOR FOR DEFENSE 
                                    PROGRAMS                                      
      The committee commends the Office of Defense Programs for            
   establishing a more detailed and transparent budget structure. The      
   committee continues to believe that this new budget structure will      
   greatly enhance the effectiveness of these programs and instill a higher
   degree of budgetary discipline in the Office of Defense Programs. The   
   committee further believes that the new budget structure will also      
   assist Congress in assessing the degree of integration among varied     
   experiments, simulation, research, and weapons assessments activities   
   carried out at the Department's weapons laboratories and production     
   plants. The committee directs that future budget requests for weapons   
   activities clearly identify the funding required for each campaign and  
   each program element under the directed stockpile work and readiness in 
   technical base and facilities accounts.                                 
                              ADVANCED SIMULATION AND COMPUTING                   

      The committee continues to support the Advanced Simulation and       
   Computing program, including the Advanced Strategic Computing Initiative
   (ASCI) and Stockpile Computing program. However, the committee believes 
   that the Department has not fully integrated these programs with the    
   experimental facilities and capabilities that are envisioned for the    
   stockpile stewardship and management program. The committee remains     
   concerned that the rate of growth in this program is not fully          
   justified. The committee notes that the acquisition schedule for the    
   100-trillion-operations-per-second, ASCI-Blue computer to be located at 
   the Lawrence Livermore National Laboratory has slipped by as much as two
   years, yet the budget request reflects no related decrease in funding to
   account for the delayed delivery of this machine.                       
      The committee is also concerned that the rate of growth in the       
   Advanced Simulation and Computing program is taking resources away from 
   other, equally important, programmatic requirements of the Office of    
   Defense Programs. The committee notes that even at this reduced level of
   funding, the Advanced Simulation and Computing programs will experience 
   significant growth in the level of funding over fiscal years 1998, 1999,
   and 2000 funding levels.                                                
      The committee continues to support the utilization of the            
   capabilities and facilities of the Pittsburgh Supercomputing Center to  
   better meet the Department's supercomputing needs in lieu of planned    
   acquisitions proposed within the Advanced Simulation and Computing      
   program.                                                                
                            TECHNOLOGY PARTNERSHIPS AND EDUCATION                 

      Of the amounts authorized to be appropriated for campaigns, the      
   committee recommends $10.0 million for the American Textiles Partnership
   (AMTEX) project. The committee recommends these funds in order to       
   complete work on this partnership in fiscal year 2001. The committee    
   notes the AMTEX project was projected to conclude in fiscal year 2000,  
   but that the Department of Energy failed to obligate the full amount of 
   funds authorized for the project in that fiscal year.                   
                                     TRITIUM PRODUCTION                           

      Of the funds available in the tritium readiness campaign account, the
   committee recommends $58.0 million for the Commercial Light Water       
   Reactor program and $53.0 million for the Accelerator Production of     
   Tritium (APT) program.                                                  
      The committee recommended an increase in the tritium production      
   account to allow DOE to comply with the requirements of section 3134 of 
   the National Defense Authorization Act for Fiscal Year 2000 (Public Law 
   106 65). The committee notes that the request was insufficient to       
   complete preliminary design and engineering development of critical     
   components of the APT technology, as required by section 3134 and the   
   Secretary of Energy's December 22, 1998, tritium decision.              
      The committee is disappointed that the Secretary of Energy failed to 
   request adequate funds to implement the December 1998, tritium decision 
   and meet the requirements set forth in section 3134 of the National     
   Defense Authorization Act for Fiscal Year 2000 (Public Law 106 65). The 
   committee has reduced funding in the defense computing and simulation   
   account to bring the Department into compliance with the Secretary's    
   December 1998, tritium decision and the requirements set forth in       
   section 3134 of the National Defense Authorization Act for Fiscal Year  
   2000.                                                                   

                            NUCLEAR WEAPONS EMPHASIS AND EFFECTS                  

      Of the funds available for directed stockpile work, the committee    
   recommends $5.0 million for a cooperative program with the Defense      
   Threat Reduction Agency to re-establish a vigorous nuclear weapon       
   effects test capability. The program shall emphasize the need to invest 
   in all elements of nuclear weapon effects technologies, including basic 
   phenomenology, analysis and modeling, radiation effects simulation, and 
   hardening technologies.                                                 
                          DEFENSE MEDICAL DEVICES PROTOTYPING PILOT               

