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105th Congress Report
 1st Session HOUSE OF REPRESENTATIVES 105-340

_______________________________________________________________________

 NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

 ----------

 CONFERENCE REPORT

 to accompany

 H.R. 1119

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

 October 23, 1997.--Ordered to be printed

 NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

105th Congress Report
1st Session HOUSE OF REPRESENTATIVES 105-340

_______________________________________________________________________

 NATIONAL DEFENSE AUTHORIZATION

 ACT FOR FISCAL YEAR 1998

 __________

 CONFERENCE REPORT

 to accompany

 H.R. 1119

<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

 October 23, 1997.--Ordered to be printed

 C O N T E N T S

 ----------
 Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE....... 465
 Summary Statement of Conference Action....................... 465
 Summary Table of Authorizations.............................. 465
 Congressional Defense Committees............................. 472
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS................. 472
Title I--Procurement............................................. 472
 Funding Explanations......................................... 478
 UH-60 blackhawk...................................... 478
 Kiowa warrior........................................ 478
 Aircraft survivability equipment modifications....... 478
 Aircraft survivability equipment..................... 478
 Training devices..................................... 478
 Avenger.............................................. 482
 Hellfire............................................. 482
 Multiple launch rocket system rocket................. 482
 Multiple launch rocket system launcher............... 482
 Brilliant anti-armor submunition..................... 482
 Bradley base sustainment............................. 486
 Field artillery ammunition support vehicle........... 486
 M109A6 paladin howitzer.............................. 486
 Improved recovery vehicle............................ 486
 MK-19 grenade launcher............................... 507
 Semitrailers......................................... 518
 High mobility multi-purpose wheeled vehicle.......... 518
 Family of heavy tactical vehicles.................... 518
 Truck, tractor, line haul, M915/M916................. 518
 Defense satellite communications system.............. 519
 Satellite terminals.................................. 519
 NAVSTAR global positioning system.................... 519
 Army data distribution system........................ 519
 Area common user system modernization program........ 519
 Information system security program.................. 520
 Ground based common sensors.......................... 520
 Shortstop............................................ 520
 Night vision......................................... 520
 LOGTECH.............................................. 521
 Maneuver control system.............................. 521
 Automated data processing equipment.................. 521
 Railway car, flat, 100 ton........................... 521
 Training devices, nonsystem.......................... 521
 Close combat tactical trainers....................... 522
 AV-8B Harrier remanufacture.......................... 526
 T-45TS Goshawk....................................... 526
 EA-6 Series.......................................... 526
 P-3C anti-surface warfare improvement program........ 527
 Power plant changes.................................. 527
 Common Avionics Changes.............................. 527
 Tactical Tomahawk.................................... 531
 Joint Standoff Weapon................................ 531
 Penguin missile program.............................. 532
 Hellfire II missiles................................. 532
 Close-in weapon system surface mode upgrade.......... 532
 Pioneer logistic support............................. 532
 LPD-18............................................... 492
 Oceanographic survey ship............................ 492
 AN/WSN-7 inertial navigation system.................. 501
 Self-contained breathing apparatus................... 501
 Pollution control equipment.......................... 501
 AN/BPS-16 submarine navigation radar................. 501
 Cooperative engagement capability.................... 501
 Information Technology-21............................ 502
 Sonobuoy procurement................................. 502
 Mobile remote emitter simulator...................... 502
 NATO sea sparrow missile system low light level
 television......................................... 503
 AEGIS support equipment.............................. 503
 Light tactical wheeled vehicle replacement........... 507
 Chemical/biological incident response force equipment 507
 F-15E................................................ 537
 C-130J............................................... 537
 Predator Unmanned Aerial Vehicle..................... 537
 F-15 Modifications................................... 537
 F-16 modifications................................... 538
 Passenger safety and global air traffic management... 538
 Defense Airborne Reconnaissance Program.............. 538
 Theater airborne warning system...................... 539
 AGM-130 Powered GBU-15............................... 545
 AGM-65 Maverick...................................... 545
 Theater deployable communications.................... 550
 Automated document conversion system................. 555
 Advanced SEAL delivery system........................ 555
 Night firing scopes.................................. 555
 Overview............................................. 555
 Legislative Provisions Adopted............................... 559
 Subtitle A--Authorization of Appropriations.............. 559
 Chemical agents and munitions destruction program
 (sec. 107)......................................... 559
 Conduct of the chemical agents and munitions
 destruction program................................ 559
 Chemical stockpile emergency preparedness program
 (CSEPP)............................................ 560
 Subtitle B--Army Programs................................ 561
 Army helicopter modernization plan (sec. 111)........ 561
 Multiyear procurement authority for specified Army
 programs (sec. 112)................................ 562
 M113 vehicle modifications (sec. 113)................ 562
 Subtitle C--Navy Programs................................ 562
 New Attack Submarine program (sec. 121).............. 562
 CVN-77 nuclear aircraft carrier program (sec. 122)... 563
 Exclusion from cost limitation for Seawolf submarine
 program (sec. 123)................................. 564
 Subtitle D--Air Force Programs........................... 565
 Authorization for B-2 bomber program (sec. 131)...... 565
 ALR radar warning receivers (sec. 132)............... 565
 Analysis of requirements for replacement of engines
 on military aircraft derived from Boeing 707
 aircraft (sec. 133)................................ 565
 Subtitle E--Other Matters................................ 565
 Pilot program on sales of manufactured articles and
 services of certain army industrial facilities
 without regard to availability from domestic
 sources (sec. 141)................................. 565
 NATO Joint Surveillance/Target Attack Radar System
 (sec. 142)......................................... 566
 Legislative Provisions Not Adopted........................... 566
 Limitation on obligation of funds for the Seawolf
 submarine program.................................. 566
 Reduction in authorization of appropriations......... 566
 Airborne self-protection jammer...................... 566
 Prohibition on use of funds for acquisition or
 alteration of private drydocks..................... 567
Title II--Research, Development, Test, And Evaluation............ 567
 Funding Explanations......................................... 580
 University and industry research centers............. 580
 Combat vehicle and automotive advanced technology.... 580
 Plastic cased ammunition............................. 580
 Electronics and electronic devices................... 581
 Bioremediation, education, science, and technology
 program............................................ 581
 Plasma energy pyrolysis system....................... 581
 Radford Environmental Development and Management
 Program............................................ 582
 Military engineering technology...................... 582
 Medical Advanced Technology.......................... 582
 Combat vehicle and automotive advanced technology.... 582
 Information systems technology, superiority, and
 security........................................... 583
 Missile and rocket advanced technology............... 584
 Landmine warfare and barrier advanced technology..... 584
 Joint service small arms program..................... 584
 Armament enhancement initiative...................... 584
 Aviation-advanced development........................ 585
 All source analysis system........................... 585
 Light tactical wheeled vehicles...................... 585
 Engineer mobility equipment development program...... 585
 Automatic test equipment............................. 585
 Tactical Exploitation of National Capabilities....... 585
 Combined arms tactical trainer....................... 586
 Landmine warfare/barrier-engineering development..... 586
 Sense and destroy armament missile-engineering
 development........................................ 586
 Fuel cells........................................... 587
 Combat vehicle improvement program................... 588
 Aircraft modification/product improvement program.... 588
 Digitization......................................... 588
 Missile/air defense product improvement program...... 589
 Healthcare information protection demonstration...... 589
 End item industrial preparedness activities.......... 589
 Defense research sciences............................ 603
 Marine mammal research program....................... 603
 Power electronic building blocks..................... 603
 Power node control centers........................... 603
 Second source for carbon fibers...................... 604
 Titanium processing technology....................... 604
 Arctic climate observations.......................... 604
 National Oceanographic Partnership Program........... 604
 Antisubmarine warfare technology..................... 605
 Composite helicopter hangar.......................... 605
 Project ``M''........................................ 605
 Marine Corps advanced technology demonstration....... 606
 Freeze-dried blood research project.................. 606
 Littoral antisubmarine warfare technology
 demonstration...................................... 606
 Beach and surf zone obstacle clearance............... 607
 High frequency surface wave radar.................... 607
 Visualization architecture and technology............ 607
 Antisubmarine warfare systems development............ 607
 CV(X) carrier system development..................... 608
 Advanced submarine systems development............... 608
 Cruiser conversion program design.................... 609
 Intercooled recuperated gas turbine engine........... 609
 Automatic target recognition/optical correlation..... 609
 Marine Corps assault vehicles........................ 610
 Marine Corps ground combat/support systems........... 610
 Cooperative engagement capability.................... 610
 Composite engineered materials....................... 611
 Land attack systems technology....................... 611
 Nonlethal weapons and technologies of mass protection
 program............................................ 612
 CH-60 helicopter development......................... 613
 Parametric airborne dipping sonar.................... 613
 P-3 maritime patrol aircraft modernization program... 613
 H-1 upgrades......................................... 613
 Advanced ranging source.............................. 614
 High Power Discriminator............................. 614
 Maritime fire support demonstrator/arsenal ship...... 614
 Multi-purpose processor.............................. 616
 Advanced submarine tactical electronic combat system. 616
 CVN-77 research and development...................... 617
 Ship self-defense system............................. 617
 Safety and survivability enhancements................ 618
 E-2 eight-blade composite propeller system........... 618
 Battle force tactical trainer........................ 618
 Joint tactical combat training system................ 619
 Marine Corps communications systems.................. 619
 Marine Corps ground combat/supporting arms systems... 620
 Manufacturing technology programs.................... 620
 Integrated High Payoff Rocket Propulsion Technology.. 631
 Military Spaceplane.................................. 631
 Solar thermionics orbital transfer vehicle........... 631
 Joint air-to-surface standoff missile/standoff land
 attack missile-expanded response................... 632
 Major test and evaluation investment................. 633
 Smart monitoring system.............................. 633
 Rocket Systems Launch Program........................ 633
 Cruise missile defense............................... 633
 University research initiatives...................... 646
 Next generation internet............................. 646
 Chemical and biological defense program.............. 646
 Tactical technology.................................. 649
 Integrated command and control....................... 649
 Materials and electronics technology................. 649
 Explosives demilitarization technology............... 650
 Counterterror technical support program.............. 651
 Domestic emergency response to threats of terrorist
 use of weapons of mass destruction................. 652
 Counterproliferation support program................. 654
 Ballistic Missile Defense Organization funding....... 655
 Strategic environmental research and development
 program............................................ 660
 Advanced electronics technologies.................... 660
 Electronic commerce resource centers................. 661
 Land warfare technologies............................ 661
 Defense Reconnaissance Support Activities............ 662
 Special operations tactical systems development...... 663
 Special operations intelligence systems development.. 663
 Items of Special Interest.................................... 663
 Army research institute.............................. 663
 Aviation advanced technology......................... 664
 BOL expendable dispenser system...................... 664
 Department of Defense science and technology program. 664
 High temperature superconductor power applications... 664
 Improving collaboration between the Department of
 Defense and the Department of Energy laboratories.. 665
 Interferometric synthetic aperture radar............. 665
 Naval biodynamics laboratory data bank............... 665
 Strategic systems industrial capabilities............ 666
 Telemedicine......................................... 666
 Legislative Provisions Adopted............................... 667
 Subtitle A--Authorization of Appropriations.............. 667
 Dual-use technology program (sec. 203)............... 667
 Subtitle B--Program Requirements, Restrictions, and
 Limitations............................................ 667
 Manufacturing technology program (sec. 211).......... 667
 Report on operational field assessments program (sec.
 212)............................................... 668
 Joint Strike Fighter Program (sec. 213).............. 669
 Kinetic energy tactical anti-satellite technology
 program (sec. 214)................................. 669
 Micro-satellite technology development program (sec.
 215)............................................... 670
 High altitude endurance unmanned vehicle program
 (sec. 216)......................................... 670
 F-22 aircraft program (sec. 217)..................... 670
 Subtitle C--Ballistic Missile Defense Programs........... 671
 National Missile Defense Program (sec. 231).......... 671
 Budgetary treatment of amounts for procurement for
 ballistic missile defense programs (sec. 232)...... 671
 Cooperative Ballistic Missile Defense program (sec.
 233)............................................... 671
 Annual report on the threat posed to the United
 States by weapons of mass destruction, ballistic
 missiles, and cruise missiles (sec. 234)........... 671
 Director of Ballistic Missile Defense Organization
 (sec. 235)......................................... 672
 Repeal of required deployment dates for core theater
 missile defense programs (sec. 236)................ 672
 Subtitle D--Other Matters................................ 672
 Restructuring of National Oceanographic Partnership
 Program Organization (sec. 241).................... 672
 Maintenance and repair of real property at Air Force
 installations (sec. 242)........................... 672
 Expansion of eligibility for the defense experimental
 program to stimulate competitive research (sec.
 243)............................................... 674
 Bioassay testing of veterans exposed to ionizing
 radiation during military service (sec. 244)....... 674
 Sense of Congress regarding Comanche program (sec.
 245)............................................... 674
 Legislative Provisions Not Adopted........................... 675
 Strategic environmental research and development
 program............................................ 675
 Tactical unmanned aerial vehicles.................... 675
 Land Attack Standard Missile......................... 675
 Tactical High Energy Laser program................... 676
 Advanced anti-radiation guided missile program....... 676
 Federally funded research and development centers.... 676
 Department of Defense/Veterans Administration
 cooperative research program....................... 676
 Multitechnology integration in mixed-mode electronics 677
 Facial recognition technology program................ 677
 Explosives demilitarization technology............... 677
Title III--Operation and Maintenance............................. 678
 Items of Special Interest.................................... 702
 Arms control implementation.......................... 702
 National Defense Sealift Fund (NDSF)................. 702
 National imagery and mapping agency.................. 703
 Legislative Provisions Adopted............................... 704
 Subtitle A--Authorization of Appropriations.............. 704
 Fisher House trust funds (sec. 304).................. 704
 Refurbishment of M1A1 Tanks (sec. 306)............... 705
 Operation of prepositioned fleet, National Training
 Center, Fort Irwin, California (sec. 307).......... 705
 Refurbishment and installation of air search radar
 (sec. 308)......................................... 705
 Contracted training flight services (sec. 309)....... 705
 Procurement technical assistance programs (sec. 310). 705
 Operation of Fort Chaffee, Arkansas (sec. 311)....... 706
 Subtitle B--Military Readiness Issues.................... 706
 Monthly reports on allocation of funds within
 operation and maintenance budget subactivities
 (sec. 321)......................................... 706
 Expansion of scope of quarterly readiness report
 (sec. 322)......................................... 706
 Semiannual reports on transfers from high-priority
 readiness appropriations (sec. 323)................ 706
 Annual report on aircraft inventory (sec. 324)....... 706
 Administrative actions adversely affecting military
 training or other readiness activities (sec. 325).. 707
 Common measurement of operations and personnel tempo
 (sec. 326)......................................... 707
 Inclusion of Air Force depot maintenance as operation
 and maintenance budget activity group (sec. 327)... 707
 Prohibition of implementation of tiered readiness
 system (sec. 328).................................. 707
 Report on military readiness requirements of the
 Armed Forces (sec. 329)............................ 708
 Assessment of cyclical readiness posture of the Armed
 Forces (sec. 330).................................. 708
 Report on military exercises conducted under certain
 training exercise programs (sec. 331).............. 709
 Report on overseas deployment (sec. 332)............. 709
 Subtitle C--Environmental Provisions..................... 709
 Revision of membership terms for Strategic
 Environmental Research and Development Program
 Scientific Advisory Board (sec. 341)............... 709
 Amendment to authority to enter into agreements with
 other agencies in support of environmental
 technology certification (sec. 342)................ 710
 Modifications of authority to store and dispose of
 non-defense toxic and hazardous materials (sec.
 343)............................................... 710
 Annual report on payments and activities in response
 to fines and penalties assessed under environmental
 laws (sec. 344).................................... 710
 Annual report on environmental activities of the
 Department of Defense overseas (sec. 345).......... 711
 Review of existing environmental consequences of the
 presence of the United States Armed Forces in
 Bermuda (sec. 346)................................. 711
 Sense of Congress on deployment of United States
 Armed Forces abroad for environmental preservation
 activities (sec. 347).............................. 711
 Recovery and sharing of costs of environmental
 restoration at Department of Defense sites (sec.
 348)............................................... 711
 Partnerships for investment in innovative
 environmental technologies (sec. 349).............. 712
 Procurement of recycled copier paper (sec. 350)...... 713
 Pilot program for the sale of air pollution emission
 reduction incentives (sec. 351).................... 713
 Subtitle D--Depot-Level Activities....................... 713
 Definition of Depot-Level Maintenance and Repair
 (sec. 355)......................................... 714
 Core Logistics Capabilities of Department of Defense
 (sec. 356)......................................... 714
 Increase in Percentage of Depot-Level Maintenance and
 Repair that may be Contracted for Performance by
 Non-Government Personnel (sec. 357)................ 715
 Annual Report on Depot-Level Maintenance and Repair
 (sec. 358)......................................... 715
 Requirement for use of Competitive Procedures in
 Contracting for Performance of Depot-Level
 Maintenance and Repair Workloads Formerly Performed
 at Closed or Realigned Military Installations (sec.
 359)............................................... 715
 Clarification of Prohibition on Management of Depot
 Employees by Constraints on Personnel Levels (sec.
 360)............................................... 718
 Centers of Industrial and Technical Excellence (sec.
 361)............................................... 718
 Extension of Authority for Aviation Depots and Naval
 Shipyards to Engage in Defense Related Production
 and Services (sec. 362)............................ 719
 Repeal of Conditional Repeal of Certain Depot-Level
 Maintenance and Repair laws and a Related Reporting
 Requirement (sec. 363)............................. 719
 Personnel Reductions, Army Depots Participating in
 Army Workload and Performance System (sec. 364).... 719
 Report on Allocation of Core Logistics Activities
 Among Department of Defense Facilities and Private
 Sector Facilities (sec. 365)....................... 720
 Review of Use of Temporary Duty Assignments for Ship
 Repair and Maintenance (sec. 366).................. 720
 Sense of Congress Regarding Realignment of
 Performance of Ground Communication-Electronic
 Workload (sec. 367)................................ 720
 Subtitle E--Commissaries and Nonappropriated Fund........ 720
 Merchandise and pricing requirements for commissary
 stores (sec. 372).................................. 720
 Limitation on noncompetitive procurement of brand-
 name commercial items for resale in commissary
 stores (sec. 373).................................. 721
 Treatment of revenues derived from commissary store
 activities (sec. 374).............................. 721
 Maintenance, repair, and renovation of Armed Forces
 Recreation Center, Europe (sec. 375)............... 721
 Plan for use of public and private partnerships to
 benefit morale, welfare and recreation activities
 (sec. 376)......................................... 721
 Instrumentalities............................................ 722
 Subtitle F--Other Matters................................ 722
 Assistance to local educational agencies that benefit
 dependents of members of the armed forces and
 Department of Defense civilian employees (sec. 381) 722
 Center for Excellence in Disaster Management and
 Humanitarian Assistance (sec. 382)................. 722
 Applicability of Federal printing requirements to
 Defense Automated Printing Service (sec. 383)...... 722
 Study and notification requirements for conversion of
 commercial and industrial type functions to
 contractor performance (sec. 384).................. 722
 Collection and retention of cost information data on
 contracted out services and functions (sec. 385)... 723
 Financial assistance to support additional duties
 assigned to Army National Guard (sec. 386)......... 723
 Competitive procurement of printing and duplication
 services (sec. 387)................................ 723
 Continuation and expansion of demonstration program
 to identify overpayments made to vendors (sec. 388) 723
 Standard forms regarding performance work statement
 and request for proposal for conversion of services
 and functions at military installations (sec. 389). 724
 Base operations support for military installations on
 Guam (sec. 390).................................... 724
 Warranty claims recovery pilot program (sec. 391).... 724
 Program to investigate fraud, waste, and abuse within
 Department of Defense (sec. 392)................... 724
 Multitechnology automated reader card demonstration
 program (sec. 393)................................. 725
 Plan for reduction in overhead costs of inventory
 control points (sec. 394).......................... 725
 Schedule for implementation of best inventory
 management practices at Defense Logistic Agency
 (sec. 395)......................................... 725
 Legislative Provisions Not Adopted........................... 726
 Quarterly reports on execution of operation and
 maintenance appropriations......................... 726
 Exclusion of Certain Large Maintenance and Repair
 Projects from Percentage Limitation on Contracting
 for Depot-Level Maintenance........................ 726
 Revision of report requirement of Navy program to
 monitor ecological effects of organotin............ 726
 Pilot program to test an alternative technology for
 eliminating solid and liquid waste emissions during
 ship operations.................................... 727
 Transfer of jurisdiction over exchange, commissary,
 and morale, welfare and recreation activities to
 Under sec.retary of Defense Comptroller............ 727
 Authorized use of appropriated funds for relocation
 of Navy Exchange Service Command................... 727
 Prohibition on use of Special Operations Command
 budget for base operation support.................. 728
 Availability of funds for separation pay for defense
 acquisition personnel.............................. 728
 Competitive procurement of finance and accounting
 services........................................... 728
 Competitive procurement of services to dispose of
 surplus defense property........................... 728
 Competitive procurement of functions performed by
 Defense Information Systems Agency................. 729
 Competitive procurement of commercial and industrial
 type functions by defense agencies................. 729
 Consolidation of procurement technical assistance
 centers and electronic commerce resource centers... 729
 Risk assessments under the defense environmental
 restoration program................................ 729
 Tagging system for identification of hydrocarbon
 fuels used by the Department of Defense............ 729
 Report on options for the disposal of chemical
 weapons and agents................................. 730
 Integration of military exchange services............ 730
Title IV--Military Personnel Authorizations...................... 730
 Legislative Provisions Adopted............................... 730
 Subtitle A--Active Forces................................ 730
 End strengths for active forces (sec. 401)........... 730
 Permanent end strength levels to support two major
 regional contingencies (sec. 402).................. 731
 Subtitle B--Reserve Forces............................... 732
 End strengths for Selected Reserve (sec. 411)........ 732
 End strengths for Reserves on active duty in support
 of the Reserves (sec. 412)......................... 733
 End strengths for military technicians (dual status)
 (sec. 413)......................................... 734
 Subtitle C--Authorization of Appropriations.............. 735
 Authorization of appropriations for military
 personnel (sec. 421)............................... 735
 Legislative Provisions Not Adopted........................... 735
 Increase in number of members in certain grades
 authorized to serve on active duty in support of
 the reserves....................................... 735
Title V--Military Personnel Policy............................... 736
 Items of Special Interest.................................... 736
 Personal Finance Training............................ 736
 Sequester of Department of Defense funds as a result
 of a prohibition against military recruiting on
 campuses of Connecticut State colleges and
 universities....................................... 736
 Legislative Provisions Adopted............................... 736
 Subtitle A--Officer Personnel Policy..................... 736
 Limitation on number of general and flag officers who
 may serve in positions outside their own service
 (sec. 501)......................................... 736
 Exclusion of certain retired officers from limitation
 on period of recall to active duty (sec. 502)...... 737
 Clarification of officers eligible for consideration
 by promotion boards (sec. 503)..................... 737
 Authority to defer mandatory retirement for age of
 officers serving as chaplains (sec. 504)........... 737
 Increase in number of officers allowed to be frocked
 to grades of colonel and Navy captain (sec. 505)... 738
 Increased years of commissioned service for mandatory
 retirement of regular generals and admirals in
 grades above major general and rear admiral (sec.
 506)............................................... 738
 Uniform policy for requirement of exemplary conduct
 by commanding officers and others in authority
 (sec. 507)......................................... 738
 Report on the command selection process for District
 Engineers of the Army Corps of Engineers (sec. 508) 738
 Subtitle B--Reserve Component Matters.................... 739
 Individual Ready Reserve activation authority (sec.
 511)............................................... 739
 Termination of Mobilization Income Insurance Program
 (sec. 512)......................................... 739
 Correction of inequities in medical and dental care
 and death and disability benefits for reserve
 members who incur or aggravate an illness in the
 line of duty (sec. 513)............................ 739
 Authority to permit non-unit assigned officers to be
 considered by vacancy promotion board to general
 officer grades (sec. 514).......................... 739
 Prohibition on use of Air Force Reserve AGR personnel
 for Air Force base security functions (sec. 515)... 739
 Involuntary separation of reserve officers in an
 inactive status (sec. 516)......................... 740
 Federal status of service by National Guard members
 as honor guards at funerals of veterans (sec. 517). 740
 Subtitle C--Military Technicians......................... 740
 Authority to retain on the reserve active-status list
 until age 60 military technicians in the grade of
 brigadier general (sec. 521)....................... 740
 Military technicians (dual status) (sec. 522)........ 741
 Non-dual status military technicians (sec. 523)...... 741
 Report on feasibility and desirability of conversion
 of AGR personnel to military technicians (dual
 status) (sec. 524)................................. 741
 Subtitle D--Measures To Improve Recruit Quality and
 Reduce Recruit Attrition............................... 742
 Reform of military recruiting systems (sec. 531)..... 742
 Improvements in medical prescreening of applicants
 for military service (sec. 532).................... 742
 Improvements in physical fitness of recruits (sec.
 533)............................................... 742
 Subtitle E--Military Education and Training.............. 743
 Part I--Officer Education Programs....................... 743
 Requirement for candidates for admission to United
 States Naval Academy to take oath of allegiance
 (sec. 541)......................................... 743
 Service academy foreign exchange program (sec. 542).. 743
 Reimbursement of expenses incurred for instruction at
 service academies of persons from foreign countries
 (sec. 543)......................................... 743
 Continuation of support to senior military colleges
 (sec. 544)......................................... 743
 Report on making United States nationals eligible for
 participation in Senior Reserve Officers' Training
 Corps (sec. 545)................................... 744
 Coordination of establishment and maintenance of
 Junior Reserve Officers' Training Corps units to
 maximize enrollment and enhance efficiency (sec.
 546)............................................... 744
 Part II--Other Education Matters........................ 744
 United States Naval Postgraduate School (sec. 551)... 744
 Community College of the Air Force (sec. 552)........ 745
 Preservation of entitlement to educational assistance
 of members of the Selected Reserve serving on
 active duty in support of a contingency operation
 (sec. 553)......................................... 745
 Part III--Training of Army Drill Sergeants............... 745
 Reform of Army drill sergeant selection and training
 process (sec. 556)................................. 745
 Training in human relations matters for Army drill
 sergeant trainees (sec. 557)....................... 745
 Subtitle F--Commission on Military Training and Gender-
 Related Issues......................................... 746
 Subtitle G--Military Decorations and Awards.............. 746
 Purple Heart to be awarded only to members of the
 Armed Forces (sec. 571)............................ 746
 Eligibility for Armed Forces Expeditionary Medal for
 participation in Operation Joint Endeavor or
 Operation Joint Guard (sec. 572)................... 746
 Clarification of eligibility of members of Ready
 Reserve for award of service medal for heroism
 (sec. 574)......................................... 747
 One-year extension of period for receipt of
 recommendations for decorations and awards for
 certain military intelligence personnel (sec. 575). 747
 Eligibility of certain World War II military
 organizations for award of unit decorations (sec.
 576)............................................... 747
 Retroactivity of Medal of Honor special pension (sec.
 577)............................................... 747
 Subtitle H--Military Justice Matters..................... 747
 Subtitle I--Other Matters............................... 748
 Sexual harassment investigations and reports (sec.
 591)............................................... 748
 Sense of the Senate regarding study of matters
 relating to gender equity in the Armed Forces (sec.
 592)............................................... 748
 Authority for personnel to participate in management
 of certain non-Federal entities (sec. 593)......... 748
 Treatment of participation of members in Department
 of Defense civil military programs (sec. 594)...... 748
 Comptroller General study of Department of Defense
 civil military programs (sec. 595)................. 749
 Establishment of public affairs specialty in the Army
 (sec. 596)......................................... 749
 Grade of defense attache in France (sec. 597)........ 749
 Report on crew requirements of WC-130J aircraft (sec.
 598)............................................... 749
 Improvement of missing persons authorities applicable
 to Department of Defense (sec. 599)................ 749
 Legislative Provisions Not Adopted........................... 751
 Time-in-grade requirements for reserve commissioned
 officers retired during the drawdown period........ 751
 Grade requirement for officers eligible to serve on
 involuntary separation boards...................... 751
 Study of new decorations for injury or death in line
 of duty............................................ 751
 Suspension of Temporary Early Retirement Authority... 751
 Treatment of educational accomplishments of National
 Guard ChalleNGe program participants............... 751
 Repeal of certain staffing and safety requirements
 for the Army Ranger Training Brigade............... 751
Title VI--Compensation and Other Personnel Benefits.............. 752
 Legislative Provisions Adopted............................... 752
 Subtitle A--Pay and Allowances........................... 752
 Increase in basic pay for fiscal year 1998 (sec. 601) 752
 Reform of basic allowance for subsistence (sec. 602). 752
 Consolidation of basic allowance for quarters,
 variable housing allowance, and overseas housing
 allowances (sec. 603).............................. 752
 Revision of authority to adjust compensation
 necessitated by reform of subsistence and housing
 allowances (sec. 604).............................. 753
 Protection of total compensation of members while
 performing certain duty (sec. 605)................. 753
 Subtitle B--Bonuses and Special and Incentive Pays....... 753
 One-year extension of certain bonuses and special pay
 authorities for reserve forces (sec. 611).......... 753
 One-year extension of certain bonuses and special pay
 authorities for nurse officer candidates,
 registered nurses, and nurse anesthetists (sec.
 612)............................................... 754
 One-year extension of authorities relating to payment
 of other bonuses and special pays (sec. 613)....... 754
 Increase in minimum monthly rate of hazardous duty
 incentive pay for certain members (sec. 614)....... 755
 Increase in aviation career incentive pay (sec. 615). 755
 Modification of aviation officer retention bonus
 (sec. 616)......................................... 755
 Availability of multiyear retention bonus for dental
 officers (sec. 617)................................ 755
 Increase in variable and additional special pays for
 certain dental officers (sec. 618)................. 755
 Availability of special pay for duty at designated
 hardship duty locations (sec. 619)................. 756
 Definition of sea duty for purposes of career sea pay
 (sec. 620)......................................... 756
 Modification of Selected Reserve reenlistment bonus
 (sec. 621)......................................... 756
 Modification of Selected Reserve enlistment bonus for
 former enlisted members (sec. 622)................. 756
 Expansion of reserve affiliation bonus to include
 Coast Guard Reserve (sec. 623)..................... 757
 Increase in special pay and bonuses for nuclear-
 qualified officers (sec. 624)...................... 757
 Provision of bonuses in lieu of special pay for
 enlisted members extending tours of duty at
 designated locations overseas (sec. 625)........... 757
 Increase in amount of family separation allowance
 (sec. 626)......................................... 757
 Deadline for payment of Ready Reserve muster duty
 allowance (sec. 627)............................... 757
 Subtitle C--Travel and Transportation Allowances......... 758
 Travel and transportation allowances for dependents
 before approval of member's court-martial sentence
 (sec. 631)......................................... 758
 Dislocation allowance (sec. 632)..................... 758
 Subtitle D--Retired Pay, Survivor Benefits, and Related
 Matters................................................ 758
 One-year opportunity to discontinue participation in
 Survivor Benefit Plan (sec. 641)................... 758
 Time in which change in survivor benefit coverage
 from former spouse to spouse may be made (sec. 642) 758
 Review of Federal former spouse protection laws (sec.
 643)............................................... 759
 Annuities for certain military surviving spouses
 (sec. 644)......................................... 759
 Administration of benefits for so-called minimum
 income widows (sec. 645)........................... 759
 Subtitle E--Other Matters................................ 759
 Loan repayment program for commissioned officers in
 certain health professions (sec. 651).............. 759
 Conformance of NOAA commissioned officers separation
 pay to separation pay for members of other
 uniformed services (sec. 652)...................... 760
 Eligibility of Public Health Service officers and
 NOAA commissioned corps officers for reimbursement
 of adoption expenses (sec. 653).................... 760
 Payment of back quarters and subsistence allowances
 to World War II veterans who served as guerrilla
 fighters in the Philippines (sec. 654)............. 760
 Subsistence of members of the Armed Forces above the
 poverty level (sec. 655)........................... 760
 Legislative Provisions Not Adopted........................... 761
 Space available travel for members of Selected
 Reserve............................................ 761
 Implementation of Department of Defense Supplemental
 Food Program for military personnel outside the
 United States...................................... 761
 Paid-up coverage under Survivor Benefit Plan......... 761
Title VII--Health Care Provisions................................ 761
 Legislative Provisions Adopted............................... 761
 Subtitle A--Health Care Services......................... 761
 Expansion of retiree dental insurance plan to include
 surviving spouse and child dependents of certain
 deceased members (sec. 701)........................ 761
 Provision of prosthetic devices to covered
 beneficiaries (sec. 702)........................... 761
 Study concerning the provision of comparative
 information (sec. 703)............................. 762
 Subtitle B--TRICARE Program.............................. 762
 Addition of definition of TRICARE program to title 10
 (sec. 711)......................................... 762
 Plan for expansion of managed care option of TRICARE
 program (sec. 712)................................. 762
 Subtitle C--Uniformed Services Treatment Facilities...... 762
 Implementation of designated provider agreements for
 Uniformed Services Treatment Facilities (sec. 721). 762
 Continued acquisition of reduced-cost drugs (sec.
 722)............................................... 763
 Subtitle D--Other Changes to Existing Laws Regarding
 Health Care Management................................. 763
 Improvements in health care coverage and access for
 members assigned to certain duty locations far from
 sources of care (sec. 731)......................... 763
 Dental insurance plan coverage for retirees of the
 Public Health Service and NOAA (sec. 734).......... 764
 Consistency between CHAMPUS and Medicare in payment
 rates for services (sec. 735)...................... 764
 Use of personal services contracts for provision of
 health care services and legal protection for
 providers (sec. 736)............................... 765
 Standard form and requirements regarding claims for
 payment for services (sec. 738).................... 765
 Chiropractic health care demonstration program (sec.
 739)............................................... 766
 Subtitle E--Other Matters................................ 766
 Continued admission of civilians as students in
 physician assistant training program of Army
 Medical Department (sec. 741)...................... 766
 Payment for emergency health care overseas for
 military and civilian personnel of the On-Site
 Inspection Agency (sec. 742)....................... 766
 Authority for agreement for use of medical resource
 facility, Alamogordo, New Mexico (sec. 743)........ 766
 Disclosures of cautionary information on prescription
 medications (sec. 744)............................. 767
 Competitive procurement of certain ophthalmic
 services (sec. 745)................................ 767
 Comptroller General study of adequacy and effect of
 maximum allowable charges for physicians under
 CHAMPUS (sec. 746)................................. 767
 Comptroller General study of Department of Defense
 pharmacy programs (sec. 747)....................... 767
 Comptroller General study of Navy graduate medical
 education program (sec. 748)....................... 767
 Study of expansion of pharmaceuticals by mail program
 to include additional Medicare-eligible covered
 beneficiaries (sec. 749)........................... 768
 Comptroller General study of requirement for military
 medical facilities in the National Capital Region
 (sec. 750)......................................... 768
 Report on policies and programs to promote healthy
 lifestyles for members of the Armed Forces and
 their dependents (sec. 751)........................ 768
 Sense of Congress regarding quality health care for
 retirees (sec. 752)................................ 768
 Subtitle F--Persian Gulf Illness......................... 768
 Plan for health care services for Persian Gulf
 veterans (sec. 762)................................ 768
 Comptroller General study of revised disability
 criteria for physical evaluation boards (sec. 763). 769
 Medical care for certain reserves who served in
 Southwest Asia during the Persian Gulf War (sec.
 764)............................................... 769
 Improved medical tracking system for members deployed
 overseas in contingency or combat operations (sec.
 765)............................................... 769
 Notice of use of investigational new drugs or drugs
 unapproved for their applied use (sec. 766)........ 769
 Sense of Congress regarding the deployment of
 specialized units for detecting and monitoring
 chemical, biological, and similar hazards in a
 theater of operations (sec. 768)................... 770
 Sense of Congress concerning Gulf War illness (sec.
 771)............................................... 770
 Legislative Provisions Not Adopted........................... 770
 Medical personnel conscience clause.................. 770
Title VIII--Acquisition Policy, Acquisition Management, and
 Related Matters................................................ 771
 Items of Special Interest.................................... 771
 Cost accounting standards board...................... 771
 Legislative Provisions Adopted............................... 771
 Subtitle A--Amendments to General Contracting
 Authorities, Procedures, and Limitations............... 771
 Expansion of authority to enter into contracts
 crossing fiscal years to all severable service
 contracts not exceeding a year (sec. 801).......... 771
 Vesting of title in the United States under contracts
 paid under progress payment arrangements or similar
 arrangements (sec. 802)............................ 772
 Restriction on undefinitized contract actions (sec.
 803)............................................... 772
 Limitation and report on payment of restructuring
 costs under defense contracts (sec. 804)........... 772
 Multiyear procurement contracts (sec. 806)........... 772
 Audit of procurement of military clothing and
 clothing-related items by military installations in
 the United States (sec. 807)....................... 773
 Limitation on allowability of compensation for
 certain contractor personnel (sec. 808)............ 773
 Elimination of certification requirement for grants
 (sec. 809)......................................... 773
 Repeal of limitation on adjustment of shipbuilding
 contracts (sec. 810)............................... 774
 Item-by-item and country-by-country waivers of
 domestic source limitations (sec. 811)............. 774
 Subtitle B--Acquisition Assistance Programs.............. 774
 One-year extension of pilot mentor-protege program
 (sec. 821)......................................... 774
 Test program for negotiation of comprehensive
 subcontracting plans (sec. 822).................... 774
 Subtitle C--Administrative Provisions.................... 775
 Retention of expired funds during the pendency of
 contract litigation (sec. 831)..................... 775
 Protection of certain information from disclosure
 (sec. 832)......................................... 775
 Unit cost reports (sec. 833)......................... 775
 Plan for providing contracting information to general
 public and small business (sec. 834)............... 775
 Two-year extension of crediting of certain purchases
 toward meeting subcontracting goals (sec. 835)..... 776
 Subtitle D--Other Matters................................ 776
 Repeal of certain acquisition requirements and
 reports (sec. 841)................................. 776
 Use of major range and test facility installations by
 commercial entities (sec. 842)..................... 776
 Requirement to develop and maintain list of firms not
 eligible for defense contracts (sec. 843).......... 776
 Sense of Congress regarding allowability of costs of
 employee stock ownership plans (sec. 844).......... 777
 Expansion of personnel eligible to participate in
 demonstration project relating to acquisition
 workforce (sec. 845)............................... 777
 Time for submission of annual report relating to Buy
 American Act (sec. 846)............................ 777
 Repeal of requirement for contractor guarantees on
 major weapon systems (sec. 847).................... 778
 Requirements relating to micro-purchases (sec. 848).. 778
 Promotion rate for officers in an acquisition corps
 (sec. 849)......................................... 778
 Use of electronic commerce in federal procurement
 (sec. 850)......................................... 779
 Conformance of policy on performance based management
 of civilian acquisition programs with policy
 established for defense acquisition programs (sec.
 851)............................................... 779
 Modification of process requirements for the
 solutions-based contracting pilot program (sec.
 852)............................................... 779
 Guidance and standards for defense acquisition
 workforce training requirements (sec. 853)......... 779
 Study and report to Congress assessing dependence on
 foreign sources for resistors and capacitors (sec.
 854)............................................... 780
 Department of Defense and Federal Prison Industries
 joint study (sec. 855)............................. 780
 Legislative Provisions Not Adopted........................... 780
 Domestic source limitation amendments................ 780
 Repeal of expiration of domestic source limitation
 for certain naval vessel propellers................ 780
 Availability of simplified procedures to commercial
 item procurements.................................. 781
 Price preference for small and disadvantaged
 businesses......................................... 781
Title IX--Department of Defense Organization and Management...... 781
 Legislative Provisions Adopted............................... 781
 Subtitle A--Department of Defense Positions and
 Organizations and Other General Matters................ 781
 Senior Representatives of the National Guard Bureau
 (sec. 901)......................................... 781
 Use of CINC Initiative Fund for force protection
 (sec. 902)......................................... 783
 Revision to required frequency for provision of
 policy guidance for contingency plans (sec. 903)... 783
 Annual justification for Department of Defense
 advisory committees (sec. 904)..................... 783
 Defense Airborne Reconnaissance Office (sec. 905).... 783
 Termination of Armed Services Patent Advisory Board
 (sec. 906)......................................... 785
 Coordination of Department of Defense criminal
 investigations and audits (sec. 907)............... 785
 Subtitle B--Department of Defense Personnel Management... 786
 Reduction in personnel assigned to management
 headquarters and headquarters support activities
 (sec. 911)......................................... 786
 Additional reduction in defense acquisition workforce
 (sec. 912)......................................... 786
 Subtitle C--Department of Defense Schools and Centers.... 787
 Professional military education schools (sec. 921)... 787
 Center for Hemispheric Defense Studies (sec. 922).... 787
 Correction to reference to George C. Marshall
 European Center for Security Studies (sec. 923).... 787
 Subtitle D--Department of Defense Intelligence-Related
 Matters................................................ 787
 Transfer of certain military department programs from
 TIARA budget aggregation (sec. 931)................ 787
 Report on coordination of access of commanders and
 deployed units to intelligence collected and
 analyzed by the intelligence community (sec. 932).. 788
 Protection of imagery, imagery intelligence, and
 geospatial information and data (sec. 933)......... 788
 POW/MIA intelligence analysis (sec. 934)............. 788
 Legislative Provisions Not Adopted........................... 788
 Limitation on operation and support funds for the
 office of the Secretary of Defense................. 788
 Center for the Study of Chinese Military Affairs..... 789
 White House Communications Agency.................... 789
 Personnel reductions in the United States
 Transportation Command............................. 789
 Commission on Defense Organization and Streamlining.. 790
 Principal duty of Assistant Secretary of Defense for
 Special perations and Low Intensity Conflict....... 790
Title X--General Provisions...................................... 790
 Items of Special Interest.................................... 790
 Global Positioning System alternate master control
 station............................................ 790
 Legislative Provisions Adopted............................... 791
 Subtitle A--Financial Matters............................ 791
 Transfer authority (sec. 1001)....................... 791
 Incorporation of classified annex (sec. 1002)........ 791
 Authority for obligation of unauthorized fiscal year
 1997 defense appropriations (sec. 1003)............ 791
 Authorization of prior emergency supplemental
 appropriations for fiscal year 1997 (sec. 1004).... 792
 Increase in fiscal year 1996 transfer authority (sec.
 1005).............................................. 792
 Revision of authority for Fisher House trust funds
 (sec. 1006)........................................ 792
 Flexibility in financing closure of certain
 outstanding contracts for which a small final
 payment is due (sec. 1007)......................... 792
 Biennial financial management improvement plan (sec.
 1008).............................................. 792
 Estimates and requests for procurement and military
 construction for the reserve components (sec. 1009) 792
 Sense of Congress regarding funding for reserve
 component modernization not requested in the
 President's budget (sec. 1010)..................... 793
 Management of working-capital funds (sec. 1011....... 793
 Authority of Secretary of Defense to settle claims
 relating to pay, allowances, and other benefits
 (sec. 1012)........................................ 794
 Payment of claims by members for loss of personnel
 property due to flooding in Red River Basin (sec.
 1013).............................................. 794
 Advances for payment of public services (sec. 1014).. 794
 United States Man and the Biosphere Program
 limitation (sec. 1015)............................. 794
 Subtitle B--Naval Vessels and Shipyards.................. 795
 Procedures for sale of vessels stricken from the
 Naval Vessel Register (sec. 1021).................. 795
 Authority to enter into a long-term charter for a
 vessel in support of the Surveillance Towed-Array
 Sensor (SURTASS) program (sec. 1022)............... 795
 Transfer of two specified obsolete tugboats of the
 Army (sec. 1023)................................... 795
 Congressional review period with respect to transfer
 of the ex-U.S.S Midway (CV-41) and ex.-U.S.S.
 Hornet (CV-12) (sec. 1024)......................... 795
 Transfers of naval vessels to certain foreign
 countries (sec. 1025).............................. 795
 Reports relating to export of vessels that may
 contain polychlorinated biphenyls (sec. 1026)...... 796
 Conversion of defense capability preservation
 authority to Navy shipbuilding capability
 preservation authority (sec. 1027)................. 797
 Subtitle C--Counter-Drug Activities...................... 797
 Use of National Guard for State drug interdiction and
 counterdrug activities (sec. 1031)................. 799
 Authority to provide additional support for counter-
 drug activities of the government of Mexico (sec.
 1032).............................................. 799
 Authority to provide additional support for counter-
 drug activities of Peru and Colombia (sec. 1033)... 799
 Annual report on development and deployment of
 narcotics detection technology (sec. 1034)......... 800
 Subtitle D--Miscellaneous Report Requirements and Repeals 800
 Repeal of miscellaneous reporting requirements (sec.
 1041).............................................. 800
 Study of transfer of Modular Airborne Fire Fighting
 System (sec. 1042)................................. 800
 Overseas infrastructure requirements (sec. 1043)..... 800
 Additional matters for annual report on activities of
 the General Accounting Office (sec. 1044).......... 801
 Eye safety at small arms firing ranges (sec. 1045)... 801
 Reports on Department of Defense procedures for
 investigating military aviation accidents and for
 notifying and assisting families of victims (sec.
 1046).............................................. 801
 Subtitle E--Matters Relating to Terrorism................ 802
 Oversight of counterterrorism and antiterrorism
 programs and activities of the United States (sec.
 1051).............................................. 802
 Report on policies and practices relating to the
 protection of members of the armed forces abroad
 from terrorist attack (sec. 1052).................. 802
 Subtitle F--Matters Relating to Defense Property......... 803
 Lease of nonexcess personal property of the military
 departments (sec. 1061)............................ 803
 Lease of nonexcess property of defense agencies (sec.
 1062).............................................. 803
 Donation of excess chapel property to churches
 damaged or destroyed by arson or other acts of
 terrorism (sec. 1063).............................. 803
 Authority of the Secretary of Defense concerning
 disposal of assets under cooperative agreements on
 air defense in Central Europe (sec. 1064).......... 803
 Sale of excess, obsolete, or unserviceable ammunition
 and ammunition components (sec. 1065).............. 804
 Transfer of B-17 aircraft to museum (sec. 1066)...... 805
 Report on disposal of excess and surplus materials
 (sec. 1067)........................................ 805
 Subtitle G--Other Matters................................ 805
 Authority for special agents of the Defense Criminal
 Investigative Service to execute warrants and make
 arrests (sec. 1071)................................ 805
 Study of investigative practices of military criminal
 investigative organizations relating to sex crimes
 (sec. 1072)........................................ 806
 Technical and clerical amendments (sec. 1073)........ 806
 Sustainment and operation of the Global Positioning
 System (sec. 1074)................................. 806
 Protection of safety-related information voluntarily
 provided by air carriers (sec. 1075)............... 806
 National Guard ChalleNGe Program to create
 opportunities for civilian youth (sec. 1076)....... 806
 Disqualification from certain burial-related benefits
 for persons convicted of capital crimes (sec. 1077) 807
 Restrictions on the use of human subjects for testing
 of chemical or biological agents (sec. 1078)....... 807
 Treatment of military flight operations (sec. 1079).. 808
 Naturalization of certain foreign nationals who serve
 honorably in the Armed Forces during a period of
 conflict (sec. 1080)............................... 808
 Applicability of certain pay authorities to members
 of specified independent study organizations (sec.
 1081).............................................. 808
 Display of POW/MIA flag (sec. 1082).................. 809
 Program to commemorate 50th anniversary of the Korean
 conflict (sec. 1083)............................... 809
 Commendation of members of the Armed Forces and
 Government civilian personnel who served during the
 Cold War; certificate of recognition (sec. 1084)... 809
 Sense of Congress on granting of statutory Federal
 charters (sec. 1085)............................... 809
 Sense of Congress regarding military voting rights
 (sec. 1086)........................................ 810
 Designation of Bob Hope as an honorary veteran of the
 Armed Forces of the United States (sec. 1087)...... 810
 Five-year extension of aviation insurance program
 (sec. 1088)........................................ 811
 Legislative provisions not adopted........................... 811
 Naming of a DDG-51 class destroyer the U.S.S. Thomas
 F. Connolly........................................ 811
 Assignment of Department of Defense personnel to
 assist immigration and naturalization service and
 custom service..................................... 811
 Repeal of annual report requirement relating to
 training of special operations forces with friendly
 foreign forces..................................... 811
 Armament retooling and manufacturing support
 initiative......................................... 811
 Long-term charter contracts for acquisition of
 auxiliary vessels for the Department of Defense.... 812
 Availability of certain fiscal year 1991 funds for
 payment of contract claim.......................... 812
 Psychotherapist-patient privilege in the Military
 Rules of Evidence.................................. 812
 Acceptance and use of landing fees for use of
 overseas military airfields by civil aircraft...... 812
 Protection of employees from retaliation for certain
 disclosures of classified information.............. 812
 Criminal prohibition on the distribution of certain
 information relating to explosives, destructive
 devices, and weapons of mass destruction........... 813
 Restrictions on quantities of alcoholic beverages
 available for personnel overseas through Department
 of Defense sources................................. 813
Title XI--Department of Defense Civilian Personnel............... 814
 Legislative Provisions Adopted............................... 814
 Use of prohibited constraints to manage Department of
 Defense personnel (sec. 1101)...................... 814
 Veterans' preference status for certain veterans who
 served on active duty during the Persian Gulf War
 (sec. 1102)........................................ 814
 Repeal of deadline for placement consideration of
 involuntarily separated military reserve
 technicians (sec. 1103)............................ 814
 Rate of pay of Department of Defense overseas
 teachers upon transfer to General Schedule position
 (sec. 1104)........................................ 814
 Garnishment and involuntary allotment (sec. 1105).... 815
 Extension and revision of voluntary separation
 incentive pay authority (sec. 1106)................ 815
 Use of approved fire-safe accommodations by
 Government employees on official business (sec.
 1107).............................................. 815
 Navy higher education pilot program regarding
 administration of business relationships between
 Government and private sector (sec. 1108).......... 815
 Authority for Marine Corps University to employ
 civilian faculty members (sec. 1109)............... 816
Title XII--Matters Relating to Other Nations..................... 816
 Legislative Provisions Adopted............................... 816
 Subtitle A--United States Armed Forces in Bosnia and
 Herzegovina............................................ 816
 Limitation on the use of funds for the deployment of
 U.S. forces in Bosnia beyond June 30, 1998 (secs.
 1201-1206)......................................... 816
 Subtitle B--Export Controls on High Performance Computers 817
 Export controls on high performance computers (secs.
 1211-1215)......................................... 817
 Subtitle C--Other Matters................................ 819
 Temporary use of general purpose vehicles and
 nonlethal military equipment under acquisition and
 cross servicing agreements (sec. 1222)............. 819
 Sense of Congress and reports regarding financial
 costs of enlargement of the North Atlantic Treaty
 Organization (sec. 1223)........................... 819
 Sense of Congress regarding expansion of the North
 Atlantic Treaty Organization (sec. 1224)........... 819
 Sense of the Congress relating to level of United
 States military personnel in the East Asia and
 Pacific region (sec. 1225)......................... 820
 Report on future military capabilities and strategy
 of the People's Republic of China (sec. 1226)...... 820
 Sense of Congress on need for Russian openness on the
 Yamantau Mountain Project (sec. 1227).............. 820
 Assessment of the Cuban threat to United States
 national security (sec. 1228)...................... 821
 Report on Helsinki Joint Statement (sec. 1229)....... 821
 Commendation of Mexico on free and fair elections
 (sec. 1230)........................................ 821
 Sense of Congress regarding Cambodia (sec. 1231)..... 821
 Congratulating Governor Christopher Patten of Hong
 Kong (sec. 1232)................................... 822
Title XIII--Arms Control and Related Matters..................... 822
 Legislative Provisions Adopted............................... 822
 Presidential report concerning detargeting of Russian
 strategic missiles (sec. 1301)..................... 822
 Limitation on retirement or dismantlement of
 strategic nuclear delivery systems (sec. 1302)..... 823
 Assistance for facilities subject to inspection under
 the Chemical Weapons Convention (sec. 1303)........ 823
 Transfers of authorizations for high-priority
 counterproliferation programs (sec. 1304).......... 823
 Advice to the President and Congress regarding the
 safety, security, and reliability of United States
 nuclear weapons stockpile (sec. 1305).............. 824
 Reconstitution of Commission to Assess the Ballistic
 Missile Threat to the United States (sec. 1306).... 824
 Sense of Congress regarding the relationship between
 environmental laws and United States obligations
 under the Chemical Weapons Convention (sec. 1307).. 824
 Extension of counterproliferation authorities for
 support of United Nations Special Commission on
 Iraq (sec. 1308)................................... 825
 Annual report on moratorium on use by Armed Forces of
 antipersonnel landmines (sec. 1309)................ 825
Title XIV--Cooperative Threat Reduction With States of Former
 Soviet Union................................................... 826
 Legislative Provisions Adopted............................... 826
 Cooperative threat reduction (CTR) program (secs.
 1401-1410)......................................... 826
Title XV--Federal Charter for the Air Force Sergeants............ 828
 Legislative Provisions Adopted............................... 828
 Federal Charter for the Air Force Sergeants
 Association (secs. 1501-1516)...................... 828
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS................. 828
 Overview............................................. 828
Title XXI--Army.................................................. 850
 Overview............................................. 850
 Items of Special Interest.................................... 850
 Planning and design, Army............................ 850
 Improvements of Military Family Housing, Army........ 851
 Legislative Provisions Adopted............................... 851
 Correction in authorized uses of funds, Fort Irwin,
 California (sec. 2105)............................. 851
Title XXII--Navy................................................. 851
 Overview............................................. 851
 Items of Special Interest.................................... 852
 Improvements of military family housing, Navy........ 852
 Legislative Provisions Adopted............................... 852
 Authorization of military construction project at
 Naval Station, Pascagoula, Mississippi, for which
 funds have been appropriated (sec. 2205)........... 852
 Increase in authorization for military construction
 projects at Naval Station Roosevelt Roads, Puerto
 Rico (sec. 2206)................................... 852
Title XXIII--Air Force........................................... 852
 Overview............................................. 852
 Items of Special Interest.................................... 853
 Improvements of military family housing, Air Force... 853
 Legislative Provisions Adopted............................... 853
 Authorization of military construction project at
 McConnell Air Force Base, Kansas, for which funds
 have been appropriated (sec. 2305)................. 853
Title XXIV--Defense Agencies..................................... 853
 Overview............................................. 853
 Legislative Provisions Adopted............................... 854
 Clarification of authority relating to fiscal year
 1997 project at Naval Station, Pearl Harbor, Hawaii
 (sec. 2406)........................................ 854
 Correction in authorized uses of funds, McClellan Air
 Force Base, California (sec. 2407)................. 854
 Modification of authority to carry out fiscal year
 1995 projects (sec. 2408).......................... 854
Title XXV--North Atlantic Treaty Organization Security Investment
 Program........................................................ 854
 Overview............................................. 854
Title XXVI--Guard and Reserve Forces Facilities.................. 855
 Overview............................................. 855
 Items of Special Interest.................................... 855
 Reserve construction project, Oakdale, Pennsylvania.. 855
 Legislative Provisions Adopted............................... 855
 Authorization of military construction projects for
 which funds have been appropriated (sec. 2602)..... 855
 Army Reserve construction project, Camp Williams,
 Utah (sec. 2603)................................... 856
Title XXVII--Expiration and Extension of Authorizations.......... 856
 Legislative Provisions Adopted............................... 856
 Extension of authorizations of certain fiscal year
 1995 projects (sec. 2702).......................... 856
 Extension of authorizations of certain fiscal year
 1994 projects (sec. 2703).......................... 856
 Extension of authorizations of certain fiscal year
 1993 projects (sec. 2704).......................... 856
 Extension of availability of funds for construction
 of relocatable over-the-horizon radar, Naval
 Station Roosevelt Roads, Puerto Rico (sec. 2706)... 857
Title XXVIII--General Provisions................................. 857
 Legislative Provisions Adopted............................... 857
 Subtitle A--Military Construction Program and Military
 Family Housing Changes................................. 857
 Use of mobility enhancement funds for unspecified
 minor construction (sec. 2801)..................... 857
 Limitation on the use of operation and maintenance
 funds for facility repair projects (sec. 2802)..... 857
 Leasing of military family housing, United States
 Southern Command, Miami, Florida (sec. 2803)....... 857
 Use of financial incentives provided as part of
 energy savings and water conservation activities
 (sec. 2804)........................................ 858
 Congressional notification requirements regarding use
 of Department of Defense housing funds for
 investments in nongovernmental entities (sec. 2805) 858
 Subtitle B--Real Property and Facilities Administration.. 858
 Increase in ceiling for minor land acquisition
 projects (sec. 2811)............................... 858
 Permanent authority regarding conveyance of utility
 systems (sec. 2812)................................ 858
 Administrative expenses for certain real property
 transactions (sec. 2813)........................... 859
 Screening of real property to be conveyed by the
 Department of Defense (sec. 2814).................. 859
 Disposition of proceeds from sale of Air Force Plant
 78, Brigham City, Utah (sec. 2815)................. 860
 Fire protection and hazardous materials protection at
 Fort Meade, Maryland (sec. 2816)................... 860
 Subtitle C--Defense Base Closure and Realignment......... 860
 Consideration of military installations as sites for
 new Federal facilities (sec. 2821)................. 860
 Adjustment and diversification assistance to enhance
 performance of military family support services by
 private sector sources (sec. 2822)................. 861
 Security, fire protection, and other services at
 property formerly associated with Red River Army
 Depot, Texas (sec. 2823)........................... 861
 Report on closure and realignment of military
 installations (sec. 2824).......................... 861
 Sense of Senate regarding utilization of savings
 derived from base closure process (sec. 2825)...... 862
 Prohibition against conveyance of property at Long
 Beach Naval Station to China Ocean Shipping Company
 (sec. 2826)........................................ 862
 Subtitle D--Land Conveyances............................. 862
 Part I--Army Conveyances................................. 862
 Land conveyance, Army Reserve Center, Greensboro,
 Alabama (sec. 2831)................................ 862
 Land Conveyance, James T. Coker Army Reserve Center,
 Durant, Oklahoma (sec. 2832)....................... 863
 Land conveyance, Gibson Army Reserve Center, Chicago,
 Illinois (sec. 2833)............................... 863
 Land conveyance, Fort A.P Hill, Virginia (sec. 2834). 863
 Land conveyances, Fort Dix, New Jersey (sec. 2835)... 863
 Land conveyances, Fort Bragg, North Carolina (sec.
 2836).............................................. 864
 Land conveyance, Hawthorne Army Ammunition Depot,
 Mineral County, Nevada (sec. 2837)................. 864
 Expansion of land conveyance authority, Indiana Army
 Ammunition Plant, Charlestown, Indiana (sec. 2838). 864
 Modification of land conveyance, Lompoc, California
 (sec. 2839)........................................ 865
 Modification of land conveyance, Rocky Mountain
 Arsenal, Colorado (sec. 2840)...................... 865
 Correction of land conveyance authority, Army Reserve
 Center, Anderson, South Carolina (sec. 2841)....... 865
 Part II--Navy Conveyances................................ 865
 Land conveyance, Topsham Annex, Naval Air Station,
 Brunswick, Maine (sec. 2851)....................... 865
 Land conveyance, Naval Weapons Industrial Reserve
 Plant No 464, Oyster Bay, New York (sec. 2852)..... 866
 Correction of lease authority, Naval Air Station,
 Meridian, Mississippi (sec. 2853).................. 866
 Part III--Air Force Conveyances.......................... 866
 Land transfer, Eglin Air Force Base, Florida (sec.
 2861).............................................. 866
 Land conveyance, March Air Force Base, California
 (sec. 2862)........................................ 866
 Land conveyance, Hancock Field, Syracuse, New York
 (sec. 2864)........................................ 867
 Land conveyance, Havre Air Force Station, Montana,
 and Havre Training Site, Montana (sec. 2865)....... 867
 Land conveyance, Charleston Family Housing Complex,
 Bangor, Maine (sec. 2866).......................... 867
 Study of land exchange options, Shaw Air Force Base,
 South Carolina (sec. 2867)......................... 867
 Subtitle E--Other Matters................................ 868
 Repeal of requirement to operate Naval Academy Dairy
 Farm (sec. 2871)................................... 868
 Long-term lease of property, Naples, Italy (sec.
 2872).............................................. 868
 Designation of military family housing at Lackland
 Air Force Base, Texas, in honor of Frank Tejeda, a
 former Member of the House of Representatives (sec.
 2873).............................................. 868
 Fiber-optics based telecommunications linkage of
 military installations (sec. 2874)................. 868
 Legislative Provisions Not Adopted........................... 869
 Modification of authority for disposal of certain
 real property, Fort Belvoir, Virginia.............. 869
Title XXIX--Sikes Act Improvement................................ 869
 Sikes Act Improvement (secs. 2901-2914).............. 869
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS
 AND OTHER AUTHORIZATIONS....................................... 870
Title XXXI--Department of Energy National Security Programs...... 870
 Legislative Provisions Adopted............................... 891
 Subtitle A--National Security Programs Authorizations.... 891
 Weapons activities (sec. 3101)....................... 891
 Environmental restoration and waste management (sec.
 3102).............................................. 891
 Other defense activities (sec. 3103)................. 893
 Subtitle B--Recurring General Provisions................. 895
 Limits on general plant projects (sec. 3122)......... 895
 Fund transfer authority (sec. 3124).................. 896
 Authority for conceptual and construction design
 (sec. 3125)........................................ 896
 Availability of funds (sec. 3128).................... 896
 Transfers of defense environmental management funds
 (sec. 3129)........................................ 897
 Subtitle C--Program Authorizations, Restrictions, and
 Limitations............................................ 897
 Memorandum of understanding for use of national
 laboratories for Ballistic Missile Defenses
 programs (sec. 3131)............................... 897
 Defense environmental management privatization
 projects (sec. 3132)............................... 897
 International cooperative stockpile stewardship
 programs (sec. 3133)............................... 898
 Modernization of enduring nuclear weapons complex
 (sec. 3134)........................................ 898
 Tritium production (sec. 3135)....................... 900
 Processing, treatment, and disposition of spent
 nuclear fuel rods and other legacy nuclear
 materials at the Savannah River Site (sec. 3136)... 900
 Limitations on use of funds for laboratory directed
 research and development purposes (sec. 3137)...... 901
 Pilot program relating to use of proceeds of disposal
 or utilization of certain Department of Energy
 assets (sec. 3138)................................. 901
 Modification and extension of authority relating to
 appointment of certain scientific, engineering, and
 technical personnel (sec. 3139).................... 902
 Limitation on use of funds for subcritical nuclear
 weapons tests (sec. 3140).......................... 902
 Limitation on use of certain funds until future use
 plans are submitted (sec. 3141).................... 902
 Subtitle D--Other Matters................................ 903
 Plan for stewardship, management, and certification
 of warheads in the nuclear weapons stockpile (sec.
 3151).............................................. 903
 Repeal of obsolete reporting requirements (sec. 3152) 903
 Study and funding relating to implementation of
 workforce restructuring plans (sec. 3153).......... 903
 Plan for external oversight of national laboratories
 (sec. 3154)........................................ 904
 University-based research collaboration program (sec.
 3155).............................................. 904
 Stockpile stewardship program (sec. 3156)............ 904
 Reports on advanced supercomputer sales to certain
 foreign nations (sec. 3157)........................ 905
 Transfers of real property at certain Department of
 Energy facilities (sec. 3159)...................... 905
 Requirement to delegate certain authorities to site
 manager of Hanford Reservation (sec 3150).......... 906
 Submittal of biennial waste management reports (sec
 3160).............................................. 906
 Board on security functions of Department of Energy
 (sec. 3161)........................................ 906
 Submittal of annual report on status of security
 functions at nuclear weapons facilities (sec. 3162) 906
 Modification of authority on commission on
 maintaining United States nuclear weapons expertise
 (sec. 3163)........................................ 907
 Land transfer, Bandelier National Monument (sec.
 3164).............................................. 907
 Final settlement of Department of Energy community
 assistance obligations with respect to Los Alamos
 National Laboratory, New Mexico (sec. 3165)........ 907
 Sense of Congress regarding the Y-12 Plant in Oak
 Ridge, Tennessee (sec. 3166)....................... 908
 Support for public education in the vicinity of Los
 Alamos National Laboratory, New Mexico (sec. 3167). 908
 Improvements to Greenville Road, Livermore,
 California (sec. 3168)............................. 908
 Report on alternative system for availability of
 funds (sec. 3169).................................. 909
 Report on remediation under the Formerly Utilized
 Sites Remedial Action Program (sec. 3170).......... 909
 Legislative Provisions Not Adopted........................... 909
 Report on proposed contract for Hanford tank waste
 vitrification project.............................. 909
 Defense environmental management privatization....... 910
 Tritium production in commercial facilities.......... 910
 Administration of certain Department of Energy
 activities......................................... 911
 Participation of the national security activities in
 Hispanic Outreach Initiative of the Department of
 Energy............................................. 912
Title XXXII--Defense Nuclear Facilities Safetyboard.............. 912
 Legislative Provisions Adopted............................... 912
 Report on external regulation of defense nuclear
 facilities (sec. 3202)............................. 912
Title XXXIII--National Defense Stockpile......................... 913
 Legislative Provisions Adopted............................... 913
 Definitions (sec. 3301).............................. 913
 Authorized uses of stockpile funds (sec. 3302)....... 913
 Authorized uses of beryllium copper master alloy in
 National Defense Stockpile (sec. 3303)............. 913
 Disposal of titanium sponge in the National Defense
 Stockpile (sec. 3304).............................. 913
 Disposal of cobalt in National Defense Stockpile
 (sec. 3305)........................................ 913
 Required procedures for disposal of strategic and
 critical materials (sec. 3306)..................... 914
 Return of surplus platinum from the Department of the
 Treasury (sec. 3307)............................... 914
 Legislative Provisions Not Adopted........................... 914
 Restrictions on disposal of certain manganese ferro.. 914
Title XXXIV--Naval Petroleum Reserves............................ 914
 Legislative Provisions Adopted............................... 914
 Price requirement on sale of certain petroleum during
 fiscal year 1998 (sec. 3402)....................... 914
 Repeal of requirement to assign Navy officers to
 Office of Naval Petroleum and Oil Shale Reserves
 (sec. 3403)........................................ 915
 Transfer of jurisdiction, Naval Oil Shale Reserves
 numbered 1 and 3 (sec. 3404)....................... 915
Title XXXV--Panama Canal Commission.............................. 915
 Panama Canal Commission (secs. 3501-3550)............ 915
Title XXXVI--Maritime Administration............................. 916
 Legislative Provisions Adopted............................... 916
 Authorization of appropriations for fiscal year 1998
 (sec. 3601)........................................ 916
 Repeal of obsolete annual report requirement
 concerning relative cost of shipbuilding in the
 various coastal districts of the United States
 (sec. 3602)........................................ 916
 Provisions relating to maritime security fleet
 program (sec. 3603)................................ 916
 Authority to utilize replacement vessels and capacity
 (sec. 3604)........................................ 917
 Authority to convey National Defense Reserve Fleet
 vessel (sec. 3605)................................. 917
 Determination of gross tonnage for purposes of tank
 vessel double hull requirements (sec. 3606)........ 917
105th Congress Report
 HOUSE OF REPRESENTATIVES

 1st Session 105-340
_______________________________________________________________________

 NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

 _______

 October 23, 1997.--Ordered to be printed

_______________________________________________________________________

 Mr. Spence, from the committee of conference, submitted the following

 CONFERENCE REPORT

 [To accompany H.R. 1119]

 The committee of conference on the disagreeing votes of
the two Houses on the amendments of the Senate to the bill
(H.R. 1119) to authorize appropriations for fiscal year 1998
for military activities of the Department of Defense, for
military construction, and for defense activities of the
Department of Energy, to prescribe personnel strengths for such
fiscal year for the Armed Forces, and for other purposes,
having met, after full and free conference, have agreed to
recommend and do recommend to their respective Houses as
follows:
 That the House recede from its disagreement to the
amendment of the Senate to the text of the bill and agree to
the same with an amendment as follows:
 In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``National Defense
Authorization Act for Fiscal Year 1998''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

 (a) Divisions.--This Act is organized into three divisions
as follows:
 (1) Division A--Department of Defense
 Authorizations.
 (2) Division B--Military Construction
 Authorizations.
 (3) Division C--Department of Energy National
 Security Authorizations and Other Authorizations.
 (b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

 DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

 TITLE I--PROCUREMENT

 Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

 Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

 Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

 Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on
 military aircraft derived from Boeing 707 aircraft.

 Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services
 of certain Army industrial facilities without regard to
 availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

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

 Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and
 Development Centers.

 Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

 Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic
 missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons
 of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile
 defense programs

 Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program
 organizations.
Sec. 242. Maintenance and repair of real property at Air Force
 installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program
 to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation
 during military service.
Sec. 245. Sense of Congress regarding Comanche program.

 TITLE III--OPERATION AND MAINTENANCE

 Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center,
 Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

 Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and
 maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness
 appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training
 or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and
 maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training
 exercises programs.
Sec. 332. Report on overseas deployments.

 Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental
 Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other
 agencies in support of environmental technology certification.
Sec. 343. Modifications of authority to store and dispose of nondefense
 toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines
 and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of
 Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence
 of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces
 abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at
 Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental
 technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction
 incentives.

 Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair
 that may be contracted for performance by non-government
 personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting
 for performance of depot-level maintenance and repair
 workloads formerly performed at closed or realigned military
 installations.
Sec. 360. Clarification of prohibition on management of depot employees
 by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards
 to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level
 maintenance and repair laws and a related reporting
 requirement.
Sec. 364. Personnel reductions, Army depots participating in Army
 Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among
 Department of Defense facilities and private sector
 facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair
 and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of
 ground communication-electronic workload.

 Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges
 and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name
 commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store
 activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation
 Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit
 morale, welfare, and recreation activities.

 Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit
 dependents of members of the Armed Forces and Department of
 Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian
 Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense
 Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of
 commercial and industrial type functions to contractor
 performance.
Sec. 385. Collection and retention of cost information data on converted
 services and functions.
Sec. 386. Financial assistance to support additional duties assigned to
 Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to
 identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work
 statement and request for proposal for conversion of certain
 operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within
 Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

 TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

 Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional
 contingencies.

 Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the
 Reserves.
Sec. 413. End strengths for military technicians (dual status).

 Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

 TITLE V--MILITARY PERSONNEL POLICY

 Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may
 serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on
 period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by
 promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers
 serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades
 of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory
 retirement of regular generals and admirals in grades above
 major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by
 commanding officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers
 of the Army Corps of Engineers.

 Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death
 and disability benefits for reserve members who incur or
 aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be
 considered by vacancy promotion board to general officer
 grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air
 Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive
 status.
Sec. 517. Federal status of service by National Guard members as honor
 guards at funerals of veterans.

 Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until
 age 60 military technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR
 personnel to military technicians (dual status).

 Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit
 Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for
 military service.
Sec. 533. Improvements in physical fitness of recruits.

 Subtitle E--Military Education and Training

 Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States
 Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service
 academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for
 participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior
 Reserve Officers' Training Corps units to maximize enrollment
 and enhance efficiency.

 Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of
 members of the Selected Reserve serving on active duty in
 support of a contingency operation.

 Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant
 trainees.

 Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

 Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed
 Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for
 participation in Operation Joint Endeavor or Operation Joint
 Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to
 specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for
 award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations
 for decorations and awards for certain military intelligence
 personnel.
Sec. 576. Eligibility of certain World War II military organizations for
 award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

 Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without
 eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving
 life sentence.

 Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to
 gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of
 certain non-Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense
 civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil
 military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to
 Department of Defense.

 TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

 Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable
 housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by
 reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing
 certain duty.

 Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay
 authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay
 authorities for nurse officer candidates, registered nurses,
 and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other
 bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive
 pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain
 dental officers.
Sec. 619. Availability of special pay for duty at designated hardship
 duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former
 enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard
 Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified
 officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted
 members extending tours of duty at designated locations
 overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

 Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before
 approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

 Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 641. One-year opportunity to discontinue participation in Survivor
 Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former
 spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income
 widows.

 Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain
 health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to
 separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA
 commissioned corps officers for reimbursement of adoption
 expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World
 War II veterans who served as guerrilla fighters in the
 Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty
 level.

 TITLE VII--HEALTH CARE PROVISIONS

 Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include
 surviving spouse and child dependents of certain deceased
 members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

 Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

 Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed
 Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

 Subtitle D--Other Changes to Existing Laws Regarding Health Care
 Management

Sec. 731. Improvements in health care coverage and access for members
 assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental
 program.
Sec. 733. Premium collection requirements for medical and dental
 insurance programs; extension of deadline for implementation
 of dental insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public
 Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for
 services.
Sec. 736. Use of personal services contracts for provision of health
 care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health
 care professionals.
Sec. 738. Standard form and requirements regarding claims for payment
 for services.
Sec. 739. Chiropractic health care demonstration program.

 Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician
 assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and
 civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility,
 Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription
 medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum
 allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy
 programs.
Sec. 748. Comptroller General study of Navy graduate medical education
 program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to
 include additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical
 facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles
 for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

 Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for
 physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia
 during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas
 in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved
 for their applied use.
Sec. 767. Report on plans to track location of members in a theater of
 operations.
Sec. 768. Sense of Congress regarding the deployment of specialized
 units for detecting and monitoring chemical, biological, and
 similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War
 illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

 TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
 MATTERS

 Subtitle A--Amendments to General Contracting Authorities, Procedures,
 and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing fiscal
 years to all severable service contracts not exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid
 under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under
 defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive
 vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related
 items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain
 contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source
 limitations.

 Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting
 plans.

 Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract
 litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public
 and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward
 meeting subcontracting goals.

 Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports
Sec. 842. Use of major range and test facility installations by
 commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible
 for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee
 stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in
 demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American
 Act.
Sec. 847. Repeal of requirement for contractor guarantees on major
 weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of
 civilian acquisition programs with policy established for
 defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based
 contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce
 training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign
 sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint
 study.

 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other
 General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for
 National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy
 guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory
 committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations
 and audits.

 Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and
 headquarters support activities.
Sec. 912. Defense acquisition workforce.

 Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center
 for Security Studies.

 Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA
 budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed
 units to intelligence collected and analyzed by the
 intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial
 information and data.
Sec. 934. POW/MIA intelligence analysis.

 TITLE X--GENERAL PROVISIONS

 Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997
 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations
 for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding
 contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military
 construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component
 modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating
 to pay, allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property
 due to flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel
 Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in
 support of the Surveillance Towed-Array Sensor (SURTASS)
 program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
 U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain
 polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to
 Navy shipbuilding capability preservation authority.

 Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and
 counter-drug activities.
Sec. 1032. Authority to provide additional support for counter-drug
 activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug
 activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics
 detection technologies.

 Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the
 General Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for investigating
 military aviation accidents and for notifying and assisting
 families of victims.

 Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities;
 report.
Sec. 1052. Provision of adequate troop protection equipment for Armed
 Forces personnel engaged in peace operations; report on
 antiterrorism activities and protection of personnel.

 Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or
 destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of
 assets under cooperative agreements on air defense in Central
 Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and
 ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

 Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal
 Investigative Service to execute warrants and make arrests.
Sec. 1072. Study of investigative practices of military criminal
 investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily provided
 by air carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for
 civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for
 persons convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of
 chemical or biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve
 honorably in the Armed Forces during a period of conflict.
Sec. 1081. Applicability of certain pay authorities to members of
 specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean
 conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government
 civilian personnel who served during the Cold War; certificate
 of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed
 Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

 TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of Defense
 personnel.
Sec. 1102. Veterans' preference status for certain veterans who served
 on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of
 involuntarily separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon
 transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay
 authority.
Sec. 1107. Use of approved fire-safe accommodations by Government
 employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration
 of business relationships between Government and private
 sector.
Sec. 1109. Authority for Marine Corps University to employ civilian
 faculty members.

 TITLE XII--MATTERS RELATING TO OTHER NATIONS

 Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Withdrawal of United States ground forces from Republic of
 Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United
 States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and
 Herzegovina.
Sec. 1206. Definitions.

 Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance
 computers.
Sec. 1214. GAO study on certain computers; end user information
 assistance.
Sec. 1215. Congressional committees.

 Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal
 military equipment under acquisition and cross servicing
 agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of
 enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic
 Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States
 military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the
 People's Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the
 Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national
 security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

 TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec. 1301. Presidential report concerning detargeting of Russian
 strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic
 nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the
 Chemical Weapons Convention.
Sec. 1304. Transfers of authorizations for high-priority
 counterproliferation programs.
Sec. 1305. Advice to the President and Congress regarding the safety,
 security, and reliability of United States nuclear weapons
 stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile
 threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United
 States obligations under the Chemical Weapons Convention and
 environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of
 United Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of
 antipersonnel landmines.

 TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET
 UNION

Sec. 1401. Specification of Cooperative Threat Reduction programs and
 funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II
 Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction
 facility.
Sec. 1406. Limitation on use of funds for destruction of chemical
 weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian
 fissile material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and
 other assessments on assistance provided to Russia under
 Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

 TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.
Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

 DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

 TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin,
 California.

 TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval
 Station, Pascagoula, Mississippi, for which funds have been
 appropriated.
Sec. 2206. Increase in authorization for military construction projects
 at Naval Station Roosevelt Roads, Puerto Rico.

 TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition
 projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell
 Air Force Base, Kansas, for which funds have been
 appropriated.

 TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition
 projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997
 project at Naval Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force
 Base, California.
Sec. 2408. Modification of authority to carry out certain fiscal year
 1995 projects.

 TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
 PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land
 acquisition projects.
Sec. 2602. Authorization of military construction projects for which
 funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

 TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
 specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995
 projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994
 projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993
 projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992
 projects.
Sec. 2706. Extension of availability of funds for construction of
 relocatable over-the-horizon radar, Naval Station Roosevelt
 Roads, Puerto Rico.
Sec. 2707. Effective date.

 TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Use of mobility enhancement funds for unspecified minor
 construction.
Sec. 2802. Limitation on use of operation and maintenance funds for
 facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern
 Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy
 savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of
 Department of Defense housing funds for investments in
 nongovernmental entities.

 Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property
 transactions.
Sec. 2814. Screening of real property to be conveyed by Department of
 Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78,
 Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort
 Meade, Maryland.

 Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new
 Federal facilities.
Sec. 2822. Adjustment and diversification assistance to enhance
 performance of military family support services by private
 sector sources.
Sec. 2823. Security, fire protection, and other services at property
 formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived from
 base closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval
 Station, Long Beach, California.

 Subtitle D--Land Conveyances

 Part I--Army Conveyances

Sec. 2831. Land conveyance, Army Reserve Center, Greensboro, Alabama.
Sec. 2832. Land conveyance, James T. Coker Army Reserve Center, Durant,
 Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,
 Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral
 County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army
 Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal,
 Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve Center,
 Anderson, South Carolina.

 Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick,
 Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No.
 464, Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian,
 Mississippi.

 Part III--Air Force Conveyances

Sec. 2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. Land conveyance, March Air Force Base, California.
Sec. 2863. Land conveyance, Ellsworth Air Force Base, South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre
 Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor,
 Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South
 Carolina.

 Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. Designation of military family housing at Lackland Air Force
 Base, Texas, in honor of Frank Tejeda, a former Member of the
 House of Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military
 installations.

 TITLE XXIX--SIKES ACT IMPROVEMENT

Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management plans.
Sec. 2905. Review for preparation of integrated natural resources
 management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military
 installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
 OTHER AUTHORIZATIONS

 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

 Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

 Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction
 activities.
Sec. 3127. Funds available for all national security programs of the
 Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

 Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories
 for ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel
 rods and other legacy nuclear materials at the Savannah River
 Site.
Sec. 3137. Limitations on use of funds for laboratory directed research
 and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or
 utilization of certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to
 appointment of certain scientific, engineering, and technical
 personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons
 tests.
Sec. 3141. Limitation on use of certain funds until future use plans are
 submitted.

 Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of
 warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce
 restructuring plans.
Sec. 3154. Report and plan for external oversight of national
 laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign
 nations.
Sec. 3158. Transfers of real property at certain Department of Energy
 facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager
 of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.
Sec. 3162. Submittal of annual report on status of security functions at
 nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining United
 States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community assistance
 obligations with respect to Los Alamos National Laboratory,
 New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge,
 Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos
 National Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.
Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites
 Remedial Action Program.

 TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

 TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National Defense
 Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical
 materials.
Sec. 3307. Return of surplus platinum from the Department of the
 Treasury.

 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal
 year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of
 Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1
 and 3.

 TITLE XXXV--PANAMA CANAL COMMISSION

 Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

 Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

Part I--Transition Matters Relating to Commission Officers and Employees

Sec. 3521. Authority for the Administrator of the Commission to accept
 appointment as the Administrator of the Panama Canal
 Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation of
 Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for
 Commission personnel no longer subject to Federal travel
 regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay
 for certain employees separated by Panama Canal Authority
 after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of
 Canal

Sec. 3541. Establishment of procurement system and Board of Contract
 Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory
 functions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

 TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning
 relative cost of shipbuilding in the various coastal districts
 of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel
 double hull requirements.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

 For purposes of this Act, the term ``congressional defense
committees'' means--
 (1) the Committee on Armed Services and the
 Committee on Appropriations of the Senate; and
 (2) the Committee on National Security and the
 Committee on Appropriations of the House of
 Representatives.

 DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

 TITLE I--PROCUREMENT

 Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Reserve components.
Sec. 106. Defense Inspector General.
Sec. 107. Chemical Demilitarization Program.
Sec. 108. Defense health programs.
Sec. 109. Defense Export Loan Guarantee Program.

 Subtitle B--Army Programs

Sec. 111. Army helicopter modernization plan.
Sec. 112. Multiyear procurement authority for specified Army programs.
Sec. 113. M113 vehicle modifications.

 Subtitle C--Navy Programs

Sec. 121. New Attack Submarine program.
Sec. 122. CVN-77 nuclear aircraft carrier program.
Sec. 123. Exclusion from cost limitation for Seawolf submarine program.

 Subtitle D--Air Force Programs

Sec. 131. Authorization for B-2 bomber program.
Sec. 132. ALR radar warning receivers.
Sec. 133. Analysis of requirements for replacement of engines on
 military aircraft derived from Boeing 707 aircraft.

 Subtitle E--Other Matters

Sec. 141. Pilot program on sales of manufactured articles and services
 of certain Army industrial facilities without regard to
 availability from domestic sources.
Sec. 142. NATO Joint Surveillance/Target Attack Radar System.

 Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for procurement for the Army as follows:
 (1) For aircraft, $1,316,233,000.
 (2) For missiles, $742,639,000.
 (3) For weapons and tracked combat vehicles,
 $1,297,641,000.
 (4) For ammunition, $1,011,193,000.
 (5) For other procurement, $2,566,208,000.

SEC. 102. NAVY AND MARINE CORPS.

 (a) Navy.--Funds are hereby authorized to be appropriated
for fiscal year 1998 for procurement for the Navy as follows:
 (1) For aircraft, $6,437,330,000.
 (2) For weapons, including missiles and torpedoes,
 $1,089,443,000.
 (3) For shipbuilding and conversion,
 $8,195,269,000.
 (5) For other procurement, $2,970,867,000.
 (b) Marine Corps.--Funds are hereby authorized to be
appropriated for fiscal year 1998 for procurement for the
Marine Corps in the amount of $460,081,000.
 (c) Navy and Marine Corps Ammunition.--Funds are hereby
authorized to be appropriated for procurement of ammunition for
the Navy and the Marine Corps in the amount of $364,744,000.

SEC. 103. AIR FORCE.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for procurement for the Air Force as follows:
 (1) For aircraft, $6,425,749,000.
 (2) For missiles, $2,376,301,000.
 (3) For ammunition, $398,534,000.
 (4) For other procurement, $6,543,580,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for Defense-wide procurement in the amount of
$2,057,150,000.

SEC. 105. RESERVE COMPONENTS.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for procurement of aircraft, vehicles, communications
equipment, and other equipment for the reserve components of
the Armed Forces as follows:
 (1) For the Army National Guard, $70,000,000.
 (2) For the Air National Guard, $303,000,000.
 (3) For the Army Reserve, $75,000,000.
 (4) For the Naval Reserve, $80,000,000.
 (5) For the Air Force Reserve, $50,000,000.
 (6) For the Marine Corps Reserve, $65,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for procurement for the Inspector General of the
Department of Defense in the amount of $1,800,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

 There is hereby authorized to be appropriated for fiscal
year 1998 the amount of $600,700,000 for--
 (1) the destruction of lethal chemical agents and
 munitions in accordance with section 1412 of the
 Department of Defense Authorization Act, 1986 (50
 U.S.C. 1521); and
 (2) the destruction of chemical warfare materiel of
 the United States that is not covered by section 1412
 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for the Department of Defense for procurement for
carrying out health care programs, projects, and activities of
the Department of Defense in the total amount of $274,068,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for the Department of Defense for carrying out the
Defense Export Loan Guarantee Program under section 2540 of
title 10, United States Code, in the total amount of
$1,231,000.

 Subtitle B--Army Programs

SEC. 111. ARMY HELICOPTER MODERNIZATION PLAN.

 (a) Limitation.--Not more than 80 percent of the total of
the amounts authorized to be appropriated pursuant to section
101(1), 105(1), and 105(3) for modifications or upgrades of
helicopters may be obligated before the date that is 30 days
after the date on which the Secretary of the Army submits to
the congressional defense committees a comprehensive plan for
the modernization of the Army's helicopter fleet.
 (b) Content of Plan.--The plan required by subsection (a)
shall include the following:
 (1) A detailed assessment of the Army's present and
 future helicopter requirements and present and future
 helicopter inventory, including number of aircraft, age
 of aircraft, availability of spare parts, flight hour
 costs, roles and functions assigned to the fleet as a
 whole and to its individual types of aircraft, and the
 mix of active component aircraft and reserve component
 aircraft in the fleet.
 (2) Estimates and analysis of requirements and
 funding proposed for procurement of new aircraft.
 (3) An analysis of the requirements for and funding
 proposed for extended service plans or service life
 extension plans for fleet aircraft.
 (4) A plan for retiring aircraft no longer required
 or capable of performing assigned functions, including
 a discussion of opportunities to eliminate older
 aircraft models and to focus future funding on current
 or future generation aircraft.
 (5) The implications of the plan for the defense
 industrial base.
 (c) Relationship to Future-Years Defense Program.--The
Secretary of the Army shall design the plan under subsection
(a) so that the plan could be implemented within the funding
levels expected to be available for Army aircraft programs in
the next future-years defense program to be submitted to
Congress pursuant to section 221(a) of title 10, United States
Code. The Secretary shall include in the plan a certification
that the program of the Army prepared for inclusion in the
future-years defense program submitted to Congress in 1998
pursuant to section 221(a) of title 10, United States Code,
included full funding for implementation of the plan.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR SPECIFIED ARMY PROGRAMS.

 (a) AH-64D Longbow Apache Fire Control Radar.--Beginning
with the fiscal year 1998 program year, the Secretary of the
Army may, in accordance with section 2306b of title 10, United
States Code, enter into a multiyear procurement contract for
procurement of the AH-64D Longbow Apache fire control radar.
 (b) Medium Tactical Vehicles.--Beginning with the fiscal
year 1998 program year, the Secretary of the Army may, in
accordance with section 2306b of title 10, United States Code,
enter into a multiyear procurement contract for procurement of
vehicles of the Family of Medium Tactical Vehicles. The
contract may be for a term of four years and may include an
option to extend the contract for one additional year.

SEC. 113. M113 VEHICLE MODIFICATIONS.

 Of the amount made available for the Army pursuant to
section 101(3), $35,244,000 shall be available only for the
procurement and installation of A3 upgrade kits for the M113
vehicle.

 Subtitle C--Navy Programs

SEC. 121. NEW ATTACK SUBMARINE PROGRAM.

 (a) Amounts Authorized From SCN Account.--Of the amounts
authorized to be appropriated by section 102(a)(3) for fiscal
year 1998, $2,599,800,000 is available for the New Attack
Submarine Program.
 (b) Contract Authority.--(1) The Secretary of the Navy may
enter into a contract for the procurement of four submarines
under the New Attack Submarine program.
 (2) Any contract entered into under paragraph (1)--
 (A) shall, notwithstanding section 2304(k) of title
 10, United States Code, be awarded to one of the two
 eligible shipbuilders as the prime contractor on the
 condition that the prime contractor enter into one or
 more subcontracts (under such prime contract) with the
 other of the two eligible shipbuilders as contemplated
 in the New Attack Submarine Team Agreement; and
 (B) shall provide for--
 (i) construction of the first submarine in
 fiscal year 1998; and
 (ii) advance construction and advance
 procurement of materiel for the second, third,
 and fourth submarines in fiscal year 1998.
 (3) The following shipbuilders are eligible for a contract
under this subsection:
 (A) The Electric Boat Corporation.
 (B) The Newport News Shipbuilding and Drydock
 Company.
 (4) In paragraph (2)(A), the term ``New Attack Submarine
Team Agreement'' means the agreement known as the Team
Agreement between Electric Boat Corporation and Newport News
Shipbuilding and Drydock Company, dated February 25, 1997, that
was submitted to Congress by the Secretary of the Navy on March
31, 1997.
 (c) Limitation of Liability.--If a contract entered into
under this section is terminated, the United States shall not
be liable for termination costs in excess of the total amount
appropriated for the New Attack Submarine program.
 (d) Repeals of Superseded Provisions of Previous Defense
Authorization Laws.--(1) Section 131 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 206) is amended--
 (A) in subsection (a)(1)(B)--
 (i) in clause (i), by striking out ``,
 which shall be built by Electric Boat
 Division''; and
 (ii) in clause (ii), by striking out ``,
 which shall be built by Newport News
 Shipbuilding''; and
 (B) in subsection (b), by striking out paragraph
 (1).
 (2) Section 121 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2441) is
amended--
 (A) in subsection (a)--
 (i) in paragraph (1)(B), by striking out
 ``to be built by Electric Boat Division''; and
 (ii) in paragraph (1)(C), by striking out
 ``to be built by Newport News Shipbuilding'';
 (B) in subsection (d), by striking out paragraph
 (2);
 (C) in subsection (e), by striking out paragraph
 (1); and
 (D) in subsection (g), by striking out ``the
 committees specified in subsection (e)(1)'' in
 paragraphs (3) and (4) and inserting in lieu thereof
 ``the Committee on Armed Services of the Senate and the
 Committee on National Security of the House of
 Representatives''.
 (e) Inapplicability of Superseded Aspects of Attack
Submarine Development Plan.--The Secretary of Defense and the
Secretary of the Navy are not required to carry out the
portions of the program plan submitted under subsection (c) of
section 131 of the National Defense Authorization Act for
Fiscal Year 1996 that are included in the plan pursuant to
subparagraphs (A), (B), and (E) of paragraph (2) of such
subsection.

SEC. 122. CVN-77 NUCLEAR AIRCRAFT CARRIER PROGRAM.

 (a) Authorization of Ship.--The Secretary of the Navy is
authorized to procure the aircraft carrier to be designated
CVN-77, subject to the availability of appropriations for that
purpose.
 (b) Amount Authorized From SCN Account.--Of the amount
authorized to be appropriated by section 102(a)(3) for fiscal
year 1998, $50,000,000 is available for the advance procurement
and advance construction of components (including nuclear
components) for the CVN-77 aircraft carrier program. The
Secretary of the Navy may enter into a contract or contracts
with the shipbuilder and other entities for the advance
procurement and advance construction of those components.
 (c) Other Funds.--Of the funds authorized to be
appropriated under this Act for programs, projects, and
activities of the military departments and Defense Agencies,
other than the CVN-77 aircraft carrier program, up to
$295,000,000 may be made available, as the Secretary of Defense
may direct, for the CVN-77 aircraft carrier program. Authority
to make transfers under this subsection is in addition to the
transfer authority provided in section 1001.
 (d) Management of Funds.--The Secretary of the Navy shall
obligate and expend the funds available for advance procurement
and advance construction of components for the CVN-77 aircraft
carrier program for fiscal year 1998 in a manner that is
designed to result in such cost savings as may be required in
order to meet the cost limitation specified in subsection (f).
 (e) Adjustments to Future-Years Defense Program.--The
Secretary of Defense shall make such plans for the CVN-77
aircraft carrier program as are necessary to attain for the
program the cost savings that are contemplated for the
procurement of the CVN-77 aircraft carrier in the March 1997
procurement plan.
 (f) Limitation on Total Cost of Procurement.--(1) The
Secretary of the Navy shall structure the program for the
procurement of the CVN-77 aircraft carrier, and shall manage
that program, so that the total cost of the procurement of the
CVN-77 aircraft carrier does not exceed $4,600,000,000 (such
amount being the estimated cost for the procurement of the CVN-
77 aircraft carrier in the March 1997 procurement plan).
 (2) The Secretary of the Navy may adjust the amount set
forth in paragraph (1) for the CVN-77 aircraft carrier program
by the following:
 (A) The amounts of outfitting costs and post-
 delivery costs incurred for the program.
 (B) The amounts of increases or decreases in costs
 attributable to economic inflation after September 30,
 1997.
 (C) The amounts of increases or decreases in costs
 attributable to compliance with changes in Federal,
 State, or local laws enacted after September 30, 1997.
 (D) The amounts of increases or decreases in costs
 of the program that are attributable to new technology
 built into the CVN-77 aircraft carrier, as compared to
 the technology built into the baseline design of the
 CVN-76 aircraft carrier.
 (E) The amounts of increases or decreases in costs
 resulting from changes the Secretary proposes in the
 funding plan (as contemplated in the March 1997
 procurement plan) on which the projected savings are
 based.
 (3) The Secretary of the Navy shall annually submit to
Congress, at the same time as the budget is submitted under
section 1105(a) of title 31, United States Code, written notice
of any change in the amount set forth in paragraph (1) during
the preceding fiscal year that the Secretary has determined to
be associated with a cost referred to in paragraph (2).
 (g) March 1997 Procurement Plan Defined.--In this section,
the term ``March 1997 procurement plan'' means the procurement
plan for the CVN-77 aircraft carrier that was submitted to the
Navy and Congress by the shipbuilder in March 1997.

SEC. 123. EXCLUSION FROM COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

 (a) Authority To Exclude Amounts Appropriated for Canceled
Vessels.--(1) The Secretary of the Navy may exclude from the
application of the cost limitation for the Seawolf submarine
program such amounts, not in excess of $272,400,000, as were
appropriated for fiscal years 1990, 1991, and 1992 for
procurement of Seawolf-class submarines that have been
canceled.
 (2) For the purposes of this subsection, the term ``cost
limitation for the Seawolf submarine program'' means the
limitation in section 133(a) of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 211).
 (b) Determination and Report by Inspector General.--(1) Not
later than March 30, 1998, the Inspector General of the
Department of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report containing the
Inspector General's determination as to whether any further
exclusion from, adjustment to exclusion from, or increase in
the dollar amount of the cost limitation referred to in
subsection (a) will be required.
 (2) The Inspector General shall include in the report the
following:
 (A) A thorough and comprehensive accounting for the
 amount of $745,400,000 identified by the Secretary of
 the Navy as having been obligated or expended for the
 detailed design for Seawolf-class submarines that have
 been canceled and for the procurement of nuclear
 components and construction spare parts for those
 canceled submarines, including a statement of the
 current disposition of items specifically purchased
 using those funds.
 (B) Cost growth, if any, in the cost of
 construction of the SSN-21, SSN-22, and SSN-23 Seawolf-
 class submarines that has not been reported to Congress
 before the date of the report of the Inspector General.
 (C) The current cost estimate of the Secretary of
 the Navy for completion of the SSN-21, SSN-22, and SSN-
 23 Seawolf-class submarines.
 (3) The Inspector General shall include in the report such
supporting information and analyses as the Inspector General
considers appropriate for aiding in understanding the
determination and findings of the Inspector General.

 Subtitle D--Air Force Programs

SEC. 131. AUTHORIZATION FOR B-2 BOMBER PROGRAM.

 (a) Funding Availability.--Of the funds made available for
procurement of aircraft for the Air Force for fiscal year 1998,
the amount of $331,000,000 is available for long-lead
activities related to the procurement of additional B-2 bomber
aircraft. However, if the President determines that no
additional B-2 bombers should be procured during fiscal year
1998 and certifies that decision to Congress, the funding
authorized in the preceding sentence shall be made available to
modify and repair the existing fleet of B-2 bomber aircraft.
 (b) Secretary of Defense To Preserve Options of
President.--The Secretary of Defense shall ensure that all
appropriate actions are taken to preserve the options of the
President until the panel to review long-range airpower
established by section 8131 of the Department of Defense
Appropriations Act, 1998 (Public Law 105-56; 111 Stat. 1249),
submits its report.

SEC. 132. ALR RADAR WARNING RECEIVERS.

 (a) Cost and Operation Effectiveness Analysis.--The
Secretary of the Air Force shall conduct a cost and operation
effectiveness analysis of upgrading the ALR69 radar warning
receiver as compared with the further acquisition of the ALR56M
radar warning receiver.
 (b) Submission to Congress.--The Secretary shall submit the
cost and operation effectiveness analysis to the congressional
defense committees not later than April 2, 1998.

SEC. 133. ANALYSIS OF REQUIREMENTS FOR REPLACEMENT OF ENGINES ON
 MILITARY AIRCRAFT DERIVED FROM BOEING 707 AIRCRAFT.

 (a) Analysis Required.--The Secretary of Defense shall
submit to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives
an analysis, to be carried out by the Under Secretary of
Defense for Acquisition and Technology, of the requirements of
the Department of Defense for replacing engines on the aircraft
of the Department of Defense that are derived from the Boeing
707 aircraft and the costs of meeting those requirements.
 (b) Content.--The analysis shall include the following:
 (1) The number of aircraft described in subsection
 (a) that are in the inventory of the Department of
 Defense as of October 1, 1997, and the number of such
 aircraft that are projected to be in the inventory of
 the Department as of October 1, 2002, as of October 1,
 2007, and as of October 1, 2012.
 (2) For each type of such aircraft, the estimated
 cost of operating the aircraft for each fiscal year
 beginning with fiscal year 1998 and ending with fiscal
 year 2014, taking into account historical patterns of
 usage and projected support costs.
 (3) For each type of such aircraft, the estimated
 costs and the benefits of replacing the engines on the
 aircraft, analyzed on the basis of the experience under
 the limited program for replacing the engines on RC-135
 aircraft that was undertaken during fiscal years 1995,
 1996, and 1997.
 (4) Various plans for replacement of engines that
 the Under Secretary considers best on the basis of
 costs and benefits.
 (c) Submission Deadline.--The analysis under subsection (a)
shall be submitted not later than March 1, 1998.

 Subtitle E--Other Matters

SEC. 141. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES
 OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT
 REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.

 (a) Pilot Program Required.--During fiscal years 1998 and
1999, the Secretary of the Army shall carry out a pilot program
to test the efficacy and appropriateness of selling
manufactured articles and services of Army industrial
facilities under section 4543 of title 10, United States Code,
without regard to the availability of the articles and services
from United States commercial sources. In carrying out the
pilot program, the Secretary may use articles manufactured at,
and services provided by, not more than three Army industrial
facilities.
 (b) Temporary Waiver of Requirement for Determination of
Unavailability From Domestic Source.--Under the pilot program,
the Secretary of the Army is not required under section
4543(a)(5) of title 10, United States Code, to determine
whether an article or service is available from a commercial
source located in the United States in the case of any of the
following sales for which a solicitation of offers is issued
during fiscal year 1998 or 1999:
 (1) A sale of articles to be incorporated into a
 weapon system being procured by the Department of
 Defense.
 (2) A sale of services to be used in the
 manufacture of a weapon system being procured by the
 Department of Defense.
 (c) Review by Inspector General.--The Inspector General of
the Department of Defense shall review the experience under the
pilot program under this section and, not later than July 1,
1999, submit to Congress a report on the results of the review.
The report shall contain the following:
 (1) The Inspector General's views regarding the
 extent to which the waiver under subsection (b)
 enhances the opportunity for United States
 manufacturers, assemblers, developers, and other
 concerns to enter into or participate in contracts and
 teaming arrangements with Army industrial facilities
 under weapon system programs of the Department of
 Defense.
 (2) The Inspector General's views regarding the
 extent to which the waiver under subsection (b)
 enhances the opportunity for Army industrial facilities
 referred to in section 4543(a) of title 10, United
 States Code, to enter into or participate in contracts
 and teaming arrangements with United States
 manufacturers, assemblers, developers, and other
 concerns under weapon system programs of the Department
 of Defense.
 (3) The Inspector General's views regarding the
 effect of the waiver under subsection (b) on the
 ability of small businesses to compete for the sale of
 manufactured articles or services in the United States
 in competitions to enter into or participate in
 contracts and teaming arrangements under weapon system
 programs of the Department of Defense.
 (4) Specific examples under the pilot program that
 support the Inspector General's views.
 (5) Any other information that the Inspector
 General considers pertinent regarding the effects of
 the waiver of section 4543(a)(5) of title 10, United
 States Code, under the pilot program on opportunities
 for United States manufacturers, assemblers,
 developers, or other concerns, and for Army industrial
 facilities, to enter into or participate in contracts
 and teaming arrangements under weapon system programs
 of the Department of Defense.
 (6) Any recommendations that the Inspector General
 considers appropriate regarding continuation or
 modification of the policy set forth in section
 4543(a)(5) of title 10, United States Code.

SEC. 142. NATO JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM.

 (a) Funding.--Amounts authorized to be appropriated under
this title and title II are available for a NATO alliance
ground surveillance capability that is based on the Joint
Surveillance/Target Attack Radar System of the United States,
as follows:
 (1) Of the amount authorized to be appropriated
 under section 101(5), $26,153,000.
 (2) Of the amount authorized to be appropriated
 under section 103(1), $10,000,000.
 (3) Of the amount authorized to be appropriated
 under section 201(1), $13,500,000.
 (4) Of the amount authorized to be appropriated
 under section 201(3), $26,061,000.
 (b) Authority.--(1) Subject to paragraph (2), the Secretary
of Defense may utilize authority under section 2350b of title
10, United States Code, for contracting for the purposes of
Phase I of a NATO Alliance Ground Surveillance capability that
is based on the Joint Surveillance/Target Attack Radar System
of the United States, notwithstanding the condition in such
section that the authority be utilized for carrying out
contracts or obligations incurred under section 27(d) of the
Arms Export Control Act (22 U.S.C. 2767(d)).
 (2) The authority under paragraph (1) applies during the
period that the conclusion of a cooperative project agreement
for a NATO Alliance Ground Surveillance capability under
section 27(d) of the Arms Export Control Act is pending, as
determined by the Secretary of Defense.
 (c) Modification of Air Force Aircraft.--Amounts available
pursuant to paragraphs (2) and (4) of subsection (a) may be
used to provide for modifying two Air Force Joint Surveillance/
Target Attack Radar System production aircraft to have a NATO
Alliance Ground Surveillance capability that is based on the
Joint Surveillance/Target Attack Radar System of the United
States.

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

 Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Dual-use technology program.
Sec. 204. Reduction in amount for Federally Funded Research and
 Development Centers.

 Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Manufacturing technology program.
Sec. 212. Report on operational field assessments program.
Sec. 213. Joint Strike Fighter program.
Sec. 214. Kinetic energy tactical anti-satellite technology program.
Sec. 215. Micro-satellite technology development program.
Sec. 216. High altitude endurance unmanned vehicle program.
Sec. 217. F-22 aircraft program.

 Subtitle C--Ballistic Missile Defense Programs

Sec. 231. National Missile Defense Program.
Sec. 232. Budgetary treatment of amounts for procurement for ballistic
 missile defense programs.
Sec. 233. Cooperative Ballistic Missile Defense program.
Sec. 234. Annual report on threat posed to the United States by weapons
 of mass destruction, ballistic missiles, and cruise missiles.
Sec. 235. Director of Ballistic Missile Defense Organization.
Sec. 236. Repeal of required deployment dates for core theater missile
 defense programs

 Subtitle D--Other Matters

Sec. 241. Restructuring of National Oceanographic Partnership Program
 organizations.
Sec. 242. Maintenance and repair of real property at Air Force
 installations.
Sec. 243. Expansion of eligibility for the Defense Experimental Program
 to Stimulate Competitive Research.
Sec. 244. Bioassay testing of veterans exposed to ionizing radiation
 during military service.
Sec. 245. Sense of Congress regarding Comanche program.

 Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for the use of the Department of Defense for
research, development, test, and evaluation as follows:
 (1) For the Army, $4,633,495,000.
 (2) For the Navy, $7,774,877,000.
 (3) For the Air Force, $14,338,934,000.
 (4) For Defense-wide activities, $9,831,646,000, of
 which--
 (A) $258,183,000 is authorized for the
 activities of the Director, Test and
 Evaluation; and
 (B) $27,384,000 is authorized for the
 Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

 (a) Fiscal Year 1998.--Of the amounts authorized to be
appropriated by section 201, $3,935,390,000 shall be available
for basic research and applied research projects.
 (b) Basic Research and Applied Research Defined.--For
purposes of this section, the term ``basic research and applied
research'' means work funded in program elements for defense
research and development under Department of Defense category
6.1 or 6.2.

SEC. 203. DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM.

 (a) Funding 1998.--Of the amounts authorized to be
appropriated by section 201, $75,000,000 is authorized for
dual-use projects.
 (b) Goals.--(1) Subject to paragraph (3), it shall be the
objective of the Secretary of each military department to
obligate for dual-use projects in each fiscal year referred to
in paragraph (2), out of the total amount authorized to be
appropriated for such fiscal year for the applied research
programs of the military department, the percent of such amount
that is specified for that fiscal year in paragraph (2).
 (2) The objectives for fiscal years under paragraph (1) are
as follows:
 (A) For fiscal year 1998, 5 percent.
 (B) For fiscal year 1999, 7 percent.
 (C) For fiscal year 2000, 10 percent.
 (D) For fiscal year 2001, 15 percent.
 (3) The Secretary of Defense may establish for a military
department for a fiscal year an objective different from the
objective set forth in paragraph (2) if the Secretary--
 (A) determines that compelling national security
 considerations require the establishment of the
 different objective; and
 (2) notifies Congress of the determination and the
 reasons for the determination.
 (c) Designation of Official for Dual-Use Programs.--(1) The
Secretary of Defense shall designate a senior official in the
Office of the Secretary of Defense to carry out
responsibilities for dual-use projects under this subsection.
The designated official shall report directly to the Under
Secretary of Defense for Acquisition and Technology.
 (2) The primary responsibilities of the designated official
shall include developing policy and overseeing the
establishment of, and adherence to, procedures for ensuring
that dual-use projects are initiated and administered
effectively and that applicable commercial technologies are
integrated into current and future military systems.
 (3) In carrying out the responsibilities, the designated
official shall ensure that--
 (A) dual-use projects are consistent with the joint
 warfighting science and technology plan referred to in
 section 270 of the National Defense Authorization Act
 for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C.
 2501 note); and
 (B) the dual-use projects of the military
 departments and defense agencies of the Department of
 Defense are coordinated and avoid unnecessary
 duplication.
 (d) Financial Commitment of Non-Federal Government
Participants.--The total amount of funds provided by a military
department for a dual-use project entered into by the Secretary
of that department shall not exceed 50 percent of the total
cost of the project. In the case of a dual-use project
initiated after the date of the enactment of this Act, the
Secretary may consider in-kind contributions by non-Federal
participants only to the extent such contributions constitute
50 percent or less of the share of the project costs by such
participants.
 (e) Use of Competitive Procedures.--Funds obligated for a
dual-use project may be counted toward meeting an objective
under subsection (a) only if the funds are obligated for a
contract, grant, cooperative agreement, or other transaction
that was entered into through the use of competitive
procedures.
 (f) Report.--(1) Not later than March 1 of each of 1998,
1999, and 2000, the Secretary of Defense shall submit a report
to the congressional defense committees on the progress made by
the Department of Defense in meeting the objectives set forth
in subsection (b) during the preceding fiscal year.
 (2) The report for a fiscal year shall contain, at a
minimum, the following:
 (A) The aggregate value of all contracts, grants,
 cooperative agreements, or other transactions entered
 into during the fiscal year for which funding is
 counted toward meeting an objective under this section,
 expressed in relationship to the total amount
 appropriated for the applied research programs in the
 Department of Defense for that fiscal year.
 (B) For each military department, the value of all
 contracts, grants, cooperative agreements, or other
 transactions entered into during the fiscal year for
 which funding is counted toward meeting an objective
 under this section, expressed in relationship to the
 total amount appropriated for the applied research
 program of the military department for that fiscal
 year.
 (C) A summary of the cost-sharing arrangements in
 dual-use projects that were initiated during the fiscal
 year and are counted toward reaching an objective under
 this section.
 (D) A description of the regulations, directives,
 or other procedures that have been issued by the
 Secretary of Defense or the Secretary of a military
 department to increase the percentage of the total
 value of the dual-use projects undertaken to meet or
 exceed an objective under this section.
 (E) Any recommended legislation to facilitate
 achievement of objectives under this section.
 (g) Commercial Operations and Support Savings Initiative.--
(1) The Secretary of Defense shall establish a Commercial
Operations and Support Savings Initiative (in this subsection
referred to as the ``Initiative'') to develop commercial
products and processes that the military departments can
incorporate into operational military systems to reduce costs
of operations and support.
 (2) Of the amounts authorized to be appropriated by section
201, $50,000,000 is authorized for the Initiative.
 (3) Projects and participants in the Initiative shall be
selected through the use of competitive procedures.
 (4) The budget submitted to Congress by the President for
fiscal year 1999 and each fiscal year thereafter pursuant to
section 1105(a) of title 31, United States Code, shall set
forth separately the funding request for the Initiative.
 (h) Repeal of Superseded Authority.--Section 203 of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2451) is repealed.
 (i) Definitions.--In this section:
 (1) The term ``applied research program'' means a
 program of a military department which is funded under
 the 6.2 Research, Development, Test and Evaluation
 account of that department.
 (2) The term ``dual-use project'' means a project
 under a program of a military department or a defense
 agency under which research or development of a dual-
 use technology is carried out and the costs of which
 are shared by the Department of Defense and non-
 Government entities.

SEC. 204. REDUCTION IN AMOUNT FOR FEDERALLY FUNDED RESEARCH AND
 DEVELOPMENT CENTERS.

 The total of the amounts authorized to be appropriated in
section 201 that are available for Federally Funded Research
and Development Centers (other than amounts for capital
equipment investment) is hereby reduced by $42,000,000.

 Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANUFACTURING TECHNOLOGY PROGRAM.

 (a) Participation of Manufacturers.--Section 2525(c)(2) of
title 10, United States Code, is amended to read as follows:
 ``(2) In order to promote increased dissemination and use
of manufacturing technology throughout the national defense
technology and industrial base, the Secretary shall seek, to
the maximum extent practicable, the participation of
manufacturers of manufacturing equipment in the projects under
the program.''.
 (b) Five-Year Plan.--Section 2525 of such title is amended
by adding at the end the following new subsection:
 ``(e) Five-Year Plan.--(1) The Secretary of Defense shall
prepare a five-year plan for the program which establishes--
 ``(A) the overall manufacturing technology goals,
 milestones, priorities, and investment strategy for the
 program; and
 ``(B) for each of the five fiscal years covered by
 the plan, the objectives of, and funding for the
 program by, each military department and each Defense
 Agency participating in the program.
 ``(2) The plan shall include an assessment of the
effectiveness of the program.
 ``(3) The plan shall be updated annually and shall be
included in the budget justification documents submitted in
support of the budget of the Department of Defense for a fiscal
year (as included in the budget of the President submitted to
Congress under section 1105 of title 31).''.
 (c) Deadline for First Plan.--The Secretary of Defense
shall prepare the first five-year plan required under section
2525(e) of such title, as added by subsection (b), within 60
days after the date of the enactment of this Act.

SEC. 212. REPORT ON OPERATIONAL FIELD ASSESSMENTS PROGRAM.

 (a) Finding.--Congress recognizes the potential value that
the Department of Defense Operational Field Assessments
program, which is managed by the Director of Operational Test
and Evaluation, provides to the commanders of the Unified
Combatant Commands with respect to assessment of the
effectiveness of near-term operational concepts and critical
operational issues in quick-response operational tests and
evaluations.
 (b) Report.--Not later than March 30, 1998, the Secretary
of Defense shall submit to the congressional defense committees
a report on the Operational Field Assessments program.
 (c) Content of Report.--The report shall contain the
following:
 (1) A review of the Operational Field Assessments
 program which describes the goals and objectives of the
 program, assessments by the program conducted as of the
 date of the submission of the report, and the results
 of those assessments.
 (2) A description of the current management and
 support structure of the program within the Department
 of Defense, including a description of how program
 responsibilities are assigned within the Office of the
 Secretary of Defense and a description of the roles of
 the Joint Staff, the commanders of the Unified
 Combatant Commands, and the military departments.
 (3) An analysis of and recommendations regarding
 the management structure required within the Office of
 the Secretary of Defense to ensure that the program is
 responsive to the mission needs of the commanders of
 the Unified Combatant Commands.
 (4) The funding plan for the program.
 (5) A description of future plans for the program
 and funding requirements for those plans.
 (6) Recommendations regarding additional statutory
 authority that may be required for the program.

SEC. 213. JOINT STRIKE FIGHTER PROGRAM.

 (a) Report.--Not later than February 15, 1998, the
Secretary of Defense shall submit to the congressional defense
committees a report on the options for the sequence in which
the variants of the joint strike fighter are to be produced and
fielded.
 (b) Content of Report.--The report shall contain the
following:
 (1) A review of the plan for production under the
 Joint Strike Fighter program that was used by the
 Department of Defense for developing the funding
 estimates for the fiscal year 1999 budget request for
 the Department of Defense.
 (2) An estimate of the costs, and an analysis of
 the costs and benefits, of producing the joint strike
 fighter variants in a sequence that provides for
 fielding of the naval variant of the aircraft first.
 (3) A comparison of the costs and benefits of the
 various options for the sequence for fielding the
 variants of the joint strike fighter that the Secretary
 of Defense considers likely to be the options from
 among which a sequence for fielding is selected,
 including a discussion of the effects that selection of
 each such option would have on the costs and rates of
 production of the units of F/A-18E/F and F-22 aircraft
 that are in production when the Joint Strike Fighter
 Program proceeds into production.
 (4) A certification that the Joint Strike Fighter
 Program contains sufficient funding to carry out an
 alternate engine development program that includes
 flight qualification of an alternate engine in a joint
 strike fighter airframe.
 (c) Limitation on Use of Funds Pending Submission of
Report.--Not more than 90 percent of the total amount
authorized to be appropriated under this Act for the Joint
Strike Fighter Program may be obligated until the date that is
30 days after the date on which the congressional defense
committees receive the report required under this section.
 (d) Fiscal Year 1998 Budget Defined.--In this section, the
term ``fiscal year 1999 budget request for the Department of
Defense'' means the budget estimates for the Department of
Defense for fiscal year 1999 that were submitted to Congress by
the Secretary of Defense in connection with the submission of
the budget for fiscal year 1998 to Congress under section 1105
of title 31, United States Code.

SEC. 214. KINETIC ENERGY TACTICAL ANTI-SATELLITE TECHNOLOGY PROGRAM.

 Of the funds authorized to be appropriated under section
201(4), $37,500,000 shall be available for the kinetic energy
tactical anti-satellite technology program.

SEC. 215. MICRO-SATELLITE TECHNOLOGY DEVELOPMENT PROGRAM.

 (a) Establishment of Micro-Satellite Technology Development
Program.--The Secretary of Defense shall restructure the
Clementine 2 micro-satellite development program into a micro-
satellite technology development program that supports a range
of space mission areas.
 (b) Report.--Not later than February 15, 1998, the
Secretary of Defense shall submit to the congressional defense
committees a report describing the structure and objectives of
the micro-satellite technology development program established
under subsection (a) and how the program can benefit existing
or future space systems or architectures.

SEC. 216. HIGH ALTITUDE ENDURANCE UNMANNED VEHICLE PROGRAM.

 (a) Limitation on Total Cost of Advanced Concept Technology
Demonstration.--The total amount obligated or expended for
advanced concept technology demonstration under the High
Altitude Endurance Unmanned Vehicle Program for fiscal year
1998 through fiscal year 2003 may not exceed $476,826,000.
 (b) Limitation on Procurement.--The Secretary of Defense
may not procure any high altitude endurance unmanned vehicles,
other than the currently planned vehicles, until the completion
of the testing identified in phase II of the test and
demonstration plan for the advanced concept technology
demonstration for the vehicles.
 (c) Limitation on Proceeding.--The High Altitude Endurance
Unmanned Vehicle Program may not proceed beyond advanced
concept technology demonstration until the Secretary of
Defense--
 (1) provides to Congress a firm unit cost (referred
 to in this section as the ``fly away cost'') for each
 of the currently planned vehicles; and
 (2) certifies to Congress the military suitability
 and the worth of each such vehicle.
 (d) GAO Review.--(1) The Comptroller General shall review
the High Altitude Endurance Unmanned Vehicle Program for
purposes of determining whether the average fly away cost for
each vehicle is within the cost goal under the program of
$10,000,000.
 (2) The Secretary of Defense and the prime contractors
under the High Altitude Endurance Unmanned Vehicle Program
shall provide the Comptroller General with such information on
the program as the Comptroller considers necessary to make the
determination under paragraph (1).
 (e) Currently Planned Vehicles.--In this section, the term
``currently planned vehicles'' means the four Dark Star air
vehicles and the five Global Hawk air vehicles that have been
approved for procurement by the Secretary of Defense as of the
date of the enactment of this Act.

SEC. 217. F-22 AIRCRAFT PROGRAM.

 (a) Limitation on Total Cost of Engineering and
Manufacturing Development.--The total amount obligated or
expended for engineering and manufacturing development under
the F-22 aircraft program may not exceed $18,688,000,000.
 (b) Limitation on Total Cost of Production.--The total
amount obligated or expended for the F-22 production program
may not exceed $43,400,000,000.
 (c) Adjustment of Limitation Amounts.--The Secretary of the
Air Force shall adjust the amounts of the limitations set forth
in subsections (a) and (b) by the following amounts:
 (1) The amounts of increases or decreases in costs
 attributable to economic inflation after September 30,
 1997.
 (2) The amounts of increases or decreases in costs
 attributable to compliance with changes in Federal,
 State, or local laws enacted after September 30, 1997.
 (d) Annual GAO Review.--(1) Not later than March 15 of each
year, the Comptroller General shall review the F-22 aircraft
program and submit to Congress a report on the results of the
review. The Comptroller General shall also submit to Congress
for each report a certification regarding whether the
Comptroller General has had access to sufficient information to
make informed judgments on the matters covered by the report.
 (2) The report submitted on the program each year shall
include the following:
 (A) The extent to which engineering and
 manufacturing development under the program is meeting
 the goals established for engineering and manufacturing
 development under the program, including the
 performance, cost, and schedule goals.
 (B) The status of modifications expected to have a
 significant effect on cost or performance of F-22
 aircraft.
 (C) The plan for engineering and manufacturing
 development (leading to production) under the program
 for the fiscal year that begins in the following year.
 (D) A conclusion regarding whether the plan
 referred to in subparagraph (C) is consistent with the
 limitation in subsection (a).
 (E) A conclusion regarding whether engineering and
 manufacturing development (leading to production) under
 the program is likely to be completed at a total cost
 not in excess of the amount specified in subsection
 (a).
 (3) The Comptroller General shall submit the first report
under this subsection not later than March 15, 1998. No report
is required under this subsection after engineering and
manufacturing development under the program has been completed.
 (e) Requirement To Support Annual GAO Review.--The
Secretary of Defense and the prime contractors under the F-22
aircraft program shall provide the Comptroller General with
such information on the program as the Comptroller General
considers necessary to carry out the responsibilities under
subsection (d).
 (f) Limitation on Obligation of Funds.--Of the total amount
authorized to be appropriated for the F-22 aircraft program for
a fiscal year, not more than 90 percent of the amount may be
obligated until the Comptroller General submits to Congress--
 (1) the report required to be submitted in that
 fiscal year under subsection (d); and
 (2) a certification regarding whether the
 Comptroller General has had access to sufficient
 information to make informed judgments on the matters
 covered by the report.

 Subtitle C--Ballistic Missile Defense Programs

SEC. 231. NATIONAL MISSILE DEFENSE PROGRAM.

 (a) Program Structure.--To preserve the option of achieving
an initial operational capability in fiscal year 2003, the
Secretary of Defense shall ensure that the National Missile
Defense Program is structured and programmed for funding so as
to support a test, in fiscal year 1999, of an integrated
national missile defense system that is representative of the
national missile defense system architecture that could achieve
initial operational capability in fiscal year 2003.
 (b) Elements of NMD System.--The national missile defense
system architecture specified in subsection (a) shall consist
of the following elements:
 (1) An interceptor system that optimizes defensive
 coverage of the continental United States, Alaska, and
 Hawaii against limited ballistic missile attack
 (whether accidental, unauthorized, or deliberate).
 (2) Ground-based radars.
 (3) Space-based sensors.
 (4) Battle management, command, control, and
 communications (BM/C<SUP>3</SUP>).
 (c) Plan for NMD System Development and Deployment.--Not
later than February 15, 1998, the Secretary of Defense shall
submit to the congressional defense committees a plan for the
development and deployment of a national missile defense system
that could achieve initial operational capability in fiscal
year 2003. The plan shall include the following matters:
 (1) A detailed description of the system
 architecture selected for development.
 (2) A discussion of the justification for the
 selection of that particular architecture.
 (3) The Secretary's estimate of the amounts of the
 appropriations that would be necessary for research,
 development, test, evaluation, and for procurement for
 each of fiscal years 1999 through 2003 in order to
 achieve an initial operational capability of the system
 architecture in fiscal year 2003.
 (4) For each activity necessary for the development
 and deployment of the national missile defense system
 architecture selected by the Secretary that would at
 some point conflict with the terms of the ABM Treaty,
 if any--
 (A) a description of the activity;
 (B) a description of the point at which the
 activity would conflict with the terms of the
 ABM Treaty;
 (C) the legal analysis justifying the
 Secretary's determination regarding the point
 at which the activity would conflict with the
 terms of the ABM Treaty; and
 (D) an estimate of the time at which such
 point would be reached in order to achieve a
 test of an integrated missile defense system in
 fiscal year 1999 and initial operational
 capability of such a system in fiscal year
 2003.
 (d) Funding for Fiscal Year 1998.--Of the funds authorized
to be appropriated under section 201(4), $978,091,000 shall be
available for the National Missile Defense Program.
 (e) ABM Treaty Defined.--In this section, the term ``ABM
Treaty'' means the Treaty Between the United States of America
and the Union of Soviet Socialist Republics on the Limitation
of Anti-Ballistic Missile Systems, signed at Moscow on May 26,
1972, and includes the Protocol to that treaty, signed at
Moscow on July 3, 1974.

SEC. 232. BUDGETARY TREATMENT OF AMOUNTS FOR PROCUREMENT FOR BALLISTIC
 MISSILE DEFENSE PROGRAMS.

 (a) Requirement for Inclusion in Budget of BMDO.--(1)
Chapter 9 of title 10, United States Code, is amended by
inserting after section 222 the following new section:

``Sec. 224. Ballistic missile defense programs: display of amounts for
 procurement

 ``(a) Requirement.--Any amount in the budget submitted to
Congress under section 1105 of title 31 for any fiscal year for
procurement for a Department of Defense missile defense program
described in subsection (b) shall be set forth under the
account of the Department of Defense for Defense-wide
procurement and, within that account, under the subaccount (or
other budget activity level) for the Ballistic Missile Defense
Organization.
 ``(b) Covered Programs.--Subsection (a) applies to the
following missile defense programs of the Department of
Defense:
 ``(1) The National Missile Defense program.
 ``(2) Any system that is part of the core theater
 missile defense program.
 ``(3) Any other ballistic missile defense program
 that enters production after the date of the enactment
 of this section and for which research, development,
 test, and evaluation was carried out by the Ballistic
 Missile Defense Organization.
 ``(c) Core Theater Ballistic Missile Defense Program.--For
purposes of this section, the core theater missile defense
program consists of the systems specified in section 234 of the
Ballistic Missile Defense Act of 1995 (10 U.S.C. 2431 note).''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 222
the following new item:

``224. Ballistic missile defense programs: display of amounts for
 procurement.''.

 (b) Fiscal Year 1998 Funds.--(1) The Secretary of Defense
shall transfer to appropriations available to the Ballistic
Missile Defense Organization for procurement for fiscal year
1998 any amounts that are appropriated for procurement for that
fiscal year for any of the Armed Forces by reason of the
transference of certain programs to accounts of the Army, Navy,
Air Force, and Marine Corps pursuant to Program Budget Decision
224C3, signed by the Under Secretary of Defense (Comptroller)
on December 23, 1996.
 (2) Any transfer pursuant to paragraph (1) shall not be
counted for purposes of section 1001.

SEC. 233. COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAM.

 (a) Requirement for New Program Element.--The Secretary of
Defense shall establish a program element for the Ballistic
Missile Defense Organization, to be referred to as the
``Cooperative Ballistic Missile Defense Program'', to support
technical and analytical cooperative efforts between the United
States and other nations that contribute to United States
ballistic missile defense capabilities. Except as provided in
subsection (b), all international cooperative ballistic missile
defense programs of the Department of Defense shall be budgeted
and administered through that program element.
 (b) Authority for Exceptions.--The Secretary of Defense may
exclude from the program element established pursuant to
subsection (a) any international cooperative ballistic missile
defense program of the Department of Defense that after the
date of the enactment of this Act is designated by the
Secretary of Defense (pursuant to applicable Department of
Defense acquisition regulations and policy) to be managed as a
separate acquisition program.
 (c) Relationship to Other Program Elements.--The program
element established pursuant to subsection (a) is in addition
to the program elements for activities of the Ballistic Missile
Defense Organization required under section 251 of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 233; 10 U.S.C. 221 note).

SEC. 234. ANNUAL REPORT ON THREAT POSED TO THE UNITED STATES BY WEAPONS
 OF MASS DESTRUCTION, BALLISTIC MISSILES, AND CRUISE
 MISSILES.

 (a) Annual Report.--The Secretary of Defense shall submit
to Congress by January 30 of each year a report on the threats
posed to the United States and allies of the United States--
 (1) by weapons of mass destruction, ballistic
 missiles, and cruise missiles; and
 (2) by the proliferation of weapons of mass
 destruction, ballistic missiles, and cruise missiles.
 (b) Consultation.--Each report submitted under subsection
(a) shall be prepared in consultation with the Director of
Central Intelligence.
 (c) Matters To Be Included.--Each report submitted under
subsection (a) shall include the following:
 (1) Identification of each foreign country and non-
 State organization that possesses weapons of mass
 destruction, ballistic missiles, or cruise missiles,
 and a descriptionof such weapons and missiles with
respect to each such foreign country and non-State organization.
 (2) A description of the means by which any foreign
 country and non-State organization that has achieved
 capability with respect to weapons of mass destruction,
 ballistic missiles, or cruise missiles has achieved
 that capability, including a description of the
 international network of foreign countries and private
 entities that provide assistance to foreign countries
 and non-State organizations in achieving that
 capability.
 (3) An examination of the doctrines that guide the
 use of weapons of mass destruction in each foreign
 country that possesses such weapons.
 (4) An examination of the existence and
 implementation of the control mechanisms that exist
 with respect to nuclear weapons in each foreign country
 that possesses such weapons.
 (5) Identification of each foreign country and non-
 State organization that seeks to acquire or develop
 (indigenously or with foreign assistance) weapons of
 mass destruction, ballistic missiles, or cruise
 missiles, and a description of such weapons and
 missiles with respect to each such foreign country and
 non-State organization.
 (6) An assessment of various possible timelines for
 the achievement by foreign countries and non-State
 organizations of capability with respect to weapons of
 mass destruction, ballistic missiles, and cruise
 missiles, taking into account the probability of
 whether the Russian Federation and the People's
 Republic of China will comply with the Missile
 Technology Control Regime, the potential availability
 of assistance from foreign technical specialists, and
 the potential for independent sales by foreign private
 entities without authorization from their national
 Governments.
 (7) For each foreign country or non-State
 organization that has not achieved the capability to
 target the United States or its territories with
 weapons of mass destruction, ballistic missiles, or
 cruise missiles as of the date of the enactment of this
 Act, an estimate of how far in advance the United
 States is likely to be warned before such foreign
 country or non-State organization achieves that
 capability.
 (8) For each foreign country or non-State
 organization that has not achieved the capability to
 target members of the United States Armed Forces
 deployed abroad with weapons of mass destruction,
 ballistic missiles, or cruise missiles as of the date
 of the enactment of this Act, an estimate of how far in
 advance the United States is likely to be warned before
 such foreign country or non-State organization achieves
 that capability.
 (d) Classification.--Each report under subsection (a) shall
be submitted in classified and unclassified form.

SEC. 235. DIRECTOR OF BALLISTIC MISSILE DEFENSE ORGANIZATION.

 (a) In General.--Subchapter II of chapter 8 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 203. Director of Ballistic Missile Defense Organization

 ``If an officer of the armed forces on active duty is
appointed to the position of Director of the Ballistic Missile
Defense Organization, the position shall be treated as having
been designated by the President as a position of importance
and responsibility for purposes of section 601 of this title
and shall carry the grade of lieutenant general or general or,
in the case of an officer of the Navy, vice admiral or
admiral.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end
the following new item:

``203. Director of Ballistic Missile Defense Organization.''.

SEC. 236. REPEAL OF REQUIRED DEPLOYMENT DATES FOR CORE THEATER MISSILE
 DEFENSE PROGRAMS.

 Section 234(a) of the Ballistic Missile Defense Act of 1995
(subtitle C of title II of Public Law 104-106; 110 Stat. 229;
10 U.S.C. 2431 note) is amended--
 (1) in the matter preceding paragraph (1), by
 striking out ``, to be carried out so as to achieve the
 specified capabilities'';
 (2) in paragraph (1), by striking out ``, with a
 first unit equipped (FUE) during fiscal year 1998'';
 (3) in paragraph (2), by striking out ``Navy Lower
 Tier (Area) system'' and all that follows through
 ``fiscal year 1999'' and inserting in lieu thereof
 ``Navy Area Defense system'';
 (4) in paragraph (3), by striking out ``, with a''
 and all that follows through ``fiscal year 2000''; and
 (5) in paragraph (4), by striking out ``Navy Upper
 Tier'' and all that follows through ``fiscal year
 2001'' and inserting in lieu thereof ``Navy Theater
 Wide system''.

 Subtitle D--Other Matters

SEC. 241. RESTRUCTURING OF NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM
 ORGANIZATIONS.

 (a) National Ocean Research Leadership Council.--Section
7902 of title 10, United States Code, is amended--
 (1) in subsection (b)--
 (A) by striking out paragraphs (11), (14),
 (15), (16) and (17); and
 (B) by redesignating paragraphs (12) and
 (13) as paragraphs (11) and (12), respectively;
 (2) by striking out subsection (d); and
 (3) by redesignating subsections (e), (f), (g),
 (h), and (i) as subsections (d), (e), (f), (g), and
 (h), respectively.
 (b) Ocean Research Advisory Panel.--(1) The text of section
7903 of such title is amended to read as follows:
 ``(a) Establishment.--The Council shall establish an Ocean
Research Advisory Panel consisting of not less than 10 and not
more than 18 members appointed by the chairman, including the
following:
 ``(1) One member who will represent the National
 Academy of Sciences.
 ``(2) One member who will represent the National
 Academy of Engineering
 ``(3) One member who will represent the Institute
 of Medicine.
 ``(4) Members selected from among individuals who
 will represent the views of ocean industries, State
 governments, academia, and such other views as the
 chairman considers appropriate.
 ``(5) Members selected from among individuals
 eminent in the fields of marine science or marine
 policy, or related fields.
 ``(b) Responsibilities.--The Council shall assign the
following responsibilities to the Advisory Panel:
 ``(1) To advise the Council on policies and
 procedures to implement the National Oceanographic
 Partnership Program.
 ``(2) To advise the Council on selection of
 partnership projects and allocation of funds for
 partnership projects for implementation under the
 program.
 ``(3) To advise the Council on matters relating to
 national oceanographic data requirements.
 ``(4) Any additional responsibilities that the
 Council considers appropriate.
 ``(c) Funding.--The Secretary of the Navy annually shall
make funds available to support the activities of the Advisory
Panel.''.
 (2) Section 282(c) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2473)
is amended by striking out ``January 1, 1997'' and inserting in
lieu thereof ``January 1, 1998''.
 (c) Conforming Amendments.--Section 282 of the National
Defense Authorization Act for Fiscal Year 1997 is amended--
 (1) by striking out subsection (b); and
 (2) by redesignating subsections (c), (d), (e), and
 (f) as subsections (b), (c), (d), and (e),
 respectively.
 (d) Effective Date.--The amendments made by subsections (a)
and (b) shall be effective as of September 23, 1996, as if
included in section 282 of Public Law 104-201.

SEC. 242. MAINTENANCE AND REPAIR OF REAL PROPERTY AT AIR FORCE
 INSTALLATIONS.

 (a) In General.--Chapter 949 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 9782. Maintenance and repair of real property

 ``(a) Allocation of Funds.--The Secretary of the Air Force
shall allocate funds authorized to be appropriated by a
provision described in subsection (c) and a provision described
in subsection (d) for maintenance and repair of real property
at military installations of the Department of the Air Force
without regard to whether the installation is supported with
funds authorized by a provision described in subsection (c) or
(d).
 ``(b) Mixing of Funds Prohibited on Individual Projects.--
The Secretary of the Air Force may not combine funds authorized
to be appropriated by a provision described in subsection (c)
and funds authorized to be appropriated by a provision
described in subsection (d) for an individual project for
maintenance and repair of real property at a military
installation of the Department of the Air Force.
 ``(c) Research, Development, Test, and Evaluation Funds.--
The provision described in this subsection is a provision of a
national defense authorization Act that authorizes funds to be
appropriated for a fiscal year to the Air Force for research,
development, test, and evaluation.
 ``(d) Operation and Maintenance Funds.--The provision
described in this subsection is a provision of a national
defense authorization Act that authorizes funds to be
appropriated for a fiscal year to the Air Force for operation
and maintenance.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``9782. Maintenance and repair of real property.''.

SEC. 243. EXPANSION OF ELIGIBILITY FOR THE DEFENSE EXPERIMENTAL PROGRAM
 TO STIMULATE COMPETITIVE RESEARCH.

 Section 257 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; U.S.C. 2358 note) is
amended by adding at the end the following new subsection:
 ``(f) State Defined.--In this section, the term `State'
means a State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, the Virgin Islands,
American Samoa, and the Commonwealth of the Northern Mariana
Islands.''.

SEC. 244. BIOASSAY TESTING OF VETERANS EXPOSED TO IONIZING RADIATION
 DURING MILITARY SERVICE.

 (a) Nuclear Test Personnel Program.--Of the amount provided
in section 201(4), $300,000 shall be available for testing
described in subsection (b) in support of the Nuclear Test
Personnel Program conducted by the Defense Special Weapons
Agency.
 (b) Covered Testing.--Subsection (a) applies to the third
phase of bioassay testing of individuals who are radiation-
exposed veterans (as defined in section 1112(c)(3)(A) of title
38, United States Code) who participated in radiation-risk
activities (as defined in section 1112(c)(3)(B) of such title).

SEC. 245. SENSE OF CONGRESS REGARDING COMANCHE PROGRAM.

 It is the sense of Congress that the Department of Defense
should--
 (1) evaluate technology transfer and acquisition
 initiatives within the Army Comanche program that have
 the potential to increase the efficiency or reduce the
 risk of the Comanche program; and
 (2) include adequate funding for those initiatives
 that the Department deems to be meritorious in the
 future-years defense program (as submitted to Congress
 under section 221 of title 10, United States Code).

 TITLE III--OPERATION AND MAINTENANCE

 Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Fisher House Trust Funds.
Sec. 305. Transfer from National Defense Stockpile Transaction Fund.
Sec. 306. Refurbishment of M1-A1 tanks.
Sec. 307. Operation of prepositioned fleet, National Training Center,
 Fort Irwin, California.
Sec. 308. Refurbishment and installation of air search radar.
Sec. 309. Contracted training flight services.
Sec. 310. Procurement technical assistance programs.
Sec. 311. Operation of Fort Chaffee, Arkansas.

 Subtitle B--Military Readiness Issues

Sec. 321. Monthly reports on allocation of funds within operation and
 maintenance budget subactivities.
Sec. 322. Expansion of scope of quarterly readiness reports.
Sec. 323. Semiannual reports on transfers from high-priority readiness
 appropriations.
Sec. 324. Annual report on aircraft inventory.
Sec. 325. Administrative actions adversely affecting military training
 or other readiness activities.
Sec. 326. Common measurement of operations tempo and personnel tempo.
Sec. 327. Inclusion of Air Force depot maintenance as operation and
 maintenance budget line items.
Sec. 328. Prohibition of implementation of tiered readiness system.
Sec. 329. Report on military readiness requirements of the Armed Forces.
Sec. 330. Assessment of cyclical readiness posture of the Armed Forces.
Sec. 331. Report on military exercises conducted under certain training
 exercises programs
Sec. 332. Report on overseas deployments.

 Subtitle C--Environmental Provisions

Sec. 341. Revision of membership terms for Strategic Environmental
 Research and Development Program Scientific Advisory Board.
Sec. 342. Amendments to authority to enter into agreements with other
 agencies in support of environmental technology certification.
Sec. 343. Modifications of authority to store and dispose of nondefense
 toxic and hazardous materials.
Sec. 344. Annual report on payments and activities in response to fines
 and penalties assessed under environmental laws.
Sec. 345. Annual report on environmental activities of the Department of
 Defense overseas.
Sec. 346. Review of existing environmental consequences of the presence
 of the Armed Forces in Bermuda.
Sec. 347. Sense of Congress on deployment of United States Armed Forces
 abroad for environmental preservation activities.
Sec. 348. Recovery and sharing of costs of environmental restoration at
 Department of Defense sites.
Sec. 349. Partnerships for investment in innovative environmental
 technologies.
Sec. 350. Procurement of recycled copier paper.
Sec. 351. Pilot program for the sale of air pollution emission reduction
 incentives.

 Subtitle D--Depot-Level Activities

Sec. 355. Definition of depot-level maintenance and repair.
Sec. 356. Core logistics capabilities of Department of Defense.
Sec. 357. Increase in percentage of depot-level maintenance and repair
 that may be contracted for performance by non-government
 personnel.
Sec. 358. Annual report on depot-level maintenance and repair.
Sec. 359. Requirement for use of competitive procedures in contracting
 for performance of depot-level maintenance and repair
 workloads formerly performed at closed or realigned military
 installations.
Sec. 360. Clarification of prohibition on management of depot employees
 by constraints on personnel levels.
Sec. 361. Centers of Industrial and Technical Excellence.
Sec. 362. Extension of authority for aviation depots and naval shipyards
 to engage in defense-related production and services.
Sec. 363. Repeal of a conditional repeal of certain depot-level
 maintenance and repair laws and a related reporting
 requirement.
Sec. 364. Personnel reductions, Army depots participating in Army
 Workload and Performance System.
Sec. 365. Report on allocation of core logistics activities among
 Department of Defense facilities and private sector
 facilities.
Sec. 366. Review of use of temporary duty assignments for ship repair
 and maintenance.
Sec. 367. Sense of Congress regarding realignment of performance of
 ground communication-electronic workload.

 Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 371. Reorganization of laws regarding commissaries and exchanges
 and other morale, welfare, and recreation activities.
Sec. 372. Merchandise and pricing requirements for commissary stores.
Sec. 373. Limitation on noncompetitive procurement of brand-name
 commercial items for resale in commissary stores.
Sec. 374. Treatment of revenues derived from commissary store
 activities.
Sec. 375. Maintenance, repair, and renovation of Armed Forces Recreation
 Center, Europe.
Sec. 376. Plan for use of public and private partnerships to benefit
 morale, welfare, and recreation activities.

 Subtitle F--Other Matters

Sec. 381. Assistance to local educational agencies that benefit
 dependents of members of the Armed Forces and Department of
 Defense civilian employees.
Sec. 382. Center for Excellence in Disaster Management and Humanitarian
 Assistance.
Sec. 383. Applicability of Federal printing requirements to Defense
 Automated Printing Service.
Sec. 384. Study and notification requirements for conversion of
 commercial and industrial type functions to contractor
 performance.
Sec. 385. Collection and retention of cost information data on converted
 services and functions.
Sec. 386. Financial assistance to support additional duties assigned to
 Army National Guard.
Sec. 387. Competitive procurement of printing and duplication services.
Sec. 388. Continuation and expansion of demonstration program to
 identify overpayments made to vendors.
Sec. 389. Development of standard forms regarding performance work
 statement and request for proposal for conversion of certain
 operational functions of military installations.
Sec. 390. Base operations support for military installations on Guam.
Sec. 391. Warranty claims recovery pilot program.
Sec. 392. Program to investigate fraud, waste, and abuse within
 Department of Defense.
Sec. 393. Multitechnology automated reader card demonstration program.
Sec. 394. Reduction in overhead costs of Inventory Control Points.
Sec. 395. Inventory management.

 Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for the use of the Armed Forces and other activities
and agencies of the Department of Defense for expenses, not
otherwise provided for, for operation and maintenance, in
amounts as follows:
 (1) For the Army, $17,174,589,000.
 (2) For the Navy, $21,947,656,000.
 (3) For the Marine Corps, $2,424,645,000.
 (4) For the Air Force, $19,172,985,000.
 (5) For Defense-wide activities, $10,242,607,000.
 (6) For the Army Reserve, $1,207,981,000.
 (7) For the Naval Reserve, $846,711,000.
 (8) For the Marine Corps Reserve, $116,366,000.
 (9) For the Air Force Reserve, $1,631,200,000.
 (10) For the Army National Guard, $2,311,432,000.
 (11) For the Air National Guard, $2,999,782,000.
 (12) For the Defense Inspector General,
 $136,580,000.
 (13) For the United States Court of Appeals for the
 Armed Forces, $6,952,000.
 (14) For Environmental Restoration, Army,
 $375,337,000.
 (15) For Environmental Restoration, Navy,
 $275,500,000.
 (16) For Environmental Restoration, Air Force,
 $376,900,000.
 (17) For Environmental Restoration, Defense-wide,
 $26,900,000.
 (18) For Environmental Restoration, Formerly Used
 Defense Sites, $202,300,000.
 (19) For Overseas Humanitarian, Disaster, and Civic
 Aid programs, $47,130,000.
 (20) For Drug Interdiction and Counter-drug
 Activities, Defense-wide, $666,882,000.
 (21) For the Kaho'olawe Island Conveyance,
 Remediation, and Environmental Restoration Trust Fund,
 $10,000,000.
 (22) For Medical Programs, Defense, $9,957,782,000.
 (23) For Cooperative Threat Reduction programs,
 $382,200,000.
 (24) For Overseas Contingency Operations Transfer
 Fund, $1,253,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

 Funds are hereby authorized to be appropriated for fiscal
year 1998 for the use of the Armed Forces and other activities
and agencies of the Department of Defense for providing capital
for working capital and revolving funds in amounts as follows:
 (1) For the Defense Working Capital Funds,
 $971,952,000.
 (2) For the National Defense Sealift Fund,
 $1,059,948,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

 There is hereby authorized to be appropriated for fiscal
year 1998 from the Armed Forces Retirement Home Trust Fund the
sum of $79,977,000 for the operation of the Armed Forces
Retirement Home, including the United States Soldiers' and
Airmen's Home and the Naval Home.

SEC. 304. FISHER HOUSE TRUST FUNDS.

 Funds are hereby authorized to be appropriated for fiscal
year 1998, out of funds in Fisher House Trust Funds not
otherwise appropriated, for the operation of Fisher houses
described in section 2221(d) of title 10, United States Code,
as follows:
 (1) From the Fisher House Trust Fund, Department of
 the Army, $250,000 for Fisher houses that are located
 in proximity to medical treatment facilities of the
 Army.
 (2) From the Fisher House Trust Fund, Department of
 the Navy, $150,000 for Fisher houses that are located
 in proximity to medical treatment facilities of the
 Navy.

SEC. 305. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

 (a) Transfer Authority.--To the extent provided in
appropriations Acts, not more than $150,000,000 is authorized
to be transferred from the National Defense Stockpile
Transaction Fund to operation and maintenance accounts for
fiscal year 1998 in amounts as follows:
 (1) For the Army, $50,000,000.
 (2) For the Navy, $50,000,000.
 (3) For the Air Force, $50,000,000.
 (b) Treatment of Transfers.--Amounts transferred under this
section--
 (1) shall be merged with, and be available for the
 same purposes and the same period as, the amounts in
 the accounts to which transferred; and
 (2) may not be expended for an item that has been
 denied authorization of appropriations by Congress.
 (c) Relationship to Other Transfer Authority.--The transfer
authority provided in this section is in addition to the
transfer authority provided in section 1001.

SEC. 306. REFURBISHMENT OF M1-A1 TANKS.

 Of the amount authorized to be appropriated pursuant to
section 301(1) for operation and maintenance for the Army,
$35,000,000 shall be available only for refurbishment of M1-A1
tanks under the AIM-XXI program if the Secretary of Defense
determines that the cost effectiveness of the pilot AIM-XXI
program is validated through user trials conducted at the
National Training Center, Fort Irwin, California.

SEC. 307. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER,
 FORT IRWIN, CALIFORNIA.

 Of the amount authorized to be appropriated pursuant to
section 301(1) for operation and maintenance for the Army,
$60,200,000 shall be available only to pay costs associated
with the operation of the prepositioned fleet of equipment
during training rotations at the National Training Center, Fort
Irwin, California.

SEC. 308. REFURBISHMENT AND INSTALLATION OF AIR SEARCH RADAR.

 Of the amount authorized to be appropriated pursuant to
section 301(2) for operation and maintenance for the Navy,
$6,000,000 may be available for the refurbishment and
installation of the AN/SPS-48E air search radar for the Ship
Self Defense System at the Integrated Ship Defense Systems
Engineering Center, Naval Surface Warfare Center, Wallops
Islands, Virginia.

SEC. 309. CONTRACTED TRAINING FLIGHT SERVICES.

 Of the amount authorized to be appropriated pursuant to
section 301(4) for operation and maintenance for the Air Force,
$12,000,000 may be used for contracted training flight
services.

SEC. 310. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

 (a) Funding.--Of the amount authorized to be appropriated
under section 301(5), $12,000,000 shall be available for
carrying out the provisions of chapter 142 of title 10, United
States Code.
 (b) Specific Programs.--Of the amounts made available
pursuant to subsection (a), $600,000 shall be available for
fiscal year 1998 for the purpose of carrying out programs
sponsored by eligible entities referred to in subparagraph (D)
of section 2411(1) of title 10, United States Code, that
provide procurement technical assistance in distressed areas
referred toin subparagraph (B) of section 2411(2) of such
title. If there is an insufficient number of satisfactory proposals for
cooperative agreements in such distressed areas to allow effective use
of the funds made available in accordance with this subsection in such
areas, the funds shall be allocated among the Defense Contract
Administration Services regions in accordance with section 2415 of such
title.

SEC. 311. OPERATION OF FORT CHAFFEE, ARKANSAS.

 Of the amount authorized to be appropriated pursuant to
section 301(10) for operation and maintenance for the Army
National Guard, $6,854,000 may be available for the operation
of Fort Chaffee, Arkansas.

 Subtitle B--Military Readiness Issues

SEC. 321. MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN OPERATION AND
 MAINTENANCE BUDGET SUBACTIVITIES.

 (a) In General.--(1) Chapter 9 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 228. Monthly reports on allocation of funds within operation and
 maintenance budget subactivities

 ``(a) Monthly Report.--The Secretary of Defense shall
submit to Congress a monthly report on the allocation of
appropriations to O&M budget activities and to the
subactivities of those budget activities. Each such report
shall be submitted not later than 60 days after the end of the
month to which the report pertains.
 ``(b) Matters To Be Included.--Each such report shall set
forth the following for each subactivity of the O&M budget
activities:
 ``(1) The amount of budget authority appropriated
 for that subactivity in the most recent regular
 Department of Defense Appropriations Act.
 ``(2) The amount of budget authority actually made
 available for that subactivity, taking into
 consideration supplemental appropriations, rescissions,
 and other adjustments required by law or made pursuant
 to law.
 ``(3) The amount programmed to be expended from
 such subactivity.
 ``(c) Identification of Certain Fluctuations.--(1) If, in
the report under this section for a month of a fiscal year
after the first month of that fiscal year, an amount shown
under subsection (b) for a subactivity is different by more
than $15,000,000 from the corresponding amount for that
subactivity in the report for the first month of that fiscal
year, the Secretary shall include in the report notice of that
difference.
 ``(2) If, in the report under this section for a month of a
fiscal year after a month for which the report under this
section includes a notice under paragraph (1), an amount shown
under subsection (b) for a subactivity is different by more
than $15,000,000 from the corresponding amount for that
subactivity in the most recent report that includes a notice
under paragraph (1) or this paragraph, the Secretary shall
include in the report notice of that difference.
 ``(d) Report on Fluctuations.--If a report under this
section includes a notice under subsection (c), the Secretary
shall include in the report with each such notice the
following:
 ``(1) The reasons for the reallocations of funds
 resulting in the inclusion of that notice in the
 report.
 ``(2) Each budget subactivity involved in those
 reallocations.
 ``(3) The effect of those reallocations on the
 operation and maintenance activities funded through the
 subactivity with respect to which the notice is
 included in the report.
 ``(e) O&M Budget Activity Defined.--For purposes of this
section, the term `O&M budget activity' means a budget activity
within an operation and maintenance appropriation of the
Department of Defense for a fiscal year.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``228. Monthly reports on allocation of funds within operation and
 maintenance budget subactivities.''.

 (b) Effective Date.--The first report under section 228 of
title 10, United States Code, as added by subsection (a), shall
be for the month of December 1997.

SEC. 322. EXPANSION OF SCOPE OF QUARTERLY READINESS REPORTS.

 (a) Expanded Reports Required.--(1) Section 482 of title
10, United States Code, is amended to read as follows:

``Sec. 482. Quarterly reports: personnel and unit readiness

 ``(a) Quarterly Reports Required.--Not later than 30 days
after the end of each calendar-year quarter, the Secretary of
Defense shall submit to Congress a report regarding military
readiness. The report for a quarter shall contain the
information required by subsections (b), (d), and (e).
 ``(b) Readiness Problems and Remedial Actions.--Each report
shall specifically describe--
 ``(1) each readiness problem and deficiency
 identified using the assessments considered under
 subsection (c);
 ``(2) planned remedial actions; and
 ``(3) the key indicators and other relevant
 information related to each identified problem and
 deficiency.
 ``(c) Consideration of Readiness Assessments.--The
information required under subsection (b) to be included in the
report for a quarter shall be based on readiness assessments
that are provided during that quarter--
 ``(1) to any council, committee, or other body of
 the Department of Defense--
 ``(A) that has responsibility for readiness
 oversight; and
 ``(B) whose membership includes at least
 one civilian officer in the Office of the
 Secretary of Defense at the level of Assistant
 Secretary of Defense or higher;
 ``(2) by senior civilian and military officers of
 the military departments and the commanders of the
 unified and specified commands; and
 ``(3) as part of any regularly established process
 of periodic readiness reviews for the Department of
 Defense as a whole.
 ``(d) Comprehensive Readiness Indicators for Active
Components.--Each report shall also include information
regarding each of the active components of the armed forces
(and an evaluation of such information) with respect to each of
the following readiness indicators:
 ``(1) Personnel strength.--
 ``(A) Personnel status, including the
 extent to which members of the armed forces are
 serving in positions outside of their military
 occupational specialty, serving in grades other
 than the grades for which they are qualified,
 or both.
 ``(B) Historical data and projected trends
 in personnel strength and status.
 ``(2) Personnel turbulence.--
 ``(A) Recruit quality.
 ``(B) Borrowed manpower.
 ``(C) Personnel stability.
 ``(3) Other personnel matters.--
 ``(A) Personnel morale.
 ``(B) Recruiting status.
 ``(4) Training.--
 ``(A) Training unit readiness and
 proficiency.
 ``(B) Operations tempo.
 ``(C) Training funding.
 ``(D) Training commitments and deployments.
 ``(5) Logistics--equipment fill.--
 ``(A) Deployed equipment.
 ``(B) Equipment availability.
 ``(C) Equipment that is not mission
 capable.
 ``(D) Age of equipment.
 ``(E) Condition of nonpacing items.
 ``(6) Logistics--equipment maintenance.--
 ``(A) Maintenance backlog.
 ``(7) Logistics--supply.--
 ``(A) Availability of ordnance and spares.
 ``(B) Status of prepositioned equipment.
 ``(e) Unit Readiness Indicators.--Each report shall also
include information regarding the readiness of each active
component unit of the armed forces at the battalion, squadron,
or an equivalent level (or a higher level) that received a
readiness rating of C-3 (or below) for any month of the
calendar-year quarter covered by the report. With respect to
each such unit, the report shall separately provide the
following information:
 ``(1) The unit designation and level of
 organization.
 ``(2) The overall readiness rating for the unit for
 the quarter and each month of the quarter.
 ``(3) The resource area or areas (personnel,
 equipment and supplies on hand, equipment condition, or
 training) that adversely affected the unit's readiness
 rating for the quarter.
 ``(4) The reasons why the unit received a readiness
 rating of C-3 (or below).
 ``(f) Classification of Reports.--A report under this
section shall be submitted in unclassified form. To the extent
the Secretary of Defense determines necessary, the report may
also be submitted in classified form.''.
 (2) The item relating to section 482 in the table of
sections at the beginning of chapter 23 of such title is
amended to read as follows:

``482. Quarterly reports: personnel and unit readiness.''.

 (b) Implementation Plan To Examine Readiness Indicators.--
Not later than January 15, 1998, the Secretary of Defense shall
submit to the congressional defense committees a plan--
 (1) specifying the manner in which the Secretary
 will implement the additional reporting requirement of
 subsection (d) of section 482 of title 10, United
 States Code, as added by this section; and
 (2) specifying the criteria proposed to be used to
 evaluate the readiness indicators identified in such
 subsection (d).
 (c) Limitation Pending Receipt of Implementation Plan.--Of
the amount available for fiscal year 1998 for operation and
support activities of the Office of the Secretary of Defense,
10 percent may not be obligated until after the date on which
the implementation plan required by subsection (b) is
submitted.
 (d) Transition to Complete Report.--Until the report under
section 482 of title 10, United States Code, as amended by
subsection (a), for the third quarter of 1998 is submitted, the
Secretary of Defense may omit the information required by
subsection (d) of such section if the Secretary determines that
it is impracticable to comply with such subsection with regard
to the preceding reports.

SEC. 323. SEMIANNUAL REPORTS ON TRANSFERS FROM HIGH-PRIORITY READINESS
 APPROPRIATIONS.

 (a) Reports Required.--Chapter 23 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 483. Reports on transfers from high-priority readiness
 appropriations

 ``(a) Annual Reports.--Not later than the date on which the
President submits the budget for a fiscal year to Congress
pursuant to section 1105 of title 31, the Secretary of Defense
shall submit to the Committee on Armed Services and the
Committee on Appropriations of the Senate and the Committee on
National Security and the Committee on Appropriations of the
House of Representatives a report on transfers during the
preceding fiscal year from funds available for each covered
budget activity.
 ``(b) Midyear Reports.--Not later than June 1 of each
fiscal year, the Secretary of Defense shall submit to the
congressional committees specified in subsection (a) a report
ontransfers, during the first six months of that fiscal year,
from funds available for each covered budget activity.
 ``(c) Matters To Be Included.--In each report under
subsection (a) or (b), the Secretary of Defense shall include
for each covered budget activity the following:
 ``(1) A statement, for the period covered by the
 report, of--
 ``(A) the total amount of transfers into
 funds available for that activity;
 ``(B) the total amount of transfers from
 funds available for that activity; and
 ``(C) the net amount of transfers into, or
 out of, funds available for that activity.
 ``(2) A detailed explanation of the transfers into,
 and out of, funds available for that activity during
 the period covered by the report.
 ``(d) Covered Budget Activity Defined.--In this section,
the term `covered budget activity' means each of the following:
 ``(1) The budget activity groups (known as
 `subactivities') within the Operating Forces budget
 activity of the annual Operation and Maintenance, Army,
 appropriation that are designated as follows:
 ``(A) All subactivities under the category
 of Land Forces.
 ``(B) Land Forces Depot Maintenance.
 ``(C) Base Support.
 ``(D) Maintenance of Real Property.
 ``(2) The Air Operations budget activity groups
 (known as `subactivities') within the Operating Forces
 budget activity of the annual Operation and
 Maintenance, Navy, appropriation that are designated as
 follows:
 ``(A) Mission and Other Flight Operations.
 ``(B) Fleet Air Training.
 ``(C) Aircraft Depot Maintenance.
 ``(D) Base Support.
 ``(E) Maintenance of Real Property.
 ``(3) The Ship Operations budget activity groups
 (known as `subactivities') within the Operating Forces
 budget activity of the annual Operation and
 Maintenance, Navy, appropriation that are designated as
 follows:
 ``(A) Mission and Other Ship Operations.
 ``(B) Ship Operational Support and
 Training.
 ``(C) Ship Depot Maintenance.
 ``(D) Base Support.
 ``(E) Maintenance of Real Property.
 ``(4) The Expeditionary Forces budget activity
 groups (known as `subactivities') within the Operating
 Forces budget activity of the annual Operation and
 Maintenance, Marine Corps, appropriation that are
 designated as follows:
 ``(A) Operational Forces.
 ``(B) Depot Maintenance.
 ``(C) Base Support.
 ``(D) Maintenance of Real Property.
 ``(5) The Air Operations and Combat Related
 Operations budget activity groups (known as
 `subactivities') within the Operating Forces budget
 activity of the annual Operation and Maintenance, Air
 Force, appropriation that are designated as follows:
 ``(A) Primary Combat Forces.
 ``(B) Primary Combat Weapons.
 ``(C) Air Operations Training.
 ``(D) Depot Maintenance.
 ``(E) Base Support.
 ``(F) Maintenance of Real Property.
 ``(6) The Mobility Operations budget activity group
 (known as a `subactivity') within the Mobilization
 budget activity of the annual Operation and
 Maintenance, Air Force, appropriation that is
 designated as Airlift Operations.
 ``(e) Termination.--The requirements specified in
subsections (a) and (b) shall terminate upon the submission of
the annual report under subsection (a) covering fiscal year
2000.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``483. Reports on transfers from high-priority readiness
 appropriations.''.

SEC. 324. ANNUAL REPORT ON AIRCRAFT INVENTORY.

 (a) Annual Report Required.--(1) Chapter 23 of title 10,
United States Code, is amended by inserting after section 483,
as added by section 323, the following new section:

``Sec. 484. Annual report on aircraft inventory

 ``(a) Annual Report.--The Under Secretary of Defense
(Comptroller) shall submit to Congress each year a report on
the aircraft in the inventory of the Department of Defense. The
Under Secretary shall submit the report when the President
submits the budget to Congress under section 1105(a) of title
31.
 ``(b) Content.--The report shall set forth, in accordance
with subsection (c), the following information:
 ``(1) The total number of aircraft in the
 inventory.
 ``(2) The total number of the aircraft in the
 inventory that are active, stated in the following
 categories (with appropriate subcategories for mission
 aircraft, training aircraft, dedicated test aircraft,
 and other aircraft):
 ``(A) Primary aircraft.
 ``(B) Backup aircraft.
 ``(C) Attrition and reconstitution reserve
 aircraft.
 ``(3) The total number of the aircraft in the
 inventory that are inactive, stated in the following
 categories:
 ``(A) Bailment aircraft.
 ``(B) Drone aircraft.
 ``(C) Aircraft for sale or other transfer
 to foreign governments.
 ``(D) Leased or loaned aircraft.
 ``(E) Aircraft for maintenance training.
 ``(F) Aircraft for reclamation.
 ``(G) Aircraft in storage.
 ``(4) The aircraft inventory requirements approved
 by the Joint Chiefs of Staff.
 ``(c) Display of Information.--The report shall specify the
information required by subsection (b) separately for the
active component of each armed force and for each reserve
component of each armed force and, within the information set
forth for each such component, shall specify the information
separately for each type, model, and series of aircraft
provided for in the future-years defense program submitted to
Congress.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 483,
as added by section 323, the following new item:

``484. Report on aircraft inventory.''.

 (b) Special Submission Date for First Report.--The Under
Secretary of Defense (Comptroller) shall submit the first
report required under section 484 of title 10, United States
Code (as added by subsection (a)), not later than January 30,
1998.
 (c) Modification of Budget Data Exhibits.--The Under
Secretary of Defense (Comptroller) shall ensure that aircraft
budget data exhibits of the Department of Defense that are
submitted to Congress display total numbers of active aircraft
where numbers of primary aircraft or primary authorized
aircraft are displayed in those exhibits.

SEC. 325. ADMINISTRATIVE ACTIONS ADVERSELY AFFECTING MILITARY TRAINING
 OR OTHER READINESS ACTIVITIES.

 (a) Congressional Notification.--Chapter 101 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 2014. Administrative actions adversely affecting military
 training or other readiness activities

 ``(a) Congressional Notification.--Whenever an official of
an Executive agency takes or proposes to take an administrative
action that, as determined by the Secretary of Defensein
consultation with the Chairman of the Joint Chiefs of Staff, affects
training or any other readiness activity in a manner that has or would
have a significant adverse effect on the military readiness of any of
the armed forces or a critical component thereof, the Secretary shall
submit a written notification of the action and each significant
adverse effect to the head of the Executive agency taking or proposing
to take the administrative action. At the same time, the Secretary
shall transmit a copy of the notification to the President, the
Committee on Armed Services of the Senate, and the Committee on
National Security of the House of Representatives.
 ``(b) Notification To Be Prompt.--(1) Subject to paragraph
(2), the Secretary shall submit a written notification of an
administrative action or proposed administrative action
required by subsection (a) as soon as possible after the
Secretary becomes aware of the action or proposed action.
 ``(2) The Secretary shall prescribe policies and procedures
to ensure that the Secretary receives information on an
administrative action or proposed administrative action
described in subsection (a) promptly after Department of
Defense personnel receive notice of such an action or proposed
action.
 ``(c) Consultation Between Secretary and Head of Executive
Agency.--Upon notification with respect to an administrative
action or proposed administrative action under subsection (a),
the head of the Executive agency concerned shall--
 ``(1) respond promptly to the Secretary; and
 ``(2) consistent with the urgency of the training
 or readiness activity involved and the provisions of
 law under which the administrative action or proposed
 administrative action is being taken, seek to reach an
 agreement with the Secretary on immediate actions to
 attain the objective of the administrative action or
 proposed administrative action in a manner which
 eliminates or mitigates the adverse effects of the
 administrative action or proposed administrative action
 upon the training or readiness activity.
 ``(d) Moratorium.--(1) Subject to paragraph (2), upon
notification with respect to an administrative action or
proposed administrative action under subsection (a), the
administrative action or proposed administrative action shall
cease to be effective with respect to the Department of Defense
until the earlier of--
 ``(A) the end of the five-day period beginning on
 the date of the notification; or
 ``(B) the date of an agreement between the head of
 the Executive agency concerned and the Secretary as a
 result of the consultations under subsection (c).
 ``(2) Paragraph (1) shall not apply with respect to an
administrative action or proposed administrative action if the
head of the Executive agency concerned determines that the
delay in enforcement of the administrative action or proposed
administrative action will pose an actual threat of an imminent
and substantial endangerment to public health or the
environment.
 ``(e) Effect of Lack of Agreement.--(1) If the head of an
Executive agency and the Secretary do not enter into an
agreement under subsection (c)(2), the Secretary shall submit a
written notification to the President who shall take final
action on the matter.
 ``(2) Not later than 30 days after the date on which the
President takes final action on a matter under paragraph (1),
the President shall submit to the committees referred to in
subsection (a) a notification of the action.
 ``(f) Limitation on Delegation of Authority.--The head of
an Executive agency may not delegate any responsibility under
this section.
 ``(g) Definition.--In this section, the term `Executive
agency' has the meaning given such term in section 105 of title
5, except that the term does not include the General Accounting
Office.''.
 (b) Clerical Amendment.--The table of sections of the
beginning of such chapter is amended by adding at the end the
following new item:

``2014. Administrative actions adversely affecting military training or
 other readiness activities.''.

SEC. 326. COMMON MEASUREMENT OF OPERATIONS TEMPO AND PERSONNEL TEMPO.

 (a) Means for Measurement.--The Chairman of the Joint
Chiefs of Staff shall, to the maximum extent practicable,
develop (1) a common means of measuring the operations tempo
(OPTEMPO) of each of the Armed Forces, and (2) a common means
of measuring the personnel tempo (PERSTEMPO) of each of the
Armed Forces. The Chairman shall consult with the other members
of the Joint Chiefs of Staff in developing those common means
of measurement.
 (b) Perstempo Measurement.--The measurement of personnel
tempo developed by the Chairman shall include a means of
identifying the rate of deployment for individual members of
the Armed Forces in addition to the rate of deployment for
units.

SEC. 327. INCLUSION OF AIR FORCE DEPOT MAINTENANCE AS OPERATION AND
 MAINTENANCE BUDGET LINE ITEMS.

 For fiscal year 1999 and each fiscal year thereafter, Air
Force depot-level maintenance of materiel shall be displayed as
one or more separate line items under each subactivity within
the authorization request for operation and maintenance, Air
Force, in the proposed budget for that fiscal year submitted to
Congress pursuant to section 1105 of title 31, United States
Code.

SEC. 328. PROHIBITION OF IMPLEMENTATION OF TIERED READINESS SYSTEM.

 (a) Prohibition.--The Secretary of a military department
may not implement, or be required to implement, a new readiness
system for units of the Armed Forces (as outlined in sections
329 and 330), under which a military unit would be categorized
into one of several categories (known as ``tiers'') according
to the likelihood that the unit will be required to respond to
a military conflict and the time in which the unit will be
required to respond, if that system would have the effect of
changing the methods used as of October 1, 1996, by the Armed
Forces under the jurisdiction of that Secretary for determining
the priorities for allocating to such military units funding,
personnel, equipment, equipment maintenance, and training
resources, and the associated levels of readiness of those
units that result from those priorities.
 (b) Report to Congress Requesting Waiver.--If the Secretary
of Defense determines, following the review required by
sections 329 and 330 (or any similar review), that
implementation for one or more of the Armed Forces of a tiered
readiness system that is prohibited by subsection (a) would be
in the national security interests of the United States, the
Secretary shall submit to Congress a report setting forth that
determination, together with the rationale for that
determination, and a request for the enactment of legislation
to allow implementation of such a system.
 (c) Rule of Construction.--Nothing in subsection (a) is
intended to preclude the Secretary of Defense from taking
necessary actions to maintain the combat preparedness of the
active and reserve components of the Armed Forces.

SEC. 329. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED
 FORCES.

 (a) Requirement for Report.--Not later than January 31,
1998, the Chairman of the Joint Chiefs of Staff shall submit to
the congressional defense committees a report on the military
readiness requirements of the active and reserve components of
the Armed Forces (including combat units, combat support units,
and combat service support units). The report shall assess such
requirements under a tiered readiness and response system that
categorizes a given unit according to the likelihood that it
will be required to respond to a military conflict and the time
within which it will be required to respond.
 (b) Preparation by JCS and Commanders of Unified
Commands.--The report required by subsection (a) shall be
prepared jointly by the Chairman of the Joint Chiefs of Staff,
the Chief of Staff of the Army, the Chief of Naval Operations,
the Chief of Staff of the Air Force, the Commandant of the
Marine Corps, the commander of the Special Operations Command,
and the commanders of the other unified commands.
 (c) Assessment Scenario.--The report shall assess readiness
requirements in a scenario that is based on the following
assumptions:
 (1) That the Armed Forces of the United States must
 be capable of--
 (A) fighting and winning, in concert with
 allies, two major theater wars nearly
 simultaneously; and
 (B) deterring or defeating a strategic
 attack on the United States.
 (2) That the forces available for deployment are
 the forces included in the force structure recommended
 in the Quadrennial Defense Review, including all other
 planned force enhancements.
 (d) Assessment Elements.--(1) The report shall identify, by
unit type, all major units of the active and reserve components
of the Armed Forces and assess the readiness requirements of
the units. Each identified unit shall be categorized within one
of the following classifications:
 (A) Forward-deployed and crisis response forces, or
 ``Tier I'' forces, that possess limited internal
 sustainment capability and do not require immediate
 access to regional air bases or ports or overflight
 rights, including the following:
 (i) Force units that are deployed in
 rotation at sea or on land outside the United
 States.
 (ii) Combat-ready crises response forces
 that are capable of mobilizing and deploying
 within 10 days after receipt of orders.
 (iii) Forces that are supported by
 prepositioning equipment afloat or are capable
 of being inserted into a theater upon the
 capture of a port or airfield by forcible entry
 forces.
 (B) Combat-ready follow-on forces, or ``Tier II''
 forces, that can be mobilized and deployed to a theater
 within approximately 60 days after receipt of orders.
 (C) Combat-ready conflict resolution forces, or
 ``Tier III'' forces, that can be mobilized and deployed
 to a theater within approximately 180 days after
 receipt of orders.
 (D) All other active and reserve component force
 units which are not categorized within a classification
 described in subparagraph (A), (B), or (C).
 (2) For the purposes of paragraph (1), the following units
are major units:
 (A) In the case of the Army or Marine Corps, a
 brigade and a battalion.
 (B) In the case of the Navy, a squadron of
 aircraft, a ship, and a squadron of ships.
 (C) In the case of the Air Force, a squadron of
 aircraft.
 (e) Projection of Savings for Use for Modernization.--The
report shall include a projection for fiscal years 1998 through
2003 of the amounts of the savings in operation and maintenance
funding that--
 (1) could be derived by each of the Armed Forces by
 placing as many units as is practicable into the lower
 readiness categories among the tiers; and
 (2) could be made available for force
 modernization.
 (f) Form of Report.--The report under this section shall be
submitted in unclassified form, but may contain a classified
annex.
 (g) Planned Force Enhancement Defined.--In this section,
the term ``planned force enhancement'', with respect to the
force structure recommended in the Quadrennial Defense Review,
means any future improvement in the capability of the force
(including current strategic and future improvement in
strategic lift capability) that is assumed in the development
of the recommendation for the force structure set forth in the
Quadrennial Defense Review.

SEC. 330. ASSESSMENT OF CYCLICAL READINESS POSTURE OF THE ARMED FORCES.

 (a) Requirement.--(1) Not later than 120 days after the
date of the enactment of this Act, the Secretary of Defense
shall submit to Congress a report on the readiness posture of
the Armed Forces described in subsection (b).
 (2) The Secretary shall prepare the report required under
paragraph (1) with the assistance of the Joint Chiefs of Staff.
In providing such assistance, the Chairman of the Joint Chiefs
of Staff shall consult with the Chief of the National Guard
Bureau.
 (b) Readiness Posture.--(1) The readiness posture to be
covered by the report under subsection (a) is a readiness
posture for units of the Armed Forces, or for designated units
of the Armed Forces, that provides for a rotation of such units
between a state of high readiness and a state of low readiness.
 (2) As part of the evaluation of the readiness posture
described in paragraph (1), the report shall address in
particular a readiness posture that--
 (A) establishes within the Armed Forces two
 equivalent forces each structured so as to be capable
 of fighting and winning a major theater war; and
 (B) provides for an alternating rotation of such
 forces between a state of high readiness and a state of
 low readiness.
 (3) The evaluation of the readiness posture described in
paragraph (2) shall be based upon assumptions permitting
comparison with the existing force structure as follows:
 (A) That there are assembled from among the units
 of the Armed Forces two equivalent forces each
 structured so as to be capable of fighting and winning
 a major theater war.
 (B) That each force referred to in subparagraph (A)
 includes--
 (i) four active Army divisions, including
 one mechanized division, one armored division,
 one light infantry division, and one division
 combining airborne units and air assault units,
 and appropriate support and service support
 units for such divisions;
 (ii) six divisions (or division
 equivalents) of the Army National Guard or the
 Army Reserve that are essentially equivalent in
 structure, and appropriate support and service
 support units for such divisions;
 (iii) six aircraft carrier battle groups;
 (iv) six active Air Force fighter wings (or
 fighter wing equivalents);
 (v) four Air Force reserve fighter wings
 (or fighter wing equivalents); and
 (vi) one active Marine Corps expeditionary
 force.
 (C) That each force may be supplemented by critical
 units or units in short supply, including heavy bomber
 units, strategic lift units, and aerial reconnaissance
 units, that are not subject to the readiness rotation
 otherwise assumed for purposes of the evaluation or are
 subject to the rotation on a modified basis.
 (D) That units of the Armed Forces not assigned to
 a force are available for operations other than those
 essential to fight and win a major theater war,
 including peace operations.
 (E) That the state of readiness of each force
 alternates between a state of high readiness and a
 state of low readiness on a frequency determined by the
 Secretary (but not more often than once every six
 months) and with only one force at a given state of
 readiness at any one time.
 (F) That, during the period of state of high
 readiness of a force, any operations or activities
 (including leave and education and training of
 personnel) that detract from the near-term wartime
 readiness of the force are temporary and their effects
 on such state of readiness minimized.
 (G) That units are assigned overseas during the
 period of state of high readiness of the force to which
 the units are assigned primarily on a temporary duty
 basis.
 (H) That, during the period of high readiness of a
 force, the operational war plans for the force
 incorporate the divisions (or division equivalents) of
 the Army Reserve or Army National Guard assigned to the
 force in a manner such that one such division (or
 division equivalent) is, on a rotating basis for such
 divisions (or division equivalents)during the period,
maintained in a high state of readiness and dedicated as the first
reserve combat division to be transferred overseas in the event of a
major theater war.
 (c) Report Elements.--The report under this section shall
include the following elements for the readiness posture
described in subsection (b)(2):
 (1) An estimate of the range of cost savings
 achievable over the long term as a result of
 implementing the readiness posture, including--
 (A) the savings achievable from reduced
 training levels and readiness levels during
 periods in which a force referred to in
 subsection (b)(3)(A) is in a state of low
 readiness; and
 (B) the savings achievable from reductions
 in costs of infrastructure overseas as a result
 of reduced permanent change of station
 rotations.
 (2) An assessment of the potential risks associated
 with a lower readiness status for units assigned to a
 force in a state of low readiness under the readiness
 posture, including the risks associated with the
 delayed availability of such units overseas in the
 event of two nearly simultaneous major theater wars.
 (3) An assessment of the potential risks associated
 with requiring the forces under the readiness posture
 to fight a major war in any theater worldwide.
 (4) An assessment of the modifications of the
 current force structure of the Armed Forces that are
 necessary to achieve the range of cost savings
 estimated under paragraph (1), including the extent of
 the diminishment, if any, of the military capabilities
 of the Armed Forces as a result of the modifications.
 (5) An assessment whether or not the risks of
 diminished military capability associated with
 implementation of the readiness posture exceed the
 risks of diminished military capability associated with
 the modifications of the current force structure
 necessary to achieve cost savings equivalent to the
 best case for cost savings resulting from the
 implementation of the readiness posture.
 (d) Form of Report.--The report under this section shall be
submitted in unclassified form, but may contain a classified
annex.
 (e) Definitions.--In this section:
 (1) The term ``state of high readiness'', in the
 case of a military force, means the capability to
 mobilize first-to-arrive units of the force within 18
 hours and last-to-arrive units within 120 days of a
 particular event.
 (2) The term ``state of low readiness'', in the
 case of a military force, means the capability to
 mobilize first-to-arrive units within 90 days and last-
 to-arrive units within 180 days of a particular event.

SEC. 331. REPORT ON MILITARY EXERCISES CONDUCTED UNDER CERTAIN TRAINING
 EXERCISES PROGRAMS

 (a) Report.--Not later than February 16, 1998, the
Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report on the military
exercises conducted by the Department of Defense during fiscal
years 1995, 1996, and 1997 and the military exercises planned
to be conducted during fiscal years 1998, 1999, and 2000, under
the following training exercises programs:
 (1) The program known as the ``CJCS Exercise
 Program''.
 (2) The program known as the ``Partnership for
 Peace program``.
 (3) The Cooperative Threat Reduction programs.
 (b) Information on Exercises Conducted or To Be
Conducted.--The report under subsection (a) shall include the
following information for each exercise included in the report,
which shall be set forth by fiscal year and shown within the
fiscal year by the sponsoring command:
 (1) Name of the exercise.
 (2) Type, description, duration, and objectives of
 the exercise.
 (3) Participating units, including the number of
 personnel participating in each unit.
 (4) For each participating unit, the percentage of
 the tasks on that unit's specification of tasks (known
 as a mission essential task list) or a comparable
 specification (in the case of any of the Armed Forces
 not maintaining a mission essential task list
 designation) that were performed or are scheduled to be
 performed as part of the exercise.
 (5) The cost of the exercise paid or to be paid out
 of funds available to the Chairman of the Joint Chiefs
 of Staff and the cost to each of the Armed Forces
 participating in the exercise, with a description of
 the categories of activities for which those costs are
 incurred in each such case.
 (6) In the case of each planned exercise, the
 priority of the exercise in relation to all other
 exercises planned by the sponsoring command to be
 conducted during that fiscal year.
 (7) In the case of an exercise conducted or to be
 conducted in a foreign country or with military
 personnel of a foreign country, the military forces of
 the foreign country that participated or will
 participate in the exercise.
 (c) Assessment.--The report under subsection (a) shall
include--
 (1) an assessment of the ability of each of the
 Armed Forces to meet requirements of the training
 exercises programs specified in subsection (a);
 (2) an assessment of the training value of each
 exercise covered in the report to each unit of the
 Armed Forces participating in the exercise, including
 for each such unit an assessment of the value of the
 percentage under subsection (b)(4) as an indicator of
 the training value of the exercise for that unit;
 (3) options to minimize the negative effects on
 operational and personnel tempo resulting from the
 training exercises programs; and
 (4) in the case of exercises to be conducted in a
 foreign country or with military personnel of a foreign
 country--
 (A) an assessment of the training value of
 each exercise covered in the report to the
 foreign countries involved and the extent to
 which the exercise enhances the readiness
 capabilities of all military forces involved in
 the exercise (both United States and foreign);
 and
 (B) an assessment of the benefits to be
 derived through enhanced military-to-military
 relationships between the United States and
 foreign countries.
 (d) Funding Limitation Pending Receipt of Report.--Of the
funds available for fiscal year 1998 for the conduct of the
CJCS Exercise Program, not more than 90 percent may be expended
before the date on which the report required under subsection
(a) is submitted.

SEC. 332. REPORT ON OVERSEAS DEPLOYMENTS.

 (a) Report.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to
Congress a report on the deployments overseas of members of the
Armed Forces (other than the Coast Guard). The report shall
describe the deployments as of June 30, 1996, and as of June
30, 1997.
 (b) Elements.--The report shall include the following,
shown as of each date specified in subsection (a) and shown for
the Armed Forces in the aggregate and separately for each of
the Armed Forces:
 (1) The number of military personnel deployed
 overseas pursuant to a permanent duty assignment, shown
 in the aggregate and by country or ocean to which
 deployed.
 (2) The number of military personnel deployed
 overseas pursuant to a temporary duty assignment,
 including--
 (A) the number engaged in training with
 units of a single military department;
 (B) the number engaged in United States
 military joint exercises; and
 (C) the number engaged in training with
 allied units.
 (3) The number of military personnel deployed
 overseas who were engaged in contingency operations
 (including peacekeeping or humanitarian assistance
 missions) or other activities (other than those
 personnel covered by paragraphs (1) and (2)).

