[Appendix, Budget of the United States Government, Fiscal Year 1998]
[Page 380-392]

 
                GENERAL PROVISIONS--DEPARTMENT OF DEFENSE

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

                           (transfer of funds)

    Sec. [8005] 8004. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, with the 
approval of the Office of Management and Budget, transfer not

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to exceed [$2,000,000,000] $2,500,000,000 during the current fiscal year 
and $2,500,000,000 during the following fiscal year of working capital 
funds of the Department of Defense or funds made available in this Act 
to the Department of Defense for military functions (except military 
construction) between such appropriations or funds or any subdivision 
thereof, to be merged with and to be available for the same purposes, 
and for the same time period, as the appropriation or fund to which 
transferred: Provided, That such authority to transfer may not be used 
unless for higher priority items, based on unforeseen military 
requirements, than those for which originally appropriated and in no 
case where the item for which funds are requested has been denied by 
Congress: Provided further, That the Secretary of Defense shall notify 
the Congress promptly of all transfers made pursuant to this authority 
or any other authority in this Act: Provided further, That no part of 
the funds in this Act shall be available to prepare or present a request 
to the Committees on Appropriations for reprogramming of funds, unless 
for higher priority items, based on unforeseen military requirements, 
than those for which originally appropriated and in no case where the 
item for which reprogramming is requested has been denied by the 
Congress.

                           (transfer of funds)

    Sec. [8006] 8005. During the current fiscal year and the following 
fiscal year, cash balances in working capital funds of the Department of 
Defense established pursuant to section 2208 of title 10, United States 
Code, may be maintained in only such amounts as are necessary at any 
time for cash disbursements to be made from such funds: Provided, That 
transfers may be made between such funds: Provided further, That 
transfers may be made between working capital funds and the ``Foreign 
Currency Fluctuations, Defense'' appropriation and the ``Operation and 
Maintenance'' appropriation accounts in such amounts as may be 
determined by the Secretary of Defense, with the approval of the Office 
of Management and Budget, except that such transfers may not be made 
unless the Secretary of Defense has notified the Congress of the 
proposed transfer. Except in amounts equal to the amounts appropriated 
to working capital funds in this Act, no obligations may be made against 
a working capital fund to procure or increase the value of war reserve 
material inventory, unless the Secretary of Defense has notified the 
Congress prior to any such obligation.
    [Sec. 8007. Funds appropriated by this Act may not be used to 
initiate a special access program without prior notification 30 calendar 
days in session in advance to the congressional defense committees.]
    [Sec. 8008. None of the funds contained in this Act available for 
the Civilian Health and Medical Program of the Uniformed Services shall 
be available for payments to physicians and other non-institutional 
health care providers in excess of the amounts allowed in fiscal year 
1996 for similar services, except that: (a) for services for which the 
Secretary of Defense determines an increase is justified by economic 
circumstances, the allowable amounts may be increased in accordance with 
appropriate economic index data similar to that used pursuant to title 
XVIII of the Social Security Act; and (b) for services the Secretary 
determines are overpriced based on allowable payments under title XVIII 
of the Social Security Act, the allowable amounts shall be reduced by 
not more than 15 percent (except that the reduction may be waived if the 
Secretary determines that it would impair adequate access to health care 
services for beneficiaries). The Secretary shall solicit public comment 
prior to promulgating regulations to implement this section. Such 
regulations shall include a limitation, similar to that used under title 
XVIII of the Social Security Act, on the extent to which a provider may 
bill a beneficiary an actual charge in excess of the allowable amount.]
    [Sec. 8009. None of the funds provided in this Act shall be 
available to initiate (1) a multiyear contract that employs economic 
order quantity procurement in excess of $20,000,000 in any one year of 
the contract or that includes an unfunded contingent liability in excess 
of $20,000,000, or (2) a contract for advance procurement leading to a 
multiyear contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year, unless the congressional defense 
committees have been notified at least thirty days in advance of the 
proposed contract award: Provided, That no part of any appropriation 
contained in this Act shall be available to initiate a multiyear 
contract for which the economic order quantity advance procurement is 
not funded at least to the limits of the Government's liability: 
Provided further, That no part of any appropriation contained in this 
Act shall be available to initiate multiyear procurement contracts for 
any systems or component thereof if the value of the multiyear contract 
would exceed $500,000,000 unless specifically provided in this Act: 
Provided further, That no multiyear procurement contract can be 
terminated without 10-day prior notification to the congressional 
defense committees: Provided further, That the execution of multiyear 
authority shall require the use of a present value analysis to determine 
lowest cost compared to an annual procurement: Provided further, That 
notwithstanding Section 8010 of Public Law 104-61, funds appropriated 
for the DDG-15 destroyer program in Public Law 104-61 may be used to 
initiate a multiyear contract for the Arleigh Burke class destroyer 
program.
    Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows:
        Javelin missiles;
        Army Tactical Missile System (ATACMS);
        MK19-3 grenade machine guns;
        M16A2 rifles;
        M249 Squad Automatic Weapons;
        M4 carbine rifles;
        M240B machine guns; and
        Arleigh Burke (DDG-15) class destroyers.]
    Sec. [8010] 8006. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby appropriated 
pursuant to section 401 of title 10, United States Code, for 
humanitarian and civic assistance costs under chapter 20 of title 10, 
United States Code. Such funds may also be obligated for humanitarian 
and civic assistance costs incidental to authorized operations and 
pursuant to authority granted in section 401 of chapter 20 of title 10, 
United States Code, and these obligations shall be reported to Congress 
on September 30 of each year: Provided, That funds available for 
operation and maintenance shall be available for providing humanitarian 
and similar assistance by using Civic Action Teams in the Trust 
Territories of the Pacific Islands and freely associated states of 
Micronesia, pursuant to the Compact of Free Association as authorized by 
Public Law 99-239: Provided further, That upon a determination by the 
Secretary of the Army that such action is beneficial for graduate 
medical education programs conducted at Army medical facilities located 
in Hawaii, the Secretary of the Army may authorize the provision of 
medical services at such facilities and transportation to such 
facilities, on a nonreimbursable basis, for civilian patients from 
American Samoa, the Commonwealth of the Northern Mariana Islands, the 
Marshall Islands, the Federated States of Micronesia, Palau, and Guam.
    [Sec. 8011. (a) During fiscal year 1997, the civilian personnel of 
the Department of Defense may not be managed on the basis of any end-
strength, and the management of such personnel during that fiscal year 
shall not be subject to any constraint or limitation (known as an end-
strength) on the number of such personnel who may be employed on the 
last day of such fiscal year.
    (b) The fiscal year 1998 budget request for the department of 
Defense as well as all justification material and other documentation 
supporting the fiscal year 1998 Department of Defense budget request 
shall be prepared and submitted to the Congress as if subsections (a) 
and (b) of this provision were effective with regard to fiscal year 
1998.
    (c) Nothing in this section shall be construed to apply to military 
(civilian) technicians.]
    [Sec. 8012. Notwithstanding any other provision of law, none of the 
funds made available by this Act shall be used by the Department of 
Defense to exceed, outside the fifty United States, its territories, and 
the District of Columbia, 125,000 civilian workyears: Provided, That 
workyears shall be applied as defined in the Federal Personnel Manual: 
Provided further, That workyears expended in dependent student hiring 
programs for disadvantaged youths shall not be included in this workyear 
limitation.]
    Sec. [8013] 8007. None of the funds made available by this Act shall 
be used in any way, directly or indirectly, to influence congressional 
action on any legislation or appropriation matters pending before the 
Congress.
    Sec. [8014] 8008. (a) None of the funds appropriated by this Act 
shall be used to make contributions to the Department of Defense 
Education Benefits Fund pursuant to section 2006(g) of title 10, United 
States Code, representing the normal cost for future benefits under 
section 3015(c) of title 38, United States Code, for any member of the 
armed services who, on or after the date of enactment of this Act--
         (1) enlists in the armed services for a period of active duty 
    of less than three years; or

[[Page 382]]

         (2) receives an enlistment bonus under section 308a or 308f of 
    title 37, United States Code,
nor shall any amounts representing the normal cost of such future 
benefits be transferred from the Fund by the Secretary of the Treasury 
to the Secretary of Veterans Affairs pursuant to section 2006(d) of 
title 10, United States Code; nor shall the Secretary of Veterans 
Affairs pay such benefits to any such member: Provided, That in the case 
of a member covered by clause (1), these limitations shall not apply to 
members in combat arms skills or to members who enlist in the armed 
services on or after July 1, 1989, under a program continued or 
established by the Secretary of Defense in fiscal year 1991 to test the 
cost-effective use of special recruiting incentives involving not more 
than nineteen noncombat arms skills approved in advance by the Secretary 
of Defense: Provided further, That this subsection applies only to 
active components of the Army.
     (b) None of the funds appropriated by this Act shall be available 
for the basic pay and allowances of any member of the Army participating 
as a full-time student and receiving benefits paid by the Secretary of 
Veterans Affairs from the Department of Defense Education Benefits Fund 
when time spent as a full-time student is credited toward completion of 
a service commitment: Provided, That this subsection shall not apply to 
those members who have reenlisted with this option prior to October 1, 
1987: Provided further, That this subsection applies only to active 
components of the Army.
    [Sec. 8015. None of the funds appropriated by this Act shall be 
available to convert to contractor performance an activity or function 
of the Department of Defense that, on or after the date of enactment of 
this Act, is performed by more than ten Department of Defense civilian 
employees until a most efficient and cost-effective organization 
analysis is completed on such activity or function and certification of 
the analysis is made to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section shall not 
apply to a commercial or industrial type function of the Department of 
Defense that: (1) is included on the procurement list established 
pursuant to section 2 of the Act of June 25, 1938 (41 U.S.C. 47), 
popularly referred to as the Javits-Wagner-O'Day Act; (2) is planned to 
be converted to performance by a qualified nonprofit agency for the 
blind or by a qualified nonprofit agency for other severely handicapped 
individuals in accordance with that Act; or (3) is planned to be 
converted to performance by a qualified firm under 51 percent Native 
American ownership.]