      The committee recommends that, of the funds available for campaigns, 
   up to $6.0 million be made available for the Defense medical devices    
   prototyping pilot program. Such funds are available only for activities 
   that support the national security missions of DOE and established      
   missions of the National Institutes of Health (NIH). No weapons         
   activities funds shall be available for any activity that is not carried
   out pursuant to a cooperative agreement between DOE and NIH. Any weapons
   activities funds utilized must be leveraged with at least equal funding 
   from NIH.                                                               
            Defense nuclear nonproliferation                                       

      The committee recommends $847.0 million for defense nuclear          
   nonproliferation, a decrease of $59.0 million to the budget request of  
   $906.0 million. The amount authorized is for the following activities:  
   $262.9 million for nonproliferation verification research and           
   development, an increase of $30.0 million; $308.1 million for arms      
   control, a decrease of $100.0 million; $224.5 million for fissile       
   materials control and disposition, an increase of $1.1 million; and     
   $51.5 million for program direction, the amount of the budget request.  
      The committee notes that the Department of Energy Defense Nuclear    
   Nonproliferation Program was formerly known as the nonproliferation and 
   national security account during fiscal year 2000. Because DOE did not  
   request these funds under separate budget accounts, as required by      
   section 3251 of the National Defense Authorization Act for Fiscal Year  
   2000, (Public Law 106- 65), the committee has renamed and consolidated  
   these accounts, including program direction, into a single account      
   titled National Nuclear Security Administration to meet the statutory   
   requirements.                                                           
                          FISSILE MATERIALS CONTROL AND DISPOSITION               

      In the fissile materials control and disposition account, the        
   committee recommends an increase of $11.0 million to the budget request 
   to accelerate design activities for the mixed oxide fuel fabrication    
   facility and a decrease of $9.9 million to reflect consolidation of all 
   Defense Nuclear Nonproliferation program direction funds into a single  
   account, consistent with the requirements of title 32 of the National   
   Defense Authorization Act for Fiscal Year 2000 (Public Law 106 65).     
            Naval reactors                                                         

      The committee recommends $695.0 million for naval reactors, an       
   increase of $17.5 million to the budget request for expedited           
   decommissioning and decontamination activities at surplus facilities.   
            Safeguards and security activities                                     

      The committee directs that all funds authorized to be appropriated   
   pursuant to this section be managed exclusively by line programs within 
   the NNSA.                                                               
            Defense environmental restoration and waste management (sec. 3102)     

      The committee recommends a provision that would authorize $5.5       
   billion for environmental management activities of the Department of    
   Energy (DOE), excluding defense environmental management privatization  
   and including defense facilities closure projects, for a net reduction  
   of $132.0 million. The amount authorized is for the following           
   activities: $1.1 billion for closure projects, the amount of the        
   request; $930.1 million for site and project completion, a reduction of 
   $40.0 million; $3.0 billion for post 2006 completion, a decrease of     
   $80.0 million; $246.0 million for technology development, an increase of
   $50.0 million; and $191.5 million for program direction, a decrease of  
   $5.0 million. The committee also recommends a decrease of $57.0 million 
   to account for available uncosted, unobligated prior year funds and     
   funds to be deobligated from completed, prior year construction         
   projects.                                                               
      The committee directs that future year requests for defense          
   environmental restoration and waste management include the request for  
   defense facility closure projects.                                      
                                    POST 2006 COMPLETION                          

      In relation to the budget request for the Post 2006 completion       
   account, the committee recommends: an increase of $10.0 million to      
   address planning, research, demonstration, and                          

                    other requirements associated with modification of the        
          Savannah River in-tank precipitation process; an increase of $10.0      
          million for the Columbia River Corridor Initiative at Hanford to        
          continue reactor decontamination and decommissioning activities; a      
          decrease of $25.0 million in the defense contribution to the uranium    
          decommission and decontamination fund; a decrease of $57.0 million to   
          account for increased contractor efficiencies to be gained through      
          contract management reforms and construction project management         
          improvements; and a decrease of $18.0 million to reflect the movement of
          the Environmental Systems Research and Analysis program into the Science
          and Technology Development account.                                     
      The committee recommends full funding for the F-canyon and H-canyon  
   materials processing facilities.                                        
                                 SITE AND PROJECT COMPLETION                      

      In relation to the budget request for the site and project completion
   account, the committee recommends a decrease of $37.0 million to account
   for increased contractor efficiencies to be gained through contract     
   management reforms and construction project management improvements and 
   a decrease of $3.0 million to reflect the movement of the Environmental 
   Systems Research and Analysis program into the Science and Technology   
   Development account.                                                    
                             SCIENCE AND TECHNOLOGY DEVELOPMENT                   