 Subtitle C--Environmental Provisions

SEC. 341. REVISION OF MEMBERSHIP TERMS FOR STRATEGIC ENVIRONMENTAL
 RESEARCH AND DEVELOPMENT PROGRAM SCIENTIFIC
 ADVISORY BOARD.

 Section 2904(b)(4) of title 10, United States Code, is
amended by striking out ``three'' and inserting in lieu thereof
``not less than two and not more than four''.

SEC. 342. AMENDMENTS TO AUTHORITY TO ENTER INTO AGREEMENTS WITH OTHER
 AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY
 CERTIFICATION.

 (a) Authority To Enter Into Agreements With Indian
Tribes.--Section 327 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2483; 10
U.S.C. 2702 note) is amended--
 (1) in subsection (a), by inserting ``, or with an
 Indian tribe,'' after ``with an agency of a State or
 local government'';
 (2) by redesignating subsection (e) as subsection
 (f); and
 (3) by inserting after subsection (d) the following
 new subsection:
 ``(e) Definition.--In this section, the term `Indian tribe'
has the meaning given that term by section 101(36) of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601(36)).''.
 (b) Elimination of Certain Limitation on Authority.--
Subsection (b)(1) of such section is amended by striking out
``in carrying out its environmental restoration activities''.
 (c) Additional Report Information.--Subsection (d) of such
section is amended by adding at the end the following:
 ``(5) A statement of the funding that will be
 required to meet commitments made to State and local
 governments and Indian tribes under such agreements
 entered into during the fiscal year preceding the
 fiscal year in which the report is submitted.
 ``(6) A description of any cost-sharing arrangement
 under any such agreements.''.
 (d) Guidelines for Reimbursement and Cost-Sharing.--Not
later than 90 days after the date of enactment of this Act, the
Secretary of Defense shall submit to Congress a report setting
forth the guidelines established by the Secretary for
reimbursement of State and local governments, and for cost-
sharing between the Department of Defense, such governments,
and vendors, under cooperative agreements entered into under
such section 327.
 (e) Effective Date.--The amendments made by this section
shall take effect 30 days after the date on which the report
required by subsection (d) is submitted to Congress.

SEC. 343. MODIFICATIONS OF AUTHORITY TO STORE AND DISPOSE OF NONDEFENSE
 TOXIC AND HAZARDOUS MATERIALS.

 (a) Storage of Materials Owned by Members and Dependents.--
Subsection (a)(1) of section 2692 of title 10, United States
Code, is amended by striking out ``by the Department of
Defense.'' and inserting in lieu thereof the following:
``either by the Department of Defense or by a member of the
armed forces (or a dependent of the member) assigned to or
provided military housing on the installation.''.
 (b) Additional Authority.--Subsection (b) of such section
is amended--
 (1) by redesignating paragraphs (1) through (9) as
 paragraphs (2) through (10), respectively; and
 (2) by inserting before paragraph (2) (as so
 redesignated) the following new paragraph (1):
 ``(1) the storage, treatment, or disposal of
 materials that will be or have been used in connection
 with an activity of the Department of Defense or in
 connection with a service to be performed on an
 installation of the Department for the benefit of the
 Department;''.
 (c) Storage and Disposal of Explosives To Assist Law
Enforcement Agencies.--Subsection (b) of such section is
amended in paragraph (3) (as redesignated by subsection (b))--
 (1) by striking out ``Federal law enforcement'' and
 inserting in lieu thereof ``Federal, State, or local
 law enforcement''; and
 (2) by striking out ``Federal agency'' and
 inserting in lieu thereof ``Federal, State, or local
 agency''.
 (d) Storage of Material in Connection With Authorized and
Compatible Use of a Defense Facility.--Subsection (b) of such
section is amended in paragraph (9) (as redesignated by
subsection (b))--
 (1) by striking out ``by a private person in
 connection with the authorized and compatible use by
 that person of an industrial-type'' and inserting in
 lieu thereof ``in connection with the authorized and
 compatible use of a''; and
 (2) by striking out ``; and'' at the end and
 inserting in lieu thereof the following: ``, including
 the use of such a facility for testing materiel or
 training personnel;''.
 (e) Treatment and Disposal of Material in Connection With
Authorized and Compatible Use of a Defense Facility.--
Subsection (b) of such section is amended in paragraph (10) (as
redesignated by subsection (b))--
 (1) by striking out ``by a private person in
 connection with the authorized and compatible
 commercial use by that person of an industrial-type''
 and inserting in lieu thereof ``in connection with the
 authorized and compatible use of a'';
 (2) by striking out ``with that person'' and
 inserting in lieu thereof ``or agreement with the
 prospective user'';
 (3) by striking out ``for that person's'' in
 subparagraph (B) and inserting in lieu thereof ``for
 the prospective user's''; and
 (4) by striking out the period at the end and
 inserting in lieu thereof ``; and''.
 (f) Storage of Material in Connection With Space Launch
Facilities.--Subsection (b) of such section is further amended
by adding at the end the following new paragraph:
 ``(11) the storage of any material that is not
 owned by the Department of Defense if the Secretary of
 the military department concerned determines that the
 material is required or generated in connection with
 the use of a space launch facility located on an
 installation of the Department of Defense or on other
 land controlled by the United States.''.
 (g) Technical Amendments.--(1) Subsection (a)(1) of such
section is further amended by striking out ``storage'' and
inserting in lieu thereof ``storage, treatment,''.
 (2) The heading for such section is amended to read as
follows:

``Sec. 2692. Storage, treatment, and disposal of nondefense toxic and
 hazardous materials''.

 (3) The item relating to such section in the table of
sections at the beginning of chapter 159 of such title is
amended to read as follows:

``2692. Storage, treatment, and disposal of nondefense toxic and
 hazardous materials.''.

 (h) Savings Clause.--Nothing in the amendments made by this
section is intended to modify environmental laws or laws
relating to the siting of facilities.

SEC. 344. ANNUAL REPORT ON PAYMENTS AND ACTIVITIES IN RESPONSE TO FINES
 AND PENALTIES ASSESSED UNDER ENVIRONMENTAL LAWS.

 (a) Annual Reports.--Section 2706(b)(2) of title 10, United
States Code, is amended by adding at the end the following:
 ``(H) A statement of the fines and penalties
 imposed or assessed against the Department of Defense
 under Federal, State, or local environmental law during
 the fiscal year preceding the fiscal year in which the
 report is submitted, setting forth each Federal
 environmental statute under which a fine or penalty was
 imposed or assessed during the fiscal year, and, with
 respect to each such statute--
 ``(i) the aggregate amount of fines and
 penalties imposed or assessed during the fiscal
 year;
 ``(ii) the aggregate amount of fines and
 penalties paid during the fiscal year;
 ``(iii) the total amount required for
 environmental projects to be carried out by the
 Department of Defense in lieu of the payment of
 fines or penalties; and
 ``(iv) the number of fines and penalties
 imposed or assessed during the fiscal year that
 were--
 ``(I) $100,000 or less; and
 ``(II) more than $100,000.''.
 (b) Report in Fiscal Year 1998.--The statement submitted by
the Secretary of Defense under subparagraph (H) of section
2706(b)(2) of title 10, United States Code, as added by
subsection (a), in 1998 shall, to the maximum extent
practicable, include the information required by that
subparagraph for each of fiscal years 1994 through 1997.

SEC. 345. ANNUAL REPORT ON ENVIRONMENTAL ACTIVITIES OF THE DEPARTMENT
 OF DEFENSE OVERSEAS.

 Section 2706 of title 10, United States Code, is amended--
 (1) by redesignating subsection (d) as subsection
 (e); and
 (2) by inserting after subsection (c) the following
 new subsection (d):
 ``(d) Report on Environmental Activities Overseas.--(1) The
Secretary of Defense shall submit to Congress each year, not
later than 30 days after the date on which the President
submits to Congress the budget for a fiscal year, a report on
the environmental activities of the Department of Defense
overseas.
 ``(2) Each such report shall include a statement of the
funding levels during such fiscal year for each of the
following categories:
 ``(A) Compliance by the Department of Defense with
 requirements under a treaty, law, contract, or other
 agreement for environmental restoration or compliance
 activities.
 ``(B) Performance by the Department of Defense of
 other environmental restoration and compliance
 activities overseas.
 ``(C) Performance by the Department of Defense of
 any other overseas activities related to the
 environment, including conferences, meetings, and
 studies for pilot programs, and travel related to such
 activities.''.

SEC. 346. REVIEW OF EXISTING ENVIRONMENTAL CONSEQUENCES OF THE PRESENCE
 OF THE ARMED FORCES IN BERMUDA.

 Not later than 120 days after the date of enactment of this
Act, the Secretary of Defense shall submit to the congressional
defense committees a report on any remaining environmental
effects of the presence of the Armed Forces of the United
States in Bermuda.

SEC. 347. SENSE OF CONGRESS ON DEPLOYMENT OF UNITED STATES ARMED FORCES
 ABROAD FOR ENVIRONMENTAL PRESERVATION ACTIVITIES.

 (a) Sense of Congress.--It is the sense of Congress that
members of the Army, Navy, Air Force, and Marine Corps should
not be deployed outside the United States to provide assistance
to another nation in connection with environmental preservation
activities in that nation, unless the Secretary of Defense
determines that such activities are necessary for national security
purposes.
 (b) Scope of Section.--For purposes of this section,
environmental preservation activities do not include any of the
following:
 (1) Activities undertaken for humanitarian
 purposes, disaster relief activities, peacekeeping
 activities, or operational training activities.
 (2) Environmental compliance and restoration
 activities associated with military installations and
 deployments outside the United States.

SEC. 348. RECOVERY AND SHARING OF COSTS OF ENVIRONMENTAL RESTORATION AT
 DEPARTMENT OF DEFENSE SITES.

 (a) Regulations.--Not later than March 1, 1998, the
Secretary of Defense shall prescribe regulations containing the
guidelines and requirements described in subsections (b) and
(c).
 (b) Guidelines.--(1) The regulations prescribed under
subsection (a) shall contain uniform guidelines for the
military departments and defense agencies concerning the cost-
recovery and cost-sharing activities of those departments and
agencies.
 (2) The Secretary shall take appropriate actions to ensure
the implementation of the guidelines.
 (c) Requirements.--The regulations prescribed under
subsection (a) shall contain requirements for the Secretaries
of the military departments and the heads of defense agencies
to--
 (1) obtain all data that is relevant for purposes
 of cost-recovery and cost-sharing activities; and
 (2) identify any negligence or other misconduct
 that may preclude indemnification or reimbursement by
 the Department of Defense for the costs of
 environmental restoration at a Department site or
 justify the recovery or sharing of costs associated
 with such restoration.
 (d) Definition.--In this section, the term ``cost-recovery
and cost-sharing activities'' means activities concerning--
 (1) the recovery of the costs of environmental
 restoration at Department of Defense sites from
 contractors of the Department and other private parties
 that contribute to environmental contamination at such
 sites; and
 (2) the sharing of the costs of such restoration
 with such contractors and parties.

SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE ENVIRONMENTAL
 TECHNOLOGIES.

 (a) Authority.--Subject to subsection (b), the Secretary of
Defense may enter into a partnership with one or more private
entities to demonstrate and validate innovative environmental
technologies.
 (b) Limitations.--The Secretary of Defense may enter into a
partnership with respect to an environmental technology under
subsection (a) only if--
 (1) any private entities participating in the
 partnership are selected through the use of competitive
 procedures;
 (2) the partnership provides for parties other than
 the Department of Defense to provide at least 50
 percent of the funding required (not including in-kind
 contributions or preexisting investments); and
 (3) the Secretary determines that--
 (A) the technology has clear potential to
 be of significant value to the Department of
 Defense in its environmental remediation
 activities at a substantial number of
 Department of Defense sites; and
 (B) the technology would not be developed
 without the commitment of Department of Defense
 funds.
 (c) Evaluation Guidelines.--Before entering into a
partnership with respect to an environmental technology under
subsection (a), the Secretary of Defense shall give
consideration to the following:
 (1) The potential for the technology to be used by
 the Department of Defense for environmental
 remediation.
 (2) The technical feasibility and maturity of the
 technology.
 (3) The adequacy of financial and management plans
 to demonstrate and validate the technology.
 (4) The costs and benefits to the Department of
 Defense of developing and using the technology.
 (5) The potential for commercialization of the
 technology.
 (6) The proposed arrangements for sharing the costs
 of the partnership through the use of resources outside
 the Department of Defense.
 (d) Funding.--Under a partnership entered into under
subsection (a), the Secretary of Defense may provide funds to
the partner or partners from appropriations available to the
Department of Defense for environmental activities, for a
period of up to five years.
 (e) Report.--In the annual report required under section
2706(a) of title 10, United States Code, the Secretary of
Defense shall include the following information with respect to
partnerships entered into under this section:
 (1) The number of such partnerships.
 (2) A description of the nature of the technology
 involved in each such partnership.
 (3) A list of all partners in such partnerships.
 (f) Coordination.--The Secretary of Defense shall ensure
that the Department of Defense coordinates with the
Administrator of the Environmental Protection Agency in any
verification sponsored by the Department of technologies
demonstrated and validated by a partnership entered into under
this section.
 (g) Procedures.--The Secretary of Defense shall develop
appropriate procedures to ensure that all Department of Defense
funds committed to a partnership entered into under this
section are expended for the purpose authorized in the
partnership agreement. The Secretary may not enter into a
partnership under this section until 30 days after the date on
which a copy of such procedures is provided to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives.
 (h) Termination of Authority.--The authority to enter into
agreements under subsection (a) shall terminate three years
after the date of the enactment of this Act.

SEC. 350. PROCUREMENT OF RECYCLED COPIER PAPER.

 (a) Procurement Requirements.--Chapter 140 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 2378. Procurement of copier paper containing specified
 percentages of post-consumer recycled content

 ``(a) Procurement Requirement.--(1) Except as provided in
subsections (b) and (c), a department or agency of the
Department of Defense may not procure copying machine paper
after the applicable date specified in paragraph (2) unless the
percentage of post-consumer recycled content of the paper meets
the percentage then in effect under such paragraph.
 ``(2) The percentage of post-consumer recycled content of
paper required under paragraph (1) is as follows:
 ``(A) 20 percent as of January 1, 1998.
 ``(B) 30 percent as of January 1, 1999.
 ``(C) 50 percent as of January 1, 2004.
 ``(b) Exceptions.--A department or agency of the Department
of Defense is not required to procure copying machine paper
containing a percentage of post-consumer recycled content that
meets the applicable requirement in subsection (a) if the
Secretary concerned determines that one or more of the
following circumstances apply with respect to that procurement:
 ``(1) The cost of procuring copying machine paper
 satisfying the applicable requirement significantly
 exceeds the cost of procuring copying machine paper
 containing a percentage of post-consumer recycled
 content that does not meet such requirement. The
 Secretary concerned shall establish the cost
 differential to be applied under this paragraph.
 ``(2) Copying machine paper containing a percentage
 of post-consumer recycled content meeting such
 requirement is not reasonably available within a
 reasonable period of time.
 ``(3) Copying machine paper containing a percentage
 of post-consumer recycled content meeting such
 requirement does not meet performance standards of the
 department or agency for copying machine paper.
 ``(c) Effect of Inability To Meet Goal in 2004.--(1) In the
case of the requirement that will take effect on January 1,
2004, pursuant to subsection (a)(2)(C), the requirement shall
not take effect with respect to a military department or
Defense Agency if the Secretary of Defense determines that the
department or agency will be unable to meet such requirement by
that date.
 ``(2) The Secretary shall submit to Congress written notice
of any determination made under paragraph (1) and the reasons
for the determination. The Secretary shall submit such notice,
if at all, not later than January 1, 2003.
 ``(d) Secretary Concerned Defined.--In this section, the
term `Secretary concerned' means the Secretary of each military
department and the Secretary of Defense with respect to the
Defense Agencies.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2378. Procurement of copier paper containing specified percentages of
 post-consumer recycled content.''.

SEC. 351. PILOT PROGRAM FOR THE SALE OF AIR POLLUTION EMISSION
 REDUCTION INCENTIVES.

 (a) Authority.--(1) The Secretary of Defense may, in
consultation with the Administrator of General Services, carry
out a pilot program to assess the feasibility and advisability
of the sale of economic incentives for the reduction of
emission of air pollutants attributable to a facility of a
military department.
 (2) The Secretary may carry out the pilot program during
the period beginning on the date of the enactment of this Act
and ending two years after such date.
 (b) Incentives Available for Sale.--(1) Under the pilot
program, the Secretary may sell economic incentives for the
reduction of emission of air pollutants attributable to a
facility of a military department only if such incentives are
not otherwise required for the activities or operations of the
military department.
 (2) The Secretary may not, under the pilot program, sell
economic incentives attributable to the closure or realignment
of a military installation under a base closure law.
 (3) If the Secretary determines that additional sales of
economic incentives are likely to result in amounts available
for allocation under subsection (c)(2) in a fiscal year in
excess of the limitation set forth in subparagraph (B) of that
subsection, the Secretary shall not carry out such additional
sales in that fiscal year.
 (c) Use of Proceeds.--(1) The proceeds of sale of economic
incentives attributable to a facility of a military department
shall be credited to the funds available to the facility for
the costs of identifying, quantifying, or valuing economic
incentives for the reduction of emission of air pollutants. The
amount credited shall be equal to the cost incurred in
identifying, quantifying, or valuing the economic incentives
sold.
 (2)(A)(i) If after crediting under paragraph (1) a balance
remains, the amount of such balance shall be available to the
Department of Defense for allocation by the Secretary to the
military departments for programs, projects, and activities
necessary for compliance with Federal environmental laws,
including the purchase of economic incentives for the reduction
of emission of air pollutants.
 (ii) To the extent practicable, amounts allocated to the
military departments under this subparagraph shall be made
available to the facilities that generated the economic
incentives providing the basis for the amounts.
 (B) The total amount allocated under this paragraph in a
fiscal year from sales of economic incentives may not equal or
exceed $500,000.
 (3) If after crediting under paragraph (1) a balance
remains in excess of an amount equal to the limitation set
forth in paragraph (2)(B), the amount of the excess shall be
covered over into the Treasury as miscellaneous receipts.
 (4) Funds credited under paragraph (1) or allocated under
paragraph (2) shall be merged with the funds to which credited
or allocated, as the case may be, and shall be available for
the same purposes and for the same period as the funds with
which merged.
 (d) Definitions.--In this section:
 (1) The term ``base closure law'' means the
 following:
 (A) Section 2687 of title 10, United States
 Code.
 (B) Title II of the Defense Authorization
 Amendments and Base Closure and Realignment Act
 (Public Law 100-526; 10 U.S.C. 2687 note).
 (C) The Defense Base Closure and
 Realignment Act of 1990 (part A of title XXIX
 of Public Law 101-510; 10 U.S.C. 2687 note).
 (2) The term ``economic incentives for the
 reduction of emission of air pollutants'' means any
 transferable economic incentives (including marketable
 permits and emission rights) necessary or appropriate
 to meet air quality requirements under the Clean Air
 Act (42 U.S.C. 7401 et seq.).

 Subtitle D--Depot-Level Activities

SEC. 355. DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

 (a) Depot-Level Maintenance and Repair Defined.--Chapter
146 of title 10, United States Code, is amended by inserting
before section 2461 the following new section:

``Sec. 2460. Definition of depot-level maintenance and repair

 ``(a) In General.--In this chapter, the term `depot-level
maintenance and repair' means (except as provided in subsection
(b)) material maintenance or repair requiring the overhaul,
upgrading, or rebuilding of parts, assemblies, or
subassemblies, and the testing and reclamation of equipment as
necessary, regardless of the source of funds for the
maintenance or repair. The term includes (1) all aspects of
software maintenance classified by the Department of Defense as
of July 1, 1995, as depot-level maintenance and repair, and (2)
interim contractor support or contractor logistics support (or
any similar contractor support), to the extent that such
support is for the performance of services described in the
preceding sentence.
 ``(b) Exceptions.--(1) The term does not include the
procurement of major modifications or upgrades of weapon
systems that are designed to improve program performance or the
nuclear refueling of an aircraft carrier. A major upgrade
program covered by this exception could continue to be
performed by private or public sector activities.
 ``(2) The term also does not include the procurement of
parts for safety modifications. However, the term does include
the installation of parts for that purpose.''.
 (b) Conforming Amendment.--Section 2469 of title 10, United
States Code, is amended in subsections (a) and (b), by striking
out ``or repair'' and inserting in lieu thereof ``and repair''.
 (c) Clerical Amendments.--(1) The table of sections at the
beginning of chapter 146 of title 10, United States Code, is
amended by inserting before the item relating to section 2461
the following new item:

``2460. Definition of depot-level maintenance and repair.''.

 (2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part IV of subtitle A, of such title
are amended by striking out the item relating to chapter 146
and inserting in lieu thereof the following new item:

``146. Contracting for Performance of Civilian Commercial or
 Industrial Type Functions..........................2460''.

SEC. 356. CORE LOGISTICS CAPABILITIES OF DEPARTMENT OF DEFENSE.

 (a) In General.--Section 2464 of title 10, United States
Code, is amended to read as follows:

``Sec. 2464. Core logistics capabilities

 ``(a) Necessity for Core Logistics Capabilities.--(1) It is
essential for the national defense that the Department of
Defense maintain a core logistics capability that is
Government-owned and Government-operated (including Government
personnel and Government-owned and Government-operated
equipment and facilities) to ensure a ready and controlled
source of technical competence and resources necessary to
ensure effective and timely response to a mobilization,
national defense contingency situations, and other emergency
requirements.
 ``(2) The Secretary of Defense shall identify the core
logistics capabilities described in paragraph (1) and the
workload required to maintain those capabilities.
 ``(3) The core logistics capabilities identified under
paragraphs (1) and (2) shall include those capabilities that
are necessary to maintain and repair the weapon systems and
other military equipment (including mission-essential weapon
systems or materiel not later than four years after achieving
initial operational capability, but excluding systems and
equipment under special access programs, nuclear aircraft
carriers, and commercial items described in paragraph (5)) that
are identified by the Secretary, in consultation with the
Chairman of the Joint Chiefs of Staff, as necessary to enable
the armed forcesto fulfill the strategic and contingency plans
prepared by the Chairman of the Joint Chiefs of Staff under section
153(a) of this title.
 ``(4) The Secretary of Defense shall require the
performance of core logistics workloads necessary to maintain
the core logistics capabilities identified under paragraphs
(1), (2), and (3) at Government-owned, Government-operated
facilities of the Department of Defense (including Government-
owned, Government-operated facilities of a military department)
and shall assign such facilities sufficient workload to ensure
cost efficiency and technical competence in peacetime while
preserving the surge capacity and reconstitution capabilities
necessary to support fully the strategic and contingency plans
referred to in paragraph (3).
 ``(5) The commercial items covered by paragraph (3) are
commercial items that have been sold or leased in substantial
quantities to the general public and are purchased without
modification in the same form that they are sold in the
commercial marketplace, or with minor modifications to meet
Federal Government requirements.
 ``(b) Limitation on Contracting.--(1) Except as provided in
paragraph (2), performance of workload needed to maintain a
logistics capability identified by the Secretary under
subsection (a)(2) may not be contracted for performance by non-
Government personnel under the procedures and requirements of
Office of Management and Budget Circular A-76 or any successor
administrative regulation or policy (hereinafter in this
section referred to as OMB Circular A-76).
 ``(2) The Secretary of Defense may waive paragraph (1) in
the case of any such logistics capability and provide that
performance of the workload needed to maintain that capability
shall be considered for conversion to contractor performance in
accordance with OMB Circular A-76. Any such waiver shall be
made under regulations prescribed by the Secretary and shall be
based on a determination by the Secretary that Government
performance of the workload is no longer required for national
defense reasons. Such regulations shall include criteria for
determining whether Government performance of any such workload
is no longer required for national defense reasons.
 ``(3)(A) A waiver under paragraph (2) may not take effect
until the expiration of the first period of 30 days of
continuous session of Congress that begins on or after the date
on which the Secretary submits a report on the waiver to the
Committee on Armed Services and the Committee on Appropriations
of the Senate and the Committee on National Security and the
Committee on Appropriations of the House of Representatives.
 ``(B) For the purposes of subparagraph (A)--
 ``(i) continuity of session is broken only by an
 adjournment of Congress sine die; and
 ``(ii) the days on which either House is not in
 session because of an adjournment of more than three
 days to a day certain are excluded in the computation
 of any period of time in which Congress is in
 continuous session.''.
 (b) Clerical Amendment.--The item relating to such section
at the beginning of chapter 146 of such title is amended to
read as follows:

``2464. Core logistics capabilities.''.

SEC. 357. INCREASE IN PERCENTAGE OF DEPOT-LEVEL MAINTENANCE AND REPAIR
 THAT MAY BE CONTRACTED FOR PERFORMANCE BY NON-
 GOVERNMENT PERSONNEL.

 Section 2466(a) of title 10, United States Code, is amended
by striking out ``40 percent'' and inserting in lieu thereof
``50 percent''.

SEC. 358. ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

 Subsection (e) of section 2466 of title 10, United States
Code, is amended to read as follows:
 ``(e) Report.--(1) Not later than February 1 of each year,
the Secretary of Defense shall submit to Congress a report
identifying, for each military department and Defense Agency,
the percentage of the funds referred to in subsection (a) that
were expended during the preceding fiscal year for performance
of depot-level maintenance and repair workloads bythe public
and private sectors as required by section 2466 of this title.
 ``(2) Not later than 90 days after the date on which the
Secretary submits the annual report under paragraph (1), the
Comptroller General shall submit to Congress the Comptroller
General's views on whether the Department of Defense has
complied with the requirements of subsection (a) for the fiscal
year covered by the report.''.

SEC. 359. REQUIREMENT FOR USE OF COMPETITIVE PROCEDURES IN CONTRACTING
 FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE AND
 REPAIR WORKLOADS FORMERLY PERFORMED AT CLOSED OR
 REALIGNED MILITARY INSTALLATIONS.

 (a) Application to certain Workloads.--(1) Chapter 146 of
title 10, United States Code, is amended by inserting after
section 2469 the following new section:

``Sec. 2469a. Use of competitive procedures in contracting for
 performance of depot-level maintenance and repair
 workloads formerly performed at certain military
 installations

 ``(a) Definitions.--In this section:
 ``(1) The term `closed or realigned military
 installation' means a military installation where a
 depot-level maintenance and repair facility was
 approved in 1995 for closure or realignment under the
 Defense Base Closure and Realignment Act of 1990 (part
 A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
 note).
 ``(2) The term `military installation' includes a
 former military installation that was a military
 installation when it was approved in 1995 for closure
 or realignment under the Defense Base Closure and
 Realignment Act of 1990 and that has been closed or
 realigned under the Act.
 ``(3) The terms `realignment' and `realigned' mean
 a decision under the Defense Base Closure and
 Realignment Act of 1990 that results in both a
 reduction and relocation of functions and civilian
 personnel positions.
 ``(b) Covered Depot-Level Maintenance and Repair
Workloads.--Except as provided in subsection (c), this section
applies with respect to any depot-level maintenance and repair
workload that--
 ``(1) was performed as of January 1, 1997, at a
 military installation that was approved in 1995 for
 closure or realignment under the Defense Base Closure
 and Realignment Act of 1990 and that has been closed or
 realigned under the Act; and
 ``(2) is proposed to be converted from performance
 by Department of Defense personnel to performance by a
 private sector source.
 ``(c) Exceptions.--This section shall not apply with
respect to--
 ``(1) a depot-level maintenance and repair workload
 that is to be consolidated to another military
 installation (other than a closed or realigned military
 installation) as a result of a base closure or
 realignment action or a decision made by the Secretary
 concerned or the Defense Depot Maintenance Council;
 ``(2) a workload necessary to maintain a core
 logistics capability identified under section 2464 of
 this title; or
 ``(3) any contract originally entered into before
 the date of the enactment of the National Defense
 Authorization Act for Fiscal Year 1998.
 ``(d) Conditions and Solicitation.--A solicitation of
offers for the performance of any depot-level maintenance and
repair workload described in subsection (b) may be issued, and
a contract may be awarded pursuant to such a solicitation, only
if the following conditions are met with respect to the
contract and the solicitation specifically states the
conditions:
 ``(1) The source selection process used in the case
 of the solicitation and contract permits the
 consideration of offers submitted by private sector
 sources and offers submitted by public sector sources.
 ``(2) The source selection process used in the case
 of the solicitation and contract requires that, in the
 comparison of offers, there be taken into account--
 ``(A) the fair market value (or if fair
 market value cannot be determined, the
 estimated book value) of any land, plant, or
 equipment from a military installation that is
 proposed by a private offeror to be used to
 meet a specific workload (whether these assets
 are provided to the offeror by a local
 redevelopment authority or by any other source
 approved by an official of the Department of
 Defense); and
 ``(B) the total estimated direct and
 indirect costs that will be incurred by the
 Department of Defense and the total estimated
 direct and indirect savings (including
 overhead) that will be derived by the
 Department of Defense.
 ``(3) The cost standards used to determine the
 depreciation of facilities and equipment shall, to the
 maximum extent practicable, provide identical treatment
 to all public and private sector offerors.
 ``(4) Any offeror, whether public or private, may
 offer to perform the workload at any location or
 locations selected by the offeror and to team with any
 other public or private entity to perform that workload
 at one or more locations, including a Center of
 Industrial and Technical Excellence designated under
 section 2474 of this title.
 ``(5) No offeror may be given any preferential
 consideration for, or in any way be limited to,
 performing the workload in-place or at any other single
 location.
 ``(e) Contracts for Multiple Workloads.--(1) A solicitation
may be issued for a single contract for the performance of
multiple depot-level maintenance and repair workloads described
in subsection (b) only if--
 ``(A) the Secretary of Defense determines in
 writing that the individual workloads cannot as
 logically and economically be performed without
 combination by sources that are potentially qualified
 to submit an offer and to be awarded a contract to
 perform those individual workloads;
 ``(B) the Secretary submits to Congress a report
 setting forth the determination together with the
 reasons for the determination; and
 ``(C) the solicitation of offers for the contract
 is issued more than 60 days after the date on which the
 Secretary submits the report.
 ``(2) The Comptroller General shall review each report
submitted under paragraph (1)(B) and, not later than 30 days
after the report is submitted to Congress, shall submit to
Congress the Comptroller General's views regarding the
determination of the Secretary that is set forth in the report,
together with any other findings that the Comptroller General
considers appropriate.
 ``(f) Competitive Procedures Required.--Section 2304(c)(7)
of this title shall not be used as the basis for an exception
to the requirement to use competitive procedures for any
contract for a depot-level maintenance and repair workload
described in subsection (b).
 ``(g) Reviews of Competitive Procedures.--If a solicitation
of offers for a contract for, or award of, any depot-level
maintenance and repair workload described in subsection (b) is
issued, the Comptroller General shall--
 ``(1) within 45 days after the issuance of the
 solicitation, review the solicitation and report to
 Congress on whether the solicitation--
 ``(A) provides substantially equal
 opportunity for public and private offerors to
 compete for the contract without regard to the
 location at which the workload is to be
 performed; and
 ``(B) is in compliance with the
 requirements of this section and all applicable
 provisions of law and regulations; and
 ``(2) within 45 days after any contract or award
 resulting from the solicitation is entered into or
 made, reviewthe contract or award, including the
contracting or award process, and report to Congress on whether--
 ``(A) the procedures used to conduct the
 competition--
 ``(i) provided substantially equal
 opportunity for public and private
 offerors to compete for the contract
 without regard to the location at which
 the workload is to be performed; and
 ``(ii) were in compliance with the
 requirements of this section and all
 applicable provisions of law and
 regulations;
 ``(B) appropriate consideration was given
 to factors other than cost in the selection of
 the source for performance of the workload; and
 ``(C) the contract or award resulted in the
 lowest total cost to the Department of Defense
 for performance of the workload.
 ``(h) Resolution of Workload Award Objections.--Any public
or private entity may, pursuant to procedures established by
the Secretary, object to a solicitation of offers under this
section for the performance of any depot-level maintenance and
repair workload, or the award or proposed award of any workload
pursuant to such a solicitation. The Secretary may designate a
qualified individual or entity to review the objection;
however, the Secretary shall not designate the Source Selection
Authority or any individual from the same military department
as the Source Selection Authority to review the objection. The
Secretary shall take appropriate action to address any defect
in the solicitation or award in the event that the objection is
sustained.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2469
the following new item:

``2469a. Use of competitive procedures in contracting for performance of
 depot-level maintenance and repair workloads formerly
 performed at certain military installations.''.

 (b) Limitation Relating to Timing of Solicitation.--The
first solicitation of offers from private sector sources for
the performance of a depot-level maintenance and repair
workload described in subsection (b) of section 2469a of title
10, United States Code, as added by subsection (a), may be
issued pursuant to such section only after the date that is 30
days after the latest of the following:
 (1) The date on which the Secretary of Defense
 publishes and submits to Congress a plan or Department
 of Defense directive that sets forth the specific
 procedures for the conduct of competitions among
 private and public sector entities for such depot-level
 maintenance and repair workloads.
 (2) The date on which the Secretary of Defense
 submits to Congress the report on allocation of
 workloads required under subsection (c).
 (3) The date on which the Comptroller General is
 required to submit the report to Congress under
 subsection (d).
 (c) Report of Allocation of Workload.--Before any
solicitation of offers for the performance by a private sector
source of a depot-level maintenance and repair workload at a
closed or realigned installation described in subsection (b) of
section 2469a of title 10, United States Code, as added by
subsection (a), is to be issued, the Secretary of Defense shall
submit to Congress a report describing the allocation proposed
by the Secretary of all workloads that were performed at that
closed or realigned military installation (as defined in
subsection (a) of such section) as of July 1, 1995, including--
 (1) the workloads that are considered to be core
 logistics functions under section 2464 of such title;
 (2) the workloads that are proposed to be
 transferred to a military installation other than a
 closed or realigned military installation;
 (3) the workloads that are proposed to be included
 in the public-private competitions carried out under
 section 2469a of such title, and, if any of such
 workloads are to be combined for purposes of such a
 competition, the reasons for combining the workloads,
 together with a description of how the workloads are to
 be combined;
 (4) any workload that has been determined within
 the Department of Defense as no longer being necessary;
 (5) the proposed schedule for implementing the
 allocations covered by the report; and
 (6) the anticipated capacity utilization of the
 military installations and former military
 installations to which workloads are to be transferred,
 based on the maximum potential capacity certified to
 the 1995 Defense Base Closure and Realignment
 Commission, after the transfers are completed (not
 taking into account any workloads that may be
 transferred as a result of a public-private competition
 carried out under section 2469a of such title, as
 described in paragraph (3)).
 (d) Review Regarding Award for C-5 Aircraft Workload.--(1)
The Comptroller General shall conduct a review of the award for
the performance of the C-5 aircraft workload that was made to
Warner Robins Air Logistics Center. As part of the review, the
Comptroller General shall--
 (A) determine whether the procedures used to
 conduct the competition--
 (i) provided substantially equal
 opportunity for public and private offerors to
 compete for the award without regard to the
 location at which the workload is to be
 performed; and
 (ii) are in compliance with the
 requirements of all applicable provisions of
 law and the Federal Acquisition Regulation; and
 (B) determine whether that award results in the
 lowest total cost to the Department of Defense for
 performance of the workload.
 (2) Not later than 60 days after the date of the enactment
of this Act, the Comptroller General shall submit to Congress a
report containing the results of the review.

SEC. 360. CLARIFICATION OF PROHIBITION ON MANAGEMENT OF DEPOT EMPLOYEES
 BY CONSTRAINTS ON PERSONNEL LEVELS.

 Section 2472(a) of title 10, United States Code, is amended
by striking out the first sentence and inserting in lieu
thereof the following: ``The civilian employees of the
Department of Defense, including the civilian employees of the
military departments and the Defense Agencies, who perform, or
are involved in the performance of, depot-level maintenance and
repair workloads may not be managed on the basis of any
constraint or limitation in terms of man years, end strength,
full-time equivalent positions, or maximum number of
employees.''.

SEC. 361. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

 (a) Designation and Purpose.--(1) Chapter 146 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 2474. Centers of Industrial and Technical Excellence:
 designation; public-private partnerships

 ``(a) Designation.--(1) The Secretary of Defense shall
designate each depot-level activity of the military departments
and the Defense Agencies (other than facilities approved for
closure or major realignment under the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note)) as a Center of Industrial and
Technical Excellence in the recognized core competencies of the
activity.
 ``(2) The Secretary shall establish a policy to encourage
the Secretary of each military department and the head of each
Defense Agency to reengineer industrial processes and adopt
best-business practices at their depot-level activities in
connection with their core competency requirements, so as to
serve as recognized leaders in their core competencies
throughout the Department of Defense and in the national
technology and industrial base (as defined in section 2500(1)
of this title).
 ``(3) The Secretary of a military department may conduct a
pilot program, consistent with applicable requirements of law,
to test any practices referred to in paragraph (2) that the
Secretary determines could improve the efficiency and
effectiveness of depot-level operations, improve the support
provided by depot-level activities for the armed forces user of
the services of such activities, and enhance readiness by
reducing the time that it takes to repair equipment.
 ``(b) Public-Private Partnerships.--The Secretary of
Defense shall enable Centers of Industrial and Technical
Excellence to enter into public-private cooperative
arrangements for the performance of depot-level maintenance and
repair at such Centers and shall encourage the use of such
arrangements to maximize the utilization of the capacity at
such Centers. A public-private cooperative arrangement under
this subsection shall be known as a `public-private
partnership'.
 ``(c) Crediting of Amounts for Performance.--Amounts
received by a Center for work performed under a public-private
partnership shall be credited to the appropriation or fund,
including a working-capital fund, that incurs the cost of
performing the work.
 ``(d) Additional Work.--The policy required under
subsection (a) shall include measures to enable a private
sector entity that enters into a partnership arrangement under
subsection (b) or leases excess equipment and facilities at a
Center of Industrial and Technical Excellence pursuant to
section 2471 of this title to perform additional work at the
Center, subject to the limitations outlined in subsection (b)
of such section, outside of the types of work normally assigned
to the Center.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2474. Centers of Industrial and Technical Excellence: designation;
 public-private partnerships.''.

 (b) Lease of Excess Depot-Level Equipment and Facilities.--
(1) Section 2471(c) of such title is amended to read as
follows:
 ``(c) Conformance With Authority Under Section 2667.--The
provisions of subsection (d) of section 2667 of this title
shall apply to this section in the same manner as such
provisions are applicable under that section.''.
 (2) Section 2667(d)(2) of such title is amended by
inserting ``or working capital fund'' before ``from which''.
 (c) Reporting Requirement.--Not later than March 1, 1999,
the Secretary of Defense shall submit to Congress a report on
the policies established by the Secretary pursuant to section
2474 of title 10, United States Code, to implement the
requirements of such section. The report shall include--
 (1) the details of any public-private partnerships
 entered into as of that date under subsection (b) of
 such section;
 (2) the details of any leases entered into as of
 that date under section 2471 of such title with
 authorized entities for dual-use (military and
 nonmilitary) purposes; and
 (3) the effect that the partnerships and leases had
 on capacity utilization, depot rate structures, and
 readiness.

SEC. 362. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL
 SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION
 AND SERVICES.

 Section 1425(e) of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is
amended by striking out ``September 30, 1997'' and inserting in
lieu thereof ``September 30, 1999''.

SEC. 363. REPEAL OF A CONDITIONAL REPEAL OF CERTAIN DEPOT-LEVEL
 MAINTENANCE AND REPAIR LAWS AND A RELATED REPORTING
 REQUIREMENT.

 Section 311 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 247; 10 U.S.C.
2464 note) is amended by striking out subsections (f) and (g).

SEC. 364. PERSONNEL REDUCTIONS, ARMY DEPOTS PARTICIPATING IN ARMY
 WORKLOAD AND PERFORMANCE SYSTEM.

 (a) Limitation.--Except as necessary to implement BRAC 1995
decisions at Red River Army Depot, Texas, and Letterkenny Army
Depot, Pennsylvania, the Secretary of the Army may not initiate
a reduction in force of civilian employees at the five Army
depots participating in the demonstration and testing of the
Army Workload and Performance System until after the date on
which the Secretary submits to Congress a report certifying
that the Army Workload and Performance System is fully
operational.
 (b) BRAC 1995 Decisions Defined.--The term ``BRAC 1995
decisions'' means the decisions to close or realign certain
military installations resulting from the recommendations
approved in 1995 under the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note).

SEC. 365. REPORT ON ALLOCATION OF CORE LOGISTICS ACTIVITIES AMONG
 DEPARTMENT OF DEFENSE FACILITIES AND PRIVATE SECTOR
 FACILITIES.

 (a) Report.--Not later than May 31, 1998, the Secretary of
Defense shall submit to Congress a report on the allocation
among facilities of the Department of Defense and facilities in
the private sector of the logistics activities that are
necessary to maintain and repair the weapon systems and other
military equipment identified by the Secretary, in consultation
with the Chairman of the Joint Chiefs of Staff, as being
necessary to enable the Armed Forces to conduct a strategic or
major theater war.
 (b) Elements.--The report under subsection (a) shall set
forth the following:
 (1) The systems or equipment identified under
 subsection (a) that must be maintained and repaired in
 Government-owned, Government-operated facilities, using
 personnel and equipment of the Department, as a result
 of the Secretary's determination that--
 (A) the work involves unique or valuable
 workforce skills that should be maintained in
 the public sector in the national interest;
 (B) the base of private sector sources
 having the capability to perform the workloads
 includes industry sectors that are vulnerable
 to work stoppages;
 (C) the private sector sources having the
 capability to perform the workloads have
 insufficient workforce levels or skills to
 perform the depot-level maintenance and repair
 workloads--
 (i) in the quantity necessary, or
 as rapidly as the Secretary considers
 necessary, to enable the armed forces
 to fulfill the national military
 strategy; or
 (ii) without a significant
 disruption or delay in the maintenance
 and repair of equipment;
 (D) the need for performance of workloads
 is too infrequent, cyclical, or variable to
 sustain a reliable base of private sector
 sources having the workforce levels or skills
 to perform the workloads;
 (E) the market conditions or workloads are
 insufficient to ensure that the price of
 private sector performance of the workloads can
 be controlled through competition or other
 means;
 (F) private sector sources are not
 adequately responsive to the requirements of
 the Department for rapid, cost-effective, and
 flexible response to surge requirements or
 other contingency situations, including changes
 in the mix or priority of previously scheduled
 workloads and reassignment of employees to
 different workloads without the requirement for
 additional contractual negotiations;
 (G) private sector sources are less willing
 to assume responsibility for performing the
 workload as a result of the possibility of
 direct military or terrorist attack; or
 (H) private sector sources cannot maintain
 continuity of workforce expertise as a result
 of high rates of employee turnover.
 (2) The systems or equipment identified under
 subsection (a) that must be maintained and repaired in
 Government-owned facilities, whether Government
 operated or contractor-operated, as a result of the
 Secretary's determination that--
 (A) the work involves facilities,
 technologies, or equipment that are unique and
 sufficiently valuable that the facilities,
 technologies, or equipment must be maintained
 in the public sector in the national interest;
 (B) the private sector sources having the
 capability to perform the workloads have
 insufficient facilities, technology, or
 equipment to perform the depot-level
 maintenance and repair workloads--
 (i) in the quantity necessary, or
 as rapidly as the Secretary considers
 necessary, to enable the armed forces
 to fulfill the national military
 strategy; or
 (ii) without a significant
 disruption or delay in the maintenance
 and repair of equipment; or
 (C) the need for performance of workloads
 is too infrequent, cyclical, or variable to
 sustain a reliable base of private sector
 sources having the facilities, technology, or
 equipment to perform the workloads.
 (3) The systems or equipment identified under
 subsection (a) that may be maintained and repaired in
 private sector facilities.
 (4) The approximate percentage of the total
 maintenance and repair workload of the Department of
 Defense necessary for the systems and equipment
 identified under subsection (a) that would be performed
 at Department of Defense facilities, and at private
 sector facilities, as a result of the determinations
 made for purposes of paragraphs (1), (2), and (3).

SEC. 366. REVIEW OF USE OF TEMPORARY DUTY ASSIGNMENTS FOR SHIP REPAIR
 AND MAINTENANCE.

 (a) Findings.--Congress makes the following findings:
 (1) In order to reduce the time that the crew of a
 naval vessel is away from the homeport of the vessel,
 the Navy seeks to perform ship repair and maintenance
 of the vessel at the homeport of the vessel whenever it
 takes six months or less to accomplish the work
 involved.
 (2) At the same time, the Navy seeks to distribute
 ship repair and maintenance work among the Navy
 shipyards (known as to ``level load'') in order to more
 fully utilize personnel resources.
 (3) During periods when a Navy shipyard is not
 utilized to its capacity, the Navy sometimes sends
 workers at the shipyard, on a temporary duty basis, to
 perform ship repairs and maintenance at a homeport not
 having a Navy shipyard.
 (4) This practice is a more efficient use of
 civilian employees who might otherwise not be fully
 employed on work assigned to Navy shipyards.
 (b) Comptroller General Review and Report.--(1) The
Comptroller General shall review the Navy's practice of using
temporary duty assignments of personnel to perform ship
maintenance and repair work at homeports not having Navy
shipyards. The review shall include the following:
 (A) An assessment of the rationale, conditions, and
 factors supporting the Navy's practice.
 (B) A determination of whether the practice is
 cost-effective.
 (C) The factors affecting future requirements for,
 and the adherence to, the practice, together with an
 assessment of the factors.
 (2) Not later than May 1, 1998, the Comptroller General
shall submit a report on the review to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives.

SEC. 367. SENSE OF CONGRESS REGARDING REALIGNMENT OF PERFORMANCE OF
 GROUND COMMUNICATION-ELECTRONIC WORKLOAD.

 It is the sense of Congress that the transfer of the ground
communication-electronic workload to Tobyhanna Army Depot,
Pennsylvania, in the realignment of the performance of such
function should be carried out in adherence to the schedule
prescribed for that transfer by the Defense Depot Maintenance
Council on March 13, 1997, as follows:
 (1) Transfer of 20 percent of the workload in
 fiscal year 1998.
 (2) Transfer of 40 percent of the workload in
 fiscal year 1999.
 (3) Transfer of 40 percent of the workload in
 fiscal year 2000.

 Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 371. REORGANIZATION OF LAWS REGARDING COMMISSARIES AND EXCHANGES
 AND OTHER MORALE, WELFARE, AND RECREATION
 ACTIVITIES.

 (a) Description of Chapter.--(1) The heading of chapter 147
of title 10, United States Code, is amended to read as follows:

 ``CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,
 AND RECREATION ACTIVITIES''.

 (2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part IV of subtitle A, of such title
are amended by striking out the item relating to chapter 147
and inserting in lieu thereof the following new item:

``147. Commissaries and Exchanges and Other Morale, Welfare, and
 Recreation Activities..............................2481''.

 (b) Transfer and Redesignation of Unrelated Provisions.--
(1) Section 2481 of title 10, United States Code, is
transferred to chapter 159 of such title, inserted after
section 2685, and redesignated as section 2686.
 (2) Sections 2483 and 2490 of such title are transferred to
the end of subchapter III of chapter 169 of such title and
redesignated as sections 2867 and 2868, respectively.
 (3) Section 2491 of such title is redesignated as section
2500.
 (c) Clerical Amendments.--(1) The table of sections at the
beginning of chapter 147 of title 10, United States Code, is
amended by striking out the items relating to sections 2481,
2483, and 2490.
 (2) The table of sections at the beginning of chapter 159
of such title is amended by inserting after the item relating
to section 2685 the following new item:

``2686. Utilities and services: sale; expansion and extension of systems
 and facilities.''.

 (3) The table of sections at the beginning of subchapter
III of chapter 169 of such title is amended by adding at the
end the following new items:

``2867. Sale of electricity from alternate energy and cogeneration
 production facilities.
``2868. Utility services: furnishing for certain buildings.''.

 (4) The table of sections at the beginning of subchapter I
of chapter 148 of such title is amended by striking out the
item relating to section 2491 and inserting in lieu thereof the
following new item:

``2500. Definitions.''.

 (5) The tables of chapters at the beginning of subtitle A,
and at the beginning of part IV of subtitle A, of such title
are amended by striking out the item relating to chapter 148
and inserting in lieu thereof the following new item:

``148. National Defense Technology and Industrial Base, Defense
 Reinvestment, and Defense Conversion...............2500''.

 (d) Conforming Amendments.--(1) Section 2534(d) of title
10, United States Code, is amended by striking out ``section
2491(1)'' both places it appears and inserting in lieu thereof
``section 2500(1)''.
 (2) Section 2865(b)(2) of such title is amended by striking
out ``section 2483(b)(2)'' and inserting in lieu thereof
``section 2867(b)(2)''.

SEC. 372. MERCHANDISE AND PRICING REQUIREMENTS FOR COMMISSARY STORES.

 (a) Authorized Commissary Merchandise Categories.--
Subsection (b) of section 2486 of title 10, United States Code,
is amended--
 (1) by striking out the matter preceding paragraph
 (1) and inserting in lieu thereof the following: ``(b)
 Authorized Commissary Merchandise Categories.--
 Merchandise sold in, at, or by commissary stores may
 include items only in the following categories:''; and
 (2) by striking out paragraph (11) and inserting in
 lieu thereof the following new paragraph:
 ``(11) Such other merchandise categories as the
 Secretary of Defense may prescribe, except that the
 Secretary shall submit to Congress, not later than
 March 1 of each year, a report describing--
 ``(A) any addition of, or change in, a
 merchandise category proposed to be made under
 this paragraph during the one-year period
 beginning on that date; and
 ``(B) those additions and changes in
 merchandise categories actually made during the
 preceding one-year period.''.
 (b) Codification of Uniform Sales Price Surcharge or
Adjustment.--Subsection (c) of such section is amended--
 (1) by inserting ``Uniform Sales Price Surcharge or
 Adjustment.--'' after ``(c)'';
 (2) by striking out ``in commissary stores.'' and
 inserting in lieu thereof ``in, at, or by commissary
 stores.''; and
 (3) by adding at the end the following new
 sentence: ``Effective on the date of the enactment of
 the National Defense Authorization Act for Fiscal Year
 1998, the uniform percentage shall be equal to five
 percent and may not be changed except by a law enacted
 after such date.''.
 (c) Establishment of Sales Price; Congressional
Notification.--Subsection (d) of such section is amended to
read as follows:
 ``(d) Sales Price Establishment.--(1) The Secretary of
Defense shall establish the sales price of each item of
merchandise sold in, at, or by commissary stores at the level
that will recoup the actual product cost of the item
(consistent with this section and sections 2484 and 2685 of
this title).
 ``(2) Any change in the pricing policies for merchandise
sold in, at, or by commissary stores shall not take effect
until the Secretary of Defense submits written notice of the
proposed change to Congress and a period of 90 days of
continuous session of Congress expires following the date on
which notice was received. For purposes of this paragraph, the
continuity of a session of Congress is broken only by an
adjournment of the Congress sine die, and the days on which
either House is not in session because of an adjournment or
recess of more than three days to a day certain are excluded in
a computation of such 90-day period.''.
 (d) Special Rules for Certain Merchandise.--Such section is
further amended by adding at the end the following new
subsection:
 ``(f) Special Rules for Certain Merchandise.--(1)
Notwithstanding the general requirement that merchandise sold
in, at, or by commissary stores be commissary store inventory,
the Secretary of Defense may authorize the sale of items in the
merchandise categories specified in paragraph (2) as
noncommissary store inventory. Subsections (c) and (d) shall
not apply to the pricing of such merchandise items.
 ``(2) The merchandise categories referred to in paragraph
(1) are as follows:
 ``(A) Magazines and other periodicals.
 ``(B) Tobacco products.''.
 (e) Clerical and Conforming Amendments.--Such section is
further amended--
 (1) in subsection (a), by inserting ``In General.--
 '' after ``(a)''; and
 (2) in subsection (e)--
 (A) by inserting ``Special Rule for Brand-
 Name Commercial Items.--'' after ``(e)''; and
 (B) by striking out ``in commissary
 stores'' both places it appears and inserting
 in lieu thereof ``in, at, or by commissary
 stores''.
 (f) Report on Merchandise Categories.--Not later than 30
days after the date of the enactment of this Act, the Secretary
of Defense shall submit to Congress a report specifying the
merchandise categories authorized for sale sold in, at, or by
commissary stores pursuant to regulations prescribed under
subsection (b)(11) of section 2486 of title 10, United States
Code, as in effect before such date.

SEC. 373. LIMITATION ON NONCOMPETITIVE PROCUREMENT OF BRAND-NAME
 COMMERCIAL ITEMS FOR RESALE IN COMMISSARY STORES.

 Section 2486(e) of title 10, United States Code, as amended
by section 372(e)(2), is further amended by adding at the end
the following new sentence: ``In determining whether a brand
name commercial item is regularly sold outside of commissary
stores, the Secretary shall consider only sales of the item on
a regional or national basis by commercial grocery or other
retail operations consisting of multiple stores.''.

SEC. 374. TREATMENT OF REVENUES DERIVED FROM COMMISSARY STORE
 ACTIVITIES.

 (a) Treatment of Revenues.--Section 2685 of title 10,
United States Code, is amended by adding at the end the
following new subsection:
 ``(e) Other Sources of Funds for Construction and
Improvements.--Revenues received by the Secretary of Defense
from the following sources or activities of commissary store
facilities shall be available for the purposes set forth in
subsections (b), (c), and (d):
 ``(1) Sale of recyclable materials.
 ``(2) Sale of excess and surplus property.
 ``(3) License fees.
 ``(4) Royalties.
 ``(5) Fees paid by sources of products in order to
 obtain favorable display of the products for resale,
 known as business related management fees.''.
 (b) Clerical Amendments.--Such section is further amended--
 (1) in subsection (a), by inserting ``Adjustment or
 Surcharge Authorized.--'' after ``(a)'';
 (2) in subsection (b), by inserting ``Use for
 Construction and Improvement of Facilities.--'' after
 ``(b)'';
 (3) in subsection (c), by inserting ``Advance
 Obligation.--'' after ``(c)''; and
 (4) in subsection (d), by inserting ``Cooperation
 With Nonappropriated Fund Instrumentalities.--'' after
 ``(d)''.

SEC. 375. MAINTENANCE, REPAIR, AND RENOVATION OF ARMED FORCES
 RECREATION CENTER, EUROPE.

 Section 2247(b) of title 10, United States Code, is amended
by striking out ``real property maintenance, and'' and
inserting in lieu thereof ``the maintenance, repair, or
renovation of real property, and the''.

SEC. 376. PLAN FOR USE OF PUBLIC AND PRIVATE PARTNERSHIPS TO BENEFIT
 MORALE, WELFARE, AND RECREATION ACTIVITIES.

 (a) Plan Required.--The Secretary of Defense shall prepare
a plan containing a proposal regarding the advisability and
feasibility of permitting nonappropriated fund
instrumentalities of the Department of Defense to enter into
leases, licensing agreements, concession agreements, and other
contracts with private persons and State or local governments
to facilitate the provision of facilities, goods, or services
to authorized patrons of nonappropriated fund instrumentalities
and to generate revenues for the Department of Defense to be
used solely for the benefit of nonappropriated fund
instrumentalities.
 (b) Recommendations for Scope of Plan.--In developing the
proposal under subsection (a), the Secretary shall include
recommendations regarding the following:
 (1) The proposed criteria to be used to select
 goods or services suitable for provision to patrons of
 nonappropriated fund instrumentalities through a lease
 or other contractual arrangement.
 (2) The proposed mechanism to be used to assess the
 likely impact of such a lease or other contractual
 arrangement on private businesses in the locality that
 provide the same goods or services proposed to be
 provided under such a lease or other contractual
 arrangement.
 (3) The feasibility and desirability of authorizing
 persons who are not authorized patrons of
 nonappropriated fund instrumentalities to receive goods
 and services provided through such a lease or other
 contractual arrangement.
 (4) The proposed mechanism to be used to ensure
 that such a lease or contract will not be inconsistent
 with and will not adversely affect the mission of the
 Department of Defense or the nonappropriated fund
 instrumentality involved.
 (c) Submission of Plan.--Not later than March 1, 1998, the
Secretary shall submit to Congress the plan required under
subsection (a).

 Subtitle F--Other Matters

SEC. 381. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT
 DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND
 DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

 (a) Continuation of Department of Defense Program for
Fiscal Year 1998.--Of the amount authorized to be appropriated
pursuant to section 301(5) for operation and maintenance for
Defense-wide activities--
 (1) $30,000,000 shall be available for providing
 educational agencies assistance (as defined in
 subsection (d)(1)) to local educational agencies; and
 (2) $5,000,000 shall be available for making
 educational agencies payments (as defined in subsection
 (d)(2)) to local educational agencies.
 (b) Notification.--Not later than June 30, 1998, the
Secretary of Defense shall--
 (1) notify each local educational agency that is
 eligible for educational agencies assistance for fiscal
 year 1998 of that agency's eligibility for such
 assistance and the amount of such assistance for which
 that agency is eligible; and
 (2) notify each local educational agency that is
 eligible for an educational agencies payment for fiscal
 year 1998 of that agency's eligibility for such payment
 and the amount of the payment for which that agency is
 eligible.
 (c) Disbursement of Funds.--The Secretary of Defense shall
disburse funds made available under paragraphs (1)and (2) of
subsection (a) not later than 30 days after the date on which
notification to the eligible local educational agencies is provided
pursuant to subsection (b).
 (d) Definitions.--In this section:
 (1) The term ``educational agencies assistance''
 means assistance authorized under section 386(b) of the
 National Defense Authorization Act for Fiscal Year 1993
 (Public Law 102-484; 20 U.S.C. 7703 note).
 (2) The term ``educational agencies payments''
 means payments authorized under section 386(d) of the
 National Defense Authorization Act for Fiscal Year 1993
 (Public Law 102-484; 20 U.S.C. 7703 note).
 (3) The term ``local educational agency'' has the
 meaning given that term in section 8013(9) of the
 Elementary and Secondary Education Act of 1965 (20
 U.S.C. 7713(9)).
 (e) Technical Correction Relating to Original Assistance
Authority.--Section 386(c)(1) of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20
U.S.C. 7703 note) is amended--
 (1) by striking out ``section 8003(a)'' and
 inserting in lieu thereof ``section 8003(a)(1)''; and
 (2) by striking out ``(20 U.S.C. 7703(a))'' and
 inserting in lieu thereof ``(20 U.S.C. 7703(a)(1))''.

SEC. 382. CENTER FOR EXCELLENCE IN DISASTER MANAGEMENT AND HUMANITARIAN
 ASSISTANCE.

 (a) Establishment and Operation of Center.--(1) Chapter 7
of title 10, United States Code, is amended by adding at the
end the following new section:

``Sec. 182. Center for Excellence in Disaster Management and
 Humanitarian Assistance

 ``(a) Establishment.--The Secretary of Defense may operate
a Center for Excellence in Disaster Management and Humanitarian
Assistance (in this section referred to as the `Center').
 ``(b) Missions.--(1) The Center shall be used to provide
and facilitate education, training, and research in civil-
military operations, particularly operations that require
international disaster management and humanitarian assistance
and operations that require coordination between the Department
of Defense and other agencies.
 ``(2) The Center shall be used to make available high-
quality disaster management and humanitarian assistance in
response to disasters.
 ``(3) The Center shall be used to provide and facilitate
education, training, interagency coordination, and research on
the following additional matters:
 ``(A) Management of the consequences of nuclear,
 biological, and chemical events.
 ``(B) Management of the consequences of terrorism.
 ``(C) Appropriate roles for the reserve components
 in the management of such consequences and in disaster
 management and humanitarian assistance in response to
 natural disasters.
 ``(D) Meeting requirements for information in
 connection with regional and global disasters,
 including the use of advanced communications technology
 as a virtual library.
 ``(E) Tropical medicine, particularly in relation
 to the medical readiness requirements of the Department
 of Defense.
 ``(4) The Center shall develop a repository of disaster
risk indicators for the Asia-Pacific region.
 ``(5) The Center shall perform such other missions as the
Secretary of Defense may specify.
 ``(c) Joint Operation With Educational Institution
Authorized.--The Secretary of Defense may enter into an
agreement with appropriate officials of an institution of
higher education to provide for joint operation of the Center.
Any such agreement shall provide for the institution to furnish
necessary administrative services for the Center, including
administration and allocation of funds.
 ``(d) Acceptance of Donations.--(1) Except as provided in
paragraph (2), the Secretary of Defense may accept, on behalf
of the Center, donations to be used to defray thecosts of the
Center or to enhance the operation of the Center. Such donations may be
accepted from any agency of the Federal Government, any State or local
government, any foreign government, any foundation or other charitable
organization (including any that is organized or operates under the
laws of a foreign country), or any other private source in the United
States or a foreign country.
 ``(2) The Secretary may not accept a donation under
paragraph (1) if the acceptance of the donation would
compromise or appear to compromise--
 ``(A) the ability of the Department of Defense, any
 employee of the Department, or members of the armed
 forces, to carry out any responsibility or duty of the
 Department in a fair and objective manner; or
 ``(B) the integrity of any program of the
 Department of Defense or of any person involved in such
 a program.
 ``(3) The Secretary shall prescribe written guidance
setting forth the criteria to be used in determining whether or
not the acceptance of a foreign donation would have a result
described in paragraph (2).
 ``(4) Funds accepted by the Secretary under paragraph (1)
as a donation on behalf of the Center shall be credited to
appropriations available to the Department of Defense for the
Center. Funds so credited shall be merged with the
appropriations to which credited and shall be available for the
Center for the same purposes and the same period as the
appropriations with which merged.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``182. Center for Excellence in Disaster Management and Humanitarian
 Assistance.''.

 (b) Funding for Fiscal Year 1998.--Of the funds authorized
to be appropriated pursuant to section 301(5) for operation and
maintenance for Defense-wide activities, $5,000,000 shall be
available for the operation of the Center for Excellence in
Disaster Management and Humanitarian Assistance established
under section 182 of title 10, United States Code, as added by
subsection (a).

SEC. 383. APPLICABILITY OF FEDERAL PRINTING REQUIREMENTS TO DEFENSE
 AUTOMATED PRINTING SERVICE.

 (a) In General.--Subchapter I of chapter 8 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 195. Defense Automated Printing Service: applicability of
 Federal printing requirements

 ``The Defense Automated Printing Service shall comply fully
with the requirements of section 501 of title 44 relating to
the production and procurement of printing, binding, and blank-
book work.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end
the following new item:

``195. Defense Automated Printing Service: applicability of Federal
 printing requirements.''.

SEC. 384. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF
 COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO
 CONTRACTOR PERFORMANCE.

 (a) Additional Notification Requirement.--Subsection (a)(1)
of section 2461 of title 10, United States Code, is amended by
inserting before the semicolon the following: ``and the
anticipated length and cost of the study''.
 (b) Notification of Conversion Decision.--Subsection (b) of
such section amended by adding at the end the following new
sentence: ``The notification shall include the timetable for
completing conversion of the function to contractor
performance.''.
 (c) Waiver for Small Functions.--Subsection (d) of such
section is amended by striking out ``45 or fewer'' and
inserting in lieu thereof ``20 or fewer''.

SEC. 385. COLLECTION AND RETENTION OF COST INFORMATION DATA ON
 CONVERTED SERVICES AND FUNCTIONS.

 (a) Collection and Retention Required.--Section 2463 of
title 10, United States Code, is amended to read as follows:

``Sec. 2463. Collection and retention of cost information data on
 converted services and functions

 ``(a) Requirements In Connection With Conversion to
Contractor Performance.--With respect to each contract
converting the performance of a service or function of the
Department of Defense to contractor performance (and any
extension of such a contract), the Secretary of Defense shall
collect, during the term of the contract or extension, but not
to exceed five years, cost information data regarding
performance of the service or function by private contractor
employees.
 ``(b) Requirements In Connection With Return to Employee
Performance.--Whenever the performance of a commercial or
industrial type activity of the Department of Defense that is
being performed by 50 or more employees of a private contractor
is changed to performance by civilian employees of the
Department of Defense, the Secretary of Defense shall collect,
for a five-year period, cost information data comparing--
 ``(1) the estimated costs of continued performance
 of such activity by private contractor employees; and
 ``(2) the costs of performance of such activity by
 civilian employees of the Department of Defense.
 ``(c) Retention of Information.--With regard to the
conversion to or from contractor performance of a particular
service or function of the Department of Defense, the Secretary
of Defense shall provide for the retention of information
collected under this section for at least a 10-year period
beginning at the end of the final year in which the information
is collected.''.
 (b) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of chapter 146 of
title 10, United States Code, is amended to read as follows:

``2463. Collection and retention of cost information data on converted
 services and functions.''.

SEC. 386. FINANCIAL ASSISTANCE TO SUPPORT ADDITIONAL DUTIES ASSIGNED TO
 ARMY NATIONAL GUARD.

 (a) Authority.--Chapter 1 of title 32, United States Code,
is amended by adding at the end the following new section:

``Sec. 113. Federal financial assistance for support of additional
 duties assigned to the Army National Guard

 ``(a) Authority.--The Secretary of the Army may provide
financial assistance to a State to support activities carried
out by the Army National Guard of the State in the performance
of duties that the Secretary has assigned, with the consent of
the Chief of the National Guard Bureau, to the Army National
Guard of the State. The Secretary shall determine the amount of
the assistance that is appropriate for the purpose.
 ``(b) Covered Activities.--Activities supported under this
section may include only those activities that are carried out
by the Army National Guard in the performance of
responsibilities of the Secretary of the Army under paragraphs
(6), (10), and (11) of section 3013(b) of title 10.
 ``(c) Disbursement Through National Guard Bureau.--The
Secretary of the Army shall disburse any contribution under
this section through the Chief of the National Guard Bureau.
 ``(d) Availability of Funds.--Funds appropriated for the
Army for a fiscal year are available for providing financial
assistance under this section in support of activities carried
out by the Army National Guard during that fiscal year.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``113. Federal financial assistance for support of additional duties
 assigned to the Army National Guard.''.

SEC. 387. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

 (a) Extension of Requirement to Use Private-Sector
Sources.--Subsection (a) of section 351 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 266) is amended--
 (1) by striking out ``and 1997'' and inserting in
 lieu thereof ``through 1998''; and
 (2) by striking out ``Defense Printing Service''
 and inserting in lieu thereof ``Defense Automated
 Printing Service''.
 (b) Surcharge for Services.--Such section is further
amended by adding at the end the following new subsection:
 ``(d) Conditions on Imposition of Surcharge.--(1) Any
surcharge imposed by the Defense Automated Printing Service on
printing and duplication services for the Department of Defense
shall be based on direct services provided by the Defense
Automated Printing Service and reflect the costs incurred by
the Defense Automated Printing Service, as described in its
annual budget.
 ``(2) The Defense Automated Printing Service may not impose
a surcharge on any printing and duplication service for the
Department of Defense that is procured from a source outside of
the Department.''.
 (c) Authority To Procure Services From Government Printing
Office.--Consistent with section 501 of title 44, United States
Code, the Secretary of a military department or head of a
Defense Agency may contract directly with the Government
Printing Office for printing and duplication services otherwise
available through the Defense Automated Printing Service.

SEC. 388. CONTINUATION AND EXPANSION OF DEMONSTRATION PROGRAM TO
 IDENTIFY OVERPAYMENTS MADE TO VENDORS.

 (a) Scope of Program.--Section 354 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 268; 10 U.S.C. 2461 note) is amended--
 (1) in subsection (a), by striking out the second
 sentence; and
 (2) in subsection (b)(1), by striking out ``of the
 Defense Logistics Agency that relate to (at least)
 fiscal years 1993, 1994, and 1995'' and inserting in
 lieu thereof ``relating to fiscal years after fiscal
 year 1993 of the working-capital funds and industrial,
 commercial, and support type activities managed through
 the Defense Business Operations Fund, except the
 Defense Logistics Agency to the extent such records
 have already been audited''.
 (b) Collection Method; Contractor Payments.--Such section
is further amended by striking out subsections (d) and (e) and
inserting in lieu thereof the following new subsections:
 ``(d) Collection Method.--(1) In the case of an overpayment
to a vendor identified under the demonstration program, the
Secretary shall consider the use of the procedures specified in
section 32.611 of the Federal Acquisition Regulation, regarding
a setoff against existing invoices for payment to the vendor,
as the first method by which the Department seeks to recover
the amount of the overpayment (and any applicable interest and
penalties) from the vendor.
 ``(2) The Secretary of Defense shall be solely responsible
for notifying a vendor of an overpayment made to the vendor and
identified under the demonstration program and for recovering
the amount of the overpayment (and any applicable interest and
penalties) from the vendor.
 ``(e) Fees for Contractor.--The Secretary shall pay to the
contractor under the contract entered into under the
demonstration program an amount not to exceed 25 percent of the
total amount recovered by the Department (through the
collection of overpayments and the use of setoffs) solely on
the basis of information obtained as a result of the audits
performed by the contractor under the program. When an
overpayment is recovered through the use of a setoff, amounts
for the required payment to the contractor shall be derived
from funds available to the working-capital fund or industrial,
commercial, or support type activity for which the overpayment
is recovered.''.
 (c) GAO Review.--Not later than December 31, 1998, the
Comptroller General shall submit to Congress a report
containing the results of a review by the Comptroller General
of the demonstration program conducted under section 354 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106; 10 U.S.C. 2461 note). In the review, the
Comptroller General shall--
 (1) assess the success of the methods used in the
 demonstration program to identify overpayments made to
 vendors;
 (2) consider the types of overpayments identified
 and the feasibility of avoiding such overpayments
 through contract adjustments;
 (3) determine the total amount of overpayments
 recovered under the demonstration program; and
 (4) develop recommendations for improving the
 process by which overpayments are recovered by the
 Department of Defense.

SEC. 389. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE WORK
 STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION
 OF CERTAIN OPERATIONAL FUNCTIONS OF MILITARY
 INSTALLATIONS.

 (a) Standardization of Requirements.--The Secretary of
Defense is authorized and encouraged to develop standard forms
(to be known as a ``standard performance work statement'' and a
``standard request for proposal'') for use in the consideration
for conversion to contractor performance of commercial services
and functions at military installations. A separate standard
form shall be developed for each service and function.
 (b) Relationship to OMB Requirements.--A standard
performance work statement or a standard request for proposal
developed under subsection (a) must fulfill the basic
requirements of the performance work statement or request for
proposal otherwise required under the procedures and
requirements of Office of Management and Budget Circular A-76
(or any successor administrative regulation or policy) in
effect at the time the standard form will be used.
 (c) Priority Development of Certain Forms.--In developing
standard performance work statements and standard requests for
proposal, the Secretary shall give first priority to those
commercial services and functions that the Secretary determines
have been successfully converted to contractor performance on a
repeated basis.
 (d) Incentive for Use.--Beginning not later than October 1,
1998, if a standard performance work statement or a standard
request for proposal is developed under subsection (a) for a
particular service and function, the standard form may be used
in lieu of the performance work statement or request for
proposal otherwise required under the procedures and
requirements of Office of Management and Budget Circular A-76
in connection with the consideration for conversion to
contractor performance of that service or function at a
military installation.
 (e) Exclusion of Multi-Function Conversion.--If a
commercial service or function for which a standard form is
developed under subsection (a) is combined with another service
or function (for which such a form has not yet been developed)
for purposes of considering the services and functions at the
military installation for conversion to contractor performance,
a standard performance work statement or a standard request for
proposal developed under subsection (a) may not be used in the
conversion process in lieu of the procedures and requirements
of Office of Management and Budget Circular A-76.
 (f) Effect on Other Laws.--Nothing in this section shall be
construed to supersede any other requirements or limitations,
specifically contained in chapter 146 of title 10, United
States Code, on the conversion to contractor performance of
activities performed by civilian employees of the Department of
Defense.
 (g) GAO Report.--Not later than June 1, 1999, the Secretary
of Defense shall submit to Congress a report reviewing the
implementation of this section.
 (h) Military Installation Defined.--For purposes of this
section, the term ``military installation'' means a base, camp,
post, station, yard, center, homeport facility for any ship, or
other activity under the jurisdiction of the Department of
Defense, including any leased facility.

SEC. 390. BASE OPERATIONS SUPPORT FOR MILITARY INSTALLATIONS ON GUAM.

 (a) Contractor Use of Nonimmigrant Aliens.--Each contract
for base operations support to be performed on Guam shall
contain a condition that work under the contract may not be
performed by any alien who is issued a visa or otherwise
provided nonimmigrant status under section 101(a)(15)(H)(ii) of
the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(ii)).
 (b) Application of Section.--This section shall apply to
contracts entered into, amended, or otherwise modified on or
after the date of the enactment of this Act.

SEC. 391. WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

 (a) Pilot Program Required.--The Secretary of Defense may
carry out a pilot program to use commercial sources of services
to improve the collection of Department of Defense claims under
aircraft engine warranties.
 (b) Contracts.--Exercising the authority provided in
section 3718 of title 31, United States Code, the Secretary of
Defense may enter into contracts under the pilot program to
provide for the following services:
 (1) Collection services.
 (2) Determination of amounts owed the Department of
 Defense for repair of aircraft engines for conditions
 covered by warranties.
 (3) Identification and location of the sources of
 information that are relevant to collection of
 Department of Defense claims under aircraft engine
 warranties, including electronic data bases and
 document filing systems maintained by the Department of
 Defense or by the manufacturers and suppliers of the
 aircraft engines.
 (4) Services to define the elements necessary for
 an effective training program to enhance and improve
 the performance of Department of Defense personnel in
 collecting and organizing documents and other
 information that are necessary for efficient filing,
 processing, and collection of Department of Defense
 claims under aircraft engine warranties.
 (c) Contractor Fee.--Under the authority provided in
section 3718(d) of title 31, United States Code, a contract
entered into under the pilot program shall provide for the
contractor to be paid, out of the amount recovered by the
contractor under the program, such percentages of the amount
recovered as the Secretary of Defense determines appropriate.
 (d) Retention of Recovered Funds.--Subject to any
obligation to pay a fee under subsection (c), any amount
collected for the Department of Defense under the pilot program
for a repair of an aircraft engine for a condition covered by a
warranty shall be credited to an appropriation available for
repair of aircraft engines for the fiscal year in which
collected and shall be available for the same purposes and same
period as the appropriation to which credited.
 (e) Regulations.--The Secretary of Defense shall prescribe
regulations to carry out this section.
 (f) Termination of Authority.--The pilot program shall
terminate on September 30, 1999, and contracts entered into
under this section shall terminate not later than that date.
 (g) Reporting Requirements.--(1) Not later than January 1,
2000, the Secretary of Defense shall submit to Congress a
report on the pilot program. The report shall include the
following:
 (A) The number of contracts entered into under the
 program.
 (B) The extent to which the services provided under
 the contracts resulted in financial benefits for the
 Federal Government.
 (C) Any additional comments and recommendations
 that the Secretary considers appropriate regarding use
 of commercial sources of services for collection of
 Department of Defense claims under aircraft engine
 warranties.
 (2) Not later than March 1, 2000, the Comptroller General
shall submit to Congress a report containing the results of a
review by the Comptroller General of the pilot program. In the
review, the Comptroller General shall--
 (A) assess the success of the methods used in the
 demonstration program to identify and recover
 Department of Defense claims under aircraft engine
 warranties;
 (B) determine the total amount recovered by the
 Department of Defense under the pilot program;
 (C) evaluate the report prepared by the Secretary
 under paragraph (1); and
 (D) develop recommendations for improving the
 process by which warranty claims are recovered by the
 Department of Defense.

SEC. 392. PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE WITHIN
 DEPARTMENT OF DEFENSE.

 The Secretary of Defense shall maintain a specific
coordinated program for the investigation of evidence of fraud,
waste, and abuse within the Department of Defense, particularly
fraud, waste, and abuse regarding finance and accounting
matters.

SEC. 393. MULTITECHNOLOGY AUTOMATED READER CARD DEMONSTRATION PROGRAM.

 (a) Program Required.--The Secretary of the Navy shall
carry out a program to demonstrate expanded use of
multitechnology automated reader cards throughout the Navy and
the Marine Corps. The demonstration program shall include
demonstration of the use of the so-called ``smartship''
technology of the ship-to-shore work load / off load program of
the Navy.
 (b) Period of Program.--The Secretary shall carry out the
demonstration program for two years beginning not later than
January 1, 1998.
 (c) Report.--Not later than 90 days after termination of
the demonstration program, the Secretary shall submit to
Congress a report on the results of the program.
 (d) Funding.--Of the amount authorized to be appropriated
pursuant to section 301(2) for operation and maintenance for
the Navy, $36,000,000 shall be available for the demonstration
program under this section, of which $6,300,000 shall be
available for demonstration of the use of the so-called
``smartship'' technology of the ship-to-shore work load / off
load program of the Navy.

SEC. 394. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

 (a) Report and Plan Required.--Not later than March 1,
1998, the Secretary of Defense shall submit to Congress a
report containing a plan to reduce overhead costs of the supply
management activities of the Defense Logistics Agency and the
military departments (known as Inventory Control Points) so
that the overhead costs for each fiscal year after fiscal year
2000 do not exceed eight percent of net sales at standard price
by Inventory Control Points during that year.
 (b) Additional Report Requirement.--In addition to the
plan, the report shall include the following:
 (1) An identification of inherently governmental,
 core and noncore functions in Inventory Control Points
 and Distribution Depots.
 (2) A description of efforts, other than prime
 vendor and virtual prime vendor, underway or proposed
 to improve the efficiency, incentives, and
 accountability in Department of Defense supply,
 inventory and warehousing services and rates.
 (3) An identification and description of the
 benchmarks established in the warehousing,
 distribution, and supply functions of the Department
 and the relationship of the benchmarks to performance
 measurement methods used in the private sector.
 (4) A description of the outcome-oriented
 performance measures that are currently being used to
 evaluate Inventory Control Points and Distribution
 Depots.
 (5) A specification of any legislative, regulatory,
 or operational impediments to achieving the requirement
 in subsection (a) and implementing best business
 practices in the warehousing, distribution, and supply
 functions of the Department.
 (c) Definitions.--For purposes of this section:
 (1) The term ``overhead costs'' means the total
 expenses of the Inventory Control Points, excluding--
 (A) annual materiel costs; and
 (B) military and civilian personnel related
 costs, defined as personnel compensation and
 benefits under the March 1996 Department of
 Defense Financial Management Regulations,
 Volume 2A, Chapter 1, Budget Account Title File
 (Object Classification Name/Code), object
 classifications 200, 211, 220, 221, 222, and
 301.
 (2) The term ``net sales at standard price'' has
 the meaning given that term in the March 1996
 Department of Defense Financial Management Regulations,
 Volume 2B, Chapter 9, and displayed in ``Exhibit Fund--
 14 Revenue and Expenses'' for the supply management
 business areas.

SEC. 395. INVENTORY MANAGEMENT.

 (a) Development and Submission of Schedule.--Not later than
180 days after the date of the enactment of this Act, the
Director of the Defense Logistics Agency shall develop and
submit to Congress a schedule for implementing within the
agency, for the supplies and equipment described in subsection
(b), inventory practices identified by the Director as being
the best commercial inventory practices for the acquisition and
distribution of such supplies and equipment consistent with
military requirements. The schedule shall provide for the
implementation of such practices to be completed not later than
three years after date of the enactment of this Act.
 (b) Covered Supplies and Equipment.--Subsection (a) shall
apply to the following types of supplies and equipment for the
Department of Defense:
 (1) Medical and pharmaceutical.
 (2) Subsistence.
 (3) Clothing and textiles.
 (4) Commercially available electronics.
 (5) Construction.
 (6) Industrial.
 (7) Automotive.
 (8) Fuel.
 (9) Facilities maintenance.
 (c) Definition.--For purposes of this section, the term
``best commercial inventory practice'' includes a so-called
prime vendor arrangement and any other practice that the
Director determines will enable the Defense Logistics Agency to
reduce inventory levels and holding costs while improving the
responsiveness of the supply system to user needs.
 (d) Report on Expansion of Covered Supplies and
Equipment.--Not later than March 1, 1998, the Comptroller
General shall submit to Congress a report evaluating the
feasibility of expanding the list of covered supplies and
equipment under subsection (b) to include repairable items.

 TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

 Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional
 contingencies.

 Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the
 Reserves.
Sec. 413. End strengths for military technicians (dual status).

 Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

 Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

 The Armed Forces are authorized strengths for active duty
personnel as of September 30, 1998, as follows:
 (1) The Army, 495,000.
 (2) The Navy, 390,802.
 (3) The Marine Corps, 174,000.
 (4) The Air Force, 371,577.

SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL
 CONTINGENCIES.

 (a) Change in Permanent End Strengths.--Subsection (b) of
section 691 of title 10, United States Code, is amended--
 (1) in paragraph (2), by striking out ``395,000''
 and inserting in lieu thereof ``390,802''; and
 (2) in paragraph (4), by striking out ``381,000''
 and inserting in lieu thereof ``371,577''.
 (b) Increased Flexibility for the Army.--Subsection (e) of
such section is amended by inserting ``or, in the case of the
Army, by not more than 1.5 percent'' before the period at the
end.

 Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

 (a) In General.--The Armed Forces are authorized strengths
for Selected Reserve personnel of the reserve components as of
September 30, 1998, as follows:
 (1) The Army National Guard of the United States,
 361,516.
 (2) The Army Reserve, 208,000.
 (3) The Naval Reserve, 94,294.
 (4) The Marine Corps Reserve, 42,000.
 (5) The Air National Guard of the United States,
 108,002.
 (6) The Air Force Reserve, 73,447.
 (7) The Coast Guard Reserve, 8,000.
 (b) Adjustments.--The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve
component shall be proportionately reduced by--
 (1) the total authorized strength of units
 organized to serve as units of the Selected Reserve of
 such component which are on active duty (other than for
 training) at the end of the fiscal year, and
 (2) the total number of individual members not in
 units organized to serve as units of the Selected
 Reserve of such component who are on active duty (other
 than for training or for unsatisfactory participation
 in training) without their consent at the end of the
 fiscal year.
Whenever such units or such individual members are released
from active duty during any fiscal year, the end strength
prescribed for such fiscal year for the Selected Reserve of
such reserve component shall be proportionately increased by
the total authorized strengths of such units and by the total
number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE
 RESERVES.

 Within the end strengths prescribed in section 411(a), the
reserve components of the Armed Forces are authorized, as of
September 30, 1998, the following number of Reserves to
beserving on full-time active duty or full-time duty, in the case of
members of the National Guard, for the purpose of organizing,
administering, recruiting, instructing, or training the reserve
components:
 (1) The Army National Guard of the United States,
 22,310.
 (2) The Army Reserve, 11,500.
 (3) The Naval Reserve, 16,136.
 (4) The Marine Corps Reserve, 2,559.
 (5) The Air National Guard of the United States,
 10,671.
 (6) The Air Force Reserve, 867.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

 (a) Authorization for Fiscal Year 1998.--The minimum number
of military technicians (dual status) as of the last day of
fiscal year 1998 for the reserve components of the Army and the
Air Force (notwithstanding section 129 of title 10, United
States Code) shall be the following:
 (1) For the Army Reserve, 5,503.
 (2) For the Army National Guard of the United
 States, 23,125.
 (3) For the Air Force Reserve, 9,802.
 (4) For the Air National Guard of the United
 States, 22,853.
 (b) Requests for Future Fiscal Years.--Section 115(g) of
title 10, United States Code, is amended by adding at the end
the following new sentence: ``In each budget submitted by the
President to Congress under section 1105 of title 31, the end
strength requested for military technicians (dual status) for
each reserve component of the Army and Air Force shall be
specifically set forth.''.

 Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

 There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
1998 a total of $69,470,505,000. The authorization in the
preceding sentence supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for
fiscal year 1998.

 TITLE V--MILITARY PERSONNEL POLICY

 Subtitle A--Officer Personnel Policy

Sec. 501. Limitation on number of general and flag officers who may
 serve in positions outside their own service.
Sec. 502. Exclusion of certain retired officers from limitation on
 period of recall to active duty.
Sec. 503. Clarification of officers eligible for consideration by
 promotion boards.
Sec. 504. Authority to defer mandatory retirement for age of officers
 serving as chaplains.
Sec. 505. Increase in number of officers allowed to be frocked to grades
 of colonel and Navy captain.
Sec. 506. Increased years of commissioned service for mandatory
 retirement of regular generals and admirals in grades above
 major general and rear admiral.
Sec. 507. Uniform policy for requirement of exemplary conduct by
 commanding officers and others in authority.
Sec. 508. Report on the command selection process for District Engineers
 of the Army Corps of Engineers.

 Subtitle B--Reserve Component Matters

Sec. 511. Individual Ready Reserve activation authority.
Sec. 512. Termination of Mobilization Income Insurance Program.
Sec. 513. Correction of inequities in medical and dental care and death
 and disability benefits for reserve members who incur or
 aggravate an illness in the line of duty.
Sec. 514. Authority to permit non-unit assigned officers to be
 considered by vacancy promotion board to general officer
 grades.
Sec. 515. Prohibition on use of Air Force Reserve AGR personnel for Air
 Force base security functions.
Sec. 516. Involuntary separation of reserve officers in an inactive
 status.
Sec. 517. Federal status of service by National Guard members as honor
 guards at funerals of veterans.

 Subtitle C--Military Technicians

Sec. 521. Authority to retain on the reserve active-status list until
 age 60 military technicians in the grade of brigadier general.
Sec. 522. Military technicians (dual status).
Sec. 523. Non-dual status military technicians.
Sec. 524. Report on feasibility and desirability of conversion of AGR
 personnel to military technicians (dual status).

 Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit
 Attrition

Sec. 531. Reform of military recruiting systems.
Sec. 532. Improvements in medical prescreening of applicants for
 military service.
Sec. 533. Improvements in physical fitness of recruits.

 Subtitle E--Military Education and Training

 Part I--Officer Education Programs

Sec. 541. Requirement for candidates for admission to United States
 Naval Academy to take oath of allegiance.
Sec. 542. Service academy foreign exchange program.
Sec. 543. Reimbursement of expenses incurred for instruction at service
 academies of persons from foreign countries.
Sec. 544. Continuation of support to senior military colleges.
Sec. 545. Report on making United States nationals eligible for
 participation in Senior Reserve Officers' Training Corps.
Sec. 546. Coordination of establishment and maintenance of Junior
 Reserve Officers' Training Corps units to maximize enrollment
 and enhance efficiency.

 Part II--Other Education Matters

Sec. 551. United States Naval Postgraduate School.
Sec. 552. Community College of the Air Force.
Sec. 553. Preservation of entitlement to educational assistance of
 members of the Selected Reserve serving on active duty in
 support of a contingency operation.

 Part III--Training of Army Drill Sergeants

Sec. 556. Reform of Army drill sergeant selection and training process.
Sec. 557. Training in human relations matters for Army drill sergeant
 trainees.

 Subtitle F--Commission on Military Training and Gender-Related Issues

Sec. 561. Establishment and composition of Commission.
Sec. 562. Duties.
Sec. 563. Administrative matters.
Sec. 564. Termination of Commission.
Sec. 565. Funding.
Sec. 566. Subsequent consideration by Congress.

 Subtitle G--Military Decorations and Awards

Sec. 571. Purple Heart to be awarded only to members of the Armed
 Forces.
Sec. 572. Eligibility for Armed Forces Expeditionary Medal for
 participation in Operation Joint Endeavor or Operation Joint
 Guard.
Sec. 573. Waiver of time limitations for award of certain decorations to
 specified persons.
Sec. 574. Clarification of eligibility of members of Ready Reserve for
 award of service medal for heroism.
Sec. 575. One-year extension of period for receipt of recommendations
 for decorations and awards for certain military intelligence
 personnel.
Sec. 576. Eligibility of certain World War II military organizations for
 award of unit decorations.
Sec. 577. Retroactivity of Medal of Honor special pension.

 Subtitle H--Military Justice Matters

Sec. 581. Establishment of sentence of confinement for life without
 eligibility for parole.
Sec. 582. Limitation on appeal of denial of parole for offenders serving
 life sentence.

 Subtitle I--Other Matters

Sec. 591. Sexual harassment investigations and reports.
Sec. 592. Sense of the Senate regarding study of matters relating to
 gender equity in the Armed Forces.
Sec. 593. Authority for personnel to participate in management of
 certain non-Federal entities.
Sec. 594. Treatment of participation of members in Department of Defense
 civil military programs.
Sec. 595. Comptroller General study of Department of Defense civil
 military programs.
Sec. 596. Establishment of public affairs specialty in the Army.
Sec. 597. Grade of defense attache in France.
Sec. 598. Report on crew requirements of WC-130J aircraft.
Sec. 599. Improvement of missing persons authorities applicable to
 Department of Defense.

 Subtitle A--Officer Personnel Policy

SEC. 501. LIMITATION ON NUMBER OF GENERAL AND FLAG OFFICERS WHO MAY
 SERVE IN POSITIONS OUTSIDE THEIR OWN SERVICE.

 (a) In General.--Chapter 41 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 721. General and flag officers: limitation on appointments,
 assignments, details, and duties outside an
 officer's own service

 ``(a) Limitation.--An officer described in subsection (b)
may not be appointed, assigned, or detailed for a period in
excess of 180 days to a position external to that officer's
armed force if, immediately following such appointment,
assignment, or detail, the number of officers described in
subsection (b) serving in positions external to such officers'
armed force would be in excess of 26.5 percent of the total
number of the officers described in subsection (b).
 ``(b) Covered Officers.--The officers covered by subsection
(a), and to be counted for the purposes of the limitation in
that subsection, are the following:
 ``(1) Any general or flag officer counted for
 purposes of section 526(a) of this title.
 ``(2) Any general or flag officer serving in a
 joint duty assignment position designated by the
 Chairman of the Joint Chiefs of Staff under section
 526(b) of this title.
 ``(3) Any colonel or Navy captain counted for
 purposes of section 777(d)(1) of this title.
 ``(c) External Positions.--For purposes of this section,
the following positions shall be considered to be external to
an officer's armed force:
 ``(1) Any position (including a position in joint
 education) that is a joint duty assignment for purposes
 of chapter 38 of this title.
 ``(2) Any position in the Office of the Secretary
 of Defense, a Defense Agency, or a Department of
 Defense Field Activity.
 ``(3) Any position in the Joint Chiefs of Staff,
 the Joint Staff, or the headquarters of a combatant
 command (as defined in chapter 6 of this title).
 ``(4) Any position in the National Guard Bureau.
 ``(5) Any position outside the Department of
 Defense, including any position in the headquarters of
 the North Atlantic Treaty Organization or any other
 international military command, any combined or
 multinational command, or military mission.
 ``(d) Treatment of Officers Holding Multiple Positions.--
(1) If an officer described in subsection (b) simultaneously
holds both a position external to that officer's armed force
and another position not external to that officer's armed
force, the Secretary of Defense shall determine whether that
officer shall be counted for the purposes of this section.
 ``(2) The Secretary of Defense shall submit to Congress an
annual report on the number of officers to whom paragraph (1)
was applicable during the year covered by the report. The
report shall set forth the determination made by the Secretary
under that paragraph in each such case.
 ``(e) Assignments, Etc., For Periods in Excess of 180
Days.--For purposes of this section, the appointment,
assignment, or detail of an officer to a position shall be
considered to be for a period in excess of 180 days unless the
appointment, assignment, or detail specifies that it is made
for a period of 180 days or less.
 ``(f) Waiver During Period of War or National Emergency.--
The President may suspend the operation of this section during
any period of war or of national emergency declared by Congress
or the President.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``721. General and flag officers: limitation on appointments,
 assignments, details, and duties outside an officer's own
 service.''.

SEC. 502. EXCLUSION OF CERTAIN RETIRED OFFICERS FROM LIMITATION ON
 PERIOD OF RECALL TO ACTIVE DUTY.

 Section 688(e) of title 10, United States Code, is
amended--
 (1) by inserting ``(1)'' before ``A member''; and
 (2) by adding at the end the following:
 ``(2) Paragraph (1) does not apply to the following
officers:
 ``(A) A chaplain who is assigned to duty as a
 chaplain for the period of active duty to which
 ordered.
 ``(B) A health care professional (as characterized
 by the Secretary concerned) who is assigned to duty as
 a health care professional for the period of active
 duty to which ordered.
 ``(C) An officer assigned to duty with the American
 Battle Monuments Commission for the period of active
 duty to which ordered.''.

SEC. 503. CLARIFICATION OF OFFICERS ELIGIBLE FOR CONSIDERATION BY
 PROMOTION BOARDS.

 (a) Officers on the Active-Duty List.--Section 619(d) of
title 10, United States Code, is amended--
 (1) by striking out ``grade--'' in the matter
 preceding paragraph (1) and inserting in lieu thereof
 ``grade any of the following officers:'';
 (2) in paragraph (1)--
 (A) by striking out ``an officer'' and
 inserting in lieu thereof ``An officer''; and
 (B) by striking out ``; or'' at the end and
 inserting in lieu thereof a period;
 (3) by redesignating paragraph (2) as paragraph (3)
 and in that paragraph striking out ``an officer'' and
 inserting in lieu thereof ``An officer''; and
 (4) by inserting after paragraph (1) the following
 new paragraph (2):
 ``(2) An officer who is recommended for promotion
 to that grade in the report of an earlier selection
 board convened under that section, in the case of such
 a report that has not yet been approved by the
 President.''.
 (b) Officers on the Reserve Active-Status List.--Section
14301(c) of such title is amended--
 (1) by striking out ``grade--'' in the matter
 preceding paragraph (1) and inserting in lieu thereof
 ``grade any of the following officers:'';
 (2) by striking out ``an officer'' in each of
 paragraphs (1), (2), and (3) and inserting in lieu
 thereof ``An officer'';
 (3) by striking out the semicolon at the end of
 paragraph (1) and inserting in lieu thereof a period;
 (4) by striking out ``; or'' at the end of
 paragraph (2) and inserting in lieu thereof a period;
 (5) by redesignating paragraphs (2) and (3), as so
 amended, as paragraphs (3) and (4), respectively, and
 in each such paragraph striking out ``the next higher
 grade'' and inserting in lieu thereof ``that grade'';
 and
 (6) by inserting after paragraph (1) the following
 new paragraph (2):
 ``(2) An officer who is recommended for promotion
 to that grade in the report of an earlier selection
 board convened under a provision referred to in
 paragraph (1), in the case of such a report that has
 not yet been approved by the President.''.
 (c) Clarifying Amendments.--Paragraphs (3) and (4) of
section 14301(c) of such title, as redesignated and amended by
subsection (b), are each amended by inserting before the period
at the end the following: ``, if that nomination is pending
before the Senate''.
 (d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act and
shall apply with respect to selection boards that are convened
under section 611(a), 14101(a), or 14502 of title 10, United
States Code, on or after that date.

SEC. 504. AUTHORITY TO DEFER MANDATORY RETIREMENT FOR AGE OF OFFICERS
 SERVING AS CHAPLAINS.

 (a) Authority for Deferral of Retirement for Chaplains.--
Subsection (c) of section 1251 of title 10, United States Code,
is amended--
 (1) by redesignating paragraphs (2) and (3) as
 paragraphs (3) and (4), respectively; and
 (2) by inserting after paragraph (1) the following
 new paragraph (2):
 ``(2) The Secretary concerned may defer the retirement
under subsection (a) of an officer who is appointed or
designated as a chaplain if the Secretary determines that such
deferral is in the best interest of the military department
concerned.''.
 (b) Authority for Deferral of Retirement for Chief and
Deputy Chief of Chaplains.--Such section is further amended by
adding at the end the following new subsection:
 ``(d) The Secretary concerned may defer the retirement
under subsection (a) of an officer who is the Chief of
Chaplains or Deputy Chief of Chaplains of that officer's armed
force. Such a deferment may not extend beyond the first day of
the month following the month in which the officer becomes 68
years of age.''.
 (c) Qualification for Service as Navy Chief of Chaplains or
Deputy Chief of Chaplains.--(1) Section 5142(b) of such title
is amended by striking out ``, who are not on the retired
list,''.
 (2) Section 5142a of such title is amended by striking out
``, who is not on the retired list,''.

SEC. 505. INCREASE IN NUMBER OF OFFICERS ALLOWED TO BE FROCKED TO
 GRADES OF COLONEL AND NAVY CAPTAIN.

 Section 777(d)(2) of title 10, United States Code, is
amended by inserting after ``1 percent'' the following: ``, or,
for the grades of colonel and Navy captain, 2 percent,''.

SEC. 506. INCREASED YEARS OF COMMISSIONED SERVICE FOR MANDATORY
 RETIREMENT OF REGULAR GENERALS AND ADMIRALS IN
 GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.

 (a) Years of Service.--Section 636 of title 10, United
States Code, is amended--
 (1) by striking out ``Except as provided'' and
 inserting in lieu thereof ``(a) Major Generals and Rear
 Admirals Serving in Grade.--Except as provided in
 subsection (b) or (c) and''; and
 (2) by adding at the end the following:
 ``(b) Lieutenant Generals and Vice Admirals.--In the
administration of subsection (a) in the case of an officer who
is serving in the grade of lieutenant general or vice admiral,
the number of years of active commissioned service applicable
to the officer is 38 years.
 ``(c) Generals and Admirals.--In the administration of
subsection (a) in the case of an officer who is serving in the
grade of general or admiral, the number of years of active
commissioned service applicable to the officer is 40 years.''.
 (b) Section Heading.--The heading of such section is
amended to read as follows:

``Sec. 636. Retirement for years of service: regular officers in grades
 above brigadier general and rear admiral (lower
 half)''.

 (c) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of subchapter III of
chapter 36 of such title is amended to read as follows:

``636. Retirement for years of service: regular officers in grades above
 brigadier general and rear admiral (lower half).''.

SEC. 507. UNIFORM POLICY FOR REQUIREMENT OF EXEMPLARY CONDUCT BY
 COMMANDING OFFICERS AND OTHERS IN AUTHORITY.

 (a) Army.--(1) Chapter 345 of title 10, United States Code,
is amended by adding at the end the following new section:

``Sec. 3583. Requirement of exemplary conduct

 ``All commanding officers and others in authority in the
Army are required--
 ``(1) to show in themselves a good example of
 virtue, honor, patriotism, and subordination;
 ``(2) to be vigilant in inspecting the conduct of
 all persons who are placed under their command;
 ``(3) to guard against and suppress all dissolute
 and immoral practices, and to correct, according to the
 laws and regulations of the Army, all persons who are
 guilty of them; and
 ``(4) to take all necessary and proper measures,
 under the laws, regulations, and customs of the Army,
 to promote and safeguard the morale, the physical well-
 being, and the general welfare of the officers and
 enlisted persons under their command or charge.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``3583. Requirement of exemplary conduct.''.

 (b) Air Force.--(1) Chapter 845 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 8583. Requirement of exemplary conduct

 ``All commanding officers and others in authority in the
Air Force are required--
 ``(1) to show in themselves a good example of
 virtue, honor, patriotism, and subordination;
 ``(2) to be vigilant in inspecting the conduct of
 all persons who are placed under their command;
 ``(3) to guard against and suppress all dissolute
 and immoral practices, and to correct, according to the
 laws and regulations of the Air Force, all persons who
 are guilty of them; and
 ``(4) to take all necessary and proper measures,
 under the laws, regulations, and customs of the Air
 Force, to promote and safeguard the morale, the
 physical well-being, and the general welfare of the
 officers and enlisted persons under their command or
 charge.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``8583. Requirement of exemplary conduct.''.

SEC. 508. REPORT ON THE COMMAND SELECTION PROCESS FOR DISTRICT
 ENGINEERS OF THE ARMY CORPS OF ENGINEERS.

 Not later than March 31, 1998, the Secretary of the Army
shall submit to Congress a report on the command selection
process for officers serving as District Engineers of the Corps
of Engineers. The report shall include the following:
 (1) An identification of each major Corps of
 Engineers project that--
 (A) is being carried out by each District
 Engineer as of the date of the report; or
 (B) is being planned by each District
 Engineer to be carried out during the five-year
 period beginning on the date of the report.
 (2) The expected start and completion dates, during
 that period, for each major phase of each project
 identified under paragraph (1).
 (3) The expected dates for changes in the District
 Engineer in each Corps of Engineers District during
 that period.
 (4) A plan for optimizing the timing of changes in
 the District Engineer in each such District so that
 there is minimal disruption to major phases of major
 Corps of Engineers projects.
 (5) A review of the effect on the Corps of
 Engineers, and on the mission of each District of the
 Corps of Engineers, of allowing major command tours of
 District Engineers to be of two-to-four years in
 duration, with the selection of the exact timing of the
 change of command to be at the discretion of the Chief
 of Engineers, who shall act with the goal of optimizing
 the timing of each change so that it has minimal
 disruption on the mission of the District Engineer.

 Subtitle B--Reserve Component Matters

SEC. 511. INDIVIDUAL READY RESERVE ACTIVATION AUTHORITY.

 (a) IRR Members Subject To Order to Active Duty Other Than
During War or National Emergency.--Section 10144 of title 10,
United States Code, is amended--
 (1) by inserting ``(a)'' before ``Within the Ready
 Reserve''; and
 (2) by adding at the end the following new
 subsection:
 ``(b)(1) Within the Individual Ready Reserve of each
reserve component there is a category of members, as designated
by the Secretary concerned, who are subject to being ordered to
active duty involuntarily in accordance with section 12304 of
this title. A member may not be placed in that mobilization
category unless--
 ``(A) the member volunteers for that category; and
 ``(B) the member is selected for that category by
 the Secretary concerned, based upon the needs of the
 service and the grade and military skills of that
 member.
 ``(2) A member of the Individual Ready Reserve may not be
carried in such mobilization category of members after the end
of the 24-month period beginning on the date of the separation
of the member from active service.
 ``(3) The Secretary shall designate the grades and military
skills or specialities of members to be eligible for placement
in such mobilization category.
 ``(4) A member in such mobilization category shall be
eligible for benefits (other than pay and training) as are
normally available to members of the Selected Reserve, as
determined by the Secretary of Defense.''.
 (b) Criteria for Ordering to Active Duty.--Subsection (a)
of section 12304 of title 10, United States Code, is amended by
inserting after ``of this title),'' the following: ``or any
member in the Individual Ready Reserve mobilization category
and designated as essential under regulations prescribed by the
Secretary concerned,''.
 (c) Maximum Number.--Subsection (c) of such section is
amended--
 (1) by inserting ``and the Individual Ready
 Reserve'' after ``Selected Reserve''; and
 (2) by inserting ``, of whom not more than 30,000
 may be members of the Individual Ready Reserve'' before
 the period at the end.
 (d) Conforming Amendments.--Such section is further
amended--
 (1) in subsection (f), by inserting ``or Individual
 Ready Reserve'' after ``Selected Reserve'';
 (2) in subsection (g), by inserting ``, or any
 member of the Individual Ready Reserve,'' after ``to
 serve as a unit''; and
 (3) by adding at the end the following new
 subsection:
 ``(i) For purposes of this section, the term `Individual
Ready Reserve mobilization category' means, in the case of any
reserve component, the category of the Individual Ready Reserve
described in section 10144(b) of this title.''.
 (e) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 12304. Selected Reserve and certain Individual Ready Reserve
 members; order to active duty other than during war
 or national emergency''.

 (2) The item relating to section 12304 in the table of
sections at the beginning of chapter 1209 of such title is
amended to read as follows:

``12304. Selected Reserve and certain Individual Ready Reserve members;
 order to active duty other than during war or national
 emergency.''.

SEC. 512. TERMINATION OF MOBILIZATION INCOME INSURANCE PROGRAM.

 (a) In General.--Chapter 1214 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 12533. Termination of program

 ``(a) In General.--The Secretary shall terminate the
insurance program in accordance with this section.
 ``(b) Termination of New Enrollments.--The Secretary may
not enroll a member of the Ready Reserve for coverage under the
insurance program after the date of the enactment of this
section.
 ``(c) Termination of Coverage.--(1) The enrollment under
the insurance program of insured members other than insured
members described in paragraph (2) is terminated as of the date
of the enactment of this section. The enrollment of an insured
member described in paragraph (2) is terminated as of the date
of the termination of the period of covered service of that
member described in that paragraph.
 ``(2) An insured member described in this paragraph is an
insured member who on the date of the enactment of this section
is serving on covered service for a period of service, or has
been issued an order directing the performance of covered
service, that satisfies or would satisfy the entitlement-to-
benefits provisions of this chapter.
 ``(d) Termination of Payment of Benefits.--The Secretary
may not make any benefit payment under the insurance program
after the date of the enactment of this section other than to
an insured member who on that date (1) is serving on an order
to covered service, (2) has been issued an order directing
performance of covered service, or (3) has served on covered
service before that date for which benefits under the program
have not been paid to the member.
 ``(e) Termination of Insurance Fund.--The Secretary shall
close the Fund not later than 60 days after the date on which
the last benefit payment from the Fund is made. Any amount
remaining in the Fund when closed shall be covered into the
Treasury as miscellaneous receipts.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``12533. Termination of program.''.

SEC. 513. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH
 AND DISABILITY BENEFITS FOR RESERVE MEMBERS WHO
 INCUR OR AGGRAVATE AN ILLNESS IN THE LINE OF DUTY.

 (a) Medical and Dental Care for Members.--Section 1074a of
title 10, United States Code, is amended--
 (1) in subsection (a)(3), by inserting ``while
 remaining overnight immediately before the commencement
 of inactive-duty training, or'' after ``in the line of
 duty''; and
 (2) by adding at the end the following new
 subsection:
 ``(e) A member of a uniformed service described in
paragraph (1)(A) or (2)(A) of subsection (a) whose orders are
modified or extended, while the member is being treated for (or
recovering from) the injury, illness, or disease incurred or
aggravated in the line of duty, so as to result in active duty
for a period of more than 30 days shall be entitled, while the
member remains on active duty, to medical and dental care on
the same basis and to the same extent as members covered by
section 1074(a) of this title.''.
 (b) Medical and Dental Care for Dependents.--Section
1076(a) of such title is amended by striking out paragraph (2)
and inserting in lieu thereof the following new paragraph:
 ``(2) A dependent referred to in paragraph (1) is a
dependent of a member of a uniformed service described in one
of the following subparagraphs:
 ``(A) A member who is on active duty for a period
 of more than 30 days or died while on that duty.
 ``(B) A member who died from an injury, illness, or
 disease incurred or aggravated--
 ``(i) while the member was on active duty
 under a call or order to active duty of 30 days
 or less, on active duty for training, or on
 inactive-duty training; or
 ``(ii) while the member was traveling to or
 from the place at which the member was to
 perform, or had performed, such active duty,
 active duty for training, or inactive-duty
 training.
 ``(C) A member who died from an injury, illness, or
 disease incurred or aggravated in the line of duty
 while the member remained overnight immediately before
 the commencement of inactive-duty training, or while
 the member remained overnight between successive
 periods of inactive-duty training, at or in the
 vicinity of the site of the inactive-duty training, if
 the site was outside reasonable commuting distance from
 the member's residence.
 ``(D) A member who incurred or aggravated an
 injury, illness, or disease in the line of duty while
 serving on active duty for a period of 30 days or less
 (or while traveling to or from the place of such duty)
 and the member's orders are modified or extended, while
 the member is being treated for (or recovering from)
 the injury, illness, or disease, so as to result in
 active duty for a period of more than 30 days. However,
 this subparagraph entitles the dependent to medical and
 dental care only while the member remains on active
 duty.''.
 (c) Eligibility for Disability Retirement or Separation.--
(1) Section 1204(2) of such title is amended to read as
follows:
 ``(2) the disability--
 ``(A) was incurred before September 24,
 1996, as the proximate result of--
 ``(i) performing active duty or
 inactive-duty training;
 ``(ii) traveling directly to or
 from the place at which such duty is
 performed; or
 ``(iii) an injury, illness, or
 disease incurred or aggravated while
 remaining overnight, immediately before
 the commencement of inactive-duty
 training, or while remaining overnight
 between successive periods of inactive-
 duty training, at or in the vicinity of
 the site of the inactive-duty training,
 if the site of the inactive-duty
 training is outside reasonable
 commuting distance of the member's
 residence; or
 ``(B) is a result of an injury, illness, or
 disease incurred or aggravated in line of duty
 after September 23, 1996--
 ``(i) while performing active duty
 or inactive-duty training;
 ``(ii) while traveling directly to
 or from the place at which such duty is
 performed; or
 ``(iii) while remaining overnight,
 immediately before the commencement of
 inactive-duty training, or while
 remaining overnight between successive
 periods of inactive-duty training, at
 or in the vicinity of the site of the
 inactive-duty training, if the site of
 the inactive-duty training is outside
 reasonable commuting distance of the
 member's residence;''.
 (2) Section 1206 of such title is amended--
 (A) by redesignating paragraphs (2), (3), and (4)
 as paragraphs (3), (4), and (5), respectively, and
 (B) by inserting after paragraph (1) the following
 new paragraph (2):
 ``(2) the disability is a result of an injury,
 illness, or disease incurred or aggravated in line of
 duty while--
 ``(A) performing active duty or inactive-
 duty training;
 ``(B) traveling directly to or from the
 place at which such duty is performed; or
 ``(C) while remaining overnight immediately
 before the commencement of inactive-duty
 training, or while remaining overnight between
 successive periods of inactive-duty training,
 at or in the vicinity of the site of the
 inactive-duty training, if the site is outside
 reasonable commuting distance of the member's
 residence;''.
 (d) Conforming Amendments and Related Clerical
Amendments.--(1) The heading of section 1204 of title 10,
United States Code, is amended to read as follows:

``Sec. 1204. Members on active duty for 30 days or less or on inactive-
 duty training: retirement''.

 (2) The heading of section 1206 of such title is amended to
read as follows:

``Sec. 1206. Members on active duty for 30 days or less or on inactive-
 duty training: separation''.

 (3) The table of sections at the beginning of chapter 61 of
such title is amended--
 (A) by striking out the item relating to section
 1204 and inserting in lieu thereof the following:

``1204. Members on active duty for 30 days or less or on inactive-duty
 training: retirement.'';

 and
 (B) by striking out the item relating to section
 1206 and inserting in lieu thereof the following:

``1206. Members on active duty for 30 days or less or on inactive-duty
 training: separation.''.

 (e) Recovery, Care, and Disposition of Remains.--Section
1481(a)(2)(D) of such title is amended by inserting ``remaining
overnight immediately before the commencement of inactive-duty
training, or'' after ``(D)''.
 (f) Entitlement to Basic Pay.--Section 204 of title 37,
United States Code, is amended by inserting ``while remaining
overnight immediately before the commencement of inactive-duty
training, or'' in subsections (g)(1)(D) and (h)(1)(D) after
``in line of duty''.
 (g) Compensation for Inactive-Duty Training.--Section
206(a)(3)(C) of title 37, United States Code, is amended by
inserting ``while remaining overnight immediately before the
commencement of inactive-duty training, or'' after ``in line of
duty''.

SEC. 514. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE
 CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL
 OFFICER GRADES.

 (a) Convening of Selection Boards.--Section 14101(a)(2) of
title 10, United States Code, is amended by striking out
``(except in the case of a board convened to consider officers
as provided in section 14301(e) of this title)''.
 (b) Eligibility for Consideration of Certain Army
Officers.--Section 14301 of such title is amended--
 (1) by striking out subsection (e); and
 (2) by redesignating subsections (f) and (g) as
 subsections (e) and (f), respectively.
 (c) General Officer Promotions.--Section 14308 of such
title is amended--
 (1) in subsection (e)(2), by inserting ``a grade
 below colonel in'' after ``(2) an officer in''; and
 (2) in subsection (g)--
 (A) by inserting ``or the Air Force'' in
 the first sentence after ``of the Army'' the
 first place it appears;
 (B) by striking out ``in that grade'' in
 the first sentence and all that follows through
 ``Secretary of the Army'' and inserting in lieu
 thereof ``in the Army Reserve or the Air Force
 Reserve, as the case may be, in that grade'';
 and
 (C) by striking out the second sentence.
 (d) Vacancy Promotions.--Section 14315(b)(1) of such title
is amended by striking out ``duties'' in clause (A) and all
that follows through ``as a unit,'' and inserting in lieu
thereof ``duties of a general officer of the next higher
reserve grade in the Army Reserve,''.

SEC. 515. PROHIBITION ON USE OF AIR FORCE RESERVE AGR PERSONNEL FOR AIR
 FORCE BASE SECURITY FUNCTIONS.

 (a) In General.--Chapter 1215 of title 10, United States
Code, is amended by striking out

 ``[No present sections]''

and inserting in lieu thereof the following:

``Sec.
12551. Prohibition of use of Air Force Reserve AGR personnel for Air
 Force base security functions.

``Sec. 12551. Prohibition of use of Air Force Reserve AGR personnel for
 Air Force base security functions

 ``(a) Limitation.--The Secretary of the Air Force may not
use members of the Air Force Reserve who are AGR personnel for
the performance of force protection, base security, or security
police functions at an Air Force facility in the United States.
 ``(b) AGR Personnel Defined.--In this section, the term
`AGR personnel' means members of the Air Force Reserve who are
on active duty (other than for training) in connection with
organizing, administering, recruiting, instructing, or training
the Air Force Reserve.''.
 (b) Clerical Amendment.--The items relating to chapter 1215
in the tables of chapters at the beginning of subtitle E, and
at the beginning of part II of subtitle E, are amended to read
as follows:

``1215. Miscellaneous Prohibitions and Penalties................12551''.

SEC. 516. INVOLUNTARY SEPARATION OF RESERVE OFFICERS IN AN INACTIVE
 STATUS.

 (a) Authority for Involuntary Separation of Certain
Inactive Status Officers.--Section 12683(b) of title 10, United
States Code, is amended--
 (1) in the matter preceding paragraph (1), by
 striking out ``apply--'' and inserting in lieu thereof
 ``apply to any of the following:''; and
 (2) by adding at the end the following new
 paragraph:
 ``(4) a separation of an officer who is in an
 inactive status in the Standby Reserve and who is not
 qualified for transfer to the Retired Reserve or is
 qualified for transfer to the Retired Reserve and does
 not apply for such a transfer.''.
 (b) Stylistic Amendments.--Such section is further
amended--
 (1) in paragraphs (1), (2), and (3), by striking
 out ``to a'' and inserting in lieu thereof ``A'';
 (2) by striking out the semicolon at the end of
 paragraph (1) and inserting in lieu thereof a period;
 and
 (3) by striking out ``; and'' at the end of
 paragraph (2) and inserting in lieu thereof a period.

SEC. 517. FEDERAL STATUS OF SERVICE BY NATIONAL GUARD MEMBERS AS HONOR
 GUARDS AT FUNERALS OF VETERANS.

 (a) In General.--(1) Chapter 1 of title 32, United States
Code, is amended by adding after section 113, as added by
section 386(a), the following new section:

``Sec. 114. Honor guard functions at funerals for veterans

 ``(a) Subject to such regulations and restrictions as may
be prescribed by the Secretary concerned, the performance of
honor guard functions by members of the National Guard at
funerals for veterans of the armed forces may be treated by the
Secretary concerned as a Federal function for which
appropriated funds may be used. Any such performance of honor
guard functions at such a funeral may not be considered to be a
period of drill or training otherwise required.
 ``(b) This section does not authorize additional
appropriations for any fiscal year. Any expense of the National
Guard that is incurred by reason of this section shall be paid
from appropriations otherwise available for the National
Guard.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding after the item
relating to section 113, as added by section 386(b), the
following new item:

``114. Honor guard functions at funerals for veterans.''.

 Subtitle C--Military Technicians

SEC. 521. AUTHORITY TO RETAIN ON THE RESERVE ACTIVE-STATUS LIST UNTIL
 AGE 60 MILITARY TECHNICIANS IN THE GRADE OF
 BRIGADIER GENERAL.

 (a) Retention.--Section 14702(a) of title 10, United States
Code, is amended--
 (1) by striking out ``section 14506 or 14507'' and
 inserting in lieu thereof ``section 14506, 14507, or
 14508''; and
 (2) by striking out ``or colonel'' and inserting in
 lieu thereof ``colonel, or brigadier general''.
 (b) Technical Amendment.--Section 14508(c) of such title is
amended by striking out ``not later than the date on which the
officer becomes 60 years of age'' and inserting in lieu thereof
``not later than the last day of the month in which the officer
becomes 60 years of age''.

SEC. 522. MILITARY TECHNICIANS (DUAL STATUS).

 (a) Definition.--Subsection (a) of section 10216 of title
10, United States Code, is amended to read as follows:
 ``(a) In General.--(1) For purposes of this section and any
other provision of law, a military technician (dual status) is
a Federal civilian employee who--
 ``(A) is employed under section 3101 of title 5 or
 section 709 of title 32;
 ``(B) is required as a condition of that employment
 to maintain membership in the Selected Reserve; and
 ``(C) is assigned to a position as a technician in
 the administration and training of the Selected Reserve
 or in the maintenance and repair of supplies or
 equipment issued to the Selected Reserve or the armed
 forces.
 ``(2) Military technicians (dual status) shall be
authorized and accounted for as a separate category of civilian
employees.''.
 (b) Unit Membership and Dual Status Requirement.--Such
section is further amended by striking out subsection (d) and
inserting in lieu thereof the following:
 ``(d) Unit Membership Requirement.--(1) Unless specifically
exempted by law, each individual who is hired as a military
technician (dual status) after December 1, 1995, shall be
required as a condition of that employment to maintain
membership in--
 ``(A) the unit of the Selected Reserve by which the
 individual is employed as a military technician; or
 ``(B) a unit of the Selected Reserve that the
 individual is employed as a military technician to
 support.
 ``(2) Paragraph (1) does not apply to a military technician
(dual status) who is employed by the Army Reserve in an area
other than Army Reserve troop program units.
 ``(e) Dual Status Requirement.--(1) Funds appropriated for
the Department of Defense may not (except as provided in
paragraph (2)) be used for compensation as a military
technician of any individual hired as a military technician
after February 10, 1996, who is no longer a member of the
Selected Reserve.
 ``(2) The Secretary concerned may pay compensation
described in paragraph (1) to an individual described in that
paragraph who is no longer a member of the Selected Reserve for
a period not to exceed six months following the individual's
loss of membership in the Selected Reserve if the Secretary
determines that such loss of membership was not due to the
failure of that individual to meet military standards.''.
 (c) National Guard Dual Status Requirement.--Section 709(b)
of title 32, United States Code, is amended by striking out
``Except as prescribed by the Secretary concerned, a
technician'' and inserting in lieu thereof ``A technician''.
 (d) Plan for Clarification of Statutory Authority of
Military Technicians.--(1) The Secretary of Defense shall
submit to Congress, as part of the budget justification
materials submitted in support of the budget for the Department
of Defense for fiscal year 1999, a legislative proposal to
provide statutory authority and clarification under title 5,
United States Code--
 (A) for the hiring, management, promotion,
 separation, and retirement of military technicians who
 are employed in support of units of the Army Reserve or
 Air Force Reserve; and
 (B) for the transition to the competitive service
 of an individual who is hired as a military technician
 in support of a unit of the Army Reserve or Air Force
 Reserve and who (as determined by the Secretary
 concerned) fails to maintain membership in the Selected
 Reserve through no fault of the individual.
 (2) The legislative proposal under paragraph (1) shall be
developed in consultation with the Director of the Office of
Personnel Management.
 (e) Conforming Repeal.--Section 8016 of Public Law 104-61
(109 Stat. 654; 10 U.S.C. 10101 note) is repealed.
 (f) Cross-Reference Corrections.--Section 10216(c)(1) of
title 10, United States Code, is amended by striking out
``subsection (a)(1)'' in subparagraphs (A), (B), (C), and (D)
and inserting in lieu thereof ``subsection (b)(1)''.
 (g) Conforming Amendments to Section 10216.--Section 10216
of title 10, United States Code, is further amended as follows:
 (1) The heading of subsection (b) is amended by
 inserting ``(Dual Status)'' after ``Military
 Technicians''.
 (2) Subsection (b)(1) is amended--
 (A) by inserting ``(dual status)'' after
 ``for military technicians'';
 (B) by striking out ``dual status military
 technicians'' and inserting in lieu thereof
 ``military technicians (dual status)''; and
 (C) by inserting ``(dual status)'' after
 ``military technicians'' in subparagraph (C).
 (3) Subsection (b)(2) is amended by inserting
 ``(dual status)'' after ``military technicians'' both
 places it appears.
 (4) Subsection (b)(3) is amended by inserting
 ``(dual status)'' after ``Military technician''.
 (5) Subsection (c) is amended--
 (A) in the matter preceding paragraph
 (1)(A), by inserting ``(dual status)'' after
 ``military technicians'';
 (B) in paragraph (1), by striking out
 ``dual-status technicians'' in subparagraphs
 (A), (B), (C), and (D) and inserting in lieu
 thereof ``military technicians (dual status)'';
 (C) in paragraph (2)(A), by inserting
 ``(dual status)'' after ``military
 technician''; and
 (D) in paragraph (2)(B), by striking out
 ``delineate--'' and all that follows through
 ``or other reasons'' in clause (ii) and
 inserting in lieu thereof ``delineate the
 specific force structure reductions''.
 (h) Clerical Amendments.--(1) The heading of section 10216
of such title is amended to read as follows:

``Sec. 10216. Military technicians (dual status)''.

 (2) The item relating to such section in the table of
sections at the beginning of chapter 1007 of such title is
amended to read as follows:

``10216. Military technicians (dual status).''.

 (i) Other Conforming Amendments.--(1) Section 115(g) of
such title is amended by inserting ``(dual status)'' in the
first sentence after ``military technicians'' and in the second
sentence after ``military technician''.
 (2) Section 115a(h) of such title is amended--
 (A) by inserting ``(displayed in the aggregate and
 separately for military technicians (dual status) and
 non-dual status military technicians)'' in the matter
 preceding paragraph (1) after ``of the following''; and
 (B) by striking out paragraph (3).

SEC. 523. NON-DUAL STATUS MILITARY TECHNICIANS.

 (a) In General.--(1) Chapter 1007 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 10217. Non-dual status military technicians

 ``(a) Definition.--For the purposes of this section and any
other provision of law, a non-dual status military technician
is a civilian employee of the Department of Defense serving in
a military technician position who--
 ``(1) was hired as a military technician before the
 date of the enactment of the National Defense
 Authorization Act for Fiscal Year 1998 under any of the
 authorities specified in subsection (c); and
 ``(2) as of the date of the enactment of that Act
 is not a member of the Selected Reserve or after such
 date ceased to be a member of the Selected Reserve.
 ``(b) Employment Authorities.--The authorities referred to
in subsection (a) are the following:
 ``(1) Section 10216 of this title.
 ``(2) Section 709 of title 32.
 ``(3) The requirements referred to in section 8401
 of title 5.
 ``(4) Section 8016 of the Department of Defense
 Appropriations Act, 1996 (Public Law 104-61; 109 Stat.
 654), and any comparable provision of law enacted on an
 annual basis in the Department of Defense
 Appropriations Acts for fiscal years 1984 through 1995.
 ``(5) Any memorandum of agreement between the
 Department of Defense and the Office of Personnel
 Management providing for the hiring of military
 technicians.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``10217. Non-dual status military technicians.''.

 (b) Limitation.--The number of civilian employees of a
military department who are non-dual status military
technicians as of September 30, 1998, may not exceed the
following:
 (1) For the Army Reserve, 1,500.
 (2) For the Army National Guard of the United
 States, 2,400.
 (3) For the Air Force Reserve, 0.
 (4) For the Air National Guard of the United
 States, 450.
 (c) Report Required.--Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense shall
submit to Congress a report containing the number of military
technician positions that are held by non-dual status military
technicians as of September 30, 1997, shown separately for each
of the following:
 (1) The Army Reserve.
 (2) The Army National Guard of the United States.
 (3) The Air Force Reserve.
 (4) The Air National Guard of the United States.
 (d) Plan for Full Utilization of Military Technicians (Dual
Status).--(1) Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to
Congress a plan for ensuring that, on and after September 30,
2007, all military technician positions are held only by
military technicians (dual status).
 (2) The plan shall provide for achieving, by September 30,
2002, a 50 percent reduction, by conversion of positions or
otherwise, in the number of non-dual status military
technicians that are holding military technicians positions, as
compared with the number of non-dual status technicians that
held military technician positions as of September 30, 1997, as
specified in the report under subsection (c).
 (3) Among the alternative actions to be considered in
developing the plan, the Secretary shall consider the
feasibility and cost of each of the following:
 (A) Eliminating or consolidating technician
 functions and positions.
 (B) Contracting with private sector sources for the
 performance of functions performed by military
 technicians.
 (C) Converting non-dual status military technician
 positions to military technician (dual status)
 positions or to positions in the competitive service
 or, in the case of positions of the Army National Guard
 of the United States or the Air National Guard of the
 United States, to positions of State employment.
 (D) Use of incentives to facilitate attainment of
 the objectives specified for the plan in paragraphs (1)
 and (2).
 (4) The Secretary shall submit with the plan any
recommendations for legislation that the Secretary considers
necessary to carry out the plan.
 (e) Definitions for Categories of Military Technicians.--In
this section:
 (1) The term ``non-dual status military
 technician'' has the meaning given that term in section
 10217 of title 10, United States Code, as added by
 subsection (a).
 (2) The term ``military technician (dual status)''
 has the meaning given the term in section 10216(a) of
 such title.

SEC. 524. REPORT ON FEASIBILITY AND DESIRABILITY OF CONVERSION OF AGR
 PERSONNEL TO MILITARY TECHNICIANS (DUAL STATUS).

 (a) Report Required.--Not later than January 1, 1998, the
Secretary of Defense shall submit to Congress a report on the
feasibility and desirability of conversion of AGR personnel to
military technicians (dual status). The report shall--
 (1) identify advantages and disadvantages of such a
 conversion;
 (2) identify possible savings if such a conversion
 were to be carried out; and
 (3) set forth the recommendation of the Secretary
 as to whether such a conversion should be made.
 (b) AGR Personnel Defined.--For purposes of subsection (a),
the term ``AGR personnel'' means members of the Army or Air
Force reserve components who are on active duty (other than for
training) in connection with organizing, administering,
recruiting, instructing, or training their respective reserve
components.

 Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit
 Attrition

SEC. 531. REFORM OF MILITARY RECRUITING SYSTEMS.

 (a) In General.--The Secretary of Defense shall carry out
reforms in the recruiting systems of the Army, Navy, Air Force,
and Marine Corps in order to improve the quality of new
recruits and to reduce attrition among recruits.
 (b) Specific Reforms.--As part of the reforms in military
recruiting systems to be undertaken under subsection (a), the
Secretary shall take the following steps:
 (1) Improve the system of pre-enlistment waivers
 and separation codes used for recruits by (A) revising
 and updating those waivers and codes to allow more
 accurate and useful data collection about those
 separations, and (B) prescribing regulations to ensure
 that those waivers and codes are interpreted in a
 uniform manner by the military services.
 (2) Develop a reliable database for (A) analyzing
 (at both the Department of Defense and service-level)
 data on reasons for attrition of new recruits, and (B)
 undertaking Department of Defense or service-specific
 measures (or both) to control and manage such
 attrition.
 (3) Require that the Secretary of each military
 department (A) adopt or strengthen incentives for
 recruiters to thoroughly prescreen potential candidates
 for recruitment, and (B) link incentives for
 recruiters, in part, to the ability of a recruiter to
 screen out unqualified candidates before enlistment.
 (4) Require that the Secretary of each military
 department include as a measurement of recruiter
 performance the percentage of persons enlisted by a
 recruiter who complete initial combat training or basic
 training.
 (5) Assess trends in the number and use of waivers
 over the 1991-1997 period that were issued to permit
 applicants to enlist with medical or other conditions
 that would otherwise be disqualifying.
 (6) Require the Secretary of each military
 department to implement policies and procedures (A) to
 ensure the prompt separation of recruits who are unable
 to successfully complete basic training, and (B) to
 remove those recruits from the training environment
 while separation proceedings are pending.
 (c) Report.--Not later than March 31, 1998, the Secretary
shall submit to Congress a report of the trends assessed under
subsection (b)(5). The information on those trends provided in
the report shall be shown by armed force and by category of
waiver. The report shall include recommendations of the
Secretary for changing, revising, or limiting the use of
waivers referred to in that subsection.

SEC. 532. IMPROVEMENTS IN MEDICAL PRESCREENING OF APPLICANTS FOR
 MILITARY SERVICE.

 (a) In General.--The Secretary of Defense shall improve the
medical prescreening of applicants for entrance into the Army,
Navy, Air Force, or Marine Corps.
 (b) Specific Steps.--As part of those improvements, the
Secretary shall take the following steps:
 (1) Require that each applicant for service in the
 Army, Navy, Air Force, or Marine Corps (A) provide to
 the Secretary the name of the applicant's medical
 insurer and the names of past medical providers, and
 (B) sign a release allowing the Secretary to request
 and obtain medical records of the applicant.
 (2) Require that the forms and procedures for
 medical prescreening of applicants that are used by
 recruiters and by Military Entrance Processing Commands
 be revised so as to ensure that medical questions are
 specific, unambiguous, and tied directly to the types
 of medical separations most common for recruits during
 basic training and follow-on training.
 (3) Add medical screening tests to the examinations
 of recruits carried out by Military Entrance Processing
 Stations, provide more thorough medical examinations to
 selected groups of applicants, or both, to the extent
 that the Secretary determines that to do so could be
 cost effective in reducing attrition at basic training.
 (4) Provide for an annual quality control
 assessment of the effectiveness of the Military
 Entrance Processing Commands in identifying medical
 conditions in recruits that existed before enlistment
 in the Armed Forces, each such assessment to be
 performed by an agency or contractor other than the
 Military Entrance Processing Commands.

SEC. 533. IMPROVEMENTS IN PHYSICAL FITNESS OF RECRUITS.

 (a) In General.--The Secretary of Defense shall take steps
to improve the physical fitness of recruits before they enter
basic training.
 (b) Specific Steps.--As part of those improvements, the
Secretary shall take the following steps:
 (1) Direct the Secretary of each military
 department to implement programs under which new
 recruits who are in the Delayed Entry Program are
 encouraged to participate in physical fitness
 activities before reporting to basic training.
 (2) Develop a range of incentives for new recruits
 to participate in physical fitness programs, as well as
 for those recruits who improve their level of fitness
 while in the Delayed Entry Program, which may include
 access to Department of Defense military fitness
 facilities, and access to military medical facilities
 in the case of a recruit who is injured while
 participating in physical activities with recruiters or
 other military personnel.
 (3) Evaluate whether partnerships between
 recruiters and reserve components, or other innovative
 arrangements, could provide a pool of qualified
 personnel to assist in the conduct of physical training
 programs for new recruits in the Delayed Entry Program.

 Subtitle E--Military Education and Training

 PART I--OFFICER EDUCATION PROGRAMS

SEC. 541. REQUIREMENT FOR CANDIDATES FOR ADMISSION TO UNITED STATES
 NAVAL ACADEMY TO TAKE OATH OF ALLEGIANCE.

 (a) Requirement.--Section 6958 of title 10, United States
Code, is amended by adding at the end the following new
subsection:
 ``(d) To be admitted to the Naval Academy, an appointee
must take and subscribe to an oath prescribed by the Secretary
of the Navy. If a candidate for admission refuses to take and
subscribe to the prescribed oath, the candidate's appointment
is terminated.''.
 (b) Exception for Midshipmen From Foreign Countries.--
Section 6957 of such title is amended by adding at the end the
following new subsection:
 ``(d) A person receiving instruction under this section is
not subject to section 6958(d) of this title.''.

SEC. 542. SERVICE ACADEMY FOREIGN EXCHANGE PROGRAM.

 (a) United States Military Academy.--(1) Chapter 403 of
title 10, United States Code, is amended by inserting after
section 4344 the following new section:

``Sec. 4345. Exchange program with foreign military academies

 ``(a) Exchange Program Authorized.--The Secretary of the
Army may permit a student enrolled at a military academy of a
foreign country to receive instruction at the Academy in
exchange for a cadet receiving instruction at that foreign
military academy pursuant to an exchange agreement entered into
between the Secretary and appropriate officials of the foreign
country. Students receiving instruction at the Academy under
the exchange program shall be in addition to persons receiving
instruction at the Academy under section 4344 of this title.
 ``(b) Limitations on Number and Duration of Exchanges.--An
exchange agreement under this section between the Secretary and
a foreign country shall provide for the exchange of students on
a one-for-one basis each fiscal year. Not more than 10 cadets
and a comparable number of students from all foreign military
academies participating in the exchange program may be
exchanged during any fiscal year. The duration of an exchange
may not exceed the equivalent of one academic semester at the
Academy.
 ``(c) Costs and Expenses.--(1) A student from a military
academy of a foreign country is not entitled to the pay,
allowances, and emoluments of a cadet by reason of attendance
at the Academy under the exchange program, and the Department
of Defense may not incur any cost of international travel
required for transportation of such a student to and from the
sponsoring foreign country.
 ``(2) The Secretary may provide a student from a foreign
country under the exchange program, during the period of the
exchange, with subsistence, transportation within the
continental United States, clothing, health care, and other
services to the same extent that the foreign country provides
comparable support and services to the exchanged cadet in that
foreign country.
 ``(3) The Academy shall bear all costs of the exchange
program from funds appropriated for the Academy. Expenditures
in support of the exchange program may not exceed $50,000
during any fiscal year.
 ``(d) Application of Other Laws.--Subsections (c) and (d)
of section 4344 of this title shall apply with respect to a
student enrolled at a military academy of a foreign country
while attending the Academy under the exchange program.
 ``(e) Regulations.--The Secretary shall prescribe
regulations to implement this section. Such regulations may
include qualification criteria and methods of selection for
students of foreign military academies to participate in the
exchange program.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 4344
the following new item:

``4345. Exchange program with foreign military academies.''.

 (b) Naval Academy.--(1) Chapter 603 of title 10, United
States Code, is amended by inserting after section 6957 the
following new section:

``Sec. 6957a. Exchange program with foreign military academies

 ``(a) Exchange Program Authorized.--The Secretary of the
Navy may permit a student enrolled at a military academy of a
foreign country to receive instruction at the Naval Academy in
exchange for a midshipman receiving instruction at that foreign
military academy pursuant to an exchange agreement entered into
between the Secretary and appropriate officials of the foreign
country. Students receiving instruction at the Naval Academy
under the exchange program shall be in addition to persons
receiving instruction at the Academy under section 6957 of this
title.
 ``(b) Limitations on Number and Duration of Exchanges.--An
exchange agreement under this section between the Secretary and
a foreign country shall provide for the exchange of students on
a one-for-one basis each fiscal year. Not more than 10
midshipmen and a comparable number of students from all foreign
military academies participating in the exchange program may be
exchanged during any fiscal year. The duration of an exchange
may not exceed the equivalent of one academic semester at the
Naval Academy.
 ``(c) Costs and Expenses.--(1) A student from a military
academy of a foreign country is not entitled to the pay,
allowances, and emoluments of a midshipman by reason of
attendance at the Naval Academy under the exchange program, and
the Department of Defense may not incur any cost of
international travel required for transportation of such a
student to and from the sponsoring foreign country.
 ``(2) The Secretary may provide a student from a foreign
country under the exchange program, during the period of the
exchange, with subsistence, transportation within the
continental United States, clothing, health care, and other
services to the same extent that the foreign country provides
comparable support and services to the exchanged midshipman in
that foreign country.
 ``(3) The Naval Academy shall bear all costs of the
exchange program from funds appropriated for the Academy.
Expenditures in support of the exchange program may not exceed
$50,000 during any fiscal year.
 ``(d) Application of Other Laws.--Subsections (c) and (d)
of section 6957 of this title shall apply with respect to a
student enrolled at a military academy of a foreign country
while attending the Naval Academy under the exchange program.
 ``(e) Regulations.--The Secretary shall prescribe
regulations to implement this section. Such regulations may
include qualification criteria and methods of selection for
students of foreign military academies to participate in the
exchange program.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 6957
the following new item:

``6957a. Exchange program with foreign military academies.''.

 (c) Air Force Academy.--(1) Chapter 903 of title 10, United
States Code, is amended by inserting after section 9344 the
following new section:

``Sec. 9345. Exchange program with foreign military academies

 ``(a) Exchange Program Authorized.--The Secretary of the
Air Force may permit a student enrolled at a military academy
of a foreign country to receive instruction at the Air Force
Academy in exchange for an Air Force cadet receiving
instruction at that foreign military academy pursuant to an
exchange agreement entered into between the Secretary and
appropriate officials of the foreign country. Students
receiving instruction at the Academy under the exchange program
shall be in addition to persons receiving instruction at the
Academy under section 9344 of this title.
 ``(b) Limitations on Number and Duration of Exchanges.--An
exchange agreement under this section between the Secretary and
a foreign country shall provide for the exchange of students on
a one-for-one basis each fiscal year. Not more than 10 Air
Force cadets and a comparable number of students from all
foreign military academies participating in the exchange
program may be exchanged during any fiscal year. The duration
of an exchange may not exceed the equivalent of one academic
semester at the Air Force Academy.
 ``(c) Costs and Expenses.--(1) A student from a military
academy of a foreign country is not entitled to the pay,
allowances, and emoluments of an Air Force cadet by reason of
attendance at the Air Force Academy under the exchange program,
and the Department of Defense may not incur any cost of
international travel required for transportation of such a
student to and from the sponsoring foreign country.
 ``(2) The Secretary may provide a student from a foreign
country under the exchange program, during the period of the
exchange, with subsistence, transportation within the
continental United States, clothing, health care, and other
services to the same extent that the foreign country provides
comparable support and services to the exchanged Air Force
cadet in that foreign country.
 ``(3) The Air Force Academy shall bear all costs of the
exchange program from funds appropriated for the Academy.
Expenditures in support of the exchange program may not exceed
$50,000 during any fiscal year.
 ``(d) Application of Other Laws.--Subsections (c) and (d)
of section 9344 of this title shall apply with respect to a
student enrolled at a military academy of a foreign country
while attending the Air Force Academy under the exchange
program.
 ``(e) Regulations.--The Secretary shall prescribe
regulations to implement this section. Such regulations may
include qualification criteria and methods of selection for
students of foreign military academies to participate in the
exchange program.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 9344
the following new item:

``9345. Exchange program with foreign military academies.''.

 (d) Repeal of Obsolete Limitation.--Section 9353(a) of such
title is amended by striking out ``After the date of the
accrediting of the Academy, the'' and inserting in lieu thereof
``The''.

SEC. 543. REIMBURSEMENT OF EXPENSES INCURRED FOR INSTRUCTION AT SERVICE
 ACADEMIES OF PERSONS FROM FOREIGN COUNTRIES.

 (a) United States Military Academy.--Section 4344(b) of
title 10, United States Code, is amended--
 (1) in paragraph (2), by striking out the period at
 the end and inserting in lieu thereof the following:
 ``, except that the reimbursement rates may not be less
 than the cost to the United States of providing such
 instruction, including pay, allowances, and emoluments,
 to a cadet appointed from the United States.''; and
 (2) by adding at the end the following new
 paragraph:
 ``(3) The amount of reimbursement waived under paragraph
(2) may not exceed 35 percent of the per-person reimbursement
amount otherwise required to be paid by a foreign country under
such paragraph, except in the case of not more than five
persons receiving instruction at the Academy under this section
at any one time.''.
 (b) Naval Academy.--Section 6957(b) of such title is
amended--
 (1) in paragraph (2), by striking out the period at
 the end and inserting in lieu thereof the following:
 ``, except that the reimbursement rates may not be less
 than the cost to the United States of providing such
 instruction, including pay, allowances, and emoluments,
 to a midshipman appointed from the United States.'';
 and
 (2) by adding at the end the following new
 paragraph:
 ``(3) The amount of reimbursement waived under paragraph
(2) may not exceed 35 percent of the per-person reimbursement
amount otherwise required to be paid by a foreign country under
such paragraph, except in the case of not more than five
persons receiving instruction at the Naval Academy under this
section at any one time.''.
 (c) Air Force Academy.--Section 9344(b) of such title is
amended--
 (1) in paragraph (2), by striking out the period at
 the end and inserting in lieu thereof the following:
 ``, except that the reimbursement rates may not be less
 than the cost to the United States of providing such
 instruction, including pay, allowances, and emoluments,
 to a cadet appointed from the United States.''; and
 (2) by adding at the end the following new
 paragraph:
 ``(3) The amount of reimbursement waived under paragraph
(2) may not exceed 35 percent of the per-person reimbursement
amount otherwise required to be paid by a foreign country under
such paragraph, except in the case of not more than five
persons receiving instruction at the Academy under this section
at any one time.''.
 (d) Effective Date.--The amendments made by this section
apply with respect to students from a foreign country entering
the United States Military Academy, the United States Naval
Academy, or the United States Air Force Academy on or after May
1, 1998.

SEC. 544. CONTINUATION OF SUPPORT TO SENIOR MILITARY COLLEGES.

 (a) Definition of Senior Military Colleges.--For purposes
of this section, the term ``senior military colleges'' means
the following:
 (1) Texas A&M University.
 (2) Norwich University.
 (3) The Virginia Military Institute.
 (4) The Citadel.
 (5) Virginia Polytechnic Institute and State
 University.
 (6) North Georgia College and State University.
 (b) Findings.--Congress finds the following:
 (1) The senior military colleges consistently have
 provided substantial numbers of highly qualified, long-
 serving leaders to the Armed Forces.
 (2) The quality of the military leaders produced by
 the senior military colleges is, in part, the result of
 the rigorous military environment imposed on students
 attending the senior military colleges by the colleges,
 as well as the result of the long-standing close
 support relationship between the Corps of Cadets at
 each college and the Reserve Officer Training Corps
 personnel at the colleges who serve as effective
 leadership role models and mentors.
 (3) In recognition of the quality of the young
 leaders produced by the senior military colleges, the
 Department of Defense and the military services have
 traditionally maintained special relationships with the
 colleges, including the policy to grant active duty
 service in the Army to graduates of the colleges who
 desire such service and who are recommended for such
 service by their ROTC professors of military science.
 (4) Each of the senior military colleges has
 demonstrated an ability to adapt its systems and
 operations to changing conditions in, and requirements
 of, the Armed Forces without compromising the quality
 of leaders produced and without interruption of the
 close relationship between the colleges and the
 Department of Defense.
 (c) Sense of Congress.--In light of the findings in
subsection (b), it is the sense of Congress that--
 (1) the proposed initiative of the Secretary of the
 Army to end the commitment to active duty service for
 all graduates of senior military colleges who desire
 such service and who are recommended for such service
 by their ROTC professors of military science is short-
 sighted and contrary to the long-term interests of the
 Army;
 (2) as they have in the past, the senior military
 colleges can and will continue to accommodate to
 changing military requirements to ensure that future
 graduates entering military service continue to be
 officers of superb quality who are quickly assimilated
 by the Armed Forces and fully prepared to make
 significant contributions to the Armed Forces through
 extended military careers; and
 (3) decisions of the Secretary of Defense or the
 Secretary of a military department that fundamentally
 and unilaterally change the long-standing relationship
 of the Armed Forces with the senior military colleges
 are not in the best interests of the Department of
 Defense or the Armed Forces and are patently unfair to
 students who made decisions to enroll in the senior
 military colleges on the basis of existing Department
 and Armed Forces policy.
 (d) Continuation of Support for Senior Military Colleges.--
Section 2111a of title 10, United States Code, is amended--
 (1) by redesignating subsection (d) as subsection
 (f); and
 (2) by inserting after subsection (c) the following
 new subsections:
 ``(d) Termination or Reduction of Program Prohibited.--The
Secretary of Defense and the Secretaries of the military
departments may not take or authorize any action to terminate
or reduce a unit of the Senior Reserve Officers' Training Corps
at a senior military college unless the termination or
reduction is specifically requested by the college.
 ``(e) Assignment to Active Duty.--(1) The Secretary of the
Army shall ensure that a graduate of a senior military college
who desires to serve as a commissioned officer on active duty
upon graduation from the college, who is medically and
physically qualified for active duty, and who is recommended
for such duty by the professor of military science at the
college, shall be assigned to active duty. This paragraph shall
apply toa member of the program at a senior military college
who graduates from the college after March 31, 1997.
 ``(2) Nothing in this section shall be construed to
prohibit the Secretary of the Army from requiring a member of
the program who graduates from a senior military college to
serve on active duty.''.
 (e) Technical Corrections.--Subsection (f) of such section,
as redesignated by subsection (d)(1), is amended--
 (1) in paragraph (2), by striking out ``College''
 and inserting in lieu thereof ``University''; and
 (2) in paragraph (6), by inserting before the
 period the following: ``and State University''.
 (f) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 2111a. Support for senior military colleges''.

 (2) The item relating to such section in the table of
sections at the beginning of chapter 103 of title 10, United
States Code, is amended to read as follows:

``2111a. Support for senior military colleges.''.

SEC. 545. REPORT ON MAKING UNITED STATES NATIONALS ELIGIBLE FOR
 PARTICIPATION IN SENIOR RESERVE OFFICERS' TRAINING
 CORPS.

 (a) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to
the Committee on National Security of the House of
Representatives and the Committee on Armed Services of the
Senate a report on the utility of permitting United States
nationals to participate in the Senior Reserve Officers'
Training Corps program.
 (b) Required Information.--The Secretary shall include in
the report the following information:
 (1) A brief history of the prior admission of
 United States nationals to the Senior Reserve Officers'
 Training Corps, including the success rate of these
 cadets and midshipmen and how that rate compared to the
 average success rate of cadets and midshipmen during
 that same period.
 (2) The advantages of permitting United States
 nationals to participate in the Senior Reserve
 Officers' Training Corps program.
 (3) The disadvantages of permitting United States
 nationals to participate in the Senior Reserve
 Officers' Training Corps program.
 (4) The incremental cost of including United States
 nationals in the Senior Reserve Officers' Training
 Corps.
 (5) Methods of minimizing the risk that United
 States nationals admitted to the Senior Reserve
 Officers' Training Corps would be later disqualified
 because of ineligibility for United States citizenship.
 (6) The recommendations of the Secretary on whether
 United States nationals should be eligible to
 participate in the Senior Reserve Officers' Training
 Corps program, and if so, a legislative proposal which
 would, if enacted, achieve that result.

SEC. 546. COORDINATION OF ESTABLISHMENT AND MAINTENANCE OF JUNIOR
 RESERVE OFFICERS' TRAINING CORPS UNITS TO MAXIMIZE
 ENROLLMENT AND ENHANCE EFFICIENCY.

 (a) Requirement.--Chapter 102 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2032. Responsibility of the Secretaries of the military
 departments to maximize enrollment and enhance
 efficiency

 ``(a) Coordination.--The Secretary of each military
department, in establishing, maintaining, transferring, and
terminating Junior Reserve Officers' Training Corps units under
section 2031 of this title, shall do so in a coordinated manner
that is designed to maximize enrollment in the Corps and to
enhance administrative efficiency in the management of the
Corps.
 ``(b) Consideration of New School Openings and
Consolidations.--In carrying out subsection (a), the Secretary
of a military department shall take into consideration--
 ``(1) openings of new schools;
 ``(2) consolidations of schools; and
 ``(3) the desirability of continuing the
 opportunity for participation in the Corps by
 participants whose continued participation would
 otherwise be adversely affected by new school openings
 and consolidations of schools.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2032. Responsibility of the Secretaries of the military departments to
 maximize enrollment and enhance efficiency.''.

 PART II--OTHER EDUCATION MATTERS

SEC. 551. UNITED STATES NAVAL POSTGRADUATE SCHOOL.

 (a) Authority to Admit Enlisted Members as Students.--
Section 7045 of title 10, United States Code, is amended--
 (1) in subsection (a)--
 (A) by inserting ``(1)'' after ``(a)''; and
 (B) by adding at the end the following new
 paragraph:
 ``(2) The Secretary may permit an enlisted member of the
armed forces who is assigned to the Naval Postgraduate School
or to a nearby command to receive instruction at the Naval
Postgraduate School. Admission of enlisted members for
instruction under this paragraph shall be on a space-available
basis.'';
 (2) in subsection (b)--
 (A) by striking out ``the students'' and
 inserting in lieu thereof ``officers''; and
 (B) by adding at the end the following new
 sentence: ``In the case of an enlisted member
 permitted to receive instruction at the
 Postgraduate School, the Secretary of the Navy
 shall charge that member only for such costs
 and fees as the Secretary considers appropriate
 (taking into consideration the admission of
 enlisted members on a space-available
 basis).''; and
 (3) in subsection (c)--
 (A) by striking out ``officers'' both
 places it appears and inserting in lieu thereof
 ``members''; and
 (B) by striking out ``same regulations''
 and inserting in lieu thereof ``such
 regulations, as determined appropriate by the
 Secretary of the Navy,''.
 (b) Clerical Amendments.--(1) The heading of section 7045
of such title is amended to read as follows:

``Sec. 7045. Officers of the other armed forces; enlisted members:
 admission''.

 (2) The item relating to section 7045 in the table of
sections at the beginning of chapter 605 of such title is
amended to read as follows:

``7045. Officers of the other armed forces; enlisted members:
 admission.''.

 (c) Amendment To Reflect Revised Civil Service Grade
Structure.--Section 7043(b) of such title is amended by
striking out ``grade GS-18 of the General Schedule under
section 5332 of title 5'' and inserting in lieu thereof ``level
IV of the Executive Schedule''.

SEC. 552. COMMUNITY COLLEGE OF THE AIR FORCE.

 (a) Expansion of Members Eligible for Program To Include
Instructors at Air Force Training Schools.--Section 9315 of
title 10, United States Code, is amended--
 (1) in subsection (a)(1), by striking out
 ``enlisted members of the Air Force'' and inserting in
 lieu thereof ``enlisted members described in subsection
 (b)'';
 (2) by striking out ``(b) Subject to subsection
 (c),'' and inserting in lieu thereof ``(c)(1) Subject
 to paragraph (2),'';
 (3) by redesignating subsection (c) as paragraph
 (2) and in that paragraph redesignating clauses (1) and
 (2) as clauses (A) and (B), respectively; and
 (4) by inserting after subsection (a) the following
 new subsection (b):
 ``(b) Members Eligible for Programs.--Subject to such other
eligibility requirements as the Secretary concerned may
prescribe, the following members of the armed forces are
eligible to participate in programs of higher education under
subsection (a)(1):
 ``(1) Enlisted members of the Air Force.
 ``(2) Enlisted members of the armed forces other
 than the Air Force who are serving as instructors at
 Air Force training schools.''.
 (b) Clerical Amendments.--Such section is further amended--
 (1) in subsection (a), by inserting ``Establishment
 and Mission.--'' after ``(a)''; and
 (2) in subsection (c), as redesignated by
 subsection (a)(2), by inserting ``Conferral of
 Degrees.--'' after ``(c)''.
 (c) Effective Date.--Subsection (b) of section 9315 of such
title, as added by subsection (a)(4), applies with respect to
enrollments in the Community College of the Air Force after
March 31, 1996.

SEC. 553. PRESERVATION OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE OF
 MEMBERS OF THE SELECTED RESERVE SERVING ON ACTIVE
 DUTY IN SUPPORT OF A CONTINGENCY OPERATION.

 (a) Preservation of Educational Assistance.--Section
16131(c)(3)(B)(i) of title 10, United States Code, is amended
by striking out ``, in connection with the Persian Gulf War,''.
 (b) Extension of 10-Year Period of Availability.--Section
16133(b)(4) of such title is amended--
 (1) by striking out ``(A)'';
 (2) by striking out ``, during the Persian Gulf
 War,'';
 (3) by redesignating clauses (i) and (ii) as
 subparagraphs (A) and (B), respectively; and
 (4) by striking out ``(B) For the purposes'' and
 all that follows through ``title 38.''.

 PART III--TRAINING OF ARMY DRILL SERGEANTS

SEC. 556. REFORM OF ARMY DRILL SERGEANT SELECTION AND TRAINING PROCESS.

 (a) In General.--The Secretary of the Army shall reform the
process for selection and training of drill sergeants for the
Army.
 (b) Measures To Be Taken.--As part of such reform, the
Secretary shall undertake the following measures (unless, in
the case of any such measure, the Secretary determines that
that measure would not result in improved effectiveness and
efficiency in the drill sergeant selection and training
process):
 (1) Review the overall process used by the
 Department of the Army for selection of drill sergeants
 to determine--
 (A) whether that process is providing drill
 sergeant candidates in sufficient quantity and
 quality to meet the needs of the training
 system; and
 (B) whether duty as a drill sergeant is a
 career-enhancing assignment (or is seen by
 potential drill sergeant candidates as a
 career-enhancing assignment) and what steps
 could be taken to ensure that such duty is in
 fact a career-enhancing assignment.
 (2) Incorporate into the selection process for all
 drill sergeants the views and recommendations of the
 officers and senior noncommissioned officers in the
 chain of command of each candidate for selection
 (particularly those of senior noncommissioned officers)
 regarding the candidate's suitability and
 qualifications to be a drill sergeant.
 (3) Establish a requirement for psychological
 screening for each drill sergeant candidate.
 (4) Reform the psychological screening process for
 drill sergeant candidates to improve the quality,
 depth, and rigor of that screening process.
 (5) Revise the evaluation system for drill
 sergeants in training to provide for a so-called
 ``whole person'' assessment that gives insight into the
 qualifications and suitability of a drill sergeant
 candidate beyond the candidate's ability to accomplish
 required performance tasks.
 (6) Revise the Army military personnel records
 system so that, under conditions and circumstances to
 be specified in regulations prescribed by the
 Secretary, a drill sergeant trainee who fails to
 complete the training to be a drill sergeant and is
 denied graduation will not have the fact of that
 failure recorded in those personnel records.
 (7) Provide each drill sergeant in training with
 the opportunity, before or during that training, to
 work with new recruits in initial entry training and to
 be evaluated on that opportunity.
 (c) Report.--Not later than March 31, 1998, the Secretary
shall submit to the Committee on National Security of the House
of Representatives and the Committee on Armed Services of the
Senate a report of the reforms adopted pursuant to this section
or, in the case of any measure specified in any of paragraphs
(1) through (7) of subsection (b) that was not adopted, the
rationale why that measure was not adopted.

SEC. 557. TRAINING IN HUMAN RELATIONS MATTERS FOR ARMY DRILL SERGEANT
 TRAINEES.

 (a) In General.--(1) Chapter 401 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 4318. Drill sergeant trainees: human relations training

 ``(a) Human Relations Training Required.--The Secretary of
the Army shall include as part of the training program for
drill sergeants a course in human relations. The course shall
be a minimum of two days in duration.
 ``(b) Resources.--In developing a human relations course
under this section, the Secretary shall use the capabilities
and expertise of the Defense Equal Opportunity Management
Institute (DEOMI).''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``4318. Drill sergeant trainees: human relations training.''.

 (b) Effective Date.--Section 4318 of title 10, United
States Code, as added by subsection (a), shall apply with
respect to drill sergeant trainee classes that begin after the
end of the 90-day period beginning on the date of the enactment
of this Act.

 Subtitle F--Commission on Military Training and Gender-Related Issues

SEC. 561. ESTABLISHMENT AND COMPOSITION OF COMMISSION.

 (a) Establishment.--There is established a Commission on
Military Training and Gender-Related Issues to review
requirements and restrictions regarding cross-gender
relationships of members of the Armed Forces, to review the
basic training programs of the Army, Navy, Air Force, and
Marine Corps, and to make recommendations on improvements to
those programs, requirements, and restrictions.
 (b) Composition.--(1) The commission shall be composed of
10 members, appointed as follows:
 (A) Five members shall be appointed jointly by the
 chairman and ranking minority party member of the
 Committee on National Security of the House of
 Representatives.
 (B) Five members shall be appointed jointly by the
 chairman and ranking minority party member of the
 Committee on Armed Services of the Senate.
 (2) The members of the commission shall choose one of the
members to serve as chairman.
 (3) All members of the commission shall be appointed not
later than 45 days after the date of the enactment of this Act.
 (c) Qualifications.--Members of the commission shall be
appointed from among private United States citizens with
knowledge and expertise in one or more of the following:
 (1) Training of military personnel.
 (2) Social and cultural matters affecting entrance
 into the Armed Forces and affecting military service,
 military training, and military readiness, such
 knowledge and expertise to have been gained through
 recognized research, policy making and practical
 experience, as demonstrated by retired military
 personnel, members of the reserve components of the
 Armed Forces, representatives from educational
 organizations, and leaders from civilian industry and
 other Government agencies.
 (3) Factors that define appropriate military job
 qualifications, including physical, mental, and
 educational factors.
 (4) Combat or other theater of war operations.
 (5) Organizational matters.
 (6) Legal matters.
 (7) Management.
 (8) Gender integration matters.
 (d) Appointments.--(1) Members of the commission shall be
appointed for the life of the commission.
 (2) A vacancy in the membership shall not affect the
commission's powers, but shall be filled in the same manner as
the original appointment.

SEC. 562. DUTIES.

 (a) Functions Relating to Requirements and Restrictions
Regarding Cross-Gender Relationships.--The commission shall
consider issues relating to personal relationships of members
of the Armed Forces as follows:
 (1) Review the laws, regulations, policies,
 directives, and practices that govern personal
 relationships between men and women in the Armed Forces
 and personal relationships between members of the Armed
 Forces and non-military personnel of the opposite sex.
 (2) Assess the extent to which the laws,
 regulations, policies, and directives have been applied
 consistently throughout the Armed Forces without regard
 to the armed force, grade, rank, or gender of the
 individuals involved.
 (3) Assess the reports of the independent panel,
 the Department of Defense task force, and the review of
 existing guidance on fraternization and adultery that
 have been required by the Secretary of Defense.
 (b) Functions Relating to Gender-Integrated and Gender-
Segregated Basic Training.--(1) The commission shall review the
parts of the initial entry training programs of the Army, Navy,
Air Force, and Marine Corps that constitute the basic training
of new recruits (in this subtitle referred to as ``basic
training''). The review shall include a review of the basic
training policies and practices of each of those services with
regard to gender-integrated and gender-segregated basic
training and, for each of the services, the effectiveness of
gender-integrated and gender-segregated basic training.
 (2) As part of the review under paragraph (1), the
commission shall (with respect to each of the services) take
the following measures:
 (A) Determine how each service defines gender-
 integration and gender-segregation in the context of
 basic training.
 (B) Determine the historical rationales for the
 establishment and disestablishment of gender-integrated
 or gender-segregated basic training.
 (C) Examine, with respect to each service, the
 current rationale for the use of gender-integrated or
 gender-segregated basic training and the rationale that
 was current as of the time the service made a decision
 to integrate, or to segregate, basic training by gender
 (or as of the time of the most recent decision to
 continue to use a gender-integrated format or a gender-
 segregated format for basic training), and, as part of
 the examination, evaluate whether at the time of that
 decision, the Secretary of the military department with
 jurisdiction over that service had substantive reason
 to believe, or has since developed data to support,
 that gender-integrated basic training, or gender-
 segregated basic training, improves the readiness or
 performance of operational units.
 (D) Assess whether the concept of ``training as you
 will fight'' is a valid rationale for gender-integrated
 basic training or whether the training requirements and
 objectives for basic training are sufficiently
 different from those of operational units so that such
 concept, when balanced against other factors relating
 to basic training, might not be a sufficient rationale
 for gender-integrated basic training.
 (E) Identify the requirements unique to each
 service that could affect a decision by the Secretary
 concerned to adopt a gender-integrated or gender-
 segregated format for basic training and assess whether
 the format in use by each service has been successful
 in meeting those requirements.
 (F) Assess, with respect to each service, the
 degree to which different standards have been
 established, or if not established are in fact being
 implemented, for males and females in basic training
 for matters such as physical fitness, physical
 performance (such as confidence and obstacle courses),
 military skills (such as marksmanship and hand-grenade
 qualifications), and nonphysical tasks required of
 individuals and, to the degree that differing standards
 exist or are in fact being implemented, assess the
 effect of the use of those differing standards.
 (G) Identify the goals that each service has set
 forth in regard to readiness, in light of the gender-
 integrated or gender-segregated format that such
 service has adopted for basic training, and whether
 that format contributes to the readiness of operational
 units.
 (H) Assess the degree to which performance
 standards in basic training are based on military
 readiness.
 (I) Evaluate the policies of each of the services
 regarding the assignment of adequate numbers of female
 drill instructors in gender-integrated training units
 who can serve as role models and mentors for female
 trainees.
 (J) Review Department of Defense and military
 department efforts to objectively measure or evaluate
 the effectiveness of gender-integrated basic training,
 as compared to gender-segregated basic training,
 particularly with regard to the adequacy and scope of
 the efforts and with regard to the relevancy of
 findings to operational unit requirements, and
 determine whether the Department of Defense and the
 military departments are capable of measuring or
 evaluating the effectiveness of that training format
 objectively.
 (K) Compare the pattern of attrition in gender-
 integrated basic training units with the pattern of
 attrition in gender-segregated basic training units and
 assess the relevancy of the findings of such
 comparison.
 (L) Compare the level of readiness and morale of
 gender-integrated basic training units with the level
 of readiness and morale of gender-segregated units, and
 assess the relevancy of the findings of such comparison
 and the implications, for readiness, of any differences
 found.
 (M) Compare the experiences, policies, and
 practices of the armed forces of other industrialized
 nations regarding gender-integrated training with those
 of the Army, Navy, Air Force, and Marine Corps.
 (N) Review, and take into consideration, the
 current practices, relevant studies, and private sector
 training concepts pertaining to gender-integrated
 training.
 (O) Assess the feasibility and implications of
 conducting basic training (or equivalent training) at
 the company level and below through separate units for
 male and female recruits, including the costs and other
 resource commitments required to implement and conduct
 basic training in such a manner and the implications
 for readiness and unit cohesion.
 (P) Assess the feasibility and implications of
 requiring drill instructors for basic training units to
 be of the same sex as the recruits in those units if
 the basic training were to be conducted as described in
 subparagraph (O).
 (c) Functions Relating to Basic Training Programs
Generally.--The commission shall review the course objectives,
structure, and length of the basic training programs of the
Army, Navy, Air Force, and Marine Corps. The commission shall
also review the relationship between those basic training
objectives and the advanced training provided in the initial
entry training programs of each of those services. As part
ofthat review, the commission shall (with respect to each of those
services) take the following measures:
 (1) Determine the current end-state objectives
 established for graduates of basic training,
 particularly in regard to--
 (A) physical conditioning;
 (B) technical and physical skills
 proficiency;
 (C) knowledge;
 (D) military socialization, including the
 inculcation of service values and attitudes;
 and
 (E) basic combat operational requirements.
 (2) Assess whether those current end-state
 objectives, and basic training itself, should be
 modified (in structure, length, focus, program of
 instruction, training methods or otherwise) based, in
 part, on the following:
 (A) An assessment of the perspectives of
 operational units on the quality and
 qualifications of the initial entry training
 graduates being assigned to those units,
 considering in particular whether the basic
 training system produces graduates who arrive
 in operational units with an appropriate level
 of skills, physical conditioning, and degree of
 military socialization to meet unit
 requirements and needs.
 (B) An assessment of the demographics,
 backgrounds, attitudes, experience, and
 physical fitness of new recruits entering basic
 training, considering in particular the
 question of whether, given the entry level
 demographics, education, and background of new
 recruits, the basic training systems and
 objectives are most efficiently and effectively
 structured and conducted to produce graduates
 who meet service needs.
 (C) An assessment of the perspectives of
 personnel who conduct basic training with
 regard to measures required to improve basic
 training.
 (3) Assess the extent to which the initial entry
 training programs of each of the services continue,
 after the basic training phases of the programs,
 effectively to reinforce and advance the military
 socialization (including the inculcation of service
 values and attitudes), the physical conditioning, and
 the attainment and improvement of knowledge and
 proficiency in fundamental military skills that are
 begun in basic training.
 (d) Recommendations.--The commission shall prepare--
 (1) with respect to each of the Army, Navy, Air
 Force, and Marine Corps, an evaluation of gender-
 integrated and gender-segregated basic training
 programs, based upon the review under subsection (b);
 (2) recommendations for such changes to the current
 system of basic training as the commission considers
 warranted; and
 (3) recommendations for such changes to laws,
 regulations, policies, directives, and practices
 referred to in subsection (a)(1) as the commission
 considers warranted.
 (e) Reports.--(1) Not later than April 15, 1998, the
commission shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report setting forth a strategic plan for
the work of the commission and the activities and initial
findings of the commission.
 (2) Not later than September 16, 1998, the commission shall
submit a final report to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives. The final report shall set forth the
activities, findings, and recommendations of the commission,
including any recommendations for congressional action and
administrative action that the commission considers
appropriate. The report shall specifically set forth the views
of the Secretaries of the military departments regarding the
matters described in subparagraphs (O) and (P) of subsection
(b)(2).

SEC. 563. ADMINISTRATIVE MATTERS.

 (a) Meetings.--(1) The commission shall hold its first
meeting not later than 30 days after the date on which all
members have been appointed.
 (2) The commission shall meet upon the call of the
chairman.
 (3) A majority of the members of the commission shall
constitute a quorum, but a lesser number may hold meetings.
 (b) Authority of Individuals To Act for Commission.--Any
member or agent of the commission may, if authorized by the
commission, take any action which the commission is authorized
to take under this title.
 (c) Powers.--(1) The commission may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the commission considers advisable to
carry out its duties.
 (2) The commission may secure directly from the Department
of Defense and any other department or agency of the Federal
Government such information as the commission considers
necessary to carry out its duties. Upon the request of the
chairman of the commission, the head of a department or agency
shall furnish the requested information expeditiously to the
commission.
 (3) The commission may use the United States mails in the
same manner and under the same conditions as other departments
and agencies of the Federal Government.
 (d) Pay and Expenses of Commission Members.--(1) Each
member of the commission who is not an employee of the
Government shall be paid at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during
which such member is engaged in performing the duties of the
commission.
 (2) Members and personnel of the commission may travel on
aircraft, vehicles, or other conveyances of the Armed Forces
when travel is necessary in the performance of a duty of the
commission except when the cost of commercial transportation is
less expensive.
 (3) The members of the commission may be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance of
services for the commission.
 (4)(A) A member of the commission who is an annuitant
otherwise covered by section 8344 or 8468 of title 5, United
States Code, by reason of membership on the commission shall
not be subject to the provisions of such section with respect
to such membership.
 (B) A member of the commission who is a member or former
member of a uniformed service shall not be subject to the
provisions of subsections (b) and (c) of section 5532 of such
title with respect to membership on the commission.
 (e) Staff and Administrative Support.--(1) The chairman of
the commission may, without regard to civil service laws and
regulations, appoint and terminate an executive director and up
to three additional staff members as necessary to enable the
commission to perform its duties. The chairman of the
commission may fix the compensation of the executive director
and other personnel without regard to the provisions of chapter
51, and subchapter III of chapter 53, of title 5, United States
Code, relating to classification of positions and General
Schedule pay rates, except that the rate of pay may not exceed
the maximum rate of pay for grade GS-15 under the General
Schedule.
 (2) Upon the request of the chairman of the commission, the
head of any department or agency of the Federal Government may
detail, without reimbursement, any personnel of the department
or agency to the commission to assist in carrying out its
duties. A detail of an employee shall be without interruption
or loss of civil service status or privilege.
 (3) The chairman of the commission may procure temporary
and intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals that do not exceed
the daily equivalent of the annual rate of basic pay prescribed
for level IV of the Executive Schedule under section 5315 of
such title.
 (4) The Secretary of Defense shall furnish to the
commission such administrative and support services as may be
requested by the chairman of the commission.

SEC. 564. TERMINATION OF COMMISSION.

 The commission shall terminate 60 days after the date on
which it submits the final report under section 562(e)(2).

SEC. 565. FUNDING.

 (a) From Department of Defense Appropriations.--Upon the
request of the chairman of the commission, the Secretary of
Defense shall make available to the commission, out of funds
appropriated for the Department of Defense, such amounts as the
commission may require to carry out its duties.
 (b) Period of Availability.--Funds made available to the
commission shall remain available, without fiscal year
limitation, until the date on which the commission terminates.

SEC. 566. SUBSEQUENT CONSIDERATION BY CONGRESS.

 After receipt of each report of the commission under
section 562(e), Congress shall consider the report and, based
upon the results of the review (and such other matters as
Congress considers appropriate), consider whether to require by
law that the Secretaries of the military departments conduct
basic training on a gender-segregated or gender-integrated
basis.

 Subtitle G--Military Decorations and Awards

SEC. 571. PURPLE HEART TO BE AWARDED ONLY TO MEMBERS OF THE ARMED
 FORCES.

 (a) In General.--(1) Chapter 57 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 1131. Purple Heart: limitation to members of the armed forces

 ``The decoration known as the Purple Heart (authorized to
be awarded pursuant to Executive Order 11016) may only be
awarded to a person who is a member of the armed forces at the
time the person is killed or wounded under circumstances
otherwise qualifying that person for award of the Purple
Heart.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``1131. Purple Heart: limitation to members of the armed forces.''.

 (b) Effective Date.--Section 1131 of title 10, United
States Code, as added by subsection (a), shall apply with
respect to persons who are killed or wounded after the end of
the 180-day period beginning on the date of the enactment of
this Act.

SEC. 572. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL FOR
 PARTICIPATION IN OPERATION JOINT ENDEAVOR OR
 OPERATION JOINT GUARD.

 (a) Inclusion of Operations.--For the purpose of
determining the eligibility of members and former members of
the Armed Forces for the Armed Forces Expeditionary Medal, the
Secretary of Defense shall designate participation in Operation
Joint Endeavor or Operation Joint Guard in the Republic of
Bosnia and Herzegovina, and in such other areas in the region
as the Secretary considers appropriate, as service in an area
that meets the general requirements for the award of that
medal.
 (b) Individual Determination.--The Secretary of the
military department concerned shall determine whether
individual members or former members of the Armed Forces who
participated in Operation Joint Endeavor or Operation Joint
Guard meet the individual service requirements for award of the
Armed Forces Expeditionary Medal as established in applicable
regulations. A member or former member shall be considered to
have participated in Operation Joint Endeavor or Operation
Joint Guard if the member--
 (1) was deployed in the Republic of Bosnia and
 Herzegovina, or in such other area in the region as the
 Secretary of Defense considers appropriate, in direct
 support of one or both of the operations;
 (2) served on board a United States naval vessel
 operating in the Adriatic Sea in direct support of one
 or both of the operations; or
 (3) operated in airspace above the Republic of
 Bosnia and Herzegovina, or in such other area in the
 region as the Secretary of Defense considers
 appropriate, while the operations were in effect.
 (c) Operations Defined.--For purposes of this section:
 (1) The term ``Operation Joint Endeavor'' means
 operations of the United States Armed Forces conducted
 in the Republic of Bosnia and Herzegovina during the
 period beginning on November 20, 1995, and ending on
 December 20, 1996, to assist in implementing the
 General Framework Agreement and Associated Annexes,
 initialed on November 21, 1995, in Dayton, Ohio.
 (2) The term ``Operation Joint Guard'' means
 operations of the United States Armed Forces conducted
 in the Republic of Bosnia and Herzegovina as a
 successor to Operation Joint Endeavor during the period
 beginning on December 20, 1996, and ending on such date
 as the Secretary of Defense may designate.

SEC. 573. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS
 TO SPECIFIED PERSONS.

 (a) Waiver of Time Limitation.--Any limitation established
by law or policy for the time within which a recommendation for
the award of a military decoration or award must be submitted
shall not apply in the case of awards of decorations described
in subsections (b), (c), and (d), the award of each such
decoration having been determined by the Secretary of the
military department concerned to be warranted in accordance
with section 1130 of title 10, United States Code.
 (b) Silver Star Medal.--Subsection (a) applies to the award
of the Silver Star Medal as follows:
 (1) To Joseph M. Moll, Jr. of Milford, New Jersey,
 for service during World War II.
 (2) To Philip Yolinsky of Hollywood, Florida, for
 service during the Korean Conflict.
 (3) To Robert Norman of Reno, Nevada, for service
 during World War II.
 (c) Navy and Marine Corps Medal.--Subsection (a) applies to
the award of the Navy and Marine Corps Medal to Gary A.
Gruenwald of Damascus, Maryland, for service in Tunisia in
October 1977.
 (d) Distinguished Flying Cross.--Subsection (a) applies to
awards of the Distinguished Flying Cross for service during
World War II or Korea (including multiple awards to the same
individual) in the case of each individual concerning whom the
Secretary of the Navy (or an officer of the Navy acting on
behalf of the Secretary) submitted to the Committee on National
Security of the House of Representatives and the Committee on
Armed Services of the Senate, before the date of the enactment
of this Act, a notice as provided in section 1130(b) of title
10, United States Code, that the award of the Distinguished
Flying Cross to that individual is warranted and that a waiver
of time restrictions prescribed by law for recommendation for
such award is recommended.

SEC. 574. CLARIFICATION OF ELIGIBILITY OF MEMBERS OF READY RESERVE FOR
 AWARD OF SERVICE MEDAL FOR HEROISM.

 (a) Soldier's Medal.--Section 3750(a) of title 10, United
States Code, is amended--
 (1) by inserting ``(1)'' after ``(a)''; and
 (2) by adding at the end the following new
 paragraph:
 ``(2) The authority in paragraph (1) includes authority to
award the medal to a member of the Ready Reserve who was not in
a duty status defined in section 101(d) of this title when the
member distinguished himself by heroism.''.
 (b) Navy and Marine Corps Medal.--Section 6246 of such
title is amended--
 (1) by designating the text of the section as
 subsection (a); and
 (2) by adding at the end the following new
 subsection:
 ``(b) The authority in subsection (a) includes authority to
award the medal to a member of the Ready Reserve who was not in
a duty status defined in section 101(d) of this title when the
member distinguished himself by heroism.''.
 (c) Airman's Medal.--Section 8750(a) of such title is
amended--
 (1) by inserting ``(1)'' after ``(a)''; and
 (2) by adding at the end the following new
 paragraph:
 ``(2) The authority in paragraph (1) includes authority to
award the medal to a member of the Ready Reserve who was not in
a duty status defined in section 101(d) of this title when the
member distinguished himself by heroism.''.

SEC. 575. ONE-YEAR EXTENSION OF PERIOD FOR RECEIPT OF RECOMMENDATIONS
 FOR DECORATIONS AND AWARDS FOR CERTAIN MILITARY
 INTELLIGENCE PERSONNEL.

 Section 523(b)(1) of the National Defense Authorization Act
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 311; 10
U.S.C. 1130 note) is amended by striking out ``during the one-
year period beginning on the date of the enactment of this
Act'' and inserting in lieu thereof ``during the period
beginning on February 10, 1996, and ending on February 9,
1998''.

SEC. 576. ELIGIBILITY OF CERTAIN WORLD WAR II MILITARY ORGANIZATIONS
 FOR AWARD OF UNIT DECORATIONS.

 (a) Authority.--A unit decoration may be awarded for any
unit or other organization of the Armed Forces (such as the
Military Intelligence Service of the Army) that (1) supported
the planning or execution of combat operations during World War
II primarily through unit personnel who were attached to other
units of the Armed Forces or of other allied armed forces, and
(2) is not otherwise eligible for award of the decoration by
reason of not usually having been deployed as a unit in support
of such operations.
 (b) Time for Submission of Recommendation.--Any
recommendation for award of a unit decoration under subsection
(a) shall be submitted to the Secretary concerned (as defined
in section 101(a)(9) of title 10, United States Code), or to
such other official as the Secretary concerned may designate,
not later than two years after the date of the enactment of
this Act.

SEC. 577. RETROACTIVITY OF MEDAL OF HONOR SPECIAL PENSION.

 (a) Entitlement.--In the case of Vernon J. Baker, Edward A.
Carter, Junior, and Charles L. Thomas, who were awarded the
Medal of Honor pursuant to section 561 of Public Law 104-201
(110 Stat. 2529) and whose names have been entered and recorded
on the Army, Navy, Air Force, and Coast Guard Medal of Honor
Roll, the entitlement of those persons to the special pension
provided under section 1562 of title 38, United States Code
(and antecedent provisions of law), shall be effective as
follows:
 (1) In the case of Vernon J. Baker, for months that
 begin after April 1945.
 (2) In the case of Edward A. Carter, Junior, for
 months that begin after March 1945.
 (3) In the case of Charles L. Thomas, for months
 that begin after December 1944.
 (b) Amount.--The amount of the special pension payable
under subsection (a) for a month beginning before the date of
the enactment of this Act shall be the amount of the special
pension provided by law for that month for persons entered and
recorded on the Army, Navy, Air Force, and Coast Guard Medal of
Honor Roll (or an antecedent Medal of Honor Roll required by
law).
 (c) Payment to Next of Kin.--In the case of a person
referred to in subsection (a) who died before receiving full
payment of the pension pursuant to this section, the Secretary
of Veterans Affairs shall pay the total amount of the accrued
pension, upon receipt of application for payment within one
year after the date of the enactment of this Act, to the
deceased person's spouse or, if there is no surviving spouse,
then to the deceased person's children, per stirpes, in equal
shares.

 Subtitle H--Military Justice Matters

SEC. 581. ESTABLISHMENT OF SENTENCE OF CONFINEMENT FOR LIFE WITHOUT
 ELIGIBILITY FOR PAROLE.

 (a) Establishment of Sentence.--(1) Chapter 47 of title 10,
United States Code (the Uniform Code of Military Justice), is
amended by inserting after section 856 (article 56) the
following new section (article):

``Sec. 856a. Art. 56a. Sentence of confinement for life without
 eligibility for parole

 ``(a) For any offense for which a sentence of confinement
for life may be adjudged, a court-martial may adjudge a
sentence of confinement for life without eligibility for
parole.
 ``(b) An accused who is sentenced to confinement for life
without eligibility for parole shall be confined for the
remainder of the accused's life unless--
 ``(1) the sentence is set aside or otherwise
 modified as a result of--
 ``(A) action taken by the convening
 authority, the Secretary concerned, or another
 person authorized to act under section 860 of
 this title (article 60); or
 ``(B) any other action taken during post-
 trial procedure and review under any other
 provision of subchapter IX;
 ``(2) the sentence is set aside or otherwise
 modified as a result of action taken by a Court of
 Criminal Appeals, the Court of Appeals for the Armed
 Forces, or the Supreme Court; or
 ``(3) the accused is pardoned.''.
 (2) The table of sections at the beginning of subchapter
VIII of such chapter is amended by inserting after the item
relating to section 856 (article 56) the following new item:

``856a. 56a. Sentence of confinement for life without eligibility for
 parole.''.

 (b) Effective Date.--Section 856a of title 10, United
States Code (article 56a of the Uniform Code of Military
Justice), as added by subsection (a), shall be applicable only
with respect to an offense committed after the date of the
enactment of this Act.

SEC. 582. LIMITATION ON APPEAL OF DENIAL OF PAROLE FOR OFFENDERS
 SERVING LIFE SENTENCE.

 (a) Exclusive Authority To Grant Parole on Appeal of
Denial.--Section 952 of title 10, United States Code, is
amended--
 (1) by inserting ``(a)'' before ``The Secretary'';
 and
 (2) by adding at the end the following new
 subsection:
 ``(b) In a case in which parole for an offender serving a
sentence of confinement for life is denied, only the President
or the Secretary concerned may grant the offender parole on
appeal of that denial. The authority to grant parole on appeal
in such a case may not be delegated.''.
 (b) Effective Date.--Subsection (b) of section 952 of title
10, United States Code (as added by subsection (a)), shall
apply only with respect to any decision to deny parole made
after the date of the enactment of this Act.