                           (transfer of funds)

    Sec. [8016] 8009. Funds appropriated in title III of this Act for 
the Department of Defense Pilot Mentor-Protege Program may be 
transferred to any other appropriation contained in this Act solely for 
the purpose of implementing a Mentor-Protege Program developmental 
assistance agreement pursuant to section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 
2301 note), as amended, under the authority of this provision or any 
other transfer authority contained in this Act.
    [Sec. 8017. None of the funds in this Act may be available for the 
purchase by the Department of Defense (and its departments and agencies) 
of welded shipboard anchor and mooring chain 4 inches in diameter and 
under unless the anchor and mooring chain are manufactured in the United 
States from components which are substantially manufactured in the 
United States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality control, 
testing of chain and welding (including the forging and shot blasting 
process): Provided further, That for the purpose of this section 
substantially all of the components of anchor and mooring chain shall be 
considered to be produced or manufactured in the United States if the 
aggregate cost of the components produced or manufactured in the United 
States exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That when 
adequate domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the service 
responsible for the procurement may waive this restriction on a case-by-
case basis by certifying in writing to the Committees on Appropriations 
that such an acquisition must be made in order to acquire capability for 
national security purposes.]
    Sec. [8018] 8010. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the Uniformed 
Services (CHAMPUS) shall be available for the reimbursement of any 
health care provider for inpatient mental health service for care 
received when a patient is referred to a provider of inpatient mental 
health care or residential treatment care by a medical or health care 
professional having an economic interest in the facility to which the 
patient is referred: Provided, That this limitation does not apply in 
the case of inpatient mental health services provided under the program 
for the handicapped under subsection (d) of section 1079 of title 10, 
United States Code, provided as partial hospital care, or provided 
pursuant to a waiver authorized by the Secretary of Defense because of 
medical or psychological circumstances of the patient that are confirmed 
by a health professional who is not a Federal employee after a review, 
pursuant to rules prescribed by the Secretary, which takes into account 
the appropriate level of care for the patient, the intensity of services 
required by the patient, and the availability of that care.
    Sec. [8019] 8011. Funds available in this Act may be used to provide 
transportation for the next-of-kin of individuals who have been 
prisoners of war or missing in action from the Vietnam era to an annual 
meeting in the United States, under such regulations as the Secretary of 
Defense may prescribe.
    Sec. [8020] 8012. Notwithstanding any other provision of law, during 
the current fiscal year and the following fiscal year, the Secretary of 
Defense may, by Executive Agreement, establish with host nation 
governments in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United States 
military installations in NATO member states may be deposited, in the 
currency of the host nation, in lieu of direct monetary transfers to the 
United States Treasury: Provided, That such credits may be utilized only 
for the construction of facilities to support United States military 
forces in that host nation, or such real property maintenance and base 
operating costs that are currently executed through monetary transfers 
to such host nations.[: Provided further, That the Department of 
Defense's budget submission for fiscal year 1998 shall identify such 
sums anticipated in residual value settlements, and identify such 
construction, real property maintenance or base operating costs that 
shall be funded by the host nation through such credits: Provided 
further, That all military construction projects to be executed from 
such accounts must be previously approved in a prior Act of Congress: 
Provided further, That each such Executive Agreement with a NATO member 
host nation shall be reported to the congressional defense committees, 
the Committee on International Relations of the House of Representatives 
and the Committee on Foreign Relations of the Senate thirty days prior 
to the conclusion and endorsement of any such agreement established 
under this provision.]
    [Sec. 8021. None of the funds available to the Department of Defense 
may be used to demilitarize or dispose of M-1 Carbines, M-1 Garand 
rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or M-1911 
pistols.]
    Sec. [8022] 8013. Notwithstanding any other provision of law, none 
of the funds appropriated by this Act shall be available to pay more 
than 50 percent of an amount paid to any person under section 308 of 
title 37, United States Code, in a lump sum.
    [Sec. 8023. None of the funds appropriated by this Act shall be 
available for payments under the Department of Defense contract with the 
Louisiana State University Medical Center involving the use of cats for 
Brain Missile Wound Research, and the Department of Defense shall not 
make payments under such contract from funds obligated prior to the date 
of the enactment of this Act, except as necessary for costs incurred by 
the contractor prior to the enactment of this Act: Provided, That funds 
necessary for the care of animals covered by this contract are allowed.]
    [Sec. 8024. Of the funds made available by this Act in title III, 
Procurement, $8,000,000, drawn pro rata from each appropriations account 
in title III, shall be available for incentive payments authorized by 
section 504 of the Indian Financing Act of 1974, 25 U.S.C. 1544. These 
payments shall be available only to contractors which have submitted 
subcontracting plans pursuant to 15 U.S.C. 637(d), and according to 
regulations which shall be promulgated by the Secretary of Defense 
within 90 days of the passage of this Act.]
    [Sec. 8025. None of the funds provided in this Act or any other Act 
shall be available to conduct bone trauma research at any Army Research 
Laboratory until the Secretary of the Army certifies that the synthetic 
compound to be used in the experiments is of such a type that its use 
will result in a significant medical finding, the research has military 
application, the research will be conducted in accordance with the 
standards set by an animal care and use committee, and the research does 
not duplicate research already conducted by a manufacturer or any other 
research organization.]

[[Page 383]]

    [Sec. 8026. During the current fiscal year, none of the funds 
available to the Department of Defense may be used to procure or acquire 
(1) defensive handguns unless such handguns are the M9 or M11 9mm 
Department of Defense standard handguns, or (2) offensive handguns 
except for the Special Operations Forces: Provided, That the foregoing 
shall not apply to handguns and ammunition for marksmanship 
competitions.]
    Sec. [8027] 8014. No more than $500,000 of the funds appropriated or 
made available in this Act shall be used during a single fiscal year for 
any single relocation of an organization, unit, activity or function of 
the Department of Defense into or within the National Capital Region: 
Provided, That the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying in writing to the Congressional defense 
committees that such a relocation is required in the best interest of 
the Government.
    Sec. [8028] 8015. During the current fiscal year, funds appropriated 
or otherwise available for any Federal agency, the Congress, the 
judicial branch, or the District of Columbia may be used for the pay, 
allowances, and benefits of an employee as defined by section 2105 of 
title 5 or an individual employed by the government of the District of 
Columbia, permanent or temporary indefinite, who--
         (1) is a member of a Reserve component of the Armed Forces, as 
    described in section 261 of title 10, or the National Guard, as 
    described in section 101 of title 32;
         (2) performs, for the purpose of providing military aid to 
    enforce the law or providing assistance to civil authorities in the 
    protection or saving of life or property or prevention of injury--
             (A) Federal service under sections 331, 332, 333, or 12406 
        of title 10, or other provision of law, as applicable, or
             (B) full-time military service for his or her State, the 
        District of Columbia, the Commonwealth of Puerto Rico, or a 
        territory of the United States; and
         (3) requests and is granted--
             (A) leave under the authority of this section; or
             (B) annual leave, which may be granted without regard to 
        the provisions of sections 5519 and 6323(b) of title 5, if such 
        employee is otherwise entitled to such annual leave:
Provided, That any employee who requests leave under subsection (3)(A) 
for service described in subsection (2) of this section is entitled to 
such leave, subject to the provisions of this section and of the last 
sentence of section 6323(b) of title 5, and such leave shall be 
considered leave under section 6323(b) of title 5.
    [Sec. 8029. None of the funds appropriated by this Act shall be 
available to perform any cost study pursuant to the provisions of OMB 
Circular A-76 if the study being performed exceeds a period of twenty-
four months after initiation of such study with respect to a single 
function activity or forty-eight months after initiation of such study 
for a multi-function activity.]
    Sec. [8030] 8016. Funds appropriated by this Act for the American 
Forces Information Service shall not be used for any national or 
international political or psychological activities.
    Sec. [8031] 8017. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for civilian 
employees hired for certain health care occupations as authorized for 
the Secretary of Veterans Affairs by section 7455 of title 38, United 
States Code.
    [Sec. 8032. None of the funds appropriated or made available in this 
Act shall be used to reduce or disestablish the operation of the 53rd 
Weather Reconnaissance Squadron of the Air Force Reserve, if such action 
would reduce the WC-130 Weather Reconnaissance mission below the levels 
funded in this Act.]
    Sec. [8033] 8018. (a) Of the funds for the procurement of supplies 
or services appropriated by this Act, qualified nonprofit agencies for 
the blind or other severely handicapped shall be afforded the maximum 
practicable opportunity to participate as subcontractors and supplies in 
the performance of contracts let by the Department of Defense.
     (b) During the current fiscal year and the following fiscal year, a 
business concern which has negotiated with a military service or defense 
agency a subcontracting plan for the participation by small business 
concerns pursuant to section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) shall be given credit toward meeting that subcontracting goal 
for any purchases made from qualified nonprofit agencies for the blind 
or other severely handicapped.
     (c) For the purpose of this section, the phrase ``qualified 
nonprofit agency for the blind or other severely handicapped'' means a 
nonprofit agency for the blind or other severely handicapped that has 
been approved by the Committee for the Purchase from the Blind and Other 
Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
48).
    Sec. [8034] 8019. During the current fiscal year and the following 
fiscal year, net receipts pursuant to collections from third party 
payers pursuant to section 1095 of title 10, United States Code, shall 
be made available to the local facility of the uniformed services 
responsible for the collections and shall be over and above the 
facility's direct budget amount.
    Sec. [8035] 8020. [During the current fiscal year, the] The 
Department of Defense is authorized to incur obligations of not to 
exceed $350,000,000 during each of the fiscal years 1998 and 1999 for 
purposes [of] specified in section 2350j(c) of title 10, United States 
Code, in anticipation of receipt of contributions, only from the 
Government of Kuwait, under that section: Provided, That, upon receipt, 
such contributions from the Government of Kuwait shall be credited to 
the appropriations or fund which incurred such obligations.
    [Sec. 8036. Of the funds made available in this Act, not less than 
$23,626,000 shall be available for the Civil Air Patrol, of which 
$19,926,000 shall be available for Operation and maintenance.]
    Sec. [8037] 8021. [(a) None of the funds appropriated in this Act 
are available to establish a new Department of Defense (department) 
federally funded research and development center (FFRDC), either as a 
new entity, or as a separate entity administrated by an organization 
managing another FFRDC, or as a nonprofit membership corporation 
consisting of a consortium of other FFRDCs and other non-profit 
entities.]
     [(b)] Limitation on Compensation--Federally Funded Research and 
Development Center (FFRDC).--No member of a Board of Directors, 
Trustees, Overseers, Advisory Group, Special Issues Panel, Visiting 
Committee, or any similar entity of a defense FFRDC, and no paid 
consultant to any defense FFRDC, may be compensated for his or her 
services as a member of such entity, or as a paid consultant, except 
under the same conditions, and to the same extent, as members of the 
Defense Science Board: Provided, That a member of any such entity 
referred to previously in this subsection shall be allowed travel 
expenses and per diem as authorized under the Federal Joint Travel 
Regulations, when engaged in the performance of membership duties.
    [ (c) Notwithstanding any other provision of law, none of the funds 
available to the department from any source during fiscal year 1997 may 
be used by a defense FFRDC, through a fee or other payment mechanism, 
for charitable contributions, for construction of new buildings, for 
payment of cost sharing for projects funded by government grants, or for 
absorption of contract overruns.
     (d) Notwithstanding any other provision of law, of the funds 
available to the department during fiscal year 1997, not more than 5,975 
staff years of technical effort (staff years) may be funded for defense 
FFRDCs: Provided, That of the specific amount referred to previously in 
this subsection, not more than 1,088 staff years may be funded for the 
defense studies and analysis FFRDCs.
     (e) Notwithstanding any other provision of law, the Secretary of 
Defense shall control the total number of staff years to be performed by 
defense FFRDCs during fiscal year 1997 so as to reduce the total amounts 
appropriated in titles II, III, and IV of this Act by $52,286,000: 
Provided, That the total amounts appropriated in titles II, III, and IV 
of this Act are hereby reduced by $52,286,000 to reflect savings from 
the use of defense FFRDCs by the department.
     (f) Within 60 days after enactment of this Act, the Secretary of 
Defense shall submit to the Congressional defense committees a report 
presenting the specific amounts of staff years of technical effort to be 
allocated by the department for each defense FFRDC during fiscal year 
1997: Provided, That, after the submission of the report required by 
this subsection, the department may not reallocate more than five 
percent of an FFRDC's staff years among other defense FFRDCs until 30 
days after a detailed justification for any such reallocation is 
submitted to the Congressional defense committees.
     (g) The Secretary of Defense shall, with the submission of the 
department's fiscal year 1998 budget request, submit a report presenting 
the specific amounts of staff years of technical effort to be allocated 
for each defense FFRDC during that fiscal year.
     (h) The total amounts appropriated to or for the use of the 
department in titles II, III, and IV of this Act are hereby further 
reduced by $102,286,000 to reflect savings from the decreased use of 
non-FFRDC consulting services by the department.
     (i) No part of the reductions contained in subsections (e) and (h) 
of this section may be applied against any budget activity, activity 
group, subactivity group, line item, program element, program, project, 
subproject or activity which does not fund defense FFRDC