      In relation to the budget request for the science and technology     
   development account, the committee recommends an increase of $50.0      
   million for applied research and development activities. The amount     
   authorized reflects the movement of the Environmental Systems Research  
   and Analysis program into the Science and Technology Development account
   from the Post 2006 and Site and Project Completion accounts.            
      The committee supports the integration of industrial programs and    
   university based programs into the Environmental Management technology  
   focus areas. The committee understands that this approach will better   
   link such research efforts with site needs. The committee believes that 
   the Office of Science and Technology cannot meet its objectives without 
   the active participation of industry and academia. The committee        
   encourages the Office of Science and Technology to continue its         
   inclusion of industry and universities in technology development and    
   deployment activities.                                                  
      The committee notes that the Department's cleanup and waste          
   management efforts will continue well into the 21st Century with costs  
   anticipated to exceed $150.0 billion and much of the cleanup work       
   scheduled to continue beyond fiscal year 2030. DOE must make meaningful 
   investments in innovative science and technology in order to reduce     
   costs, reduce safety and health risks, and develop solutions to problems
   for which there are currently no available or effective technologies.   
      Over the past several years DOE has started to focus the             
   environmental management research and development efforts to the cleanup
   requirements of the various sites and facilities. This effort has       
   started to show significant progress in developing new technologies and 
   making them available for cleanup and waste treatment and in            
   substantially reducing the costs of those activities. In the past, DOE  
   has utilized the research capabilities of Historically Black Colleges   
   and Universities (HBCU)and Hispanic Serving Institutions (HSIs) with    
   great success. The committee is supportive of these efforts and         
   encourages the DOE to expand the research conducted at HBCUs and HSIs.  
      While in many instances there are no technologies or inadequate      
   technologies to treat accumulated waste or to clean up DOE sites and    
   facilities, in many instances DOE has successfully adapted or           
   incorporated existing technologies into the Environmental Management    
   Program. For example, DOE has been able to adapt several new            
   technologies from the oil industry and has had considerable success with
   horizontal drilling techniques devised by the oil industry. The         
   committee is aware of several other technologies available to the oil   
   industry such as macro-encapsulation technology that could possibly be  
   used by the DOE Office of Environmental Management. The committee       
   encourages DOE to take advantage of these and other technologies        
   developed by the oil industry that could be helpful to DOE, as well as  
   any other technologies already developed and utilized by industry.      
                                      PROGRAM DIRECTION                           

      In relation to the program direction account, the committee          
   recommends $354.9 million, a decrease of $5.0 million.                  
                    HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY RESPONSE         

      The committee recommends $5.9 million for the Hazardous Materials    
   Management and Emergency Response training facility in Richland,        
   Washington, to be offset by contributions from facility users.          
                             COLUMBIA RIVER CORRIDOR INITIATIVE                   

      The committee supports the Columbia River Corridor Initiative to     
   accelerate cleanup along the Hanford Reach of the Columbia River. The   
   National Defense Authorization Act for Fiscal Year 2000 (Public Law 106 
   65) directed the Assistant                                              

                    Secretary of Energy for Environmental Management to establish 
          a schedule by which the 100 square miles of the Hanford site that adjoin
          the Columbia River could be cleaned up on an accelerated schedule and   
          proposed for delisting from the Environmental Protection Agency's       
          National Priorities List. The committee notes that this schedule has not
          been submitted to Congress. The committee expects that this report will 
          be provided not later than November 1, 2000.                            
             USE OF PROFESSIONAL AND PERFORMANCE INSURANCE AT DOE CLEANUP SITES   

      The committee directs the Secretary of Energy to report to the       
   congressional defense committees, not later than February 1, 2001,      
   regarding the use of private insurers by contractors to the Department  
   of Energy to underwrite professional and performance liability risks    
   related to contracts administered by the Office of Environmental        
   Management (EM). The report shall identify: (1) those contracts that    
   include insurance requirements or accommodate insurance costs; (2) the  
   costs and benefits for such insurance coverage, including the           
   desirability of mandating such coverage in all EM cleanup contracts and 
   an assessment of the prudence value of third party evaluation of        
   contract objectives; (3) the costs to the U.S. Government of failure to 
   require such coverage, including litigation and arbitration expenses and
   any delays meeting cleanup objectives; and (4) a comparison of the DOE  
   contract requirements to those at commercial cleanup sites with similar 
   coverage. The report shall further assess the desirability of utilizing 
   private insurers or other entities to provide remediation guarantees for
   EM cleanup contracts, specifically for fixed price remediation projects.
             REPORT ON PILOT PROGRAM TO USE PRIOR YEAR UNOBLIGATED BALANCES TO    
       ACCELERATE CLEANUP OF THE ROCKY FLATS ENVIRONMENTAL TECHNOLOGY SITE        
      The committee encourages the Secretary to Energy to use the authority
   provided by section 3176 of the National Defense Authorization Act for  
   Fiscal Year 2000 to accelerate closure of the Rocky Flats Environmental 
   Technology Site (RFETS).                                                
                             SAFEGUARDS AND SECURITY ACTIVITIES                   