 Subtitle I--Other Matters

SEC. 591. SEXUAL HARASSMENT INVESTIGATIONS AND REPORTS.

 (a) Investigations.--(1) Part II of subtitle A of title 10,
United States Code, is amended by inserting after chapter 79
the following new chapter:

``CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

``Sec.
``1561. Complaints of sexual harassment: investigation by commanding
 officers.

``Sec. 1561. Complaints of sexual harassment: investigation by
 commanding officers

 ``(a) Action on Complaints Alleging Sexual Harassment.--A
commanding officer or officer in charge of a unit, vessel,
facility, or area of the Army, Navy, Air Force, or Marine Corps
who receives from a member of the command or a civilian
employee under the supervision of the officer a complaint
alleging sexual harassment by a member of the armed forces or a
civilian employee of the Department of Defense shall carry out
an investigation of the matter in accordance with this section.
 ``(b) Commencement of Investigation.--To the extent
practicable, a commanding officer or officer in charge
receiving such a complaint shall, within 72 hours after receipt
of the complaint--
 ``(1) forward the complaint or a detailed
 description of the allegation to the next superior
 officer in the chain of command who is authorized to
 convene a general court-martial;
 ``(2) commence, or cause the commencement of, an
 investigation of the complaint; and
 ``(3) advise the complainant of the commencement of
 the investigation.
 ``(c) Duration of Investigation.--To the extent
practicable, a commanding officer or officer in charge
receiving such a complaint shall ensure that the investigation
of the complaint is completed not later than 14 days after the
date on which the investigation is commenced.
 ``(d) Report on Investigation.--To the extent practicable,
a commanding officer or officer in charge receiving such a
complaint shall--
 ``(1) submit a final report on the results of the
 investigation, including any action taken as a result
 of the investigation, to the next superior officer
 referred to in subsection (b)(1) within 20 days after
 the date on which the investigation is commenced; or
 ``(2) submit a report on the progress made in
 completing the investigation to the next superior
 officer referred to in subsection (b)(1) within 20 days
 after the date on which the investigation is commenced
 and every 14 days thereafter until the investigation is
 completed and, upon completion of the investigation,
 then submit a final report on the results of the
 investigation, including any action taken as a result
 of the investigation, to that next superior officer.
 ``(e) Sexual Harassment Defined.--In this section, the term
`sexual harassment' means any of the following:
 ``(1) Conduct (constituting a form of sex
 discrimination) that--
 ``(A) involves unwelcome sexual advances,
 requests for sexual favors, and deliberate or
 repeated offensive comments or gestures of a
 sexual nature when--
 ``(i) submission to such conduct is
 made either explicitly or implicitly a
 term or condition of a person's job,
 pay, or career;
 ``(ii) submission to or rejection
 of such conduct by a person is used as
 a basis for career or employment
 decisions affecting that person; or
 ``(iii) such conduct has the
 purpose or effect of unreasonably
 interfering with an individual's work
 performance or creates an intimidating,
 hostile, or offensive working
 environment; and
 ``(B) is so severe or pervasive that a
 reasonable person would perceive, and the
 victim does perceive, the work environment as
 hostile or offensive.
 ``(2) Any use or condonation, by any person in a
 supervisory or command position, of any form of sexual
 behavior to control, influence, or affect the career,
 pay, or job of a member of the armed forces or a
 civilian employee of the Department of Defense.
 ``(3) Any deliberate or repeated unwelcome verbal
 comment or gesture of a sexual nature in the workplace
 by any member of the armed forces or civilian employee
 of the Department of Defense.''.
 (2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part II of subtitle A, of such title
are amended by inserting after the item relating to chapter 79
the following new item:

``80. Miscellaneous Investigation Requirements and Other Duties..1561''.

 (b) Reports.--(1) Not later than January 1 of each of 1998
and 1999, each officer receiving a complaint forwarded in
accordance with section 1561(b) of title 10, United States
Code, as added by subsection (a), during the preceding year
shall submit to the Secretary of the military department
concerned a report on all such complaints and the
investigations of such complaints (including the results of the
investigations, in cases of investigations completed during
such preceding year).
 (2)(A) Not later than March 1 of each of 1998 and 1999,
each Secretary receiving a report under paragraph (1) for a
year shall submit to the Secretary of Defense a report on all
such reports so received.
 (B) Not later than the April 1 following receipt of a
report for a year under subparagraph (A), the Secretary of
Defense shall transmit to Congress all such reports received
for the year under subparagraph (A) together with the
Secretary's assessment of each such report.

SEC. 592. SENSE OF THE SENATE REGARDING STUDY OF MATTERS RELATING TO
 GENDER EQUITY IN THE ARMED FORCES.

 (a) Findings.--The Senate makes the following findings:
 (1) In the all-volunteer force, women play an
 integral role in the Armed Forces.
 (2) With increasing numbers of women in the Armed
 Forces, questions arise concerning inequalities, and
 perceived inequalities, between the treatment of men
 and women in the Armed Forces.
 (b) Sense of the Senate.--It is the sense of the Senate
that the Comptroller General should--
 (1) conduct a study on any inequality, or
 perception of inequality, in the treatment of men and
 women in the Armed Forces that arises out of the
 statutes and regulations governing the Armed Forces;
 and
 (2) submit to the Senate a report on the study not
 later than one year after the date of the enactment of
 this Act.

SEC. 593. AUTHORITY FOR PERSONNEL TO PARTICIPATE IN MANAGEMENT OF
 CERTAIN NON-FEDERAL ENTITIES.

 (a) Military Personnel.--(1) Chapter 53 of title 10, United
States Code, is amended by inserting after section 1032 the
following new section:

``Sec. 1033. Participation in management of specified non-Federal
 entities: authorized activities

 ``(a) Authorization.--The Secretary concerned may authorize
a member of the armed forces under the Secretary's jurisdiction
to serve without compensation as a director, officer, or
trustee, or to otherwise participate, in the management of an
entity designated under subsection (b). Any such authorization
shall be made on a case-by-case basis, for a particular member
to participate in a specific capacity with a specific
designated entity. Such authorization may be made only for the
purpose of providing oversight and advice to, and coordination
with, the designated entity, and participation of the member in
the activities of the designated entity may not extend to
participation in the day-to-day operations of the entity.
 ``(b) Designated Entities.--(1) The Secretary of Defense,
and the Secretary of Transportation in the case of the Coast
Guard when it is not operating as a service in the Navy, shall
designate those entities for which authorization under
subsection (a) may be provided. The list of entities so
designated may not be revised more frequently than
semiannually. In making such designations, the Secretary shall
designate each military welfare society and may designate any
other entity described in paragraph (3). No other entities may
be designated.
 ``(2) In this section, the term `military welfare society'
means the following:
 ``(A) Army Emergency Relief.
 ``(B) Air Force Aid Society, Inc.
 ``(C) Navy-Marine Corps Relief Society.
 ``(D) Coast Guard Mutual Assistance.
 ``(3) An entity described in this paragraph is an entity
that is not operated for profit and is any of the following:
 ``(A) An entity that regulates and supports the
 athletic programs of the service academies (including
 athletic conferences).
 ``(B) An entity that regulates international
 athletic competitions.
 ``(C) An entity that accredits service academies
 and other schools of the armed forces (including
 regional accrediting agencies).
 ``(D) An entity that (i) regulates the performance,
 standards, and policies of military health care
 (including health care associations and professional
 societies), and (ii) has designated the position or
 capacity in that entity in which a member of the armed
 forces may serve if authorized under subsection (a).
 ``(c) Publication of Designated Entities and of Authorized
Persons.--A designation of an entity under subsection (b), and
an authorization under subsection (a) of a member of the armed
forces to participate in the management of such an entity,
shall be published in the Federal Register.
 ``(d) Regulations.--The Secretary of Defense, and the
Secretary of Transportation in the case of the Coast Guard when
it is not operating as a service in the Navy, shall prescribe
regulations to carry out this section.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 1032
the following new item:

``1033. Participation in management of specified non-Federal entities:
 authorized activities.''.

 (b) Civilian Personnel.--(1) Chapter 81 of such title is
amended by inserting after section 1588 the following new
section:

``Sec. 1589. Participation in management of specified non-Federal
 entities: authorized activities

 ``(a) Authorization.--(1) The Secretary concerned may
authorize an employee described in paragraph (2) to serve
without compensation as a director, officer, or trustee, or to
otherwise participate, in the management of an entity
designated under subsection (b). Any such authorization shall
be made on a case-by-case basis, for a particular employee to
participate in a specific capacity with a specific designated
entity. Such authorization may be made only for the purpose of
providing oversight and advice to, and coordination with, the
designated entity, and participation of the employee in the
activities of the designated entity may not extend to
participation in the day-to-day operations of the entity.
 ``(2) Paragraph (1) applies to any employee of the
Department of Defense or, in the case of the Coast Guard when
not operating as a service in the Navy, of the Department of
Transportation. For purposes of this section, the term
`employee' includes a civilian officer.
 ``(b) Designated Entities.--The Secretary of Defense, and
the Secretary of Transportation in the case of the Coast Guard
when it is not operating as a service in the Navy, shall
designate those entities for which authorization under
subsection (a) may be provided. The list of entities so
designated may not be revised more frequently than
semiannually. In making such designations, the Secretary shall
designate each military welfare society named in paragraph (2)
of section 1033(b) of this title and may designate any other
entity described in paragraph (3) of such section. No other
entities may be designated.
 ``(c) Publication of Designated Entities and of Authorized
Persons.--A designation of an entity under subsection (b), and
an authorization under subsection (a) of an employee to
participate in the management of such an entity, shall be
published in the Federal Register.
 ``(d) Civilians Outside the Military Departments.--In this
section, the term `Secretary concerned' includes the Secretary
of Defense with respect to employees of the Department of
Defense who are not employees of a military department.
 ``(e) Regulations.--The Secretary of Defense, and the
Secretary of Transportation in the case of the Coast Guardwhen
it is not operating as a service in the Navy, shall prescribe
regulations to carry out this section.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 1588
the following new item:

``1589. Participation in management of specified non-Federal entities:
 authorized activities.''.

SEC. 594. TREATMENT OF PARTICIPATION OF MEMBERS IN DEPARTMENT OF
 DEFENSE CIVIL MILITARY PROGRAMS.

 Section 2012 of title 10, United States Code, is amended--
 (1) by redesignating subsections (g) and (h) as
 subsections (h) and (i), respectively; and
 (2) by inserting after subsection (f) the following
 new subsection:
 ``(g) Treatment of Member's Participation in Provision of
Support or Services.--(1) The Secretary of a military
department may not require or request a member of the armed
forces to submit for consideration by a selection board
(including a promotion board, command selection board, or any
other kind of selection board) evidence of the member's
participation in the provision of support and services to non-
Department of Defense organizations and activities under this
section or the member's involvement in, or support of, other
community relations and public affairs activities of the armed
forces.
 ``(2) Paragraph (1) does not prevent a selection board from
considering material submitted voluntarily by a member of the
armed forces which provides evidence of the participation of
that member or another member in activities described in that
paragraph.''.

SEC. 595. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE CIVIL
 MILITARY PROGRAMS.

 (a) Study Required.--The Comptroller General shall conduct
a study to evaluate the following:
 (1) The nature, extent, and cost to the Department
 of Defense of the support and services being provided
 by units and members of the Armed Forces to non-
 Department of Defense organizations and activities
 under the authority of section 2012 of title 10, United
 States Code.
 (2) The degree to which the Armed Forces are in
 compliance with the requirements of such section in the
 provision of such support and services, especially the
 requirements that the assistance meet specific
 requirements relative to military training and that the
 assistance provided be incidental to military training.
 (3) The degree to which the regulations and
 procedures for implementing such section, as required
 by subsection (f) of such section, are consistent with
 the requirements of such section.
 (4) The effectiveness of the Secretary of Defense
 and the Secretaries of the military departments in
 conducting oversight of the implementation of such
 section, and the provision of such support and services
 under such section, to ensure compliance with the
 requirements of such section.
 (b) Submission of Report.--Not later than March 31, 1998,
the Comptroller General shall submit to Congress a report
containing the results of the study required by subsection (a).

SEC. 596. ESTABLISHMENT OF PUBLIC AFFAIRS SPECIALTY IN THE ARMY.

 (a) New Specialty.--Chapter 307 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 3083. Public Affairs Specialty

 ``There is a career field in the Army known as the Public
Affairs Specialty. Members of the Army with the Public Affairs
Specialty are--
 ``(1) the Chief of Public Affairs;
 ``(2) commissioned officers of the Army in the
 grade of major or above who are selected and
 specifically educated, trained, and experienced to
 perform as professional public affairs officers for the
 remainder of their careers; and
 ``(3) other members of the Army assigned to public
 affairs positions by the Secretary of the Army.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``3083. Public Affairs Specialty.''.

SEC. 597. GRADE OF DEFENSE ATTACHE IN FRANCE.

 (a) In General.--Chapter 41 of title 10, United States
Code, is amended by inserting after section 713 the following
new section:

``Sec. 714. Defense attache in France: required grade

 ``An officer may not be selected for assignment to the
position of defense attache to the United States embassy in
France unless the officer holds (or is on a promotion list for
promotion to) the grade of brigadier general or, in the case of
the Navy, rear admiral (lower half).''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 713 the following new item:

``714. Defense attache in France: required grade.''.

SEC. 598. REPORT ON CREW REQUIREMENTS OF WC-130J AIRCRAFT.

 (a) Study.--The Secretary of the Air Force shall conduct a
study of the crew requirements for WC-130J aircraft to be
procured for assignment to the aerial weather reconnaissance
mission involving the eyewall penetration of tropical cyclones.
The study shall include study of the anticipated operation of
WC-130J aircraft in weather reconnaissance missions configured
to carry five crewmembers, including a navigator. In carrying
out the study, the Secretary shall provide for participation by
members of the Armed Forces currently assigned to units engaged
in weather reconnaissance operations.
 (b) Report.--The Secretary shall submit to Congress a
report on the results of the study. The Secretary shall
includein the report the views of members of the Armed Forces currently
assigned to units engaged in weather reconnaissance operations who
participated in the study. If as a result of the study the Secretary
determines that there are crewmembers assigned to weather
reconnaissance duties in excess of the crew requirements that will be
applicable for WC-130J aircraft, the Secretary shall include in the
report a plan for retraining or reassignment of those crewmembers. The
study shall be submitted not later than September 30, 1998.

SEC. 599. IMPROVEMENT OF MISSING PERSONS AUTHORITIES APPLICABLE TO
 DEPARTMENT OF DEFENSE.

 (a) Applicability to Department of Defense Civilian
Employees and Contractor Employees.--(1) Section 1501 of title
10, United States Code, is amended--
 (A) by striking out subsection (c) and inserting in
 lieu thereof the following:
 ``(c) Covered Persons.--(1) Section 1502 of this title
applies in the case of any member of the armed forces on active
duty--
 ``(A) who becomes involuntarily absent as a result
 of a hostile action or under circumstances suggesting
 that the involuntary absence is a result of a hostile
 action; and
 ``(B) whose status is undetermined or who is
 unaccounted for.
 ``(2) Section 1502 of this title applies in the case of any
other person who is a citizen of the United States and a
civilian officer or employee of the Department of Defense or
(subject to paragraph (3)) an employee of a contractor of the
Department of Defense--
 ``(A) who serves in direct support of, or
 accompanies, the armed forces in the field under orders
 and becomes involuntarily absent as a result of a
 hostile action or under circumstances suggesting that
 the involuntary absence is a result of a hostile
 action; and
 ``(B) whose status is undetermined or who is
 unaccounted for.
 ``(3) The Secretary of Defense shall determine, with regard
to a pending or ongoing military operation, the specific
employees, or groups of employees, of contractors of the
Department of Defense to be considered to be covered by this
subsection.''; and
 (B) by adding at the end the following new
 subsection:
 ``(f) Secretary Concerned.--In this chapter, the term
`Secretary concerned' includes, in the case of a civilian
officer or employee of the Department of Defense or an employee
of a contractor of the Department of Defense, the Secretary of
the military department or head of the element of the
Department of Defense employing the officer or employee or
contracting with the contractor, as the case may be.''.
 (2) Section 1503(c) of such title is amended--
 (A) in paragraph (1), by striking out ``one
 military officer'' and inserting in lieu thereof ``one
 individual described in paragraph (2)'';
 (B) by redesignating paragraphs (2) and (3) as
 paragraphs (3) and (4), respectively; and
 (C) by inserting after paragraph (1) the following
 new paragraph (2):
 ``(2) An individual referred to in paragraph (1) is the
following:
 ``(A) A military officer, in the case of an inquiry
 with respect to a member of the armed forces.
 ``(B) A civilian, in the case of an inquiry with
 respect to a civilian employee of the Department of
 Defense or of a contractor of the Department of
 Defense.''.
 (3) Section 1504(d) of such title is amended--
 (A) in paragraph (1), by striking out ``who are''
 and all that follows in that paragraph and inserting in
 lieu thereof ``as follows:
 ``(A) In the case of a board that will inquire into
 the whereabouts and status of one or more members of
 the armed forces (and no civilians described in
 subparagraph (B)), the board shall be composed of
 officers having the grade of major or lieutenant
 commander or above.
 ``(B) In the case of a board that will inquire into
 the whereabouts and status of one or more civilian
 employees of the Department of Defense or contractors
 of the Department of Defense (and no members of the
 armed forces), the board shall be composed of--
 ``(i) not less than three employees of the
 Department of Defense whose rate of annual pay
 is equal to or greater than the rate of annual
 pay payable for grade GS-13 of the General
 Schedule under section 5332 of title 5; and
 ``(ii) such members of the armed forces as
 the Secretary considers advisable.
 ``(C) In the case of a board that will inquire into
 the whereabouts and status of both one or more members
 of the armed forces and one or more civilians described
 in subparagraph (B)--
 ``(i) the board shall include at least one
 officer described in subparagraph (A) and at
 least one employee of the Department of Defense
 described in subparagraph (B)(i); and
 ``(ii) the ratio of such officers to such
 employees on the board shall be roughly
 proportional to the ratio of the number of
 members of the armed forces who are subjects of
 the board's inquiry to the number of civilians
 who are subjects of the board's inquiry.''; and
 (B) in paragraph (4), by striking out ``section
 1503(c)(3)'' and inserting in lieu thereof ``section
 1503(c)(4)''.
 (4) Paragraph (1) of section 1513 of such title is amended
to read as follows:
 ``(1) The term `missing person' means--
 ``(A) a member of the armed forces on
 active duty who is in a missing status; or
 ``(B) a civilian employee of the Department
 of Defense or an employee of a contractor of
 the Department of Defense who serves in direct
 support of, or accompanies, the armed forces in
 the field under orders and who is in a missing
 status.

 Such term includes an unaccounted for person described
 in section 1509(b) of this title, under the
 circumstances specified in the last sentence of section
 1509(a) of this title.''.
 (b) Transmission to Theater Component Commander of Advisory
Copy of Missing Person Report.--(1) Section 1502 of such title
is amended--
 (A) by redesignating subsection (b) as subsection
 (c); and
 (B) by inserting after subsection (a) the following
 new subsection (b):
 ``(b) Transmission of Advisory Copy to Theater Component
Commander.--When transmitting a report under subsection (a)(2)
recommending that a person be placed in a missing status, the
commander transmitting that report shall transmit an advisory
copy of the report to the theater component commander with
jurisdiction over the missing person.''.
 (2) Section 1513 of such title is amended by adding at the
end the following new paragraph:
 ``(8) The term `theater component commander' means,
 with respect to any of the combatant commands, an
 officer of any of the armed forces who (A) is commander
 of all forces of that armed force assigned to that
 combatant command, and (B) is directly subordinate to
 the commander of the combatant command.''.
 (c) Information To Accompany Recommendation of Status of
Death.--Section 1507(b) of such title is amended adding at the
end the following new paragraphs:
 ``(3) A description of the location of the body, if
 recovered.
 ``(4) If the body has been recovered and is not
 identifiable through visual means, a certification by a
 forensic pathologist that the body recovered is that of
 the missing person. In determining whether to make such
 a certification, the forensic pathologist shall
 consider, as determined necessary by the Secretary of
 the military department concerned, additional evidence
 and information provided by appropriate specialists in
 forensic medicine or other appropriate medical
 sciences.''.
 (d) Missing Person's Counsel.--(1) Sections 1503(f)(1) and
1504(f)(1) of such title are amended by adding at the end the
following: ``The identity of counsel appointed under this
paragraph for a missing person shall be made known to the
missing person's primary next of kin and any other previously
designated person of the person.''.
 (2) Section 1503(f)(4) of such title is amended by adding
at the end the following: ``The primary next of kin of a
missing person and any other previously designated person of
the missing person shall have the right to submit information
to the missing person's counsel relative to the disappearance
or status of the missing person.''.
 (e) Scope of Preenactment Review.--(1) Section 1509 of such
title is amended by striking out subsection (a) and inserting
in lieu thereof the following:
 ``(a) Review of Status.--(1) If new information (as defined
in paragraph (2)) is found or received that may be related to
one or more unaccounted for persons described in subsection (b)
(whether or not such information specifically relates (or may
specifically relate) to any particular such unaccounted for
person), that information shall be provided to the Secretary of
Defense. Upon receipt of such information, the Secretary shall
ensure that the information is treated under paragraphs (2) and
(3) of section 1505(c) of this title and under section 1505(d)
of this title in the same manner as information received under
paragraph (1) of section 1505(c) of this title. For purposes of
the applicability of other provisions of this chapter in such a
case, each such unaccounted for person to whom the new
information may be related shall be considered to be a missing
person.
 ``(2) For purposes of this subsection, new information is
information that is credible and that--
 ``(A) is found or received after the date of the
 enactment of the National Defense Authorization Act
forFiscal Year 1998 by a United States intelligence agency, by a
Department of Defense agency, or by a person specified in section
1504(g) of this title; or
 ``(B) is identified after the date of the enactment
 of the National Defense Authorization Act for Fiscal
 Year 1998 in records of the United States as
 information that could be relevant to the case of one
 or more unaccounted for persons described in subsection
 (b).''.
 (2) Such section is further amended by adding at the end
the following new subsection:
 ``(d) Establishment of Personnel Files for Korean Conflict
Cases.--The Secretary of Defense shall ensure that a personnel
file is established for each unaccounted for person who is
described in subsection (b)(1) if the Secretary possesses
information relevant to that person's status. In the case of a
person described in subsection (b)(1) for whom a personnel file
does not exist, the Secretary shall create a personnel file for
such person upon receipt of new information as provided in
subsection (a). Each such file shall be handled in accordance
with, and subject to the provisions of, section 1506 of this
title in the same manner as applies to the file of a missing
person.''.
 (f) Withholding of Classified Information.--Section 1506(b)
of such title is amended--
 (1) by inserting ``(1)'' before ``The Secretary'';
 (2) by redesignating paragraphs (1) and (2) as
 subparagraphs (A) and (B), respectively; and
 (3) by adding at the end the following:
 ``(2) If classified information withheld under this
subsection refers to one or more unnamed missing persons, the
Secretary shall ensure that notice of that withheld
information, and notice of the date of the most recent review
of the classification of that withheld information, is made
reasonably accessible to the primary next of kin, members of
the immediate family, and the previously designated person.''.
 (g) Withholding of Privileged Information.--Section 1506(d)
of such title is amended--
 (1) in paragraph (2)--
 (A) by inserting ``or about unnamed missing
 persons'' in the first sentence after ``the
 debriefing report'';
 (B) by striking out ``the missing person''
 in the second sentence and inserting in lieu
 thereof ``each missing person named in the
 debriefing report''; and
 (C) by adding at the end the following new
 sentence: ``Any information contained in the
 extract of the debriefing report that pertains
 to unnamed missing persons shall be made
 reasonably accessible to the primary next of
 kin, members of the immediate family, and the
 previously designated person.''; and
 (2) in paragraph (3), by inserting ``, or part of a
 debriefing report,'' after ``a debriefing report''.

 TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

 Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1998.
Sec. 602. Reform of basic allowance for subsistence.
Sec. 603. Consolidation of basic allowance for quarters, variable
 housing allowance, and overseas housing allowances.
Sec. 604. Revision of authority to adjust compensation necessitated by
 reform of subsistence and housing allowances.
Sec. 605. Protection of total compensation of members while performing
 certain duty.

 Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay
 authorities for reserve forces.
Sec. 612. One-year extension of certain bonuses and special pay
 authorities for nurse officer candidates, registered nurses,
 and nurse anesthetists.
Sec. 613. One-year extension of authorities relating to payment of other
 bonuses and special pays.
Sec. 614. Increase in minimum monthly rate of hazardous duty incentive
 pay for certain members.
Sec. 615. Increase in aviation career incentive pay.
Sec. 616. Modification of aviation officer retention bonus.
Sec. 617. Availability of multiyear retention bonus for dental officers.
Sec. 618. Increase in variable and additional special pays for certain
 dental officers.
Sec. 619. Availability of special pay for duty at designated hardship
 duty locations.
Sec. 620. Definition of sea duty for purposes of career sea pay.
Sec. 621. Modification of Selected Reserve reenlistment bonus.
Sec. 622. Modification of Selected Reserve enlistment bonus for former
 enlisted members.
Sec. 623. Expansion of reserve affiliation bonus to include Coast Guard
 Reserve.
Sec. 624. Increase in special pay and bonuses for nuclear-qualified
 officers.
Sec. 625. Provision of bonuses in lieu of special pay for enlisted
 members extending tours of duty at designated locations
 overseas.
Sec. 626. Increase in amount of family separation allowance.
Sec. 627. Deadline for payment of Ready Reserve muster duty allowance.

 Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for dependents before
 approval of member's court-martial sentence.
Sec. 632. Dislocation allowance.

 Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 641. One-year opportunity to discontinue participation in Survivor
 Benefit Plan.
Sec. 642. Time in which change in survivor benefit coverage from former
 spouse to spouse may be made.
Sec. 643. Review of Federal former spouse protection laws.
Sec. 644. Annuities for certain military surviving spouses.
Sec. 645. Administration of benefits for so-called minimum income
 widows.

 Subtitle E--Other Matters

Sec. 651. Loan repayment program for commissioned officers in certain
 health professions.
Sec. 652. Conformance of NOAA commissioned officers separation pay to
 separation pay for members of other uniformed services.
Sec. 653. Eligibility of Public Health Service officers and NOAA
 commissioned corps officers for reimbursement of adoption
 expenses.
Sec. 654. Payment of back quarters and subsistence allowances to World
 War II veterans who served as guerrilla fighters in the
 Philippines.
Sec. 655. Subsistence of members of the Armed Forces above the poverty
 level.

 Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.

 (a) Waiver of Section 1009 Adjustment.--The adjustment, to
become effective during fiscal year 1998, required by section
1009 of title 37, United States Code (as amended by section
604), in the rate of monthly basic pay authorized members of
the uniformed services by section 203(a) of such title shall
not be made.
 (b) Increase in Basic Pay.--Effective on January 1, 1998,
the rates of basic pay of members of the uniformed services are
increased by 2.8 percent.

SEC. 602. REFORM OF BASIC ALLOWANCE FOR SUBSISTENCE.

 (a) Entitlement to Allowance.--Section 402 of title 37,
United States Code, is amended to read as follows:

``Sec. 402. Basic allowance for subsistence

 ``(a) Entitlement to Allowance.--(1) Except as provided in
paragraph (2) or otherwise provided by law, each member of a
uniformed service who is entitled to basic pay is entitled to a
basic allowance for subsistence as set forth in this section.
 ``(2) An enlisted member is not entitled to the basic
allowance for subsistence during basic training.
 ``(b) Rates of Allowance Based on Food Costs.--(1) The
monthly rate of basic allowance for subsistence to be in effect
for an enlisted member for a year (beginning on January 1 of
that year) shall be the amount that is halfway between the
following amounts, which are determined by the Secretary of
Agriculture as of October 1 of the preceding year:
 ``(A) The amount equal to the monthly cost of a
 moderate-cost food plan for a male in the United States
 who is between 20 and 50 years of age.
 ``(B) The amount equal to the monthly cost of a
 liberal food plan for a male in the United States who
 is between 20 and 50 years of age.
 ``(2) The monthly rate of basic allowance for subsistence
to be in effect for an officer for a year (beginning on January
1 of that year) shall be the amount equal to the monthly rate
of basic allowance for subsistence in effect for officers for
the preceding year, increased by the same percentage by which
the rate of basic allowance for subsistence for enlisted
members for the preceding year is increased effective on such
January 1.
 ``(c) Advance Payment.--The allowance to an enlisted member
may be paid in advance for a period of not more than three
months.
 ``(d) Special Rule for Members Authorized To Mess
Separately.--(1) In areas prescribed by the Secretary of
Defense, and the Secretary of Transportation with respect to
the Coast Guard when it is not operating as a service in the
Navy, an enlisted member described in paragraph (2) is entitled
to not more than the pro rata allowance established under
subsection (b)(1) for each meal the member buys from a source
other than a messing facility of the United States.
 ``(2) An enlisted member referred to in paragraph (1) is a
member who is granted permission to mess separately and whose
duties require the member to buy at least one meal from a
source other than a messing facility of the United States.
 ``(e) Policies on Use of Dining and Messing Facilities.--
The Secretary of Defense, in consultation with the Secretaries
concerned, shall prescribe policies regarding use of dining and
field messing facilities of the uniformed services.
 ``(f) Regulations.--(1) The Secretary of Defense shall
prescribe regulations for the administration of this section.
Before prescribing the regulations, the Secretary shall consult
with each Secretary concerned.
 ``(2) The regulations shall include the specific rates of
basic allowance for subsistence required by subsection (b).''.
 (b) Conforming Amendments.--(1) Section 404 of title 37,
United States Code, is amended--
 (A) by striking out subsection (g); and
 (B) by redesignating subsections (h), (i), (j), and
 (k) as subsections (g), (h), (i), and (j),
 respectively.
 (2) Section 6081(a) of title 10, United States Code, is
amended by striking out ``Except'' and all that follows through
``subsistence, each'' and inserting in lieu thereof ``Each''.
 (c) Transitional Authority To Provide Basic Allowance for
Subsistence.--
 (1) Transitional authority.--Notwithstanding
 section 402 of title 37, United States Code, as amended
 by subsection (a), during the period beginning on
 January 1, 1998, and ending on the date determined
 under paragraph (2)--
 (A) the basic allowance for subsistence
 shall not be paid under such section 402;
 (B) a member of the uniformed services is
 entitled to the basic allowance for subsistence
 only as provided in subsection (d);
 (C) an enlisted member of the uniformed
 services may be paid a partial basic allowance
 for subsistence as provided in subsection (e);
 and
 (D) the rates of the basic allowance for
 subsistence are those rates determined under
 subsection (f).
 (2) Termination of transitional authority.--The
 transitional authority provided under paragraph (1)
 shall terminate on the first day of the month
 immediately following the first month for which the
 monthly equivalent of the rate of basic allowance for
 subsistence payable to enlisted members of the
 uniformed services (when permission to mess separately
 is granted), as determined under subsection (f)(2), is
 equal to or is exceeded by the amountthat, except for
paragraph (1)(A), would otherwise be the monthly rate of basic
allowance for subsistence for enlisted members under section 402(b)(1)
of title 37, United States Code, as amended by subsection (a).
 (d) Transitional Entitlement to Allowance.--
 (1) Enlisted members.--
 (A) Types of entitlement.--An enlisted
 member is entitled to the basic allowance for
 subsistence, on a daily basis, of under one or
 more of the following circumstances:
 (i) When rations in kind are not
 available
 (ii) When permission to mess
 separately is granted.
 (iii) When assigned to duty under
 emergency conditions where no messing
 facilities of the United States are
 available.
 (B) Other entitlement circumstances.--An
 enlisted member is entitled to the allowance
 while on an authorized leave of absence, while
 confined in a hospital, or while performing
 travel under orders away from the member's
 designated post of duty other than field duty
 or sea duty (as defined in regulations
 prescribed by the Secretary of Defense). For
 purposes of the preceding sentence, a member
 shall not be considered to be performing travel
 under orders away from his designated post of
 duty if such member--
 (i) is an enlisted member serving
 the member's first tour of active duty;
 (ii) has not actually reported to a
 permanent duty station pursuant to
 orders directing such assignment; and
 (iii) is not actually traveling
 between stations pursuant to orders
 directing a change of station.
 (C) Advance payment.--The allowance to an
 enlisted member, when authorized, may be paid
 in advance for a period of not more than three
 months.
 (2) Officers.--An officer of a uniformed service
 who is entitled to basic pay is, at all times, entitled
 to the basic allowances for subsistence. An aviation
 cadet of the Navy, Air Force, Marine Corps, or Coast
 Guard is entitled to the same basic allowance for
 subsistence as is provided for an officer of the Navy,
 Air Force, Marine Corps, or Coast Guard, respectively.
 (e) Transitional Authority for Partial Allowance.--
 (1) Enlisted members furnished subsistence in
 kind.--The Secretary of Defense may provide in
 regulations for an enlisted member of a uniformed
 service to be paid a partial basic allowance for
 subsistence when--
 (A) rations in kind are available to the
 member;
 (B) the member is not granted permission to
 mess separately; or
 (C) the member is assigned to duty under
 emergency conditions where messing facilities
 of the United States are available.
 (2) Monthly payment.--Any partial basic allowance
 for subsistence authorized under paragraph (1) shall be
 calculated on a daily basis and paid on a monthly
 basis.
 (f) Transitional Rates.--
 (1) Allowance for officers.--The monthly rate of
 basic allowance for subsistence for a year (beginning
 on January 1 of that year) that is payable to officers
 of the uniformed services shall be the amount that is
 equal to 101 percent of the rate of basic allowance for
 subsistence that was payable to officers of the
 uniformed services for the preceding year.
 (2) Allowance for enlisted member with permission
 to mess separately.--The monthly rate of basic
 allowance for subsistence for a year (beginning on
 January 1 of that year) that is payable to an enlisted
 member of the uniformed services entitled to the
 allowance under subsection (d)(1) shall be the amount
 that is equal to 101 percent of the rate of basic
 allowance for subsistence that wasin effect for
similarly situated enlisted members of the uniformed services for the
preceding year.
 (3) Partial allowance for other enlisted members.--
 The monthly rate of any partial basic allowance for
 subsistence for a year (beginning on January 1 of that
 year) payable to an enlisted member of the uniformed
 services eligible for the allowance under the
 regulations prescribed under subsection (e)(1) shall be
 the amount equal to the lesser of the following:
 (A) The sum of--
 (i) the partial basic allowance for
 subsistence in effect for the preceding
 year; and
 (ii) the amount equal to the
 difference, if any, between--
 (I) the monthly equivalent
 of the rate of basic allowance
 for subsistence that was in
 effect for the preceding year
 for members of the uniformed
 services above grade E-1 (when
 permission to mess separately
 is granted), increased by the
 same percentage by which the
 rates of basic pay for members
 of the uniformed services is
 increased for the current year;
 and
 (II) the amount equal to
 101 percent of the monthly
 equivalent of the rate of basic
 allowance for subsistence that
 was in effect for the previous
 year for members of the
 uniformed services above grade
 E-1 (when permission to mess
 separately is granted),

 with the amount so determined under
 this clause multiplied by the number of
 members estimated to be entitled to
 receive basic allowance for subsistence
 under subsection (d) for the current
 year and then divided by the number of
 members estimated to be eligible for
 the partial allowance under the
 regulations prescribed under subsection
 (e)(1) for that year.
 (B) The amount equal to the difference
 between--
 (i) the amount that, except for
 subsection (c)(1)(A), would otherwise
 be the monthly rate of basic allowance
 for subsistence for enlisted members
 under section 402(b)(1) of title 37,
 United States Code; and
 (ii) the amount equal to the
 monthly equivalent of the value of a
 daily ration, as determined by the
 Under Secretary of Defense
 (Comptroller) as of October 1 of the
 preceding year.
 (g) Effective Date.--This section and the amendments made
by this section shall take effect on January 1, 1998.

SEC. 603. CONSOLIDATION OF BASIC ALLOWANCE FOR QUARTERS, VARIABLE
 HOUSING ALLOWANCE, AND OVERSEAS HOUSING ALLOWANCES.

 (a) Consolidation of Allowances.--Section 403 of title 37,
United States Code, is amended to read as follows:

``Sec. 403. Basic allowance for housing

 ``(a) General Entitlement.--(1) Except as otherwise
provided by law, a member of a uniformed service who is
entitled to basic pay is entitled to a basic allowance for
housing at the monthly rates prescribed under this section or
another provision of law with regard to the applicable
component of the basic allowance for housing. The amount of the
basic allowance for housing for a member will vary according to
the pay grade in which the member is assigned or distributed
for basic pay purposes, the dependency status of the member,
and the geographic location of the member. The basic allowance
for housing may be paid in advance.
 ``(2) A member of a uniformed service with dependents is
not entitled to a basic allowance for housing as a member with
dependents unless the member makes a certification to the
Secretary concerned indicating the status of each dependent of
the member. The certification shall be made in accordance with
regulations prescribed by the Secretary of Defense.
 ``(b) Basic Allowance for Housing Inside the United
States.--(1) The Secretary of Defense shall determine the costs
of adequate housing in a military housing area in the United
States for all members of the uniformed services entitled to a
basic allowance for housing in that area. The Secretary shall
base the determination upon the costs of adequate housing for
civilians with comparable income levels in the same area.
 ``(2) Subject to paragraph (3), the monthly amount of a
basic allowance for housing for an area of the United States
for a member of a uniformed service is equal to the difference
between--
 ``(A) the monthly cost of adequate housing in that
 area, as determined by the Secretary of Defense, for
 members of the uniformed services serving in the same
 pay grade and with the same dependency status as the
 member; and
 ``(B) 15 percent of the national average monthly
 cost of adequate housing in the United States, as
 determined by the Secretary, for members of the
 uniformed services serving in the same pay grade and
 with the same dependency status as the member.
 ``(3) The rates of basic allowance for housing shall be
reduced as necessary to comply with this paragraph. The total
amount that may be paid for a fiscal year for the basic
allowance for housing under this subsection is the product of--
 ``(A) the total amount authorized to be paid for
 such allowance for the preceding fiscal year (as
 adjusted under paragraph (5)); and
 ``(B) a fraction--
 ``(i) the numerator of which is the index
 of the national average monthly cost of housing
 for June of the preceding fiscal year; and
 ``(ii) the denominator of which is the
 index of the national average monthly cost of
 housing for June of the fiscal year before the
 preceding fiscal year.
 ``(4) An adjustment in the rates of the basic allowance for
housing under this subsection as a result of the Secretary's
redetermination of housing costs in an area shall take effect
on the same date as the effective date of the next increase in
basic pay under section 1009 of this title or other provision
of law.
 ``(5) In making a determination under paragraph (3) for a
fiscal year, the amount authorized to be paid for the preceding
fiscal year for the basic allowance for housing shall be
adjusted to reflect changes during the year for which the
determination is made in the number, grade distribution,
geographic distribution in the United States, and dependency
status of members of the uniformed services entitled to the
allowance from the number of such members during the preceding
fiscal year.
 ``(6) So long as a member of a uniformed service retains
uninterrupted eligibility to receive a basic allowance for
housing within an area of the United States, the monthly amount
of the allowance for the member may not be reduced as a result
of changes in housing costs in the area, changes in the
national average monthly cost of housing, or the promotion of
the member.
 ``(7) In the case of a member without dependents who is
assigned to duty inside the United States, the location or the
circumstances of which make it necessary that the member be
reassigned under the conditions of low cost or no cost
permanent change of station or permanent change of assignment,
the member may be treated as if the member were not reassigned
if the Secretary concerned determines that it would be
inequitable to base the member's entitlement to, and amount of,
a basic allowance for housing on the cost of housing in the
area to which the member is reassigned.
 ``(c) Basic Allowance for Housing Outside the United
States.--(1) The Secretary of Defense may prescribe an overseas
basic allowance for housing for a member of a uniformed service
who is on duty outside of the United States. The Secretary
shall establish the basic allowance for housingunder this
subsection on the basis of housing costs in the overseas area in which
the member is assigned.
 ``(2) So long as a member of a uniformed service retains
uninterrupted eligibility to receive a basic allowance for
housing in an overseas area and the actual monthly cost of
housing for the member is not reduced, the monthly amount of
the allowance in an area outside the United States may not be
reduced as a result of changes in housing costs in the area or
the promotion of the member. The monthly amount of the
allowance may be adjusted to reflect changes in currency rates.
 ``(d) Basic Allowance for Housing When Dependents Are
Unable To Accompany Member.--(1) A member of a uniformed
service with dependents who is on permanent duty at a location
described in paragraph (2) is entitled to a family separation
basic allowance for housing under this subsection at a monthly
rate equal to the rate of the basic allowance for housing
established under subsection (b) or the overseas basic
allowance for housing established under subsection (c),
whichever applies to that location, for members in the same
grade at that location without dependents.
 ``(2) A permanent duty location referred to in paragraph
(1) is a location--
 ``(A) to which the movement of the member's
 dependents is not authorized at the expense of the
 United States under section 406 of this title, and the
 member's dependents do not reside at or near the
 location; and
 ``(B) at which quarters of the United States are
 not available for assignment to the member.
 ``(3) In the case of a member with dependents who is
assigned to duty at a location or under circumstances that, as
determined by the Secretary concerned, require the member's
dependents to reside at a different location, the member shall
receive a basic allowance for housing, as provided in
subsection (a) or (b), as if the member were assigned to duty
in the area in which the dependents reside, regardless of
whether the member resides in quarters of the United States or
is also entitled to a family separation basic allowance for
housing by reason of paragraph (1).
 ``(4) The family separation basic allowance for housing
under this subsection shall be in addition to any other
allowance or per diem that the member is otherwise entitled to
receive under this title. A member may receive a basic
allowance for housing under both paragraphs (1) and (3).
 ``(e) Effect of Assignment to Quarters.--(1) Except as
otherwise provided by law, a member of a uniformed service who
is assigned to quarters of the United States or a housing
facility under the jurisdiction of a uniformed service
appropriate to the grade, rank, or rating of the member and
adequate for the member and dependents of the member, if with
dependents, is not entitled to a basic allowance for housing.
 ``(2) A member without dependents who is in a pay grade
above pay grade E-6 and who is assigned to quarters in the
United States or a housing facility under the jurisdiction of a
uniformed service, appropriate to the grade or rank of the
member and adequate for the member, may elect not to occupy
those quarters and instead to receive the basic allowance for
housing prescribed for the member's pay grade by this section.
 ``(3) A member without dependents who is in pay grade E-6
and who is assigned to quarters of the United States that do
not meet the minimum adequacy standards established by the
Secretary of Defense for members in such pay grade, or to a
housing facility under the jurisdiction of a uniformed service
that does not meet such standards, may elect not to occupy such
quarters or facility and instead to receive the basic allowance
for housing prescribed for the member's pay grade under this
section.
 ``(4) The Secretary concerned may deny the right to make an
election under paragraph (2) or (3) if the Secretary determines
that the exercise of such an election would adversely affect a
training mission, military discipline, or military readiness.
 ``(5) A member with dependents who is assigned to quarters
of the United States or a housing facility under the
jurisdiction of a uniformed service may be paid the basic
allowance for housing if, because of orders of competent
authority, the dependents are prevented from occupying those
quarters.
 ``(f) Ineligibility During Initial Field Duty or Sea
Duty.--(1) A member of a uniformed service without dependents
who makes a permanent change of station for assignment to a
unit conducting field operations is not entitled to a basic
allowance for housing while on that initial field duty unless
the commanding officer of the member certifies that the member
was necessarily required to procure quarters at the member's
expense.
 ``(2)(A) Except as provided in subparagraphs (B) and (C), a
member of a uniformed service without dependents who is in a
pay grade below pay grade E-6 is not entitled to a basic
allowance for housing while the member is on sea duty.
 ``(B) Under regulations prescribed by the Secretary
concerned, the Secretary may authorize the payment of a basic
allowance for housing to a member of a uniformed service
without dependents who is serving in pay grade E-5 and is
assigned to sea duty. In prescribing regulations under this
subparagraph, the Secretary concerned shall consider the
availability of quarters for members serving in pay grade E-5.
 ``(C) Notwithstanding section 421 of this title, two
members of the uniformed services in a pay grade below pay
grade E-6 who are married to each other, have no other
dependents, and are simultaneously assigned to sea duty are
jointly entitled to one basic allowance for housing during the
period of such simultaneous sea duty. The amount of the
allowance shall be based on the without dependents rate for the
pay grade of the senior member of the couple. However, this
subparagraph shall not apply to a couple if one or both of the
members are entitled to a basic allowance for housing under
subparagraph (B).
 ``(3) The Secretary of Defense, and the Secretary of
Transportation with respect to the Coast Guard when it is not
operating as a service in the Department of the Navy, shall
prescribe regulation defining the terms `field duty' and `sea
duty' for purposes of this section.
 ``(g) Reserve Members.--(1) A member of a reserve component
without dependents who is called or ordered to active duty in
support of a contingency operation, or a retired member without
dependents who is ordered to active duty under section 688(a)
of title 10 in support of a contingency operation, may not be
denied a basic allowance for housing if, because of that call
or order, the member is unable to continue to occupy a
residence--
 ``(A) which is maintained as the primary residence
 of the member at the time of the call or order; and
 ``(B) which is owned by the member or for which the
 member is responsible for rental payments.
 ``(2) Paragraph (1) shall not apply if the member is
authorized transportation of household goods under section 406
of this title as part of the call or order to active duty
described in such paragraph.
 ``(3) The Secretary of Defense shall establish a rate of
basic allowance for housing to be paid to a member of a reserve
component while the member serves on active duty under a call
or order to active duty specifying a period of less than 140
days, unless the call or order to active duty is in support of
a contingency operation.
 ``(h) Rental of Public Quarters.--Notwithstanding any other
law (including those restricting the occupancy of housing
facilities under the jurisdiction of a department or agency of
the United States by members, and their dependents, of the
armed forces above specified grades, or by members, and their
dependents, of the National Oceanic and Atmospheric
Administration and the Public Health Service), a member of a
uniformed service, and the dependents of the member, may be
accepted as tenants in, and may occupy on a rental basis, any
of those housing facilities, other than public quarters
constructed or designated for assignment to an occupancy
without charge by such a member and the dependents of the
member, if any. Such a member may not, because of occupancy
under this subsection, be deprived of any money allowance to
which the member is otherwise entitled for the rental of
quarters.
 ``(i) Temporary Housing Allowance While in Travel or Leave
Status.--A member of a uniformed service who is in a pay grade
E-4 (4 or more years of service) or above is entitled to a
temporary basic allowance for housing (at a rate determined by
the Secretary of Defense) while the member is in a travel or
leave status between permanent duty stations, including time
granted as delay en route or proceed time, when the member is
not assigned to quarters of the United States.
 ``(j) Aviation Cadets.--The eligibility of an aviation
cadet of the Navy, Air Force, Marine Corps, or Coast Guard for
a basic allowance for housing shall be determined as if the
aviation cadet were a member of the uniformed services in pay
grade E-4.
 ``(k) Administration.--(1) The Secretary of Defense shall
prescribe regulations for the administration of this section.
 ``(2) The Secretary concerned may make such determinations
as may be necessary to administer this section, including
determinations of dependency and relationship. When warranted
by the circumstances, the Secretary concerned may reconsider
and change or modify any such determination. The authority of
the Secretary concerned under this subsection may be delegated.
Any determination made under this section with regard to a
member of the uniformed services is final and is not subject to
review by any accounting officer of the United States or a
court, unless there is fraud or gross negligence.
 ``(3) Parking facilities (including utility connections)
provided members of the uniformed services for house trailers
and mobile homes not owned by the Government shall not be
considered to be quarters for the purposes of this section or
any other provision of law. Any fees established by the
Government for the use of such a facility shall be established
in an amount sufficient to cover the cost of maintenance,
services, and utilities and to amortize the cost of
construction of the facility over the 25-year period beginning
with the completion of such construction.
 ``(l) Temporary Continuation of Allowance for Dependents of
Members Dying on Active Duty.--(1) The Secretary of Defense, or
the Secretary of Transportation in the case of the Coast Guard
when not operating as a service in the Navy, may allow the
dependents of a member of the armed forces who dies on active
duty and whose dependents are occupying family housing provided
by the Department of Defense, or by the Department of
Transportation in the case of the Coast Guard, other than on a
rental basis on the date of the member's death to continue to
occupy such housing without charge for a period of 180 days.
 ``(2) The Secretary concerned may pay a basic allowance for
housing (at the rate that is payable for members of the same
grade and dependency status as the deceased member for the area
where the dependents are residing) to the dependents of a
member of the uniformed services who dies while on active duty
and whose dependents--
 ``(A) are not occupying a housing facility under
 the jurisdiction of a uniformed service on the date of
 the member's death;
 ``(B) are occupying such housing on a rental basis
 on such date; or
 ``(C) vacate such housing sooner than 180 days
 after the date of the member's death.
 ``(3) The payment of the allowance under paragraph (2)
shall terminate 180 days after the date of the member's death.
 ``(m) Members Paying Child Support.--(1) A member of a
uniformed service with dependents may not be paid a basic
allowance for housing at the with dependents rate solely by
reason of the payment of child support by the member if--
 ``(A) the member is assigned to a housing facility
 under the jurisdiction of a uniformed service; or
 ``(B) the member is assigned to sea duty, and
 elects not to occupy assigned quarters for
 unaccompanied personnel, unless the member is in a pay
 grade above E-4.
 ``(2) A member of a uniformed service assigned to quarters
of the United States or a housing facility under the
jurisdiction of a uniformed service who is not otherwise
authorized a basic allowance for housing and who pays child
support is entitled to the basic allowance for housing
differential, except for months for which the amount payable
for the child support is less than the rate of the
differential. Payment of a basic allowance for housing
differential does not affect any entitlement of the member to a
partial allowance for quarters under subsection (n).
 ``(3) The basic allowance for housing differential to which
a member is entitled under paragraph (2) is the amount equal to
the difference between--
 ``(A) the rate of the basic allowance for quarters
 (with dependents) for the member's pay grade, as such
 rate was in effect on December 31, 1997, under this
 section (as in effect on that date); and
 ``(B) the rate of the basic allowance for quarters
 (without dependents) for the member's pay grade, as
 such rate was in effect on December 31, 1997, under
 this section (as in effect on that date).
 ``(4) Whenever the rates of basic pay for members of the
uniformed services are increased, the monthly amount of the
basic allowance for housing differential computed under
paragraph (3) shall be increased by the average percentage
increase in the rates of basic pay. The effective date of the
increase shall be the same date as the effective date of the
increase in the rates of basic pay.
 ``(5) In the case of two members, who have one or more
common dependents (and no others), who are not married to each
other, and one of whom pays child support to the other, the
amount of the basic allowance for housing paid to each member
under this section shall be reduced in accordance with
regulations prescribed by the Secretary of Defense. The total
amount of the basic allowances for housing paid to the two
members may not exceed the sum of the amounts of the allowance
to which each member would be otherwise entitled under this
section.
 ``(n) Partial Allowance for Members Without Dependents.--
(1) A member of a uniformed service without dependents who is
not entitled to receive a basic allowance for housing under
subsection (b), (c), or (d) is entitled to a partial basic
allowance for housing at a rate determined by the Secretary of
Defense under paragraph (2).
 ``(2) The rate of the partial basic allowance for housing
is the partial rate of the basic allowance for quarters for the
member's pay grade as such partial rate was in effect on
December 31, 1997, under section 1009(c)(2) of this title (as
such section was in effect on such date).''.
 (b) Transition to Basic Allowance for Housing.--The
Secretary of Defense shall develop and implement a plan to
incrementally manage the rate of growth of the various
components of the basic allowance for housing authorized by
section 403 of title 37, United States Code (as amended by
subsection (a)), during a transition period of not more than
six years. During the transition period, the Secretary may
continue to use the authorities provided under sections 403,
403a, 405(b), and 427(a) of title 37, United States Code (as in
effect on the day before the date of the enactment of this
Act), but subject to such modifications as the Secretary
considers necessary, to provide allowances for members of the
uniformed services.
 (c) Repeal of Superseded Authorities.--(1) Section 403a of
title 37, United States Code, is repealed.
 (2) Section 405 of such title is amended--
 (A) by striking out subsection (b); and
 (B) by redesignating subsections (c) and (d) as
 subsections (b) and (c), respectively.
 (3) Section 427 of such title is amended--
 (A) by striking out subsection (a); and
 (B) in subsection (b)--
 (i) by striking out ``(b) Additional
 Separation Allowance.--'' and inserting in lieu
 thereof ``(a) Entitlement to Allowance.--'';
 (ii) in paragraph (1)--
 (I) by striking out ``, including
 subsection (a),'' in the matter
 preceding the subparagraphs;
 (II) by inserting ``or'' at the end
 of subparagraph (B);
 (III) by striking out ``; or'' at
 the end of subparagraph (C) and
 inserting in lieu thereof a period; and
 (IV) by striking out subparagraph
 (D);
 (iii) in paragraph (3)--
 (I) by striking out ``(3) An
 allowance'' and inserting in lieu
 thereof ``(b) Entitlement When No
 Residence or Household Maintained for
 Dependents.--An allowance''; and
 (II) by striking out ``this
 subsection'' and inserting in lieu
 thereof ``subsection (a)'';
 (iv) in paragraph (4)--
 (I) by striking out ``(4) A
 member'' and inserting in lieu thereof
 ``(c) Effect of Election To Serve
 Unaccompanied Tour of Duty.--A
 member''; and
 (II) by striking out ``paragraph
 (1)(A) of this subsection'' and
 inserting in lieu thereof ``subsection
 (a)(1)(A)''; and
 (v) by striking out paragraph (5) and
 inserting in lieu thereof the following new
 subsection:
 ``(d) Entitlement While Spouse Entitled to Basic Pay.--A
member married to another member of the uniformed services
becomes entitled, regardless of any other dependency status, to
an allowance under subsection (a) by virtue of duty prescribed
in subparagraph (A), (B), or (C) of paragraph (1) of such
subsection if the members were residing together immediately
before being separated by reasons of execution of military
orders. Section 421 of this title does not apply to bar the
entitlement to an allowance under this section. However, not
more than one monthly allowance may be paid with respect to a
married couple under this section.''.
 (4) The table of sections at the beginning of chapter 7 of
title 37, United States Code, is amended by striking out the
items relating to sections 403 and 403a and inserting in lieu
thereof the following new item:

``403. Basic allowance for housing.''.

 (d) Conforming Amendments.--(1) Title 37, United States
Code, is amended--
 (A) in section 101(25), by striking out ``basic
 allowance for quarters (including any variable housing
 allowance or station housing allowance)'' and inserting
 in lieu thereof ``basic allowance for housing'';
 (B) in section 406(c), by striking out ``sections
 404 and 405'' and inserting in lieu thereof ``sections
 403(c), 404, and 405'';
 (C) in section 420(c), by striking out ``quarters''
 and inserting in lieu thereof ``housing'';
 (D) in section 551(3)(D), by striking out ``basic
 allowance for quarters'' and inserting in lieu thereof
 ``basic allowance for housing''; and
 (E) in section 1014(a), by striking out ``basic
 allowance for quarters'' and inserting in lieu thereof
 ``basic allowance for housing''.
 (2) Title 10, United States Code, is amended--
 (A) in section 708(c)(1), by striking out ``basic
 allowance for quarters or basic allowance for
 subsistence'' and inserting in lieu thereof ``basic
 allowance for housing under section 403 of title 37,
 basic allowance for subsistence under section 402 of
 such title,'';
 (B) in section 2830(a)--
 (i) in paragraph (1), by striking out
 ``basic allowance for quarters'' and inserting
 in lieu thereof ``basic allowance for housing
 under section 403 of title 37''; and
 (ii) in paragraph (2), by striking out
 ``basic allowance for quarters'' and inserting
 in lieu thereof ``basic allowance for
 housing'';
 (C) in section 2882(b)--
 (i) in paragraph (1), by striking out
 ``section 403(b)'' and inserting in lieu
 thereof ``section 403''; and
 (ii) in paragraph (2), by striking out
 ``basic allowance for quarters'' and all that
 follows through the end of the paragraph and
 inserting in lieu thereof ``basic allowance for
 housing under section 403 of title 37.'';
 (D) in section 7572(b)--
 (i) in paragraph (1), by striking out ``the
 total of--'' and all that follows through the
 end of the paragraph and inserting in lieu
 thereof ``the basic allowance for housing
 payable under section 403 of title 37 to a
 member of the same pay grade without dependents
 for the period during which the member is
 deprived of quarters on board ship.''; and
 (ii) in paragraph (2), by striking out
 ``basic allowance for quarters'' and inserting
 in lieu thereof ``basic allowance for
 housing''; and
 (E) in section 7573, by striking out ``basic
 allowance for quarters'' and inserting in lieu thereof
 ``basic allowance for housing under section 403 of
 title 37''.
 (3) Section 5561(6)(D) of title 5, United States Code, is
amended by striking out ``basic allowance for quarters'' and
inserting in lieu thereof ``basic allowance for housing''.
 (4) Section 107(b) of title 32, United States Code, is
amended by striking out ``and quarters'' and inserting in lieu
thereof ``and housing''.
 (5) Section 4(k)(10) of the Military Selective Service Act
(50 U.S.C. App. 454(k)(10)) is amended by striking out ``as
such terms'' and all that follows through ``extended or
amended'' and inserting in lieu thereof ``shall be entitled to
receive a dependency allowance equal to the basic allowance for
housing provided for persons in pay grade E-1 under section 403
of title 37, United States Code,''.
 (e) Effective Date.--This section and the amendments made
by this section shall take effect on January 1, 1998.

SEC. 604. REVISION OF AUTHORITY TO ADJUST COMPENSATION NECESSITATED BY
 REFORM OF SUBSISTENCE AND HOUSING ALLOWANCES.

 (a) Removal of References to BAS and BAQ.--(1) Section 1009
of title 37, United States Code, is amended to read as follows:

``Sec. 1009. Adjustments of monthly basic pay

 ``(a) Adjustment Required.--Whenever the General Schedule
of compensation for Federal classified employees, as contained
in section 5332 of title 5, is adjusted upward as provided in
section 5303 of such title, the President shall immediately
make an upward adjustment in the monthly basic pay authorized
members of the uniformed services by section 203(a) of this
title.
 ``(b) Effectiveness of Adjustment.--An adjustment under
this section shall--
 ``(1) have the force and effect of law; and
 ``(2) carry the same effective date as that
 applying to the compensation adjustments provided
 General Schedule employees.
 ``(c) Equal Percentage Increase for All Members.--Subject
to subsection (d), an adjustment under this section shall
provide all eligible members with an increase in the monthly
basic pay which is of the same percentage as the overall
average percentage increase in the General Schedule rates of
both basic pay and locality pay for civilian employees.
 ``(d) Allocation of Increase Among Pay Grades and Years-of-
Service.--(1) Subject to paragraph (2), whenever the President
determines such action to be in the best interest of the
Government, he may allocate the overall percentage increase in
the monthly basic pay under subsection (a) among such pay grade
and years-of-service categories as he considers appropriate.
 ``(2) In making any allocation of an overall percentage
increase in basic pay under paragraph (1)--
 ``(A) the amount of the increase in basic pay for
 any given pay grade and years-of-service category after
 any allocation made under this subsection may not be
 less than 75 percent of the amount of the increase in
 the monthly basic pay that would otherwise have been
 effective with respect to such pay grade and years-of-
 service category under subsection (c); and
 ``(B) the percentage increase in the monthly basic
 pay in the case of any member of the uniformed services
 with four years or less service may not exceed the
 overall percentage increase in the General Schedule
 rates of basic pay for civilian employees.
 ``(e) Notice of Allocations.--Whenever the President plans
to exercise the authority of the President under subsection (d)
with respect to any anticipated increase in the monthly basic
pay of members of the uniformed services, the President shall
advise Congress, at the earliest practicable time prior to the
effective date of such increase, regarding the proposed
allocation of such increase.
 ``(f) Quadrennial Assessment of Allocations.--The
allocations of increases made under this section shall be
assessed in conjunction with the quadrennial review of military
compensation required by section 1008(b) of this title.''.
 (2) The item relating to such section in the table of
sections at the beginning of chapter 19 of such title is
amended to read as follows:

``1009. Adjustments of monthly basic pay.''.

 (b) Effective Date.--The amendments made by subsection (a)
shall take effect on January 1, 1998.

SEC. 605. PROTECTION OF TOTAL COMPENSATION OF MEMBERS WHILE PERFORMING
 CERTAIN DUTY.

 Section 1009 of title 37, United States Code, as amended by
section 604, is further amended--
 (1) by redesignating subsection (f) as subsection
 (g); and
 (2) by inserting after subsection (e) the following
 new subsection:
 ``(f) Protection of Member's Total Compensation While
Performing Certain Duty.--(1) The total daily equivalent amount
of the elements of compensation described in paragraph (3),
together with other pay and allowances under this title, to be
paid to a member of the uniformed services who is temporarily
assigned to duty away from the member's permanent duty station
or to duty under field conditions at the member's permanent
duty station shall not be less, for any day during the
assignment period, than the total amount, for the day
immediately preceding the date of the assignment, of the
elements of compensation and other pay and allowances of the
member.
 ``(2) Paragraph (1) shall not apply with respect to an
element of compensation or other pay or allowance of a member
during an assignment described in such paragraph to the extent
that the element of compensation or other pay or allowance is
reduced or terminated due to circumstances unrelated to the
assignment.
 ``(3) The elements of compensation referred to in this
subsection mean--
 ``(A) the monthly basic pay authorized members of
 the uniformed services by section 203(a) of this title;
 ``(B) the basic allowance for subsistence
 authorized members of the uniformed services by section
 402 of this title; and
 ``(C) the basic allowance for housing authorized
 members of the uniformed services by section 403 of
 this title.''

 Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY
 AUTHORITIES FOR RESERVE FORCES.

 (a) Special Pay for Health Professionals in Critically
Short Wartime Specialties.--Section 302g(f) of title 37, United
States Code, is amended by striking out ``September 30, 1998''
and inserting in lieu thereof ``September 30, 1999''.
 (b) Selected Reserve Reenlistment Bonus.--Section 308b(f)
of title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof
``September 30, 1999''.
 (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of
title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof
``September 30, 1999''.
 (d) Special Pay for Enlisted Members Assigned to Certain
High Priority Units.--Section 308d(c) of title 37, United
States Code, is amended by striking out ``September 30, 1998''
and inserting in lieu thereof ``September 30, 1999''.
 (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of
title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof
``September 30, 1999''.
 (f) Ready Reserve Enlistment and Reenlistment Bonus.--
Section 308h(g) of title 37, United States Code, is amended by
striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.
 (g) Prior Service Enlistment Bonus.--Section 308i(f) of
title 37, United States Code, as redesignated by section 622,
is amended by striking out ``September 30, 1998'' and inserting
in lieu thereof ``September 30, 1999''.
 (h) Repayment of Education Loans for Certain Health
Professionals Who Serve in the Selected Reserve.--Section
16302(d) of title 10, United States Code, is amended by
striking out ``October 1, 1998'' and inserting in lieu thereof
``October 1, 1999''.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY
 AUTHORITIES FOR NURSE OFFICER CANDIDATES,
 REGISTERED NURSES, AND NURSE ANESTHETISTS.

 (a) Nurse Officer Candidate Accession Program.--Section
2130a(a)(1) of title 10, United States Code, is amended by
striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.
 (b) Accession Bonus for Registered Nurses.--Section
302d(a)(1) of title 37, United States Code, is amended by
striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.
 (c) Incentive Special Pay for Nurse Anesthetists.--Section
302e(a)(1) of title 37, United States Code, is amended by
striking out ``September 30, 1998'' and inserting in lieu
thereof ``September 30, 1999''.

SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF
 OTHER BONUSES AND SPECIAL PAYS.

 (a) Aviation Officer Retention Bonus.--Section 301b(a) of
title 37, United States Code, is amended by striking out
``September 30, 1998,'' and inserting in lieu thereof
``September 30, 1999,''.
 (b) Reenlistment Bonus for Active Members.--Section 308(g)
of title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof
``September 30, 1999''.
 (c) Enlistment Bonuses for Members With Critical Skills.--
Sections 308a(c) and 308f(c) of title 37, United States Code,
are each amended by striking out ``September 30, 1998'' and
inserting in lieu thereof ``September 30, 1999''.
 (d) Special Pay for Nuclear Qualified Officers Extending
Period of Active Service.--Section 312(e) of title 37, United
States Code, is amended by striking out ``September 30, 1998''
and inserting in lieu thereof ``September 30, 1999''.
 (e) Nuclear Career Accession Bonus.--Section 312b(c) of
title 37, United States Code, is amended by striking out
``September 30, 1998'' and inserting in lieu thereof
``September 30, 1999''.
 (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d)
of title 37, United States Code, is amended by striking out
``October 1, 1998'' and inserting in lieu thereof ``October 1,
1999''.

SEC. 614. INCREASE IN MINIMUM MONTHLY RATE OF HAZARDOUS DUTY INCENTIVE
 PAY FOR CERTAIN MEMBERS.

 (a) Aerial Flight Crewmembers.--The table in subsection (b)
of section 301 of title 37, United States Code, is amended--
 (1) by striking out ``110'' each place it appears
 and inserting in lieu thereof ``150''; and
 (2) by striking out ``125'' each place it appears
 and inserting in lieu thereof ``150''.
 (b) Air Weapons Controller Aircrew.--The table in
subsection (c)(2)(A) of such section is amended--
 (1) by striking out ``100'' in the first column of
 amounts and inserting in lieu thereof ``150'';
 (2) by striking out ``110'' in the last column of
 amounts and inserting in lieu thereof ``150''; and
 (3) by striking out ``125'' each place it appears
 and inserting in lieu thereof ``150''.
 (c) Other Members.--Subsection (c)(1) of such section is
amended--
 (1) by striking out ``$110'' and inserting in lieu
 thereof ``$150''; and
 (2) by striking out ``$165'' and inserting in lieu
 thereof ``$225''.

SEC. 615. INCREASE IN AVIATION CAREER INCENTIVE PAY.

 (a) Amounts.--The table in subsection (b)(1) of section
301a of title 37, United States Code, is amended--
 (1) by inserting at the end of phase I of the table
 the following:

 ``Over 14.....................................................840'';

 and
 (2) by striking out phase II of the table and
 inserting in lieu thereof the following:

 ``Phase II

 ``Monthly
``Years of service as an officer: rate
 ``Over 22..................................................... $585
 ``Over 23..................................................... 495
 ``Over 24..................................................... 385
 ``Over 25.....................................................250''.

 (b) Conforming Amendments.--Such subsection is further
amended in the matter after the table by striking out ``18
years'' both places it appears and inserting in lieu thereof
``22 years''.
 (c) Effective Date and Applicability.--The amendments made
by subsection (a) shall take effect on January 1, 1999, and
shall apply with respect to months beginning on or after that
date.

SEC. 616. MODIFICATION OF AVIATION OFFICER RETENTION BONUS.

 (a) Increase in Bonus Amounts.--Subsection (c) of section
301b of title 37, United States Code, is amended--
 (1) in paragraph (1), by striking out ``$12,000''
 and inserting in lieu thereof ``$25,000''; and
 (2) in paragraph (2), by striking out ``$6,000''
 and inserting in lieu thereof ``$12,000''.
 (b) Duration of Agreement.--Paragraph (2) of such
subsection is further amended by striking out ``one or two
years'' and inserting in lieu thereof ``one, two, or three
years''.
 (c) Content of Annual Report.--Subsection (i)(1) of such
section is amended--
 (1) by inserting ``and'' at the end of subparagraph
 (A);
 (2) by striking out ``; and'' at the end of
 subparagraph (B) and inserting in lieu thereof a
 period; and
 (3) by striking out subparagraph (C).
 (d) Definition of Aviation Specialty.--Subsection (j)(2) of
such section is amended by inserting ``specific'' before
``community'' both places it appears.
 (e) Effective Dates and Applicability.--The amendments made
by this section shall take effect as of October 1, 1996, and
shall apply with respect to agreements accepted under section
301b of title 37, United States Code, on or after that date.

SEC. 617. AVAILABILITY OF MULTIYEAR RETENTION BONUS FOR DENTAL
 OFFICERS.

 (a) Availability of Retention Bonus.--Chapter 5 of title
37, United States Code, is amended by inserting after section
301d the following new section:

``Sec. 301e. Multiyear retention bonus: dental officers of the armed
 forces

 ``(a) Bonus Authorized.--(1) A dental officer described in
subsection (b) who executes a written agreement to remain on
active duty for two, three, or four years after completion of
any other active-duty service commitment may, upon acceptance
of the written agreement by the Secretary of the military
department concerned, be paid a retention bonus as provided in
this section.
 ``(2) The amount of a retention bonus under paragraph (1)
may not exceed $14,000 for each year covered by a four-year
agreement. The maximum yearly retention bonus for two-year and
three-year agreements shall be reduced to reflect the shorter
service commitment.
 ``(b) Officers Automatically Eligible.--Subsection (a)
applies to an officer of the armed forces who--
 ``(1) is an officer of the Dental Corps of the Army
 or the Navy or an officer of the Air Force designated
 as a dental officer;
 ``(2) has a dental specialty in oral and
 maxillofacial surgery;
 ``(3) is in a pay grade below pay grade 0-7;
 ``(4) has at least eight years of creditable
 service (computed as described in section 302b(g) of
 this title) or has completed any active-duty service
 commitment incurred for dental education and training;
 and
 ``(5) has completed initial residency training (or
 will complete such training before September 30 of the
 fiscal year in which the officer enters into an
 agreement under subsection (a)).
 ``(c) Extension of Bonus to Other Dental Officers.--At the
discretion of the Secretary of the military department
concerned, the Secretary may enter into a written agreement
described in subsection (a)(1) with a dental officer who does
not have the dental specialty specified in subsection (b)(2),
and pay a retention bonus to such an officer as provided in
this section, if the officer otherwise satisfies the
eligibility requirements specified in subsection (b). The
Secretaries shall exercise the authority provided in this
section in a manner consistent with regulations prescribed by
the Secretary of Defense.
 ``(d) Refunds.--(1) Refunds shall be required, on a pro
rata basis, of sums paid under this section if the officer who
has received the payment fails to complete the total period of
active duty specified in the agreement, as conditions and
circumstances warrant.
 ``(2) An obligation to reimburse the United States imposed
under paragraph (1) is for all purposes a debt owed to the
United States.
 ``(3) A discharge in bankruptcy under title 11, United
States Code, that is entered less than five years after the
termination of an agreement under this section does not
discharge the member signing such agreement from a debt arising
under such agreement or under paragraph (1). This paragraph
applies to any case commenced under title 11 after the date of
the enactment of the National Defense Authorization Act for
Fiscal Year 1998.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 301d the following new item:

``301e. Multiyear retention bonus: dental officers of the armed
 forces.''.

SEC. 618. INCREASE IN VARIABLE AND ADDITIONAL SPECIAL PAYS FOR CERTAIN
 DENTAL OFFICERS.

 (a) Variable Special Pay for Junior Officers.--Paragraph
(2) of section 302b(a) of title 37, United States Code, is
amended by striking out subparagraphs (C), (D), (E), and (F)
and inserting in lieu thereof the following new subparagraphs:
 ``(C) $7,000 per year, if the officer has at least
 six but less than eight years of creditable service.
 ``(D) $12,000 per year, if the officer has at least
 eight but less than 12 years of creditable service.
 ``(E) $10,000 per year, if the officer has at least
 12 but less than 14 years of creditable service.
 ``(F) $9,000 per year, if the officer has at least
 14 but less than 18 years of creditable service.
 ``(G) $8,000 per year, if the officer has 18 or
 more years of creditable service.''.
 (b) Variable Special Pay for Senior Officers.--Paragraph
(3) of such section is amended by striking out ``$1,000'' and
inserting in lieu thereof ``$7,000''.
 (c) Additional Special Pay.--Paragraph (4) of such section
is amended by striking out subparagraphs (B), (C), and (D) and
inserting in lieu thereof the following new subparagraphs:
 ``(B) $6,000 per year, if the officer has at least
 three but less than 10 years of creditable service.
 ``(C) $15,000 per year, if the officer has 10 or
 more years of creditable service.''.

SEC. 619. AVAILABILITY OF SPECIAL PAY FOR DUTY AT DESIGNATED HARDSHIP
 DUTY LOCATIONS.

 (a) Special Pay Authorized.--Subsection (a) of section 305
of title 37, United States Code, is amended to read as follows:
 ``(a) Special Pay Authorized.--A member of a uniformed
service who is entitled to basic pay may be paid special pay
under this section at a monthly rate not to exceed $300 while
the member is on duty at a location in the United States or
outside the United States designated by the Secretary of
Defense as a hardship duty location.''.
 (b) Cross References and Regulations.--Such section is
further amended--
 (1) in subsection (b)--
 (A) by inserting ``Exception for Certain
 Members Serving in Certain Locations.--'' after
 ``(b)''; and
 (B) by striking out ``as foreign duty pay''
 and inserting in lieu thereof ``as hardship
 duty location pay'';
 (2) in subsection (c)--
 (A) by inserting ``Exception for Members
 Receiving Career Sea Pay.--'' after ``(c)'';
 and
 (B) by striking out ``special pay under
 this section'' and inserting in lieu thereof
 ``hardship duty location pay under subsection
 (a)''; and
 (3) by adding at the end the following new
 subsection:
 ``(d) Regulations.--The Secretary of Defense shall
prescribe regulations for the provision of hardship duty
location pay under subsection (a), including the specific
monthly rates at which the special pay will be available.''.
 (c) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 305. Special pay: hardship duty location pay''.

 (2) The table of sections at the beginning of chapter 5 of
title 37, United States Code, is amended by striking out the
item relating to section 305 and inserting in lieu thereof the
following new item:

``305. Special pay: hardship duty location pay.''.

 (d) Conforming Amendment.--Section 907(d) of title 37,
United States Code, is amended by striking out ``duty at
certain places'' and inserting in lieu thereof ``duty at a
hardship duty location''.
 (e) Transition.--Until such time as the Secretary of
Defense prescribes regulations regarding the provision of
hardship duty location pay under section 305 of title 37,
United States Code, as amended by this section, the Secretary
may continue to use the authority provided by such section 305,
as in effect on the day before the date of the enactment of
this Act, to provide special pay to enlisted members of the
uniformed services on duty at certain places.

SEC. 620. DEFINITION OF SEA DUTY FOR PURPOSES OF CAREER SEA PAY.

 Section 305a(d) of title 37, United States Code, is
amended--
 (1) in paragraph (1)(A), by striking out ``, ship-
 based staff, or ship-based aviation unit'';
 (2) in paragraph (1)(B), by striking out ``or ship-
 based staff'' ;
 (3) by redesignating paragraphs (2) and (3) as
 paragraphs (3) and (4), respectively; and
 (4) by inserting after paragraph (1) the following
 new paragraph:
 ``(2) The Secretary concerned may designate duty performed
by a member while serving on a ship the primary mission of
which is accomplished either while under way or in port as `sea
duty' for purposes of this section, even though the duty is
performed while the member is permanently or temporarily
assigned to a ship-based staff or other unit not covered by
paragraph (1).''.

SEC. 621. MODIFICATION OF SELECTED RESERVE REENLISTMENT BONUS.

 (a) Eligible Members.--Subsection (a)(1) of section 308b of
title 37, United States Code, is amended by striking out ``ten
years'' and inserting in lieu thereof ``14 years''.
 (b) Bonus Amounts; Payment.--Subsection (b) of such section
is amended to read as follows:
 ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus
under this section may not exceed--
 ``(A) $5,000, in the case of a member who reenlists
 or extends an enlistment for a period of six years;
 ``(B) $2,500, in the case of a member who, having
 never received a bonus under this section, reenlists or
 extends an enlistment for a period of three years; and
 ``(C) $2,000, in the case of a member who, having
 received a bonus under this section for a previous
 three-year reenlistment or extension of an enlistment,
 reenlists or extends the enlistment for an additional
 period of three years.
 ``(2) Any bonus payable under this section shall be
disbursed in one initial payment of an amount not to exceed
one-half of the total amount of the bonus and subsequent
periodic partial payments of the balance of the bonus. The
Secretary concerned shall prescribe the amount of each partial
payment and the schedule for making the partial payments.''.
 (c) Special Eligibility Requirements; Number of Individual
Bonuses.--Subsection (c) of such section is amended to read as
follows:
 ``(c) Condition on Eligibility; Limitation on Number of
Bonuses.--(1) To be eligible for a second bonus under this
section in the amount specified in subsection (b)(1)(C), a
member must--
 ``(A) enter into the subsequent reenlistment or
 extension of an enlistment for a period of three years
 not later than the date on which the enlistment or
 extension for which the first bonus was paid would
 expire; and
 ``(B) still satisfy the designated skill or unit
 requirements required under subsection (a)(2).
 ``(2) A member may not be paid more than one six-year bonus
or two three-year bonuses under this section.''.
 (d) Effect of Failure To Serve Satisfactorily.--Subsection
(d) of such section is amended to read as follows:
 ``(d) Repayment of Bonus.--A member who receives a bonus
under this section and who fails, during the period for which
the bonus was paid, to serve satisfactorily in the element of
the Selected Reserve of the Ready Reserve with respect to which
the bonus was paid shall refund to the United States an amount
that bears the same ratio to the amount of the bonus paid to
the member as the period that the member failed to serve
satisfactorily bears to the total period for which the bonus
was paid.''.
 (e) Clerical Amendments.--Such section is further amended--
 (1) in subsection (a), by inserting ``Authority and
 Eligibility Requirements.--'' after ``(a)'';
 (2) in subsection (e), by inserting
 ``Regulations.--'' after ``(e)''; and
 (3) in subsection (f), by inserting ``Termination
 of Authority.--'' after ``(f)''.

SEC. 622. MODIFICATION OF SELECTED RESERVE ENLISTMENT BONUS FOR FORMER
 ENLISTED MEMBERS.

 (a) Eligible Persons.--Subsection (a)(2) of section 308i of
title 37, United States Code, is amended--
 (1) in subparagraph (A), by striking out ``10
 years'' and inserting in lieu thereof ``14 years'';
 (2) in subparagraph (C), by striking out ``and'';
 (3) by redesignating subparagraph (D) as
 subparagraph (E);
 (4) in subparagraph (E) (as so redesignated), by
 inserting ``(except under this section)'' after
 ``bonus''; and
 (5) by inserting after subparagraph (C) the
 following new subparagraph:
 ``(D) is projected to occupy a position as a member
 of the Selected Reserve in a specialty in which--
 ``(i) the person successfully served while
 a member on active duty; and
 ``(ii) the person attained a level of
 qualification while a member on active duty
 commensurate with the grade and years of
 service of the member; and''.
 (b) Bonus Amounts; Payment.--Subsection (b) of such section
is amended to read as follows:
 ``(b) Bonus Amounts; Payment.--(1) The amount of a bonus
under this section may not exceed--
 ``(A) $5,000, in the case of a person who enlists
 for a period of six years;
 ``(B) $2,500, in the case of a person who, having
 never received a bonus under this section, enlists for
 a period of three years; and
 ``(C) $2,000, in the case of a person who, having
 received a bonus under this section for a previous
 three-year enlistment, reenlists or extends the
 enlistment for an additional period of three years.
 ``(2) Any bonus payable under this section shall be
disbursed in one initial payment of an amount not to exceed
one-half of the total amount of the bonus and subsequent
periodic partial payments of the balance of the bonus. The
Secretary concerned shall prescribe the amount of each partial
payment and the schedule for making the partial payments.''.
 (c) Special Eligibility Requirements; Number of Individual
Bonuses.--Subsection (c) of such section is amended to read as
follows:
 ``(c) Condition on Eligibility; Limitation on Number of
Bonuses.--(1) To be eligible for a second bonus under this
section in the amount specified in subsection (b)(1)(C), a
person must--
 ``(A) enter into a reenlistment or extension of an
 enlistment for a period of three years not later than
 the date on which the enlistment for which the first
 bonus was paid would expire; and
 ``(B) still satisfy the eligibility requirements
 under subsection (a).
 ``(2) A person may not be paid more than one six-year bonus
or two three-year bonuses under this section.
 (d) Reorganization of Section.--Such section is further
amended--
 (1) by redesignating subsections (e), (f), and (g)
 as paragraphs (2), (3), and (4), respectively, of
 subsection (d); and
 (2) by redesignating subsections (h) and (i) as
 subsections (e) and (f), respectively.
 (e) Conforming and Clerical Amendments.--Such section is
further amended--
 (1) in subsection (a), by inserting ``Authority and
 Eligibility Requirements.--'' after ``(a)'';
 (2) in subsection (d)--
 (A) by inserting ``Repayment of Bonus.--
 (1)'' after ``(d)'';
 (B) in paragraphs (2) and (4), as
 redesignated by subsection (d)(1), by striking
 out ``subsection (d)'' and inserting in lieu
 thereof ``paragraph (1)''; and
 (C) in paragraph (3), as redesignated by
 subsection (d)(1)--
 (i) by striking out ``subsection
 (h)'' and inserting in lieu thereof
 ``subsection (e)''; and
 (ii) by striking out ``subsection
 (d)'' and inserting in lieu thereof
 ``paragraph (1)'';
 (3) in subsection (e), as redesignated by
 subsection (d)(2), by inserting ``Regulations.--''
 after ``(e)''; and
 (4) in subsection (f), as redesignated by
 subsection (d)(2), by inserting ``Termination of
 Authority.--'' after ``(f)''.

SEC. 623. EXPANSION OF RESERVE AFFILIATION BONUS TO INCLUDE COAST GUARD
 RESERVE.

 Section 308e of title 37, United States Code, is amended--
 (1) in subsection (a), by striking out ``Under
 regulations prescribed by the Secretary of Defense, the
 Secretary of a military department'' and inserting in
 lieu thereof ``The Secretary concerned'';
 (2) in subsection (b)(3), by striking out
 ``designated by the Secretary of Defense for the
 purposes of this section'' and inserting in lieu
 thereof ``designated for purposes of this section in
 the regulations prescribed under subsection (f)'';
 (3) in subsection (c)(3), by striking out
 ``regulations prescribed by the Secretary of Defense''
 and inserting in lieu thereof ``the regulations
 prescribed under subsection (f)''; and
 (4) by adding at the end the following new
 subsections:
 ``(f) This section shall be administered under regulations
prescribed by the Secretary of Defense for the armed forces
under the jurisdiction of the Secretary of Defense and by the
Secretary of Transportation for the Coast Guard when the Coast
Guard is not operating as a service in the Navy.
 ``(g) The authority in subsection (a) does not apply to the
Secretary of Commerce and the Secretary of Health and Human
Services.''.

SEC. 624. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED
 OFFICERS.

 (a) Special Pay for Officers Extending Period of Active
Service.--Section 312(a) of title 37, United States Code, is
amended by striking out ``$12,000'' and inserting in lieu
thereof ``$15,000''.
 (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of
title 37, United States Code, is amended by striking out
``$8,000'' and inserting in lieu thereof ``$10,000''.
 (c) Nuclear Career Annual Incentive Bonuses.--Section 312c
of title 37, United States Code, is amended--
 (1) in subsection (a)(1), by striking out
 ``$10,000'' and inserting in lieu thereof ``$12,000'';
 and
 (2) in subsection (b)(1), by striking out
 ``$4,500'' and inserting in lieu thereof ``$5,500''.
 (d) Effective Date.--(1) The amendments made by this
section shall take effect as of October 1, 1997.
 (2) The amendments made by subsections (a) and (b) shall
apply with respect to agreements accepted under sections 312(a)
and 312b(a), respectively, of title 37, United States Code, on
or after October 1, 1997.

SEC. 625. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY FOR ENLISTED
 MEMBERS EXTENDING TOURS OF DUTY AT DESIGNATED
 LOCATIONS OVERSEAS.

 (a) Inclusion of Bonus Incentive.--(1) Section 314 of title
37, United States Code, is amended to read as follows:

``Sec. 314. Special pay or bonus: qualified enlisted members extending
 duty at designated locations overseas

 ``(a) Covered Members.--This section applies with respect
to an enlisted member of an armed force who--
 ``(1) is entitled to basic pay;
 ``(2) has a specialty that is designated by the
 Secretary concerned for the purposes of this section;
 ``(3) has completed a tour of duty (as defined in
 accordance with regulations prescribed by the Secretary
 concerned) at a location outside the 48 contiguous
 States and the District of Columbia that is designated
 by the Secretary concerned for the purposes of this
 section; and
 ``(4) at the end of that tour of duty executes an
 agreement to extend that tour for a period of not less
 than one year.
 ``(b) Special Pay or Bonus Authorized.--Upon the acceptance
by the Secretary concerned of the agreement providing for an
extension of the tour of duty of an enlisted member described
in subsection (a), the member is entitled, at the election of
the Secretary concerned, to either--
 ``(1) special pay in monthly installments in an
 amount prescribed by the Secretary, but not to exceed
 $80 per month; or
 ``(2) an annual bonus in an amount prescribed by
 the Secretary, but not to exceed $2,000 per year.
 ``(c) Selection and Payment of Special Pay or Bonus.--Not
later than the date on which the Secretary concerned accepts an
agreement described in subsection (a)(4) providing for the
extension of a member's tour of duty, the Secretary concerned
shall notify the member regarding whether the member will
receive special pay or a bonus under this section. The payment
rate for the special pay or bonus shall be fixed at the time of
the agreement and may not be changed during the period of the
extended tour of duty. The Secretary concerned may pay a bonus
under this section either in a lump sum or installments.
 ``(d) Repayment of Bonus.--(1) A member who, having entered
into a written agreement to extend a tour of duty for a period
under subsection (a), receives a bonus payment under subsection
(b)(2) for a 12-month period covered by the agreement and
ceases during that 12-month period to perform the agreed tour
of duty shall refund to the United States the unearned portion
of the bonus. The unearned portion of the bonus is the amount
by which the amount of the bonus paid to the member exceeds the
amount determined by multiplying the amount of the bonus paid
by the percent determined by dividing 12 into the number of
full months during which the member performed the duty in the
12-month period.
 ``(2) The Secretary concerned may waive the obligation of a
member to reimburse the United States under paragraph (1) if
the Secretary determines that conditions and circumstances
warrant the waiver.
 ``(3) An obligation to repay the United States imposed
under paragraph (1) is for all purposes a debt owed to the
United States.
 ``(4) A discharge in bankruptcy under title 11 that is
entered less than five years after the termination of the
agreement does not discharge the member signing the agreement
from a debt arising under the agreement or under paragraph (1).
This paragraph applies to any case commenced under title 11 on
or after the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998.
 ``(e) Effect of Rest and Recuperative Absence.--A member
who elects to receive one of the benefits specified in section
705(b) of title 10 as part of the extension of a tour of duty
is not entitled to the special pay authorized by subsection
(b)(1) for the period of the extension of duty for which the
benefit under such section is provided.''.
 (2) The item relating to section 314 in the table of
sections at the beginning of chapter 5 of such title is amended
to read as follows:

``314. Special pay or bonus: qualified enlisted members extending duty
 at designated locations overseas.''.

 (b) Application of Amendment.--Section 314 of title 37,
United States Code, as amended by subsection (a), shall apply
with respect to an agreement to extend a tour of duty as
provided in such section executed on or after October 1, 1997.

SEC. 626. INCREASE IN AMOUNT OF FAMILY SEPARATION ALLOWANCE.

 Section 427 of title 37, United States Code (as amended by
section 603), is further amended in subsection (a)(1) by
striking out ``$75'' and inserting in lieu thereof ``$100''.

SEC. 627. DEADLINE FOR PAYMENT OF READY RESERVE MUSTER DUTY ALLOWANCE.

 Section 433(c) of title 37, United States Code, is
amended--
 (1) in the first sentence, by striking out ``and
 shall be'' and all that follows through ``is
 performed''; and
 (2) by inserting after the first sentence the
 following new sentence: ``The allowance may be paid to
 the member before, on, or after the date on which the
 muster duty is performed, but not later than 30 days
 after that date.''.

 Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS BEFORE
 APPROVAL OF MEMBER'S COURT-MARTIAL SENTENCE.

 Section 406(h)(2)(C) of title 37, United States Code, is
amended by striking out the comma at the end of clause (iii)
and all that follows through ``title 10.'' and inserting in
lieu thereof a period.

SEC. 632. DISLOCATION ALLOWANCE.

 (a) In General.--Section 407 of title 37, United States
Code, is amended to read as follows:

``Sec. 407. Travel and transportation allowances: dislocation allowance

 ``(a) Eligibility for Primary Dislocation Allowance.--(1)
Under regulations prescribed by the Secretary concerned, a
member of a uniformed service described in paragraph (2) is
entitled to a primary dislocation allowance at the rate
determined under subsection (c) for the member's pay grade and
dependency status.
 ``(2) A member of the uniformed services referred to in
paragraph (1) is any of the following:
 ``(A) A member who makes a change of permanent
 station and the member's dependents actually make an
 authorized move in connection with the change,
 including a move by the dependents--
 ``(i) to join the member at the member's
 duty station after an unaccompanied tour of
 duty when the member's next tour of duty is an
 accompanied tour at the same station; and
 ``(ii) to a location designated by the
 member after an accompanied tour of duty when
 the member's next tour of duty is an
 unaccompanied tour at the same duty station.
 ``(B) A member whose dependents actually move
 pursuant to section 405a(a), 406(e), 406(h), or 554 of
 this title.
 ``(C) A member whose dependents actually move from
 their place of residence under circumstances described
 in section 406a of this title.
 ``(D) A member who is without dependents and--
 ``(i) actually moves to a new permanent
 station where the member is not assigned to
 quarters of the United States; or
 ``(ii) actually moves from a place of
 residence under circumstances described in
 section 406a of this title.
 ``(E) A member who is ordered to move in connection
 with the closure or realignment of a military
 installation and, as a result, the member's dependents
 actually move or, in the case of a member without
 dependents, the member actually moves.
 ``(3) If a primary dislocation allowance is paid under this
subsection to a member described in subparagraph (C) or (D)(ii)
of paragraph (2), the member is not entitled to another
dislocation allowance as a member described in subparagraph (A)
or (E) of such paragraph in connection with the same move.
 ``(b) Secondary Allowance Authorized Under Certain
Circumstances.--(1) Under regulations prescribed by the
Secretary concerned, whenever a member is entitled to a primary
dislocation allowance under subsection (a) as a member
described in paragraph (2)(C) or (2)(D)(ii) of such subsection,
the member is also entitled to a secondary dislocation
allowance at the rate determined under subsection (c) for the
member's pay grade and dependency status if, subsequent to the
member or the member's dependents actually moving from their
place of residence under circumstances described in section
406a of this title, the member or member's dependents complete
that move to a new location and then actually move from that
new location to another location also under circumstances
described in section 406a of this title.
 ``(2) If a secondary dislocation allowance is paid under
this subsection, the member is not entitled to a dislocation
allowance as a member described in paragraph (2)(A) or (2)(E)
of subsection (a) in connection with those moves.
 ``(c) Dislocation Allowance Rates.--(1) The amount of the
dislocation allowance to be paid under this section to a member
shall be based on the member's pay grade and dependency status
at the time the member becomes entitled to the allowance.
 ``(2) The initial rate for the dislocation allowance, for
each pay grade and dependency status, shall be equal to the
rate in effect for that pay grade and dependency status on
December 31, 1997, as adjusted by the average percentage
increase in the rates of basic pay for calendar year 1998.
Effective on the same date that the monthly rates of basic pay
for members are increased for a subsequent calendar year, the
Secretary of Defense shall adjust the rates for the dislocation
allowance for that calendar year by the percentage equal to the
average percentage increase in the rates of basic pay for that
calendar year.
 ``(d) Fiscal Year Limitation; Exceptions.--(1) A member is
not entitled to more than one dislocation allowance under this
section during a fiscal year unless--
 ``(A) the Secretary concerned finds that the
 exigencies of the service require the member to make
 more than one change of permanent station during the
 fiscal year;
 ``(B) the member is ordered to a service school as
 a change of permanent station;
 ``(C) the member's dependents are covered by
 section 405a(a), 406(e), 406(h), or 554 of this title;
 or
 ``(D) subparagraph (C) or (D)(ii) of subsection
 (a)(2) or subsection (b) apply with respect to the
 member or the member's dependents.
 ``(2) This subsection does not apply in time of national
emergency or in time of war.
 ``(e) First or Last Duty.--A member is not entitled to
payment of a dislocation allowance under this section when the
member is ordered from the member's home to the member's first
duty station or from the member's last duty station to the
member's home.
 ``(f) Rule of Construction.--For purposes of this section,
a member whose dependents may not make an authorized move in
connection with a change of permanent station is considered a
member without dependents.
 ``(g) Advance Payment.--A dislocation allowance payable
under this section may be paid in advance.''.
 (b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 1998.

 Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

SEC. 641. ONE-YEAR OPPORTUNITY TO DISCONTINUE PARTICIPATION IN SURVIVOR
 BENEFIT PLAN.

 (a) Election To Discontinue Within One Year After Second
Anniversary of Commencement of Payment of Retired Pay.--(1)
Subchapter II of chapter 73 of title 10, United States Code, is
amended by inserting after section 1448 the following new
section:

``Sec. 1448a. Election to discontinue participation: one-year
 opportunity after second anniversary of
 commencement of payment of retired pay

 ``(a) Authority.--A participant in the Plan may, subject to
the provisions of this section, elect to discontinue
participation in the Plan at any time during the one-year
period beginning on the second anniversary of the date on which
payment of retired pay to the participant commences.
 ``(b) Concurrence of Spouse.--
 ``(1) Concurrence required.--A married participant
 may not (except as provided in paragraph (2)) make an
 election under subsection (a) without the concurrence
 of the participant's spouse.
 ``(2) Exceptions.--A participant may make such an
 election without the concurrence of the participant's
 spouse by establishing to the satisfaction of the
 Secretary concerned that one of the conditions
 specified in section 1448(a)(3)(C) of this title
 exists.
 ``(3) Form of concurrence.--The concurrence of a
 spouse under paragraph (1) shall be made in such
 written form and shall contain such information as may
 be required under regulations prescribed by the
 Secretary of Defense.
 ``(c) Limitation on Election When Former Spouse Coverage in
Effect.--The limitation set forth in section 1450(f)(2) of this
title applies to an election to discontinue participation in
the Plan under subsection (a).
 ``(d) Withdrawal of Election To Discontinue.--Section
1448(b)(1)(D) of this title applies to an election under
subsection (a).
 ``(e) Consequences of Discontinuation.--Section
1448(b)(1)(E) of this title applies to an election under
subsection (a).
 ``(f) Notice to Affected Beneficiaries.--The Secretary
concerned shall notify any former spouse or other natural
person previously designated under section 1448(b) of this
title of an election to discontinue participation under
subsection (a).
 ``(g) Effective Date of Election.--An election under
subsection (a) is effective as of the first day of the first
calendar month following the month in which the election is
received by the Secretary concerned.
 ``(h) Inapplicability of Irrevocability Provisions.--
Paragraphs (4)(B) and (5)(C) of section 1448(a) of this title
do not apply to prevent an election under subsection (a).''.
 (2) The table of sections at the beginning of such
subchapter is amended by inserting after the item relating to
section 1448 the following new item:

``1448a. Election to discontinue participation: one-year opportunity
 after second anniversary of commencement of payment of retired
 pay.''.

 (b) Transition Provision for Current Participants.--
Notwithstanding the limitation on the time for making an
election under section 1448a of title 10, United States Code
(as added by subsection (a)), that is specified in subsection
(a) of such section, a participant in the Survivor Benefit Plan
under subchapter II of chapter 73 of such title may make an
election in accordance with that section within one year after
the effective date of that section under subsection (c) if the
second anniversary of the commencement of payment of retired
pay to the participant precedes that effective date.
 (c) Effective Date.--Section 1448a of title 10, United
States Code, as added by subsection (a), shall take effect 180
days after the date of the enactment of this Act.

SEC. 642. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT COVERAGE FROM FORMER
 SPOUSE TO SPOUSE MAY BE MADE.

 (a) Extension of Time for Change.--Section 1450(f)(1)(C) of
title 10, United States Code, is amended by adding at the end
the following new sentence: ``Notwithstanding the preceding
sentence, a change of election under this subsection to provide
an annuity to a spouse instead of a former spouse may (subject
to paragraph (2)) be made at any time after the person
providing the annuity remarries without regard to the time
limitation in section 1448(a)(5)(B) of this title.''.
 (b) Applicability.--The amendment made by subsection (a)
shall apply with respect to marriages occurring before, on, or
after the date of the enactment of this Act.

SEC. 643. REVIEW OF FEDERAL FORMER SPOUSE PROTECTION LAWS.

 (a) Review Required.--The Secretary of Defense shall carry
out a comprehensive review (including a comparison) of--
 (1) the protections, benefits, and treatment
 afforded under Federal law to members and former
 members of the uniformed services and former spouses of
 such persons; and
 (2) the protections, benefits, and treatment
 afforded under Federal law to employees and former
 employees of the Government and former spouses of such
 persons.
 (b) Military Personnel Matters To Be Reviewed.--In the case
of members and former members of the uniformed services and
former spouses of such persons, the review under subsection (a)
shall include the following:
 (1) All provisions of law (principally those
 originally enacted in the Uniformed Services Former
 Spouses' Protection Act (title X of Public Law 97-252))
 that--
 (A) establish, provide for the enforcement
 of, or otherwise protect interests of members
 and former members of the uniformed services
 and former spouses of such persons in retired
 or retainer pay of members and former members;
 or
 (B) provide other benefits for members and
 former members of the uniformed services and
 former spouses of such persons.
 (2) The experience of the uniformed services in
 administering those provisions of law, including the
 adequacy and effectiveness of the legal assistance
 provided by the Department of Defense in matters
 related to the Uniformed Services Former Spouses'
 Protection Act.
 (3) The experience of members and former members of
 the uniformed services and former spouses of such
 persons in the administration of those provisions of
 law.
 (4) The experience of members and former members of
 the uniformed services and former spouses of such
 persons in the application of those provisions of law
 by State courts.
 (5) The history of State statutes and State court
 interpretations of the Uniformed Services Former
 Spouses' Protection Act and other provisions of Federal
 law described in paragraph (1)(A) and the extent to
 which those interpretations follow those laws.
 (c) Civilian Personnel Matters To Be Reviewed.--In the case
of former spouses of employees and former employees of the
Government, the review under subsection (a) shall include the
following:
 (1) All provisions of law that--
 (A) establish, provide for the enforcement
 of, or otherwise protect interests of employees
 and former employees of the Government and
 former spouses of such persons in annuities of
 employees and former employees under Federal
 employees' retirement systems; or
 (B) provide other benefits for employees
 and former employees of the Government and
 former spouses of such persons.
 (2) The experience of the Office of Personnel
 Management and other agencies of the Government in
 administering those provisions of law.
 (3) The experience of employees and former
 employees of the Government and former spouses of such
 persons in the administration of those provisions of
 law.
 (4) The experience of employees and former
 employees of the Government and former spouses of such
 persons in the application of those provisions of law
 by State courts.
 (d) Sampling Authorized.--The Secretary may use sampling in
carrying out the review under this section.
 (e) Report.--Not later than September 30, 1999, the
Secretary shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report on the results of the review under
subsection (a). The report shall include any recommendations
for legislation that the Secretary considers appropriate.

SEC. 644. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

 (a) Survivor Annuity.--(1) The Secretary concerned shall
pay an annuity to the qualified surviving spouse of each member
of the uniformed services who--
 (A) died before March 21, 1974, and was entitled to
 retired or retainer pay on the date of death; or
 (B) was a member of a reserve component of the
 Armed Forces during the period beginning on September
 21, 1972, and ending on October 1, 1978, and at the
 time of his death would have been entitled to retired
 pay under chapter 67 of title 10, United States Code
 (as in effect before December 1, 1994), but for the
 fact that he was under 60 years of age.
 (2) A qualified surviving spouse for purposes of this
section is a surviving spouse who has not remarried and who is
not eligible for an annuity under section 4 of Public Law 92-
425 (10 U.S.C. 1448 note).
 (b) Amount of Annuity.--(1) An annuity under this section
shall be paid at the rate of $165 per month, as adjusted from
time to time under paragraph (3).
 (2) An annuity paid to a surviving spouse under this
section shall be reduced by the amount of any dependency and
indemnity compensation (DIC) to which the surviving spouse is
entitled under section 1311(a) of title 38, United States Code.
 (3) Whenever after the date of the enactment of this Act
retired or retainer pay is increased under section 1401a(b)(2)
of title 10, United States Code, each annuity that is payable
under this section shall be increased at the same time and by
the same total percent. The amount of the increase shall be
based on the amount of the monthly annuity payable before any
reduction under this section.
 (c) Application Required.--No benefit shall be paid to any
person under this section unless an application for such
benefit is filed with the Secretary concerned by or on behalf
of such person.
 (d) Definitions.--For purposes of this section:
 (1) The terms ``uniformed services'' and
 ``Secretary concerned'' have the meanings given such
 terms in section 101 of title 37, United States Code.
 (2) The term ``surviving spouse'' has the meaning
 given the terms ``widow'' and ``widower'' in paragraphs
 (3) and (4) of section 1447 of title 10, United States
 Code.
 (e) Prospective Applicability.--(1) Annuities under this
section shall be paid for months beginning after the month in
which this Act is enacted.
 (2) No benefit shall accrue to any person by reason of the
enactment of this section for any period before the first month
that begins after the month in which this Act is enacted.
 (f) Expiration of Authority.--The authority to pay
annuities under this section shall expire on September 30,
2001.

SEC. 645. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM INCOME
 WIDOWS.

 (a) Payments To Be Made by Secretary of Veterans Affairs.--
Section 653(d) of the National Defense Authorization Act,
Fiscal Year 1989 (10 U.S.C. 1448 note) is amended--
 (1) by inserting ``(1)'' before ``An annuity'' the
 first place it appears; and
 (2) by adding at the end the following new
 paragraph:
 ``(2) Payment of annuities under this section shall be made
by the Secretary of Veterans Affairs. In making such payments,
the Secretary shall combine the payment under this section with
the payment of any amount due the same person under section 4
of Public Law 92-425 (10 U.S.C. 1448 note), as provided in
subsection (e)(1) of that section. The Secretaryconcerned shall
transfer amounts for payments under this section to the Secretary of
Veterans Affairs in the same manner as is provided under subsection
(e)(2) of section 4 of Public Law 92-425 for payments under that
section.''.
 (b) Combination With Other Benefits.--Section 4(e)(1) of
Public Law 92-425 (10 U.S.C. 1448 note) is amended--
 (1) by inserting after the first sentence the
 following new sentence: ``In making such payments, the
 Secretary shall combine with the payment under this
 section payment of any amount due the same person under
 section 653(d) of the National Defense Authorization
 Act, Fiscal Year 1989 (10 U.S.C. 1448 note).''; and
 (2) by inserting ``(and, if applicable, under
 section 653(d) of the National Defense Authorization
 Act, Fiscal Year 1989)'' after ``under this section''.
 (c) Effective Date.--The amendments made by this section
take effect on the first day of the first month beginning after
the date of the enactment of this Act and shall apply with
respect to payments of benefits for months beginning on or
after that date, except that the Secretary of Veterans Affairs
may provide, if necessary for administrative implementation,
that such amendments shall apply beginning with a later month,
not later than the first month beginning more than 180 days
after the date of the enactment of this Act.

 Subtitle E--Other Matters

SEC. 651. LOAN REPAYMENT PROGRAM FOR COMMISSIONED OFFICERS IN CERTAIN
 HEALTH PROFESSIONS.

 (a) Chapter 109 of title 10, United States Code, is amended
by adding at the end the following new section:

``Sec. 2173. Education loan repayment program: commissioned officers in
 specified health professions

 ``(a) Authority To Repay Education Loans.--For the purpose
of maintaining adequate numbers of commissioned officers of the
armed forces on active duty who are qualified in the various
health professions, the Secretary of a military department may
repay, in the case of a person described in subsection (b), a
loan that--
 ``(1) was used by the person to finance education
 regarding a health profession; and
 ``(2) was obtained from a governmental entity,
 private financial institution, school, or other
 authorized entity.
 ``(b) Eligible Persons.--To be eligible to obtain a loan
repayment under this section, a person must--
 ``(1) satisfy one of the requirements specified in
 subsection (c);
 ``(2) be fully qualified for, or hold, an
 appointment as a commissioned officer in one of the
 health professions; and
 ``(3) sign a written agreement to serve on active
 duty, or, if on active duty, to remain on active duty
 for a period in addition to any other incurred active
 duty obligation.
 ``(c) Academic and Professional Requirements.--One of the
following academic requirements must be satisfied for purposes
of determining the eligibility of a person for a loan repayment
under this section:
 ``(1) The person is fully qualified in a health
 care profession that the Secretary of the military
 department concerned has determined to be necessary to
 meet identified skill shortages.
 ``(2) The person is enrolled as a full-time student
 in the final year of a course of study at an accredited
 educational institution leading to a degree in a health
 profession other than medicine or osteopathic medicine.
 ``(3) The person is enrolled in the final year of
 an approved graduate program leading to specialty
 qualification in medicine, dentistry, osteopathic
 medicine, or other health profession.
 ``(d) Certain Persons Ineligible.--Participants of the
Armed Forces Health Professions Scholarship and Financial
Assistance program under subchapter I of chapter 105 of this
title and students of the Uniformed Services University of the
Health Sciences established under section 2112 of this title
are not eligible for the repayment of an education loan under
this section.
 ``(e) Loan Repayments.--(1) Subject to the limits
established by paragraph (2), a loan repayment under this
section may consist of payment of the principal, interest, and
related expenses of a loan obtained by a person described in
subsection (b) for--
 ``(A) all educational expenses, comparable to all
 educational expenses recognized under section 2127(a)
 of this title for participants in the Armed Forces
 Health Professions Scholarship and Financial Assistance
 program; and
 ``(B) reasonable living expenses, not to exceed
 expenses comparable to the stipend paid under section
 2121(d) of this title for participants in the Armed
 Forces Health Professions Scholarship and Financial
 Assistance program.
 ``(2) For each year of obligated service that a person
agrees to serve in an agreement described in subsection (b)(3),
the Secretary of the military department concerned may pay not
more than $22,000 on behalf of the person. This maximum amount
shall be increased annually by the Secretary of Defense
effective October 1 of each year by the percentage equal to the
percent increase in the average annual cost of educational
expenses and stipend costs of a single scholarship under the
Armed Forces Health Professions Scholarship and Financial
Assistance program. The total amount that may be repaid on
behalf of any person may not exceed an amount determined on the
basis of a four-year active duty service obligation.
 ``(f) Active Duty Service Obligation.--(1) A person
entering into an agreement described in subsection (b)(3)
incurs an active duty service obligation. The length of this
obligation shall be determined under regulations prescribed by
the Secretary of Defense, but those regulations may not provide
for a period of obligation of less than one year for each
maximum annual amount, or portion thereof, paid on behalf of
the person for qualified loans.
 ``(2) For persons on active duty before entering into the
agreement, the active duty service obligation shall be served
consecutively to any other obligation incurred under the
agreement.
 ``(g) Effect of Failure To Complete Obligation.--A
commissioned officer who is relieved of the officer's active
duty obligation under this section before the completion of
that obligation may be given, with or without the consent of
the officer, any alternative obligation comparable to any of
the alternative obligations authorized by section 2123(e) of
this title for participants in the Armed Forces Health
Professions Scholarship and Financial Assistance program.
 ``(h) Regulations.--The Secretary of Defense shall
prescribe regulations to carry out this section, including
standards for qualified loans and authorized payees and other
terms and conditions for the making of loan repayments.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2173. Education loan repayment program: commissioned officers in
 specified health professions.''.

SEC. 652. CONFORMANCE OF NOAA COMMISSIONED OFFICERS SEPARATION PAY TO
 SEPARATION PAY FOR MEMBERS OF OTHER UNIFORMED
 SERVICES.

 (a) Elimination of Limitations on Amount of Separation
Pay.--Section 9 of the Coast and Geodetic Survey Commissioned
Officers' Act of 1948 (33 U.S.C. 853h) is amended--
 (1) in subsection (b)(1), by striking out ``, or
 $30,000, whichever is less'';
 (2) in subsection (b)(2), by striking out ``, but
 in no event more than $15,000''; and
 (3) in subsection (d), by striking out ``(1)'', and
 by striking out paragraph (2).
 (b) Waiver of Recoupment of Amounts Withheld for Tax
Purposes From Certain Separation Pay.--Section 9(e)(2) of the
Coast and Geodetic Survey Commissioned Officers' Act of 1948
(33 U.S.C. 853h(e)(2)) is amended in the first sentence by
inserting before the period at the end the following: ``, less
the amount of Federal income tax withheld from such pay (such
withholding being at the flat withholding rate for Federal
income tax withholding, as in effect pursuant to regulations
prescribed under chapter 24 of the Internal Revenue Code of
1986)''.
 (c) Effective Date and Application.--The amendments made by
this section shall take effect as of October 1, 1997, and shall
apply to payments of separation pay that are made after
September 30, 1997.

SEC. 653. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFICERS AND NOAA
 COMMISSIONED CORPS OFFICERS FOR REIMBURSEMENT OF
 ADOPTION EXPENSES.

 (a) Public Health Service.--Section 221(a) of the Public
Health Service Act (42 U.S.C. 213a(a)) is amended by adding at
the end the following new paragraph:
 ``(16) Section 1052, Reimbursement for adoption
 expenses.''.
 (b) National Oceanic and Atmospheric Administration.--
Section 3(a) of the Act of August 10, 1956 (33 U.S.C. 857a(a)),
is amended by adding at the end the following new paragraph:
 ``(16) Section 1052, Reimbursement for adoption
 expenses.''.
 (c) Prospective Applicability.--The amendments made by this
section shall apply only to adoptions that are completed on or
after the date of the enactment of this Act.

SEC. 654. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD
 WAR II VETERANS WHO SERVED AS GUERRILLA FIGHTERS IN
 THE PHILIPPINES.

 (a) In General.--The Secretary of the military department
concerned shall pay, upon request, to an individual described
in subsection (b) the amount determined with respect to that
individual under subsection (c).
 (b) Covered Individuals.--A payment under subsection (a)
shall be made to any individual who as a member of the Armed
Forces during World War II--
 (1) was captured within the territory of the
 Philippines by Japanese forces;
 (2) escaped from captivity; and
 (3) served as a guerrilla fighter in the
 Philippines during the period from January 1942 through
 February 1945.
 (c) Amount To Be Paid.--The amount of a payment under
subsection (a) shall be the amount of quarters and subsistence
allowance which accrued to an individual described in
subsection (b) during the period specified in paragraph (3) of
subsection (b) and which was not paid to that individual. For
the purposes of this subsection, the Secretary of War shall be
deemed to have determined that conditions in the Philippines
during the specified period justified payment under applicable
regulations of quarters and subsistence allowances at the
maximum special rate for duty where emergency conditions
existed. The Secretary shall apply interest compounded at the
three-month Treasury bill rate.
 (d) Payment to Survivors.--In the case of any individual
described in subsection (b) who is deceased, payment under this
section with respect to that individual shall be made to that
individual's nearest surviving relative, as determined by the
Secretary concerned.

SEC. 655. SUBSISTENCE OF MEMBERS OF THE ARMED FORCES ABOVE THE POVERTY
 LEVEL.

 (a) Study and Report.--(1) The Secretary of Defense shall
conduct a study of members of the Armed Forces and their
families who subsist at, near, or below the poverty level. The
study shall include the following:
 (A) An analysis of potential solutions for ensuring
 that members of the Armed Forces and their families do
 not have to subsist at, near, or below the poverty
 level, including potential solutions involving changes
 in the system of allowances for members.
 (B) Identification of the military populations most
 likely to need income support under Federal Government
 programs, including--
 (i) the populations living in areas of the
 United States where housing costs are notably
 high;
 (ii) the populations living outside the
 United States; and
 (iii) the number of persons in each
 identified population.
 (C) The desirability of increasing rates of basic
 pay and allowances for members over a defined period of
 years by a range of percentages that provides for
 higher percentage increases for lower ranking members
 than for higher ranking members.
 (2) Not later than 180 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to Congress
a report containing the results of the study and such
recommendations as the Secretary considers to be appropriate.
 (b) Implementation of Department of Defense Special
Supplemental Food Program for Personnel Outside the United
States.--(1) Subsection (b) of section 1060a of title 10,
United States Code, is amended to read as follows:
 ``(b) Federal Payments and Commodities.--For the purpose of
obtaining Federal payments and commodities in order to carry
out the program referred to in subsection (a), the Secretary of
Agriculture shall make available to the Secretary of Defense
the same payments and commodities as are made for the special
supplemental food program in the United States under section 17
of the Child Nutrition Act of 1966 (42 U.S.C. 1786). The
Secretary of Defense may use funds available for the Department
of Defense to carry out the program under subsection (a).''.
 (2) Not later than 90 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to Congress
a report regarding the intentions of the Secretary regarding
implementation of the program authorized under section 1060a of
title 10, United States Code, including any plans to implement
the program.

 TITLE VII--HEALTH CARE PROVISIONS

 Subtitle A--Health Care Services

Sec. 701. Expansion of retiree dental insurance plan to include
 surviving spouse and child dependents of certain deceased
 members.
Sec. 702. Provision of prosthetic devices to covered beneficiaries.
Sec. 703. Study concerning the provision of comparative information.

 Subtitle B--TRICARE Program

Sec. 711. Addition of definition of TRICARE program to title 10.
Sec. 712. Plan for expansion of managed care option of TRICARE program.

 Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Implementation of designated provider agreements for Uniformed
 Services Treatment Facilities.
Sec. 722. Continued acquisition of reduced-cost drugs.
Sec. 723. Limitation on total payments.

 Subtitle D--Other Changes to Existing Laws Regarding Health Care
 Management

Sec. 731. Improvements in health care coverage and access for members
 assigned to certain duty locations far from sources of care.
Sec. 732. Waiver or reduction of copayments under overseas dental
 program.
Sec. 733. Premium collection requirements for medical and dental
 insurance programs; extension of deadline for implementation
 of dental insurance program for military retirees.
Sec. 734. Dental insurance plan coverage for retirees of the Public
 Health Service and NOAA.
Sec. 735. Consistency between CHAMPUS and Medicare in payment rates for
 services.
Sec. 736. Use of personal services contracts for provision of health
 care services and legal protection for providers.
Sec. 737. Portability of State licenses for Department of Defense health
 care professionals.
Sec. 738. Standard form and requirements regarding claims for payment
 for services.
Sec. 739. Chiropractic health care demonstration program.

 Subtitle E--Other Matters

Sec. 741. Continued admission of civilians as students in physician
 assistant training program of Army Medical Department.
Sec. 742. Payment for emergency health care overseas for military and
 civilian personnel of the On-Site Inspection Agency.
Sec. 743. Authority for agreement for use of medical resource facility,
 Alamogordo, New Mexico.
Sec. 744. Disclosures of cautionary information on prescription
 medications.
Sec. 745. Competitive procurement of certain ophthalmic services.
Sec. 746. Comptroller General study of adequacy and effect of maximum
 allowable charges for physicians under CHAMPUS.
Sec. 747. Comptroller General study of Department of Defense pharmacy
 programs.
Sec. 748. Comptroller General study of Navy graduate medical education
 program.
Sec. 749. Study of expansion of pharmaceuticals by mail program to
 include additional Medicare-eligible covered beneficiaries.
Sec. 750. Comptroller General study of requirement for military medical
 facilities in National Capital Region.
Sec. 751. Report on policies and programs to promote healthy lifestyles
 for members of the Armed Forces and their dependents.
Sec. 752. Sense of Congress regarding quality health care for retirees.

 Subtitle F--Persian Gulf Illness

Sec. 761. Definitions.
Sec. 762. Plan for health care services for Persian Gulf veterans.
Sec. 763. Comptroller General study of revised disability criteria for
 physical evaluation boards.
Sec. 764. Medical care for certain reserves who served in Southwest Asia
 during the Persian Gulf War.
Sec. 765. Improved medical tracking system for members deployed overseas
 in contingency or combat operations.
Sec. 766. Notice of use of investigational new drugs or drugs unapproved
 for their applied use.
Sec. 767. Report on plans to track location of members in a theater of
 operations.
Sec. 768. Sense of Congress regarding the deployment of specialized
 units for detecting and monitoring chemical, biological, and
 similar hazards in a theater of operations.
Sec. 769. Report on effectiveness of research efforts regarding Gulf War
 illnesses.
Sec. 770. Persian Gulf illness clinical trials program.
Sec. 771. Sense of Congress concerning Gulf War illness.

 Subtitle A--Health Care Services

SEC. 701. EXPANSION OF RETIREE DENTAL INSURANCE PLAN TO INCLUDE
 SURVIVING SPOUSE AND CHILD DEPENDENTS OF CERTAIN
 DECEASED MEMBERS.

 Section 1076c(b)(4) of title 10, United States Code, is
amended--
 (1) in subparagraph (A)--
 (A) by striking out ``dies'' and inserting
 in lieu thereof ``died''; and
 (B) by striking out ``or'' at the end of
 the subparagraph;
 (2) by striking out the period at the end of
 subparagraph (B) and inserting in lieu thereof ``;
 or''; and
 (3) by adding at the end the following new
 subparagraph:
 ``(C) who died while on active duty for a
 period of more than 30 days and whose eligible
 dependents are not eligible, or no longer
 eligible, for dental benefits under section
 1076a of this title pursuant to subsection
 (i)(2) of such section.''.

SEC. 702. PROVISION OF PROSTHETIC DEVICES TO COVERED BENEFICIARIES.

 (a) Inclusion Among Authorized Care.--Subsection (a) of
section 1077 of title 10, United States Code, is amended by
adding at the end the following new paragraph:
 ``(15) Prosthetic devices, as determined by the
 Secretary of Defense to be necessary because of
 significant conditions resulting from trauma,
 congenital anomalies, or disease.''.
 (b) Conforming Amendment.--Subsection (b) of such section
is amended by striking out paragraph (2) and inserting in lieu
thereof the following new paragraph:
 ``(2) Hearing aids, orthopedic footwear, and
 spectacles, except that, outside of the United States
 and at stations inside the United States where adequate
 civilian facilities are unavailable, such items may be
 sold to dependents at cost to the United States.''.

SEC. 703. STUDY CONCERNING THE PROVISION OF COMPARATIVE INFORMATION.

 (a) Study.--The Secretary of Defense shall conduct a study
concerning the provision of the information described in
subsection (b) to beneficiaries under the TRICARE program
established under the authority of chapter 55 of title 10,
United States Code, and prepare and submit to Congress a report
concerning such study.
 (b) Provision of Comparative Information.--Information
described in this subsection, with respect to a managed care
entity that contracts with the Secretary of Defense to provide
medical assistance under the program described in subsection
(a), shall include the following:
 (1) The benefits covered by the entity involved,
 including--
 (A) covered items and services beyond those
 provided under a traditional fee-for-service
 program;
 (B) any beneficiary cost sharing; and
 (C) any maximum limitations on out-of-
 pocket expenses.
 (2) The net monthly premium, if any, under the
 entity.
 (3) The service area of the entity.
 (4) To the extent available, quality and
 performance indicators for the benefits under the
 entity (and how they compare to such indicators under
 the traditional fee-for-service programs in the area
 involved), including--
 (A) disenrollment rates for enrollees
 electing to receive benefits through the entity
 for the previous two years (excluding
 disenrollment due to death or moving outside
 the service area of the entity);
 (B) information on enrollee satisfaction;
 (C) information on health process and
 outcomes;
 (D) grievance procedures;
 (E) the extent to which an enrollee may
 select the health care provider of their
 choice, including health care providers within
 the network of the entity and out-of-network
 health care providers (if the entity covers
 out-of-network items and services); and
 (F) an indication of enrollee exposure to
 balance billing and the restrictions on
 coverage of items and services provided to such
 enrollee by an out-of-network health care
 provider.
 (5) Whether the entity offers optional supplemental
 benefits and the terms and conditions (including
 premiums) for such coverage.
 (6) An overall summary description as to the method
 of compensation of participating physicians.

 Subtitle B--Tricare Program

SEC. 711. ADDITION OF DEFINITION OF TRICARE PROGRAM TO TITLE 10.

 Section 1072 of title 10, United States Code, is amended by
adding at the end the following new paragraph:
 ``(7) The term `TRICARE program' means the managed
 health care program that is established by the
 Department of Defense under the authority of this
 chapter, principally section 1097 of this title, and
 includes the competitive selection of contractors to
 financially underwrite the delivery of health care
 services under the Civilian Health and Medical Program
 of the Uniformed Services.''.

SEC. 712. PLAN FOR EXPANSION OF MANAGED CARE OPTION OF TRICARE PROGRAM.

 (a) Plan for Expansion of TRICARE Prime.--The Secretary of
Defense shall prepare a plan for the expansion of the managed
care option of the TRICARE Program, known as TRICARE Prime,
into areas of the United States located outside of the
catchment areas of medical treatment facilities of the
uniformed services, but in which the managed care option is a
cost-effective alternative because of--
 (1) the significant number of members of the
 uniformed services and covered beneficiaries under
 chapter 55 of title 10, United States Code (including
 retired members of the Armed Forces and their
 dependents), who reside in the areas; and
 (2) the presence in the areas of sufficient
 nonmilitary health care provider networks.
 (b) Alternatives.--As an alternative to expansion of
TRICARE Prime to areas of the United States in which there are
few or no nonmilitary health care provider networks, the
Secretary shall include in the plan required under subsection
(a) an evaluation of the feasibility and cost-effectiveness of
providing a member of the Armed Forces on active duty who is
stationed in such an area, or whose dependents reside in such
an area, with one or both of the following:
 (1) A monetary stipend to assist the member in
 obtaining health care services for the member or the
 member's dependents.
 (2) A reduction in the cost-sharing requirements
 applicable to the TRICARE program options otherwise
 available to the member to match the reduced cost-
 sharing responsibilities of the managed care option of
 the TRICARE program.
 (c) Submission of Plan.--Not later than March 1, 1998, the
Secretary shall submit to Congress the plan required under
subsection (a).

 Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. IMPLEMENTATION OF DESIGNATED PROVIDER AGREEMENTS FOR
 UNIFORMED SERVICES TREATMENT FACILITIES.

 (a) Commencement of Health Care Services Under Agreement.--
Subsection (c) of section 722 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201, 10
U.S.C. 1073 note) is amended--
 (1) by redesignating paragraphs (1) and (2) as
 subparagraphs (A) and (B);
 (2) by inserting ``(1)'' before ``Unless''; and
 (3) by adding at the end the following new
 paragraph:
 ``(2) The Secretary may modify the effective date
established under paragraph (1) for an agreement to permit a
transition period of not more than six months between the date
on which the agreement is executed by the parties and the date
on which the designated provider commences the delivery of
health care services under the agreement.''.
 (b) Temporary Continuation of Existing Participation
Agreements.--Subsection (d) of such section is amended by
inserting before the period at the end the following: ``,
including any transitional period provided by the Secretary
under paragraph (2) of such subsection''.

SEC. 722. CONTINUED ACQUISITION OF REDUCED-COST DRUGS.

 Section 722 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is
amended by adding at the end the following new subsection:
 ``(g) Continued Acquisition of Reduced-Cost Drugs.--A
designated provider shall be treated as part of the Department
of Defense for purposes of section 8126 of title 38, United
States Code, in connection with the provision by the designated
provider of health care services to covered beneficiaries
pursuant to the participation agreement of the designated
provider under section 718(c) of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 42
U.S.C. 248c note) or pursuant to the agreement entered into
under subsection (b).''.

SEC. 723. LIMITATION ON TOTAL PAYMENTS.

 Section 726(b) of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note)
is amended by adding at the end the following new sentence:
``In establishing the ceiling rate for enrollees with the
designated providers who are also eligible for the Civilian
Health and Medical Program of the Uniformed Services, the
Secretary of Defense shall take into account the health status
of the enrollees.''.

 Subtitle D--Other Changes to Existing Laws Regarding Health Care
 Management

SEC. 731. IMPROVEMENTS IN HEALTH CARE COVERAGE AND ACCESS FOR MEMBERS
 ASSIGNED TO CERTAIN DUTY LOCATIONS FAR FROM SOURCES
 OF CARE.

 (a) Supplemental Care Program.--(1) Section 1074(c) of
title 10, United States Code, is amended--
 (A) by inserting ``(1)'' after ``(c)''; and
 (B) by adding at the end the following new
 paragraphs:
 ``(2)(A) Subject to such exceptions as the Secretary of
Defense considers necessary, coverage for medical care for
members of the armed forces under this subsection, and
standards with respect to timely access to such care, shall be
comparable to coverage for medical care and standards for
timely access to such care under the managed care option of the
TRICARE program known as TRICARE Prime.
 ``(B) The Secretary of Defense shall enter into
arrangements with contractors under the TRICARE program or with
other appropriate contractors for the timely and efficient
processing of claims under this subsection.
 ``(3)(A) The Secretary of Defense may not require a member
of the armed forces described in subparagraph (B) to receive
routine primary medical care at a military medical treatment
facility.
 ``(B) A member referred to in subparagraph (A) is a member
of the armed forces on active duty who is entitled to medical
care under this subsection and who--
 ``(i) receives a duty assignment described in
 subparagraph (C); and
 ``(ii) pursuant to the assignment of such duty,
 resides at a location that is more than 50 miles, or
 approximately one hour of driving time, from the
 nearest military medical treatment facility adequate to
 provide the needed care.
 ``(C) A duty assignment referred to in subparagraph (B)
means any of the following:
 ``(i) Permanent duty as a recruiter.
 ``(ii) Permanent duty at an educational institution
 to instruct, administer a program of instruction, or
 provide administrative services in support of a program
 of instruction for the Reserve Officers' Training
 Corps.
 ``(iii) Permanent duty as a full-time adviser to a
 unit of a reserve component.
 ``(iv) Any other permanent duty designated by the
 Secretary concerned for purposes of this paragraph.''.
 (2) The amendments made by paragraph (1) shall apply with
respect to coverage of medical care for, and the provision of
such care to, a member of the Armed Forces under section
1074(c) of title 10, United States Code, on and after the later
of the following:
 (A) April 1, 1998.
 (B) The date on which the TRICARE program is in
 place in the service area of the member.
 (b) Temporary Authority for Managed Care Expansion to
Members on Active Duty at Certain Remote Locations.--(1) A
member of the Armed Forces described in subsection (c) is
entitled to receive care under the Civilian Health and Medical
Program of the Uniformed Services. In connection with such
care, the Secretary of Defense shall waive the obligation of
the member to pay a deductible, copayment, or annual fee that
would otherwise be applicable under that program for care
provided to the members under the program.
 (2) A member who is entitled under paragraph (1) to receive
health care services under CHAMPUS shall receive such care from
a network provider under the TRICARE program if such a provider
is available in the service area of the member.
 (3) Paragraph (1) shall take effect on the date of the
enactment of this Act and shall expire with respect to a member
upon the later of the following:
 (A) The date that is one year after the date of the
 enactment of this Act.
 (B) The date on which the amendments made by
 subsection (a) apply with respect to the coverage of
 medical care for, and provision of such care to, the
 member.
 (c) Eligible Members.--A member referred to in subsection
(b) is a member of the Armed Forces on active duty who--
 (1) receives a duty assignment described in
 subsection (d); and
 (2) pursuant to the assignment of such duty,
 resides at a location that is more than 50 miles, or
 approximately one hour of driving time, from--
 (A) the nearest health care facility of the
 uniformed services adequate to provide the
 needed care under chapter 55 of title 10,
 United States Code; and
 (B) the nearest source of the needed care
 that is available to the member under the
 TRICARE Prime plan.
 (d) Duty Assignments Covered.--A duty assignment referred
to in subsection (c)(1) means any of the following:
 (1) Permanent duty as a recruiter.
 (2) Permanent duty at an educational institution to
 instruct, administer a program of instruction, or
 provide administrative services in support of a program
 of instruction for the Reserve Officers' Training
 Corps.
 (3) Permanent duty as a full-time adviser to a unit
 of a reserve component of the Armed Forces.
 (4) Any other permanent duty designated by the
 Secretary concerned for purposes of this subsection.
 (e) Payment of Costs.--Deductibles, copayments, and annual
fees not payable by a member by reason of a waiver granted
under the regulations prescribed pursuant to subsection (b)
shall be paid out of funds available to the Department of
Defense for the Defense Health Program.
 (f) Definitions.--In this section:
 (1) The term ``TRICARE program'' has the meaning
 given that term in section 1072(7) of title 10, United
 States Code.
 (2) The term ``TRICARE Prime plan'' means a plan
 under the TRICARE program that provides for the
 voluntary enrollment of persons for the receipt of
 health care services to be furnished in a manner
 similar to the manner in which health care services are
 furnished by health maintenance organizations.

SEC. 732. WAIVER OR REDUCTION OF COPAYMENTS UNDER OVERSEAS DENTAL
 PROGRAM.

 Section 1076a(h) of title 10, United States Code, is
amended--
 (1) in the first sentence, by striking out
 ``Secretary'' and inserting in lieu thereof ``Secretary
 of Defense''; and
 (2) by adding at the end the following new
 sentence: ``In the case of such an overseas dental
 plan, the Secretary may waive or reduce the copayments
 otherwise required by subsection (e) to the extent the
 Secretary determines appropriate for the effective and
 efficient operation of the plan.''.

SEC. 733. PREMIUM COLLECTION REQUIREMENTS FOR MEDICAL AND DENTAL
 INSURANCE PROGRAMS; EXTENSION OF DEADLINE FOR
 IMPLEMENTATION OF DENTAL INSURANCE PROGRAM FOR
 MILITARY RETIREES.

 (a) Premium Collection for Selected Reserve Dental
Insurance.--Paragraph (3) of section 1076b(b) of title 10,
United States Code, is amended to read as follows:
 ``(3) The Secretary of Defense shall establish procedures
for the collection of the member's share of the premium for
coverage by the dental insurance plan. To the maximum extent
practicable, a member's share shall be deducted and withheld
from the basic pay payable to the member for inactive duty
training or basic pay payable to the member for active duty (if
pay is available to the member). Such share shall be used to
pay the premium for coverage by the dental insurance plan.''.
 (b) Premium Collection for Retiree Dental Insurance Plan.--
Paragraph (2) of section 1076c(c) of such title is amended to
read as follows:
 ``(2) The Secretary of Defense shall establish procedures
for the collection of the premiums charged for coverage by the
dental insurance plan. To the maximum extent practicable, the
premiums payable by a member entitled to retired pay shall be
deducted and withheld from the retired pay of the member (if
pay is available to the member).''.
 (c) Report to Congress.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a report on the
premium collection procedures established pursuant to paragraph
(3) of section 1076b(b) of title 10, United States Code, and
paragraph (2) of section 1076c(c) of such title. The report
shall describe the extent to which premium collections are made
under such paragraphs through deductions and withholding from
pay.
 (d) Limitation on Implementation of Alternative Collection
Procedures.--The Secretary of Defense may not implement
procedures for collecting premiums under section 1076b(b)(3) of
title 10, United States Code, or section 1076c(c)(2) of such
title other than by deductions and withholding from pay until
120 days after the date that the Secretary submits a report to
Congress describing the justifications for implementing such
alternative procedures.
 (e) Extension of Deadline for Implementation of Dental
Insurance Plan for Military Retirees.--Section 703(b) of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201; 110 Stat. 2590) is amended by striking ``October
1, 1997'' and inserting ``April 1, 1998''.

SEC. 734. DENTAL INSURANCE PLAN COVERAGE FOR RETIREES OF THE PUBLIC
 HEALTH SERVICE AND NOAA.

 (a) Eligibility.--(1) Subsection (a) of section 1076c of
title 10, United States Code, is amended by striking out
``military retirees'' and inserting in lieu thereof ``retirees
of the uniformed services''.
 (2) Subsection (b)(1) of such section is amended by
striking out ``Armed Forces'' and inserting in lieu thereof
``uniformed services''.
 (b) Officials Responsible.--(1) Subsection (a) of such
section (as amended by subsection (a)) is further amended by
inserting ``, in consultation with the other administering
Secretaries,'' after ``Secretary of Defense''.
 (2) Subsection (h) of such section is amended by striking
out ``Secretary of Transportation'' and inserting in lieu
thereof ``other administering Secretaries''.

SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR
 SERVICES.

 (a) Conformity Between Rates.--Section 1079(h) of title 10,
United States Code, is amended by striking out paragraphs (1),
(2), and (3) and inserting in lieu thereof the following new
paragraph:
 ``(1) Except as provided in paragraphs (2) and (3), payment
for a charge for services by an individual health care
professional (or other noninstitutional health care provider)
for which a claim is submitted under a plan contracted for
under subsection (a) shall be equal to an amount determined to
be appropriate, to the extent practicable, in accordance with
the same reimbursement rules as apply to payments for similar
services under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.). The Secretary of Defense shall determine
the appropriate payment amount under this paragraph in
consultation with the other administering Secretaries.''.
 (b) Reduced Rates Authorized.--Paragraph (5) of such
section is amended by adding at the end the following new
sentence: ``With the consent of the health care provider, the
Secretary is also authorized to reduce the authorized payment
for certain health care services below the amount otherwise
required by the payment limitations under paragraph (1).''.
 (c) Conforming Amendments.--Such section is further
amended--
 (1) in paragraph (5), by striking out ``paragraph
 (4), the Secretary'' and inserting in lieu thereof
 ``paragraph (2), the Secretary of Defense''; and
 (2) by redesignating paragraphs (4), (5), and (6)
 as paragraphs (2), (3), and (4), respectively.

SEC. 736. USE OF PERSONAL SERVICES CONTRACTS FOR PROVISION OF HEALTH
 CARE SERVICES AND LEGAL PROTECTION FOR PROVIDERS.

 (a) Use of Contracts Outside Medical Treatment
Facilities.--Section 1091(a) of title 10, United States Code,
is amended--
 (1) by inserting ``(1)'' before ``The Secretary of
 Defense''; and
 (2) by adding at the end the following new
 paragraph:
 ``(2) The Secretary of Defense, and the Secretary of
Transportation with respect to the Coast Guard when it is not
operating as a service in the Navy, may also enter into
personal services contracts to carry out other health care
responsibilities of the Secretary (such as the provision of
medical screening examinations at Military Entrance Processing
Stations) at locations outside medical treatment facilities, as
determined necessary pursuant to regulations prescribed by the
Secretary. The Secretary may not enter into a contract under
this paragraph after the end of the one-year period beginning
on the date of the enactment of this paragraph.''.
 (b) Defense of Suits.--Section 1089 of such title is
amended--
 (1) in subsection (a), by adding at the end the
 following new sentence: ``This subsection shall also
 apply if the physician, dentist, nurse, pharmacist, or
 paramedical or other supporting personnel (or the
 estate of such person) involved is serving under a
 personal services contract entered into under section
 1091 of this title.''; and
 (2) in subsection (f)--
 (A) by inserting ``(1)'' after ``(f)''; and
 (B) by adding at the end the following new
 paragraph:
 ``(2) With respect to the Secretary of Defense and the
Armed Forces Retirement Home Board, the authority provided by
paragraph (1) also includes the authority to provide for
reasonable attorney's fees for persons described in subsection
(a), as determined necessary pursuant to regulations prescribed
by the head of the agency concerned.''.
 (c) Report.--Not later than March 31, 1998, the Secretary
of Defense shall submit to Congress a report on the feasible
alternative means for performing the medical screening
examinations that are routinely performed at Military Entrance
Processing Stations. The report shall contain a discussion of
the feasibility and cost of the use of--
 (1) the TRICARE system for the performance of the
 examinations; and
 (2) each other alternative identified in the
 report.

SEC. 737. PORTABILITY OF STATE LICENSES FOR DEPARTMENT OF DEFENSE
 HEALTH CARE PROFESSIONALS.

 Section 1094 of title 10, United States Code, is amended--
 (1) by redesignating subsection (d) as subsection
 (e); and
 (2) by inserting after subsection (c) the following
 new subsection:
 ``(d)(1) Notwithstanding any law regarding the licensure of
health care providers, a health-care professional described in
paragraph (2) may practice the health profession or professions
of the health-care professional in any State, the District of
Columbia, or a Commonwealth, territory, or possession of the
United States, regardless of whether the practice occurs in a
health care facility of the Department of Defense, a civilian
facility affiliated with the Department of Defense, or any
other location authorized by the Secretary of Defense .
 ``(2) A health-care professional referred to in paragraph
(1) is a member of the armed forces who--
 ``(A) has a current license to practice medicine,
 osteopathic medicine, dentistry, or another health
 profession; and
 ``(B) is performing authorized duties for the
 Department of Defense.''.

SEC. 738. STANDARD FORM AND REQUIREMENTS REGARDING CLAIMS FOR PAYMENT
 FOR SERVICES.

 (a) Clarification of Existing Requirements.--Section 1106
of title 10, United States Code, is amended to read as follows:

``Sec. 1106. Submittal of claims: standard form; time limits

 ``(a) Standard Form.--The Secretary of Defense, after
consultation with the other administering Secretaries, shall
prescribe by regulation a standard form for the submission of
claims for the payment of health care services provided under
this chapter.
 ``(b) Time for Submission.--A claim for payment for
services provided under this chapter shall be submitted as
provided in such regulations not later than one year after the
services are provided.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of chapter 55 of title 10, United States Code, is
amended by striking out the item relating to section 1106 and
inserting in lieu thereof the following new item:

``1106. Submittal of claims: standard form; time limits.''.

SEC. 739. CHIROPRACTIC HEALTH CARE DEMONSTRATION PROGRAM.

 (a) Two-Year Extension.--Subsection (b) of section 731 of
the National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 10 U.S.C. 1092 note) is amended by
striking out ``1997'' and inserting in lieu thereof ``1999''.
 (b) Expansion to at Least Three Additional Treatment
Facilities.--Subsection (a)(2)(A) of such section is amended by
striking out ``not less than 10'' and inserting in lieu thereof
``the National Naval Medical Center, the Walter Reed Army
Medical Center, and not less than 11 other''.
 (c) Reports.--Subsection (c) of such section is amended--
 (1) by striking paragraph (3); and
 (2) by adding at the end the following new
 paragraphs:
 ``(3) Not later than January 30, 1998, the Secretary of
Defense shall submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives a report that identifies the additional
treatment facilities designated to furnish chiropractic care
under the program that were not so designated before the report
required by paragraph (1) was prepared, together with the plan
for the conduct of the program at the additional treatment
facilities.
 ``(4) Not later than May 1, 1998, the Secretary of Defense
shall modify the plan for evaluating the program submitted
pursuant to paragraph (2) in order to provide for the
evaluation of the program at all of the designated treatment
facilities under the program, including the treatment
facilities referred to in paragraph (3).
 ``(5) Not later than May 1, 2000, the Secretary shall
submit to the committees referred to in paragraph (3) a final
report in accordance with the plan submitted pursuant to
paragraph (2).''.

 Subtitle E--Other Matters

SEC. 741. CONTINUED ADMISSION OF CIVILIANS AS STUDENTS IN PHYSICIAN
 ASSISTANT TRAINING PROGRAM OF ARMY MEDICAL
 DEPARTMENT.

 (a) Civilian Attendance.--(1) Chapter 407 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 4416. Academy of Health Sciences: admission of civilians in
 physician assistant training program

 ``(a) In General.--The Secretary of the Army may, pursuant
to an agreement entered into with an accredited institution of
higher education--
 ``(1) permit students of the institution to attend
 the didactic portion of the physician assistant
 training program conducted by the Army Medical
 Department at the Academy of Health Sciences at Fort
 Sam Houston, Texas; and
 ``(2) accept from the institution academic services
 to support the physician assistant training program at
 the Academy.
 ``(b) Agreement for Exchange of Services.--An agreement
entered into with an institution of higher education under this
section shall require the institution, in exchange for services
provided under paragraph (1) of subsection (a), to provide
academic services described in paragraph (2) of such subsection
that the Secretary and authorized representatives of the
institution consider appropriate.
 ``(c) Selection of Students.--In consultation with the
authorized representatives of the institution of higher
education concerned, the Secretary shall prescribe the
qualifications and methods of selection for students of the
institution to receive instruction at the Academy under this
section. The qualifications shall be comparable to those
generally required for admission to the physician assistant
training program at the Academy.
 ``(d) Rules of Attendance.--Except as the Secretary
determines necessary, a student who receives instruction at the
Academy under this section shall be subject to the same
regulations governing attendance, discipline, discharge, and
dismissal as apply to other persons attending the Academy.
 ``(e) Limitations.--The Secretary shall ensure the
following:
 ``(1) That the Army Medical Department, in carrying
 out an agreement under this section, does not incur
 costs in excess of the costs that the department would
 incur to obtain, by means other than the agreement,
 academic services that are comparable to those provided
 by the institution pursuant to the agreement.
 ``(2) That attendance of civilian students at the
 Academy under this section does not cause a decrease in
 the number of members of the armed forces enrolled in
 the physician assistant training program at the
 Academy.
 ``(f) Annual Report.--(1) Each year, the Secretary shall
submit to Congress a report on the exchange of services under
this section during the year. The report shall contain the
following:
 ``(A) The number of civilian students who receive
 instruction at the Academy under this section.
 ``(B) An assessment of the benefits derived by the
 United States.
 ``(2) Reports are required under paragraph (1) only for
years during which an agreement is in effect under this
section.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``4416. Academy of Health Sciences: admission of civilians in physician
 assistant training program.''.

 (b) Effect on Existing Demonstration Program.--An agreement
entered into under the demonstration program for the admission
of civilians as physician assistant students at the Academy of
Health Sciences, Fort Sam Houston, Texas, established pursuant
to section 732 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2810) shall be
treated as an agreement entered into under section 4416 of
title 10, United States Code (as added by subsection (a)). The
agreement may be extended in such manner and for such period as
the parties to the agreement consider appropriate consistent
with section 4416.

SEC. 742. PAYMENT FOR EMERGENCY HEALTH CARE OVERSEAS FOR MILITARY AND
 CIVILIAN PERSONNEL OF THE ON-SITE INSPECTION
 AGENCY.

 (a) Payment of Costs.--The Secretary of Defense may pay the
costs of any emergency health care that--
 (1) is needed by a member of the Armed Forces,
 civilian employee of the Department of Defense, or
 civilian employee of a contractor operating under a
 contract with the Department of Defense while the
 member or employee is performing temporary or permanent
 duty with the On-Site Inspection Agency outside the
 United States; and
 (2) is furnished to such person during fiscal year
 1998 by a source outside the United States.
 (b) Funding.--Funds authorized to be appropriated for the
expenses of the On-Site Inspection Agency for fiscal year 1998
by this Act shall be available to cover payments for emergency
health care provided under subsection (a).

SEC. 743. AUTHORITY FOR AGREEMENT FOR USE OF MEDICAL RESOURCE FACILITY,
 ALAMOGORDO, NEW MEXICO.

 (a) Authority.--(1) The Secretary of the Air Force may
enter into an agreement with Gerald Champion Hospital,
Alamogordo, New Mexico, under which the Secretary may furnish
health care services to eligible individuals in a medical
resource facility in Alamogordo, New Mexico, that is
constructed and equipped, in part, using funds provided by the
Secretary under the agreement.
 (2) For purposes of this section:
 (A) The term ``eligible individual'' means any
 individual eligible for medical and dental care under
 chapter 55 of title 10, United States Code, including
 any member of the uniformed services entitled to such
 care under section 1074(a) of that title.
 (B) The terms ``medical resource facility'' and
 ``facility'' mean the medical resource facility to be
 constructed and equipped pursuant to the agreement
 authorized by paragraph (1).
 (C) The term ``Hospital'' means Gerald Champion
 Hospital, Alamogordo, New Mexico.
 (b) Content of Agreement.--Any agreement entered into under
subsection (a) shall specify, at a minimum, the following:
 (1) The relationship between the Hospital and the
 Secretary of the Air Force in the provision of health
 care services to eligible individuals in the medical
 resource facility, including--
 (A) whether or not the Secretary and the
 Hospital are to use and administer the facility
 jointly or independently; and
 (B) under what circumstances the Hospital
 is to act as a provider of health care services
 under the managed care option of the TRICARE
 program known as TRICARE Prime.
 (2) Matters relating to the administration of the
 agreement, including--
 (A) the duration of the agreement;
 (B) the rights and obligations of the
 Secretary and the Hospital under the agreement,
 including any contracting or grievance
 procedures applicable under the agreement;
 (C) the types of care to be provided to
 eligible individuals under the agreement,
 including the cost to the Department of the Air
 Force of providing the care to eligible
 individuals during the term of the agreement;
 (D) the access of Air Force medical
 personnel to the facility under the agreement;
 (E) the rights and responsibilities of the
 Secretary and the Hospital upon termination of
 the agreement; and
 (F) any other matters jointly identified by
 the Secretary and the Hospital.
 (3) The nature of the arrangement between the
 Secretary and the Hospital with respect to the
 ownership of the facility and any property under the
 agreement, including--
 (A) the nature of that arrangement while
 the agreement is in force;
 (B) the nature of that arrangement upon
 termination of the agreement; and
 (C) any requirement for reimbursement of
 the Secretary by the Hospital as a result of
 the arrangement upon termination of the
 agreement.
 (4) The amount of the funds made available under
 subsection (c) that the Secretary will contribute for
 the construction and equipping of the facility.
 (5) Any conditions or restrictions relating to the
 construction, equipping, or use of the facility.
 (c) Availability of Funds for Construction and Equipping of
Facility.--(1) Of the amount authorized to be appropriated
pursuant to section 301(4) for operation and maintenance for
the Air Force, not more than $7,000,000 may be used by the
Secretary of the Air Force to make a contribution toward the
construction and equipping of the medical resource facility in
the event that the Secretary enters into the agreement
authorized by subsection (a). Notwithstanding any other
provision of law, the Secretary may not use other sources of
funds to make a contribution toward the construction or
equipping of the facility.
 (2) Notwithstanding subsection (b)(3) regarding the
ownership and reimbursement issues to be addressed in the
agreement authorized by subsection (a), the Secretary may not
contribute funds made available under paragraph (1) toward the
construction and equipping of the facility unless the agreement
requires, in exchange for the contribution, that the Hospital
provide health care services to eligible individuals without
charge to the Secretary or at a reduced rate. The value of the
services provided by the Hospital shall be at least equal to
the amount of the contribution made by the Secretary, and the
Hospital shall complete the provision of services equal in
value to the Secretary's contribution within seven years after
the facility becomes operational. The provision of additional
discounted services to be provided by the Hospital shall be
included in the agreement. The value and types of services to
be provided by the Hospital shall be negotiated in accordance
with principles of resource-sharing agreements under the
TRICARE program.
 (d) Notice and Wait.--The Secretary of the Air Force may
not enter into the agreement authorized by subsection (a) until
90 days after the Secretary of Defense submits to the
congressional defense committees the report required by
subsection (e).
 (e) Report on Proposed Agreement.--The Secretary of Defense
shall submit to Congress a report containing an analysis of,
and recommendations regarding, the agreement proposed to be
entered into under subsection (a), in particular, the
implications of the agreement on regional health care costs and
its effect on implementation of the TRICARE program in the
region. The report shall also include a copy of the agreement,
the results of a cost-benefit analysis conducted by the
Secretary of the Air Force with respect to the agreement, and
such other information with respect to the agreement as the
Secretary of Defense and the Secretary of the Air Force
considers appropriate. The cost-benefit analysis shall consider
the effects of the agreement on operation and maintenance and
military construction requirements at Holloman Air Force Base,
New Mexico.
 (f) Subsequent Reports.--If the Secretary of the Air Force
enters into the agreement authorized by subsection (a), the
Secretary shall submit to Congress an annual report containing
a revised cost-benefit analysis of the consequences of the
agreement as in effect during the year covered by the report,
including a full accounting of any cost savings realized by the
Department of the Air Force as a result of the agreement. A
report shall be submitted for each year in which the agreement
is in effect or until the Hospital provides the full value of
health care services required under subsection (c)(2),
whichever occurs first.

SEC. 744. DISCLOSURES OF CAUTIONARY INFORMATION ON PRESCRIPTION
 MEDICATIONS.

 (a) Regulations Required.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of
Defense, in consultation with the administering Secretaries
referred to in section 1073 of title 10, United States Code,
shall prescribe regulations to require each source described in
subsection (d) that dispenses a prescription medication to a
beneficiary under chapter 55 of such title to include with the
medication the written cautionary information required by
subsection (b).
 (b) Information To Be Disclosed.--Information required to
be disclosed about a medication under the regulations shall
include appropriate cautions about usage of the medication,
including possible side effects and potentially hazardous
interactions with foods.
 (c) Form of Information.--The regulations shall require
that information be furnished in a form that, to the maximum
extent practicable, is easily read and understood.
 (d) Covered Sources.--The regulations shall apply to the
following:
 (1) Pharmacies and any other dispensers of
 prescription medications in medical facilities of the
 uniformed services.
 (2) Sources of prescription medications under any
 mail order pharmaceuticals program provided by any of
 the administering Secretaries under chapter 55 of title
 10, United States Code.
 (3) Pharmacies paid under the Civilian Health and
 Medical Program of the Uniformed Services (including
 the TRICARE program).
 (4) Pharmacies, and any other pharmaceutical
 dispensers, of designated providers referred to in
 section 721(5) of the National Defense Authorization
 Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
 2593; 10 U.S.C. 1073 note).

SEC. 745. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.

 (a) Competitive Procurement Required.--Beginning not later
than October 1, 1998, the Secretary of Defense shall
competitively procure from private-sector sources, or other
sources outside of the Department of Defense, all ophthalmic
services related to the provision of single vision and
multivision eyeware for members of the Armed Forces, retired
members, and certain covered beneficiaries under chapter 55 of
title 10, United States Code, who would otherwise receive such
ophthalmic services through the Department of Defense.
 (b) Exception.--Subsection (a) shall not apply to the
extent that the Secretary of Defense determines that the use of
sources within the Department of Defense to provide such
ophthalmic services--
 (1) is necessary to meet the readiness requirements
 of the Armed Forces; or
 (2) is more cost effective.
 (c) Completion of Existing Orders.--Subsection (a) shall
not apply to orders for ophthalmic services received on or
before September 30, 1998.

SEC. 746. COMPTROLLER GENERAL STUDY OF ADEQUACY AND EFFECT OF MAXIMUM
 ALLOWABLE CHARGES FOR PHYSICIANS UNDER CHAMPUS.

 (a) Study Required.--The Comptroller General shall conduct
a study regarding the adequacy of the maximum allowable charges
for physicians established under the Civilian Health and
Medical Program of the Uniformed Services (CHAMPUS) and the
effect of such charges on the participation of physicians in
CHAMPUS. The study shall include an evaluation of the
following:
 (1) The methodology used by the Secretary of
 Defense to establish maximum allowable charges for
 physicians under CHAMPUS, and whether such methodology
 conforms to the requirements of section 1079(h) of
 title 10, United States Code.
 (2) The differences between the established charges
 under CHAMPUS and reimbursement rates for similar
 services under title XVIII of the Social Security Act
 and other health care programs.
 (3) The basis for physician complaints that the
 CHAMPUS established charges are too low.
 (4) The difficultly of CHAMPUS in ensuring
 physician compliance with the CHAMPUS established
 charges in the absence of legal mechanisms to enforce
 compliance, and the effect of noncompliance on patient
 out-of-pocket expenses.
 (5) The effect of the established charges under
 CHAMPUS on the participation of physicians in CHAMPUS,
 and the extent and success of Department of Defense
 efforts to increase physician participation in areas
 with low participation rates.
 (b) Submission of Report.--Not later than March 1, 1998,
the Comptroller General shall submit to Congress a report
containing the results of the study required by subsection (a).

SEC. 747. COMPTROLLER GENERAL STUDY OF DEPARTMENT OF DEFENSE PHARMACY
 PROGRAMS.

 (a) Study.--Not later than March 31, 1998, the Comptroller
General shall submit to Congress a study evaluating the
pharmacy programs of the Department of Defense. The study shall
examine the impact of such pharmacy programs on the aggregate
cost, quality, and accessibility of health care provided to
covered beneficiaries under chapter 55 of title 10, United
States Code, and shall include an examination of the following:
 (1) The merits and feasibility of establishing a
 uniform formulary for military treatment facility
 pharmacies and civilian contractor pharmacy benefit
 administrators.
 (2) The reasons that military treatment facilities
 deny covered beneficiaries access to pharmacy care and
 shift such beneficiaries to other sources of pharmacy
 care.
 (3) The merits and feasibility of using private
 sector cost control mechanisms implemented by
 authorized civilian contractors in the Department of
 Defense medical programs, and the existence of any
 barriers to the use of such mechanisms, including
 factors that may undermine the incentives of such
 contractors to optimize treatment outcomes in managing
 the care of covered beneficiaries without exceeding
 budgeted resources.
 (4) The cost impacts, if any, of the use of
 commercial managed care methods of furnishing
 pharmaceuticals to covered beneficiaries by TRICARE
 program contractors instead of procuring
 pharmaceuticals at discounted prices pursuant to
 section 8126 of title 38, United States Code.
 (5) The existence of options for increasing the
 discounts available to TRICARE program contractors
 without undermining controls for preventing diversion
 of items procured by the Department of Defense to
 nonmilitary populations.
 (b) Response to Study.--Not later than 90 days after the
Comptroller General submits to Congress the study required by
subsection (a), the Secretary of Defense shall submit to
Congress a report on the feasibility and advisability of
implementing changes to the pharmacy programs of the Department
of Defense based on the findings and conclusions of the study.

SEC. 748. COMPTROLLER GENERAL STUDY OF NAVY GRADUATE MEDICAL EDUCATION
 PROGRAM.

 (a) Study Required.--The Comptroller General shall conduct
a study to evaluate the validity of the recommendations made by
the Medical Education Policy Council of the Bureau of Medicine
and Surgery of the Navy regarding restructuring the graduate
medical education program of the Department of the Navy. The
study shall specifically address the Council's recommendations
relating to residency training conducted at Naval Medical
Center, Portsmouth, Virginia, and National Naval Medical
Center, Bethesda, Maryland.
 (b) Submission of Report.--Not later than March 1, 1998,
the Comptroller General shall submit to Congress and the
Secretary of the Navy a report containing the results of the
study required by subsection (a).
 (c) Moratorium on Restructuring.--Until the report required
by subsection (b) is submitted to Congress, the Secretary of
the Navy may not make any change in the types of residency
programs conducted under the Navy graduate medical education
program or the locations at which such residency programs are
conducted or otherwise restructure the Navy graduate medical
education program.

SEC. 749. STUDY OF EXPANSION OF PHARMACEUTICALS BY MAIL PROGRAM TO
 INCLUDE ADDITIONAL MEDICARE-ELIGIBLE COVERED
 BENEFICIARIES.

 Not later than six months after the date of the enactment
of this Act, the Secretary of Defense shall submit to Congress
a report regarding the feasibility and advisability of
expanding the category of persons eligible to participate in
the demonstration project for the purchase of prescription
pharmaceuticals by mail, as required by section 702(a) of the
National Defense Authorization Act for Fiscal Year 1993 (Public
Law 102-484; 10 U.S.C. 1079 note), to include persons referred
to in subsection (c) of section 1086 of title 10, United States
Code, who are covered by subsection (d)(1) of such section and
reside in the United States outside of the catchment area of a
medical treatment facility of the uniformed services.

SEC. 750. COMPTROLLER GENERAL STUDY OF REQUIREMENT FOR MILITARY MEDICAL
 FACILITIES IN NATIONAL CAPITAL REGION.

 (a) Study Required.--The Comptroller General shall conduct
a study to evaluate the requirements for Army, Navy, and Air
Force medical facilities in the National Capital Region (as
defined in section 2674(f)(2) of title 10, United States Code).
The study shall--
 (1) specifically address requirements with respect
 to geography, facilities, integrated residencies, and
 medical environments; and
 (2) provide specific recommendations with respect
 to how medical and health care provided by these
 facilities may be better coordinated to more
 efficiently serve, throughout the National Capital
 Region, members of the Armed Forces on active duty and
 covered beneficiaries under chapter 55 of title 10,
 United States Code.
 (b) Submission of Report.--Not later than six months after
the date of the enactment of this Act, the Comptroller General
shall submit to Congress and the Secretary of Defense a report
containing the results of the study required by subsection (a).

SEC. 751. REPORT ON POLICIES AND PROGRAMS TO PROMOTE HEALTHY LIFESTYLES
 FOR MEMBERS OF THE ARMED FORCES AND THEIR
 DEPENDENTS.

 (a) Report.--Not later than March 30, 1998, the Secretary
of Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report on the effectiveness of the
policies and programs of the Department of Defense intended to
promote healthy lifestyles for members of the Armed Forces and
their dependents.
 (b) Policies and Programs To Be Assessed.--The report under
subsection (a) shall include an assessment of the effectiveness
of the following:
 (1) Programs intended to educate members of the
 Armed Forces and their dependents about the potential
 health consequences of the use of alcohol and tobacco.
 (2) Policies of the commissaries, post exchanges,
 and service clubs, and for entertainment activities of
 the Department of Defense, relating to the sale and use
 of alcohol and tobacco.
 (3) Programs intended to provide support to members
 of the Armed Forces and their dependents who choose to
 reduce or eliminate their use of alcohol or tobacco.
 (4) Any other policies or programs intended to
 promote healthy lifestyles for members of the Armed
 Forces and their dependents.

SEC. 752. SENSE OF CONGRESS REGARDING QUALITY HEALTH CARE FOR RETIREES.

 (a) Findings.--Congress makes the following findings:
 (1) Many retired military personnel believe that
 they were promised lifetime health care in exchange for
 20 or more years of service.
 (2) Military retirees are the only Federal
 Government personnel who have been prevented from using
 their employer-provided health care at or after 65
 years of age.
 (3) Military health care has become increasingly
 difficult to obtain for military retirees as the
 Department of Defense reduces its health care
 infrastructure.
 (4) Military retirees deserve to have a health care
 program that is at least comparable with that of
 retirees from civilian employment by the Federal
 Government.
 (5) The availability of quality, lifetime health
 care is a critical recruiting incentive for the Armed
 Forces.
 (6) Quality health care is a critical aspect of the
 quality of life of the men and women serving in the
 Armed Forces.
 (b) Sense of Congress.--It is the sense of Congress that--
 (1) the United States has incurred a moral
 obligation to provide health care to members and former
 members of the Armed Forces who are entitled to retired
 or retainer pay (or its equivalent);
 (2) it is, therefore, necessary to provide quality,
 affordable health care to such retirees; and
 (3) Congress and the President should take steps to
 address the problems associated with the availability
 of health care for such retirees within two years after
 the date of the enactment of this Act.

 Subtitle F--Persian Gulf Illness

SEC. 761. DEFINITIONS.

 For purposes of this subtitle:
 (1) The term ``Gulf War illness'' means any one of
 the complex of illnesses and symptoms that might have
 been contracted by members of the Armed Forces as a
 result of service in the Southwest Asia theater of
 operations during the Persian Gulf War.
 (2) The term ``Persian Gulf War'' has the meaning
 given that term in section 101 of title 38, United
 States Code.
 (3) The term ``Persian Gulf veteran'' means an
 individual who served on active duty in the Armed
 Forces in the Southwest Asia theater of operations
 during the Persian Gulf War.
 (4) The term ``contingency operation'' has the
 meaning given that term in section 101(a) of title 10,
 United States Code, and includes a humanitarian
 operation, peacekeeping operation, or similar
 operation.

SEC. 762. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN GULF VETERANS.

 (a) Plan Required.--The Secretary of Defense and the
Secretary of Veterans Affairs, acting jointly, shall prepare a
plan to provide appropriate health care to Persian Gulf
veterans (and dependents eligible by law) who suffer from a
Gulf War illness.
 (b) Contents of Plan.--In preparing the plan, the
Secretaries shall--
 (1) use the presumptions of service connection and
 illness specified in paragraphs (1) and (2) of section
 721(d) of the National Defense Authorization Act for
 Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1074
 note) to determine the Persian Gulf veterans (and
 dependents eligible by law) who should be covered by
 the plan;
 (2) consider the need and methods available to
 provide health care services to Persian Gulf veterans
 who are no longer on active duty in the Armed Forces,
 such as Persian Gulf veterans who are members of the
 reserve components and Persian Gulf veterans who have
 been separated from the Armed Forces; and
 (3) estimate the costs to the Government of
 providing full or partial health care services under
 the plan to covered Persian Gulf veterans (and covered
 dependents eligible by law).
 (c) Follow-up Treatment.--The plan required by subsection
(a) shall specifically address the measures to be used to
monitor the quality, appropriateness, and effectiveness of, and
patient satisfaction with, health care services provided to
Persian Gulf veterans after their initial medical examination
as part of registration in the Persian Gulf War Veterans Health
Registry or the Comprehensive Clinical Evaluation Program.
 (d) Submission of Plan.--Not later than March 1, 1998, the
Secretaries shall submit to Congress the plan required by
subsection (a).

SEC. 763. COMPTROLLER GENERAL STUDY OF REVISED DISABILITY CRITERIA FOR
 PHYSICAL EVALUATION BOARDS.

 Not later than March 1, 1998, the Comptroller General shall
submit to Congress a study evaluating the revisions made by the
Secretary of Defense (as required by section 721(e) of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103-337; 10 U.S.C. 1074 note)) to the Physical Evaluation
Board criteria used to set disability ratings for members of
the Armed Forces who are no longer medically qualified for
continuation on active duty so as to ensure accurate disability
ratings related to a diagnosis of a Gulf War illness.

SEC. 764. MEDICAL CARE FOR CERTAIN RESERVES WHO SERVED IN SOUTHWEST
 ASIA DURING THE PERSIAN GULF WAR.

 (a) In General.--Chapter 55 of title 10, United States
Code, is amended by inserting after section 1074d the following
new section:

``Sec. 1074e. Medical care: certain Reserves who served in Southwest
 Asia during the Persian Gulf Conflict

 ``(a) Entitlement to Medical Care.--A member of the armed
forces described in subsection (b) is entitled to medical care
for a qualifying Persian Gulf symptom or illness to the same
extent and under the same conditions (other than the
requirement that the member be on active duty) as a member of a
uniformed service who is entitled to such care under section
1074(a) of this title.
 ``(b) Covered Members.--Subsection (a) applies to a member
of a reserve component who--
 ``(1) is a Persian Gulf veteran;
 ``(2) has a qualifying Persian Gulf symptom or
 illness; and
 ``(3) is not otherwise entitled to medical care for
 such symptom or illness under this chapter and is not
 otherwise eligible for hospital care and medical
 services for such symptom or illness under section 1710
 of title 38.
 ``(c) Definitions.--In this section:
 ``(1) The term `Persian Gulf veteran' means a
 member of the armed forces who served on active duty in
 the Southwest Asia theater of operations during the
 Persian Gulf Conflict.
 ``(2) The term `qualifying Persian Gulf symptom or
 illness' means, with respect to a member described in
 subsection (b), a symptom or illness--
 ``(A) that the member registered before
 September 1, 1997, in the Comprehensive
 Clinical Evaluation Program of the Department
 of Defense and that is presumed under section
 721(d) of the National Defense Authorization
 Act for Fiscal Year 1995 (10 U.S.C. 1074 note)
 to be a result of service in the Southwest Asia
 theater of operations during the Persian Gulf
 Conflict; or
 ``(B) that the member registered before
 September 1, 1997, in the Persian Gulf War
 Veterans Health Registry maintained by the
 Department of Veterans Affairs pursuant to
 section 702 of the Persian Gulf War Veterans'
 Health Status Act (38 U.S.C. 527 note).''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1074d the following new item:

``1074e. Medical care: certain Reserves who served in Southwest Asia
 during the Persian Gulf Conflict.''.

SEC. 765. IMPROVED MEDICAL TRACKING SYSTEM FOR MEMBERS DEPLOYED
 OVERSEAS IN CONTINGENCY OR COMBAT OPERATIONS.

 (a) System Required.--(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074e (as
added by section 764) the following new section:

``Sec. 1074f. Medical tracking system for members deployed overseas

 ``(a) System Required.--The Secretary of Defense shall
establish a system to assess the medical condition of members
of the armed forces (including members of the reserve
components) who are deployed outside the United States or its
territories or possessions as part of a contingency operation
(including a humanitarian operation, peacekeeping operation, or
similar operation) or combat operation.
 ``(b) Elements of System.--The system described in
subsection (a) shall include the use of predeployment medical
examinations and postdeployment medical examinations (including
an assessment of mental health and the drawing of blood
samples) to accurately record the medical condition of members
before their deployment and any changes in their medical
condition during the course of their deployment. The
postdeployment examination shall be conducted when the member
is redeployed or otherwise leaves an area in which the system
is in operation (or as soon as possible thereafter).
 ``(c) Recordkeeping.--The results of all medical
examinations conducted under the system, records of all health
care services (including immunizations) received by members
described in subsection (a) in anticipation of their deployment
or during the course of their deployment, and records of events
occurring in the deployment area that may affect the health of
such members shall be retained and maintained in a centralized
location to improve future access to the records.
 ``(d) Quality Assurance.--The Secretary of Defense shall
establish a quality assurance program to evaluate the success
of the system in ensuring that members described in subsection
(a) receive predeployment medical examinations and
postdeployment medical examinations and that the recordkeeping
requirements with respect to the system are met.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
1074e (as added by section 764) the following new item:

``1074f. Medical tracking system for members deployed overseas.''.

 (b) Report.--Not later than March 1, 1998, the Secretary of
Defense shall submit to Congress an analysis of the
administrative implications of establishing and administering
the medical tracking system required by section 1074f of
title10, United States Code, as added by subsection (a). The report
shall include, for fiscal year 1999 and the 5 successive fiscal years,
a separate analysis and specification of the projected costs and
operational considerations for each of the following required aspects
of the system:
 (1) Predeployment medical examinations.
 (2) Postdeployment medical examinations.
 (3) Recordkeeping.

SEC. 766. NOTICE OF USE OF INVESTIGATIONAL NEW DRUGS OR DRUGS
 UNAPPROVED FOR THEIR APPLIED USE.

 (a) Notice Requirements.--Chapter 55 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 1107. Notice of use of an investigational new drug or a drug
 unapproved for its applied use

 ``(a) Notice Required.--(1) Whenever the Secretary of
Defense requests or requires a member of the armed forces to
receive an investigational new drug or a drug unapproved for
its applied use, the Secretary shall provide the member with
notice containing the information specified in subsection (d).
 ``(2) The Secretary shall also ensure that health care
providers who administer an investigational new drug or a drug
unapproved for its applied use, or who are likely to treat
members who receive such a drug, receive the information
required to be provided under paragraphs (3) and (4) of
subsection (d).
 ``(b) Time of Notice.--The notice required to be provided
to a member under subsection (a)(1) shall be provided before
the investigational new drug or drug unapproved for its applied
use is first administered to the member, if practicable, but in
no case later than 30 days after the drug is first administered
to the member.
 ``(c) Form of Notice.--The notice required under subsection
(a)(1) shall be provided in writing unless the Secretary of
Defense determines that the use of written notice is
impractical because of the number of members receiving the
investigational new drug or drug unapproved for its applied
use, time constraints, or similar reasons. If the Secretary
provides notice under subsection (a)(1) in a form other than in
writing, the Secretary shall submit to Congress a report
describing the notification method used and the reasons for the
use of the alternative method.
 ``(d) Content of Notice.--The notice required under
subsection (a)(1) shall include the following:
 ``(1) Clear notice that the drug being administered
 is an investigational new drug or a drug unapproved for
 its applied use.
 ``(2) The reasons why the investigational new drug
 or drug unapproved for its applied use is being
 administered.
 ``(3) Information regarding the possible side
 effects of the investigational new drug or drug
 unapproved for its applied use, including any known
 side effects possible as a result of the interaction of
 such drug with other drugs or treatments being
 administered to the members receiving such drug.
 ``(4) Such other information that, as a condition
 of authorizing the use of the investigational new drug
 or drug unapproved for its applied use, the Secretary
 of Health and Human Services may require to be
 disclosed.
 ``(e) Records of Use.--The Secretary of Defense shall
ensure that the medical records of members accurately
document--
 ``(1) the receipt by members of any investigational
 new drug or drug unapproved for its applied use; and
 ``(2) the notice required by subsection (a)(1).
 ``(f) Definitions.--In this section:
 ``(1) The term `investigational new drug' means a
 drug covered by section 505(i) of the Federal Food,
 Drug, and Cosmetic Act (21 U.S.C. 355(i)).
 ``(2) The term `drug unapproved for its applied
 use' means a drug administered for a use not described
 in the approved labeling of the drug under section 505
 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
 355).''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1107. Notice of use of an investigational new drug or a drug
 unapproved for its applied use.''.

SEC. 767. REPORT ON PLANS TO TRACK LOCATION OF MEMBERS IN A THEATER OF
 OPERATIONS.

 Not later than March 1, 1998, the Secretary of Defense
shall submit to Congress a report containing a plan for
collecting and maintaining information regarding the daily
location of units of the Armed Forces, and to the extent
practicable individual members of such units, serving in a
theater of operations during a contingency operation or combat
operation.

SEC. 768. SENSE OF CONGRESS REGARDING THE DEPLOYMENT OF SPECIALIZED
 UNITS FOR DETECTING AND MONITORING CHEMICAL,
 BIOLOGICAL, AND SIMILAR HAZARDS IN A THEATER OF
 OPERATIONS.

 It is the sense of Congress that the Secretary of Defense,
in conjunction with the Chairman of the Joint Chiefs of Staff,
should take such actions as are necessary to ensure that the
units of the Armed Forces deployed in the theater of operations
for each contingency operation or combat operation include
specialized units with sufficient capability (including
personnel with the appropriate training and expertise, and the
appropriate equipment) to detect and monitor the presence of
chemical, biological, and similar hazards to which members of
the Armed Forces could be exposed in that theater during the
operation.

SEC. 769. REPORT ON EFFECTIVENESS OF RESEARCH EFFORTS REGARDING GULF
 WAR ILLNESSES.

 Not later than March 1, 1998, the Secretary of Defense
shall submit to Congress a report evaluating the effectiveness
of medical research initiatives regarding Gulf War illnesses.
The report shall address the following:
 (1) The type and effectiveness of previous research
 efforts, including the activities undertaken pursuant
 to section 743 of the National Defense Authorization
 Act for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C.
 1074 note), section 722 of the National Defense
 Authorization Act for Fiscal Year 1995 (Public Law 103-
 337; 10 U.S.C. 1074 note), and sections 270 and 271 of
 the National Defense Authorization Act for Fiscal Year
 1994 (Public Law 103-160; 107 Stat. 1613).
 (2) Recommendations regarding additional research
 regarding Gulf War illnesses, including research
 regarding the nature and causes of Gulf War illnesses
 and appropriate treatments for such illnesses.
 (3) The adequacy of Federal funding and the need
 for additional funding for medical research initiatives
 regarding Gulf War illnesses.

SEC. 770. PERSIAN GULF ILLNESS CLINICAL TRIALS PROGRAM.

 (a) Findings.--Congress finds the following:
 (1) There are many ongoing studies that investigate
 risk factors which may be associated with the health
 problems experienced by Persian Gulf veterans; however,
 there have been no studies that examine health outcomes
 and the effectiveness of the treatment received by such
 veterans.
 (2) The medical literature and testimony presented
 in hearings on Gulf War illnesses indicate that there
 are therapies, such as cognitive behavioral therapy,
 that have been effective in treating patients with
 symptoms similar to those seen in many Persian Gulf
 veterans.
 (b) Establishment of Program.--The Secretary of Defense and
the Secretary of Veterans Affairs, acting jointly, shall
establish a program of cooperative clinical trials at multiple
sites to assess the effectiveness of protocols for treating
Persian Gulf veterans who suffer from ill-defined or
undiagnosed conditions. Such protocols shall include a
multidisciplinary treatment model, of which cognitive
behavioral therapy is a component.
 (c) Funding.--Of the funds authorized to be appropriated in
section 201(1) for research, development, test, and evaluation
for the Army, the sum of $4,500,000 shall be available for
program element 62787A (medical technology) in the budget of
the Department of Defense for fiscal year 1998 to carry out the
clinical trials program established pursuant to subsection (b).

SEC. 771. SENSE OF CONGRESS CONCERNING GULF WAR ILLNESS.

 (a) Findings.--Congress makes the following findings:
 (1) Americans served in the Persian Gulf Conflict
 of 1991 in defense of vital national security interests
 of the United States.
 (2) It was known to United States intelligence and
 military commanders that biological and chemical agents
 were in theater throughout the conflict.
 (3) An undetermined amount of these agents were
 released into theater.
 (4) A large number of United States military
 veterans and allied veterans who served in the
 Southwest Asia theater of operations have been stricken
 with a variety of severe illnesses.
 (5) Previous efforts to discern the causes of those
 illnesses have been inadequate, and those illnesses are
 affecting the health of both veterans and their
 families.
 (b) Sense of Congress.--It is the sense of Congress that
all promising technology and treatments relating to Gulf War
illnesses should be fully explored and tested to facilitate
treatment for members of the Armed Forces and veterans who
served the United States in the Persian Gulf conflict and are
stricken with unexplainable illness.

 TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
 MATTERS

 Subtitle A--Amendments to General Contracting Authorities, Procedures,
 and Limitations

Sec. 801. Expansion of authority to enter into contracts crossing fiscal
 years to all severable service contracts not exceeding a year.
Sec. 802. Vesting of title in the United States under contracts paid
 under progress payment arrangements or similar arrangements.
Sec. 803. Restriction on undefinitized contract actions.
Sec. 804. Limitation and report on payment of restructuring costs under
 defense contracts.
Sec. 805. Increased price limitation on purchases of right-hand drive
 vehicles.
Sec. 806. Multiyear procurement contracts.
Sec. 807. Audit of procurement of military clothing and clothing-related
 items by military installations in the United States.
Sec. 808. Limitation on allowability of compensation for certain
 contractor personnel.
Sec. 809. Elimination of certification requirement for grants.
Sec. 810. Repeal of limitation on adjustment of shipbuilding contracts.
Sec. 811. Item-by-item and country-by-country waivers of domestic source
 limitations.

 Subtitle B--Acquisition Assistance Programs

Sec. 821. One-year extension of pilot mentor-protege program.
Sec. 822. Test program for negotiation of comprehensive subcontracting
 plans.

 Subtitle C--Administrative Provisions

Sec. 831. Retention of expired funds during the pendency of contract
 litigation.
Sec. 832. Protection of certain information from disclosure.
Sec. 833. Unit cost reports.
Sec. 834. Plan for providing contracting information to general public
 and small businesses.
Sec. 835. Two-year extension of crediting of certain purchases toward
 meeting subcontracting goals.

 Subtitle D--Other Matters

Sec. 841. Repeal of certain acquisition requirements and reports.
Sec. 842. Use of major range and test facility installations by
 commercial entities.
Sec. 843. Requirement to develop and maintain list of firms not eligible
 for defense contracts.
Sec. 844. Sense of Congress regarding allowability of costs of employee
 stock ownership plans.
Sec. 845. Expansion of personnel eligible to participate in
 demonstration project relating to acquisition workforce.
Sec. 846. Time for submission of annual report relating to Buy American
 Act.
Sec. 847. Repeal of requirement for contractor guarantees on major
 weapon systems.
Sec. 848. Requirements relating to micro-purchases.
Sec. 849. Promotion rate for officers in an acquisition corps.
Sec. 850. Use of electronic commerce in Federal procurement.
Sec. 851. Conformance of policy on performance based management of
 civilian acquisition programs with policy established for
 defense acquisition programs.
Sec. 852. Modification of process requirements for the solutions-based
 contracting pilot program.
Sec. 853. Guidance and standards for defense acquisition workforce
 training requirements.
Sec. 854. Study and report to Congress assessing dependence on foreign
 sources for resistors and capacitors.
Sec. 855. Department of Defense and Federal Prison Industries joint
 study.

Subtitle A--Amendments to General Contracting Authorities, Procedures,
 and Limitations

SEC. 801. EXPANSION OF AUTHORITY TO ENTER INTO CONTRACTS CROSSING
 FISCAL YEARS TO ALL SEVERABLE SERVICE CONTRACTS NOT
 EXCEEDING A YEAR.

 (a) Expanded Authority.--Section 2410a of title 10, United
States Code, is amended to read as follows:

``Sec. 2410a. Severable service contracts for periods crossing fiscal
 years

 ``(a) Authority.--The Secretary of Defense, the Secretary
of a military department, or the Secretary of Transportation
with respect to the Coast Guard when it is not operating as a
service in the Navy, may enter into a contract for procurement
of severable services for a period that begins in one fiscal
year and ends in the next fiscal year if (without regard to any
option to extend the period of the contract) the contract
period does not exceed one year.
 ``(b) Obligation of Funds.--Funds made available for a
fiscal year may be obligated for the total amount of a contract
entered into under the authority of subsection (a).''.
 (b) Clerical Amendment.--The item relating to such section
in the table of sections at the beginning of chapter 141 of
such title is amended to read as follows:

``2410a. Severable service contracts for periods crossing fiscal
 years.''.

SEC. 802. VESTING OF TITLE IN THE UNITED STATES UNDER CONTRACTS PAID
 UNDER PROGRESS PAYMENT ARRANGEMENTS OR SIMILAR
 ARRANGEMENTS.

 Section 2307 of title 10, United States Code, is amended--
 (1) by redesignating subsection (h) as subsection
 (i); and
 (2) by inserting after subsection (g) the following
 new subsection (h):
 ``(h) Vesting of Title in the United States.--If a contract
paid by a method authorized under subsection (a)(1) provides
for title to property to vest in the United States, the title
to the property shall vest in accordance with the terms of the
contract, regardless of any security interest in the property
that is asserted before or after the contract is entered
into.''.

SEC. 803. RESTRICTION ON UNDEFINITIZED CONTRACT ACTIONS.

 (a) Applicability of Waiver Authority to Humanitarian or
Peacekeeping Operations.--Section 2326(b)(4) of title 10,
United States Code, is amended to read as follows:
 ``(4) The head of an agency may waive the provisions of
this subsection with respect to a contract of that agency if
that head of an agency determines that the waiver is necessary
in order to support any of the following operations:
 ``(A) A contingency operation.
 ``(B) A humanitarian or peacekeeping operation.''.
 (b) Humanitarian or Peacekeeping Operation Defined.--
Section 2302(7) of such title is amended--
 (1) by striking out ``(7)(A)'' and inserting in
 lieu thereof ``(7)''; and
 (2) by striking out ``(B) In subparagraph (A),
 the'' and inserting in lieu thereof ``(8) The''.

SEC. 804. LIMITATION AND REPORT ON PAYMENT OF RESTRUCTURING COSTS UNDER
 DEFENSE CONTRACTS.