[[Page 384]]

activities or non-FFRDC consulting services within each appropriation 
account.
     (j) Not later than 90 days after enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report listing the specific funding reductions allocated to 
each category listed in subsection (i) above pursuant to this section.]
    [Sec. 8038. None of the funds in this or any other Act shall be 
available for the preparation of studies on--
         (a) the feasibility of removal and transportation of unitary 
    chemical weapons or agents from the eight chemical storage sites 
    within the continental United States to Johnston Atoll: Provided, 
    That this prohibition shall not apply to General Accounting Office 
    studies requested by a Member of Congress or a Congressional 
    Committee; and
         (b) the potential future uses of the nine chemical disposal 
    facilities other than for the destruction of stockpile chemical 
    munitions and as limited by section 1412(c)(2), Public Law 99-145: 
    Provided, That this prohibition does not apply to future use studies 
    for the CAMDS facility at Tooele, Utah.]
    [Sec. 8039. None of the funds appropriated or made available in this 
Act shall be used to procure carbon, alloy or armor steel plate for use 
in any Government-owned facility or property under the control of the 
Department of Defense which were not melted and rolled in the United 
States or Canada: Provided, That these procurement restrictions shall 
apply to any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel Institute (AISI) 
specifications of carbon, alloy or armor steel plate: Provided further, 
That the Secretary of the military department responsible for the 
procurement may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of the House 
of Representatives and the Senate that adequate domestic supplies are 
not available to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order to acquire 
capability for national security purposes: Provided further, That these 
restrictions shall not apply to contracts which are in being as of the 
date of enactment of this Act.]
    [Sec. 8040. For the purposes of this Act, the term ``congressional 
defense committees'' means the National Security Committee of the House 
of Representatives, the Armed Services Committee of the Senate, the 
subcommittee on Defense of the Committee on Appropriations of the 
Senate, and the subcommittee on National Security of the Committee on 
Appropriations of the House of Representatives.]
    Sec. [8041] 8022. During the current fiscal year and the following 
fiscal year, the Department of Defense may acquire the modification, 
depot maintenance and repair of aircraft, vehicles and vessels as well 
as the production of components and other Defense-related articles, 
through competition between Department of Defense depot maintenance 
activities and private firms: Provided, That the Senior Acquisition 
Executive of the military department or defense agency concerned, with 
power of delegation, shall certify that successful bids include 
comparable estimates of all direct and indirect costs for both public 
and private bids: Provided further, That Office of Management and Budget 
Circular A-76 shall not apply to competitions conducted under this 
section.
    [Sec. 8042. (a)(1) If the Secretary of Defense, after consultation 
with the United States Trade Representative, determines that a foreign 
country which is party to an agreement described in paragraph (2) has 
violated the terms of the agreement by discriminating against certain 
types of products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the Secretary's 
blanket waiver of the Buy American Act with respect to such types of 
products produced in that foreign country.
     (2) An agreement referred to in paragraph (1) is any reciprocal 
defense procurement memorandum of understanding, between the United 
States and a foreign country pursuant to which the Secretary of Defense 
has prospectively waived the Buy American Act for certain products in 
that country.
     (b) The Secretary of Defense shall submit to Congress a report on 
the amount of Department of Defense purchases from foreign entities in 
fiscal year 1997. Such report shall separately indicate the dollar value 
of items for which the Buy American Act was waived pursuant to any 
agreement described in subsection (a)(2), the Trade Agreement Act of 
1979 (19 U.S.C. 2501 et seq.), or any international agreement to which 
the United States is a party.
     (c) For purposes of this section, the term ``Buy American Act'' 
means title III of the Act entitled ``An Act making appropriations for 
the Treasury and Post Office Departments for the fiscal year ending June 
30, 1934, and for other purposes'', approved March 3, 1933 (41 U.S.C. 
10a et seq.).]
    Sec. [8043] 8023. Appropriations contained in this Act that remain 
available at the end of [the current fiscal year] each of fiscal years 
1998 and 1999 as a result of energy cost savings realized by the 
Department of Defense shall remain available for obligation for the next 
fiscal year to the extent, and for the purposes, provided in section 
2865 of title 10, United States Code.
    [Sec. 8044. During the current fiscal year and hereafter, voluntary 
separation incentives payable under 10 U.S.C. 1175 may be paid in such 
amounts as are necessary from the assets of the Voluntary Separation 
Incentive Fund established by section 1175(h)(1).]

                      (including transfer of funds)

    Sec. [8045] 8024. Amounts deposited during [the current fiscal year] 
each of fiscal years 1998 and 1999 to the special account established 
under 40 U.S.C. 485(h)(2) and to the special account established under 
10 U.S.C. 2667(d)(1) are appropriated and shall be available until 
transferred by the Secretary of Defense to current applicable 
appropriations or funds of the Department of Defense under the terms and 
conditions specified by 40 U.S.C. 485(h)(2) (A) and (B) and 10 U.S.C. 
2667(d)(1)(B), to be merged with and to be available for the same time 
period and the same purposes as the appropriation to which transferred.
    Sec. [8046] 8025. During the current fiscal year and the following 
fiscal year, appropriations available to the Department of Defense may 
be used to reimburse a member of a reserve component of the Armed Forces 
who is not otherwise entitled to travel and transportation allowances 
and who occupies transient government housing while performing active 
duty for training or inactive duty training: Provided, That such members 
may be provided lodging in kind if transient government quarters are 
unavailable as if the member was entitled to such allowances under 
subsection (a) of section 404 of title 37, United States Code: Provided 
further, That if lodging in kind is provided, any authorized service 
charge or cost of such lodging may be paid directly from funds 
appropriated for operation and maintenance of the reserve component of 
the member concerned.
    [Sec. 8047. The President shall include with each budget for a 
fiscal year submitted to the Congress under section 1105 of title 31, 
United States Code, materials that shall identify clearly and separately 
the amounts requested in the budget for appropriation for that fiscal 
year for salaries and expenses related to administrative activities of 
the Department of Defense, the military departments, and the Defense 
Agencies.]
    Sec. [8048] 8026. Notwithstanding any other provision of law, funds 
available for ``Drug Interdiction and Counter-Drug Activities, Defense'' 
may be obligated for the Young Marines program.
    Sec. [8049] 8027. During the current fiscal year and the following 
fiscal year, amounts contained in the Department of Defense Overseas 
Military Facility Investment Recovery Account established by section 
2921(c)(1) of the National Defense Authorization Act of 1991 (Public Law 
101-510; 10 U.S.C. 2687 note) shall be available until expended for the 
payments specified by section 2921(c)(2) of that Act.
    [Sec. 8050. During the current fiscal year and hereafter, annual 
payments granted under the provisions of section 4416 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102Z484; 106 
Stat. 2714) shall be made from appropriations in this Act which are 
available for the pay of reserve component personnel.]
    [Sec. 8051. Of the funds appropriated or otherwise made available by 
this Act, not more than $119,200,000 shall be available for payment of 
the operating costs of NATO Headquarters: Provided, That the Secretary 
of Defense may waive this section for Department of Defense support 
provided to NATO forces in and around the former Yugoslavia.]
    [Sec. 8052. During the current fiscal year, appropriations which are 
available to the Department of Defense for operation and maintenance may 
be used to purchase items having an investment item unit cost of not 
more than $100,000.]
    [Sec. 8053. During the current fiscal year and hereafter, 
appropriations available for the pay and allowances of active duty 
members of the Armed Forces shall be available to pay the retired pay 
which is payable pursuant to section 4403 of Public Law 102-484 (10 
U.S.C. 1293 note) under the terms and conditions provided in section 
4403.]
    [Sec. 8054. (a) During the current fiscal year, none of the 
appropriations or funds available to the Defense Business Operations 
Fund shall be used for the purchase of an investment item for the 
purpose of acquiring a new inventory item for sale or anticipated sale 
during the current fiscal year or a subsequent fiscal year to customers 
of