      The committee directs that all funds authorized to be appropriated   
   pursuant to this section be managed exclusively by the Assistant        
   Secretary for Environmental Management.                                 
            Other defense activities (sec. 3103)                                   

      The committee authorizes $466.3 billion for other defense activities,
   a decrease of $88.8 million to the budget request. The reduction        
   reflects a decrease of $50.0 million to account for available uncosted, 
   unobligated prior year funds and funds to be deobligated from completed,
   prior year construction projects.                                       
            Intelligence                                                           

      The committee recommends $38.1 million for the Office of             
   Intelligence, the amount of the budget request.                         
            Counterintelligence                                                    

      The committee recommends $75.2 million for the Office of             
   Counterintelligence, an increase of $30.0 million to the budget request.
      The committee directs that these funds be utilized to continue       
   implementation of an enhanced computer security program at Department of
   Energy facilities, including cyber security measures such as intrusion  
   detection, early warning, reporting, and analysis capabilities and a    
   computer vulnerability assessment. The committee directs that priority  
   be given to implementing such added computer security at the three      
   nuclear weapons laboratories.                                           
            Security and emergency operations                                      

                               NUCLEAR SAFEGUARDS AND SECURITY                    

      The committee recommends $124.4 million for safeguards and security, 
   the amount of the budget request.                                       
                                   SECURITY INVESTIGATIONS                        

      The committee recommends $33.0 million for security investigations,  
   the amount of the budget request. The committee notes that of these     
   funds, $20.0 million is authorized in line program accounts and is      
   reflected as an offset to the Other Defense Activities account.         
                                    EMERGENCY MANAGEMENT                          

      The committee recommends $37.3 million for emergency management, a   
   decrease of $56.3 million to the budget request. The reduction reflects 
   movement of the nuclear emergency search team and accident response     
   group programs to the weapons activities account authorized in section  
   3101(a)(1) of this Act. No emergency management funds are authorized for
   these activities.                                                       

                                      PROGRAM DIRECTION                           

      The committee recommends $86.9 million for program direction, a      
   decrease of $2.5 million to the budget request. This reduction reflects 
   the movement of nuclear emergency response programs to the weapons      
   activities account.                                                     
            Independent oversight and performance assurance                        

      The committee recommends $14.9 million for independent oversight and 
   performance assurance, the amount of the budget request.                
            Environment, safety and health-defense                                 

      The committee recommends $99.1 million for environment, safety and   
   health-defense, a decrease of $10.0 million to the budget request. The  
   reduction would be taken from proposed increases in risk and health     
   studies at Department of Energy defense nuclear facilities that do not  
   directly support the national security missions of the Department and,  
   therefore, are not appropriately funded in this account.                
            Worker and community transition                                        

      The committee recommends $24.5 million for worker and community      
   transition, the amount of the budget request.                           
      The committee endorses the Department of Energy's (DOE) decision to  
   remove the requirement that management and operating contracts at DOE   
   sites include provisions for conducting economic development activities 
   in the communities surrounding such sites. The committee encourages DOE 
   contractors to continue to be good corporate citizens by supporting     
   community-based initiatives. The committee believes, however, that      
   economic development activities of DOE contractors should not be used as
   a measure of performance or as a selection criteria for the award of    
   contracts.                                                              
            Office of Hearings and Appeals                                         

      The committee recommends $3.0 million for the Office of Hearings and 
   Appeals, the amount of the budget request.                              
            Defense environmental management privatization (sec. 3104)             