 (a) In General.--(1) Chapter 137 of title 10, United States
Code, is amended by inserting after section 2324 the following
new section:

``Sec. 2325. Restructuring costs

 ``(a) Limitation on Payment of Restructuring Costs.--(1)
The Secretary of Defense may not pay, under section 2324 of
this title, a defense contractor for restructuring costs
associated with a business combination of the contractor unless
the Secretary determines in writing either--
 ``(A) that the amount of projected savings for the
 Department of Defense associated with the restructuring
 will be at least twice the amount of the costs allowed;
 or
 ``(B) that the amount of projected savings for the
 Department of Defense associated with the restructuring
 will exceed the amount of the costs allowed and that
 the business combination will result in the
 preservation of a critical capability that otherwise
 might be lost to the Department.
 ``(2) The Secretary may not delegate the authority to make
a determination under paragraph (1) to an official of the
Department of Defense below the level of an Assistant Secretary
of Defense.
 ``(b) Report.--Not later than March 1 in each of 1998,
1999, 2000, 2001, and 2002, the Secretary of Defense shall
submit to Congress a report that contains, with respect to
business combinations occurring on or after August 15, 1994,
the following:
 ``(1) For each defense contractor to which the
 Secretary has paid, under section 2324 of this title,
 restructuring costs associated with a business
 combination, a summary of the following:
 ``(A) An estimate of the amount of savings
 for the Department of Defense associated with
 the restructuring that has been realized as of
 the end of the preceding calendar year.
 ``(B) An estimate of the amount of savings
 for the Department of Defense associated with
 the restructuring that is expected to be
 achieved on defense contracts.
 ``(2) An identification of any business combination
 for which the Secretary has paid restructuring costs
 under section 2324 of this title during the preceding
 calendar year and, for each such business combination--
 ``(A) the supporting rationale for allowing
 such costs;
 ``(B) factual information associated with
 the determination made under subsection (a)
 with respect to such costs; and
 ``(C) a discussion of whether the business
 combination would have proceeded without the
 payment of restructuring costs by the
 Secretary.
 ``(3) For business combinations of major defense
 contractors that took place during the year preceding
 the year of the report--
 ``(A) an assessment of any potentially
 adverse effects that the business combinations
 could have on competition for Department of
 Defense contracts (including potential
 horizontal effects, vertical effects, and
 organizational conflicts of interest), the
 national technology and industrial base, or
 innovation in the defense industry; and
 ``(B) the actions taken to mitigate the
 potentially adverse effects.
 ``(c) Definition.--In this section, the term `business
combination' includes a merger or acquisition.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2324
the following new item:

``2325. Restructuring costs.''.

 (b) GAO Reports.--(1) Not later than April 1, 1998, the
Comptroller General shall--
 (A) in consultation with appropriate officials in
 the Department of Defense--
 (i) identify major market areas affected by
 business combinations of defense contractors
 since January 1, 1990; and
 (ii) develop a methodology for determining
 the savings from business combinations of
 defense contractors on the prices paid on
 particular defense contracts; and
 (B) submit to the congressional defense committees
 a report describing, for each major market area
 identified pursuant to subparagraph (A)(i), the changes
 in numbers of businesses competing for major defense
 contracts since January 1, 1990.
 (2) Not later than December 1, 1998, the Comptroller
General shall submit to the congressional defense committees a
report containing the following:
 (A) Updated information on--
 (i) restructuring costs of business
 combinations paid by the Department of Defense
 pursuant to certifications under section 818 of
 the National Defense Authorization Act for
 Fiscal Year 1995, and
 (ii) savings realized by the Department of
 Defense as a result of the business
 combinations for which the payment of
 restructuring costs was so certified.
 (B) An assessment of the savings from business
 combinations of defense contractors on the prices paid
 on a meaningful sample of defense contracts, determined
 in accordance with the methodology developed pursuant
 to paragraph (1)(A)(ii), as well as a description of
 the methodology.
 (C) Any recommendations that the Comptroller
 General considers appropriate.
 (3) In this subsection, the term ``business combination''
has the meaning given that term in section 2325(c) of title 10,
United States Code, as added by subsection (a).
 (c) Effective Date.--Section 2325(a) of title 10, United
States Code, as added by subsection (a), shall apply with
respect to business combinations that occur after the date of
the enactment of this Act.
 (d) Repeal of Superseded Provisions.--Subsections (a) and
(g)(3) of section 818 of the National Defense Authorization Act
for Fiscal Year 1995 (10 U.S.C. 2324 note) are repealed.

SEC. 805. INCREASED PRICE LIMITATION ON PURCHASES OF RIGHT-HAND DRIVE
 VEHICLES.

 Section 2253(a)(2) of title 10, United States Code, is
amended by striking out ``$12,000'' and inserting in lieu
thereof ``$30,000''.

SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS.

 (a) Requirement for Authorization by Law in Acts Other Than
Appropriations Acts.--(1) Subsection (i) of section 2306b of
title 10, United States Code, is amended by adding at the end
the following new paragraph:
 ``(3) In the case of the Department of Defense, a multiyear
contract in an amount equal to or greater than $500,000,000 may
not be entered into for any fiscal year under this section
unless the contract is specifically authorized by law in an Act
other than an appropriations Act.''.
 (2) Paragraph (3) of section 2306b(i) of title 10, United
States Code, as added by paragraph (1), shall not apply with
respect to a contract authorized by law before the date of the
enactment of this Act.
 (b) Codification of Annual Recurring Multiyear Procurement
Requirements.--(1) Such section is further amended by adding at
the end the following new subsection:
 ``(l) Various Additional Requirements With Respect to
Multiyear Defense Contracts.--(1)(A) The head of an agency may
not initiate a contract described in subparagraph (B) unless
the congressional defense committees are notified of the
proposed contract at least 30 days in advance of the award of
the proposed contract.
 ``(B) Subparagraph (A) applies to the following contracts:
 ``(i) A multiyear contract--
 ``(I) that employs economic order quantity
 procurement in excess of $20,000,000 in any one
 year of the contract; or
 ``(II) that includes an unfunded contingent
 liability in excess of $20,000,000.
 ``(ii) Any 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.
 ``(2) The head of an agency may not 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.
 ``(3) The head of an agency may not initiate a multiyear
procurement contract for any system (or component thereof) if
the value of the multiyear contract would exceed $500,000,000
unless authority for the contract is specifically provided in
an appropriations Act.
 ``(4) The head of an agency may not terminate a multiyear
procurement contract until 10 days after the date on which
notice of the proposed termination is provided to the
congressional defense committees.
 ``(5) The execution of multiyear contracting authority
shall require the use of a present value analysis to determine
lowest cost compared to an annual procurement.
 ``(6) This subsection does not apply to the National
Aeronautics and Space Administration or to the Coast Guard.
 ``(7) In this subsection, the term `congressional defense
committees' means the following:
 ``(A) The Committee on Armed Services of the Senate
 and the Subcommittee on Defense of the Committee on
 Appropriations of the Senate.
 ``(B) The Committee on National Security of the
 House of Representatives and the Subcommittee on
 National Security of the Committee on Appropriations of
 the House of Representatives.''.
 (2) The amendment made by paragraph (1) shall take effect
on October 1, 1998.
 (c) Technical and Conforming Amendments.--Such section is
further amended as follows:
 (1) Subsection (a) is amended--
 (A) by striking out ``finds--'' in the
 matter preceding paragraph (1) and inserting in
 lieu thereof ``finds each of the following:'';
 (B) by capitalizing the initial letter of
 the first word in each of paragraphs (1)
 through (6);
 (C) by striking out the semicolon at the
 end of paragraphs (1) through (4) and inserting
 in lieu thereof a period; and
 (D) by striking out ``; and'' at the end of
 paragraph (5) and inserting in lieu thereof a
 period.
 (2) Subsection (d)(1) is amended by striking out
 ``paragraph (1)'' and inserting in lieu thereof
 ``subsection (a)''.
 (3) Subsection (i)(1) is amended by striking
 ``five-year'' and inserting in lieu thereof ``future-
 years''.

SEC. 807. AUDIT OF PROCUREMENT OF MILITARY CLOTHING AND CLOTHING-
 RELATED ITEMS BY MILITARY INSTALLATIONS IN THE
 UNITED STATES.

 (a) Audit Requirement.--Not later than September 30, 1998,
the Inspector General of the Department of Defense shall
perform an audit of purchases of military clothing and
clothing-related items in excess of the micro-purchase
threshold by military installations during fiscal years 1996
and 1997 to determine the extent to which such installations
procured military clothing and clothing-related items in
violation of the Buy American Act (41 U.S.C. 10a et seq.)
during those fiscal years.
 (b) Installations To Be Audited.--The audit under
subsection (a)--
 (1) shall include an audit of the procurement of
 military clothing and clothing-related items by a
 military installation of each of the Army, Navy, Air
 Force, and Marine Corps; and
 (2) shall not cover procurements of clothing and
 clothing-related items by the Defense Logistics Agency.
 (c) Definition.--The term ``micro-purchase threshold'' has
the meaning provided by section 32(f) of the Office of Federal
Procurement Policy Act (41 U.S.C. 428(f)).
 (d) Report.--Not later than October 31, 1998, the Inspector
General of the Department of Defense shall submit to Congress a
report on the results of the audit performed under subsection
(a).

SEC. 808. LIMITATION ON ALLOWABILITY OF COMPENSATION FOR CERTAIN
 CONTRACTOR PERSONNEL.

 (a) Certain Compensation Not Allowable as Costs Under
Defense Contracts.--(1) Subsection (e)(1) of section 2324 of
title 10, United States Code, is amended by adding at the end
the following:
 ``(P) Costs of compensation of senior executives of
 contractors for a fiscal year, regardless of the
 contract funding source, to the extent that such
 compensation exceeds the benchmark compensation amount
 determined applicable for the fiscal year by the
 Administrator for Federal Procurement Policy under
 section 39 of the Office of Federal Procurement Policy
 Act (41 U.S.C. 435).''.
 (2) Subsection (l) of such section is amended by adding at
the end the following:
 ``(4) The term `compensation', for a year, means
 the total amount of wages, salary, bonuses and deferred
 compensation for the year, whether paid, earned, or
 otherwise accruing, as recorded in an employer's cost
 accounting records for the year.
 ``(5) The term `senior executive', with respect to
 a contractor, means--
 ``(A) the chief executive officer of the
 contractor or any individual acting in a
 similar capacity for the contractor;
 ``(B) the four most highly compensated
 employees in management positions of the
 contractor other than the chief executive
 officer; and
 ``(C) in the case of a contractor that has
 components which report directly to the
 contractor's headquarters, the five most highly
 compensated employees in management positions
 at each such component.
 ``(6) The term `fiscal year' means a fiscal year
 established by a contractor for accounting purposes.''.
 (b) Certain Compensation Not Allowable as Costs Under Non-
Defense Contracts.--(1) Subsection (e)(1) of section 306 of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 256) is amended by adding at the end the following:
 ``(P) Costs of compensation of senior executives of
 contractors for a fiscal year, regardless of the
 contract funding source, to the extent that such
 compensation exceeds the benchmark compensation amount
 determined applicable for the fiscal year by the
 Administrator for Federal Procurement Policy under
 section 39 of the Office of Federal Procurement Policy
 Act (41 U.S.C. 435).''.
 (2) Such section is further amended by adding at the end
the following:
 ``(m) Other Definitions.--In this section:
 ``(1) The term `compensation', for a fiscal year,
 means the total amount of wages, salary, bonuses and
 deferred compensation for the fiscal year, whether
 paid, earned, or otherwise accruing, as recorded in an
 employer's cost accounting records for the fiscal year.
 ``(2) The term `senior executive', with respect to
 a contractor, means--
 ``(A) the chief executive officer of the
 contractor or any individual acting in a
 similar capacity for the contractor;
 ``(B) the four most highly compensated
 employees in management positions of the
 contractor other than the chief executive
 officer; and
 ``(C) in the case of a contractor that has
 components which report directly to the
 contractor's headquarters, the five most highly
 compensated individuals in management positions
 at each such component.
 ``(3) The term `fiscal year' means a fiscal year
 established by a contractor for accounting purposes.''.
 (c) Levels of Compensation Not allowable.--(1) The Office
of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is
amended by adding at the end the following:

``SEC. 39. LEVELS OF COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL NOT
 ALLOWABLE AS COSTS UNDER CERTAIN CONTRACTS.

 ``(a) Determination Required.--For purposes of section
2324(e)(1)(P) of title 10, United States Code, and section
306(e)(1)(P) of the Federal Property and Administrative
Services Act of 1949 (41 U.S.C. 256(e)(1)(P)), the
Administrator shall review commercially available surveys of
executive compensation and, on the basis of the results of the
review, determine a benchmark compensation amount to apply for
each fiscal year. In making determinations under this
subsection the Administrator shall consult with the Director of
the Defense Contract Audit Agency and such other officials of
executive agencies as the Administrator considers appropriate.
 ``(b) Benchmark Compensation Amount.--The benchmark
compensation amount applicable for a fiscal year is the median
amount of the compensation provided for all senior executives
of all benchmark corporations for the most recent year for
which date is available at the time the determination under
subsection (a) is made.
 ``(c) Definitions.--In this section:
 ``(1) The term `compensation', for a fiscal year,
 means the total amount of wages, salary, bonuses and
 deferred compensation for the fiscal year, whether
 paid, earned, or otherwise accruing, as recorded in an
 employer's cost accounting records for the fiscal year.
 ``(2) The term `senior executive', with respect to
 a corporation, means--
 ``(A) the chief executive officer of the
 corporation or any individual acting in a
 similar capacity for the corporation.
 ``(B) the four most highly compensated
 employees in management positions of the
 corporation other than the chief executive
 officer; and
 ``(C) in the case of a corporation that has
 components which report directly to the
 corporate headquarters, the five most highly
 compensated individuals in management positions
 at each such component.
 ``(3) The term `benchmark corporation', with
 respect to a fiscal year, means a publicly-owned United
 States corporation that has annual sales in excess of
 $50,000,000 for the fiscal year.
 ``(4) The term `publicly-owned United States
 corporation' means a corporation organized under the
 laws of a State of the United States, the District of
 Columbia, the Commonwealth of Puerto Rico, or a
 possession of the United States the voting stock of
 which is publicly traded.
 ``(5) The term `fiscal year' means a fiscal year
 established by a contractor for accounting purposes.''.
 (2) The table of sections in section 1(b) of such Act is
amended by adding at the end the following:

``Sec. 39. Levels of compensation of certain contractor personnel not
 allowable as costs under certain contracts.''.

 (d) Regulations.--Regulations implementing the amendments
made by this section shall be published in the Federal Register
not later than the effective date of the amendments under
subsection (e).
 (e) Effective Date.--The amendments made by this section
shall--
 (1) take effect on the date that is 90 days after
 the date of the enactment of this Act; and
 (2) apply with respect to costs of compensation
 incurred after January 1, 1998, under covered contracts
 entered into before, on, or after the date of the
 enactment of this Act.
 (f) Exclusive Applicability.--Notwithstanding any other
provision of law, no other limitation in law on the
allowability of costs of compensation of senior executives
under covered contracts shall apply to such costs of
compensation incurred after January 1, 1998.
 (g) Definitions.--In this section:
 (1) The term ``covered contract'' has the meaning
 given such term in section 2324(l) of title 10, United
 States Code, and section 306(l) of the Federal Property
 and Administrative Services Act of 1949 (41 U.S.C.
 256(l)).
 (2) The terms ``compensation'' and ``senior
 executive'' have the meanings given such terms in
 section 2324(l) of title 10, United States Code, and
 section 306(m) of the Federal Property and
 Administrative Services Act of 1949.

SEC. 809. ELIMINATION OF CERTIFICATION REQUIREMENT FOR GRANTS.

 Section 5153 of the Drug-Free Workplace Act of 1988 (Public
Law 100-690; 102 Stat. 4306; 41 U.S.C. 702) is amended--
 (1) in subsection (a)--
 (A) in paragraph (1), by striking out ``has
 certified to the granting agency that it will''
 and inserting in lieu thereof ``agrees to'';
 and
 (B) in paragraph (2), by striking out
 ``certifies to the agency'' and inserting in
 lieu thereof ``agrees''; and
 (2) in subsection (b)(1)--
 (A) by striking out subparagraph (A);
 (B) by redesignating subparagraphs (B) and
 (C) as subparagraphs (A) and (B), respectively;
 and
 (C) in subparagraph (A), as so
 redesignated, by striking out ``such
 certification by failing to carry out''.

SEC. 810. REPEAL OF LIMITATION ON ADJUSTMENT OF SHIPBUILDING CONTRACTS.

 (a) Repeal.--(1) Section 2405 of title 10, United States
Code, is repealed.
 (2) The table of sections at the beginning of chapter 141
of such title is amended by striking out the item relating to
section 2405.
 (b) Applicability.--(1) Except as provided in paragraph
(2), the repeal made by subsection (a) shall be effective with
respect to claims, requests for equitable adjustment, and
demands for payment under shipbuilding contracts that have been
or are submitted before, on, or after the date of the enactment
of this Act.
 (2) Section 2405 of title 10, United States Code, as in
effect immediately before the date of the enactment of this
Act, shall continue to apply to a contractor's claim, request
for equitable adjustment, or demand for payment under a
shipbuilding contract that was submitted before such date if--
 (A) a contracting officer denied the claim,
 request, or demand, and the period for appealing the
 decision to a court or board under the Contract
 Disputes Act of 1978 expired before such date;
 (B) a court or board of contract appeals
 considering the claim, request, or demand (including
 any appeal of a decision of a contracting officer to
 deny the claim, request, or demand) denied or dismissed
 the claim, request, or demand (or the appeal), and the
 action of the court or board became final and
 unappealable before such date; or
 (C) the contractor released or releases the claim,
 request, or demand.

SEC. 811. ITEM-BY-ITEM AND COUNTRY-BY-COUNTRY WAIVERS OF DOMESTIC
 SOURCE LIMITATIONS.

 (a) Item-by-Item and Country-by-Country Implementation of
Certain Waiver Authority.--Section 2534 of title 10, United
States Code, is amended by adding at the end the following new
subsection:
 ``(i) Implementation of Certain Waiver Authority.--(1) The
Secretary of Defense may exercise the waiver authority
described in paragraph (2) only if the waiver is made for a
particular item listed in subsection (a) and for a particular
foreign country.
 ``(2) This subsection applies to the waiver authority
provided by subsection (d) on the basis of the applicability of
paragraph (2) or (3) of that subsection.
 ``(3) The waiver authority described in paragraph (2) may
not be delegated below the Under Secretary of Defense for
Acquisition and Technology.
 ``(4) At least 15 days before the effective date of any
waiver made under the waiver authority described in paragraph
(2), the Secretary shall publish in the Federal Register and
submit to the congressional defense committees a notice of the
determination to exercise the waiver authority.
 ``(5) Any waiver made by the Secretary under the waiver
authority described in paragraph (2) shall be in effect for a
period not greater than one year, as determined by the
Secretary.''.
 (b) Effective Date.--Subsection (i) of section 2534 of such
title, as added by subsection (a), shall apply with respect
to--
 (1) contracts and subcontracts entered into on or
 after the date of the enactment of this Act; and
 (2) options for the procurement of items that are
 exercised after such date under contracts that are
 entered into before such date if the option prices are
 adjusted for any reason other than the application of a
 waiver granted under subsection (d) of such section
 2534, on the basis of the applicability of paragraph
 (2) or (3) of that subsection.

 Subtitle B--Acquisition Assistance Programs

SEC. 821. ONE-YEAR EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

 (a) One-Year Extension of Pilot Mentor-Protege Program.--
Section 831(j) of the National Defense Authorization Act for
Fiscal Year 1991 (10 U.S.C. 2302 note) is amended--
 (1) in paragraph (1), by striking out ``1998'' and
 inserting in lieu thereof ``1999'';
 (2) in paragraph (2), by striking out ``1999'' and
 inserting in lieu thereof ``2000''; and
 (3) in paragraph (3), by striking out ``1999'' and
 inserting in lieu thereof ``2000''.
 (b) Study on Implementation of Pilot Mentor-Protege
Program.--(1) The Comptroller General shall conduct a study on
the implementation of the Mentor-Protege Program established
under section 831 of the National Defense Authorization Act for
Fiscal Year 1991 (10 U.S.C. 2302 note) and the extent to which
the program is achieving the purposes established under that
section.
 (2) The study also shall include the following:
 (A) A review of the manner in which funds for the
 program have been obligated.
 (B) An identification and assessment of the average
 amount spent by the Department of Defense on individual
 mentor-protege agreements and the correlation between
 levels of funding and the business development of the
 protege firms.
 (C) An evaluation of the effectiveness of the
 incentives provided to mentor firms to participate in
 the program.
 (D) An assessment of the success of the mentor-
 protege program in enhancing the business
 competitiveness and financial independence of protege
 firms.
 (3) The Comptroller General shall submit to the Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives a report on the
results of the study not later than March 31, 1998.

SEC. 822. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SUBCONTRACTING
 PLANS.

 (a) Content of Subcontracting Plans.--Subsection (b)(2) of
section 834 of the National Defense Authorization Act for
Fiscal Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637
note) is amended--
 (1) by striking out ``plan--'' and inserting in
 lieu thereof ``plan of a contractor--'';
 (2) by striking out subparagraph (A);
 (3) by redesignating subparagraph (B) as
 subparagraph (A) and by striking out the period at the
 end of such subparagraph and inserting in lieu thereof
 ``; and''; and
 (4) by adding at the end the following:
 ``(B) shall cover each Department of Defense
 contract that is entered into by the contractor and
 each subcontract that is entered into by the contractor
 as the subcontractor under a Department of Defense
 contract.''.
 (b) Extension of Program.--Subsection (e) of such section
is amended by striking out ``September 30, 1998'' in the second
sentence and inserting in lieu thereof ``September 30, 2000.''.

 Subtitle C--Administrative Provisions

SEC. 831. RETENTION OF EXPIRED FUNDS DURING THE PENDENCY OF CONTRACT
 LITIGATION.

 (a) In General.--Chapter 141 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 2410m. Retention of amounts collected from contractor during the
 pendency of contract dispute

 ``(a) Retention of Funds.--Notwithstanding sections 1552(a)
and 3302(b) of title 31, any amount, including interest,
collected from a contractor as a result of a claim made by a
military department or Defense Agency under the Contract
Disputes Act of 1978 (41 U.S.C. 601 et seq.), shall remain
available in accordance with this section to pay--
 ``(1) any settlement of the claim by the parties;
 ``(2) any judgment rendered in the contractor's
 favor on an appeal of the decision on that claim to the
 Armed Services Board of Contract Appeals under section
 7 of such Act (41 U.S.C. 606); or
 ``(3) any judgment rendered in the contractor's
 favor in an action on that claim in a court of the
 United States.
 ``(b) Period of Availability.--(1) The period of
availability of an amount under subsection (a), in connection
with a claim--
 ``(A) expires 180 days after the expiration of the
 period for bringing an action on that claim in the
 United States Court of Federal Claims under section
 10(a) of the Contract Disputes Act of 1978 (41 U.S.C.
 609(a)) if, within that 180-day period--
 ``(i) no appeal on the claim is commenced
 at the Armed Services Board of Contract Appeals
 under section 7 of such Act; and
 ``(ii) no action on the claim is commenced
 in a court of the United States; or
 ``(B) if not expiring under subparagraph (A),
 expires--
 ``(i) in the case of a settlement of the
 claim, 180 days after the date of the
 settlement; or
 ``(ii) in the case of a judgment rendered
 on the claim in an appeal to the Armed Services
 Board of Contract Appeals under section 7 of
 the Contract Disputes Act of 1978 or an action
 in a court of the United States, 180 days after
 the date on which the judgment becomes final
 and not appealable.
 ``(2) While available under this section, an amount may be
obligated or expended only for a purpose described in
subsection (a).
 ``(3) Upon the expiration of the period of availability of
an amount under paragraph (1), the amount shall be covered into
the Treasury as miscellaneous receipts.
 ``(c) Reporting Requirement.--Each year, the Under
Secretary of Defense (Comptroller) shall submit to Congress a
report on the amounts, if any, that are available for
obligation pursuant to this section. The report shall include,
at a minimum, the following:
 ``(1) The total amount available for obligation.
 ``(2) The total amount collected from contractors
 during the year preceding the year in which the report
 is submitted.
 ``(3) The total amount disbursed in such preceding
 year and a description of the purpose for each
 disbursement.
 ``(4) The total amount returned to the Treasury in
 such preceding year.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of chapter 141 of title 10, United States Code, is
amended by adding at the end the following new item:

``2410m. Retention of amounts collected from contractor during the
 pendency of contract dispute.''.

SEC. 832. PROTECTION OF CERTAIN INFORMATION FROM DISCLOSURE.

 Section 2371 of title 10, United States Code, is amended by
adding at the end the following new subsection:
 ``(i) Protection of Certain Information From Disclosure.--
(1) Disclosure of information described in paragraph (2) is not
required, and may not be compelled, under section 552 of title
5 for five years after the date on which the information is
received by the Department of Defense.
 ``(2)(A) Paragraph (1) applies to information described in
subparagraph (B) that is in the records of the Department of
Defense if the information was submitted to the Department in a
competitive or noncompetitive process having the potential for
resulting in an award, to the party submitting the information,
of a cooperative agreement that includes a clause described in
subsection (d) or another transaction authorized by subsection
(a).
 ``(B) The information referred to in subparagraph (A) is
the following:
 ``(i) A proposal, proposal abstract, and supporting
 documents.
 ``(ii) A business plan submitted on a confidential
 basis.
 ``(iii) Technical information submitted on a
 confidential basis.''.

SEC. 833. UNIT COST REPORTS.

 (a) Immediate Report Required Only for Previously
Unreported Increased Costs.--Subsection (c) of section 2433 of
title 10, United States Code, is amended by striking out
``during the current fiscal year (other than the last quarterly
unit cost report under subsection (b) for the preceding fiscal
year)'' in the matter following paragraph (3).
 (b) Immediate Report Not Required for Cost Variances or
Schedule Variances of Major Contracts.--Subsection (c) of such
section is further amended--
 (1) by inserting ``or'' at the end of paragraph
 (1);
 (2) by striking out ``or'' at the end of paragraph
 (2); and
 (3) by striking out paragraph (3).
 (c) Congressional Notification of Increased Cost Not
Conditioned on Discovery Since Beginning of Fiscal Year.--
Subsection (d)(3) of such section is amended by striking out
``(for the first time since the beginning of the current fiscal
year)'' in the first sentence.

SEC. 834. PLAN FOR PROVIDING CONTRACTING INFORMATION TO GENERAL PUBLIC
 AND SMALL BUSINESSES.

 (a) Requirement for Plan.--The Secretary of Defense shall
develop a plan for improving the responsiveness of the
Department of Defense to persons from the general public and
small businesses seeking information on how to pursue
contracting and technology development opportunities with the
department. The plan shall include an assessment and
recommendation on the designation of a central point of contact
in the department to provide such information.
 (b) Submission.--Not later than March 31, 1998, the
Secretary shall submit the plan developed under subsection (a)
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives.

SEC. 835. TWO-YEAR EXTENSION OF CREDITING OF CERTAIN PURCHASES TOWARD
 MEETING SUBCONTRACTING GOALS.

 Section 2410d(c) of title 10, United States Code, is
amended, effective as of September 30, 1997, by striking out
``September 30, 1997'' and inserting in lieu thereof
``September 30, 1999''.

 Subtitle D--Other Matters

SEC. 841. REPEAL OF CERTAIN ACQUISITION REQUIREMENTS AND REPORTS

 (a) Repeal of Reporting Requirement for Nonmajor
Acquisition Programs.--Section 2220(b) of title 10, United
States Code, is amended by striking out ``and nonmajor'' in the
first sentence.
 (b) Repeal of Additional Approval Requirement Under
Competition Exception for International Agreements.--Section
2304(f)(2)(E) of title 10, United States Code, is amended by
striking out ``and such document is approved by the competition
advocate for the procuring activity''.
 (c) Content of Limited Selected Acquisition Reports.--
Section 2432(h)(2) of title 10, United States Code, is
amended--
 (1) by striking out subparagraph (D); and
 (2) by redesignating subparagraphs (E) and (F) as
 subparagraphs (D) and (E), respectively.
 (d) Repeal of Report Relating to Procurement Regulations.--
Section 25 of the Office of Federal Procurement Policy Act (41
U.S.C. 421) is amended by striking out subsection (g).

SEC. 842. USE OF MAJOR RANGE AND TEST FACILITY INSTALLATIONS BY
 COMMERCIAL ENTITIES.

 (a) Extension of Authority.--Subsection (g) of section 2681
of title 10, United States Code, is amended by striking out
``1998'' and inserting in lieu thereof ``2002''.
 (b) Revised Reporting Requirement.--Subsection (h) of such
section is amended to read as follows:
 ``(h) Report.--Not later than March 1, 1998, the Secretary
of Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report identifying existing and proposed
procedures to ensure that the use of Major Range and Test
Facility Installations by commercial entities does not compete
with private sector test and evaluation services.''.

SEC. 843. REQUIREMENT TO DEVELOP AND MAINTAIN LIST OF FIRMS NOT
 ELIGIBLE FOR DEFENSE CONTRACTS.

 Section 2327 of title 10, United States Code, is amended--
 (1) by redesignating subsections (d) and (e) as
 subsections (f) and (g), respectively; and
 (2) by inserting after subsection (c) the following
 new subsections:
 ``(d) List of Firms Subject to Prohibition.--(1) The
Secretary of Defense shall develop and maintain a list of all
firms and subsidiaries of firms that the Secretary has
identified as being subject to the prohibition in subsection
(b).
 ``(2)(A) A person may request the Secretary to include on
the list maintained under paragraph (1) any firm or subsidiary
of a firm that the person believes to be owned or controlled by
a foreign government described in subsection (b)(2). Upon
receipt of such a request, the Secretary shall determine
whether the conditions in paragraphs (1) and (2) of subsection
(b) exist in the case of that firm or subsidiary. If the
Secretary determines that such conditions do exist, the
Secretary shall include the firm or subsidiary on the list.
 ``(B) A firm or subsidiary of a firm included on the list
may request the Secretary to remove such firm or subsidiary
from the list on the basis that it has been erroneously
included on the list or its ownership circumstances have
significantly changed. Upon receipt of such a request, the
Secretary shall determine whether the conditions in paragraphs
(1) and (2) of subsection (b) exist in the case of that firm or
subsidiary. If the Secretary determines that such conditions do
not exist, the Secretary shall remove the firm or subsidiary
from the list.
 ``(C) The Secretary shall establish procedures to carry out
this paragraph.
 ``(3) The head of an agency shall prohibit each firm or
subsidiary of a firm awarded a contract by the agency from
entering into a subcontract under that contract in an amount in
excess of $25,000 with a firm or subsidiary included on the
list maintained under paragraph (1) unless there is a
compelling reason to do so. In the case of any subcontract
requiring consent by the head of an agency, the head of the
agency shall not consent to the award of the subcontract to a
firm or subsidiary included on such list unless there is a
compelling reason for such approval.
 ``(e) Distribution of List.--The Administrator of General
Services shall ensure that the list developed and maintained
under subsection (d) is made available to Federal agencies and
the public in the same manner and to the same extent as the
list of suspended and debarred contractors compiled pursuant to
subpart 9.4 of the Federal Acquisition Regulation.''.

SEC. 844. SENSE OF CONGRESS REGARDING ALLOWABILITY OF COSTS OF EMPLOYEE
 STOCK OWNERSHIP PLANS.

 It is the sense of Congress that the Secretary of Defense
should not disallow, under Department of Defense contracts, the
following costs:
 (1) Interest costs associated with deferred
 compensation employee stock ownership plans that were
 incurred before January 1, 1994.
 (2) Costs related to employee stock ownership plan
 (ESOP) debt, control premiums, or marketability
 discounts associated with the valuation of ESOP stock
 of closely held companies that were incurred before
 January 1, 1995.

SEC. 845. EXPANSION OF PERSONNEL ELIGIBLE TO PARTICIPATE IN
 DEMONSTRATION PROJECT RELATING TO ACQUISITION
 WORKFORCE.

 (a) Covered Personnel.--(1) Subsection (a) of section 4308
of the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104-106; 10 U.S.C. 1701 note) is amended by adding
before the period at the end the following: ``and supporting
personnel assigned to work directly with the acquisition
workforce''.
 (2) Subsection (b)(3)(A) of such section is amended by
inserting before the semicolon the following: ``or involves a
team of personnel more than half of which consists of members
of the acquisition workforce and the remainder of which
consists of supporting personnel assigned to work directly with
the acquisition workforce''.
 (b) Commencement of Project.--Subsection (b)(3)(B) of such
section is amended by striking out ``this Act'' and inserting
in lieu thereof ``the National Defense Authorization Act for
Fiscal Year 1998''.
 (c) Limitation on Number of Participants.--Such section is
further amended by adding at the end the following:
 ``(d) Limitation on Number of Participants.--The total
number of persons who may participate in the demonstration
project under this section may not exceed 95,000.''.

SEC. 846. TIME FOR SUBMISSION OF ANNUAL REPORT RELATING TO BUY AMERICAN
 ACT.

 Section 827 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2611; 41 U.S.C.
10b-3) is amended by striking out ``120 days'' and inserting in
lieu thereof ``90 days''.

SEC. 847. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR
 WEAPON SYSTEMS.

 (a) Repeal.--Section 2403 of title 10, United States Code,
is repealed.
 (b) Clerical and Conforming Amendments.--(1) The table of
sections at the beginning of chapter 141 of such title is
amended by striking out the item relating to section 2403.
 (2) Section 803 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2604; 10
U.S.C. 2430 note) is amended--
 (A) in subsection (a), by striking out ``2403,'';
 (B) by striking out subsection (c); and
 (C) by redesignating subsection (d) as subsection
 (c).

SEC. 848. REQUIREMENTS RELATING TO MICRO-PURCHASES.

 (a) Requirement.--(1) Not later than October 1, 1998, at
least 60 percent of all eligible purchases made by the
Department of Defense for an amount less than the micro-
purchase threshold shall be made through streamlined micro-
purchase procedures.
 (2) Not later than October 1, 2000, at least 90 percent of
all eligible purchases made by the Department of Defense for an
amount less than the micro-purchase threshold shall be made
through streamlined micro-purchase procedures.
 (b) Eligible Purchases.--The Secretary of Defense shall
establish which purchases are eligible for purposes of
subsection (a). In establishing which purchases are eligible,
the Secretary may exclude those categories of purchases
determined not to be appropriate or practicable for streamlined
micro-purchase procedures.
 (c) Plan.--Not later than March 1, 1998, the Secretary of
Defense shall provide to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives a plan to implement this section.
 (d) Report.--Not later than March 1 in each of the years
1999, 2000, and 2001, the Secretary of Defense shall submit to
the congressional defense committees a report on the
implementation of this section. Each report shall include--
 (A) the total dollar amount of all Department of
 Defense purchases for an amount less than the micro-
 purchase threshold in the fiscal year preceding the
 year in which the report is submitted;
 (B) the total dollar amount of such purchases that
 were considered to be eligible purchases;
 (C) the total amount of such eligible purchases
 that were made through a streamlined micro-purchase
 method; and
 (D) a description of the categories of purchases
 excluded from the definition of eligible purchases
 established under subsection (b).
 (e) Definitions.--In this section:
 (1) The term ``micro-purchase threshold'' has the
 meaning provided in section 32 of the Office of Federal
 Procurement Policy Act (41 U.S.C. 428).
 (2) The term ``streamlined micro-purchase
 procedures'' means procedures providing for the use of
 the Government-wide commercial purchase card or any
 other method for carrying out micro-purchases that the
 Secretary of Defense prescribes in the regulations
 implementing this subsection.

SEC. 849. PROMOTION RATE FOR OFFICERS IN AN ACQUISITION CORPS.

 (a) Review of Acquisition Corps Promotion Selections.--Upon
the approval of the President or his designee of the report of
a selection board convened under section 611(a) of title 10,
United States Code, which considered members of an Acquisition
Corps of a military department for promotion to a grade above
O-4, the Secretary of the military department shall submit a
copy of the report to the Under Secretary of Defense for
Acquisition and Technology for review.
 (b) Reporting Requirement.--Not later than January 31 of
each year, the Under Secretary of Defense for Acquisition and
Technology shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report containing the Under Secretary's
assessment of the extent to which each military department is
complying with the requirement set forth in section 1731(b) of
title 10, United States Code.
 (c) Termination of Requirements.--This section shall cease
to be effective on October 1, 2000.

SEC. 850. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

 (a) Policy.--Section 30 of the Office of Federal
Procurement Policy Act (41 U.S.C. 426) is amended to read as
follows:

``SEC. 30. USE OF ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.

 ``(a) In General.--The head of each executive agency, after
consulting with the Administrator, shall establish, maintain,
and use, to the maximum extent that is practicable and cost-
effective, procedures and processes that employ electronic
commerce in the conduct and administration of its procurement
system.
 ``(b) Applicable Standards.--In conducting electronic
commerce, the head of an agency shall apply nationally and
internationally recognized standards that broaden
interoperability and ease the electronic interchange of
information.
 ``(c) Agency Procedures.--The head of each executive agency
shall ensure that systems, technologies, procedures, and
processes established pursuant to this section--
 ``(1) are implemented with uniformity throughout
 the agency, to the extent practicable;
 ``(2) are implemented only after granting due
 consideration to the use or partial use, as
 appropriate, of existing electronic commerce and
 electronic data interchange systems and infrastructures
 such as the Federal acquisition computer network
 architecture known as FACNET;
 ``(3) facilitate access to Federal Government
 procurement opportunities, including opportunities for
 small business concerns, socially and economically
 disadvantaged small business concerns, and business
 concerns owned predominantly by women; and
 ``(4) ensure that any notice of agency requirements
 or agency solicitation for contract opportunities is
 provided in a form that allows convenient and universal
 user access through a single, Government-wide point of
 entry.
 ``(d) Implementation.--The Administrator shall, in carrying
out the requirements of this section--
 ``(1) issue policies to promote, to the maximum
 extent practicable, uniform implementation of this
 section by executive agencies, with due regard for
 differences in program requirements among agencies that
 may require departures from uniform procedures and
 processes in appropriate cases, when warranted because
 of the agency mission;
 ``(2) ensure that the head of each executive agency
 complies with the requirements of subsection (c) with
 respect to the agency systems, technologies,
 procedures, and processes established pursuant to this
 section; and
 ``(3) consult with the heads of appropriate Federal
 agencies with applicable technical and functional
 expertise, including the Office of Information and
 Regulatory Affairs, the National Institute of Standards
 and Technology, the General Services Administration,
 and the Department of Defense.
 ``(e) Report.--Not later than March 1, 1998, and every year
afterward through 2003, the Administrator shall submit to
Congress a report setting forth in detail the progress made in
implementing the requirements of this section. The report shall
include the following:
 ``(1) A strategic plan for the implementation of a
 Government-wide electronic commerce capability.
 ``(2) An agency-by-agency summary of implementation
 of the requirements of subsection (c), including
 timetables, as appropriate, addressing when individual
 agencies will come into full compliance.
 ``(3) A specific assessment of compliance with the
 requirement in subsection (c) to provide universal
 public access through a single, Government-wide point
 of entry.
 ``(4) Beginning with the report submitted on March
 1, 1999, an agency-by-agency summary of the volume and
 dollar value of transactions that were conducted using
 electronic commerce methods during the previous
 calendar year.
 ``(5) A discussion of possible incremental changes
 to the electronic commerce capability referred to in
 subsection (c)(4) to increase the level of government
 contract information available to the private sector,
 including an assessment of the advisability of
 including contract award information in the electronic
 commerce functional standard.
 ``(f) Electronic Commerce Defined.--For the purposes of
this section, the term `electronic commerce' means electronic
techniques for accomplishing business transactions, including
electronic mail or messaging, World Wide Web technology,
electronic bulletin boards, purchase cards, electronic funds
transfers, and electronic data interchange.''.
 (b) Repeal of Requirements for Implementation of FACNET
Capability.--Section 30A of the Office of Federal Procurement
Policy Act (41 U.S.C. 426a) is repealed.
 (c) Repeal of Requirement for GAO Report.--Section 9004 of
the Federal Acquisition Streamlining Act of 1994 (41 U.S.C.
426a note) is repealed.
 (d) Repeal of Condition for Use of Simplified Acquisition
Procedures.--Section 31 of the Office of Federal Procurement
Policy Act (41 U.S.C. 427) is amended--
 (1) by striking out subsection (e); and
 (2) by redesignating subsections (f) and (g) as
 subsections (e) and (f), respectively.
 (e) Amendments to Procurement Notice Requirements.--(1)
Section 8(g)(1) of the Small Business Act (15 U.S.C. 637(g)(1))
is amended--
 (A) by striking out subparagraphs (A) and (B);
 (B) by redesignating subparagraphs (C), (D), (E),
 (F), (G), and (H) as subparagraphs (B), (C), (D), (E),
 (F), and (G), respectively; and
 (C) by inserting before subparagraph (B), as so
 redesignated, the following new subparagraph (A):
 ``(A) the proposed procurement is for an amount not
 greater than the simplified acquisition threshold and
 is to be conducted by--
 ``(i) using widespread electronic public
 notice of the solicitation in a form that
 allows convenient and universal user access
 through a single, Government-wide point of
 entry; and
 ``(ii) permitting the public to respond to
 the solicitation electronically.''.
 (2) Section 18(c)(1) of the Office of Federal Procurement
Policy Act (41 U.S.C. 416(c)(1)) is amended--
 (A) by striking out subparagraphs (A) and (B);
 (B) by redesignating subparagraphs (C), (D), (E),
 (F), (G), and (H) as subparagraphs (B), (C), (D), (E),
 (F), and (G), respectively; and
 (C) by inserting before subparagraph (B), as so
 redesignated, the following new subparagraph (A):
 ``(A) the proposed procurement is for an amount not
 greater than the simplified acquisition threshold and
 is to be conducted by--
 ``(i) using widespread electronic public
 notice of the solicitation in a form that
 allows convenient and universal user access
 through a single, Government-wide point of
 entry; and
 ``(ii) permitting the public to respond to
 the solicitation electronically.''.
 (3) The amendments made by paragraphs (1) and (2) shall be
implemented in a manner consistent with any applicable
international agreements.
 (f) Conforming and Technical Amendments.--(1) Section 5061
of the Federal Acquisition Streamlining Act of 1994 (41 U.S.C.
413 note) is amended--
 (A) in subsection (c)(4)--
 (i) by striking out ``the Federal
 acquisition computer network (`FACNET')'' and
 inserting in lieu thereof ``the electronic
 commerce''; and
 (ii) by striking out ``(as added by section
 9001)''; and
 (B) in subsection (e)(9)(A), by striking out ``,
 or by dissemination through FACNET,''.
 (2) Section 5401 of the Clinger-Cohen Act of 1996
(divisions D and E of Public Law 104-106; 40 U.S.C. 1501) is
amended--
 (A) in subsection (a)--
 (i) by striking out ``through the Federal
 Acquisition Computer Network (in this section
 referred to as `FACNET')''; and
 (ii) by striking out the last sentence;
 (B) in subsection (b)--
 (i) by striking out ``Additional FACNET
 Functions.--'' and all that follows through
 ``(41 U.S.C. 426(b)), the FACNET architecture''
 and inserting in lieu thereof ``Functions.--(1)
 The system for providing on-line computer
 access''; and
 (ii) in paragraph (2), by striking out
 ``The FACNET architecture'' and inserting in
 lieu there for ``The system for providing on-
 line computer access'';
 (C) in subsection (c)(1), by striking out ``the
 FACNET architecture'' and inserting in lieu thereof
 ``the system for providing on-line computer access'';
 and
 (D) by striking out subsection (d).
 (3)(A) Section 2302c of title 10, United States Code, is
amended to read as follows:

``Sec. 2302c. Implementation of electronic commerce capability

 ``(a) Implementation of Electronic Commerce Capability.--
(1) The head of each agency named in paragraphs (1), (5) and
(6) shall implement the electronic commerce capability required
by section 30 of the Office of Federal Procurement Policy Act
(41 U.S.C. 426).
 ``(2) The Secretary of Defense shall act through the Under
Secretary of Defense for Acquisition and Technology to
implement the capability within the Department of Defense.
 ``(3) In implementing the electronic commerce capability
pursuant to paragraph (1), the head of an agency referred to in
paragraph (1) shall consult with the Administrator for Federal
Procurement Policy.
 ``(b) Designation of Agency Official.--The head of each
agency named in paragraph (5) or (6) of section 2303 of this
title shall designate a program manager to implement the
electronic commerce capability for that agency. The program
manager shall report directly to an official at a level not
lower than the senior procurement executive designated for the
agency under section 16(3) of the Office of Federal Procurement
Policy Act (41 U.S.C. 414(3)).''.
 (B) Section 2304(g)(4) of such title 10 is amended by
striking out ``31(g)'' and inserting in lieu thereof ``31(f)''.
 (4)(A) Section 302C of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 252c) is amended
to read as follows:

``SEC. 302C. IMPLEMENTATION OF ELECTRONIC COMMERCE CAPABILITY.

 ``(a) Implementation of Electronic Commerce Capability.--
(1) The head of each executive agency shall implement the
electronic commerce capability required by section 30 of the
Office of Federal Procurement Policy Act (41 U.S.C. 426).
 ``(2) In implementing the electronic commerce capability
pursuant to paragraph (1), the head of an executive agency
shall consult with the Administrator for Federal Procurement
Policy.
 ``(b) Designation of Agency Official.--The head of each
executive agency shall designate a program manager to implement
the electronic commerce capability for that agency. The program
manager shall report directly to an official at a level not
lower than the senior procurement executive designated for the
executive agency under section 16(3) of the Office of Federal
Procurement Policy Act (41 U.S.C. 414(3)).''.
 (B) Section 303(g)(5) of the Federal Property and
Administrative Services Act (41 U.S.C. 253(g)(5)) is amended by
striking out ``31(g)'' and inserting in lieu thereof ``31(f)''.
 (g) Effective Date.--(1) Except as provided in paragraph
(2), the amendments made by this section shall take effect 180
days after the date of the enactment of this Act.
 (2) The repeal made by subsection (c) of this section shall
take effect on the date of the enactment of this Act.

SEC. 851. CONFORMANCE OF POLICY ON PERFORMANCE BASED MANAGEMENT OF
 CIVILIAN ACQUISITION PROGRAMS WITH POLICY
 ESTABLISHED FOR DEFENSE ACQUISITION PROGRAMS.

 (a) Performance Goals.--Section 313(a) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
263(a)) is amended to read as follows:
 ``(a) Congressional Policy.--It is the policy of Congress
that the head of each executive agency should achieve, on
average, 90 percent of the cost, performance, and schedule
goals established for major acquisition programs of the
agency.''.
 (b) Conforming Amendment to Reporting Requirement.--Section
6(k) of the Office of Federal Procurement Policy Act (41 U.S.C.
405(k)) is amended by inserting ``regarding major acquisitions
that is'' in the first sentence after ``policy''.

SEC. 852. MODIFICATION OF PROCESS REQUIREMENTS FOR THE SOLUTIONS-BASED
 CONTRACTING PILOT PROGRAM.

 (a) Source Selection.--Paragraph (9) of section 5312(c) of
the Clinger-Cohen Act of 1996 (divisions D and E of Public Law
104-106; 40 U.S.C. 1492(c)) is amended--
 (1) in subparagraph (A), by striking out ``, and
 ranking of alternative sources,'' and inserting in lieu
 thereof ``or sources,'';
 (2) in subparagraph (B)--
 (A) in the matter preceding clause (i), by
 inserting ``(or a longer period, if approved by
 the Administrator)'' after ``30 to 60 days'';
 (B) in clause (i), by inserting ``or
 sources'' after ``source''; and
 (C) in clause (ii), by striking out ``that
 source'' and inserting in lieu thereof ``the
 source whose offer is determined to be most
 advantageous to the Government''; and
 (3) in subparagraph (C), by striking out ``with
 alternative sources (in the order ranked)''.
 (b) Time Management Discipline.--Paragraph (12) of such
section is amended by inserting before the period at the end
the following: ``, except that the Administrator may approve
the application of a longer standard period''.

SEC. 853. GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION WORKFORCE
 TRAINING REQUIREMENTS.

 The Secretary of Defense shall develop appropriate guidance
and standards to ensure that the Department of Defense will
continue, where appropriate and cost-effective, to enter into
contracts for the training requirements of sections 1723, 1724,
and 1735 of title 10, United States Code, while maintaining
appropriate control over the content and quality of such
training.

SEC. 854. STUDY AND REPORT TO CONGRESS ASSESSING DEPENDENCE ON FOREIGN
 SOURCES FOR RESISTORS AND CAPACITORS.

 (a) Study.--The Secretary of Defense shall conduct a study
of the capacitor and resistor industries in the United States
and the degree of United States dependence on foreign sources
for resistors and capacitors.
 (b) Report.--Not later than May 1, 1998, the Secretary
shall submit to Congress a report on the results of the study
under subsection (a). The report shall include the following:
 (1) An assessment of the industrial base for the
 production of resistors and capacitors within the
 United States and a projection of any changes in that
 base that are likely to occur after the implementation
 of relevant tariff reductions required by the
 Information Technology Agreement entered into at the
 World Trade Organization Ministerial in Singapore in
 December 1996.
 (2) An assessment of the level of dependence on
 foreign sources for procurement of resistors and
 capacitors and a projection of the level of dependence
 on foreign sources that is likely to occur after the
 implementation of relevant tariff reductions required
 by the Information Technology Agreement.
 (3) The implications for the national security of
 the United States of the projections reported under
 paragraphs (1) and (2).
 (4) Recommendations for appropriate changes, if
 any, in defense procurement policies or other Federal
 policies based on such implications.

SEC. 855. DEPARTMENT OF DEFENSE AND FEDERAL PRISON INDUSTRIES JOINT
 STUDY.

 (a) Study of Existing Procurement Procedures.--The
Secretary of Defense and the Director of Federal Prison
Industries shall jointly conduct a study of the procurement
procedures, regulations, and statutes that govern procurement
transactions between the Department of Defense and Federal
Prison Industries.
 (b) Report.--(1) The Secretary and the Director shall, not
later than 180 days after the date of the enactment of this
Act, submit to the committees listed in paragraph (2) a report
containing the findings of the study and recommendations on the
means to improve the efficiency and reduce the cost of
transactions described in subsection (a).
 (2) The committees referred to in paragraph (1) are the
following:
 (A) The Committee on Armed Services and the
 Committee on the Judiciary of the Senate.
 (B) The Committee on National Security and the
 Committee on the Judiciary of the House of
 Representatives.

 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Positions and Organizations and Other
 General Matters

Sec. 901. Assistants to the Chairman of the Joint Chiefs of Staff for
 National Guard matters and for Reserve matters.
Sec. 902. Use of CINC Initiative Fund for force protection.
Sec. 903. Revision to required frequency for provision of policy
 guidance for contingency plans.
Sec. 904. Annual justification for Department of Defense advisory
 committees.
Sec. 905. Airborne reconnaissance management.
Sec. 906. Termination of the Armed Services Patent Advisory Board.
Sec. 907. Coordination of Department of Defense criminal investigations
 and audits.

 Subtitle B--Department of Defense Personnel Management

Sec. 911. Reduction in personnel assigned to management headquarters and
 headquarters support activities.
Sec. 912. Defense acquisition workforce.

 Subtitle C--Department of Defense Schools and Centers

Sec. 921. Professional military education schools.
Sec. 922. Center for Hemispheric Defense Studies.
Sec. 923. Correction to reference to George C. Marshall European Center
 for Security Studies.

 Subtitle D--Department of Defense Intelligence-Related Matters

Sec. 931. Transfer of certain military department programs from TIARA
 budget aggregation.
Sec. 932. Report on coordination of access of commanders and deployed
 units to intelligence collected and analyzed by the
 intelligence community.
Sec. 933. Protection of imagery, imagery intelligence, and geospatial
 information and data.
Sec. 934. POW/MIA intelligence analysis.

Subtitle A--Department of Defense Positions and Organizations and Other
 General Matters

SEC. 901. ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOR
 NATIONAL GUARD MATTERS AND FOR RESERVE MATTERS.

 (a) Establishment of Positions.--The Secretary of Defense
shall establish the following positions within the Joint Staff:
 (1) Assistant to the Chairman of the Joint Chiefs
 of Staff for National Guard Matters.
 (2) Assistant to the Chairman of the Joint Chiefs
 of Staff for Reserve Matters.
 (b) Selection.--(1) The Assistant to the Chairman of the
Joint Chiefs of Staff for National Guard Matters shall be
selected by the Chairman from officers of the Army National
Guard of the United States or the Air Guard of the United
States who--
 (A) are recommended for such selection by their
 respective Governors or, in the case of the District of
 Columbia, the commanding general of the District of
 Columbia National Guard;
 (B) have had at least 10 years of federally
 recognized commissioned service in the National Guard;
 and
 (C) are in a grade above the grade of colonel.
 (2) The Assistant to the Chairman of the Joint Chiefs of
Staff for Reserve Matters shall be selected by the Chairman
from officers of the Army Reserve, the Naval Reserve, the
Marine Corps Reserve or the Air Force Reserve who--
 (A) are recommended for such selection by
 the Secretary of the military department
 concerned;
 (B) have had at least 10 years of
 commissioned service in their reserve
 component; and
 (C) are in a grade above the grade of
 colonel or, in the case of the Naval Reserve,
 captain.
 (c) Term of Office.--Each Assistant to the Chairman under
subsection (a) serves at the pleasure of the Chairman for a
term of two years and may be continued in that assignment in
the same manner for one additional term. However, in time of
war there is no limit on the number of terms.
 (d) Grade.--Each Assistant to the Chairman, while so
serving, holds the grade of major general or, in the case of
the Naval Reserve, rear admiral. Each such officer shall be
considered to be serving in a position external to that
officer's Armed Force for purposes of section 721 of title 10,
United States Code, as added by section 501(a).
 (e) Duties.--The Assistant to the Chairman for National
Guard Matters is an adviser to the Chairman on matters relating
to the National Guard and performs the duties prescribed for
that position by the Chairman. The Assistant to the Chairman
for Reserve Matters is an adviser to the Chairman on matters
relating to the reserves and performs the duties prescribed for
that position by the Chairman.
 (f) Other Reserve Component Representation on Joint
Staff.--(1) The Secretary of Defense, in consultation with the
Chairman of the Joint Chiefs, shall develop appropriate policy
guidance to ensure that, to the maximum extent practicable, the
level of reserve component officer representation within the
Joint Staff is commensurate with the significant role of the
reserve components within the Total Force.
 (2) Not later than March 1, 1998, the Secretary shall
submit to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives
a report describing the steps taken and being taken to
implement this subsection.
 (g) Effective Date.--The positions specified in subsection
(a) shall be established by the Secretary of Defense not later
than 60 days after the date of the enactment of this Act.

SEC. 902. USE OF CINC INITIATIVE FUND FOR FORCE PROTECTION.

 Section 166a(b) of title 10, United States Code, is amended
by adding at the end the following:
 ``(9) Force protection.''.

SEC. 903. REVISION TO REQUIRED FREQUENCY FOR PROVISION OF POLICY
 GUIDANCE FOR CONTINGENCY PLANS.

 Section 113(g)(2) of title 10, United States Code, is
amended--
 (1) in the first sentence, by striking out
 ``annually''; and
 (2) in the second sentence, by inserting ``be
 provided every two years or more frequently as needed
 and shall'' after ``Such guidance shall''.

SEC. 904. ANNUAL JUSTIFICATION FOR DEPARTMENT OF DEFENSE ADVISORY
 COMMITTEES.

 (a) Annual Justification Required.--Chapter 7 of title 10,
United States Code, is amended by adding after section 182, as
added by section 382(a)(1), the following new section:

``Sec. 183. Advisory committees: annual justification required

 ``(a) Annual Report.--The Secretary of Defense shall
include in the annual report of the Secretary under section
113(c) of this title a report on advisory committees of the
Department of Defense. In each such report, the Secretary
shall--
 ``(1) identify each advisory committee that the
 Secretary proposes to support, or that the Secretary is
 required by law or direction from the President to
 support, during the next fiscal year; and
 ``(2) for each committee identified under paragraph
 (1), set forth--
 ``(A) the justification or requirement for
 that committee; and
 ``(B) the projected cost to the Department
 of Defense to support that committee during the
 next fiscal year.
 ``(b) Advisory Committee Defined.--In this section, the
term `advisory committee' means an entity that is subject to
the provisions of the Federal Advisory Committee Act (5 U.S.C.
App.).''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding after the item
relating to section 182, as added by section 382(a)(2), the
following new item:

``183. Advisory committees: annual justification required.''.

SEC. 905. AIRBORNE RECONNAISSANCE MANAGEMENT.

 (a) Reorganization of Defense Airborne Reconnaissance
Management.--Not later than September 30, 1998, the Secretary
of Defense shall reorganize the management of defense airborne
reconnaissance within the Department of Defense in accordance
with the plan developed under subsection (b).
 (b) Plan and Report.--(1) The Secretary of Defense shall
develop a plan to reorganize the following organizations by
transferring functions as required under subsections (c) and
(d):
 (A) The organization within the Department of
 Defense that is subordinate to the Under Secretary of
 Defense for Acquisition and Technology and known as the
 Defense Airborne Reconnaissance Office.
 (B) The organization within the Department of
 Defense that is subordinate to the Secretary of the
 Navy and known as the Unmanned Aerial Vehicle Joint
 Program Office.
 (2) The Secretary shall submit to the congressional defense
committees a report containing--
 (A) the plan developed under paragraph (1); and
 (B) an explanation of how the plan addresses the
 findings and recommendations in the final report of the
 Task Force on Defense Reform (established by the
 Secretary of Defense on May 14, 1997, and headed by the
 Deputy Secretary of Defense).
 (3) The plan under paragraph (1) shall be developed, and
the report under paragraph (2) shall be submitted, not later
than March 1, 1998.
 (c) Transfer of Certain Functions to Secretaries of
Military Departments.--(1) Not later than September 30, 1998,
the Secretary of Defense shall transfer to the Secretaries of
the military departments those functions specified in paragraph
(2) that were performed on the day before the date of the
enactment this Act by the Defense Airborne Reconnaissance
Office and the Unmanned Aerial Vehicle Joint Program Office.
 (2) The functions referred to in paragraph (1) are the
functions of the Defense Airborne Reconnaissance Office and the
Unmanned Aerial Vehicle Joint Program Office relating to their
responsibilities for acquisition of systems, budgeting, program
management (for research, development, test, and evaluation,
for procurement, for life-cycle support, and for operations),
and related responsibilities for individual airborne
reconnaissance programs.
 (d) Transfer of Certain Functions to Defense Airborne
Reconnaissance Office.--(1) Not later than September 30, 1998,
the Secretary of Defense shall transfer to the Defense Airborne
Reconnaissance Office those functions specified in paragraph
(2) that were performed on the day before the date of the
enactment of this Act by the Unmanned Aerial Vehicle Joint
Program Office.
 (2) The functions referred to in paragraph (1) are the
functions of the Unmanned Aerial Vehicle Joint Program Office
relating to its responsibilities for management and oversight
of defense airborne reconnaissance architecture, requirements,
and system interfaces (other than the responsibilities
specified in subsection (c)(2)).

SEC. 906. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

 (a) Termination of Board.--The organization within the
Department of Defense known as the Armed Services Patent
Advisory Board is terminated. No funds available for the
Department of Defense may be used for the operation of that
Board after the effective date specified in subsection (c).
 (b) Transfer of Functions.--All functions performed on the
day before the date of the enactment of this Act by the Armed
Services Patent Advisory Board (including performance of the
responsibilities of the Department of Defense for security
review of patent applications under chapter 17 of title 35,
United States Code) shall be transferred to the Defense
Technology Security Administration.
 (c) Effective Date.--Subsection (a) shall take effect at
the end of the 120-day period beginning on the date of the
enactment of this Act.

SEC. 907. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS
 AND AUDITS.

 (a) Military Department Criminal Investigative
Organizations.--(1) The heads of the military department
criminal investigative organizations shall take such action as
may be practicable to conserve the limited resources available
to the military department criminal investigative organizations
by sharing personnel, expertise, infrastructure, training,
equipment, software, and other resources.
 (2) The heads of the military department criminal
investigative organizations shall meet on a regular basis to
determine the manner in which and the extent to which the
military department criminal investigative organizations will
be able to share resources.
 (b) Defense Auditing Organizations.--(1) The heads of the
defense auditing organizations shall take such action as may be
practicable to conserve the limited resources available to the
defense auditing organizations by sharing personnel, expertise,
infrastructure, training, equipment, software, and other
resources.
 (2) The heads of the defense auditing organizations shall
meet on a regular basis to determine the manner in which and
the extent to which the defense auditing organizations will be
able to share resources.
 (c) Implementation Plan.--Not later than December 31, 1997,
the Secretary of Defense shall submit to Congress a plan
designed to maximize the resources available to the military
department criminal investigative organizations and the defense
auditing organizations, as required by this section.
 (d) Definitions.--For purposes of this section:
 (1) The term ``military department criminal
 investigative organizations'' means--
 (A) the Army Criminal Investigation
 Command;
 (B) the Naval Criminal Investigative
 Service; and
 (C) the Air Force Office of Special
 Investigations.
 (2) The term ``defense auditing organizations''
 means--
 (A) the Office of the Inspector General of
 the Department of Defense;
 (B) the Defense Contract Audit Agency;
 (C) the Army Audit Agency;
 (D) the Naval Audit Service; and
 (E) the Air Force Audit Agency.

 Subtitle B--Department of Defense Personnel Management

SEC. 911. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS
 AND HEADQUARTERS SUPPORT ACTIVITIES.

 (a) In General.--(1) Chapter 3 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 130a. Management headquarters and headquarters support
 activities personnel: limitation

 ``(a) Limitation.--Effective October 1, 2002, the number of
management headquarters and headquarters support activities
personnel in the Department of Defense may not exceed 75
percent of the baseline number.
 ``(b) Phased Reduction.--The number of management
headquarters and headquarters support activities personnel in
the Department of Defense--
 ``(1) as of October 1, 1998, may not exceed 95
 percent of the baseline number;
 ``(2) as of October 1, 1999, may not exceed 90
 percent of the baseline number;
 ``(3) as of October 1, 2000, may not exceed 85
 percent of the baseline number; and
 ``(4) as of October 1, 2001, may not exceed 80
 percent of the baseline number.
 ``(c) Baseline Number.--In this section, the term `baseline
number' means the number of management headquartersand
headquarters support activities personnel in the Department of Defense
as of October 1, 1997.
 ``(d) Limitation on Management Headquarters and
Headquarters Support Personnel Assigned to the United States
Transportation Command.--(1) Effective October 1, 1998, the
number of management headquarters activities and management
headquarters support activities personnel assigned to, or
employed in, the United States Transportation Command may not
exceed the number equal to 95 percent of the number of such
personnel as of October 1, 1997.
 ``(2) For purposes of paragraph (1), the United States
Transportation Command shall be considered to include the
following:
 ``(A) The United States Transportation Command
 Headquarters.
 ``(B) The Air Mobility Command of the Air Force.
 ``(C) The Military Sealift Command of the Navy.
 ``(D) The Military Traffic Management Command of
 the Army.
 ``(E) The Defense Courier Service.
 ``(F) Any other element of the Department of
 Defense assigned to the United States Transportation
 Command.
 ``(3) The Secretary of Defense may waive or suspend
operation of paragraph (1) in the event of a war or national
emergency.
 ``(e) Management Headquarters and Headquarters Support
Activities Personnel Defined.--In this section:
 ``(1) The term `management headquarters and
 headquarters support activities personnel' means
 military and civilian personnel of the Department of
 Defense who are assigned to, or employed in, functions
 in management headquarters activities or in management
 headquarters support activities.
 ``(2) The terms `management headquarters
 activities' and `management headquarters support
 activities' have the meanings given those terms in
 Department of Defense Directive 5100.73, entitled
 `Department of Defense Management Headquarters and
 Headquarters Support Activities', as in effect on
 November 12, 1996.
 ``(f) Limitation on Reassignment of Functions.--In carrying
out reductions in the number of personnel assigned to, or
employed in, management headquarters and headquarters support
activities in order to comply with this section, the Secretary
of Defense and the Secretaries of the military departments may
not reassign functions in order to evade the requirements of
this section.
 ``(g) Flexibility.--If the Secretary of Defense determines,
and certifies to Congress, that the limitation in subsection
(b) with respect to any fiscal year would adversely affect
United States national security, the Secretary may waive the
limitation under that subsection with respect to that fiscal
year. If the Secretary of Defense determines, and certifies to
Congress, that the limitation in subsection (a) during fiscal
year 2001 would adversely affect United States national
security, the Secretary may waive the limitation under that
subsection with respect to that fiscal year. The authority
under this subsection may be used only once, with respect to a
single fiscal year.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``130a. Management headquarters and headquarters support activities
 personnel: limitation.''.

 (b) Implementation Report.--Not later than January 15,
1998, the Secretary of Defense shall submit to Congress a
report--
 (1) containing a plan to achieve the personnel
 reductions required by section 130a of title 10, United
 States Code, as added by subsection (a); and
 (2) including the recommendations of the Secretary
 regarding--
 (A) the revision, replacement, or
 augmentation of Department of Defense Directive
 5100.73, entitled ``Department of Defense
 Management Headquartersand Headquarters Support
Activities'', as in effect on November 12, 1996; and
 (B) the revision of the definitions of the
 terms ``management headquarters activities''
 and ``management headquarters support
 activities'' under that Directive so that those
 terms apply uniformly throughout the Department
 of Defense.
 (c) Duties of Task Force on Defense Reform to Include
Consideration Of Management Headquarters Activities.--(1) The
Secretary of Defense shall require that the areas of study of
the Task Force on Defense Reform (established by the Secretary
of Defense on May 14, 1997, and headed by the Deputy Secretary
of Defense) include an examination of the missions, functions,
and responsibilities of the various management headquarters
activities and management headquarters support activities of
the Department of Defense. In carrying out that examination of
those activities, the Task Force shall identify areas of
duplication in those activities and recommend to the Secretary
options to streamline, reduce, and eliminate redundancies.
 (2) The examination of the missions, functions, and
responsibilities of the various management headquarters
activities and management headquarters support activities of
the Department of Defense under paragraph (1) shall include the
following:
 (A) An assessment of benefits of consolidation or
 selected elimination of Department of Defense
 management headquarters activities and management
 headquarters support activities.
 (B) An assessment of the opportunities to
 streamline the management headquarters and management
 headquarters support infrastructure that were realized
 as a result of the enactment of the Federal Acquisition
 Streamlining Act of 1994 (Public Law 103-355) and the
 Clinger-Cohen Act of 1996 (divisions D and E of Public
 Law 104-106) or as result of other management reform
 initiatives implemented administratively during the
 period from 1993 through 1997.
 (C) An assessment of such other options for
 streamlining or restructuring the management
 headquarters and management headquarters support
 infrastructure as the Task Force considers appropriate
 and as can be carried out under existing provisions of
 law.
 (3) Not later than March 1, 1998, the Secretary of Defense
shall submit to Congress a report on the results of the
examination by the Task Force under this subsection. The
Secretary shall include in the report any report to the
Secretary from the Task Force with respect to the matters
described in paragraphs (1) and (2).
 (d) Codification of Prior Permanent Limitation on OSD
Personnel.--(1) Chapter 4 of title 10, United States Code, is
amended by adding at the end a new section 143 consisting of--
 (A) a heading as follows:

``Sec. 143. Office of the Secretary of Defense personnel: limitation'';

 and
 (B) a text consisting of the text of subsections
 (a) through (f) of section 903 of the National Defense
 Authorization Act for Fiscal Year 1997 (Public Law 104-
 201; 110 Stat. 2617).
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``143. Office of the Secretary of Defense personnel: limitation.''.

 (3) Section 903 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617) is
repealed.

SEC. 912. DEFENSE ACQUISITION WORKFORCE.

 (a) Reduction of Defense Acquisition Workforce.--(1) The
Secretary of Defense shall accomplish reductions in defense
acquisition personnel positions during fiscal year 1998 so that
the total number of such personnel asof October 1, 1998, is
less than the total number of such personnel as of October 1, 1997, by
at least the applicable number determined under paragraph (2).
 (2)(A) The applicable number for purposes of paragraph (1)
is 25,000. However, the Secretary of Defense may specify a
lower number, which may not be less than 10,000, as the
applicable number for purposes of paragraph (1) if the
Secretary determines, and certifies to Congress not later than
June 1, 1998, that an applicable number greater than the number
specified by the Secretary would be inconsistent with the cost-
effective management of the defense acquisition system to
obtain best value equipment and would adversely affect military
readiness.
 (B) The Secretary shall include with such a certification a
detailed explanation of each of the matters certified.
 (C) The authority of the Secretary under subparagraph (A)
may only be delegated to the Deputy Secretary of Defense.
 (3) For purposes of this subsection, the term ``defense
acquisition personnel'' means military and civilian personnel
(other than civilian personnel who are employed at a
maintenance depot) who are assigned to, or employed in,
acquisition organizations of the Department of Defense (as
specified in Department of Defense Instruction numbered 5000.58
dated January 14, 1992).
 (b) Report on Specific Acquisition Positions Previously
Eliminated.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to
Congress a report on reductions in the defense acquisition
workforce made since fiscal year 1989. The report shall show
aggregate reductions by fiscal year and shall show for each
fiscal year reductions identified by specific job title,
classification, or position. The report shall also identify
those reductions carried out pursuant to law (and how the
Secretary implemented any statutory requirement for such
reductions, including definition of the workforce subject to
the reduction) and those reductions carried out as a result of
base closures and realignments under the so-called BRAC
process. The Secretary shall include in the report a definition
of the term ``defense acquisition workforce'' that is to be
applied uniformly throughout the Department of Defense.
 (c) Implementation Plan To Streamline and Improve
Acquisition Organizations.--(1) Not later than April 1, 1998,
the Secretary of Defense shall submit to Congress a report
containing a plan to streamline the acquisition organizations,
workforce, and infrastructure of the Department of Defense. The
Secretary shall include with the report a detailed discussion
of the recommendations of the Secretary based on the review
under subsection (d) and the assessment of the Task Force on
Defense Reform pursuant to subsection (e), together with a
request for the enactment of any legislative changes necessary
for implementation of the plan. The Secretary shall include in
the report the results of the review under subsection (d) and
the independent assessment of the Task Force on Defense Reform
pursuant to subsection (e).
 (2) In carrying out this subsection and subsection (d), the
Secretary of Defense shall formally consult with the Chairman
of the Joint Chiefs of Staff, the Director of Program Analysis
and Evaluation, the Under Secretary of Defense (Comptroller),
and the Under Secretary for Acquisition and Technology.
 (d) Review of Acquisition Organizations and Functions.--The
Secretary of Defense shall conduct a review of the
organizations and functions of the Department of Defense
acquisition activities and of the personnel required to carry
out those functions. The review shall identify the following:
 (1) Opportunities for cross-service, cross-
 functional arrangements within the military services
 and defense agencies.
 (2) Specific areas of overlap, duplication, and
 redundancy among the various acquisition organizations.
 (3) Opportunities to further streamline acquisition
 processes.
 (4) Benefits of an enhanced Joint Requirements
 Oversight Council in the acquisition process.
 (5) Alternative consolidation options for
 acquisition organizations.
 (6) Alternative methods for performing industry
 oversight and quality assurance.
 (7) Alternative options to shorten the procurement
 cycle.
 (8) Alternative acquisition infrastructure
 reduction options within current authorities.
 (9) Alternative organizational arrangements that
 capitalize on core acquisition competencies among the
 military services and defense agencies.
 (10) Future acquisition personnel requirements of
 the Department.
 (11) Adequacy of the Program, Plans, and Budgeting
 System in fulfilling current and future acquisition
 needs of the Department.
 (12) Effect of technology and advanced management
 tools in the future acquisition system.
 (13) Applicability of more flexible alternative
 approaches to the current civil service system for the
 acquisition workforce.
 (14) Adequacy of Department of Defense Instruction
 numbered 5000.58 dated January 14, 1992.
 (e) Duties of Task Force on Defense Reform to Include
Consideration Of Acquisition Organizations.--(1) The Secretary
of Defense shall require that the areas of study of the Task
Force on Defense Reform (established by the Secretary of
Defense on May 14, 1997, and headed by the Deputy Secretary of
Defense) include an examination of the missions, functions, and
responsibilities of the various acquisition organizations of
the Department of Defense, including the acquisition workforce
of the Department. In carrying out that examination of those
organizations and that workforce, the Task Force shall identify
areas of duplication in defense acquisition organization and
recommend to the Secretary options to streamline, reduce, and
eliminate redundancies.
 (2) The examination of the missions, functions, and
responsibilities of the various acquisition organizations of
the Department of Defense under paragraph (1) shall include the
following:
 (A) An assessment of benefits of consolidation or
 selected elimination of Department of Defense
 acquisition organizations.
 (B) An assessment of the opportunities to
 streamline the defense acquisition infrastructure that
 were realized as a result of the enactment of the
 Federal Acquisition Streamlining Act of 1994 (Public
 Law 103-355) and the Clinger-Cohen Act of 1996
 (divisions D and E of Public Law 104-106) or as result
 of other acquisition reform initiatives implemented
 administratively during the period from 1993 through
 1997.
 (C) An assessment of such other options for
 streamlining or restructuring the defense acquisition
 infrastructure as the Task Force considers appropriate
 and as can be carried out under existing provisions of
 law.
 (3) Not later than March 1, 1998, the Task Force shall
submit to the Secretary a report on the results of its review
of the acquisition organizations of the Department of Defense,
including any recommendations of the Task Force for
improvements to those organizations.
 (f) Technical Reference Correction.--Section 1721(c) of
title 10, United States Code, is amended by striking out
``November 25, 1988'' and inserting in lieu thereof ``November
12, 1996''.

 Subtitle C--Department of Defense Schools and Centers

SEC. 921. PROFESSIONAL MILITARY EDUCATION SCHOOLS.

 (a) Component Institutions of the National Defense
University.--(1) Chapter 108 of title 10, United States Code,
is amended by adding at the end the following new section:

``Sec. 2165. National Defense University: component institutions

 ``(a) In General.--There is a National Defense University
in the Department of Defense.
 ``(b) Component Institutions.--The National Defense
University consists of the following institutions:
 ``(1) The National War College.
 ``(2) The Industrial College of the Armed Forces.
 ``(3) The Armed Forces Staff College.
 ``(4) The Institute for National Strategic Studies.
 ``(5) The Information Resources Management
 College.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2165. National Defense University: component institutions.''.

 (b) Marine Corps University as Professional Military
Education School.--Subsection (d) of section 2162 of such title
is amended to read as follows:
 ``(d) Professional Military Education Schools.--This
section applies to each of the following professional military
education schools:
 ``(1) The National Defense University.
 ``(2) The Army War College.
 ``(3) The College of Naval Warfare.
 ``(4) The Air War College.
 ``(5) The United States Army Command and General
 Staff College.
 ``(6) The College of Naval Command and Staff.
 ``(7) The Air Command and Staff College.
 ``(8) The Marine Corps University.''.
 (c) Repeal of Duplicative Definition.--Section 1595(d) of
such title is amended--
 (1) by striking out ``(1)'' before ``In the case of
 ''; and
 (2) by striking out paragraph (2).

SEC. 922. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

 (a) Institution of the National Defense University.--
Subsection (b) of section 2165 of title 10, United States Code,
as added by section 921(a)(1), is amended by adding at the end
the following new paragraph:
 ``(6) The Center for Hemispheric Defense
 Studies.''.
 (b) Civilian Faculty Members.--Section 1595 of title 10,
United States Code, is amended by striking out subsections (e)
and (f) and inserting in lieu thereof the following:
 ``(e) Applicability to Director and Deputy Director at
Certain Institutions.--In addition to the persons specified in
subsection (a), this section also applies with respect to the
Director and the Deputy Director of the following:
 ``(1) The George C. Marshall European Center for
 Security Studies.
 ``(2) The Asia-Pacific Center for Security Studies.
 ``(3) The Center for Hemispheric Defense
 Studies.''.

SEC. 923. CORRECTION TO REFERENCE TO GEORGE C. MARSHALL EUROPEAN CENTER
 FOR SECURITY STUDIES.

 (a) Correction to Reference to Name of Center.--Subsection
(a) of section 506 of the Intelligence Authorization Act,
Fiscal Year 1990 (Public Law 101-193; 8 U.S.C. 1430 note), is
amended by striking out ``the United States Army Russian
Institute'' and inserting in lieu thereof ``the George C.
Marshall European Center for Security Studies''.
 (b) Section Heading.--The heading of such section is
amended to read as follows:

``requirements for citizenship for staff of george c. marshall european
 center for security studies''.

 Subtitle D--Department of Defense Intelligence Matters

SEC. 931. TRANSFER OF CERTAIN MILITARY DEPARTMENT PROGRAMS FROM TIARA
 BUDGET AGGREGATION.

 (a) Transfer.--Effective March 1, 1998, the Secretary of
Defense shall, for each program identified by the Secretary
under subsection (c)(2), transfer the management and budgeting
of funds for that program from the TIARA budget aggregation to
a nonintelligence budget activity of the military department
responsible for that program.
 (b) Assessment.--The Secretary of Defense shall conduct an
assessment of the policy of the Department of Defense that is
used for determining the programs of the Department that are
included within the TIARA budget aggregation. In conducting the
assessment, the Secretary--
 (1) shall consider whether the current policy is in
 need of revision to reflect changes in technology and
 battlefield use of TIARA systems;
 (2) shall specifically consider the appropriateness
 of the continued inclusion in the TIARA budget
 aggregation of each of the programs described in
 subsection (e); and
 (3) may consider the appropriateness of the
 continued inclusion in the TIARA budget aggregation of
 any other program (in addition to the programs
 described to in subsection (e)) that as of the date of
 the enactment of this Act is managed and budgeted as
 part of the TIARA budget aggregation.
 (c) Report.--Not later than March 1, 1998, the Secretary of
Defense shall submit to Congress a report on the assessment
carried out under section (b). The Secretary shall include in
the report--
 (1) a description of any proposed changes to
 Department of Defense policies for determining which
 programs are included in the TIARA budget aggregation;
 and
 (2) identification of each program (among the
 programs considered pursuant to paragraphs (2) and (3)
 of subsection (b)) for which the management and
 budgeting of funds is to be transferred under
 subsection (a).
 (d) Identification of Programs.--(1) In specifying the
programs to be included on the list under subsection (c)(2),
the Secretary--
 (A) shall (except as otherwise provided pursuant to
 a waiver under paragraph (2)) include each program
 described in subsection (e); and
 (B) may include such additional programs considered
 in the assessment pursuant to subsection (b)(3) as the
 Secretary determines appropriate.
 (2) The Secretary, after considering the results of the
assessment under subsection (c), may waive the applicability of
paragraph (1)(A) to any program described in subsection (e).
The Secretary shall include in the report under subsection (c)
identification of each such program for which the Secretary has
granted such a waiver and supporting rationale for each waiver.
 (e) Covered Programs.--The programs described in this
subsection are the following (each of which, as of the date of
the enactment of this Act, is managed and budgeted as part of
the TIARA budget aggregation):
 (1) Each targeting or target acquisition program of
 the Department of Defense, including the Joint
 Surveillance and Target Attack Radar System (JSTARS)
 and the Advanced Deployable System.
 (2) Each Tactical Warning and Attack Assessment
 program of the Department of Defense, including the
 Defense Support Program, the Space-Based Infrared
 Program, and early warning radars.
 (3) Each tactical communications system of the
 Department of Defense, including the Joint Tactical
 Terminal.
 (f) TIARA Budget Aggregation Defined.--For purposes of this
section, the term ``TIARA budget aggregation'' means the
aggregation of programs of the Department of Defense for which
funds are managed and budgeted through a common designation as
Tactical Intelligence and Related Activities (TIARA) of the
Department of Defense.

SEC. 932. REPORT ON COORDINATION OF ACCESS OF COMMANDERS AND DEPLOYED
 UNITS TO INTELLIGENCE COLLECTED AND ANALYZED BY THE
 INTELLIGENCE COMMUNITY.

 (a) Findings.--Congress makes the following findings:
 (1) Coordination of operational intelligence
 support for the commanders of the combatant commands
 and deployed units of the Armed Forces has proven to be
 inadequate.
 (2) Procedures used to reconcile information among
 various intelligence community and Department of
 Defense data bases have proven to be inadequate and,
 being inadequate, have diminished the usefulness of
 that information and have precluded commanders and
 planners within the Armed Forces from fully benefiting
 from key information that should have been available to
 them.
 (3) Excessive compartmentalization of
 responsibilities and information within the Department
 of Defense and the other elements of the intelligence
 community has resulted in inaccurate analysis of
 important intelligence material.
 (4) Excessive restrictions on the distribution of
 information within the executive branch have
 disadvantaged units of the Armed Forces that would have
 benefited most from the information.
 (5) Procedures used in the Department of Defense to
 ensure that critical intelligence information is
 provided to the right combat units in a timely manner
 failed during the Persian Gulf War and, as a result,
 information about potential chemical weapons storage
 locations did not reach the units that eventually
 destroyed those storage areas.
 (6) A recent, detailed review of the events leading
 to and following the destruction of chemical weapons by
 members of the Armed Forces at Khamisiyah, Iraq, during
 the Persian Gulf War has revealed a number of
 inadequacies in the way the Department of Defense and
 the other elements of the intelligence community
 handled, distributed, recorded, and stored intelligence
 information about the threat of exposure of United
 States forces to chemical weapons and the toxic agents
 in those weapons.
 (7) The inadequacy of procedures for recording the
 receipt of, and reaction to, intelligence reports
 provided by the intelligence community to combat units
 of the Armed Forces during the Persian Gulf War has
 caused it to be impossible to analyze the failures in
 transmission of intelligence-related information on the
 location of chemical weapons at Khamisiyah, Iraq, that
 resulted in the demolition of chemical weapons by
 members of the Armed Forces unaware of the hazards to
 which they were exposed.
 (b) Report Requirement.--Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress a report that
identifies the specific actions that have been taken or are
being taken to ensure that there is adequate coordination of
access of commanders of the combatant commands and deployed
units of the Armed Forced to intelligence collected and
analyzed by the intelligence community.

SEC. 933. PROTECTION OF IMAGERY, IMAGERY INTELLIGENCE, AND GEOSPATIAL
 INFORMATION AND DATA.

 (a) Protection of Information on Capabilities.--Paragraph
(1)(B) of section 455(b) of title 10, United States Code, is
amended by inserting ``, or capabilities,'' after ``methods''.
 (b) Products Protected.--(1) Paragraph (2) of such section
is amended to read as follows:
 ``(2) In this subsection, the term `geodetic product' means
imagery, imagery intelligence, or geospatial information.''.
 (2) Section 467(4) of title 10, United States Code, is
amended--
 (A) by inserting ``and'' at the end of subparagraph
 (A);
 (B) in subparagraph (B), by striking out ``and
 geodetic data; and'' and inserting in lieu thereof
 ``geodetic data, and related products.''; and
 (C) by striking out subparagraph (C).

SEC. 934. POW/MIA INTELLIGENCE ANALYSIS.

 (a) Intelligence Analysis.--The Director of Central
Intelligence, in consultation with the Secretary of Defense,
shall provide intelligence analysis on matters concerning
prisoners of war and missing persons (as defined in chapter 76
of title 10, United States Code) to all departments and
agencies of the Federal Government involved in such matters.
 (b) Use of Intelligence in Analysis of POW/MIA Cases in
Department of Defense.--The Secretary of Defense shall ensure
that the Defense Prisoner of War/Missing Personnel Office of
the Department of Defense takes into full account all
intelligence regarding matters concerning prisoners of war and
missing persons (as defined in chapter 76 of title 10, United
States Code) in analyzing cases involving such persons.

 TITLE X--GENERAL PROVISIONS

 Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authority for obligation of unauthorized fiscal year 1997
 defense appropriations.
Sec. 1004. Authorization of prior emergency supplemental appropriations
 for fiscal year 1997.
Sec. 1005. Increase in fiscal year 1996 transfer authority.
Sec. 1006. Revision of authority for Fisher House trust funds.
Sec. 1007. Flexibility in financing closure of certain outstanding
 contracts for which a small final payment is due.
Sec. 1008. Biennial financial management improvement plan.
Sec. 1009. Estimates and requests for procurement and military
 construction for the reserve components.
Sec. 1010. Sense of Congress regarding funding for reserve component
 modernization not requested in President's budget.
Sec. 1011. Management of working-capital funds.
Sec. 1012. Authority of Secretary of Defense to settle claims relating
 to pay, allowances, and other benefits.
Sec. 1013. Payment of claims by members for loss of personal property
 due to flooding in Red River Basin.
Sec. 1014. Advances for payment of public services.
Sec. 1015. United States Man and the Biosphere Program limitation.

 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Procedures for sale of vessels stricken from the Naval Vessel
 Register.
Sec. 1022. Authority to enter into a long-term charter for a vessel in
 support of the Surveillance Towed-Array Sensor (SURTASS)
 program.
Sec. 1023. Transfer of two specified obsolete tugboats of the Army.
Sec. 1024. Congressional review period with respect to transfer of ex-
 U.S.S. Hornet (CV-12) and ex-U.S.S. Midway (CV-41).
Sec. 1025. Transfers of naval vessels to certain foreign countries.
Sec. 1026. Reports relating to export of vessels that may contain
 polychlorinated biphenyls.
Sec. 1027. Conversion of defense capability preservation authority to
 Navy shipbuilding capability preservation authority.

 Subtitle C--Counter-Drug Activities

Sec. 1031. Use of National Guard for State drug interdiction and
 counter-drug activities.
Sec. 1032. Authority to provide additional support for counter-drug
 activities of Mexico.
Sec. 1033. Authority to provide additional support for counter-drug
 activities of Peru and Colombia.
Sec. 1034. Annual report on development and deployment of narcotics
 detection technologies.

 Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1041. Repeal of miscellaneous reporting requirements.
Sec. 1042. Study of transfer of modular airborne fire fighting system.
Sec. 1043. Overseas infrastructure requirements.
Sec. 1044. Additional matters for annual report on activities of the
 General Accounting Office.
Sec. 1045. Eye safety at small arms firing ranges.
Sec. 1046. Reports on Department of Defense procedures for investigating
 military aviation accidents and for notifying and assisting
 families of victims.

 Subtitle E--Matters Relating to Terrorism

Sec. 1051. Oversight of counterterrorism and antiterrorism activities;
 report.
Sec. 1052. Provision of adequate troop protection equipment for Armed
 Forces personnel engaged in peace operations; report on
 antiterrorism activities and protection of personnel.

 Subtitle F--Matters Relating to Defense Property

Sec. 1061. Lease of nonexcess personal property of military departments.
Sec. 1062. Lease of nonexcess property of Defense Agencies.
Sec. 1063. Donation of excess chapel property to churches damaged or
 destroyed by arson or other acts of terrorism.
Sec. 1064. Authority of the Secretary of Defense concerning disposal of
 assets under cooperative agreements on air defense in Central
 Europe.
Sec. 1065. Sale of excess, obsolete, or unserviceable ammunition and
 ammunition components.
Sec. 1066. Transfer of B-17 aircraft to museum.
Sec. 1067. Report on disposal of excess and surplus materials.

 Subtitle G--Other Matters

Sec. 1071. Authority for special agents of the Defense Criminal
 Investigative Service to execute warrants and make arrests.
Sec. 1072. Study of investigative practices of military criminal
 investigative organizations relating to sex crimes.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Sustainment and operation of the Global Positioning System.
Sec. 1075. Protection of safety-related information voluntarily provided
 by air carriers.
Sec. 1076. National Guard Challenge Program to create opportunities for
 civilian youth.
Sec. 1077. Disqualification from certain burial-related benefits for
 persons convicted of capital crimes.
Sec. 1078. Restrictions on the use of human subjects for testing of
 chemical or biological agents.
Sec. 1079. Treatment of military flight operations.
Sec. 1080. Naturalization of certain foreign nationals who serve
 honorably in the Armed Forces during a period of conflict.
Sec. 1081. Applicability of certain pay authorities to members of
 specified independent study organizations.
Sec. 1082. Display of POW/MIA flag.
Sec. 1083. Program to commemorate 50th anniversary of the Korean
 conflict.
Sec. 1084. Commendation of members of the Armed Forces and Government
 civilian personnel who served during the Cold War; certificate
 of recognition.
Sec. 1085. Sense of Congress on granting of statutory Federal charters.
Sec. 1086. Sense of Congress regarding military voting rights.
Sec. 1087. Designation of Bob Hope as an honorary veteran of the Armed
 Forces of the United States.
Sec. 1088. Five-year extension of aviation insurance program.

 Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

 (a) Authority To Transfer Authorizations.--(1) Upon
determination by the Secretary of Defense that such action is
necessary in the national interest, the Secretary may transfer
amounts of authorizations made available to the Department of
Defense in this division for fiscal year 1998 between any such
authorizations for that fiscal year (or any subdivisions
thereof). Amounts of authorizations so transferred shall be
merged with and be available for the same purposes as the
authorization to which transferred.
 (2) The total amount of authorizations that the Secretary
of Defense may transfer under the authority of this section may
not exceed $2,000,000,000.
 (b) Limitations.--The authority provided by this section to
transfer authorizations--
 (1) may only be used to provide authority for items
 that have a higher priority than the items from which
 authority is transferred; and
 (2) may not be used to provide authority for an
 item that has been denied authorization by Congress.
 (c) Effect on Authorization Amounts.--A transfer made from
one account to another under the authority of this section
shall be deemed to increase the amount authorized for the
account to which the amount is transferred by an amount equal
to the amount transferred.
 (d) Notice to Congress.--The Secretary shall promptly
notify Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

 (a) Status of Classified Annex.--The Classified Annex
prepared by the committee of conference to accompany the
conference report on the bill H.R. 1119 of the One Hundred
Fifth Congress and transmitted to the President is hereby
incorporated into this Act.
 (b) Construction With Other Provisions of Act.--The amounts
specified in the Classified Annex are not in addition to
amounts authorized to be appropriated by other provisions of
this Act.
 (c) Limitation on Use of Funds.--Funds appropriated
pursuant to an authorization contained in this Act that are
made available for a program, project, or activity referred to
in the Classified Annex may only be expended for such program,
project, or activity in accordance with such terms, conditions,
limitations, restrictions, and requirements as are set out for
that program, project, or activity in the Classified Annex.
 (d) Distribution of Classified Annex.--The President shall
provide for appropriate distribution of the Classified Annex,
or of appropriate portions of the annex, within the executive
branch of the Government.

SEC. 1003. AUTHORITY FOR OBLIGATION OF UNAUTHORIZED FISCAL YEAR 1997
 DEFENSE APPROPRIATIONS.

 (a) Authority.--The amounts described in subsection (b) may
be obligated and expended for programs, projects, and
activities of the Department of Defense in accordance with
fiscal year 1997 defense appropriations.
 (b) Covered Amounts.--The amounts referred to in subsection
(a) are the amounts provided for programs, projects, and
activities of the Department of Defense in fiscal year 1997
defense appropriations that are in excess of the amounts
provided for such programs, projects, and activities in fiscal
year 1997 defense authorizations.
 (c) Definitions.--For the purposes of this section:
 (1) Fiscal year 1997 defense appropriations.--The
 term ``fiscal year 1997 defense appropriations'' means
 amounts appropriated or otherwise made available to the
 Department of Defense for fiscal year 1997 in the
 Department of Defense Appropriations Act, 1997 (as
 contained in section 101(b) of Public Law 104-208).
 (2) Fiscal year 1997 defense authorizations.--The
 term ``fiscal year 1997 defense authorizations'' means
 amounts authorized to be appropriated for the
 Department of Defense for fiscal year 1997 in the
 National Defense Authorization Act for Fiscal Year 1997
 (Public Law 104-201).

SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS
 FOR FISCAL YEAR 1997.

 Amounts authorized to be appropriated to the Department of
Defense for fiscal year 1997 in the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201) are
hereby adjusted, with respect to any such authorized amount, by
the amount by which appropriations pursuant to such
authorization were increased (by a supplemental appropriation)
or decreased (by a rescission), or both, in the 1997 Emergency
Supplemental Appropriations Act for Recovery from Natural
Disasters, and for Overseas Peacekeeping Efforts, Including
Those in Bosnia (Public Law 105-18).

SEC. 1005. INCREASE IN FISCAL YEAR 1996 TRANSFER AUTHORITY.

 Section 1001(a)(2) of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106; 100 Stat. 414) is
amended by striking out ``$2,000,000,000'' and inserting in
lieu thereof ``$3,100,000,000''.

SEC. 1006. REVISION OF AUTHORITY FOR FISHER HOUSE TRUST FUNDS.

 (a) Correction To Eliminate Use of Term Associated With
Funding Authorities.--Section 2221(c) of title 10, United
States Code, is amended by striking out ``or maintenance'' each
place it appears.
 (b) Corpus of Air Force Trust Fund.--The Secretary of the
Air Force shall deposit in the Fisher House Trust Fund,
Department of the Air Force, an amount that the Secretary
determines appropriate to establish the corpus of the fund.

SEC. 1007. FLEXIBILITY IN FINANCING CLOSURE OF CERTAIN OUTSTANDING
 CONTRACTS FOR WHICH A SMALL FINAL PAYMENT IS DUE.

 (a) Closure of Outstanding Contracts.--The Secretary of
Defense may make the final payment on a contractto which this
section applies from the account established pursuant to subsection
(d).
 (b) Covered Contracts.--This section applies to any
contract of the Department of Defense--
 (1) that was entered into before December 5, 1990;
 and
 (2) for which an unobligated balance of an
 appropriation that had been initially applied to the
 contract was canceled before December 5, 1990, pursuant
 to section 1552 of title 31, United States Code, as in
 effect before that date.
 (c) Authority Limited to Small Final Payments.--The
Secretary may use the authority provided by this section only
for a contract for which the amount of the final payment due is
not greater than the micro-purchase threshold (as defined in
section 32 of the Office of Federal Procurement Policy Act (41
U.S.C. 428)).
 (d) Account.--The Secretary may establish an account for
the purposes of this section. The Secretary may from time to
time transfer into the account, from funds made available to
the Department of Defense for procurement or for research,
development, test, and evaluation, such amounts as the
Secretary determines to be needed for the purposes of the
account, except that the total of such transfers may not exceed
$1,000,000. Amounts in the account may be used only for the
purposes of this section.
 (e) Closure of Account.--When the Secretary determines that
all contracts to which this section applies have been closed
and there is no further need for the account established under
subsection (d), the Secretary shall close the account. Any
amounts remaining in the account shall be covered into the
Treasury as miscellaneous receipts.

SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

 (a) Biennial Plan.--(1) Chapter 131 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 2222. Biennial financial management improvement plan

 ``(a) Biennial Plan Required.--The Secretary of Defense
shall submit to Congress a biennial strategic plan for the
improvement of financial management within the Department of
Defense. The plan shall be submitted not later than September
30 of each even-numbered year.
 ``(b) Concept of Operations.--Each plan under subsection
(a) shall include a statement of the Secretary of Defense's
concept of operations for the financial management of the
Department of Defense. Each such statement shall be a clear
description of the manner in which the Department's financial
management operations are carried out or will be carried out
under the improvements set forth in the plan under subsection
(a), including identification of operations that must be
performed.
 ``(c) Matters To Be Addressed in Plan.--(1) Each plan under
subsection (a) shall address all aspects of financial
management within the Department of Defense, including the
finance systems, accounting systems, and data feeder systems of
the Department that support financial functions of the
Department.
 ``(2) For the purposes of paragraph (1), a data feeder
system is an automated or manual system from which information
is derived for a financial management system or an accounting
system.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``2222. Biennial financial management improvement plan.''.

 (b) Additional Content of First Plan.--The first financial
management improvement plan submitted under section 2222 of
title 10, United States Code (as added by subsection (a)),
shall include the following:
 (1) A description of the costs and benefits of
 integrating the various finance and accounting systems
 of the Department of Defense and reducing the total
 number of such systems, together with the Secretary's
 assessment of the feasibility of implementing such an
 integration.
 (2) Identification of problems with the accuracy of
 data included in the finance systems, accounting
 systems, and data feeder systems that support financial
 functions of the Department of Defense, together with a
 description of the actions that the Secretary can take
 to address those problems.
 (3) Identification of weaknesses in the internal
 controls of the systems referred to in paragraph (2),
 together with a description of the actions that the
 Secretary can take to address those weaknesses.
 (4) A description of actions that the Secretary can
 take to eliminate negative unliquidated obligations,
 unmatched disbursements, and in-transit disbursements
 and to avoid such obligations and disbursements in the
 future.
 (5) A description of the status of the efforts
 being undertaken in the Department to consolidate and
 eliminate--
 (A) redundant or unneeded finance systems;
 and
 (B) redundant or unneeded accounting
 systems.
 (6) A description of efforts being undertaken to
 consolidate or eliminate redundant personnel data
 systems, acquisition data systems, asset accounting
 systems, time and attendance systems, and other data
 feeder systems of the Department.
 (7) A description of efforts being undertaken to
 integrate the data feeder systems of the Department
 with the finance and accounting systems of the
 Department.
 (8) A description of problems with the organization
 or performance of the Operating Locations and Service
 Centers of the Defense Finance and Accounting Service,
 together with a description of the actions the
 Secretary can take to address those problems.
 (9) A description of the costs and benefits of
 reorganizing the Operating Locations and Service
 Centers of the Defense Finance and Accounting Service
 according tofunction, together with the Secretary's
assessment of the feasibility of carrying out such a reorganization.
 (10) A description of the costs and benefits of
 contracting for private-sector performance of specific
 functions currently performed by the Defense Finance
 and Accounting Service, together with the Secretary's
 assessment of the feasibility of contracting for such
 performance.
 (11) A description of actions that can be taken to
 ensure that each comptroller position (and comparable
 position) in the Department of Defense, whether filled
 by a member of the Armed Forces or by a civilian
 employee, is held by a person who, by reason of
 education, technical competence, and experience, has
 the core competencies for financial management.
 (12) A description of any other change in the
 financial management structure of the Department or
 revision of the financial processes and business
 practices of the Department that the Secretary
 considers necessary to improve financial management in
 the Department.
 (c) Additional Matters.--For each of the problems and
actions identified pursuant to paragraphs (1) through (12) of
subsection (b) or in any other part of the plan covered by that
subsection, the Secretary shall include statements of
objectives, performance measures, and schedules and shall
specify the individual and organizational responsibilities.
 (d) Definition.--In subsection (b), the term ``data feeder
system'' has the meaning given that term in subsection (c)(2)
of section 2222 of title 10, United States Code, as added by
subsection (a).

SEC. 1009. ESTIMATES AND REQUESTS FOR PROCUREMENT AND MILITARY
 CONSTRUCTION FOR THE RESERVE COMPONENTS.

 (a) Detailed Presentation in Future-Years Defense
Program.--Section 10543 of title 10, United States Code, is
amended--
 (1) by inserting ``(a) In General.--'' before ``The
 Secretary of Defense''; and
 (2) by adding at the end the following:
 ``(b) Associated Annexes.--The associated annexes of the
future-years defense program shall specify, at the same level
of detail as is set forth in the annexes for the active
components, the amount requested for--
 ``(1) procurement of each item of equipment to be
 procured for each reserve component; and
 ``(2) each military construction project to be
 carried out for each reserve component, together with
 the location of the project.
 ``(c) Report.--(1) If the aggregate of the amounts
specified in paragraphs (1) and (2) of subsection (b) for a
fiscal year is less than the amount equal to 90 percent of the
average authorized amount applicable for that fiscal year under
paragraph (2), the Secretary of Defense shall submit to
Congress a report specifying for each reserve component the
additional items of equipment that would be procured, and the
additional military construction projects that would be carried
out, if that aggregate amount were an amount equal to such
average authorized amount. The report shall be at the same
level of detail as is required by subsection (b).
 ``(2) In this subsection, the term `average authorized
amount', with respect to a fiscal year, means the average of--
 ``(A) the aggregate of the amounts authorized to be
 appropriated for the preceding fiscal year for the
 procurement of items of equipment, and for military
 construction, for the reserve components; and
 ``(B) the aggregate of the amounts authorized to be
 appropriated for the fiscal year preceding the fiscal
 year referred to in subparagraph (A) for the
 procurement of items of equipment, and for military
 construction, for the reserve components.''.
 (b) Prohibition.--The level of detail provided for
procurement and military construction in the future-years
defense programs for fiscal years after fiscal year 1998 may
not be less than the level of detail provided for procurement
and military construction in the future-years defense program
for fiscal year 1998.

SEC. 1010. SENSE OF CONGRESS REGARDING FUNDING FOR RESERVE COMPONENT
 MODERNIZATION NOT REQUESTED IN PRESIDENT'S BUDGET.

 (a) Criteria.--It is the sense of Congress that, to the
maximum extent practicable, Congress should authorize
appropriations for procurement of reserve component
modernization equipment for a fiscal year for equipment that is
not included in the budget of the President for that fiscal
year only if--
 (1) there is a requirement for that equipment that
 has been validated by the Joint Requirements Oversight
 Council;
 (2) procurement of that equipment is included for
 reserve component modernization in the modernization
 plan of the military department concerned and is
 incorporated into the current future-years defense
 program;
 (3) procurement of that equipment is consistent
 with planned use of reserve component forces under
 Department of Defense war plans; and
 (4) funds for that procurement, if authorized and
 appropriated for that fiscal year, could be obligated
 during that fiscal year.
 (b) Consideration of Views of Chairman of Joint Chiefs of
Staff.--It is further the sense of Congress that, in applying
the criteria set forth in subsection (a) with respect to
procurement of reserve component modernization equipment,
Congress should obtain the views of the Chairman of the Joint
Chiefs of Staff on whether, under Department of Defense war
plans, that equipment is appropriate for procurement for, and
assignment to, reserve component forces.

SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS.

 (a) Contracting for Capital Assets Procurement in Advance
of Funds.--Section 2208 of title 10, United States Code, is
amended by striking out subsection (k) and inserting in lieu
thereof the following new subsection:
 ``(k)(1) Subject to paragraph (2), a contract for the
procurement of a capital asset financed by a working-capital
fund may be awarded in advance of the availability of funds in
the working-capital fund for the procurement.
 ``(2) Paragraph (1) applies to any of the following capital
assets that have a development or acquisition cost of not less
than $100,000:
 ``(A) An unspecified minor military construction
 project under section 2805(c)(1) of this title.
 ``(B) Automatic data processing equipment or
 software.
 ``(C) Any other equipment.
 ``(D) Any other capital improvement.''.
 (b) Use of Advance Billing.--Such section is further
amended by adding at the end the following new subsection:
 ``(l)(1) An advance billing of a customer of a working-
capital fund may be made if the Secretary of the military
department concerned submits to Congress written notification
of the advance billing within 30 days after the end of the
month in which the advanced billing was made. The notification
shall include the following:
 ``(A) The reasons for the advance billing.
 ``(B) An analysis of the effects of the advance
 billing on military readiness.
 ``(C) An analysis of the effects of the advance
 billing on the customer.
 ``(2) The Secretary of Defense may waive the notification
requirements of paragraph (1)--
 ``(A) during a period war or national emergency; or
 ``(B) to the extent that the Secretary determines
 necessary to support a contingency operation.
 ``(3) In this subsection:
 ``(A) The term `advance billing', with respect to a
 working-capital fund, means a billing of a customer by
 the fund, or a requirement for a customer to reimburse
 or otherwise credit the fund, for the cost of goods or
 services provided (or for other expenses incurred) on
 behalf of the customer that is rendered or imposed
 before the customer receives the goods or before the
 services have been performed.
 ``(B) The term `customer' means a requisitioning
 component or agency.''.
 (c) Fiscal Year Limitations.--(1) The total amount of
advance billings for Department of the Navy working-capital
funds and the Defense Business Operations Fund may not exceed--
 (A) $1,000,000,000 for fiscal year 1998; and
 (B) $800,000,000 for fiscal year 1999.
 (2) For purposes of paragraph (1), the term ``advance
billing'' has the meaning given such term in section 2208(l)(3)
of title 10, United States Code, as added by subsection (b).

SEC. 1012. AUTHORITY OF SECRETARY OF DEFENSE TO SETTLE CLAIMS RELATING
 TO PAY, ALLOWANCES, AND OTHER BENEFITS.

 Section 3702(e) of title 31, United States Code, is
amended--
 (1) in paragraph (1), by striking out ``Comptroller
 General'' and inserting in lieu thereof ``Secretary of
 Defense''; and
 (2) by striking out paragraph (2) and inserting in
 lieu thereof the following new paragraph:
 ``(2) Payment of a claim settled under paragraph (1) shall
be made from an appropriation that is available, for the fiscal
year in which the payment is made, for the same purpose as the
appropriation to which the obligation claimed would have been
charged if the obligation had been timely paid.''.

SEC. 1013. PAYMENT OF CLAIMS BY MEMBERS FOR LOSS OF PERSONAL PROPERTY
 DUE TO FLOODING IN RED RIVER BASIN.

 (a) Payment Authorized.--Notwithstanding section 3721(e) of
title 31, United States Code, the Secretary of a military
department may pay the claim of a member of the Armed Forces
who resided (or whose dependents resided) in the vicinity of
Grand Forks Air Force Base, North Dakota, during April and May
1997 for loss and damage to personal propertyincurred by the
member as a direct result of the flooding in the Red River Basin during
such months.
 (b) Report on Department Policy.--The Secretary of Defense
shall submit to Congress a report describing the Department of
Defense policy regarding the payment of a claim by a member of
the Armed Forces who is not assigned to quarters of the United
States for losses and damage to personal property of the member
incurred at the member's residence as a result of a natural
disaster. The report shall include a description of the number
of such claims received over the past 10 years, the number of
claims paid, and the number of claims rejected. If the
Secretary determines the Department of Defense should modify
its policy in order to accept additional claims by members who
are not assigned to quarters of the United States for losses
and damage to personal property, the Secretary shall also
include in the report any legislative changes that the
Secretary considers necessary to enable the Secretary to
implement the policy change.

SEC. 1014. ADVANCES FOR PAYMENT OF PUBLIC SERVICES.

 (a) In General.--Subsection (a) of section 2396 of title
10, United States Code, is amended--
 (1) by striking out ``and'' at the end of paragraph
 (2);
 (2) by striking out the period at the end of
 paragraph (3) and inserting in lieu thereof ``; and'';
 and
 (3) by adding at the end the following new
 paragraph:
 ``(4) public service utilities.''.
 (b) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 2396. Advances for payments for compliance with foreign laws,
 rent in foreign countries, tuition, public utility
 services, and pay and supplies of armed forces of
 friendly foreign countries''.

 (2) The item relating to such section in the table of
sections at the beginning of chapter 141 of such title is
amended to read as follows:

``2396. Advances for payments for compliance with foreign laws, rent in
 foreign countries, tuition, public utility services, and pay
 and supplies of armed forces of friendly foreign countries.''.

SEC. 1015. UNITED STATES MAN AND THE BIOSPHERE PROGRAM LIMITATION.

 During fiscal year 1998, the Secretary of Defense may not
take any steps to carry out or support the United States Man
and the Biosphere Program or any related project.

 Subtitle B--Naval Vessels and Shipyards

SEC. 1021. PROCEDURES FOR SALE OF VESSELS STRICKEN FROM THE NAVAL
 VESSEL REGISTER.

 Section 7305(c) of title 10, United States Code, is amended
to read as follows:
 ``(c) Procedures for Sale.--(1) A vessel stricken from the
Naval Vessel Register and not subject to disposal under any
other law may be sold under this section.
 ``(2) In such a case, the Secretary may--
 ``(A) sell the vessel to the highest acceptable
 bidder, regardless of the appraised value of the
 vessel, after publicly advertising the sale of the
 vessel for a period of not less than 30 days; or
 ``(B) subject to paragraph (3), sell the vessel by
 competitive negotiation to the acceptable offeror who
 submits the offer that is most advantageous to the
 United States (taking into account price and such other
 factors as the Secretary determines appropriate).
 ``(3) Before entering into negotiations to sell a vessel
under paragraph (2)(B), the Secretary shall publish notice of
the intention to do so in the Commerce Business Daily
sufficiently in advance of initiating the negotiations that all
interested parties are given a reasonable opportunity to
prepare and submit proposals. The Secretary shall afford an
opportunity to participate in the negotiations to all
acceptable offerors submitting proposals that the Secretary
considers as having the potential to be the most advantageous
to the United States (taking into account price and such other
factors as the Secretary determines appropriate).''.

SEC. 1022. AUTHORITY TO ENTER INTO A LONG-TERM CHARTER FOR A VESSEL IN
 SUPPORT OF THE SURVEILLANCE TOWED-ARRAY SENSOR
 (SURTASS) PROGRAM.

 The Secretary of the Navy is authorized to enter into a
contract in accordance with section 2401 of title 10, United
States Code, for the charter, for a period through fiscal year
2003, of the vessel RV CORY CHOUEST (United States official
number 933435) in support of the Surveillance Towed-Array
Sensor (SURTASS) program.

SEC. 1023. TRANSFER OF TWO SPECIFIED OBSOLETE TUGBOATS OF THE ARMY.

 (a) Authority To Transfer Vessels.--The Secretary of the
Army may transfer the two obsolete tugboats of the Army
described in subsection (b) to the Brownsville Navigation
District, Brownsville, Texas.
 (b) Vessels Covered.--Subsection (a) applies to the
following two decommissioned tugboats of the Army, each of
which is listed as of the date of the enactment of this Act as
being surplus to the needs of the Army: the Normandy (LT-1971)
and the Salerno (LT-1953).
 (c) Transfers To Be at No Cost to United States.--A
transfer authorized by this section shall be made at no cost to
the United States.
 (d) Terms and Conditions.--The Secretary may require such
additional terms and conditions in connection with the
transfers authorized by this section as the Secretary considers
appropriate.

SEC. 1024. CONGRESSIONAL REVIEW PERIOD WITH RESPECT TO TRANSFER OF EX-
 U.S.S. HORNET (CV-12) AND EX-U.S.S. MIDWAY (CV-41).

 (a) Reduction in Congressional Review Period.--In applying
section 7306 of title 10, United States Code, with respect to
the transfer of a vessel specified in subsection (c),
subsection (d)(1)(B) of that section shall be applied by
substituting ``30 days'' for ``60 days''.
 (b) Waiver if Only One Qualified Entity Applies for
Transfer of Vessel.--If in the case of a vessel specified in
subsection (c) only a single qualified entity, as determined by
the Secretary of the Navy, applies for transfer of the vessel,
the Secretary may carry out the transfer of the vessel under
section 7306 of title 10, United States Code, without regard to
subsection (d)(1)(B) of that section. In such a case, the
transfer may be made only after 10 days of continuous session
of Congress (determined in the manner specified in section
7306(d)(2) of title 10, United States Code) have expired
following the date on which the Secretary submits to Congress a
certification that only a single qualified entity applied for
transfer of the vessel.
 (c) Covered Vessels.--This section applies to the following
vessels (each of which is a decommissioned aircraft carrier):
 (1) Ex-U.S.S. HORNET (CV-12).
 (2) Ex-U.S.S. MIDWAY (CV-41).

SEC. 1025. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

 (a) Authority.--The Secretary of the Navy is authorized to
transfer vessels to foreign countries on a sales basis under
section 21 of the Arms Export Control Act (22 U.S.C. 2761) as
follows:
 (1) To the Government of Brazil, the HUNLEY class
 submarine tender HOLLAND (AS 32).
 (2) To the Government of Chile, the KAISER class
 oiler ISHERWOOD (T-AO 191).
 (3) To the Government of Egypt:
 (A) The following frigates of the KNOX
 class:
 (i) The PAUL (FF 1080).
 (ii) The MILLER (FF 1091).
 (iii) The JESSE L. BROWN (FFT
 1089).
 (iv) The MOINESTER (FFT 1097).
 (B) The following frigates of the OLIVER
 HAZARD PERRY class:
 (i) The FAHRION (FFG 22).
 (ii) The LEWIS B. PULLER (FFG 23).
 (4) To the Government of Israel, the NEWPORT class
 tank landing ship PEORIA (LST 1183).
 (5) To the Government of Malaysia, the NEWPORT
 class tank landing ship BARBOUR COUNTY (LST 1195).
 (6) To the Government of Mexico, the KNOX class
 frigate ROARK (FF 1053).
 (7) To the Taipei Economic and Cultural
 Representative Office in the United States (the Taiwan
 instrumentality that is designated pursuant to section
 10(a) of the Taiwan Relations Act), the following
 frigates of the KNOX class:
 (A) The WHIPPLE (FF 1062).
 (B) The DOWNES (FF 1070).
 (8) To the Government of Thailand, the NEWPORT
 class tank landing ship SCHENECTADY (LST 1185).
 (b) Costs of Transfers.--Any expense incurred by the United
States in connection with a transfer authorized by subsection
(a) shall be charged to the recipient.
 (c) Repair and Refurbishment in United States Shipyards.--
To the maximum extent practicable, the Secretary of the Navy
shall require, as a condition of the transfer of a vessel under
this section, that the country to which the vessel is
transferred have such repair or refurbishment of the vessel as
is needed, before the vessel joins the naval forces of that
country, performed at a shipyard located in the United States,
including a United States Navy shipyard.
 (d) Expiration of Authority.--The authority to transfer a
vessel under subsection (a) shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.

SEC. 1026. REPORTS RELATING TO EXPORT OF VESSELS THAT MAY CONTAIN
 POLYCHLORINATED BIPHENYLS.

 (a) Reports Required.--Not later than March 1, 1998, the
Secretary of the Navy (with respect to the Navy), the
Administrator of the Maritime Administration (with respect to
the Maritime Administration), and the Administrator of the
Environmental Protection Agency (with respect to the
Environmental Protection Agency) shall each submit to Congress
a report on the implementation of the agreement between the
Department of the Navy and the Environmental Protection Agency
that became effective August 6, 1997, and that is titled
``Export of Naval Vessels that May Contain Polychlorinated
Biphenyls for Scrapping Outside the United States''.
 (b) Contents of Reports.--The reports required by
subsection (a) shall address, at a minimum, the following:
 (1) An assessment of the effects of the
 notification requirements regarding the export of
 vessels for scrapping, any impediments that those
 requirements may create for the export of vessels, and
 any changes to the agreement that may be required to
 address those impediments.
 (2) An explanation of the process by which it is
 determined which solid items containing polychlorinated
 biphenyls are readily removable and must be removed
 before the export of a vessel for scrapping, what types
 of polychlorinated biphenyls have been determined to be
 readily removable pursuant to this process, any
 impediments that such determinations may create for the
 export of vessels, and any changes to the agreement
 that may be required to address those impediments or to
 ensure protection of human health and the environment.
 (c) Amendments Relating to Disposal of Obsolete Vessels
From the National Defense Reserve Fleet.--Section 6 of the
National Maritime Heritage Act of 1994 (Public Law 103-451; 108
Stat. 4776; 16 U.S.C. 5405) is amended--
 (1) in subsections (a)(1) and (b)(2)--
 (A) by inserting ``or 510(i)'' after
 ``508''; and
 (B) by inserting ``or 1160(i)'' after
 ``1158'';
 (2) in subsection (b)(2), by striking out ``first
 6'' and inserting in lieu thereof ``first 8''; and
 (3) in subsection (c)(1)(A), by striking out
 ``1999'' and inserting in lieu thereof ``2001''.

SEC. 1027. CONVERSION OF DEFENSE CAPABILITY PRESERVATION AUTHORITY TO
 NAVY SHIPBUILDING CAPABILITY PRESERVATION
 AUTHORITY.

 (a) In General.--(1) Chapter 633 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 7315. Preservation of Navy shipbuilding capability

 ``(a) Shipbuilding Capability Preservation Agreements.--The
Secretary of the Navy may enter into an agreement, to be known
as a `shipbuilding capability preservation agreement', with a
shipbuilder under which the cost reimbursement rules described
in subsection (b) shall be applied to the shipbuilder under a
Navy contract for the construction of a ship. Such an agreement
may be entered into in any case in which the Secretary
determines that the application of such cost reimbursement
rules would facilitate the achievement of the policy objectives
set forth in section 2501(b) of this title.
 ``(b) Cost Reimbursement Rules.--The cost reimbursement
rules applicable under an agreement entered into under
subsection (a) are as follows:
 ``(1) The Secretary of the Navy shall, in
 determining the reimbursement due a shipbuilder for its
 indirect costs of performing a contract for the
 construction of a ship for the Navy, allow the
 shipbuilder to allocate indirect costs to its private
 sector work only to the extent of the shipbuilder's
 allocable indirect private sector costs, subject to
 paragraph (3).
 ``(2) For purposes of paragraph (1), the allocable
 indirect private sector costs of a shipbuilder are
 those costs of the shipbuilder that are equal to the
 sum of the following:
 ``(A) The incremental indirect costs
 attributable to such work.
 ``(B) The amount by which the revenue
 attributable to such private sector work
 exceeds the sum of--
 ``(i) the direct costs attributable
 to such private sector work; and
 ``(ii) the incremental indirect
 costs attributable to such private
 sector work.
 ``(3) The total amount of allocable indirect
 private sector costs for a contract covered by the
 agreement may not exceed the amount of indirect costs
 that a shipbuilder would have allocated to its private
 sector work during the period covered by the agreement
 in accordance with the shipbuilder's established
 accounting practices.
 ``(c) Authority To Modify Cost Reimbursement Rules.--The
cost reimbursement rules set forth in subsection (b) may be
modified by the Secretary of the Navy for a particular
agreement if the Secretary determines that modifications are
appropriate to the particular situation to facilitate
achievement of the policy set forth in section 2501(b) of this
title.
 ``(d) Applicability.--(1) An agreement entered into with a
shipbuilder under subsection (a) shall apply to each of the
following Navy contracts with the shipbuilder:
 ``(A) A contract that is in effect on the date on
 which the agreement is entered into.
 ``(B) A contract that is awarded during the term of
 the agreement.
 ``(2) In a shipbuilding capability preservation agreement
applicable to a shipbuilder, the Secretary may agree to apply
the cost reimbursement rules set forth in subsection (b) to
allocations of indirect costs to private sector work performed
by the shipbuilder only with respect to costs that the
shipbuilder incurred on or after the date of the enactment of
the National Defense Authorization Act for Fiscal Year 1998
under a contract between the shipbuilder and a private sector
customer of the shipbuilder that became effective on or after
January 26, 1996.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``7315. Preservation of Navy shipbuilding capability.''.

 (b) Implementation.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of the Navy shall
establish application procedures and procedures for expeditious
consideration of shipbuilding capability preservation
agreements as authorized by section 7315 of title 10, United
States Code, as added by subsection (a).
 (c) Report.--Not later than February 15, 1998, the
Secretary of the Navy shall submit to Congress a report on
applications for shipbuilding capability preservation
agreements under section 7315 of title 10, United States Code,
as added by subsection (a). The report shall specify the number
of the applications received, the number of the applications
approved, and a discussion of the reasons for disapproval of
any application disapproved.
 (d) Repeal of Superseded Provision.--Section 808 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106; 110 Stat. 393; 10 U.S.C. 2501 note) is repealed.

 Subtitle C--Counter-Drug Activities

SEC. 1031. USE OF NATIONAL GUARD FOR STATE DRUG INTERDICTION AND
 COUNTER-DRUG ACTIVITIES.

 (a) Relationship to Training and Readiness.--Subsection (b)
of section 112 of title 32, United States Code, is amended--
 (1) by inserting ``(1)'' before ``Under
 regulations''; and
 (2) by adding at the end the following new
 paragraphs:
 ``(2) To ensure that the use of units and personnel of the
National Guard of a State pursuant to a State drug interdiction
and counter-drug activities plan is not detrimental to the
training and readiness of such units and personnel, the
requirements of section 2012(d) of title 10 shall apply in
determining the drug interdiction and counter-drug activities
that units and personnel of the National Guard of a State may
perform.
 ``(3) Section 508 of this title, regarding the provision of
assistance to certain specified youth and charitable
organizations, shall apply in any case in which a unit or
member of the National Guard of a State is proposed to be used
pursuant to a State drug interdiction and counter-drug
activities plan to provide to an organization specified in
subsection (d) of such section any of the services described in
subsection (b) of such section or services regarding counter-
drug education.''.
 (b) Engineer-Type Activities.--Subsection (c) of such
section is amended--
 (1) by redesignating paragraphs (4) and (5) as
 paragraphs (5) and (6), respectively; and
 (2) by inserting after paragraph (3) the following
 new paragraph:
 ``(4) certify that any engineer-type activities (as
 defined by the Secretary of Defense) under the plan
 will be performed only by units and members of the
 National Guard;''.
 (c) Annual Report.--Such section is further amended--
 (1) by redesignating subsections (g) and (h) as
 subsections (h) and (i), respectively; and
 (2) by inserting after subsection (f) the following
 new subsection:
 ``(g) Annual Report.--The Secretary of Defense shall submit
to Congress an annual report regarding assistance provided and
activities carried out under this section during the preceding
fiscal year. The report shall include the following:
 ``(1) The number of members of the National Guard
 excluded under subsection (e) from the computation of
 end strengths.
 ``(2) A description of the drug interdiction and
 counter-drug activities conducted under State drug
 interdiction and counter-drug activities plans referred
 to in subsection (c) with funds provided under this
 section.
 ``(3) An accounting of the amount of funds provided
 to each State.
 ``(4) A description of the effect on military
 training and readiness of using units and personnel of
 the National Guard to perform activities under the
 State drug interdiction and counter-drug activities
 plans.''.
 (d) Conforming Amendments.--Subsection (e) of such section
is amended--
 (1) by striking out ``(1)'' before ``Members''; and
 (2) by striking out paragraph (2).

SEC. 1032. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG
 ACTIVITIES OF MEXICO.

 (a) Extension of Authority; Consultation of Secretary of
State.--Subsection (a) of section 1031 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
Stat. 2637), is amended--
 (1) by striking out ``fiscal year 1997'' and
 inserting in lieu thereof ``fiscal years 1997 and
 1998''; and
 (2) by inserting after the first sentence the
 following new sentence: ``In providing support to the
 Government of Mexico under this section, the Secretary
 of Defense shall consult with the Secretary of
 State.''.
 (b) Extension of Availability of Funds.--Subsection (d) of
such section is amended--
 (1) by striking out ``not more than'' and inserting
 in lieu thereof ``an amount not to exceed''; and
 (2) by adding at the end the following new
 sentences: ``Funds made available for fiscal year 1997
 under this subsection and unobligated by September 30,
 1997, may be obligated during fiscal year 1998. No
 funds are authorized to be appropriated for fiscal year
 1998 for the provision of support under this
 section.''.

SEC. 1033. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG
 ACTIVITIES OF PERU AND COLOMBIA.

 (a) Authority To Provide Support.--Subject to subsection
(f), during fiscal years 1998 through 2002, the Secretary of
Defense may provide either or both of the foreign governments
named in subsection (b) with the support described in
subsection (c) for the counter-drug activities of that
government. In providing support to a government under this
section, the Secretary of Defense shall consult with the
Secretary of State. The support provided under the authority of
this section shall be in addition to support provided to the
governments under any other provision of law.
 (b) Governments Eligible To Receive Support.--The foreign
governments eligible to receive counter-drug support under this
section are as follows:
 (1) The Government of Peru.
 (2) The Government of Colombia.
 (c) Types of Support.--The authority under subsection (a)
is limited to the provision of the following types of support
to a government named in subsection (b):
 (1) The types of support specified in paragraphs
 (1), (2), and (3) of section 1031(b) of the National
 Defense Authorization Act for Fiscal Year 1997 (Public
 Law 104-201; 110 Stat. 2637).
 (2) The transfer of riverine patrol boats.
 (3) The maintenance and repair of equipment of the
 government that is used for counter-drug activities.
 (d) Applicability of Other Support Authorities.--Except as
otherwise provided in this section, the provisions of section
1004 of the National Defense Authorization Act for Fiscal Year
1991 (Public Law 101-510; 10 U.S.C. 374 note) shall apply to
the provision of support under this section.
 (e) Fiscal Year 1998 Funding; Limitation on Obligations.--
(1) Of the amount authorized to be appropriated under section
301(20) for drug interdiction and counter-drug activities, an
amount not to exceed $9,000,000 shall be available for the
provision of support under this section.
 (2) Amounts made available to carry out this section shall
remain available until expended, except that the total amount
obligated and expended under this section may not exceed
$20,000,000 during any of the fiscal years 1999 through 2002.
 (f) Condition on Provision of Support.--(1) The Secretary
of Defense may not obligate or expend funds during a fiscal
year to provide support under this section to a government
named in subsection (b) until the end of the 15-day period
beginning on the date on which the Secretary submits to the
congressional committees the written certification described in
subsection (g) for that fiscal year.
 (2) In the case of the first fiscal year in which support
is to be provided under this section to a government named in
subsection (b), the obligation or expenditure of funds under
this section to provide support to that government shall also
be subject to the condition that--
 (A) the Secretary submit to the congressional
 committees the riverine counter-drug plan described in
 subsection (h); and
 (B) a period of 60 days expires after the date on
 which the report is submitted.
 (3) In the case of subsequent fiscal years in which support
is to be provided under this section to a government named in
subsection (b), the obligation or expenditure of funds under
this section to provide support to that government shall also
be subject to the condition that the Secretary submit to the
congressional committees any revision of the counter-drug plan
described in subsection (h) applicable to that government.
 (4) For purposes of this subsection, the term
``congressional committees'' means the following:
 (A) The Committee on Armed Services and the
 Committee on Foreign Relations of the Senate.
 (B) The Committee on National Security and the
 Committee on International Relations of the House of
 Representatives.
 (g) Required Certification.--The written certification
required by subsection (f)(1) for a fiscal year is a
certification of the following with respect to each government
to receive support under this section:
 (1) That the provision of the support to the
 government will not adversely affect the military
 preparedness of the United States Armed Forces.
 (2) That the equipment and materiel provided as
 support will be used only by officials and employees of
 the government who have undergone background
 investigations by that government and have been
 approved by that government to perform counter-drug
 activities on the basis of the background
 investigations.
 (3) That the government has certified to the
 Secretary of Defense that--
 (A) the equipment and material provided as
 support will be used only by the officials and
 employees referred to in paragraph (2);
 (B) none of the equipment or materiel will
 be transferred (by sale, gift, or otherwise) to
 any person or entity not authorized by the
 United States to receive the equipment or
 materiel; and
 (C) the equipment and materiel will be used
 only for the purposes intended by the United
 States Government.
 (4) That the government has implemented, to the
 satisfaction of the Secretary of Defense, a system that
 will provide an accounting and inventory of the
 equipment and materiel provided as support.
 (5) That the departments, agencies, and
 instrumentalities of the government will grant United
 States Government personnel access to any of the
 equipment or materiel provided as support, or to any of
 the records relating to such equipment or materiel,
 under terms and conditions similar to the terms and
 conditions imposed with respect to such access under
 section 505(a)(3) of the Foreign Assistance Act of 1961
 (22 U.S.C. 2314(a)(3)).
 (6) That the government will provide security with
 respect to the equipment and materiel provided as
 support that is substantially the same degree of
 security that the United States Government would
 provide with respect to such equipment and materiel.
 (7) That the government will permit continuous
 observation and review by United States Government
 personnel of the use of the equipment and materiel
 provided as support under terms and conditions similar
 to the terms and conditions imposed with respect to
 such observation and review under section 505(a)(3) of
 the Foreign Assistance Act of 1961 (22 U.S.C.
 2314(a)(3)).
 (h) Riverine Counter-Drug Plan.--The Secretary of Defense,
in consultation with the Secretary of State, shall prepare for
fiscal year 1998 (and revise as necessary for subsequent fiscal
years) a riverine counter-drug plan involving the governments
named in subsection (b) to which support will be provided under
this section. The plan for a fiscal year shall include the
following with respect to each government to receive support
under this section:
 (1) A detailed security assessment, including a
 discussion of the threat posed by illicit drug
 traffickers in the foreign country.
 (2) An evaluation of previous and ongoing riverine
 counter-drug operations by the government.
 (3) An assessment of the monitoring of past and
 current assistance provided by the United States under
 this section to the government to ensure the
 appropriate use of such assistance.
 (4) A description of the centralized management and
 coordination among Federal agencies involved in the
 development and implementation of the plan.
 (5) A description of the roles and missions and
 coordination among agencies of the government involved
 in the development and implementation of the plan.
 (6) A description of the resources to be
 contributed by the Department of Defense and the
 Department of State for the fiscal year or years
 covered by the plan and the manner in which such
 resources will be utilized under the plan.
 (7) For the first fiscal year in which support is
 to be provided under this section, a schedule for
 establishing a riverine counter-drug program that can
 be sustained by the government within five years, and
 for subsequent fiscal years, a description of the
 progress made in establishing and carrying out the
 program.
 (8) A reporting system to measure the effectiveness
 of the riverine counter-drug program.
 (9) A detailed discussion of how the riverine
 counter-drug program supports the national drug control
 strategy of the United States.

SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF NARCOTICS
 DETECTION TECHNOLOGIES.

 (a) Report Requirement.--Not later than December 1st of
each year, the Director of the Office of National Drug Control
Policy shall submit to Congress and the President a report on
the development and deployment of narcotics detection
technologies by Federal agencies. Each such report shall be
prepared in consultation with the Secretary of Defense, the
Secretary of State, the Secretary of Transportation, and the
Secretary of the Treasury.
 (b) Matters To Be Included.--Each report under subsection
(a) shall include--
 (1) a description of each project implemented by a
 Federal agency relating to the development or
 deployment of narcotics detection technology;
 (2) the agency responsible for each project
 described in paragraph (1);
 (3) the amount of funds obligated or expended to
 carry out each project described in paragraph (1)
 during the fiscal year in which the report is submitted
 or during any fiscal year preceding the fiscal year in
 which the report is submitted;
 (4) the amount of funds estimated to be obligated
 or expended for each project described in paragraph (1)
 during any fiscal year after the fiscal year in which
 the report is submitted to Congress; and
 (5) a detailed timeline for implementation of each
 project described in paragraph (1).

 Subtitle D--Miscellaneous Report Requirements and Repeals

SEC. 1041. REPEAL OF MISCELLANEOUS REPORTING REQUIREMENTS.

 (a) Requirement for Notice of Conversion of Certain Heating
Systems at Installations in Europe.--Section 2690(b) of title
10, United States Code, is amended by striking out ``unless the
Secretary--'' and all that follows and inserting in lieu
thereof the following: ``unless the Secretary determines that
the conversion--
 ``(1) is required by the government of the country
 in which the facility is located; or
 ``(2) is cost-effective over the life cycle of the
 facility.''.
 (b) Report on Availability of Suitable Alternative
Housing.--Section 2823 of title 10, United States Code, is
amended--
 (1) by striking out subsection (b); and
 (2) by redesignating subsections (c) and (d) as
 subsections (b) and (c), respectively.
 (c) Report on Stretchout of Major Defense Acquisition
Programs.--Section 117 of the National Defense Authorization
Act, Fiscal Year 1989 (Public Law 100-456; 102 Stat. 1933; 10
U.S.C. 2431 note), is repealed.
 (d) Elimination of Requirement for Quarterly Report
Concerning Travel Funding for Chemical Demilitarization
Citizens' Advisory Commissioners.--(1) Section 1412(g) of the
National Defense Authorization Act for Fiscal Year 1986 (50
U.S.C. 1521(g)) is amended--
 (A) by striking out paragraph (3);
 (B) by striking out the last sentence of paragraph
 (4); and
 (C) by redesignating paragraph (4) (as so amended)
 as paragraph (3).
 (2) Section 153(b) of the National Defense Authorization
Act for Fiscal Year 1996 (50 U.S.C. 1521 note) is amended--
 (A) by striking out ``Quarterly'' in the heading;
 and
 (B) by striking out paragraphs (4) and (5).

SEC. 1042. STUDY OF TRANSFER OF MODULAR AIRBORNE FIRE FIGHTING SYSTEM.

 Not later than six months after the date of the enactment
of this Act, the Secretary of Defense, in consultation with the
Secretary of Agriculture, shall submit to Congress a report
evaluating the feasibility of transferring jurisdiction over
units of the Modular Airborne Fire Fighting System from the
Department of Agriculture to the Department of Defense.

SEC. 1043. OVERSEAS INFRASTRUCTURE REQUIREMENTS.

 (a) Findings.--Congress makes the following findings:
 (1) United States military forces have been
 withdrawn from the Philippines.
 (2) United States military forces are to be
 withdrawn from Panama by 2000.
 (3) There continues to be local opposition to the
 continued presence of United States military forces in
 Okinawa.
 (4) The Quadrennial Defense Review lists ``the loss
 of U.S. access to critical facilities and lines of
 communication in key regions'' as one of the so-called
 ``wild card'' scenarios covered in the review.
 (5) The National Defense Panel states that ``U.S.
 forces' long-term access to forward bases, to include
 air bases, ports, and logistics facilities, cannot be
 assumed''.
 (b) Sense of Congress.--It is the sense of Congress that--
 (1) the President should develop alternatives to
 the current arrangement for forward basing of the Armed
 Forces outside the United States, including
 alternatives to the existing infrastructure for forward
 basing of forces and alternatives to the existing
 international agreements that provide for basing of
 United States forces in foreign countries; and
 (2) because the Pacific Rim continues to emerge as
 a region of significant economic and military
 importance to the United States, a continued presence
 of the Armed Forces in that region is vital to the
 capability of the United States to timely protect its
 interests in the region.
 (c) Report Required.--Not later than March 31, 1998, the
Secretary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives a report on the overseas
infrastructure requirements of the Armed Forces.
 (d) Content.--The report shall contain the following:
 (1) The quantity and types of forces that the
 United States must station in each region of the world
 in order to support the current national military
 strategy of the United States.
 (2) The quantity and types of forces that the
 United States will need to station in each region of
 the world in order to meet the expected or potential
 future threats to the national security interests of
 the United States.
 (3) The requirements for access to, and use of, air
 space and ground maneuver areas in each such region for
 training for the quantity and types of forces
 identified for the region pursuant to paragraphs (1)
 and (2).
 (4) A list of the international agreements,
 currently in force, that the United States has entered
 into with foreign countries regarding the basing of
 United States forces in those countries and the dates
 on which the agreements expire.
 (5) A discussion of any anticipated political
 opposition or other opposition to the renewal of any of
 those international agreements.
 (6) A discussion of future overseas basing
 requirements for United States forces, taking into
 account expected changes in national security strategy,
 national security environment, and weapons systems.
 (7) The expected costs of maintaining the overseas
 infrastructure for foreign based forces of the United
 States, including the costs of constructing any new
 facilities that will be necessary overseas to meet
 emerging requirements relating to the national security
 interests of the United States.
 (e) Form of Report.--The report may be submitted in a
classified or unclassified form.

SEC. 1044. ADDITIONAL MATTERS FOR ANNUAL REPORT ON ACTIVITIES OF THE
 GENERAL ACCOUNTING OFFICE.

 Section 719(b) of title 31, United States Code, is amended
by adding at the end the following:
 ``(3) The report under subsection (a) shall also include a
statement of the staff hours and estimated cost of work
performed on audits, evaluations, investigations, and related
work during each of the three fiscal years preceding the fiscal
year in which the report is submitted, stated separately for
each division of the General Accounting Office by category as
follows:
 ``(A) A category for work requested by the chairman
 of a committee of Congress, the chairman of a
 subcommittee of such a committee, or any other Member
 of Congress.
 ``(B) A category for work required by law to be
 performed by the Comptroller General.
 ``(C) A category for work initiated by the
 Comptroller General in the performance of the
 Comptroller General's general responsibilities.''.

SEC. 1045. EYE SAFETY AT SMALL ARMS FIRING RANGES.

 (a) Actions Required.--The Secretary of the Defense shall--
 (1) conduct a study of eye safety at small arms
 firing ranges of the Armed Forces; and
 (2) develop for the use of the Armed Forces a
 protocol for reporting eye injuries incurred in small
 arms firing activities at the ranges.
 (b) Agency Tasking.--The Secretary may delegate authority
to carry out the responsibilities set forth in subsection (a)
to the United States Army Center for Health Promotion and
Preventive Medicine or any other element of the Department of
Defense that the Secretary considers well qualified to carry
out those responsibilities.
 (c) Content of Study.--The study under subsection (a)(1)
shall include the following:
 (1) An evaluation of the existing policies,
 procedures, and practices of the Armed Forces regarding
 medical surveillance of eye injuries resulting from
 weapons fire at the small arms ranges.
 (2) An examination of the existing policies,
 procedures, and practices of the Armed Forces regarding
 reporting on vision safety issues resulting from
 weapons fire at the small arms ranges.
 (3) Determination of rates of eye injuries, and
 trends in eye injuries, resulting from weapons fire at
 the small arms ranges.
 (4) An evaluation of the costs and benefits of a
 requirement for use of eye protection devices by all
 personnel firing small arms at the ranges.
 (d) Report.--The Secretary shall submit a report on the
activities required under this section to the Committees on
Armed Services and on Veterans' Affairs of the Senate and the
Committees on National Security and on Veterans' Affairs of the
House of Representatives. The report shall include--
 (1) the findings resulting from the study under
 paragraph (1) of subsection (a); and
 (2) the protocol developed under paragraph (2) of
 such subsection.
 (e) Schedule.--(1) The Secretary shall ensure that the
study is commenced not later than January 1, 1998, and is
completed not later than six months after the date on which it
is commenced.
 (2) The Secretary shall submit the report required under
subsection (d) not later than 30 days after the completion of
the study.

SEC. 1046. REPORTS ON DEPARTMENT OF DEFENSE PROCEDURES FOR
 INVESTIGATING MILITARY AVIATION ACCIDENTS AND FOR
 NOTIFYING AND ASSISTING FAMILIES OF VICTIMS.

 (a) Report on Aviation Accident Investigation Procedures.--
Not later than February 1, 1998, the Secretary of Defense shall
submit to Congress a report on the advisability of establishing
a process for investigating Department of Defense aviation
accidents that combines accident investigation with safety
investigation into a single, public investigation process,
similar to the accident investigation process of the National
Transportation Safety Board. The report shall include a
discussion of the advantages and disadvantages of adopting such
an investigation process.
 (b) Report on Family Assistance.--Not later than April 2,
1998, the Secretary of Defense shall submit to Congress a
report on assistance provided by the Department of Defense to
families of casualties among military and civilian personnel of
the department in the case of aviation accidents involving such
personnel. The report shall include--
 (1) a discussion of the adequacy and effectiveness
 of the family notification procedures of the Department
 of Defense, including the procedures of the military
 departments; and
 (2) a description of the assistance provided to
 members of the families of such personnel.
 (c) Report by Department of Defense Inspector General.--Not
later than December 1, 1997, the Inspector General of the
Department of Defense shall review the procedures of the
Federal Aviation Administration and the National Transportation
Safety Board for providing information and assistance to
members of families of casualties of nonmilitary aviation
accidents and shall submit to Congress a report on the review.
The report shall include a discussion of the following:
 (1) Designation of an experienced non-profit
 organization to provide assistance in meeting the needs
 of families of accident casualties.
 (2) An assessment of the system and procedures for
 providing families with information on accidents and
 accident investigations.
 (3) Protection of members of families from unwanted
 solicitations relating to the accident.
 (4) A recommendation regarding whether the
 procedures reviewed (including the matters discussed
 under paragraphs (1), (2), and (3)) or similar
 procedures should be adopted by the Department of
 Defense for use by the Department in providing
 information and assistance to members of families of
 casualties of military aviation accidents and, if the
 recommendation is not to adopt such procedures, a
 detailed justification for the recommendation.
 (d) Unclassified Form of Reports.--The reports under this
section shall be submitted in unclassified form.

 Subtitle E--Matters Relating to Terrorism

SEC. 1051. OVERSIGHT OF COUNTERTERRORISM AND ANTITERRORISM ACTIVITIES;
 REPORT.

 (a) Oversight of Counterterrorism and Antiterrorism
Activities.--Not later than 120 days after the date of the
enactment of this Act, the Director of the Office of Management
and Budget shall--
 (1) establish a reporting system for executive
 agencies with respect to the budget and expenditure of
 funds by such agencies for the purpose of carrying out
 counterterrorism and antiterrorism programs and
 activities; and
 (2) using such reporting system, collect
 information on--
 (A) the budget and expenditure of funds by
 executive agencies during the current fiscal
 year for purposes of carrying out
 counterterrorism and antiterrorism programs and
 activities; and
 (B) the specific programs and activities
 for which such funds were expended.
 (b) Report.--Not later than March 1 of each year, the
President shall submit to Congress a report in classified and
unclassified form (using the information described in
subsection (a)(2)) describing, for each executive agency and
for the executive branch as a whole, the following:
 (1) The amounts proposed to be expended for
 counterterrorism and antiterrorism programs and
 activities for the fiscal year beginning in the
 calendar year in which the report is submitted.
 (2) The amounts proposed to be expended for
 counterterrorism and antiterrorism programs and
 activities for the fiscal year in which the report is
 submitted and the amounts that have already been
 expended for such programs and activities for that
 fiscal year.
 (3) The specific counterterrorism and antiterrorism
 programs and activities being implemented, any
 priorities with respect to such programs and
 activities, and whether there has been any duplication
 of efforts in implementing such programs and
 activities.

SEC. 1052. PROVISION OF ADEQUATE TROOP PROTECTION EQUIPMENT FOR ARMED
 FORCES PERSONNEL ENGAGED IN PEACE OPERATIONS;
 REPORT ON ANTITERRORISM ACTIVITIES AND PROTECTION
 OF PERSONNEL.

 (a) Protection of Personnel.--The Secretary of Defense
shall take appropriate actions to ensure that units of the
Armed Forces engaged in a peace operation are provided adequate
troop protection equipment for that operation.
 (b) Specific Actions.--In taking actions under subsection
(a), the Secretary shall--
 (1) identify the additional troop protection
 equipment, if any, required to equip a division (or the
 equivalent of a division) with adequate troop
 protection equipment for peace operations; and
 (2) establish procedures to facilitate the exchange
 or transfer of troop protection equipment among units
 of the Armed Forces.
 (c) Designation of Responsible Official.--The Secretary of
Defense shall designate an official within the Department of
Defense to be responsible for--
 (1) ensuring the appropriate allocation of troop
 protection equipment among the units of the Armed
 Forces engaged in peace operations; and
 (2) monitoring the availability, status or
 condition, and location of such equipment.
 (d) Troop Protection Equipment Defined.--In this section,
the term ``troop protection equipment'' means the equipment
required by units of the Armed Forces to defend against any
hostile threat that is likely during a peace operation,
including an attack by a hostile crowd, small arms fire, mines,
and a terrorist bombing attack.
 (e) Report on Antiterrorism Activities of the Department of
Defense and Protection of Personnel.--Not later than 120 days
after the date of the enactment of this Act, the Secretary of
Defense shall submit to Congress a report, in classified and
unclassified form, on antiterrorism activities of the
Department of Defense and the actions taken by the Secretary
under subsections (a), (b) and (c). The report shall include
the following:
 (1) A description of the programs designed to carry
 out antiterrorism activities of the Department of
 Defense, any deficiencies in those programs, and any
 actions taken by the Secretary to improve
 implementation of such programs.
 (2) An assessment of the current policies and
 practices of the Department of Defense with respect to
 the protection of members of the Armed Forces overseas
 against terrorist attack, including any modifications
 to such policies or practices that are proposed or
 implemented as a result of the assessment.
 (3) An assessment of the procedures of the
 Department of Defense for determining accountability,
 if any, in the command structure of the Armed Forces in
 instances in which a terrorist attack results in the
 loss of life at an overseas military installation or
 facility.
 (4) A detailed description of the roles of the
 Office of the Secretary of Defense, the Chairman of the
 Joint Chiefs of Staff, the Secretaries of the military
 departments, and the combatant commanders in providing
 guidance and support with respect to the protection of
 members of the Armed Forces deployed overseas against
 terrorist attack (both before and after the November,
 1995 bombing in Riyadh, Saudi Arabia) and how these
 roles have changed since the June 25, 1996, terrorist
 bombing at Khobar Towers in Dhahran, Saudi Arabia.
 (5) A description of the actions taken by the
 Secretary of Defense under subsections (a), (b), and
 (c) to provide adequate troop protection equipment for
 units of the Armed Forces engaged in a peace operation.

 Subtitle F--Matters Relating to Defense Property

SEC. 1061. LEASE OF NONEXCESS PERSONAL PROPERTY OF MILITARY
 DEPARTMENTS.

 (a) Receipt of Fair Market Value.--Subsection (b)(4) of
section 2667 of title 10, United States Code, is amended by
striking out ``, in the case of the lease of real property,''.
 (b) Competitive Selection.--Such section is further
amended--
 (1) by redesignating subsection (g) as subsection
 (h); and
 (2) by inserting after subsection (f) the following
 new subsection:
 ``(g)(1) If a proposed lease under subsection (a) involves
only personal property, the lease term exceeds one year, and
the fair market value of the lease interest exceeds $100,000,
as determined by the Secretary concerned, the Secretary shall
use competitive procedures to select the lessee.
 ``(2) Not later than 45 days before entering into a lease
described in paragraph (1), the Secretary concerned shall
submit to Congress written notice describing the terms of the
proposed lease and the competitive procedures used to select
the lessee.''.
 (c) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 2667. Leases: non-excess property of military departments''.

 (2) The table of sections at the beginning of chapter 159
of title 10, United States Code, is amended by striking out the
item relating to section 2667 and inserting in lieu thereof the
following new item:

``2667. Leases: non-excess property of military departments.''.

 (d) Conforming Amendment.--Section 2490a(f)(2) of title 10,
United States Code, is amended by striking out ``section
2667(g)'' and inserting in lieu thereof ``section 2667(h)''.

SEC. 1062. LEASE OF NONEXCESS PROPERTY OF DEFENSE AGENCIES.

 (a) Lease Authority.--Chapter 159 of title 10, United
States Code, is amended by inserting after section 2667 the
following new section:

``Sec. 2667a. Leases: non-excess property of Defense Agencies

 ``(a) Lease Authority.--Whenever the Secretary of Defense
considers it advantageous to the United States, the Secretary
may lease to such lessee and upon such terms as the Secretary
considers will promote the national defense or to be in the
public interest, personal property that is--
 ``(1) under the control of a Defense Agency;
 ``(2) not for the time needed for public use; and
 ``(3) not excess property, as defined by section 3
 of the Federal Property and Administrative Services Act
 of 1949 (40 U.S.C. 472).
 ``(b) Limitation, Terms, and Conditions.--A lease under
subsection (a)--
 ``(1) may not be for more than five years unless
 the Secretary of Defense determines that a lease for a
 longer period will promote the national defense or be
 in the public interest;
 ``(2) may give the lessee the first right to buy
 the property if the lease is revoked to allow the
 United States to sell the property under any other
 provision of law;
 ``(3) shall permit the Secretary to revoke the
 lease at any time, unless the Secretary determines that
 the omission of such a provision will promote the
 national defense or be in the public interest;
 ``(4) shall provide for the payment (in cash or in
 kind) by the lessee of consideration in an amount that
 is not less than the fair market value of the lease
 interest, as determined by the Secretary; and
 ``(5) may provide, notwithstanding any other
 provision of law, for the improvement, maintenance,
 protection, repair, restoration, or replacement by the
 lessee, of the property leased as the payment of part
 or all of the consideration for the lease.
 ``(c) Competitive Selection.--(1) If the term of a proposed
lease under subsection (a) exceeds one year and the fair market
value of the lease interest exceeds $100,000, as determined by
the Secretary of Defense, the Secretary shall use competitive
procedures to select the lessee.
 ``(2) Not later than 45 days before entering into a lease
described in paragraph (1), the Secretary shall submit to
Congress a written notice describing the terms of the proposed
lease and the competitive procedures used to select the lessee.
 ``(d) Disposition of Money Rent.--Money rentals received
pursuant to a lease entered into by the Secretary of Defense
under subsection (a) shall be deposited in a special account in
the Treasury established for the Defense Agency whose property
is subject to the lease. Amounts in a Defense Agency's special
account shall be available, to the extent provided in
appropriations Acts, solely for the maintenance, repair,
restoration, or replacement of the leased property.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2667 the following new item:

``2667a. Leases: non-excess property of Defense Agencies.''.

SEC. 1063. DONATION OF EXCESS CHAPEL PROPERTY TO CHURCHES DAMAGED OR
 DESTROYED BY ARSON OR OTHER ACTS OF TERRORISM.

 (a) Authority to Donate.--Chapter 153 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 2580. Donation of excess chapel property

 ``(a) Authority to Donate.--The Secretary of a military
department may donate personal property specified in subsection
(b) to an organization described in section 501(c)(3) of the
Internal Revenue Code of 1986 that is a religious organization
in order to assist the organization in restoring or replacing
property of the organization that has been damaged or destroyed
as a result of an act of arson or terrorism, as determined
pursuant to procedures prescribed by the Secretary of Defense.
 ``(b) Property Covered.--(1) The property authorized to be
donated under subsection (a) is furniture and other personal
property that--
 ``(A) is in, or was formerly in, a chapel under the
 jurisdiction of the Secretary of a military department
 and closed or being closed; and
 ``(B) is determined by the Secretary to be excess
 to the requirements of the armed forces.
 ``(2) No real property may be donated under this section.
 ``(c) Donees Not To Be Charged.--No charge may be imposed
by the Secretary of a military department on a donee of
property under this section in connection with the donation.
However, the donee shall agree to defray any expense for
shipping or other transportation of property donated under this
section from the location of the property when donated to any
other location.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``2580. Donation of excess chapel property.''.

SEC. 1064. AUTHORITY OF THE SECRETARY OF DEFENSE CONCERNING DISPOSAL OF
 ASSETS UNDER COOPERATIVE AGREEMENTS ON AIR DEFENSE
 IN CENTRAL EUROPE.

 (a) General Authorities.--The Secretary of Defense,
pursuant to an amendment or amendments to the European air
defense agreements, may dispose of any defense articles owned
by the United States and acquired to carry out such agreements
by providing such articles to the Federal Republic of Germany.
In carrying out such disposal, the Secretary--
 (1) may provide without monetary charge to the
 Federal Republic of Germany articles specified in the
 agreements; and
 (2) may accept from the Federal Republic of Germany
 (in exchange for the articles provided under paragraph
 (1)) articles, services, or any other consideration, as
 determined appropriate by the Secretary.
 (b) Definition of European Air Defense Agreements.--For the
purposes of this section, the term ``European air defense
agreements'' means--
 (1) the agreement entitled ``Agreement between the
 Secretary of Defense of the United States of America
 and the Minister of Defense of the Federal Republic of
 Germany on Cooperative Measures for Enhancing Air
 Defense for Central Europe'', signed on December 6,
 1983; and
 (2) the agreement entitled ``Agreement between the
 Secretary of Defense of the United States of America
 and the Minister of Defense of the Federal Republic of
 Germany in implementation of the 6 December 1983
 Agreement on Cooperative Measures for Enhancing Air
 Defense for Central Europe'', signed on July 12, 1984.

SEC. 1065. SALE OF EXCESS, OBSOLETE, OR UNSERVICEABLE AMMUNITION AND
 AMMUNITION COMPONENTS.

 (a) Authority.--(1) Chapter 443 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 4687. Sale of excess, obsolete, or unserviceable ammunition and
 ammunition components

 ``(a) Authority To Sell Outside DoD.--The Secretary of the
Army may sell to an eligible purchaser described in subsection
(c) ammunition or ammunition components that are excess,
obsolete, or unserviceable and have not been demilitarized if--
 ``(1) the purchaser enters into an agreement, in
 advance, with the Secretary--
 ``(A) to demilitarize the ammunition or
 components; and
 ``(B) to reclaim, recycle, or reuse the
 component parts or materials; or
 ``(2) the Secretary, or an official of the
 Department of the Army designated by the Secretary,
 approves the use of the ammunition or components
 proposed by the purchaser as being consistent with the
 public interest.
 ``(b) Method of Sale.--The Secretary shall use competitive
procedures to sell ammunition and ammunition components under
this section, except that the Secretary may use procedures
other than competitive procedures in any case in which the
Secretary determines that there is only one potential buyer of
the items being offered for sale.
 ``(c) Eligible Purchasers.--To be eligible to purchase
excess, obsolete, or unserviceable ammunition or ammunition
components under this section, the purchaser shall be a
licensed manufacturer (as defined in section 921(10) of title
18) that, as determined by the Secretary, has a capability to
modify, reclaim, transport, and either store or sell the
ammunition or ammunition components sought to be purchased.
 ``(d) Hold Harmless Agreement.--The Secretary shall require
a purchaser of ammunition or ammunition components under this
section to agree to hold harmless and indemnify the United
States from any claim for damages for death, injury, or other
loss resulting from a use of the ammunition or ammunition
components, except in a case of willful misconduct or gross
negligence of a representative of the United States.
 ``(e) Verification of Demilitarization.--The Secretary
shall establish procedures for ensuring that a purchaser of
ammunition or ammunition components under this section
demilitarizes the ammunition or ammunition components in
accordance with any agreement to do so under subsection (a)(1).
The procedures shall include on-site verification of
demilitarization activities.
 ``(f) Consideration.--The Secretary may accept ammunition,
ammunition components, or ammunition demilitarizationservices
as consideration for ammunition or ammunition components sold under
this section. The fair market value of any such consideration shall be
equal to or exceed the fair market value or, if higher, the sale price
of the ammunition or ammunition components sold.
 ``(g) Relationship to Arms Export Control Act.--Nothing in
this section shall be construed to affect the applicability of
section 38 of the Arms Export Control Act (22 U.S.C. 2778) to
sales of ammunition or ammunition components on the United
States Munitions List.
 ``(h) Definitions.--In this section:
 ``(1) The term `excess, obsolete, or
 unserviceable', with respect to ammunition or
 ammunition components, means that the ammunition or
 ammunition components are no longer necessary for war
 reserves or for support of training of the Army or
 production of ammunition or ammunition components.
 ``(2) The term `demilitarize', with respect to
 ammunition or ammunition components--
 ``(A) means to destroy the military
 offensive or defensive advantages inherent in
 the ammunition or ammunition components; and
 ``(B) includes any mutilation, scrapping,
 melting, burning, or alteration that prevents
 the use of the ammunition or ammunition
 components for the military purposes for which
 the ammunition or ammunition components was
 designed or for a lethal purpose.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``4687. Sale of excess, obsolete, or unserviceable ammunition and
 ammunition components.''.

 (b) Review of Initial Sales.--(1) For each of the first
three fiscal years during which the Secretary of the Army sells
ammunition or ammunition components under the authority of
section 4687 of title 10, United States Code, as added by
subsection (a), the Director of the Army Audit Agency shall
conduct a review of sales under such section to ensure that--
 (A) purchasers that enter into an agreement under
 subsection (a)(1) of such section to demilitarize the
 purchased ammunition or ammunition components fully
 comply with the agreement; and
 (B) purchasers that are authorized under subsection
 (a)(2) of such section to use the purchased ammunition
 or ammunition components actually use the ammunition or
 ammunition components in the manner proposed.
 (2) Not later than 180 days after the end of each fiscal
year in which the review is conducted, the Secretary of the
Army shall submit to Congress a report containing the results
of the review for the fiscal year covered by the report.

SEC. 1066. TRANSFER OF B-17 AIRCRAFT TO MUSEUM.

 (a) Authority.--The Secretary of the Air Force may convey,
without consideration to the Planes of Fame Museum, Chino,
California (in this section referred to as the ``museum''), all
right, title, and interest of the United States in and to the
B-17 aircraft known as the ``Picadilly Lilly'', an aircraft
that has been in the possession of the museum since 1959. Such
a conveyance shall be made by means of a conditional deed of
gift.
 (b) Condition of Aircraft.--The Secretary may not convey
ownership of the aircraft under subsection (a) until the
Secretary determines that the museum has altered the aircraft
in such manner as the Secretary determines necessary to ensure
that the aircraft does not have any capability for use as a
platform for launching or releasing munitions or any other
combat capability that it was designed to have. The Secretary
is not required to repair or alter the condition of the
aircraft before conveying ownership of the aircraft.
 (c) Reverter Upon Transfer of Ownership or Possession.--The
Secretary shall include in the instrument of conveyance of the
aircraft--
 (1) a condition that the museum not convey any
 ownership interest in, or transfer possession of, the
 aircraft to any other party without the prior approval
 of the Secretary of the Air Force; and
 (2) a condition that if the Secretary of the Air
 Force determines at any time that the museum has
 conveyed an ownership interest in, or transferred
 possession of, the aircraft to any other party without
 the prior approval of the Secretary, all right, title,
 and interest in and to the aircraft, including any
 repair or alteration of the aircraft, shall revert to
 the United States, and the United States shall have the
 right of immediate possession of the aircraft.
 (d) Conveyance at No Cost to the United States.--The
conveyance authorized by this section shall be made at no cost
to the United States. Any costs associated with such
conveyance, including costs of determining compliance with
subsection (b), shall be borne by the museum.
 (e) Additional Terms and Conditions.--The Secretary of the
Air Force may require such additional terms and conditions in
connection with the conveyance under this section as the
Secretary considers appropriate to protect the interests of the
United States.
 (f) Clarification of Liability.--Notwithstanding any other
provision of law, upon conveyance of ownership of the B-17
aircraft specified in subsection (a) to the museum, the United
States shall not be liable for any death, injury, loss, or
damage that results from any use of that aircraft by any person
other than the United States.

SEC. 1067. REPORT ON DISPOSAL OF EXCESS AND SURPLUS MATERIALS.

 (a) Report Required.--Not later than January 31, 1998, the
Secretary of Defense shall submit to Congress a report on the
actions that have been taken or are planned to be taken within
the Department of Defense to address problems with the sale or
other disposal of materials that are excess or surplus to the
needs of the Department of Defense.
 (b) Required Content.-- At a minimum, the report shall
address the following issues:
 (1) The effort to standardize the coding of
 military equipment for demilitarization at all stages
 of the process, from initial acquisition through
 disposal.
 (2) The changes underway to improve the methods
 used for the demilitarization of military equipment.
 (3) Recent efforts to improve the accuracy of
 coding performed by Government employees and contractor
 employees.
 (4) Recent efforts to improve the enforcement of
 the penalties that are applicable to Government
 employees and contractor employees who fail to comply
 with rules or procedures applicable to the
 demilitarization of military equipment.
 (5) The methods of oversight and enforcement used
 by the Department of Defense to review the
 demilitarization of military equipment by the
 purchasers of the equipment.
 (6) The current and planned controls designed to
 prevent the inappropriate transfer of excess military
 equipment outside the United States.
 (7) The current procedures used by the Department,
 including repurchase, to recover military equipment
 that is sold or otherwise disposed of without
 appropriate action having been taken to demilitarize
 the equipment or to provide for demilitarization of the
 equipment.
 (8) The legislative changes, if any, that would be
 necessary to improve the recovery rate under the
 procedures identified under paragraph (7).
 (c) Identification of Frequent Errors and Misuse.--Based on
fiscal year 1997 findings, the Secretary of Defense shall
identify in the report--
 (1) the 50 categories of military equipment that
 most frequently received an erroneous demilitarization
 code; and
 (2) the categories of military equipment that are
 particularly vulnerable to improper use after disposal.

 Subtitle G--Other Matters

SEC. 1071. AUTHORITY FOR SPECIAL AGENTS OF THE DEFENSE CRIMINAL
 INVESTIGATIVE SERVICE TO EXECUTE WARRANTS AND MAKE
 ARRESTS.

 (a) Authority.--Chapter 81 of title 10, United States Code,
is amended by inserting after section 1585 the following new
section:

``Sec. 1585a. Special agents of the Defense Criminal Investigative
 Service: authority to execute warrants and make
 arrests

 ``(a) Authority.--The Secretary of Defense may authorize
any DCIS special agent described in subsection (b)--
 ``(1) to execute and serve any warrant or other
 process issued under the authority of the United
 States; and
 ``(2) to make arrests without a warrant--
 ``(A) for any offense against the United
 States committed in the presence of that agent;
 and
 ``(B) for any felony cognizable under the
 laws of the United States if the agent has
 probable cause to believe that the person to be
 arrested has committed or is committing the
 felony.
 ``(b) Agents To Have Authority.--Subsection (a) applies to
any DCIS special agent whose duties include conducting,
supervising, or coordinating investigations of criminal
activity in programs and operations of the Department of
Defense.
 ``(c) Guidelines on Exercise of Authority.--The authority
provided under subsection (a) shall be exercised in accordance
with guidelines prescribed by the Inspector General of the
Department of Defense and approved by the Attorney General and
any other applicable guidelines prescribed by the Secretary of
Defense or the Attorney General.
 ``(d) DCIS Special Agent Defined.--In this section, the
term `DCIS special agent' means an employee of the Department
of Defense who is a special agent of the Defense Criminal
Investigative Service (or any successor to that service).''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 1585 the following new item:

``1585a. Special agents of the Defense Criminal Investigative Service:
 authority to execute warrants and make arrests.''.

SEC. 1072. STUDY OF INVESTIGATIVE PRACTICES OF MILITARY CRIMINAL
 INVESTIGATIVE ORGANIZATIONS RELATING TO SEX CRIMES.

 (a) Independent Study Required.--(1) The Secretary of
Defense shall provide for an independent study of the policies,
procedures, and practices of the military criminal
investigative organizations for the conduct of investigations
of complaints of sex crimes and other criminal sexual
misconduct arising in the Armed Forces.
 (2) The Secretary shall provide for the study to be
conducted by the National Academy of Public Administration. The
amount of a contract for the study may not exceed $2,000,000.
 (3) The Secretary shall require that all components of the
Department of Defense cooperate fully with the organization
carrying out the study.
 (b) Matters To Be Included in Study.--The Secretary shall
require that the organization conducting the study under this
section specifically consider each of the following matters:
 (1) The need (if any) for greater organizational
 independence and autonomy for the military criminal
 investigative organizations than exists under current
 chain-of-command structures within the military
 departments.
 (2) The authority of each of the military criminal
 investigative organizations to investigate allegations
 of sex crimes and other criminal sexual misconduct and
 the policies of those organizations for carrying out
 such investigations.
 (3) The training (including training in skills and
 techniques related to the conduct of interviews)
 provided byeach of those organizations to agents or
prospective agents responsible for conducting or providing support to
investigations of alleged sex crimes and other criminal sexual
misconduct, including--
 (A) the extent to which that training is
 comparable to the training provided by the
 Federal Bureau of Investigation and other
 civilian law enforcement agencies; and
 (B) the coordination of training and
 investigative policies related to alleged sex
 crimes and other criminal sexual misconduct of
 each of those organizations with the Federal
 Bureau of Investigation and other civilian
 Federal law enforcement agencies.
 (4) The procedures and relevant professional
 standards of each military criminal investigative
 organization with regard to recruitment and hiring of
 agents, including an evaluation of the extent to which
 those procedures and standards provide for--
 (A) sufficient screening of prospective
 agents based on background investigations; and
 (B) obtaining sufficient information about
 the qualifications and relevant experience of
 prospective agents.
 (5) The advantages and disadvantages of
 establishing, within each of the military criminal
 investigative organizations or within the Defense
 Criminal Investigative Service only, a special unit for
 the investigation of alleged sex crimes and other
 criminal sexual misconduct.
 (6) The clarity of guidance for, and consistency of
 investigative tactics used by, each of the military
 criminal investigative organizations for the
 investigation of alleged sex crimes and other criminal
 sexual misconduct, together with a comparison with the
 guidance and tactics used by the Federal Bureau of
 Investigation and other civilian law enforcement
 agencies for such investigations.
 (7) The number of allegations of agent misconduct
 in the investigation of sex crimes and other criminal
 sexual misconduct for each of those organizations,
 together with a comparison with the number of such
 allegations concerning agents of the Federal Bureau of
 Investigation and other civilian law enforcement
 agencies for such investigations.
 (8) The procedures of each of the military criminal
 investigative organizations for administrative
 identification (known as ``titling'') of persons
 suspected of committing sex crimes or other criminal
 sexual misconduct, together with a comparison with the
 comparable procedures of the Federal Bureau of
 Investigation and other civilian Federal law
 enforcement agencies for such investigations.
 (9) The accuracy, timeliness, and completeness of
 reporting of sex crimes and other criminal sexual
 misconduct by each of the military criminal
 investigative organizations to the National Crime
 Information Center maintained by the Department of
 Justice.
 (10) Any recommendation for legislation or
 administrative action to revise the organizational or
 operational arrangements of the military criminal
 investigative organizations or to alter recruitment,
 training, or operational procedures, as they pertain to
 the investigation of sex crimes and other criminal
 sexual misconduct.
 (c) Report.--(1) The Secretary of Defense shall require the
organization conducting the study under this section to submit
to the Secretary a report on the study not later than one year
after the date of the enactment of this Act. The organization
shall include in the report its findings and conclusions
concerning each of the matters specified in subsection (b).
 (2) The Secretary shall submit the report under paragraph
(1), together with the Secretary's comments on the report, to
Congress not later than 30 days after the date on which the
report is submitted to the Secretary under paragraph (1).
 (d) Military Criminal Investigative Organization Defined.--
For the purposes of this section, the term ``military criminal
investigative organization'' means any of the following:
 (1) The Army Criminal Investigation Command.
 (2) The Naval Criminal Investigative Service.
 (3) The Air Force Office of Special Investigations.
 (4) The Defense Criminal Investigative Service.
 (e) Criminal Sexual Misconduct Defined.--For the purposes
of this section, the term ``criminal sexual misconduct'' means
conduct by a member of the Armed Forces involving sexual abuse,
sexual harassment, or other sexual misconduct that constitutes
an offense under the Uniform Code of Military Justice.

SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

 (a) Title 10, United States Code.--Title 10, United States
Code, is amended as follows:
 (1) The tables of chapters at the beginning of
 subtitle A, and at the beginning of part I of subtitle
 A, are each amended by striking out ``471'' in the item
 relating to chapter 23 and inserting in lieu thereof
 ``481''.
 (2) The tables of chapters at the beginning of
 subtitle A, and at the beginning of part IV of subtitle
 A, are each amended by striking out ``2540'' in the
 item relating to chapter 152 and inserting in lieu
 thereof ``2541''.
 (3) Section 116(b)(2) is amended by striking out
 ``such subsection'' and inserting in lieu thereof
 ``subsection (a)''.
 (4) Section 129c(e)(1) is amended by striking out
 ``section 115a(g)(2)'' and inserting in lieu thereof
 ``section 115a(e)(2)''.
 (5) Section 193(d)(1) is amended by striking out
 ``performs'' and inserting in lieu thereof ``perform''.
 (6) Section 382(g) is amended by striking out ``the
 date of the enactment of the National Defense
 Authorization Act for Fiscal Year 1997'' and inserting
 in lieu thereof ``September 23, 1996''.
 (7) Section 443(b)(1) is amended by striking out
 the period at the end and inserting in lieu thereof a
 semicolon.
 (8) Section 445 is amended--
 (A) by striking out ``(1)'' before ``Except
 with'';
 (B) by redesignating subparagraphs (A),
 (B), and (C) as paragraphs (1), (2), and (3),
 respectively;
 (C) by striking out ``(2)'' before
 ``Whenever it appears'' and inserting in lieu
 thereof ``(b) Injunctive Relief.--''; and
 (D) by striking out ``paragraph (1)'' and
 inserting in lieu thereof ``subsection (a)''.
 (9) Section 858b(a)(1) is amended in the first
 sentence by striking out ``forfeiture'' and all that
 follows through ``due that member'' and inserting in
 lieu thereof ``forfeiture of pay, or of pay and
 allowances, due that member''.
 (10) The item relating to section 895 (article 95)
 in the table of sections at the beginning of subchapter
 X of chapter 47 is amended by striking out ``Art.''.
 (11) Section 943(c) is amended--
 (A) by capitalizing the initial letter of
 the third word of the subsection heading;
 (B) in the second sentence, by striking out
 ``Court'' and inserting in lieu thereof
 ``court''; and
 (C) in the third sentence, by striking out
 ``such positions'' and inserting in lieu
 thereof ``positions referred to in the
 preceding sentences''.
 (12) Section 954 is amended by striking out
 ``this'' and inserting in lieu thereof ``his''.
 (13) Section 971(b)(4) is amended by capitalizing
 the first letter of the fifth and sixth words.
 (14) Section 972(b) is amended by striking out
 ``the date of the enactment of the National Defense
 Authorization Act for Fiscal Year 1996'' in the matter
 preceding paragraph (1) and inserting in lieu thereof
 ``February 10, 1996''.
 (15) Section 976(f) is amended by striking out
 ``shall,'' and all that follows and inserting in lieu
 thereof ``shall be fined under title 18 or imprisoned
 not more than 5 years, or both, except that, in the
 case of an organization (as defined in section 18 of
 such title), the fine shall not be less than
 $25,000.''.
 (16) Section 977 is amended--
 (A) in subsection (c), by striking out
 ``Beginning on October 1, 1996, not more than''
 and inserting in lieu thereof ``Not more
 than''; and
 (B) in subsection (d)(2), by striking out
 ``before October 1, 1996,'' and all that
 follows through ``so assigned'' the second
 place it appears.
 (17) Section 1078a(g)(4)(B)(iii)(II) is amended by
 striking out ``section 1447(8)'' and inserting in lieu
 thereof ``section 1447(13)''.
 (18) Section 1129(c) is amended--
 (A) by striking out ``the date of the
 enactment of this section,'' and inserting in
 lieu thereof ``November 30, 1993,''; and
 (B) by striking out ``before the date of
 the enactment of this section or'' and
 inserting in lieu thereof ``before such date
 or''.
 (19) Section 1151(b) is amended by capitalizing the
 first letter of the second word in the subsection
 heading.
 (20) Section 1152(g) is amended by inserting
 ``(1)'' before ``The Secretary may''.
 (21) Section 1143(d) is amended by striking out
 ``section 806(a)(2) of the Military Family Act of
 1985'' and inserting in lieu thereof ``section
 1784(a)(2) of this title''.
 (22) Section 1174(a)(1) is amended by striking out
 ``, 1177,''.
 (23) Section 1406 is amended--
 (A) by striking out ``3962(b)'' in footnote
 number 3 in the table in subsection (b)(1) and
 in footnote number 1 in the table in subsection
 (c)(1) and inserting in lieu thereof ``3962'';
 and
 (B) by striking out ``8962(b)'' in footnote
 number 3 in the table in subsection (b)(1) and
 in footnote number 1 in the table in subsection
 (e)(1) and inserting in lieu thereof ``8962''.
 (24) Section 1408(d) is amended--
 (A) by decapitalizing the first letter of
 the fifth word in the subsection heading;
 (B) by redesignating the second paragraph
 (6) as paragraph (7); and
 (C) in paragraph (7), as so redesignated,
 by striking out ``out-of State'' in
 subparagraph (A) and inserting in lieu thereof
 ``out-of-State''.
 (25) Section 1408(g) is amended by decapitalizing
 the first letter of the second and ninth words in the
 subsection heading.
 (26) Section 1444a(b) is amended by striking out
 ``section 1455(c)'' and inserting in lieu thereof
 ``section 1455(d)(2)''.
 (27) Section 1448 is amended by capitalizing the
 first letter of the third word of the section heading.
 (28) Section 1451(a)(2) is amended by inserting a
 period in the paragraph heading before the one-em dash.
 (29) Section 1452 is amended--
 (A) in subsection (a)(1)(A), by striking
 out ``providing'' in the matter preceding
 clause (i) and inserting in lieu thereof
 ``provided''; and
 (B) in subsection (e), by striking out
 ``section 8339(i)'' and ``section 8331(b)'' and
 inserting in lieu thereof ``section 8339(j)''
 and ``section 8341(b)'', respectively.
 (30) Section 1504(i)(1) is amended by striking out
 ``this subsection'' and inserting in lieu thereof
 ``this section''.
 (31) Section 1599c(c)(1)(F) is amended by striking
 out ``Sections 106(f)'' and inserting in lieu thereof
 ``Sections 106(e)''.
 (32) Section 1613(a) is amended by striking out
 ``1604'' and inserting in lieu thereof ``1603''.
 (33) Section 1763 is amended--
 (A) by striking out ``On and after October
 1, 1993, the Secretary of Defense'' and
 inserting in lieu thereof ``The Secretary of
 Defense''; and
 (B) by striking out ``secretaries'' and
 inserting in lieu thereof ``Secretaries''.
 (34) Section 1792 is amended--
 (A) in subsection (a)(1), by striking out
 the comma after ``implementing''; and
 (B) in subsection (d)(2), by striking out
 ``section 1794'' and inserting in lieu thereof
 ``section 1784''.
 (35) Section 2010(e) is repealed.
 (36) Section 2107a(g) is amended by inserting
 ``the'' after ``August 1, 1979, as a member of ''.
 (37) Section 2109(c)(1)(A) is amended by striking
 out ``section 2106(b)(6)'' and inserting in lieu
 thereof ``section 2104(b)(6)''.
 (38) Section 2114(h) is amended by striking out
 ``section 2123(e)(1)'' and inserting in lieu thereof
 ``section 2123(e)''.
 (39) Section 2198(c) is amended by striking out
 ``identified in'' and all that follows through the
 period at the end and inserting in lieu thereof ``that
 is identified under section 2505 of this title as
 critical for attaining the national security objectives
 set forth in section 2501(a) of this title.''.
 (40) Section 2249a(a)(1) is amended by striking out
 ``50 App. 2405(j)'' and inserting in lieu thereof ``50
 U.S.C. App. 2405(j)(1)(A)''.
 (41) Section 2302d(a)(2) is amended by striking out
 ``procurement of '' and inserting in lieu thereof
 ``procurement for the system is estimated to be''.
 (42) Section 2304(c)(5) is amended by striking out
 ``subsection (j)'' and inserting in lieu thereof
 ``subsection (k)''.
 (43) Section 2304(f) is amended--
 (A) in paragraph (1)(B)(iii), by striking
 out ``(6)(C)'' and inserting in lieu thereof
 ``(6)(B)''; and
 (B) in paragraph (6)--
 (i) by striking out subparagraph
 (B); and
 (ii) by redesignating subparagraph
 (C) as subparagraph (B) and in that
 subparagraph by striking out
 ``paragraph (1)(B)(iv)'' and inserting
 in lieu thereof ``paragraph
 (1)(B)(iii)''.
 (44) Section 2305a(a) is amended by striking out
 ``(41 U.S.C.'' and inserting in lieu thereof ``(40
 U.S.C.''.
 (45) Section 2306(h) is amended by inserting ``for
 the purchase of property'' after ``Multiyear
 contracting authority''.
 (46) Section 2306a(a)(5) is amended by striking out
 ``subsection (b)(1)(B)'' and inserting in lieu thereof
 ``subsection (b)(1)(C)''.
 (47) Section 2306b is amended by striking out
 ``this subsection'' in the first sentence of subsection
 (k) and inserting in lieu thereof ``this section''.
 (48)(A) The heading of section 2306b is amended to
 read as follows:

``Sec. 2306b. Multiyear contracts: acquisition of property''.

 (B) The item relating to such section in the table
 of sections at the beginning of chapter 137 is amended
 to read as follows:

``2306b. Multiyear contracts: acquisition of property.''.