[[Page 385]]

the Defense Business Operations Fund if such an item would not have been 
chargeable to the Defense Business Operations Fund during fiscal year 
1994 and if the purchase of such an investment item would be chargeable 
during the current fiscal year to appropriations made to the Department 
of Defense for procurement.
     (b) The fiscal year 1998 budget request for the Department of 
Defense as well as all justification material and other documentation 
supporting the fiscal year 1998 Department of Defense budget shall be 
prepared and submitted to the Congress on the basis that any equipment 
which was classified as an end item and funded in a procurement 
appropriation contained in this Act shall be budgeted for in a proposed 
fiscal year 1998 procurement appropriation and not in the supply 
management business area or any other area or category of the Defense 
Business Operations Fund.]
    Sec. [8055] 8028. None of the funds provided in this Act shall be 
available for use by a Military Department to modify an aircraft, 
weapon, ship or other item of equipment, that the Military Department 
concerned plans to retire or otherwise dispose of within five years 
after completion of the modification: Provided, That this prohibition 
shall not apply to safety modifications: Provided further, That this 
prohibition may be waived by the Secretary of a Military Department if 
the Secretary determines it is in the best national security interest of 
the United States to provide such waiver and so notifies the 
congressional defense committees in writing.
    Sec. [8056] 8029. None of the funds appropriated by this Act for 
programs of the Central Intelligence Agency for fiscal year 1998 shall 
remain available for obligation beyond [the current] that fiscal year, 
except for funds appropriated for the Reserve for Contingencies, which 
shall remain available until September 30, [1998] 1999.
    None of the funds appropriated by this Act for programs of the 
Central Intelligence Agency for fiscal year 1999 shall remain available 
for obligation beyond that fiscal year, except for funds appropriated 
for the Reserve for Contingencies, which shall remain available until 
September 30, 2000.
    Sec. [8057] 8030. Notwithstanding any other provision of law, funds 
made available in this Act for the Defense Intelligence Agency may be 
used for the design, development, and deployment of General Defense 
Intelligence Program intelligence communications and intelligence 
information systems for the Services, the Unified and Specified 
Commands, and the component commands.
    [Sec. 8058. (a) Notwithstanding any other provision of law, funds 
appropriated in this Act for the High Performance Computing 
Modernization Program shall be made available only for the acquisition, 
modernization and sustainment of supercomputing capability and capacity 
at Department of Defense (DoD) science and technology sites under the 
cognizance of the Director of Defense Research and Engineering and DoD 
test and evaluation facilities under the Director of Test and 
Evaluation, OUSD (A&T): Provided, That these funds shall be awarded 
based on user-defined requirements.
     (b) Of the funds appropriated in this Act under the heading 
``Procurement, Defense-Wide'', $124,735,000 shall be made available for 
the High Performance Computing Modernization Program. Of the total funds 
made available for the program pursuant to this subsection, $20,000,000 
shall be for the Army High Performance Computing Research Center.]
    [Sec. 8059. Of the funds appropriated by the Department of Defense 
under the heading ``Operation and Maintenance, Defense-Wide'', not less 
than $8,000,000 shall be made available only for the mitigation of 
environmental impacts, including training and technical assistance to 
tribes, related administrative support, the gathering of information, 
documenting of environmental damage, and developing a system for 
prioritization of mitigation, on Indian lands resulting from Department 
of Defense activities.]
    Sec. [8060] 8031. Amounts collected for the use of the facilities of 
the National Science Center for Communications and Electronics during 
the current fiscal year and the following fiscal year pursuant to 
section 1459(g) of the Department of Defense Authorization Act, 1986, 
and deposited to the special account established under subsection 
1459(g)(2) of that Act are appropriated and shall be available until 
expended for the operation and maintenance of the Center as provided for 
in subsection 1459(g)(2).
    Sec. [8061] 8032. None of the funds appropriated in this Act may be 
used to fill the commander's position at any military medical facility 
with a health care professional unless the prospective candidate can 
demonstrate professional administrative skills.
    Sec. [8062] 8033. (a) None of the funds appropriated in this Act may 
be expended by an entity of the Department of Defense unless the entity, 
in expending the funds, complies with Buy American Act. For purposes of 
this subsection, the term ``Buy American Act'' means title III of the 
Act entitled ``An Act making appropriations for the Treasury and Post 
Office Departments for the fiscal year ending June 30, 1934, and for 
other purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
     (b) If the Secretary of Defense determines that a person has been 
convicted of intentionally affixing a label bearing a ``Made in 
America'' inscription to any product sold in or shipped to the United 
States that is not made in America, the Secretary shall determine, in 
accordance with section 2410f of title 10, United States Code, whether 
the person should be debarred from contracting with the Department of 
Defense.
     (c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the Congress 
that any entity of the Department of Defense, in expending the 
appropriation, purchase only American-made equipment and products, 
provided that American-made equipment and products are cost-competitive, 
quality-competitive, and available in a timely fashion.
    Sec. [8063] 8034. None of the funds appropriated by this Act shall 
be available for a contract for studies, analysis, or consulting 
services entered into without competition on the basis of an unsolicited 
proposal unless the head of the activity responsible for the procurement 
determines--
         (1) as a result of thorough technical evaluation, only one 
    source is found fully qualified to perform the proposed work, or
         (2) the purpose of the contract is to explore an unsolicited 
    proposal which offers significant scientific or technological 
    promise, represents the product of original thinking, and was 
    submitted in confidence by one source, or
         (3) the purpose of the contract is to take advantage of unique 
    and significant industrial accomplishment by a specific concern, or 
    to insure that a new product or idea of a specific concern is given 
    financial support:
Provided, That this limitation shall not apply to contracts in an amount 
of less than $25,000, contracts related to improvements of equipment 
that is in development or production, or contracts as to which a 
civilian official of the Department of Defense, who has been confirmed 
by the Senate, determines that the award of such contract is in the 
interest of the national defense.
    Sec. [8064] 8035. Funds appropriated by this Act for intelligence 
activities are deemed to be specifically authorized by the Congress for 
purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 
414).
    [Sec. 8065. Notwithstanding section 142 of H.R. 3230, the National 
Defense Authorization Act for Fiscal Year 1997, as passed by the Senate 
on September 10, 1996, of the funds provided in title VI of this Act, 
under the heading ``Chemical Agents and Munitions Destruction, 
Defense'', $40,000,000 shall only be available for the conduct of a 
pilot program to identify and demonstrate not less than two alternatives 
to the baseline incineration process for the demilitarization of 
assembled chemical munitions: Provided, That the Under Secretary of 
Defense for Acquisition and Technology shall, not later than December 1, 
1996, designate a program manager who is not, nor has been, in direct or 
immediate control of the baseline reverse assembly incineration 
demilitarization program to carry out the pilot program: Provided 
further, That the Under Secretary of Defense for Acquisition and 
Technology shall evaluate the effectiveness of each alternative chemical 
munitions demilitarization technology identified and demonstrated under 
the pilot program to demilitarize munitions and assembled chemical 
munitions while meeting all applicable Federal and State environmental 
and safety requirements: Provided further, That the Under Secretary of 
Defense for Acquisition and Technology shall transmit, by December 15 of 
each year, a report to the congressional defense committees on the 
activities carried out under the pilot program during the preceding 
fiscal year in which the report is to be made: Provided further, That 
section 142(f)(3) of H.R. 3230, the National Defense Authorization Act 
for Fiscal Year 1997, as passed by the Senate on September 10, 1996, is 
repealed: Provided further, That no funds may be obligated for the 
construction of a baseline incineration facility at the Lexington Blue 
Grass Army Depot or the Pueblo Depot activity until 180 days after the 
Secretary of Defense has submitted to the congressional defense 
committees a report detailing the effectiveness of each alternative 
chemical munitions demilitarization technology identified and 
demonstrated under the pilot program and its ability to meet the 
applicable safety and environmental requirements: Provided further, That 
none of the funds in this or any other Act may be obligated for the 
preparation of studies, assessments, or planning of the removal and 
transportation

[[Page 386]]

of stockpile assembled unitary chemical weapons or neutralized chemical 
agent to any of the eight chemical weapons storage sites within the 
continental United States.]
    [Sec. 8066. (a) None of the funds made available by this Act may be 
obligated for design, development, acquisition, or operation of more 
than 47 Titan IV expendable launch vehicles, or for satellite mission-
model planning for a Titan IV requirement beyond 47 vehicles.
     (b) $59,600,000 made available in this Act for Research, 
Development, Test and Evaluation, Air Force, may only be obligated for 
development of a new family of medium-lift and heavy-lift expendable 
launch vehicles evolved from existing technologies.]
    [Sec. 8067. None of the funds available to the Department of Defense 
in this Act may be used to establish additional field operating agencies 
of any element of the Department during fiscal year 1997, except for 
field operating agencies funded within the National Foreign Intelligence 
Program: Provided, That the Secretary of Defense may waive this section 
by certifying to the House and Senate Committees on Appropriations that 
the creation of such field operating agencies will reduce either the 
personnel and/or financial requirements of the Department of Defense.]
    Sec. [8068] 8036. Notwithstanding section 303 of Public Law 96-487 
or any other provision of law, the Secretary of the Navy is authorized 
to lease real and personal property at Naval Air Facility, Adak, Alaska, 
pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other 
purposes.
    [Sec. 8069. Notwithstanding any other provision of law, for resident 
classes entering the war colleges after September 30, 1997, the 
Department of Defense shall require that not less than 20 percent of the 
total of United States military students at each war college shall be 
from military departments other than the hosting military department: 
Provided, That each military department will recognize the attendance at 
a sister military department war college as the equivalent of attendance 
at its own war college for promotion and advancement of personnel.]

                             [(rescissions)]

    [Sec. 8070. Of the funds provided in Department of Defense 
Appropriations Acts, the following funds are hereby rescinded from the 
following accounts in the specified amounts:
         ``Procurement of Ammunition, Army, 1995/1997'', $4,500,000;
         ``Aircraft Procurement, Navy, 1995/1997'', $8,000,000;
         ``Procurement of Ammunition, Navy and Marine Corps, 1995/
    1997'', $2,000,000;
         ``Other Procurement, Navy, 1995/1997'', $10,000,000;
         ``Aircraft Procurement, Air Force, 1995/1997'', $3,100,000;
         ``Missile Procurement, Air Force, 1995/1997'', $31,900,000;
         ``Aircraft Procurement, Navy, 1996/1998'', $5,400,000;
         ``Procurement of Ammunition, Navy and Marine Corps, 1996/
    1998'', $12,708,000;
         ``Aircraft Procurement, Air Force, 1996/1998'', $9,000,000;
         ``Missile Procurement, Air Force, 1996/1998'', $20,000,000;
         ``Other Procurement, Air Force, 1996/1998'', $26,000,000;
         ``Research, Development, Test and Evaluation, Navy 1996/1997'', 
    $4,500,000.]
    [Sec. 8071. None of the funds provided in this Act may be obligated 
for payment on new contracts on which allowable costs charged to the 
government include payments for individual compensation at a rate in 
excess of $250,000 per year.]
    [Sec. 8072. Of the funds appropriated in the Department of Defense 
Appropriations Act, 1996 (Public Law 104-61), under the heading ``Other 
Procurement, Army'', the Department of the Army shall grant $477,000 to 
the Kansas Unified School District 207 for the purpose of integrating 
schools at Fort Leavenworth into the existing fiber optic network on 
post.]
    [Sec. 8073. None of the funds available in this Act may be used to 
reduce the authorized positions for military (civilian) technicians of 
the Army National Guard, the Air National Guard, Army Reserve and Air 
Force Reserve for the purpose of applying any administratively imposed 
civilian personnel ceiling, freeze, or reduction on military (civilian) 
technicians, unless such reductions are a direct result of a reduction 
in military force structure.]
    [Sec. 8074. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for assistance to the 
Democratic People's Republic of North Korea unless specifically 
appropriated for that purpose.]
    Sec. [8075] 8037. During the current fiscal year and the following 
fiscal year, funds appropriated in this Act are available to compensate 
members of the National Guard for duty performed pursuant to a plan 
submitted by a Governor of a State and approved by the Secretary of 
Defense under section 112 of title 32, United States Code: Provided, 
That during the performance of such duty, the members of the National 
Guard shall be under State command and control: Provided further, That 
such duty shall be treated as full-time National Guard duty for purposes 
of sections 12602 (a)(2) and (b)(2) of title 10, United States Code.
    Sec. [8076] 8038. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Unified and Specified Commands 
and Defense Agencies shall be available for reimbursement of pay, 
allowances and other expenses which would otherwise be incurred against 
appropriations for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence support to Unified 
Commands, Defense Agencies and Joint Intelligence Activities, including 
the activities and programs included within the General Defense 
Intelligence Program and the Consolidated Cryptologic Program: Provided, 
That nothing in this section authorizes deviation from established 
Reserve and National Guard personnel and training procedures.
    [Sec. 8077. During the current fiscal year, none of the funds 
appropriated in this Act may be used to reduce the civilian medical and 
medical support personnel assigned to military treatment facilities 
below the September 30, 1996 level: Provided, That the Service Surgeons 
General may waive this section by certifying to the congressional 
defense committees that the beneficiary population is declining in some 
catchment areas and civilian strength reductions may be consistent with 
responsible resource stewardship and capitation-based budgeting.]
    [Sec. 8078. All refunds or other amounts collected in the 
administration of the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) shall be credited to current year 
appropriations.]