      The committee recommends a provision that would authorize $515.0     
   million for defense environmental management privatization projects, the
   amount of the budget request. The amount authorized is for the following
   projects: $450.0 million for the Tank Waste Remediation System Project, 
   phase I (Richland); $65.0 million for the Advanced Mixed Waste Treatment
   project (Idaho); and $25.1 million for spent nuclear fuel dry storage   
   (Idaho). The amount authorized is reduced by $25.1 million to reflect   
   the use of prior year, uncosted balances in the defense environmental   
   management privatization account.                                       
      The committee is deeply concerned with the status of the Tank Waste  
   Remediation System (TWRS) project. The committee understands that cost  
   estimates for the construction portion of this project have increased   
   from $3.2 billion to $6.4 billion, translating into a total estimated   
   project cost increase from $6.9 billion to over $13.0 billion. The      
   committee further understands that these cost estimates are based on a  
   project design that is only 13 to 15 percent complete and, therefore,   
   subject to additional change.                                           
      The committee fully supports the TWRS project and believes that the  
   technological approach proposed is viable and realistic. The committee  
   also believes it is vitally important that this project proceed to full 
   scale construction only when the Department of Energy has a high degree 
   of confidence in the overall project cost and other facility            
   requirements. The committee believes that the Secretary of Energy should
   not enter into a fixed price contract for this project until the        
   contractor has, at a minimum, completed not less than 40 percent of the 
   project design activities.                                              
            Energy employees compensation initiative (sec. 3105)                   

      The committee recommends a provision that would authorize $17.0      
   million for the establishment of an energy employees compensation fund  
   to compensate Department of Energy (DOE) contractor employees that have 
   proven health or other medical problems that are directly related to    
   their employment at a DOE nuclear facility.                             
            Defense nuclear waste disposal (sec. 3106)                             

      The committee recommends a provision that would authorize $112.0     
   million for the Department of Energy fiscal year 2001 defense           
   contribution to the Defense Nuclear Waste Fund.                         
                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

            Reprogramming (sec. 3121)                                              

      The committee recommends a provision that would prohibit the         
   reprogramming of funds in excess of 110 percent of the amount authorized
   for the program, or in excess of $1.0 million above                     

                    the amount authorized for the program, until the Secretary of 
          Energy submits a report to the congressional defense committees and a   
          period of 30 days has elapsed after the date on which the report is     
          received.                                                               
            Limits on general plant projects (sec. 3122)                           

      The committee recommends a provision that would authorize the        
   Secretary of Energy to carry out any construction project authorized    
   under general plant projects if the total estimated cost does not exceed
   $5.0 million. The provision would require the Secretary to submit a     
   report to the congressional defense committees detailing the reasons for
   the cost variation if the cost of the project is revised to exceed $5.0 
   million.                                                                
            Limits on construction projects (sec. 3123)                            

      The committee recommends a provision that would permit any           
   construction project to be initiated and continued only if the estimated
   cost for the project does not exceed 125 percent of the higher of the   
   amount authorized for the project or the most recent total estimated    
   cost presented to the Congress as justification for such project. The   
   provision would prohibit the Secretary of Energy from exceeding such    
   limits until 30 legislative days after the Secretary submits to the     
   congressional defense committees a detailed report setting forth the    
   reasons for the increase. This provision would also specify that the 125
   percent limitation would not apply to projects estimated to cost under  
   $5.0 million.                                                           
            Fund transfer authority (sec. 3124)                                    

      The committee recommends a provision that would permit funds         
   authorized by this Act to be transferred to other agencies of the       
   government for performance of work for which the funds were authorized  
   and appropriated. The provision would permit the merger of such         
   transferred funds with the authorizations of the agency to which they   
   are transferred. The provision would also limit, to not more than five  
   percent of the account, the amount of funds authorized by this Act that 
   may be transferred between authorization accounts within the Department 
   of Energy.                                                              
            Authority for conceptual and construction design (sec. 3125)           

      The committee recommends a provision that would limit the authority  
   of the Secretary of Energy to request construction funding until the    
   Secretary has completed a conceptual design. This limitation would apply
   to construction projects with a total estimated cost greater than $5.0  
   million. If the estimated cost to prepare the construction design       
   exceeds $600,000, the provision would require the Secretary to obtain a 
   specific authorization to obligate such funds. If the estimated cost to 
   prepare the conceptual design exceeds $3.0 million, the provision would 
   require the Secretary to request funds for the conceptual design before 
   requesting funds for construction. The provision would also provide an  
   exception to these requirements in the case of an emergency.            
      The committee directs the Secretary to submit to Congress a report on
   each conceptual design completed under this provision.                  
                       Authority for emergency planning, design, and construction  
           activities (sec. 3126)                                                  
      The committee recommends a provision that would permit the Secretary 
   of Energy to perform planning and design with any funds available to the
   Department of Energy pursuant to this title, including those funds      
   authorized for advance planning and construction design, whenever the   
   Secretary determines that the design must proceed expeditiously to      
   protect the public health and safety, to meet the needs of national     
   defense, or to protect property.                                        
                       Funds available for all national security programs of the   
           Department of Energy (sec. 3127)                                        
      The committee recommends a provision that would authorize, subject to
   section 3121 of this Act, amounts to be appropriated for management and 
   support activities and for general plant projects to be made available  
   for use in connection with all national security programs of the        
   Department of Energy.                                                   
            Availability of funds (sec. 3128)                                      