 (49) Section 2315(a) is amended by striking out
 ``the Information Technology Management Reform Act of
 1996'' and inserting in lieu thereof ``division E of
 the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et
 seq.)''.
 (50) Section 2371a is amended by inserting
 ``Defense'' before ``Advanced Research Projects
 Agency''.
 (51) Section 2375(c) is amended--
 (A) by striking out ``provisions relating
 to exceptions'' and inserting in lieu thereof
 ``a provision relating to an exception''; and
 (B) by striking out ``section 2306a(d)''
 and inserting in lieu thereof ``section
 2306a(b)''.
 (52) Section 2401a(a) is amended by striking out
 ``leasing of such vehicles'' and inserting in lieu
 thereof ``such leasing''.
 (53) Section 2491(8) is amended by striking out
 ``that appears'' and all that follows through the
 period at the end and inserting in lieu thereof ``that
 is identified under section 2505 of this title as
 critical for attaining the national security objectives
 set forth in section 2501(a) of this title.''.
 (54) Section 2533(a) is amended by striking out the
 first closing parenthesis after ``41 U.S.C. 10a''.
 (55) Section 2534(b)(3) is amended by striking out
 ``(a)(3)(A)(ii)'' and inserting in lieu thereof
 ``(a)(3)(A)(iii)''.
 (56) Section 2554(c)(1) is amended by striking out
 ``the date of the enactment of this Act'' and inserting
 in lieu thereof ``September 23, 1996''.
 (57) Section 2645(a)(1)(B) is amended by striking
 out ``on which'' after ``the date on which''.
 (58) Section 2684(b) is amended by striking out ``,
 United States Code,''.
 (59) Section 2694(b)(1)(D) is amended by striking
 out ``executive ageny'' and inserting in lieu thereof
 ``executive agency''.
 (60) Section 2878(d)(4) is amended by striking out
 ``11401'' and inserting in lieu thereof ``11411''.
 (61) Section 2885 is amended by striking out ``five
 years after the date of the enactment of the National
 Defense Authorization Act for Fiscal Year 1996'' and
 inserting in lieu thereof ``on February 10, 2001''.
 (62) Sections 4342(a)(10), 6954(a)(10), and
 9342(a)(10) are amended by striking out ``Marianas''
 and inserting in lieu thereof ``Mariana''.
 (63) Section 7606(e) is amended by striking out
 ``sections'' and inserting in lieu thereof ``section''.
 (64) Section 7902(b)(8) is amended by inserting
 ``United States'' before ``Geological Survey''.
 (65) Section 8038(e) is amended by striking out
 ``(1)''.
 (66) The item relating to section 8069 in the table
 of sections at the beginning of chapter 807 is amended
 by striking out ``Nurse Corps'' and inserting in lieu
 thereof ``nurses''.
 (67) Section 12733(3) is amended--
 (A) by inserting a comma after ``(B)''; and
 (B) by striking out ``in which the date of
 the enactment of the National Defense
 Authorization Act for Fiscal Year 1997 occurs''
 and inserting in lieu thereof ``that includes
 September 23, 1996,''.
 (68) Section 14317(d) is amended by striking out
 ``section 14314'' in the first sentence and inserting
 in lieu thereof ``section 14315''.
 (b) Title 37, United States Code.--Section 205(d) of title
37, United States Code, is amended by striking out the period
after ``August 1, 1979'' and inserting in lieu thereof a comma.
 (c) Public Law 104-201.--Effective as of September 23,
1996, and as if included therein as enacted, the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201) is amended as follows:
 (1) Section 324(b)(2) (110 Stat. 2480) is amended
 by inserting after ``In this subsection'' the
 following: ``and subsection (c)''.
 (2) Section 367 (110 Stat. 2496) is amended--
 (A) in subsection (a), by striking out
 ``Subchapter II of chapter'' and inserting in
 lieu thereof ``Chapter''; and
 (B) in subsection (b), by striking out
 ``subchapter'' and inserting in lieu thereof
 ``chapter''.
 (3) Section 371(a) (110 Stat. 2499) is amended by
 striking out ``Section 559(a)(1)'' and inserting in
 lieu thereof ``Section 559''.
 (4) Section 531(a) (110 Stat. 2517) is amended by
 inserting ``of title 10, United States Code,'' before
 ``is amended''.
 (5) Section 614(b)(2)(B) (110 Stat. 2544) is
 amended by striking out ``the period'' and inserting in
 lieu thereof ``the semicolon''.
 (6) Section 802(1) (110 Stat. 2604) is amended by
 striking out ``1995'' in the first quoted matter
 therein and inserting in lieu thereof ``1996''.
 (7) Section 829(c) (110 Stat. 2612) is amended--
 (A) in paragraph (2), by striking out
 ``Section 2502(b)'' and inserting in lieu
 thereof ``Section 2502(c)''; and
 (B) by redesignating paragraph (3) as
 subparagraph (C) of paragraph (2).
 (8) Section 1116(b) (110 Stat. 2686) is amended by
 striking out ``section 1122'' and inserting in lieu
 thereof ``section 1111''.
 (9) Section 1606 (110 Stat. 2737) is amended--
 (A) in subsection (a)(1)--
 (i) by striking out the comma
 before ``or are''; and
 (ii) by inserting a semicolon after
 ``Secretary of Defense'';
 (B) in subsection (b)(1)(A), by striking
 out ``Secretary of each'' and inserting in lieu
 thereof ``secretary of each''; and
 (C) in subsection (b)(2)(B), by inserting a
 semicolon after ``Defense''.
 (d) Other Annual Defense Authorization Acts.--
 (1) Effective as of February 10, 1996, and as if
 included therein as enacted, the National Defense
 Authorization Act for Fiscal Year 1996 (Public Law 104-
 106) is amended as follows:
 (A) Section 321(a)(2)(A) (110 Stat. 251) is
 amended by striking out ``2710(d)'' and
 inserting in lieu thereof ``2701(d)''.
 (B) Section 356(d)(3) (110 Stat. 271) is
 amended by striking out ``or'' after ``to any
 provision'' and inserting in lieu thereof
 ``of''.
 (C) Section 533(b) (110 Stat. 315) is
 amended by inserting before the period at the
 end the following: ``and the amendments made by
 subsection (b), effective as of October 5,
 1994''.
 (D) Section 703(b) (110 Stat. 372) is
 amended by striking out ``Such paragraph'' and
 inserting in lieu thereof ``Such section''.
 (E) Section 1501 (110 Stat. 500) is
 amended--
 (i) in subsection (d)(1), by
 striking out ``337(b)'' and ``2717''
 and inserting in lieu thereof
 ``377(b)'' and ``2737'', respectively;
 and
 (ii) in subsection (f)(2), by
 inserting ``of the Reserve Officer
 Personnel Management Act'' before
 ``shall take''.
 (2) The National Defense Authorization Act for
 Fiscal Year 1993 (Public Law 102-484) is amended as
 follows:
 (A) Section 812(c) (10 U.S.C. 1723 note) is
 amended by inserting ``and Technology'' after
 ``for Acquisition''.
 (B) Section 1091(l)(3) (32 U.S.C. 501 note)
 is amended by striking out ``the day preceding
 the date of the enactment of this Act'' and
 inserting in lieu thereof ``October 19, 1994''.
 (C) Section 4471 (10 U.S.C. 2501 note) is
 amended by realigning subsection (e) so as to
 be flush to the left margin.
 (3) Section 807(b)(2)(A) of the National Defense
 Authorization Act for Fiscal Years 1992 and 1993
 (Public Law 102-190; 10 U.S.C. 2320 note) is amended by
 inserting before the period the following: ``and
 Technology''.
 (4) The National Defense Authorization Act for
 Fiscal Year 1991 (Public Law 101-510) is amended as
 follows:
 (A) Section 1205 (10 U.S.C. 1746 note) is
 amended by striking out ``Under Secretary of
 Defense for Acquisition'' each place it appears
 and inserting in lieu thereof ``Under Secretary
 of Defense for Acquisition and Technology''.
 (B) Section 2905 (10 U.S.C. 2687 note) is
 amended--
 (i) in subsection (b)(7), by
 striking out ``4331'' in subparagraphs
 (K)(iii) and (L)(iv)(III) and inserting
 in lieu thereof ``4321''; and
 (ii) in subsection (f)(3), by
 striking out ``section 2873(a)'' and
 inserting in lieu thereof ``section
 2883(a)''.
 (C) Section 2921 (10 U.S.C. 2687 note) is
 amended--
 (i) in subsection (e)(3)(B), by
 striking out ``Defense Subcommittees''
 and inserting in lieu thereof
 ``Subcommittee on Defense''; and
 (ii) in subsection (f)(2), by
 striking out ``the Committees on Armed
 Services of the Senate and House of
 Representatives'' and inserting in lieu
 thereof ``the Committee on Armed
 Services of the Senate and the
 Committee on National Security of the
 House of Representatives''.
 (5) Section 1121(c) of the National Defense
 Authorization Act for Fiscal Years 1988 and 1989
 (Public Law 100-180; 10 U.S.C. 113 note) is amended by
 striking out ``under this section--'' and all that
 follow through ``fiscal year 1990'' and inserting in
 lieu thereof ``under this section may not exceed 5,000
 during any fiscal year''.
 (6) Section 204(e)(3) of the Defense Authorization
 Amendments and Base Closure and Realignment Act (Public
 Law 100-526; 10 U.S.C. 2687 note) is amended by
 striking out ``section 2873(a)'' and inserting in lieu
 thereof ``section 2883(a)''.
 (e) Title 5, United States Code.--Title 5, United States
Code, is amended as follows:
 (1) Section 5315 is amended--
 (A) in the item relating to the Chief
 Information Officer of the Department of the
 Interior, by inserting ``the'' before
 ``Interior''; and
 (B) in the item relating to the Chief
 Information Officer of the Department of the
 Treasury, by inserting ``the'' before
 ``Treasury''.
 (2) Section 5316 is amended by striking out
 ``Atomic Energy'' after ``Assistant to the Secretary of
 Defense for'' and inserting in lieu thereof ``Nuclear
 and Chemical and Biological Defense Programs''.
 (f) Act of August 10, 1956.--Section 3(a)(3) of the Act of
August 10, 1956 (33 U.S.C. 857a) is amended by striking out
``1374,''.
 (g) Acquisition Policy Statutes.--
 (1) Section 309 of the Federal Property and
 Administrative Services Act of 1949 (41 U.S.C. 259) is
 amended by striking out ``and'' at the end of
 subsection (b)(2).
 (2) The Office of Federal Procurement Policy Act is
 amended as follows:
 (A) The item relating to section 27 in the
 table of contents in section 1(b) is amended to
 read as follows:

``Sec. 27. Restrictions on disclosing and obtaining contractor bid or
 proposal information or source selection information.''.

 (B) Section 6(d) (41 U.S.C. 405(d)) is
 amended--
 (i) by striking out the period at
 the end of paragraph (5)(J) and
 inserting in lieu thereof a semicolon;
 (ii) by moving paragraph (6) two
 ems to the left; and
 (iii) in paragraph (12), by
 striking out ``small business'' and
 inserting in lieu thereof ``small
 businesses''.
 (C) Section 35(b)(2) (41 U.S.C. 431(b)(2))
 is amended by striking out ``commercial'' and
 inserting in lieu thereof ``commercially
 available''.
 (3) Section 6 of the Contract Disputes Act of 1978
 (41 U.S.C. 605) is amended in subsections (d) and (e)
 by striking out ``(as in effect on September 30,
 1995)'' each place it appears.
 (4) Subsections (d)(1) and (e) of section 16 of the
 Small Business Act (15 U.S.C. 645) are each amended by
 striking out ``concerns'' and inserting in lieu thereof
 ``concern''.
 (h) Amendments To Conform Change in Short Title of
Information Technology Management Reform Act of 1996.--
 (1) Section 20 of the National Institute of
 Standards and Technology Act (15 U.S.C. 278g-3) is
 amended in subsections (a)(4) and (b)(2) by striking
 out ``Information Technology Management Reform Act of
 1996'' and inserting in lieu thereof ``Clinger-Cohen
 Act of 1996 (40 U.S.C. 1441)''.
 (2) Section 612(f) of title 28, United States Code,
 is amended by striking out ``the Information Technology
 Management Reform Act of 1996'' and inserting in lieu
 thereof ``division E of the Clinger-Cohen Act of 1996
 (40 U.S.C. 1401 et seq.)''.
 (3) Section 310(b) of title 38, United States Code,
 is amended by striking out ``the Information Technology
 Management Reform Act of 1996'' and inserting in lieu
 thereof ``division E of the Clinger-Cohen Act of 1996
 (40 U.S.C. 1401 et seq.)''.
 (4) Section 6(b) of the Computer Security Act of
 1987 (40 U.S.C. 1441 note) is amended by striking out
 ``Information Technology Management Reform Act of
 1996'' and inserting in lieu thereof ``Clinger-Cohen
 Act of 1996 (40 U.S.C. 1441)''.
 (5) Chapter 35 of title 44, United States Code, is
 amended--
 (A) in section 3502(9)--
 (i) by striking out ``the
 Information Technology Management
 Reform Act of 1996'' and inserting in
 lieu thereof ``the Clinger-Cohen Act of
 1996 (40 U.S.C. 1401)''; and
 (ii) by inserting ``(40 U.S.C.
 1452)'' after ``that Act'';
 (B) in section 3504(h)(2), by striking out
 ``the Information Technology Management Reform
 Act of 1996'' and inserting in lieu thereof
 ``division E of the Clinger-Cohen Act of 1996
 (40 U.S.C. 1401 et seq.)''; and
 (C) in sections 3504(g)(2), 3504(g)(3),
 3504(h)(1)(B), and 3518(d) by striking out
 ``Information Technology Management Reform Act
 of 1996'' and inserting in lieu thereof
 ``Clinger-Cohen Act of 1996 (40 U.S.C. 1441)''.
 (i) Coordination With Other Amendments.--For purposes of
applying amendments made by provisions of this Act other than
provisions of this section, this section shall be treated as
having been enacted immediately before the other provisions of
this Act.

SEC. 1074. SUSTAINMENT AND OPERATION OF THE GLOBAL POSITIONING SYSTEM.

 (a) Findings.--Congress makes the following findings:
 (1) The Global Positioning System (consisting of a
 constellation of satellites and associated facilities
 capable of providing users on earth with a highly
 precise statement of their location on earth) makes
 significant contributions to the attainment of the
 national security and foreign policy goals of the
 United States, the safety and efficiency of
 international transportation, and the economic growth,
 trade, and productivity of the United States.
 (2) The infrastructure for the Global Positioning
 System (including both space and ground segments of the
 infrastructure) is vital to the effectiveness of United
 States and allied military forces and to the protection
 of the national security interests of the United
 States.
 (3) In addition to having military uses, the Global
 Positioning System has essential civil, commercial, and
 scientific uses.
 (4) As a result of the increasing demand of civil,
 commercial, and scientific users of the Global
 Positioning System--
 (A) there has emerged in the United States
 a new commercial industry to provide Global
 Positioning System equipment and related
 services to the many and varied users of the
 system; and
 (B) there have been rapid technical
 advancements in Global Positioning System
 equipment and services that have contributed
 significantly to reductions in the cost of the
 Global Positioning System and increases in the
 technical capabilities and availability of the
 system for military uses.
 (5) It is in the national interest of the United
 States for the United States--
 (A) to support continuation of the
 multiple-use character of the Global
 Positioning System;
 (B) to promote broader acceptance and use
 of the Global Positioning System and the
 technological standards that facilitate
 expanded use of the system for civil purposes;
 (C) to coordinate with other countries to
 ensure (i) efficient management of the
 electromagnetic spectrum used by the Global
 Positioning System, and (ii) protection of that
 spectrum in order to prevent disruption of
 signals from the system and interference with
 that portion of the electromagnetic spectrum
 used by the system; and
 (D) to encourage open access in all
 international markets to the Global Positioning
 System and supporting equipment, services, and
 techniques.
 (b) International Cooperation.--Congress urges the
President to promote the security of the United States and its
allies, the public safety, and commercial interests by taking
the following steps:
 (1) Undertaking a coordinated effort within the
 executive branch to seek to establish the Global
 Positioning System, and augmentations to the system, as
 a worldwide resource.
 (2) Seeking to enter into international agreements
 to establish signal and service standards that protect
 the Global Positioning System from disruption and
 interference.
 (3) Undertaking efforts to eliminate any barriers
 to, and other restrictions of foreign governments on,
 peaceful uses of the Global Positioning System.
 (4) Requiring that any proposed international
 agreement involving nonmilitary use of the Global
 Positioning System or any augmentation to the system
 not be agreed to by the United States unless the
 proposed agreement has been reviewed by the Secretary
 of State, the Secretary of Defense, the Secretary of
 Transportation, and the Secretary of Commerce (acting
 as the Interagency Global Positioning System Executive
 Board established by Presidential Decision Directive
 NSTC-6, dated March 28, 1996).
 (c) Fiscal Year 1998 Prohibition of Support of Foreign
System.--None of the funds authorized to be appropriated under
this Act may be used to support the operation and maintenance
or enhancement of a satellite navigation system operated by a
foreign country.
 (d) In General.--(1) Part IV of subtitle A of title 10,
United States Code, is amended by inserting after chapter 134
the following new chapter:

 ``CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS

``Sec.
``2281. Global Positioning System.

``Sec. 2281. Global Positioning System

 ``(a) Sustainment and Operation for Military Purposes.--The
Secretary of Defense shall provide for the sustainment of the
capabilities of the Global Positioning System (hereinafter in
this section referred to as the `GPS'), and the operation of
basic GPS services, that are beneficial for thenational
security interests of the United States. In doing so, the Secretary
shall--
 ``(1) develop appropriate measures for preventing
 hostile use of the GPS so as to make it unnecessary for
 the Secretary to use the selective availability feature
 of the system continuously while not hindering the use
 of the GPS by the United States and its allies for
 military purposes; and
 ``(2) ensure that United States armed forces have
 the capability to use the GPS effectively despite
 hostile attempts to prevent the use of the system by
 such forces.
 ``(b) Sustainment and Operation for Civilian Purposes.--The
Secretary of Defense shall provide for the sustainment and
operation of the GPS Standard Positioning Service for peaceful
civil, commercial, and scientific uses on a continuous
worldwide basis free of direct user fees. In doing so, the
Secretary--
 ``(1) shall provide for the sustainment and
 operation of the GPS Standard Positioning Service in
 order to meet the performance requirements of the
 Federal Radionavigation Plan prepared jointly by the
 Secretary of Defense and the Secretary of
 Transportation pursuant to subsection (c);
 ``(2) shall coordinate with the Secretary of
 Transportation regarding the development and
 implementation by the Government of augmentations to
 the basic GPS that achieve or enhance uses of the
 system in support of transportation;
 ``(3) shall coordinate with the Secretary of
 Commerce, the United States Trade Representative, and
 other appropriate officials to facilitate the
 development of new and expanded civil and commercial
 uses for the GPS;
 ``(4) shall develop measures for preventing hostile
 use of the GPS in a particular area without hindering
 peaceful civil use of the system elsewhere; and
 ``(5) may not agree to any restriction on the
 Global Positioning System proposed by the head of a
 department or agency of the United States outside the
 Department of Defense in the exercise of that
 official's regulatory authority that would adversely
 affect the military potential of the Global Positioning
 System.
 ``(c) Federal Radionavigation Plan.--The Secretary of
Defense and the Secretary of Transportation shall jointly
prepare the Federal Radionavigation Plan. The plan shall be
revised and updated not less often than every two years. The
plan shall be prepared in accordance with the requirements
applicable to such plan as first prepared pursuant to section
507 of the International Maritime Satellite Telecommunications
Act (47 U.S.C. 756). The plan, and any amendment to the plan,
shall be published in the Federal Register.
 ``(d) Biennial Report.--(1) Not later than 30 days after
the end of each even-numbered fiscal year, the Secretary of
Defense shall submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives a report on the Global Positioning System. The
report shall include a discussion of the following matters:
 ``(A) The operational status of the system.
 ``(B) The capability of the system to satisfy
 effectively (i) the military requirements for the
 system that are current as of the date of the report,
 and (ii) the performance requirements of the Federal
 Radionavigation Plan.
 ``(C) The most recent determination by the
 President regarding continued use of the selective
 availability feature of the system and the expected
 date of any change or elimination of the use of that
 feature.
 ``(D) The status of cooperative activities
 undertaken by the United States with the governments of
 other countries concerning the capability of the system
 or any augmentation of the system to satisfy civil,
 commercial, scientific, and military requirements,
 including a discussion of the status and results of
 activities undertaken under any regional international
 agreement.
 ``(E) Any progress made toward establishing GPS as
 an international standard for consistency of
 navigational service.
 ``(F) Any progress made toward protecting GPS from
 disruption and interference.
 ``(G) The effects of use of the system on national
 security, regional security, and the economic
 competitiveness of United States industry, including
 the Global Positioning System equipment and service
 industry and user industries.
 ``(2) In preparing the parts of each such report required
under subparagraphs (D), (E), (F), and (G) of paragraph (1),
the Secretary of Defense shall consult with the Secretary of
State, the Secretary of Commerce, and the Secretary of
Transportation.
 ``(e) Definitions.--In this section:
 ``(1) The term `basic GPS services' means the
 following components of the Global Positioning System
 that are operated and maintained by the Department of
 Defense:
 ``(A) The constellation of satellites.
 ``(B) The navigation payloads that produce
 the Global Positioning System signals.
 ``(C) The ground stations, data links, and
 associated command and control facilities.
 ``(2) The term `GPS Standard Positioning Service'
 means the civil and commercial service provided by the
 basic Global Positioning System as defined in the 1996
 Federal Radionavigation Plan (published jointly by the
 Secretary of Defense and the Secretary of
 Transportation in July 1997).''.
 (2) The tables of chapters at the beginning of subtitle A,
and at the beginning of part IV of subtitle A, of such title
are amended by inserting after the item relating to chapter 134
the following new item:

``136. Provisions Relating to Specific Programs..................2281''.

SEC. 1075. PROTECTION OF SAFETY-RELATED INFORMATION VOLUNTARILY
 PROVIDED BY AIR CARRIERS.

 (a) Authority To Protect Information.--Section 2640 of
title 10, United States Code, is amended--
 (1) by redesignating subsections (h) and (i) as
 subsections (i) and (j), respectively; and
 (2) by inserting after subsection (g) the following
 new subsection (h):
 ``(h) Authority To Protect Safety-Related Information
Voluntarily Provided by an Air Carrier.--(1) Subject to
paragraph (2), the Secretary of Defense may (notwithstanding
any other provision of law) withhold from public disclosure
safety-related information that is provided to the Secretary
voluntarily by an air carrier for the purposes of this section.
 ``(2) Information may be withheld under paragraph (1) from
public disclosure only if the Secretary determines that--
 ``(A) the disclosure of the information would
 inhibit an air carrier from voluntarily providing, in
 the future, safety-related information for the purposes
 of this section or for other air safety purposes
 involving the Department of Defense or another Federal
 agency; and
 ``(B) the receipt of such information generally
 enhances the fulfillment of responsibilities under this
 section or other air safety responsibilities involving
 the Department of Defense or another Federal agency.
 ``(3) If the Secretary provides to the head of another
agency safety-related information described in paragraph (1)
with respect to which the Secretary has made a determination
described in paragraph (2), the head of that agency shall
(notwithstanding any other provision of law) withhold the
information from public disclosure unless the disclosure is
specifically authorized by the Secretary.''.
 (b) Applicability.--Subsection (h) of section 2640 of title
10, United States Code, as added by subsection (a), shallapply
with respect to requests for information made on or after the date of
the enactment of this Act.

SEC. 1076. NATIONAL GUARD CHALLENGE PROGRAM TO CREATE OPPORTUNITIES FOR
 CIVILIAN YOUTH.

 (a) Program Authority.--Chapter 5 of title 32, United
States Code, is amended by adding at the end the following new
section:

``Sec. 509. National Guard Challenge Program of opportunities for
 civilian youth

 ``(a) Program Authority and Purpose.--The Secretary of
Defense, acting through the Chief of the National Guard Bureau,
may conduct a National Guard civilian youth opportunities
program (to be known as the `National Guard Challenge Program')
to use the National Guard to provide military-based training,
including supervised work experience in community service and
conservation projects, to civilian youth who cease to attend
secondary school before graduating so as to improve the life
skills and employment potential of such youth.
 ``(b) Conduct of the Program.--The Secretary of Defense
shall provide for the conduct of the National Guard Challenge
Program in such States as the Secretary considers to be
appropriate, except that Federal expenditures under the program
may not exceed $50,000,000 for any fiscal year.
 ``(c) Program Agreements.--(1) To carry out the National
Guard Challenge Program in a State, the Secretary of Defense
shall enter into an agreement with the Governor of the State
or, in the case of the District of Columbia, with the
commanding general of the District of Columbia National Guard,
under which the Governor or the commanding general will
establish, organize, and administer the National Guard
Challenge Program in the State.
 ``(2) The agreement may provide for the Secretary to
provide funds to the State for civilian personnel costs
attributable to the use of civilian employees of the National
Guard in the conduct of the National Guard Challenge Program.
 ``(d) Matching Funds Required.--The amount of assistance
provided under this section to a State program of the National
Guard Challenge Program may not exceed--
 ``(1) for fiscal year 1998, 75 percent of the costs
 of operating the State program during that year;
 ``(2) for fiscal year 1999, 70 percent of the costs
 of operating the State program during that year;
 ``(3) for fiscal year 2000, 65 percent of the costs
 of operating the State program during that year; and
 ``(4) for fiscal year 2001 and each subsequent
 fiscal year, 60 percent of the costs of operating the
 State program during that year.
 ``(e) Persons Eligible to Participate in Program.--A school
dropout from secondary school shall be eligible to participate
in the National Guard Challenge Program. The Secretary of
Defense shall prescribe the standards and procedures for
selecting participants from among school dropouts.
 ``(f) Authorized Benefits for Participants.--(1) To the
extent provided in an agreement entered into in accordance with
subsection (c) and subject to the approval of the Secretary of
Defense, a person selected for training in the National Guard
Challenge Program may receive the following benefits in
connection with that training:
 ``(A) Allowances for travel expenses, personal
 expenses, and other expenses.
 ``(B) Quarters.
 ``(C) Subsistence.
 ``(D) Transportation.
 ``(E) Equipment.
 ``(F) Clothing.
 ``(G) Recreational services and supplies.
 ``(H) Other services.
 ``(I) Subject to paragraph (2), a temporary stipend
 upon the successful completion of the training, as
 characterized in accordance with procedures provided in
 the agreement.
 ``(2) In the case of a person selected for training in the
National Guard Challenge Program who afterwards becomes a
member of the Civilian Community Corps under subtitle E of
title I of the National and Community Service Act of 1990 (42
U.S.C. 12611 et seq.), the person may not receive a temporary
stipend under paragraph (1)(I) while the person is a member of
that Corps. The person may receive the temporary stipend after
completing service in the Corps unless the person elects to
receive benefits provided under subsection (f) or (g) of
section 158 of such Act (42 U.S.C. 12618).
 ``(g) Program Personnel.--(1) Personnel of the National
Guard of a State in which the National Guard Challenge Program
is conducted may serve on full-time National Guard duty for the
purpose of providing command, administrative, training, or
supporting services for the program. For the performance of
those services, any such personnel may be ordered to duty under
section 502(f) of this title for not longer than the period of
the program.
 ``(2) A Governor participating in the National Guard
Challenge Program and the commanding general of the District of
Columbia National Guard (if the District of Columbia National
Guard is participating in the program) may procure by contract
the temporary full time services of such civilian personnel as
may be necessary to augment National Guard personnel in
carrying out the National Guard Challenge Program in that
State.
 ``(3) Civilian employees of the National Guard performing
services for the National Guard Challenge Program and
contractor personnel performing such services may be required,
when appropriate to achieve the purposes of the program, to be
members of the National Guard and to wear the military uniform.
 ``(h) Equipment and Facilities.--(1) Equipment and
facilities of the National Guard, including military property
of the United States issued to the National Guard, may be used
in carrying out the National Guard Challenge Program.
 ``(2) Activities under the National Guard Challenge Program
shall be considered noncombat activities of the National Guard
for purposes of section 710 of this title.
 ``(i) Status of Participants.--(1) A person receiving
training under the National Guard Challenge Program shall be
considered an employee of the United States for the purposes of
the following provisions of law:
 ``(A) Subchapter I of chapter 81 of title 5
 (relating to compensation of Federal employees for work
 injuries).
 ``(B) Section 1346(b) and chapter 171 of title 28
 and any other provision of law relating to the
 liability of the United States for tortious conduct of
 employees of the United States.
 ``(2) In the application of the provisions of law referred
to in paragraph (1)(A) to a person referred to in paragraph
(1)--
 ``(A) the person shall not be considered to be in
 the performance of duty while the person is not at the
 assigned location of training or other activity or duty
 authorized in accordance with a program agreement
 referred to in subsection (c), except when the person
 is traveling to or from that location or is on pass
 from that training or other activity or duty;
 ``(B) the person's monthly rate of pay shall be
 deemed to be the minimum rate of pay provided for grade
 GS-2 of the General Schedule under section 5332 of
 title 5; and
 ``(C) the entitlement of a person to receive
 compensation for a disability shall begin on the day
 following the date on which the person's participation
 in the National Guard Challenge Program is terminated.
 ``(3) A person referred to in paragraph (1) may not be
considered an employee of the United States for any purpose
other than a purpose set forth in that paragraph.
 ``(j) Supplemental Resources.--To carry out the National
Guard Challenge Program in a State, the Governor of the State
or, in the case of the District of Columbia, the commanding
general of the District of Columbia National Guard may
supplement funds made available under the program out of other
resources (including gifts) available to the Governor or the
commanding general. The Governor or the commanding general may
accept, use, and dispose of gifts or donations of money, other
property, or services for the National Guard Challenge Program.
 ``(k) Report.--Within 90 days after the end of each fiscal
year, the Secretary of Defense shall submit to Congress a
report on the design, conduct, and effectiveness of the
National Guard Challenge Program during the preceding fiscal
year. In preparing the report, the Secretary shall coordinate
with the Governor of each State in which the National Guard
Challenge Program is carried out and, if the program is carried
out in the District of Columbia, with the commanding general of
the District of Columbia National Guard.
 ``(l) Definitions.--In this section:
 ``(1) The term `State' includes the Commonwealth of
 Puerto Rico, the territories, and the District of
 Columbia.
 ``(2) The term `school dropout' means an individual
 who is no longer attending any school and who has not
 received a secondary school diploma or a certificate
 from a program of equivalency for such a diploma.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``509. National Guard Challenge Program of opportunities for civilian
 youth.''.

SEC. 1077. DISQUALIFICATION FROM CERTAIN BURIAL-RELATED BENEFITS FOR
 PERSONS CONVICTED OF CAPITAL CRIMES.

 (a) In General.--(1) Chapter 49 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 985. Persons convicted of capital crimes: denial of certain
 burial-related benefits

 ``(a) Prohibition of Performance of Military Honors.--The
Secretary of a military department and the Secretary of
Transportation, with respect to the Coast Guard whenit is not
operating as a service in the Navy, may not provide military honors at
the funeral or burial of a person who has been convicted of a capital
offense under Federal or State law for which the person was sentenced
to death or life imprisonment without parole.
 ``(b) Disqualification From Burial in Military
Cemeteries.--A person convicted of a capital offense under
Federal law is not entitled to or eligible for, and may not be
provided, burial in--
 ``(1) Arlington National Cemetery;
 ``(2) the Soldiers' and Airmen's National Cemetery;
 or
 ``(3) any other cemetery administered by the
 Secretary of a military department or the Secretary of
 Defense.
 ``(c) Definitions.--In this section:
 ``(1) The term `capital offense' means an offense
 for which the death penalty may be imposed.
 ``(2) The term `burial' includes inurnment.
 ``(3) The term `State' includes the District of
 Columbia and any commonwealth or territory of the
 United States.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``985. Persons convicted of capital crimes: denial of certain burial-
 related benefits.''.

 (b) Applicability.--Section 985 of title 10, United States
Code, as added by subsection (a), applies with respect to
persons dying after January 1, 1997.

SEC. 1078. RESTRICTIONS ON THE USE OF HUMAN SUBJECTS FOR TESTING OF
 CHEMICAL OR BIOLOGICAL AGENTS.

 (a) Prohibited Activities.--The Secretary of Defense may
not conduct (directly or by contract)--
 (1) any test or experiment involving the use of a
 chemical agent or biological agent on a civilian
 population; or
 (2) any other testing of a chemical agent or
 biological agent on human subjects.
 (b) Exceptions.--Subject to subsections (c), (d), and (e),
the prohibition in subsection (a) does not apply to a test or
experiment carried out for any of the following purposes:
 (1) Any peaceful purpose that is related to a
 medical, therapeutic, pharmaceutical, agricultural,
 industrial, or research activity.
 (2) Any purpose that is directly related to
 protection against toxic chemicals or biological
 weapons and agents.
 (3) Any law enforcement purpose, including any
 purpose related to riot control.
 (c) Informed Consent Required.--The Secretary of Defense
may conduct a test or experiment described in subsection (b)
only if informed consent to the testing was obtained from each
human subject in advance of the testing on that subject.
 (d) Prior Notice to Congress.--Not later than 30 days after
the date of final approval within the Department of Defense of
plans for any experiment or study to be conducted by the
Department of Defense (whether directly or under contract)
involving the use of human subjects for the testing of a
chemical agent or a biological agent, the Secretary of Defense
shall submit to the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives a report setting forth a full accounting of
those plans, and the experiment or study may then be conducted
only after the end of the 30-day period beginning on the date
such report is received by those committees.
 (e) Biological Agent Defined.--In this section, the term
``biological agent'' means any micro-organism (including
bacteria, viruses, fungi, rickettsiac, or protozoa), pathogen,
or infectious substance, and any naturally occurring,
bioengineered, or synthesized component of any such micro-
organism, pathogen, or infectious substance, whatever its
origin or method of production, that is capable of causing--
 (1) death, disease, or other biological malfunction
 in a human, an animal, a plant, or another living
 organism;
 (2) deterioration of food, water, equipment,
 supplies, or materials of any kind; or
 (3) deleterious alteration of the environment.
 (f) Report and Certification.--Section 1703(b) of the
National Defense Authorization Act for Fiscal Year 1994 (50
U.S.C. 1523(b)) is amended by adding at the end the following
new paragraph:
 ``(9) A description of any program involving the
 testing of biological or chemical agents on human
 subjects that was carried out by the Department of
 Defense during the period covered by the report,
 together with--
 ``(A) a detailed justification for the
 testing;
 ``(B) a detailed explanation of the
 purposes of the testing;
 ``(C) a description of each chemical or
 biological agent tested; and
 ``(D) the Secretary's certification that
 informed consent to the testing was obtained
 from each human subject in advance of the
 testing on that subject.''.
 (g) Repeal of Superseded Provision of Law.--Section 808 of
the Department of Defense Appropriation Authorization Act, 1978
(50 U.S.C. 1520), is repealed.

SEC. 1079. TREATMENT OF MILITARY FLIGHT OPERATIONS.

 No military flight operation (including a military training
flight), or designation of airspace for such an operation, may
be treated as a transportation program or project for purposes
of section 303(c) of title 49, United States Code.

SEC. 1080. NATURALIZATION OF CERTAIN FOREIGN NATIONALS WHO SERVE
 HONORABLY IN THE ARMED FORCES DURING A PERIOD OF
 CONFLICT.

 (a) In General.--Section 329(a)(1) of the Immigration and
Nationality Act (8 U.S.C. 1440(a)(1)) is amended--
 (1) by inserting ``, reenlistment, extension of
 enlistment,'' after ``at the time of enlistment''; and
 (2) by inserting ``or on board a public vessel
 owned or operated by the United States for
 noncommercial service,'' after ``United States, the
 Canal Zone, American Samoa, or Swains Island,''.
 (b) Effective Date.--The amendments made by subsection (a)
shall apply with respect to enlistments, reenlistments,
extensions of enlistment, and inductions of persons occurring
on or after the date of the enactment of this Act.

SEC. 1081. APPLICABILITY OF CERTAIN PAY AUTHORITIES TO MEMBERS OF
 SPECIFIED INDEPENDENT STUDY ORGANIZATIONS.

 (a) Applicability of Certain Pay Authorities.--(1) An
individual who is a member of a commission or panel specified
in subsection (b) and is an annuitant otherwise covered by
section 8344 or 8468 of title 5, United States Code, by reason
of membership on the commission or panel is not subject to the
provisions of that section with respect to such membership.
 (2) An individual who is a member of a commission or panel
specified in subsection (b) and is a member or former member of
a uniformed service is not subject to the provisions of
subsections (b) and (c) of section 5532 of such title with
respect to membership on the commission or panel.
 (b) Specified Entities.--Subsection (a) applies--
 (1) effective as of September 23, 1996, to members
 of the National Defense Panel established by section
 924 of the National Defense Authorization Act for
 Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2626);
 and
 (2) effective as of October 9, 1996, to members of
 the Commission on Servicemembers and Veterans
 Transition Assistance established by section 701 of the
 Veterans' Benefits Improvements Act of 1996 (Public Law
 104-275; 110 Stat. 3346; 38 U.S.C. 545 note).

SEC. 1082. DISPLAY OF POW/MIA FLAG.

 (a) Required Display.--The POW/MIA flag shall be displayed
at the locations specified in subsection (c) on POW/MIA flag
display days. Such display shall serve (1) as the symbol of the
Nation's concern and commitment to achieving the fullest
possible accounting of Americans who, having been prisoners of
war or missing in action, still remain unaccounted for, and (2)
as the symbol of the Nation's commitment to achieving the
fullest possible accounting for Americans who in the future may
become prisoners of war, missing in action, or otherwise
unaccounted for as a result of hostile action.
 (b) Days for Flag Display.--(1) For purposes of this
section, POW/MIA flag display days are the following:
 (A) Armed Forces Day, the third Saturday in May.
 (B) Memorial Day, the last Monday in May.
 (C) Flag Day, June 14.
 (D) Independence Day, July 4.
 (E) National POW/MIA Recognition Day.
 (F) Veterans Day, November 11.
 (2) In addition to the days specified in paragraph (1),
POW/MIA flag display days include--
 (A) in the case of display at medical centers of
 the Department of Veterans Affairs (required by
 subsection (c)(7)), any day on which the flag of the
 United States is displayed; and
 (B) in the case of display at United States Postal
 Service post offices (required by subsection (c)(8)),
 the last business day before a day specified in
 paragraph (1) that in any year is not itself a business
 day.
 (c) Locations for Flag Display.--The locations for the
display of the POW/MIA flag under subsection (a) are the
following:
 (1) The Capitol.
 (2) The White House.
 (3) The Korean War Veterans Memorial and the
 Vietnam Veterans Memorial.
 (4) Each national cemetery.
 (5) The buildings containing the official office
 of--
 (A) the Secretary of State;
 (B) the Secretary of Defense;
 (C) the Secretary of Veterans Affairs; and
 (D) the Director of the Selective Service
 System.
 (6) Each major military installation, as designated
 by the Secretary of Defense.b
 (7) Each medical center of the Department of
 Veterans Affairs.
 (8) Each United States Postal Service post office.
 (d) Coordination With Other Display Requirement.--Display
of the POW flag at the Capitol pursuant to paragraph (1) of
subsection (c) is in addition to the display of that flag in
the Rotunda of the Capitol pursuant to Senate Concurrent
Resolution 5 of the 101st Congress, agreed to on February 22,
1989 (103 Stat. 2533).
 (e) Display To Be in a Manner Visible to the Public.--
Display of the POW/MIA flag pursuant to this section shall be
in a manner designed to ensure visibility to the public.
 (f) Limitation.--This section may not be construed or
applied so as to require any employee to report to work solely
for the purpose of providing for the display of the POW/MIA
flag.
 (g) POW/MIA Flag Defined.--As used in this section, the
term ``POW/MIA flag'' means the National League of Families
POW/MIA flag recognized officially and designated by section 2
of Public Law 101-355 (36 U.S.C. 189).
 (h) Regulations for Implementation.--Not later than 180
days after the date of the enactment of this Act, the head of
each department, agency, or other establishment responsible for
a location specified in subsection (c) (other than the Capitol)
shall prescribe such regulations as necessary to carry out this
section.
 (i) Procurement and Distribution of Flags.--Not later than
30 days after the date of the enactment of this Act, the
Administrator of General Services shall procure POW/MIA flags
and distribute them as necessary to carry out this section.
 (j) Repeal of Superseded Law.--Section 1084 of Public Law
102-190 (36 U.S.C. 189 note) is repealed.

SEC. 1083. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN
 CONFLICT.

 (a) Commemorative Program.--The Secretary of Defense may
conduct a program to commemorate the 50th anniversary of the
Korean conflict. In conducting the commemorative program, the
Secretary may coordinate, support, and facilitate other
programs and activities of the Federal Government, State and
local governments, and other persons in commemoration of the
Korean conflict.
 (b) Commemorative Activities.--The commemorative program
may include activities and ceremonies--
 (1) to provide the people of the United States with
 a clear understanding and appreciation of the lessons
 and history of the Korean conflict;
 (2) to thank and honor veterans of the Korean
 conflict and their families;
 (3) to pay tribute to the sacrifices and
 contributions made on the home front by the people of
 the United States during the Korean conflict;
 (4) to highlight advances in technology, science,
 and medicine related to military research conducted
 during the Korean conflict;
 (5) to recognize the contributions and sacrifices
 made by the allies of the United States in the Korean
 conflict; and
 (6) to highlight the role of the Armed Forces of
 the United States, then and now, in maintaining world
 peace through strength.
 (c) Names and Symbols.--The Secretary of Defense shall have
the sole and exclusive right to use the names ``The Department
of Defense Korean Conflict Commemoration'', and such seal,
emblems, and badges incorporating such name as the Secretary
may lawfully adopt. Nothing in this section may be construed to
supersede rights that are established or vested before the date
of the enactment of this Act.
 (d) Commemorative Account.--(1) There is established in the
Treasury an account to be known as the ``Department of Defense
Korean Conflict Commemoration Account'', which shall be
administered by the Secretary of Defense. There shall be
deposited into the account all proceeds derived from the
Secretary's use of the exclusive rights described in subsection
(c). The Secretary may use funds in the account only for the
purpose of conducting the commemorative program.
 (2) Not later than 60 days after completion of all
activities and ceremonies conducted as part of the
commemorative program, the Secretary shall submit to Congress a
report containing an accounting of all of the funds deposited
into and expended from the account or otherwise expended under
this section, and of any funds remaining in the account.
Unobligated funds remaining in the account on that date shall
be held in the account until transferred by law.
 (e) Acceptance of Voluntary Services.--(1) Notwithstanding
section 1342 of title 31, United States Code, the Secretary of
Defense may accept from any person voluntary services to be
provided in furtherance of the commemorative program.
 (2) A person providing voluntary services under this
subsection shall be considered to be a Federal employee for
purposes of chapter 81 of title 5, United States Code, relating
to compensation for work-related injuries. The person shall
also be considered a special governmental employee for purposes
of standards of conduct and sections 202, 203, 205, 207, 208,
and 209 of title 18, United States Code. A person who is not
otherwise employed by the Federal Government shall not be
considered to be a Federal employee for any other purpose by
reason of the provision of voluntary services under this
subsection.
 (3) The Secretary may provide for reimbursement of
incidental expenses incurred by a person providing voluntary
services under this subsection. The Secretary shall determine
which expenses are eligible for reimbursement under this
paragraph.
 (f) Limitation on Expenditures.--Total expenditures to
carry out the commemorative program may not exceed $100,000.

SEC. 1084. COMMENDATION OF MEMBERS OF THE ARMED FORCES AND GOVERNMENT
 CIVILIAN PERSONNEL WHO SERVED DURING THE COLD WAR;
 CERTIFICATE OF RECOGNITION.

 (a) Findings.--The Congress finds the following:
 (1) During the period of the Cold War, from the end
 of World War II until the collapse of the Soviet Union
 in 1991, the United States and the Soviet Union engaged
 in a global military rivalry.
 (2) This rivalry, potentially the most dangerous
 military confrontation in the history of mankind, has
 come to a close without a direct superpower military
 conflict.
 (3) Military and civilian personnel of the
 Department of Defense, personnel in the intelligence
 community, members of the foreign service, and other
 officers and employees of the United States faithfully
 performed their duties during the Cold War.
 (4) Many such personnel performed their duties
 while isolated from family and friends and served
 overseas under frequently arduous conditions in order
 to protect the United States and achieve a lasting
 peace.
 (5) The discipline and dedication of those
 personnel were fundamental to the prevention of a
 superpower military conflict.
 (b) Congressional Commendation.--The Congress hereby
commends the members of the Armed Forces and civilian personnel
of the Government who contributed to the historic victory in
the Cold War and expresses its gratitude and appreciation for
their service and sacrifices of.
 (c) Certificates of Recognition.--The Secretary of Defense
shall prepare a certificate recognizing the Cold War service of
qualifying members of the Armed Forces and civilian personnel
of the Department of Defense and other Government agencies
contributing to national security, as determined by the
Secretary, and shall provide the certificate to such members
and civilian personnel upon request.

SEC. 1085. SENSE OF CONGRESS ON GRANTING OF STATUTORY FEDERAL CHARTERS.

 (a) Findings.--Congress finds that the practice of
providing by statute Federal charters to certain nonprofit
organizations--
 (1) may be perceived as implying a Government
 imprimatur of approval of those organizations; and
 (2) may mistakenly lead to public perception that
 the United States ensures the integrity and worthiness
 of those organizations.
 (b) Sense of Congress.--It is the sense of Congress--
 (1) that because of the perceived implicit
 Government imprimatur of approval conveyed by enactment
 of a Federal charter for an organization, such a
 charter should be granted only in the rarest and most
 extraordinary cases; and
 (2) that no statutory Federal charter should be
 enacted after the enactment of this Act unless the
 charter is approved by Congress upon favorable report
 by the committees of jurisdiction of the respective
 Houses.

SEC. 1086. SENSE OF CONGRESS REGARDING MILITARY VOTING RIGHTS.

 (a) Findings.--Congress finds that--
 (1) members of the Armed Forces have a fundamental
 right to vote in Federal, State, and local elections;
 and
 (2) an extended absense of a member of the Armed
 Forces from the place of the member's residency or
 domicile due to military or naval orders is not of
 itself grounds to consider the member's residency or
 domicile as lost or changed.
 (b) Sense of Congress.--It is the sense of Congress that
the Secretary of Defense, in consultation with the Attorney
General, should review how best to protect the right of members
of the Armed Forces to vote in Federal, State, and local
elections while taking into account the right of States to
prescribe requirements for voter registration. Such a review
should include an assessment of challenges to military voting
rights and consideration of possible legislative remedies to
ensure that, for purposes of voting in Federal, State, and
local elections, a member of the Armed Forces who is absent
from a State in compliance with military or naval orders is
not, solely by reason of that absence, considered to have lost
or changed residency or domicile.

SEC. 1087. DESIGNATION OF BOB HOPE AS AN HONORARY VETERAN OF THE ARMED
 FORCES OF THE UNITED STATES.

 (a) Findings.--Congress makes the following findings:
 (1) In its more than 200 years of existence as a
 nation, the United States has never conferred on any
 person the status of being an honorary veteran of the
 Armed Forces of the United States.
 (2) Status as an honorary veteran of the Armed
 Forces of the United States is and should remain an
 extraordinary honor not lightly conferred nor
 frequently granted.
 (3) The lifetime of accomplishments and service of
 Leslie Townes (Bob) Hope on behalf of members of the
 Armed Forces of the United States fully justifies the
 conferring of that status.
 (4) Bob Hope attempted to enlist in the Armed
 Forces to serve his country during World War II but was
 informed that the greatest service he could provide his
 country was as a civilian entertainer for the troops.
 (5) During World War II, the Korean Conflict, the
 Vietnam War, the Persian Gulf War, and the Cold War,
 Bob Hope travelled to visit and entertain millions of
 members of the Armed Forces in numerous countries, on
 ships at sea, and in combat zones ashore.
 (6) Bob Hope has been awarded the Congressional
 Gold Medal, the Presidential Medal of Freedom, the
 Distinguished Service Medal of each of the branches of
 the Armed Forces and more than 100 other citations and
 awards from national veterans service organizations and
 civic and humanitarian organizations.
 (7) Bob Hope has given unselfishly of himself for
 over half a century to be with American service members
 on foreign shores, working tirelessly to bring a spirit
 of humor and cheer to millions of service members
 during their loneliest moments, and has, thereby,
 extended to them for the American people a touch of
 home away from home.
 (b) Designation of Bob Hope as Honorary Veteran.--
Congress--
 (1) extends its gratitude, on behalf of the
 American people, to Leslie Townes (Bob) Hope, of the
 State of California, for his lifetime of
 accomplishments and service on behalf of members of the
 Armed Forces of the United States; and
 (2) hereby confers upon him the status of being an
 honorary veteran of the Armed Forces of the United
 States.

SEC. 1088. FIVE-YEAR EXTENSION OF AVIATION INSURANCE PROGRAM.

 (a) Extension.--Section 44310 of title 49, United States
Code, is amended by striking out ``September 30, 1997'' and
inserting in lieu thereof ``September 30, 2002''.
 (b) Effective Date.--This section shall take effect as of
September 30, 1997.

 TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Use of prohibited constraints to manage Department of Defense
 personnel.
Sec. 1102. Veterans' preference status for certain veterans who served
 on active duty during the Persian Gulf War.
Sec. 1103. Repeal of deadline for placement consideration of
 involuntarily separated military reserve technicians.
Sec. 1104. Rate of pay of Department of Defense overseas teachers upon
 transfer to General Schedule position.
Sec. 1105. Garnishment and involuntary allotment.
Sec. 1106. Extension and revision of voluntary separation incentive pay
 authority.
Sec. 1107. Use of approved fire-safe accommodations by Government
 employees on official business.
Sec. 1108. Navy higher education pilot program regarding administration
 of business relationships between Government and private
 sector.
Sec. 1109. Authority for Marine Corps University to employ civilian
 faculty members.

SEC. 1101. USE OF PROHIBITED CONSTRAINTS TO MANAGE DEPARTMENT OF
 DEFENSE PERSONNEL.

 Section 129 of title 10, United States Code, is amended by
adding at the end the following new subsection:
 ``(f)(1) Not later than February 1 of each year, the
Secretary of each military department and the head of each
Defense Agency shall submit to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives a report on the management of the
civilian workforce under the jurisdiction of that official.
 ``(2) Each report of an official under paragraph (1) shall
contain the following:
 ``(A) The official's certification (i) that the
 civilian workforce under the jurisdiction of the
 official is not subject to any constraint or limitation
 in terms of man years, end strength, full-time
 equivalent positions, or maximum number of employees,
 and (ii) that, during the 12 months preceding the date
 on which the report is due, such workforce has not been
 subject to any such constraint or limitation.
 ``(B) A description of how the civilian workforce
 is managed.
 ``(C) A detailed description of the analytical
 tools used to determine civilian workforce requirements
 during the 12-month period referred to in subparagraph
 (A).''.

SEC. 1102. VETERANS' PREFERENCE STATUS FOR CERTAIN VETERANS WHO SERVED
 ON ACTIVE DUTY DURING THE PERSIAN GULF WAR.

 (a) Definition of Veteran for Purposes of Preference
Eligible Status.--Section 2108 of title 5, United States Code,
is amended--
 (1) in paragraph (1)--
 (A) by striking ``or'' at the end of
 subparagraph (A);
 (B) by inserting ``or'' at the end of
 subparagraph (B); and
 (C) by inserting after subparagraph (B) the
 following new subparagraph:
 ``(C) served on active duty as defined by
 section 101(21) of title 38 in the armed forces
 during the period beginning on August 2, 1990,
 and ending on January 2, 1992;''; and
 (2) in paragraph (3)(B), by inserting ``or (C)''
 after ``paragraph (1)(B)''.
 (b) Additional Points.--Section 3309(2) of such title is
amended by striking ``2108(3)(A)'' and inserting ``2108(3)(A)-
(B)''.
 (c) Technical Amendments.--Section 2108(1)(B) of such title
is further amended--
 (1) by striking ``the date of enactment of the
 Veterans' Education and Employment Assistance Act of
 1976,'' and inserting ``October 15, 1976,''; and
 (2) by striking ``511(d) of title 10'' and
 inserting ``12103(d) of title 10''.

SEC. 1103. REPEAL OF DEADLINE FOR PLACEMENT CONSIDERATION OF
 INVOLUNTARILY SEPARATED MILITARY RESERVE
 TECHNICIANS.

 (a) Repeal of Deadline.--Section 3329(b) of title 5, United
States Code, is amended by striking out ``not later than 6
months after the date of the application''.
 (b) Technical Correction.--Such section is further amended
by striking out ``a position described in subsection (c)'' the
second place it appears.

SEC. 1104. RATE OF PAY OF DEPARTMENT OF DEFENSE OVERSEAS TEACHERS UPON
 TRANSFER TO GENERAL SCHEDULE POSITION.

 (a) Prevention of Excessive Increases.--Section 5334(d) of
title 5, United States Code, is amended by striking out ``20
percent'' and all that follows and inserting in lieu thereof
``an amount determined under regulations which the Secretary of
Defense shall prescribe for the determination of the yearly
rate of pay of the position. The amount by which a rate of pay
is increased under the regulations may not exceed the amount
equal to 20 percent of that rate of pay.''.
 (b) Effective Date and Savings Provision.--(1) The
amendment made by subsection (a) shall take effect 180 days
after the date of the enactment of this Act.
 (2) In the case of a person who is employed in a teaching
position referred to in section 5334(d) of title 5, United
States Code, on the day before the effective date under
paragraph (1), the rate of pay of that person determined under
that section (as in effect on that day) may not be reduced by
reason of the amendment made by subsection (a) for so long as
the person continues to serve in that position or another such
position without a break in service of more than three days on
or after that day.

SEC. 1105. GARNISHMENT AND INVOLUNTARY ALLOTMENT.

 Section 5520a of title 5, United States Code, is amended--
 (1) in subsection (j), by striking out paragraph
 (2) and inserting in lieu thereof the following new
 paragraph:
 ``(2) Such regulations shall provide that an agency's
administrative costs in executing a garnishment action may be
added to the garnishment, and that the agency may retain costs
recovered as offsetting collections.'';
 (2) in subsection (k)--
 (A) by striking out paragraph (3); and
 (B) by redesignating paragraph (4) as
 paragraph (3); and
 (3) by striking out subsection (l).

SEC. 1106. EXTENSION AND REVISION OF VOLUNTARY SEPARATION INCENTIVE PAY
 AUTHORITY.

 (a) Remittance to CSRS Fund.--Section 5597 of title 5,
United States Code, is amended by adding at the end the
following new subsection:
 ``(h)(1)(A) In addition to any other payment that it is
required to make under subchapter III of chapter 83 or chapter
84, the Department of Defense shall remit to the Office of
Personnel Management an amount equal to 15 percent of the final
basic pay of each covered employee.
 ``(B) If the employee is one with respect to whom a
remittance would otherwise be required under section 4(a) of
the Federal Workforce Restructuring Act of 1994 based on the
separation involved, the remittance under this subsection shall
be instead of the remittance otherwise required under such
section 4(a).
 ``(2) Amounts remitted under paragraph (1) shall be
deposited in the Treasury of the United States to the credit of
the Civil Service Retirement and Disability Fund.
 ``(3) For the purposes of this subsection--
 ``(A) the term `covered employee' means an employee
 who is subject to subchapter III of chapter 83 or
 chapter 84 and to whom a voluntary separation incentive
 has been paid under this section on the basis of a
 separation occurring on or after October 1, 1997; and
 ``(B) the term `final basic pay' has the meaning
 given such term in section 4(a)(2) of the Federal
 Workforce Restructuring Act of 1994.''.
 (b) Extension of Authority.--(1) Subsection (e) of section
5597 of title 5, United States Code, is amended by striking out
``September 30, 1999'' and inserting in lieu thereof
``September 30, 2001''.
 (2) Section 4436(d)(2) of the Defense Conversion,
Reinvestment, and Transition Assistance Act of 1992 (5 U.S.C.
8348 note) is amended by striking out ``January 1, 2000'' and
inserting in lieu thereof ``January 1, 2002''.

SEC. 1107. USE OF APPROVED FIRE-SAFE ACCOMMODATIONS BY GOVERNMENT
 EMPLOYEES ON OFFICIAL BUSINESS.

 (a) Percentage Use Requirement.--Section 5707a of title 5,
United States Code, is amended--
 (1) by redesignating subsections (a) through (d) as
 subsections (b) through (e), respectively; and
 (2) by inserting after the section heading the
 following new subsection:
 ``(a)(1) For the purpose of making payments under this
chapter for lodging expenses incurred in a State, each agency
shall ensure that not less than 90 percent of the commercial-
lodging room nights for employees of that agency for a fiscal
year are booked in approved places of public accommodation.
 ``(2) Each agency shall establish explicit procedures to
satisfy the percentage requirement of paragraph (1).
 ``(3) An agency shall be considered to be in compliance
with the percentage requirement of paragraph (1) until
September 30, 2002, and after that date if travel arrangements
of the agency, whether made for civilian employees, members of
the uniformed services, or foreign service personnel, are made
through travel management processes designed to book commercial
lodging in approved places of public accommodation, whenever
available.''.
 (b) Definitions.--Such section is further amended by adding
at the end the following new subsection:
 ``(f) For purposes of this section:
 ``(1) The term `agency' does not include the
 government of the District of Columbia.
 ``(2) The term `approved places of public
 accommodation' means hotels, motels, and other places
 of public accommodation that are listed by the Director
 of the Federal Emergency Management Agency as meeting
 the requirements of the fire prevention and control
 guidelines described in section 29 of the Federal Fire
 Prevention and Control Act of 1974 (15 U.S.C. 2225).
 ``(3) The term `State' means any State, the
 District of Columbia, the Commonwealth of Puerto Rico,
 the Commonwealth of the Northern Mariana Islands, the
 Trust Territory of the Pacific Islands, the Virgin
 Islands, Guam, American Samoa, or any other territory
 or possession of the United States.''.
 (c) Conforming Amendments.--Such section is further
amended--
 (1) in subsection (b), as redesignated by
 subsection (a)(1)--
 (A) by striking out ``places of public
 accommodation that meet the requirements of the
 fire prevention and control guidelines
 described in section 29 of the Federal Fire
 Prevention and Control Act of 1974'' and
 inserting in lieu thereof ``approved places of
 public accommodation''; and
 (B) by striking out ``as defined in section
 4 of the Federal Fire Prevention and Control
 Act of 1974'';
 (2) in subsection (c), as redesignated by
 subsection (a)(1), by striking out ``does not meet the
 requirements of the fire prevention and control
 guidelines described in section 29 of the Federal Fire
 Prevention and Control Act of 1974'' and inserting in
 lieu thereof ``is not an approved place of public
 accommodation''; and
 (3) in subsection (e), as redesignated by
 subsection (a)(1)--
 (A) by striking out ``encourage'' and
 inserting in lieu thereof ``facilitate the
 ability of ''; and
 (B) by striking out ``places of public
 accommodation that meet the requirements of the
 fire prevention and control guidelines
 described in section 29 of the Federal Fire
 Prevention and Control Act of 1974'' and
 inserting in lieu thereof ``approved places of
 public accommodation''.
 (d) Report by Federal Emergency Management Agency.--Not
later than six months after the date of the enactment of this
Act, the Director of the Federal Emergency Management Agency
shall submit to Congress a report describing the procedures to
be used to ensure that all approved places of public
accommodation (within the meaning of section 5707a(f)(2) of
title 5, United States Code, as added by subsection (b)) appear
on the national master list maintained by the Director under
section 28(b) of the Federal Fire Prevention and Control Act of
1974 (15 U.S.C. 2224(b)) of all of the places of public
accommodation affecting commerce located in each State that
meet the requirements of the fire prevention and control
guidelines described in section 29 of such Act (15 U.S.C.
2225).
 (e) Report on Implementation.--Not later than one year
after the date of the enactment of this Act, the Administrator
of General Services shall submit to Congress a report
describing the measures that have been taken and will be taken
by Federal agencies to comply with the requirement that not
less than 90 percent of the commercial-lodging room nights for
employees of each Federal agency for a fiscal year are booked
in approved places of public accommodation, as specified in
section 5707a(a) of title 5, United States Code, as added by
subsection (a). Measures to satisfy such requirement may
include the use of contract travel agents, automated booking
systems, and data developed from travel payment systems. The
Administrator shall prepare the report in consultation with the
heads of the Federal agencies subject to such requirement.

SEC. 1108. NAVY HIGHER EDUCATION PILOT PROGRAM REGARDING ADMINISTRATION
 OF BUSINESS RELATIONSHIPS BETWEEN GOVERNMENT AND
 PRIVATE SECTOR.

 (a) Pilot Project Authorized.--During fiscal years 1998
through 2002, the Secretary of the Navy may establish and
conduct a pilot program of graduate-level higher education
regarding the administration of business relationships between
the Government and the private sector.
 (b) Purpose.--The purpose of the pilot program is to make
available to employees of the Naval Undersea Warfare Center,
employees of the Naval Sea Systems Command, and employees of
the Acquisition Center for Excellence of the Navy (upon
establishment of such Acquisition Center), a curriculum of
graduate-level higher education leading to the award of a
graduate degree designed to prepare participants effectively to
meet the challenges of administering Government contracting and
other business relationships between the United States and
private sector businesses in the context of constantly changing
or newly emerging industries, technologies, governmental
organizations, policies, and procedures (including governmental
organizations, policies, and procedures recommended in the
National Performance Review).
 (c) Partnership With Institution of Higher Education.--(1)
The Secretary of the Navy may enter into an agreement with an
institution of higher education to assist the Naval Undersea
Warfare Center with the development of the curriculum for the
pilot program, to offer courses and provide instruction and
materials to participants to the extent provided for in the
agreement, to provide such other assistance in support of the
program as may be provided for in the agreement, and to award a
graduate degree under the program.
 (2) To be eligible to enter into an agreement under
paragraph (1), an institution of higher education must have an
established program of graduate-level education that is
relevant to the purpose of the pilot program.
 (d) Curriculum.--The curriculum offered under the pilot
program shall--
 (1) be designed specifically to achieve the purpose
 of the pilot program; and
 (2) include courses that are--
 (A) typically offered under curricula
 leading to award of the degree of Masters of
 Business Administration by institutions of
 higher education; and
 (B) necessary for meeting educational
 qualification requirements for certification as
 an acquisition program manager.
 (e) Distance Learning Option.--The Secretary of the Navy
may include as part of the pilot program policies and
procedures for offering distance learning instruction by means
of telecommunications, correspondence, or other methods for
off-site receipt of instruction.
 (f) Report.--Not later than 90 days after the termination
of the pilot program, the Secretary of the Navy shall submit to
Congress a report containing--
 (1) an assessment by the Secretary of the value of
 the program for meeting the purpose of the program and
 the desirability of permanently establishing a similar
 program for other employees of the Department of
 Defense; and
 (2) such other information and recommendations
 regarding the program as the Secretary considers
 appropriate.
 (g) Limitation on Funding Source.--Any funds required for
the pilot program for a fiscal year shall be derived only from
the appropriation ``Operation and Maintenance, Navy'' for that
fiscal year.

SEC. 1109. AUTHORITY FOR MARINE CORPS UNIVERSITY TO EMPLOY CIVILIAN
 FACULTY MEMBERS.

 (a) Expanded Authority.--Subsections (a) and (c) of section
7478 of title 10, United States Code, are amended by striking
out ``at the Marine Corps Command and Staff College'' and
inserting in lieu thereof ``of the Marine Corps University''.
 (b) Clerical Amendments.--(1) The heading of such section
is amended to read as follows:

``Sec. 7478. Naval War College and Marine Corps University: civilian
 faculty members''.

 (2) The item relating to such section in the table of
sections at the beginning of chapter 643 of such title is
amended to read as follows:

``7478. Naval War College and Marine Corps University: civilian faculty
 members.''.

 TITLE XII--MATTERS RELATING TO OTHER NATIONS

 Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Sec. 1201. Findings.
Sec. 1202. Sense of Congress.
Sec. 1203. Withdrawal of United States ground forces from Republic of
 Bosnia and Herzegovina.
Sec. 1204. Secretary of Defense reports on tasks carried out by United
 States forces.
Sec. 1205. Presidential report on situation in Republic of Bosnia and
 Herzegovina.
Sec. 1206. Definitions.

 Subtitle B--Export Controls on High Performance Computers

Sec. 1211. Export approvals for high performance computers.
Sec. 1212. Report on exports of high performance computers.
Sec. 1213. Post-shipment verification of export of high performance
 computers.
Sec. 1214. GAO study on certain computers; end user information
 assistance.
Sec. 1215. Congressional committees.

 Subtitle C--Other Matters

Sec. 1221. Defense burdensharing.
Sec. 1222. Temporary use of general purpose vehicles and nonlethal
 military equipment under acquisition and cross servicing
 agreements.
Sec. 1223. Sense of Congress and reports regarding financial costs of
 enlargement of the North Atlantic Treaty Organization.
Sec. 1224. Sense of Congress regarding enlargement of the North Atlantic
 Treaty Organization.
Sec. 1225. Sense of the Congress relating to level of United States
 military personnel in the East Asia and Pacific region.
Sec. 1226. Report on future military capabilities and strategy of the
 People's Republic of China.
Sec. 1227. Sense of Congress on need for Russian openness on the
 Yamantau Mountain project.
Sec. 1228. Assessment of the Cuban threat to United States national
 security.
Sec. 1229. Report on Helsinki Joint statement.
Sec. 1230. Commendation of Mexico on free and fair elections.
Sec. 1231. Sense of Congress regarding Cambodia.
Sec. 1232. Congratulating Governor Christopher Patten of Hong Kong.

 Subtitle A--United States Armed Forces in Bosnia and Herzegovina

SEC. 1201. FINDINGS.

 The Congress finds the following:
 (1) United States Armed Forces were deployed to the
 Republic of Bosnia and Herzegovina as part of the North
 Atlantic Treaty Organization (NATO) Implementation
 Force (IFOR) to implement the military aspects of the
 Dayton Peace Agreement.
 (2) The military aspects of the Dayton Peace
 Agreement have been successfully implemented to date
 with the military forces of the warring factions
 successfully separated and a cessation in the
 hostilities that resulted in the deaths of hundreds of
 thousands of Bosnians.
 (3) Implementation of the civil aspects of the
 Dayton Peace Agreement has lagged far behind the
 schedule for such implementation envisioned in the
 Agreement with the result that United States Armed
 Forces have undertaken a prolonged engagement in the
 Republic of Bosnia and Herzegovina.
 (4) On December 13, 1995, the President stated in a
 letter to Congress, ``NATO and U.S. military commanders
 believe, and I expect, that the military mission can be
 accomplished in about a year. Twelve months will allow
 IFOR time to complete the military tasks assigned in
 the Dayton agreement and to establish a secure
 environment, in which political and economic
 reconstruction efforts by the parties and international
 civilian agencies can take hold. Within one year, we
 expect that the military provisions of the Dayton
 agreement will have been carried out, implementation of
 the civilian aspects and economic reconstruction will
 have been firmly launched, free elections will have
 been held under international supervision and a stable
 military balance will have been established.''
 (5) Notwithstanding a number of assurances relating
 to the accomplishment of the military mission in the
 Republic of Bosnia and Herzegovina by December 1996,
 the President, on November 15, 1996, announced his
 decision to extend the presence of United States forces
 in the Republic of Bosnia and Herzegovina to
 participate in the NATO Stabilization Force (SFOR)
 until June 1998.
 (6) Despite initial projections by the Department
 of Defense that the costs of United States operations
 in the Republic of Bosnia and Herzegovina would total
 $1,500,000,000, the projected cost of United States
 operations in the Republic of Bosnia and Herzegovina
 through June 1998 is estimated to exceed
 $7,000,000,000.
 (7) The fiscal year 1998 estimate of the Department
 of Defense for operations in the Republic of Bosnia and
 Herzegovina assumes that the level of military forces
 participating in SFOR will be reduced soon after the
 start of the fiscal year.
 (8) The President and the Secretary of Defense have
 stated that United States forces are to be withdrawn
 from the Republic of Bosnia and Herzegovina by the end
 of June 1998.

SEC. 1202. SENSE OF CONGRESS.

 It is the sense of Congress that--
 (1) United States ground combat forces should not
 participate in a follow-on force in the Republic of
 Bosnia and Herzegovina after June 1998;
 (2) the European Security and Defense Identity,
 which, as facilitated by the Combined Joint Task Forces
 concept, enables the Western European Union, with the
 consent of the North Atlantic Alliance, to assume
 political control and strategic direction of NATO
 assets made available for the Alliance, may be an ideal
 instrument for a follow-on force for the Republic of
 Bosnia and Herzegovina;
 (3) a NATO-led force without the participation of
 United States ground combat forces in the Republic of
 Bosnia and Herzegovina may be suitable for a follow-on
 force for the Republic of Bosnia and Herzegovina if the
 European Security and Defense Identity is not
 sufficiently developed or is otherwise considered
 inappropriate for such a mission;
 (4) the United States may decide to provide
 appropriate support to a Western European Union-led or
 NATO-led follow-on force, including command and
 control, intelligence, logistics, and, if necessary, a
 ready reserve force in the region;
 (5) the President should inform our European NATO
 allies of this expression of the sense of Congress and
 should urge them strongly to undertake preparations for
 a Western European Union-led or NATO-led force as a
 follow-on force to the NATO-led SFOR if needed to
 maintain peace and stability in the Republic of Bosnia
 and Herzegovina; and
 (6) the President should consult with the Congress
 with respect to any support to be provided to a Western
 European Union-led or NATO-led follow-on force in the
 Republic of Bosnia and Herzegovina after June 30, 1998.

SEC. 1203. WITHDRAWAL OF UNITED STATES GROUND FORCES FROM REPUBLIC OF
 BOSNIA AND HERZEGOVINA .

 (a) Limitation.--No funds appropriated or otherwise made
available for the Department of Defense for fiscal year 1998 or
any subsequent fiscal year may be used for the deployment of
any United States ground combat forces in the Republic of
Bosnia and Herzegovina after June 30, 1998, unless the
President, not later than May 15, 1998, and after consultation
with the bipartisan leadership of the two Houses of Congress,
transmits to Congress a certification--
 (1) that the continued presence of United States
 ground combat forces, after June 30, 1998, in the
 Republic of Bosnia and Herzegovina is required in order
 to meet the national security interests of the United
 States; and
 (2) that after June 30, 1998, it will remain United
 States policy that United States ground forces will not
 serve as, or be used as, civil police in the Republic
 of Bosnia and Herzegovina.
 (b) Report.--The President shall submit with the
certification under subsection (a) a report that includes the
following:
 (1) The reasons why that presence is in the
 national security interest of the United States.
 (2) The number of United States military personnel
 to be deployed in and around the Republic of Bosnia and
 Herzegovina and other areas of the former Yugoslavia
 after that date.
 (3) The expected duration of any such deployment.
 (4) The mission and objectives of the United States
 Armed Forces to be deployed in and around the Republic
 of Bosnia and Herzegovina and other areas of the former
 Yugoslavia after June 30, 1998.
 (5) The exit strategy of such forces.
 (6) The incremental costs associated with any such
 deployment.
 (7) The effect of such deployment on the morale,
 retention, and effectiveness of United States armed
 forces.
 (8) A description of the forces from other nations
 involved in a follow-on mission, shown on a nation-by-
 nation basis.
 (9) A description of the command and control
 arrangement established for United States forces
 involved in a follow-on mission.
 (10) An assessment of the expected threats to
 United States forces involved in a follow-on mission.
 (11) The plan for rotating units and personnel to
 and from the Republic of Bosnia and Herzegovina during
 a follow-on mission, including the level of
 participation by reserve component units and personnel.
 (12) The mission statement and operational goals of
 the United States forces involved in a follow-on
 mission.
 (c) Request for Supplemental Appropriations.--The President
shall transmit to Congress with a certification under
subsection (a) a supplemental appropriations request for the
Department of Defense for such amounts as are necessary for the
costs of any continued deployment beyond June 30, 1998.
 (d) Construction With President's Constitutional
Authority.--Nothing in this section shall be deemed to restrict
the authority of the President under the Constitution to
protect the lives of United States citizens.
 (e) Construction With Appropriations Provision.--The
provisions of this section are enacted, and shall be applied,
as supplemental to (and not in lieu of) the provisions of
section 8132 of the Department of Defense Appropriations Act,
1998 (Public Law 105-56).

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON TASKS CARRIED OUT BY UNITED
 STATES FORCES.

 (a) Requirement for Two Reports.--The Secretary of Defense
shall submit to the congressional defense committees--
 (1) not later than December 15, 1997, a report
 identifying each activity being carried out, as of
 December 1, 1997, by covered United States forces in
 the Republic of Bosnia and Herzegovina; and
 (2) not later than April 15, 1998, a report
 identifying each activity being carried out, as of
 April 1, 1998, by covered United States forces in the
 Republic of Bosnia and Herzegovina.
 (b) Covered United States Forces.--For purposes of this
section, covered United States forces in the Republic of Bosnia
and Herzegovina are United States ground forces in the Republic
of Bosnia and Herzegovina that are assigned to the
multinational peacekeeping force known as the Stabilization
Force (SFOR) or any other multinational peacekeeping force that
is the successor to the SFOR.
 (c) Matters To Be Included.--The Secretary shall include in
each report under subsection (a), for each activity identified
under that subsection, the following:
 (1) The number of United States military personnel
 involved in the performance of that activity.
 (2) Whether forces assigned to the SFOR (or
 successor multinational peacekeeping force) from other
 nations also participated in that activity.
 (3) The justification for using military forces
 rather than civilian organizations to perform that
 activity.
 (4) In the case of activities that (as determined
 by the Secretary) are considered to be supporting
 tasks, as that term is used in paragraph 3 of Article
 VI of Annex 1-A to the General Framework Agreement for
 Peace in Bosnia and Herzegovina, the justification for
 using military forces.
 (5) The likelihood that each such activity will
 have to be carried out by United States military forces
 after June 30, 1998.

SEC. 1205. PRESIDENTIAL REPORT ON SITUATION IN REPUBLIC OF BOSNIA AND
 HERZEGOVINA.

 (a) Requirement.--Not later than February 1, 1998, the
President shall submit to Congress a report on the political
and military conditions in the Republic of Bosnia and
Herzegovina. The report shall be submitted in both classified
and unclassified form.
 (b) Matters To Be Included.--The report under subsection
(a) shall include a discussion of the following:
 (1) An assessment of the progress made in
 implementing the civil, economic, and political aspects
 of the Dayton Peace Agreement.
 (2) An identification of the specific steps taken
 to transfer the United States portion of the
 peacekeeping mission in the Republic of Bosnia and
 Herzegovina to forces of the member-states of the
 Western European Union or to a NATO-led force without
 the participation of United States ground combat forces
 in the Republic of Bosnia and Herzegovina.
 (3) A detailed discussion of the proposed role and
 involvement of the United States in supporting
 peacekeeping activities in the Republic of Bosnia and
 Herzegovina following the withdrawal of United States
 ground combat forces from the Republic of Bosnia and
 Herzegovina.
 (4) A detailed explanation and timetable for
 carrying out the commitment to withdraw all United
 States ground forces from the Republic of Bosnia and
 Herzegovina by June 30, 1998, including the planned
 date of commencement and completion of the withdrawal.
 (5) The military and political considerations that
 will affect the decision to carry out such a
 transition.
 (6) Any plan to maintain or expand other Bosnia-
 related operations (such as the operations designated
 as Operation Deliberate Guard) if tensions in the
 Republic of Bosnia and Herzegovina remain sufficient to
 delay reductions of United States military forces
 participating in the Stabilization Force and the
 estimated cost associated with each such operation.

SEC. 1206. DEFINITIONS.

 As used in this subtitle:
 (1) Dayton peace agreement.--The term ``Dayton
 Peace Agreement'' means the General Framework Agreement
 for Peace in Bosnia and Herzegovina, initialed by the
 parties in Dayton, Ohio, on November 21, 1995, and
 signed in Paris on December 14, 1995.
 (2) Implementation force.--The term
 ``Implementation Force'' means the NATO-led
 multinational military force in the Republic of Bosnia
 and Herzegovina (commonly referred to as ``IFOR''),
 authorized under the Dayton Peace Agreement.
 (3) Stabilization force.--The term ``Stabilization
 Force'' means the NATO-led follow-on force to the
 Implementation Force in the Republic of Bosnia and
 Herzegovina and other countries in the region (commonly
 referred to as ``SFOR''), authorized under United
 Nations Security Council Resolution 1088 (December 12,
 1996).
 (4) Follow-on mission.--The term ``follow-on
 mission'' means a mission involving the deployment of
 ground elements of the United States Armed Forces in
 the Republic of Bosnia and Herzegovina after June 30,
 1998 (other than as described in section 1203(b)).
 (5) NATO.--The term ``NATO'' means the North
 Atlantic Treaty Organization.

 Subtitle B--Export Controls on High Performance Computers

SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.

 (a) Prior Approval of Exports and Reexports.--The President
shall require that no digital computer with a composite
theoretical performance level of more than 2,000 millions of
theoretical operations per second (MTOPS) or with such other
composite theoretical performance level as may be established
subsequently by the President under subsection (d), may be
exported or reexported without a license to a country specified
in subsection (b) if the Secretary of Commerce, the Secretary
of Defense, the Secretary of Energy, the Secretary of State, or
the Director of the Arms Control and Disarmament Agency
objects, in writing, to such export or reexport. Any person
proposing to export or reexport such a digital computer shall
so notify the Secretary of Commerce, who, within 24 hours after
receiving the notification, shall transmit the notification to
the Secretary of Defense, the Secretary of Energy, the
Secretary of State, and the Director of the Arms Control and
Disarmament Agency.
 (b) Covered Countries.--For purposes of subsection (a), the
countries specified in this subsection are the countries listed
as ``Computer Tier 3'' eligible countries in section 740.7(d)
of title 15 of the Code of Federal Regulations, as in effect on
June 10, 1997, subject to modification by the President under
subsection (e).
 (c) Time Limit.--Written objections under subsection (a) to
an export or reexport shall be raised within 10 days after the
notification is received under subsection (a). If such a
written objection to the export or reexport of a computer is
raised, the computer may be exported or reexported only
pursuant to a license issued by the Secretary of Commerce under
the Export Administration Regulations of the Department of
Commerce, without regard to the licensing exceptions otherwise
authorized under section 740.7 of title 15 of the Code of
Federal Regulations, as in effect on June 10, 1997. If no
objection is raised within the 10-day period, the export or
reexport is authorized.
 (d) Adjustment of Composite Theoretical Performance.--The
President, in consultation with the Secretary of Commerce, the
Secretary of Defense, the Secretary of Energy, the Secretary of
State, and the Director of the Arms Control and Disarmament
Agency, may establish a new composite theoretical performance
level for purposes of subsection (a). Such new level shall not
take effect until 180 days after the President submits to the
congressional committees designated in section 1215 a report
setting forth the new composite theoretical performance level
and the justification for such new level. Each report shall, at
a minimum--
 (1) address the extent to which high performance
 computers of a composite theoretical level between the
 level established in subsection (a) or such level as
 has been previously adjusted pursuant to this section
 and the new level, are available from other countries;
 (2) address all potential uses of military
 significance to which high performance computers at the
 new level could be applied; and
 (3) assess the impact of such uses on the national
 security interests of the United States.
 (e) Adjustment of Covered Countries.--
 (1) In general.--The President, in consultation
 with the Secretary of Commerce, the Secretary of
 Defense, the Secretary of Energy, the Secretary of
 State, and the Director of the Arms Control and
 Disarmament Agency, may add a country to or remove a
 country from the list of covered countries in
 subsection (b), except that a country may be removed
 from the list only in accordance with paragraph (2).
 (2) Deletions from list of covered countries.--The
 removal of a country from the list of covered countries
 under subsection (b) shall not take effect until 120
 days after the President submits to the congressional
 committees designated in section 1215 a report setting
 forth the justification for the deletion.
 (3) Excluded countries.--A country may not be
 removed from the list of covered countries under
 subsection (b) if--
 (A) the country is a ``nuclear-weapon
 state'' (as defined by Article IX of the Treaty
 on the Non-Proliferation of Nuclear Weapons)
 and the country is not a member of the North
 Atlantic Treaty Organization; or
 (B) the country is not a signatory of the
 Treaty on the Non-Proliferation of Nuclear
 Weapons and the country is listed on Annex 2 to
 the Comprehensive Nuclear Test-Ban Treaty.
 (f) Classification.--Each report under subsections (d) and
(e) shall be submitted in an unclassified form and may, if
necessary, have a classified supplement.

SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.

 (a) Report.--Not later than 60 days after the date of the
enactment of this Act, the President shall provide to the
congressional committees specified in section 1215 a report
identifying all exports of digital computers with a composite
theoretical performance of more than 2,000 millions of
theoretical operations per second (MTOPS) to all countries
since January 25, 1996. For each export, the report shall
identify--
 (1) whether an export license was applied for and
 whether one was granted;
 (2) the date of the transfer of the computer;
 (3) the United States manufacturer and exporter of
 the computer;
 (4) the MTOPS level of the computer; and
 (5) the recipient country and end user.
 (b) Additional Information on Exports to Certain
Countries.--In the case of exports to countries specified in
subsection (c), the report under subsection (a) shall identify
the intended end use for the exported computer and the
assessmentby the executive branch of whether the end user is a
military end user or an end user involved in activities relating to
nuclear, chemical, or biological weapons or missile technology.
Information provided under this subsection may be submitted in
classified form if necessary.
 (c) Covered Countries.--For purposes of subsection (b), the
countries specified in this subsection are--
 (1) the countries listed as ``Computer Tier 3''
 eligible countries in section 740.7(d) of title 15 of
 the Code of Federal Regulations, as in effect on June
 10, 1997; and
 (2) the countries listed in section 740.7(e) of
 title 15 of the Code of Federal Regulations, as in
 effect on June 10, 1997.

SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE
 COMPUTERS.

 (a) Required Post-Shipment Verification.--The Secretary of
Commerce shall conduct post-shipment verification of each
digital computer with a composite theoretical performance of
more than 2,000 millions of theoretical operations per second
(MTOPS) that is exported from the United States, on or after
the date of the enactment of this Act, to a country specified
in subsection (b).
 (b) Covered Countries.--For purposes of subsection (a), the
countries specified in this subsection are the countries listed
as ``Computer Tier 3'' eligible countries in section 740.7 of
title 15 of the Code of Federal Regulations, as in effect on
June 10, 1997, subject to modification by the President under
section 1211(e).
 (c) Annual Report.--The Secretary of Commerce shall submit
to the congressional committees specified in section 1215 an
annual report on the results of post-shipment verifications
conducted under this section during the preceding year. Each
such report shall include a list of all such items exported
from the United States to such countries during the previous
year and, with respect to each such export, the following:
 (1) The destination country.
 (2) The date of export.
 (3) The intended end use and intended end user.
 (4) The results of the post-shipment verification.
 (d) Explanation When Verification Not Conducted.--If a
post-shipment verification has not been conducted in accordance
with subsection (a) with respect to any such export during the
period covered by a report, the Secretary shall include in the
report for that period a detailed explanation of the reasons
why such a post-shipment verification was not conducted.

SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION
 ASSISTANCE.

 (a) In General.--The Comptroller General of the United
States shall submit to the congressional committees specified
in section 1215 a study of the national security risks relating
to the sale of computers with a composite theoretical
performance of between 2,000 and 7,000 millions of theoretical
operations per second (MTOPS) to end users in countries
specified in subsection (c). The study shall also analyze any
foreign availability of computers described in the preceding
sentence and the impact of such sales on United States
exporters.
 (b) End User Information Assistance to Exporters.--The
Secretary of Commerce shall establish a procedure by which
exporters may seek information on questionable end users in
countries specified in subsection (c) who are seeking to obtain
computers described in subsection (a).
 (c) Covered Countries.--For purposes of subsections (a) and
(b), the countries specified in this subsection are the
countries listed as ``Computer Tier 3'' eligible countries in
section 740.7(d) of title 15 of the Code of Federal
Regulations, as in effect on June 10, 1997.

SEC. 1215. CONGRESSIONAL COMMITTEES.

 For purposes of sections 1211(d), 1212(a), 1213(c), and
1214(a) the congressional committees specified in those
sections are the following:
 (1) The Committee on Banking, Housing, and Urban
 Affairs and the Committee on Armed Services of the
 Senate.
 (2) The Committee on International Relations and
 the Committee on National Security of the House of
 Representatives.

 Subtitle C--Other Matters

SEC. 1221. DEFENSE BURDENSHARING.

 (a) Efforts To Increase Allied Burdensharing.--The
President shall seek to have each nation that has cooperative
military relations with the United States (including security
agreements, basing arrangements, or mutual participation in
multinational military organizations or operations) take one or
more of the following actions:
 (1) For any nation in which United States military
 personnel are assigned to permanent duty ashore,
 increase its financial contributions to the payment of
 the nonpersonnel costs incurred by the United States
 Government for stationing United States military
 personnel in that nation, with a goal of achieving by
 September 30, 2000, 75 percent of such costs. An
 increase in financial contributions by any nation under
 this paragraph may include the elimination of taxes,
 fees, or other charges levied on United States military
 personnel, equipment, or facilities stationed in that
 nation.
 (2) Increase its annual budgetary outlays for
 national defense as a percentage of its gross domestic
 product by 10 percent or at least to a level
 commensurate that of the United States by September 30,
 1998.
 (3) Increase its annual budgetary outlays for
 foreign assistance (to promote democratization,
 economic stabilization, transparency arrangements,
 defense economic conversion, respect for the rule of
 law, and internationally recognized human rights) by 10
 percent or at least to a level commensurate to that of
 the United States by September 30, 1998.
 (4) Increase the amount of military assets
 (including personnel, equipment, logistics, support and
 other resources) that it contributes, or would be
 prepared to contribute, to multinational military
 activities worldwide.
 (b) Authorities To Encourage Actions by United States
Allies.--In seeking the actions described in subsection (a)
with respect to any nation, or in response to a failure by any
nation to undertake one or more of such actions, the President
may take any of the following measures to the extent otherwise
authorized by law:
 (1) Reduce the end strength level of members of the
 Armed Forces assigned to permanent duty ashore in that
 nation.
 (2) Impose on that nation fees or other charges
 similar to those that such nation imposes on United
 States forces stationed in that nation.
 (3) Reduce (through rescission, impoundment, or
 other appropriate procedures as authorized by law) the
 amount the United States contributes to the NATO Civil
 Budget, Military Budget, or Security Investment
 Program.
 (4) Suspend, modify, or terminate any bilateral
 security agreement the United States has with that
 nation, consistent with the terms of such agreement.
 (5) Reduce (through rescission, impoundment or
 other appropriate procedures as authorized by law) any
 United States bilateral assistance appropriated for
 that nation.
 (6) Take any other action the President determines
 to be appropriate as authorized by law.
 (c) Report on Progress in Increasing Allied
Burdensharing.--Not later than March 1, 1998, the Secretary of
Defense shall submit to Congress a report on--
 (1) steps taken by other nations to complete the
 actions described in subsection (a);
 (2) all measures taken by the President, including
 those authorized in subsection (b), to achieve the
 actions described in subsection (a);
 (3) the difference between the amount allocated by
 other nations for each of the actions described in
 subsection (a) during the period beginning on March 1,
 1996,and ending on February 28, 1997, and during the
period beginning on March 1, 1997, and ending on February 28, 1998; and
 (4) the budgetary savings to the United States that
 are expected to accrue as a result of the steps
 described under paragraph (1).
 (d) Report on National Security Bases for Forward
Deployment and Burdensharing Relationships.--(1) In order to
ensure the best allocation of budgetary resources, the
President shall undertake a review of the status of elements of
the United States Armed Forces that are permanently stationed
outside the United States. The review shall include an
assessment of the following:
 (A) The alliance requirements that are to be found
 in agreements between the United States and other
 countries.
 (B) The national security interests that support
 permanently stationing elements of the United States
 Armed Forces outside the United States.
 (C) The stationing costs associated with the
 forward deployment of elements of the United States
 Armed Forces.
 (D) The alternatives available to forward
 deployment (such as material prepositioning, enhanced
 airlift and sealift, or joint training operations) to
 meet such alliance requirements or national security
 interests, with such alternatives identified and
 described in detail.
 (E) The costs and force structure configurations
 associated with such alternatives to forward
 deployment.
 (F) The financial contributions that allies of the
 United States make to common defense efforts (to
 promote democratization, economic stabilization,
 transparency arrangements, defense economic conversion,
 respect for the rule of law, and internationally
 recognized human rights).
 (G) The contributions that allies of the United
 States make to meeting the stationing costs associated
 with the forward deployment of elements of the United
 States Armed Forces.
 (H) The annual expenditures of the United States
 and its allies on national defense, and the relative
 percentages of each nation's gross domestic product
 constituted by those expenditures.
 (2) The President shall submit to Congress a report on the
review under paragraph (1). The report shall be submitted not
later than March 1, 1998, in classified and unclassified form.

SEC. 1222. TEMPORARY USE OF GENERAL PURPOSE VEHICLES AND NONLETHAL
 MILITARY EQUIPMENT UNDER ACQUISITION AND CROSS
 SERVICING AGREEMENTS.

 Section 2350(1) of title 10, United States Code, is amended
by striking out ``other items'' in the second sentence and all
that follows through ``United States Munitions List'' and
inserting in lieu thereof ``other nonlethal items of military
equipment which are not designated as significant military
equipment on the United States Munitions List promulgated''.

SEC. 1223. SENSE OF CONGRESS AND REPORTS REGARDING FINANCIAL COSTS OF
 ENLARGEMENT OF THE NORTH ATLANTIC TREATY
 ORGANIZATION.

 (a) Findings.--Congress finds the following:
 (1) In a report to Congress in February 1997 on the
 rationale, benefits, costs, and implications of North
 Atlantic Treaty Organization enlargement the Secretary
 of Defense estimated that the financial cost to the
 United States of such enlargement will be modest,
 totaling between $2,000,000,000 and $2,600,000,000 for
 the period from 1997 through 2009.
 (2) A study by the RAND Corporation published in
 1996 calculated that the total financial cost to the
 United States of such enlargement will be between
 $5,000,000,000 and $6,000,000,000 over the same period.
 (3) A March 1996 report by the Congressional Budget
 Office on the financial costs of enlarging the North
 Atlantic Treaty Organization alliance estimated the
 United States share of alliance enlargement costs to be
 between$4,800,000,000 and $18,900,000,000 through 2010,
depending upon political developments in Europe.
 (4) An August 1997 report by the General Accounting
 Office reviewing the financial cost estimates of the
 Secretary of Defense concluded that North Atlantic
 Treaty Organization enlargement could entail additional
 costs beyond those included in the Secretary's estimate
 and questioned the validity of the Secretary's estimate
 due to the lack of supporting cost documentation and
 the inclusion of cost elements not related to NATO
 enlargement.
 (5) The North Atlantic Alliance is scheduled to
 complete its analysis of the military requirements for
 the integration of Poland, the Czech Republic, and
 Hungary into the Alliance in December 1997.
 (6) The North Atlantic Alliance is also scheduled
 to complete in December 1997 its financial cost
 estimate of the military requirements related to the
 integration of those nations.
 (b) Sense of Congress.--It is the sense of Congress that
the analysis of the North Atlantic Alliance of the military
requirements relating to NATO enlargement and of the financial
costs to the Alliance of NATO enlargement will be one of the
major factors in the consideration by the Senate of the
ratification of instruments to approve the admission of new
member nations to the Alliance and by Congress for the
authorization and appropriation of the funding for the costs
associated with such enlargement.
 (c) Report Assessing NATO Cost Analysis.--Not later than
March 31, 1998, the Secretary of Defense shall submit to
Congress a report providing--
 (1) an assessment of the analysis by the North
 Atlantic Alliance of the military requirements related
 to NATO enlargement and of the estimate of the
 financial costs to the NATO Alliance for the
 integration of Poland, the Czech Republic, and Hungary
 into the Alliance;
 (2) a description of the analytical means used to
 determine such requirements and costs; and
 (3) a general assessment of the additional military
 requirements and costs that would result from a
 significantly increased threat.
 (b) Report on Department of Defense Costs.--(1) The
Secretary of Defense shall submit to Congress, in conjunction
with the submission of the President's budget for fiscal year
1999, a report on Department of Defense costs for NATO
enlargement. The report shall include a detailed estimate of
such costs for fiscal year 1998 that identifies all
appropriations, by budget activity, for the military
departments and other elements of the Department of Defense to
support NATO enlargement.
 (2) The Secretary of Defense shall include in the budget
justification materials submitted to Congress by the Secretary
in support of the budget of Department of Defense for fiscal
year 1999 complete and detailed descriptions and estimates of
the amounts provided in that budget for the costs of NATO
enlargement.

SEC. 1224. SENSE OF CONGRESS REGARDING ENLARGEMENT OF THE NORTH
 ATLANTIC TREATY ORGANIZATION.

 (a) Findings.--Congress makes the following findings:
 (1) The North Atlantic Treaty Organization (NATO)
 met on July 8 and 9, 1997, in Madrid, Spain, and issued
 invitations to the Czech Republic, Hungary, and Poland
 to begin accession talks to join NATO.
 (2) Congress has expressed its support for the
 process of NATO enlargement by approving the NATO
 Enlargement Facilitation Act of 1996 (title VI of the
 matter enacted in section 101(c) of division A of
 Public Law 104-208; 22 U.S.C. 1928 note).
 (3) The United States has supported the position
 that the process of enlarging NATO will continue after
 the first round of invitations in July 1997.
 (4) Romania and Slovenia are to be commended for
 their progress toward political and economic reform
andappear to be striving to meet the guidelines for prospective
membership in NATO.
 (5) In furthering the purpose and objective of NATO
 in promoting stability and well-being in the North
 Atlantic area, NATO should invite Romania and Slovenia
 to accession negotiations to become NATO members as
 expeditiously as possible upon the satisfaction of all
 relevant membership criteria and consistent with NATO
 security objectives.
 (b) Sense of Congress.--It is the sense of Congress that
North Atlantic Treaty Organization should be commended--
 (1) for having committed to review the process of
 enlarging the Organization in 1999; and
 (2) for singling out the positive developments
 toward democracy and rule of law in Romania and
 Slovenia.

SEC. 1225. SENSE OF CONGRESS RELATING TO LEVEL OF UNITED STATES
 MILITARY PERSONNEL IN THE EAST ASIA AND PACIFIC
 REGION.

 (a) Findings.--Congress finds the following:
 (1) The stability of the Asia-Pacific region is a
 matter of vital national interest affecting the well-
 being of all Americans.
 (2) The nations of the Pacific Rim collectively
 represent the United States largest trading partner and
 are expected to account for almost one-third of the
 world's economic activity by the start of the next
 century.
 (3) The increased reliance by the United States on
 trade and Middle East oil sources has reinforced United
 States security interests in the Southeast Asia
 shipping lanes through the South China Sea and the key
 straits of Malacca, Sunda, Lombok, and Makassar.
 (4) The South China Sea is an important area for
 United States Navy ships passing from the Pacific to
 the Indian Ocean and the Persian Gulf.
 (5) Maintaining freedom of navigation in the South
 China Sea is an important interest of the United
 States.
 (6) The threats of proliferation of weapons of mass
 destruction, the emerging nationalism amidst long-
 standing ethnic and national rivalries, and the
 unresolved territorial disputes combine to create a
 political landscape of potential instability and
 conflict in this region that could jeopardize the
 interests of the United States and the safety of United
 States nationals.
 (7) A critical component of the East Asia strategy
 of the United States is maintaining forward deployed
 forces in Asia to ensure broad regional stability, to
 help to deter aggression, to lessen the pressure for
 arms races, and to contribute to the political and
 economic advances of the region from which the United
 States benefits.
 (8) The forward presence of the United States in
 Northeast Asia enables the United States to respond to
 regional contingencies, to protect sea lines of
 communication, to sustain influence, and to support
 operations as distant as operations in the Persian
 Gulf.
 (9) The military forces of the United States serve
 to prevent the political or economic control of the
 Asia-Pacific region by a rival, hostile power or
 coalition of such powers, thus preventing any such
 group from obtaining control over the vast resources,
 enormous wealth, and advanced technology of the region.
 (10) Allies of the United States in the region can
 base their defense planning on a reliable American
 security commitment, a reduction of which could
 stimulate an arms buildup in the region.
 (11) The Joint Announcement of the United States-
 Japan Security Consultative Committee of December 1996,
 acknowledged that ``the forward presence of U.S. forces
 continues to be an essential element for pursuing our
 common security objectives''.
 (12) The United States and Japan signed the United
 States-Japan Security Declaration in April 1996, in
 which the United States reaffirmed its commitment to
 maintainthis level of 100,000 United States military
personnel in the region.
 (13) The United States military presence is
 recognized by the nations of the region as serving
 stability and enabling United States engagement.
 (14) The nations of East Asia and the Pacific
 consider the commitment of the forces of the United
 States to be so vital to their future that they
 scrutinize actions of the United States for any sign of
 weakened commitment to the security of the region.
 (15) The reduction of forward-based military forces
 could negatively affect the ability of the United
 States to contribute to the maintenance of peace and
 stability of the Asia and Pacific region.
 (16) Recognizing that while the United States must
 consider the overall capabilities of its forces in its
 decisions to deploy troops, nevertheless any reduction
 in the number of forward-based troops may reduce the
 perception of American capability and commitment in the
 region that cannot be completely offset by
 modernization of the remaining forces.
 (17) During time of crisis, deployment of forces to
 East Asia, even though such forces were previously
 removed from the area, might be deemed to be an act of
 provocation that could be used as a pretext by a
 hostile power for armed aggression within the region,
 and the existence of that possibility might hinder such
 a deployment.
 (18) Proposals to reduce the forward presence of
 the United States in the East Asia region or
 subordinate security interests to United States
 domestic budgetary concerns can erode the perception of
 the commitment of the United States to its alliances
 and interests in the region.
 (b) Sense of Congress.--It is the sense of Congress that
the United States should maintain at least approximately
100,000 United States military personnel in the East Asia and
Pacific region until such time as there is a peaceful and
permanent resolution to the major security and political
conflicts in the region.

SEC. 1226. REPORT ON FUTURE MILITARY CAPABILITIES AND STRATEGY OF THE
 PEOPLE'S REPUBLIC OF CHINA.

 (a) Report.--The Secretary of Defense shall prepare a
report, in both classified and unclassified form, on the
pattern of military modernization of the People's Republic of
China. The report shall address the probable course of
military-technological development in the People's Liberation
Army and the development of Chinese security strategy and
military strategy, and of military organizations and
operational concepts, through 2015.
 (b) Matters To Be Included.--The report shall include
analyses and forecasts of the following:
 (1) The goals of Chinese security strategy and
 military strategy.
 (2) Trends in Chinese strategy regarding the
 political goals of the People's Republic of China in
 the Asia-Pacific region and its political and military
 presence in other regions of the world, including
 Central Asia, Southwest Asia, Europe, and Latin
 America.
 (3) Developments in Chinese military doctrine,
 focusing on (but not limited to) efforts to exploit an
 emerging Revolution in Military Affairs or to conduct
 preemptive strikes.
 (4) Efforts by the People's Republic of China to
 enhance its capabilities in the area of nuclear weapons
 development.
 (5) Efforts by the People's Republic of China to
 develop long-range air-to-air or air defense missiles
 that would provide the capability to target special
 support aircraft such as Airborne Warning and Control
 System (AWACS) aircraft, Joint Surveillance and Target
 Attack Radar System (JSTARS) aircraft, or other command
 and control, intelligence, airborne early warning, or
 electronic warfare aircraft.
 (6) Efforts by the People's Republic of China to
 develop a capability to conduct ``information warfare''
 at the strategic, operational, and tactical levels of
 war.
 (7) Development by the People's Republic of China
 of capabilities in the area of electronic warfare.
 (8) Efforts by the People's Republic of China to
 develop a capability to establish control of space or
 to deny access and use of military and commercial space
 systems in times of crisis or war, including programs
 to place weapons in space or to develop earth-based
 weapons capable of attacking space-based systems.
 (9) Trends that would lead the People's Republic of
 China toward the development of advanced intelligence,
 surveillance, and reconnaissance capabilities,
 including gaining access to commercial or third-party
 systems with military significance.
 (10) Efforts by the People's Republic of China to
 develop highly accurate and stealthy ballistic and
 cruise missiles, including sea-launched cruise
 missiles, particularly in numbers sufficient to conduct
 attacks capable of overwhelming projected defense
 capabilities in the Asia-Pacific region.
 (11) Development by the People's Republic of China
 of command and control networks, particularly those
 capable of battle management of long-range precision
 strikes.
 (12) Efforts by the People's Republic of China in
 the area of telecommunications, including common
 channel signaling and synchronous digital hierarchy
 technologies.
 (13) Development by People's Republic of China of
 advanced aerospace technologies with military
 applications (including gas turbine ``hot section''
 technologies).
 (14) Programs of the People's Republic of China
 involving unmanned aerial vehicles, particularly those
 with extended ranges or loitering times or potential
 strike capabilities.
 (15) Exploitation by the People's Republic of China
 for military purposes of the Global Positioning System
 or other similar systems (including commercial land
 surveillance satellites), with such analysis and
 forecasts focusing particularly on indications of an
 attempt to increase the accuracy of weapons or
 situational awareness of operating forces.
 (16) Development by the People's Republic of China
 of capabilities for denial of sea control, including
 such systems as advanced sea mines, improved submarine
 capabilities, or land-based sea-denial systems.
 (17) Efforts by the People's Republic of China to
 develop its anti-submarine warfare capabilities.
 (18) Continued development by the People's Republic
 of China of follow-on forces, particularly forces
 capable of rapid air or amphibious assault.
 (19) Efforts by the People's Republic of China to
 enhance its capabilities in such additional areas of
 strategic concern as the Secretary identifies.
 (c) Analysis of Implications of Sales of Products and
Technologies to Entities in China.--The report under subsection
(a) shall include, with respect to each area for analyses and
forecasts specified in subsection (b)--
 (1) an assessment of the military effects of sales
 of United States and foreign products and technologies
 to entities in the People's Republic of China; and
 (2) the potential threat of developments related to
 such effects to United States strategic interests.
 (d) Submission of Report.--The report shall be submitted to
Congress not later than March 15, 1998.

SEC. 1227. SENSE OF CONGRESS ON NEED FOR RUSSIAN OPENNESS ON THE
 YAMANTAU MOUNTAIN PROJECT.

 (a) Findings.--Congress finds as follows:
 (1) The United States and Russia have been working
 since the end of the Cold War to achieve a strategic
 relationship based on cooperation and openness between
 the two nations.
 (2) This effort to establish a new strategic
 relationship between the two nations has resulted in
 the conclusion or agreement in principle on a number of
 far-reaching agreements, including START I, II, and
 III, a revision in the Conventional Forces in Europe
 Treaty, and a series of other agreements (such as the
 Comprehensive Test Ban Treaty and the Chemical Weapons
 Convention), designed to further reduce bilateral
 threats and limit the proliferation of weapons of mass
 destruction.
 (3) These far-reaching agreements were based on the
 understanding between the United States and Russia that
 there would be a good faith effort on both sides to
 comply with the letter and spirit of the agreements.
 (4) Reports indicate that Russia has been pursuing
 construction of a massive underground facility of
 unknown purpose at Yamantau Mountain and the city of
 Mezhgorye (formerly the settlements of Beloretsk-15 and
 Beloretsk-16) that is designed to survive a nuclear war
 and appears to exceed reasonable defense requirements.
 (5) The Yamantau Mountain project does not appear
 to be consistent with the lowering of strategic
 threats, openness, and cooperation that is the basis of
 the post-Cold War strategic partnership between the
 United States and Russia.
 (6) The United States has allowed senior Russian
 military and government officials to have access to key
 strategic facilities of the United States by providing
 tours of the North American Air Defense (NORAD) command
 at Cheyenne Mountain and the United States Strategic
 Command (STRATCOM) headquarters in Omaha, Nebraska,
 among other sites, and by providing extensive briefings
 on the operations of those facilities.
 (b) Sense of Congress.--It is the sense of Congress that
the Russian government--
 (1) should provide to the United States Government
 a written explanation with sufficient detail (including
 drawings and diagrams) of the purpose and operational
 concept of the completed and planned facilities at
 Yamantau Mountain to support a high confidence judgment
 by the United States that the design of the Yamantau
 facility is consistent with official Russian government
 explanations; and
 (2) should allow a United States delegation, to
 include officials of the executive branch and Members
 of Congress, to have access to the Yamantau Mountain
 project and buildings and facilities surrounding the
 project.

SEC. 1228. ASSESSMENT OF THE CUBAN THREAT TO UNITED STATES NATIONAL
 SECURITY.

 (a) Findings.--Congress makes the following findings:
 (1) Cuba has maintained a hostile policy in its
 relations with the United States for over 35 years.
 (2) The United States, as a sovereign nation, must
 be able to respond to any Cuban provocation and defend
 the people and territory of the United States against
 any attack.
 (3) In 1994, the Government of Cuba callously
 encouraged a massive exodus of Cubans, by boat and
 raft, toward the United States during which countless
 numbers of those Cubans lost their lives on the high
 seas.
 (4) The humanitarian response of the United States
 to rescue, shelter, and provide emergency care to those
 Cubans, together with the actions taken to absorb some
 30,000 of those Cubans into the United States, required
 significant efforts and the expenditure of hundreds of
 millions of dollars for the costs incurred by the
 United States and State and local governments in
 connection with those efforts.
 (5) On February 24, 1996, Cuban MiG aircraft
 attacked and destroyed, in international airspace, two
 unarmed civilian aircraft flying from the United
 States, and the four persons in those unarmed civilian
 aircraft were killed.
 (6) Since that attack, the Cuban government has
 issued no apology for the attack, nor has it indicated
 any intention to conform its conduct to international
 law that isapplicable to civilian aircraft operating in
international airspace.
 (b) Review and Assessment.--The Secretary of Defense shall
carry out a comprehensive review and assessment of--
 (1) Cuban military capabilities; and
 (2) the threats to the national security of the
 United States that may be posed by Cuba, including--
 (A) such unconventional threats as (i)
 encouragement of massive and dangerous
 migration, and (ii) attacks on citizens and
 residents of the United States while they are
 engaged in peaceful protest in international
 waters or airspace;
 (B) the potential for development and
 delivery of chemical or biological weapons; and
 (C) the potential for internal strife in
 Cuba that could involve citizens or residents
 of the United States or the Armed Forces of the
 United States.
 (c) Report.--Not later than March 31, 1998, the Secretary
of Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report on the review and assessment. The
report shall include the following:
 (1) The Secretary's assessment of the capabilities
 and threats referred to in subsection (b), including
 each of the threats described in paragraph (2) of that
 subsection.
 (2) A discussion of the results of the review and
 assessment, including an assessment of the contingency
 plans developed by the Secretary to counter any threat
 posed by Cuba to the United States.
 (d) Consultation on Review and Assessment.--In performing
the review and assessment and in preparing the report, the
Secretary of Defense shall consult with the Chairman of the
Joint Chiefs of Staff, the commander of the United States
Southern Command, and the heads of other appropriate
departments and agencies of the United States.

SEC. 1229. REPORT ON HELSINKI JOINT STATEMENT.

 (a) Requirement.--Not later than March 31, 1998, the
President shall submit to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives a report on the Helsinki Joint Statement on
future reductions in nuclear forces. The report shall address
the United States approach (including verification
implications) to implementing the Helsinki Joint Statement, in
particular, as that Statement relates to the following:
 (1) Lower aggregate levels of strategic nuclear
 warheads.
 (2) Measures relating to the transparency of
 strategic nuclear warhead inventories and the
 destruction of strategic nuclear warheads.
 (3) Deactivation of strategic nuclear delivery
 vehicles.
 (4) Measures relating to nuclear long-range sea-
 launched cruise missiles and tactical nuclear systems.
 (5) Issues related to transparency in nuclear
 materials.
 (b) Definition.--For purposes of this section, the term
``Helsinki Joint Statement'' means the agreements between the
President of the United States and the President of the Russian
Federation as contained in the Joint Statement on Parameters on
Future Reductions in Nuclear Forces issued at Helsinki in March
1997.

SEC. 1230. COMMENDATION OF MEXICO ON FREE AND FAIR ELECTIONS.

 (a) Findings.--Congress makes the following findings:
 (1) On July 6, 1997, elections were conducted in
 Mexico in order to fill 500 seats in the Chamber of
 Deputies, 32 seats in the 128 seat Senate, the office
 of the Mayor of Mexico City, and local elections in a
 number of Mexican States.
 (2) For the first time, the federal elections were
 organized by the Federal Electoral Institute, an
 autonomous and independent organization established
 under the Mexican Constitution.
 (3) More than 52,000,000 Mexican citizens
 registered to vote.
 (4) Eight political parties registered to
 participate in the those elections, including the
 Institutional Revolutionary Party (PRI), the National
 Action Party (PAN), and the Democratic Revolutionary
 Party (PRD).
 (5) Since 1993, Mexican citizens have had the
 exclusive right to participate as observers in
 activities related to the preparation and the conduct
 of elections.
 (6) Since 1994, Mexican law has permitted
 international observers to be a part of the election
 process.
 (7) With 84 percent of the ballots counted, PRI
 candidates received 38 percent of the vote for seats in
 the Chamber of Deputies, while PRD and PAN candidates
 received 52 percent of the combined vote.
 (8) PRD candidate Cuauhtemoc Cardenas Solorzano has
 become the first elected Mayor of Mexico City, a post
 previously appointed by the President.
 (9) PAN members will now serve as governors in
 seven of Mexico's 31 States.
 (b) Sense of Congress.--It is the sense of Congress that--
 (1) the recent elections in Mexico were conducted
 in a free, fair, and impartial manner;
 (2) the will of the Mexican people, as expressed
 through the ballot box, has been respected by President
 Ernesto Zedillo and officials throughout his
 administration; and
 (3) President Zedillo, the Mexican Government, the
 Federal Electoral Institute of Mexico, the political
 parties and candidates, and most importantly the
 citizens of Mexico should all be congratulated for
 their support and participation in these very historic
 elections.

SEC. 1231. SENSE OF CONGRESS REGARDING CAMBODIA.

 (a) Findings.--Congress makes the following findings:
 (1) During the 1970s and 1980s, Cambodia was
 wracked by political conflict, war, and violence,
 including genocide perpetrated by the Khmer Rouge from
 1975 to 1979.
 (2) The 1991 Paris Agreements on a Comprehensive
 Political Settlement of the Cambodia Conflict set the
 stage for a process of political accommodation and
 national reconciliation among Cambodia's warring
 parties.
 (3) The international community engaged in a
 massive effort involving more than $2,000,000,000 to
 ensure peace, democracy, and prosperity in Cambodia
 following the Paris Accords.
 (4) The Cambodian people clearly demonstrated their
 support for democracy when 90 percent of eligible
 Cambodian voters participated in United Nations-
 sponsored elections in 1993.
 (5) Since the 1993 elections, Cambodia has made
 economic progress, as shown by the recent decision of
 the Association of Southeast Asian Nations (ASEAN) to
 extend membership in the Association to Cambodia.
 (6) Tensions within the ruling Cambodian coalition
 have erupted into violence.
 (7) In March 1997, 19 Cambodians were killed and
 more than 100 were wounded in a grenade attack on
 political demonstrators supportive of the Funcinpec and
 the Khmer Nation Party.
 (8) During June 1997, fighting erupted in Phnom
 Penh between forces loyal to First Prime Minister
 Prince Ranariddh and Second Prime Minister Hun Sen.
 (9) On July 5, 1997, Second Prime Minister Hun Sen
 deposed the First Prime Minister in a violent coup
 d'etat.
 (10) Forces loyal to Hun Sen have executed former
 Interior Minister Ho Sok and approximately 40 other
 political opponents loyal to Prince Ranariddh.
 (11) Democracy and stability in Cambodia are
 threatened by the continued use of violence and other
 extralegal means to resolve political tensions.
 (12) In response to the July 1997 coup in Cambodia
 referred to in paragraph (9)--
 (A) the President has suspended all direct
 assistance to the Cambodian Government; and
 (B) the Association of Southeast Asian
 Nations (ASEAN) has decided to delay
 indefinitely admission of Cambodia to
 membership in the Association.
 (b) Sense of Congress.--It is the sense of Congress that--
 (1) the parties in Cambodia should immediately
 cease the use of violence;
 (2) the United States should take all necessary
 steps to ensure the safety of United States citizens in
 Cambodia;
 (3) the United States should call an emergency
 meeting of the United Nations Security Council to
 consider all options to restore peace and democratic
 governance in Cambodia;
 (4) the United States and the Association of
 Southeast Asian Nations should work together to take
 immediate steps to restore democracy and the rule of
 law in Cambodia;
 (5) United States assistance to the Government of
 Cambodia should remain suspended until violence ends,
 the democratically elected Government is restored to
 power, and the necessary steps have been taken to
 ensure that the elections scheduled for 1998 take
 place; and
 (6) the United States should take all necessary
 steps to encourage other donor nations to suspend
 assistance as part of a multilateral effort.

SEC. 1232. CONGRATULATING GOVERNOR CHRISTOPHER PATTEN OF HONG KONG.

 (a) Findings.--Congress makes the following findings:
 (1) His Excellency Christopher F. Patten, the
 former Governor of Hong Kong, was the twenty-eighth and
 last British Governor of the dependent territory of
 Hong Kong before that territory reverted back to the
 People's Republic of China on July 1, 1997.
 (2) Christopher Patten was a superb administrator
 and an inspiration to the people whom he governed.
 (3) During Christopher Patten's five years as
 Governor of Hong Kong, the economy flourished under his
 stewardship, growing by more than 30 percent in real
 terms.
 (4) Christopher Patten presided over a capable and
 honest civil service.
 (5) During the tenure of Christopher Patten as
 Governor of Hong Kong, common crime declined and the
 political climate was positive and stable.
 (6) The legacy of Christopher Patten to Hong Kong
 is the expansion of democracy in Hong Kong's
 legislative council and a tireless devotion to the
 rights, freedoms, and welfare of the people of Hong
 Kong.
 (7) Christopher Patten fulfilled the commitment of
 the British Government to ``put in place a solidly
 based democratic administration'' in Hong Kong before
 July 1, 1997.
 (b) Sense of Congress.--It is the sense of the Congress
that Christopher F. Patten, the last British Governor of the
dependent territory of Hong Kong--
 (1) served his country with great honor and
 distinction in that capacity; and
 (2) deserves special thanks and recognition from
 the United States for his tireless efforts to develop
 and nurture democracy in Hong Kong.

 TITLE XIII--ARMS CONTROL AND RELATED MATTERS

Sec. 1301. Presidential report concerning detargeting of Russian
 strategic missiles.
Sec. 1302. Limitation on retirement or dismantlement of strategic
 nuclear delivery systems.
Sec. 1303. Assistance for facilities subject to inspection under the
 Chemical Weapons Convention.
Sec. 1304. Transfers of authorizations for high-priority
 counterproliferation programs.
Sec. 1305. Advice to the President and Congress regarding the safety,
 security, and reliability of United States nuclear weapons
 stockpile.
Sec. 1306. Reconstitution of commission to assess the ballistic missile
 threat to the United States.
Sec. 1307. Sense of Congress regarding the relationship between United
 States obligations under the Chemical Weapons Convention and
 environmental laws.
Sec. 1308. Extension of counterproliferation authorities for support of
 United Nations Special Commission on Iraq.
Sec. 1309. Annual report on moratorium on use by Armed Forces of
 antipersonnel landmines.

SEC. 1301. PRESIDENTIAL REPORT CONCERNING DETARGETING OF RUSSIAN
 STRATEGIC MISSILES.

 (a) Required Report.--Not later than January 1, 1998, the
President shall submit to Congress a report concerning
detargeting of Russian strategic missiles. The report shall
address each of the following:
 (1) Whether a Russian ICBM that was formerly, but
 is no longer, targeted at a site in the United States
 would be automatically retargeted at a site in the
 United States in the event of the accidental launch of
 the missile.
 (2) Whether missile detargeting would prevent or
 significantly reduce the possibility of an unauthorized
 missile launch carried out by the Russian General Staff
 and prevent or significantly reduce the consequences to
 the United States of such a launch.
 (3) Whether missile detargeting would pose a
 significant obstacle to an unauthorized launch carried
 out by an operational level below the Russian General
 Staff if missile operators at such an operational level
 acquired missile launch codes or had the technical
 expertise to override missile launch codes.
 (4) The plausibility of an accidental launch of a
 Russian ICBM, compared to the possibility of a
 deliberate missile launch, authorized or unauthorized,
 resulting from Russian miscalculation, overreaction, or
 aggression.
 (5) The national security benefits derived from
 detargeting United States and Russian ICBMs.
 (6) The relative consequences to the United States
 of an unauthorized or accidental launch of a Russian
 ICBM that has been detargeted and one that has not been
 detargeted.
 (b) Definitions.--For purposes of subsection (a):
 (1) The term ``Russian ICBM'' means an
 intercontinental ballistic missile of the Russian
 Federation.
 (2) The term ``accidental launch'' means a missile
 launch resulting from mechanical failure.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC
 NUCLEAR DELIVERY SYSTEMS.

 (a) Funding Limitation.--Funds available to the Department
of Defense may not be obligated or expended during fiscal year
1998 for retiring or dismantling, or for preparing to retire or
dismantle, any of the following strategic nuclear delivery
systems below the specified levels:
 (1) 71 B-52H bomber aircraft.
 (2) 18 Trident ballistic missile submarines.
 (3) 500 Minuteman III intercontinental ballistic
 missiles.
 (4) 50 Peacekeeper intercontinental ballistic
 missiles.
 (b) Waiver Authority.--If the START II Treaty enters into
force during fiscal year 1998, the Secretary of Defense may
waive the application of the limitation under subsection (a) to
the extent that the Secretary determines necessary in order to
implement the treaty.
 (c) Funding Limitation on Early Deactivation.--(1) If the
limitation under subsection (a) ceases to apply by reason of a
waiver under subsection (b), funds available to the Department
of Defense may nevertheless not be obligated or expended during
fiscal year 1998 to implement any agreement or understanding to
undertake substantial early deactivation of a strategic nuclear
delivery system specified in subsection (a) until 30 days after
the date on which the President submits to Congress a report
concerning such actions.
 (2) For purposes of this subsection and subsection (d), a
substantial early deactivation is an action during fiscal year
1998 to deactivate a substantial number of strategic nuclear
delivery systems specified in subsection (a) by--
 (A) removing nuclear warheads from those systems;
 or
 (B) taking other steps to remove those systems from
 combat status.
 (3) A report under this subsection shall include the
following:
 (A) The text of any understanding or agreement
 between the United States and the Russian Federation
 concerning substantial early deactivation of strategic
 nuclear delivery systems under the START II Treaty.
 (B) The plan of the Department of Defense for
 implementing the agreement.
 (C) An assessment of the Secretary of Defense of
 the adequacy of the provisions contained in the
 agreement for monitoring and verifying compliance of
 Russia with the terms of the agreement and, based upon
 that assessment, the determination of the President
 specifically as to whether the procedures for
 monitoring and verification of compliance by Russia
 with the terms of the agreement are adequate or
 inadequate.
 (D) A determination by the President as to whether
 the deactivations to occur under the agreement will be
 carried out in a symmetrical, reciprocal, or equivalent
 manner and whether the agreement will require early
 deactivations of strategic forces by the United States
 to be carried out substantially more rapidly than
 deactivations of strategic forces by Russia.
 (E) An assessment by the President of the effect of
 the proposed early deactivation on the stability of the
 strategic balance and relative strategic nuclear
 capabilities of the United States and the Russian
 Federation at various stages during deactivation and
 upon completion, including a determination by the
 President specifically as to whether the proposed early
 deactivations will adversely affect strategic
 stability.
 (d) Further Limitation on Strategic Force Reductions.--(1)
Amounts available to the Department of Defense for fiscal year
1998 to implement an agreement that results in a substantial
early deactivation during fiscal year 1998 of strategic forces
may not be obligated for that purpose if in the report under
subsection (c)(3) the President determines any of the
following:
 (A) That procedures for monitoring and verification
 of compliance by Russia with the terms of the agreement
 are inadequate.
 (B) That the agreement will require early
 deactivations of strategic forces by the United States
 to be carried out substantially more rapidly than
 deactivations of strategic forces by Russia.
 (C) That the proposed early deactivations will
 adversely affect strategic stability.
 (2) The limitation in paragraph (1), if effective by reason
of a determination by the President described in paragraph
(1)(B), shall cease to apply 30 days after the date on which
the President notifies Congress that the early deactivations
under the agreement are in the national interest of the United
States.
 (e) Contingency Plan for Sustainment of Systems.--(1) Not
later then February 15, 1998, the Secretary of Defense shall
submit to Congress a plan for the sustainment beyond October 1,
1999, of United States strategic nuclear delivery systems and
alternative Strategic Arms Reduction Treaty force structures in
the event that a strategic arms reduction agreement subsequent
to the Strategic Arms Reduction Treaty does not enter into
force before 2004.
 (2) The plan shall include a discussion of the following
matters:
 (A) The actions that are necessary to sustain the
 United States strategic nuclear delivery systems,
 distinguishing between the actions that are planned for
 and funded in the future-years defense program and the
 actions that are not planned for and funded in the
 future-years defense program.
 (B) The funding necessary to implement the plan,
 indicating the extent to which the necessary funding is
 provided for in the future-years defense program and
 the extent to which the necessary funding is not
 provided for in the future-years defense program.
 (f) START Treaties Defined.--In this section:
 (1) The term ``Strategic Arms Reduction Treaty''
 means the Treaty Between the United States of America
 and the United Soviet Socialist Republics on the
 Reduction and Limitation of Strategic Offensive Arms
 (START), signed at Moscow on July 31, 1991, including
 related annexes on agreed statements and definitions,
 protocols, and memorandum of understanding.
 (2) The term ``START II Treaty'' means the Treaty
 Between the United States of America and the Russian
 Federation on Further Reduction and Limitation of
 Strategic Offensive Arms, signed at Moscow on January
 3, 1993, including the following protocols and
 memorandum of understanding, all such documents being
 integral parts of and collectively referred to as the
 ``START II Treaty'' (contained in Treaty Document 103-
 1):
 (A) The Protocol on Procedures Governing
 Elimination of Heavy ICBMs and on Procedures
 Governing Conversion of Silo Launchers of Heavy
 ICBMs Relating to the Treaty Between the United
 States of America and the Russian Federation on
 Further Reductionand Limitation of Strategic
Offensive Arms (also known as the ``Elimination and Conversion
Protocol'').
 (B) The Protocol on Exhibitions and
 Inspections of Heavy Bombers Relating to the
 Treaty Between the United States and the
 Russian Federation on Further Reduction and
 Limitation of Strategic Offensive Arms (also
 known as the ``Exhibitions and Inspections
 Protocol'').
 (C) The Memorandum of Understanding on
 Warhead Attribution and Heavy Bomber Data
 Relating to the Treaty Between the United
 States of America and the Russian Federation on
 Further Reduction and Limitation of Strategic
 Offensive Arms (also known as the ``Memorandum
 on Attribution'').

SEC. 1303. ASSISTANCE FOR FACILITIES SUBJECT TO INSPECTION UNDER THE
 CHEMICAL WEAPONS CONVENTION.

 (a) Assistance Authorized.--Upon the request of the owner
or operator of a facility that is subject to a routine
inspection or a challenge inspection under the Chemical Weapons
Convention, the Secretary of Defense may provide technical
assistance to that owner or operator related to compliance of
that facility with the Convention. Any such assistance shall be
provided through the On-Site Inspection Agency of the
Department of Defense.
 (b) Reimbursement Requirement.--The Secretary may provide
assistance under subsection (a) only to the extent that the
Secretary determines that the Department of Defense will be
reimbursed for costs incurred in providing the assistance. The
United States National Authority may provide such reimbursement
from amounts available to it. Any such reimbursement shall be
credited to amounts available for the On-Site Inspection
Agency.
 (c) Definitions.--In this section:
 (1) The terms ``Chemical Weapons Convention'' and
 ``Convention'' mean the Convention on the Prohibition
 of the Development, Production, Stockpiling and Use of
 Chemical Weapons and on Their Destruction, ratified by
 the United States on April 25, 1997, and entered into
 force on April 29, 1997.
 (2) The term ``facility that is subject to a
 routine inspection'' means a declared facility, as
 defined in paragraph 15 of part X of the Annex on
 Implementation and Verification of the Convention.
 (3) The term ``challenge inspection'' means an
 inspection conducted under Article IX of the
 Convention.
 (4) The term ``United States National Authority''
 means the United States National Authority established
 or designated pursuant to Article VII, paragraph 4, of
 the Convention.

SEC. 1304. TRANSFERS OF AUTHORIZATIONS FOR HIGH-PRIORITY
 COUNTERPROLIFERATION PROGRAMS.

 (a) Authority.--(1) Subject to paragraph (2), the Secretary
of Defense may transfer amounts of authorizations made
available to the Department of Defense in this division for
fiscal year 1998 to any counterproliferation program, project,
or activity described in subsection (b).
 (2) A transfer of authorizations may be made under this
section only upon determination by the Secretary of Defense
that such action is necessary in the national interest.
 (3) Amounts of authorizations so transferred shall be
merged with and be available for the same purposes as the
authorization to which transferred.
 (b) Programs to Which Tranfers May Be Made.--The authority
under subsection (a) applies to any counterproliferation
program, project, or activity of the Department of Defense
identified as an area for progress in the most recent annual
report of the Counterproliferation Program Review Committee
established by section 1605 of the National Defense
Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note).
 (c) Limitation on Total Amount.--The total amount of
authorizations transferred under the authority of this section
may not exceed $50,000,000.
 (d) Other Limitations and Requirements.--The provisions of
subsection (b), (c), and (d) of section 1001 shall apply to a
transfer under this section in the same manner as they apply to
a transfer under subsection (a) of that section.
 (e) Construction With General Transfer Authority.--The
authority provided by this section is in addition to the
transfer authority provided in section 1001.

SEC. 1305. ADVICE TO THE PRESIDENT AND CONGRESS REGARDING THE SAFETY,
 SECURITY, AND RELIABILITY OF UNITED STATES NUCLEAR
 WEAPONS STOCKPILE.

 (a) Findings.--Congress makes the following findings:
 (1) Nuclear weapons are the most destructive
 weapons on earth. The United States and its allies
 continue to rely on nuclear weapons to deter potential
 adversaries from using weapons of mass destruction. The
 safety and reliability of the nuclear weapons stockpile
 are essential to ensure its credibility as a deterrent.
 (2) On September 24, 1996, President Clinton signed
 the Comprehensive Test Ban Treaty.
 (3) Effective as of September 30, 1996, the United
 States is prohibited by section 507 of the Energy and
 Water Development Appropriations Act, 1993 (Public Law
 102-377; 42 U.S.C. 2121 note) from conducting
 underground nuclear tests ``unless a foreign state
 conducts a nuclear test after this date, at which time
 the prohibition on United States nuclear testing is
 lifted''.
 (4) Section 1436(b) of the National Defense
 Authorization Act, Fiscal Year 1989 (Public Law 100-
 456; 42 U.S.C. 2121 note) requires the Secretary of
 Energy to ``establish and support a program to assure
 that the United States is in a position to maintain the
 reliability, safety, and continued deterrent effect of
 its stockpile of existing nuclear weapons designs in
 the event that a low-threshold or comprehensive test
 ban on nuclear explosive testing is negotiated and
 ratified.''.
 (5) Section 3138(d) of the National Defense
 Authorization Act for Fiscal Year 1994 (Public Law 103-
 160; 42 U.S.C. 2121 note) required the President to
 submit an annual report to Congress which sets forth
 ``any concerns with respect to the safety, security,
 effectiveness, or reliability of existing United States
 nuclear weapons raised by the Stockpile Stewardship
 Program of the Department of Energy''.
 (6) President Clinton declared in July 1993 that
 ``to assure that our nuclear deterrent remains
 unquestioned under a test ban, we will explore other
 means of maintaining our confidence in the safety,
 reliability, and the performance of our weapons''. This
 decision was incorporated in a Presidential Directive.
 (7) Section 3138 of the National Defense
 Authorization Act for Fiscal Year 1994 (Public Law 103-
 160; 42 U.S.C. 2121 note) also requires that the
 Secretary of Energy establish a ``stewardship program
 to ensure the preservation of the core intellectual and
 technical competencies of the United States in nuclear
 weapons''.
 (8) The plan of the Department of Energy to
 maintain the safety and reliability of the United
 States nuclear weapons stockpile is known as the
 Stockpile Stewardship and Management Program. The
 ability of the United States to maintain and certify
 the safety, security, effectiveness, and reliability of
 the nuclear weapons stockpile without testing will
 require utilization of new and sophisticated
 computational capabilities and diagnostic technologies,
 methods, and procedures. Current diagnostic
 technologies and laboratory testing techniques are
 insufficient to certify the safety and reliability of
 the United States nuclear weapons stockpile into the
 future. Whereas in the past laboratory and diagnostic
 tools were used in conjunction with nuclear testing, in
 the future they will provide, under the Department of
 Energy's stockpile stewardshipplan, the sole basis for
assessing past test data and for making judgments on phenomena observed
in connection with the aging of the stockpile.
 (9) Section 3159 of the National Defense
 Authorization Act for Fiscal Year 1997 (Public Law 104-
 201; 42 U.S.C. 7274o) requires that the directors of
 the nuclear weapons laboratories and the nuclear
 weapons production plants submit a report to the
 Assistant Secretary of Energy for Defense Programs if
 they identify a problem that has significant bearing on
 confidence in the safety or reliability of a nuclear
 weapon or nuclear weapon type, that the Assistant
 Secretary must transmit that report, along with any
 comments, to the congressional defense committees and
 to the Secretary of Energy and the Secretary of
 Defense, and that the Joint Nuclear Weapons Council
 advise Congress regarding its analysis of any such
 problems.
 (10) On August 11, 1995, President Clinton directed
 ``the establishment of a new annual reporting and
 certification requirement [to] ensure that our nuclear
 weapons remain safe and reliable under a comprehensive
 test ban''.
 (11) On the same day, the President noted that the
 Secretary of Defense and the Secretary of Energy have
 the responsibility, after being ``advised by the
 Nuclear Weapons Council, the Directors of DOE's nuclear
 weapons laboratories, and the Commander of United
 States Strategic Command'', to provide the President
 with the information regarding the certification
 referred to in paragraph (10).
 (12) The Joint Nuclear Weapons Council established
 by section 179 of title 10, United States Code, is
 responsible for providing advice to the Secretary of
 Energy and Secretary of Defense regarding nuclear
 weapons issues, including ``considering safety,
 security, and control issues for existing weapons''.
 The Council plays a critical role in advising Congress
 in matters relating to nuclear weapons.
 (13) It is essential that the President receive
 well-informed, objective, and honest opinions,
 including dissenting views, from his advisers and
 technical experts regarding the safety, security,
 effectiveness, and reliability of the nuclear weapons
 stockpile.
 (b) Policy.--
 (1) In general.--It is the policy of the United
 States--
 (A) to maintain a safe, secure, effective,
 and reliable nuclear weapons stockpile; and
 (B) as long as other nations control or
 actively seek to acquire nuclear weapons, to
 retain a credible nuclear deterrent.
 (2) Nuclear weapons stockpile.--It is in the
 security interest of the United States to sustain the
 United States nuclear weapons stockpile through a
 program of stockpile stewardship, carried out at the
 nuclear weapons laboratories and nuclear weapons
 production plants.
 (3) Sense of Congress.--It is the sense of Congress
 that--
 (A) the United States should retain a triad
 of strategic nuclear forces sufficient to deter
 any future hostile foreign leadership with
 access to strategic nuclear forces from acting
 against the vital interests of the United
 States;
 (B) the United States should continue to
 maintain nuclear forces of sufficient size and
 capability to implement an effective and robust
 deterrent strategy; and
 (C) the advice of the persons required to
 provide the President and Congress with
 assurances of the safety, security,
 effectiveness, and reliability of the nuclear
 weapons force should be scientifically based,
 without regard for politics, and of the highest
 quality and integrity.
 (c) Addition of President to Recipients of Reports by Heads
of Laboratories and Plants.--Section 3159(b) of the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201; 42 U.S.C. 7274o) is amended--
 (1) by striking out ``committees and'' and
 inserting in lieu thereof ``committees,''; and
 (2) by inserting before the period at the end the
 following: ``, and to the President''.
 (d) Ten-Day Time Limit for Transmittal of Report.--Section
3159(b) of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 42 U.S.C. 7274o) is amended by
striking out ``As soon as practicable'' and inserting in lieu
thereof ``Not later than 10 days''.
 (e) Advice and Opinions Regarding Nuclear Weapons
Stockpile.--In addition to a director of a nuclear weapons
laboratory or a nuclear weapons production plant (under section
3159 of the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104-201; 42 U.S.C. 7274o)), any member of the
Joint Nuclear Weapons Council or the commander of the United
States Strategic Command may also submit to the President, the
Secretary of Defense, the Secretary of Energy, or the
congressional defense committees advice or opinion regarding
the safety, security, effectiveness, and reliability of the
nuclear weapons stockpile.
 (f) Expression of Individual Views.--A representative of
the President may not take any action against, or otherwise
constrain, a director of a nuclear weapons laboratory or a
nuclear weapons production plant, a member of the Joint Nuclear
Weapons Council, or the Commander of United States Strategic
Command for presenting individual views to the President, the
National Security Council, or Congress regarding the safety,
security, effectiveness, and reliability of the nuclear weapons
stockpile.
 (g) Definitions.--In this section:
 (1) The term ``representative of the President''
 means the following:
 (A) Any official of the Department of
 Defense or the Department of Energy who is
 appointed by the President and confirmed by the
 Senate.
 (B) Any member of the National Security
 Council.
 (C) Any member of the Joint Chiefs of
 Staff.
 (D) Any official of the Office of
 Management and Budget.
 (2) The term ``nuclear weapons laboratory'' means
 any of the following:
 (A) Lawrence Livermore National Laboratory,
 California.
 (B) Los Alamos National Laboratory, New
 Mexico.
 (C) Sandia National Laboratories.
 (3) The term ``nuclear weapons production plant''
 means any of the following:
 (A) The Pantex Plant, Texas.
 (B) The Savannah River Site, South
 Carolina.
 (C) The Kansas City Plant, Missouri.
 (D) The Y-12 Plant, Oak Ridge, Tennessee.

SEC. 1306. RECONSTITUTION OF COMMISSION TO ASSESS THE BALLISTIC MISSILE
 THREAT TO THE UNITED STATES.

 (a) Initial Organization Requirements.--Section 1321(g) of
the National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201; 110 Stat. 2712) is amended--
 (1) in paragraph (1), by striking out ``not later
 than 45 days after the date of the enactment of this
 Act'' and inserting in lieu thereof ``not later than 30
 days after the date of the enactment of the National
 Defense Authorization Act for Fiscal Year 1998''; and
 (2) in paragraph (2)--
 (A) by striking out ``30 days'' and
 inserting in lieu thereof ``60 days''; and
 (B) by striking out ``, but not earlier
 than October 15, 1996''.
 (b) Funding.--Section 1328 of such Act (110 Stat. 2714) is
amended by inserting ``and fiscal year 1998'' after ``for
fiscal year 1997''.

SEC. 1307. SENSE OF CONGRESS REGARDING THE RELATIONSHIP BETWEEN UNITED
 STATES OBLIGATIONS UNDER THE CHEMICAL WEAPONS
 CONVENTION AND ENVIRONMENTAL LAWS.

 (a) Findings.--Congress makes the following findings:
 (1) The Chemical Weapons Convention requires the
 destruction of the United States stockpile of lethal
 chemical agents and munitions by April 29, 2007 (not
 later than 10 years after the Convention's entry into
 force).
 (2) The President has substantial authority under
 existing law to ensure that--
 (A) the technologies necessary to destroy
 the stockpile are developed;
 (B) the facilities necessary to destroy the
 stockpile are constructed; and
 (C) Federal, State, and local environmental
 laws and regulations do not impair the ability
 of the United States to comply with its
 obligations under the Convention.
 (3) The Comptroller General has concluded (in GAO
 Report NSIAD 97018 of February 1997) that--
 (A) obtaining the necessary Federal and
 State permits that are required under Federal
 environmental laws and regulations for building
 and operating the chemical agents and munitions
 destruction facilities is among the most
 unpredictable factors in the chemical
 demilitarization program; and
 (B) program cost and schedule are largely
 driven by the degree to which States and local
 communities are in agreement with proposed
 disposal methods and whether those methods meet
 environmental concerns.
 (b) Sense of Congress.--It is the sense of Congress that
the President--
 (1) should use the authority of the President under
 existing law to ensure that the United States is able
 to construct and operate the facilities necessary to
 destroy the United States stockpile of lethal chemical
 agents and munitionswithin the time allowed by the
Chemical Weapons Convention; and
 (2) while carrying out the obligations of the
 United States under the Convention, should encourage
 negotiations between appropriate Federal officials and
 officials of the State and local governments concerned
 to attempt to meet their concerns regarding compliance
 with Federal and State environmental laws and
 regulations and other concerns about the actions being
 taken to carry out those obligations.
 (c) Chemical Weapons Convention Defined.--For the purposes
of this section, the terms ``Chemical Weapons Convention'' and
``Convention'' mean the Convention on the Prohibition of the
Development, Production, Stockpiling and Use of Chemical
Weapons and on Their Destruction, ratified by the United States
on April 25, 1997, and entered into force on April 29, 1997.

SEC. 1308. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR SUPPORT OF
 UNITED NATIONS SPECIAL COMMISSION ON IRAQ.

 Section 1505 of the Weapons of Mass Destruction Control Act
of 1992 (title XV of Public Law 102-484; 22 U.S.C. 5859a) is
amended--
 (1) in subsection (d)(3), by striking out ``or''
 after ``fiscal year 1996,'' and by inserting ``, or
 $15,000,000 for fiscal year 1998'' before the period at
 the end; and
 (2) in subsection (f), by striking out ``1997'' and
 inserting in lieu thereof ``1998''.

SEC. 1309. ANNUAL REPORT ON MORATORIUM ON USE BY ARMED FORCES OF
 ANTIPERSONNEL LANDMINES.

 (a) Findings.--Congress makes the following findings:
 (1) The United States has stated its support for a
 ban on antipersonnel landmines that is global in scope
 and verifiable.
 (2) On May 16, 1996, the President announced that
 the United States, as a matter of policy, would
 eliminate its stockpile of non-self-destructing
 antipersonnel landmines, except those used for training
 purposes and in Korea, and that the United States would
 reserve the right to use self-destructing antipersonnel
 landmines in the event of conflict.
 (3) On May 16, 1996, the President also announced
 that the United States would lead an effort to
 negotiate an international treaty permanently banning
 the use of all antipersonnel landmines.
 (4) The United States is currently participating at
 the United Nations Conference on Disarmament in
 negotiations aimed at achieving a global ban on the use
 of antipersonnel landmines.
 (5) On August 18, 1997, the administration agreed
 to participate in international negotiations sponsored
 by Canada (the so-called ``Ottawa process'') designed
 to achieve a treaty that would outlaw the production,
 use, and sale of antipersonnel landmines.
 (6) On September 17, 1997, the President announced
 that the United States would not sign the antipersonnel
 landmine treaty concluded in Oslo, Norway, by
 participants in the Ottawa process because the treaty
 would not provide a geographic exception to allow the
 United States to stockpile and use antipersonnel
 landmines in Korea or an exemption that would preserve
 the ability of the United States to use mixed antitank
 mine systems which could be used to deter an armored
 assault against United States forces.
 (7) The President also announced a change in United
 States policy whereby the United States--
 (A) would no longer deploy antipersonnel
 landmines, including self-destructing
 antipersonnel landmines, by 2003, except in
 Korea;
 (B) would seek to field alternatives by
 that date, or by 2006 in the case of Korea;
 (C) would undertake a new initiative in the
 United Nations Conference on Disarmament to
 establish aglobal ban on the transfer of
antipersonnel landmines; and
 (D) would increase its current humanitarian
 demining activities around the world.
 (8) The President's decision would allow the
 continued use by United States forces of self-
 destructing antipersonnel landmines that are used as
 part of a mixed antitank mine system.
 (9) Under existing law (as provided in section 580
 of Public Law 104-107; 110 Sat 751), on February 12,
 1999, the United States will implement a one-year
 moratorium on the use of antipersonnel landmines by
 United States forces except along internationally
 recognized national borders or in demilitarized zones
 within a perimeter marked area that is monitored by
 military personnel and protected by adequate means to
 ensure the exclusion of civilians.
 (b) Sense of Congress.--It is the sense of Congress that--
 (1) the United States should not implement a
 moratorium on the use of antipersonnel landmines by
 United States Armed Forces in a manner that would
 endanger United States personnel or undermine the
 military effectiveness of United States Armed Forces in
 executing their missions; and
 (2) the United States should pursue the development
 of alternatives to self-destructing antipersonnel
 landmines.
 (c) Annual Report.--Not later than December 31 each year,
the Secretary of Defense shall submit to the congressional
defense committees a report concerning antipersonnel landmines.
Each such report shall include the Secretary's description of
the following:
 (1) The military utility of the continued
 deployment and use by the United States of
 antipersonnel landmines.
 (2) The effect of a moratorium on the production,
 stockpiling, and use of antipersonnel landmines on the
 ability of United States forces to deter and defend
 against attack on land by hostile forces, including on
 the Korean peninsula.
 (3) Progress in developing and fielding systems
 that are effective substitutes for antipersonnel
 landmines, including an identification and description
 of the types of systems that are being developed and
 fielded, the costs associated with those systems, and
 the estimated timetable for developing and fielding
 those systems.
 (4) The effect of a moratorium on the use of
 antipersonnel landmines on the military effectiveness
 of current antitank mine systems.
 (5) The number and type of pure antipersonnel
 landmines that remain in the United States inventory
 and that are subject to elimination under the
 President's September 17, 1997, declaration on United
 States antipersonnel landmine policy.
 (6) The number and type of mixed antitank mine
 systems that are in the United States inventory, the
 locations where they are deployed, and their effect on
 the deterrence and warfighting ability of United States
 Armed Forces.
 (7) The effect of the elimination of pure
 antipersonnel landmines on the warfighting
 effectiveness of the United States Armed Forces.
 (8) The costs already incurred and anticipated of
 eliminating antipersonnel landmines from the United
 States inventory in accordance with the policy
 enunciated by the President on September 17, 1997.
 (9) The benefits that would result to United States
 military and civilian personnel from an international
 treaty banning the production, use, transfer, and
 stockpiling of antipersonnel landmines.

 TITLE XIV--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET
 UNION

Sec. 1401. Specification of Cooperative Threat Reduction programs and
 funds.
Sec. 1402. Funding allocations.
Sec. 1403. Prohibition on use of funds for specified purposes.
Sec. 1404. Limitation on use of funds for projects related to START II
 Treaty until submission of certification.
Sec. 1405. Limitation on use of funds for chemical weapons destruction
 facility.
Sec. 1406. Limitation on use of funds for destruction of chemical
 weapons.
Sec. 1407. Limitation on use of funds for storage facility for Russian
 fissile material.
Sec. 1408. Limitation on use of funds for weapons storage security.
Sec. 1409. Report on issues regarding payment of taxes, duties, and
 other assessments on assistance provided to Russia under
 Cooperative Threat Reduction programs.
Sec. 1410. Availability of funds.

SEC. 1401. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
 FUNDS.

 (a) Specification of CTR Programs.--For purposes of section
301 and other provisions of this Act, Cooperative Threat
Reduction programs are the programs specified in section
1501(b) of the National Defense Authorization Act for fiscal
year 1997 (Public Law 104-201: 110 Stat. 2731; 50 U.S.C. 2362
note).
 (b) Fiscal Year 1998 Cooperative Threat Reduction Funds
Defined.--As used in this title, the term ``fiscal year 1998
Cooperative Threat Reduction funds'' means the funds
appropriated pursuant to the authorization of appropriations in
section 301 for Cooperative Threat Reduction programs.

SEC. 1402. FUNDING ALLOCATIONS.

 (a) In General.--Of the fiscal year 1998 Cooperative Threat
Reduction funds, not more than the following amounts may be
obligated for the purposes specified:
 (1) For strategic offensive arms elimination in
 Russia, $77,900,000.
 (2) For strategic nuclear arms elimination in
 Ukraine, $76,700,000.
 (3) For fissile material containers in Russia,
 $7,000,000.
 (4) For planning and design of a chemical weapons
 destruction facility in Russia, $35,400,000.
 (5) For dismantlement of biological and chemical
 weapons facilities in the former Soviet Union,
 $20,000,000.
 (6) For planning, design, and construction of a
 storage facility for Russian fissile material,
 $57,700,000.
 (7) For weapons storage security in Russia,
 $36,000,000.
 (8) For development of a cooperative program with
 the Government of Russia to eliminate the production of
 weapons grade plutonium at Russian reactors,
 $41,000,000.
 (9) For activities designated as Defense and
 Military-to-Military Contacts in Russia, Ukraine, and
 Kazakhstan, $8,000,000.
 (10) For military-to-military programs of the
 United States that focus on countering the threat of
 proliferation of weapons of mass destruction and that
 include the security forces of the independent states
 of the former Soviet Union other than Russia, Ukraine,
 Belarus, and Kazakstan, $2,000,000.
 (11) For activities designated as Other
 Assessments/Administrative Support $20,500,000.
 (b) Limited Authority To Vary Individual Amounts.--(1) If
the Secretary of Defense determines that it is necessary to do
so in the national interest, the Secretary may, subject to
paragraphs (2) and (3), obligate amounts for the purposes
stated in any of the paragraphs of subsection (a) in excess of
the amount specified for those purposes in that paragraph.
However, the total amount obligated for the purposes stated in
the paragraphs in subsection (a) may not by reason of the use
of the authority provided in the preceding sentence exceed the
sum of the amounts specified in those paragraphs.
 (2) An obligation for the purposes stated in any of the
paragraphs in subsection (a) in excess of the amount
specifiedin that paragraph may be made using the authority provided in
paragraph (1) only after--
 (A) the Secretary submits to Congress notification
 of the intent to do so together with a complete
 discussion of the justification for doing so; and
 (B) 15 days have elapsed following the date of the
 notification.
 (3) The Secretary may not, under the authority provided in
paragraph (1), obligate amounts appropriated for the purposes
stated in any of paragraphs (3) through (11) of subsection (a)
in excess of 115 percent of the amount stated in those
paragraphs.
 (c) Limited Waiver of 115 Percent Cap on Obligation in
Excess of Amounts Authorized for Fiscal Years 1996 and 1997.--
(1) The limitation in subsection (b)(1) of section 1202 of the
National Defense Authorization Act For Fiscal Year 1996 (Public
Law 104-106; 110 Stat. 469), that provides that the authority
provided in that sentence to obligate amounts specified for
Cooperative Threat Reduction purposes in excess of the amount
specified for each such purpose in subsection (a) of that
section may not exceed 115 percent of the amounts specified,
shall not apply with respect to subsection (a)(1) of such
section for purposes of strategic offensive weapons elimination
in Russia or the Ukraine.
 (2) The limitation in subsection (b)(1) of section 1502 of
the National Defense Authorization Act For Fiscal Year 1997
(Public Law 104-201; 110 Stat. 2732), that provides that the
authority provided in that sentence to obligate amounts
specified for Cooperative Threat Reduction purposes in excess
of the amount specified for each such purpose in subsection (a)
of that section may not exceed 115 percent of the amounts
specified, shall not apply with respect to subsections (a)(2)
and (a)(3) of such section.

SEC. 1403. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

 (a) In General.--No fiscal year 1998 Cooperative Threat
Reduction funds, and no funds appropriated for Cooperative
Threat Reduction programs for any prior fiscal year and
remaining available for obligation, may be obligated or
expended for any of the following purposes:
 (1) Conducting with Russia any peacekeeping
 exercise or other peacekeeping-related activity.
 (2) Provision of housing.
 (3) Provision of assistance to promote
 environmental restoration.
 (4) Provision of assistance to promote job
 retraining.
 (b) Limitation With Respect to Defense Conversion
Assistance.--None of the funds appropriated pursuant to this
Act may be obligated or expended for the provision of
assistance to Russia or any other state of the former Soviet
Union to promote defense conversion.

SEC. 1404. LIMITATION ON USE OF FUNDS FOR PROJECTS RELATED TO START II
 TREATY UNTIL SUBMISSION OF CERTIFICATION.

 No fiscal year 1998 Cooperative Threat Reduction funds may
be obligated or expended for strategic offensive arms
elimination projects in Russia related to the START II Treaty
(as defined in section 1302(f)) until 30 days after the date on
which the Secretary of Defense submits to Congress a
certification in writing that--
 (1) implementation of the projects would benefit
 the national security interest of the United States;
 and
 (2) Russia has agreed in an implementing agreement
 to share the cost for the projects.

SEC. 1405. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION
 FACILITY.

 (a) Limitation on Use of Funds Until Submission of
Notifications to Congress.--No fiscal year 1998 Cooperative
Threat Reduction funds may be obligated or expended for
planning and design of a chemical weapons destruction facility
until 15 days after the date that is the later of the
following:
 (1) The date on which the Secretary of Defense
 submits to Congress notification of an agreement
 between the United States and Russia with respect to
 such chemical weapons destruction facility that
 includes--
 (A) an agreement providing for a limitation
 on the financial contribution by the United
 States for the facility;
 (B) an agreement that the United States
 will not pay the costs for infrastructure
 determined by Russia to be necessary to support
 the facility; and
 (C) an agreement on the location of the
 facility.
 (2) The date on which the Secretary of Defense
 submits to Congress notification that the Government of
 Russia has formally approved a plan--
 (A) that allows for the destruction of
 chemical weapons in Russia; and
 (B) that commits Russia to pay a portion of
 the cost for the facility.
 (b) Prohibition on Use of Funds for Facility
Construction.--No fiscal year 1998 Cooperative Threat Reduction
funds authorized to be obligated in section 1402(a)(4) for
planning and design of a chemical weapons destruction facility
in Russia may be used for construction of such facility.

SEC. 1406. LIMITATION ON USE OF FUNDS FOR DESTRUCTION OF CHEMICAL
 WEAPONS.

 (a) Limitation.--No funds authorized to be appropriated
under this or any other Act for fiscal year 1998 for
Cooperative Threat Reduction programs may be obligated or
expended for chemical weapons destruction activities (including
activities for the planning, design, or construction of a
chemical weapons destruction facility or for the dismantlement
of an existing chemical weapons production facility) until the
President submits to Congress a written certification under
subsection (b).
 (b) Presidential Certification.--A certification under this
subsection is either of the following certifications by the
President:
 (1) A certification that--
 (A) Russia is making reasonable progress
 toward the implementation of the Bilateral
 Destruction Agreement;
 (B) the United States and Russia have made
 substantial progress toward the resolution, to
 the satisfaction of the United States, of
 outstanding compliance issues under the Wyoming
 Memorandum of Understanding and the Bilateral
 Destruction Agreement; and
 (C) Russia has fully and accurately
 declared all information regarding its unitary
 and binary chemical weapons, chemical weapons
 facilities, and other facilities associated
 with chemical weapons.
 (2) A certification that the national security
 interests of the United States could be undermined by a
 United States policy not to carry out chemical weapons
 destruction activities under the Cooperative Threat
 Reduction programs for which funds are authorized to be
 appropriated under this or any other Act for fiscal
 year 1998.
 (c) Definitions.--For the purposes of this section:
 (1) The term ``Bilateral Destruction Agreement''
 means the Agreement Between the United States of
 America and the Union of Soviet Socialist Republics on
 Destruction and Nonproduction of Chemical Weapons and
 on Measures to Facilitate the Multilateral Convention
 on Banning Chemical Weapons, signed on June 1, 1990.
 (2) The term ``Wyoming Memorandum of
 Understanding'' means the Memorandum of Understanding
 Between the Government of the United States of America
 and the Government of the Union of Soviet Socialist
 Republics Regarding a Bilateral Verification Experiment
 and Data Exchange Related to Prohibition on Chemical
 Weapons, signed at Jackson Hole, Wyoming, on September
 23, 1989.

SEC. 1407. LIMITATION ON USE OF FUNDS FOR STORAGE FACILITY FOR RUSSIAN
 FISSILE MATERIAL.

 No fiscal year 1998 Cooperative Threat Reduction funds may
be obligated or expended for planning, design, or construction
of a storage facility for Russian fissile material until 15
days after the date that is the later of the following:
 (1) The date on which the Secretary of Defense
 submits to Congress notification that an implementing
 agreement between the United States and Russia has been
 entered into that specifies the total cost to the
 United States for the facility.
 (2) The date on which the Secretary submits to
 Congress notification that an agreement has been
 entered into between the United States and Russia
 incorporating the principle of transparency with
 respect to the use of the facility.

SEC. 1408. LIMITATION ON USE OF FUNDS FOR WEAPONS STORAGE SECURITY.

 No fiscal year 1998 Cooperative Threat Reduction funds
intended for weapons storage security activities in Russia may
be obligated or expended until--
 (1) the Secretary of Defense submits to Congress a
 report on the status of negotiations between the United
 States and Russia on audits and examinations with
 respect to weapons storage security; and
 (2) 15 days have elapsed following the date that
 the report is submitted.

SEC. 1409. REPORT ON ISSUES REGARDING PAYMENT OF TAXES, DUTIES, AND
 OTHER ASSESSMENTS ON ASSISTANCE PROVIDED TO RUSSIA
 UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

 Not later than 90 days after the date of the enactment of
this Act, the Secretary of Defense shall submit to Congress a
report on issues regarding payment of taxes, duties, and other
assessments on assistance provided to Russia under Cooperative
Threat Reduction programs. The report shall include the
following:
 (1) A description of any disputes between the
 United States and Russia with respect to payment by the
 United States of taxes, duties and other assessments on
 assistance provided to Russia under a Cooperative
 Threat Reductionprogram, including a description of the
nature of each dispute, the amount of payment disputed, whether the
dispute was resolved, and if the dispute was resolved, the means by
which the dispute was resolved.
 (2) A description of the actions taken by the
 Secretary to prevent disputes in the future between the
 United States and Russia with respect to payment by the
 United States of taxes, duties, and other assessments
 on assistance provided to Russia under a Cooperative
 Threat Reduction program.
 (3) A description of any agreement between the
 United States and Russia with respect to payment by the
 United States of taxes, duties, or other assessments on
 assistance provided to Russia under a Cooperative
 Threat Reduction program.
 (4) Any proposals of the Secretary for actions that
 should be taken to prevent disputes between the United
 States and Russia with respect to payment by the United
 States of taxes, duties, or other assessments on
 assistance provided to Russia under a Cooperative
 Threat Reduction program.

SEC. 1410. AVAILABILITY OF FUNDS.

 Funds appropriated pursuant to the authorization of
appropriations in section 301 for Cooperative Threat Reduction
programs shall be available for obligation for three fiscal
years.

 TITLE XV--FEDERAL CHARTER FOR THE AIR FORCE SERGEANTS ASSOCIATION

Sec. 1501. Recognition and grant of Federal charter.
Sec. 1502. Powers.
Sec. 1503. Purposes.
Sec. 1504. Service of process.
Sec. 1505. Membership.
Sec. 1506. Board of directors.
Sec. 1507. Officers.
Sec. 1508. Restrictions.
Sec. 1509. Liability.
Sec. 1510. Maintenance and inspection of books and records.
Sec. 1511. Audit of financial transactions.
Sec. 1512. Annual report.
Sec. 1513. Reservation of right to alter, amend, or repeal charter.
Sec. 1514. Tax-exempt status required as condition of charter.
Sec. 1515. Termination.
Sec. 1516. Definition of State.

SEC. 1501. RECOGNITION AND GRANT OF FEDERAL CHARTER.

 The Air Force Sergeants Association, a nonprofit
corporation organized under the laws of the District of
Columbia, is recognized as such and granted a Federal charter.

SEC. 1502. POWERS.

 The Air Force Sergeants Association (in this title referred
to as the ``association'') shall have only those powers granted
to it through its bylaws and articles of incorporation filed in
the District of Columbia and subject to the laws of the
District of Columbia.

SEC. 1503. PURPOSES.

 The purposes of the association are those provided in its
bylaws and articles of incorporation and shall include the
following:
 (1) To help maintain a highly dedicated and
 professional corps of enlisted personnel within the
 United States Air Force, including the United States
 Air Force Reserve, and the Air National Guard.
 (2) To support fair and equitable legislation and
 Department of the Air Force policies and to influence
 by lawful means departmental plans, programs, policies,
 and legislative proposals that affect enlisted
 personnel of the Regular Air Force, the Air Force
 Reserve, and the Air National Guard, its retirees, and
 other veterans of enlisted service in the Air Force.
 (3) To actively publicize the roles of enlisted
 personnel in the United States Air Force.
 (4) To participate in civil and military
 activities, youth programs, and fundraising campaigns
 that benefit the United States Air Force.
 (5) To provide for the mutual welfare of members of
 the association and their families.
 (6) To assist in recruiting for the United States
 Air Force.
 (7) To assemble together for social activities.
 (8) To maintain an adequate Air Force for our
 beloved country.
 (9) To foster among the members of the association
 a devotion to fellow airmen.
 (10) To serve the United States and the United
 States Air Force loyally, and to do all else necessary
 to uphold and defend the Constitution of the United
 States.

SEC. 1504. SERVICE OF PROCESS.

 With respect to service of process, the association shall
comply with the laws of the District of Columbia and those
States in which it carries on its activities in furtherance of
its corporate purposes.

SEC. 1505. MEMBERSHIP.

 Except as provided in section 1508(g), eligibility for
membership in the association and the rights and privileges of
members shall be as provided in the bylaws and articles of
incorporation of the association.

SEC. 1506. BOARD OF DIRECTORS.

 Except as provided in section 1508(g), the composition of
the board of directors of the association and the
responsibilities of the board shall be as provided in the
bylaws and articles of incorporation of the association and in
conformity with the laws of the District of Columbia.

SEC. 1507. OFFICERS.

 Except as provided in section 1508(g), the positions of
officers of the association and the election of members to such
positions shall be as provided in the bylaws and articles of
incorporation of the association and in conformity with the
laws of the District of Columbia.

SEC. 1508. RESTRICTIONS.

 (a) Income and Compensation.--No part of the income or
assets of the association may inure to the benefit of any
member, officer, or director of the association or be
distributed to any such individual during the life of this
charter. Nothing in this subsection may be construed to prevent
the payment of reasonable compensation to the officers and
employees of the association or reimbursement for actual and
necessary expenses in amounts approved by the board of
directors.
 (b) Loans.--The association may not make any loan to any
member, officer, director, or employee of the association.
 (c) Issuance of Stock and Payment of Dividends.--The
association may not issue any shares of stock or declare or pay
any dividends.
 (d) Disclaimer of Congressional or Federal Approval.--The
association may not claim the approval of the Congress or the
authorization of the Federal Government for any of its
activities by virtue of this title.
 (e) Corporate Status.--The association shall maintain its
status as a corporation organized and incorporated under the
laws of the District of Columbia.
 (f) Corporate Function.--The association shall function as
an educational, patriotic, civic, historical, and research
organization under the laws of the District of Columbia.
 (g) Nondiscrimination.--In establishing the conditions of
membership in the association and in determining the
requirements for serving on the board of directors or as an
officer of the association, the association may not
discriminate on the basis of race, color, religion, sex,
handicap, age, or national origin.

SEC. 1509. LIABILITY.

 The association shall be liable for the acts of its
officers, directors, employees, and agents whenever such
individuals act within the scope of their authority.

SEC. 1510. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

 (a) Books and Records of Account.--The association shall
keep correct and complete books and records of account and
minutes of any proceeding of the association involving any of
its members, the board of directors, or any committee having
authority under the board of directors.
 (b) Names and Addresses of Members.--The association shall
keep at its principal office a record of the names and
addresses of all members having the right to vote in any
proceeding of the association.
 (c) Right to Inspect Books and Records.--All books and
records of the association may be inspected by any member
having the right to vote in any proceeding of the association,
or by any agent or attorney of such member, for any proper
purpose at any reasonable time.
 (d) Application of State Law.--This section may not be
construed to contravene any applicable State law.

SEC. 1511. AUDIT OF FINANCIAL TRANSACTIONS.

 The first section of the Act entitled ``An Act to provide
for audit of accounts of private corporations established under
Federal law'', approved August 30, 1964 (36 U.S.C. 1101), is
amended--
 (1) by redesignating the paragraph (77) added by
 section 1811 of Public Law 104-201 (110 Stat. 2762) as
 paragraph (78); and
 (2) by adding at the end the following:
 ``(79) Air Force Sergeants Association.''.

SEC. 1512. ANNUAL REPORT.

 The association shall annually submit to Congress a report
concerning the activities of the association during the
preceding fiscal year. The annual report shall be submitted on
the same date as the report of the audit required by reason of
the amendment made in section 1511. The annual report shall not
be printed as a public document.

SEC. 1513. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.

 The right to alter, amend, or repeal this title is
expressly reserved to Congress.

SEC. 1514. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.

 If the association fails to maintain its status as an
organization exempt from taxation as provided in the Internal
Revenue Code of 1986 the charter granted in this title shall
terminate.

SEC. 1515. TERMINATION.

 The charter granted in this title shall expire if the
association fails to comply with any of the provisions of this
title.

SEC. 1516. DEFINITION OF STATE.

 For purposes of this title, the term ``State'' includes the
District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, and the
territories and possessions of the United States.

 DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

 This division may be cited as the ``Military Construction
Authorization Act for Fiscal Year 1998''.

 TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Correction in authorized uses of funds, Fort Irwin,
 California.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

 (a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(1), the Secretary of the Army may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

 Army: Inside the United States
------------------------------------------------------------------------
 Installation or
 State Location Amount
------------------------------------------------------------------------
Alabama........................ Redstone Arsenal....... $27,000,000
Arizona........................ Fort Huachuca.......... $20,000,000
California..................... Fort Irwin............. $11,150,000
 Naval Weapons Station, $23,000,000
 Concord.
Colorado....................... Fort Carson............ $47,300,000
Georgia........................ Fort Gordon............ $22,000,000
 Hunter Army Air Field,
 Fort Stewart.......... $54,000,000
Hawaii......................... Schofield Barracks..... $44,000,000
Indiana........................ Crane Army Ammunition $7,700,000
 Activity.
Kansas......................... Fort Leavenworth....... $63,000,000
 Fort Riley............. $25,800,000
Kentucky....................... Fort Campbell.......... $53,600,000
 Fort Knox.............. $7,200,000
Missouri....................... Fort Leonard Wood...... $3,200,000
New Jersey..................... Fort Monmouth.......... $2,050,000
New Mexico..................... White Sands Missile $6,900,000
 Range.
New York....................... Fort Drum.............. $24,400,000
North Carolina................. Fort Bragg............. $17,700,000
Oklahoma....................... Fort Sill.............. $25,000,000
South Carolina................. Naval Weapons Station, $7,700,000
 Charleston.
Texas.......................... Fort Bliss............. $7,700,000
 Fort Hood.............. $27,200,000
 Fort Sam Houston....... $16,000,000
Virginia....................... Fort A.P. Hill......... $5,400,000
 Fort Myer.............. $8,200,000
 Fort Story............. $2,050,000
Washington..................... Fort Lewis............. $33,000,000
CONUS Classified............... Classified Location.... $6,500,000
 ---------------
 Total................ $598,750,000
------------------------------------------------------------------------

 (b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(2), the Secretary of the Army may acquire real property
and carry out military construction projects for the locations
outside the United States, and in the amounts, set forth in the
following table:

 Army: Outside the United States
------------------------------------------------------------------------
 Installation or
 Country Location Amount
------------------------------------------------------------------------
Germany........................ Ansbach................ $22,000,000
 Heidelberg............. $8,800,000
 Mannheim............... $6,200,000
 Military Support Group,
 Kaiserslautern........ $6,000,000
Korea.......................... Camp Casey............. $5,100,000
 Camp Castle............ $8,400,000
 Camp Humphreys......... $32,000,000
 Camp Red Cloud......... $23,600,000
 Camp Stanley........... $7,000,000
Overseas Classified............ Overseas Classified.... $37,000,000
 ---------------
 Total................ $156,100,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

 (a) Construction and Acquisition.--Using amounts
appropriated pursuant to authorization of appropriations in
section 2104(a)(5)(A), the Secretary of the Army may construct
or acquire family housing units (including land acquisition) at
the installations, for the purposes, and in the amounts set
forth in the following table:

 Army: Family Housing
----------------------------------------------------------------------------------------------------------------
 State Installation or Location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Arizona............................... Fort Huachuca............ 55 Units..................... $8,000,000
Hawaii................................ Schofield Barracks....... 132 Units.................... $26,600,000
Maryland.............................. Fort Meade............... 56 Units..................... $7,900,000
New Jersey............................ Picatinny Arsenal........ 35 Units..................... $7,300,000
North Carolina........................ Fort Bragg............... 174 Units.................... $20,150,000
Texas................................. Fort Bliss............... 91 Units..................... $12,900,000
 Fort Hood................ 130 Units.................... $18,800,000
 ---------------
 Total...................... $101,650,000
----------------------------------------------------------------------------------------------------------------

 (b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(5)(A), the Secretary of the Army may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
family housing units in an amount not to exceed $9,550,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

 Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in sections 2104(a)(5)(A), the Secretary of the
Army may improve existing military family housing units in an
amount not to exceed $86,100,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

 (a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1997, for military construction, land acquisition, and military
family housing functions of the Department of the Army in the
total amount of $2,010,466,000 as follows:
 (1) For military construction projects inside the
 United States authorized by section 2101(a),
 $435,350,000.
 (2) For the military construction projects outside
 the United States authorized by section 2101(b),
 $156,100,000.
 (3) For unspecified minor military construction
 projects authorized by section 2805 of title 10, United
 States Code, $7,400,000.
 (4) For architectural and engineering services and
 construction design under section 2807 of title 10,
 United States Code, $65,577,000.
 (5) For military family housing functions:
 (A) For construction and acquisition,
 planning and design, and improvement of
 military family housing and facilities,
 $197,300,000.
 (B) For support of military family housing
 (including the functions described in section
 2833 of title 10, United States Code),
 $1,145,339,000.
 (6) For the construction of the National Range
 Control Center, White Sands Missile Range, New Mexico,
 authorized by section 2101(a) of the Military
 Construction Authorization Act for Fiscal Year 1997
 (division B of Public Law 104-201; 110 Stat. 2763),
 $18,000,000.
 (7) For the construction of the whole barracks
 complex renewal, Fort Knox, Kentucky, authorized by
 section 2101(a) of the Military Construction
 Authorization Act for Fiscal Year 1997 (division B of
 Public Law 104-201; 110 Stat. 2763), $22,000,000.
 (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2101 of this Act may not exceed--
 (1) the total amount authorized to be appropriated
 under paragraphs (1) and (2) of subsection (a);
 (2) $14,400,000 (the balance of the amount
 authorized under section 2101(a) for the construction
 of the Force XXI Soldier Development School at Fort
 Hood, Texas);
 (3) $24,000,000 (the balance of the amount
 authorized under section 2101(a) for rail yard
 expansion at Fort Carson, Colorado);
 (4) $43,000,000 (the balance of the amount
 authorized under section 2101(a) for the construction
 of a disciplinary barracks at Fort Leavenworth,
 Kansas);
 (5) $42,500,000 (the balance of the amount
 authorized under section 2101(a) for the construction
 of a barracks at Hunter Army Airfield, Fort Stewart,
 Georgia);
 (6) $17,000,000 (the balance of the amount
 authorized under section 2101(a) for the construction
 of a barracks at Fort Sill, Oklahoma);
 (7) $14,000,000 (the balance of the amount
 authorized under section 2101(a) for the construction
 of a missile software engineering facility at Redstone
 Arsenal, Alabama); and
 (8) $8,500,000 (the balance of the amount
 authorized under section 2101(a) for the construction
 of an aerial gunnery range at Fort Drum, New York).
 (c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (7) of
subsection (a) is the sum of the amounts authorized in such
paragraphs, reduced by $36,600,000, which represents the
combination of savings resulting from adjustments to foreign
currency exchange rates for military construction projects and
the support of military family housing outside the United
States.

SEC. 2105. CORRECTION IN AUTHORIZED USES OF FUNDS, FORT IRWIN,
 CALIFORNIA.

 The Secretary of the Army may carry out a military
construction project at Fort Irwin, California, to construct a
heliport for the National Training Center at Barstow-Daggett,
California, using the following amounts:
 (1) Amounts appropriated pursuant to the
 authorization of appropriations in section 2104(a)(1)
 of the Military Construction Authorization Act for
 Fiscal Year 1995 (division B of Public Law 103-337; 108
 Stat. 3029) for a military construction project
 involving the construction of an air field at Fort
 Irwin, as authorized by section 2101(a) of such Act
 (108 Stat. 3027).
 (2) Amounts appropriated pursuant to the
 authorization of appropriations in section 2104(a)(1)
 of the Military Construction Authorization Act for
 Fiscal Year 1996 (division B of Public Law 104-106; 110
 Stat. 524) for a military construction project
 involving the construction of an air field at Fort
 Irwin, as authorized by section 2101(a) of such Act
 (110 Stat. 523).

 TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization of military construction project at Naval
 Station, Pascagoula, Mississippi, for which funds have been
 appropriated.
Sec. 2206. Increase in authorization for military construction projects
 at Naval Station Roosevelt Roads, Puerto Rico.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

 (a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), the Secretary of the Navy may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

 Navy: Inside the United States
------------------------------------------------------------------------
 Installation or
 State Location Amount
------------------------------------------------------------------------
Arizona........................ Marine Corps Air
 Station, Yuma......... $12,250,000
 Navy Detachment, Camp
 Navajo................ $11,426,000
California..................... Marine Corps Air
 Station, Camp
 Pendleton............. $14,020,000
 Marine Corps Air
 Station, Miramar...... $8,700,000
 Marine Corps Air-Ground
 Combat Center,
 Twentynine Palms...... $3,810,000
 Marine Corps Base, Camp
 Pendleton............. $60,069,000
 Naval Air Facility, El
 Centro................ $11,000,000
 Naval Air Station,
 North Island.......... $19,600,000
 Naval Amphibious Base,
 Coronado.............. $10,100,000
 Naval Construction
 Battalion Center, Port
 Hueneme............... $3,200,000
Connecticut.................... Naval Submarine Base,
 New London............ $21,960,000
Florida........................ Naval Air Station,
 Jacksonville.......... $3,480,000
 Naval Air Station, $1,300,000
 Whiting Field.
 Naval Station, Mayport. $17,940,000
Hawaii......................... Fort DeRussey.......... $9,500,000
 Marine Corps Air
 Station, Kaneohe Bay.. $19,000,000
 Naval Communications
 and Telecommunications
 Area Master Station
 Eastern Pacific,
 Honolulu.............. $3,900,000
 Naval Station, Pearl $25,000,000
 Harbor.
Illinois....................... Naval Training Center,
 Great Lakes........... $41,220,000
Indiana........................ Naval Surface Warfare
 Center, Crane......... $4,120,000
Maryland....................... Naval Electronics
 System Command, St.
 Ingoes................ $2,610,000
Mississippi.................... Naval Air Station,
 Meridian.............. $7,050,000
North Carolina................. Marine Corps Air
 Station, Cherry Point. $8,800,000
 Marine Corps Air
 Station, New River.... $19,900,000
Rhode Island................... Naval Undersea Warfare
 Center Division,
 Newport............... $8,900,000
South Carolina................. Marine Corps Air
 Station, Beaufort..... $17,730,000
 Marine Corps Reserve
 Detachment Parris
 Island................ $3,200,000
Texas.......................... Naval Air Station,
 Corpus Christi........ $800,000
Virginia....................... AEGIS Training Center, $6,600,000
 Dahlgren.
 Fleet Combat Training
 Center, Dam Neck...... $7,000,000
 Naval Air Station,
 Norfolk............... $18,240,000
 Naval Air Station, $28,000,000
 Oceana.
 Naval Amphibious Base,
 Little Creek.......... $8,685,000
 Naval Shipyard,
 Norfolk, Portsmouth... $29,410,000
 Naval Station, Norfolk. $18,850,000
 Naval Surface Warfare
 Center, Dahlgren...... $13,880,000
 Naval Weapons Station,
 Yorktown.............. $14,547,000
Washington..................... Naval Air Station, $1,100,000
 Whidbey Island.
 Puget Sound Naval
 Shipyard, Bremerton... $4,400,000
 ---------------
 Total................ $521,297,000
------------------------------------------------------------------------

 (b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(2), the Secretary of the Navy may acquire real property
and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

 Navy: Outside the United States
------------------------------------------------------------------------
 Installation or
 Country Location Amount
------------------------------------------------------------------------
Bahrain........................ Administrative Support
 Unit, Bahrain......... $30,100,000
Guam........................... Naval Communications
 and Telecommunications
 Area Master Station
 Western Pacific, Guam. $4,050,000
Italy.......................... Naval Air Station, $21,440,000
 Sigonella.
 Naval Support Activity, $8,200,000
 Naples.
United Kingdom................. Joint Maritime
 Communications Center,
 St. Mawgan............ $2,330,000
 ---------------
 Total................ $66,120,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

 (a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2204(a)(5)(A), the Secretary of the Navy may construct
or acquire family housing units (including land acquisition) at
the installations, for the purposes, and in the amounts set
forth in the following table:

 Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
 State Installation or Location Purpose Amount
----------------------------------------------------------------------------------------------------------------
California............................ Marine Corps Air Station,
 Miramar................. 166 Units.................... $28,881,000
 Marine Corps Air-Ground
 Combat Center,
 Twentynine Palms........ 132 Units.................... $23,891,000
 Marine Corps Base, Camp
 Pendleton............... 171 Units.................... $22,518,000
 Naval Air Station,
 Lemoore................. 128 Units.................... $23,226,000
 Naval Complex, San Diego. 94 Units..................... $13,500,000
Hawaii................................ Naval Complex, Pearl
 Harbor.................. 72 Units..................... $13,000,000
Louisiana............................. Naval Complex, New
 Orleans................. 100 Units.................... $11,930,000
Texas................................. Naval Complex, Kingsville
 and Corpus Christi...... 212 Units.................... $22,250,000
Washington............................ Naval Air Station,
 Whidbey Island.......... 102 Units.................... $16,000,000
 ---------------
 Total...................... $175,196,000
----------------------------------------------------------------------------------------------------------------

 (b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriation in section
2204(a)(5)(A), the Secretary of the Navy may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$15,100,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

 Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2204(a)(5)(A), the Secretary of the
Navy may improve existing military family housing units in an
amount not to exceed $203,536,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

 (a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1997, for military construction, land acquisition, and military
family housing functions of the Department of the Navy in the
total amount of $2,027,339,000 as follows:
 (1) For military construction projects inside the
 United States authorized by section 2201(a),
 $521,297,000.
 (2) For military construction projects outside the
 United States authorized by section 2201(b),
 $66,120,000.
 (3) For unspecified minor construction projects
 authorized by section 2805 of title 10, United States
 Code, $11,460,000.
 (4) For architectural and engineering services and
 construction design under section 2807 of title 10,
 United States Code, $46,489,000.
 (5) For military family housing functions:
 (A) For construction and acquisition,
 planning and design, and improvement of
 military family housing and facilities,
 $393,832,000.
 (B) For support of military housing
 (including functions described in section 2833
 of title 10, United States Code), $976,504,000.
 (6) For construction of a bachelor enlisted
 quarters at Naval Hospital, Great Lakes, Illinois,
 authorized by section 2201(a) of the Military
 Construction Authorization Act for Fiscal Year 1997
 (division B of Public Law 104-201; 110 Stat. 2766),
 $5,200,000.
 (7) For construction of a bachelor enlisted
 quarters at Naval Station, Roosevelt Roads, Puerto
 Rico, authorized by section 2201(a) of the Military
 Construction Authorization Act for Fiscal Year 1997
 (division B of Public Law 104-201; 110 Stat. 2767),
 $14,600,000.
 (8) For construction of a large anecohic chamber
 facility at Patuxent River Naval Air Warfare Center,
 Maryland, authorized by section 2201(a) of the Military
 Construction Authorization Act for Fiscal Year 1993
 (division B of Public Law 102-484; 106 Stat. 2590),
 $9,000,000.
 (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2201 of this Act may not exceed the total amount
authorized to be appropriated under paragraphs (1) and (2) of
subsection (a).
 (c) Adjustments.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (8) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by--
 (1) $8,463,000, which represents the combination of
 project savings in military family housing construction
 resulting from favorable bids, reduced overhead costs,
 and cancellations due to force structure changes; and
 (2) $8,700,000, which represents the combination of
 savings resulting from adjustments to foreign currency
 exchange rates for military construction projects and
 the support of military family housing outside the
 United States.

SEC. 2205. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT NAVAL
 STATION, PASCAGOULA, MISSISSIPPI, FOR WHICH FUNDS
 HAVE BEEN APPROPRIATED.

 (a) Authorization.--The table in section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 1997
(division B of Public Law 104-201; 110 Stat. 2766) is amended--
 (1) by striking out the amount identified as the
 total and inserting in lieu thereof ``$594,982,000'';
 and
 (2) by inserting after the item relating to Stennis
 Space Center, Mississippi, the following new item:

------------------------------------------------------------------------

------------------------------------------------------------------------
 ``Naval Station, $4,990,000''.
 Pascagoula.
------------------------------------------------------------------------

 (b) Conforming Amendments.--Section 2204(a) of such Act
(110 Stat. 2769) is amended--
 (1) in the matter preceding the paragraphs, by
 striking out ``$2,213,731,000'' and inserting in lieu
 thereof ``$2,218,721,000''; and
 (2) in paragraph (1), by striking out
 ``$579,312,000'' and inserting in lieu thereof
 ``$584,302,000''.

SEC. 2206. INCREASE IN AUTHORIZATION FOR MILITARY CONSTRUCTION PROJECTS
 AT NAVAL STATION ROOSEVELT ROADS, PUERTO RICO.

 (a) Increase.--The table in section 2201(b) of the Military
Construction Authorization Act for Fiscal Year 1997 (division B
of Public Law 104-201; 110 Stat. 2767) is amended--
 (1) by striking out the amount identified as the
 total and inserting in lieu thereof ``$66,150,000'';
 and
 (2) in the amount column of the item relating to
 Naval Station, Roosevelt Roads, Puerto Rico, by
 striking out ``$23,600,000'' and inserting in lieu
 thereof ``$24,100,000''.
 (b) Conforming Amendment.--Section 2204(b)(4) of such Act
(110 Stat. 2770) is amended by striking out ``$14,100,000'' and
inserting in lieu thereof ``$14,600,000''.

 TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition
 projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authorization of military construction project at McConnell
 Air Force Base, Kansas, for which funds have been
 appropriated.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
 PROJECTS.

 (a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(1), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

 Air Force: Inside the United States
------------------------------------------------------------------------
 Installation or
 State Location Amount
------------------------------------------------------------------------
Alabama........................ Maxwell Air Force Base. $14,874,000
Alaska......................... Clear Air Station...... $67,069,000
 Eielson Air Force Base. $13,764,000
 Elmendorf Air Force $6,100,000
 Base.
 Indian Mountain........ $1,991,000
Arizona........................ Luke Air Force Base.... $10,000,000
Arkansas....................... Little Rock Air Force $3,400,000
 Base.
California..................... Edwards Air Force Base. $2,887,000
 Vandenberg Air Force $26,876,000
 Base.
Colorado....................... Buckley Air National $6,718,000
 Guard Base.
 Falcon Air Force $10,551,000
 Station.
 Peterson Air Force Base $4,081,000
 United States Air Force $15,229,000
 Academy.
Florida........................ Eglin Auxiliary Field 9 $6,470,000
 MacDill Air Force Base. $9,643,000
Georgia........................ Moody Air Force Base... $6,800,000
 Robins Air Force Base.. $27,763,000
Idaho.......................... Mountain Home Air Force $30,669,000
 Base.
Kansas......................... McConnell Air Force $14,519,000
 Base.
Louisiana...................... Barksdale Air Force $19,410,000
 Base.
Mississippi.................... Keesler Air Force Base. $30,855,000
Missouri....................... Whiteman Air Force Base $17,419,000
Montana........................ Malmstrom Air Force $4,500,000
 Base.
Nevada......................... Nellis Air Force Base.. $1,950,000
New Jersey..................... McGuire Air Force Base. $18,754,000
New Mexico..................... Kirtland Air Force Base $20,300,000
North Carolina................. Pope Air Force Base.... $10,956,000
North Dakota................... Grand Forks Air Force $8,560,000
 Base.
 Minot Air Force Base... $5,200,000
Ohio........................... Wright-Patterson Air $19,350,000
 Force Base.
Oklahoma....................... Altus Air Force Base... $11,000,000
 Tinker Air Force Base.. $9,655,000
 Vance Air Force Base... $7,700,000
South Carolina................. Shaw Air Force Base.... $6,072,000
South Dakota................... Ellsworth Air Force $6,600,000
 Base.
Tennessee...................... Arnold Air Force Base.. $20,650,000
Texas.......................... Dyess Air Force Base... $10,000,000
 Laughlin Air Force Base $4,800,000
 Randolph Air Force Base $2,488,000
Utah........................... Hill Air Force Base.... $6,470,000
Virginia....................... Langley Air Force Base. $4,031,000
Washington..................... Fairchild Air Force $20,316,000
 Base.
 McChord Air Force Base. $6,470,000
CONUS Classified............... Classified Location.... $6,175,000
 ---------------
 Total................ $559,085,000
------------------------------------------------------------------------

 (b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(2), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

 Air Force: Outside the United States
------------------------------------------------------------------------
 Installation or
 Country Location Amount
------------------------------------------------------------------------
Germany........................ Spangdahlem Air Base... $18,500,000
Italy.......................... Aviano Air Base........ $15,220,000
Korea.......................... Kunsan Air Base........ $10,325,000
Portugal....................... Lajes Field, Azores.... $4,800,000
United Kingdom................. Royal Air Force, $11,400,000
 Lakenheath.
Overseas Classified............ Classified Location.... $29,100,000
 ---------------
 Total................ $89,345,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

 (a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2304(a)(5)(A), the Secretary of the Air Force may
construct or acquire family housing units (including land
acquisition) at the installations, for the purposes, and in the
amounts set forth in the following table:

 Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
 State Installation or Location Purpose Amount
----------------------------------------------------------------------------------------------------------------
California............................ Edwards Air Force Base... 51 Units..................... $8,500,000
 Travis Air Force Base.... 70 Units..................... $9,714,000
 Vandenberg Air Force Base 108 Units.................... $17,100,000
Delaware.............................. Dover Air Force Base..... Ancillary Facility........... $831,000
District of Columbia.................. Bolling Air Force Base... 46 Units..................... $5,100,000
Florida............................... MacDill Air Force Base... 58 Units..................... $10,000,000
 Tyndall Air Force Base... 32 Units..................... $4,200,000
Georgia............................... Robins Air Force Base.... 60 Units..................... $6,800,000
Idaho................................. Mountain Home Air Force
 Base.................... 60 Units..................... $11,032,000
Kansas................................ McConnell Air Force Base. 19 Units..................... $2,951,000
 McConnell Air Force Base. Ancillary Facility........... $581,000
Mississippi........................... Columbus Air Force Base.. 50 Units..................... $6,200,000
 Keesler Air Force Base... 40 Units..................... $5,000,000
Montana............................... Malmstrom Air Force Base. 100 Units.................... $17,842,000
New Mexico............................ Kirtland Air Force Base.. 180 Units.................... $20,900,000
North Dakota.......................... Grand Forks Air Force
 Base.................... 42 Units..................... $7,936,000
Texas................................. Dyess Air Force Base..... 70 Units..................... $10,503,000
 Goodfellow Air Force Base 3 Units...................... $500,000
 Lackland Air Force Base.. 50 Units..................... $7,400,000
Wyoming............................... F. E. Warren Air Force
 Base.................... 52 Units..................... $6,853,000
 ---------------
 Total...................... $159,943,000
----------------------------------------------------------------------------------------------------------------

 (b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(5)(A), the Secretary of the Air Force may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$11,971,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

 Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2304(a)(5)(A), the Secretary of the
Air Force may improve existing military family housing units in
an amount not to exceed $123,795,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

 (a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1997, for military construction, land acquisition, and military
family housing functions of the Department of the Air Force in
the total amount of $1,791,640,000 as follows:
 (1) For military construction projects inside the
 United States authorized by section 2301(a),
 $559,085,000.
 (2) For military construction projects outside the
 United States authorized by section 2301(b),
 $89,345,000.
 (3) For unspecified minor construction projects
 authorized by section 2805 of title 10, United States
 Code, $8,545,000.
 (4) For architectural and engineering services and
 construction design under section 2807 of title 10,
 United States Code, $44,880,000.
 (5) For military housing functions:
 (A) For construction and acquisition,
 planning and design, and improvement of
 military family housing and facilities,
 $295,709,000.
 (B) For support of military family housing
 (including the functions described in section
 2833 of title 10, United States Code),
 $830,234,000.
 (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2301 of this Act may not exceed the total amount
authorized to be appropriated under paragraphs (1) and (2) of
subsection (a).
 (c) Adjustments.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (5) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by--
 (1) $23,858,000, which represents the combination
 of project savings in military construction resulting
 from favorable bids, reduced overhead costs, and
 cancellations due to force structure changes; and
 (2) $12,300,000, which represents the combination
 of savings resulting from adjustments to foreign
 currency exchange rates for military construction
 projects and the support of military family housing
 outside the United States.

SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECT AT MCCONNELL
 AIR FORCE BASE, KANSAS, FOR WHICH FUNDS HAVE BEEN
 APPROPRIATED.

 (a) Authorization.--The table in section 2301(a) of the
Military Construction Authorization Act for Fiscal Year 1997
(division B of Public Law 104-201; 110 Stat. 2771) is amended--
 (1) by striking out the amount identified as the
 total and inserting in lieu thereof ``$610,534,000'';
 and
 (2) in the amount column of the item relating to
 McConnell Air Force Base, Kansas, by striking out
 ``$19,130,000'' and inserting in lieu thereof
 ``$25,830,000''.
 (b) Conforming Amendments.--Section 2304(a) of such Act
(110 Stat. 2774) is amended--
 (1) in the matter preceding paragraph (1), by
 striking out ``$1,894,594,000'' and inserting in lieu
 thereof ``$1,901,294,000'' and
 (2) in paragraph (1), by striking out
 ``$603,834,000'' and inserting in lieu thereof
 ``$610,534,000''.

 TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition
 projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Clarification of authority relating to fiscal year 1997
 project at Naval Station, Pearl Harbor, Hawaii.
Sec. 2407. Correction in authorized uses of funds, McClellan Air Force
 Base, California.
Sec. 2408. Modification of authority to carry out certain fiscal year
 1995 projects.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
 ACQUISITION PROJECTS.

 (a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2405(a)(1), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

 Defense Agencies: Inside the United States
------------------------------------------------------------------------
 Installation or
 Agency Location Amount
------------------------------------------------------------------------
Defense Commissary Agency...... Fort Lee, Virginia..... $9,300,000
Defense Finance and Accounting
 Service....................... Columbus Center, Ohio.. $9,722,000
 Naval Air Station,
 Millington, Tennessee. $6,906,000
 Naval Station, Norfolk,
 Virginia.............. $12,800,000
 Naval Station, Pearl
 Harbor, Hawaii........ $10,000,000
Defense Intelligence Agency.... Bolling Air Force Base,
 District of Columbia.. $7,000,000
 Redstone Arsenal, $32,700,000
 Alabama.
Defense Logistics Agency....... Defense Distribution
 Depot--DDNV, Virginia. $16,656,000
 Defense Distribution
 New Cumberland--DDSP,
 Pennsylvania.......... $15,500,000
 Defense Fuel Support
 Point, Craney Island,
 Virginia.............. $22,100,000
 Defense General Supply
 Center, Richmond
 (DLA), Virginia....... $5,200,000
 Elmendorf Air Force
 Base, Alaska.......... $21,700,000
 Naval Air Station,
 Jacksonville, Florida. $9,800,000
 Truax Field, Wisconsin. $4,500,000
 Westover Air Reserve
 Base, Massachusetts... $4,700,000
 CONUS Various, CONUS
 Various............... $11,275,000
Defense Medical Facilities
 Office........................ Fort Campbell, Kentucky $13,600,000
 Fort Detrick, Maryland. $4,650,000
 Fort Lewis, Washington. $5,000,000
 Hill Air Force Base, $3,100,000
 Utah.
 Holloman Air Force
 Base, New Mexico...... $3,000,000
 Lackland Air Force
 Base, Texas........... $3,000,000
 Marine Corps Combat
 Development Command,
 Quantico, Virginia.... $19,000,000
 McGuire Air Force Base,
 New Jersey............ $35,217,000
 Naval Air Station,
 Pensacola, Florida.... $2,750,000
 Naval Station, Everett,
 Washington............ $7,500,000
 Naval Station, San
 Diego, California..... $2,100,000
 Naval Submarine Base,
 New London,
 Connecticut........... $2,300,000
 Robins Air Force Base,
 Georgia............... $19,000,000
 Wright-Patterson Air
 Force Base, Ohio...... $2,750,000
National Security Agency....... Fort Meade, Maryland... $29,700,000
Special Operations Command..... Eglin Auxiliary Field $8,550,000
 9, Florida.
 Fort Benning, Georgia.. $12,314,000
 Fort Bragg, North $9,800,000
 Carolina.
 Mississippi Army
 Ammunition Plant,
 Mississippi........... $9,900,000
 Naval Station, Pearl
 Harbor, Hawaii........ $7,400,000
 Naval Amphibious Base,
 Coronado, California.. $7,400,000
 ---------------
 Total................ $407,890,000
------------------------------------------------------------------------

 (b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2405(a)(2), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installationand location outside the United States, and in the
amount, set forth in the following table:

 Defense Agencies: Outside the United States
------------------------------------------------------------------------
 Installation or
 Agency Location Amount
------------------------------------------------------------------------
Defense Logistics Agency....... Defense Fuel Support
 Point, Guam........... $16,000,000
 ---------------
 Total................ $16,000,000
------------------------------------------------------------------------

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

 Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(13)(A), the Secretary of
Defense may carry out architectural and engineering services
and construction design activities with respect to the
construction or improvement of military family housing units in
an amount not to exceed $50,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

 Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriation in section 2405(a)(13)(A), the Secretary of
Defense may improve existing military family housing units in
an amount not to exceed $4,900,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

 Using amounts appropriated pursuant to the authorization of
appropriations in section 2405(a)(11), the Secretary of Defense
may carry out energy conservation projects under section 2865
of title 10, United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

 (a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1997, for military construction, land acquisition, and military
family housing functions of the Department of Defense (other
than the military departments), in the total amount of
$2,743,670,000 as follows:
 (1) For military construction projects inside the
 United States authorized by section 2401(a),
 $407,890,000.
 (2) For military construction projects outside the
 United States authorized by section 2401(b),
 $16,000,000.
 (3) For military construction projects at Anniston
 Army Depot, Alabama, ammunition demilitarization
 facility, authorized by section 2101(a) of the Military
 Construction Authorization Act for Fiscal Year 1993
 (division B of the Public Law 102-484; 106 Stat. 2587),
 which was originally authorized as an Army construction
 project, but which became a Defense Agencies
 construction project by reason of the amendments made
 by section 142 of the National Defense Authorization
 Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
 2689), $9,900,000.
 (4) For military construction projects at Walter
 Reed Army Institute of Research, Maryland, hospital
 replacement, authorized by section 2401(a) of the
 Military Construction Authorization Act for Fiscal Year
 1993 (division B of Public Law 102-484; 106 Stat.
 2599), $20,000,000.
 (5) For military construction projects at Umatilla
 Army Depot, Oregon, authorized by section 2401(a) of
 the Military Construction Authorization Act for Fiscal
 Year 1995 (division B of the Public Law 103-337; 108
 Stat. 3040), as amended by section 2407 of the Military
 Construction Authorization Act for Fiscal Year 1996
 (division B of Public Law 104-106; 110 Stat. 539) and
 section 2408(2) of this Act, $57,427,000.
 (6) For military construction projects at Defense
 Finance and Accounting Service, Columbus, Ohio,
 authorized by section 2401(a) of the Military
 Construction Authorization Act of Fiscal Year 1996
 (division B of Public Law 104-106; 110 Stat. 535),
 $14,200,000.
 (7) For military construction projects at Naval
 Hospital, Portsmouth, Virginia, hospital replacement,
 authorized by section 2401(a) of the Military
 Construction Authorization Act for Fiscal Years 1990
 and 1991 (division B of Public Law 101-189; 103 Stat.
 1640), $17,000,000.
 (8) For contingency construction projects of the
 Secretary of Defense under section 2804 of title 10,
 United States Code, $4,000,000.
 (9) For unspecified minor construction projects
 under section 2805 of title 10, United States Code,
 $26,075,000.
 (10) For architectural and engineering services and
 construction design under section 2807 of title 10,
 United States Code, $48,850,000.
 (11) For energy conservation projects authorized by
 section 2404, $25,000,000.
 (12) For base closure and realignment activities as
 authorized by the Defense Base Closure and Realignment
 Act of 1990 (part A of title XXIX of Public Law 101-
 510; 10 U.S.C. 2687 note), $2,060,854,000.
 (13) For military family housing functions:
 (A) For improvement and planning of
 military family housing and facilities,
 $4,950,000.
 (B) For support of military housing
 (including functions described in section 2833
 of title 10, United States Code), $32,724,000
 of which not more than $27,673,000 may be
 obligated or expended for the leasing of
 military family housing units worldwide.
 (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853
of title 10, United States Code, and any other cost variations
authorized by law, the total cost of all projects carried out
under section 2401 of this Act may not exceed the total amount
authorized to be appropriated under paragraphs (1) and (2) of
subsection (a).
 (c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (13) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $1,200,000, which
represents the combination of savings resulting from
adjustments to foreign currency exchange rates for military
construction projects and the support of military family
housing outside the United States.

SEC. 2406. CLARIFICATION OF AUTHORITY RELATING TO FISCAL YEAR 1997
 PROJECT AT NAVAL STATION, PEARL HARBOR, HAWAII.

 The table in section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public
Law 104-201; 110 Stat. 2775) is amended in the item relating to
Special Operations Command, Naval Station, Ford Island, Pearl
Harbor, Hawaii, in the installation or location column by
striking out ``Naval Station, Ford Island, Pearl Harbor,
Hawaii'' and inserting in lieu thereof ``Naval Station, Pearl
Harbor, Hawaii''.

SEC. 2407. CORRECTION IN AUTHORIZED USES OF FUNDS, MCCLELLAN AIR FORCE
 BASE, CALIFORNIA.

 (a) Authority To Use Prior Year Funds.--The Secretary of
Defense may carry out the military construction projects
referred to in subsection (b), in the amounts specified in that
subsection, using amounts appropriated pursuant to the
authorization of appropriations in section 2405(a)(1) of the
Military Construction Authorization Act for Fiscal Year 1995
(division B of Public Law 103-337; 108 Stat. 3042) for a
military construction project involving the upgrade of the
hospital facility at McClellan Air Force Base, California, as
authorized by section 2401 of such Act (108 Stat. 3040).
 (b) Covered Projects.--Funds available under subsection (a)
may be used for military construction projects as follows:
 (1) Construction of an addition to the Aeromedical
 Clinic at Anderson Air Base, Guam, $3,700,000.
 (2) Construction of an occupational health clinic
 facility at Tinker Air Force Base, Oklahoma,
 $6,500,000.

SEC. 2408. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
 1995 PROJECTS.

 The table in section 2401 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3040), as amended by section 2407 of the
Military Construction Authorization Act for Fiscal Year 1996
(division B of Public Law 104-106; 110 Stat. 539), under the
agency heading relating to Chemical Weapons and Munitions
Destruction, is amended--
 (1) in the item relating to Pine Bluff Arsenal,
 Arkansas, by striking out ``$115,000,000'' in the
 amount column and inserting in lieu thereof
 ``$134,000,000''; and
 (2) in the item relating to Umatilla Army Depot,
 Oregon, by striking out ``$186,000,000'' in the amount
 column and inserting in lieu thereof ``$187,000,000''.

 TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
 PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

 The Secretary of Defense may make contributions for the
North Atlantic Treaty Organization Security Investment program
as provided in section 2806 of title 10, United States Code, in
an amount not to exceed the sum of the amount authorized to be
appropriated for this purpose in section 2502 and the amount
collected from the North Atlantic Treaty Organization as a
result of construction previously financed by the United
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

 Funds are hereby authorized to be appropriated for fiscal
years beginning after September 30, 1997, for contributions by
the Secretary of Defense under section 2806 of title 10, United
States Code, for the share of the United States of the cost of
projects for the North Atlantic Treaty Organization Security
Investment program authorized by section 2501, in the amount of
$152,600,000.

 TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land
 acquisition projects.
Sec. 2602. Authorization of military construction projects for which
 funds have been appropriated.
Sec. 2603. Army Reserve construction project, Camp Williams, Utah.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
 ACQUISITION PROJECTS.

 (a) In General.--There are authorized to be appropriated
for fiscal years beginning after September 30, 1997, for the
costs of acquisition, architectural and engineering services,
and construction of facilities for the Guard and Reserve
Forces, and for contributions therefor, under chapter 1803 of
title 10, United States Code (including the cost of acquisition
of land for those facilities), the following amounts:
 (1) For the Department of the Army--
 (A) for the Army National Guard of the
 United States, $113,750,000; and
 (B) for the Army Reserve, $66,267,000.
 (2) For the Department of the Navy, for the Naval
 and Marine Corps Reserve, $47,329,000.
 (3) For the Department of the Air Force--
 (A) for the Air National Guard of the
 United States, $190,444,000; and
 (B) for the Air Force Reserve, $30,243,000.
 (b) Adjustment.--The amount authorized to be appropriated
pursuant to subsection (a)(1)(B) is reduced by $7,900,000,
which represents the combination of project savings in military
construction resulting from favorable bids, reduced overhead
costs, and cancellations due to force structure changes.

SEC. 2602. AUTHORIZATION OF MILITARY CONSTRUCTION PROJECTS FOR WHICH
 FUNDS HAVE BEEN APPROPRIATED.

 (a) Army National Guard, Hilo, Hawaii.--Paragraph (1)(A) of
section 2601 of the Military Construction Authorization Act for
Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat.
2780) is amended by striking out ``$59,194,000'' and inserting
in lieu thereof ``$65,094,000'' to account for a project
involving additions and alterations to an Army aviation support
facility in Hilo, Hawaii.
 (b) Naval and Marine Corps Reserve, New Orleans.--Paragraph
(2) of such section is amended by striking out ``$32,779,000''
and inserting in lieu thereof ``$37,579,000'' to account for a
project for the construction of a bachelor enlisted quarters at
Naval Air Station, New Orleans, Louisiana.

SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, CAMP WILLIAMS, UTAH.

 With regard to the military construction project for the
Army Reserve concerning construction of a reserve center and
organizational maintenance shop at Camp Williams, Utah, to be
carried out using funds appropriated pursuant to the
authorization of appropriations in section 2601(a)(1)(B), the
Secretary of the Army shall enter into an agreement with the
State of Utah under which the State agrees to provide financial
or in-kind contributions toward land acquisition, site
preparation, and relocation costs in connection with the
project.

 TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be
 specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1995
 projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1994
 projects.
Sec. 2704. Extension of authorizations of certain fiscal year 1993
 projects.
Sec. 2705. Extension of authorizations of certain fiscal year 1992
 projects.
Sec. 2706. Extension of availability of funds for construction of
 relocatable over-the-horizon radar, Naval Station Roosevelt
 Roads, Puerto Rico.
Sec. 2707. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
 SPECIFIED BY LAW.

 (a) Expiration of Authorizations After Three Years.--Except
as provided in subsection (b), all authorizations contained in
titles XXI through XXVI for military construction projects,
land acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor) shall expire on the later of--
 (1) October 1, 2000; or
 (2) the date of the enactment of an Act authorizing
 funds for military construction for fiscal year 2001.
 (b) Exception.--Subsection (a) shall not apply to
authorizations for military construction projects, land
acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor), for which appropriated funds have
been obligated before the later of--
 (1) October 1, 2000; or
 (2) the date of the enactment of an Act authorizing
 funds for fiscal year 2001 for military construction
 projects, land acquisition, family housing projects and
 facilities, or contributions to the North Atlantic
 Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1995
 PROJECTS.

 (a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1995
(division B of Public Law 103-337; 108 Stat. 3046),
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2101, 2201, 2202, 2301,
2302, 2401, or 2601 of such Act, shall remain in effect until
October 1, 1998, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
1999, whichever is later.
 (b) Tables.--The tables referred to in subsection (a) are
as follows:

 Army: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
California............................ Fort Irwin............... National Training Center
 Airfield Phase I............ $10,000,000
----------------------------------------------------------------------------------------------------------------

 Navy: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Maryland.............................. Indian Head Naval Surface
 Warfare Center.......... Upgrade Power Plant.......... $4,000,000
 Indian Head Naval Surface
 Warfare Center.......... Denitrification/Acid Mixing
 Facility.................... $6,400,000
Virginia.............................. Norfolk Marine Corps
 Security Force Battalion
 Atlantic................ Bachelor Enlisted Quarters... $6,480,000
Washington............................ Naval Station, Everett... New Construction (Housing
 Office)..................... $780,000
CONUS Classified...................... Classified Location...... Aircraft Fire and Rescue and
 Vehicle Maintenance
 Facilities.................. $2,200,000
----------------------------------------------------------------------------------------------------------------

 Air Force: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
California............................ Beale Air Force Base..... Consolidated Support Center.. $10,400,000
 Los Angeles Air Force
 Station................. Family Housing (50 units).... $8,962,000
North Carolina........................ Pope Air Force Base...... Combat Control Team Facility. $2,450,000
 Pope Air Force Base...... Fire Training Facility....... $1,100,000
----------------------------------------------------------------------------------------------------------------

 Defense Agencies: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Alabama............................... Anniston Army Depot...... Carbon Filtration System..... $5,000,000
Arkansas.............................. Pine Bluff Arsenal....... Ammunition Demilitarization
 Facility.................... $115,000,000
California............................ Defense Contract
 Management Area Office,
 El Segundo.............. Administrative Building...... $5,100,000
Oregon................................ Umatilla Army Depot...... Ammunition Demilitarization
 Facility.................... $186,000,000
----------------------------------------------------------------------------------------------------------------

 Army National Guard: Extension of 1995 Project Authorizations
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
California............................ Camp Roberts............. Modify Record Fire/
 Maintenance Shop............ $3,910,000
 Camp Roberts............. Combat Pistol Range.......... $952,000
Pennsylvania.......................... Fort Indiantown Gap...... Barracks..................... $6,200,000
----------------------------------------------------------------------------------------------------------------

 Naval Reserve: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Georgia............................... Naval Air Station
 Marietta................ Training Center.............. $2,650,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994
 PROJECTS.

 (a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1994
(division B of Public Law 103-160, 107 Stat. 1880),
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2201 or 2601 of such Act
and extended by section 2702 of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public
Law 104-201; 110 Stat. 2783), shall remain in effect until
October 1, 1998, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
1999, whichever is later.
 (b) Tables.--The tables referred to in subsection (a) are
as follows:

 Navy: Extension of 1994 Project Authorizations
----------------------------------------------------------------------------------------------------------------
 State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
California............................ Camp Pendleton Marine
 Corps Base.............. Sewage Facility.............. $7,930,000
Connecticut........................... New London Naval
 Submarine Base.......... Hazardous Waste Transfer
 Facility.................... $1,450,000
----------------------------------------------------------------------------------------------------------------

 Army National Guard: Extension of 1994 Project Authorization
----------------------------------------------------------------------------------------------------------------
 State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
New Mexico.............................. White Sands Missile Range. MATES..................... $3,570,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993
 PROJECTS.

 (a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1993
(division B of Public Law 102-484; 106 Stat. 2602), the
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2101 or 2601 of such Act
and extended by section 2702 of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of Public
Law 104-106; 110 Stat. 541) and section 2703 of the Military
Construction Authorization Act for Fiscal Year 1997 (division B
of Public Law 104-201; 110 Stat. 2784), shall remain in effect
until October 1, 1998, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
1999, whichever is later.
 (b) Tables.--The tables referred to in subsection (a) are
as follows:

 Army: Extension of 1993 Project Authorization
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Arkansas................................ Pine Bluff Arsenal........ Ammunition
 Demilitarization Support
 Facility................. $15,000,000
----------------------------------------------------------------------------------------------------------------

 Army National Guard: Extension of 1993 Project Authorization
----------------------------------------------------------------------------------------------------------------
 State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Alabama................................. Union Springs............. Armory.................... $813,000
----------------------------------------------------------------------------------------------------------------

SEC. 2705. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992
 PROJECTS.

 (a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1992
(division B of Public Law 102-190; 105 Stat. 1535),
authorizations for the projects set forth in the table in
subsection (b), as provided in section 2101 of such Act and
extended by section 2702 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3047), section 2703 of the Military
Construction Authorization Act for Fiscal Year 1996 (division B
of Public Law 104-106; 110 Stat. 543), and section 2704 of the
Military Construction Authorization Act for Fiscal Year 1997
(division B of Public Law 104-201; 110 Stat. 2785), shall
remain in effect until October 1, 1998, or the date of the
enactment of an Act authorizing funds for military construction
for fiscal year 1999, whichever is later.
 (b) Table.--The table referred to in subsection (a) is as
follows:

 Army: Extension of 1992 Project Authorizations
----------------------------------------------------------------------------------------------------------------
 State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Oregon.................................. Umatilla Army Depot....... Ammunition
 Demilitarization Support
 Facility................. $3,600,000
 Umatilla Army Depot....... Ammunition
 Demilitarization
 Utilities................ $7,500,000
----------------------------------------------------------------------------------------------------------------

SEC. 2706. EXTENSION OF AVAILABILITY OF FUNDS FOR CONSTRUCTION OF
 RELOCATABLE OVER-THE-HORIZON RADAR, NAVAL STATION
 ROOSEVELT ROADS, PUERTO RICO.

 Amounts appropriated under the heading ``Drug Interdiction
and Counter-Drug Activities, Defense'' in title VI of the
Department of Defense Appropriations Act, 1995 (Public Law 103-
335; 108 Stat. 2615), and transferred to the ``Military
Construction, Navy'' appropriation for construction of a
relocatable over-the-horizon radar at Naval Station Roosevelt
Roads, Puerto Rico, shall remain available for that purpose
until the later of--
 (1) October 1, 1998; or
 (2) the date of enactment of an Act authorizing
 funds for military construction for fiscal year 1999.

SEC. 2707. EFFECTIVE DATE.

 Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take
effect on the later of--
 (1) October 1, 1997; or
 (2) the date of the enactment of this Act.

 TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Use of mobility enhancement funds for unspecified minor
 construction.
Sec. 2802. Limitation on use of operation and maintenance funds for
 facility repair projects.
Sec. 2803. Leasing of military family housing, United States Southern
 Command, Miami, Florida.
Sec. 2804. Use of financial incentives provided as part of energy
 savings and water conservation activities.
Sec. 2805. Congressional notification requirements regarding use of
 Department of Defense housing funds for investments in
 nongovernmental entities.

 Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in ceiling for minor land acquisition projects.
Sec. 2812. Permanent authority regarding conveyance of utility systems.
Sec. 2813. Administrative expenses for certain real property
 transactions.
Sec. 2814. Screening of real property to be conveyed by Department of
 Defense.
Sec. 2815. Disposition of proceeds from sale of Air Force Plant 78,
 Brigham City, Utah.
Sec. 2816. Fire protection and hazardous materials protection at Fort
 Meade, Maryland.

 Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Consideration of military installations as sites for new
 Federal facilities.
Sec. 2822. Adjustment and diversification assistance to enhance
 performance of military family support services by private
 sector sources.
Sec. 2823. Security, fire protection, and other services at property
 formerly associated with Red River Army Depot, Texas.
Sec. 2824. Report on closure and realignment of military installations.
Sec. 2825. Sense of Senate regarding utilization of savings derived from
 base closure process.
Sec. 2826. Prohibition against certain conveyances of property at Naval
 Station, Long Beach, California.

 Subtitle D--Land Conveyances

 Part I--Army Conveyances

Sec. 2831. [S2820. Land conveyance, Army Reserve Center, Greensboro,
 Alabama.
Sec. 2832. [H2831. Land conveyance, James T. Coker Army Reserve Center,
 Durant, Oklahoma.
Sec. 2833. Land conveyance, Gibson Army Reserve Center, Chicago,
 Illinois.
Sec. 2834. Land conveyance, Fort A. P. Hill, Virginia.
Sec. 2835. Land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyances, Fort Bragg, North Carolina.
Sec. 2837. Land conveyance, Hawthorne Army Ammunition Depot, Mineral
 County, Nevada.
Sec. 2838. Expansion of land conveyance authority, Indiana Army
 Ammunition Plant, Charlestown, Indiana.
Sec. 2839. Modification of land conveyance, Lompoc, California.
Sec. 2840. Modification of land conveyance, Rocky Mountain Arsenal,
 Colorado.
Sec. 2841. Correction of land conveyance authority, Army Reserve Center,
 Anderson, South Carolina.

 Part II--Navy Conveyances

Sec. 2851. Land conveyance, Topsham Annex, Naval Air Station, Brunswick,
 Maine.
Sec. 2852. Land conveyance, Naval Weapons Industrial Reserve Plant No.
 464, Oyster Bay, New York.
Sec. 2853. Correction of lease authority, Naval Air Station, Meridian,
 Mississippi.

 Part III--Air Force Conveyances

Sec. 2861. [H2861. Land transfer, Eglin Air Force Base, Florida.
Sec. 2862. [H2863. Land conveyance, March Air Force Base, California.
Sec. 2863. [H2864/S2818. Land conveyance, Ellsworth Air Force Base,
 South Dakota.
Sec. 2864. Land conveyance, Hancock Field, Syracuse, New York.
Sec. 2865. Land conveyance, Havre Air Force Station, Montana, and Havre
 Training Site, Montana.
Sec. 2866. Land conveyance, Charleston Family Housing Complex, Bangor,
 Maine.
Sec. 2867. Study of land exchange options, Shaw Air Force Base, South
 Carolina.

 Subtitle E--Other Matters

Sec. 2871. Repeal of requirement to operate Naval Academy dairy farm.
Sec. 2872. Long-term lease of property, Naples, Italy.
Sec. 2873. [H2883. Designation of military family housing at Lackland
 Air Force Base, Texas, in honor of Frank Tejeda, a former
 Member of the House of Representatives.
Sec. 2874. Fiber-optics based telecommunications linkage of military
 installations.

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

SEC. 2801. USE OF MOBILITY ENHANCEMENT FUNDS FOR UNSPECIFIED MINOR
 CONSTRUCTION.

 (a) Congressional Notification.--Subsection (b)(1) of
section 2805 of title 10, United States Code, is amended by
adding at the end the following new sentence: ``This paragraph
shall apply even though the project is to be carried out using
funds made available to enhance the deployment and mobility of
military forces and supplies.''.
 (b) Restriction on Use of Operation and Maintenance
Funds.--Subsection (c) of such section is amended--
 (1) in paragraph (1), by striking out ``paragraph
 (2)'' and inserting in lieu thereof ``paragraphs (2)
 and (3)''; and
 (2) by adding at the end the following new
 paragraph:
 ``(3) The limitations specified in paragraph (1) shall not
apply to an unspecified minor military construction project if
the project is to be carried out using funds made available to
enhance the deployment and mobility of military forces and
supplies.''.
 (c) Technical Amendments.--Such section is further
amended--
 (1) in subsection (a)(1)--
 (A) by striking out ``minor military
 construction projects'' in the first sentence
 and inserting in lieu thereof ``unspecified
 minor military construction projects'';
 (B) by striking out ``A minor'' in the
 second sentence and inserting in lieu thereof
 ``An unspecified minor''; and
 (C) by striking out ``a minor'' in the last
 sentence and inserting in lieu thereof ``an
 unspecified minor'';
 (2) in subsection (b)(1), by striking out ``A
 minor'' and inserting in lieu thereof ``An unspecified
 minor'';
 (3) in subsection (b)(2), by striking out ``a
 minor'' and inserting in lieu thereof ``an unspecified
 minor''; and
 (4) in subsection (c), by striking out
 ``unspecified military'' each place it appears and
 inserting in lieu thereof ``unspecified minor
 military''.

SEC. 2802. LIMITATION ON USE OF OPERATION AND MAINTENANCE FUNDS FOR
 FACILITY REPAIR PROJECTS.

 Section 2811 of title 10, United States Code, is amended by
adding at the end the following new subsections:
 ``(d) Congressional Notification.--When a decision is made
to carry out a repair project under this section with an
estimated cost in excess of $10,000,000, the Secretary
concerned shall submit to the appropriate committees of
Congress a report containing--
 ``(1) the justification for the repair project and
 the current estimate of the cost of the project; and
 ``(2) the justification for carrying out the
 project under this section.
 ``(e) Repair Project Defined.--In this section, the term
`repair project' means a project to restore a real property
facility, system, or component to such a condition that it may
effectively be used for its designated functional purpose.''.

SEC. 2803. LEASING OF MILITARY FAMILY HOUSING, UNITED STATES SOUTHERN
 COMMAND, MIAMI, FLORIDA.

 (a) Leases to Exceed Maximum Rental.--Section 2828(b) of
title 10, United States Code, is amended--
 (1) in paragraph (2), by striking out ``paragraph
 (3)'' and inserting in lieu thereof ``paragraphs (3)
 and (4)'';
 (2) by redesignating paragraph (4) as paragraph
 (5); and
 (3) by inserting after paragraph (3) the following
 new paragraph:
 ``(4) The Secretary of the Army may lease not more than
eight housing units in the vicinity of Miami, Florida, for key
and essential personnel, as designated by the Secretary, for
the United States Southern Command for which the expenditure
for the rental of such units (including the cost of utilities,
maintenance, and operation, including security enhancements)
exceeds the expenditure limitations in paragraphs (2) and (3).
The total amount for all leases under this paragraph may not
exceed $280,000 per year, and no lease on any individual
housing unit may exceed $60,000 per year.''.
 (b) Conforming Amendment.--Paragraph (5) of such section,
as redesignated by subsection (a)(2), is amended by striking
out ``paragraphs (2) and (3)'' and inserting in lieu thereof
``paragraphs (2), (3), and (4)''.

SEC. 2804. USE OF FINANCIAL INCENTIVES PROVIDED AS PART OF ENERGY
 SAVINGS AND WATER CONSERVATION ACTIVITIES.

 (a) Energy Savings.--Section 2865 of title 10, United
States Code, is amended--
 (1) in subsection (b)--
 (A) in paragraph (1), by striking out ``and
 financial incentives described in subsection
 (d)(2)'';
 (B) in paragraph (2), by striking out
 ``section 2866(b)'' both places it appears and
 inserting in lieu thereof ``section
 2866(a)(3)''; and
 (C) by adding at the end the following new
 paragraph:
 ``(3) Financial incentives received from gas or electric
utilities under subsection (d)(2), and from utilities for
management of water demand or water conservation under section
2866(a)(2) of this title, shall be credited to an appropriation
designated by the Secretary of Defense. Amounts so credited
shall be merged with the appropriation to which credited and
shall be available for the same purposes and the same period as
the appropriation with which merged.''; and
 (2) in subsection (f), by adding at the end the
 following new sentence: ``The Secretary shall also
 include in each report the types and amount of
 financial incentives received under subsection (d)(2)
 and section 2866(a)(2) of this title during the period
 covered by the report and the appropriation account or
 accounts to which the incentives were credited.''.
 (b) Water Conservation.--Section 2866(b) of such title is
amended to read as follows:
 ``(b) Use of Financial Incentives and Water Cost Savings.--
(1) Financial incentives received under subsection (a)(2) shall
be used as provided in section 2865(b)(3) of this title.
 ``(2) Water cost savings realized under subsection (a)(3)
shall be used as provided in section 2865(b)(2) of this
title.''.

SEC. 2805. CONGRESSIONAL NOTIFICATION REQUIREMENTS REGARDING USE OF
 DEPARTMENT OF DEFENSE HOUSING FUNDS FOR INVESTMENTS
 IN NONGOVERNMENTAL ENTITIES.

 Section 2875 of title 10, United States Code, is amended by
adding at the end the following new subsection:
 ``(e) Congressional Notification Required.--Amounts in
the Department of Defense Family Housing Improvement Fund or
the Department of Defense Military Unaccompanied Housing
Improvement Fund may be used to make a cash investment under
this section in a nongovernmental entity only after the end of
the 30-day period beginning on the date the Secretary of
Defense submits written notice of, and justification for, the
investment to the appropriate committees of Congress.''.

 Subtitle B--Real Property And Facilities Administration

SEC. 2811. INCREASE IN CEILING FOR MINOR LAND ACQUISITION PROJECTS.

 (a) Increase.--Section 2672 of title 10, United States
Code, is amended by striking out ``$200,000'' both places it
appears in subsection (a) and inserting in lieu thereof
``$500,000''.
 (b) Clerical Amendments.--(1) The section heading for such
section is amended to read as follows:

``Sec. 2672. Acquisition: interests in land when cost is not more than
 $500,000''.

 (2) The table of sections at the beginning of chapter 159
of such title is amended by striking out the item relating to
section 2672 and inserting in lieu thereof the following new
item:

``2672. Acquisition: interests in land when cost is not more than
 $500,000.''.

SEC. 2812. PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.

 (a) In General.--Chapter 159 of title 10, United States
Code, is amended by inserting after section 2687 the following
new section:

``Sec. 2688. Utility systems: conveyance authority

 ``(a) Conveyance Authority.--The Secretary of a military
department may convey a utility system, or part of a utility
system, under the jurisdiction of the Secretary to a municipal,
private, regional, district, or cooperative utility company or
other entity. The conveyance may consist of all right, title,
and interest of the United States in the utility system or such
lesser estate as the Secretary considers appropriate to serve
the interests of the United States.
 ``(b) Selection of Conveyee.--If more than one utility or
entity referred to in subsection (a) notifies the Secretary
concerned of an interest in a conveyance under such subsection,
the Secretary shall carry out the conveyance through the use of
competitive procedures.
 ``(c) Consideration.--(1) The Secretary concerned shall
require as consideration for a conveyance under subsection (a)
an amount equal to the fair market value (as determined by the
Secretary) of the right, title, or interest of the United
States conveyed. The consideration may take the form of--
 ``(A) a lump sum payment; or
 ``(B) a reduction in charges for utility services
 provided by the utility or entity concerned to the
 military installation at which the utility system is
 located.
 ``(2) If the utility services proposed to be provided as
consideration under paragraph (1) are subject to regulation by
a Federal or State agency, any reduction in the rate charged
for the utility services shall be subject to establishment or
approval by that agency.
 ``(d) Treatment of Payments.--(1) A lump sum payment
received under subsection (c) shall be credited, at the
election of the Secretary concerned--
 ``(A) to an appropriation of the military
 department concerned available for the procurement of
 the same utility services as are provided by the
 utility system conveyed under this section;
 ``(B) to an appropriation of the military
 department available for carrying out energy savings
 projects or water conservation projects; or
 ``(C) to an appropriation of the military
 department available for improvements to other utility
 systems.
 ``(2) Amounts so credited shall be merged with funds in the
appropriation to which credited and shall be available for the
same purposes, and subject to the same conditions and
limitations, as the appropriation with which merged.
 ``(e) Notice-and-Wait Requirement.--The Secretary concerned
may not make a conveyance under subsection (a) until--
 ``(1) the Secretary submits to the Committee on
 Armed Services and the Committee on Appropriations of
 the Senate and the Committee on National Security and
 the Committee on Appropriations of the House of
 Representatives an economic analysis (based upon
 accepted life-cycle costing procedures approved by the
 Secretary of Defense) demonstrating that--
 ``(A) the long-term economic benefit of the
 conveyance to the United States exceeds the
 long-term economic cost of the conveyance to
 the United States; and
 ``(B) the conveyance will reduce the long-
 term costs of the United States for utility
 services provided by the utility system
 concerned; and
 ``(2) a period of 21 days has elapsed after the
 date on which the economic analysis is received by the
 committees.
 ``(f) Additional Terms and Conditions.--The Secretary
concerned may require such additional terms and conditions in
connection with a conveyance under subsection (a) as the
Secretary considers appropriate to protect the interests of the
United States.
 ``(g) Utility System Defined.--(1) In this section, the
term `utility system' means any of the following:
 ``(A) A system for the generation and supply of
 electric power.
 ``(B) A system for the treatment or supply of
 water.
 ``(C) A system for the collection or treatment of
 wastewater.
 ``(D) A system for the generation or supply of
 steam, hot water, and chilled water.
 ``(E) A system for the supply of natural gas.
 ``(F) A system for the transmission of
 telecommunications.
 ``(2) The term `utility system' includes the following:
 ``(A) Equipment, fixtures, structures, and other
 improvements utilized in connection with a system
 referred to in paragraph (1).
 ``(B) Easements and rights-of-ways associated with
 a system referred to in that paragraph.
 ``(h) Limitation.--This section shall not apply to projects
constructed or operated by the Army Corps of Engineers under
its civil works authorities.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2687 the following new item:

``2688. Utility systems: conveyance authority.''.

SEC. 2813. ADMINISTRATIVE EXPENSES FOR CERTAIN REAL PROPERTY
 TRANSACTIONS.

 (a) Acceptance Authorized.--Chapter 159 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 2695. Acceptance of funds to cover administrative expenses
 relating to certain real property transactions

 ``(a) Authority To Accept.--In connection with a real
property transaction referred to in subsection (b) with a non-
Federal person or entity, the Secretary of a military
department may accept amounts provided by the person or entity
to cover administrative expenses incurred by the Secretary in
entering into the transaction.
 ``(b) Covered Transactions.--Subsection (a) applies to the
following transactions:
 ``(1) The exchange of real property.
 ``(2) The grant of an easement over, in, or upon
 real property of the United States.
 ``(3) The lease or license of real property of the
 United States.
 ``(c) Use of Amounts Collected.--Amounts collected under
subsection (a) for administrative expenses shall be credited to
the appropriation, fund, or account from which the expenses
were paid. Amounts so credited shall be merged with funds in
such appropriation, fund, or account and shall be available for
the same purposes and subject to the same limitations as the
funds with which merged.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of chapter 159 of such title is amended by adding at
the end the following new item:

``2695. Acceptance of funds to cover administrative expenses relating to
 certain real property transactions.''.

SEC. 2814. SCREENING OF REAL PROPERTY TO BE CONVEYED BY DEPARTMENT OF
 DEFENSE.

 (a) Requirement.--(1) Chapter 159 of title 10, United
States Code, is amended by inserting after section 2695, as
added by section 2813, the following new section:

``Sec. 2696. Screening of real property for further Federal use before
 conveyance

 ``(a) Screening Requirement.--The Secretary concerned may
not convey real property that is authorized or required to be
conveyed, whether for or without consideration, by any
provision of law unless the Administrator of General Services
has screened the property for further Federal use in accordance
with the Federal Property and Administrative Services Act of
1949 (40 U.S.C. 471 et seq.).
 ``(b) Time for Screening.--(1) Before the end of the 30-day
period beginning on the date of the enactment of a provision of
law authorizing or requiring the conveyance of a parcel of real
property by the Secretary concerned, the Administrator of
General Services shall complete the screening required by
paragraph (1) with regard to the real property and notify the
Secretary concerned of the results of the screening. The notice
shall include--
 ``(A) the name of the Federal agency requesting
 transfer of the property;
 ``(B) the proposed use to be made of the property
 by the Federal agency; and
 ``(C) the fair market value of the property,
 including any improvements thereon, as estimated by the
 Administrator.
 ``(2) If the Administrator fails to complete the screening
and notify the Secretary concerned within such period, the
Secretary concerned shall proceed with the conveyance of the
real property as provided in the provision of law authorizing
or requiring the conveyance.
 ``(c) Notice of Further Federal Use.--If the Administrator
of General Services notifies the Secretary concerned under
subsection (b) that further Federal use of a parcel of real
property authorized or required to be conveyed by any provision
of law is requested by a Federal agency, the Secretary
concerned shall submit a copy of the notice to Congress.
 ``(d) Congressional Disapproval.--If the Secretary
concerned submits a notice under subsection (c) with regard to
a parcel of real property, the Secretary concerned may not
proceed with the conveyance of the real property as provided in
the provision of law authorizing or requiring the conveyance if
Congress enacts a law rescinding the conveyance authority or
requirement before the end of the 180-day period beginning on
the date on which the Secretary concerned submits the notice.
 ``(e) Excepted Conveyance Authorities.--The screening
requirements of this section shall not apply to real property
authorized or required to be conveyed under any of the
following provisions of law:
 ``(1) Section 2687 of this title.
 ``(2) Title II of the Defense Authorization
 Amendments and Base Closure and Realignment Act (Public
 Law 100-526; 10 U.S.C. 2687 note).
 ``(3) The Defense Base Closure and Realignment Act
 of 1990 (part A of title XXIX of Public Law 101-510; 10
 U.S.C. 2687 note).
 ``(4) Any provision of law authorizing the closure
 or realignment of a military installation that is
 enacted after the date of enactment of the National
 Defense Authorization Act for Fiscal Year 1998.
 ``(5) Title II of the Federal Property and
 Administrative Services Act of 1949 (40 U.S.C. 481 et
 seq.).
 ``(6) Any specific provision of law authorizing or
 requiring the transfer of administrative jurisdiction
 over a parcel of real property between Federal
 agencies.''.
 (2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
2695, as added by section 2813, the following new item:

``2696. Screening of real property for further Federal use before
 conveyance.''.

 (b) Applicability.--Section 2696 of title 10, United States
Code, as added by subsection (a) of this section, shall apply
with respect to any real property authorized or required to be
conveyed under a provision of law covered by such section that
is enacted after December 31, 1997.

SEC. 2815. DISPOSITION OF PROCEEDS OF SALE OF AIR FORCE PLANT NO. 78,
 BRIGHAM CITY, UTAH.

 Notwithstanding section 204(h)(2)(A) of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
485(h)(2)(A)), the entire amount deposited by the Administrator
of General Services in the special account in the Treasury
(established under section 204(h)(2) of such Act) as a result
of the sale of Air Force Plant No. 78, Brigham City, Utah,
shall be available, to the extent provided in appropriations
Acts, to the Secretary of the Air Force for facility
maintenance, facility repair, and environmental restoration at
other industrial plants of the Air Force.

SEC. 2816. FIRE PROTECTION AND HAZARDOUS MATERIALS PROTECTION AT FORT
 MEADE, MARYLAND.

 (a) Plan.--Not later than 120 days after the date of the
enactment of this Act, the Secretary of the Army shall submit
to the congressional defense committees a plan to address the
requirements for fire protection services and hazardous
materials protection services at Fort Meade, Maryland,
including the National Security Agency at Fort Meade, as
identified in the preparedness evaluation report of the Army
Corps of Engineers regarding Fort Meade.
 (b) Elements.--The plan shall include the following:
 (1) A schedule for the implementation of the plan.
 (2) A detailed list of funding options available to
 provide centrally located, modern facilities and
 equipment to meet current requirements for fire
 protection services and hazardous materials protection
 services at Fort Meade.

 Subtitle C--Defense Base Closure and Realignment

SEC. 2821. CONSIDERATION OF MILITARY INSTALLATIONS AS SITES FOR NEW
 FEDERAL FACILITIES.

 (a) 1988 Law.--Section 204(b)(5) of the Defense
Authorization Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note) is amended--
 (1) in subparagraph (A), by striking out
 ``subparagraph (B)'' and inserting in lieu thereof
 ``subparagraphs (B) and (C)''; and
 (2) by adding at the end the following new
 subparagraph:
 ``(C)(i) Before acquiring non-Federal real property as the
location for a new or replacement Federal facility of any type,
the head of the Federal agency acquiring the property shall
consult with the Secretary regarding the feasibility and cost
advantages of using Federal property or facilities at a
military installation closed or realigned or to be closed or
realigned under this title as the location for the new or
replacement facility. In considering the availability and
suitability of a specific military installation, the Secretary
and the head of the Federal agency involved shall obtain the
concurrence of the redevelopment authority with respect to the
installation and comply with the redevelopment plan for the
installation.
 ``(ii) Not later than 30 days after acquiring non-Federal
real property as the location for a new or replacement Federal
facility, the head of the Federal agency acquiring the property
shall submit to Congress a report containing the results of
theconsultation under clause (i) and the reasons why military
installations referred to in such clause that are located within the
area to be served by the new or replacement Federal facility or within
a 200-mile radius of the new or replacement facility, whichever area is
greater, were considered to be unsuitable or unavailable for the site
of the new or replacement facility.
 ``(iii) This subparagraph shall apply during the period
beginning on the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998 and ending on July 31,
2001.''.
 (b) 1990 Law.--Section 2905(b)(5) of the Defense Base
Closure and Realignment Act of 1990 (Public Law 101-510; 10
U.S.C. 2687 note) is amended--
 (1) in subparagraph (A), by striking out
 ``subparagraph (B)'' and inserting in lieu thereof
 ``subparagraphs (B) and (C)''; and
 (2) by adding at the end the following new
 subparagraph:
 ``(C)(i) Before acquiring non-Federal real property as the
location for a new or replacement Federal facility of any type,
the head of the Federal agency acquiring the property shall
consult with the Secretary regarding the feasibility and cost
advantages of using Federal property or facilities at a
military installation closed or realigned or to be closed or
realigned under this part as the location for the new or
replacement facility. In considering the availability and
suitability of a specific military installation, the Secretary
and the head of the Federal agency involved shall obtain the
concurrence of the redevelopment authority with respect to the
installation and comply with the redevelopment plan for the
installation.
 ``(ii) Not later than 30 days after acquiring non-Federal
real property as the location for a new or replacement Federal
facility, the head of the Federal agency acquiring the property
shall submit to Congress a report containing the results of the
consultation under clause (i) and the reasons why military
installations referred to in such clause that are located
within the area to be served by the new or replacement Federal
facility or within a 200-mile radius of the new or replacement
facility, whichever area is greater, were considered to be
unsuitable or unavailable for the site of the new or
replacement facility.
 ``(iii) This subparagraph shall apply during the period
beginning on the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998 and ending on July 31,
2001.''.

SEC. 2822. ADJUSTMENT AND DIVERSIFICATION ASSISTANCE TO ENHANCE
 PERFORMANCE OF MILITARY FAMILY SUPPORT SERVICES BY
 PRIVATE SECTOR SOURCES.

 Section 2391(b)(5) of title 10, United States Code, is
amended by adding at the end the following new subparagraph:
 ``(C) The Secretary of Defense may also make grants,
conclude cooperative agreements, and supplement other Federal
funds in order to assist a State or local government in
enhancing the capabilities of the government to support efforts
of the Department of Defense to privatize, contract for, or
diversify the performance of military family support services
in cases in which the capability of the Department to provide
such services is adversely affected by an action described in
paragraph (1).''.

SEC. 2823. SECURITY, FIRE PROTECTION, AND OTHER SERVICES AT PROPERTY
 FORMERLY ASSOCIATED WITH RED RIVER ARMY DEPOT,
 TEXAS.

 (a) Authority To Enter into Agreement.--(1) The Secretary
of the Army may enter into an agreement with the local
redevelopment authority for Red River Army Depot, Texas, under
which agreement the Secretary provides security services, fire
protection services, or hazardous material response services
for the authority with respect to the property at the depot
that is under the jurisdiction of the authority as a result of
the realignment of the depot under the base closure laws.
 (2) The Secretary may not enter into the agreement unless
the Secretary determines that the provision of services under
the agreement is in the best interests of the United States.
 (b) Reimbursement.--The agreement under subsection (a)
shall provide for reimbursing the Secretary for the services
provided by the Secretary under the agreement.
 (c) Treatment of Reimbursement.--Any amounts received by
the Secretary under subsection (b) as reimbursement for
services provided under the agreement entered into under
subsection (a) shall be credited to the appropriations
providing funds for the services. Amounts so credited shall be
merged with the appropriations to which credited and shall be
available for the purposes, and subject to the conditions and
limitations, for which such appropriations are available.

SEC. 2824. REPORT ON CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS.

 (a) Report.--(1) The Secretary of Defense shall prepare and
submit to the congressional defense committees a report on the
costs and savings attributable to the rounds of base closures
and realignments conducted under the base closure laws and on
the need, if any, for additional rounds of base closures and
realignments.
 (2) For purposes of this section, the term ``base closure
laws'' means--
 (A) Title II of the Defense Authorization
 Amendments and Base Closure and Realignment Act (Public
 Law 100-526; 10 U.S.C. 2687 note); and
 (B) the Defense Base Closure and Realignment Act of
 1990 (part A of title XXIX of Public Law 101-510; 10
 U.S.C. 2687 note).
 (b) Elements.--The report under subsection (a) shall
include the following:
 (1) A statement, using data consistent with budget
 data, of the actual costs and savings (to the extent
 available for prior fiscal years) and the estimated
 costs and savings (in the case of future fiscal years)
 attributable to the closure and realignment of military
 installations as a result of the base closure laws.
 (2) A comparison, set forth by base closure round,
 of the actual costs and savings stated under paragraph
 (1) to the estimates of costs and savings submitted to
 the Defense Base Closure and Realignment Commission as
 part of the base closure process.
 (3) A comparison, set forth by base closure round,
 of the actual costs and savings stated under paragraph
 (1) to the annual estimates of costs and savings
 previously submitted to Congress.
 (4) A list of each military installation at which
 there is authorized to be employed 300 or more civilian
 personnel, set forth by Armed Force.
 (5) An estimate of current excess capacity at
 military installations, set forth--
 (A) as a percentage of the total capacity
 of the military installations of the Armed
 Forces with respect to all military
 installations of the Armed Forces;
 (B) as a percentage of the total capacity
 of the military installations of each Armed
 Force with respect to the military
 installations of such Armed Force; and
 (C) as a percentage of the total capacity
 of a type of military installations with
 respect to military installations of such type.
 (6) An assessment of the effect of the previous
 base closure rounds on military capabilities and the
 ability of the Armed Forces to fulfill the National
 Military Strategy.
 (7) A description of the types of military
 installations that would be recommended for closure or
 realignment in the event of one or more additional base
 closure rounds, set forth by Armed Force.
 (8) The criteria to be used by the Secretary in
 evaluating military installations for closure or
 realignment in such event.
 (9) The methodologies to be used by the Secretary
 in identifying military installations for closure or
 realignment in such event.
 (10) An estimate of the costs and savings that the
 Secretary believes will be achieved as a result of the
 closureor realignment of military installations in such
event, set forth by Armed Force and by year.
 (11) An assessment of whether the costs and
 estimated savings from one or more future rounds of
 base closures and realignments, currently unauthorized,
 are already contained in the current Future Years
 Defense Plan, and, if not, whether the Secretary will
 recommend modifications in future defense spending in
 order to accommodate such costs and savings.
 (c) Method of Presenting Information.--The statement and
comparison required by paragraphs (1) and (2) of subsection (b)
shall be set forth by Armed Force, type of facility, and fiscal
year, and include the following:
 (1) Operation and maintenance costs, including
 costs associated with expanded operations and support,
 maintenance of property, administrative support, and
 allowances for housing at military installations to
 which functions are transferred as a result of the
 closure or realignment of other installations.
 (2) Military construction costs, including costs
 associated with rehabilitating, expanding, and
 constructing facilities to receive personnel and
 equipment that are transferred to military
 installations as a result of the closure or realignment
 of other installations.
 (3) Environmental cleanup costs, including costs
 associated with assessments and restoration.
 (4) Economic assistance costs, including--
 (A) expenditures on Department of Defense
 demonstration projects relating to economic
 assistance;
 (B) expenditures by the Office of Economic
 Adjustment; and
 (C) to the extent available, expenditures
 by the Economic Development Administration, the
 Federal Aviation Administration, and the
 Department of Labor relating to economic
 assistance.
 (5) To the extent information is available,
 unemployment compensation costs, early retirement
 benefits (including benefits paid under section 5597 of
 title 5, United States Code), and worker retraining
 expenses under the Priority Placement Program, the Job
 Training Partnership Act, and any other Federally-
 funded job training program.
 (6) Costs associated with military health care.
 (7) Savings attributable to changes in military
 force structure.
 (8) Savings due to lower support costs with respect
 to military installations that are closed or realigned.
 (d) Deadline.--The Secretary shall submit the report under
subsection (a) not later than the date on which the President
submits to Congress the budget for fiscal year 2000 under
section 1105(a) of title 31, United States Code.
 (e) Review.--The Congressional Budget Office and the
Comptroller General shall conduct a review of the report
prepared under subsection (a).
 (f) Prohibition on Use of Funds.--Except as necessary to
prepare the report required subsection (a), no funds authorized
to be appropriated or otherwise made available to the
Department of Defense by this Act or any other Act may be used
for the purposes of planning for, or collecting data in
anticipation of, an authorization providing for procedures
under which the closure and realignment of military
installations may be accomplished, until the later of--
 (1) the date on which the Secretary submits the
 report required by subsection (a); and
 (2) the date on which the Congressional Budget
 Office and the Comptroller General complete a review of
 the report under subsection (e).
 (g) Sense of Congress.--It is the sense of the Congress
that--
 (1) the Secretary should develop a system having
 the capacity to quantify the actual costs and savings
 attributable to the closure and realignment of military
 installations pursuant to the base closure process; and
 (2) the Secretary should develop the system in
 expedient fashion, so that the system may be used to
 quantifycosts and savings attributable to the 1995 base
closure round.

SEC. 2825. SENSE OF SENATE REGARDING UTILIZATION OF SAVINGS DERIVED
 FROM BASE CLOSURE PROCESS.

 (a) Findings.--The Senate makes the following findings:
 (1) Since 1988, the Department of Defense has
 conducted four rounds of closures and realignments of
 military installations in the United States, resulting
 in the closure of 97 installations.
 (2) The cost of carrying out the closure or
 realignment of installations covered by such rounds is
 estimated by the Secretary of Defense to be
 $23,000,000,000.
 (3) The savings expected as a result of the closure
 or realignment of such installations are estimated by
 the Secretary to be $10,300,000,000 through fiscal year
 1996 and $36,600,000,000 through 2001.
 (4) In addition to such savings, the Secretary has
 estimated recurring savings as a result of the closure
 or realignment of such installations of approximately
 $5,600,000,000 annually.
 (5) The fiscal year 1997 budget request for the
 Department assumed a savings of between $2,000,000,000
 and $3,000,000,000 as a result of the closure or
 realignment of such installations, which savings were
 to be dedicated to the modernization of the Armed
 Forces. The savings assumed in the budget request were
 not realized.
 (6) The fiscal year 1998 budget request for the
 Department assumes a savings of $5,000,000,000 as a
 result of the closure or realignment of such
 installations, which savings are to be dedicated to the
 modernization of the Armed Forces.
 (b) Sense of Senate on Use of Savings Resulting from Base
Closure Process.--It is the sense of the Senate that the
savings identified in the report under section 2824 should be
made available to the Department of Defense solely for purposes
of the modernization of new weapon systems (including research,
development, test, and evaluation relating to such
modernization) and should be used by the Department solely for
such purposes.

SEC. 2826. PROHIBITION AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL
 STATION, LONG BEACH, CALIFORNIA.

 (a) Prohibition Against Direct Conveyance.--In disposing of
real property in connection with the closure of Naval Station,
Long Beach, California, under the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note), the Secretary of the Navy may
not convey any portion of the property (by sale, lease, or
other method) to the China Ocean Shipping Company or any legal
successor or subsidiary of that Company (in this section
referred to as ``COSCO'').
 (b) Prohibition Against Indirect Conveyance.--The Secretary
of the Navy shall impose as a condition on each conveyance of
real property located at Naval Station, Long Beach, California,
the requirement that the property may not be subsequently
conveyed (by sale, lease, or other method) to COSCO.
 (c) Reversionary Interest.--If the Secretary of the Navy
determines at any time that real property located at Naval
Station, Long Beach, California, and conveyed under the Defense
Base Closure and Realignment Act of 1990 has been conveyed to
COSCO in violation of subsection (b) or is otherwise being used
by COSCO in violation of such subsection, all right, title, and
interest in and to the property shall revert to the United
States, and the United States shall have immediate right of
entry thereon.
 (d) National Security Report and Determination.--Not later
than 30 days after the date of the enactment of this Act, the
Secretary of Defense and the Director of the Federal Bureau of
Investigation shall separately submit to the President and the
congressional defense committees a report regarding the
potential national security implications of conveying property
described in subsection (a) to COSCO. Each report shall
specifically identify any increased risk of espionage,arms
smuggling, or other illegal activities that could result from a
conveyance to COSCO and recommend appropriate action to address any
such risk.
 (e) Waiver Authority.--(1) The President may waive the
prohibitions contained in this section with respect to a
conveyance of property described in subsection (a) to COSCO if
the President determines that--
 (A) appropriate action has been taken to address
 any increased national security risk identified in the
 reports required by subsection (d); and
 (B) the conveyance would not adversely affect
 national security or significantly increase the
 counter-intelligence burden on the intelligence
 community.
 (2) Any waiver under paragraph (1) shall take effect 30
days after the date on which the President notifies the Speaker
of the House of Representatives and the President of the Senate
of the President's determination to use the waiver authority
provided under this subsection.

 Subtitle D--Land Conveyances

 PART I--ARMY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, ARMY RESERVE CENTER, GREENSBORO, ALABAMA.

 (a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to Hale County, Alabama, all
right, title, and interest of the United States in and to a
parcel of real property consisting of approximately 5.17 acres
and located at the Army Reserve Center, Greensboro, Alabama,
that was conveyed by Hale County, Alabama, to the United States
by warranty deed dated September 12, 1988.
 (b) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection (a)
shall be as described in the deed referred to in that
subsection.
 (c) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2832. LAND CONVEYANCE, JAMES T. COKER ARMY RESERVE CENTER, DURANT,
 OKLAHOMA.

 (a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to Big Five Community Services,
Incorporated, a nonprofit organization operating in Durant,
Oklahoma, all right, title, and interest of the United States
in and to a parcel of real property located at 1500 North First
Street in Durant, Oklahoma, and containing the James T. Coker
Army Reserve Center, if the Secretary determines that the
Reserve Center is excess to the needs of the Armed Forces.
 (b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that Big
Five Community Services, Incorporated, retain the conveyed
property for educational purposes.
 (c) Reversion.--If the Secretary determines at any time
that the real property conveyed under subsection (a) is not
being used for the purpose specified in subsection (b), all
right, title, and interest in and to the real property,
including any improvements thereon, shall revert to the United
States, and the United States shall have the right of immediate
entry thereon.
 (d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by Big
Five Community Services, Incorporated.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2833. LAND CONVEYANCE, GIBSON ARMY RESERVE CENTER, CHICAGO,
 ILLINOIS.

 (a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the LawndaleBusiness and
Local Development Corporation (in this section referred to as the
``Corporation''), a nonprofit organization organized in the State of
Illinois, all right, title, and interest of the United States in and to
a parcel of real property, including improvements thereon, that is
located at 4454 West Cermak Road in Chicago, Illinois, and contains the
Gibson Army Reserve Center.
 (b) Condition of Conveyance.--The conveyance under
subsection (a) shall be subject to the condition that the
Corporation--
 (1) use the conveyed property, directly or through
 an agreement with a public or private entity, for
 economic redevelopment purposes; or
 (2) convey the property to an appropriate public or
 private entity for use for such purposes.
 (c) Reversion.--If the Secretary determines at any time
that the real property conveyed under subsection (a) is not
being used for economic redevelopment purposes, as required by
subsection (b), all right, title, and interest in and to the
property, including any improvements thereon, shall revert to
the United States, and the United States shall have the right
of immediate entry onto the property.
 (d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
Corporation.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2834. LAND CONVEYANCE, FORT A. P. HILL, VIRGINIA.

 (a) Conveyance Authorized.--The Secretary of the Army may
convey to Caroline County, Virginia (in this section referred
to as the ``County''), all right, title, and interest of the
United States in and to a parcel of unimproved real property
consisting of approximately 10 acres located at Fort A. P.
Hill, Virginia. The purpose of the conveyance is to permit the
County to establish a solid waste transfer and recycling
facility on the property.
 (b) Consideration.--As consideration for the conveyance
under subsection (a), the County shall permit the Army, at no
cost to the Army, to dispose of not less than 1,800 tons of
solid waste annually at the facility established on the
conveyed property. The obligation of the County to accept solid
waste under this subsection shall not commerce until after the
solid waste transfer and recycling facility on the conveyed
property becomes operational, and the establishment of a solid
waste collection and transfer site on the .36-acre parcel
described in subsection (d)(2) shall not be construed to impose
the obligation.
 (c) Disclaimer.--The United States shall not be responsible
for the provision or cost of utilities or any other
improvements necessary to carry out the conveyance under
subsection (a) or to establish or operate the solid waste
transfer and recycling facility intended for the property.
 (d) Reversion.--(1) Except as provided in paragraph (2), if
the Secretary determines that a solid waste transfer and
recycling facility is not operational, before December 31,
1999, on the real property conveyed under subsection (a), all
right, title, and interest in and to such real property,
including any improvements thereon, shall revert to the United
States, and the United States shall have the right of immediate
entry thereon.
 (2) Paragraph (1) shall not apply with respect to a parcel
of approximately .36 acres of the approximately 10-acre parcel
to be conveyed under subsection (a), which is included in the
larger conveyance to permit the County to establish a solid
waste collection and transfer site for residential waste.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2835. LAND CONVEYANCES, FORT DIX, NEW JERSEY.

 (a) Conveyances Authorized.--(1) The Secretary of the Army
may convey, without consideration, to the Borough of
Wrightstown, New Jersey (in this section referred to as the
``Borough''), all right, title, and interest of the United
States in and to a parcel of real property (including
improvements thereon) consisting of approximately 39.69 acres
located at Fort Dix, New Jersey, for the purpose of permitting
the Borough to develop the parcel for economic purposes.
 (2) The Secretary may convey, without consideration, to the
New Hanover Board of Education (in this section referred to as
the ``Board''), all right, title, and interest of the United
States in and to an additional parcel of real property
(including improvements thereon) at Fort Dix consisting of
approximately five acres for the purpose of permitting the
Board to develop the parcel for educational purposes.
 (b) Conditions of Conveyance.--(1) The conveyance under
subsection (a)(1) shall be subject to the condition that the
Borough--
 (A) use the conveyed property, directly or through
 an agreement with a public or private entity, for
 economic development purposes; or
 (B) convey the property to an appropriate public or
 private entity for use for such purposes.
 (2) The conveyance under subsection (a)(2) shall be subject
to the condition that Board develop and use the conveyed
property for educational purposes.
 (c) Reversion.--(1) If the Secretary determines at any time
that the real property conveyed under subsection (a)(1) is not
being used for economic development purposes, as required by
subsection (b)(1), all right, title, and interest in and to the
property conveyed under subsection (a)(1), including any
improvements thereon, shall revert to the United States, and
the United States shall have the right of immediate entry
thereon.
 (2) If the Secretary determines at any time that the real
property conveyed under subsection (a)(2) is not being used for
educational purposes, as required by subsection (b)(2), all
right, title, and interest in and to the property conveyed
under subsection (a)(2), including any improvements thereon,
shall revert to the United States, and the United States shall
have the right of immediate entry thereon.
 (d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by surveys satisfactory to
the Secretary. The cost of the survey in connection with the
conveyance under subsection (a)(1) shall be borne by the
Borough, and the cost of the survey in connection with the
conveyance under subsection (a)(2) shall be borne by the Board.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2836. LAND CONVEYANCES, FORT BRAGG, NORTH CAROLINA.

 (a) Conveyances Authorized.--(1) The Secretary of the Army
may convey, without consideration, to the Town of Spring Lake,
North Carolina (in this section referred to as the ``Town''),
all right, title, and interest of the United States in and to a
parcel of unimproved real property consisting of approximately
50 acres located at Fort Bragg, North Carolina.
 (2) The Secretary may convey, without consideration, to
Harnett County, North Carolina (in this section referred to as
the ``County''), all right, title, and interest of the United
States in and to a parcel of real property (including
improvements thereon), known as Tract No. 404-2, consisting of
approximately 157 acres located at Fort Bragg.
 (3) The Secretary may convey, at fair market value, to the
County all right, title, and interest of the United States in
and to a parcel of real property (including improvements
thereon), known as Tract No. 404-1, consisting of approximately
137 acres located at Fort Bragg.
 (b) Conditions of Conveyance.--(1) The conveyance under
subsection (a)(1) shall be subject to the condition that the
Town use the conveyed property for access to a waste treatment
facility and for economic development purposes.
 (2) The conveyance under subsection (a)(2) shall be subject
to the condition that County develop and use the conveyed
property for educational purposes.
 (c) Reversion.--(1) If the Secretary determines at any time
that the real property conveyed under subsection (a)(1) is not
being used in accordance with subsection (b)(1), all right,
title, and interest in and to the property conveyed under
subsection (a)(1), including any improvements thereon, shall
revert to the United States, and the United States shall have
the right of immediate entry thereon.
 (2) If the Secretary determines at any time that the real
property conveyed under subsection (a)(2) is not being used in
accordance with subsection (b)(2), all right, title, and
interest in and to the property conveyed under subsection
(a)(2), including any improvements thereon, shall revert to the
United States, and the United States shall have the right of
immediate entry thereon.
 (d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by surveys satisfactory to
the Secretary. The cost of the survey in connection with the
conveyance under subsection (a)(1) shall be borne by the Town,
and the cost of the survey in connection with the conveyances
under paragraphs (2) and (3) of subsection (a) shall be borne
by the County.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2837. LAND CONVEYANCE, HAWTHORNE ARMY AMMUNITION DEPOT, MINERAL
 COUNTY, NEVADA.

 (a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to Mineral County, Nevada (in
this section referred to as the ``County''), all right, title,
and interest of the United States in and to a parcel of excess
real property, including improvements thereon, consisting of
approximately 33.1 acres located at Hawthorne Army Ammunition
Depot, Mineral County, Nevada, and commonly referred to as the
Schweer Drive Housing Area, for the purpose of permitting the
County to develop the parcel for economic purposes.
 (b) Conditions of Conveyance.--The conveyance authorized by
subsection (a) shall be subject to the following conditions:
 (1) That the County accept the conveyed property
 subject to such easements and rights of way in favor of
 the United States as the Secretary considers
 appropriate.
 (2) That the County, if the County sells any
 portion of the property conveyed under subsection (a)
 before the end of the 10-year period beginning on the
 date of enactment of this Act, pay to the United States
 an amount equal to the lesser of--
 (A) the amount of sale of the property
 sold; or
 (B) the fair market value of the property
 sold as determined without taking into account
 any improvements to such property by the
 County.
 (c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a), and of any easement or right of way granted
under subsection (b)(1), shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall be
borne by the County.
 (d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a), and any easement or right
of way granted under subsection (b)(1), as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2838. EXPANSION OF LAND CONVEYANCE AUTHORITY, INDIANA ARMY
 AMMUNITION PLANT, CHARLESTOWN, INDIANA.

 (a) Additional Conveyance.--Subsection (a) of section 2858
of the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104-106; 110 Stat. 571) is amended--
 (1) by inserting ``(1)'' before ``The Secretary of
 the Army''; and
 (2) by adding at the end the following new
 paragraph:
 ``(2) The Secretary may also convey to the State, without
consideration, an additional parcel of real property at the
Indiana Army Ammunition Plant consisting of approximately 500
acres located along the Ohio River.''.
 (b) Conforming Amendments.--Such section is further amended
by striking out ``conveyance'' both places it appears in
subsections (b) and (d) and inserting in lieu thereof
``conveyances''.

SEC. 2839. MODIFICATION OF LAND CONVEYANCE, LOMPOC, CALIFORNIA.

 (a) Change in Authorized Uses of Land.--Section 834(b)(1)
of the Military Construction Authorization Act, 1985 (Public
Law 98-407; 98 Stat. 1526), is amended by striking out
subparagraphs (A) and (B) and inserting in lieu thereof the
following new subparagraphs:
 ``(A) for educational and recreational purposes;
 ``(B) for open space; or''.
 (b) Conforming Deed Changes.--With respect to the land
conveyance made pursuant to section 834 of the Military
Construction Authorization Act, 1985, the Secretary of the Army
shall execute and file in the appropriate office or offices an
amended deed or other appropriate instrument effectuating the
changes to the authorized uses of the conveyed property
resulting from the amendment made by subsection (a).

SEC. 2840. MODIFICATION OF LAND CONVEYANCE, ROCKY MOUNTAIN ARSENAL,
 COLORADO.

 Section 5(c)(1) of Public Law 102-402 (106 Stat. 1966; 16
U.S.C. 668dd note) is amended by striking out the second
sentence and inserting in lieu thereof the following new
sentence: ``The Administrator shall convey the transferred
property to Commerce City, Colorado, for consideration in an
amount equal to the fair market value of the property (as
determined jointly by the Administrator and the City).''.

SEC. 2841. CORRECTION OF LAND CONVEYANCE AUTHORITY, ARMY RESERVE
 CENTER, ANDERSON, SOUTH CAROLINA.

 (a) Correction of Conveyee.--Subsection (a) of section 2824
of the Military Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104-201; 110 Stat. 2793) is
amended by striking out ``County of Anderson, South Carolina
(in this section referred to as the `County')'' and inserting
in lieu thereof ``Board of Education, Anderson County, South
Carolina (in this section referred to as the `Board')''.
 (b) Conforming Amendments.--Subsections (b) and (c) of such
section are each amended by striking out ``the County'' and
inserting in lieu thereof ``the Board''.

 PART II--NAVY CONVEYANCES

SEC. 2851. LAND CONVEYANCE, TOPSHAM ANNEX, NAVAL AIR STATION,
 BRUNSWICK, MAINE.

 (a) Conveyance Authorized.--The Secretary of the Navy may
convey, without consideration, to the Maine School
Administrative District No. 75, Topsham, Maine (in this section
referred to as the ``District''), all right, title, and
interest of the United States in and to a parcel of real
property, including improvements thereon, consisting of
approximately 40 acres located at the Topsham Annex, Naval Air
Station, Brunswick, Maine.
 (b) Condition of Conveyance.--The conveyance under
subsection (a) shall be subject to the condition that the
District use the conveyed property for educational purposes.
 (c) Reversion.--If the Secretary determines at any time
that the real property conveyed under subsection (a) is not
being used for the purpose specified in subsection (b), all
right, title, and interest in and to the property, including
any improvements thereon, shall revert to the United States,
and the United States shall have the right of immediate entry
thereon.
 (d) Interim Lease.--(1) Until such time as the real
property described in subsection (a) is conveyed by deed, the
Secretary may lease the property, together with the
improvements thereon, to the District.
 (2) As consideration for the lease under this subsection,
the District shall provide such security services for the
property covered by the lease, and carry out such maintenance
work with respect to the property, as the Secretary shall
specify in the lease.
 (e) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
The cost of the survey shall be borne by the District.
 (f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a), and the lease, if any,
under subsection (d), as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2852. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT NO.
 464, OYSTER BAY, NEW YORK.

 (a) Conveyance Authorized.--(1) The Secretary of the Navy
may convey, without consideration, to the County of Nassau, New
York (in this section referred to as the ``County''), all
right, title, and interest of the United States in and to
parcels of real property consisting of approximately 110 acres
and comprising the Naval Weapons Industrial Reserve Plant No.
464, Oyster Bay, New York.
 (2)(A) As part of the conveyance authorized in paragraph
(1), the Secretary may convey to the County such improvements,
equipment, fixtures, and other personal property (including
special tooling equipment and special test equipment) located
on the parcels as the Secretary determines to be not required
by the Navy for other purposes.
 (B) The Secretary may permit the County to review and
inspect the improvements, equipment, fixtures, and other
personal property located on the parcels for purposes of the
conveyance authorized by this paragraph.
 (b) Condition of Conveyance.--The conveyance of the parcels
authorized in subsection (a) shall be subject to the condition
that the County--
 (1) use the parcels, directly or through an
 agreement with a public or private entity, for economic
 redevelopment purposes or such other public purposes as
 the County determines appropriate; or
 (2) convey the parcels to an appropriate public or
 private entity for use for such purposes.
 (c) Reversion.--If, during the five-year period beginning
on the date the Secretary makes the conveyance authorized under
subsection (a), the Secretary determines that the conveyed real
property is not being used for a purpose specified in
subsection (b), all right, title, and interest in and to the
property, including any improvements thereon, shall revert to
the United States, and the United States shall have the right
of immediate entry onto the property.
 (d) Interim Lease.--(1) Until such time as the real
property described in subsection (a) is conveyed by deed, the
Secretary may lease the property, together with improvements
thereon, to the County.
 (2) As consideration for the lease under this subsection,
the County shall provide such security services and fire
protection services for the property covered by the lease, and
carry out such maintenance work with respect to the property,
as the Secretary shall specify in the lease.
 (e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
County.
 (f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a), and the lease, if any,
under subsection (d), as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2853. CORRECTION OF LEASE AUTHORITY, NAVAL AIR STATION, MERIDIAN,
 MISSISSIPPI.

 (a) Correction of Lessee.--Subsection (a) of section 2837
of the Military Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104-201; 110 Stat. 2798) is
amended--
 (1) by striking out ``State of Mississippi (in this
 section referred to as the `State')'' and inserting in
 lieu thereof ``County of Lauderdale, Mississippi (in
 this section referred to as the `County')''; and
 (2) by striking out ``The State'' and inserting in
 lieu thereof ``The County''.
 (b) Conforming Amendments.--Subsections (b) and (c) of such
section are amended by striking out ``State'' each place it
appears and inserting in lieu thereof ``County''.

 PART III--AIR FORCE CONVEYANCES

SEC. 2861. LAND TRANSFER, EGLIN AIR FORCE BASE, FLORIDA.

 (a) Transfer.--The real property withdrawn by Executive
Order 4525, dated October 1, 1826, which consists of
approximately 440 acres of land at Cape San Blas, Gulf County,
Florida, and any improvements thereon, is transferred from the
administrative jurisdiction of the Secretary of Transportation
to the administrative jurisdiction of the Secretary of the Air
Force, without reimbursement. Executive Order 4525 is revoked,
and the transferred real property shall be administered by the
Secretary of the Air Force pursuant to the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and
such other laws as may be applicable to Federal real property.
 (b) Use of Property.--The real property transferred under
subsection (a) may be used in conjunction with operations at
Eglin Air Force Base, Florida.
 (c) Legal Description.--The exact acreage and legal
description of the real property to be transferred under
subsection (a) shall be determined by a survey satisfactory to
the Secretary of the Air Force. The cost of the survey shall be
borne by the Secretary of the Air Force.

SEC. 2862. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

 (a) Conveyance Authorized.--(1) The Secretary of the Air
Force may convey to Air Force Village West, Incorporated (in
this section referred to as the ``Corporation''), of Riverside,
California, all right, title, and interest of the United States
in and to a parcel of real property located at March Air Force
Base, California, and consisting of approximately 75 acres, as
more fully described in subsection (c).
 (2) If the Secretary does not make the conveyance
authorized by paragraph (1) to the Corporation on or before
January 1, 2006, the Secretary shall convey the real property
instead to the March Joint Powers Authority, the redevelopment
authority established for March Air Force Base.
 (b) Consideration.--As consideration for the conveyance
under subsection (a)(1), the Corporation shall pay to the
United States an amount equal to the fair market value of the
real property, as determined by the Secretary.
 (c) Land Description.--The real property to be conveyed
under subsection (a) is contiguous to land conveyed to the
Corporation pursuant to section 835 of the Military
Construction Authorization Act, 1985 (Public Law 98-407; 98
Stat. 1527), and lies within sections 27, 28, 33, and 34 of
Township 3 South, Range 4 West, San Bernardino Base and
Meridian, County of Riverside, California. The exact acreage
and legal description of the real property shall be determined
by a survey satisfactory to the Secretary. The cost of the
survey shall be borne by the party receiving the property.
 (d) Technical Corrections Regarding Previous Conveyance.--
Section 835 of the Military Construction Authorization Act,
1985 (Public Law 98-407; 98 Stat. 1527), is amended--
 (1) in subsection (b), by striking out ``subsection
 (b)'' and inserting in lieu thereof ``subsection (a)'';
 and
 (2) in subsection (c), by striking out ``Clark
 Street,'' and all that follows through the period and
 inserting in lieu thereof ``Village West Drive, on the
 west by Allen Avenue, on the south by 8th Street, and
 the north is an extension of 11th Street between Allen
 Avenue and Clark Street.''.

SEC. 2863. LAND CONVEYANCE, ELLSWORTH AIR FORCE BASE, SOUTH DAKOTA.

 (a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to the Greater Box Elder
Area Economic Development Corporation, Box Elder, South Dakota
(in this section referred to as the ``Corporation''), all
right, title, and interest of the United States in and to the
parcels of real property located at Ellsworth Air Force Base,
South Dakota, referred to in subsection (b).
 (b) Covered Property.--(1) Subject to paragraph (2), the
real property referred to in subsection (a) is the following:
 (A) A parcel of real property, together with any
 improvements thereon, consisting of approximately 53.32
 acres and comprising the Skyway Military Family Housing
 Area.
 (B) A parcel of real property, together with any
 improvements thereon, consisting of approximately
 137.56 acres and comprising the Renal Heights Military
 Family Housing Area.
 (C) A parcel of real property, together with any
 improvements thereon, consisting of approximately 14.92
 acres and comprising the East Nike Military Family
 Housing Area.
 (D) A parcel of real property, together with any
 improvements thereon, consisting of approximately 14.69
 acres and comprising the South Nike Military Family
 Housing Area.
 (E) A parcel of real property, together with any
 improvements thereon, consisting of approximately 14.85
 acres and comprising the West Nike Military Family
 Housing Area.
 (2) The real property referred to in subsection (a) does
not include the portion of real property referred to in
paragraph (1)(B) that the Secretary determines to be required
for the construction of an access road between the main gate of
Ellsworth Air Force Base and an interchange on Interstate Route
90 located in the vicinity of mile marker 67 in South Dakota.
 (c) Conditions of Conveyance.--The conveyance of the real
property referred to in subsection (b) shall be subject to the
following conditions:
 (1) That the Corporation, and any person or entity
 to which the Corporation transfers the property, comply
 in the use of the property with the applicable
 provisions of the Ellsworth Air Force Base Air
 Installation Compatible Use Zone Study.
 (2) That the Corporation convey a portion of the
 real property referred to in subsection (b)(1)(A),
 together with any improvements thereon, consisting of
 approximately 20 acres to the Douglas School District,
 South Dakota, for use for education purposes.
 (d) Reversion.--If the Secretary determines that any
portion of the real property conveyed under subsection (a) is
not being used in accordance with the applicable provision of
subsection (c), all right, title, and interest in and to that
portion of the real property (including any improvements
thereon, shall revert to the United States, and the United
States shall have the right of immediate entry thereon.
 (e) Legal Description.--The exact acreage and legal
description of the property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
The cost of the survey shall be borne by the Corporation.
 (f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2864. LAND CONVEYANCE, HANCOCK FIELD, SYRACUSE, NEW YORK.

 (a) Conveyance Authorized.--(1) The Secretary of the Air
Force may convey, without consideration, to Onondaga County,
New York (in this section referred to as the ``County''), all
right, title, and interest of the United States in and to a
parcel of real property, including any improvements thereon,
consisting of approximately 14.9 acres and located at Hancock
Field, Syracuse, New York, the site of facilities no longer
required for use by the 152nd Air Control Group of the New York
Air National Guard.
 (2) If, at the time of the conveyance authorized by
paragraph (1), the property to be conveyed is under the
jurisdiction of the Administrator of General Services rather
than the Secretary, the Administrator shall make the
conveyance.
 (b) Condition of Conveyance.--The conveyance authorized by
subsection (a) shall be subject to the condition that the
County use the property conveyed for economic development
purposes.
 (c) Reversion.--If the Secretary (or the Administrator in
the event the conveyance is made by the Administrator)
determines at any time that the property conveyed pursuant to
this section is not being used for the purposes specified in
subsection (b), all right, title, and interest in and to the
property, including any improvements thereon, shall revert to
the United States, and the United States shall have the right
of immediate entry thereon.
 (d) Description of Property.--The exact acreage and legal
description of the property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary
(or the Administrator in the event the conveyance is made by
the Administrator). The cost of the survey shall be borne by
the County.
 (e) Additional Terms and Conditions.--The Secretary (or the
Administrator in the event the conveyance is made by the
Administrator) may require such additional terms and conditions
in connection with the conveyance under subsection (a) as the
Secretary or the Administrator, as the case may be, considers
appropriate to protect the interests of the United States.

SEC. 2865. LAND CONVEYANCE, HAVRE AIR FORCE STATION, MONTANA, AND HAVRE
 TRAINING SITE, MONTANA.

 (a) Conveyance Authorized.--(1) The Secretary of the Air
Force may convey, without consideration, to the Bear Paw
Development Corporation, Havre, Montana (in this section
referred to as the ``Corporation''), all, right, title, and
interest of the United States in and to the real property
described in paragraph (2).
 (2) The authority in paragraph (1) applies to the following
real property:
 (A) A parcel of real property, including any
 improvements thereon, consisting of approximately 85
 acres and comprising the Havre Air Force Station,
 Montana.
 (B) A parcel of real property, including any
 improvements thereon, consisting of approximately 9
 acres and comprising the Havre Training Site, Montana.
 (b) Conditions of Conveyance.--The conveyance authorized by
subsection (a) shall be subject to the following conditions:
 (1) That the Corporation--
 (A) convey to the Box Elder School District
 13G, Montana, 10 single-family homes located on
 the property to be conveyed under that
 subsection as jointly agreed upon by the
 Corporation and the school district; and
 (B) grant the school district access to the
 property for purposes of removing the homes
 from the property.
 (2) That the Corporation--
 (A) convey to the Hays/Lodgepole School
 District 50, Montana--
 (i) 27 single-family homes located
 on the property to be conveyed under
 that subsection as jointly agreed upon
 by the Corporation and the school
 district;
 (ii) one barracks housing unit
 located on the property;
 (iii) two steel buildings (nos. 7
 and 8) located on the property;
 (iv) two tin buildings (nos. 37 and
 44) located on the property; and
 (v) miscellaneous personal property
 located on the property that is
 associated with the buildings conveyed
 under this subparagraph; and
 (B) grant the school district access to the
 property for purposes of removing such homes
 and buildings, the housing unit, and such
 personal property from the property.
 (3) That the Corporation--
 (A) convey to the District 4 Human
 Resources Development Council, Montana, eight
 single-family homes located on the property to
 be conveyed under that subsection as jointly
 agreed upon by the Corporation and the council;
 and
 (B) grant the council access to the
 property for purposes of removing such homes
 from the property.
 (4) That any property conveyed under subsection (a)
 that is not conveyed under this subsection be used for
 economic development purposes or housing purposes.
 (c) Reversion.--If the Secretary determines at any time
that the portion of the property conveyed under subsection (a)
which is covered by the condition specified in subsection
(b)(4) is not being used for the purposes specified in that
subsection, all right, title, and interest in and to such
property, including any improvements thereon, shall revert to
the United States,and the United States shall have the right of
immediate entry thereon.
 (d) Description of Property.--The exact acreages and legal
description of the parcels of property to be conveyed under
subsection (a) shall be determined by surveys satisfactory to
the Secretary. The cost of the surveys shall be borne by the
Corporation.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2866. LAND CONVEYANCE, CHARLESTON FAMILY HOUSING COMPLEX, BANGOR,
 MAINE.

 (a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to the City of Bangor, Maine
(in this section referred to as the ``City''), all right,
title, and interest of the United States in and to a parcel of
real property consisting of approximately 19.8 acres, including
improvements thereon, located in Bangor, Maine, and known as
the Charleston Family Housing Complex.
 (b) Purpose of Conveyance.--The purpose of the conveyance
under subsection (a) is to facilitate the reuse of the real
property, currently unoccupied, which the City proposes to use
to provide housing opportunities for first-time home buyers.
 (c) Condition of Conveyance.--The conveyance authorized by
subsection (a) shall be subject to the condition that the City,
if the City sells any portion of the property conveyed under
subsection (a) before the end of the 10-year period beginning
on the date of enactment of this Act, pay to the United States
an amount equal to the lesser of--
 (1) the amount of sale of the property sold; or
 (2) the fair market value of the property sold as
 determined without taking into account any improvements
 to such property by the City.
 (d) Description of Property.--The exact acreage and legal
description of the real property conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
The cost of the survey shall be borne by the City.
 (e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2867. STUDY OF LAND EXCHANGE OPTIONS, SHAW AIR FORCE BASE, SOUTH
 CAROLINA.

 Section 2874 of the Military Construction Authorization Act
for Fiscal Year 1996 (division B of Public Law 104-106; 110
Stat. 583) is amended by adding at the end the following new
subsection:
 ``(g) Study of Exchange Options.--To facilitate the use of
a land exchange to acquire the real property described in
subsection (a), the Secretary shall conduct a study to identify
real property in the possession of the Air Force (located in
the State of South Carolina or elsewhere) that satisfies the
requirements of subsection (b)(2), is acceptable to the party
holding the property to be acquired, and is otherwise suitable
for exchange under this section. Not later than three months
after the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998, the Secretary shall
submit to Congress a report containing the results of the
study.''.

 Subtitle E--Other Matters

SEC. 2871. REPEAL OF REQUIREMENT TO OPERATE NAVAL ACADEMY DAIRY FARM.

 (a) Operation.--(1) Chapter 603 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 6976. Operation of Naval Academy dairy farm

 ``(a) Discretion Regarding Continued Operation.--(1)
Subject to paragraph (2), the Secretary of the Navy may
terminate or reduce the dairy or other operations conducted at
the Naval Academy dairy farm located in Gambrills, Maryland.
 ``(2) Notwithstanding the termination or reduction of
operations at the Naval Academy dairy farm under paragraph(1),
the real property containing the dairy farm (consisting of
approximately 875 acres)--
 ``(A) may not be declared to be excess real
 property to the needs of the Navy or transferred or
 otherwise disposed of by the Navy or any Federal
 agency; and
 ``(B) shall be maintained in its rural and
 agricultural nature.
 ``(b) Lease Authority.--(1) Subject to paragraph (2), to
the extent that the termination or reduction of operations at
the Naval Academy dairy farm permit, the Secretary of the Navy
may lease the real property containing the dairy farm, and any
improvements and personal property thereon, to such persons and
under such terms as the Secretary considers appropriate. In
leasing any of the property, the Secretary may give a
preference to persons who will continue dairy operations on the
property.
 ``(2) Any lease of property at the Naval Academy dairy farm
shall be subject to a condition that the lessee maintain the
rural and agricultural nature of the leased property.
 ``(c) Effect of Other Laws.--Nothing in section 6971 of
this title shall be construed to require the Secretary of the
Navy or the Superintendent of the Naval Academy to operate a
dairy farm for the Naval Academy in Gambrills, Maryland, or any
other location.''.
 (2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``6976. Operation of Naval Academy dairy farm.''.

 (b) Conforming Repeal of Existing Requirements.--Section
810 of the Military Construction Authorization Act, 1968
(Public Law 90-110; 81 Stat. 309), is repealed.
 (c) Other Conforming Amendments.--(1) Section 6971(b)(5) of
title 10, United States Code, is amended by inserting ``(if
any)'' before the period at the end.
 (2) Section 2105(b) of title 5, United States Code, is
amended by inserting ``(if any)'' after ``Academy dairy''.

SEC. 2872. LONG-TERM LEASE OF PROPERTY, NAPLES, ITALY.

 (a) Authority.--Subject to subsection (d), the Secretary of
the Navy may acquire by long-term lease structures and real
property relating to a regional hospital complex in Naples,
Italy, that the Secretary determines to be necessary for
purposes of the Naples Improvement Initiative.
 (b) Lease Term.--Notwithstanding section 2675 of title 10,
United States Code, the lease authorized by subsection (a)
shall be for a term of not more than 20 years.
 (c) Expiration of Authority.--The authority of the
Secretary to enter into a lease under subsection (a) shall
expire on September 30, 2002.
 (d) Authority Contingent on Appropriations Acts.--The
authority of the Secretary to enter into a lease under
subsection (a) is available only to the extent or in the amount
provided in advance in appropriations Acts.

SEC. 2873. DESIGNATION OF MILITARY FAMILY HOUSING AT LACKLAND AIR FORCE
 BASE, TEXAS, IN HONOR OF FRANK TEJEDA, A FORMER
 MEMBER OF THE HOUSE OF REPRESENTATIVES.

 The military family housing developments to be constructed
at two locations on Government property at Lackland Air Force
Base, Texas, under the authority of subchapter IV of chapter
169 of title 10, United States Code, shall be designated by the
Secretary of the Air Force, at an appropriate time, as follows:
 (1) The eastern development shall be designated as
 ``Frank Tejeda Estates East''.
 (2) The western development shall be designated as
 ``Frank Tejeda Estates West''.

SEC. 2874. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF MILITARY
 INSTALLATIONS.

 (a) Installation Required.--In at least one metropolitan
area of the United States containing multiple military
installations of one or more military departments or Defense
Agencies, the Secretary of Defense shall provide for the
installation of fiber-optics based telecommunications
technology to link as many of the installations in the area as
practicable in a telecommunications network. The Secretary
shall use a full and open competitive process, consistent with
section 2304 of title 10, United States Code, to provide for
the installation of the telecommunications network through one
or more new contracts.
 (b) Features of Network.--The telecommunications network
shall provide direct access to local and long distance
telephone carriers, allow for transmission of both classified
and unclassified information, and take advantage of the various
capabilities of fiber-optics based telecommunications
technology.
 (c) Time for Request for Bids or Proposals.--Not later than
March 30, 1998, the Secretary of Defense shall release a final
request for bids or proposals to provide the telecommunications
network or networks described in subsection (a).
 (d) Report on Implementation.--Not later than December 31,
1998, the Secretary of Defense shall submit to the
congressional defense committees a report on the implementation
of subsection (c), including the metropolitan area or areas
selected for the installation of a fiber-optics based
telecommunications network, the current telecommunication costs
for the Department of Defense in the selected area or areas,
the estimated cost of the fiber-optics based network, and
potential areas for the future use of fiber-optics based
networks.

 TITLE XXIX--SIKES ACT IMPROVEMENT

Sec. 2901. Short title.
Sec. 2902. Definition of Sikes Act for purposes of amendments.
Sec. 2903. Codification of short title of Act.
Sec. 2904. Preparation of integrated natural resources management plans.
Sec. 2905. Review for preparation of integrated natural resources
 management plans.
Sec. 2906. Transfer of wildlife conservation fees from closed military
 installations.
Sec. 2907. Annual reviews and reports.
Sec. 2908. Cooperative agreements.
Sec. 2909. Federal enforcement.
Sec. 2910. Natural resources management services.
Sec. 2911. Definitions.
Sec. 2912. Repeal of superseded provision.
Sec. 2913. Technical amendments.
Sec. 2914. Authorizations of appropriations.

SEC. 2901. SHORT TITLE.

 This title may be cited as the ``Sikes Act Improvement Act
of 1997''.

SEC. 2902. DEFINITION OF SIKES ACT FOR PURPOSES OF AMENDMENTS.

 In this title, the term ``Sikes Act'' means the Act
entitled ``An Act to promote effectual planning, development,
maintenance, and coordination of wildlife, fish, and game
conservation and rehabilitation in military reservations'',
approved September 15, 1960 (16 U.S.C. 670a et seq.), commonly
referred to as the ``Sikes Act''.

SEC. 2903. CODIFICATION OF SHORT TITLE OF ACT.

 The Sikes Act (16 U.S.C. 670a et seq.) is amended by
inserting before title I the following new section:

``SECTION 1. SHORT TITLE.

 ``This Act may be cited as the `Sikes Act'.''.

SEC. 2904. PREPARATION OF INTEGRATED NATURAL RESOURCES MANAGEMENT
 PLANS.

 (a) In General.--Section 101 of the Sikes Act (16 U.S.C.
670a(a)) is amended by striking out subsection (a) and
inserting in lieu thereof the following new subsection:
 ``(a) Authority of Secretary of Defense.--
 ``(1) Program.--
 ``(A) In general.--The Secretary of Defense
 shall carry out a program to provide for the
 conservation and rehabilitation of natural
 resources on military installations.
 ``(B) Integrated natural resources
 management plan.--To facilitate the program,
 the Secretary of each military department shall
 prepare and implement an integrated natural
 resources management plan for each military
 installation in the United States under the
 jurisdiction of the Secretary, unless the
 Secretary determines that the absence of
 significant natural resources on a particular
 installation makes preparation of such a plan
 inappropriate.
 ``(2) Cooperative preparation.--The Secretary of a
 military department shall prepare each integrated
 natural resources management plan for which the
 Secretary is responsible in cooperation with the
 Secretary of the Interior, acting through the Director
 of the United States Fish and Wildlife Service, and the
 head of each appropriate State fish and wildlife agency
 for the State in which the military installation
 concerned is located. Consistent with paragraph (4),
 the resulting plan for the military installation shall
 reflect the mutual agreement of the parties concerning
 conservation, protection, and management of fish and
 wildlife resources.
 ``(3) Purposes of program.--Consistent with the use
 of military installations to ensure the preparedness of
 the Armed Forces, the Secretaries of the military
 departments shall carry out the program required by
 this subsection to provide for--
 ``(A) the conservation and rehabilitation
 of natural resources on military installations;
 ``(B) the sustainable multipurpose use of
 the resources, which shall include hunting,
 fishing, trapping, and nonconsumptive uses; and
 ``(C) subject to safety requirements and
 military security, public access to military
 installations to facilitate the use.
 ``(4) Effect on other law.--Nothing in this title--
 ``(A)(i) affects any provision of a Federal
 law governing the conservation or protection of
 fish and wildlife resources; or
 ``(ii) enlarges or diminishes the
 responsibility and authority of any State for
 the protection and management of fish and
 resident wildlife; or
 ``(B) except as specifically provided in
 the other provisions of this section and in
 section 102, authorizes the Secretary of a
 military department to require a Federal
 license or permit to hunt, fish, or trap on a
 military installation.''.
 (b) Conforming Amendments.--Title I of the Sikes Act is
amended--
 (1) in section 101(b)(4) (16 U.S.C. 670a(b)(4)), by
 striking out ``cooperative plan'' each place it appears
 and inserting in lieu thereof ``integrated natural
 resources management plan'';
 (2) in section 101(c) (16 U.S.C. 670a(c)), in the
 matter preceding paragraph (1), by striking out ``a
 cooperative plan'' and inserting in lieu thereof ``an
 integrated natural resources management plan'';
 (3) in section 101(d) (16 U.S.C. 670a(d)), in the
 matter preceding paragraph (1), by striking out
 ``cooperative plans'' and inserting in lieu thereof
 ``integrated natural resources management plans'';
 (4) in section 101(e) (16 U.S.C. 670a(e)), by
 striking out ``Cooperative plans'' and inserting in
 lieu thereof ``Integrated natural resources management
 plans'';
 (5) in section 102 (16 U.S.C. 670b), by striking
 out ``a cooperative plan'' and inserting in lieu
 thereof ``an integrated natural resources management
 plan'';
 (6) in section 103 (16 U.S.C. 670c), by striking
 out ``a cooperative plan'' and inserting in lieu
 thereof ``an integrated natural resources management
 plan'';
 (7) in section 106(a) (16 U.S.C. 670f(a)), by
 striking out ``cooperative plans'' and inserting in
 lieu thereof ``integrated natural resources management
 plans''; and
 (8) in section 106(c) (16 U.S.C. 670f(c)), by
 striking out ``cooperative plans'' and inserting in
 lieu thereof ``integrated natural resources management
 plans''.
 (c) Required Elements of Plans.--Section 101(b) of the
Sikes Act (16 U.S.C. 670a(b)) is amended--
 (1) by striking out ``(b) Each cooperative'' and
 all that follows through the end of paragraph (1) and
 inserting in lieu thereof the following:
 ``(b) Required Elements of Plans.--Consistent with the use
of military installations to ensure the preparedness of the
Armed Forces, each integrated natural resources management plan
prepared under subsection (a)--
 ``(1) shall, to the extent appropriate and
 applicable, provide for--
 ``(A) fish and wildlife management, land
 management, forest management, and fish- and
 wildlife-oriented recreation;
 ``(B) fish and wildlife habitat enhancement
 or modifications;
 ``(C) wetland protection, enhancement, and
 restoration, where necessary for support of
 fish, wildlife, or plants;
 ``(D) integration of, and consistency
 among, the various activities conducted under
 the plan;
 ``(E) establishment of specific natural
 resource management goals and objectives and
 time frames for proposed action;
 ``(F) sustainable use by the public of
 natural resources to the extent that the use is
 not inconsistent with the needs of fish and
 wildlife resources;
 ``(G) public access to the military
 installation that is necessary or appropriate
 for the use described in subparagraph (F),
 subject to requirements necessary to ensure
 safety and military security;
 ``(H) enforcement of applicable natural
 resource laws (including regulations);
 ``(I) no net loss in the capability of
 military installation lands to support the
 military mission of the installation; and
 ``(J) such other activities as the
 Secretary of the military department determines
 appropriate;'';
 (2) in paragraph (2), by adding ``and'' at the end;
 (3) by striking out paragraph (3);
 (4) by redesignating paragraph (4) as paragraph
 (3); and
 (5) in paragraph (3)(A) (as so redesignated), by
 striking out ``collect the fees therefor,'' and
 inserting in lieu thereof ``collect, spend, administer,
 and account for fees for the permits,''.

SEC. 2905. REVIEW FOR PREPARATION OF INTEGRATED NATURAL RESOURCES
 MANAGEMENT PLANS.

 (a) Definitions.--In this section, the terms ``military
installation'' and ``United States'' have the meanings provided
in section 100 of the Sikes Act (as added by section 2911).
 (b) Review of Military Installations.--
 (1) Review.--Not later than 270 days after the date
 of enactment of this Act, the Secretary of each
 military department shall--
 (A) review each military installation in
 the United States that is under the
 jurisdiction of that Secretary to determine the
 military installations for which the
 preparation of an integrated natural resources
 management plan under section 101 of the Sikes
 Act (as amended by this title) is appropriate;
 and
 (B) submit to the Secretary of Defense a
 report on the determinations.
 (2) Report to congress.--Not later than one year
 after the date of enactment of this Act, the Secretary
 of Defense shall submit to Congress a report on the
 reviews conducted under paragraph (1). The report shall
 include--
 (A) a list of the military installations
 reviewed under paragraph (1) for which the
 Secretary of the appropriate military
 department determines that the preparation of
 an integrated natural resources management plan
 is not appropriate; and
 (B) for each of the military installations
 listed under subparagraph (A), an explanation
 of each reason such a plan is not appropriate.
 (c) Deadline for Integrated Natural Resources Management
Plans.--Not later than three years after the date of the
submission of the report required under subsection (b)(2), the
Secretary of each military department shall, for each military
installation with respect to which the Secretary has not
determined under subsection (b)(2)(A) that preparation of an
integrated natural resources management plan is not
appropriate--
 (1) prepare and begin implementing such a plan in
 accordance with section 101(a) of the Sikes Act (as
 amended by this title); or
 (2) in the case of a military installation for
 which there is in effect a cooperative plan under
 section 101(a) of the Sikes Act on the day before the
 date of enactment of this Act, complete negotiations
 with the Secretary of the Interior and the heads of the
 appropriate State agencies regarding changes to the
 plan that are necessary for the plan to constitute an
 integrated natural resources management plan that
 complies with that section, as amended by this title.
 (d) Public Comment.--The Secretary of each military
department shall provide an opportunity for the submission of
public comments on--
 (1) integrated natural resources management plans
 proposed under subsection (c)(1); and
 (2) changes to cooperative plans proposed under
 subsection (c)(2).

SEC. 2906. TRANSFER OF WILDLIFE CONSERVATION FEES FROM CLOSED MILITARY
 INSTALLATIONS.

 Section 101(b)(3)(B) of the Sikes Act (16 U.S.C. 670a(b))
(as redesignated by section 2904(c)(4)) is amended by inserting
before the period at the end the following: ``, unless the
military installation is subsequently closed, in which case the
fees may be transferred to another military installation to be
used for the same purposes''.

SEC. 2907. ANNUAL REVIEWS AND REPORTS.

 Section 101 of the Sikes Act (16 U.S.C. 670a) is amended by
adding at the end the following new subsection:
 ``(f) Reviews and Reports.--
 ``(1) Secretary of defense.--Not later than March 1
 of each year, the Secretary of Defense shall review the
 extent to which integrated natural resources management
 plans were prepared or were in effect and implemented
 in accordance with this title in the preceding year,
 and submit a report on the findings of the review to
 the committees. Each report shall include--
 ``(A) the number of integrated natural
 resources management plans in effect in the
 year covered by the report, including the date
 on which each plan was issued in final form or
 most recently revised;
 ``(B) the amounts expended on conservation
 activities conducted pursuant to the plans in
 the year covered by the report; and
 ``(C) an assessment of the extent to which
 the plans comply with this title.
 ``(2) Secretary of the interior.--Not later than
 March 1 of each year and in consultation with the heads
 of State fish and wildlife agencies, the Secretary of
 the Interior shall submit a report to the committees on
 the amounts expended by the Department of the Interior
 and the State fish and wildlife agencies in the year
 covered by the report on conservation activities
 conducted pursuant to integrated natural resources
 management plans.
 ``(3) Definition of committees.--In this
 subsection, the term `committees' means--
 ``(A) the Committee on Resources and the
 Committee on National Security of the House of
 Representatives; and
 ``(B) the Committee on Armed Services and
 the Committee on Environment and Public Works
 of the Senate.''.

SEC. 2908 COOPERATIVE AGREEMENTS.

 Section 103a of the Sikes Act (16 U.S.C. 670c-1) is
amended--
 (1) in subsection (a), by striking out ``Secretary
 of Defense'' and inserting in lieu thereof ``Secretary
 of a military department'';
 (2) by striking out subsection (b) and inserting in
 lieu thereof the following new subsection:
 ``(b) Multiyear Agreements.--Funds appropriated to the
Department of Defense for a fiscal year may be obligated to
cover the cost of goods and services provided under a
cooperative agreement entered into under subsection (a) or
through an agency agreement under section 1535 of title 31,
United States Code, during any 18-month period beginning in
that fiscal year, without regard to whether the agreement
crosses fiscal years.''.

SEC. 2909. FEDERAL ENFORCEMENT.

 Title I of the Sikes Act is amended--
 (1) by redesignating section 106 (16 U.S.C. 670f)
 as section 108; and
 (2) by inserting after section 105 (16 U.S.C. 670e)
 the following new section:

``SEC. 106. FEDERAL ENFORCEMENT OF OTHER LAWS.

 ``All Federal laws relating to the management of natural
resources on Federal land may be enforced by the Secretary of
Defense with respect to violations of the laws that occur on
military installations within the United States.''.

SEC. 2910. NATURAL RESOURCES MANAGEMENT SERVICES.

 Title I of the Sikes Act is amended by inserting after
section 106 (as added by section 2909) the following new
section:

``SEC. 107. NATURAL RESOURCES MANAGEMENT SERVICES.

 ``To the extent practicable using available resources, the
Secretary of each military department shall ensure that
sufficient numbers of professionally trained natural resources
management personnel and natural resources law enforcement
personnel are available and assigned responsibility to perform
tasks necessary to carry out this title, including the
preparation and implementation of integrated natural resources
management plans.''.

SEC. 2911. DEFINITIONS.

 Title I of the Sikes Act is amended by inserting before
section 101 (16 U.S.C. 670a) the following new section:

``SEC. 100. DEFINITIONS.

 ``In this title:
 ``(1) Military installation.--The term `military
 installation'--
 ``(A) means any land or interest in land
 owned by the United States and administered by
 the Secretary of Defense or the Secretary of a
 military department, except land under the
 jurisdiction of the Assistant Secretary of the
 Army having responsibility for civil works;
 ``(B) includes all public lands withdrawn
 from all forms of appropriation under public
 land laws and reserved for use by the Secretary
 of Defense or the Secretary of a military
 department; and
 ``(C) does not include any land described
 in subparagraph (A) or (B) that is subject to
 an approved recommendation for closure under
 the Defense Base Closure and Realignment Act of
 1990 (part A of title XXIX of Public Law 101-
 510; 10 U.S.C. 2687 note).
 ``(2) State fish and wildlife agency.--The term
 `State fish and wildlife agency' means the one or more
 agencies of State government that are responsible under
 State law for managing fish or wildlife resources.
 ``(3) United states.--The term `United States'
 means the States, the District of Columbia, and the
 territories and possessions of the United States.''.

SEC. 2912. REPEAL OF SUPERSEDED PROVISION.

 Section 2 of the Act of October 27, 1986 (Public Law 99-
561; 16 U.S.C. 670a-1), is repealed.

SEC. 2913. TECHNICAL AMENDMENTS.

 Title I of the Sikes Act, as amended by this title, is
amended--
 (1) in the heading for the title, by striking out
 ``MILITARY RESERVATIONS'' and inserting in lieu thereof
 ``MILITARY INSTALLATIONS'';
 (2) in section 101(b)(3) (16 U.S.C. 670a(b)(3)), as
 redesignated by section 2904(c)(4)--
 (A) in subparagraph (A), by striking out
 ``the reservation'' and inserting in lieu
 thereof ``the installation''; and
 (B) in subparagraph (B), by striking out
 ``the military reservation'' and inserting in
 lieu thereof ``the military installation'';
 (3) in section 101(c) (16 U.S.C. 670a(c))--
 (A) in paragraph (1), by striking out ``a
 military reservation'' and inserting in lieu
 thereof ``a military installation''; and
 (B) in paragraph (2), by striking out ``the
 reservation'' and inserting in lieu thereof
 ``the installation'';
 (4) in section 101(e) (16 U.S.C. 670a(e)), by
 striking ``the Federal Grant and Cooperative Agreement
 Act of 1977 (41 U.S.C. 501 et seq.)'' and inserting
 ``chapter 63 of title 31, United States Code'';
 (5) in section 102 (16 U.S.C. 670b), by striking
 out ``military reservations'' and inserting in lieu
 thereof ``military installations''; and
 (6) in section 103 (16 U.S.C. 670c)--
 (A) by striking out ``military
 reservations'' and inserting in lieu thereof
 ``military installations''; and
 (B) by striking out ``such reservations''
 and inserting in lieu thereof ``the
 installations''.

SEC. 2914. AUTHORIZATIONS OF APPROPRIATIONS.

 (a) Conservation Programs on Military Installations.--
Subsections (b) and (c) of section 108 of the Sikes Act (as
redesignated by section 2909(1)) are each amended by striking
out ``1983'' and all that follows through ``1993,'' and
inserting in lieu thereof ``1998 through 2003,''.
 (b) Conservation Programs on Public Lands.--Section 209 of
the Sikes Act (16 U.S.C. 670o) is amended--
 (1) in subsection (a), by striking out ``the sum of
 $10,000,000'' and all that follows through ``to enable
 the Secretary of the Interior'' and inserting in lieu
 thereof ``$4,000,000 for each of fiscal years 1998
 through 2003, to enable the Secretary of the
 Interior''; and
 (2) in subsection (b), by striking out ``the sum of
 $12,000,000'' and all that follows through ``to enable
 the Secretary of Agriculture'' and inserting in lieu
 thereof ``$5,000,000 for each of fiscal years 1998
 through 2003, to enable the Secretary of Agriculture''.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
 OTHER AUTHORIZATIONS

 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

 Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.
Sec. 3102. Environmental restoration and waste management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

 Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction
 activities.
Sec. 3127. Funds available for all national security programs of the
 Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

 Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Memorandum of understanding for use of national laboratories
 for ballistic missile defense programs.
Sec. 3132. Defense environmental management privatization projects.
Sec. 3133. International cooperative stockpile stewardship.
Sec. 3134. Modernization of enduring nuclear weapons complex.
Sec. 3135. Tritium production.
Sec. 3136. Processing, treatment, and disposition of spent nuclear fuel
 rods and other legacy nuclear materials at the Savannah River
 Site.
Sec. 3137. Limitations on use of funds for laboratory directed research
 and development purposes.
Sec. 3138. Pilot program relating to use of proceeds of disposal or
 utilization of certain Department of Energy assets.
Sec. 3139. Modification and extension of authority relating to
 appointment of certain scientific, engineering, and technical
 personnel.
Sec. 3140. Limitation on use of funds for subcritical nuclear weapons
 tests.
Sec. 3141. Limitation on use of certain funds until future use plans are
 submitted.

 Subtitle D--Other Matters

Sec. 3151. Plan for stewardship, management, and certification of
 warheads in the nuclear weapons stockpile.
Sec. 3152. Repeal of obsolete reporting requirements.
Sec. 3153. Study and funding relating to implementation of workforce
 restructuring plans.
Sec. 3154. Report and plan for external oversight of national
 laboratories.
Sec. 3155. University-based research collaboration program.
Sec. 3156. Stockpile stewardship program.
Sec. 3157. Reports on advanced supercomputer sales to certain foreign
 nations.
Sec. 3158. Transfers of real property at certain Department of Energy
 facilities.
Sec. 3159. Requirement to delegate certain authorities to site manager
 of Hanford Reservation.
Sec. 3160. Submittal of biennial waste management reports.
Sec. 3161. Department of Energy Security Management Board.
Sec. 3162. Submittal of annual report on status of security functions at
 nuclear weapons facilities.
Sec. 3163. Modification of authority on Commission on Maintaining United
 States Nuclear Weapons Expertise.
Sec. 3164. Land transfer, Bandelier National Monument.
Sec. 3165. Final settlement of Department of Energy community assistance
 obligations with respect to Los Alamos National Laboratory,
 New Mexico.
Sec. 3166. Sense of Congress regarding the Y-12 Plant in Oak Ridge,
 Tennessee.
Sec. 3167. Support for public education in the vicinity of Los Alamos
 National Laboratory, New Mexico.
Sec. 3168. Improvements to Greenville Road, Livermore, California.
Sec. 3169. Report on alternative system for availability of funds.
Sec. 3170. Report on remediation under the Formerly Utilized Sites
 Remedial Action Program.

 Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

 (a) Stockpile Stewardship.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year
1998 for stockpile stewardship in carrying out weapons
activities necessary for national security programs in the
amount of $1,867,150,000, to be allocated as follows:
 (1) For core stockpile stewardship, $1,387,100,000,
 to be allocated as follows:
 (A) For operation and maintenance,
 $1,288,290,000.
 (B) For plant projects (including
 maintenance, restoration, planning,
 construction, acquisition, modification of
 facilities, and the continuation of projects
 authorized in prior years, and land acquisition
 related thereto), $98,810,000, to be allocated
 as follows:
 Project 97-D-102, dual-axis
 radiographic hydrotest facility, Los
 Alamos National Laboratory, Los Alamos,
 New Mexico, $46,300,000.
 Project 96-D-102, stockpile
 stewardship facilities revitalization,
 Phase VI, various locations,
 $19,810,000.
 Project 96-D-103, ATLAS, Los Alamos
 National Laboratory, Los Alamos, New
 Mexico, $13,400,000.
 Project 96-D-105, contained firing
 facility addition, Lawrence Livermore
 National Laboratory, Livermore,
 California, $19,300,000.
 (2) For inertial fusion, $414,800,000, to be
 allocated as follows:
 (A) For operation and maintenance,
 $217,000,000.
 (B) For the following plant project
 (including maintenance, restoration, planning,
 construction, acquisition, and modification of
 facilities, and land acquisition related
 thereto), $197,800,000, to be allocated as
 follows:
 Project 96-D-111, national ignition
 facility, location to be determined,
 $197,800,000.
 (3) For technology transfer and education,
 $65,250,000, to be allocated as follows:
 (A) For technology transfer, $56,250,000.
 (B) For education, $9,000,000.
 (b) Stockpile Management.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year
1998 for stockpile management in carrying out weapons
activities necessary for national security programs in the
amount of $2,052,150,000, to be allocated as follows:
 (1) For operation and maintenance, $1,891,265,000.
 (2) For plant projects (including maintenance,
 restoration, planning, construction, acquisition,
 modification of facilities, and the continuation of
 projects authorized in prior years, and land
 acquisition related thereto), $160,885,000, to be
 allocated as follows:
 Project 98-D-123, stockpile management
 restructuring initiative, tritium factory
 modernization and consolidation, Savannah River
 Site, Aiken, South Carolina, $11,000,000.
 Project 98-D-124, stockpile management
 restructuring initiative, Y-12 Plant
 consolidation, Oak Ridge, Tennessee,
 $6,450,000.
 Project 98-D-125, tritium extraction
 facility, Savannah River Site, Aiken, South
 Carolina, $9,650,000.
 Project 98-D-126, accelerator production of
 tritium, various locations, $67,865,000.
 Project 97-D-122, nuclear materials storage
 facility renovation, Los Alamos National
 Laboratory, Los Alamos, New Mexico, $9,200,000.
 Project 97-D-124, steam plant wastewater
 treatment facility upgrade, Y-12 Plant, Oak
 Ridge, Tennessee, $1,900,000.
 Project 96-D-122, sewage treatment quality
 upgrade (STQU), Pantex Plant, Amarillo, Texas,
 $6,900,000.
 Project 96-D-123, retrofit heating,
 ventilation, and air conditioning and chillers
 for ozone protection, Y-12 Plant, Oak Ridge,
 Tennessee, $2,700,000.
 Project 95-D-102, chemistry and metallurgy
 research (CMR) upgrades project, Los Alamos
 National Laboratory, Los Alamos, New Mexico,
 $5,000,000.
 Project 95-D-122, sanitary sewer upgrade,
 Y-12 Plant, Oak Ridge, Tennessee, $12,600,000.
 Project 94-D-124, hydrogen fluoride supply
 system, Y-12 Plant, Oak Ridge, Tennessee,
 $1,400,000.
 Project 94-D-125, upgrade life safety,
 Kansas City Plant, Kansas City, Missouri,
 $2,000,000.
 Project 93-D-122, life safety upgrades, Y-
 12 Plant, Oak Ridge, Tennessee, $2,100,000.
 Project 92-D-126, replace emergency
 notification system, various locations,
 $3,200,000.
 Project 88-D-122, facilities capability
 assurance program, various locations,
 $18,920,000.
 (c) Program Direction.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998
for program direction in carrying out weapons activities
necessary for national security programs in the amount of
$250,000,000.
 (d) Adjustment.--The total amount authorized to be
appropriated pursuant to this section is the sum of the amounts
authorized to be appropriated in subsections (a) through (c)
reduced by $22,608,000.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

 (a) Environmental Restoration.--Funds are hereby authorized
to be appropriated to the Department of Energy for fiscal year
1998 for environmental restoration in carrying out
environmental restoration and waste management activities
necessary for national security programs in the amount of
$1,010,973,000, of which $388,000,000 shall be allocated to the
uranium enrichment decontamination and decommissioning fund.
 (b) Defense Environmental Management Closure Projects.--
Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1998 for closure projects
in carrying out environmental restoration and waste management
activities necessary for national security programs in the
amount of $875,000,000, to be allocated as follows:
 Project 98-CLR-1, Rocky Flats Closure Site, Denver,
 Colorado, $648,400,000.
 Project 98-CLR-2, Fernald Environmental Management
 Project, Fernald, Ohio, $226,600,000.
 (c) Waste Management.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998
for waste management in carrying out environmental restoration
and waste management activities necessary for national security
programs in the amount of $1,571,644,000, to be allocated as
follows:
 (1) For operation and maintenance, $1,490,876,000.
 (2) For plant projects (including maintenance,
 restoration, planning, construction, acquisition,
 modification of facilities, and the continuation of
 projects authorized in prior years, and land
 acquisition related thereto), $80,768,000, to be
 allocated as follows:
 Project 98-D-401, H-tank farm storm water
 systems upgrade, Savannah River Site, Aiken,
 South Carolina, $1,000,000.
 Project 97-D-402, tank farm restoration and
 safe operations, Richland, Washington,
 $13,961,000.
 Project 96-D-408, waste management
 upgrades, various locations, $8,200,000.
 Project 95-D-402, install permanent
 electrical service, Waste Isolation Pilot
 Plant, Carlsbad, New Mexico, $176,000.
 Project 95-D-405, industrial landfill V and
 construction/demolition landfill VII, Y-12
 Plant, Oak Ridge, Tennessee, $3,800,000.
 Project 95-D-407, 219-S secondary
 containment upgrade, Richland, Washington,
 $2,500,000.
 Project 94-D-404, Melton Valley storage
 tank capacity increase, Oak Ridge National
 Laboratory, Oak Ridge, Tennessee, $1,219,000.
 Project 94-D-407, initial tank retrieval
 systems, Richland, Washington, $15,100,000.
 Project 93-D-187, high-level waste removal
 from filled waste tanks, Savannah River Site,
 Aiken, South Carolina, $17,520,000.
 Project 92-D-172, hazardous waste treatment
 and processing facility, Pantex Plant,
 Amarillo, Texas, $5,000,000.
 Project 89-D-174, replacement high-level
 waste evaporator, Savannah River Site, Aiken,
 South Carolina, $1,042,000.
 Project 86-D-103, decontamination and waste
 treatment facility, Lawrence Livermore National
 Laboratory, Livermore, California, $11,250,000.
 (d) Technology Development.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year
1998 for technology development in carrying out environmental
restoration and waste management activities necessary for
national security programs in the amount of $220,000,000.
 (e) Nuclear Materials and Facilities Stabilization.--Funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1998 for nuclear materials and
facilities stabilization in carrying out environmental
restoration and waste management activities necessary for
national security programs in the amount of $1,256,821,000, to
be allocated as follows:
 (1) For operation and maintenance, $1,176,114,000.
 (2) For plant projects (including maintenance,
 restoration, planning, construction, acquisition,
 modification of facilities, and the continuation of
 projects authorized in prior years, and land
 acquisition related thereto), $80,707,000, to be
 allocated as follows:
 Project 98-D-453, plutonium stabilization
 and handling system for plutonium finishing
 plant, Richland, Washington, $8,136,000.
 Project 98-D-700, road rehabilitation,
 Idaho National Engineering Laboratory, Idaho,
 $500,000.
 Project 97-D-450, actinide packaging and
 storage facility, Savannah River Site, Aiken,
 South Carolina, $18,000,000.
 Project 97-D-451, B-Plant safety class
 ventilation upgrades, Richland, Washington,
 $2,000,000.
 Project 97-D-470, environmental monitoring
 laboratory/health physics site support
 facility, Savannah River Site, Aiken, South
 Carolina, $5,600,000.
 Project 96-D-406, spent nuclear fuels
 canister storage and stabilization facility,
 Richland, Washington, $16,744,000.
 Project 96-D-461, electrical distribution
 upgrade, Idaho National Engineering Laboratory,
 Idaho, $2,927,000.
 Project 96-D-464, electrical and utility
 systems upgrade, Idaho Chemical Processing
 Plant, Idaho National Engineering Laboratory,
 Idaho, $14,985,000.
 Project 96-D-471, chlorofluorocarbon
 heating, ventilation, and air conditioning and
 chiller retrofit, Savannah River Site, Aiken,
 South Carolina, $8,500,000.
 Project 95-D-155, upgrade site road
 infrastructure, Savannah River Site, South
 Carolina, $2,713,000.
 Project 95-D-456, security facilities
 consolidation, Idaho Chemical Processing Plant,
 Idaho National Engineering Laboratory, Idaho,
 $602,000.
 (f) Program Direction.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998
for program direction in carrying out environmental restoration
and waste management activities necessary for national security
programs in the amount of $345,751,000.
 (g) Policy and Management.--Funds are hereby authorized to
be appropriated to the Department of Energy for fiscal year
1998 for policy and management in carrying out environmental
restoration and waste management activities necessary for
national security programs in the amount of $20,000,000.
 (h) Environmental Science Program.--Funds are hereby
authorized to be appropriated to the Department of Energy for
fiscal year 1998 for the environmental science program in
carrying out environmental restoration and waste management
activities necessary for national security programs in the
amount of $55,000,000.
 (i) Defense Environmental Management Privatization.--Funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1998 for environmental management
privatization projects in carrying out environmental
restoration and waste management activities necessary for
national security programs in the amount of $224,700,000, to be
allocated as follows:
 Project 98-PVT-1, contact handled transuranic waste
 transportation, Carlsbad, New Mexico, $21,000,000.
 Project 98-PVT-2, spent nuclear fuel dry storage,
 Idaho Falls, Idaho, $27,000,000.
 Project 98-PVT-3, waste pits remedial action,
 Fernald, Ohio, $25,000,000.
 Project 98-PVT-4, spent nuclear fuel transfer and
 storage, Savannah River, South Carolina, $25,000,000.
 Project 98-PVT-5, waste disposal, Oak Ridge,
 Tennessee, $5,000,000.
 Project 98-PVT-6, Ohio silo 3 waste treatment,
 Fernald, Ohio, $6,700,000.
 Project 97-PVT-1, tank waste remediation system
 phase 1, Hanford, Washington, $115,000,000.
 (j) Adjustment.--The total amount authorized to be
appropriated pursuant to this section for subsections (a)
through (h) is the sum of the amounts authorized to be
appropriated in those subsections reduced by $50,000,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

 (a) In General.--Funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1998
for other defense activities in carrying out programs necessary
for national security in the amount of $1,642,310,000, to be
allocated as follows:
 (1) For verification and control technology,
 $478,200,000, to be allocated as follows:
 (A) For nonproliferation and verification
 research and development, $210,000,000.
 (B) For arms control, $234,600,000.
 (C) For intelligence, $33,600,000.
 (2) For nuclear safeguards and security,
 $47,200,000.
 (3) For security investigations, $25,000,000.
 (4) For emergency management, $20,000,000.
 (5) For program direction, $78,900,000.
 (6) For worker and community transition assistance,
 $61,159,000, to be allocated as follows:
 (A) For worker and community transition,
 $57,659,000.
 (B) For program direction, $3,500,000.
 (7) For fissile materials control and disposition,
 $103,451,000, to be allocated as follows:
 (A) For operation and maintenance,
 $99,451,000.
 (B) For program direction, $4,000,000.
 (8) For environment, safety, and health, defense,
 $94,000,000, to be allocated as follows:
 (A) For the Office of Environment, Safety,
 and Health (Defense), $74,000,000.
 (B) For program direction, $20,000,000.
 (9) For the Office of Hearings and Appeals,
 $1,900,000.
 (10) For nuclear energy, $47,000,000, to be
 allocated as follows:
 (A) For nuclear technology research and
 development (electrometallurgical),
 $12,000,000.
 (B) For international nuclear safety
 (Soviet-designed reactors), $35,000,000.
 (11) For naval reactors development, $670,500,000,
 to be allocated as follows:
 (A) For operation and maintenance,
 $635,920,000.
 (B) For program direction, $20,080,000.
 (C) For plant projects (including
 maintenance, restoration, planning,
 construction, acquisition, modification of
 facilities, and the continuation of projects
 authorized in prior years, and land acquisition
 related thereto), $14,500,000, to be allocated
 as follows:
 Project 98-D-200, site laboratory/
 facility upgrade, various locations,
 $5,700,000.
 Project 97-D-201, advanced test
 reactor secondary coolant
 refurbishment, Idaho National
 Engineering Laboratory, Idaho,
 $4,600,000.
 Project 95-D-200, laboratory
 systems and hot cell upgrades, various
 locations, $1,100,000.
 Project 90-N-102, expended core
 facility dry cell project, Naval
 Reactors Facility, Idaho, $3,100,000.
 (12) For independent assessment of Department of
 Energy projects, $15,000,000.
 (b) Adjustment.--The total amount authorized to be
appropriated pursuant to this section is the sum of the amounts
authorized to be appropriated in paragraphs (1) through (12) of
subsection (a) reduced by $6,047,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

 Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1998 for payment to the
Nuclear Waste Fund established in section 302(c) of the Nuclear
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of
$190,000,000.

 Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

 (a) In General.--Until the Secretary of Energy submits to
the congressional defense committees the report referred to in
subsection (b) and a period of 30 days has elapsed after the
date on which such committees receive the report, the Secretary
may not use amounts appropriated pursuant to this title for any
program--
 (1) in amounts that exceed, in a fiscal year--
 (A) 110 percent of the amount authorized
 for that program by this title; or
 (B) $1,000,000 more than the amount
 authorized for that program by this title; or
 (2) which has not been presented to, or requested
 of, Congress.
 (b) Report.--(1) The report referred to in subsection (a)
is a report containing a full and complete statement of the
action proposed to be taken and the facts and circumstances
relied upon in support of such proposed action.
 (2) In the computation of the 30-day period under
subsection (a), there shall be excluded any day on which either
House of Congress is not in session because of an adjournment
of more than 3 days to a day certain.
 (c) Limitations.--(1) In no event may the total amount of
funds obligated pursuant to this title exceed the total amount
authorized to be appropriated by this title.
 (2) Funds appropriated pursuant to this title may not be
used for an item for which Congress has specifically denied
funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

 (a) In General.--The Secretary of Energy may carry out any
construction project under the general plant projects
authorized by this title if the total estimated cost of the
construction project does not exceed $5,000,000.
 (b) Report to Congress.--If, at any time during the
construction of any general plant project authorized by this
title, the estimated cost of the project is revised because of
unforeseen cost variations and the revised cost of the project
exceeds $5,000,000, the Secretary shall immediately furnish a
complete report to the congressional defense committees
explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

 (a) In General.--(1) Except as provided in paragraph (2),
construction on a construction project may not be started or
additional obligations incurred in connection with the project
above the total estimated cost, whenever the current estimated
cost of the construction project, which is authorized by
section 3101, 3102, or 3103, or which is in support of national
security programs of the Department of Energy and was
authorized by any previous Act, exceeds by more than 25 percent
the higher of--
 (A) the amount authorized for the project; or
 (B) the amount of the total estimated cost for the
 project as shown in the most recent budget
 justification data submitted to Congress.
 (2) An action described in paragraph (1) may be taken if--
 (A) the Secretary of Energy has submitted to the
 congressional defense committees a report on the
 actions and the circumstances making such action
 necessary; and
 (B) a period of 30 days has elapsed after the date
 on which the report is received by the committees.
 (3) In the computation of the 30-day period under paragraph
(2), there shall be excluded any day on which either House of
Congress is not in session because of an adjournment of more
than 3 days to a day certain.
 (b) Exception.--Subsection (a) shall not apply to any
construction project which has a current estimated cost of less
than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

 (a) Transfer to Other Federal Agencies.--The Secretary of
Energy may transfer funds authorized to be appropriated to the
Department of Energy pursuant to this title to other Federal
agencies for the performance of work for which the funds were
authorized. Funds so transferred may be merged with and be
available for the same purposes and for the same period as the
authorizations of the Federal agency to which the amounts are
transferred.
 (b) Transfer Within Department of Energy.--(1) Subject to
paragraph (2), the Secretary of Energy may transfer funds
authorized to be appropriated to the Department of Energy
pursuant to this title between any such authorizations. Amounts
of authorizations so transferred may be merged with and be
available for the same purposes and for the same period as the
authorization to which the amounts are transferred.
 (2) Not more than five percent of any such authorization
may be transferred between authorizations under paragraph (1).
No such authorization may be increased or decreased by more
than five percent by a transfer under such paragraph.
 (c) Limitation.--The authority provided by this section to
transfer authorizations--
 (1) may only be used to provide funds for items
 relating to activities necessary for national security
 programs that have a higher priority than the items
 from which the funds are transferred; and
 (2) may not be used to provide funds for an item
 for which Congress has specifically denied funds.
 (d) Notice to Congress.--The Secretary of Energy shall
promptly notify the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives of any transfer of funds to or from
authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

 (a) Requirement for Conceptual Design.--(1) Subject to
paragraph (2) and except as provided in paragraph (3), before
submitting to Congress a request for funds for a construction
project that is in support of a national security program of
the Department of Energy, the Secretary of Energy shall
complete a conceptual design for that project.
 (2) If the estimated cost of completing a conceptual design
for a construction project exceeds $3,000,000, the Secretary
shall submit to Congress a request for funds for the conceptual
design before submitting a request for funds for the
construction project.
 (3) The requirement in paragraph (1) does not apply to a
request for funds--
 (A) for a construction project the total estimated
 cost of which is less than $5,000,000; or
 (B) for emergency planning, design, and
 construction activities under section 3126.
 (b) Authority for Construction Design.--(1) Within the
amounts authorized by this title, the Secretary of Energy may
carry out construction design (including architectural and
engineering services) in connection with any proposed
construction project if the total estimated cost for such
design does not exceed $600,000.
 (2) If the total estimated cost for construction design in
connection with any construction project exceeds $600,000,
funds for such design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION
 ACTIVITIES.

 (a) Authority.--The Secretary of Energy may use any funds
available to the Department of Energy pursuant to an
authorization in this title, including those funds authorized
to be appropriated for advance planning and construction design
under sections 3101, 3102, and 3103, to perform planning,
design, and construction activities for any Department of
Energy national security program construction project that, as
determined by the Secretary, must proceed expeditiously in
order to protect public health and safety, to meet the needs of
national defense, or to protect property.
 (b) Limitation.--The Secretary may not exercise the
authority under subsection (a) in the case of any construction
project until the Secretary has submitted to the congressional
defense committees a report on the activities that the
Secretary intends to carry out under this section and the
circumstances making such activities necessary.
 (c) Specific Authority.--The requirement of section
3125(b)(2) does not apply to emergency planning, design, and
construction activities conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE
 DEPARTMENT OF ENERGY.

 Subject to the provisions of appropriations Acts and
section 3121, amounts appropriated pursuant to this title for
management and support activities and for general plant
projects are available for use, when necessary, in connection
with all national security programs of the Department of
Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

 (a) In General.--Except as provided in subsection (b), when
so specified in an appropriations Act, amounts appropriated for
operation and maintenance or for plant projects may remain
available until expended.
 (b) Exception for Program Direction Funds.--Amounts
appropriated for program direction pursuant to an authorization
of appropriations in subtitle A shall remain available to be
expended only until the end of fiscal year 2000.

SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

 (a) Transfer Authority for Defense Environmental Management
Funds.--The Secretary of Energy shall provide the manager of
each field office of the Department of Energy with the
authority to transfer defense environmental management funds
from a program or project under the jurisdiction of the office
to another such program or project.
 (b) Limitations.--(1) Only one transfer may be made to or
from any program or project under subsection (a) in a fiscal
year.
 (2) The amount transferred to or from a program or project
under subsection (a) may not exceed $5,000,000 in a fiscal
year.
 (3) A transfer may not be carried out by a manager of a
field office under subsection (a) unless the manager determines
that the transfer is necessary to address a risk to health,
safety, or the environment or to assure the most efficient use
of defense environmental management funds at the field office.
 (4) Funds transferred pursuant to subsection (a) may not be
used for an item for which Congress has specifically denied
funds or for a new program or project that has not been
authorized by Congress.
 (c) Exemption From Reprogramming Requirements.--The
requirements of section 3121 shall not apply to transfers of
funds pursuant to subsection (a).
 (d) Notification.--The Secretary, acting through the
Assistant Secretary of Energy for Environmental Management,
shall notify Congress of any transfer of funds pursuant to
subsection (a) not later than 30 days after such transfer
occurs.
 (e) Definitions.--In this section:
 (1) The term ``program or project'' means, with
 respect to a field office of the Department of Energy,
 any of the following:
 (A) A project listed in subsection (c) or
 (e) of section 3102 being carried out by the
 office.
 (B) A program referred to in subsection
 (a), (c), (d), or (e) of section 3102 being
 carried out by the office.
 (C) A project or program not described in
 subparagraph (A) or (B) that is for
 environmental restoration or waste management
 activities necessary for national security
 programs of the Department, that is being
 carried out by the office, and for which
 defense environmental management funds have
 been authorized and appropriated before the
 date of enactment of this Act.
 (2) The term ``defense environmental management
 funds'' means funds appropriated to the Department of
 Energy pursuant to an authorization for carrying out
 environmental restoration and waste management
 activities necessary for national security programs.
 (f) Duration of Authority.--The managers of the field
offices of the Department may exercise the authority provided
under subsection (a) during the period beginning on October 1,
1997, and ending on September 30, 1998.

 Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. MEMORANDUM OF UNDERSTANDING FOR USE OF NATIONAL LABORATORIES
 FOR BALLISTIC MISSILE DEFENSE PROGRAMS.

 (a) Memorandum of Understanding.--The Secretary of Energy
and the Secretary of Defense shall enter into a memorandum of
understanding for the purpose of improving and facilitating the
use by the Secretary of Defense of theexpertise of the national
laboratories for the ballistic missile defense programs of the
Department of Defense.
 (b) Assistance.--The memorandum of understanding shall
provide that the Secretary of Defense shall request such
assistance with respect to the ballistic missile defense
programs of the Department of Defense as the Secretary of
Defense and the Secretary of Energy determine can be provided
through the technical skills and experience of the national
laboratories, using such financial arrangements as the
Secretaries determine are appropriate.
 (c) Activities.--The memorandum of understanding shall
provide that the national laboratories shall carry out those
activities necessary to respond to requests for assistance from
the Secretary of Defense referred to in subsection (b). Such
activities may include the identification of technical
modifications and test techniques, the analysis of physics
problems, the consolidation of range and test activities, and
the analysis and simulation of theater missile defense
deployment problems.
 (d) National Laboratories.--For purposes of this section,
the national laboratories are--
 (1) the Lawrence Livermore National Laboratory,
 Livermore, California;
 (2) the Los Alamos National Laboratory, Los Alamos,
 New Mexico; and
 (3) the Sandia National Laboratories, Albuquerque,
 New Mexico.

SEC. 3132. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.

 (a) Authority To Enter Into Contracts.--The Secretary of
Energy may, using funds authorized to be appropriated by
section 3102(i) for a project referred to in that section,
enter into a contract that--
 (1) is awarded on a competitive basis;
 (2) requires the contractor to construct or acquire
 any equipment or facilities required to carry out the
 contract;
 (3) requires the contractor to bear any of the
 costs of the construction, acquisition, and operation
 of such equipment or facilities that arise before the
 commencement of the provision of goods or services
 under the contract; and
 (4) provides for payment to the contractor under
 the contract only upon the meeting of performance
 specifications in the contract.
 (b) Notice and Wait.--(1) The Secretary may not enter into
a contract under subsection (a), exercise an authorization to
proceed with such a contract or extend any contract period for
such a contract by more than one year until 30 days after the
date on which the Secretary submits to the congressional
defense committees a report with respect to the contract.
 (2) Except as provided in paragraph (3), a report under
paragraph (1) with respect to a contract shall set forth--
 (A) the anticipated costs and fees of the
 Department under the contract, including the
 anticipated maximum amount of such costs and fees;
 (B) any performance specifications in the contract;
 (C) the anticipated dates of commencement and
 completion of the provision of goods or services under
 the contract;
 (D) the allocation between the Department and the
 contractor of any financial, regulatory, or
 environmental obligations under the contract;
 (E) any activities planned or anticipated to be
 required with respect to the project after completion
 of the contract;
 (F) the site services or other support to be
 provided the contractor by the Department under the
 contract;
 (G) the goods or services to be provided by the
 Department or contractor under the contract, including
 any additional obligations to be borne by the
 Department or contractor with respect to such goods or
 services;
 (H) if the contract provides for financing of the
 project by an entity or entities other than the United
 States, a detailed comparison of the costs of financing
 the project through such entity or entities with the
 costs of financing the project by the United States;
 (I) the schedule for the contract;
 (J) the costs the Department would otherwise have
 incurred in obtaining the goods or services covered by
 the contract if the Department had not proposed to
 obtain the goods or services under this section;
 (K) an estimate and justification of the cost
 savings, if any, to be realized through the contract,
 including the assumptions underlying the estimate;
 (L) the effect of the contract on any ancillary
 schedules applicable to the facility concerned,
 including milestones in site compliance agreements; and
 (M) the plans for maintaining financial and
 programmatic accountability for activities under the
 contract.
 (3) In the case of a contract under subsection (a) at the
Hanford Reservation, the report under paragraph (1) shall set
forth--
 (A) the matters specified in paragraph (2); and
 (B) if the contract contemplates two pilot
 vitrification plants--
 (i) an analysis of the basis for the
 selection of each of the plants in lieu of a
 single pilot vitrification plant; and
 (ii) a detailed comparison of the costs to
 the United States of two pilot plants with the
 costs to the United States of a single pilot
 plant.
 (c) Cost Variations.--(1)(A) The Secretary may not enter
into a contract for a project referred to in subparagraph (B),
or obligate funds attributable to the capital portion of the
cost of such a contract, whenever the current estimated cost of
the project exceeds the amount of the estimated cost of the
project as shown in the most recent budget justification data
submitted to Congress.
 (B) Subparagraph (A) applies to the following:
 (i) A project authorized by section 3102(i).
 (ii) A project authorized by section 3103 of the
 National Defense Authorization Act for Fiscal Year 1997
 (Public Law 104-201; 110 Stat. 2824) for which a
 contract has not been entered into as of the date of
 enactment of this Act.
 (2) The Secretary may not obligate funds attributable to
the capital portion of the cost of a contract entered into
before such date for a project authorized by such section 3103
whenever the current estimated cost of the project equals or
exceeds 110 percent of the amount of the estimated cost of the
project as shown in the most recent budget justification data
submitted to Congress.
 (d) Use of Funds for Termination of Contract.--Not later
than 15 days before the Secretary obligates funds available for
a project authorized by section 3102(i) to terminate the
contract for the project under subsection (a), the Secretary
shall notify the congressional defense committees of the
Secretary's intent to obligate the funds for that purpose.
 (e) Annual Report on Contracts.--(1) Not later than
February 28 of each year, the Secretary shall submit to the
congressional defense committees a report on the activities, if
any, carried out under each contract referred to in paragraph
(2) during the preceding year. The report shall include an
update with respect to each such contract of the matters
specified under subsection (b)(1) as of the date of the report.
 (2) A contract referred to in paragraph (1) is the
following:
 (A) A contract under subsection (a) for a project
 referred to in that subsection.
 (B) A contract under section 3103 of the National
 Defense Authorization Act for Fiscal Year 1997.
 (f) Assessment of Contracting Without Sufficient
Appropriations.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
congressional defense committees a report assessing whether,
and under what circumstances, the Secretary could enter into
contracts for defense environmental management privatization
projects in the absence of sufficient appropriations to meet
obligations under such contracts without thereby violating the
provisions of section 1341 of title 31, United States Code.

SEC. 3133. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

 (a) Funding Prohibition.--No funds authorized to be
appropriated or otherwise available to the Department of Energy
for fiscal year 1998 may be obligated or expended to conduct
any activities associated with international cooperative
stockpile stewardship.
 (b) Exceptions.--Subsection (a) does not apply to the
following:
 (1) Activities conducted between the United States
 and the United Kingdom.
 (2) Activities conducted between the United States
 and France.
 (3) Activities carried out under title III of this
 Act relating to cooperative threat reduction with
 states of the former Soviet Union.

SEC. 3134. MODERNIZATION OF ENDURING NUCLEAR WEAPONS COMPLEX.

 (a) Funding.--Subject to subsection (b), of the funds
authorized to be appropriated to the Department of Energy
pursuant to section 3101, $85,000,000 shall be available for
carrying out the program described in section 3137(a) of the
National Defense Authorization Act for Fiscal Year 1996 (42
U.S.C. 2121 note).
 (b) Limitation on Availability.--None of the funds
available under subsection (a) for carrying out the program
referred to in that subsection may be obligated or expended
until 30 days after the date of the receipt by Congress of the
report required under subsection (c).
 (c) Report on Allocation of Funds.--Not later than 30 days
after the date of enactment of this Act, the Secretary of
Energy shall submit to the congressional defense committees a
report setting forth the proposed allocation among specific
Department of Energy sites of the funds available under
subsection (a) for the program referred to in that subsection.

SEC. 3135. TRITIUM PRODUCTION.

 (a) Tritium Production Decision.--(1) Not later than
December 31, 1998, the Secretary of Energy shall make a final
decision on the technologies to be utilized, and the schedule
to be adopted, for tritium production in order to meet the
requirements in the Nuclear Weapons Stockpile Memorandum
relating to tritium production, including the tritium
production date of 2005 specified in the Nuclear Weapons
Stockpile Memorandum.
 (2) In making the final decision, the Secretary shall take
into account the following:
 (A) The requirements for tritium production
 specified in the Nuclear Weapons Stockpile Memorandum,
 including, in particular, the requirements for the so-
 called ``upload hedge'' component of the nuclear
 weapons stockpile.
 (B) The activities of the Department of Energy
 relating to the evaluation and demonstration of
 technologies under the accelerator program and the
 commercial light water reactor program.
 (C) The potential liabilities and benefits of each
 potential technology for tritium production,
 including--
 (i) regulatory and other barriers that
 might prevent the production of tritium using
 the technology by the production date referred
 to in paragraph (1);
 (ii) potential difficulties, if any, in
 licensing the technology;
 (iii) the variability, if any, in tritium
 production rates using the technology; and
 (iv) any other benefits (including
 scientific or research benefits or the
 generation of revenue) associated with the
 technology.
 (b) Reports on Decision.--(1) Upon making a final decision
under paragraph (1) of subsection (a), the Secretary shall
submit to the congressional defense committees a report on the
final decision. The report shall include an assessment of how
the selected technology addresses the items taken into account
under paragraph (2) of that subsection.
 (2) If the Secretary determines that it is not possible to
make the final decision by the date specified in paragraph (1)
of subsection (a), the Secretary shall submit to the
congressional defense committees on that date a report that
explains in detail why the final decision cannot be made by
that date.
 (c) Limitation on Availability of Funds.--The Secretary may
not obligate or expend any funds authorized to be appropriated
or otherwise made available for the Department of Energy by
this Act for the purpose of evaluating or utilizing any
technology for the production of tritium other than a
commercial light water reactor or an accelerator until the
later of--
 (1) January 31, 1999; or
 (2) the date that is 30 days after the date on
 which the Secretary makes a final decision under
 subsection (a).

SEC. 3136. PROCESSING, TREATMENT, AND DISPOSITION OF SPENT NUCLEAR FUEL
 RODS AND OTHER LEGACY NUCLEAR MATERIALS AT THE
 SAVANNAH RIVER SITE.

 (a) Funding.--Of the funds authorized to be appropriated
pursuant to section 3102(e), not more than $47,000,000 shall be
available for the implementation of a program to accelerate the
receipt, processing (including the H-canyon restart
operations), reprocessing, separation, reduction, deactivation,
stabilization, isolation, and interim storage of high level
nuclear waste associated with Department of Energy spent fuel
rods, foreign spent fuel rods, and other nuclear materials that
are located at the Savannah River Site.
 (b) Requirement for Continuing Operations at Savannah River
Site.--The Secretary of Energy shall continue operations and
maintain a high state of readiness at the F-canyon and H-canyon
facilities at the Savannah River Site and shall provide
technical staff necessary to operate and maintain such
facilities at that state of readiness.

SEC. 3137. LIMITATIONS ON USE OF FUNDS FOR LABORATORY DIRECTED RESEARCH
 AND DEVELOPMENT PURPOSES.

 (a) General Limitations.--(1) No funds authorized to be
appropriated or otherwise made available to the Department of
Energy in any fiscal year after fiscal year 1997 for weapons
activities may be obligated or expended for activities under
the Department of Energy Laboratory Directed Research and
Development Program, or under any Department of Energy
technology transfer program or cooperative research and
development agreement, unless such activities support the
national security mission of the Department of Energy.
 (2) No funds authorized to be appropriated or otherwise
made available to the Department of Energy in any fiscal year
after fiscal year 1997 for environmental restoration, waste
management, or nuclear materials and facilities stabilization
may be obligated or expended for activities under the
Department of Energy Laboratory Directed Research and
Development Program, or under any Department of Energy
technology transfer program or cooperative research and
development agreement, unless such activities support the
environmental restoration mission, waste management mission, or
materials stabilization mission, as the case may be, of the
Department of Energy.
 (b) Limitation in Fiscal Year 1998 Pending Submittal of
Annual Report.--Not more than 30 percent of the funds
authorized to be appropriated or otherwise made available to
the Department of Energy in fiscal year 1998 for laboratory
directed research and development may be obligated or expended
for such research and development until the Secretary of Energy
submits to the congressional defense committees the report
required by section 3136(b) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
Stat. 2831; 42 U.S.C. 7257b) in 1998.
 (c) Submittal Date for Annual Report on Laboratory Directed
Research and Development Program.--Paragraph (1) of section
3136(b) of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 110 Stat. 2831; 42 U.S.C. 7257b)
is amended by striking out ``The Secretary of Energy shall
annually submit'' and inserting in lieu thereof ``Not later
than February 1 each year, the Secretary of Energy shall
submit''.
 (d) Assessment of Funding Level for Laboratory Directed
Research and Development.--The Secretary shall include in the
report submitted under such section 3136(b)(1) in 1998 an
assessment of the funding required to carry out laboratory
directed research and development, including a recommendation
for the percentage of the funds provided to Government-owned,
contractor-operated laboratories for national security
activities that should be made available for such research and
development under section 3132(c) of the National Defense
Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(c)).
 (e) Definition.--In this section, the term ``laboratory
directed research and development'' has the meaning given that
term in section 3132(d) of the National Defense Authorization
Act for Fiscal Year 1991 (42 U.S.C. 7257a(d)).

SEC. 3138. PILOT PROGRAM RELATING TO USE OF PROCEEDS OF DISPOSAL OR
 UTILIZATION OF CERTAIN DEPARTMENT OF ENERGY ASSETS.

 (a) Purpose.--The purpose of this section is to encourage
the Secretary of Energy to dispose of or otherwise utilize
certain assets of the Department of Energy by making available
to the Secretary the proceeds of such disposal or utilization
for purposes of defraying the costs of such disposal or
utilization.
 (b) Use of Proceeds To Defray Costs.--(1) Notwithstanding
section 3302 of title 31, United States Code, the Secretary may
retain from the proceeds of the sale, lease, or disposal of an
asset under subsection (c) an amount equal to the cost of the
sale, lease, or disposal of the asset. The Secretary shall
utilize amounts retained under this paragraph to defray the
cost of the sale, lease, or disposal.
 (2) For purposes of paragraph (1), the cost of a sale,
lease, or disposal shall include--
 (A) the cost of administering the sale, lease, or
 disposal;
 (B) the cost of recovering or preparing the asset
 concerned for the sale, lease, or disposal; and
 (C) any other cost associated with the sale, lease,
 or disposal.
 (c) Covered Transactions.--Subsection (b) applies to the
following transactions:
 (1) The sale of heavy water at the Savannah River
 Site, South Carolina, that is under the jurisdiction of
 the Defense Environmental Management Program.
 (2) The sale of precious metals that are under the
 jurisdiction of the Defense Environmental Management
 Program.
 (3) The lease of buildings and other facilities
 located at the Hanford Reservation, Washington, that
 are under the jurisdiction of the Defense Environmental
 Management Program.
 (4) The lease of buildings and other facilities
 located at the Savannah River Site that are under the
 jurisdiction of the Defense Environmental Management
 Program.
 (5) The disposal of equipment and other personal
 property located at the Rocky Flats Defense
 Environmental Technology Site, Colorado, that is under
 the jurisdiction of the Defense Environmental
 Management Program.
 (6) The disposal of materials at the National
 Electronics Recycling Center, Oak Ridge, Tennessee,
 that are under the jurisdiction of the Defense
 Environmental Management Program.
 (d) Applicability of Disposal Authority.--Nothing in this
section shall be construed to limit the application of sections
202 and 203(j) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 483 and 484(j)) to the disposal
of equipment and other personal property covered by this
section.
 (e) Report.--Not later than January 31, 1999, the Secretary
shall submit to the congressional defense committees a report
on amounts retained by the Secretary under subsection (b)
during fiscal year 1998.

SEC. 3139. MODIFICATION AND EXTENSION OF AUTHORITY RELATING TO
 APPOINTMENT OF CERTAIN SCIENTIFIC, ENGINEERING, AND
 TECHNICAL PERSONNEL.

 (a) Repeal of Requirement for EPA Study.--Section 3161 of
the National Defense Authorization Act for Fiscal Year 1995
(Public Law 103-337; 108 Stat. 3095; 42 U.S.C. 7231 note) is
amended--
 (1) by striking out subsection (c); and
 (2) by redesignating subsection (d) as subsection
 (c).
 (b) Extension of Authority.--Paragraph (1) of subsection
(c) of such section, as so redesignated, is amended by striking
out ``September 30, 1997'' and inserting in lieu thereof
``September 30, 1999''.

SEC. 3140. LIMITATION ON USE OF FUNDS FOR SUBCRITICAL NUCLEAR WEAPONS
 TESTS.

 (a) Limitation.--The Secretary of Energy may not conduct
any subcritical nuclear weapons tests using funds appropriated
or otherwise available to the Secretary for fiscal year 1998
until the Secretary submits to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives a detailed report on the use of the
funds available to the Secretary for fiscal years 1996 and 1997
to conduct such tests.
 (b) Exception.--Subsection (a) shall not apply to the use
of funds covered by that subsection for subcritical nuclear
weapons tests if the Secretary--
 (1) determines that the use of such funds for such
 tests is urgently required to meet national security
 interests; and
 (2) notifies Congress of that determination before
 using such funds for such tests.

SEC. 3141. LIMITATION ON USE OF CERTAIN FUNDS UNTIL FUTURE USE PLANS
 ARE SUBMITTED.

 (a) Limitation.--(1) Subject to paragraph (2), the
Secretary of Energy may not use more than 80 percent of the
funds available to the Secretary pursuant to the authorization
of appropriations in section 3102(g) until the Secretary
submits the plans described in subsection (b).
 (2) The limitation in paragraph (1) shall cease to be in
effect if the Secretary submits, by March 15, 1998, the report
described in subsection (c).
 (b) Plans.--The plans referred to in subsection (a)(1) are
the draft future use plan and the final future use plan
required under section 3153(f) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
Stat. 2840; 42 U.S.C. 7274k note).
 (c) Report.--If the Secretary is unable to submit all of
the plans described in subsection (b) by the deadlines set
forth in such section 3153(f), the Secretary shall submit to
Congress a report containing, for each plan that will not be
submitted by the applicable deadline--
 (1) the status of the plan;
 (2) the reasons why the plan cannot be submitted by
 the applicable deadline; and
 (3) the date by which the plan will be submitted.

 Subtitle D--Other Matters

SEC. 3151. PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF
 WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.

 (a) Plan Requirement.--The Secretary of Energy shall
develop and annually update a plan for maintaining the nuclear
weapons stockpile. The plan shall cover, at a minimum,
stockpile stewardship, stockpile management, and program
direction and shall be consistent with the programmatic and
technical requirements of the most recent annual Nuclear
Weapons Stockpile Memorandum.
 (b) Plan Elements.--The plan and each update of the plan
shall set forth the following:
 (1) The number of warheads (including active and
 inactive warheads) for each warhead type in the nuclear
 weapons stockpile.
 (2) The current age of each warhead type, and any
 plans for stockpile lifetime extensions and
 modifications or replacement of each warhead type.
 (3) The process by which the Secretary of Energy is
 assessing the lifetime, and requirements for lifetime
 extension or replacement, of the nuclear and nonnuclear
 components of the warheads (including active and
 inactive warheads) in the nuclear weapons stockpile.
 (4) The process used in recertifying the safety,
 security, and reliability of each warhead type in the
 nuclear weapons stockpile.
 (5) Any concerns which would affect the ability of
 the Secretary of Energy to recertify the safety,
 security, or reliability of warheads in the nuclear
 weapons stockpile (including active and inactive
 warheads).
 (c) Annual Submission of Plan to Congress.--The Secretary
of Energy shall submit to Congress the plan developed under
subsection (a) not later than March 15, 1998, and shall submit
an updated version of the plan not later than March 15 of each
year thereafter. The plan shall be submitted in both classified
and unclassified form.

SEC. 3152. REPEAL OF OBSOLETE REPORTING REQUIREMENTS.

 (a) Annual Report on Activities of the Atomic Energy
Commission.--(1) Section 251 of the Atomic Energy Act of 1954
(42 U.S.C. 2016) is repealed.
 (2) The table of sections at the beginning of that Act is
amended by striking out the item relating to section 251.
 (b) Annual Report on Weapons Activities Budgets.--Section
3156 of the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104-201; 110 Stat. 2841; 42 U.S.C. 7271c) is
repealed.
 (c) Annual Update of Master Plan for Nuclear Weapons
Stockpile.--Section 3153 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 624; 42
U.S.C. 2121 note) is repealed.
 (d) Annual Report on Weapons Activities Budgets.--Section
3159 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106; 110 Stat. 626; 42 U.S.C. 7271b note)
is repealed.
 (e) Annual Report on Stockpile Stewardship Program.--
Section 3138 of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1946; 42 U.S.C.
2121 note) is amended--
 (1) by striking out subsections (d) and (e);
 (2) by redesignating subsections (f), (g), and (h)
 as subsections (d), (e), and (f), respectively; and
 (3) in subsection (e), as so redesignated, by
 striking out ``and the 60-day period referred to in
 subsection (e)(2)(A)(ii)''.
 (f) Annual Report on Development of Tritium Production
Capacity.--Section 3134 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2639)
is repealed.
 (g) Annual Report on Research Relating to Defense Waste
Cleanup Technology Program.--Section 3141 of the National
Defense Authorization Act for Fiscal Years 1990 and 1991
(Public Law 101-189; 103 Stat. 1679; 42 U.S.C. 7274a) is
amended--
 (1) by striking out subsection (c); and
 (2) by redesignating subsection (d) as subsection
 (c).
 (h) Quarterly Report on Major DoE National Security
Programs.--Section 3143 of the National Defense Authorization
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103
Stat. 1681; 42 U.S.C. 7271a) is repealed.
 (i) Annual Report on Nuclear Test Ban Readiness Program.--
Section 1436 of the National Defense Authorization Act, Fiscal
Year 1989 (Public Law 100-456; 102 Stat. 2075; 42 U.S.C. 2121
note) is amended by striking out subsection (e).

SEC. 3153. STUDY AND FUNDING RELATING TO IMPLEMENTATION OF WORKFORCE
 RESTRUCTURING PLANS.

 (a) Study Requirement.--The Secretary of Energy shall
conduct a study on the effects of workforce restructuring plans
for defense nuclear facilities developed pursuant to section
3161 of the National Defense Authorization Act for Fiscal Year
1993 (42 U.S.C. 7274h).
 (b) Matters Covered by Study.-- The study shall cover the
four-year period preceding the date of the enactment of this
Act and shall include the following:
 (1) An analysis of the number of jobs created by
 any employee retraining, education, and reemployment
 assistance and any community impact assistance provided
 in each workforce restructuring plan developed pursuant
 to section 3161 of the National Defense Authorization
 Act for Fiscal Year 1993.
 (2) An analysis of other benefits provided pursuant
 to such plans, including any assistance provided to
 community reuse organizations.
 (3) A description of the funds expended, and the
 funds obligated but not expended, pursuant to such
 plans as of the date of the report.
 (4) A description of the criteria used since
 October 23, 1992, in providing assistance pursuant to
 such plans.
 (5) A comparison of any similar benefits provided--
 (A) pursuant to such a plan to employees
 whose employment at the defense nuclear
 facility covered by the plan is terminated; and
 (B) to employees whose employment at a
 facility where more than 50 percent of the
 revenues are derived from contracts with the
 Department of Defense has been terminated as a
 result of cancellation, termination, or
 completion of contracts with the Department of
 Defense and the employees whose employment is
 terminated constitute more than 15 percent of
 the employees at that facility.
 (c) Conduct of Study.--(1) The study shall be conducted
through a contract with an independent private auditing firm.
 (2) The Secretary of Energy may not enter into any contract
for the conduct of the study until the Secretary submits a
notification of the proposed contract award to the
congressional defense committees.
 (3) The Secretary of Energy and the Secretary of Defense
shall each ensure that any firm conducting the study is
provided access to all documents in the possession of the
Department of Energy or the Department of Defense, as the case
may be, that are relevant to the study, including documents in
the possession of the Inspector General of the Department of
Energy or the Inspector General of the Department of Defense.
 (d) Report on Study.--The Secretary of Energy shall submit
a report to Congress on the results of the study not later than
March 31, 1998.
 (e) Limitation on Use of Funds for Local Impact
Assistance.--(1) None of the funds authorized to be
appropriated to the Department of Energy pursuant to section
3103(6) may be used for local impact assistance pursuant to a
plan under section 3161(c)(6) of the National Defense
Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h(c)(6))
until--
 (A) with respect to assistance referred to in
 section 3161(c)(6)(A) of such Act, the Secretary of
 Energy coordinates with, provides a copy of the plan
 to, and obtains the approval of the Secretary of Labor;
 and
 (B) with respect to assistance referred to in
 section 3161(c)(6)(C) of such Act, the Secretary of
 Energy coordinates with, provides a copy of the plan
 to, and obtains the approval of the Secretary of
 Commerce.
 (2) For purposes of paragraph (1), if the Secretary of
Labor or the Secretary of Commerce does not disapprove a plan
within 60 days after receiving a copy of the plan, the plan is
deemed to be approved.
 (f) Semiannual Report to Congress of Local Impact
Assistance.--The Secretary of Energy shall submit to Congress
every six months a report setting forth a description of, and
the amount or value of, all local impact assistance provided
during the preceding six months under section 3161(c)(6) of the
National Defense Authorization Act of 1993 (42 U.S.C.
7274h(c)(6)).
 (g) Effect on USEC Privatization Act.--Nothing in this
section shall be construed as diminishing or affecting the
obligations of the Secretary of Energy under section 3110(a)(5)
of the USEC Privatization Act (Public Law 104-134; 110 Stat.
1321-341; 42 U.S.C. 2297h-8(a)(5)).
 (h) Definition.--In this section, the term ``defense
nuclear facility'' has the meaning provided the term
``Department of Energy defense nuclear facility'' in section
3163 of the National Defense Authorization Act for Fiscal Year
1993 ( Public Law 102-484; 42 U.S.C. 7274j).

SEC. 3154. REPORT AND PLAN FOR EXTERNAL OVERSIGHT OF NATIONAL
 LABORATORIES.

 (a) Report.--Not later than July 1, 1999, the Secretary of
Energy shall submit to Congress a report on the external
oversight of the national laboratories.
 (b) Matters Covered.--The report shall contain the
following:
 (1) A description of the external oversight
 practices at the national laboratories and an analysis
 of the effectiveness of such practices, including the
 effect of such practices on the productivity of the
 laboratories and the research conducted by the
 laboratories.
 (2) Recommendations regarding the continuation,
 consolidation, or discontinuation of the external
 oversight practices described in paragraph (1), and the
 rationale for the recommendations.
 (3) Recommendations for any new external oversight
 practices that should be implemented, and the rationale
 for the recommendations.
 (4) A plan for carrying out the recommendations.
 (c) National Laboratories Covered.--For purposes of this
section, the national laboratories are--
 (1) the Lawrence Livermore National Laboratory,
 Livermore, California;
 (2) the Los Alamos National Laboratory, Los Alamos,
 New Mexico; and
 (3) the Sandia National Laboratories, Albuquerque,
 New Mexico.

SEC. 3155. UNIVERSITY-BASED RESEARCH COLLABORATION PROGRAM.

 (a) Findings.--Congress makes the following findings:
 (1) The maintenance of scientific and engineering
 competence in the United States is vital to long-term
 national security and the defense and national security
 missions of the Department of Energy.
 (2) Engaging the universities and colleges of the
 Nation in research on long-range problems of vital
 national security interest will be critical to solving
 the technology challenges faced within the defense and
 national security programs of the Department of Energy
 in the next century.
 (3) Enhancing collaboration among the national
 laboratories, universities and colleges, and industry
 will contribute significantly to the performance of
 these Department of Energy missions.
 (b) Program.--The Secretary of Energy shall establish a
university program at a location that can develop the most
effective collaboration among national laboratories,
universities and colleges, and industry in support of
scientific and engineering advancement in key Department of
Energy defense and national security program areas.
 (c) Funding.--Of the funds authorized to be appropriated in
this title to the Department of Energy for fiscal year 1998,
the Secretary shall make $5,000,000 available for the
establishment and operation of the program under subsection
(b).

SEC. 3156. STOCKPILE STEWARDSHIP PROGRAM.

 (a) Findings.--Congress makes the following findings:
 (1) Eliminating the threat posed by nuclear weapons
 to the United States is an important national security
 goal.
 (2) As long as nuclear threats remain, the nuclear
 deterrent of the United States must be effective and
 reliable.
 (3) A safe, secure, effective, and reliable United
 States nuclear stockpile is central to the current
 nuclear deterrence strategy of the United States.
 (4) The Secretary of Energy has undertaken a
 stockpile stewardship and management program to ensure
 the safety, security, effectiveness, and reliability of
 the nuclear weapons stockpile of the United States,
 consistent with all United States treaty requirements
 and the requirements of the nuclear deterrence strategy
 of the United States.
 (5) It is the policy of the current administration
 that new nuclear warhead designs are not required to
 effectively implement the nuclear deterrence strategy
 of the United States.
 (b) Policy.--It is the policy of the United States that--
 (1) activities of the stockpile stewardship program
 shall be directed toward ensuring that the United
 States possesses a safe, secure, effective, and
 reliable nuclear stockpile, consistent with the
 national security requirements of the United States;
 and
 (2) stockpile stewardship activities of the United
 States shall be conducted in conformity with the terms
 of the Treaty on the Non-Proliferation of Nuclear
 Weapons and the Comprehensive Test Ban Treaty signed by
 the President on September 24, 1996, when and if that
 treaty enters into force.

SEC. 3157. REPORTS ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN FOREIGN
 NATIONS.

 (a) Reports.--The Secretary of Energy shall require that
any company that is a participant in the Accelerated Strategic
Computing Initiative (ASCI) program of the Department of Energy
report to the Secretary and to the Secretary of Defense each
sale by that company to a country designated as a Tier III
country of a computer capable of operating at a speed in excess
of 2,000 millions theoretical operations per second (MTOPS).
The report shall include a description of the following with
respect to each such sale:
 (1) The anticipated end-use of the computer sold.
 (2) The software included with the computer.
 (3) Any arrangement under the terms of the sale
 regarding--
 (A) upgrading the computer;
 (B) servicing the computer; or
 (C) furnishing spare parts for the
 computer.
 (b) Covered Countries.--For purposes of this section, the
countries designated as Tier III countries are the countries
listed as ``computer tier 3'' eligible countries in part 740.7
of title 15 of the Code of Federal Regulations, as in effect on
June 10, 1997 (or any successor list).
 (c) Quarterly Submission of Reports.--The Secretary of
Energy shall require that reports under subsection (a) be
submitted quarterly.
 (d) Annual Report.--The Secretary of Energy shall submit to
Congress an annual report containing all information received
under subsection (a) during the preceding year. The first
annual report shall be submitted not later than July 1, 1998.

SEC. 3158. TRANSFERS OF REAL PROPERTY AT CERTAIN DEPARTMENT OF ENERGY
 FACILITIES.

 (a) Transfer Regulations.--(1) The Secretary of Energy
shall prescribe regulations for the transfer by sale or lease
of real property at Department of Energy defense nuclear
facilities for the purpose of permitting the economic
development of the property.
 (2) The Secretary of Energy may not transfer real property
under the regulations prescribed under paragraph (1) until--
 (A) the Secretary submits a notification of the
 proposed transfer to the congressional defense
 committees; and
 (B) a period of 30 days has elapsed following the
 date on which the notification is submitted.
 (b) Indemnification.--(1) Except as provided in paragraph
(3) and subject to subsection (c), in the sale or lease of real
property pursuant to the regulations prescribed under
subsection (a), the Secretary of Energy may hold harmless and
indemnify a person or entity described in paragraph (2) against
any claim for injury to person or property that results from
the release or threatened release of a hazardous substance or
pollutant or contaminant as a result of Department of Energy
activities at the defense nuclear facility on which the real
property is located. Before entering into any agreement for
such a sale or lease, the Secretary shall notify the person or
entity that the Secretary has authority to provide
indemnification to the person or entity under this subsection.
The Secretary shall include in any agreement for such a sale or
lease a provision stating whether indemnification is or is not
provided.
 (2) Paragraph (1) applies to the following persons and
entities:
 (A) Any State that acquires ownership or control of
 real property of a defense nuclear facility.
 (B) Any political subdivision of a State that
 acquires such ownership or control.
 (C) Any other person or entity that acquires such
 ownership or control.
 (3) To the extent the persons and entities described in
paragraph (2) contributed to any such release or threatened
release, paragraph (1) shall not apply.
 (c) Conditions.--(1) No indemnification on a claim for
injury may be provided under this section unless the person or
entity making a request for the indemnification--
 (A) notifies the Secretary of Energy in writing
 within two years after such claim accrues;
 (B) furnishes to the Secretary copies of pertinent
 papers received by the person or entity;
 (C) furnishes evidence or proof of the claim;
 (D) provides, upon request by the Secretary, access
 to the records and personnel of the person or entity
 for purposes of defending or settling the claim; and
 (E) begins action within six months after the date
 of mailing, by certified or registered mail, of notice
 of final denial of the claim by the Secretary.
 (2) For purposes of paragraph (1)(A), the date on which a
claim accrues is the date on which the person asserting the
claim knew (or reasonably should have known) that the injury to
person or property referred to in subsection (b)(1) was caused
or contributed to by the release or threatened release of a
hazardous substance, pollutant, or contaminant as a result of
Department of Energy activities at the defense nuclear facility
on which the real property is located.
 (d) Authority of Secretary of Energy.--(1) In any case in
which the Secretary of Energy determines that the Secretary may
be required to indemnify a person or entity under this section
for any claim for injury to person or property referred to in
subsection (b)(1), the Secretary may settle or defend the claim
on behalf of that person or entity.
 (2) In any case described in paragraph (1), if the person
or entity that the Secretary may be required to indemnify does
not allow the Secretary to settle or defend the claim, the
person or entity may not be indemnified with respect to that
claim under this section.
 (e) Relationship to Other Law.--Nothing in this section
shall be construed as affecting or modifying in any way section
120(h) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).
 (f) Definitions.--In this section:
 (1) The term ``defense nuclear facility'' has the
 meaning provided by the term ``Department of Energy
 defense nuclear facility'' in section 318 of the Atomic
 Energy Act of 1954 (42 U.S.C. 2286g).
 (2) The terms ``hazardous substance'', ``release'',
 and ``pollutant or contaminant'' have the meanings
 provided by section 101 of the Comprehensive
 Environmental Response, Compensation, and Liability Act
 of 1980 (42 U.S.C. 9601).

SEC. 3159. REQUIREMENT TO DELEGATE CERTAIN AUTHORITIES TO SITE MANAGER
 OF HANFORD RESERVATION.

 Section 3173(b) of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2848; 42
U.S.C. 7274k) is amended--
 (1) in paragraph (1)--
 (A) by striking out ``In addition'' and
 inserting in lieu thereof ``Except as provided
 in paragraph (5), in addition''; and
 (B) by striking out ``Act,'' and inserting
 in lieu thereof ``subtitle,''; and
 (2) by adding at the end the following new
 paragraph:
 ``(5) In the case of the Hanford Reservation, Richland,
Washington, the Secretary shall delegate to the Site Manager
the authority described in paragraph (1) for fiscal year 1998.
The Secretary may withdraw the delegated authority if the
Secretary--
 ``(A) determines that the Site Manager of the
 Hanford Reservation has misused or misapplied that
 authority; and
 ``(B) the Secretary submits to Congress a
 notification of the Secretary's intent to withdraw the
 authority.''.

SEC. 3160. SUBMITTAL OF BIENNIAL WASTE MANAGEMENT REPORTS.

 Section 3153(b)(2)(B) of the National Defense Authorization
Act for Fiscal Year 1994 (42 U.S.C. 7274k(b)(2)(B)) is amended
by striking out ``odd-numbered year after 1995'' and inserting
in lieu thereof ``odd-numbered year after 1997''.

SEC. 3161. DEPARTMENT OF ENERGY SECURITY MANAGEMENT BOARD.

 (a) Establishment.--(1) The Secretary of Energy shall
establish a board to be known as the ``Department of Energy
Security Management Board'' (in this section referred to as the
``Board'').
 (2) The Board shall advise the Secretary on policy matters,
operational concerns, strategic planning, personnel, budget,
procurement, and development of priorities relating to the
security functions of the Department of Energy.
 (b) Members.--The Board shall be comprised of--
 (1) the Secretary of Energy, who shall serve as
 chairman;
 (2) the Director of the Office of Nonproliferation
 and National Security of the Department of Energy;
 (3) the Assistant Secretary of Energy for
 Environmental Management;
 (4) the Assistant Secretary of Energy for Defense
 Programs;
 (5) the Assistant Secretary of Energy for
 Environment, Safety, and Health;
 (6) the Associate Deputy Secretary of Energy for
 Field Management;
 (7) three individuals selected by the Secretary of
 Defense and appointed by the Secretary of Energy;
 (8) an individual selected by the Director of the
 Federal Bureau of Investigation and appointed by the
 Secretary of Energy; and
 (9) an individual selected by the Director of
 Central Intelligence and appointed by the Secretary of
 Energy.
 (c) Appointments.--(1) The Secretary of Defense, the
Director of the Federal Bureau of Investigation, and the
Director of Central Intelligence shall consult with the
Secretary of Energy in selecting individuals for appointment
under paragraphs (7), (8), and (9), respectively, of subsection
(b).
 (2) The Secretary of Energy may not appoint as a member of
the Board under paragraph (7), (8), or (9) of subsection (b) an
officer or employee of the Department of Energy, an employee of
a contractor or subcontractor of the Department, or an
individual under contract with the Department.
 (3) The Secretary of Energy shall appoint members of the
Board under paragraphs (7), (8), and (9) of subsection (b) not
later than January 15, 1998.
 (d) Vacancies.--Any vacancy in the Board shall be filled in
the same manner as the original appointment.
 (e) Personnel Matters.--(1)(A) Each member of the Board who
is not an officer or employee of the Federal Government shall
be compensated at a rate equal to the daily equivalent of the
annual rate of basic pay prescribed for level V of the
Executive Schedule under section 5316 of title 5, United States
Code, for each day (including travel time) during which such
member is engaged in the performance of the duties of the
Board.
 (B) All members of the Board who are officers or employees
of the United States shall serve without compensation in
addition to that received for their services as officers or
employees of the United States.
 (2) The members of the Board shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance of
services for the Board.
 (f) Applicability of FACA.--The provisions of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
activities of the Board under this section.
 (g) Termination.--The Board shall terminate on October 31,
2000.
 (h) Security Functions Defined.--In this section, the term
``security functions'' means all Department of Energy
activities related to the safeguarding and security of nuclear
weapons and materials, protection of classified and
unclassified controlled nuclear information, and physical and
personnel security.

SEC. 3162. SUBMITTAL OF ANNUAL REPORT ON STATUS OF SECURITY FUNCTIONS
 AT NUCLEAR WEAPONS FACILITIES.

 (a) In General.--Not later than September 1 each year, the
Secretary of Energy shall submit to the congressional defense
committees the report entitled ``Annual Report to the President
on the Status of Safeguards and Security of Domestic Nuclear
Weapons Facilities'', or any successor report to such report.
 (b) Requirement Relating to Reports Through Fiscal Year
2000.--The Secretary shall include with each report submitted
under subsection (a) in fiscal years 1998 through 2000 any
comments on such report by the members of the Department of
Energy Security Management Board established under section 3161
that such members consider appropriate.

SEC. 3163. MODIFICATION OF AUTHORITY ON COMMISSION ON MAINTAINING
 UNITED STATES NUCLEAR WEAPONS EXPERTISE.

 (a) Commencement of Activities.--Subsection (b)(1) of
section 3162 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2844; 42 U.S.C.
2121 note) is amended, effective January 1, 1998--
 (1) in subparagraph (C), by adding at the end the
 following new sentence: ``The chairman may be
 designated once five members of the Commission have
 been appointed under subparagraph (A).''; and
 (2) by adding at the end the following:
 ``(E) The Commission may commence its activities under this
section upon the designation of the chairman of the Commission
under subparagraph (C).''.
 (b) Deadline for Report.--Subsection (d) of that section is
amended by striking out ``March 15, 1998,'' and inserting in
lieu thereof ``March 15, 1999,''.

SEC. 3164. LAND TRANSFER, BANDELIER NATIONAL MONUMENT.

 (a) Transfer of Administrative Jurisdiction.--The Secretary
of Energy shall transfer to the Secretary of the Interior
administrative jurisdiction over a parcel of real property
consisting of approximately 4.47 acres as depicted on the map
entitled ``Boundary Map, Bandelier National Monument'', No.
315/80,051, dated March 1995.
 (b) Boundary Modification.--The boundary of the Bandelier
National Monument established by Proclamation No. 1322 (16
U.S.C. 431 note) is modified to include the real property
transferred under subsection (a).
 (c) Public Availability of Map.--The map described in
subsection (a) shall be on file and available for public
inspection in the Lands Office at the Southwest System Support
Office of the National Park Service, Santa Fe, New Mexico, and
in the office of the Superintendent of Bandelier National
Monument.
 (d) Administration.--The real property and interests in
real property transferred under subsection (a) shall be--
 (1) administered as part of Bandelier National
 Monument; and
 (2) subject to all laws applicable to the Bandelier
 National Monument and all laws generally applicable to
 units of the National Park System.

SEC. 3165. FINAL SETTLEMENT OF DEPARTMENT OF ENERGY COMMUNITY
 ASSISTANCE OBLIGATIONS WITH RESPECT TO LOS ALAMOS
 NATIONAL LABORATORY, NEW MEXICO.

 (a) In General.--The Secretary of Energy shall--
 (1) convey, without consideration, to the
 Incorporated County of Los Alamos, New Mexico (in this
 section referred to as the ``County''), or to the
 designee of the County, fee title to the parcels of
 land that are allocated for conveyance to the County in
 the agreement under subsection (e); and
 (2) transfer to the Secretary of the Interior, in
 trust for the Pueblo of San Ildefonso (in this section
 referred to as the ``Pueblo''), administrative
 jurisdiction over the parcels that are allocated for
 transfer to the Secretary of the Interior in such
 agreement.
 (b) Preliminary Identification of Parcels of Land for
Conveyance or Transfer.--(1) Not later than 90 days after the
date of enactment of this Act, the Secretary of Energy shall
submit to the congressional defense committees a report
identifying the parcels of land under the jurisdiction of the
Secretary at the Los Alamos National Laboratory that are
suitable for conveyance or transfer under this section.
 (2) A parcel is suitable for conveyance or transfer for
purposes of paragraph (1) if the parcel--
 (A) is not required to meet the national security
 mission of the Department of Energy or will not be
 required for that purpose before the end of the 10-year
 period beginning on the date of enactment of this Act;
 (B) is likely to be conveyable or transferable, as
 the case may be, under this section not later than the
 end of such period; and
 (C) is suitable for use for a purpose specified in
 subsection (h).
 (c) Review of Title.--(1) Not later than one year after the
date of enactment of this Act, the Secretary shall submit to
the congressional defense committees a report setting forth the
results of a title search on each parcel of land identified as
suitable for conveyance or transfer under subsection (b),
including an analysis of any claims against or other
impairments to the fee title to each such parcel.
 (2) In the period beginning on the date of the completion
of the title search with respect to a parcel under paragraph
(1) and ending on the date of the submittal of the report under
that paragraph, the Secretary shall take appropriate actions to
resolve the claims against or other impairments, if any, to fee
title that are identified with respect to the parcel in the
title search.
 (d) Environmental Restoration.--(1) Not later than 21
months after the date of enactment of this Act, the Secretary
shall--
 (A) identify the environmental restoration or
 remediation, if any, that is required with respect to
 each parcel of land identified under subsection (b) to
 which the United States has fee title;
 (B) carry out any review of the environmental
 impact of the conveyance or transfer of each such
 parcel that is required under the provisions of the
 National Environmental Policy Act of 1969 (42 U.S.C.
 4321 et seq.); and
 (C) submit to Congress a report setting forth the
 results of the activities under subparagraphs (A) and
 (B).
 (2) If the Secretary determines under paragraph (1) that a
parcel described in paragraph (1)(A) requires environmental
restoration or remediation, the Secretary shall, to the maximum
extent practicable, complete the environmental restoration or
remediation of the parcel not later than 10 years after the
date of enactment of this Act.
 (e) Agreement for Allocation of Parcels.--As soon as
practicable after completing the review of titles to parcels of
land under subsection (c), the Secretary of the Interior, on
behalf of the Pueblo and for the County, shall submit to the
Secretary of Energy an agreement between the Secretary of the
Interior and the County that allocates between the Secretary of
the Interior and the County the parcels to which the United
States has fee title.
 (f) Plan for Conveyance and Transfer.--(1) Not later than
90 days after the date of the submittal to the Secretary of
Energy of the agreement under subsection (e), the Secretary
shall submit to the congressional defense committees a plan for
conveying or transferring parcels of land under this section in
accordance with the allocation specified in the agreement.
 (2) The plan under paragraph (1) shall provide for the
completion of the conveyance or transfer of parcels under this
section not later than 9 months after the date of the submittal
of the plan under that paragraph.
 (g) Conveyance or Transfer.--(1) Subject to paragraphs (2)
and (3), the Secretary shall convey or transfer parcels of land
in accordance with the allocation specified in the agreement
submitted to the Secretary under subsection (e).
 (2) In the case of a parcel allocated under the agreement
that is not available for conveyance or transfer in accordance
with the requirement in subsection (f)(2) by reason of its
requirement to meet the national security mission of the
Department, the Secretary shall convey or transfer the parcel,
as thecase may be, when the parcel is no longer required for
that purpose.
 (3)(A) In the case of a parcel allocated under the
agreement that is not available for conveyance or transfer in
accordance with such requirement by reason of requirements for
environmental restoration or remediation, the Secretary shall
convey or transfer the parcel, as the case may be, upon the
completion of the environmental restoration or remediation that
is required with respect to the parcel.
 (B) If the Secretary determines that environmental
restoration or remediation cannot reasonably be expected to be
completed with respect to a parcel by the end of the 10-year
period beginning on the date of enactment of this Act, the
Secretary shall not convey or transfer the parcel under this
section.
 (h) Use of Conveyed or Transferred Land.--The parcels of
land conveyed or transferred under this section shall be used
for historic, cultural, or environmental preservation purposes,
economic diversification purposes, or community self-
sufficiency purposes.
 (i) Treatment of Conveyances and Transfers.--(1) The
purpose of the conveyances and transfers under this section is
to fulfill the obligations of the United States with respect to
Los Alamos National Laboratory, New Mexico, under sections 91
and 94 of the Atomic Energy Community Act of 1955 (42 U.S.C.
2391, 2394).
 (2) Upon the completion of the conveyance or transfer of
the parcels of land available for conveyance or transfer under
this section, the Secretary shall make no further payments with
respect to Los Alamos National Laboratory under section 91 or
section 94 of the Atomic Energy Community Act of 1955.

SEC. 3166. SENSE OF CONGRESS REGARDING THE Y-12 PLANT IN OAK RIDGE,
 TENNESSEE.

 It is the sense of Congress that the Y-12 Plant in Oak
Ridge, Tennessee, should be used as a national prototype center
and that other executive agencies should utilize this center,
where appropriate, to maximize their efficiency and cost
effectiveness.

SEC. 3167. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS
 NATIONAL LABORATORY, NEW MEXICO.