                      (including transfer of funds)

    Sec. [8079] 8039. None of the funds appropriated in this Act may be 
transferred to or obligated from the Pentagon Reservation Maintenance 
Revolving Fund, unless the Secretary of Defense certifies that the total 
cost for the planning, design, construction and installation of 
equipment for the renovation of the Pentagon Reservation will not exceed 
[$1,118,000,000] $1,218,000,000.
    Sec. [8080] 8040. (a) None of the funds available to the Department 
of Defense for any fiscal year for drug interdiction or counter-drug 
activities may be transferred to any other department or agency of the 
United States except as specifically provided in an appropriations law.
     (b) None of the funds available to the Central Intelligence Agency 
for any fiscal year for drug interdiction and counter-drug activities 
may be transferred to any other department or agency of the United 
States except as specifically provided in an appropriations law.

                           (transfer of funds)

    Sec. [8081] 8041. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for increasing 
energy and water efficiency in Federal buildings may, during their 
period of availability, be transferred to other appropriations or funds 
of the Department of Defense for projects related to increasing energy 
and water efficiency, to be merged with and to be available for the same 
general purposes, and for the same time period, as the appropriation or 
fund to which transferred.
    [Sec. 8082. None of the funds appropriated by this Act may be used 
for the procurement of ball and roller bearings other than those 
produced by a domestic source and of domestic origin: Provided, That the 
Secretary of the military department responsible for such procurement 
may waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate, that adequate domestic supplies are not 
available to meet Department of Defense requirements on a timely basis 
and that such an acquisition must be made in order to acquire capability 
for national security purposes.]
    Sec. [8083] 8042. Notwithstanding any other provision of law, funds 
available to the Department of Defense shall be made available to 
provide transportation of medical supplies and equipment, on a 
nonreimbursable basis, to American Samoa: Provided, That notwithstanding 
any other provision of law, funds available to the Department of Defense 
shall be made available to provide transportation of medical supplies 
and equipment, on a nonreimbursable basis, to the Indian Health Service 
when it is in conjunction with a civil-military project.

[[Page 387]]

    [Sec. 8084. None of the funds in this Act may be used to purchase 
any supercomputer which is not manufactured in the United States, unless 
the Secretary of Defense certifies to the congressional defense 
committees that such an acquisition must be made in order to acquire 
capability for national security purposes that is not available from 
United States manufacturers.]
    Sec. [8085] 8043. Notwithstanding any other provision of law, the 
Naval shipyards of the United States shall be eligible to participate in 
any manufacturing extension program financed by funds appropriated in 
this or any other Act.
    [Sec. 8086. None of the funds appropriated by this Act shall be 
available to lease or charter a vessel in excess of seventeen months 
(inclusive of any option periods) to transport fuel or oil for the 
Department of Defense if the vessel was constructed after October 1, 
1995 unless the Secretary of Defense requires that the vessel be 
constructed in the United States with a double hull under the long-term 
lease or charter authority provided in section 2401 note of title 10, 
United States Code: Provided, That this limitation shall not apply to 
contracts in force on the date of enactment of this Act: Provided 
further, That by 1997 at least 20 percent of annual leases and charters 
must be for ships of double hull design constructed after October 1, 
1995 if available in numbers sufficient to satisfy this requirement: 
Provided further, That the Military Sealift Command shall plan to 
achieve the goal of eliminating single hull ship leases by the year 
2015.]

                          [(transfer of funds)]

    [Sec. 8087. In addition to amounts appropriated or otherwise made 
available by this Act, $300,000,000 is hereby appropriated to the 
Department of Defense and shall be available only for transfer to the 
United States Coast Guard.]
    [Sec. 8088. Notwithstanding any other provision in this Act, the 
total amount appropriated in this Act is hereby reduced by $150,000,000 
to reflect savings from reduced carryover of activities funded through 
the Defense Business Operations Fund, to be distributed as follows: 
``Operation and Maintenance, Army'', $60,000,000; and ``Operation and 
Maintenance, Navy'', $90,000,000.]
    [Sec. 8089. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense during the current fiscal 
year for construction or service performed in whole or in part in a 
State which is not contiguous with another State and has an unemployment 
rate in excess of the national average rate of unemployment as 
determined by the Secretary of Labor, shall include a provision 
requiring the contractor to employ, for the purpose of performing that 
portion of the contract in such State that is not contiguous with 
another State, individuals who are residents of such State and who, in 
the case of any craft or trade, possess or would be able to acquire 
promptly the necessary skills: Provided, That the Secretary of Defense 
may waive the requirements of this section, on a case-by-case basis, in 
the interest of national security.]
    [Sec. 8090. During the current fiscal year, the Army shall use the 
former George Air Force Base as the airhead for the National Training 
Center at Fort Irwin: Provided, That none of the funds in this Act shall 
be obligated or expended to transport Army personnel into Edwards Air 
Force Base for training rotations at the National Training Center.]
    [Sec. 8091. (a) The Secretary of Defense shall submit, on a 
quarterly basis, a report to the congressional defense committees, the 
Committee on International Relations of the House of Representatives and 
the Committee on Foreign Relations of the Senate setting forth all costs 
(including incremental costs) incurred by the Department of Defense 
during the preceding quarter in implementing or supporting resolutions 
of the United Nations Security Council, including any such resolution 
calling for international sanctions, international peacekeeping 
operations, and humanitarian missions undertaken by the Department of 
Defense. The quarterly report shall include an aggregate of all such 
Department of Defense costs by operation or mission.
     (b) The Secretary of Defense shall detail in the quarterly reports 
all efforts made to seek credit against past United Nations expenditures 
and all efforts made to seek compensation from the United Nations for 
costs incurred by the Department of Defense in implementing and 
supporting United Nations activities.]
    [Sec. 8092 (a) Limitation on Transfer of Defense Articles and 
Services.--Notwithstanding any other provision of law, none of the funds 
available to the Department of Defense for the current fiscal year may 
be obligated or expended to transfer to another nation or an 
international organization any defense articles or services (other than 
intelligence services) for use in the activities described in subsection 
(b) unless the congressional defense committees, the Committee on 
International Relations of the House of Representatives, and the 
Committee on Foreign Relations of the Senate are notified 15 days in 
advance of such transfer.
     (b) Covered Activities.--(1) This section applies to--
         (A) any international peacekeeping or peace-enforcement 
    operation under the authority of chapter VI or chapter VII of the 
    United Nations Charter under the authority of a United Nations 
    Security Council resolution; and
         (B) any other international peacekeeping, peace-enforcement, or 
    humanitarian assistance operation.
     (c) Required Notice.--A notice under subsection (a) shall include 
the following:
         (1) A description of the equipment, supplies, or services to be 
    transferred.
         (2) A statement of the value of the equipment, supplies, or 
    services to be transferred.
         (3) In the case of a proposed transfer of equipment or 
    supplies--
             (A) a statement of whether the inventory requirements of 
        all elements of the Armed Forces (including the reserve 
        components) for the type of equipment or supplies to be 
        transferred have been met; and
             (B) a statement of whether the items proposed to be 
        transferred will have to be replaced and, if so, how the 
        President proposes to provide funds for such replacement.]
    Sec. [8093] 8044. To the extent authorized by subchapter VI of 
Chapter 148 of title 10, United States Code, the Secretary of Defense 
shall issue loan guarantees in support of U.S. defense exports not 
otherwise provided for: Provided, That the total contingent liability of 
the United States for guarantees issued under the authority of this 
section may not exceed $15,000,000,000: Provided further, That the 
exposure fees charged and collected by the Secretary for each guarantee, 
shall be paid by the country involved and shall not be financed as part 
of a loan guaranteed by the United States: Provided further, That the 
Secretary shall provide quarterly reports to the Committees on 
Appropriations, Armed Services and Foreign Relations of the Senate and 
the Committees on Appropriations, National Security and International 
Relations in the House of Representatives on the implementation of this 
program: Provided further, That amounts charged for administrative fees 
and deposited to the special account provided for under section 2540c(d) 
of title 10, shall be available for paying the costs of administrative 
expenses of the Department of Defense that are attributable to the loan 
guarantee program under subchapter VI of Chapter 148 of title 10.
    [Sec. 8094. None of the funds available to the Department of Defense 
shall be obligated or expended to make a financial contribution to the 
United Nations for the cost of an United Nations peacekeeping activity 
(whether pursuant to assessment or a voluntary contribution) or for 
payment of any United States arrearage to the United Nations.]
    Sec. [8095] 8045. None of the funds available to the Department of 
Defense under this Act shall be obligated or expended to pay a 
contractor under a contract with the Department of Defense for costs of 
any amount paid by the contractor to an employee when--
         (1) such costs are for a bonus or otherwise in excess of the 
    normal salary paid by the contractor to the employee; and
         (2) such bonus is part of restructuring costs associated with a 
    business combination.
    [Sec. 8096. The amount otherwise provided by this Act for 
``Operation and Maintenance, Air Force'' is hereby reduced by 
$194,500,000, to reflect a reduction in the pass-through to the Air 
Force business areas of the Defense Business Operations Fund.]
    [Sec. 8097. (a) None of the funds appropriated or otherwise made 
available in this Act may be used to transport or provide for the 
transportation of chemical munitions or agents to the Johnston Atoll for 
the purpose of storing or demilitarizing such munitions or agents.
     (b) The prohibition in subsection (a) shall not apply to any 
obsolete World War II chemical munition or agent of the United States 
found in the World War II Pacific Theater of Operations.
     (c) The President may suspend the application of subsection (a) 
during a period of war in which the United States is a party.]
    [Sec. 8098. None of the funds provided in title II of this Act for 
``Former Soviet Union Threat Reduction'' may be obligated or expended to 
finance housing for any individual who was a member of the military 
forces of the Soviet Union or for any individual who is or was a member 
of the military forces of the Russian Federation.]