      The committee recommends a provision that would authorize amounts to 
   be appropriated for operating expenses or for plant and capital         
   equipment for the Department of Energy to remain available until        
   expended. Program direction funds would remain available until the end  
   of fiscal year 2003.                                                    
            Transfer of defense environmental management funds (sec. 3129)         

      The committee recommends a provision that would provide the manager  
   of each field office of the Department of Energy with limited authority 
   to transfer up to $5.0 million in fiscal year 2001 defense environmental
   management funds from one program or project under the jurisdiction of  
   the office to another such program or project, once in a fiscal year.   

                    SUBTITLE C--NATIONAL NUCLEAR SECURITY ADMINISTRATION          

                       Term of office of person first appointed as Under Secretary 
           for Nuclear Security of the Department of Energy (sec. 3031)            
      The committee recommends a provision that would establish a fixed    
   term of office for the first individual appointed as the Under Secretary
   for Nuclear Security at the Department of Energy. The individual shall  
   be subject to removal by the President only for inefficiency, neglect of
   duty, or malfeasance in office.                                         
                       Membership of Under Secretary for Nuclear Security on the   
           Joint Nuclear Weapons Council (sec. 3132)                               
      The committee recommends a provision that would designate the Under  
   Secretary for Nuclear Security of the Department of Energy (DOE) to     
   serve as the DOE representative on the Joint Nuclear Weapons Council.   
                       Scope of authority of Secretary of Energy to modify         
           organization of National Nuclear Security Administration (sec. 3133)    
      The committee recommends a provision that would limit the authority  
   of the Secretary of Energy to reorganize, abolish, alter, consolidate,  
   or discontinue any organizational unit or component of the National     
   Nuclear Security Administration (NNSA).                                 
                       Prohibition on pay of personnel engaged in concurrent       
           service or duties inside and outside National Nuclear Security          
           Administration (sec. 3134)                                              
      The committee recommends a provision that would prohibit the use of  
   any funds authorized to be appropriated or otherwise made available to  
   the Department of Energy (DOE) by this or any other Act to pay the basic
   pay of an officer or employee of DOE who: (1) serves concurrently in a  
   position in the National Nuclear Security Administration (NNSA) and a   
   position outside the NNSA; or (2) performs concurrently the duties of a 
   position in the NNSA and the duties of a position outside the NNSA.     
      The committee notes that this provision would not apply to detailees 
   who are assigned to serve in position within the NNSA from other federal
   agencies, other DOE organizations, or private entities under a loaned   
   executive program if such employees do not fulfill any of the duties of 
   their permanent organization during the period of their detail.         
      The provision prohibits any detailees from serving in enumerated     
   positions specifically defined in title 32 of the National Defense      
   Authorization Act for Fiscal Year 2000 (Public Law 106 65).             
                       Organization plan for field offices of the National Nuclear 
           Security Administration (sec. 3135)                                     
      The committee recommends a provision that would require the Under    
   Secretary for Nuclear Security of the Department of Energy to develop an
   appropriate staffing and organization plan to carry out the activities  
   of the National Nuclear Security Administration (NNSA). The plan would  
   identify: (1) the roles and responsibilities to be assigned to each NNSA
   field organizational unit and the NNSA headquarters organization; (2)   
   any modifications, downsizing, eliminations, or consolidations of field 
   offices; (3) any modifications to headquarters and field office staffing
   levels that the Under Secretary determines are necessary to implement   
   the plan; and (4) a schedule by which the plan could be implemented. The
   plan would be submitted to the congressional defense committees not     
   later than March 1, 2001.                                               
            Future-years nuclear security program (sec. 3136)                      