 (a) Availability of Funds.--Of the funds authorized to be
appropriated or otherwise made available to the Department of
Energy by this title, $5,000,000 shall be available for payment
by the Secretary of Energy to a nonprofit or not-for-profit
educational foundation chartered to enhance educational
activities in the public schools in the vicinity of Los Alamos
National Laboratory, New Mexico (in this section referred to as
the ``Foundation'').
 (b) Use of Funds.--(1) The Foundation shall utilize funds
provided under subsection (a) the basis of, or as a
contribution to, an endowment fund for the Foundation.
 (2) The Foundation shall use the income generated from
investments in the endowment fund that are attributable to the
payment made under subsection (a) to fund programs to support
the educational needs of children in public schools in the
vicinity of Los Alamos National Laboratory.
 (c) Report.--Not later than March 1, 1998, the Secretary
shall submit to the congressional defense committees a report
setting forth the following:
 (1) The amount of, and a schedule for, payments to
 the Foundation by the Secretary that are in addition to
 the payment provided under subsection (a).
 (2) A plan to ensure that the Secretary makes no
 other payments to support the educational activities
 referred to in subsection (b)(2) after September 30,
 2002.

SEC. 3168. IMPROVEMENTS TO GREENVILLE ROAD, LIVERMORE, CALIFORNIA.

 From amounts authorized to be appropriated or otherwise
made available to the Department of Energy by this title, funds
shall be available for improvements to Greenville Road,
Livermore, California, as follows:
 (1) $3,500,000 in fiscal year 1998.
 (2) $3,300,000 in fiscal year 1999.

SEC. 3169. REPORT ON ALTERNATIVE SYSTEM FOR AVAILABILITY OF FUNDS.

 (a) Report.--Not later than October 1, 1998, the Secretary
of Energy shall submit to Congress a report assessing how the
Department of Energy could carry out a transition from a no-
year funding system to a limited-period funding system.
 (b) Matters Covered.--The report shall cover the following
matters:
 (1) A conceptual proposal on how the no-year
 funding system could be phased out.
 (2) An estimate of the cost of making the
 transition to a limited-period funding system.
 (3) A description of the programmatic effects that
 could occur if the no-year funding system is
 eliminated.
 (4) A delineation of activities for which the no-
 year funding system should be retained.
 (c) Definitions.--In this section:
 (1) The term ``no-year funding system'' means a
 funding system in which funds are available to the
 Department of Energy until expended.
 (2) The term ``limited-period funding system''
 means a funding system in which funds are available to
 the Department of Energy for a limited period of time.

SEC. 3170. REPORT ON REMEDIATION UNDER THE FORMERLY UTILIZED SITES
 REMEDIAL ACTION PROGRAM.

 Not later than March 1, 1998, the Secretary of Energy shall
submit to Congress a report containing information responding
to the following questions regarding the Formerly Utilized
Sites Remedial Action Program:
 (1) How many Formerly Utilized Sites remain to be
 remediated, what portions of these remaining sites have
 completed remediation (including any offsite
 contamination), what portions of the sites remain to be
 remediated (including any offsite contamination), what
 types of contaminants are present at each site, and
 what are the projected timeframes for completing
 remediation at each site?
 (2) What is the cost of the remaining response
 actions necessary to address actual or threatened
 releases of hazardous substances at each Formerly
 Utilized Site, including any contamination that is
 present beyond the perimeter of the facilities?
 (3) For each site, how much will it cost to
 remediate the radioactive contamination, and how much
 will it cost to remediate the non-radioactive
 contamination?
 (4) How many sites potentially involve private
 parties that could be held responsible for remediation
 costs, including remediation costs related to offsite
 contamination?
 (5) What type of agreements under the Formerly
 Utilized Sites Remedial Action Program have been
 entered into with private parties to resolve the level
 of liability for remediation costs at these facilities,
 and to what extent have these agreements been tied to a
 distinction between radioactive and non-radioactive
 contamination present at these sites?
 (6) What efforts have been undertaken by the
 Department to ensure that the settlement agreements
 entered into with private parties to resolve liability
 for remediation costs at these facilities have been
 consistent on a program wide basis?

 TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
Sec. 3202. Report on external regulation of defense nuclear facilities.

SEC. 3201. AUTHORIZATION.

 There are authorized to be appropriated for fiscal year
1998, $17,500,000 for the operation of the Defense Nuclear
Facilities Safety Board under chapter 21 of the Atomic Energy
Act of 1954 (42 U.S.C. 2286 et seq.).

SEC. 3202. REPORT ON EXTERNAL REGULATION OF DEFENSE NUCLEAR FACILITIES.

 (a) Reporting Requirement.--The Defense Nuclear Facilities
Safety Board (in this section referred to as the ``Board'')
shall prepare a report and make recommendations on its role in
the Department of Energy's decision to establish external
regulation of defense nuclear facilities. The report shall
include the following:
 (1) An assessment of the value of and the need for
 the Board to continue to perform the functions
 specified under chapter 21 of the Atomic Energy Act of
 1954 (42 U.S.C. 2286 et seq.).
 (2) An assessment of the relationship between the
 functions of the Board and a proposal by the Department
 of Energy to place Department of Energy defense nuclear
 facilities under the jurisdiction of external
 regulatory agencies.
 (3) An assessment of the functions of the Board and
 whether there is a need to modify or amend such
 functions.
 (4) An assessment of the relative advantages and
 disadvantages to the Department and the public of
 continuing the functions of the Board with respect to
 Department of Energy defense nuclear facilities and
 replacing the activities of the Board with external
 regulation of such facilities.
 (5) A list of all existing or planned Department of
 Energy defense nuclear facilities that are similar to
 facilities under the regulatory jurisdiction of the
 Nuclear Regulatory Commission.
 (6) A list of all Department of Energy defense
 nuclear facilities that are in compliance with all
 applicable Department of Energy orders, regulations,
 and requirements relating to the design, construction,
 operation, and decommissioning of defense nuclear
 facilities.
 (7) A list of all Department of Energy defense
 nuclear facilities that have implemented, pursuant to
 an implementation plan, recommendations made by the
 Board and accepted by the Secretary of Energy.
 (8) A list of Department of Energy defense nuclear
 facilities that have a function related to Department
 weapons activities.
 (9)(A) A list of each existing defense nuclear
 facility that the Board determines--
 (i) should continue to stay within the
 jurisdiction of the Board for a period of time
 or indefinitely; and
 (ii) should come under the jurisdiction of
 an outside regulatory authority.
 (B) An explanation of the determinations made under
 subparagraph (A).
 (10) For any existing facilities that should, in
 the opinion of the Board, come under the jurisdiction
 of an outside regulatory authority, the date when this
 move would occur and the period of time necessary for
 the transition.
 (11) A list of any proposed Department of Energy
 defense nuclear facilities that should come under the
 Board's jurisdiction.
 (12) An assessment of regulatory and other issues
 associated with the design, construction, operation,
 and decommissioning of facilities that are not owned by
 the Department of Energy but which would provide
 services to the Department of Energy.
 (13) An assessment of the role of the Board, if
 any, in privatization projects undertaken by the
 Department.
 (14) An assessment of the role of the Board, if
 any, in any tritium production facilities.
 (15) An assessment of the comparative advantages
 and disadvantages to the Department of Energy in the
 event some or all Department of Energy defense nuclear
 facilities were no longer included in the functions of
 the Board and were regulated by the Nuclear Regulatory
 Commission.
 (16) A comparison of the cost, as identified by the
 Nuclear Regulatory Commission, that would be incurred
 at a gaseous diffusion plant to comply with regulations
 issued by the Nuclear Regulatory Commission, with the
 cost that would be incurred by a gaseous diffusion
 plant if such a plant was considered to be a Department
 of Energy defense nuclear facility as defined by
 chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C
 2286 et seq.).
 (b) Comments on Report.--Before submission of the report to
Congress under subsection (c), the Board shall transmit the
report to the Secretary of Energy and the Nuclear Regulatory
Commission. The Secretary and the Commission shall provide
their comments on the report to both the Board and to Congress.
 (c) Submission to Congress.--Not later than six months
after the date of the enactment of this Act, the Board shall
provide to Congress an interim report on the status of the
implementation of this section. Not later than one year after
the date of the enactment of this Act, and not earlier than 30
days after receipt of comments from the Secretary of Energy and
the Nuclear Regulatory Commission under subsection (b), the
Board shall submit to Congress the report required under
subsection (a).
 (d) Definition.--In this section, the term ``Department of
Energy defense nuclear facility'' has the meaning provided by
section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 2286g).

 TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Disposal of beryllium copper master alloy in National Defense
 Stockpile.
Sec. 3304. Disposal of titanium sponge in National Defense Stockpile.
Sec. 3305. Disposal of cobalt in National Defense Stockpile.
Sec. 3306. Required procedures for disposal of strategic and critical
 materials.
Sec. 3307. Return of surplus platinum from the Department of the
 Treasury.

SEC. 3301. DEFINITIONS.

 In this title:
 (1) The term ``National Defense Stockpile'' means
 the stockpile provided for in section 4 of the
 Strategic and Critical Materials Stock Piling Act (50
 U.S.C. 98c).
 (2) The term ``National Defense Stockpile
 Transaction Fund'' means the fund in the Treasury of
 the United States established under section 9(a) of the
 Strategic and Critical Materials Stock Piling Act (50
 U.S.C. 98h(a)).
 (3) The term ``Market Impact Committee'' means the
 Market Impact Committee established under section 10(c)
 of the Strategic and Critical Materials Stock Piling
 Act (50 U.S.C. 98h-1(c)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

 (a) Obligation of Stockpile Funds.--During fiscal year
1998, the National Defense Stockpile Manager may obligate up to
$73,000,000 of the funds in the National Defense Stockpile
Transaction Fund for the authorized uses of such funds under
section 9(b)(2) of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98h(b)(2)).
 (b) Additional Obligations.--The National Defense Stockpile
Manager may obligate amounts in excess of the amount specified
in subsection (a) if the National Defense Stockpile Manager
notifies Congress that extraordinary or emergency conditions
necessitate the additional obligations. The National Defense
Stockpile Manager may make the additionalobligations described
in the notification after the end of the 45-day period beginning on the
date Congress receives the notification.
 (c) Limitations.--The authorities provided by this section
shall be subject to such limitations as may be provided in
appropriations Acts.

SEC. 3303. DISPOSAL OF BERYLLIUM COPPER MASTER ALLOY IN NATIONAL
 DEFENSE STOCKPILE.

 (a) Disposal Authorization.--Pursuant to section 5(b) of
the Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98d(b)), the National Defense Stockpile Manager may
dispose of all beryllium copper master alloy from the National
Defense Stockpile as part of continued efforts to modernize the
Stockpile.
 (b) Precondition for Disposal.--Before beginning the
disposal of beryllium copper master alloy under subsection (a),
the National Defense Stockpile Manager shall certify to
Congress that the disposal of beryllium copper master alloy
will not adversely affect the capability of the National
Defense Stockpile to supply the strategic and critical material
needs of the United States.
 (c) Consultation With Market Impact Committee.--In
disposing of beryllium copper master alloy under subsection
(a), the National Defense Stockpile Manager shall consult with
the Market Impact Committee to ensure that the disposal of
beryllium copper master alloy does not disrupt the domestic
beryllium industry.
 (d) Extended Sales Contracts.--The National Defense
Stockpile Manager shall provide for the use of long-term sales
contracts for the disposal of beryllium copper master alloy
under subsection (a) so that the domestic beryllium industry
can re-absorb this material into the market in a gradual and
nondisruptive manner. However, no such contract shall provide
for the disposal of beryllium copper master alloy over a period
longer than eight years, beginning on the date of the
commencement of the first contract under this section.
 (e) Relationship to Other Disposal Authority.--The disposal
authority provided in subsection (a) is new disposal authority
and is in addition to, and shall not affect, any other disposal
authority provided by law regarding materials in the National
Defense Stockpile.
 (f) Beryllium Copper Master Alloy Defined.--For purposes of
this section, the term ``beryllium copper master alloy'' means
an alloy of nominally four percent beryllium in copper.

SEC. 3304. DISPOSAL OF TITANIUM SPONGE IN NATIONAL DEFENSE STOCKPILE.

 (a) Disposal Required.--Subject to subsection (b), the
National Defense Stockpile Manager shall dispose of 34,800
short tons of titanium sponge contained in the National Defense
Stockpile provided for in section 4 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98c) and excess
to stockpile requirements.
 (b) Consultation With Market Impact Committee.--In
disposing of titanium sponge under subsection (a), the National
Defense Stockpile Manager shall consult with the Market Impact
Committee to ensure that the disposal of titanium sponge does
not disrupt the domestic titanium industry.
 (c) Relationship to Other Disposal Authority.--The disposal
authority provided in subsection (a) is new disposal authority
and is in addition to, and shall not affect, any other disposal
authority provided by law regarding materials in the National
Defense Stockpile.

SEC. 3305. DISPOSAL OF COBALT IN NATIONAL DEFENSE STOCKPILE.

 (a) Disposal Required.--Subject to subsections (b) and (c),
the President shall dispose of cobalt contained in the National
Defense Stockpile so as to result in receipts to the United
States in amounts equal to--
 (1) $20,000,000 during fiscal year 2003;
 (2) $30,000,000 during fiscal year 2004;
 (3) $34,000,000 during fiscal year 2005;
 (4) $34,000,000 during fiscal year 2006; and
 (5) $34,000,000 during fiscal year 2007.
 (b) Limitation on Disposal Quantity.--The total quantity of
cobalt authorized for disposal by the President under
subsection (a) may not exceed 14,058,014 pounds.
 (c) Minimization of Disruption and Loss.--The President may
not dispose of cobalt under subsection (a) to the extent that
the disposal will result in--
 (1) undue disruption of the usual markets of
 producers, processors, and consumers of cobalt; or
 (2) avoidable loss to the United States.
 (d) Treatment of Receipts.--Notwithstanding section 9 of
the Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98h), funds received as result of the disposal of cobalt
under subsection (a) shall be deposited into the general fund
of the Treasury.
 (e) Relationship to Other Disposal Authority.--The disposal
authority provided in subsection (a) is new disposal authority
and is in addition to, and shall not affect, any other disposal
authority provided by law regarding materials in the National
Defense Stockpile.

SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF STRATEGIC AND CRITICAL
 MATERIALS.

 Section 6(b) of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98e(b)) is amended in the first sentence
by striking out ``materials from the stockpile shall be made by
formal advertising or competitive negotiation procedures.'' and
inserting in lieu thereof ``strategic and critical materials
from the stockpile shall be made in accordance with the next
sentence.''.

SEC. 3307. RETURN OF SURPLUS PLATINUM FROM THE DEPARTMENT OF THE
 TREASURY.

 (a) Return of Platinum to Stockpile.--Subject to subsection
(b), the Secretary of the Treasury, upon the request of the
Secretary of Defense, shall return to the Secretary of Defense
for sale or other disposition platinum of the National Defense
Stockpile that has been loaned to the Department of the
Treasury by the Secretary of Defense, acting as the stockpile
manager. The quantity requested and required to be returned
shall be any quantity that the Secretary of Defense determines
appropriate for sale or other disposition.
 (b) Alternative Transfer of Funds.--The Secretary of the
Treasury, with the concurrence of the Secretary of Defense, may
transfer to the Secretary of Defense funds in a total amount
that is equal to the fair market value of any platinum
requested under subsection (a) and not returned. A transfer of
funds under this subsection shall be a substitute for a return
of platinum under subsection (a). Upon a transfer of funds as a
substitute for a return of platinum, the platinum shall cease
to be part of the National Defense Stockpile. A transfer of
funds under this subsection shall be charged to any
appropriation for the Department of the Treasury and shall be
credited to the National Defense Stockpile Transaction Fund.
 (c) Responsibility for Costs.--The return of platinum under
subsection (a) by the Secretary of the Treasury shall be made
without the expenditure of any funds available to the
Department of Defense. The Secretary of the Treasury shall be
responsible for all costs incurred in connection with the
return, such as transportation, storage, testing, refining, or
casting costs.

 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal
 year 1998.
Sec. 3403. Repeal of requirement to assign Navy officers to Office of
 Naval Petroleum and Oil Shale Reserves.
Sec. 3404. Transfer of jurisdiction, Naval Oil Shale Reserves Numbered 1
 and 3.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

 There is hereby authorized to be appropriated to the
Secretary of Energy $117,000,000 for fiscal year 1998 for the
purpose of carrying out activities under chapter 641 of title
10, United States Code, relating to the naval petroleum
reserves (as defined in section 7420(2) of such title). Funds
appropriated pursuant to such authorization shall remain
available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL
 YEAR 1998.

 Notwithstanding section 7430(b)(2) of title 10, United
States Code, during fiscal year 1998, any sale of any part of
the United States share of petroleum produced from Naval
Petroleum Reserves Numbered 1, 2, and 3 shall be made at a
price not less than 90 percent of the current sales price, as
estimated by the Secretary of Energy, of comparable petroleum
in the same area.

SEC. 3403. REPEAL OF REQUIREMENT TO ASSIGN NAVY OFFICERS TO OFFICE OF
 NAVAL PETROLEUM AND OIL SHALE RESERVES.

 Section 2 of Public Law 96-137 (42 U.S.C. 7156a) is
repealed.

SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE RESERVES NUMBERED
 1 AND 3.

 (a) Transfer Required.--Chapter 641 of title 10, United
States Code, is amended by adding at the end the following new
section:

``Sec. 7439. Certain oil shale reserves: transfer of jurisdiction and
 petroleum exploration, development, and production

 ``(a) Transfer Required.--(1) Upon the enactment of this
section, the Secretary of Energy shall transfer to the
Secretary of the Interior administrative jurisdiction over all
public domain lands included within Oil Shale Reserve Numbered
1 and those public domain lands included within the undeveloped
tracts of Oil Shale Reserve Numbered 3.
 ``(2) Not later than one year after the date of the
enactment of this section, the Secretary of Energy shall
transfer to the Secretary of the Interior administrative
jurisdiction over those public domain lands included within the
developed tract of Oil Shale Reserve Numbered 3, which consists
of approximately 6,000 acres and 24 natural gas wells, together
with pipelines and associated facilities.
 ``(3) Notwithstanding the transfer of jurisdiction, the
Secretary of Energy shall continue to be responsible for all
environmental restoration, waste management, and environmental
compliance activities that are required under Federal and State
laws with respect to conditions existing on the lands at the
time of the transfer.
 ``(4) Upon the transfer to the Secretary of the Interior of
jurisdiction over public domain lands under this subsection,
the other provisions of this chapter shall cease to apply with
respect to the transferred lands.
 ``(b) Authority To Lease.--(1) Beginning on the date of the
enactment of this section, or as soon thereafter as
practicable, the Secretary of the Interior shall enter into
leases with one or more private entities for the purpose of
exploration for, and development and production of, petroleum
(other than in the form of oil shale) located on or in public
domain lands in Oil Shale Reserves Numbered 1 and 3 (including
the developed tract of Oil Shale Reserve Numbered 3). Any such
lease shall be made in accordance with the requirements of the
Mineral Leasing Act (30 U.S.C. 181 et seq.) regarding the lease
of oil and gas lands and shall be subject to valid existing
rights.
 ``(2) Notwithstanding the delayed transfer of the developed
tract of Oil Shale Reserve Numbered 3 under subsection (a)(2),
the Secretary of the Interior shall enter into a lease under
paragraph (1) with respect to the developed tract before the
end of the one-year period beginning on the date of the
enactment of this section.
 ``(c) Management.--The Secretary of the Interior, acting
through the Director of the Bureau of Land Management, shall
manage the lands transferred under subsection (a) in accordance
with the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1701 et seq.) and other laws applicable to the public
lands.
 ``(d) Transfer of Existing Equipment.--The lease of lands
by the Secretary of the Interior under this section may include
the transfer, at fair market value, of any well, gathering
line, or related equipment owned by the United States on the
lands transferred under subsection (a) and suitable for use in
the exploration, development, or production of petroleum on the
lands.
 ``(e) Cost Minimization.--The cost of any environmental
assessment required pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) in connection with
a proposed lease under this section shall be paid out of
unobligated amounts available for administrative expenses of
the Bureau of Land Management.
 ``(f) Treatment of Receipts.--(1) Notwithstanding section
35 of the Mineral Leasing Act (30 U.S.C. 191), all moneys
received during the period specified in paragraph (2) from a
lease under this section (including moneys in the form of
sales, bonuses, royalties (including interest charges collected
under the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.)), and rentals) shall be covered into
the Treasury of the United States and shall not be subject to
distribution to the States pursuant to subsection (a) of such
section 35. Subject to a specific authorization and
appropriation for this purpose, such moneys may be used for
reimbursement of environmental restoration, waste management,
and environmental compliance costs incurred by the United
States with respect to the lands transferred under subsection
(a).
 ``(2) The period referred to in this subsection is the
period beginning on the date of the enactment of this section
and ending on the date on which the Secretary of Energy and the
Secretary of the Interior jointly certify to Congress that the
sum of the moneys deposited in the Treasury under paragraph (1)
is equal to the total of the following:
 ``(A) The cost of all environmental restoration,
 waste management, and environmental compliance
 activities incurred by the United States with respect
 to the lands transferred under subsection (a).
 ``(B) The cost to the United States to originally
 install wells, gathering lines, and related equipment
 on the transferred lands and any other cost incurred by
 the United States with respect to the lands.''.
 (b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``7439. Certain oil shale reserves: transfer of jurisdiction and
 petroleum exploration, development, and production.''.

 TITLE XXXV--PANAMA CANAL COMMISSION

 Subtitle A--Authorization of Expenditures From Revolving Fund

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Purchase of vehicles.
Sec. 3504. Expenditures only in accordance with treaties.

 Subtitle B--Facilitation of Panama Canal Transition

Sec. 3511. Short title; references.
Sec. 3512. Definitions relating to canal transition.

Part I--Transition Matters Relating to Commission Officers and Employees

Sec. 3521. Authority for the Administrator of the Commission to accept
 appointment as the Administrator of the Panama Canal
 Authority.
Sec. 3522. Post-Canal transfer personnel authorities.
Sec. 3523. Enhanced authority of Commission to establish compensation of
 Commission officers and employees.
Sec. 3524. Travel, transportation, and subsistence expenses for
 Commission personnel no longer subject to Federal travel
 regulation.
Sec. 3525. Enhanced recruitment and retention authorities.
Sec. 3526. Transition separation incentive payments.
Sec. 3527. Labor-management relations.
Sec. 3528. Availability of Panama Canal Revolving Fund for severance pay
 for certain employees separated by Panama Canal Authority
 after Canal Transfer Date.

Part II--Transition Matters Relating to Operation and Administration of
 Canal

Sec. 3541. Establishment of procurement system and Board of Contract
 Appeals.
Sec. 3542. Transactions with the Panama Canal Authority.
Sec. 3543. Time limitations on filing of claims for damages.
Sec. 3544. Tolls for small vessels.
Sec. 3545. Date of actuarial evaluation of FECA liability.
Sec. 3546. Appointment of notaries public.
Sec. 3547. Commercial services.
Sec. 3548. Transfer from President to Commission of certain regulatory
 functions relating to employment classification appeals.
Sec. 3549. Enhanced printing authority.
Sec. 3550. Technical and conforming amendments.

 Subtitle A--Authorization of Expenditures From Revolving Fund

SEC. 3501. SHORT TITLE.

 This subtitle may be cited as the ``Panama Canal Commission
Authorization Act for Fiscal Year 1998''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

 (a) In General.--Subject to subsection (b), the Panama
Canal Commission is authorized to use amounts in the Panama
Canal Revolving Fund to make such expenditures within the
limits of funds and borrowing authority available to it in
accordance with law, and to make such contracts and
commitments, as may be necessary under the Panama Canal Act of
1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance,
improvement, and administration of the Panama Canal for fiscal
year 1998.
 (b) Limitations.--For fiscal year 1998, the Panama Canal
Commission may expend from funds in the Panama Canal Revolving
Fund not more than $85,000 for official reception and
representation expenses, of which--
 (1) not more than $23,000 may be used for official
 reception and representation expenses of the
 Supervisory Board of the Commission;
 (2) not more than $12,000 may be used for official
 reception and representation expenses of the Secretary
 of the Commission; and
 (3) not more than $50,000 may be used for official
 reception and representation expenses of the
 Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

 Notwithstanding any other provision of law, the funds
available to the Commission shall be available for the purchase
and transportation to the Republic of Panama of passenger motor
vehicles, the purchase price of which shall not exceed $22,000
per vehicle.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

 Expenditures authorized under this subtitle may be made
only in accordance with the Panama Canal Treaties of 1977 and
any law of the United States implementing those treaties.

 Subtitle B--Facilitation of Panama Canal Transition

SEC. 3511. SHORT TITLE; REFERENCES.

 (a) Short Title.--This subtitle may be cited as the
``Panama Canal Transition Facilitation Act of 1997''.
 (b) References.--Except as otherwise expressly provided,
whenever in this subtitle an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Panama Canal Act of 1979 (22
U.S.C. 3601 et seq.).

SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.

 Section 3 (22 U.S.C. 3602) is amended by adding at the end
the following new subsection:
 ``(d) For purposes of this Act:
 ``(1) The term `Canal Transfer Date' means December
 31, 1999, such date being the date specified in the
 Panama Canal Treaty of 1977 for the transfer of the
 Panama Canal from the United States of America to the
 Republic of Panama.
 ``(2) The term `Panama Canal Authority' means the
 entity created by the Republic of Panama to succeed the
 Panama Canal Commission as of the Canal Transfer
 Date.''.

 PART I--TRANSITION MATTERS RELATING TO COMMISSION OFFICERS AND
 EMPLOYEES

SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE COMMISSION TO ACCEPT
 APPOINTMENT AS THE ADMINISTRATOR OF THE PANAMA
 CANAL AUTHORITY.

 (a) Authority for Dual Role.--Section 1103 (22 U.S.C. 3613)
is amended by adding at the end the following new subsection:
 ``(c) The Congress consents, for purposes of the 8th clause
of article I, section 9 of the Constitution of the United
States, to the acceptance by the individual serving as
Administrator ofthe Commission of appointment by the Republic
of Panama to the position of Administrator of the Panama Canal
Authority. Such consent is effective only if that individual, while
serving in both such positions, serves as Administrator of the Panama
Canal Authority without compensation, except for payments by the
Republic of Panama of travel and entertainment expenses, including per
diem payments.''.
 (b) Waiver of Ethics and Reporting Requirements.--Such
section is further amended by adding at the end the following
new subsection:
 ``(d) If before the Canal Transfer Date the Republic of
Panama appoints as the Administrator of the Panama Canal
Authority the individual serving as the Administrator of the
Commission and if that individual accepts the appointment--
 ``(1) during any period during which that
 individual serves as both Administrator of the
 Commission and the Administrator of the Panama Canal
 Authority--
 ``(A) the Foreign Agents Registration Act
 of 1938, as amended (22 U.S.C. 611 et seq.),
 shall not apply to that individual with respect
 to service as the Administrator of the Panama
 Canal Authority;
 ``(B) that individual, with respect to
 participation in any particular matter as the
 Administrator of the Panama Canal Commission,
 is not subject to section 208(a) of title 18,
 United States Code, insofar as that section
 would otherwise apply to that matter only
 because the matter will have a direct and
 predictable effect on the financial interest of
 the Panama Canal Authority;
 ``(C) that individual is not subject to
 sections 203 and 205 of title 18, United States
 Code, with respect to official acts performed
 as an agent or attorney for or otherwise
 representing the Panama Canal Authority; and
 ``(D) that individual is not subject to
 sections 501(a) and 502(a)(4) of the Ethics in
 Government Act of 1978 (5 U.S.C. App.), with
 respect to compensation received for, and
 service in, the position of Administrator of
 the Panama Canal Authority; and
 ``(2) effective upon termination of the
 individual's appointment as Administrator of the Panama
 Canal Commission at noon on the Canal Transfer Date,
 that individual is not subject to section 207 of title
 18, United States Code, with respect to acts done in
 carrying out official duties as Administrator of the
 Panama Canal Authority.''.

SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORITIES.

 (a) Waiver of Certain Post-employment Restrictions for
Commission Personnel Becoming Employees of the Panama Canal
Authority.--Section 1112 (22 U.S.C. 3622) is amended by adding
at the end the following new subsection:
 ``(e)(1) Section 207 of title 18, United States Code, does
not apply to a covered individual with respect to acts done in
carrying out official duties as an officer or employee of the
Panama Canal Authority.
 ``(2) For purposes of paragraph (1), a covered individual
is an officer or employee of the Panama Canal Authority who was
an officer or employee of the Commission (other than the
Administrator) and whose employment with the Commission
terminated at noon on the Canal Transfer Date.
 ``(3) This subsection is effective as of the Canal Transfer
Date.''.
 (b) Consent of Congress for Acceptance by Reserve and
Retired Members of the Uniformed Services of Employment by
Panama Canal Authority.--Such section is further amended by
adding after subsection (e), as added by subsection (a), the
following new subsection:
 ``(f)(1) The Congress consents to the following persons
accepting civil employment (and compensation for that
employment) with the Panama Canal Authority for which the
consent of the Congress is required by the last paragraph of
section 9 of article I of the Constitution of the United
States, relatingto acceptance of emoluments, offices, or titles
from a foreign government:
 ``(A) Retired members of the uniformed services.
 ``(B) Members of a reserve component of the armed
 forces.
 ``(C) Members of the Commissioned Reserve Corps of
 the Public Health Service.
 ``(2) The consent of the Congress under paragraph (1) is
effective without regard to subsection (b) of section 908 of
title 37, United States Code (relating to approval required for
employment of Reserve and retired members by foreign
governments).''.

SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ESTABLISH COMPENSATION
 OF COMMISSION OFFICERS AND EMPLOYEES.

 (a) Repeal of Limitations on Commission Authority.--The
following provisions are repealed:
 (1) Section 1215 (22 U.S.C. 3655), relating to
 basic pay.
 (2) Section 1219 (22 U.S.C. 3659), relating to
 salary protection upon conversion of pay rate.
 (3) Section 1225 (22 U.S.C. 3665), relating to
 minimum level of pay and minimum annual increases.
 (b) Savings Provision.--Section 1202 (22 U.S.C. 3642) is
amended by adding at the end the following new subsection:
 ``(c) In the case of an individual who is an officer or
employee of the Commission on the day before the date of the
enactment of the Panama Canal Transition Facilitation Act of
1997 and who has not had a break in service with the Commission
since that date, the rate of basic pay for that officer or
employee on or after that date may not be less than the rate in
effect for that officer or employee on the day before that date
of enactment except--
 ``(1) as provided in a collective bargaining
 agreement;
 ``(2) as a result of an adverse action against the
 officer or employee; or
 ``(3) pursuant to a voluntary demotion.''.
 (c) Cross-Reference Amendments.--(1) Section 1216 (22
U.S.C. 3656) is amended by striking out ``1215'' and inserting
in lieu thereof ``1202''.
 (2) Section 1218 (22 U.S.C. 3658) is amended by striking
out ``1215'' and ``1217'' and inserting in lieu thereof
``1202'' and ``1217(a)'', respectively.
 (d) Nonapplicability to Agencies in Panama Other Than
Panama Canal Commission.--Section 1212(b)(3) (22 U.S.C.
3652(b)(3)) is amended by striking out ``or the Panama Canal
Act Amendments of 1996'' and inserting in lieu thereof ``, the
Panama Canal Act Amendments of 1996 (subtitle B of title XXXV
of Public Law 104-201; 110 Stat. 2860), or the Panama Canal
Transition Facilitation Act of 1997''.

SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE EXPENSES FOR
 COMMISSION PERSONNEL NO LONGER SUBJECT TO FEDERAL
 TRAVEL REGULATION.

 (a) Repeal of Applicability of Title 5 Provisions.--(1)
Section 1210 (22 U.S.C. 3650) is amended by striking out
subsections (a), (b), and (c).
 (2) Section 1224 (22 U.S.C. 3664) is amended--
 (A) by striking out paragraph (10); and
 (B) by redesignating paragraphs (11) through (20)
 as paragraphs (10) through (19), respectively.
 (b) Conforming Amendments.--(1) Section 1210 is further
amended--
 (A) by redesignating subsection (d)(1) as
 subsection (a) and in that subsection striking out
 ``paragraph (2)'' and inserting in lieu thereof
 ``subsection (b)''; and
 (B) by redesignating subsection (d)(2) as
 subsection (b) and in that subsection--
 (i) striking out ``Notwithstanding
 paragraph (1), an'' and inserting in lieu
 thereof ``An''; and
 (ii) striking out ``referred to in
 paragraph (1)'' and inserting in lieu thereof
 ``who is a citizen of the Republic of Panama''.
 (2) The heading of such section is amended to read as
follows:

 ``air transportation''.

 (c) Effective Date.--The amendments made by this section
shall take effect on January 1, 1999.

SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AUTHORITIES.

 (a) Recruitment, Relocation, and Retention Bonuses.--
Section 1217 (22 U.S.C. 3657) is amended--
 (1) by redesignating subsection (c) as subsection
 (e);
 (2) in subsection (e) (as so redesignated), by
 striking out ``for the same or similar work performed
 in the United States by individuals employed by the
 Government of the United States'' and inserting in lieu
 thereof ``of the individual to whom the compensation is
 paid''; and
 (3) by inserting after subsection (b) the following
 new subsections:
 ``(c)(1) The Commission may pay a recruitment bonus to an
individual who is newly appointed to a position with the
Commission, or a relocation bonus to an employee of the
Commission who must relocate to accept a position, if the
Commission determines that the Commission would be likely, in
the absence of such a bonus, to have difficulty in filling the
position.
 ``(2) A recruitment or relocation bonus may be paid to an
employee under this subsection only if the employee enters into
an agreement with the Commission to complete a period of
employment established in the agreement. If the employee
voluntarily fails to complete such period of employment or is
separated from service in such employment as a result of an
adverse action before the completion of such period, the
employee shall repay the entire amount of the bonus.
 ``(3) A recruitment or relocation bonus under this
subsection may be paid as a lump sum. A bonus under this
subsection may not be considered to be part of the basic pay of
an employee.
 ``(d)(1) The Commission may pay a retention bonus to an
employee of the Commission if the Commission determines that--
 ``(A) the employee has unusually high or unique
 qualifications and those qualifications make it
 essential for the Commission to retain the employee for
 a period specified by the Commission ending not later
 than the Canal Transfer Date, or the Commission
 otherwise has a special need for the services of the
 employee making it essential for the Commission to
 retain the employee for a period specified by the
 Commission ending not later than the Canal Transfer
 Date; and
 ``(B) the employee would be likely to leave
 employment with the Commission before the end of that
 period if the retention bonus is not paid.
 ``(2) A retention bonus under this subsection--
 ``(A) shall be in a fixed amount;
 ``(B) shall be paid on a pro rata basis (over the
 period specified by the Commission as essential for the
 retention of the employee), with such payments to be
 made at the same time and in the same manner as basic
 pay; and
 ``(C) may not be considered to be part of the basic
 pay of an employee.
 ``(3) A decision by the Commission to exercise or to not
exercise the authority to pay a bonus under this subsection
shall not be subject to review under any statutory procedure or
any agency or negotiated grievance procedure except under any
of the laws referred to in section 2302(d) of title 5, United
States Code.''.
 (b) Educational Services.--Section 1321(e)(2) (22 U.S.C.
3731(e)(2)) is amended by striking out ``and persons'' and
inserting in lieu thereof ``, to other Commission employees
when determined by the Commission to be necessary for their
recruitment or retention, and to other persons''.

SEC. 3526. TRANSITION SEPARATION INCENTIVE PAYMENTS.

 Chapter 2 of title I (22 U.S.C. 3641 et seq.) is amended by
adding at the end of subchapter III the following new section:

 ``transition separation incentive payments

 ``Sec. 1233. (a) In applying to the Commission and
employees of the Commission the provisions of section 663 of
the Treasury, Postal Service, and General Government
Appropriations Act, 1997 (as contained in section 101(f) of
division A of Public Law 104-208; 110 Stat. 3009-383), relating
to voluntary separation incentives for employees of certain
Federal agencies (in this section referred to as `section
663')--
 ``(1) the term `employee' shall mean an employee of
 the Commission who has served in the Republic of Panama
 in a position with the Commission for a continuous
 period of at least three years immediately before the
 employee's separation under an appointment without time
 limitation and who is covered under the Civil Service
 Retirement System or the Federal Employees' Retirement
 System under subchapter III of chapter 83 or chapter
 84, respectively, of title 5, United States Code, other
 than--
 ``(A) an employee described in any of
 subparagraphs (A) through (F) of subsection
 (a)(2) of section 663; or
 ``(B) an employee of the Commission who,
 during the 24-month period preceding the date
 of separation, has received a recruitment or
 relocation bonus under section 1217(c) of this
 Act or who, within the 12-month period
 preceding the date of separation, received a
 retention bonus under section 1217(d) of this
 Act;
 ``(2) the strategic plan under subsection (b) of
 section 663 shall include (in lieu of the matter
 specified in subsection (b)(2) of that section)--
 ``(A) the positions to be affected,
 identified by occupational category and grade
 level;
 ``(B) the number and amounts of separation
 incentive payments to be offered; and
 ``(C) a description of how such incentive
 payments will facilitate the successful
 transfer of the Panama Canal to the Republic of
 Panama;
 ``(3) a separation incentive payment under section
 663 may be paid to a Commission employee only to the
 extent necessary to facilitate the successful transfer
 of the Panama Canal by the United States of America to
 the Republic of Panama as required by the Panama Canal
 Treaty of 1977;
 ``(4) such a payment--
 ``(A) may be in an amount determined by the
 Commission not to exceed $25,000; and
 ``(B) may be made (notwithstanding the
 limitation specified in subsection (c)(2)(D) of
 section 663) in the case of an eligible
 employee who voluntarily separates (whether by
 retirement or resignation) during the 90-day
 period beginning on the date of the enactment
 of this section or during the period beginning
 on October 1, 1998, and ending on December 31,
 1998;
 ``(5) in the case of not more than 15 employees who
 (as determined by the Commission) are unwilling to work
 for the Panama Canal Authority after the Canal Transfer
 Date and who occupy critical positions for which (as
 determined by the Commission) at least two years of
 experience is necessary to ensure that seasoned
 managers are in place on and after the Canal Transfer
 Date, such a payment (notwithstanding paragraph (4))--
 ``(A) may be in an amount determined by the
 Commission not to exceed 50 percent of the
 basic pay of the employee; and
 ``(B) may be made (notwithstanding the
 limitation specified in subsection (c)(2)(D) of
 section 663) in the case of such an employee
 who voluntarily separates (whether by
 retirement or resignation) during the 90-day
 period beginning on the date of the enactment
 of this section; and
 ``(6) the provisions of subsection (f) of section
 663 shall not apply.
 ``(b) A decision by the Commission to exercise or to not
exercise the authority to pay a transition separation incentive
under this section shall not be subject to review under any
statutory procedure or any agency or negotiated grievance
procedure except under any of the laws referred to in section
2302(d) of title 5, United States Code.''.

SEC. 3527. LABOR-MANAGEMENT RELATIONS.

 Section 1271 (22 U.S.C. 3701) is amended by adding at the
end the following new subsection:
 ``(c)(1) This subsection applies to any matter that becomes
the subject of collective bargaining between the Commission and
the exclusive representative for any bargaining unit of
employees of the Commission during the period beginning on the
date of the enactment of this subsection and ending on the
Canal Transfer Date.
 ``(2)(A) The resolution of impasses resulting from
collective bargaining between the Commission and any such
exclusive representative during that period shall be conducted
in accordance with such procedures as may be mutually agreed
upon between the Commission and the exclusive representative
(without regard to any otherwise applicable provisions of
chapter 71 of title 5, United States Code). Such mutually
agreed upon procedures shall become effective upon transmittal
by the Chairman of the Supervisory Board of the Commission to
the Congress of notice of the agreement to use those procedures
and a description of those procedures.
 ``(B) The Federal Services Impasses Panel shall not have
jurisdiction to resolve any impasse between the Commission and
any such exclusive representative in negotiations over a
procedure for resolving impasses.
 ``(3) If the Commission and such an exclusive
representative do not reach an agreement concerning a procedure
for resolving impasses with respect to a bargaining unit and
transmitnotice of the agreement under paragraph (2) on or
before July 1, 1998, the following shall be the procedure by which
collective bargaining impasses between the Commission and the exclusive
representative for that bargaining unit shall be resolved:
 ``(A) If bargaining efforts do not result in an
 agreement, either party may timely request the Federal
 Mediation and Conciliation Service to assist in
 achieving an agreement.
 ``(B) If an agreement is not reached within 45 days
 after the date on which either party requests the
 assistance of the Federal Mediation and Conciliation
 Service in writing (or within such shorter period as
 may be mutually agreed upon by the parties), the
 parties shall be considered to be at an impasse and the
 Federal Mediation and Conciliation Service shall
 immediately notify the Federal Services Impasses Panel
 of the Federal Labor Relations Authority, which shall
 decide the impasse.
 ``(C) If the Federal Services Impasses Panel fails
 to issue a decision within 90 days after the date on
 which notice under subparagraph (B) is received by the
 Panel (or within such shorter period as may be mutually
 agreed upon by the parties), the efforts of the Panel
 shall be terminated.
 ``(D) In such a case, the Chairman of the Panel (or
 another member in the absence of the Chairman) shall
 immediately determine the matter by a drawing
 (conducted in such manner as the Chairman (or, in the
 absence of the Chairman, such other member) determines
 appropriate) between the last offer of the Commission
 and the last offer of the exclusive representative,
 with the offer chosen through such drawing becoming the
 binding resolution of the matter.
 ``(4) In the case of a notice of agreement described in
paragraph (2)(A) that is transmitted to the Congress as
described in the second sentence of that paragraph after July
1, 1998, the impasse resolution procedures covered by that
notice shall apply to any impasse between the Commission and
the other party to the agreement that is unresolved on the date
on which that notice is transmitted to the Congress.''.

SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING FUND FOR SEVERANCE
 PAY FOR CERTAIN EMPLOYEES SEPARATED BY PANAMA CANAL
 AUTHORITY AFTER CANAL TRANSFER DATE.

 (a) Availability of Revolving Fund.--Section 1302(a) (22
U.S.C. 3712(a)) is amended by adding at the end the following
new paragraph:
 ``(10) Payment to the Panama Canal Authority, not
 later than the Canal Transfer Date, of such amount as
 is computed by the Commission to be the future amount
 of severance pay to be paid by the Panama Canal
 Authority to employees whose employment with the
 Authority is terminated, to the extent that such
 severance pay is attributable to periods of service
 performed with the Commission before the Canal Transfer
 Date (and assuming for purposes of such computation
 that the Panama Canal Authority, in paying severance
 pay to terminated employees, will provide for crediting
 of periods of service with the Commission).''.
 (b) Stylistic Amendments.--Such section is further
amended--
 (1) by striking out ``for--'' in the matter
 preceding paragraph (1) and inserting in lieu thereof
 ``for the following purposes:'';
 (2) by capitalizing the initial letter of the first
 word in each of paragraphs (1) through (9);
 (3) by striking out the semicolon at the end of
 each of paragraphs (1) through (7) and inserting in
 lieu thereof a period; and
 (4) by striking out ``; and'' at the end of
 paragraph (8) and inserting in lieu thereof a period.

PART II--TRANSITION MATTERS RELATING TO OPERATION AND ADMINISTRATION OF
 CANAL

SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM AND BOARD OF CONTRACT
 APPEALS.

 Title III of the Panama Canal Act of 1979 (22 U.S.C. 3601
et seq.) is amended by inserting after the title heading the
following new chapter:

 ``Chapter 1--Procurement

 ``procurement system

 ``Sec. 3101. (a) Panama Canal Acquisition Regulation.--(1)
The Commission shall establish by regulation a comprehensive
procurement system. The regulation shall be known as the
`Panama Canal Acquisition Regulation' (in this section referred
to as the `Regulation') and shall provide for the procurement
of goods and services by the Commission in a manner that--
 ``(A) applies the fundamental operating principles
 and procedures in the Federal Acquisition Regulation;
 ``(B) uses efficient commercial standards of
 practice; and
 ``(C) is suitable for adoption and uninterrupted
 use by the Republic of Panama after the Canal Transfer
 Date.
 ``(2) The Regulation shall contain provisions regarding the
establishment of the Panama Canal Board of Contract Appeals
described in section 3102.
 ``(b) Supplement to Regulation.--The Commission shall
develop a Supplement to the Regulation (in this section
referred to as the `Supplement') that identifies both the
provisions of Federal law applicable to procurement of goods
and services by the Commission and the provisions of Federal
law waived by the Commission under subsection (c).
 ``(c) Waiver Authority.--(1) Subject to paragraph (2), the
Commission shall determine which provisions of Federal law
should not apply to procurement by the Commission and may waive
those laws for purposes of the Regulation and Supplement.
 ``(2) For purposes of paragraph (1), the Commission may not
waive--
 ``(A) section 27 of the Office of Federal
 Procurement Policy Act (41 U.S.C. 423);
 ``(B) the Contract Disputes Act of 1978 (41 U.S.C.
 601 et seq.), other than section 10(a) of such Act (41
 U.S.C. 609(a)); or
 ``(C) civil rights, environmental, or labor laws.
 ``(d) Consultation With Administrator for Federal
Procurement Policy.--In establishing the Regulation and
developing the Supplement, the Commission shall consult with
the Administrator for Federal Procurement Policy.
 ``(e) Effective Date.--The Regulation and the Supplement
shall take effect on the date of publication in the Federal
Register, or January 1, 1999, whichever is earlier.

 ``panama canal board of contract appeals

 ``Sec. 3102. (a) Establishment.--(1) The Secretary of
Defense, in consultation with the Commission, shall establish a
board of contract appeals, to be known as the Panama Canal
Board of Contract Appeals, in accordance with section 8 of the
Contract Disputes Act of 1978 (41 U.S.C. 607). Except as
otherwise provided by this section, the Panama Canal Board of
Contract Appeals (in this section referred to as the `Board')
shall be subject to the Contract Disputes Act of 1978 (41
U.S.C. 601 et seq.) in the same manner as any other agency
board of contract appeals established under that Act.
 ``(2) The Board shall consist of three members. At least
one member of the Board shall be licensed to practice law in
the Republic of Panama. Individuals appointed to the Board
shall take an oath of office, the form of which shall be
prescribed by the Secretary of Defense.
 ``(b) Exclusive Jurisdiction To Decide Appeals.--
Notwithstanding section 10(a)(1) of the Contract Disputes Act
of 1978 (41 U.S.C. 609(a)(1)) or any other provision of law,
the Board shall have exclusive jurisdiction to decide an appeal
from a decision of a contracting officer under section 8(d) of
such Act (41 U.S.C. 607(d)).
 ``(c) Exclusive Jurisdiction To Decide Protests.--The Board
shall decide protests submitted to it under this subsection by
interested parties in accordance with subchapter V of title 31,
United States Code. Notwithstanding section 3556 of that title,
section 1491(b) of title 28, United States Code, and any other
provision of law, the Board shall have exclusive jurisdiction
to decide such protests. For purposes of this subsection--
 ``(1) except as provided in paragraph (2), each
 reference to the Comptroller General in sections 3551
 through 3555 of title 31, United States Code, is deemed
 to be a reference to the Board;
 ``(2) the reference to the Comptroller General in
 section 3553(d)(3)(C)(ii) of such title is deemed to be
 a reference to both the Board and the Comptroller
 General;
 ``(3) the report required by paragraph (1) of
 section 3554(e) of such title shall be submitted to the
 Comptroller General as well as the committees listed in
 such paragraph;
 ``(4) the report required by paragraph (2) of such
 section shall be submitted to the Comptroller General
 as well as Congress; and
 ``(5) section 3556 of such title shall not apply to
 the Board, but nothing in this subsection shall affect
 the right of an interested party to file a protest with
 the appropriate contracting officer.
 ``(d) Procedures.--The Board shall prescribe such
procedures as may be necessary for the expeditious decision of
appeals and protests under subsections (b) and (c).
 ``(e) Commencement.--The Board shall begin to function as
soon as it has been established and has prescribed procedures
under subsection (d), but not later than January 1, 1999.
 ``(f) Transition.--The Board shall have jurisdiction under
subsection (b) and (c) over any appeals and protests filed on
or after the date on which the Board begins to function. Any
appeals and protests filed before such date shall remain before
the forum in which they were filed.
 ``(g) Other Functions.--The Board may perform functions
similar to those described in this section for such other
matters or activities of the Commission as the Commission may
determine and in accordance with regulations prescribed by the
Commission.''.

SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AUTHORITY.

 Section 1342 (22 U.S.C. 3752) is amended--
 (1) by designating the text of the section as
 subsection (a); and
 (2) by adding at the end the following new
 subsections:
 ``(b) The Commission may provide office space, equipment,
supplies, personnel, and other in-kind services to the Panama
Canal Authority on a nonreimbursable basis.
 ``(c) Any executive department or agency of the United
States may, on a reimbursable basis, provide to the Panama
Canal Authority materials, supplies, equipment, work, or
services requested by the Panama Canal Authority, at such rates
as may be agreed upon by that department or agency and the
Panama Canal Authority.''.

SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR DAMAGES.

 (a) Filing of Administrative Claims With Commission.--
Sections 1411(a) (22 U.S.C. 3771(a)) and 1412 (22 U.S.C. 3772)
are each amended in the last sentence by striking out ``within
2 years after'' and all that follows through ``of 1985,'' and
inserting in lieu thereof ``within one year after the date of
the injury or the date of the enactment of the Panama Canal
Transition Facilitation Act of 1997,''.
 (b) Filing of Judicial Actions.--The penultimate sentence
of section 1416 (22 U.S.C. 3776) is amended--
 (1) by striking out ``one year'' the first place it
 appears and inserting in lieu thereof ``180 days''; and
 (2) by striking out ``claim, or'' and all that
 follows through ``of 1985,'' and inserting in lieu
 thereof ``claim or the date of the enactment of the
 Panama Canal Transition Facilitation Act of 1997,''.

SEC. 3544. TOLLS FOR SMALL VESSELS.

 Section 1602(a) (22 U.S.C. 3792(a)) is amended--
 (1) in the first sentence, by striking out ``supply
 ships, and yachts'' and inserting in lieu thereof ``and
 supply ships''; and
 (2) by adding at the end the following new
 sentence: ``Tolls for small vessels (including yachts),
 as defined by the Commission, may be set at rates
 determined by the Commission without regard to the
 preceding provisions of this subsection.''.

SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

 Section 5(a) of the Panama Canal Commission Compensation
Fund Act of 1988 (22 U.S.C. 3715c(a)) is amended by striking
out ``Upon the termination of the Panama Canal Commission'' and
inserting in lieu thereof ``By March 31, 1998''.

SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.

 Section 1102a (22 U.S.C. 3612a) is amended--
 (1) by redesignating subsection (g) as subsection
 (h); and
 (2) by inserting after subsection (f) the following
 new subsection:
 ``(g)(1) The Commission may appoint any United States
citizen to have the general powers of a notary public to
perform, on behalf of Commission employees and their dependents
outside the United States, any notarial act that a notary
public is required or authorized to perform within the United
States. Unless an earlier expiration is provided by the terms
of the appointment, any such appointment shall expire three
months after the Canal Transfer Date.
 ``(2) Every notarial act performed by a person acting as a
notary under paragraph (1) shall be as valid, and of like force
and effect within the United States, as if executed by or
before a duly authorized and competent notary public in the
United States.
 ``(3) The signature of any person acting as a notary under
paragraph (1), when it appears with the title of that person's
office, is prima facie evidence that the signature is genuine,
that the person holds the designated title, and that the person
is authorized to perform a notarial act.''.

SEC. 3547. COMMERCIAL SERVICES.

 Section 1102b (22 U.S.C. 3612b) is amended by adding at the
end the following new subsection:
 ``(e) The Commission may conduct and promote commercial
activities related to the management, operation, or maintenance
of the Panama Canal. Any such commercial activity shall be
carried out consistent with the Panama Canal Treaty of 1977 and
related agreements.''.

SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION OF CERTAIN REGULATORY
 FUNCTIONS RELATING TO EMPLOYMENT CLASSIFICATION
 APPEALS.

 Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a), 3662(a))
are amended by striking out ``President'' and inserting in lieu
thereof ``Commission''.

SEC. 3549. ENHANCED PRINTING AUTHORITY.

 Section 1306(a) (22 U.S.C. 3714b(a)) is amended by striking
out ``Section 501'' and inserting in lieu thereof ``Sections
501 through 517 and 1101 through 1123''.

SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.

 (a) Clerical Amendments.--The table of contents in section
1 is amended--
 (1) by striking out the item relating to section
 1210 and inserting in lieu thereof the following:

``Sec. 1210. Air transportation.'';

 (2) by striking out the items relating to sections
 1215, 1219, and 1225;
 (3) by inserting after the item relating to section
 1232 the following new item:

``Sec. 1233. Transition separation incentive payments.'';

 and
 (4) by inserting after the item relating to the
 heading of title III the following:

 ``Chapter 1--Procurement

``Sec. 3101. Procurement system.
``Sec. 3102. Panama Canal Board of Contract Appeals.''.

 (b) Amendment To Reflect Prior Change in Compensation of
Administrator.--Section 5315 of title 5, United States Code, is
amended by striking out the following:
 ``Administrator of the Panama Canal Commission.''.
 (c) Amendments To Reflect Change in Travel and
Transportation Expenses Authority.--(1) Section 5724(a)(3) of
title 5, United States Code, is amended by striking out ``, the
Commonwealth of Puerto Rico,'' and all that follows through
``Panama Canal Act of 1979'' and inserting in lieu thereof ``or
the Commonwealth of Puerto Rico''.
 (2) Section 5724a(j) of such title is amended--
 (A) by inserting ``and'' after ``Northern Mariana
 Islands,''; and
 (B) by striking out ``United States, and'' and all
 that follows through the period at the end and
 inserting in lieu thereof ``United States.''.
 (3) The amendments made by this subsection shall take
effect on January 1, 1999.
 (d) Miscellaneous Technical Amendments.--
 (1) Section 3(b) (22 U.S.C. 3602(b)) is amended by
 striking out ``the Canal Zone Code'' and all that
 follows through ``other laws'' the second place it
 appears and inserting in lieu thereof ``laws of the
 United States and regulations issued pursuant to such
 laws''.
 (2)(A) The following provisions are each amended by
 striking out ``the effective date of this Act'' and
 inserting in lieu thereof ``October 1, 1979'': sections
 3(b), 3(c), 1112(b), and 1321(c)(1).
 (B) Section 1321(c)(2) is amended by striking out
 ``such effective date'' and inserting in lieu thereof
 ``October 1, 1979''.
 (C) Section 1231(c)(3)(A) (22 U.S.C. 3671(c)(3)(A))
 is amended by striking out ``the day before the
 effective date of this Act'' and inserting in lieu
 thereof ``September 30, 1979''.
 (3) Section 1102a(h), as redesignated by section
 3546(1), is amended by striking out ``section 1102B''
 and inserting in lieu thereof ``section 1102b''.
 (4) Section 1110(b)(2) (22 U.S.C. 3620(b)(2)) is
 amended by striking out ``section 16 of the Act of
 August 1, 1956 (22 U.S.C. 2680a),'' and inserting in
 lieu thereof ``section 207 of the Foreign Service Act
 of 1980 (22 U.S.C. 3927)''.
 (5) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is
 amended by striking out ``as last in effect before the
 effective date of section 3530 of the Panama Canal Act
 Amendments of 1996'' and inserting in lieu thereof ``as
 in effect on September 22, 1996''.
 (6) Section 1243(c)(2) (22 U.S.C. 3681(c)(2)) is
 amended by striking out ``retroactivity'' and inserting
 in lieu thereof ``retroactively''.
 (7) Section 1341(f) (22 U.S.C. 3751(f)) is amended
 by striking out ``sections 1302(c)'' and inserting in
 lieu thereof ``sections 1302(b)''.

 TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1998.
Sec. 3602. Repeal of obsolete annual report requirement concerning
 relative cost of shipbuilding in the various coastal districts
 of the United States.
Sec. 3603. Provisions relating to maritime security fleet program.
Sec. 3604. Authority to utilize replacement vessels and capacity.
Sec. 3605. Authority to convey National Defense Reserve Fleet vessel.
Sec. 3606. Determination of gross tonnage for purposes of tank vessel
 double hull requirements.

SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.

 Funds are hereby authorized to be appropriated for fiscal
year 1998, to be available without fiscal year limitation if so
provided in appropriations Act, for the use of the Department
of Transportation for the Maritime Administration as follows:
 (1) For expenses necessary for operations and
 training activities, $70,000,000.
 (2) For expenses under the loan guarantee program
 authorized by title XI of the Merchant Marine Act, 1936
 (46 U.S.C. App. 1271 et seq.), $39,000,000 of which--
 (A) $35,000,000 is for the cost (as defined
 in section 502(5) of the Federal Credit Reform
 Act of 1990 (2 U.S.C. 661a(5))) of loan
 guarantees under the program; and
 (B) $4,000,000 is for administrative
 expenses related to loan guarantee commitments
 under the program.

SEC. 3602. REPEAL OF OBSOLETE ANNUAL REPORT REQUIREMENT CONCERNING
 RELATIVE COST OF SHIPBUILDING IN THE VARIOUS
 COASTAL DISTRICTS OF THE UNITED STATES.

 (a) Repeal.--Section 213 of the Merchant Marine Act, 1936
(46 U.S.C. App. 1123), is amended by striking out paragraph
(c).
 (b) Conforming Amendments.--Such section is further
amended--
 (1) by striking out ``on--'' in the matter
 preceding paragraph (a) and inserting in lieu thereof
 ``on the following:'';
 (2) by redesignating paragraphs (a) and (b) as
 paragraphs (1) and (2), respectively;
 (3) by striking out the semicolon at the end of
 each of those paragraphs and inserting in lieu thereof
 a period; and
 (4) by realigning those paragraphs so as to be
 indented 2 ems from the left margin.

SEC. 3603. PROVISIONS RELATING TO MARITIME SECURITY FLEET PROGRAM.

 (a) Authority of Contractors To Operate Self-Propelled Tank
Vessels in Noncontiguous Domestic Trades.--Section 656(b) of
the Merchant Marine Act, 1936 (46 U.S.C. App. 1187e(b)) is
amended by inserting ``(1)'' after ``(b)'', and by adding at
the end the following new paragraph:
 ``(2) Subsection (a) shall not apply to operation by a
contractor of a self-propelled tank vessel in a noncontiguous
domestic trade, or to ownership by a contractor of an interest
in a self-propelled tank vessel that operates in a
noncontiguous domestic trade.''.
 (b) Relief From Delay in Certain Operations Following
Documentation.--Section 652(c) of the Merchant Marine Act, 1936
(46 U.S.C. 1187a(c)) is amended by adding at the end the
following: ``The restrictions of section 901(b)(1) of this Act
concerning the building, rebuilding, or documentation of a
vessel in a foreign country shall not apply to a vessel for any
day the operator of that vessel is receiving payments under an
operating agreement under this subtitle.''.

SEC. 3604. AUTHORITY TO UTILIZE REPLACEMENT VESSELS AND CAPACITY.

 Section 653(d)(1) of the Merchant Marine Act, 1936 (46
U.S.C. App. 1187b(d)(1)) is amended to read as follows:
 ``(1) a contractor or other person that commits to
 make available a vessel or vessel capacity under the
 Emergency Preparedness Program or another primary
 sealift readiness program approved by the Secretary of
 Defense may, during the activation of that vessel or
 capacity under that program, operate or employ in
 foreign commerce a foreign-flag vessel or foreign-flag
 vessel capacity as a temporary replacement for the
 activated vessel or capacity; and''.

SEC. 3605. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.

 (a) Authority To Convey.--The Secretary of Transportation
may convey all right, title, and interest of the United States
Government in and to the vessel GOLDEN BEAR (United States
official number 239932) to the Artship Foundation, located in
Oakland, California (in this section referred to as the
``recipient''), for use as a multi-cultural center for the
arts.
 (b) Terms of Conveyance.--
 (1) Delivery of vessel.--In carrying out subsection
 (a), the Secretary shall deliver the vessel--
 (A) at the place where the vessel is
 located on the date of conveyance;
 (B) in its condition on that date; and
 (C) at no cost to the United States
 Government.
 (2) Required conditions.--The Secretary may not
 convey a vessel under this section unless--
 (A) the recipient agrees to hold the
 Government harmless for any claims arising from
 exposure to hazardous material, including
 asbestos and polychlorinated biphenyls, after
 conveyance of the vessel, except for claims
 arising before the date of the conveyance or
 from use of the vessel by the Government after
 that date; and
 (B) the recipient has available, for use to
 restore the vessel, in the form of cash, liquid
 assets, or a written loan commitment, financial
 resources of at least $100,000.
 (3) Additional terms.--The Secretary may require
 such additional terms in connection with the
conveyanceauthorized by this section as the Secretary considers
appropriate.
 (c) Other Unneeded Equipment.--The Secretary may convey to
the recipient of the vessel conveyed under this section any
unneeded equipment from other vessels in the National Defense
Reserve Fleet, for use to restore the vessel conveyed under
this section to museum quality.

SEC. 3606. DETERMINATION OF GROSS TONNAGE FOR PURPOSES OF TANK VESSEL
 DOUBLE HULL REQUIREMENTS.

 Section 3703a of title 46, United States Code, is amended
by adding at the end the following:
 ``(e)(1) For the purposes of this section and except as
otherwise provided in paragraphs (2) and (3) of this
subsection, the gross tonnage of a vessel shall be the gross
tonnage that would have been recognized by the Secretary on
July 1, 1997, as the tonnage measured under section 14502 of
this title, or as an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary under
section 14104 of this title.
 ``(2)(A) The Secretary may waive the application of
paragraph (1) to a tank vessel if--
 ``(i) the owner of the tank vessel applies to the
 Secretary for the waiver before January 1, 1998;
 ``(ii) the Secretary determines that--
 ``(I) the owner of the tank vessel has
 entered into a binding agreement to alter the
 tank vessel in a shipyard in the United States
 to reduce the gross tonnage of the tank vessel
 by converting a portion of the cargo tanks of
 the tank vessel into protectively located
 segregated ballast tanks; and
 ``(II) that conversion will result in a
 significant reduction in the risk of a
 discharge of oil;
 ``(iii) at least 60 days before the date of the
 issuance of the waiver, the Secretary--
 ``(I) publishes notice that the Secretary
 has received the application and made the
 determinations required by clause (ii),
 including a description of the agreement
 entered into pursuant to clause (ii)(I); and
 ``(II) provides an opportunity for
 submission of comments regarding the
 application; and
 ``(iv) the alterations referred to in clause
 (ii)(I) are completed before the later of--
 ``(I) the date by which the first special
 survey of the tank vessel is required to be
 completed after the date of the enactment of
 the National Defense Authorization Act for
 Fiscal Year 1998; or
 ``(II) July 1, 1999.
 ``(B) A waiver under subparagraph (A) shall not be
effective after the expiration of the 3-year period beginning
on the first date on which the tank vessel would have been
prohibited by subsection (c) from operating if the alterations
referred to in subparagraph (A)(ii)(I) were not made.
 ``(3) This subsection does not apply to a tank vessel that,
before July 1, 1997, had undergone, or was the subject of a
contract for, alterations that reduce the gross tonnage of the
tank vessel, as shown by reliable evidence acceptable to the
Secretary.''.
 And the Senate agree to the same.
 That the Senate recede from its amendment to the title of
the bill.
 From the Committee on National Security, for
 consideration of the House bill and the Senate
 amendment, and modifications committed to
 conference:
 Floyd Spence,
 Bob Stump,
 Duncan Hunter,
 John R. Kasich,
 Herbert H. Bateman,
 James V. Hansen,
 Curt Weldon,
 Joel Hefley,
 Jim Saxton,
 Steve Buyer,
 Tillie K. Fowler,
 John M. McHugh,
 James M. Talent,
 Terry Everett,
 (except for sections 355,
 356, and 358-367),
 Roscoe G. Bartlett,
 Howard ``Buck'' McKeon,
 Ron Lewis,
 J.C. Watts, Jr.,
 Saxby Chambliss,
 Bob Riley,
 Ike Skelton,
 Norman Sisisky,
 John M. Spratt, Jr.,
 (except for the increase
 over the President's
 request for research and
 development of a space-
 based laser and the
 statement of managers on
 this program),
 Solomon P. Ortiz,
 Owen Pickett,
 Gene Taylor,
 Neil Abercrombie,
 Martin T. Meehan,
 Jane Harman,
 Paul McHale,
 Patrick J. Kennedy,
 Rod Blagojevich,
 Vic Snyder,
 As additional conferees from the Permanent
 Select Committee on Intelligence, for
 consideration of matters within the
 jurisdiction of that committee under clause 2
 of rule XLVIII:
 Porter J. Goss,
 Jerry Lewis,
 Norm Dicks,
 As additional conferees from the Committee on
 Commerce for consideration of sections 344,
 601, 654, 735, 1021, 3143, 3144, 3201, 3202,
 3402, and 3404 of the House bill, and sections
 338, 601, 663, 706, 1064, 2823, 3136, 3140,
 3151, 3160, 3201, and 3402 of the Senate
 amendment, and modifications committed to
 conference:
 Tom Bliley,
 Dan Schaefer,
 Provided that Mr. Oxley is appointed in lieu of
 Mr. Dan Schaefer of Colorado for consideration
 of sections 344 and 1021 of the House bill and
 section 2823 of the Senate amendment:
 Michael G. Oxley,
 Provided that Mr. Bilirakis is appointed in
 lieu of Mr. Dan Schaefer of Colorado for
 consideration of sections 601, 654, and 735 of
 the House bill, and sections 338, 601, 663, and
 706 of the Senate amendment:
 Mike Bilirakis,
 Provided that Mr. Tauzin is appointed in lieu
 of Mr. Dan Schaefer of Colorado for
 consideration of section 1064 of the Senate
 amendment.
 Billy Tauzin,
 As additional conferees from the Committee on
 Education and the Workforce, for consideration
 of sections 374, 658, and 3143 of the House
 bill, and sections 664 of the Senate amendment,
 and modifications committed to conference:
 Bill Goodling,
 Harris W. Fawell,
 Loretta Sanchez,
 Provided that Mr. Riggs is appointed in lieu of
 Mr. Fawell for consideration of section 658 of
 the House bill and section 664 of the Senate
 amendment:
 Frank Riggs,
 As additional conferees from the Committee on
 Government Reform and Oversight, for
 consideration of section 322 and 3527 of the
 House bill, and sections 1068, 1107, 2811, and
 3527 of the Senate amendment, and modifications
 committed to conference:
 Dan Burton,
 Stephen Horn,
 As additional conferees from the Committee on
 House Oversight, for consideration of section
 543 of the Senate amendment, and modifications
 committed to conference:
 William M. Thomas,
 Bob Ney,
 As additional conferees from the Committee on
 the Judiciary, for consideration of sections
 374, 1057, 3521, 3522, and 3541 of the House
 bill, and sections 831, 1073, 1075, 1106, and
 1201-1216 of the Senate amendment, and
 modifications committed to conference:
 Henry J. Hyde,
 Lamar Smith,
 As additional conferees from the Committee on
 Resources, for consideration of sections 214,
 601, 653, 1021, 2835, 2901-2914 and 3404 of the
 House bill, and sections 234, 381-392, 601,
 706, 2819, and 3158 of the Senate amendment,
 and modifications committed to conference:
 Don Young,
 Billy Tauzin,
 Provided that Mr. Delahunt is appointed in lieu
 of Mr. Miller of California for consideration
 of sections 2901-2914 of the House bill and
 sections 381-392 of the Senate amendment.
 William Delahunt,
 As additional conferees from the Committee on
 Science, for consideration of sections 214 and
 3148 of the House bill, and sections 234 and
 1064 of the Senate amendment, and modifications
 committed to conference:
 F. James Sensenbrenner, Jr.,
 Ken Calvert,
 George E. Brown, Jr.,
 Provided that Mr. Rohrabacher is appointed in
 lieu of Mr. Calvert for consideration of
 section 1064 of the Senate amendment:
 Dana Rohrabacher,
 As additional conferees from the Committee on
 Transportation and Infrastructure for
 consideration of sections 345, 563, 601, 1021,
 2861, and 3606 of the House bill, and section
 601 of the Senate amendment, and modifications
 committed to conference:
 Bud Shuster,
 Wayne T. Gilchrest,
 Robert A. Borski,
 As additional conferees from the Committee on
 Veterans' Affairs for consideration of sections
 751, 752, and 759 of the House bill, and
 sections 220, 542, 751, 752, 758, 1069, 1074,
 and 1076 of the Senate amendment, and
 modifications committed to conference:
 Christopher H. Smith,
 Mike Bilirakis,
 Joseph P. Kennedy,
 Managers on the Part of the House.
 Strom Thurmond,
 John Warner,
 John McCain,
 Dan Coats,
 Bob Smith,
 Dirk Kempthorne,
 Jim Inhofe,
 Rick Santorum,
 Olympia Snowe,
 Pat Roberts,
 Carl Levin,
 Ted Kennedy,
 Jeff Bingaman,
 John Glenn,
 Robert C. Byrd,
 Chuck Robb,
 Joe Lieberman,
 Max Cleland,
 Managers on the Part of the Senate.
 JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

 The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 1119) to
authorize appropriations for fiscal year 1998 for defense
activities of the Department of Defense, for military
construction, and for defense programs of the Department of
Energy, to prescribe personnel strengths for such fiscal year
for the Armed Forces, and for other purposes, submit the
following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the
managers and recommended in the accompanying conference report:
 The Senate amendment struck out all of the House bill
after the enacting clause and inserted a substitute text.
 The House recedes from its disagreement to the amendment
of the Senate with an amendment which is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clarifying
changes.

 Summary Statement of Conference Action

 The conferees recommend authorizations for the Department
of Defense for procurement, research and development, test and
evaluation, operation and maintenance, working capital funds,
military construction and family housing, weapons programs of
the Department of Energy, and the civil defense that have
budget authority implications of $268.2 billion.

 Summary Table of Authorizations

 The defense authorization act provides authorizations for
appropriations but does not generally provide budget authority.
Budget authority is provided in appropriations acts.
 In order to relate the conference recommendations to the
Budget Resolution, matter in addition to the dollar
authorizations contained in this bill must be taken into
account. A number of programs in the defense function are
authorized permanently or, in certain instances, authorized in
other annual legislation. In addition, this authorization bill
would establish personnel levels and include a number of
legislative provisions affecting military compensation.
 The following table summarizes authorizations included in
the bill for fiscal year 1998 and, in addition, summarizes the
implications of the conference action for the budget totals for
national defense (budget function 050).
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

Congressional defense committees

 The term ``congressional defense committees'' is often
used in this statement of the managers. It means the Defense
Authorization and Appropriations Committees of the Senate and
House of Representatives.

 DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

 Title I--Procurement

Overview

 The budget request for fiscal year 1998 contained an
authorization of $42,883.0 million for Procurement in the
Department of Defense. The House bill would authorize $46,595.9
million. The Senate amendment would authorize $47,028.1
million. The conferees recommended an authorization of
$45,773.8 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.
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Overview

 The budget request for fiscal year 1998 contained an
authorization of $1,162.5 million for Aircraft Procurement,
Army in the Department of Defense. The House bill would
authorize $1,535.3 million. The Senate amendment would
authorize $1,394.5 million. The conferees recommended an
authorization of $1,316.2 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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 funding explanations

UH-60 blackhawk

 The budget request included $246.1 million to procure 18
UH-60 Blackhawk helicopters.
 The House bill would authorize an increase of $96.0
million for an additional 12 aircraft.
 The Senate amendment would authorize an increase of
$127.3 million for 18 additional aircraft.
 The conferees agree to authorize an increase of $89.0
million for 10 additional aircraft, of which $6.0 million would
be used to procure kits to configure UH-60Q medical evacuation
aircraft.

Kiowa warrior

 The budget request included $38.8 million for Kiowa
Warrior helicopter modifications.
 The House bill would authorize an increase of $175.0
million to procure 21 aircraft.
 The Senate amendment would authorize an additional $15.0
million for safety modifications to existing aircraft.
 The House recedes.

Aircraft survivability equipment modifications

 The budget request included $4.6 million to support
aircraft survivability equipment modifications.
 The House bill would authorize an increase of $15.0
million for laser detection sets for Army aircraft.
 The Senate amendment would authorize an additional $8.1
million for testing and integration of the suite of integrated
radio frequency countermeasures and the suite of integrated
infrared countermeasures systems.
 The conferees agree to authorize a total of $19.1 million
for aircraft survivability equipment modifications, of which
$7.0 million would be for laser detection sets and $7.5 million
for advanced threat infrared countermeasures.

Aircraft survivability equipment

 The budget request included $0.9 million to procure
aircraft survivability equipment.
 The House bill would authorize an increase of $14.8
million to procure upgrades to the aircraft survivability
equipment trainer (ASET) IV system.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $7.4
million for ASET IV upgrades.

Training devices

 The budget request included no funds for aircraft
training devices.
 The House bill and the Senate amendment would authorize
an increase of $18.6 million to procure upgrades to flight
simulators used in the Korean theater.
 The conferees agree to authorize an increase of $13.3
million for these critical simulator upgrades.

Overview

 The budget request for fiscal year 1998 contained an
authorization of $1,178.2 million for Missile Procurement, Army
in the Department of Defense. The House bill would authorize
$1,176.5 million. The Senate amendment would authorize $1,223.9
million. The conferees recommended an authorization of $742.6
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.
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Avenger

 The budget request included no funds for procurement of
Avenger missile systems.
 The House bill would authorize an increase of $13.3
million for Avenger slew-to-cue modifications.
 The Senate amendment would authorize an increase of $15.0
million to the budget request: $13.0 million for Avenger slew-
to-cue modifications; and $2.0 million for Avenger table top
trainers for the Army National Guard.
 The conferees agree to authorize $7.4 million for Avenger
slew-to-cue modifications.

Hellfire

 The budget request included $279.7 million for
procurement of Hellfire missile systems.
 The House bill would support the budget request.
 The Senate amendment would reduce the budget request by
$10.7 million.
 The conferees agree to reduce the Hellfire missile
program by $30.7 million.

Multiple launch rocket system rocket

 The budget request included $2.9 million for procurement
of Multiple Launch Rocket System (MLRS) rockets.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $12.0
million for procurement of extended range MLRS rockets.
 The House recedes.

Multiple launch rocket system launcher

 The budget request included $102.6 million to support
procurement of Multiple Launch Rocket System (MLRS) launchers.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $25.1
million for MLRS launchers necessary to accelerate Army plans
to convert MLRS force structure to a new 2 <greek-e> 9
configuration.
 The conferees agree to authorize $115.7 million for this
program. This total includes $25.1 million for additional
launchers and a transfer of $12.0 million to MLRS extended
range rockets.

Brilliant anti-armor submunition

 The budget request included $85.2 million for procurement
of Brilliant Anti-Armor Submunition (BAT) submunitions.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees are concerned about the Army's procurement
of basic BAT munitions prior to production and fielding of the
objective preplanned product improvement (P3I) BAT system.
While the conferees understand that the Army plans to use the
basic BAT as a bridge to the P3I system for development and
fielding of the Block II Army Tactical Missile System, it is
clear that the basic BAT system is solely an interim solution
and cannot meet the entire range of system requirements. The
conferees agree to eliminate funding for the basic BAT
munition. The conferees, in support of an alternative to
procuring basic BAT munitions, agree to authorize a transfer of
$35.0 million to PE 64768A in order to accelerate development
and production of the P3I BAT.

Overview

 The budget request for fiscal year 1998 contained an
authorization of $1,065.7 million for Weapons and Tracked
Combat Vehicles Procurement, Army in the Department of Defense.
The House bill would authorize $1,519.5 million. The Senate
amendment would authorize $1,179.1 million. The conferees
recommended an authorization of $1,297.6 million. Unless noted
explicitly in the statement of managers, all changes are made
without prejudice.
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Bradley base sustainment
 The budget request included $125.6 million to upgrade
Bradley Fighting Vehicles (BFV).
 The House bill would authorize the budget request but
would also authorize $120.0 million for A0 to A2 Operation
Desert Storm (ODS) upgrades for the Army National Guard (ARNG)
in the BFV funding line.
 The Senate amendment would authorize an increase of $62.4
million to maintain low-rate production rates for A3 upgrades
necessary prior to full scale production in 1999.
 The conferees agree to authorize an increase of $95.0
million for BFV ODS upgrades for the ARNG.
Field artillery ammunition support vehicle
 The budget request included no funds for Field Artillery
Ammunition Support Vehicles (FAASV).
 The House bill would authorize an increase of $81.1
million to procure 72 FAASV systems.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $40.0 million for the
FAASV systems necessary to support Army National Guard
artillery modernization.
M109A6 paladin howitzer
 The budget request included $18.7 million for Paladin
howitzer artillery system support.
 The House bill would authorize an increase of $111.0
million to procure 72 Paladin howitzer systems.
 The Senate amendment would authorize the budget request.
 The Senate recedes with an amendment that would authorize
an increase of $56.0 million for no less than 36 Paladin
systems.
 The conferees agree to authorize $74.7 million for the
M109A6 Paladin in support of Army National Guard artillery
modernization.
Improved recovery vehicle
 The budget request included $28.6 million for Improved
Recovery Vehicle (IRV) program support.
 The House bill would authorize an increase of $27.8
million to procure an additional 12 vehicles.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $32.6 million for IRV
system requirements.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $336.8 million for Ammunition Procurement,
Navy and Marine Corps in the Department of Defense. The House
bill would authorize $470.4 million. The Senate amendment would
authorize $369.8 million. The conferees recommended an
authorization of $364.7 million. Unless noted explicitly in the
statement of managers, all changes are made without prejudice.
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Overview

 The budget request for fiscal year 1998 contained an
authorization of $7,438.2 million for Shipbuilding and
Conversion Procurement, Navy in the Department of Defense. The
House bill would authorize $7,655.0 million. The Senate
amendment would authorize $8,593.4 million. The conferees
recommended an authorization of $8,195.3 million. Unless noted
explicitly in the statement of managers, all changes are made
without prejudice.
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LPD-18
 The budget request included no funds for the LPD-18.
 The House bill would authorize $185.0 million for advance
procurement of this type ship.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $100.0 million for the
advance procurement of one LPD-17 class ship.
Oceanographic survey ship
 The budget request included no funds for an additional
oceanographic survey ship.
 The House bill and Senate amendment would authorize $75.2
million for one TAGS-65 oceanographic survey ship.
 The conferees agree to authorize $16.0 million advance
procurement for one TAGS-65 oceanographic survey ship.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $2,825.5 million for Other Procurement, Navy
in the Department of Defense. The House bill would authorize
$3,073.4 million. The Senate amendment would authorize $3,137.7
million. The conferees recommended an authorization of $2,970.9
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.
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AN/WSN-7 inertial navigation system

 The budget request included $31.6 million for navigation
equipment, including $12.3 million for the procurement of nine
AN/WSN-7 ring laser gyros (RLGs).
 The House bill and the Senate amendment would authorize
an increase of $18.0 million for procurement and installation
of 18 additional WSN-7 RLGs.
 The conferees agree to authorize an increase of $10.5
million for procurement and installation of additional WSN-7
RLGs.

Self-contained breathing apparatus

 The budget request included $14.1 million for fire
fighting equipment, but did not include funding for procurement
of oxygen breathing apparatuses used for shipboard
firefighting.
 The House bill would authorize an increase of $23.0
million to begin outfitting the fleet with self-contained
breathing apparatuses (SCBAs), a non-developmental, commercial
off-the-shelf more user-friendly and efficient shipboard
firefighting system to replace the antiquated oxygen-breathing
apparatus (OBA).
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $5.0
million for procurement of SCBAs.

Pollution control equipment

 The budget request included $156.8 million for pollution
control equipment.
 The House bill would authorize a decrease of $6.3 million
because an equivalent amount of excess fiscal year 1997 funds
is available to meet fiscal year 1998 program requirements.
 The Senate amendment would authorize a decrease of $8.8
million due to reduced requirements resulting from ship
deactivations.
 The conferees agree to authorize $135.8 million, a
decrease of $21.0 million, for pollution control equipment.

AN/BPS-16 submarine navigation radar

 The budget request included no funds for the procurement
of AN/BPS-16 or AN/BPS-15H submarine navigation radar.
 The House bill would authorize $9.0 million for the AN/
BPS-16 submarine navigation radar to initiate the backfit of
the radar on the Trident submarine fleet.
 The Senate amendment would authorize $9.0 million for the
procurement of additional AN/BPS-15H radar sets for
installation into Trident class submarines and for use as
training and refit facility assets.
 The conferees agree to authorize $9.0 million for AN/BPS-
15H radar navigation sets.

Cooperative engagement capability

 The budget request included no funds for procurement of
cooperative engagement capability (CEC) equipment.
 The House bill would authorize $114.8 million to restore
the Navy's CEC fielding plan by procuring and installing CEC
shipsets for two aircraft carrier battle groups.
 The Senate amendment would authorize $74.8 million to
procure and install CEC battle group equipment.
 The conferees agree to authorize an increase of $75.0
million for procurement and installation of CEC battle group
equipment.

Information Technology-21

 The budget request included no funds for Information
Technology-21 (IT-21).
 The Senate amendment would authorize an increase of
$157.2 million for IT-21. Of this amount $147.9 would be for
procurement and installation of IT-21 related equipment and
$9.3 million would be for related operations and maintenance
funding. These funds would provide an initial impetus to the
IT-21 initiative and assist the Navy to achieve its goal of a
fully outfitted fleet by the year 2000.
 The House bill would authorize the budget request.
 The conferees agree to authorize a total IT-21
procurement increase of $58.0 million as follows:
 (1) JMCIS Afloat $6.0 million;
 (2) Naval Tactical Command Support System $31.0
 million;
 (3) Ship Communications Automation $4.0 million;
 (4) SATCOM Ship Terminals (Space) $2.0 million;
 (5) Naval Shore Communications $12.0 million; and
 (6) Information Systems Security Program $3.0 million

Sonobuoy procurement

 The budget request included $54.8 million for the
procurement of AN/SSQ-36, AN/SSQ-53E, and AN/SSQ-62E sonobuoys
and Signal, Underwater Sound (SUS) Systems. The budget request
included no funds for the AN/SSQ-57 or the AN/SSQ-110
sonobuoys.
 The House bill would authorize an increase of $45.8
million to be distributed as follows: $1.5 million for AN/SSQ-
36; $23.7 million for AN/SSQ-53; $4.5 million for AN/SSQ-57
retrofits; $8.6 million for SSQ-62; $5.0 million for AN/SSQ-110
shallow-water upgrades; and $2.5 million for Signal, Underwater
Sound (SUS).
 The Senate amendment would authorize increases of $19.0
million for AN/SSQ-53E and $7.0 million for AN/SSQ-62E
sonobuoys.
 The conferees agree to authorize the following increases to
the budget request: $0.3 million for AN/SSQ-36; $19.0 million
for AN/SSQ-53; $7.0 million for SSQ-62; and $0.5 million for
AN/SSQ-57.

Mobile remote emitter simulator

 The budget request included $4.9 million for weapons
range support, but did not include any funding to procure
Mobile Remote Emitter Simulator (MRES) system.
 The House bill would authorize an increase of $9.5
million to procure two MRES systems for the Atlantic test range
component of the Naval Air Warfare Center.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $6.0
million for MRES.

NATO sea sparrow missile system low light level television

 The budget request included no funds for the NATO Sea
Sparrow missile system low light level television (LLTV)
charged coupled device (CCD) ordnance alternation (ORDALT).
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $8.0
million above the budget request for the procurement of
additional CCD ORDALT kits.
 The conferees agree to an increase of $6.0 million for
the procurement of additional CCD ORDALT kits.

AEGIS support equipment

 The budget request included $26.8 million for AEGIS
support equipment.
 The House bill would authorize an increase of $8.0
million to backfit the computer-aided submode training lesson
authorizing system (CLASS) on AEGIS cruisers and destroyers and
to expand CLASS to other systems such as cooperative engagement
capability, joint maritime command information system, and
global command and control system.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize a $21.1 million for
AEGIS support equipment.

Overview

 The budget request for fiscal year 1998 contained an
authorization of $374.3 million for Marine Corps Procurement,
Navy in the Department of Defense. The House bill would
authorize $442.8 million. The Senate amendment would authorize
$554.8 million. The conferees recommended an authorization of
$460.1 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.
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Light tactical wheeled vehicle replacement
 The budget request included $0.7 million to support the
Marine Corps High Mobility Multipurpose Wheeled Vehicle (HMMWV)
program.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $55.0
million to accelerate a planned replacement program for a
deteriorating HMMWV fleet.
 The conferees agree to authorize an increase of $30.0
million.
Chemical/biological incident response force equipment
 The budget request included $1.1 million for field
medical equipment and no funding for chemical/biological
incident response force (CBIRF) equipment.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $15.0
million for procurement of CBIRF equipment.
 The conferees agree to authorize an increase of $10.0
million for CBIRF requirements for a total of $11.1 million for
Marine Corps field medical equipment procurement.
MK-19 grenade launcher
 The budget request included no funds for the MK-19
grenade launcher.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $13.0
million to maintain production of the MK-19 grenade launchers.
 The conferees agree to authorize a total of $8.0 million
for the MK-19 grenade launcher.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $890.9 million for Ammunition Procurement,
Army in the Department of Defense. The House bill would
authorize $1,093.8 million. The Senate amendment would
authorize $1,043.2 million. The conferees recommended an
authorization of $1,011.2 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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Overview

 The budget request for fiscal year 1998 contained an
authorization of $2,455.0 million for Other Procurement, Army
in the Department of Defense. The House bill would authorize
$2,640.3 million. The Senate amendment would authorize $2,875.7
million. The conferees recommended an authorization of $2,566.2
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.
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Semitrailers
 The budget request included funds for a variety of
semitrailer requirements.
 The conferees note program delays for several semitrailer
procurements. In consideration of these delays, the conferees
agree to funding reductions of $7.4 million for 22.5 ton
semitrailer/container transporters; $4.6 million for 5,000
gallon tank semitrailers; and $7.4 million for 7,500 gallon
bulkhaul semitrailers. In addition, the conferees agree to
authorize $2.0 million for 22.5 ton semitrailer/container
transporters; $3.0 million for 5,000 gallon tank semitrailers;
and $3.0 million for 7,500 gallon bulkhaul semitrailers.
High mobility multi-purpose wheeled vehicle
 The budget request included $66.2 million for High
Mobility Multi-Purpose Wheeled Vehicle (HMMWV) production.
 The House bill would authorize an increase of $38.7
million for 360 up-armored HMMWVs.
 The Senate amendment would authorize an increase of $75.0
million to maintain minimum production levels of HMMWVs.
 The conferees agree to authorize an increase of $65.0
million for HMMWV production.
Family of heavy tactical vehicles
 The budget request included $9.1 million for Family of
Heavy Tactical Vehicles (FHTV) production support.
 The House bill would authorize an increase of $45.0
million to procure 96 Heavy Equipment Transporters (HETS) for
the Army National Guard.
 The Senate amendment would authorize an increase of
$128.0 million to maintain minimum production levels of FHTVs.
This funding would include $50.0 million for the Palletized
Load System (PLS); $45.0 million for HETS; and $33.0 million
for Heavy Expanded Mobility Tactical Truck (HEMTT) wreckers.
 The conferees agree to authorize an increase of $105.0
million for FHTV. Of this amount, $45.0 million is for HETS and
the remaining $60.0 million is for HEMTT wreckers and PLS.
Truck, tractor, line haul, M915/M916
 The budget request included $36.1 million to procure
M915/916 line haul tractors.
 The House bill would reduce the request by $18.0 million
to achieve a more moderate rate of production.
 The Senate amendment would authorize the budget request.
 The conferees understand that there has been a delay in
the 7,500 gallon bulkhaul semitrailer program, which is the
type of trailer towed by the M915/916 line haul tractor series.
Accordingly the conferees believe that revised Army
requirements can be met at lower average procurement rates than
previously planned and therefore agree to eliminate funding for
these tractors in fiscal year 1998. Further, the Secretary of
the Army is directed to review requirements for this equipment
and restructure the program to achieve an annual procurement
rate consistent with revised requirements beginning in fiscal
year 1999.
Defense satellite communications system
 The budget request included $87.6 million for defense
satellite communications system requirements.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees note the budget request included funding
for acceleration of the production of a universal modem system.
The conferees understand that required testing for this system
will not be complete until late 1999. Therefore, the conferees
agree to reduce program funding by $2.0 million.
Satellite terminals
 The budget request included $7.3 million for satellite
communication terminals.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees note the savings achieved from a joint
Army/Air Force procurement in 1997. The conferees believe that
these savings should be used to offset funding requirements for
fiscal year 1998. Therefore, the conferees agree to reduce
program funding by $1.2 million.
NAVSTAR global positioning system
 The budget request included $6.8 million for NAVSTAR
Global Positioning System (GPS) equipment.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees have been informed that both price and
quantities budgeted for NAVSTAR GPS equipment were reduced in
1997. Additionally, the conferees understand that
programmanagement reductions have also yielded savings. The conferees
believe these savings should be used to offset funding requirements for
fiscal year 1998. Therefore, the conferees agree to reduce funding for
this program by $1.2 million.
Army data distribution system
 The budget request included $57.2 million to procure data
distribution systems, including $7.0 million for joint tactical
information distribution system (JTIDS) terminals.
 The House bill would authorize an increase of $37.4
million to procure an additional 1,092 enhanced position
location reporting system (EPLRS) radios.
 The Senate amendment would authorize an increase of $37.3
million for 1,092 EPLRS radios.
 The conferees agree to authorize an increase of $30.4
million for EPLRS radios and transfer $20.1 million for JTIDS
terminals to ballistic missile defense procurement.
 The conferees agree to authorize $67.5 million for
critical data distribution systems.
Area common user system modernization program
 The budget request included $82.4 million for Area Common
User System (ACUS) modernization.
 The House bill would authorize an increase of $10.0
million to procure tactical communications technologies for
evaluation by Force XXI experimental forces.
 The Senate amendment would authorize an increase of $33.0
million to support ongoing modifications to the ACUS and
support migration to the Army's Warfighter Information Network.
 The conferees agree to authorize an increase of $23.0
million for ACUS.
Information system security program
 The budget request included $10.2 million to procure
information system security devices.
 The House bill would support the budget request.
 The Senate amendment would authorize an increase of $5.5
million to support minimum production requirements for 400
Airterm KY-100 devices.
 The conferees agree to authorize an increase of $3.5
million for Airterm KY-100 devices.
Ground based common sensors
 The budget request included $26.8 million for ground
based common sensors.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to eliminate funding in fiscal year
1998 based on the Army decision to reschedule the initial
operational test and evaluation for this program.
Shortstop
 The budget request included no funds for the Shortstop
electronic protection system (SEPS).
 The House bill would authorize an increase of $9.0
million to procure 42 additional SEPS needed in Korea.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $6.0 million for SEPS
devices needed by U.S. forces in Korea.
Night vision
 The budget request included $85.3 million for night
vision systems.
 The House bill would authorize an increase of $30.8
million that would be used to procure additional systems: $17.0
million for AN/PVS-7 night vision goggle systems; $5.4 million
for ANVIS 25mm image intensifiers; and $8.4 million for night
vision driver viewers for the M113A3.
 The Senate amendment would authorize an increase of $36.0
million that would be used to procure additional night vision
systems: $8.0 million for AN/PEQ-2 aiming light systems; $17.0
million for AN/PVS-7 night vision goggle systems; $10.0 million
for AN/PAS-13 thermal weapon sight systems; and $1.0 million
for 2,900 borelights.
 The conferees agree to authorize an increase of $26.4
million for night vision equipment: $11.0 million for AN/PVS-7
systems; $5.5 million for AN/PEQ-2 aiming light systems; $6.9
million for AN/PAS-13 thermal weapon sights; $2.0 million for
light weight video systems; and $1.0 million for borelights.
LOGTECH
 The budget request included $3.4 million for LOGTECH
systems.
 The House bill would authorize an increase of $11.7
million to procure additional radio frequency (RF) tagging
systems.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $10.0
million for additional RF tagging equipment.
Maneuver control system
 The budget request included $15.7 million for the
maneuver control system (MCS).
 The House bill and Senate amendment would authorize the
budget request.
 The conferees note a history of significant problems with
the Army's efforts to develop the software requirements for
thisprogram and corresponding delays in scheduled operational
testing. The conferees also note that this system failed two of four
development testing activities. Until MCS meets all the established
system requirements and the Army validates corrective actions through
requisite testing, the conferees agree to eliminate further funding for
this program.
Automated data processing equipment
 The budget request included $125.1 million for Automated
Data Processing Equipment (ADPE).
 The House bill would authorize an increase of $13.0
million to procure additional Sustaining Base Information
Services (SBIS) hardware.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $7.0
million of SBIS hardware.
Railway car, flat, 100 ton
 The budget request included $17.8 million for procurement
of 100 ton railway cars.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to eliminate fiscal year 1998 funding
for procurement of railway cars. The conferees note that the
Army was able to take advantage of an unanticipated opportunity
to procure 86% of its rail car requirement in calendar year
1997.
Training devices, nonsystem
 The budget request included $49.7 million for nonsystem
training devices.
 The House bill would authorize an additional $4.0 million
for four fire training systems.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $4.0
million for four fire fighter training systems.
Close combat tactical trainers
 The budget request included $92.9 million for simulation
network close combat tactical trainers (CCTT).
 The House bill would authorize a decrease of $11.5
million due to the delay in initial operation test and
evaluation for the close combat tactical training systems.
 The Senate amendment would authorize a decrease of $10.0
million for procurement of training system components and would
authorize a transfer of an additional $11.5 million to PE
64780A to resolve software problems.
 The conferees agree to authorize a decrease of $38.4
million in procurement funding for the program. Included in
this reduction is the transfer of $10.5 million to PE 64780A.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $6,086.0 million for Aircraft Procurement,
Navy in the Department of Defense. The House bill would
authorize $6,173.0 million. The Senate amendment would
authorize $6,482.3 million. The conferees recommended an
authorization of $6,437.3 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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AV-8H Harrier remanufacture
 The budget request included $300.1 million to procure 11
AV-8B remanufactured aircraft for the Marine Corps. The fiscal
year 1997 plan for AV-8B remanufacture in fiscal year 1998
called for a procurement of 12 aircraft in fiscal year 1998.
However, the budget request for fiscal year 1998 included 11
aircraft, a further indication of the Department of Defense's
inability to execute its own previously stated procurement
program.
 The House bill would authorize an increase of $33.0
million for an additional aircraft.
 The Senate amendment would authorize an increase of $89.6
million, including $24.6 million for an additional aircraft
remanufacture and $65.0 million for training simulators.
 The conferees agree to authorize an increase of $6.2
million for an additional AV-8B remanufacture. The conferees
understand that an additional remanufacture can be funded with
this increase through program savings.
T-45TS Goshawk
 The budget request included $269.8 million for 12 T-45
trainer aircraft and $6.2 million for advance procurement of 12
T-45C aircraft in fiscal year 1999.
 The House bill would authorize an increase of $100.0
million for the procurement of six additional aircraft.
 The Senate amendment would authorize an increase of
$102.0 million for the same purpose.
 The conferees note with concern the recent grounding of
the T-2 trainers because of flight control malfunctions. The T-
2s are being replaced by the T-45. Accordingly, the conferees
agree to authorize $315.2 million, an increase of $45.4 million
to accelerate fielding of the T-45 by increasing the fiscal
year 1998 acquisition from 12 to 15 aircraft.
EA-6 Series
 The budget request included $86.8 million for EA-6B
modifications.
 The House bill would authorize an increase of $68.0
million, including $50.0 million for 10 wing center sections
(WCS) and $18.0 million to continue the turbine engine blade
containment system (TEBS).
 The Senate amendment would authorize an increase of $25.0
million to incorporate a low risk, affordable upgrade to the
EA-6B in conjunction with modifications already underway to
counter the new family of threats.
 The conferees agree to authorize an increase of $25.0
million to replace the WCS of 5 additional EA-6Bs. The increase
of $25.0 million for WCS is partially offset by a $10.0 million
reduction for late obligations, resulting in a net increase of
$15.0 million for EA-6B modifications. The conferees urge the
Secretary of the Navy to provide funds to complete the WCS
modifications in the fiscal year 1999 budget request.
P-3C anti-surface warfare improvement program
 The budget request included $164.9 million for P-3 series
modifications, $74.7 million of which is for the procurement of
four anti-surface warfare improvements program (AIP) kits, and
$41.3 million of which is for 11 sustained readiness program
(SRP) kits.
 The House bill would authorize an increase of $56.6
million for an additional eight AIP kits and an increase of
$35.1 million to procure 17 additional shipsets of SRP kits. In
addition, the House would authorize an increase of $11.0
million for light weight environmentally sealed parachute
assemblies (LESPA) and an increase of $1.4 million for oil
debris detection systems (ODDS).
 The Senate amendment would authorize an increase of $17.3
million for the procurement of two P-3C AIP kits and direct the
Secretary of the Navy to formally evaluate the advisability of
renegotiating the P-3C AIP contract to eliminate the cost
penalties that are being incurred as a consequence of current
Navy budgeting practices.
 The conferees agree to authorize the following increases
to the budget request: $25.0 million for sustained readiness
program (SRP) kits, $17.3 million for anti-surface warfare
improvement program (AIP) kits, and $8.0 million for light
weight environmentally sealed parachute assemblies.
Power plant changes
 The budget request included $14.0 million for power plant
changes.
 The House bill would authorize an increase of $1.6
million to incorporate the oil debris detection system (ODDS)
on the P-3, E-2 and C-2 fleets, with $1.4 million for the P-3
and $100,000 for the E-2 and C-2 fleets. The House bill would
apportion the increase each for ODDS in individual aircraft
modification accounts. The ODDS is an on-board detection system
that alerts air crews to the presence of metal chips in engines
and propeller gear boxes, allowing flights to be terminated
prior to catastrophic failure of critical components.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $1.6
million in the power plant changes budget line item for the
incorporation of ODDS in P-3, E-2, and C-2 fleets.
Common Avionics Changes
 The budget request included $131.6 million for common
avionics changes, but did not contain any funding to procure
AN/AWW-13 guided weapon control monitor sets. The AN/AWW-13
provides the data link capability for F/A-18 series aircraft to
employ the precision-guided Walleye and the Stand-off Land
Attack Missiles.
 The Senate amendment would authorize the budget request.
 The House bill would authorize an additional $9.0 million
to continue AN/AWW-13 production. The House bill would also
provide an additional $4.0 million in PE 64215N for integration
of the ground proximity warning system (GPWS) into the Navy/
Marine Corps helicopters fleets.
 The conferees agree to authorize $130.4 million, which
includes an additional $6.0 million to continue AN/AWW-13
production and $4.0 million for GPWS integration. These
increases are offset by a $10.0 million reduction for late
obligations and a $1.2 million reduction for systems
engineering growth in other programs funded in this budget
line.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $1,136.3 million for Weapons Procurement, Navy
in the Department of Defense. The House bill would authorize
$1,214.7 million. The Senate amendment would authorize $1,200.4
million. The conferees recommended an authorization of $1,089.4
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.
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Tactical Tomahawk

 The Department of the Navy and the Department of Defense
advised the conferees of a proposal by the current prime
Tomahawk contractor to upgrade the capability and reduce the
production unit cost of the Tomahawk cruise missile. The
upgraded missile, a variant of the current Tomahawk (known as
``Tactical Tomahawk'' or the ``Tomahawk Block IV+''), would
include several enhancements to improve the tactical
responsiveness of the missile. The Navy and the contractor
would attempt to reduce Tomahawk missile unit cost by
exploiting commercial manufacturing practices for the missile.
Overall, the Navy is projecting that the Department could
achieve life cycle cost savings for the Tactical Tomahawk of
approximately $400.0 million, compared to similar costs for the
currently planned Tomahawk Block IV missile system. The
conferees also understand that the initial operational
capability (IOC), fiscal year 2002, for the improved Tomahawk
would be approximately two years later than the IOC for
Tomahawk Block IV, fiscal year 2000.
 Under the Navy's proposal, the Department would use
approximately $25.0 million in additional fiscal year 1998
research and development and other procurement funding to begin
the effort. The conferees understand that the Department wants
to implement such a program as early as possible in fiscal year
1998. In fact, the Navy had asked the conferees for the
authority to divert these funds from the Weapons Procurement,
Navy account by terminating the last year of the multi-year
contract for procurement of the Tomahawk Block III missile.
 In general, the conferees support the concept of a
program to upgrade the capabilities of the Tomahawk missile and
to reduce the missile's unit cost. However, there are
acquisition strategy and funding issues that must be addressed
before the conferees would agree to such a proposal. Such
questions include whether: (1) this program should be a sole
source award to the current prime contractor; (2) the Navy and
whichever prime contractor may be selected for such a program
should evaluate subsystem alternatives such as engines on a
``least cost'' or ``best value'' basis; and (3) buying the last
increment of missiles on the current contract is less important
than beginning a new program earlier.
 If the Secretary of Defense decides that starting the
program in fiscal year 1998 is critical, the Secretary of
Defense may submit a reprogramming request to transfer fiscal
year 1998 funds that would be necessary to implement an
alternative approach for the Tomahawk program. The conferees
expect that such a request would include more detailed
supporting rationale upon which the recommendation is based and
would address the acquisition strategy and funding issues
involved.

Joint Standoff Weapon

 The budget request included $58.7 million for 113 Joint
Standoff Weapon (JSOW) missiles for the Navy. No funds were
requested to procure JSOW missiles for the Air Force until
fiscal year 1999.
 The House bill would authorize an increase of $10.0
million for the Navy to procure 37 additional missiles and an
increase of $29.0 million for the Air Force to initiate
procurement of 100 missiles.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $5.0
million for the Navy to procure a total of up to 150 JSOW, and
an increase of $19.0 million for the Air Force to initiate
acquisition of up to 100 JSOW.
Penguin missile program
 The budget request included no funds for procurement of
Penguin missiles.
 The House bill would approve the request.
 The Senate amendment would authorize an increase of $15.0
million for procurement of additional missiles to satisfy
outstanding inventory objectives and sustain procurement of the
Penguin missile during fiscal year 1998 to reduce costs by
achieving labor learning and production stability.
 The conferees agree to authorize an increase of $7.5
million for procurement of Penguin missiles.
Hellfire II missiles
 The budget request included no funds for Hellfire
missiles for the Navy or Marine Corps.
 The House bill would authorize $37.5 million for 700
Hellfire II missiles to address a shortfall in Navy and Marine
Corps inventory requirements.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $20.0 million for
procurement of Hellfire II missiles for the Navy and Marine
Corps.
Close-in weapon system surface mode upgrade
 The budget request included $10.0 million for procurement
of close-in weapon system (CIWS), but did not include any
funding to procure surface mode upgrade kits for this system.
 The House bill would authorize an increase of $20.0
million to procure CIWS upgrade kits for both surface
combatants and other ships equipped with this system.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $15.0
million for procurement of CIWS surface-mode upgrade kits.
Pioneer logistic support
 The budget request included $4.0 million for support of
Pioneer unmanned aerial vehicle (UAV).
 The Senate amendment would authorize an increase of $3.0
million to continue common automatic recovery system (CARS)
logistic support in the Procurement, Defense-Wide account.
 The House bill would authorize the budget request.
 The conferees agree to authorize an increase of $3.0
million for logistic support in the Weapons Procurement, Navy
Pioneer budget line item.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $5,817.8 million for Aircraft Procurement, Air
Force in the Department of Defense. The House bill would
authorize $6,770.9 million. The Senate amendment would
authorize $6,048.9 million. The conferees recommended an
authorization of $6,425.7 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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F-15E
 The budget request included $159.0 million to continue
the procurement of F-15E strike aircraft.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of
$100.8 million for procurement of an additional three F-15E
aircraft.
 The conferees agree to authorize an increase of $67.3
million to procure an additional two F-15E aircraft.
C-130J
 The budget request included $49.9 million for the
procurement of one C-130J aircraft.
 The House bill would authorize an increase of $522.6
million for an additional nine aircraft.
 The Senate amendment would authorize an increase of
$371.1 million for five additional aircraft and associated
logistic support.
 The conferees agree to authorize a total of $527.5
million for eight additional C-130J aircraft and support as
shown below:

 C-130 PROGRAMS
 [Dollars in millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
 Budget request House bill Senate bill Conference agreement
 Type ---------------------------------------------------------------------------------------
 Quantity Amount Quantity Amount Quantity Amount Quantity Amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
KC-130J......................................................... ......... ......... +3 +179.7 ......... ......... +2 +120.0
WC-130J......................................................... ......... ......... ......... ......... +3 +177.0 +2 +132.8
EC-130J......................................................... ......... ......... +1 +49.9 +1 +70.5 +1 +74.6
C-130J.......................................................... 1 49.9 +5 +293.0 -1 -49.9 -1 -49.9
C-130J ANG...................................................... ......... ......... ......... ......... +2 +95.8 +4 +226.0
 Logistics:
 WC-130J..................................................... ......... ......... ......... ......... ......... +29.7 ......... .........
 C-130J...................................................... ......... ......... ......... ......... ......... +48.0 ......... +24.0
 ---------------------------------------------------------------------------------------
 Total..................................................... 1 49.9 +9 +522.6 +5 +371.1 +8 +527.5
--------------------------------------------------------------------------------------------------------------------------------------------------------

Predator Unmanned Aerial Vehicle
 The budget request included $116.5 million for 15
Predator unmanned aerial vehicles (UAV).
 The House bill would authorize an increase of $30.0
million for the procurement of attrition UAV and spares.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $25.0
million.
F-15 modifications
 The budget request included $169.6 million for F-15
modifications.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $95.4
million, including $72.6 million to restore a reduction in F-15
modifications made by the Air Force in its budget request, and
$22.8 million to accelerate by one year the incorporation of
the PW-220E engine program.
 The conferees agree to authorize $181.4 million: an
increase of $11.8 million, for F-15 modifications; a decrease
of $5.0 million for terminated upgrades; an increase of $12.8
million for the PW-220E engine program; and an increase of $4.0
million for data link acceleration.
F-16 modifications
 The budget request included $216.2 million for F-16
modifications.
 The House bill would authorize an increase of $20.0
million for a digital terrain system (DTS).
 The Senate amendment would authorize an increase of $8.6
million to procure non-developmental item (NDI) systems that
incorporate in one pod the targeting and navigation functions
of the low-altitude navigation and targeting infrared for night
(LANTIRN) pods.
 The conferees agree to authorize $209.2 million for F-16
modifications, a decrease of $7.0 million from the budget
request. The $7.0 million reduction is the result of a
reduction of $13.0 million for global positioning system (GPS),
a reduction of $6.0 million for late obligations, offset by an
increase of $12.0 million for DTS.
Passenger safety and global air traffic management
 Although the budget request included funds to modify
some Air Force aircraft to comply with global air traffic
management (GATM) requirements, there was no specific request
for either GATM or passenger safety modifications for Air Force
aircraft.
 The House bill would authorize an increase of $67.7
million for GATM, but no increase for passenger safety
modifications.
 The Senate amendment would authorize the budget request.
The Senate report (S. Rept. 105-29) included specific direction
to the Secretary of Defense to encourage the use of commercial
off-the-shelf (COTS) technology and non-developmental item
(NDI) solutions to GATMrequirements.
 The conferees agree to authorize an increase of $17.5
million for the modification of Air Force aircraft to comply
with GATM requirements, and $32.5 million for passenger safety
modifications, to include initiation of navigation safety phase
II modifications, the traffic collision avoidance system
(TCAS), and the ground proximity warning system (GPWS), as
directed by the Secretary of Defense. The conferees expect the
Air Force to include in the fiscal year 1999 budget request and
the Future Years Defense Program (FYDP) sufficient funding to
complete these required upgrades.
Defense Airborne Reconnaissance Program
 Procurement for the Defense Airborne Reconnaissance
Program (DARP) is contained in a number of procurement lines,
distributed among the individual services and the defense-wide
procurement account. The budget request included:
 (1) $67.1 million in Aircraft Procurement, Air
 Force (APAF) line 60;
 (2) $141.5 million in APAF, line 73;
 (3) $12.8 million in Other Procurement, Air Force
 (OPAF), line 111; and
 (4) $97.5 million in Procurement, Defense-wide
 (PDW), line 7.
 The conferees agree to authorize increases in DARP
procurement as shown below:

 DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS
 [In millions of dollars]
------------------------------------------------------------------------
 Proposed change
 Program Budget -------------------- Conference
 request House Senate agreement
------------------------------------------------------------------------
Rivet Joint mods.............. 61.1 ........ ........ 61.1
Rivet Joint technology
 transfer..................... ........ 20.0 20.0 5.6
Combat Sent mods.............. 6.0 ........ ........ 6.0
RC-135 re-engining............ ........ 52.0 ........ 27.4
RJ Sensors and spares......... ........ ........ ........ 35.0
SR-71 mods.................... ........ ........ 9.0 9.0
 -----------------------------------------
 Subtotal--APAF 60....... 67.1 72.0 29.0 144.1
 =========================================
Budget Request................ 141.5 ........ ........ 141.5
RC-135 re-engining............ ........ ........ 54.8 0
Senior Glass.................. ........ ........ 13.0 24.0
SYERS......................... ........ 5.0 ........ 5.0
 -----------------------------------------
 Subtotal--APAF 73....... 141.5 5.0 67.8 170.5
 =========================================
DARP RC 135................... 12.8 ........ ........ 12.8
RJ Sensors and spares......... ........ 35.0 ........ ..........
 -----------------------------------------
 Subtotal--OPAF 111...... 12.8 35.0 ........ 12.8
 =========================================
DARP.......................... 97.4 ........ ........ 97.4
Common automatic recovery
 system....................... ........ ........ 5.0 ..........
 -----------------------------------------
 Subtotal--PDW 7......... 97.4 ........ 5.0 97.4
------------------------------------------------------------------------

Theater airborne warning system
 The budget request included no funds for the Theater
Airborne Warning System (TAWS) program, which is designed to
equip the existing fleet of Rivet Joint aircraft with a medium-
wave infrared sensor for ballistic missile detection.
 The House bill and Senate amendment would authorize an
increase of $20.0 million for the TAWS program.
 The conferees agree to authorize an increase of $5.6
million for the demonstration phase of the TAWS program. If
this phase of the program proves to be successful, the
conferees would be supportive of moving into the procurement
phase in order to equip the Rivet Joint fleet with this
capability.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $404.0 million for Ammunition Procurement, Air
Force in the Department of Defense. The House bill would
authorize $437.0 million. The Senate amendment would authorize
$420.8 million. The conferees recommended an authorization of
$398.5 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.
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Overview

 The budget request for fiscal year 1998 contained an
authorization of $2,557.7 million for Missile Procurement, Air
Force in the Department of Defense. The House bill would
authorize $2,389.2 million. The Senate amendment would
authorize $2,411.2 million. The conferees recommended an
authorization of $2,376.3 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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AGM-130 powered GBU-15

 The budget request included $1.5 million for AGM-130
management, administration, and contractor support.
 The House bill would authorize an increase of $41.0 million
for the procurement of 100 AGM-130 missiles.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $25.0 million, an increase
of $23.5 million for AGM-130.

AGM-65 Maverick

 The budget request included no funds for AGM-65
modifications.
 The House bill would authorize $11.0 million for AGM-65
modifications.
 The Senate amendment would authorize the budget request.
 The conferees understand that early-generation models of
the AGM-65 require upgrading to further extend their longevity.
The conferees are aware that the gap between the completion of
testing and the beginning of production could significantly
increase the cost of the upgrade, as well as unacceptably delay
its fielding. Therefore, the conferees agree to authorize an
increase of $8.0 million to eliminate any gap with low-rate
production and to ensure a smooth transition to full-rate
production, which the conferees assume will occur in fiscal
year 1999.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $6,561.3 million for Other Procurement, Air
Force in the Department of Defense. The House bill would
authorize $6,574.1 million. The Senate amendment would
authorize $6,798.5 million. The conferees recommended an
authorization of $6,543.6 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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Theater deployable communications

 The budget request included $17.0 million for the
procurement of tactical communications and electronics
equipment.
 The House bill would authorize an increase of $25.0
million for theater deployable communications equipment as part
of its National Guard and Reserve Equipment package.
 The Senate amendment would authorize an increase of $38.0
million for theater deployable communications equipment.
 The conferees agree to authorize an increase of $18.0
million for procurement of theater deployable communications
equipment.

Overview

 The budget request for fiscal year 1998 contained an
authorization of $1,695.1 million for Defense-wide Procurement
in the Department of Defense. The House bill would authorize
$1,837.0 million. The Senate amendment would authorize $1,749.3
million. The conferees recommended an authorization of $2,057.2
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.
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Automated document conversion system
 The budget request included no funds for the automated
document conversion system (ADCS).
 The House bill would authorize $30.0 million for ADCS.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $20.0 million for ADCS.
Advanced SEAL delivery system
 The budget request included $43.2 million for the special
operations Advanced SEAL Delivery System program.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to a total authorization of $8.9
million and the transfer of $34.3 million to PE 116404BB, as
discussed in Title II of this conference agreement.
Night firing scopes
 The budget request included $10.3 million for special
operations small arms procurement.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $2.4
million for night vision scopes for the M4 carbine.
 The conferees agree to authorize an increase of $1.0
million for night vision scopes.
Overview
 The budget request for fiscal year 1998 contained no
authorization for National Guard and Reserve Procurement in the
Department of Defense. The House bill would authorize $700.4
million. The Senate amendment would authorize $653.0 million.
The conferees recommended an authorization of $643.0 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

Overview

 The conferees recognize the increasingly critical role
that reserve component forces play in worldwide deployments and
are concerned about current and prior year levels of funding
for reserve component modernization. It is essential that both
active and reserve component leadership work together to
identify total force modernization requirements and ensure that
these requirements are funded. The conferees strongly encourage
the Department of Defense to work closely with each of the
military departments to ensure the modernization of the reserve
components.
 The budget request included $968.5 million, as shown in
the table below, for National Guard and Reserve equipment.

National Guard and Reserve Equipment and Aircraft

 Millions
Procurement of WTCV, Army......................................... $22.1
Procurement of Ammunition, Army................................... 143.8
Other Procurement, Army........................................... 382.9
Aircraft Procurement, Navy........................................ 35.1
Procurement of Ammunition (Navy & Marine Corps)................... 6.0
Other Procurement, Navy........................................... 3.9
Procurement, Marine Corps......................................... 17.9
Aircraft Procurement, Air Force................................... 238.2
Procurement of Ammunition, Air Force.............................. 29.5
Other Procurement, Air Force...................................... 89.2
 -----------------------------------------------------------------
 ________________________________________________
 Department of Defense total............................... 968.5

 The conferees agree to authorize funding increases for
reserve component programs as follows:

 Millions
UH-60 Blackhawk................................................... $89.0
M109A6 Paladin.................................................... 56.0
Field Artillery Ammunition Support Vehicles....................... 40.0
Heavy Equipment Transporter vehicles.............................. 45.0
Bradley Fighting Vehicle upgrades................................. 95.0
Theater Deployable Communications................................. 18.0
Airborne Mine Counter-Measure equipment........................... 7.5
KC-135 re-engining................................................ 52.0
F-16 Improved Avionics Intermediate Shop.......................... 16.0
C-130 aircraft.................................................... 433.4
 -----------------------------------------------------------------
 ________________________________________________
 Total increase.............................................. 851.9

 Additionally, the conferees agree to authorize an
increase of $365.0 million to the budget request for National
Guard and Reserve miscellaneous equipment:

 Millions
Army Reserve
 Miscellaneous................................................. $75.0
Navy Reserve
 Miscellaneous................................................. 80.0
Marine Corps Reserve
 Miscellaneous................................................. 65.0
Air Force Reserve
 Miscellaneous................................................. 50.0
Army National Guard
 Miscellaneous................................................. 70.0
Air National Guard
 Miscellaneous................................................. 25.0
 -----------------------------------------------------------------
 ________________________________________________
 Total Miscellaneous equipment............................. 365.0

 The conferees direct that the miscellaneous funding be
allocated exclusively by reserve component chiefs and that
reserve component chiefs give priority consideration to the
following items: medium truck extended service programs;
carrier modifications; CH-47 helicopters; multiple launch
rocket systems; Avenger air defense systems (including table
top trainers); training simulator devices; night vision
equipment; mobile backscatter truck inspection system; heavy
expanded mobility tactical truck (HEMTT) wrecker; HEMTT fuel
tanker conversion kit; all terrain crane (20 ton); Atlas 10K
variable reach forklift; barge derrick; reverse osmosis water
purification unit, 3 thousand gallons per hour; 5KW generator
set; MK-19 grenade machine gun; F/A-18 modifications; C-9
replacement aircraft; SH-60B Seahawk helicopter; mobile inshore
underwater van upgrades; logistics vehicle system (LVS); MK 48
front power unit; LVS rear body units; F/A-18+ modifications;
CH-53E helicopters; F-16 situational awareness data link; F-16
laser designator/targeting pods; A-10 situational awareness
data link; A-10 electronic warfare management system; F-16
upgraded data transfer unit; HH-60 helicopter self protection
system; F-16 electronic warfare management system; ALQ-131
multiplexer bus interface; C-130 integrated electronic warfare
suite; enhanced flightline security systems; combat arms
training equipment; C-5 simulator; vibration management
enhancement program; 5 ton truck; maneuver control system; CH-
47D full authority digital engine control; small arms
engagement skills trainers; CH-47D fuel cells; M917 dump
trucks; B-1 enhancements; F-16/A-10 digital transfer cartridge;
and F-16 C/D onboard oxygen generating system.
 Funding allocated by reserve component chiefs for
miscellaneous equipment must meet the following criteria:
 (1) there is a requirement for the equipment that
 has been validated by the Joint Requirements Oversight
 Council;
 (2) that such equipment is included for reserve
 component modernization in the future-years defense
 program;
 (3) that such equipment is consistent with the use
 of reserve component forces called for in Department
 warplans; and
 (4) the funds can be obligated during the fiscal
 year for which funds have been authorized and
 appropriated.
 Overall, the conferees agree to authorize a total of $2.2
billion for National Guard and Reserve equipment and aircraft.

Overview

 The budget request for fiscal year 1998 contained an
authorization of $620.7 million for Chemical Agent and
Munitions Destruction, Army in the Department of Defense. The
House bill would authorize $610.7 million. The Senate amendment
would authorize $614.7 million. The conferees recommended an
authorization of $600.7 million. Unless noted explicitly in the
statement of managers, all changes are made without prejudice.
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 Legislative Provisions Adopted

 Subtitle A--Authorization of Appropriations

Chemical agents and munitions destruction program (sec. 107)

 The budget request included $620.7 million for the
defense chemical agents and munitions destruction program, to
include: $472.2 million for operation and maintenance; $82.2
million for procurement; and $66.3 million for research and
development. Additionally, the budget request included $131.6
million for military construction.
 The House bill contained a provision (sec. 107) that
would authorize $610.7 million for the chemical agents and
munitions destruction program.
 The Senate amendment contained a provision (sec. 107)
that would authorize $614.7 million for the chemical agents and
munitions destruction program, including an increase of $4.0
million for research and development to expedite and accelerate
the development and fielding of critical advanced sensors that
are part of the Army's mobile munitions assessment system.
 The Senate recedes with an amendment.
 The conferees agree to a provision (sec. 107) that would
authorize $600.7 million for the defense chemical agents and
munitions destruction program, to include: $72.2 million for
procurement; $462.2 million for operation and maintenance; and
$66.3 million for research and development. Of the amount
authorized for research and development, $4.0 million shall be
available to expedite and accelerate the development and
fielding of critical advanced sensors that are part of the
Army's mobile munitions assessment system.

Conduct of the chemical agents and munitions destruction program

 Section 152 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106), directed the Secretary
of Defense to conduct an assessment of the chemical stockpile
disposal program and to consider measures that could be taken
to reduce program costs, while continuing to ensure the maximum
protection of the public, the workers, and the environment.
Section 152 also required the Secretary to report the results
of the assessment to the Congress with the submission of the
fiscal year 1998 defense budget request. Consideration of the
use of alternative demilitarization technologies (other than
incineration) was to be specifically addressed.
 The conferees support the Department of Defense (DOD)
position and the National Research Council recommendation that
the Army proceed with the current baseline incineration program
until the evaluation of alternative chemical munitions
destruction technologies is concluded. The conferees note the
progress made in chemical demilitarization operations at
Johnston Atoll and Tooele, Utah, the approval of environmental
permits, and the award of the chemical demilitarization
facility construction contract at Umatilla, Oregon, and the
status of the environmental permitting process for the chemical
demilitarization sites at Anniston, Alabama, and Pine Bluff
Arsenal, Arkansas.
 The conferees support the Department's decision to
continue efforts to develop chemical neutralization
technologies for destruction of the chemical agents at the
bulk-only chemical storage sites. The conferees urge the
appropriate and expeditious pursuit of any necessary National
Environmental Policy Act (NEPA) analysis of the research and
development efforts to support pilot testing of these
alternative technologies for use at Aberdeen Proving Ground,
Maryland, and Newport Chemical Depot, Indiana.
 The conferees also agree with plans by the Department to
assess the feasibility of alternative technologies for
destruction of lethal chemical agents associated with assembled
chemical munitions and would support the demonstration of those
alternatives deemed feasible for potential use at the chemical
demilitarization sites at Pueblo, Colorado, and Lexington-Blue
Grass Army Depot, Kentucky. As required by Section 142 of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201), the conferees expect the Secretary of Defense to
submit a report to the Congress by December 31, 1997, that
identifies the status of the assessment, the technologies that
appear to be feasible, the plans for further assessment and
demonstration of these technologies, and the potential impact
on the cost and schedule for completion of destruction
operations at Pueblo and Lexington-Blue Grass.
 The conferees understand that a major aspect of the
chemical non-stockpile materiel project is the development of a
system for disposal of the chemical agent identification kits,
which have been classified as chemical weapons/agents for the
purpose of the chemical disposal program, rather than hazardous
waste. The conferees direct the Secretary of Defense to conduct
an assessment of its policy, which includes chemical agent
identification kits in the chemical agent demilitarization
program, the current plans for disposal, and the potential
changes in policy and disposal alternatives that could result
in significant reductions in the cost of the non-stockpile
program with no reduction in overall program safety. The
assessment shall be conducted in coordination with the National
Research Council. The results of the assessment and the
Secretary's decision should be provided to the congressional
defense committees by March 31, 1998.

Chemical stockpile emergency preparedness program (CSEPP)

 The conferees note the actions taken by the DOD and the
Army to improve management of the chemical weapons
demilitarization program and to make the program more
responsive to community concerns. The conferees believe that
the Army and the DOD must continue to emphasize the involvement
of the communities with chemical stockpile storage sites that
are part of the program's decision-making process. The
conferees also note progress in improving emergency
preparedness planning and preparations by both states and local
communities near the chemical stockpile storage sites, but
believe that continued effort is required.
 Section 1076(a) of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201) directed the
Secretary of the Army to submit a report to the Congress that
would assess the successful implementation of site specific
integrated product and process teams (IPT) as a management tool
for the chemical stockpile emergency preparedness program
(CSEPP). On July 9, 1997, the Secretary of Defense advised the
Congress that the Army and the Federal Emergency Management
Agency (FEMA) had reached an agreement on the implementation
and establishment of the site-specific IPTs, and advised the
Congress of changes in the management of the CSEPP. The
conferees understand that under the terms of the agreement
between the Army and FEMA, the State and local community
governments would be given the flexibility they need to
implement the emergency preparedness program. Under the
agreement, funding for, and the conduct of on-post emergency
preparedness and technical support for on-post and off-post
emergency preparedness will remain the responsibility of the
Army. FEMA will assume responsibility and accountability for
working with State and local governments to enhance the
required off-site emergency preparedness capabilities within
established resources. The conferees are aware that the
Director of FEMA intends to empower the FEMA regional offices
with the primary responsibility and accountability for working
with the State and local communities, and to restructure FEMA
headquarters operations to create a more efficient and cost-
effective management structure.
 The conferees understand that the Army and FEMA believe
that legislative authority is necessary to codify the agreement
between the Army and FEMA. The conferees note that FEMA already
possesses considerable authority for off-site emergency
preparedness under existing law and that the fiscal year 1998
budget contained no formal proposal to establish a separate
defense-related activities program account for FEMA. The
conferees direct the Secretary of Defense to submit any
proposed legislative changes and the budget for the CSEPP in
the fiscal year 1999 DOD budget request. The congressional
defense committees will review any proposed legislation and the
budget request for CSEPP during consideration of the fiscal
year 1999 budget request, as well as progress made in emergency
preparedness, the implementation of the site-specific IPT, and
the working relationships among Federal, State, and local
authorities involved in the CSEPP.

 Subtitle B--Army Programs

Army helicopter modernization plan (sec. 111)

 The Senate amendment contained a provision (sec. 111)
that would require the Army to provide a plan to the Congress
that would address current and future helicopter modernization
requirements and proposed funding. Specifically, the provision
would require the Army to report on the following:
 (1) A detailed assessment of the Army's present and
 future helicopter inventory, including number of
 aircraft, age of aircraft, availability of spare parts,
 flight hour costs, roles and functions assigned to the
 fleet as a whole and to its individual types of
 aircraft, and the mix of active component and reserve
 component aircraft in the fleet;
 (2) Estimates and analysis of requirements and
 funding proposed for procurement of new aircraft;
 (3) An analysis of requirements and funding
 proposed for extended service plans or service life
 extension plans for fleet aircraft;
 (4) A plan for retiring aircraft no longer required
 or capable of performing assigned functions, including
 a discussion of opportunities to eliminate older
 aircraft models and to focus future funding on current
 or future generation aircraft;
 (5) The implications of the plan for the defense
 industrial base;
 The provision would require the Secretary of the Army to
certify that the plan would be funded in the Future Years
Defense Program submitted to Congress in Fiscal Year 1998 and
would limit the obligation of funds to no more than 25 percent
of the amounts authorized to be appropriated for helicopter
modifications or upgrades until 30 days after the aircraft
modernization plan is provided to the congressional defense
committees.
 The House bill contained no similar provision.
 The House recedes with an amendment that would limit the
obligation of funds to 80 percent of funds authorized for
helicopter modifications and would require the Secretary of the
Army to design the plan so that it could be funded within the
funding levels expected to be available for Army aircraft
programs in the next Future Years Defense Program.

Multiyear procurement authority for specified Army programs (sec. 112)

 The Senate amendment contained a provision (sec. 112)
that would authorize the Secretary of the Army to enter into a
multiyear procurement contract, beginning with fiscal year
1998, for the procurement of the AH-64D fire control radar
system. The Senate amendment contained an additional provision
(sec. 113) that would authorize the Secretary of the Army to
enter into a multiyear procurement contract, beginning with
fiscal year 1998, for the procurement of trucks associated with
the family of medium tactical wheeled vehicles.
 The House bill contained no similar provisions.
 The House recedes.

M113 vehicle modifications (sec. 113)

 The conferees agree to a legislative provision (sec. 113)
that would make available $35.2 million only for procurement
and installation of A3 upgrade kits for the M113 vehicle.

 Subtitle C--Navy Programs

New Attack Submarine program (sec. 121)

 The budget request included $284.8 million for advance
procurement of components for future nuclear attack submarines,
and proposed a change in the acquisition strategy contained in
the National Defense Authorization Act for Fiscal Year 1997
that directed competition between two submarine shipbuilders.
The proposed change in strategy includes a contractor teaming
agreement to build the first four new attack submarines.
 The House bill authorized the budget request and
contained no provision on submarine teaming.
 The Senate amendment contained a provision (sec. 121)
that would authorize the Secretary of the Navy to enter into a
contract or contracts for the construction of four nuclear
attack submarines under the terms of a teaming arrangement
between Electric Boat and Newport News Shipbuilding.
 The House recedes.

CVN-77 Nuclear Aircraft Carrier program (sec. 122)

 The budget request included no funding for CVN-77.
 The House bill would authorize the budget request.
 The Senate amendment contained a provision (sec. 122)
that would:
 (1) authorize $345.0 million for procurement and
 construction of components for the CVN-77 aircraft
 carrier and authorize the Secretary of the Navy to
 enter into a contract or contracts with the carrier
 shipbuilder for such purposes;
 (2) authorize $35.0 million for research,
 development, test, and evaluation of technologies that
 have potential for use in the CVN-77; and
 (3) direct the Secretary to structure the
 procurement of the CVN-77 so that the carrier is
 acquired for an amount not to exceed $4.6 billion, with
 allowances for adjustments to this amount due to:
 (a) outfitting and post delivery costs,
 (b) inflation occurring after or compliance
 with changes in Federal, state, or local laws
 enacted after September 30, 1997,
 (c) increases or decreases in costs
 attributable to new technology built into CVN-
 77 as compared to the technology built into the
 baseline design of the CVN-76, and
 (d) increases or decreases in costs
 resulting from changes the Secretary proposes
 in the funding plan of the so-called Smart Buy
 proposal on which the projected savings are
 based.
 The House recedes with an amendment which would:
 (1) authorize the Secretary of the Navy to procure
 the CVN-77 subject to the availability of
 appropriations for that purpose;
 (2) authorize $50.0 million for advance procurement
 and advance construction of components for the CVN-77
 and authorize the Secretary of the Navy to enter into a
 contract or contracts for such purposes;
 (3) permit the Secretary of Defense to transfer up
 to $295.0 million to the CVN-77 program and allow this
 transfer to be made in addition to the transfer
 authority limit provided for elsewhere in the National
 Defense Authorization Act for Fiscal Year 1998;
 (4) direct the Secretary of the Navy to obligate
 and expend the funds available for advance procurement
 and advance construction of carrier components for the
 CVN-77 in fiscal year 1998 in a manner that is designed
 to result in cost savings that will meet a cost
 limitation of $4.6 billion for the procurement of that
 vessel;
 (5) direct the Secretary of Defense to make plans
 to attain the cost savings in the funding plan
 presented to Congress by the ship builder in March
 1997; and
 (6) direct the Secretary of the Navy to structure
 and manage the CVN-77 procurement program so that the
 $4.6 billion cost limitation is not exceeded, except
 for adjustments to this amount resulting from:
 (a) outfitting and post delivery costs,
 (b) inflation occurring after or compliance
 with changes in Federal, state, or local laws
 enacted after September 30, 1997,
 (c) increases or decreases in costs
 attributable to new technology built into CVN-
 77 as compared to the technology built into the
 baseline design of the CVN-76, and
 (d) increases or decreases in costs
 resulting from changes the Secretary proposes
 in the funding plan on which the projected
 savings are based.
 The conferees support construction of the CVN-77 and
believe that initiating advance procurement for it in fiscal
year 1998, rather than in fiscal year 2000 as currently
projected in the Future Years Defense Program (FYDP), has the
potential to produce considerable savings if additional funds
are provided in fiscal years 1998 through 2001. Therefore, the
conferees strongly encourage the Secretary of Defense to make
available up to $295.0 million in fiscal year 1998 and to
include in the FYDP accompanying the fiscal year 1999 budget
request the funding necessary to achieve the savings required
to remain within the $4.6 billion cost limitation.

Exclusion from cost limitation for Seawolf submarine program (sec. 123)

 The Senate amendment contained a provision (sec. 123)
that would reaffirm the existing cost cap for Seawolf
submarines but would make it clear that certain costs
associated with now canceled Seawolf submarines should not be
taken into account.
 The House bill contained no similar provision.
 The House recedes with an amendment that would exclude
from the cost limitation for the Seawolf submarine program
$272.4 million initial class design costs that were previously
allocated to other canceled ships in the class. The amendment
would also require the Inspector General of the Department of
Defense to determine whether:
 (1) the request of the Secretary of the Navy for
 exclusion of $745.4 million of the costs associated
 with canceled submarines is justified; and
 (2) any further exclusions from or increases to the
 cost cap will be required.
 The Inspector General shall report the findings to the
Committee on Armed Services of the Senate and the Committee on
National Security of the House of Representatives not later
than March 30, 1998.

 Subtitle D--Air Force Programs

Authorization for B-2 bomber program (sec. 131)

 The budget request included $174.1 million for
modification of aircraft on order or already in the inventory
to the Block 30 configuration.
 The House bill would authorize an increase of $331.2
million for long lead funding for an additional nine aircraft
above the 21 already authorized.
 The Senate amendment would authorize the budget request
and included a provision (sec. 131) that would prohibit the use
of any funds to procure any additional B-2 bomber aircraft or
to maintain any part of bomber industrial base solely for the
purpose of preserving the option to procure additional B-2
bomber aircraft in the future.
 The Senate recedes with an amendment.
 The conferees agree to authorize $331.2 million to be
used either for long lead activities related to the procurement
of additional B-2 aircraft, or for modification and repair of
the existing fleet of B-2 bomber aircraft, depending on the
President's determination of the requirement for additional B-2
aircraft.
 The provision would also direct the Secretary of Defense
to ensure that all appropriate actions are taken to preserve
the options of the President until submission of the report
required by section 8131 of the Department of Defense
Appropriations Act for fiscal year 1998.

ALR radar warning receivers (sec. 132)

 The Senate amendment contained a provision (sec. 132)
that would require a study of the comparative effectiveness of
upgrading the ALR-69 radar warning receiver and further
acquisition of the ALR-56M radar warning receiver.
 The House bill contained no similar provision.
 The House recedes.

Analysis of requirements for replacement of engines on military
 aircraft derived from Boeing 707 aircraft (sec. 133)

 The Senate amendment contained a provision (sec. 142)
that would require a study of re-engining priorities, options,
and benefits for military aircraft derived from Boeing 707 type
aircraft.
 The House bill contained no similar provision.
 The House recedes with an amendment that would clarify
the requirements for the study.

 Subtitle E--Other Matters

Pilot program on sales of manufactured articles and services of certain
 army industrial facilities without regard to availability from
 domestic sources (sec. 141)

 The Senate amendment contained a provision (sec. 143)
that would authorize Army industrial facilities to sell
articles or services to an entity that will incorporate those
articles or services into a weapon system to be procured by the
Department of Defense or will use those articles or services to
manufacture weapon systems that will be ultimately procured by
the Department of Defense.
 The House bill contained no similar provision.
 The House recedes with an amendment that would authorize
a two-year pilot program for not more than three facilities and
require a review by the Inspector General of the Department of
Defense.

NATO Joint Surveillance/Target Attack Radar System (sec. 142)

 The Senate amendment contained a provision (sec. 144)
that would allow the Secretary of Defense to initiate contracts
for Phase I of a NATO Alliance Ground Surveillance (NATO AGS)
capability based on the Joint Surveillance/Target Attack Radar
System (JSTARS) following the conclusion of a cooperative
project agreement for a NATO AGS. The Senate amendment would
also authorize the transfer of funds from U.S. JSTARS to the
NATO AGS program, and would allow for the modification of two
Air Force JSTARS aircraft into a NATO configuration.
 The House bill contained no similar provision.
 The House recedes.

 Legislative Provisions Not Adopted

Limitation on obligation of funds for the Seawolf submarine program

 The House bill contained a provision (sec. 121) that
would prohibit the obligation of more than 50 percent of the
fiscal year 1998 funds authorized and appropriated for the
Seawolf submarine until the Secretary of the Navy certifies
that not less than 50 percent of the New Attack Submarine
technology insertion opportunities for the first four
submarines were included in the Future Years Defense Program
accompanying the fiscal year 1999 budget request.
 The Senate amendment contained no similar provision.
 Having received written assurance from the Secretary that
the fiscal year 1999 budget request will comply with the
provision in the House bill, the House recedes.

Reduction in authorization of appropriations

 The Senate amendment contained a provision (sec. 110)
that would reduce funds available to the Department of Defense
for Advisory and Assistance Services by $30.0 million.
 The House bill contained no similar provision.
 The Senate recedes.

Airborne self-protection jammer

 The Senate amendment contained a provision (sec. 124)
that would place a limitation on the resumption of serial
production of the Airborne Self-Protection Jammer, pending a
certification by the Secretary of Defense.
 The House bill contained no similar provision.
 The Senate recedes.

Prohibition on use of funds for acquisition or alteration of private
 drydocks

 The Senate amendment contained a provision (sec. 141)
that would prevent the use of DOD funds for the expansion of
private drydocks.
 The House bill contained no similar provision.
 The Senate recedes.

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

Overview

 The budget request for fiscal year 1998 contained an
authorization of $35,934.5 million for Research and Development
in the Department of Defense. The House bill would authorize
$37,273.7 million. the Senate amendment would authorize
$36,957.0 million. The conferees recommended an authorization
of $36,537.0 million. Unless noted explicitly in the statement
of managers, all changes are made without prejudice.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

Overview

 The budget request for fiscal year 1998 contained an
authorization of $4,510.8 million for Army, Research and
Development in the Department of Defense. The House bill would
authorize $4,752.9 million. The Senate amendment would
authorize $4,745.5 million. The conferees recommended an
authorization of $4,633.5 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

 FUNDING EXPLANATIONS

University and industry research centers

 The budget request included $45.5 million in PE 61104A
for university and industry research centers.
 The House bill would authorize an increase of $1.9
million in PE 61104A for electromechanics and hypervelocity
physics.
 The Senate amendment would authorize an increase of $2.3
million in PE 61104A for the Army federated laboratory advanced
telecommunications and information distribution research
program (ATIRP).
 The conferees agree to authorize an increase of $1.0
million for electromechanics and hypervelocity physics. The
conferees also agree to authorize $2.3 million of the remaining
funds for the establishment of the ATIRP.

Combat vehicle and automotive advanced technology

 The budget request included $33.1 million for Combat
Vehicle and Automotive Advanced Technology (PE 62601A).
 The House bill authorized an increase of $11.0 million
for a variety of innovative research projects.
 The Senate amendment would authorize an increase of $4.0
million for the National Automotive Center to fund cooperative
contracts using matching funds (PE 62601A).
 The conferees agree to authorize $40.612 million in PE
62601A, an increase of $7.5 million: $4.0 million for continued
funding of cooperative and dual-use contracts to integrate
commercial automotive technology into Army vehicles; $1.0
million for completion of the High Output Diesel Engine (HODE)
project; and $2.5 million for new alternative vehicle
propulsion efforts with industry and academia, including, but
not limited to, innovation or improvements related to diesel,
internal combustion, fuel cell, and electric propulsion
technologies.
 The conferees commend the National Automotive Center for
its efforts to improve the automotive technology available in
Army ground vehicle systems while reducing the operating and
support costs, particularly through the use of affordable
commercial technology, competitive procedures, and matching
funds from industry.

Plastic cased ammunition

 The budget request included $18.2 million in PE 63004A
for weapons and munitions advanced technology.
 The House bill would authorize an increase of $8.0
million in PE 63004A: $5.0 million for electro-rheological
fluids recoil for future artillery systems; and $3.0 million
for plastic cased ammunition.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $3.0
million forplastic cased ammunition research in PE 62624A. The
conferees also agree to authorize a reduction of $1.1 million, without
prejudice, in PE 62624A.

Electronics and electronic devices

 The budget request included $20.2 million in PE 62705A
for research and development in electronics and electronic
devices.
 The House bill would authorize an increase of $5.0
million for field battery recharging capability
(thermophotovoltaic) research and $3.0 million for battery
manufacturing technology.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase: $1.5
million for field battery recharging capability
(thermophotovoltaic) research; and $1.5 million for
manufacturing technology research associated with AA zinc
batteries for military applications.

Bioremediation, education, science, and technology program

 The budget request included $17.5 million for
environmental quality technology within PE 62720A. The budget
request included no funds in that program element for the
bioremediation, education, science, and technology program
(BEST), which supports multidisciplinary research and education
in bioremediation science.
 The House bill would authorize an additional $4.0 million
in PE 62720A for the BEST program.
 The Senate amendment would authorize the budget request.
 The Senate recedes.
 The conferees expect that the use of additional funds for
BEST will provide a direct benefit to the Department of Defense
efforts in the area of bioremediation.

Plasma energy pyrolysis system

 The budget request included $17.5 million for
environmental technology in PE 62720A. No funding was
specifically identified for the Plasma Energy Pyrolysis System
(PEPS) technology.
 The House bill and Senate amendment would authorize $8.7
million for PEPS technology.
 The conferees agree to an increase of $6.0 million in PE
62720A for the ongoing joint effort between the U.S. Army
Environmental Center/Environmental Technology Division and the
Tennessee Valley Authority/Muscle Shoals Environmental Research
Center to develop, demonstrate, and validate the PEPS
technology.
 The purpose of PEPS is to develop plasma technology as a
method of producing heat for the breakdown of waste materials.
The Muscle Shoals Environmental Research Center provides a
level of technical expertise that stems from forty years of
experience in working with electric arc furnaces, a thermal
process similar to PEPS. For that reason, the participation of
the Muscle Shoals Environmental Research Center is a necessary
element of PEPS. However, the conferees direct that no more
than 15 percent of the PEPS funds be made available forthe
participation of the Muscle Shoals Environmental Research Center.
 The goals of the PEPS program are to evaluate the
capability of plasma technology for the destruction of
hazardous components, verify slag suitability for regular
landfill disposal, identify potential hazards associated with
the process emissions, and develop qualified cost estimates for
the future use of the process on large scale operations. The
conferees direct the Secretary of the Army to report to the
congressional defense committees on the progress made in
meeting these goals with fiscal year 1998 funds.

Radford Environmental Development and Management Program

 The budget request included $17.5 million for
environmental quality technology within PE 62720A. No funding
was specifically identified to support the development of an
integrated environmental and pollution prevention management
and control system through the Radford Environmental
Development and Management Program (REDMAP).
 The House bill would direct the Secretary of the Army to
ensure adequate support for the REDMAP initiative within funds
authorized for environmental quality technology.
 The Senate amendment would authorize an increase of $5.0
million in PE 62720A to support REDMAP.
 The conferees agree to authorize an increase of $5.0
million in PE 62720A for REDMAP. The conferees note that some
of the basic research necessary for REDMAP has already been
accomplished through the Facility Environmental Management and
Monitoring System (FEMMS) at Tobyhanna Army Depot,
Pennsylvania. The conferees expect that REDMAP will use
relevant information developed through FEMMS.

Military engineering technology

 The budget request included $36.4 million in PE 62784A
for military engineering technology.
 The Senate amendment would authorize an increase of $5.0
million in PE 62784A: $1.0 million to enhance research in
combat support, combat engineering, and base facility
construction, operations, and maintenance at locations subject
to cold weather; and $4.0 million for energy efficient military
applications.
 The House bill would authorize the budget request.
 The conferees agree to an increase of $1.0 million in PE
62784A for cold weather research. The conferees also agree to
an increase of $4.0 million in PE 65856A for fuel cell military
applications as mentioned elsewhere in the report.

Medical advanced technology

 The budget request included $10.6 million in PE 63002A
for medical advanced technology.
 The House bill would authorize an increase of $5.8
million in PE 63002A: $3.5 million for virtual reality
emergency medical telemedicine (VREMT); and $2.3 million for
telemedicine technology.
 The Senate amendment would authorize an increase of $4.6
million in PE 63002A: $1.0 million for intravenous membrane
oxygenator; and $3.6 million for Meals Ready-to-Eat nutrition
research.
 The conferees agree to authorize an increase of $2.5
million for VREMT. The conferees also agree to authorize an
increase of $3.5 million for nutrition research in PE 62787A.

Combat vehicle and automotive advanced technology

 The budget request included $32.7 million to develop
combat vehicle and automotive technologies.
 The House bill would authorize an increase of $3.0
million to support development of advanced composite materiel
and electric drive technology.
 The Senate amendment would authorize an increase of $9.0
million to further explore aluminum metal matrix technologies.
 The conferees agree to authorize a total of $38.7 million
in PE 63005A. Of this amount, $2.0 million is for advanced
composite materiel development and $6.5 million is for aluminum
metal matrix technologies.

Information systems technology, superiority, and security

 The budget request included $544.4 million for
information systems and information technology research,
development, test, and evaluation. Of that amount, $306.0
million was for information security research, development,
test, and evaluation.
 The House bill would authorize the following increases to
the budget request:
 (1) $2.0 million in PE 63006A for tactical internet
 command and control protection;
 (2) $6.7 million in PE 65604A for information
 operations/warfare survivability analysis of command,
 control, communications, and computers/information
 electronic warfare systems;
 (3) $1.6 million in PE 33150A for development and
 application of information protection measures for the
 Army's component of the global command and control
 systems for the U.S. European Command; and
 (4) $2.7 million in PE 33140F for the Air Force
 information protection program.
 The House report (H. Rept. 105-132) would also direct the
Secretary of Defense to provide to the congressional defense
committees, with the submission of the fiscal year 1999 budget
request, an assessment of the progress in the Department's
information systems security program that addresses the current
status of the program, specific actions being taken on the
recommendations of the 1996 Defense Science Board Task Force on
Information Warfare-Defense, and additional actions that should
be taken to assure the increased security and integrity of the
Defense information infrastructure. The House report would also
require the Secretary to address measures necessary to assure
the integrity of those elements of the National Information
Infrastructure on which the Defense Information Infrastructure
depends, and to identify any additional resources and
legislative authority which might be required.
 The Senate amendment would authorize the budget request.
 The House recedes from its recommendation for additional
funding. The conferees, however, share the views expressed in
the House report regarding the need to treat information
technology as a vital strategic resource, and the need to
address the potential vulnerabilities of the information
infrastructure. The conferees direct the Secretary of Defense
to submit to the congressional defense committees the
assessment of the Department's information systems security
program as discussed in the House report.

Missile and rocket advanced technology

 The budget request included $117.1 million to develop
missile technologies.
 The House bill would authorize a decrease of $57.7
million for the enhanced fiber-optic guided missile (EFOG-M)
program.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $31.4 million to
continue development of EFOG-M technologies and complete the
advanced concept technology demonstration (ACTD) planned for
fiscal year 1998. The conferees further direct that funds
provided for the ACTD be used exclusively for that activity and
not for procurement of additional missiles beyond those
required for the evaluation. The conferees also agree to
authorize an additional $3.0 million for the future missile
technology insertion program for a total authorization of $93.8
million for PE 63313A.

Landmine warfare and barrier advanced technology

 The budget request included $19.3 million to develop
landmine detection technologies.
 The House bill would authorize an additional $5.0 million
for countermine technologies.
 The Senate amendment would authorize an additional $6.6
million to support development and testing of vehicular mounted
mine detector technologies.
 The conferees agree to authorize $27.0 million in PE
63606A, an increase of $2.7 million for the vehicular mounted
mine detection system and an additional $5.0 million for
countermine technology development.

Joint service small arms program

 The budget request included $4.8 million to conduct joint
development of future small arms requirements.
 The House bill would authorize an increase of $7.0
million to support development of the objective individual
combat weapon (OICW) and advanced light anti-armor weapon
system (ALAWS) technology.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $4.5
million in PE 63607A. Of this amount, $3.0 million is for OICW
and $1.5 million is for ALAWS technology.

Armament enhancement initiative

 The budget request included $40.3 million to develop
future generation main battle tank armaments.
 The House bill would authorize an additional $20.0
million for accelerated development of the tank extended range
munition-kinetic energy (TERM-KE).
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize a total of $38.3 million
for the Armament Enhancement Initiative (PE 63639A). The
conferees note an Army decision to terminate the Smart Target
Activated Fire and Forget (STAFF) munition and pursue further
development of the Tank Extended Range Munition-Kinetic Energy
(TERM-KE). The conferees, therefore, agree to authorize a
decrease of $17.0 million for STAFF and an increase of $15.0
million for TERM-KE.

Aviation-advanced development

 The budget request included $7.1 million to develop
aviation technologies.
 The House bill would authorize an additional $5.0 million
for development of retinal display technologies.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $12.1 million in PE
63801A.

All source analysis system

 The budget request included $24.0 million to continue
development of the All Source Analysis System (ASAS).
 The House bill would authorize an increase of $3.5
million for software upgrades.
 The Senate amendment would authorize an increase of $3.2
million to expand advanced fusion technology efforts.
 The House recedes.

Light tactical wheeled vehicles

 The budget request included $9.9 million to develop light
tactical wheeled vehicle technologies.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to authorize a decrease of $9.9
million in PE 64642A and direct the Army to report on future
light tactical wheeled vehicle requirements. The conferees note
the Army has failed to provide a clear and definitized plan
that addresses future light tactical vehicle requirements and
are unsure about the future direction of Army wheeled vehicle
programs.

Engineer mobility equipment development program

 The budget request included $56.2 million to support
improvements to engineer mobility equipment (PE 64649A).
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to a total authorization of $52.2
million in PE 64649A, a decrease of $4.0 million. The conferees
note that the engineer mobility equipment development program
has suffered from late obligation and system management
problems.

Automatic test equipment

 The budget request included $2.6 million to develop
automatic test equipment technologies.
 The House bill would authorize an increase of $2.3
million for Integrated Family of Test Equipment (IFTE)
technology development.
 The Senate amendment authorized the budget request.
 The Senate recedes.

Tactical exploitation of national capabilities

 The budget request included $107.2 million for the
various Tactical Exploitation of National Capabilities (TENCAP)
and related research and development projects within the
military services' Tactical Intelligence and Related Activities
aggregation and the Joint Military Intelligence Program.
 The House bill would authorize a decrease in these
individual accounts by approximately 10 percent.
 The Senate amendment would authorize the budget request.
 The House recedes.
 The conferees agree that the tactical
``operationalization'' of space has become relatively
commonplace within military doctrine, planning, and execution,
and that specialized TENCAP projects to inform, educate, and
provide improved space-related capabilities should be reviewed
for possible reduction or reorientation. While the conferees
fully support the TENCAP program, they believe there may be a
need to begin to reduce and phase out the specialized projects
to exploit space and national capabilities. Such exploitation
should be the focus of new programs from the outset of their
development.
 Therefore, the conferees direct the Secretary of Defense
to submit a report to the congressional defense and
intelligence committees by March 15, 1998, describing the
Secretary's assessment of the continuing utility of the TENCAP
program, and recommendations for evolving or phasing out the
existing TENCAP program.

Combined arms tactical trainer

 The budget request included $2.8 million to develop
combined arms tactical trainer (CATT) technologies.
 The House bill would authorize the budget request.
 The Senate amendment would authorize the transfer of
$11.5million from procurement to PE 64780A to resolve software
problems associated with these trainers.
 The conferees agree to authorize $13.3 million in PE
64780A.

Landmine warfare/barrier-engineering development

 The budget request included $22.6 million to develop
minefield detection technologies.
 The House bill and the Senate amendment would authorize
the budget request.
 The conferees agree to authorize a decrease of $13.9
million in PE 64808A for development work associated with the
airborne standoff minefield detection system (ASTAMIDS) as
technical difficulties with this technology have been
identified and the system is not ready to enter engineering and
manufacturing development (EMD).

Sense and destroy armament missile-engineering development

 The budget request included $22.4 million to continue
development of the sense and destroy armament missile (SADARM).
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to authorize a decrease of $10.9
million for the SADARM program. The conferees note the program
has suffered from technical difficulties associated with
development of the baseline munition. The conferees support the
SADARM program but believe the baseline system testing
scheduled for calendar year 1998 should be completed prior to
funding preplanned product improvement work.

Fuel cells

 The budget request included no funding for fuel cell
technology.
 The House bill would authorize an increase of $1.8
million in PE 63712N to establish a cooperative research and
development effort for a cost-shared demonstration of proton
exchange membrane fuel cell technology and an increase of $3.5
million in PE 63513N to continue the program for design of a
full scale ships service molten carbonate fuel cell power plant
and demonstration of a 500 kilowatt molten carbonate fuel cell.
 The Senate amendment would authorize an increase of $1.75
million in PE 63712N to establish a cooperative research and
development effort between the Naval Surface Warfare Center
(NSWC) in Crane, Indiana and private industry. The Senate
amendment also provided for an increase of $4.0 million in PE
62784A for additional technology development of energy
efficient military applications between the U.S. Army Corps of
Engineers, Construction Engineering Research Laboratories and
private industry. In each instance, the Senate amendment
directed participants from the private sector to contribute an
amount of funding that is equivalent to the Federal funding
level.
 The conferees agree to authorize an increase of $1.75
million in PE 63712N, as discussed in the House report (H.
Rept. 105-132) and the Senate report (S. Rept. 105-29), an
increase of $3.5 million in PE 63513N for continuation of
molten carbonate fuel cell development, as discussed in the
House report, and an increase of $4.0 million in PE 65856A for
additional technology development of energy efficient military
applications, as discussed in the Senate report.
 The conferees note that over the course of several budget
cycles there have been numerous funding adds for development
and utilization of fuel cell technology. The conferees believe
that there is an absence of a clearly defined strategy and
implementation program for the development and application of
advanced fuel cell technology and other energy efficient
applications for the Department of Defense (DOD). The conferees
direct the Secretary of Defense to develop a strategy to
address a broader spectrum of interests and applications of
fuel cell technology within the military departments. The
conferees expect that the strategy will include private sector
contribution in an amount that is, at a minimum, equal to the
Federal funding level for the continuation and development of
fuel cell technology.
 The conferees are also aware that the Department of
Energy (DOE) has been involved in the development and
application of advanced fuel cell technology. The conferees
direct the Secretary of Defense to work with the Secretary of
Energy in the development of a common strategy to avoid
duplication of effort between the two departments.
 The conferees direct the Secretary of Defense to report
to the congressional defense committees by March 31, 1998 on
the overall science and technology strategy for the development
and application of advanced fuel cell technology and other
energy efficient applications by the defense agencies and
military departments. Moreover, the report should explain the
common strategy developed by the Secretaries of Defense and
Energy in this area.

Combat vehicle improvement program

 The budget request included $136.5 million to develop
combat vehicle improvements to existing systems.
 The House bill would authorize an increase of $20.1
million for combat vehicle improvement purposes.
 The Senate amendment would authorize an increase of $20.0
million for combat vehicle improvement purposes.
 The conferees agree to authorize an increase of $22.5
million in PE 23735A for a total of $159.0 million. Of this
amount, $12.0 million is for development of field emission
display units for armored vehicles; $4.0 million is for
development of AN/VVR-1 Laser Warning Receivers; and $6.5
million is for the M1 system enhancement program (SEP).

Aircraft modification/product improvement program

 The budget request included $2.6 million to support
improvements to existing aircraft systems.
 The House bill would authorize an increase of $20.0
million for the improved cargo helicopter (ICH) program.
 The Senate amendment would authorize an increase of $30.0
millionfor ICH.
 The conferees agree to authorize an increase of $20.0
million for ICH in PE 23744 for a total of $22.6 million.

Digitization

 The budget request included $157.0 million to support
Army digitization efforts.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $11.0
million for outstanding digitization requirements.
 The conferees note concerns expressed by defense
appropriations subcommittees regarding the funding of certain
Army digitization activities in the Digitization program
element (PE 23758A) of the Army Research and Development budget
request.
 The conferees agree to reallocate $100.0 million from the
Army request for digitization funding as follows:

Research, Development, Test and Evaluation, Army

 In millions
Digitization:
 Applique...................................................... $2.6
 Tactical Internet............................................. 6.0
Other:
 Force XXI Initiatives......................................... 38.9
 Striker....................................................... 3.9
 Mortar Fire Control........................................... 10.0
 Radio Frequency Technology.................................... 1.7
 Light Weight Laser Designator................................. 2.8
 Combat Synthetic Training Assessment Range.................... 5.4
 Airborne Command & Control System............................. 11.0
Missile Procurement, Army:
 Avenger Slew-to-Cue........................................... 7.4
Other Procurement, Army:
 Gun Laying Positioning System................................. 6.0
 PLS Enhanced.................................................. 3.0
 Radio Frequency Technology.................................... 1.2

 The conferees encourage the Army to further develop a
clear and comprehensive digitization program that depicts
requirements, funding, and timelines associated with the
ultimate goal of fielding a digitized Corps early in the next
century and to consult with the congressional defense
committees concerning that program. The conferees expect that
this effort will be fully funded in future budget submissions
and that congressional defense committees will be notified of
proposed acquisitions and activities. The conferees agree to
authorize $65.6 million for digitization in PE 23758A.

Missile/air defense product improvement program

 The budget request included $17.4 million to support
improvements to existing air defense systems.
 The House bill would authorize an increase of $16.7
million, $10.0 million for Patriot PAC-3 development and $6.7
million for the Stinger Block II development effort.
 The Senate amendment would authorize an increase of $10.0
million for Patriot anti-cruise missile (PACM) development.
 The conferees agree to authorize $31.4 million, an
increase of $14.0 million in PE 23801A, $10.0 million for the
completion of the PACM development effort and $4.0 million for
the Stinger Block II program.

Healthcare information protection demonstration

 The budget request included $9.6 million in PE 33140A for
the Army's information systems security program.
 The House bill would authorize an increase of $2.5
million to initiate a demonstration program for military
healthcare information protection that would be consistent with
national healthcare and information initiatives, and would
direct the Secretary of the Army to report to the congressional
defense committees on related matters.
 The Senate amendment would authorize the budget request.
 The Senate recedes.

End item industrial preparedness activities

 The budget request included $44.3 in PE 78045A for the
Army's manufacturing technology program.
 The House bill would authorize an increase of $15.0
million for munitions manufacturing technology.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $15.0
million in PE 78045A to accelerate key munitions manufacturing
technologies in composites, electronics, energetics, power
supplies, and metal parts, as recommended in the House report
(H. Rept. 105-132). The conferees intend this funding to be
used to reduce the cost of future munitions and to enable both
government- and contractor-owned munitions production
facilities to produce research quantities and production
quantities of munitions concurrently; to adopt design changes
and product improvements more rapidly; and to make short
production runs more feasible and less costly.

Overview

 The budget request for fiscal year 1998 contained an
authorization of $7,611.0 million for Navy, Research and
Development in the Department of Defense. The House bill would
authorize $7,947.0 million. The Senate amendment would
authorize $7,813.0 million. The conferees recommended an
authorization of $7,774.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

Defense research sciences
 The budget request included $366.3 million in PE 61153N
for Navy defense research sciences.
 The House bill would authorize an increase of $10.0
million to continue the program of basic research in molecular
design materials science that was initiated in 1994.
 The Senate amendment would authorize the budget request.
 The conferees agree to an increase of $8.0 million in PE
61153N. Further, the conferees agree with the direction
contained in the House report (H. Rept. 105-132) with regard to
the molecular design materials science program. The Secretary
of the Navy shall conduct an assessment of the goals,
objectives, and progress in the program, future directions and
funding requirements, and report the results of the assessment
to the congressional defense committees by March 15, 1998.
Marine mammal research program
 The budget request included $366.3 million in PE 61153N
for Navy Defense Research Sciences, including $137.1 million to
support basic research in ocean sciences.
 The House bill would authorize an increase of $500,000 to
continue the Navy's cooperative marine mammal research program.
 The Senate amendment would authorize the budget request.
 The House recedes.
 The conferees direct the Secretary of the Navy to submit
to the congressional defense committees, by March 1, 1998, a
report on the research being conducted in the marine mammal
research program, the technological implications of this
research to Navy sonar requirements, and future plans for the
program.
Power electronic building blocks
 The budget request included $46.9 million in PE 62121N
for applied research in surface ship technology.
 The House bill and the Senate amendment would authorize
an increase of $6.0 million for power electronic building block
(PEBB) technology.
 The conferees agree to an increase of $6.0 million in PE
62121N for the acceleration of the PEBB program to provide
electric power system options for future shipboard designs that
include electric drive and for meeting reduced manning goals
through automation of ship systems. The conferees urge the use
of virtual prototyping for simulation and evaluation of
advanced concept electrical systems in this effort.
Power node control centers
 The budget request included $46.8 million in PE 62121N
for applied research in surface ship and submarine, hull,
mechanical, and electronic technology, logistics technology,
and environmental protection for all Navy platforms and shore
facilities.
 The House bill would authorize an increase of $1.5
million in PE 62121N to continue the development of power node
control centers for advanced integrated electrical distribution
system fault detection, switching, reconfiguration, and control
of shipboard electrical systems.
 The Senate amendment would authorize the budget request.
 The Senate recedes.
Second source for carbon fibers
 The budget request included $76.7 million in PE 62234N
for materials, electronics, and computer technologies.
 The House bill and the Senate amendment would authorize
an increase of $2.0 million in PE 62234N to complete the
qualification of new processes for aviation platforms and the
development of a second source for carbon fibers.
 The conferees agree to authorize an increase of $2.0
million in PE 62334N to continue and complete the program
initiated in fiscal year 1997 to address new materials
processes such as resin transfer molding and to establish
second source qualification procedures for advanced composites
used in naval aircraft and prepreg systems.
Titanium processing technology
 The budget request included $76.7 million in PE 62234N
for materials, electronics, and computer technologies.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $2.0
million in PE 62234N to support the development of the plasma
quench process for use in the production of ultra-fine titanium
powder and in the injection molding process.
 The House recedes.
 The conferees direct that all applicable competitive
procedures be used in the award of contracts or other
agreements under this program, and that cost sharing
requirements for non-federal participants be utilized where
appropriate.
Arctic climate observations
 The budget request included $48.2 million in PE 62435N
for applied research in oceanographic and atmospheric
technologies. The request included no funds for continuation of
the ocean climate research program.
 The House bill would authorize an increase of $3.0
million in PE 62435N to support the second year of the arctic
oceanographic observation program, a four-year, cooperative
program for the utilization of underwater acoustic techniques
to determine ocean climate and acoustic characteristics in a
large ocean basin.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $2.0
million to continue the program for investigation of the use of
long-range underwater sound transmissions to detect and monitor
changes in the ocean, as described in the House report (H.
Rept. 105-132).
National Oceanographic Partnership Program
 The budget request included $48.2 million in PE 62435N
for applied research in oceanographic and atmospheric
technology.
 The House bill and Senate amendment would authorize an
increase of $16.0 million in PE 62435N for the National
Oceanographic Partnership Program (NOPP).
 The conferees agree to an increase of $12.0 million in PE
62435N to maintain the momentum of the program until additional
funds for support of the program can be included in the budget
requests of other participating agencies and departments.
 The conferees further direct the Secretary of Defense to
coordinate with the Secretaries of Commerce, Energy, and
Interior, the Director of the National Science Foundation, the
Administrators of the National Aeronautics and Space
Administration and the Environmental Protection Agency on
funding levels required in future budget requests for
continuation of the NOPP. The conferees direct the Secretary of
Defense to provide a report to the congressional defense
committees by February 28, 1998 on the funding for the program
identified in the fiscal year 1998 budget requests of
participating agencies and the Department of Defense.
Antisubmarine warfare technology
 The budget request included $35.7 million in PE 62633N
for undersea warfare weaponry technology.
 The House bill would authorize an increase of $4.0
million in PE 63747N to mature the development of hydrodynamics
and propulsion technologies for the 6.25,, torpedo vehicle and
expand guidance and control technologies.
 The Senate amendment would authorize an increase of $4.0
million in PE 62633N to accelerate technology leading to the
development of a quick reaction antisubmarine/anti-torpedo
weapon needed for close-range engagements and for the
protection of surface ships and submarines from torpedo attack.
 The conferees agree to authorize an increase of $3.0
million in PE 62633N for antisubmarine warfare technologies
applicable to quick reaction antisubmarine systems, as
recommended in the House report (H. Rept. 105-132) and the
Senate report (S. Rept. 105-29). The additional funding should
be used to mature hydrodynamics, propulsion, and guidance and
control technologies for the 6.25,, torpedo vehicle to
accelerate its development and introduction into the fleet.
Composite helicopter hangar
 The budget request included no funds for composite
helicopter hangars.
 The House bill authorized the budget request.
 The Senate amendment would authorize an increase of $10.0
million above the budget request in PE 63508N to begin a
developmental effort to design and fabricate the outer shell of
a DDG-51 helicopter hangar structure using composite materials.
 The conferees agree to authorize an increase of $10.0
million in PE 63508N for development of a composite helicopter
hangar development and a general reduction of $5.0 million to
PE 63508N.
Project ``M''
 The budget request included $39.7 million in PE 63508N
for technologies for submarine and surface ship handling,
machinery, and engineering systems.
 The House bill authorized an increase of $5.0 million to
continue the Navy's program for transition, development and
demonstration of advanced quieting technology developed under
the Defense Advanced Research Project Agency Project ``M''.
 The Senate amendment authorized the budget request.
 The conferees agree to authorize a $5.0 million increase
for Project ``M''.
Marine Corps advanced technology demonstration
 The budget request included $34.2 million to support the
Marine Corps advanced technology demonstration (ATD).
 The House bill would authorize an increase of $19.8
million to support the Commandant's Warfighting Laboratory. The
House bill would also provide $5.0 million for a low-cost,
close-range unmanned aerial vehicle (UAV) project.
 The Senate amendment would authorize an increase of $15.0
million for the Commandant's Warfighting Laboratory.
 The conferees agree to authorize an increase of $19.5
million in PE 63640M. Of this amount, $17.5 million is for the
Commandant's Warfighting Laboratory and $2.0 million is for the
common automatic recovery system for a total of $53.7 million
in this program element.
Freeze-dried blood research project
 The budget request included $18.3 million in PE 63706N
for medical development programs.
 The House bill and Senate amendment would authorize an
increase of $2.5 million for the freeze-dried blood research
project.
 The conferees agree to authorize an increase of $1.5
million in PE 63706N to continue research on freeze-dried blood
processes to develop a safe and reliable supply of blood for
combat casualties. The conferees recognize the commercial
potential of this technology and urge the Navy to pursue dual-
use application and cost-sharing in this program to the maximum
extent practicable.
Littoral antisubmarine warfare technology demonstration
 The budget request included $54.8 million in PE 63747N
for advanced development of undersea warfare advanced
technology, including $30.9 million for shallow water
surveillance advanced technology.
 The House bill would authorize an increase of $5.0
million in PE 63747N for continued development, demonstration,
and evaluation of the technology for a mobile, high power
broadband acoustic surveillance source that is based upon the
adaptation of commercial-off-the-shelf (COTS) air-gun
technology that was developed originally for the oil
exploration industry.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $3.0
million for the continuation of the COTS air-gun technology
demonstration and evaluation program and understand that this
will lead to a decision by the Navy on whether to proceed with
the development of COTS air-gun technology as an acoustic
surveillance source.
Beach and surf zone obstacle clearance
 The budget request included $41.6 million in PE 63782N
for advanced development and demonstration of technology for
shallow water mine counter-measures.
 The House bill would authorize an increase of $750,000 to
complete the additional testing required for determination of
the GPU-5 gunpod's capability to breach beach and surf zone
obstacles safely, quickly, and decisively when mounted on an
air-cushion landing craft.
 The Senate amendment would authorize the budget request.
 The Senate recedes.
High frequency surface wave radar
 The budget request included $87.2 million in PE 63792N
for the advanced technology transition program.
 The House bill and Senate amendment would authorize an
increase of $4.0 million for high frequency surface wave radar
(HFSWR) advanced technology demonstration.
 The conferees agree to an increase of $4.0 million in PE
63792N to complete the HFSWR demonstration.
Visualization architecture and technology
 The budget request included $7.8 million for advanced
technology in aviation survivability (PE 63216N) and $33.2
million for major test and evaluation investments (PE 64759N).
 The House bill would authorize an increase of $3.0
million in PE 64759N for visualization architecture and
technology that would focus on development of data display
technologies, enhanced situational awareness, and other
capabilities required to enhance the ability of developmental
and operational testers to assess complex, dynamic air combat
testing and operations.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $3.0
million in PE 63216N for visualization architecture and
technology. The conferees direct that all applicable
competitive procedures be used in the award of contracts or
other agreements under this program, and that cost-sharing
requirements for non-federal participants be utilized, where
appropriate.
Antisubmarine warfare systems development
 The budget request included $22.9 million in PE 63254N
for development of antisubmarine warfare systems.
 The House bill would authorize an increase of $3.8
million to complete demonstration/validation of sonobuoy geo-
positioning system integration and transducer enhancements for
improving the shallow water antisubmarine warfare effectiveness
of the air deployed low frequency projector.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize a $2.0 million increase
in PE 63254N for improving the shallow water antisubmarine
warfare effectiveness of the air deployed low frequency
projector.
CV(X) carrier system development
 The budget request included $98.6 million in PE 63512N
for future aircraft carrier research and development.
 The House bill would authorize a decrease of $88.4
million for CV(X) carrier system development. The House report
(H. Rept. 105-132) expressed the belief that it would be
neither fiscally nor technically prudent to increase advanced
carrier systems research and development for the CV(X) to the
degree sought by the Navy. The report also expressed the belief
that increased emphasis should be placed on the research and
development program for the CVN-77 to provide a transition to
the CV(X).
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $20.6 million in PE
63512N, a reduction of $78.0 million for future aircraft
carrier research and development.
 The conferees encourage the Chief of Naval Operations to
define the operational requirement for the CV(X) aircraft
carrier program and develop a road map for the CV(X) research,
development, test and evaluation program to ensure the
capabilities of the CV(X) meet that requirement.
Advanced submarine systems development
 The budget request included $59.1 million in PE 63561N
for innovative research and development in submarine
technologies and their subsequent evaluation, demonstration,
and validation forsubmarine platforms, in order to increase the
submarine technology base and provide subsystem design options that are
not currently feasible.
 The House bill would authorize an increase of $103.0
million for development (in parallel with development of the
New Attack Submarine (NAS)) of a large-scale vehicle (LSV)
demonstrator that would not be limited by form (hull or
appendages) or by a single hull design, and would also direct
the Secretary of the Navy to issue a competitive solicitation
for the demonstrator to the shipyards not currently involved in
the design or future construction of the NAS. The House bill
would further direct the transfer to the submarine large scale
demonstrator of funds in the Future Years Defense Program
accompanying the fiscal year 1998 budget for the Arsenal Ship
demonstrator.
 The Senate amendment would authorize an increase of $15.0
million to accelerate the development of what are now
considered far-term technologies, such as an advanced
propulsor, rim driven motors, and advanced hull forms.
 The conferees agree to authorize an increase of $54.9
million. The Secretary of the Navy is authorized to pursue a
third demonstrator that is not limited by form or single hull
design and issue a competitive solicitation to all responsible
sources for such a demonstrator. To avoid costly oversights and
conflicts between the LSV builder and the technology providers,
the Secretary of the Navy should ensure that the NAS
shipbuilders are participants, as appropriate, in the process
of including new technologies into the LSV.
 The Secretary of the Navy should provide the
congressional defense committees not later than the time at
which the fiscal year 1999 defense budget request is submitted
a report detailing the Navy's plans for LSV development.
Cruiser conversion program design
 The budget request included $38.6 million for ship
preliminary design and feasibility studies in PE 63564N.
 The House bill would authorize the budget request.
 The Senate amendment would authorize a $25.0 million
increase in PE 64567N to initiate planning for mid-life
conversion of Aegis cruisers and reduce schedule risk on
development of DD-21.
 The conferees agree to authorize a $15.0 million increase
in PE 63564N to initiate the cruiser conversion program. The
conferees direct the Secretary of the Navy to provide a report
on the cruiser conversion plan to the congressional defense
committees with the submission of the fiscal year 1999 defense
budget request.
Intercooled recuperated gas turbine engine
 The budget request included $49.7 million in PE 63573N
for the Navy's advanced surface machinery program, including
$32.3 million to continue development of the intercooled
recuperated (ICR) gas turbine engine.
 The House bill would authorize the budget request. The
House report (H. Rept. 105-132) would direct the Secretary of
the Navy to report an assessment of the progress in the ICR
engine program.
 The Senate amendment would also authorize the budget
request. The Senate report (S. Rept. 105-29) would direct the
Secretary of the Navy to prepare and submit a plan that makes
provisions for at-sea testing, completion of development, and
introduction of the ICR engine into the fleet.
 The conferees agree to authorize a reduction to the
budget request for the ICR program of $2.0 million, without
prejudice. The conferees direct the Secretary of the Navy to
conduct an assessment of the progress in the ICR engine program
and plans for its continuation. The assessment shall address
the technical progress in the program, future plans for engine
testing and qualification (including plans for testing at land-
based test sites and at-sea), options for completion of
development and introduction of the ICR engine into the fleet
if testing proves successful, the status of agreements with the
United Kingdom and participating countries regarding the
conduct of, and funding for, continuation of the program, and
budget estimates of the costs necessary to complete the
program. The results of the assessment shall be reported to the
congressional defense committees with the submission of the
fiscal year 1999 defense budget request.
Automatic target recognition/optical correlation
 The budget request included $34.2 million in PE 63609N
for Navy conventional munitions development, $26.2 million in
PE 63601F for Air Force conventional weapons technology, and
$4.8 million in PE 63232D for automatic target recognition.
 The House bill would authorize an increase of $8.0
million in PE 63609N for development and demonstration of a
miniature optical correlator for automatic target recognition
and improved aimpoint selection for the Standard Missile, and
an increase of $3.5 million in PE 63601F for the development
and demonstration of a miniature optical correlator for
automatic target recognition and aimpoint selection for the
AGM-130 missile.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $4.2
million in PE 63609N and an increase of $1.5 million in PE
63601F for the development and demonstration of optical
correlation technology, as described in the House report (H.
Rept. 105-132). The increase in PE 63601F is offset by a
reduction of $3.0 million for next generation air-to-air
threats.
Marine Corps assault vehicles
 The budget request included $60.1 million to support the
development of the advanced amphibious assault vehicle (AAAV).
 The House bill would authorize an increase of $10.0
million to meet additional development requirements.
 The Senate amendment would authorize an increase of $10.1
million for the AAAV.
 The conferees agree to authorize an increase of $8.0
million for a total of $68.1 million in PE 63611M.
Marine Corps ground combat/support systems
 The budget request included $36.5 million to support
development of Marine Corps ground combat systems.
 The House bill would authorize an increase of $3.6
million to support development requirements for the lightweight
155mm howitzer.
 The Senate amendment would authorize the budget request.
 The Senate recedes.
Cooperative engagement capability
 The budget request included $139.2 million in PE 63658N
for the cooperative engagement capability (CEC).
 The House bill would authorize a total increase of $50.0
million in PE 63658N for the CEC program: $15.0 million to
continue the accelerated development of the low cost common
equipment set; $5.0 million to support transfer of the CEC
design and development agent to industry; $20.0 million to
accelerate integration of the CEC into Navy E-2C and P-3
aircraft; $5.0 million to initiate development of an integrated
capability between CEC and the ship self defense program
(SSDS); and $5.0 million to accelerate joint service
integration and demonstration of CEC with the Army's Patriot
and the Marine Corps' Hawk air defense missile systems.
 The Senate amendment would authorize an increase of $9.5
million in PE 63658N to:
 (1) $5.0 million to continue the transition of design
responsibility from its developer to the CEC procurement
contractor; and
 (2) $4.5 million to continue integration of CEC into the
Marine Corps Hawk missile system.
 The Senate amendment would also authorize $5.0 million in
PE 64212N to initiate development of a Ku-band data link kit
for the SH-60B helicopter to avoid CEC interference.
 The conferees agree to authorize an increase of $33.0
million in PE 63658N as follows:
 (1) $15.0 million for low cost common equipment sets;
 (2) $10.0 million for P-3 and E-2C integration;
 (3) $5.0 million for CEC-SSDS integration; and
 (4) $3.0 million for CEC-Hawk missile system integration.
 The conferees agree not to authorize an increase in PE
64212N for the SH-60B Ku-band data link.
Composite engineered materials
 The budget request included $1.7 million in PE 63725N for
advanced development of materials, electronics and computer
technologies.
 The House bill would authorize an increase of $3.0
million to complete the shore facilities materials program in
cost-shared research on carbon fiber-reinforced, recycled
thermoplastic engineered lumber.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $3.0
million to complete the shore facilities materials program in
cost-shared research on carbon fiber-reinforced, recycled
thermoplastic engineered lumber.
Land attack systems technology
 The budget request included $37.8 million in PE 63795N
for development, demonstration, and validation of land attack
systems technology for naval ship-to-shore fire support.
 The House bill would authorize the following increases:
 (1) $15.1 million to complete the development and
 commence the integration of a fire control system to
 support the initial operational capability of the
 advanced 5"/62 caliber gun and the extended range
 guided munition;
 (2) $10.0 million for flight test demonstration and
 risk reduction for the land attack Standard missile;
 (3) $20.0 million for program definition and risk
 reduction activities to permit the Navy tactical
 missile system (NTACMS) to begin accelerated
 engineering and manufacturing development in fiscal
 year 1999; and
 (4) $5.0 million to continue the micro-
 electromechanical systems (MEMS) technology guidance
 and control risk reduction program.
 The Senate amendment would authorize the following
increases:
 (1) $15.1 million for the continued development of
 the naval surface fire support warfare control system
 (NWCS);
 (2) $5.0 million to pursue a flight demonstration
 program for the land attack Standard missile; and
 (3) $20.0 million for developing NTACMS.
 The conferees agree to authorize the following increases
to PE 63795N:
 (1) $8.0 million to complete the extended range
 guided munition development and commence the
 integration of a fire control system;
 (2) $3.0 million to pursue a flight demonstration
 program for the land attack Standard missile;
 (3) $10.0 million for developing NTACMS; and
 (4) $2.0 million for MEMS.
 The conferees are concerned that the Navy is pushing
systems to flight test to meet surface fire support
requirements without an initial analysis of whether the systems
are capable of meeting Navalsurface fire support requirements.
In addition, a number of mature systems, sub-systems and components
appear to be capable of fulfilling surface fire support requirements
without further development. However, without the basic analysis which
would allow the Navy to narrow the field of candidates intelligently,
too many systems are moving toward fulfilling the same requirement and
too many opportunities to take advantage of developed systems are being
missed. To correct these deficiencies, the conferees strongly encourage
the Navy to conduct the basic analysis necessary to move forward with a
focused effort to meet the surface fire support requirement. To
accomplish this, the conferees suggest the Navy evaluate the concept of
a virtual land attack warfare development center that would
electronically link existing expertise while avoiding expensive travel
costs. The Navy should consider using funding from prime systems for
meeting the surface fire support analytical requirement, including
Standard missile, Navy tactical missile system, and Tomahawk. The
conferees believe the Navy needs to conduct this analysis to eliminate
redundancy and take advantage of mature technologies to make progress
in meeting naval surface fire support requirements.
Nonlethal weapons and technologies of mass protection program
 The budget request included $16.8 million for the
nonlethal weapons (NLW) and technologies program.
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $3.3
million to address underfunding by the Department of Defense in
support of nonlethal weapons technologies research and
development program.
 The Senate recedes.
 The Senate report (S. Rpt. 105-29) expressed the view
that the Department of Defense should continue to focus its
efforts on developing weapons and technologies to assist U.S.
military forces, who are increasingly involved in non-
traditional military situations, with the necessary tools and
flexibility to manage, shape, deter, or contain future
conflicts across the operational spectrum. The conferees note
the recent decision by the Department of Defense to ship
nonlethal weapons and technologies to U.S. ground forces
participating in the North Atlantic Treaty Organization (NATO)
Stabilization Force (SFOR) during the recent violent
confrontations between American forces and Bosnian Serb
demonstrators.
 The conferees commend the military services for their
efforts in the NLW area and encourage the Department of Defense
(DOD) to increase its investments in the research, development,
and procurement of nonlethal weapons and technologies, as well
as associated doctrinal and training initiatives. Further, the
conferees expect the DOD to provide the funds necessary to
fulfill the requirements for nonlethal weapons and technologies
identified by the military services, rather than requiring the
military services to fund NLW programs out of their existing
budgets.
CH-60 helicopter development
 The budget request included $31.8 million for CH-60
helicopter advance procurement.
 The House bill and Senate amendment would authorize the
budget request.
 The conferees agree to authorize a transfer of $31.8
million from Aircraft Procurement, Navy to PE 64212N to enable
the Navy to conduct non-recurring engineering efforts,
including drawings for engineering development.
Parametric airborne dipping sonar
 The budget request included no funds for the parametric
airborne dipping sonar (PADS).
 The Senate amendment would authorize an increase of $10.0
million in PE 64212N for the continued development of PADS.
 The House bill authorized the budget request.
 The conferees agree to authorize an increase of $5.0
million increase for PADS in PE 64212N.
P-3 maritime patrol aircraft modernization program
 The budget request included $3.2 million in PE 64221N to
continue engineering and manufacturing development of upgrades
to the P-3C aircraft system to enhance surface and surface
tracking, classification, and attack capabilities.
 The House bill would authorize an increase of $12.0
million to continue and accelerate the integration of anti-
surface warfare improvement program (AIP) sensors to reduce
operator workload, modernize the operator-machine interface to
take advantage of new displays and controls, provide additional
sensor integration/enhancements, improve/automate tactical
planning aids, and provide for multi-sensor data correlation
and fusion.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $10.0
million in PE 64221N for the P-3C maritime patrol aircraft
modernization program as recommended in the House report (H.
Rept. 105-132).
 The conferees note the continuing disparity between the
operational requirements of the unified commanders-in-chief
(CINCs) and the Navy's plans for modernization of the P-3C
fleet. The conferees direct the Secretary of the Navy to
provide an assessment of the implications of this disparity to
the congressional defense committees with the submission of the
fiscal year 1999 defense budget request.
H-1 upgrades
 The budget request included $80.7 million to support H-1
upgrades.
 The House bill and Senate amendment would authorize a
transfer of $5.6 million from the H-1 program in Navy
procurement to support efforts to provide for a common cockpit
in PE 64245N.
 The conferees agree to authorize the transfer of $5.6
millionfrom the H-1 upgrade program to PE 64245N for a total of
$86.3 million in that program element. The conferees agree to authorize
a total of $12.9 million for H-1 modifications.
Advanced ranging source
 The budget request included $16.9 million in PE 64261N
for engineering and manufacturing development of acoustic
search sensors.
 The House bill would authorize an increase of $4.0
million to accelerate the development of alternative shallow
water-capable sound sources in the advanced extended echo
ranging (AEER) program and ensure that unique acoustic
technology is available for the advanced ranging source (ARS)
and air deployed low frequency project (ADLFP) comparative
program testing.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $2.0
million for the purposes identified in the House report (H.
Rept. 105-132).
High Power Discriminator
 The budget request included no funds in PE 64307N to
begin development of a High Power Discriminator (HPD).
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $35.0
million for the HPD Program.
 The conferees agree to authorize an increase of $25.0
million for the HPD Program in PE 64307N.
 The conferees support the concept of using existing X-
Band radar technology in support of the Navy's theater
ballistic missile defense effort. The proposed HPD would
consist of a solid state X-Band radar for long-range
acquisition and discrimination for theater ballistic missile
defense and cruise missile defense. This concept would leverage
the significant investment already made in the Army's ground-
based radar.
Maritime fire support demonstrator/arsenal ship
 The budget request included $102.9 million in PE 64310N
for the Navy and $47.2 million in PE 63763E for the Defense
Advanced Research Projects Agency (DARPA) to continue
development of the arsenal ship demonstrator. The budget
request also included $55.0 million in PE 64567N for the Navy's
next generation surface combatant, SC-21.
 The House bill would authorize no funding for the arsenal
ship program. It would direct the Under Secretary of Defense
(Acquisition and Technology) and the Secretary of the Navy to
review the acquisition strategy for the SC-21 program and
determine whether or not a prototyping strategy is appropriate
for the new surface combatant.
 The Senate amendment would authorize an increase of $25.0
million in PE 64310N to ensure that sufficiently robust funding
is available early in Phase III, the construction phase for the
arsenal ship (now redesignated the maritime fire support
demonstrator (MFSD)), for schedule risk reduction and to
promote the introduction of new technologies into the
demonstrator.
 The conferees agree to authorize $35.0 million in PE
64310N and no funding in PE 63673E to continue the MFSD
program, a total reduction of $105.2 million. The reduction
reflects the concerns stated in the fiscal year 1997 and the
fiscal year 1998 reports by the congressional defense
committees and in the statement of managers which accompanied
the conference report on H.R. 3230 (H. Rept. 104-724).
 As noted in the House report (H. Rept. 105-132), the
Navy's original concept for the arsenal ship was for the
development and demonstration of a ``proof-of-principle strike
warfare ship'' that would establish a new paradigm for the
development and construction of Navy ships. A stealthy, highly
survivable, heavily armed, and minimum manpower fire support
ship, the arsenal ship demonstrator would be the prototype of a
force of up to six such ships, each armed with as many as 500
vertical launch cells.
 The Senate report (S. Rept. 105-29) noted that the Navy's
concept for execution of the land attack mission has evolved
from delivery of massive firepower from a limited number of
single-mission hulls to delivery of fires by a closely
interconnected, distributed network of multi-mission surface
combatants. This evolution is reflected in the preferred option
identified in the SC-21 cost and operational effectiveness
analysis: a multi-mission destroyer optimized for land attack,
the DD-21. The Navy has stated that the MFSD lies on the
critical path to successful development of a DD-21 design in
time to begin lead ship construction in fiscal year 2004. The
Navy believes that all the technologies identified in the
arsenal ship concept development phase will be relevant to the
DD-21, and that the MFSD will also serve as a test-bed for
emerging technologies following completion of the initial
demonstration with the fleet in 2001. The conferees are deeply
concerned that, although the stated purpose of the original
arsenal ship demonstrator program changed significantly with
the Navy's announcement of the new MFSD strategy in April 1997,
the DARPA and the Navy continue to pursue the MFSD program
without any apparent near-term change in the original program
direction and without addressing the issues that have been
previously raised by the congressional defense committees. The
conferees understand that the program now under contract
continues to focus on the development and demonstration of the
arsenal ship concept, not on the maritime fire support
demonstrator and its relationship to DD-21.
 The conferees note the views expressed in the House
report that the differences in ship size and mission capability
between the Arsenal Ship and DD-21, as conceived, could yield
two separate development programs and that the overlapping
schedules for the demonstrator and the DD-21 program do not
provide sufficient opportunity for the experience gained from
the demonstrator to provide maximum benefit to design and
construction of the DD-21.
 The conferees believe that, if the MFSD program is to be
relevant, the program must focus on the development and
demonstration of new processes and procedures for the
development and constructionof Navy ships, and on the
development and demonstration of technologies that might be used in the
DD-21 or in other future Navy ship construction programs. The
demonstrator program must be structured to achieve these ends and the
development and demonstration of the technologies to be evaluated on
the demonstrator must be explicitly defined, programmed, and funded.
The conferees do not believe that the MFSD, as a demonstrator and test
bed, should be funded in a program element for engineering and
manufacturing development.
 Therefore, the conferees direct the Secretary of Defense
to prepare and submit to the congressional defense committees a
plan for the development, demonstration, and evaluation of the
MFSD and for development, demonstration, and evaluation of the
various technologies that will be demonstrated and evaluated on
the demonstrator. The technologies should include those being
considered for incorporation in the detailed design of the DD-
21, for subsequent technology insertion into the DD-21 program,
or for use in other future naval ship construction programs.
The plan shall include the management structure, program plan,
schedule, and funding required for development of the MFSD and
for development, demonstration and evaluation of each of the
technologies under consideration. The conferees further direct
that of the funds authorized to be appropriated for the MFSD
program in fiscal year 1998, not more than 50 percent may be
obligated until the plan is provided to the Congress.
 The conferees also direct that any program to convert the
MFSD to an operational surface combatant will require
completion of a Milestone II/IV review and decision by the
Secretary of Defense that formally addresses the same issues
regarding the requirement and program for the MFSD that have
been previously raised by the congressional defense committees
with regard to the arsenal ship.
Multi-purpose processor
 The budget request included $42.3 million in PE 64503N
for SSN-688 and TRIDENT modernization, including $33.5 million
for submarine sonar improvement. However, the budget request
included no funds for the multi-purpose processor (MPP).
 The House bill would authorize an increase of $15.0
million for advanced development and rapid introduction of the
MPP into the U.S. submarine fleet.
 The Senate amendment would authorize an increase of $25.0
million above the budget request in PE 64503N to be used as an
SBIR follow-on for advanced development of MPP transportable
software technology, technology insertion, advanced processor
software builds, and for providing MPP units and training
throughout the fleet and the Navy research and development
community.
 The conferees agree to authorize an increase of $15.0
million for the SBIR follow-on for advanced development of MPP
transportable software technology, technology insertion,
advanced processor software builds, and for providing MPP units
and training.
Advanced submarine tactical electronic combat system
 The budget request included $311.1 million in PE 64558N
to continue engineering and manufacturing development for the
New Attack Submarine (NSSN), including $95.8 million for NSSN
combat system development.
 The House bill would authorize an increase of $17.0
million in PE 64558N to restore the deferred elements of the
advanced submarine tactical electronic combat system (ASTECS)
and the integrated electronic support measures mast (IEM),
ASTECS/IEM program.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $8.0
million in PE 64558N to restore the deferred elements of the
ASTECS/IEM program.
CVN-77 research and development
 The budget request included $17.9 million in PE 64567N
for aircraft carrier contract design for the CVN-77.
 The House bill would authorize an increase of $17.0
million to accelerate the evaluation of maturing advanced
technologies for potential incorporation into the design of the
CVN-77.
 The Senate amendment would authorize an increase of $17.0
million in PE 63564N.
 The conferees agree to authorize an increase of $17.0
million in PE 64567N to be used only for CVN-77 research,
development, test and evaluation to accelerate the evaluation
of maturing advanced technologies for potential incorporation
into the design of CVN-77.
Ship self-defense system
 The budget request included $132.3 million in PE 64755N
for the Navy's ship self defense program including $8.2 million
for continued development of the NULKA active countermeasures
decoy.
 The House bill would authorize an increase of $8.6
million to activate the integrated ship self-defense test site
at Wallops Island, and would direct the Secretary of the Navy
to provide $6.0 million from available funds to refurbish and
install an AN/SPS-48E air search radar at the test site. The
House bill would direct the Secretary of the Navy to reassess
the requirement for close-in defense of Navy surface ships and
report the results of the assessment and the plan for meeting
the requirement to the congressional defense committees by
February 28, 1998. Fiscal year 1998 funds would not be
authorized to be obligated for the rolling airframe missile
(RAM) upgrade program until 30 days after the congressional
defense committees receive the Secretary's report.
 The Senate amendment would authorize an increase of $34.0
million in PE 64755N, including:
 (1) $19.0 to pursue the system integration needed
 to integrate the cooperative engagement capability
 (CEC), the advanced combat direction system (ACDS), and
 the ship self-defense system (SSDS) local area networks
 to create a singletactical picture and a central
integrated combat direction system;
 (2) $2.0 million for continued development of the
 NULKA decoy; and
 (3) $13.0 million for accelerating the infrared
 search and track program (IRST).
 The conferees agree to authorize the following ship self-
defense increases to PE 64755N:
 (1) $10.0 million to pursue the system integration
 needed to integrate the cooperative engagement
 capability (CEC), the advanced combat direction system
 (ACDS), and the ship self-defense system (SSDS) local
 area networks to create a single tactical picture and a
 central integrated combat direction for a quick
 reaction combat capability (QRCC);
 (2) $4.0 million to activate the integrated ship
 self-defense test site at Wallops Island;
 (3) $2.0 million for continued NULKA development;
 and
 (4) $4.0 million to accelerate the IRST program.
 The conferees direct the Secretary of the Navy to assess
the requirement for close-in defense of Navy surface ships as
discussed in the House report (H. Rept. 105-132), and to report
the results of that assessment and the plans for meeting the
requirement to the congressional defense committees by February
28, 1998.
Safety and survivability enhancements
 The budget request included $263.9 million in PE 65864N
for test and evaluation support.
 The House bill would authorize an increase of $2.0
million to continue the program for procurement, test, and
alveolation of commercial off-the-shelf non-development items
(COTS NDI) that have high potential for contributing to safety
of flight, fire fighting, damage control, emergency
preparedness ashore, survival at sea, and chemical/biological
warfare defense. The additional funds would permit the program
to assess COTS NDI that are new to the industrial marketplace.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $1.0
million in PE 65864N for Navy safety and survivability
enhancements.
E-2 eight-blade composite propeller system
 The budget request included $64.9 million in PE 24152N
for development of pre-planned product improvements in E-2C
aircraft and weapon system capabilities, involving $39.4
million for E-2C mission system improvements.
 The House bill would authorize an increase of $10.0
million to initiate a 24 month program for development and
demonstration of an eight-blade composite propeller system for
the E-2C.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize the budget request. The
conferees understand that the Navy has advertised for bids and
plans to award a contract to develop a new eight-blade
composite propeller for the E-2C and C-2A aircraft to address
existing system limitations and reduce maintenance and
operations costs. The conferees direct the Secretary of the
Navy to ensure that the solicitation and contract award process
for the award of such a contract complies with Federal
Acquisition Regulations.
Battle force tactical trainer
 The budget request included $59.0 million in PE 24571N
for consolidated training systems development, including $2.9
million for continued development of the battle force tactical
training (BFTT) system.
 The House bill would authorize an increase of $5.0
million for the integration of ship and battle force electronic
surveillance systems into the BFTT system.
 The Senate amendment would authorize the budget request.
 The Senate recedes.
Joint tactical combat training system
 The budget request included $59.0 million in PE 24571N
for consolidated training systems development, including $33.6
million for continued development of the joint tactical combat
training system (JTCTS). The JTCTS is a Navy-led, joint Air
Force/Navy program for the development of fixed, transportable,
and mobile range instrumentation for shore-based tactical air
crew training and for deployable, at-sea naval expeditionary
force training.
 The House bill would authorize a reduction of $27.5
million to the budget request for JTCTS and would direct the
Secretary of the Navy, in coordination with the Secretary of
the Air Force, to conduct an assessment of the JTCTS
requirement and development program and report the results of
the assessment to the congressional defense committees by
December 31, 1997.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize the budget request for
the JTCTS program. The conferees understand that JTCTS is an
Acquisition Category and an Office of the Secretary of Defense
(OSD) special interest program, and that a thorough assessment
and baseline review of the program was successfully completed
in May 1997 by the Secretary of the Navy, the Secretary of the
Air Force, a senior OSD review team and the Defense Test and
Training Steering Group. The conferees further understand that
the Navy Fleet commanders in chief have endorsed the JTCTS as
their number two training range priority. The conferees also
understand that the design of JTCTS provides a neck-down
strategy for replacement of existing legacy training and test
range instrumentation that will result in considerable savings
when the planned transition to JTCTS begins in fiscal year
2000. The conferees strongly support the development and
fielding of common training and test range instrumentation
systems for the Air Force andthe Navy and encourage the
Secretary of Defense to ensure the maintenance of the schedule for
development of JTCTS. The results of the program assessment directed in
the House Report (H. Rept. 105-132) and any revisions to the program
baseline, funding requirements, and schedule should be forwarded to the
congressional defense committees by January 31, 1998.
Marine Corps communications systems
 The budget request included $38.3 million to support
development of Marine Corps communications systems.
 The House bill would authorize an increase of $9.9
million to support development of Marine Corps communication
system requirements. Of this amount, $2.0 million was for the
tactical hand-held radio; $1.5 million was for tactical remote
sensors; $0.7 million was for Marine common hardware suite
(MCHS); $1.0 million was for the tactical electronic
reconnaissance processor and intelligence systems; $5.0 million
was for close-range unmanned aerial vehicle (UAV) data links;
and a $0.3 million decrement was for the TENCAP program.
 The Senate amendment would authorize an increase of $0.7
million for MCHS.
 The conferees agree to authorize an increase of $7.0
million for a total of $45.3 million in PE 26313M. Of this
amount, $2.0 million is for the tactical hand-held radios and
$5.0 million is for the close-range UAV data link.
Marine Corps ground combat/supporting arms systems
 The budget request included $12.6 million for Marine
Corps ground combat system development initiatives.
 The House bill would authorize an increase of $5.0
million in PE 26623M. Of this amount, $4.3 million would be
used to integrate and test the AN/VVR-1 laser warning receiver
on the M1A1 Abrams tank and $0.7 million would be used to
support the development of Marine Corps clothing requirements.
 The Senate amendment would support the budget request.
 The conferees agree to authorize an increase of $2.1
million in PE 26623M for the integration and testing of the AN/
VVR-1 laser warning receiver on the Marine Corps M1A1 tank.
Manufacturing technology programs
 The budget request included no funds for the Navy's
manufacturing technology (MANTECH) program.
 The House bill would authorize funding for the MANTECH
program through section 211 of Title II, as noted elsewhere.
 The Senate amendment would authorize an increase of $50.0
million in PE 78011N in order to address funding shortfalls in
the MANTECH program for fiscal year 1998. The Senate amendment
also required the Secretary of the Navy to provide a report to
the congressional defense committees on his plan to strengthen
and stabilize funding for the Navy MANTECH program.
 The conferees agree to an increase of $55.0 million in PE
78011N for the MANTECH program. The conferees are once again
disappointed in the Navy's budget request for the manufacturing
technology (MANTECH) program. The program has traditionally
focused on making weapon systems and equipment more affordable
through the application of advanced manufacturing methods to
weapon systems production. In this time of severe budget
constraints, the conferees expect the Navy to make every effort
to pursue programs directed at lowering the long-term cost of
weapon systems.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $14,451.4 million for Air Force, Research and
Development in the Department of Defense. The House bill would
authorize $14,659.7 million. The Senate amendment would
authorize $14,302.3 million. The conferees recommended an
authorization of $14,338.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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Integrated High Payoff Rocket Propulsion Technology
 The budget request included $48.1 million for rocket
propulsion technology in the Integrated High Payoff Rocket
Propulsion Technology (IHPRPT) initiative programs.
 The House bill would authorize $57.6 million for IHPRPT
programs, an increase of: $6.0 million to PE 62601F; $1.5
million to PE 63302F; $1.0 million to PE 62111N; and $1.0
million to PE 63217N.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize $55.4 million for IHPRPT
initiative programs, an increase of: $4.8 million to PE 62601F;
$1.5 million to PE 63302F; and $1.0 million to PE 63217N.
Military Spaceplane
 The budget request included no funds for the Military
Spaceplane technology program.
 The House bill would authorize an increase of $15.0
million in PE 63302F for the Military Spaceplane program.
 The Senate amendment would authorize an increase of $10.0
million in PE 63401F for the Military Spaceplane program.
 The conferees agree to authorize an increase of $10.0
million for the Military Spaceplane program in PE 63401F.
 Although the National Space Launch Policy assigns to NASA
the lead for reusable launch vehicle development, the
Department of Defense has been participating in such activities
for many years. The Air Force has developed a military
spaceplane program to complement NASA's efforts while focusing
on specific military requirements and applications, a
responsibility that does not reside with NASA. The Commander-
in-Chief of U.S. Space Command is in the process of identifying
military requirements for such a program and the Air Force has
established a program office and a new program element to
manage this activity. The Air Force is also working to include
funding in the Future Years Defense Program for this effort.
The conferees do not view these actions as duplicative of
NASA's work on reusable launch vehicles.
 The conferees believe that the Department of Defense
should begin to define a military spaceplane concept that meets
legitimate military requirements in the future while exploiting
technological progress made in NASA's reusable launch vehicle
program. The conferees direct the Secretary of Defense to
provide a report describing the status of this effort to the
congressional defense committees by February 15, 1998.
Solar thermionics orbital transfer vehicle
 The budget request included no funds for the solar
thermionics orbital transfer vehicle program.
 The House bill would authorize an increase of $20.0
million in PE 63401F for the solar thermionics orbital transfer
vehicle program.
 The Senate amendment would authorize an increase of $10.0
million for this program.
 The conferees agree to authorize an increase of $7.5
million in PE 63401F for the solar thermionics orbital transfer
vehicle.
 The conferees have supported thermionics technology
development for space applications. The solar powered orbital
transfer vehicle has been identified by the Air Force as a
Third Millennium initiative. This program combines thermionic
technology for electricity production and thermal propulsion
which can be used to move spacecraft to higher or new orbits.
Joint air-to-surface standoff missile/standoff land attack missile-
 expanded response
 The budget request included $9.6 million in PE 64312N
and $203.3 million in PE 27325F for development of the Air
Force/Navy Joint Air to Surface Standoff Missile (JASSM)
program and $28.9 million in PE 64603N to continue development
of the Navy's Standoff Land Attack Missile-Enhanced Response
(SLAM-ER) program. The request also included $21.7 million for
procurement of 22 SLAM-ER missiles for the Navy.
 The House bill and the Senate amendment would authorize
the budget request for JASSM and for SLAM-ER.
 The conferees direct the Secretary of Defense to include
SLAM-ER plus and the two alternative systems that are funded in
the JASSM program in the Analysis of Alternatives for JASSM.
 Accordingly, the conferees agree to authorize $5.5
million in PE 64321N and $170.0 million in PE 27325F to
continue the JASSM program, $28.9 million in PE 64603N to
continue the development of SLAM-ER, and $21.7 million for
SLAM-ER procurement.