[[Page 388]]

    Sec. [8099] 8046. During [the current fiscal year] each of the 
fiscal years 1998 and 1999, no more than $15,000,000 of appropriations 
made in this Act under the heading ``Operation and Maintenance, Defense-
Wide'' may be transferred to appropriations available for the pay of 
military personnel during each such fiscal year, to be merged with, and 
to be available for the same time period as the appropriations to which 
transferred, to be used in support of such personnel in connection with 
support and services for eligible organizations and activities outside 
the Department of Defense pursuant to section 2012 of title 10, United 
States Code.
    [Sec. 8100. Beginning in fiscal year 1997 and thereafter, and 
notwithstanding any other provision of law, fixed and mobile 
telecommunications support shall be provided by the White House 
Communications Agency (WHCA) to the United States Secret Service (USSS), 
without reimbursement, in connection with the Secret Service's duties 
directly related to the protection of the President or the Vice 
President or other officer immediately next in order of succession to 
the office of the President at the White House Security Complex in the 
Washington, D.C. Metropolitan Area and Camp David, Maryland. For these 
purposes, the White House Security Complex includes the White House, the 
White House grounds, the Old Executive Office Building, the New 
Executive Office Building, the Blair House, the Treasury Building, and 
the Vice President's Residence at the Naval Observatory.]
    [Sec. 8101. None of the funds provided in this Act may be obligated 
or expended for the sale of zinc in the National Defense Stockpile if 
zinc commodity prices decline more than five percent below the London 
Metals Exchange market price reported on the date of enactment of this 
Act.]
    Sec. [8102] 8047. For purposes of section 1553(b) of title 31, 
United States Code, any subdivision of appropriations made in this Act 
under the heading ``Shipbuilding and Conversion, Navy'' shall be 
considered to be for the same purpose as any subdivision under the 
heading ``Shipbuilding and Conversion, Navy'' appropriations in any 
prior year, and the one percent limitation shall apply to the total 
amount of the appropriation.
    Sec. [8103] 8048. [During the current fiscal year, and 
notwithstanding] Notwithstanding 31 U.S.C. 1552(a), not more than 
[$107,000,000] $14,000,000 appropriated under the heading ``Aircraft 
Procurement, Air Force'' [in Public Law 101-511 and not more than 
$15,000,000 appropriated under the heading ``Aircraft Procurement, Air 
Force''] in Public Law [102-172] 102-396 which [were] was available and 
obligated for the B-2 Aircraft Program shall remain available for 
expenditure and for adjusting obligations for such Program until 
September 30, [2002] 2003.
    Sec. [8104] 8049. During the current fiscal year, in the case of an 
appropriation account of the Department of Defense for which the period 
of availability for obligation has expired or which has closed under the 
provisions of section 1552 of title 31, United States Code, and which 
has a negative unliquidated or unexpended balance, an obligation or an 
adjustment of an obligation may be charged to any current appropriation 
account for the same purpose as the expired or closed account if--
         (1) the obligation would have been properly chargeable (except 
    as to amount) to the expired or closed account before the end of the 
    period of availability or closing of that account;
         (2) the obligation is not otherwise properly chargeable to any 
    current appropriation account of the Department of Defense; and
         (3) in the case of an expired account, the obligation is not 
    chargeable to a current appropriation of the Department of Defense 
    under the provisions of section 1405(b)(8) of the National Defense 
    Authorization Act for Fiscal Year 1991, Public Law 101-510, as 
    amended (31 U.S.C. 1551 note): Provided, That in the case of an 
    expired account, if subsequent review or investigation discloses 
    that there was not in fact a negative unliquidated or unexpended 
    balance in the account, any charge to a current account under the 
    authority of this section shall be reversed and recorded against the 
    expired account: Provided further, That the total amount charged to 
    a current appropriation under this section may not exceed an amount 
    equal to one percent of the total appropriation for that account.

                          [(transfer of funds)]

    [Sec. 8105. Upon enactment of this Act, the Secretary of Defense 
shall make the following transfers of funds: Provided, That the amounts 
transferred shall be available for the same purposes as the 
appropriations to which transferred, and for the same time period as the 
appropriation from which transferred: Provided further, That the amounts 
shall be transferred between the following appropriations in the amount 
specified:
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1985/1995'':
                 CG-47 cruiser program, $4,300,000;
                 For craft, outfitting, and post delivery, $2,000,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1985/1995'':
                 DDG-51 destroyer program, $6,300,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1986/1996'':
                 LHD-1 amphibious assault ship program, $2,154,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1986/1996'':
                 For craft, outfitting and post delivery, $2,154,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1987/1996'':
                 T-AO fleet oiler program, $1,095,000;
                 Oceanographic ship program, $735,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1987/1996'':
                 For craft, outfitting, and post delivery, $1,830,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1989/2000'':
                 T-AO fleet oiler program, $6,571,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1989/2000'':
                 SSN-21 attack submarine program, $6,571,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1991/2001'':
                 DDG-51 destroyer program, $12,687,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1991/2001'':
                 LHD-1 amphibious assault ship program, $9,387,000;
                 MHC coastal mine hunter program, $3,300,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1992/1996'':
                 For escalation, $1,600,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1992/1996'':
                 MHC coastal mine hunter program, $1,600,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1993/1997'':
                 DDG-51 destroyer program, $5,000,000;
                 LSD-41 cargo variant ship program, $2,700,000;
                 For craft, outfitting, post delivery, and first 
            destination transportation, and inflation adjustment, 
            $1,577,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1993/1997'':
                 AOE combat support ship program, $9,277,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1995/1999'':
                 Carrier replacement program, $18,023,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1993/1997'':
                 MHC coastal mine hunter program, $6,700,000;
                 AOE combat support ship program, $11,323,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1994/1998'':
                 LHD-1 amphibious assault ship program, $4,100,000;
                 Mine warfare command and control ship, $1,000,000;

[[Page 389]]

                 For craft, outfitting, post delivery, and first 
            destination transportation, $2,000,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1995/1999'':
                 Carrier replacement program, $9,477,000;
         From:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1996/2000'':
                 NSSN-1 (AP), $3,791,000;
                 DDG-51 destroyer program, $4,075,000;
                 CVN Refuelings, $5,212,000;
                 LHD-1 amphibious ship program, $16,800,000;
                 T-AGS-64 multi-purpose oceanographic survey ship, 
            $375,000;
                 For craft, outfitting, post delivery, conversions and 
            first destination transportation, $11,770,000;
         To:
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1994/1998'':
                 DDG-51 destroyer program, $41,800,000; and
             Under the heading, ``Shipbuilding and Conversion, Navy, 
        1995/1999'':
                 For craft, outfitting, post delivery, conversions and 
            first destination transportation, $16,800,000.]
    [Sec. 8106. (a) The Secretary of Defense shall require not later 
than June 30, 1997, each disbursement by the Department of Defense in an 
amount in excess of $3,000,000 be matched to a particular obligation 
before the disbursement is made.
     (b) The Secretary shall ensure that a disbursement in excess of the 
threshold amount applicable under section (a) is not divided into 
multiple disbursements of less than that amount for the purpose of 
avoiding the applicability of such section to that disbursement.]
    [Sec. 8107. Notwithstanding any other provision of law, the Air 
Force shall not introduce any new supplier for the remaining production 
units for the AN/ALE-47 Countermeasures Dispenser System without 
conducting a full and open competition that will include, but not be 
limited to, small businesses.]
    [Sec. 8108. The Under Secretary of Defense (Comptroller) shall 
submit to the congressional defense committees a detailed report 
identifying, by amount and by separate budget activity, activity group, 
subactivity group, line item, program element, program, project, 
subproject, and activity, any activity for which the fiscal year 1998 
budget request was reduced because Congress appropriated funds above the 
President's budget request for that specific activity for fiscal year 
1997.]
    [Sec. 8109. In applying section 9005 of the Department of Defense 
Appropriations Act, 1993, Public Law 102-396 (10 U.S.C. 2241 note), 
during the current fiscal year and thereafter--
         (1) the term ``synthetic fabric and coated synthetic fabric'' 
    shall be deemed to include all textile fibers and yarns that are for 
    use in such fabrics; and
         (2) such section shall be treated, notwithstanding section 34 
    of Public Law 93-400 (41 U.S.C. 430), as being applicable to 
    contracts and subcontracts for the procurement of commercial items 
    that are articles or items, specialty metals, or tools covered by 
    that section 9005.]
    [Sec. 8110. Notwithstanding any other provision of law, including 
Section 2304(j) of title 10, United States Code, of the funds 
appropriated under the heading ``Aircraft Procurement, Navy'' in Public 
Law 104-61, $45,000,000 shall be made available only for acquisition of 
T-39N aircraft, associated ground-based training system (GBTS), service 
life extension related components and parts, associated equipment, and 
data that meet the Undergraduate Flight Officer (UNFO) training 
requirements by procurement of the T-39N aircraft currently being used 
by the Navy for UNFO training under a services contract.]
    [Sec. 8111. Tradeoff Study of Current and Future Deep-Strike 
Capabilities.--
         (1) The Secretary of Defense shall carry out the deep-strike 
    tradeoff study announced by the President to study tradeoffs between 
    bombers, land and sea-based tactical aircraft, and missiles capable 
    of striking targets in an enemy's rear area.
         (2) The Secretary of Defense shall establish an ad hoc review 
    committee under the auspices of the Defense Science Board to 
    establish the methodological approach to the tradeoff study, to 
    establish a broad range of stressing scenarios of interest, and to 
    review assumptions regarding the analysis to be conducted.
         (3) The ad hoc review committee to be established under 
    paragraph (2) shall include among its members analysts who have 
    performed or participated in bomber tradeoff analysis, retired 
    military personnel with broad experience in recent conventional 
    warfare operations, and experts on the logistics of both initial 
    deployment and sustaining support. These members shall be selected 
    without regard for current service on the Defense Science Board.
         (4) After submitting its recommendations for the conduct of the 
    deep-strike tradeoff study to the Secretary of Defense, the ad hoc 
    review committee shall continue to meet regularly to review 
    preliminary results of the analysis and to recommend additional 
    variations in assumptions that may be required to illuminate 
    particular force tradeoff issues.]
    Sec. [8112] 8050. Notwithstanding 31 U.S.C. 1552(a), of the funds 
provided in Department of Defense Appropriations Acts, not more than the 
specified amounts of funds from the following accounts shall remain 
available for the payment of satellite on-orbit incentive fees until the 
fees are paid:
         ``Missile Procurement, Air Force, 1990/1992'', $17,800,000;
         ``Missile Procurement, Air Force, 1991/1993'', $19,330,000;
         ``Missile Procurement, Air Force, 1992/1994'', $23,570,000;
         ``Missile Procurement, Air Force, 1993/1995'', $16,780,000;
         ``Missile Procurement, Air Force, 1994/1996'', $16,780,000.
    [Sec. 8113. Tactical Aircraft Requirement Study.--The Secretary of 
Defense and the Chairman of the Joint Chiefs of Staff shall carry out a 
joint study under the direct supervision of the Joint Requirements 
Oversight Council (JROC) assessing future tactical aircraft requirements 
across service jurisdictions. This study shall determine the best and 
most affordable mix of weapon systems to carry out different mission 
areas and shall include recommendations for changes to the planned 
numbers and types of tactical aircraft to be developed and procured over 
the next ten years if appropriate. Such report shall be submitted to the 
congressional defense committees no later than March 30, 1997.]
    [Sec. 8114. None of the funds available to the Department of the 
Navy may be used to enter into any contract for the overhaul, repair, or 
maintenance of any naval vessel homeported on the West Coast of the 
United States which includes charges for interport differential as an 
evaluation factor for award.]
    Sec. [8115. (a)] 8051. None of the funds available to the Department 
of Defense under this Act may be obligated or expended to reimburse a 
defense contractor for restructuring costs associated with a business 
combination of the defense contractor that occurs after the date of 
enactment of this Act unless:
         (1) the auditable savings for the Department of Defense 
    resulting from the restructuring will exceed the costs allowed by a 
    factor of at least two to one, or
         (2) the savings for the Department of Defense resulting from 
    the restructuring will exceed the costs allowed and the Secretary of 
    Defense determines that the business combination will result in the 
    preservation of a critical capability that might otherwise be lost 
    to the Department, and
         (3) the report required by Section 818(e) of Public Law 103-337 
    to be submitted to Congress in 1996 is submitted.
    [(b) Not later than April 1, 1997, the Comptroller General shall, in 
consultation with the Inspector General of the Department of Defense, 
the Secretary of Defense, and the Secretary of Labor, submit to Congress 
a report which shall include the following:
         (1) an analysis and breakdown of the restructuring costs paid 
    by or submitted to the Department of Defense to companies involved 
    in business combinations since 1993;
         (2) an analysis of the specific costs associated with workforce 
    reductions;
         (3) an analysis of the services provided to the workers 
    affected by business combinations;
         (4) an analysis of the effectiveness of the restructuring costs 
    used to assist laid off workers in gaining employment;
         (5) in accordance with section 818 of Public Law 103-337, an 
    analysis of the savings reached from the business combination 
    relative to the restructuring costs paid by the Department of 
    Defense.
     (c) The report should set forth recommendations to make this 
program more effective for workers affected by business combinations and 
more efficient in terms of the use of Federal dollars.]
    [Sec. 8116. Notwithstanding any other provision of law, none of the 
funds appropriated in this Act may be used to purchase, install, 
replace, or otherwise repair any lock on a safe or security container 
which protects information critical to national security or any other 
classified materials and which has not been certified as passing the