      The committee recommends a provision that would require the Under    
   Secretary for Nuclear Security to submit a future-years nuclear security
   program plan that would contain the estimated expenditures necessary to 
   support the programs, projects, and activities of the National Nuclear  
   Security Administration (NNSA), including the anticipated workload      
   requirements at each site under the jurisdiction of the NNSA, for fiscal
   year 2001 and the subsequent five-year period. The provision would      
   require that the Administrator of the NNSA identify how funds authorized
   under each program element in the weapons activities account support the
   reliability and safety of the nuclear weapons stockpile. The provision  
   would further require that the first report be submitted to Congress not
   later than November 1, 2000.                                            
      The committee notes that the Secretary of Energy was required by     
   section 3135 of the National Defense Authorization Act for Fiscal Year  
   1997 (Public Law 104 201) and section 3253 of the National Defense      
   Authorization Act for Fiscal Year 2000 (Public Law 106 65) to provide a 
   five-year budget plan, and that the Secretary failed to comply with such
   requirements. The committee further notes that the Secretary of Defense 
   provides such future-year budget data to Congress with the President's  
   budget request. The committee believes that such a plan will provide an 
   important planning tool for the Secretary, the Administrator, and the   
   Congress, and would serve as a baseline                                 

                    upon which the congressional defense committees can better    
          evaluate succeeding budget submissions.                                 
                       Cooperative research and development of the National Nuclear
           Security Administration (sec. 3137)                                     
      The committee recommends a provision that would establish cooperative
   research and development objectives for the Administrator of the        
   National Nuclear Security Administration (NNSA) and require that such   
   cooperative research and development be consistent with and support the 
   missions of the National Nuclear Security Administration. The provision 
   would establish a goal of obligating 0.5 percent of NNSA funds available
   during fiscal years 2001 and 2002 for cooperative research and          
   development agreements, or similar cooperative, cost-shared research    
   partnerships with non-federal organizations. The provision would further
   require the Administrator of the NNSA to submit a report to the         
   congressional defense committees setting forth a recommendation as to   
   the appropriate percentage goal levels. The provision would require     
   that, beginning in March 2002, and no later than the end of March of    
   each year thereafter, the Administrator report to Congress on whether   
   the goals of this section have been met in the previous fiscal year. If 
   the goals have not been met, the provision would require the            
   Administrator to describe the actions he or she will take to achieve    
   such goals and provide any legislative changes recommended to achieve   
   them.                                                                   
              SUBTITLE D--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   

                       Processing, treatment, and disposition of legacy nuclear    
           materials (sec. 3151)                                                   
      The committee recommends a provision that would require the Secretary
   of Energy to maintain a high state of readiness at the F-canyon and     
   H-canyon facilities at the Savannah River site. The provision would     
   further prohibit use of funds to begin decommissioning activities at the
   F-canyon facility, including studies and planning, until the Defense    
   Nuclear Facilities Safety Board and the Secretary of Energy submit a    
   report certifying that all materials currently present in the facility  
   are safely stabilized and the requirements for the facility to meet     
   future fissile materials disposition needs can be fully met utilizing   
   the H-canyon facility. The provision would require the Secretary to     
   submit to the Committees on Armed Services of the Senate and the House  
   of Representatives a plan describing how all long-term chemical         
   separations activities would be transferred from the F-canyon facility  
   to the H-canyon facility beginning in fiscal year 2002. The report would
   be submitted not later than February 15, 2001.                          
            Formerly Utilized Sites Remedial Action Program (sec. 3152)            

      The committee recommends a provision that would prohibit the use of  
   any funds authorized to be appropriated or otherwise made available to  
   the Department of Energy by this or any other Act for travel by the     
   Secretary of Energy or any employees of the Office of Secretary of      
   Energy after March 1, 2001, unless or until the Secretary certifies to  
   the congressional defense committees that the Department will not       
   utilize Atomic Energy Defense funding to conduct treatment, storage, or 
   disposal activities at sites designated as Formerly Utilized Sites      
   Remedial Action Program (FUSRAP).                                       
      The committee notes that the National Defense Authorization Act for  
   Fiscal Year 2000 (Public Law 106 65) prohibits any Atomic Energy Defense
   funds authorized to be appropriated or otherwise made available to the  
   Department of Energy for any fiscal year after fiscal year 1999 from    
   being obligated or expended to conduct treatment, storage, or disposal  
   activities at sites designated as FUSRAP sites. The committee continues 
   to support the cleanup of FUSRAP sites in an expeditious, cost-effective
   manner. The committee, however, does not support the use of scarce      
   Atomic Energy Defense funds for this purpose.                           
                       Department of Energy Defense Nuclear Nonproliferation       
           Program (sec. 3153)                                                     
      The budget request included $682.6 million for the Arms Control and  
   Nonproliferation and Verification Research and Development programs of  
   the DOE Defense Nuclear Nonproliferation Program under the National     
   Nuclear Security Administration. While the committee considers the      
   activities included in this account important to U.S. national security,
   the committee is concerned with the proposed increase of 25 percent in  
   funding over the fiscal year 2000 appropriated level. The committee     
   believes this level of growth is unjustified. Therefore, the committee  
   recommends $571.1 million for this account in fiscal year 2001, a       
   decrease of $111.6 million from the budget request, reflecting a net    
   increase of $65.4 million over the fiscal year 2000 appropriated level. 
                                    ARMS CONTROL PROGRAM                          