[[Page 390]]

security lock specifications contained in regulation FF-L-2740 dated 
October 12, 1989, and has not passed all testing criteria and procedures 
established through February 28, 1992: Provided, That the Director of 
Central Intelligence may waive this provision, on a case-by-case basis 
only, upon certification that the above cited locks are not adequate for 
the protection of sensitive intelligence information.]
    [Sec. 8117. Section 8110 of Public Law 104-61 (109 Stat. 674) is 
hereby repealed.]
    [Sec. 8118. The Secretary of Defense, in conjunction with the 
Secretary of Labor, shall take such steps as required to ensure that 
those Department of Defense contractors and other entities subject to 
section 4212(d) of title 38, United States Code are aware of, and in 
compliance with, the requirements of that section regarding submission 
of an annual report to the Secretary of Labor concerning employment of 
certain veterans: Provided, That the Secretary of Defense shall ensure 
that those Department of Defense contractors and other entities subject 
to section 4212(d) of title 38, United States Code which have contracts 
with the Department of Defense are notified of the potential penalties 
associated with failure to comply with these annual reporting 
requirements (including potential suspension or debarment from federal 
contracting): Provided further, That within 180 days of enactment of 
this Act the Secretary of Labor and the Secretary of Defense shall 
submit a report to Congress which--
         (1) using the most recent reporting data, details the number of 
    reports received from Department of Defense contractors and the 
    estimated number of Department of Defense contractors which are not 
    in compliance with these annual reporting requirements;
         (2) describes the steps taken by the Departments of Labor and 
    Defense in order to ensure compliance with section 4212(d) of title 
    38, United States Code;
         (3) describes any additional measures taken or planned to be 
    taken by the Departments of Labor and Defense to improve compliance 
    with section 4212(d) of title 38, United States Code pursuant to 
    this section; and
         (4) any further recommendations regarding additional action 
    (including changes in existing law) which may be necessary to 
    improve compliance with section 4212(d) of title 38, United States 
    Code.]
    Sec. [8119] 8052. Funds appropriated in title II of this Act for 
supervision and administration costs for facilities maintenance and 
repair, minor construction, or design projects may be obligated at the 
time the reimbursable order is accepted by the performing activity: 
Provided, That for the purpose of this section, supervision and 
administration costs includes all in-house Government cost.
    [Sec. 8120. (a) Limitation on Advance Billing.--During fiscal year 
1997, advance billing for services provided or work performed by the 
Defense Business Operations Fund activities of the Department of the 
Navy in excess of $1,000,000,000 is prohibited.
     (b) Revised Rates; Additional Surcharges.--In conjunction with the 
Under Secretary of Defense (Comptroller), the Secretary of the Navy 
shall develop a plan to revise fiscal year 1997 customer rates or 
establish additional surcharges so as to increase revenues to the 
Defense Business Operations Fund by at least an additional $500,000,000 
in executing orders accepted during fiscal year 1997.
     (c) Transfer Authority.--To the extent necessary to comply with any 
rate increase or new surcharge on rates in fiscal year 1997 established 
under subsection (b), the Secretary of the Navy shall transfer at least 
$500,000,000, from funds made available under subsection (d), into 
customer accounts of the Navy used to reimburse the Defense Business 
Operations Fund so as to provide customers with sufficient resources to 
pay the increased customer rates and additional surcharges. The transfer 
authority provided by this subsection is in addition to other transfer 
authority provided in this Act. The funds transferred shall be merged 
with and available for the same purposes, and for the same time period, 
as the appropriation to which transferred.
     (d) Source of Funds.--To provide funds for transfer under 
subsection (c), the amounts appropriated elsewhere in this Act for the 
following appropriation accounts are reduced by 2.0 percent: Aircraft 
Procurement, Navy; Weapons Procurement, Navy; Procurement of Ammunition, 
Navy and Marine Corps; Shipbuilding and Conversion, Navy; Other 
Procurement, Navy; and Research, Development, Test and Evaluation, Navy. 
These reductions shall be applied on a pro-rata basis to each line item, 
program element, program, project, subproject, and activity within each 
appropriation account.]
    [Sec. 8121. The Secretary of Defense may waive reimbursement of the 
cost of conferences, seminars, courses of instruction, or similar 
educational activities of the Asia-Pacific Center for Security Studies 
for military officers and civilian officials of foreign nations if the 
Secretary determines that attendance by such personnel, without 
reimbursement, is in the national security interest of the United 
States: Provided, That costs for which reimbursement is waived pursuant 
to this subsection shall be paid from appropriations available for the 
Asia-Pacific Center.]
    [Sec. 8122. (a) Of the amounts appropriated or otherwise made 
available by this Act for the Department of the Air Force, $2,000,000 
shall be available only for a facility at Lackland Air Force Base, Texas 
to provide comprehensive care and rehabilitation services to children 
with disabilities who are dependents of members of the Armed Forces.
     (b) Subject to subsection (c), the Secretary of the Air Force shall 
grant the funds made available under subsection (a) to the Children's 
Association for Maximum Potential (CAMP) for use by the association to 
defray the costs of designing and constructing the facility referred to 
in subsection (a).
     (c)(1) The Secretary may not make a grant of funds under subsection 
(b) until the Secretary and the association enter into an agreement 
under which the Secretary leases to the association the facility to be 
constructed using the funds.
     (2) The term of the lease under subsection (c)(1) may not be less 
than 25 years.
     (3) The Secretary may require such additional terms and conditions 
in connection with the lease as the Secretary considers appropriate to 
protect the interests of the United States.]
    [Sec. 8123. None of the funds appropriated by this Act may be 
obligated or expended--
         (1) to reduce the number of units of special operations forces 
    of the Army National Guard during fiscal year 1997;
         (2) to reduce the authorized strength of any such unit below 
    the strength authorized for the unit as of September 30, 1996; or
         (3) to apply any administratively imposed limitation on the 
    assigned strength of any such unit at less than the strength 
    authorized for that unit as of September 30, 1996.]
    [Sec. 8124. (a) The Secretary of the Army shall ensure that 
solicitations for contracts for unrestricted procurement to be entered 
into using funds appropriated for the Army by this Act include, where 
appropriate, specific goals for subcontracts with small businesses, 
small disadvantaged businesses, and women owned small businesses.
     (b) The Secretary shall ensure that any subcontract entered into 
pursuant to a solicitation referred to in subsection (a) that meets a 
specific goal referred to in that subsection is credited toward the 
overall goal of the Army for subcontracts with the businesses referred 
to in that subsection.]
    [Sec. 8125. (a) The Secretary of the Air Force and the Director of 
the Office of Personnel Management shall submit a joint report 
describing in detail the benefits, allowances, services, and any other 
forms of assistance which may or shall be provided to any civilian 
employee of the Federal Government or to any private citizen, or to the 
family of such an individual, who is injured or killed while traveling 
on an aircraft owned, leased, chartered, or operated by the Government 
of the United States.
     (b) The report required by subsection (a) above shall be submitted 
to the congressional defense committees and to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform and Oversight of the House of Representatives not later than 
December 15, 1996.]
    [Sec. 8126. (a) Not later than March 1, 1997, the Deputy Secretary 
of Defense shall submit to the congressional defense committees a report 
on Department of Defense procurements of propellant raw materials.
     (b) The report shall include the following:
         (1) The projected future requirements of the Department of 
    Defense for propellant raw materials, such as nitrocellulose.
         (2) The capacity, ability, and production cost rates of the 
    national technology and industrial base, including Government-owned, 
    contractor-operated facilities, contractor-owned and operated 
    facilities, and Government-owned, Government-operated facilities, 
    for meeting such requirements.
         (3) The national security benefits of preserving in the 
    national technology and industrial base contractor-owned and 
    operated facilities for producing propellant raw materials, 
    including nitrocellulose.
         (4) The extent to which the cost rates for production of 
    nitrocellulose in Government-owned, contractor-operated facilities 
    is lower because of the relationship of those facilities with the 
    Department of Defense than such rates would be without that 
    relationship.

[[Page 391]]

         (5) The advantages and disadvantages of permitting commercial 
    facilities to compete for award of Department of Defense contracts 
    for procurement of propellant raw materials, such as 
    nitrocellulose.]
    [Sec. 8127. Not later than six months after the date of the 
enactment of this Act, the Secretary of the Air Force shall submit to 
Congress a cost-benefit analysis of consolidating the ground station 
infrastructure of the Air Force that supports polar orbiting 
satellites.]

                     [(including transfer of funds)]

    [Sec. 8128. In addition to the amounts appropriated elsewhere in 
this Act, $100,000,000 is appropriated for defense against weapons of 
mass destruction: Provided, That the funds appropriated under this 
section may be transferred to and merged with funds appropriated 
elsewhere in this Act and that this transfer authority shall be in 
addition to any other transfer authority provided under this Act: 
Provided further, That of the funds made available by this section, 
$10,000,000 shall be transferred to and merged with funds appropriated 
in this Act for ``Procurement, Marine Corps'' and shall be available 
only for the procurement of equipment that enhances the capability of 
the Chemical-Biological Incident Response Force to respond to incidents 
of terrorism.]
    [Sec. 8129. The Secretary of Defense, in consultation with the 
Secretary of Health and Human Services and the Director of the Office of 
Personnel Management, shall submit a report to the congressional defense 
committees by February 1, 1997 containing recommendations regarding the 
establishment of a demonstration program under which covered 
beneficiaries under chapter 55 of title 10, United States Code, who are 
entitled to benefits under part A of the medicare program and who do not 
have access to TRICARE, would be permitted to enroll in a health 
benefits program offered through the Federal Employees Health Benefits 
Program under chapter 89 of title 5, United States Code.]
    [Sec. 8130. (a) Section 203 of H.R. 3230, the National Defense 
Authorization Act for Fiscal Year 1997, as passed by the Senate on 
September 10, 1996, is hereby amended by repealing section 203(a), 
section 203(c), and section 203(e).
     (b) The amendments made by subsection (a) shall take effect as of 
the date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1997 as if section 203 of such Act had been enacted as so 
amended.]
    [Sec. 8131. (a) Section 722(c) of the National Defense Authorization 
Act for Fiscal Year 1997 is amended--
         (1) by striking out paragraph (2);
         (2) by striking out ``(1)''; and
         (3) by redesignating subparagraphs (A) and (B) as paragraphs 
    (1) and (2), respectively.
     (b) The amendments made by subsection (a) shall take effect as of 
the date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1997 as if section 722 of such Act had been enacted as so 
amended.]
    [Sec. 8132. The Secretary of Defense shall complete a cost/benefit 
analysis on the establishment of a National Missile Defense Joint 
Program Office: Provided, That the Secretary of Defense shall submit a 
report on this analysis to the congressional defense committees no later 
than March 31, 1997: Provided further, That the Department of Defense 
shall take no action to establish any National Missile Defense Joint 
Program Office, to reassign service National Missile Defense roles and 
missions under any National Missile Defense Joint Program Office 
strategy or to relocate people under such a strategy prior to March 31, 
1997.]
    Sec. [8133] 8053. (a) [Notwithstanding any other provision of law, 
the] The Chief of the National Guard Bureau may permit the use of 
equipment of the National Guard Distance Learning Project by any person 
or entity on a space-available, reimbursable basis. The Chief of the 
National Guard Bureau shall establish the amount of reimbursement to 
fully recover the costs for such use on a case-by-case basis.
     (b) Amounts collected under subsection (a) shall be credited to 
funds available for the National Guard Distance Learning Project and be 
available to defray [the] all costs associated with the use of equipment 
of the project under that subsection. Such funds shall be available for 
such purposes without fiscal year limitation.
    [Sec. 8134. Using funds available by this Act or any other Act, the 
Secretary of the Air Force, pursuant to a determination under section 
2690 of title 10, United States Code, may implement cost-effective 
agreements for required heating facility modernization in the 
Kaiserslautern Military Community in the Federal Republic of Germany: 
Provided, That in the City of Kaiserslautern such agreements will 
include the use of United States anthracite as the base load energy for 
municipal district heat to the United States Defense installations: 
Provided further, That at Landstuhl Army Regional Medical Center and 
Ramstein Air Base, furnished heat may be obtained from private, regional 
or municipal services, if provisions are included for the consideration 
of United States coal as an energy source.]
    [Sec. 8135. (a) Section 2867 of the National Defense Authorization 
Act for Fiscal Year 1997 is amended--
         (1) by striking out ``Michael O'Callaghan Military Hospital'' 
    both places it appears in the text of such section and inserting in 
    lieu thereof ``Mike O'Callaghan Federal Hospital''; and
         (2) in the section heading, by striking out ``MICHAEL 
    O'CALLAGHAN MILITARY HOSPITAL'' and inserting in lieu thereof ``MIKE 
    O'CALLAGHAN FEDERAL HOSPITAL''.
     (b) The amendments made by subsection (a) shall take effect as of 
the date of the enactment of the National Defense Authorization Act for 
Fiscal Year 1997 and shall apply as if such amendments had been included 
insection 2867 of such Act when enacted.]
    [Sec. 8136. (a) In addition to any other reductions required by this 
Act, the following funds are hereby reduced from the following accounts 
in title IV of this Act in the specified amounts:
         ``Research, Development, Test and Evaluation, Army'', 
    $101,257,000;
         ``Research, Development, Test and Evaluation, Navy'', 
    $164,179,000;
         ``Research, Development, Test and Evaluation, Air Force'', 
    $289,992,000;
         ``Research, Development, Test and Evaluation, Defense-Wide'', 
    $119,483,000; and
         ``Developmental Test and Evaluation, Defense'', $5,641,000.
     (b) The reductions taken pursuant to subsection (a) shall be 
applied on a pro-rata basis by subproject within each R-1 program 
element as modified by this Act, except that no reduction may be taken 
against the funds made available to the Department of Defense for 
Ballistic Missile Defense.
     (c) Unless expressly exempted by subsection (b), each program 
element, program, project, subproject, and activity funded by title IV 
of this Act shall be allocated a pro-rata share of any of the reductions 
made by this section.
     (d) Not later than 60 days after enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report listing the specific funding reductions allocated to 
each category listed in subsection (c) above pursuant to this section.]
    [Sec. 8137. In addition to amounts appropriated or otherwise made 
available in this Act, $230,680,000 is hereby appropriated to the 
Department of Defense for anti-terrorism, counter-terrorism, and 
security enhancement programs and activities, as follows:
         ``Operation and Maintenance, Army'', $15,249,000;
         ``Operation and Maintenance, Navy'', $23,956,000;
         ``Operation and Maintenance, Marine Corps'', $600,000;
         ``Operation and Maintenance, Air Force'', $10,750,000;
         ``Operation and Maintenance, Defense-Wide'', $29,534,000;
         ``Operation and Maintenance, Navy Reserve'', $517,000;
         ``Other Procurement, Army'', $5,252,000;
         ``Other Procurement, Air Force'', $101,472,000;
         ``Procurement, Defense-Wide'', $35,350,000;
         ``Research, Development, Test and Evaluation, Defense-Wide'', 
    $8,000,000:
Provided, That such amounts in their entirety are designated by Congress 
as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended: 
Provided further, That funds appropriated in this section, or made 
available by transfer of such funds, for programs and activities of the 
Central Intelligence Agency shall remain available until September 30, 
1997: Provided further, That funds appropriated in this section, or made 
available by transfer of such funds, to any intelligence agency or 
activity of the United States Government shall be deemed to be 
specifically authorized by the Congress for purposes of section 504 of 
the National Security Act of 1947 (50 U.S.C. 414).]
    [Sec. 8138. Of the amounts provided in Titles I though VIII of this 
Act, $230,680,000 are permanently canceled: Provided, That the Secretary 
of Defense shall allocate the amount of budgetary resources canceled by 
this section on a pro-rata basis among each budget activity, activity 
group and subactivity group and each program, project or activity within 
each appropriations account.]

[[Page 392]]

    Sec. 8054. Of the funds provided in this Act under the heading, 
``Operation and Maintenance, Defense-wide'', $10,400,000 of the funds 
provided for fiscal year 1998 and $10,600,000 of the funds provided for 
fiscal year 1999 shall be deposited into the Foreign Military Sales 
Trust Fund to the credit of the Canadian Government pursuant to the 
exchange of notes between the Governments of the United States and 
Canada concerning environmental clean-up at former United States' 
military installations in Canada.
    Sec. 8055. During the current fiscal year and the following fiscal 
year, the amounts which are necessary for the operation and maintenance 
of the Fisher houses administered by the Departments of the Army, the 
Navy, and the Air Force are hereby appropriated, to be derived from 
amounts which are available in the applicable Fisher House trust fund 
established under 10 U.S.C. 2221 for the Fisher Houses of each such 
department.
    Sec. 8056. During the current fiscal year and the following fiscal 
year, refunds attributable to the use of the Government travel card by 
military personnel and civilian employees of the Department of Defense 
may be credited to operation and maintenance accounts of the Department 
of Defense which are current when the refunds are received.
    Sec. 8057. During the current fiscal year and the following fiscal 
year, not more than a total of $60,000,000 in each fiscal year in 
withdrawal credits may be made by the Marine Corps Supply Management 
activity group of the Navy Working Capital Fund, Department of Defense 
Working Capital Funds, to the credit of current applicable 
appropriations of a Department of Defense activity in connection with 
the acquisition of critical low density repairables that are capitalized 
into the Navy Working Capital Fund.
    Sec. 8058. The estimated proceeds of $400,000,000 from sales during 
fiscal year 1998 from the National Defense Stockpile that are in excess 
of routine, ongoing asset sales at levels consistent with agency 
operations in fiscal year 1986, shall be included in the budget baseline 
required by the Balanced Budget and Emergency Deficit Control Act of 
1985 and shall be counted as an offset to discretionary spending for the 
purposes of section 251 of the Act, notwithstanding section 257(e) of 
the Act.
    Sec. 8059. Notwithstanding 31 U.S.C. 3902, during the current fiscal 
year and the following fiscal year, interest penalties may be paid by 
the Department of Defense from funds financing the operation of the 
military department or defense agency with which the invoice or contract 
payment is associated. (Department of Defense Appropriations Act, 1997.)

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