      The budget request included $408.6 million for the programs contained
   within the Defense Nuclear Nonproliferation Program's Arms Control      
   Program account. The committee notes that this                          

                    account was formerly included in the nonproliferation and     
          national security account during fiscal year 2000. The committee        
          recommends $308.0 million for fiscal year 2001, a reduction of $100.0   
          million.                                                                
      The budget request included $272.8 million for the Arms Control      
   Operations Program within the Arms Control Program account. While the   
   committee supports this request, the committee is concerned that DOE has
   not been funding a number of programs within the Arms Control Operations
   Program at levels intended by the Congress due to budgetary constraints 
   in some of the other programs within the Arms Control Program.          
   Therefore, the committee directs that the following programs within the 
   Arms Control Operations Program receive no more than the following      
   amount of funding: $144.8 million for the Material Protection, Control, 
   and Accounting Program; $5 million for the International Emergency      
   Cooperation Program; $14.0 million for the Export Control Operations    
   Program; $16.0 million for the Spent Fuel Activities in Kazakhstan      
   Program; $17.5 million for the Nuclear Cities Initiative (NCI); $22.5   
   million for the Initiatives for Proliferation Prevention Program (IPP); 
   $15.2 million for the Transparent and Irreversible Nuclear Reductions   
   Program; and $37.6 million for other arms control program activities.   
                    MATERIAL PROTECTION, CONTROL, AND ACCOUNTING PROGRAM          

      The budget request included $144.8 million for the Material          
   Protection, Control, and Accounting (MPC&A) Program. The committee      
   supports this request, however, the committee is concerned with the     
   findings of a recent General Accounting Office report on this program.  
      Approximately half of the threat reduction funds spent to date by DOE
   have been expended by the MPC&A Program. In March 2000, the GAO issued a
   report entitled ``Limited Progress in Improving Nuclear Material        
   Security in Russia and the Newly Independent States.'' The report found 
   that the MPC&A Program had spent $481.2 million dollars in Russia and   
   the newly independent states since the program's inception in 1994.     
   These funds were spent for a variety of MPC&A activities, including     
   security training, improvements to weapons-usable nuclear materials     
   transport vehicles, and have improved the security of approximately 70  
   percent of the total weapons-usable material at risk. Just seven percent
   of the weapons-usable material at risk for theft or diversion, however, 
   has been protected by fully installed security systems.                 
      The committee is concerned that for almost half a billion dollars    
   invested in this threat reduction work, the MPC&A Program has not made  
   significant progress toward reducing the threat posed by unsecured      
   weapons-usable nuclear materials in the former Soviet Union. Therefore, 
   the committee recommends a provision requiring DOE to provide an annual 
   report to the Senate and House Armed Services Committees on the MPC&A   
   Program that describes the status of securing weapons-usable nuclear    
   material identified by DOE as being at risk for theft and diversion that
   has received complete and integrated material protection, control, and  
   accounting systems in Russia. The report should specifically describe:  
   (1) the number of buildings and site locations with completed and       
   integrated material protection, control, and accounting upgraded        
   systems; (2) the total amount of highly-enriched uranium and plutonium  
   secured to date in Russia under the auspices of the program; (3) the    
   amount of weapons-usable nuclear material remaining that still requires 
   complete and integrated material protection, control, and accounting    
   systems; (4) the out year budget costs and planning estimated to secure 
   the remaining material; and (5) the total cost to date and by fiscal    
   year of the completed material protection, control, and accounting      
   systems. This report for the previous fiscal year is due no later than  
   January 1, each year during the lifetime of the program. The first      
   report, covering fiscal year 2000 is due January 1, 2001.               
      According to the March 2000 GAO report, little progress has been made
   in installing nuclear security systems in Russia's nuclear weapons      
   complex, where over 90 percent of all the nuclear material in the former
   Soviet Union is located. This is primarily due to the reluctance of     
   Russian officials to grant DOE access to buildings in the nuclear       
   weapons complex. It is the committee's understanding that DOE is        
   negotiating with Russia to gain better access in the nuclear weapons    
   complex, but to date no agreement has been achieved.                    
      The committee believes obtaining an appropriate access policy is     
   nec