 JOINT AIR-TO-SURFACE STANDOFF MISSILE/STANDOFF LAND ATTACK MISSILE
 [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
 Budget Conference
 Program element and description request HNSC SASC agreement Change
----------------------------------------------------------------------------------------------------------------
PE64312N--Tri-Service Standoff Attack Missile............... 9.6 9.6 9.6 5.5 -4.1
PE27325F--Joint Air-to-surface standoff missile............. 203.3 203.3 203.3 170.0 -33.3
PE64603N--Unguided Conventional Air-launched Weapons (SLAM
 ER)........................................................ 28.9 28.9 28.9 28.9 ........
WPN line 18--Harpoon Mods (SLAM ER)......................... 21.7 21.7 21.7 21.7 ........
 ---------------------------------------------------
 Total................................................. 263.5 263.5 263.5 226.1 -37.4
----------------------------------------------------------------------------------------------------------------

 The conferees note that the lack of agreement between the
Navy and the Air Force on the conduct of the JASSM program
calls for clear guidance from the Secretary of Defense. The
Secretary has four obvious alternatives to examine that could
have entirely different effects on future budgets.
 (1) Develop JASSM to meet the operational needs of the
Navy and the Air Force, with SLAM-ER not procured beyond an
interim capability.
 (2) Continue the JASSM program as a joint program for
both the Navy and Air Force, while the Navy continues a
separate development of SLAM-ER as currently planned.
 (3) Develop separate programs for the Navy and the Air
Force, with SLAM-ER as the Navy choice, and JASSM as the Air
Force selection.
 (4) Develop SLAM-ER as the single program for both the
Air Force and the Navy.
 The conferees direct the Secretary of Defense to review
the SLAM-ER and JASSM programs and alternatives outlined above
and to report to the congressional defense committees within 60
days of the enactment of this Act.
Major test and evaluation investment
 The budget request included $47.3 million in PE 64759F
for major test and evaluation investment.
 The House bill would authorize an increase of $14.8
million for range improvement program/modernize range C41
capabilities.
 The Senate amendment would authorize a decrease of $6.0
million for infrastructure reduction.
 The conferees agree to authorize an increase of $10.0
million for the range modernization described in the House
report (H. Report 105-132). The conferees also agree to a
general reduction of $3.0 million in PE 64759F.
Smart monitoring system
 The budget request included $5.9 million for pollution
prevention in PE 65854F.
 House bill would authorize an additional $5.0 million in
PE 65854F to expand Air Force demonstration efforts related to
the smart monitoring system, a real-time monitoring technology
for soil and groundwater contamination.
 The Senate amendment would authorize the budget request.
The conferees agree to authorize an increase of $4.0 million in
PE 65854F for the smart monitoring system.
Rocket Systems Launch Program
 The budget request included $8.0 million in PE 65860F
for the Rocket Systems Launch Program (RSLP).
 The House bill would authorize an increase of $25.0
million for RSLP to support the launch of an Atmospheric
Intercept Technology (AIT) demonstration payload.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $20.0
million for RSLP in support of the AIT program. The conferees
direct the Ballistic Missile Defense Organization and the Air
Force to develop a coordinated implementation plan for
executing the RSLP and AIT budgets in order to maximize the
benefit to the AIT program.
Cruise missile defense
 The budget request included no funds to begin
transitioning sensor technology from the Defense Advanced
Research Projects Agency (DARPA) to the Air Force for insertion
into the Airborne Warning and Control System (AWACS) or the
Joint Surveillance Target Attack Radar System (JSTARS) for
cruise missile defense.
 The House bill would authorize the budget request.
 The Senate amendment would authorize increases of $10.0
million to PE 27417F to begin the necessary upgrades to AWACS,
and $10.0 million to PE 27581F to begin necessary upgrades to
JSTARS.
 The conferees agree to authorize an increase of $3.0
million in PE 27581F to begin necessary upgrades to JSTARS for
cruise missile defense.
 Given the growing threat posed by cruise missiles, the
conferees continue to support development of a comprehensive
cruise missile defense architecture, integrated into DOD's
overall air and theater missile defense efforts. Because
counter cruise missile technologies have matured at DARPA, and
because DARPA funding to support key sensor technologies ends
in fiscal year 1998, the conferees strongly urge the Air Force
to begin to integrate these technologies into operational
platforms, specifically into the AWACS and JSTARS platforms.
The conferees expect the Air Force to assume these two
important initiatives. To support these efforts, the conferees
encourage the Air Force to prepare expeditiously the report on
cruise missile defense directed in the statement of managers
accompanying the conference report on H.R. 2266 (H. Rept. 105-
265). The conferees understand that the Air Force's report
could conclude that the Air Force should apply additional funds
to cruise missile defense upgrades to the AWACS or JSTARS
programs during fiscal year 1998 beyond those approved in this
Act. If that is the conclusion of the report, the conferees
would be willing to entertain a request to reallocate funds
within the AWACS or JSTARS programs, or to reprogram funds from
other activities.
Overview
 The budget request for fiscal year 1998 contained an
authorization of $9,069.7 million for Defense-Wide, Research
and Development in the Department of Defense. The House bill
would authorize $9,611.0 million. The Senate amendment would
authorize $9,796.8 million. The conferees recommended an
authorization of $9,546.1 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.
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University research initiatives
 The budget request included $237.7 million in PE 61103D
for university research initiatives including $10.0 million for
the Defense Experimental Program to Stimulate Competitive
Research (DEPSCoR).
 The House bill would authorize a decrease of $13.0
million in PE 61103D: an increase of $10.0 million for
(DEPSCoR); and a decrease of $23.0 million.
 The Senate amendment would authorize $20.0 million for
DEPSCoR within the amount of the budget request.
 The conferees agree to authorize an increase of $10.0
million in PE 61103D for DEPSCoR in addition to the $10.0
million in the amount of the budget request. The conferees also
agree to a reduction, without prejudice, of $20.0 million in PE
61103D.
Next generation internet
 The budget request included $40.0 million in PE 62110E
for the Defense Advanced Research Projects Agency (DARPA)
component of the Next Generation Internet (NGI) program.
 The House bill would authorize an increase of $15.0
million in PE 62110E for specific connectivity, functionality,
services, and software among the applications communities and
regional consortia to maximize the value of the services
deployed under the NGI. The House bill would also direct the
use of competitive procedures in the award of contracts,
grants, or other transactions under the program and would
encourage the use of cost-sharing where feasible.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $2.0
million in PE 62110E for the purposes discussed in the House
report (H. Rept. 105-132). The conferees endorse the NGI
program and support the concept of involving the applications
communities, including federal agencies, state and local
governments, academia, and the private sector, to incorporate
networking technologies developed under the program to achieve
capabilities beyond those of the current Internet
infrastructure. The conferees also support the formation of
cooperative agreements within the regional consortia
established under the program to leverage the knowledge,
skills, and methods of the individual members from government,
industry, and academia. The conferees encourage DARPA to
consider supporting, under the NGI program, industry and
university consortia investigating and demonstrating ultra-high
speed, optical time-division-multiplexed technologies for
networks and interchanges.
Chemical and biological defense program
 The budget request included $530.9 million for the
chemical and biological defense program ($320.9 million for
research, development, test and evaluation activities and
$210.0 million for procurement) and $61.0 million for the
Defense Advanced Research Projects Agency (DARPA) biological
defense program.
 The House bill would authorize an increase of $16.6
million for the chemical/biological defense program in the
following activities: a $10.8 million increase in PE 62384BP to
continue the SAFEGUARD proof-of-concept multi-spectral sensor
program; a $1.5 million increase in PE 63384BP for vaccine
advanced development; a $858,000 increase in PE 64384BP for
vaccine development and a $5.0 million increase in PE 63884BP
to support on-going development efforts in detectors,
decontamination equipment, and protective equipment for the
Chemical-Biological Quick Reaction Force (CBQRF) and its
components.
 The Senate amendment would authorize an increase of $6.5
million for the chemical-biological defense research and
development program for the following activities: $2.0 million
for the development of a joint service prototype hybrid
integrated sensor array for chemical and biological point
detection; $4.5 million to meet unfunded requirements for
biological detectors for the Chemical-Biological Incident
Response Force (CBIRF); would make $1.5 million available from
funds requested for PE 62383E for a study on the use of
antibodies as medical defenses against biological agents; and
would reduce the budget request for PE 62383E by $6.5 million.
Additionally, the amendment would recommend that $16.1 million
of fiscal year 1997 funds, identified by the Department of
Defense as excess to the program because of the inability to
execute the assembly of biological integrated defense systems
(BIDS) until the end of fiscal year 1999, be used instead for
unfunded research, development and procurement efforts in the
chemical-biological defense program, counterproliferation and
including counterterrorist efforts to protect against the use
of weapons of mass destruction.
 The conferees agree to authorize an increase of $12.4
million to meet shortfalls in the chemical and biological
defense program for research and development of detection
capabilities, to include the following: $10.5 million in PE
62384BP, of which $3.0 million shall be available for the
SAFEGUARD program; and a $2.0 million increase in PE 61384BP to
increase efforts in research and development of chemical/
biological detection capabilities. The conferees also agree to
a $6.5 million reduction in PE 62383E.
 To close gaps and funding shortfalls in medical defenses
against biological agents, the conferees direct that $1.5
million in PE 63384BP and $858,000 in PE 64384BP be made
available for vaccine development efforts, and that $1.5
million in PE 62383E be made available to study the use of
therapeutic human antibodies as medical defenses against
biological agents. Additionally, the conferees direct the
Secretary of Defense to submit the report required by the
Senate report on the National Defense Authorization Act for
Fiscal Year 1997 (S. Rept. 104-267) on the utility and possible
benefits of this technology, by March 31, 1998.
 The conferees have reviewed the Department of Defense
March 1997 annual report to Congress on the nuclear,
biological, and chemical defense program. The conferees
understand that the Department has responded to all
recommendations in the General Accounting Office's report
NSIAD-96-102 ``Chemical and Biological Defense: Emphasis
RemainsInsufficient to Resolve Continuing Problems.'' In
addressing the recommendations of the GAO, the conferees believe that
the Department is now better prepared to address the shortcomings that
still exist in the U.S. armed forces' chemical-biological defense
posture.
 However, funding constraints in the Department's budget
request could delay modernization and affect the training and
readiness of the force. The conferees understand that the Joint
Senior Leaders Course and the Toxic Agent Leader Training
Course have been dropped from the Army Chemical School's
training course list because of funding constraints. The
conferees also understand that the Department lacks a mechanism
to provide adequate information on the current status of
chemical-biological defense training, equipment, and readiness.
The conferees strongly recommend the incorporation of an
assessment of chemical-biological defense training and
readiness into the unit readiness reporting system and direct
the Department of Defense to report to the congressional
defense committees on steps that will be taken, in lieu of
reinstating the training courses, to ensure that chemical-
biological defense specialists maintain their expertise, and
how units and senior leaders in the armed forces will maintain
their proficiency in chemical-biological matters.
 The Secretary of Defense recommended in the Quadrennial
Defense Review that the Department increase funding by
approximately $1.0 billion over the program plan on
counterproliferation, particularly for protective measures
against chemical weapons. In response to that recommendation,
the conferees expect that increased funding provided in fiscal
year 1998 for chemical and biological defenses will be utilized
in accordance with requirements identified as shortfalls by the
Joint Staff and the Counterproliferation Program Review
Committee (CPRC). Additionally, the conferees expect the fiscal
year 1999 budget request, and subsequent budget requests, to
reflect the recommendations contained in the QDR for increased
funding levels for the chemical-biological defense program.
 Despite congressional direction contained in the National
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160) that management and oversight of the chemical and
biological warfare defense program and the chemical and
biological medical defense be conducted by a single executive
agent and program manager, the conferees understand from the
Counterproliferation Program Review Committee's May 1997
``Report on Activities and Program for Countering Proliferation
and NBC Terrorism'' that `` * * * beginning in FY98, [the
Defense Advanced Research Projects Agency (DARPA) biological
warfare defense program] will no longer be incorporated into
the CBD [chemical-biological defense] Program management and
oversight structure.'' The conferees direct the Secretary of
Defense to ensure that the DARPA biological warfare defense
program is coordinated and integrated under the program
management and oversight of the Department's chemical-
biological defense program.
 The conferees understand that the Department's policies
on anthrax vaccination of U.S. armed forces and support for
other than U.S. armed forces are awaiting final approval, and
that these decisions will affect total funding, vaccine
production, and storage requirements. The conferees also note
the impending award of a prime systems contract to develop new
biological defense vaccines, pursue vaccine licensing, and
produce stockpile vaccines to meet the Department's
requirements.
 The conferees understand that the Department of Defense
is currently dependent upon a single source of supply for
permeable chemical protective garment materials used in the
joint service chemical protective suit and related chemical
protective garments, and believe that the Department of Defense
should consider taking those actions necessary to qualify
additional sources of supply for these materials. The conferees
direct the Secretary of the Army, as executive agent for the
chemical-biological defense program, to report to the
congressional defense committees on any plans to qualify
additional sources for these materials.
 The conferees direct the Secretary of Defense to address
the above issues as specific areas of interest in the next
annual report to Congress on the NBC defense program.
Tactical technology
 The budget request included $157.3 million in PE 62702E
for tactical technology programs.
 The House bill would authorize a decrease of $43.9
million in PE 62702E.
 The Senate amendment would authorize an increase of $3.0
million to provide for lethality demonstration and the
definition of a tactical configuration of the small low-cost
interceptor device (SLID).
 The conferees agree to authorize a decrease of $16.0
million in PE 62702E: a general decrease of $10.0 million; a
decrease of $3.0 million for the compact laser program; and a
decrease of $3.0 million for chemically specific detection. The
conferees also agree to authorize $3.0 million of funds
available in PE 62702E for facial recognition technology.
 The conferees urge the Defense Advanced Research Projects
Agency to fund the SLID program in a manner to provide for the
greatest likelihood of a rapid, successful transition to the
Army.
Integrated command and control
 The budget request included $37.0 million in PE 62708E
for integrated command and control technology.
 The House bill would authorize an increase of $23.0
million for flat panel display initiative/high definition
systems.
 The Senate amendment would authorize an increase of $18.0
million for flat panel display technology.
 The conferees agree to authorize an increase of $12.0
million in PE 62708E for flat panel display technology. The
conferees recommend that the program place increased emphasis
on the demonstration of flat panel displays for various
applications by the military services in order to facilitate
the transition of the program to the services for military
applications.
Materials and electronics technology
 The budget request included $192.1 million in PE 62712E
for materials and electronics technology.
 The House bill would authorize an increase of $7.5
million in PE 62712E for 3-D microelectronics.
 The Senate amendment would authorize an increase of $15.5
million in PE 62712E: $1.0 million for hard carbon coatings;
$7.5 million for seamless high off-chip connectivity (SHOCC);
and $7.0 million for mixed mode electronics multitechnology
insertion (MIME).
 The conferees agree to authorize the following increases
in PE 62712E: $5.0 million for 3-D microelectronics; $1.0
million for hard carbon coatings; $6.0 million for SHOCC; $7.0
for MIME; $6.0 million to continue the program for applied
research in extreme ultraviolet lithography and fabrication of
nanoelectronic structures as recommended in the House report
(H. Rept. 105-132); $4.0 million to accelerate the development
of life support trauma and transport (LSTAT) and the joint
service program for the test of the LSTAT that is being led by
the Army as recommended in the House report (H. Rept. 105-132),
and $3.0 million for the development of technologies for
cryogenic electronics and high temperature superconductivity as
recommended by the House report (H. Rept. 105-132).
 With regard to the LSTAT program, the conferees agree
with the requirement in the House report (H. Rept. 105-132),
which directs the Secretary of the Army to submit a report on
the plan for completing the joint service test program and
plans for fielding the LSTAT and other advanced battlefield
life support and evacuation systems to the congressional
defense committees with the submission of the defense budget
request for fiscal year 1999.
Explosives demilitarization technology
 The budget request included $12.2 million for the
explosives demilitarization program (PE 63104D).
 The House bill would authorize an increase of $3.0
million to maintain the level of funding necessary to permit
the acceleration of promising technologies and the evaluation
of additional alternative technologies in the explosives
demilitarization program (PE 63104D) established in the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106).
 The Senate amendment included a provision (sec. 235) that
would direct the Secretary of Defense to conduct an explosive
munitions demilitarization demonstration program, and using
competitive procedures, conduct a demonstration using an
existing, commercially available blast chamber technology as an
alternative to open burning, open pit detonation of munitions;
require the Secretary of Defense to submit to Congress, along
with the fiscal year 2000 budget, a report on the results of
the demonstration program and assessment of the relative
benefits of the blast chamber technology with regard to levels
of emissions and noise, and a cost benefit analysis of this
technology. The provision would increase the budget request for
the explosives demilitarization technology program by $6.0
million for the demonstration program and reduce by $6.0
million the budget request for the Army account for special
equipment for user testing.
 The Senate recedes.
 The conferees agree to authorize an increase of $4.0
million for the munitions standardization, effectiveness and
safety program (PE 65805A) which shall be used for the
explosives demilitarization technology program (PE 63104D) to
maintain the level of funding necessary to permit the
acceleration of promising technologies and to evaluate
alternative technologies. The conferees understand that
commercial technology that utilizes blast chamber technology is
available as a potential alternative technology to demilitarize
old conventional ammunition. The successful demonstration of
this technology could reduce the Army's reliance on open
burning and open detonation.
 The conferees direct that, from the authorized funds
available to the program in fiscal year 1998, the Secretary of
Defense shall conduct a demonstration program utilizing
commercially available blast chamber technology and provide a
report to the congressional defense committees no later than
March 1, 1999 on the results of the demonstration program. The
program shall be conducted using competitive procedures. The
report shall include an assessment of the relative benefits of
utilizing a blast chamber technology and the open burning, open
pit detonation process with regard to the levels of emissions
and noise that results from the use of these processes and a
cost benefit analysis of this technology.
Counterterror technical support program
 The budget request included $34.8 million for the
counterterror technical support program.
 The House bill would authorize $41.8 million, a $7.0
million increase for safety devices and facial recognition
technology.
 The Senate amendment would authorize a $20.0 million
increase for research and development activities on structural
response and mitigation, counterterrorist explosive research,
demonstration of non-intrusive inspection technologies and
facial recognition technology.
 The conferees agree to authorize an increase of $3.0
million for the counterterror technical support program for
efforts to develop innovative technologies to protect U.S.
forces and infrastructure against acts of terrorism. The
conferees note that $3.0 million is available for the facial
recognition technology program within the defense tactical
technology program (PE 62702E).
 Collaborative efforts with allies who have demonstrated
capabilities to counter terrorist acts, such as Israel and the
United Kingdom, should remain a high priority for the United
States. The tragic deaths of U.S. forces in Saudi Arabia as a
result of terrorist attacks on structures where U.S. armed
forces lived and worked highlight the urgent need for the
Department of Defense (DOD) to examine options to retrofit
existing structures and to develop design guidelines for new
and existing structures. The conferees support recent
collaborative efforts between the United States, Israel, and
the United Kingdom, to strengthen existing structures against
terrorist and ballistic missile attacks.
 The budget request included $13.0 million in the
physicalsecurity equipment program (PE 63228D) to test and evaluate
commercial equipment for force protection. The conferees believe that
fiscal year 1998 funds in this program should be used to evaluate
commercially available technology that may provide the DOD with options
to retrofit existing structures, which would provide increased
protection to U.S. forces against terrorist attacks.
 While Congress has supported the funding for a Pulsed
Fast Neutron Analysis (PFNA) technology program in prior years,
the conferees are concerned about the Department's continued
failure to request funds for this activity. Based on issues
raised by a recent General Accounting Office report on the PFNA
system technology, the conferees agree with the recommendations
in the House report (H. Rept. 105-32) that direct the Secretary
of Defense and the Secretary of Treasury to conduct an
assessment of the operational requirements for a PFNA cargo
inspection system, and report to the Congress on the results of
that assessment and the other issues raised by the House by
December 31, 1997. Should there be a joint recommendation to
continue the program, the conferees direct the Department to
notify the congressional defense committees of its intention to
use fiscal year 1998 funds in this program for that purpose.
Domestic emergency response to threats of terrorist use of weapons of
 mass destruction
 The budget request included $170.2 million for key
Department of Defense programs to counter paramilitary and
terrorist threats involving weapons of mass destruction. This
total included $49.5 million to improve emergency response
preparedness and coordination with state and local agencies
through First Responder training, interagency exercises and
technical assistance.
 The House bill would authorize increases of $2.0 million
in the counterterror technical support program (PE 63122D),
$5.0 million in the chemical/biological defense program (PE
63884BP), and a total of $12.0 million in the
counterproliferation support program (PE 65160D) for
improvements in emergency response force equipment and training
for response to potential terrorist use of weapons of mass
destruction.
 The Senate amendment would authorize the budget request.
The amendment would also make available, from the verification
and control technology activity of the Department of Energy
budget for other defense activities, $3.0 million for training
and related activities to prepare Federal, State, and local
First Responders to work effectively as part of the domestic
emergency response program.
 The House recedes.
 The National Defense Authorization Act for Fiscal Year
1997 (Public Law 104-201) directed the President to take
immediate action to enhance the capability of the Federal
government to prevent and respond to terrorist incidents
involving weapons of mass destruction, and to provide enhanced
support to improve the capabilities of state and local
emergency response agencies to prevent and respond to such
incidents at both the national and local levels. The
President's assessment and those actions taken at the
interagency level and within the Department of Defense are
detailed in the President's January 1997 report to the Congress
and in the Department of Defense May 1997 report to Congress,
``Domestic Preparedness Program in the Defense against Weapons
of Mass Destruction.''
 The conferees note the actions taken to date to enhance
emergency domestic preparedness and response to terrorist
nuclear, biological, or chemical attacks under the Department's
counterproliferation support program and the chemical-
biological defense program. The conferees support the
Department's budget request to continue these efforts in
domestic emergency response preparedness through First
Responder training and assistance to metropolitan area
authorities, improvement of the Department's rapid chemical and
biological response capabilities, and the conduct of
preparedness exercises in coordination with Federal, state, and
local agencies.
 Public Law 104-201 requires the Secretary of Defense to
establish and maintain at least one chemical-biological
domestic terrorism rapid response team. The conferees direct
the Secretary of the Army, as executive agent for the domestic
emergency response program, to ensure that the plans, programs,
and budget of the Chemical-Biological Quick Reaction Force
(CBQRF) and its components are reviewed to ensure full
coordination and integration of participating DOD assets. The
conferees also direct the Assistant to the Secretary of Defense
(Nuclear, Chemical, and Biological Defense Program) to ensure
that all research, development, and acquisition efforts in
support of the CBQRF and its components are fully integrated
and coordinated within the Department's chemical and biological
defense program.
 The conferees note that an interagency training strategy
is being developed that would initially focus training under
the domestic emergency response preparedness program on
professional emergency response organizations in the 27 cities
and metropolitan areas identified by the Federal Bureau of
Investigation as being at particularly high risk, and would
complete First Responder training for 126 major metropolitan
areas and cities within three years. The training program and
priorities must be coordinated with State emergency management
directors. The conferees agree with the overall need to
establish training priorities, but recommend that emphasis also
needs to be placed on training the local volunteer emergency
First Response organizations that make up the majority of the
nation's emergency response forces. The conferees also believe
that in addition to the ``train the trainer'' approach being
used in the existing program, an exportable training package
should be developed that is oriented toward the training of
volunteer emergency First Responders.
 The conferees endorse the use of training exercises to
test and improve consequence management response capabilities,
but believe that the exercise site requirements should be based
on the training and exercise needs of the agencies to be
exercised, site capabilities, frequency of use, and proximity
to participating agencies. The conferees encourage the
development of an overall coordinated training exercise
strategy similar to that developed for training by the Senior
Interagency Group.
 Responding to domestic emergencies has been identified in
the report of the Quadrennial Defense Review (QDR) as an
appropriate mission for the National Guard. Consistent with the
President'sJanuary 1997 report to the Congress and the May 1997
Department of Defense report on ``Domestic Preparedness Program in the
Defense against Weapons of Mass Destruction,'' the conferees direct the
Secretary of Defense to report to the congressional defense committees
on the status of any plans for assigning the National Guard a role in
countering chemical and biological terrorism in the United States. The
report should define any such missions of the National Guard and how
that role complements other Federal, State, and local authorities with
similar responsibilities; the cost for developing the capability for
National Guard personnel to train State and local First Responders; the
cost for chemical and biological technology and equipment; and the need
to develop appropriate response plans, while avoiding unnecessary
duplication.
 The conferees direct the Secretary of Defense, in
coordination with the Director of the Federal Emergency
Management Agency and the Director of the Federal Bureau of
Investigation, to provide an annual assessment of progress in
the domestic emergency response preparedness program. The
report should be submitted to the congressional defense
committees beginning with the fiscal year 1999 budget request
and extending through fiscal year 2001.
Counterproliferation support program
 The budget request included $65.3 million for the
counterproliferation support program (PE 63160D).
 The House bill would authorize an increase of $3.0
million to continue the counterproliferation mission analysis
and planning system (CAPS).
 The Senate amendment would authorize an increase of $20.0
million to the budget request for the following activities:
$3.0 million for the high frequency active auroral research
program (HAARP), $1.0 million for development of a portable
trace element detection system; $6.0 million to continue the
SAFEGUARD proof-of-concept multi-spectral sensor program; and
$10.0 million to continue the CAPS program. In addition, the
amendment would recommend a $7.0 million increase to the budget
request for U.S. Special Operations Command (USSOCOM)
operations and maintenance for equipment to detect, and destroy
underground facilities, and for training activities to destroy,
render safe, transport or recover weapons of mass destruction
from deep underground structures.
 The conferees agree to authorize an increase of $10.0
million to the budget request for the counterproliferation
support program (PE 63160D) to continue CAPS ($7.0 million) and
HAARP ($3.0 million). The conferees also agree to a $7.0
million increase to the budget request for USSOCOM operations
and maintenance for WMD equipment and training.
 The conferees agree to a separate provision, described
elsewhere in this report, that would allow the Secretary of
Defense to reprogram up to $50.0 million from amounts
authorized for fiscal year 1998 for unfunded shortfalls in key
counterproliferation capabilities or other areas where more
counterproliferation progress can be achieved with additional
funding.
 In addition to the reprogramming notifications required
by law, the conferees direct the Secretary of Defense to notify
the congressional defense committees 30 days in advance of its
intent to obligate or expend fiscal year 1998 funds not
authorized by this Act for counterproliferation activities. The
notification shall include the purpose for which the funds are
to be utilized, and a certification that the activity addresses
a shortfall in existing and programmed capabilities to counter
the proliferation of weapons of mass destruction (WMD) or their
means of delivery, as identified by the Commanders in Chief
(CINCs) and the Counterproliferation Program Review Committee
(CPRC).
Ballistic Missile Defense Organization funding
 The budget request included approximately $2.6 billion
for the Ballistic Missile Defense Organization (BMDO) for
research, development, test, and evaluation (RDT&E). The budget
request also included $386.4 million in procurement funds
formerly managed by BMDO that were transferred to the military
services. As addressed elsewhere in this report, the conferees
have agreed to include a legislative provision requiring that
these procurement funds be transferred back to BMDO. In
addition, the conferees have agreed to specifically authorize
these procurement funds in their original BMDO program
elements. Consistent with these changes, the following
direction addresses these fiscal year 1998 procurement funds as
part of the budget request for BMDO. Funding direction
regarding BMDO military construction is located elsewhere in
this report. Specific programmatic and funding guidance is
provided below.

 BMDO FUNDING ALLOCATION
 [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
 Total
 Program element Budget request SASC change HNSC change Conf. change authorized
----------------------------------------------------------------------------------------------------------------
 RDT&E:
 Support Technology.......... 249.5 +188.4 +35.0 +171.0 420.5
 THAAD \1\................... 556.1 -202.7 +45.0 -150.0 406.1
 Navy Lower Tier............. 267.8 .............. +22.0 +22.0 289.8
 Navy Upper Tier............. 194.9 +80.0 +150.0 +150.0 344.9
 MEADS....................... 48.0 .............. .............. .............. 48.0
 BPI......................... 12.9 +5.0 \2\ -12.9 +3.5 16.4
 NMD......................... 504.1 +474.0 +474.0 +474.0 978.1
 Joint TMD................... 542.6 +34.0 \2\ -18.7 +39.0 581.6
 PAC-3 EMD................... 206.1 .............. .............. .............. 206.1
 Cooperative BMD............. .............. .............. +123.1 .............. ..............
 Procurement:
 TMD-BM/C3................... 20.1 .............. .............. .............. 20.1
 Navy Lower Tier............. 15.4 .............. .............. .............. 15.4
 PAC-3....................... 349.1 .............. .............. .............. 349.1
 -------------------------------------------------------------------------------
 BMDO Total................ 2,966.6 +578.7 +817.5 +709.5 3,676.1
----------------------------------------------------------------------------------------------------------------
\1\ Following submission of the budget request, the Department of Defense submitted a revised fiscal year 1998
 budget request for THAAD of $353.4 million for Dem/Val and no funds for EMD.
\2\ Transfer to Cooperative BMD.

 low cost launch technology

 The budget request included no funds to support low cost
launch technologies, such as pressure fed engine technology.
 The House bill would authorize an increase of $15.0
million in PE 63302F for development of the Scorpius low cost
launch concept.
 The Senate amendment would authorize an increase of $10.0
million in PE 63173C for low cost launch technology
development, including the Scorpius concept.
 The conferees agree to authorize an increase of $5.0
million in PE 63173C and an increase of $5.0 million in PE
63401F for low cost launch technology, including the Scorpius
and Excalibur concepts.

 theater high altitude area defense system

 The budget request included $556.1 million for the
Theater High Altitude Area Defense (THAAD) program, of which
$294.6 million was included in PE 63861C and $261.5 million was
included in PE 64861C. The Department of Defense, after an
analysis of the THAAD program by the Quadrennial Defense
Review, submitted an amended budget request of $353.4 million
in PE 63861C and no funding in PE 64861C.
 The House bill would authorize the original budget
request in PE 63861C and $306.5 million in PE 64861C.
 The Senate amendment would authorize $353.4 million in PE
63861C and no funds for THAAD in PE 64861C.
 The conferees agree to authorize $406.1 million in PE
63861C for THAAD and no funds in PE 64861C.
 The conferees express their continued strong support for
THAAD and believe that fielding THAAD as expeditiously as
possible is a matter of highest priority.
 The conferees understand that the funding added for THAAD
demonstration and validation will be used for extensive risk
reduction activities to put the program on sounder technical
and programmatic footing when it enters engineering and
manufacturing development (EMD) in fiscal year 1999.
 The conferees also support DOD efforts to contain program
cost growth that could result from schedule delays and
technical complications. The conferees expect the Secretary of
Defense to review the full range of cost control options
applicable to the EMD phase of the program, including, but not
limited to, options involving competition and leader-follower.
The conferees direct the Secretary of Defense to submit a
report on the results of this review to the congressional
defense committees by March 15, 1998.
 The conferees continue to note their concern over long
delays in the THAAD program. In the wake of the Gulf War,
Congress directed the deployment of effective theater missile
defenses at the earliest possible date. The THAAD program was
initiated in calendar year 1992 and deployment originally
planned for the mid-1990s. Yet BMDO now supports a 14-year
development program, with a first unit equipped(FUE) in
calendar year 2006, arguing that a 12-year development program entails
excessive programmatic and schedule risks.
 The conferees understand that the most recent THAAD
schedule supported by BMDO includes a number of opportunities
to accelerate the program, depending on the technical progress.
The conferees continue to believe that rapid deployment is
critical to meet well understood warfighter requirements, and
that every reasonable effort should be made to achieve an FUE
in calendar year 2004. The conferees direct the Secretary of
Defense to take all appropriate budgetary and programmatic
steps for fiscal year 1998 to ensure that the program can be
accelerated if opportunities arise to do so.
 The conferees are also concerned that a delay in the
program will adversely affect THAAD EMD and procurement funding
in the FYDP. The conferees direct the Secretary of Defense to
submit a FYDP that fully funds a THAAD program oriented toward
the earliest possible deployment, consistent with moderate
program risk.

 navy upper tier (theater wide)

 The budget request included $194.9 million in PE 63868C
for the Navy Upper Tier theater missile defense system.
 The House bill would authorize an increase of $150.0
million for the Navy Upper Tier program.
 The Senate amendment would authorize an increase of $80.0
million for the Navy Upper Tier program.
 The Senate recedes.
 The conferees are concerned that the Department of
Defense still has not thoroughly assessed the feasibility of
accelerating the currently planned Navy Upper Tier deployment
date of fiscal year 2008. Noting numerous administration
statements attaching high priority to TMD programs, the
conferees direct the Secretary of Defense to report to the
congressional defense committees no later than February 15,
1998, on the cost and technical feasibility of options for a
more robust Navy Upper Tier flight test program, the earliest
technically feasible deployment date, and costs associated with
such a deployment date.

 national missile defense

 The budget request included $504.1 million in PE 63871C
for the National Missile Defense (NMD) program. Following the
budget submission, and pursuant to the Quadrennial Defense
Review, the Secretary of Defense requested that the NMD budget
request be increased by $474.0 million for fiscal year 1998.
 The House bill and Senate amendment would authorize an
increase of $474.0 million for the NMD program.
 The conferees agree to authorize an increase of $474.0
million for the NMD program.
 The conferees have expressed concern for some time that
the NMD program has been underfunded. The Department of Defense
has acknowledged this funding shortfall and recommended an
increase of $474.0 million in fiscal year 1998, and
approximately $2.3 billion over the years of the Future Years
Defense Program (FYDP). The conferees note that this does not
include any funding for the actual deployment of an NMD system.
 Although the conferees are pleased that the Secretary of
Defense has sought to rectify NMD funding shortfalls, they are
disappointed that it has taken so long. Even with significant
congressional increases over the last two years, the NMD
program remains high risk, largely due to the administration's
failure to adequately fund robust testing activities.
Unfortunately, the addition of $474.0 million in fiscal year
1998 will do little in the near-term to compensate for this
problem. The conferees are concerned by the lack of detail
accompanying the Secretary of Defense's request to increase the
NMD program budget by $2.3 billion over the FYDP. In addition,
the conferees are not satisfied with the degree of information
provided to date on how past NMD funding increases have been
spent. Therefore, the conferees direct the Secretary of Defense
to submit a report to the congressional defense committees by
February 15, 1998, providing a detailed accounting of how NMD
funds have been spent since the beginning of fiscal year 1996
and a detailed plan for the allocation of NMD funding in the
FYDP. In addition, the Secretary shall provide a detailed
description of the cost estimating and cost control mechanisms
in place within DOD for the NMD program, and an assessment of
whether they are adequate.
 The conferees believe that BMDO should continue to
understand issues associated with sea-based NMD options. The
conferees are aware of analysis that shows that a version of
the Navy Upper Tier TMD system could be employed in an NMD
role. Therefore, the conferees direct the Director of BMDO to
submit a report to the congressional defense committees by
February 15, 1998, describing whether and how the Navy Upper
Tier program could be upgraded in the future to provide a
limited NMD capability. The report should address the technical
issues associated with a sea-based NMD option as well as costs
associated with such a concept. The report should also address
whether and, if so, how a sea-based NMD system could be
integrated into and supplement a ground-based NMD system,
whether and, if so, how a sea-based system would provide needed
additional capabilities in support of the requirements for the
existing NMD program, and whether such a system would comply
with the ABM Treaty.

 cooperative ballistic missile defense program

 The budget request included $38.7 million for the Arrow
Continuation Experiments/Arrow Deployability (ACES/ADP) program
(PE 63872C), $12.9 million for the Unmanned Aerial Vehicle
Boost Phase Intercept (UAV BPI) program (PE 63870C), and $16.5
million for the Tactical High Energy Laser (THEL) program (PE
63308A), all of which are U.S.-Israeli cooperative missile
defense programs. The budget request included no funding for
the Russian American Observation Satellite (RAMOS) program and
the Active Plasma Experiment (APEX) program, both of which are
cooperative Russian-American programs.
 The House bill would authorize $123.1 million in a new
BMDO program element (63XXXC) for cooperative international BMD
programs, including $48.7 million for the Arrow program, an
increase of $10.0million; the budget request for the UAV BPI
program; $38.2 million for THEL, of which $15.0 million was a funding
increase and another $6.7 million was to be funded by BMDO
administrative accounts; and $30.0 million for RAMOS and APEX.
 The Senate amendment would authorize $53.7 million for
Arrow in PE 63872C, an increase of $15.0 million; $17.9 million
for UAV BPI in PE 63870C, an increase of $5.0 million; $51.5
million for THEL in PE 63308A, an increase of $35.0 million;
and no funding for RAMOS or APEX.
 The conferees agree to authorize $50.7 million for Arrow
in PE 63872C, an increase of $10.0 million; $16.4 million for
UAV BPI in PE 63870C, an increase of $3.5 million; $51.0
million for THEL in PE 63308A, an increase of $34.5 million;
$13.0 million for RAMOS in PE 63173C; and $8.0 million for APEX
in PE 63173C.
 The House recedes on its initiative to create a new
cooperative BMD PE for fiscal year 1998. A legislative
provision to create a new cooperative BMD program element for
fiscal year 1999 is described elsewhere in this report. The
conferees expect that these programs and other appropriate
programs will be managed through this new cooperative BMD
program element.

 SPACE-BASED LASER

 The budget request included $28.9 million in PE 63173C
for the Space Based Laser (SBL) program.
 The House bill would authorize the budget request for the
SBL program.
 The Senate amendment would authorize an increase of
$118.0 million for the SBL program.
 The conferees agree to authorize an increase of $98.0
million for the SBL program, for a total of $126.9 million in
fiscal year 1998.
 The conferees strongly endorse the recommendation of
BMDO's SBL Independent Review Team (IRT) to proceed on a low
risk path leading to the launch of an ABM Treaty compliant
Readiness Demonstrator (RD) in fiscal year 2005. In a letter of
August 15, 1997 to the Senate Majority Leader, the Secretary of
Defense confirmed that SBL technology ``has reached a level of
maturity enabling us to focus on integration issues that could
lead to a future space demonstration of a sub-scale vehicle.''
The conferees believe that such an SBL-RD can be developed and
launched without violating the ABM Treaty. Proceeding with an
SBL-RD will not commit the United States to development or
deployment of an operational SBL system, but will preserve this
option for future consideration.
 The conferees support the management structure that has
been established for the SBL program, with the Air Force acting
as the executive agent for BMDO, but believe that the Air Force
must program a share of the funding needed to develop and
launch the SBL-RD. The conferees understand that the Air Force
leadership is committed to such a cost-sharing arrangement and
look forward to this commitment being reflected in the fiscal
year 1999 budget request and in future Air Force Program
Objective Memorandum (POM) submissions. The conferees also
understand that the Secretary of Defense is considering options
for increasing funding for the SBL program in the BMDO budget.
The conferees recognize that full funding of the SBL-RD program
will allow a much more efficient and lower risk program.
Therefore, the conferees strongly urge the Secretary of Defense
to explore all possible means of including the full SBL-IRT
recommended funding profile for a fiscal year 2005 launch in
the combined BMDO and Air Force Future Years Defense Program
(FYDP), starting with the fiscal year 1999 budget request.
 The conferees direct that all funds authorized to be
appropriated for the SBL program in fiscal year 1998 be managed
with the principal objective of developing an SBL-RD capable of
being launched in fiscal year 2005. The conferees further
direct that all funds authorized to be appropriated in fiscal
year 1998 for the SBL program be directly executed by the
Commander of the Air Force Space and Missile Systems Center
(SMC).
 The conferees recognize that the Commander of SMC may
recommend that some limited amount of critical and potentially
high payoff SBL technology research and development be
continued even if it does not directly support the SBL-RD.
However, due to the overarching priority of launching the SBL-
RD in fiscal year 2005, the conferees direct that obligation of
SBL funds for such activities be limited, and only occur
following consultation with the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives.
 The conferees direct the Commander of SMC to establish
promptly an SBL-RD baseline, to include a set of technical
objectives and requirements, a contracting strategy, a system
design, a program schedule, and a funding profile that would
support a launch in fiscal year 2005. The conferees understand
that the SBL-IRT focused primarily on a single SBL-RD design.
However, the conferees support the steps taken by the Commander
of SMC to rapidly assess technical and contractual options that
may allow a treaty compliant SBL-RD to be developed and
launched more rapidly and affordably. To ensure that the focus
of the program remains on a fiscal year 2005 launch, the
conferees expect to be consulted prior to the adoption of any
excursions from the SBL-IRT recommended baseline.
 The conferees note that the SBL-IRT concluded that a new
integrated test facility is an essential and relatively long-
lead element of the SBL-RD effort. Therefore, the conferees
direct the Commander of SMC to proceed expeditiously in fiscal
year 1998 with the selection of a site for such a facility. The
Commander of SMC shall include the requirements, costs, and
schedule for this facility in the SBL-RD baseline, as well as
an assessment of the cost effectiveness of continuing to
operate other SBL test facilities such as the one at
Capistrano, California.
 The conferees direct the Secretary of Defense to submit a
report on the status of the SBL-RD baseline, and related
issues, to the congressional defense committees by March 1,
1998.
Strategic environmental research and development program
 The budget request included $54.9 million in PE 63716D
for the Strategic Environmental Research and Development
Program (SERDP).
 The House bill would authorize an increase of $3.0
million in PE63716D to pursue projects that focus on the
elimination of toxic materials and solvents from explosives and other
energetic materials.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize an increase of $3.0
million in PE 63716D for the purpose of developing
environmentally benign energetic materials.
Advanced electronics technologies
 The budget request included $277.0 million in PE 63739E
for advanced technology development of a variety of electronics
technologies.
 The House bill would authorize an increase of $6.0
million for research in extreme ultraviolet (EUV) lithography
and fabrication of nanoelectronic structures and an increase of
$15.0 million for the transition of the x-ray lithography
program from the Defense Advanced Research Projects Agency
(DARPA) to the Navy.
 The Senate amendment would authorize an increase of $23.0
million to continue the proximity x-ray lithography program and
an increase of $2.0 million to complete the point-source x-ray
lithography program in fiscal year 1998. The Senate amendment
would also decrease by $3.0 million the amount of funding
authorized in project MT-06.
 The conferees agree to authorize an increase of $18.0
million for the proximity x-ray lithography program and an
increase of $2.0 million to complete the point-source x-ray
program in fiscal year 1998. The conferees also agree to
decrease by $4.0 million the amount authorized for project MT-
06.
 The conferees agree to authorize an increase of $6.0
million in PE 62712E for EUV lithography as discussed elsewhere
in the Statement of Managers for the National Defense
Authorization Act for Fiscal Year 1998.
 The conferees endorse the views expressed in the House
report (H. Rept. 105-132) regarding the need to ensure a smooth
transition of the proximity x-ray lithography program from
DARPA to the Navy and the private sector. The conferees direct,
therefore, that Naval Air Systems Command be appointed
executive agent for the program and that all funds expended for
research and development of proximity x-ray, and related
technologies, be coordinated through and meet the program
priorities of the Naval Air Systems Command and the Naval
Research Laboratory. The conferees urge the Navy to coordinate
research in cross-cutting technologies between the proximity x-
ray program, and related technologies, and the DARPA sub-tenth
micron advanced lithography program. The conferees endorse the
Senate report requirement (S. Rept. 105-29) that the Navy
prepare and submit a plan to expeditiously complete the
transition of the program to industry with fieldable
technology. The plan must be submitted to the congressional
defense committees no later than 180 days after the date of
enactment of this Act.
Electronic commerce resource centers
 The budget request included $14.9 million in PE 63753S
for electronic commerce resource centers (ECRC).
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $3.0
million in PE 63753S for the establishment of a new ECRC.
 The conferees agree to authorize an increase of $6.0
million in PE 63753S: $3.0 million for the establishment of a
new center, as discussed in the Senate report (S. Rept. 105-
29); and $3.0 million for the establishment of an additional
center. The conferees direct that all applicable competitive
and merit-based procedures be used in the award of contracts,
grants, or other agreements under this program, and that cost-
sharing requirements for non-federal participants be utilized
where appropriate.
Land warfare technologies
 The budget request included $82.58 million in PE 63764E
for land warfare technologies advanced technology development.
 The House bill would authorize an increase of $6.6
million in PE 63764E for the active structural control program
and $14.0 million for the DP-2 vectored thrust program. The
House bill would also authorize a $9.0 million reduction in PE
63764E.
 The Senate amendment would authorize an increase of $4.4
million for the active structural control program.
 The conferees agree to authorize an increase of $5.4
million for the active structural control program. The
conferees also agree to a decrease of $5.0 million in PE 63764E
for the small unit operations program.
 The conferees are aware of recent progress in the
activities related to the DP-2 vectored thrust program. The
Office of Naval Research has recently sponsored the vectored
thrust program and prior year funds were transferred from the
Defense Advanced Research Projects Agency for this purpose. The
conferees encourage the Navy to reprogram additional funds to
support this program should initial testing prove successful.
Defense Reconnaissance Support Activities
 The budget request included $49.4 million in PE 35159I
for Defense Reconnaissance Support Activities.
 The House bill would direct the Department of Defense to
discontinue, not later than October 1, 1999, the Defense Space
Reconnaissance Program (DSRP) and close the Defense Space
Program Office (DSPO).
 The Senate amendment contained no such direction and
would authorize the budget request.
 The House recedes.
 The conferees agree that there appears to be an overly
bureaucratic management of space reconnaissance support to
military operations. The DSPO was established in 1981 to
provide management support and oversight of programs which
improve satellite reconnaissance support to the operational
military commander. DSPO was established as an overt liaison
between the then unacknowledged National Reconnaissance Office
(NRO) and the military services. After public acknowledgment of
the NRO, the Director of the NRO: (1)established direct support
to military operations as a core function of the Office; and (2)
created the NRO position of Deputy Director, Military Support to manage
this function and the DSPO organization.
 The conferees believe the Department needs to review the
need for continuing the DSPO in light of the NRO's public
acknowledgment and its stated military support mission.
Further, the conferees believe that the position of Deputy
Under Secretary of Defense for Space provides the additional
civilian oversight necessary to ensure the effective
application of space support to the military services.
 Therefore, the conferees believe the Secretary of Defense
should determine whether there is a need to retain the DSPO
management organization and the DSRP program it manages. The
conferees note that such a determination could benefit from the
advice of the Task Force on Defense Reform. The conferees
direct the Secretary to report to the congressional defense and
intelligence committees on the results of his determination by
March 1, 1998.
Special operations tactical systems development
 The budget request included $73.1 million to support
special operations tactical systems development (PE 116404BB).
 The House bill would authorize the budget request.
 The Senate amendment would authorize an increase of $2.7
million to support special operations tactical systems.
 The conferees agree to authorize the transfer of $36.4
million from special operations shipbuilding procurement to the
advanced SEAL delivery system (ASDS) to address funding
shortfalls. The conferees are concerned about the significant
problems associated with development and management over the
life of the ASDS program. The conferees have been notified of
the program shortfalls and corrective actions implemented by
the Navy to bring this program back on track. The conferees
agree to support the Navy request to use available procurement
funds to support proposed corrective actions and expect the
Navy to improve its oversight of this important program. The
conferees are aware that a realignment of funds will be made in
the fiscal year 1999 budget request to complete ASDS-1. The
conferees direct that, prior to February 15, 1998, the
Secretary of the Navy report to the congressional defense
committees on the total projected costs of the ASDS, the
estimated date of construction completion, and adjusted plans
for sea trials and initial operating capability. In addition,
the report shall include the Future Years Defense Program
funding for the ASDS program.
 The conferees agree to authorize a total of $109.5
million in PE 116404BB.
Special operations intelligence systems development
 The budget request included $4.9 million to support
special operations intelligence systems development.
 The House bill would authorize an increase of $3.0
million to support the mission familiarization virtual reality
project and an additional increase of $5.0 million for the
special operations forces intelligence vehicle.
 The Senate amendment would authorize an increase of $4.0
million to develop the joint threat warning system.
 The conferees agree to authorize an increase of $6.0
million for special operations system development. Of this
amount, $3.0 million is for the special operations forces
intelligence vehicle and $3.0 million is for the joint threat
warning system.

 ITEMS OF SPECIAL INTEREST

Army research institute
 The conferees note the continuing needs of the Army for
analyses related to personnel recruitment and training as well
as issues related to gender and racial integration. The
conferees note the studies in these areas carried out by the
Army Research Institute and urge the Army to consider its
requirements for further research before taking action to
reduce further the activities of the Institute.
Aviation advanced technology
 The budget request included $31.3 million for aviation
advanced technology in PE 63003A. The conferees encourage the
Army, with the funds available, to consider exploring the
potential operational value and key technical issues related to
an integrated manned and unmanned aerial vehicle scout team.
BOL expendable dispenser system
 The conferees are aware of the important survivability
enhancement that the BOL expendable dispenser system provides
our operational F-14 aircraft, and the potential capability
that the system may provide for other aircraft.
 The Congress provided approximately $18.0 million in
fiscal year 1997 for final testing and qualification of the BOL
on the F/A-18C/D aircraft. The conferees understand that
progress in testing and qualification has been slow, despite
the Navy's expressed desire to accelerate the program for the
F/A-18C/D. The conferees direct the Secretary of the Navy to
report to Congress with the submission of the fiscal year 1999
budget on the results of the Navy's assessment and intentions
regarding qualification and potential fielding the BOL system
on the F/A-18C/D aircraft.
Department of Defense science and technology program
 Today, U.S. military forces have the capabilities to
deploy anywhere in the world, sustain forward presence
indefinitely, and win decisively on any battlefield. Those
capabilities are a direct result of investments in research and
technology sustained over the last 50 years. Such investments
have played a crucial role in the development of advanced
technologies and in the education and training of scientific
personnel required to support the technological advances
necessary for maintaining military superiority.
 The conferees note with concern the continuing reduction
in thefunding in real terms for science and technology programs
in the Department of Defense, especially in the programs of the
services. Because military forces will be smaller in the future,
effective application of technology will be even more critical for
battlefield superiority. Investments in defense science and technology
programs should be strengthened in recognition of this reality. The
conferees urge the Department to include a robust level of funding for
science and technology programs in the request for fiscal year 1998.
High temperature superconductor power applications
 The conferees understand that the Navy is pursuing large-
scale applications of high temperature superconductors (HTS)
for electric drive ship propulsion and other applications. The
conferees also note that the Submarine Technology Assessment
Panel, commissioned by the Assistant Secretary of the Navy
(Research, Development and Acquisition), recommended in its
final report that the Navy focus research and development
efforts to ensure the maturity of the superconducting
technology and the incorporation of electric drive into a
submarine design as soon as feasible. In light of the
initiation of the Navy development and production of the New
Attack submarine, SC-21 and CV(X), and the progress realized by
the commercial sector in the development and application of
this technology and its potential benefits, the conferees
encourage the Navy to consider this technology for widespread
use in propulsion and auxiliary equipment. The conferees direct
the Secretary of the Navy to submit a report to the
congressional defense committees, no later than March 1, 1998,
that describes the results of the tests conducted on the
prototype HTS motor.
Improving collaboration between the Department of Defense and the
 Department of Energy laboratories
 The conferees endorse the direction given on pages 425
and 426 of the Senate report (S. Rept. 105-29) regarding the
establishment of a pilot program proposal for direct
collaboration between the Department of Defense and the
Department of Energy laboratories and sites. However, in order
to provide for a more focused program, the conferees direct
that the Under Secretary of Defense for Acquisition and
Technology need only work in consultation with the Assistant
Secretary of Energy for Defense Programs in preparing the pilot
proposal.
Interferometric synthetic aperture radar
 Forward deployed U.S. armed forces have a need for up-to-
date and highly accurate maps that provide three-dimensional
location of targets, including altitude, latitude, and
longitude, and for reconstruction of terrain in a three-
dimensional setting for planning combat missions. The conferees
understand that an airborne interferometric synthetic aperture
radar (IFSAR) has the potential to provide imagery of one foot
resolution and digital terrain elevation data (DTED) at DTED
level 4.
 The conferees understand that the Army and the Defense
Advanced Research Projects Agency recently demonstrated an
airborne IFSAR during operations in support of U.S. ground
forces in Bosnia. The test system is relatively small and for
test purposes was flown on a business jet, which proved
satisfactory in Bosnia. To operate in a major regional
contingency, however, U.S. armed forces would require a larger,
more capable system, flying at higher altitudes.
 The conferees direct the Secretary of Defense and the
Intelligence community to study the costs, feasibility, and
potential capability gains of placing an IFSAR on a U-2 or high
altitude endurance unmanned aerial vehicle, and to report the
results of this analysis to the congressional defense
committees with the submission of the fiscal year 1998 budget
request.
Naval biodynamics laboratory data bank
 For nearly thirty years, the NBDL focused on the
intensive test, study, and analysis of the human body's
response to the trauma of crashes, and developed a national
data bank of collective human crash response information based
on approximately 3,500 crash tests using live human subjects.
In 1996, the NBDL ceased operations as a result of previous
decisions to close the laboratory, but was not able to
consolidate and safely store its research information in a
consistent, useful data bank format. The conferees believe that
the effort spent in amassing the unique human response data by
the NBDL should not be lost. Accordingly, the conferees direct
the Secretary of the Navy to develop a plan that establishes a
national crash survival data bank that will safeguard the
integrity of the data gathered by the NBDL and to submit a
report on the plan and the funding required to establish the
data bank with the fiscal year 1999 Department of Defense
budget request.
Strategic systems industrial capabilities
 The Department of Defense has consistently highlighted
the need to maintain certain industrial base skills and
technologies unique to strategic programs. The conferees
support the efforts that the Department and the services have
made to ensure that these technologies and skills are
maintained for future uses. The conferees support Air Force
efforts with respect to specialized materials, such as 2-2-3
carbon/carbon, that may be needed for future space and other
applications. The conferees urge the Secretary to review the
Future Years Defense Program to ensure that Strategic Systems
specialized industrial base issues are adequately funded.
Telemedicine
 The conferees have a continuing interest in telemedicine
and in the promise that the application of telemedicine
technology holds for improvements in the health care of service
members on the battlefield, at sea, and in military and
civilian health care facilities. The conferees are aware that
the General Accounting Office (GAO) in itsFebruary 1997 report
``Telemedicine: Federal Strategy is Needed to Guide Investments''
concluded that telemedicine has the potential to revolutionize the way
health care is delivered and that recent increased interest in
telemedicine technology has resulted in widespread applications
throughout the United States. However, the GAO also concluded that no
overarching, government-wide strategy exists to ensure that the most is
gained from federal telemedicine efforts. The conferees believe that
because the Department of Defense (DOD) is one of the major federal
investors in telemedicine and manages one of the nation's largest
health care systems, it would be in a good position to help forge an
overall telemedicine strategy. A first step in this direction would be
the development of a department-wide telemedicine strategy.
 The conferees strongly recommend that the Secretary of
Defense develop and submit to the congressional defense
committees by March 31, 1998, an overarching telemedicine
research and development and operation strategy. The strategy
should clearly define the scope of telemedicine in the
Department, establish DOD-wide goals and objectives, and
identify actions and appropriate milestones for achieving them;
prioritize and target near- and long-term investments,
especially for goals related to combat casualty care and
operations other than war; and clarify the roles of DOD
oversight organizations. The conferees also recommend that the
Secretary coordinate with the Joint Working Group on
Telemedicine in the development of national goals and
objectives for telemedicine.

 Legislative Provisions Adopted

 Subtitle A--Authorization of Appropriations

Dual-use technology program (sec. 203)
 The House bill contained a provision (sec. 203) that
would direct the Department of Defense to fund the dual-use
science and technology program in fiscal year 1998 as a
percentage of the science and technology program of each of the
services.
 The Senate amendment contained a provision (sec. 216)
that would establish a set of goals with increasing levels of
funding for new starts in the applied research accounts of the
military services to be devoted to dual-use projects in each of
fiscal years 1998, 1999, and 2000. Under the provision, the
dual-use projects entered into by the military services would
have to require a minimum cost-share of 50 percent from non-
federal participants in order to count toward meeting the
specified goal. The provision would also assign oversight
responsibility for implementation of dual-use technologies to
an official who would report directly to the Under Secretary of
Defense for Acquisition and Technology.
 The House recedes with an amendment that would increase
the goals set in the Senate provision and impose the
percentages to the entire applied research accounts of the
military services rather than new starts within those accounts
for each of fiscal years 1998, 1999, 2000, and 2001. The
provision would also place restrictions on the proportion of
in-kind contribution in the non-federal cost-share for dual-use
projects that would be applied toward meeting the goals.
Finally the provision would specifically authorize $50.0
million for the Commercial Operations and Support Initiative
(COSSI) and $75.0 million for the dual-use science and
technology projects in fiscal year 1998. The conferees direct
that the funds authorized for the COSSI program in fiscal year
1998 be used only to complete projects under existing
agreements and that no new solicitation under the COSSI program
be initiated until fiscal year 1999.
 The conferees direct the Secretary of Defense to submit
to the congressional defense committees, at the time of the
budget request for each of the fiscal years for which a goal
applies under the provision, a report on the plans for the
program for the fiscal year of the request. The report should
provide sufficient detail with respect to funding allocations,
priorities, and technology development goals for both the
science and technology program and the COSSI program to allow
Congress to make an informed decision on the request.

 Subtitle B--Program Requirements, Restrictions, and Limitations

Manufacturing technology program (sec. 211)
 The House bill contained a provision (sec. 211) that
would amend section 2525 of title 10, United States Code,
through fiscal year 2000, to establish a funding requirement
for the manufacturing technology (MANTECH) program of 0.25
percent of the amount available for demonstration and
validation, engineering and manufacturing development,
operational system development, and procurement programs of the
Army, the Navy, the Air Force, and Defense Agencies, or the
amount authorized by law for manufacturing technology projects
of the military departments and defense agencies, whichever
amount is greater. The provision would also require an annual
report to Congress through fiscal year 2000.
 The Senate amendment contained a provision (sec. 231)
that would amend section 2525(c)(2) of title 10, United States
Code, to clarify the rationale for the requirement that the
Department seek the participation of manufacturers of
manufacturing equipment in the projects under the MANTECH
program.
 The House recedes with an amendment that would include
the requirement for the Secretary of Defense to prepare a five
year plan for the MANTECH program that establishes
manufacturing technology goals, milestones, and priorities, the
investment strategy for the program, annual program objectives,
and annual funding for the program by defense agencies and the
military departments.
 The conferees strongly endorse the Department of Defense
manufacturing technology program. The program provides ``seed
funding'' for the development of moderate to high risk
material, process, and equipment technology to enable
production of advanced, high quality weapons systems with
shorter lead times and reduced acquisition costs. The conferees
also endorse the need to stabilize the funding level for the
MANTECH program and eliminate the uncertainty in annual
fundingthat has reduced the program's effectiveness and efficiency. The
conferees believe that the program's objectives, investment strategy,
and funding level must be closely tied to the manufacturing technology
and process requirements of the various Defense acquisition programs.
To achieve this goal and to maintain the Department of Defense MANTECH
program at the funding level needed to assure the availability of
advanced manufacturing technology and processes, the conferees
recommend that the Secretary establish a funding target for the program
of at least 0.25 percent of the amount programmed by each of the
military departments and defense agencies for their demonstration and
validation, engineering and manufacturing development, operational
system development, and procurement programs.
Report on operational field assessments program (sec. 212)
 The House bill contained a provision (sec. 220) that
would require the Secretary of Defense to submit to the
Congress no later than March 30, 1998 a report on the
operational field assessments program, including a description
of future plans for the program and funding requirements for
planned activities under the program.
 The Senate amendment contained no similar provision, but
authorized an increase of $8.0 million in PE 65118D for
operational field assessments in fiscal year 1998.
 The Senate recedes with an amendment that would require
the Secretary of Defense to report to the Congress on the
manner in which the operational field assessment program plan
will ensure responsiveness to the mission needs of the
commanders of the unified combatant commands. The conferees
agree to authorize an increase of $4.0 million in PE 65118D to
support operational field assessments in fiscal year 1998.
Joint Strike Fighter Program (sec. 213)
 The Senate amendment contained a provision (sec. 211)
that would require the Secretary of Defense to submit a report
to the congressional defense committees on the options for the
sequence in which the variants of the Joint Strike Fighter
(JSF) are to be produced and fielded.
 The House bill contained no similar provision.
 The House recedes with an amendment that would include a
requirement for certification that the JSF program contains
sufficient funding to carry out an alternate engine program
that includes flight qualification of an alternate engine.
Kinetic energy tactical anti-satellite technology program (sec. 214)
 The Senate amendment contained a provision (sec. 218)
that would authorize $80.0 million in PE 63892D to continue the
Kinetic Energy Tactical Anti-Satellite (KE-ASAT) program in
fiscal year 1998. The provision would also prohibit the
obligation of funds in PE 65104D, relating to technical studies
and analyses, until the funds appropriated for the KE-ASAT
program for fiscal year 1998 have been released to the KE-ASAT
program manager.
 The House bill contained no similar provision.
 The House recedes with an amendment that would authorize
$37.5 million for the KE-ASAT program for fiscal year 1998.
 The conferees understand that the administration
maintains that there is no military requirement for the KE-ASAT
program and that the Department of Defense does not support it.
However, there appears to be some confusion regarding the
Department's support for some degree of KE-ASAT technology
development. The Department of Defense's recent Space Control
Architecture study appears to endorse continued development of
KE-ASAT technology, and the National Space Policy appears to
call for the development of active counter-satellite
capabilities.
 In light of these factors, the conferees direct the
Secretary of Defense to submit a report to the congressional
defense committees by February 15, 1998, to include the
following: (1) a determination as to whether the National Space
Policy and DOD Space Policy establish requirements for the
development of active counter-satellite capabilities; (2) a
summary of the DOD Space Control Architecture study, including
any updates to the study, and the study's findings and
recommendations regarding the KE-ASAT program; and (3) a
determination by the Secretary as to whether the Department of
Defense should develop active counter-satellite capabilities
and, if so, whether the Secretary intends to sustain some level
of KE-ASAT technology development. The report shall be
submitted in an unclassified form and, if necessary, in a
classified form.
 The conferees note that fiscal year 1997 funds remain
available for the KE-ASAT program. The conferees continue to
support the development of KE-ASAT technology.
Micro-satellite technology development program (sec. 215)
 The Senate amendment contained a provision (sec. 219)
that would authorize $50.0 million in PE 63401F for the
Clementine 2 program. The provision would also prohibit the
obligation of more than $35.0 million of funds authorized in PE
64480F for the Global Positioning System Block IIF satellite
system until the Secretary of Defense certifies to Congress
that the Secretary has made available for obligation funds
appropriated for fiscal year 1998 for the Clementine 2 Micro-
Satellite program.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require:
(1) that the Clementine 2 program be restructured into a micro-
satellite technology development program that supports a range
of space mission areas; and (2) the Secretary of Defense to
provide a report on the restructured micro-satellite program to
the congressional defense committees.
 The conferees note that the Air Force and U.S. Space
Command have supported micro-satellite development activities
and that the Air Force has established and provided a limited
amount of funding for such a program in the Future Years
Defense Program. The conferees continue to support innovative
technology demonstrations designed to test key technologies in
space and urge the Secretary of Defense toensure that the
restructured micro-satellite technology program continues such efforts.
The conferees note that the Air Force, in conjunction with the office
of the Deputy Undersecretary of Defense for Space, has developed a
range of options for such a program. The conferees believe that funds
appropriated for the Clementine 2 program in prior years should be used
to support the restructured micro-satellite program.
High altitude endurance unmanned vehicle program (sec. 216)
 The Senate amendment contained a provision (sec. 213)
that would impose a cost cap on the High Altitude Endurance
Unmanned Aerial Vehicle (HAE UAV) program at the levels
requested in the fiscal year 1998 budget request.
 The House bill contained no similar provision.
 The House recedes with an amendment that would clarify
the reporting requirement of the provisions and the
certification requirements for the program.
F-22 aircraft program (sec. 217)
 The Senate amendment contained a provision (sec. 212)
that would impose cost caps on both the total cost of
engineering and manufacturing development (EMD) and the total
cost of production of the F-22. Additionally, the Senate
amendment would require an annual report by the Comptroller
General that would assess the progress of EMD and its prospect
of completion under the cost cap. The annual report would be
required until EMD is complete. Finally, the Senate amendment
would limit the obligation of funds authorized to be
appropriated each fiscal year to 90 percent until the
Comptroller General's annual report is submitted.
 The House bill contained no similar provision.
 The House recedes with an amendment that would allow
adjustments to the cost caps for economic inflation and
compliance with laws enacted after September 30, 1997.

 Subtitle C--Ballistic Missile Defense Programs

National Missile Defense Program (sec. 231)
 The Senate amendment contained a provision (sec. 225)
that would require the Secretary of Defense to structure the
National Missile Defense (NMD) program to support an integrated
NMD system test in fiscal year 1999. The provision would also
require the Secretary of Defense to prepare a plan for the
development and deployment of an NMD system that could achieve
initial operational capability in fiscal year 2003. Finally,
the provision would authorize $978.1 million for NMD in fiscal
year 1998.
 The House bill contained no similar provision.
 The House recedes.
Budgetary treatment of amounts for procurement for ballistic missile
 defense programs (sec. 232)
 The House bill contained a provision (sec. 231) that
would require future budget requests for procurement of the
National Missile Defense program and for core theater missile
defense programs to be within the accounts of the Ballistic
Missile Defense Organization (BMDO) rather than in the accounts
of the military services.
 The Senate amendment contained a provision (sec. 226)
that would direct the Secretary of Defense to transfer
ballistic missile defense program procurement funds previously
managed by the Ballistic Missile Defense Organization from
military service accounts back to their original BMDO
procurement accounts.
 The Senate recedes with an amendment that combines the
House and the Senate provisions.
Cooperative Ballistic Missile Defense program (sec. 233)
 The House bill contained a provision (sec. 232) that
would establish a Cooperative Ballistic Missile Defense Program
within the Ballistic Missile Defense Organization (BMDO), to
support on-going and future technical and analytical
cooperative efforts between the United States and other nations
that contribute to U.S. missile defense capabilities.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would provide
the Secretary of Defense discretion to exclude certain
ballistic missile defense acquisition programs from the
cooperative ballistic missile defense program element. The
conferees understand that BMDO has developed plans for the
creation of a dedicated cooperative ballistic missile defense
program element and look forward to this new program element in
the fiscal year 1999 budget request.
Annual report on the threat posed to the United States by weapons of
 mass destruction, ballistic missiles, and cruise missiles (sec.
 234)
 The House bill contained a provision (sec. 234) that
would direct the Secretary of Defense, in consultation with the
Director of Central Intelligence, to prepare and submit to
Congress by January 30 of each year, a report on threats posed
to the United States and its allies by cruise missiles,
ballistic missiles, and weapons of mass destruction, and the
proliferation of such technologies.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Director of Ballistic Missile Defense Organization (sec. 235)
 The House bill contained a provision (sec. 235) that
would require that the Director of the Ballistic Missile
Defense Organization (BMDO) carry the grade of lieutenant
general or general or, in the case of an officer of the Navy,
vice admiral or admiral. It would also require that the
Director of BMDO report directly to the Secretary of Defense.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would permit
the appointment of a civilian official of equivalent grade as
Director of BMDO and eliminate the requirement that the
Director report directly to the Secretary of Defense.
 The conferees direct the Secretary of Defense to ensure
that the director of BMDO is accorded full access to the
Secretary and all other senior Department of Defense officials
on matters pertaining to the management of ballistic missile
defense programs for which the director has responsibility.
Repeal of required deployment dates for core theater missile defense
 programs (sec. 236)
 The House bill contained a provision (sec. 233) that
would amend section 234(a) of the Ballistic Missile Defense Act
of 1995 by eliminating deployment dates for certain core
theater missile defense (TMD) programs and modifying the
deployment date for the Theater High Altitude Area Defense
(THAAD) program. The provision also made technical and
conforming changes to section 234(a).
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would eliminate
all deployment dates for core TMD programs from section 234(a)
of the Ballistic Missile Defense Act of 1995.
 The conferees continue to support the earliest possible
deployment of effective theater missile defenses, consistent
with acceptable program risk, as a matter of high national
priority. The conferees believe that the mandated deployment
dates made clear the high priority attached by Congress to all
four core theater missile defense programs. These dates and
congressional funding increases have propelled the Navy Area
Theater Ballistic Missile Defense program into engineering and
manufacturing development and the Patriot Advanced Capability-3
(PAC-3) program into procurement. Congressionally mandated
deployment dates were also motivated by the Department of
Defense's failure to commit firmly to a deployment schedule for
the Navy Theater Wide and THAAD programs that would result in
deployment of these vital capabilities at the earliest
opportunity consistent with acceptable technical and program
risk.
 Henceforth, the conferees anticipate that a statement of
congressional intent concerning the management of the core TMD
programs will be issued annually. The conferees believe that
the flexibility of annual statements will allow for rigorous
and effective congressional oversight.

 Subtitle D--Other Matters

Restructuring of National Oceanographic Partnership Program
 organization (sec. 241)
 In signing the National Defense Authorization Act for
Fiscal Year 1997, the President issued a statement that the
statute's method for the appointment of certain members of the
National Ocean Leadership Council would violate the
Appointments Clause of the Constitution. Although the statement
provided that the Council should not exercise significant
governmental authority, the administration allowed the Council
to be convened with the 12 members whose appointment did not
raise any constitutional issue, pending the enactment of
corrective legislation.
 The House bill contained a provision (sec. 214) that
would amend section 7902 of title 10, United States Code, to
provide that the President, or his designee, shall appoint
members of the National Ocean Research Council who are not
already government officers, to represent the views of the
ocean industries, state governments, and academia, and such
other views as the President considers appropriate.
 The Senate amendment contained a provision (sec 234) that
would amend section 7902(b) to revise the membership of the
Council by removing those members whose appointment would raise
constitutional questions. The National Ocean Leadership Council
would remain as currently established by the administration,
with members representing the 12 Federal agencies with
significant oceanographic interest. The provision also
recommended that the membership of the Council's Ocean Research
Advisory Panel be expanded to include representatives from the
National Academy of Sciences, the National Academy of
Engineering, and the Institute of Medicine, as well as
government, academia, and the oceans industry.
 The House recedes with an amendment that would clarify
the role of the Ocean Research Advisory Panel with regard to
membership and responsibilities.
Maintenance and repair of real property at Air Force installations
 (sec. 242)
 The House bill contained a provision (sec. 215) that
would amend chapter 949 of title 10, United States Code, by
adding a new provision to permit the use of both research,
development, test, and evaluation funds and operations and
maintenance funds for maintenance and repair of real property
at Air Force installations.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Expansion of eligibility for the defense experimental program to
 stimulate competitive research (sec. 243)
 The House bill contained a provision (sec. 216) that
would amend section 257 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103-337) to ensure the
eligibility of the Commonwealth of Puerto Rico and other U.S.
territories to participate in the Defense Experimental Program
to Stimulate Competitive Research.
 The Senate amendment contained a similar provision (sec.
233).
 The House recedes.
Bioassay testing of veterans exposed to ionizing radiation during
 military service (sec. 244)
 The House bill contained a provision (sec. 217) that
would authorize $300,000 for the Nuclear Test Personnel Program
conducted by the Defense Special Weapons Agency.
 The Senate amendment contained a similar provision (sec.
220) that would authorize $300,000 for the Nuclear Test
Personnel Program conducted by the Defense Special Weapons
Agency for the third phase of bioassay testing of radiation-
exposed veterans who participated in radiation-risk activities,
and would direct the collection of samples by the appropriate
department of agency appropriate agency, and the transfer under
appropriate chain of custody to the Brookhaven National
Laboratory.
 The House recedes with an amendment that would authorize
$300,000 for the Nuclear Test Personnel Program from funds
authorized for the Defense Special Weapons Agency to conduct
the third phase of bioassay testing of veterans exposed to
ionzing radiation during their military service.
 The conferees agree that neither the Brookhaven National
Laboratory, nor the Defense Special Weapons Agency (DSWA), have
the capability to collect the samples from the veterans who
participated in the United States atmospheric nuclear testing
program or the occupation of Hiroshima and Nagasaki, Japan.
Therefore, the conferees direct the appropriate department or
agency, with access to the veterans who participated in these
activities, to collect the required bioassay samples and
transfer them to Brookhaven National Laboratory under the
appropriate chain of custody.
Sense of Congress regarding Comanche program (sec. 245)
 The House bill contained a provision (sec. 218) that
would express support for Comanche program technology transfer
and acquisition efforts.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would express
the sense of Congress that the Department of Defense should
evaluate potential technology transfer and acquisition
initiatives within the Army Comanche program that have the
potential to increase the efficiency of the program or reduce
risk. If the Department identifies an initiative with merit,
the conferees expect that funding will be identified for the
initiative in the future years defense program.

 Legislative Provisions Not Adopted

Strategic environmental research and development program
 The House bill contained a provision (sec. 212) that
would direct the Secretary of Defense to submit a report on the
Strategic Environmental Research and Development Program
(SERDP) by February 28, 1998. In relation to each SERDP
project, the report would specify the following: (1) defense-
unique and mission-relevant aspects; and (2) certify that it
does not duplicate other environmental research, development,
and demonstration efforts of other government entities
ororganizations.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees have been advised by the Department of
Defense that technologies funded through SERDP are carefully
screened to identify projects that may duplicate efforts within
the Department. The conferees direct the Department of Defense
to ensure that every effort is made to avoid redundant research
and development efforts in the area of environmental
technology.
Tactical unmanned aerial vehicles
 The House bill contained a provision (sec. 213) that
would prohibit the obligation of funds for the Outrider
Advanced Concept Technology Demonstration (ACTD) program.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees are disappointed with the progress of the
Outrider ACTD program to date. The conferees believe that the
program has suffered irreparably from unstable and ambiguous
joint requirements and note that the program appears to be on a
path to failure with respect to its operational capabilities.
In the future, the conferees will look less favorably on ACTD
programs that are not limited demonstrations of mature
technologies, but rather thinly veiled attempts to evade the
regular order of the acquisition process.
 Accordingly, the conferees agree to authorize $45.0
million for completion of the Outrider ACTD development and
user activities, but not procurement of operational Outrider
systems. Moreover, the conferees agree to authorize these
Outrider ACTD activities in PE 63003A, Advanced Aviation
Technology program.
Land attack standard missile
 The House bill contained a provision (sec. 219) that
would authorize an increase of $10.0 million increase in PE
63795N for flight test demonstration and risk reduction
activities for the Land Attack Standard Missile. In addition,
the provision would decrease PE 63217N (Air Systems and Weapons
Advance Technology) by $5.0 million and PE 63508N (Ship Hull
Mechanical and Electrical Technology) by $5.0 million.
 The Senate amendment contained no similar provision.
 The House recedes. The conferees agree to authorize an
increase of $3.0 million in PE 63795N for the Land Attack
Standard Missile as discussed elsewhere in this report.
Tactical High Energy Laser program
 The House bill contained a provision (sec. 236) that
would transfer the Tactical High Energy Laser (THEL) program
from the Department of the Army to the Ballistic Missile
Defense Organization, and authorize $38.2 million for THEL in
fiscal year 1998.
 The Senate amendment contained no similar provision.
 The House recedes. Fiscal year 1998 funding for THEL is
addressed elsewhere in this report.
Advanced anti-radiation guided missile program
 The Senate amendment contained a provision (sec. 214)
that would authorize the Secretary of the Navy to use up to
$25.0 million of the amount authorized for fiscal year 1997 for
the advanced anti-radiation guided missile (AARGM) program to
fund fiscal year 1998 research development, test, and
evaluation programs of the Navy that have a higher priority.
 The House bill contained no similar provision, but would
authorize an increase of $35.0 million in PE 25601N to continue
the ARRGM program.
 The Senate recedes.
 The conferees share the concerns expressed in the House
report (H. Rept. 105-132) that the high degree of concurrency
in the schedule for development and demonstration of the AARGM
results in increased risk to the program and that a more
sequential development program may be warranted. Accordingly,
the conferees reiterate the guidance in the House report (H.
Rept. 105-132) that the Secretary of the Navy conduct an
independent assessment of the program plan, development and
demonstration schedule, program execution, technical
performance, and program risk. The Secretary shall report the
results of the assessment to the congressional defense
committees by March 31, 1998. The report should also include
the Secretary's recommendations regarding the objectives of the
program, revisions to the program schedule, and the funding
required to complete the program.
Federally funded research and development centers
 The Senate amendment contained a provision (sec. 215)
that would prohibit the Department of Defense (DOD) from
funding more than 6,206 staff years of technical effort for
federally funded research and development centers (FFRDC's) out
of the funds authorized to be appropriated for the DOD for
fiscal year 1998.
 The House bill contained no similar provision.
 The Senate recedes.
Department of Defense/Veterans' Administration cooperative research
 program
 The Senate amendment contained a provision (sec. 221)
that would authorize $15.0 million for the Department of
Defense/Veterans Administration (DOD/VA) cooperative research
program from the funds authorized to be appropriated for
research, development, test, and evaluation for defense
agencies in fiscal year 1998.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees agree to authorize $15.0 million in PE
63738D for the Cooperative DOD/VA Medical Research Program of
which $4.5 million is authorized for the Persian Gulf illness
clinical trials program discussed on page 161 of the House
report (H. Rept. 105-132). The conferees direct that all
applicable competitive, merit-basedprocedures be used in the
award of contracts, grants or other agreements under the Cooperative
DOD/VA Medical Research Program. The conferees further direct the
Secretary of Defense to ensure that any Department of Defense funds
authorized for fiscal year 1998 program be expended for research on the
medical problems of men and women associated with military service.
Multitechnology integration in mixed-mode electronics
 The Senate amendment contained a provision (sec. 222)
that would authorize an increase of $7.0 million for
multitechnology integration in mixed-mode electronics (MIME)
research. The Senate provision would reduce by an equal amount
the funds authorized to be appropriated for procurement for the
reserve components of the armed services and made available for
special equipment for user testing.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees agree to authorize an increase of $7.0
million in PE 62712E for applied research in MIME technology,
as discussed elsewhere in this report.
Facial recognition technology program
 The Senate amendment contained a provision (sec. 223)
that would authorize an increase of $5.0 million for a facial
recognition technology program.
 The House bill contained no similar provision, but would
authorize $5.0 million for a facial recognition technology
program in the counterterror technical support program (PE
63122D).
 The Senate recedes. The conferees agree to authorize $3.0
million for a facial recognition technology program in the
defense tactical technology program (PE 62702E).
Explosives demilitarization technology
 The Senate amendment included a provision (sec. 235) that
would direct the Secretary of Defense to conduct an explosive
munitions demilitarization demonstration program, and using
competitive procedures, conduct a demonstration using an
existing, commercially available blast chamber technology as an
alternative to open burning, open pit detonation of munitions;
require the Secretary of Defense to submit to Congress, along
with the fiscal year 2000 budget, a report on the results of
the demonstration program and assessment of the relative
benefits of the blast chamber technology with regard to levels
of emissions and noise, and a cost benefit analysis of this
technology. The provision would increase the budget request for
the explosives demilitarization technology program by $6.0
million for the demonstration program and reduce by $6.0
million the budget request for the Army account for special
equipment for user testing.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees agreed to authorize an increase of $4.0
million for the munitions standardization, effectiveness and
safety program (PE 65805A) from which a demonstration program
utilizing commercially available blast chamber technology may
be conducted, and is described elsewhere in this title.

 Title III--Operation and Maintenance

Overview
 The budget request for fiscal year 1998 contained an
authorization of $93,195.7 million for Operation and
Maintenance in the Department of Defense and $2,163.4 for
Working Capital Fund Accounts in fiscal year 1998. The House
bill would authorize $92,616.2 million for Operation and
Maintenance and $2,153.6 for Working Capital Fund Accounts. The
Senate amendment would authorize $93,292.9 million for
Operation and Maintenance and $1,488.1 for Working Capital Fund
Accounts. The conferees recommended an authorization of
$93,794.2 million for Operation and Maintenance and $2,031.9
for Working Capital Fund Accounts for fiscal year 1998. Unless
noted explicitly in the statement of managers, all changes are
made without prejudice.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

 ITEMS OF SPECIAL INTEREST

Arms control implementation
 The budget request included $315.1 million for arms
control implementation programs in the military services and
the Department of Defense. This request is based on anticipated
dates of implementation of the various arms control treaties.
 The House bill would authorize a decrease of $25.5
million, which would result in an $11.2 million reduction to
the On Site Inspection Agency (OSIA) operations and maintenance
account and a $14.3 million reduction to the Defense Special
Weapons Agency (DSWA) verification demonstration technology
program (PE 63711H). These reductions were due to slippage in
the entry into force of the Open Skies Treaty, the Strategic
Arms Reduction Treaty II, the Comprehensive Test Ban Treaty
(CTBT), and non-implementation of the Bilateral Destruction
Agreement (BDA).
 The Senate amendment would authorize a decrease of $20.0
million, which would result in a $10.0 million reduction to the
OSIA operations and maintenance account and a $10.0 million
reduction to the DSWA verification demonstration technology
program.
 The conferees agree to authorize a decrease of $25.5
million to the budget request for arms control implementation
for fiscal year 1998, as follows: $11.2 million for the OSIA
operations and maintenance account; and $14.3 million for the
DSWA verification technology demonstration program (PE 63711H).
 The conferees direct the Department of Defense to provide
the congressional defense committees with a program plan for
the nuclear control technology research program (PE 63711H) in
support of the CTBT, and include the estimated costs. The
Department should also include in the report its assessment of
recommendations by the National Research Council on research
deemed to be necessary to meet nuclear test monitoring goals,
and how the nuclear arms control technology activity meets
congressionally mandated objectives. The conferees are willing
to provide adequate funding for programs that would enable the
United States to independently monitor and detect nuclear test
activities worldwide and fulfill its obligations under a
comprehensive test ban, if and when that treaty enters into
force, and do not wish the funding reduction to nuclear control
technology activities (PE 63711H) to be misconstrued.
National Defense Sealift Fund (NDSF)
 The budget request included $812.9 million in the
National Defense Sealift Fund (NDSF) for sealift acquisition.
Of this amount, $581.3 million would be for the procurement of
two large medium speed roll-on/roll-off (LMSR) strategic
sealift ships, $131.5 million for resolution of cost growth
that has occurred on LMSRs authorized in prior years, $70.0
million for advance procurement of components for an LMSR that
is planned for authorization in fiscal year 1999, and $30.1
million for completion of ships authorized in prior years.
 The House bill would authorize a decrease of $9.8
million.
 The Senate amendment would authorize a decrease of $651.3
million for procurement and for advance procurement of LMSRs.
The Senate amendment would also authorize a decrease of $25.0
million because of contract savings in previously authorized
and appropriated NDSF programs. In addition, the Senate
amendment would authorize an increase of $1.0 million to
provide support for a Department of Defense study of future
requirements and specifications for maritime prepositioning
force recapitalization.
 The conferees agree to authorize $581.3 million for
procurement of two LMSRs, $70.0 for advance procurement, and
$30.1 million for completion of prior year ships. The conferees
further agree to a decrease of $131.5 million which includes a
decrease of $131.0 million for prior year cost growth, which
the conferees believe can be deferred until fiscal year 1999;
and a decrease of $0.5 million as a result of fiscal year 1997
contract savings.
National imagery and mapping agency
 The budget request included $680.3 million in Operations
and Maintenance, Defensewide, for the Joint Military
Intelligence Program portion of the National Imagery and
Mapping Agency (NIMA).
 The House bill would authorize the following: (1) a
reduction of $30.0 million for production and customer support
on the grounds that migration to the Digital Processing System
should have resulted in significant reductions in operations
and maintenance costs; (2) a reduction of $10.0 million for
mission support in anticipation of significant cost reductions
as a result of various mission and organization consolidations;
(3) a reduction of $15.0 million to accelerate the downsizing
of NIMA's personnel consistent with the Digital Processing
System phase-out; and (4) a reduction of $23.2 million for
continued research and development efforts for an
interferometric synthetic aperture radar (IFSAR) mission on
board the Space Shuttle to collect Digital Terrain Elevation
Data (DTED) level 2 information for mapping because of a belief
that other, more cost-effective, commercial alternatives to the
IFSAR mission exist.
 The Senate amendment would authorize the budget request.
 The conferees agree to authorize the following
reductions, as reflected in the Classified and Intelligence
line within Operations and Maintenance, Defensewide: $35.0
million in production; $11.0 million in mission support; $15.0
million in management and customer support; and $3.2 million
for the Shuttle IFSAR mission, with the remaining funding to be
used to fund commercial alternatives to the shuttle DTED
mapping mission if the NIMA Director determines that such
alternatives are cost- and mission-effective, or to continue
preparation for the shuttle mission. The conferees also agree
to authorize the budget request for NIMA civilian personnel.
The conferees direct the Director of NIMA to submit the
personnel plan specified in the House report (H. Rept. 105-
132).
Travel re-engineering
 The House report (H. Rept. 105-132), which raised
concerns over the compliance by the Department of Defense with
section 356 of the National Defense Authorization Act for
Fiscal Year 1996, would direct the Secretary of Defense to
comply with the reporting requirement in that section, and
would prohibit the Department from processing a Request for
Proposal. The conferees are aware that the Secretary of Defense
has now complied with the reporting requirement, and note that
the Request for Proposal has been released.
 The House report also expressed concern about the impact
of any new system on small and medium-sized travel agencies and
the possible restriction of fair competition in the travel
industry. The challenge facing the Department is to automate a
largely unautomated and expensive travel system. The conferees
expect the Secretary of Defense to ensure that this effort to
automate the system will be interoperable with existing
commercial systems to ensure that small and medium-sized travel
agencies continue to have an equal opportunity to compete to
provide actual travel services, and will incorporate the best
business practices of the commercial travel industry. According
to the schedule provided by the Department of Defense, system
testing in Region 6 will occur during the second quarter of
fiscal year 1998.
 The conferees direct the Secretary of Defense to report
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives,
not later than May 1, 1998, the lessons learned as a result of
establishing the Defense Travel System in Region 6. This report
shall include, at a minimum: industry response to the Request
for Proposal; the performance measures that were used to
evaluate the system testing; the cost of the Region 6 program,
including infrastructure development, software development,
hardware acquisition, and administration; the quantitative and
qualitative benefits of the program; the plan for integrating
the Defense Travel System in other regions; any differences
between the Region 6 contract and those anticipated for
subsequent expansion to other regions; and the evaluation plan
for full implementation.

 Legislative Provisions Adopted

 Subtitle A--Authorization of Appropriations

Fisher House trust funds (sec. 304)
 The House bill contained a provision (sec. 1006) that
would provide permanent authorization for the expenditure of
funds from the Fisher House trust fund.
 The Senate amendment contained a provision (sec. 305)
that would authorize $150,000 to be appropriated from the
Fisher House Trust Fund, Department of the Army, and $150,000
to be appropriated from the Fisher House Trust Fund, Department
of the Navy. No funds were authorized to be appropriated from
the Fisher House Trust Fund, Department of the Air Force.
 The House recedes with an amendment that would increase
the amount authorized to be appropriated from the Army Fisher
House Trust Fund to $250,000.
Refurbishment of M1A1 tanks (sec. 306)
 The House bill contained a provision (sec. 306) that
would authorize $35.0 million for the refurbishment of M1A1
tanks at the Anniston Army Depot under the Department of the
Army's Abrams Integrated Management XXI (AIM XXI) program if
the Secretary of Defense determines that the program is cost
effective.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would not
require this work to be performed at the Anniston Army Depot.
Operation of prepositioned fleet, National Training Center, Fort Irwin,
 California (sec. 307)
 The House bill contained a provision (sec. 313) that
would provide funding associated with the operation of the
preposition fleet of equipment used by Army units during
training rotations at the National Training Center (NTC).
 The Senate amendment contained no similar provision.
 The Senate recedes.
 The conferees are concerned with the Department of the
Army's decision to change the way unit rotations to the NTC are
funded. Currently, the Army provides funding to the National
Training Center from a central account to defray the costs
associated with units' use of pre-positioned equipment at the
NTC. Under a new Army proposal, starting in fiscal year 1998,
units scheduled to go to the NTC would have to pay for the use
of the pre-positioned equipment out of the funds provided for
home station training. The conferees believe that this would
have a detrimental impact upon unit readiness as home station
training, and thus total training, was reduced.
Refurbishment and installation of air search radar (sec. 308)
 The House bill contained a provision (sec. 305) that
would authorize $6.0 million for the refurbishment and
installation of the AN/SPS-48E air search radar for the Ship
Self-Defense Systems at the Integrated Ship Defense Systems
Engineering Center, Walllops Island, Virginia.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would make the
provision permissive.
Contracted training flight services (sec. 309)
 The Senate amendment contained a provision (sec. 371)
that would authorize $12.0 million for contracted training
flight services.
 The House bill contained no similar provision.
 The House recedes.
Procurement technical assistance programs (sec. 310)
 The House bill contained a provision (sec. 307) that
would authorize $15.0 million for a consolidated Procurement
Technical Assistance Center (PTAC) and the Electronic Commerce
Resource Center (ECRC) programs.
 The Senate amendment contained a provision (sec. 821)
that would authorize $12.0 million for the PTAC program.
 The House recedes.
Operation of Fort Chaffee, Arkansas (sec. 311)
 The Senate amendment contained a provision (sec. 306)
that would authorize $6.854 million for the operation of Fort
Chaffee, Arkansas.
 The House bill contained no similar provision.
 The House recedes.

 Subtitle B--Military Readiness Issues

Monthly reports on allocation of funds within operation and maintenance
 budget subactivities (sec. 321)
 The House bill contained a provision (sec. 312) that
would require the Secretary of Defense to notify and receive
approval from the congressional defense committees prior to the
reallocation of operation and maintenance funds above a certain
threshold.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Department of Defense to provide a monthly report to
Congress outlining the reallocation of funds within the
operation and maintenance accounts and the effect of this
reallocation on the ability of the Department to perform the
functions for which the funds were originally appropriated.
Expansion of scope of quarterly readiness reports (sec. 322)
 The House bill contained a provision (sec. 311) that
would expand the Quarterly Readiness Report required by section
361 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106) to include data and analysis on
additional readiness indicators, which would provide a more
comprehensive readiness assessment.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would include
additional factors to be included in these reports such as
personnel skills and pre-positioned equipment.
Semiannual reports on transfers from high-priority readiness
 appropriations (sec. 323)
 The House bill contained a provision (sec. 315) that
would extend through November 1, 2000, the requirement for the
Secretary of Defense to report semi-annually on transfers from
high-priority readiness accounts, in compliance with section
362 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106). This provision would also expand the
number of readiness accounts to be considered in the report.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would make it a
semiannual report.
Annual report on aircraft inventory (sec. 324)
 The Senate amendment contained a provision (sec. 1037)
that would require the Undersecretary of Defense (Comptroller)
to submit with the budget request an annual report to the
Congress on the aircraft in the inventory of the Department of
Defense. The provision would also require the modification of
budget data exhibits to display total numbers of aircraft where
numbers of primary aircraft or primary authorized aircraft are
displayed in exhibits.
 The House bill contained no similar provision.
 The House recedes.
Administrative actions adversely affecting military training or other
 readiness activities (sec. 325)
 The Senate amendment contained a provision (sec. 363)
that would require the Secretary of Defense to provide the
President, the Committee on Armed Services of the Senate, the
National Security Committee of the House of Representatives,
and the head of any relevant Federal agency with written
notification of any Federal administrative action that has or
would have a significant adverse effect on the military
readiness of any of the armed forces or a critical component of
the armed forces, such as a Marine battalion preparing for
deployment as part of a Marine Expeditionary Unit, or Special
Operations Forces dedicated to a specific mission. Notification
would be provided as soon as the Secretary becomes aware of an
adverse administrative action or proposed administrative
action. The notification would delay the implementation of the
action for a period of 30 days unless the Secretary determines
that the compliance with the proposed action is in the best
interest of the American public, or the President directs the
Secretary to comply based on a determination that the
implementation of the action is more important than the effects
on military readiness.
 The House bill contained no similar provision.
 The House recedes.
Common measurement of operations and personnel tempo (sec. 326)
 The Senate amendment contained a provision (sec. 1032)
that would require the Chairman of the Joint Chiefs of Staff to
develop, to the maximum extent practicable, a common
measurement of operations tempo (OPTEMPO) and personnel tempo
(PERSTEMPO).
 The House bill contained no similar provision.
 The House recedes.
Inclusion of Air Force depot maintenance as operation and maintenance
 budget activity group (sec. 327)
 The House bill contained a provision (sec. 373) that
would require the Secretary of the Air Force, beginning in
fiscal year 1999, to identify funding for depot maintenance in
a discreet subactivitygroup.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment.
Prohibition of implementation of tiered readiness system (sec. 328)
 The House bill contained a provision (sec. 314) that
would prohibit the implementation of any tiered readiness
system which would change military service-specific methods of
determining priorities for allocating funding, personnel,
equipment, equipment maintenance, and training resources to
military units, and the associated level of readiness of those
units that result from those priorities, from the system that
existed on October 1, 1996, until the Secretary of Defense
provides Congress with a report recommending a new tiered
readiness system along with legislative proposals and these
proposals are enacted by the Congress.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would prohibit
the implementation of a new tiered or cyclical readiness system
based on the results of the reviews as required by section 329
and section 330 of this Act, or any other review. The amendment
would clarify that the prohibition does not preclude the
Secretary of Defense from taking necessary action to maintain
the combat preparedness of the active and reserve components of
the United States Armed Forces.
 The conferees note that this provision does not block the
ability of the Department of Defense to routinely adjust the
manner in which it manages force readiness, particularly as it
pertains to maintaining necessary combat capabilities. Rather,
the provision precludes the adoption of a new tiered or
cyclical readiness system, as outlined in section 329 and
section 330 of this Act, pending subsequent congressional
review and concurrence given the significant policy issues
associated with such proposals. Accordingly, the provision
allows for the Secretary of Defense, following the completion
of the reviews required by sections 329 and 330 of this Act, or
any other review the Secretary may deem appropriate, to submit,
for Congressional consideration, a request for relief from this
prohibition.
Report on military readiness requirements of the Armed Forces (sec.
 329)
 The Senate amendment contained a provision (sec. 1034)
that would direct the Department to further explore the
potential for tiered readiness. This provision would require
the Chairman and the service chiefs, together with the
Commander in Chief of the Special Operations Command and the
commanders of the other unified commands, to prepare a second
report that would examine the extent to which the readiness of
the armed forces could be tiered. Rather than looking at a
generic major regional conflict, this report would require an
examination of the tiered readiness concept within the force
structure advocated by the Quadrennial Defense Review,
including the armed forces required to deter or defeat a
strategic attack upon the United States. The report would
include a rotational examination of the tiering of the armed
forces that would focus on the brigade and battalion levels of
the Army and Marine Corps Divisions, the squadron levels of the
Air Force, Navy and Marine Corps Wings, and the Navy Fleets.
 The House bill contained no similar provision.
 The House recedes.
Assessment of cyclical readiness posture of the Armed Forces (sec. 330)
 The Senate amendment contained a provision (sec. 1035)
that would require the Secretary of Defense to report on the
impact of moving to a cyclical readiness approach for major
warfighting units. Under this approach, a high state of
readiness alternates from one unit to another, as is already
done with the blue and gold crews on ballistic missile
submarines. The report should identify the savings and risks
associated with cyclical readiness.
 The House bill contained no similar provision.
 The House recedes.
Report on military exercises conducted under certain training exercise
 programs (sec. 331)
 The House bill contained a provision (sec. 316) that
would require the Secretary of Defense to report by January 15,
1998, on both past and planned joint training exercises
sponsored by the Chairman, Joint Chiefs of Staff (CJCS)
Exercise Program and the Partnership for Peace (PFP) program.
The report would include the type, description, duration,
objectives, the percentage of service-unique training
accomplished, and an assessment of the training value of each
CJCS and PFP exercise.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would include
exercises funded through the Cooperative Threat Reduction
Program. The conference agreement would also require the report
to include an assessment of the value provided through enhanced
military to military relationships between the participating
nations, and the extent to which the training exercises
enhanced the readiness capabilities of all forces involved in
the exercise.
Report on overseas deployment (sec. 332)
 The Senate amendment contained a provision (sec. 1033)
that would require the Department of Defense to report on the
number of personnel deployed overseas as of June 30, 1996 and
June 30, 1997. The report would distinguish between personnel
who are forward deployed as their permanent duty station and
those deployed overseas for temporary duty, such as service-
specific exercises, joint exercises, exercises with allies, and
deployments for contingency operations.
 The House bill contained no similar provision.
 The House recedes.

 Subtitle C--Environmental Provisions

Revision of membership terms for Strategic Environmental Research and
 Development Program Scientific Advisory Board (sec. 341)
 The House bill contained a provision (sec. 341) that
would amend section 2904(b)(4) of title 10, United States Code,
to provide that appointments to the Strategic Environmental
Research and Development Program (SERDP) Scientific Advisory
Board be for not less than two years and not more than four
years. The Department of Defense recommended this provision to
give the SERDP director the flexibility to fill unexpected
vacancies on the Board.
 The Senate amendment contained a similar provision.
 The Senate recedes.
Amendment to authority to enter into agreements with other agencies in
 support of environmental technology certification (sec. 342)
 The House bill contained a provision (sec. 342) that
would expand the authority of the Secretary of Defense under
section 327 of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201). Section 327 authorizes
the Secretary to initiate a program to provide for cooperative
agreements with state and local governmental agencies in
support of multi-state and regional certification of
environmental cleanup technologies. The House provision would
specifically authorize the Secretary to enter into agreements
with Indian tribes and would broaden the range of technologies
subject to evaluation for certification.
 The Senate amendment contained a provision (sec. 335)
that would require the Department to prepare guidelines for
cost-sharing related to the cooperative agreements authorized
under section 327.
 The Senate recedes with an amendment that would expand
the scope of the program as proposed in the House bill, but
require the Department of Defense to prepare guidelines and
meet expanded reporting requirements. The new authority would
become effective 30 days after the date of submission of the
guidelines required by the provision.
Modifications of authority to store and dispose of non-defense toxic
 and hazardous materials (sec. 343)
 The House bill contained a provision (sec. 344) that
would amend section 2692 of title 10, United States Code, to
clarify exemptions from the prohibition against Department of
Defense (DOD) storage or disposal of toxic or hazardous
material that is not owned by the Department. The
administration recommended this provision to ensure that the
Department has appropriate authority to control munitions
stored or disposed of in connection with the following DOD
activities: (1) storage of explosive and hazardous materials in
conjunction with space launch programs; (2) storage of member
personal property, such as guns, ammunition, and related
material, when such storage is in the interest of public
safety; (3) storage of allied/foreign munitions during joint
testing, exercises or coalition warfare; (4) storage of
explosives and hazardous materials in support of other U.S.
Government agencies, to include State and local law enforcement
agencies; (5) storage of contractor owned explosive materials
when performing a service for the benefit of the U.S.
Government; and (6) storage of commercial explosives on DOD
installations participating in full or partial privatization.
 The Senate amendment contained a similar provision (sec.
331).
 The Senate recedes with a clarifying amendment.
Annual report on payments and activities in response to fines and
 penalties assessed under environmental laws (sec. 344)
 The Senate amendment contained a provision (sec. 332)
that would require an annual report of fines and penalties
assessed against the Department of Defense (DOD) under Federal,
State, or local environmental laws.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Annual report on environmental activities of the Department of Defense
 overseas (sec. 345)
 The Senate amendment contained a provision (sec. 333)
that would require the Department of Defense (DOD) to report
annually on overseas environmental restoration, compliance, and
other international environmental activities.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.
 The conferees hold a strong interest in ensuring
appropriate oversight of funds used in support of the
Department's overseas environmental policy.
Review of existing environmental consequences of the presence of the
 United States Armed Forces in Bermuda (sec. 346)
 The Senate amendment contained a provision (sec. 1091)
that would require the Secretary of Defense, not later than 120
days after the date of enactment of this Act, to submit a
report to the congressional defense committees that describes
the remaining environmental effects of the presence of the
United States Armed Forces in Bermuda.
 The House bill contained no similar provision.
 The House recedes.
Sense of Congress on deployment of United States Armed Forces abroad
 for environmental preservation activities (sec. 347)
 The House bill contained a provision (sec. 1062) that
would express the sense of Congress that the United States
Armed Forces should not be deployed outside the United States
to provide assistance to another nation in connection with
environmental preservation activities within that nation.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Recovery and sharing of costs of environmental restoration at
 Department of Defense sites (sec. 348)
 In relation to Department of Defense cost-sharing
policies and practices at cleanup sites, the Senate amendment
contained a provision (sec. 337) that would direct the
Secretary of Defense to: (1) provide guidance to the military
departments and the Defense Logistics Agency (DLA) that
resolves current inconsistencies in recovering cleanup costs
from potentially responsible third parties; (2) require the
military departments and DLA to aggressively pursue future cost
reimbursement and recovery actions; (3) require the military
departments and the DLA to identify contractors or other
private third parties involved in contamination at Department
of Defense (DOD) sites; (4) require the military departments
and DLA to obtain all relevant data regarding contractors or
other responsible parties identified contributing to site
contamination, regardless of wrongdoing; (5) require the
military departments and DLA to gather and maintain the most
timely and accurate cost data available from the departments'
and other agencies' records; (6) require the military
departments and DLA to provide consistent estimates, including
all cleanup costs for DOD environmental reports to Congress,
regardless of the source of funds; and (7) require the military
departments to offset environmental restoration budget
requirements with amounts recovered from liable third parties
or contractors.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees note that there have been a series of
General Accounting Office (GAO) reports on DOD environmental
cleanup which indicate that the Department has incurred a
significant amount of cleanup expenses in instances in which a
third party may have contributed to the contamination of
government property. The GAO has reported that the DOD lacks
uniform guidance regarding the policies and practices for
recovery of such costs. The conferees have concluded that
inconsistent policies have contributed to a lack of focus and
minimal cost-recovery or cost-sharing at third party sites,
particularly at government-owned/contractor-operated
facilities.
Partnerships for investment in innovative environmental technologies
 (sec. 349)
 The House bill contained a provision (sec. 346) that
would support the administration's proposal to authorize the
Secretary of Defense to enter into partnerships with private
sector entities in order to demonstrate and validate innovative
environmental technologies. All partnership relationships would
be contingent upon a determination that there is a clear
potential for the technology to be of significant value to
Department of Defense environmental activities. The authority
would be subject to expiration three years after the enactment
of this Act and the Secretary of Defense would have to provide
annual reports to Congress on the use of this authority.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would: (1)
require the use of competitive procedures for the selection of
any private sector participants in a partnership; (2) require
that parties other than the Department of Defense provide at
least 50 percent of the funding in any partnership (not
including in-kind contributions or pre-existing investments);
(3) permit partnerships only in the case of technologies that
the Secretary determines would not be developed without the
commitment of Department of Defense funds and are likely to be
of significant value to the Department at a substantial number
of clean-up sites; and (4) require the Secretary to develop
appropriate regulations to ensure that all Department of
Defense funds committed to a partnership are expended to
develop the technologies authorized in the partnership
agreement.
 In addition, the amendment would require the Secretary of
Defense, before entering into any partnership, to evaluate: (1)
the potential for the technology to be used by the Department
for environmental remediation; (2) the technical feasibility
and maturity of the technology being considered; (3) the
adequacy of financial and management plans; (4) a cost and
benefit analysis of the proposed technologies; (5) the
potential for transfer or commercialization of the technology;
and (6) the proposed cost-sharing arrangement.
Procurement of recycled copier paper (sec. 350)
 The Senate amendment contained a provision (sec. 340)
that would codify and extend the Executive Order 12873
requirements for Federal agencies to increase the use of
recycled-content paper products, as specifically applied to the
Department of Defense (DOD). The provision would specifically
require the Department to use recycled-content copier paper, as
follows: 20 percent, January 1, 1998; 30 percent, January 1,
1999; and 50 percent, January 1, 2004, but if DOD is unable to
meet the 2004 deadline the Secretary of Defense must certify
that fact to Congress one year prior, which would vitiate the
deadline. The Department would not be required to meet any of
these deadlines if the cost differential between recycled-
content paper and virgin paper exceeds seven percent.
 The House bill contained no similar provision.
 The House recedes with an amendment that would replace
the seven percent cost differential with a requirement that the
relevant departmental secretary make a finding that there is a
``significant'' price difference between recycled-content and
virgin copier paper.
Pilot program for the sale of air pollution emission reduction
 incentives (sec. 351)
 The Senate amendment contained a provision (sec. 338)
that would support the administration's proposal to give the
military departments the authority to sell emission reduction
credits, also known as incentives. The provision directs the
Secretary of Defense to promulgate regulations that would
provide for the retention of the proceeds at the facility that
developed the credits for sale. The provision would also allow
for use of proceeds from the sale of emission reduction credits
to pay for fees and other charges associated with identifying,
quantifying, or valuing the credits.Subsequent to the
development of credits, less than $500,000 may be retained Defense-
wide.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.
 The conferees view the retention and use of proceeds at
the facility level as a key element of this provision. In
addition, the costs associated with identifying, quantifying,
or valuing a facility's emission reduction credits should not
be subject to the $500,000 cap on proceeds retention. Finally,
the conferees expect that this new authority would be utilized
at active facilities within the Department of Defense.

 Subtitle D--Depot-Level Activities

 The House bill contained six provisions (secs. 331-336)
that would govern the activities of the Department of Defense
(DOD) in relation to the maintenance and repair of military
equipment. The Senate amendment contained two similar
provisions, and seven additional provisions not contained in
the House bill.
 The conference agreement includes thirteen provisions
concerning depot maintenance policy. The conferees believe
these provisions will provide the Department with additional
flexibility to utilize the most efficient source of maintenance
and repair services that are consistent with the national
security requirements of the United States.
Definition of depot-level maintenance and repair (sec. 355)
 The House bill contained a provision (sec. 333(a)) that
would establish a statutory definition of depot-level
maintenance and repair, based on the definition contained in
current DOD regulations. This provision would require the
inclusion of all depot-level maintenance and repair, including
maintenance performed under other names such as interim
contractor support (ICS) and contractor logistics support
(CLS), for purposes of calculating the amount of depot
maintenance performed by public and private sector activities,
as required by section 2466 of title 10, United States Code,
and other applicable sections.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would codify a
definition of depot maintenance that is similar to the
definition contained in the House bill, except that it would
not include the procurement of a major weapon system
modification or upgrade designed to improve program
performance, the nuclear refueling of an aircraft carrier, or
the procurement of parts for a safety modification.
Core logistics capabilities of Department of Defense (sec. 356)
 The House bill contained a provision (sec. 334) that
would amend section 2464 of title 10, United States Code, to
make it clear that it is essential for national defense that
the Department of Defense (DOD) maintain a core logistics
capability that is government-owned and government-operated.
The provision would require the Secretary of Defense to
identify those logistics activities necessary to maintain a
core logistics capability that would include the capability,
facilities, and equipment to maintain and repair those weapons
systems necessary to meet the requirements of the National
Military Strategy.
 The provision would require that, within four years of
initial operational capability, DOD develop the capability to
repair new weapons systems purchased by the Department that are
identified as requiring a core logistics capability at
government-owned and government-operated facilities.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary of Defense to identify those logistics
capabilities that are necessary to maintain and repair the
weapon systems and other military equipment that are required
to enable the armed forces to fulfill the strategic and
contingency plans prepared by the Chairman of the Joint Chiefs
of Staff. The provision would require the performance of core
logistics workloads necessary to maintain this capability
within public depot activities.
 The provision does not require that maintenance for all
weapon systems necessary for the execution of DOD strategic and
contingency plans be performed at public facilities. Rather, it
requires that the capability to perform maintenance and repair
on these systems be retained in the public depot activities and
that these activities be assigned sufficient workload to ensure
that they are operated as cost efficiently as possible while
preserving sufficient surge capacity to support the strategic
and contingency plans of the U.S. Armed Forces. The conferees
recognize that an efficient operation that preserves this surge
capability does not require more than a single work shift at
the depots during peacetime.
 The conference agreement creates specific exemptions from
the core capability requirements, including an exemption for
commercial systems purchased by DOD where these purchases do
not constitute a majority of the sales of that item. The
provision would also make conforming changes to existing
sections of law.
Increase in percentage of depot-level maintenance and repair that may
 be contracted for performance by non-government personnel (sec.
 357)
 The Senate amendment contained a provision (sec. 311)
that would allow the Department of Defense to utilize private
entities to perform greater amounts of depot maintenance on
military equipment. The provision would allow each of the
military departments to spend up to 50 percent of their depot
maintenance funds on contracts for maintenance at locations
other than public depots. The remaining fifty percent of
funding would have to be expended for maintenance at public
depot activities; whether performed by government or non-
governmental personnel. This authority would become effective
on October 1, 1998.
 The House bill had no similar provision.
 The House recedes with an amendment that would allow the
military departments to increase from 40 percent to 50 percent
the share ofdepot level maintenance performed by the private
sector. These percentages would continue to be calculated based on
whether the maintenance is performed by public or private sector
personnel.
Annual report on depot-level maintenance and repair (sec. 358)
 The Senate amendment contained a provision (sec. 314)
that would require the Secretary of Defense to provide an
annual report to the Congress detailing the percentage of depot
maintenance funds used during the preceding fiscal year for
performance of depot-level maintenance and repair workloads at
public and private facilities. The provision would also require
that the Comptroller General of the United States provide the
Congress with his views on whether the Department of Defense
has complied with the requirements of section 2466 of title 10,
United States Code.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.
Requirement for use of competitive procedures in contracting for
 performance of depot-level maintenance and repair workloads
 formerly performed at closed or realigned military
 installations (sec. 359)
 The House bill contained a provision (sec. 333(b)) that
would restrict the Secretary of Defense, or the secretary of a
military department, from entering into a contract for the
performance of depot-level maintenance and repair at any
facility that was approved in 1995 for closure under the
Defense Base Closure and Realignment Act (BRAC), unless the
following requirements are met:
 (1) The secretary concerned would certify to the
 Congress that all of the other maintenance and repair
 facilities of that department are at 80 percent
 capacity, as defined by the BRAC Commission in 1995;
 (2) The secretary concerned would certify to the
 Congress that the total cost of the proposed contract
 would be less than if the depot-level maintenance or
 repair were accomplished in facilities owned and
 operated by the Department of Defense;
 (3) All of the data used to determine the total
 costs would be available for examination; and
 (4) None of the depot-level maintenance and repair
 work proposed under the contract was considered to be a
 core logistics capability of the military department
 concerned prior to July 1, 1995.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would replace
the restrictions on privatizing-in-place the workloads at the
closing public depot activities with a requirement to conduct
fair and open competitions for these workloads. The requirement
would only apply to those workloads that are proposed to be
competed for outsourcing after enactment of the National
Defense Authorization Act for Fiscal Year 1998. The requirement
does not apply to those workloads that may not be outsourced
because they are necessary to retain a core depot maintenance
capability in public depot activities, workloads that were
outsourced before the enactment of the National Defense
Authorization Act for Fiscal Year 1998, or workloads that would
be consolidated within another public depot activity.
 The provision outlines a number of requirements that the
Department of Defense must satisfy in the conduct of these
competitions. The conferees understand that these are only a
few of the issues that the Department will have to address in
the solicitation for, and consideration of, bids.
 (1) The source selection process must permit both public
and private offerors to submit bids.
 (2) The source selection process must take into account
the fair market value of any land, plant, or equipment at a
closed or realigned military installation that is proposed to
be used by the private offeror in the performance of the
workload.
 (3) The source selection process must take into account
the total direct and indirect costs that will be incurred by
the Department of Defense and the total direct and indirect
savings that will be derived by the Department of Defense. Such
savings would include any overhead savings (e.g., reduced
administrative costs, more efficient utilization of facilities)
that would result from the consolidation of workloads to the
remaining public depot activities.
 (4) The cost standards used to determine the depreciation
of facilities and equipment shall provide, to the maximum
extent practicable, identical treatment for all public and
private offerors. The conferees expect that this will include,
at a minimum, identical depreciation periods for plant and
equipment at public and private facilities.
 (5) Any offeror, whether public or private, must be
permitted to team with any other public or private entity to
perform the workload at any location or locations of their
choosing. The provision specifically states that no offeror may
be given any preferential consideration for, or in any way be
limited to, performing the workload at the closed or realigned
facility or at any other specific location. The conferees
expect full and open competitions for these workloads and
expect that private sector bidders would submit proposals to
perform these workloads at locations other than the closed or
realigned installations. The Department would be expected to
consider real differences among bidders in cost or capability
to perform the work based on factors that would include the
proposed location or locations of the workloads. The
consideration of such differences does not constitute
``preferential treatment.''
 (6) The provision would authorize the bundling of
unrelated workloads into one contract only if the Secretary of
Defense determines in writing that individual workloads cannot
be performed separately by qualified bidders as logically and
economically as the combined workloads can be performed by a
single entity. The conferees are concerned that the bundling of
these workloads could disadvantage bidders that are fully
qualified to perform one or more of the individual workloads
but cannot adequately perform all of the workloads combined.
This would allow more offerors to participate in the
competition and might yield increased savings to the taxpayer.
 (7) Before a request for proposal for these workloads can
be issued, the Secretary of Defense must provide the Congress
with a detailed directive or plan describing the procedures DOD
would use to conduct these competitions. The conferees expect
that the Secretary's report will explain any differences
between the evaluation criteria or other procedures that will
be used for these upcoming competitions and those that were
used in the recent competition for the C-5 aircraft maintenance
workload. The report should also describe any special
requirements or criteria for these competitions, whether
required by this provision or by the Department of Defense,
that the Department does not anticipate applying to future
public-private competitions that do not involve closed or
realigned facilities.
 The provision would also require that the Comptroller
General review the solicitations and competitions conducted
pursuant to this authority and determine if the Department has
complied with the requirements of this provision. The conferees
note that section 716 of title 13, United States Code, gives
the Comptroller General access to the information necessary to
make his determination. This section requires each agency to
provide the Comptroller General with all necessary information.
The Comptroller General is required to maintain the same level
of confidentiality for a record made available under this
section, as is required of the head of the releasing agency. On
the basis of this section, agencies have historically provided
the General Accounting Office with information on the conduct
of a procurement, regardless of whether a contract has yet been
awarded. The conferees expect the Air Force to provide similar
access in the case of public-private competitions covered by
this section.
 The conferees are concerned that access to information
was not provided to the Comptroller General during the recent
competition for the C-5 workload. The refusal on the part of
the Source Selection Authority and General Counsel of the Air
Force to provide such information is inexplicable given the
authority in title 13 cited above. The conferees note that the
legislation restricting access to source selection material
specifically states that ``[N]othing in this section shall be
construed to authorize the withholding of any information from
the Congress, any committee or subcommittee thereof, a Federal
agency, any board of contract appeals of a Federal agency, the
Comptroller General, or an Inspector General of a Federal
agency'' (41 U.S.C. 423).
 The new provision would also provide a mechanism for the
public depots (or any other offeror) to appeal directly to the
Secretary of Defense, or his designee, if they believe the
competition was conducted unfairly. The Secretary could not
designate the source selection authority or an official within
the same military department to perform this responsibility.
The conferees expect that the procedures established by the
Secretary will clarify that the Secretary need not consider on
the merits any protest that has alreadybeen decided on the
merits by the General Accounting Office.
 Finally, the provision would require the Secretary to
report to the Congress on the proposed allocation of workloads
currently performed at Kelly and McClellan Air Force Bases.
Although the report must include a capacity utilization
analysis based on the maximum potential capacity certified for
the 1995 Base Realignment and Closure Commission, the conferees
note that nothing precludes the Secretary from including
additional analysis that would utilize any alternative baseline
believed to be appropriate.
Clarification of prohibition on management of depot employees by
 constraints on personnel levels (sec. 360)
 The Senate amendment contained a provision (sec. 313)
that would prohibit the management of personnel who are
involved in depot maintenance on the basis of any constraint or
limitation in terms of man years, end strength, full-time
equivalent positions, or maximum number of employees.
 The House bill contained no similar provision.
 The House recedes.
 The conferees believe personnel assigned to perform depot
maintenance should be managed by the amount of workload
required to be performed and the amount of funds provided for
its performance.
Centers of industrial and technical excellence (sec. 361)
 The House bill contained a provision (sec. 335) that
would direct the Secretary of Defense to establish Centers of
Industrial and Technical Excellence at existing Department of
Defense (DOD) maintenance and repair depots to encourage the
reengineering of industrial processes, the adoption of best
business practices, and to enable public-private partnerships
for the performance of depot-level maintenance and repair.
 The Senate amendment contained a similar provision (sec.
312).
 The House recedes with an amendment that would apply the
provisions of section 2667(d) of title 10, United States Code,
and allow lease proceeds and other receipts from these
partnerships to be credited to the account that incurred the
costs. That credit would permit the centers to be reimbursed
for expenses related to these partnerships. The conferees
direct the Secretary of Defense to annually report to the
congressional defense committees on the revenues received
pursuant to this authority.
Extension of authority for aviation depots and naval shipyards to
 engage in defense related production and services (sec. 362)
 The House bill contained a provision (sec. 331) that
would extend through fiscal year 1999 the authority provided by
section 1425 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101--510) for naval shipyards and
aviation depots of all the military departments to bid on
defense-related production and services.
 The Senate amendment contained a similar provision (sec.
318) that would extend this authority through fiscal year 1998.
 The Senate recedes.
Repeal of conditional repeal of certain depot-level maintenance and
 repair laws and a related reporting requirement (sec. 363)
 The Senate amendment contained a provision (sec. 317)
that would repeal section 311 of the National Defense
Authorization Act for Fiscal Year 1996, which would have
repealed sections 2466 and 2469 of title 10, United States
Code, contingent upon the submission of a new policy by
Department of Defense (DOD) to replace those statutes. Section
311 would be irrelevant because the DOD failed to submit an
acceptable plan.
 The House bill contained no similar provision.
 The House recedes.
Personnel reductions, Army depots participating in Army Workload and
 Performance System (sec. 364)
 The House bill contained a provision (sec. 336) that
would prohibit any reduction in force of any civilian employees
at the five Army maintenance depots participating in the
demonstration and testing of the Army Workload and Performance
System (AWPS), until the Secretary of the Army certifies to the
Congress that the AWPS is fully operational and the manpower
audits being performed by the General Accounting Office, the
Army Audit Agency, and the Army Inspector General have been
completed.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment that would
prohibit the initiation of any reduction in force of any
civilian employees at the five Army maintenance depots
participating in the demonstration and testing of AWPS, until a
report is provided by the Secretary of the Army certifies to
the Congress that the AWPS is fully operational. This
prohibition does not apply to any reductions in force necessary
to implement the BRAC 1995 decisions at Letterkenny and Red
River Army Depots. The conferees believe that because this
personnel system is used to determine the number of employees
that are necessary to perform the work at the depots, it should
be operational before a determination is made regarding
additional reductions in force. The conferees do not view this
provision as a precedent for prohibiting reductions in force at
Department of Defense installations.
Report on allocation of core logistics activities among Department of
 Defense facilities and private sector facilities (sec. 365)
 The Senate amendment contained a provision (sec. 315)
that would require the Department of Defense to evaluate and
report to the Congress on an alternative set of criteria for
distinguishing core from non-core maintenance.
 The House bill contained no similar provision.
 The House recedes.
Review of use of temporary duty assignments for ship repair and
 maintenance (sec. 366)
 The Senate amendment contained a provision (sec. 316)
that would require the General Accounting Office to review the
Navy's policies for using Temporary Duty shipyard workers to
perform ship maintenance work at home ports.
 The House bill contained no similar provision.
 The House recedes.
Sense of Congress regarding realignment of performance of ground
 communication-electronic workload (sec. 367)
 The Senate amendment contained a provision (sec. 319)
that would express the Sense of the Congress that the transfer
of the ground communication-electronic workload to Tobyhanna
Army Depot, Pennsylvania, should be carried out in adherence to
the schedule prescribed for that transfer by the Defense Depot
Maintenance Council on March 13, 1997.
 The House bill contained no similar provision.
 The House recedes.

 Subtitle E--Commissaries and Nonappropriated Fund

Reorganization of laws regarding commissaries and exchanges and other
 morale, welfare, and recreation activities (sec. 371)
 The House bill contained a provision (sec. 361) that
would reorganize chapter 147 of title 10, United States Code,
so that the chapter deals exclusively with provisions of law
relating to commissaries, exchanges, and other morale, welfare
and recreation activities.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Merchandise and pricing requirements for commissary stores (sec. 372)
 The House bill contained a provision (sec. 362) that
would amend section 2486 of title 10, United States Code, to
restrict the categories of merchandise that may be sold in
commissaries; require that no change in the current commissary
surcharge could occur without a prior authorization in law; and
provide that the Secretary of Defense may not make any change
in pricing policies without advance notice to Congress and a
waiting period of 90 legislative days.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
that any proposed change to the authorized product list be
submitted annually and would establish, in law, that the amount
of the surcharge would be five percent of the sale price of
merchandise sold.
Limitation on noncompetitive procurement of brand-name commercial items
 for resale in commissary stores (sec. 373)
 The House bill contained a provision (sec. 363) that
would amend section 2486(e) of title 10, United States Code, to
make more rigorous the standard for determining brand name
commercial items that may be sold by commissaries.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Treatment of revenues derived from commissary store activities (sec.
 374)
 The House bill contained a provision (sec. 366) that
would provide that amounts received by the Defense Commissary
Agency (DECA) from certain sources be deposited in the
surcharge account.
 The Senate amendment contained a similar provision (sec.
351).
 The House recedes with an amendment that would not permit
earnings from the sale of tobacco products to be deposited in
the surcharge account.
Maintenance, repair, and renovation of Armed Forces Recreation Center,
 Europe (sec. 375)
 The conferees agree to a provision that would clarify the
authority of the Secretary of Defense to use appropriated funds
to maintain, repair, and renovate real property at the Armed
Forces Recreation Center, Europe.
Plan for use of public and private partnerships to benefit morale,
 welfare and recreation activities (sec. 376)
 The House bill contained a provision (sec. 365) that
would permit the Secretary of Defense to authorize
nonappropriated fund instrumentalities to enter into leases,
licensing agreements, concession agreements, and other
contracts with private persons and state or local governments
involving real and personal property under the control of such
nonappropriated fund instrumentalities in order to facilitate
the provision of facilities, goods, or services to authorized
patrons.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary of Defense to develop a comprehensive plan
defining the purpose and goals, and describing how the
Department would implement and administer leases, licensing
agreements, concession agreements, and other contracts with
private persons and state or local governments involving real
and personal property under the control of such nonappropriated
fund instrumentalities in order to facilitate the provision of
facilities, goods, or services to authorized patrons, and
submit the plan to the Congress.

 Instrumentalities

 Subtitle F--Other Matters

Assistance to local educational agencies that benefit dependents of
 members of the armed forces and Department of Defense civilian
 employees (sec. 381)
 The House bill contained a provision (sec. 371) that
would authorize $35.0 million for educational assistance to
local education agencies where the standard for the minimum
level of education within the state could not be maintained
because of the large number of military connected students or
the effects of base realignments and closures.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Center for Excellence in Disaster Management and Humanitarian
 Assistance (sec. 382)
 The Senate amendment contained a provision (sec. 362)
that would authorize the Secretary of Defense to operate a
Center for Excellence in Disaster Management and Humanitarian
Assistance at Tripler Army Medical Center to address the
military's role in a wide range of disaster initiatives
throughout Southeast Asia and the Pacific Basin region.
 The House bill contained no similar provision.
 The House recedes with an amendment that would not
require the location of this center to be at the Tripler Army
Medical Center.
Applicability of Federal printing requirements to Defense Automated
 Printing Service (sec. 383)
 The House bill contained a provision (sec. 377) that
would clarify that the Defense Automated Printing Service
(DAPS) shall comply with chapter 5 of title 44, United States
Code, regarding printing services.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment.
Study and notification requirements for conversion of commercial and
 industrial type functions to contractor performance (sec. 384)
 The House bill contained a provision (sec. 1412) that
would amend current law dealing with congressional notification
of any decision to study a commercial function of the
Department of Defense for possible outsourcing to the private
sector, and any decision to ultimately outsource such a
function.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would amend
current law to expand congressional notifications and to
include a timetable for conversion to contractor performance.
Collection and retention of cost information data on contracted out
 services and functions (sec. 385)
 The House bill contained a provision (sec. 1413) that
would require the Secretary of Defense to collect and
permanently retain, cost information data regarding performance
of the service or function by private contractor employees.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would limit the
time that the data would have to be retained to ten years.
Financial assistance to support additional duties assigned to Army
 National Guard (sec. 386)
 The Senate amendment contained a provision (sec. 364)
that would authorize the Secretary of the Army to contribute
funds to the Army National Guard in order to pay for the costs
of those services carried out by the Guard in the performance
of maintenance and other responsibilities of the Secretary.
 The House bill contained no similar provision.
 The House recedes.
Competitive procurement of printing and duplication services (sec. 387)
 The House bill contained a provision (sec. 1404) that
would extend the authority under the fiscal year 1996 act that
would require the Secretary of Defense to procure 70 percent of
the non-classified printing services from the commercial
sector. The provision would also prohibit the Defense
Automation and Printing Service from imposing a surcharge on
printing and duplication services when those services are
procured outside the Department of Defense.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Continuation and expansion of demonstration program to identify
 overpayments made to vendors (sec. 388)
 The House bill contained a provision (sec. 376) that
would reauthorize, through fiscal year 1998, section 354 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106), which provides for a demonstration program to
identify overpayments made to vendors. The authority provided
by this specific provision is restricted to the identification
of any overpayments and does not extend to the collection of
debts. Authority for the procurement of debt collection
services is already provided by section 3718 of title 31,
United States Code.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the General Accounting Office to review the program and report
to Congress any significant findings such as the amount of
funds that were recovered, together with any problems that
occurred during the collection of these funds.
Standard forms regarding performance work statement and request for
 proposal for conversion of services and functions at military
 installations (sec. 389)
 The House bill contained a provision (sec. 1411) that
would require the Secretary of Defense to develop standard
performance work statements and standard requests for proposal
to be used when considering outsourcing of commercial
functions. The use of such forms would provide relief from
certain cumbersome procedures and requirements of OMB circular
A-76.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would allow the
Secretary to develop certain forms to meet the requirements of
A-76. The conferees encourage the Secretary, when developing
such forms, to give priority to services and functions that
have already been converted by 50 percent.
Base operations support for military installations on Guam (sec. 390)
 The House bill contained a provision (sec. 378) that
would prohibit the use of nonimmigrant aliens, as defined in
section 101(a)(15)(H)(ii) of title 8, United States Code, for
any base operations support contract to be performed on Guam.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Warranty claims recovery pilot program (sec. 391)
 The Senate amendment contained a provision (sec. 367)
that would authorize a pilot program to recover any refunds
owed the Air Force for maintenance work performed in public
depots on aircraft engines while under warranty. Receipts under
this program would be returned to the appropriations account
from which the maintenance work was funded.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the Comptroller General to review this program and report the
results to the Congress.
Program to investigate fraud, waste, and abuse within Department of
 Defense (sec. 392)
 The House bill contained a provision (sec. 372) that
would authorize the continuation of Operation Mongoose through
fiscal year 2003. The section would establish the Under
Secretary of Defense (Comptroller) as the executive agent for
this program and would require a report on the activities of
the operation.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that permanently
provides for a program in the Department of Defense that
coordinates the identification and prevention of fraudulent
financial actions within Department of Defense (DOD). The
conferees support the acceleration of transportation and vendor
pay review and believe in expanding the program to use
information from other government agencies to detect fraud
within DOD. By mining financial information, the Department
ofDefense would be able to expand its current fraud detection efforts
to improve the integrity of its financial management systems while
reducing waste, fraud, and abuse.
 In addition, the conferees direct the Secretary of
Defense to provide a report to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives by December 31, 1997, on the
activities reviewed by Operation Mongoose, the savings or costs
avoidance identified by activity, the number of cases referred
for investigation, and the number of cases investigated by the
investigating agency.
Multitechnology automated reader card demonstration program (sec. 393)
 The Senate bill contained a provision (sec. 369) that
would require the Secretary of the Navy to carry out a two year
demonstration program during 1998 and 1999 to expand the use of
multitechnology automated reader cards throughout the Navy and
Marine Corps. This demonstration would include the use of
``smartship'' technology.
 The House bill included no similar provision.
 The House recedes.
Plan for reduction in overhead costs of inventory control points (sec.
 394)
 The House bill contained a provision (sec. 1421) that
would require the Secretary of Defense to develop and implement
a plan to reduce the overhead costs of the supply management
activities of the Defense Logistics Agency and the military
services to eight percent of the annual net sales.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the development of a plan on how the Department will reduce its
overhead costs of the Inventory Control Points (ICPs) to eight
percent by October 1, 2000.
Schedule for implementation of best inventory management practices at
 Defense Logistic Agency (sec. 395)
 The Senate amendment contained a provision (sec. 366)
that would direct the Director of the Defense Logistics Agency
to develop and submit to Congress a schedule for the
implementation of the best inventory management practices found
in the commercial sector that are consistent with military
requirements.
 The House bill contained no similar provision.
 The House recedes with an amendment that would expand the
list of items to include pharmaceutical, automotive, and other
supplies.
 The conferees are concerned with recent reports of the
excess inventory maintained by the Department of Defense. The
retention of this inventory requires the expenditure of
resources for storage and administration. The conferees note
the recent General Accounting Office report outlining the
significant quantities of excess inventory prepositioned in
Europe and direct the Department to take those actions
necessary to reduce the items for which there is no identified
need and where disposal would result in long-term savings to
the Federal Government.

 Legislative Provisions Not Adopted

Quarterly reports on execution of operation and maintenance
 appropriations
 The House bill contained a provision (sec. 317) that
would require the Secretary of Defense to report quarterly on
the execution of the operation and maintenance budget.
 The Senate amendment contained no similar provision.
 The House recedes.
Exclusion of certain large maintenance and repair projects from
 percentage limitation on contracting for depot-level
 maintenance
 The House bill contained a provision (sec. 332) that
would exclude from the restrictions contained in section 2466
of title 10, United States Code, an aircraft carrier or a
submarine repair or overhaul project that represents five
percent or more of the total amount made available to the
Department of the Navy for depot-level maintenance and repair.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees agree that the exception to the definition
of depot maintenance for the refueling of nuclear aircraft
carriers contained within section 355 of the Act together with
the additional flexibility provided by the change from 60/40 to
50/50, should provide the same flexibility the House bill
intended to provide.
Authorization to pay negotiated settlement for environmental cleanup at
 former department of defense sites in Canada
 The House bill contained a provision (sec. 343) that
would authorize the Secretary of Defense to pay the Government
of Canada up to $100.0 million through annual payments over a
ten year period for the environmental cleanup of four sites
formerly operated by the U.S. Armed Forces in Canada: 21
Distant Early Warning (DEW) Line sites; Goose Bay Airfield;
Haines-Fairbanks Pipeline sites; and the U.S. Naval Station,
Argentia. The authorization request was based on a bilateral
agreement between the United States and Canada. The agreement
provided for the payment of the $100.0 million into the Foreign
Military Sales (FMS) Trust Fund Account so that the Canadian
Government could draw against this account to purchase
unspecified military equipment from an undetermined
manufacturing source.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees decline to provide the requested
authorization and direct the Department to focus on funding and
conducting environmental cleanup at sites where there is an
existing legal obligation.
Revision of report requirement of Navy program to monitor ecological
 effects of organotin
 The House bill contained a provision (sec. 345) that
would extend the date and expand the scope of a reporting
requirement originally established in section 333 of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201).
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees intend to monitor the progress made by the
Environmental Protection Agency (EPA) and the Navy in
implementation of criteria established by EPA for control of
organotin. If the permitting process is not consistent with the
EPA criteria, the conferees are prepared to revisit this issue
in relation to the Department's fiscal year 1999 budget
request.
Pilot program to test an alternative technology for eliminating solid
 and liquid waste emissions during ship operations
 The House bill contained a provision (sec. 347) that
would authorize the Secretary of the Navy to establish a pilot
program to demonstrate plasma arc technology for treating
shipboard solid and liquid waste. The technology would consist
of a compact, stationary, high alumina refractory hearth,
plasma arc melter system for incineration of waste.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees note that the Navy is currently
investigating the applications of plasma arc technology for the
destruction of shipboard solid waste. That work is taking place
in an approved research and development program. As a part of
that program, the Navy tested the feasibility of using a high
alumina refractory hearth for shipboard applications and
determined that the hearth structure was unacceptable because
the variable shipboard waste streams produce a molten slag that
dissolves high alumina hearth walls. However, that was only one
aspect of the plasma arc technology research and development
efforts. Therefore, the conferees encourage the Navy to
continue its current effort to develop the plasma arc thermal
destruction technology.
Transfer of jurisdiction over exchange, commissary, and morale, welfare
 and recreation activities to Under Secretary of Defense
 Comptroller
 The House bill contained a provision (sec. 364) that
would amend section 135 of title 10, United States Code, to
transfer administrative responsibility within the Department of
Defense for the areas of exchange, commissary, and
nonappropriated fund instrumentalities regarding morale,
welfare and recreation activities from the Under Secretary of
Defense for Personnel and Readiness to the Under Secretary of
Defense (Comptroller).
 The Senate amendment contained no similar provision.
 The House recedes.
Authorized use of appropriated funds for relocation of Navy Exchange
 Service Command
 The House bill contained a provision (sec. 367) that
would provide that the Navy Exchange Service Command (NEXCOM)
shall not be required to reimburse the United States for
appropriated funds allotted to NEXCOM during fiscal years 1994,
1995, and 1996 for costs incurred in connection with the
relocation of NEXCOM headquarters to Virginia Beach, Virginia
and for the lease of headquarters space.
 The Senate amendment contained no similar provision.
 The House recedes.
Prohibition on use of Special Operations Command budget for base
 operation support
 The House bill contained a provision (sec. 375) that
would amend section 167(f) of title 10, United States Code, to
prohibit the use of funds provided for the Special Operations
Command for base operations support expenses incurred at
military installations.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees note that Congress established the Special
Operations Command, including a separate major force budget
program (MFP-11), to correct serious deficiencies in special
operations capabilities and to ensure special operations combat
readiness. The conferees believe that the regular practice of
using MFP-11 funds for base operations support would be in
conflict with the original intent for these funds. However, the
conferees recognize the need to provide the Commander-in-Chief
of the Special Operations Command with the flexibility to use
these funds in this manner should the necessity arise.
Therefore, the conference agreement does not contain this
provision. However, the conferees intend to monitor this issue
closely to ensure that MFP-11 funds are used in a manner
consistent with the intentions of Congress and agree to revisit
the issue should the need arise.
Availability of funds for separation pay for defense acquisition
 personnel
 The House bill contained a provision (sec. 1303) that
would authorize $100.0 million in operations and maintenance
funding for payment of separation pay to the Department of
Defense civilian acquisition personnel.
 The Senate amendment contained no similar provision.
 The House recedes.
Competitive procurement of finance and accounting services
 The House bill contained a provision (sec. 1401) that
would require the Secretary of Defense to competitively procure
finance and accounting services currently provided by the
Defense Finance and Accounting Service from among government
and private sector sources.
 Senate amendment contained no similar provision.
 The House recedes.
Competitive procurement of services to dispose of surplus defense
 property
 The House bill contained a provision (sec. 1402) that
would require the Secretary of Defense to make available for
competition those functions of the Defense Reutilization and
Marketing Service that are associated with the disposal of
surplus Department of Defense property.
 The Senate amendment contained no similar provision.
 The House recedes.
Competitive procurement of functions performed by Defense Information
 Systems Agency
 The House bill contained a provision (sec. 1403) that
would require the Secretary of Defense to competitively procure
commercial and industrial type functions performed by the
Defense Information Systems Agency.
 The Senate amendment contained no similar provision.
 The House recedes.
Competitive procurement of commercial and industrial type functions by
 defense agencies
 The House bill contained a provision (sec. 1406) that
would require the Secretary of Defense to competitively procure
commercial and industrial type functions performed by defense
agencies.
 The Senate amendment contained no similar provision.
 The House recedes.
Consolidation of procurement technical assistance centers and
 electronic commerce resource centers
 The House bill contained a provision (sec. 1422) that
would require consolidation of the Procurement Technical
Assistance Center (PTAC) and the Electronic Commerce Resource
Center (ECRC) programs in fiscal year 1998. The provision would
also require the use of competitive procedures in granting
awards under the consolidated program.
 The Senate amendment contained no similar provision.
 The House recedes.
Risk assessments under the defense environmental restoration program
 The Senate amendment contained a provision (sec. 336)
that would direct the Secretary of Defense to define the
elements of a relative risk site evaluation methodology, to
develop uniform guidance for site assessment and ranking, and
to ensure consistent application of the guidance. The
Department's relative risk site evaluation involves three site
categories for justifying requirements and allocating funds:
high; medium; and low. According to the Department, the high
relative risk sites are given a greater funding priority than
the medium and low relative risk sites.
 The House bill contained no similar provision.
 The Senate recedes.
Tagging system for identification of hydrocarbon fuels used by the
 Department of Defense
 The Senate amendment contained a provision (sec. 339)
that would authorize the Department of Defense to conduct a
pilot program to determine if hydrocarbon fuels used by the
Department can be tagged in order to deter theft and facilitate
the determination of the source of surface and underground
pollution in locations having separate fuel storage facilities
from the Department and civilian companies.
 The House bill contained no similar provision.
 The Senate recedes.
Report on options for the disposal of chemical weapons and agents
 The Senate amendment contained a provision (sec. 341)
that would require the Secretary of Defense to submit a report
to Congress on the options available to the Department of
Defense for the disposal of chemical weapons and agents without
building additional chemical weapons disposal facilities in the
continental United States.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees note that the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106)
directed the Secretary of Defense to conduct an assessment of
the chemical stockpile disposal program and to consider
measures that could be taken to reduce program costs. Further
discussion on the results of the assessment are addressed
elsewhere in the statement of managers.
Integration of military exchange services
 The Senate amendment contained a provision (sec. 352)
that would require the secretaries of the military departments
to integrate the three military exchange systems by September
30, 2000.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees endorse the concept of exchange
integration. The conferees recognize that the Department of
Defense is currently conducting a due diligence study to
determine which functions could be integrated to yield savings
and efficiencies while preserving high levels of customer
service. The conferees direct the Secretary of Defense, upon
completion of the due diligence study and if the study so
recommends, to develop a plan for integrating the functions
identified in the report. The plan must include a timeline for
accomplishing each of the integration functions. The plan shall
be submitted to the Congress not later than 120 days after the
due diligence study is completed.

 Title IV--Military Personnel Authorizations

 LEGISLATIVE PROVISIONS ADOPTED

 Subtitle A--Active Forces

End strengths for active forces (sec. 401)
 The House bill contained a provision (sec. 401) that
would authorize end strengths for the active forces, as
indicated in the table below:

------------------------------------------------------------------------
 Fiscal year 1998--
 Service ----------------------------
 Request Recommendation
------------------------------------------------------------------------
Army....................................... 495,000 495,000
Navy....................................... 390,802 395,000
Marine Corps............................... 174,000 174,000
Air Force.................................. 371,577 381,000
 ----------------------------
 Total................................ 1,431,379 1,445,000
------------------------------------------------------------------------

 The Senate amendment contained a provision (sec. 401)
that would authorize active duty end strengths for fiscal year
1998, as shown below:

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request recommendation
------------------------------------------------------------------------
Army:..........................
 Total...................... 495,000 495,000 485,000
 Officers................... 80,300 ........ 80,300
Navy:..........................
 Total...................... 407,318 390,802 390,802
 Officers................... 56,265 ........ 55,695
Marine Corps:..................
 Total...................... 174,000 174,000 174,000
 Officers................... 17,978 ........ 17,978
Air Force:.....................
 Total...................... 381,000 371,577 371,577
 Officers................... 74,458 ........ 72,732
------------------------------------------------------------------------

 The House recedes with an amendment that would authorize
active duty end strengths for fiscal year 1998 as shown below:

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request authorization
------------------------------------------------------------------------
Army........................... 495,000 495,000 495,000
Navy........................... 407,318 390,802 390,802
Marine Corps................... 174,000 174,000 174,000
Air Force...................... 381,100 371,577 371,577
 ----------------------------------------
 Total.................... 1,457,418 1,431,379 1,431,379
------------------------------------------------------------------------

Permanent end strength levels to support two major regional
 contingencies (sec. 402)
 The Senate amendment contained a provision (sec. 402)
that would repeal section 691 of title 10, United States Code,
as amended by section 402 of the National Defense Authorization
Act for Fiscal Year 1997.
 The House bill contained a similar provision.
 The House recedes with an amendment that would amend
section 691 of title 10, United States Code to make the end
strength floors consistent with the active duty end strengths
authorized in section 401 of the conference agreement.
Additionally, the amendment would provide the Army one and one-
half percent flexibility below the floor while retaining one
percent flexibility for the Navy, Marine Corps and the Air
Force.
 The conferees are concerned about the strains being
placed on military personnel and their families. There is an
apparent incongruence between the number and frequency of
deployments, the extraordinary pace of operations, and the
continued pressure through the budget process to reduce
military personnel levels. The conferees intend to continue to
examine closely and challenge, as appropriate, any
recommendations of the Department of Defense, the Quadrennial
Defense Review, or the National Defense Panel to further reduce
military personnel. The conferees will be especially vigilant
for reductions in military personnel levels that appear to be
driven purely by budget pressures, and not supported by the
fielding modern systems that require fewer personnel or changes
in the requirements of the national military strategy.
 The conferees note that section 691 of title 10, United
States Code, as amended by the conference report, requires the
Secretary of Defense to fully fund and maintain the end
strength floors in future budgets.

 Subtitle B--Reserve Forces

End strengths for Selected Reserve (sec. 411)
 The House bill contained a provision (sec. 411) that
would authorize end strengths for the Selected Reserve as
indicated in the table below:

------------------------------------------------------------------------
 Fiscal Fiscal year 1998--
 year 1997 -------------------------
 authorized Request Recommendation
------------------------------------------------------------------------
ARNG.............................. 366,758 366,516 366,516
USAR.............................. 215,179 208,000 208,000
USNR.............................. 96,304 94,294 94,294
USMCR............................. 42,000 42,000 42,000
ANG............................... 109,178 107,377 107,377
USAFR............................. 73,311 73,431 73,431
Coast Guard....................... 8,000 8,000 8,000
 -------------------------------------
 Total....................... 910,730 899,618 899,618
------------------------------------------------------------------------

 The Senate amendment contained a provision (sec. 411)
that wouldauthorize Selected Reserve end strengths for fiscal
year 1998 as shown below:

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................. 366,758 366,516 361,516
The Army Reserve............... 215,179 208,000 208,000
The Naval Reserve.............. 96,304 94,294 94,294
The Marine Corps Reserve....... 42,000 42,000 42,000
The Air National Guard of the
 United States................. 109,178 107,377 108,002
The Air Force Reserve.......... 73,311 73,431 73,542
The Coast Guard Reserve........ 8,000 8,000 8,000
------------------------------------------------------------------------

 The House recedes with an amendment that would authorize
Selected Reserve end strengths for fiscal year 1998 as shown
below:

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................. 366,758 366,516 361,516
The Army Reserve............... 215,179 208,000 208,000
The Naval Reserve.............. 96,304 94,294 94,294
The Marine Corps Reserve....... 42,000 42,000 42,000
The Air National Guard of the
 United States................. 109,178 107,377 108,002
The Air Force Reserve.......... 73,311 73,431 73,447
The Coast Guard Reserve........ 8,000 8,000 8,000
------------------------------------------------------------------------

 The conferees recommend an Army National Guard end
strength below the 1998 request as a result of the Off-Site
Review the Army announced on June 5, 1997, in which the active
Army, the Army Reserve, and the Army National Guard agreed on
personnel reductions recommended by the Quadrennial Defense
Review. The conferees recommend increased end strengths for the
Air National Guard and the Air Force Reserve to accommodate
retention of the PAA C-130 aircraft at current levels. The
conferees also recommend an adjustment to the Air Force Reserve
end strength consistent with the recommendation that would
prohibit the Secretary of the Air Force from replacing civilian
base security personnel with active guard and reserve
personnel. The conferees adjusted the recommended authorization
of appropriations to reflect these recommendations.
End strengths for Reserves on active duty in support of the Reserves
 (sec. 412)
 The House bill contained a provision (sec. 412) that
would authorize the end strengths of the reserves on active
duty in support of the reserves as indicated in the table
below. These end strengths are included within the total end
strengths authorized for the Selected Reserve.

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request recommendation
------------------------------------------------------------------------
ARNG........................... 22,798 22,310 22,310
USAR........................... 11,729 11,500 11,500
USNR........................... 16,603 16,136 16,136
USMCR.......................... 2,559 2,559 2,559
ANG............................ 10,403 10,616 10,616
USAFR.......................... 655 963 748
 ----------------------------------------
 Total.................... 64,747 64,084 63,869
------------------------------------------------------------------------

 The Senate amendment contained a provision (sec. 412)
that would authorize full-time support end strengths for fiscal
year 1998 as shown below:

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................. 22,798 22,310 22,310
The Army Reserve............... 11,729 11,500 11,500
The Naval Reserve.............. 16,603 16,136 16,136
The Marine Corps Reserve....... 2,559 2,559 2,559
The Air National Guard of the
 United States................. 10,403 10,616 10,671
The Air Force Reserve.......... 655 963 963
------------------------------------------------------------------------

 The House recedes with an amendment that would authorize
full-time support end strengths for fiscal year 1998 as shown
below:

------------------------------------------------------------------------
 Fiscal year--
 ----------------------------------------
 1997 1998 1998
 authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................. 22,798 22,310 22,310
The Army Reserve............... 11,729 11,500 11,500
The Naval Reserve.............. 16,603 16,136 16,136
The Marine Corps Reserve....... 2,559 2,559 2,559
The Air National Guard of the
 United States................. 10,403 10,616 10,671
The Air Force Reserve.......... 655 963 867
 ----------------------------------------
 Total.................... 64,747 53,468 53,372
------------------------------------------------------------------------

 The recommended change to the end strength for reserves
on active duty in support of the Air Force Reserve results from
an increase to support the retention of C-130 PAA aircraft at
the current levels, a reduction from the budget request
consistent with the recommendation that would prohibit the
Secretary of the Air Force from replacingcivilian base security
personnel with active guard and reserve personnel, and an increase to
accommodate the creation of deployable force protection teams in the
Air Force Reserve. The conferees adjusted the recommended authorization
of appropriations to reflect these changes.
 Additionally, the conferees are concerned about a range
of issues related to management, utilization, and assignment of
persons participating in the active guard and reserve programs.
The committees of jurisdiction intend to examine these matters
during the second session of the 105th Congress.
End strengths for military technicians (dual status) (sec. 413)
 The House bill contained a provision (sec. 413) that
would authorize military technician end strength as indicated
by the fiscal year 1998 recommendation below and would require
future defense budget requests to include a legislative
provision specifically detailing the end strength of the dual
status military technicians to be authorized.

------------------------------------------------------------------------
 Fiscal year--
 -----------------------------------
 Service 1997 1998 1998
 program request recommendation
------------------------------------------------------------------------
ARNG................................ 23,125 22,991 23,125
USAR................................ 5,503 5,205 5,503
ANG................................. 22,853 22,574 22,853
USAFR............................... 9,802 9,622 9,802
 -----------------------------------
 Total......................... 61,283 60,392 61,283
------------------------------------------------------------------------

 The Senate amendment contained a provision that increased
above the budget request the authorized levels of military
technicians in the Air National Guard and in the Air Force
Reserve to support revised C-130 aircraft levels (sec. 413).
 The Senate recedes.

 Subtitle C--Authorization of Appropriations

Authorization of appropriations for military personnel (sec. 421)
 The House bill contained a provision (sec. 421) that
would authorize $69,539,862,000 to be appropriated for military
personnel, an increase of $66,100,000 to the budget request.
 The Senate amendment contained a provision (sec. 421)
that would authorize $69,244,962,000 to be appropriated to the
Department of Defense for military personnel.
 The House recedes with an amendment that would authorize
$69,470,505,000 to be appropriated for military personnel.
 The conferees recommended the following modifications to
the budget request for military personnel:

Fisal year 1998 Military Personnel Budget Items

 [In millions of dollars]

Increases:
 Fed. Civilian Military Leave.................................. 85.0
 C-130 Force Structure (AFR & ANG)............................. 5.4
 Army End Strength Separation Cost............................. 90.0
 Increase Family Separation Pay................................ 25.0
 Field Duty Income Protection.................................. 18.0
 Increase Hazardous Incentive Pay.............................. 22.1
 Dental Pay Incentives......................................... 15.0
 WWII Subsistence Allowances................................... 1.0
 Transfer from Contigency Operations Funds..................... 213.6
 Total Adds.................................................. 475.1
Reductions:
 FY 98 AC End Strength Underexecution Savings.................. 297.5
 Army...................................................... 240.0
 Navy...................................................... 10.0
 USMC...................................................... 3.6
 Air Force................................................. 43.9
 USAF 15-year Retirement Savings............................... 58.5
 Army NG 5K End Strength Reduction............................. 22.0
 RC Support Total Force........................................ 13.0
 Health Professional Scholarship............................... 25.6
 Foreign Currency Fluctuation.................................. 62.0
 -----------------------------------------------------------------
 ________________________________________________
 Total reductions............................................ 478.6
Net Change from President's Budget................................ -3.5

 LEGISLATIVE PROVISIONS NOT ADOPTED

Increase in number of members in certain grades authorized to serve on
 active duty in support of the reserves
 The House bill contained a provision (sec. 414) that
would authorize increases in the grades of reserve members
authorized to serve on active duty or on full-time national
guard duty for the administration of the reserves or the
national guard.
 The Senate amendment contained no similar provision.
 The House recedes.

 Title V--Military Personnel Policy

 ITEMS OF SPECIAL INTEREST

Personal finance training
 The conferees are concerned about reports of personal
financial difficulties being experienced by military personnel,
especially lower ranking personnel. The conferees commend the
Department of Defense and the services for their on-going
efforts to assist and educate young service members and their
families in ways and means of successfully managing their
personal finances. The conferees urge theSecretary of Defense
and the Secretaries of the Military Departments to review the adequacy
of their training programs with regard to personal finance training to
ensure a continuum of training that would provide all service members
with the basic skills required to manage their personal finances. These
courses should include checkbook management, credit card management,
and debt management.
Sequester of Department of Defense funds as a result of a prohibition
 against military recruiting on campuses of Connecticut State
 colleges and universities
 The conferees are aware that the Connecticut State
Legislature and the State Supreme Court have taken steps to
prohibit military recruiting on the campuses of state funded
colleges and universities. As a result of this prohibition, and
in accordance with section 558 of the National Defense
Authorization Act for Fiscal Year 1995, the Department of
Defense suspended payment of contract and grant funding to
these colleges and universities.
 The conferees note that the Connecticut State Legislature
is not scheduled to meet until February 1998. The Governor has
pledged that he will ensure the passage of legislation that
would remedy the matter concerning access of military
recruiters to Connecticut state institutions of higher
education.
 In order to provide the State of Connecticut with the
opportunity to repeal its prohibition, the conferees direct the
Secretary of Defense not to use funds that would have been used
for contracts or grants to higher education institutions in
Connecticut as sources in a reprogramming request nor to submit
such funds as part of a rescission offer until March 29, 1998.
If the State of Connecticut has not repealed the prohibition as
of March 29, 1998, the Secretary of Defense may use the funds
in a reprogramming or rescission activity.
 Notwithstanding this sequestering of funds, the conferees
insist that military recruiters be afforded access to
institutions of higher education or face the consequence of
loss of federal funds.

 Legislative Provisions Adopted

 Subtitle A--Officer Personnel Policy

Limitation on number of general and flag officers who may serve in
 positions outside their own service (sec. 501)
 The House bill contained a provision (sec. 501) that
would limit the number of general and flag officers serving in
external assignments to no more than 24.5 percent of the total
number of such officers authorized by Congress.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would establish
the number of general and flag officers serving in external
assignments to no more than 26.5 percent of the total number of
such officers authorized by Congress, and would increase the
length of time a general or flag officer may serve in a Joint
Task Force without counting against the limit imposed by this
provision.
 The conferees agree that the limit is computed in the
aggregate and not by individual service, and that the
designation of ``dual-hatted'' positions as external or
internal service billets shall be in accordance with service
policies and regulations.
Exclusion of certain retired officers from limitation on period of
 recall to active duty (sec. 502)
 The House bill contained a provision (sec. 502) that
would exclude retired military chaplains, health care
professionals, and officers serving on the American Battle
Monuments Commission from being subject to the statutory limits
on the period of time that recalled retirees may serve on
active duty.
 The Senate amendment contained a similar provision (sec.
504).
 The Senate recedes with a clarifying amendment.
Clarification of officers eligible for consideration by promotion
 boards (sec. 503)
 The House bill contained a provision (sec. 503) that
would clarify that officers serving on active duty and in the
reserve components may be excluded from consideration from
promotion to the next higher grade if they are on a promotion
board report, even if that report had not yet been approved by
the President.
 The Senate amendment contained a similar provision.
 The House recedes with a clarifying amendment.
Authority to defer mandatory retirement for age of officers serving as
 chaplains (sec. 504)
 The House bill contained a provision (sec. 504) that
would repeal the prohibition on Navy chaplains on the retired
list from serving as the Chief or Deputy Chief of Chaplains in
the Navy. This provision would also increase the mandatory
retirement age for the Chief or Deputy Chief of Chaplains in
the Navy from 62 to 68 years of age. In addition, the provision
would permit service secretaries to defer the retirement of
officers serving as chaplains until age 68 if the chaplains
served in direct support of units and installations.
 The Senate amendment contained a similar provision.
 The Senate recedes with an amendment that would permit
service secretaries to defer the retirement of chaplains until
age 68 as long as the secretary considers the deferment in the
best interest of the service.
Increase in number of officers allowed to be frocked to grades of
 colonel and Navy captain (sec. 505)
 The Senate amendment contained a provision (sec. 502)
that would increase the number of officers who may wear the
grade and insignia of an O-6 (colonels in the Army, Air Force,
and Marine Corps and captains in the Navy).
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Increased years of commissioned service for mandatory retirement of
 regular generals and admirals in grades above major general and
 rear admiral (sec. 506)
 The Senate amendment contained a provision (sec. 505)
that would increase the mandatory retirement point for three-
star generals and admirals to 38 years of commissioned service
and for four-star generals and admirals to 40 years of
commissioned service.
 The House bill contained no similar provision.
 The House recedes.
 The conferees do not intend that all three- and four-star
officers be allowed to serve to the increased mandatory
retirement points. The mandatory retirement points were
increased to permit certain general and flag officers to serve
long enough to develop and implement the long-term plans and
policies required of certain senior positions without
jeopardizing their chances of serving in positions of increased
responsibility before reaching mandatory retirement. The
conferees recognize that the improper implementation of this
provision could have serious effects on the promotion flow
points to other grades. The services retain all of their
general and flag officer management tools which enable them to
manage the career of those officers who become the most senior
leaders within the military services without negatively
affecting the career opportunities for junior officers.
Uniform policy for requirement of exemplary conduct by commanding
 officers and others in authority (sec. 507)
 The Senate amendment contained a provision (sec. 554)
that would establish, in statute, exemplary standards for
commanding officers and others in positions of authority and
responsibility.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Report on the command selection process for District Engineers of the
 Army Corps of Engineers (sec. 508)
 The Senate amendment contained a provision (sec. 1079)
that would require the Secretary of Defense to report to the
Congress concerning the selection and assignment policies and
procedures pertaining to District Engineers of the Army Corps
of Engineers.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the Secretary of the Army to provide the report to the
Congress.

 Subtitle B--Reserve Component Matters

Individual Ready Reserve activation authority (sec. 511)
 The House bill contained a provision (sec. 511) that
would authorize the President, under the Presidential Selective
Reserve Call-up authority, to recall up to 30,000 members of a
new category of the Individual Ready Reserve that would consist
of those personnel, in the military skills designated by the
Secretary of Defense, who had volunteered for this category
prior to leaving active duty.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Termination of Mobilization Income Insurance Program (sec. 512)
 The House bill contained a provision (sec. 512) that
would terminate the Ready Reserve Mobilization Income Insurance
Program effective upon enactment of the National Defense
Authorization Act for Fiscal Year 1998.
 The Senate amendment contained a similar provision (sec.
511).
 The Senate recedes.
Correction of inequities in medical and dental care and death and
 disability benefits for reserve members who incur or aggravate
 an illness in the line of duty (sec. 513)
 The House bill contained a provision (sec. 513) that
would authorize medical and dental care for the family member
of a reservist who incurs or aggravates an injury or illness in
the line of duty while serving on active duty for a period of
30 days or less and whose orders are subsequently modified to
extend the period of active duty.
 The Senate amendment contained a similar provision (sec.
661).
 The Senate recedes with a clarifying amendment.
Authority to permit non-unit assigned officers to be considered by
 vacancy promotion board to general officer grades (sec. 514)
 The House bill contained a provision (sec. 515) that
would authorize the Secretary of the Army to permit officers
not assigned to units of the Selected Reserve to compete for
promotion to brigadier general and major general within the
same promotion board process as officers who are assigned to
units.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Prohibition on use of Air Force Reserve AGR personnel for Air Force
 base security functions (sec. 515)
 The House bill contained a provision (sec. 517) that
would prohibit the Secretary of the Air Force from using
members of the Air Force Reserve who are on active duty in
support of the reserves (known as active guard and reserve or
AGR personnel) to perform force protection, base security, or
security police functions at an Air Force facility in the
United States until six months after the Secretary submits a
report to the Congress on the use of AGR personnel in these
functions.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would prohibit
replacing security related military technician or civilian
positions at the Air Force Reserve bases with AGR personnel
during fiscal year 1998.
 The conferees view the Air Force proposal to provide base
security at four Air Force Reserve bases in the United States
as an attempt to eliminate civilian technician positions. Use
of the AGRs for this security mission would replace 72 Air
Reserve technicians and 136 Department of Defense civilians now
providing base security at these bases. For these reasons, the
conferees would prohibit the Secretary of the Air Force from
utilizing AGRs for base security at United States bases during
fiscal year 1998. In another provision in the conference
report, the conferees direct the Secretary of Defense to submit
a report to the Congress on the feasibility and advisability of
converting all active guard and reserve positions to military
technicians. Until this study is complete, any conversion of
military technician positions to active guard and reserve would
be premature.
Involuntary separation of reserve officers in an inactive status (sec.
 516)
 The Senate amendment contained a provision (sec. 512)
that would permit the President to discharge or retire a
reserve commissioned officer in an inactive status who cannot
or will not retire.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees expect that the service secretaries
exercise prudence and discretion when they use this authority.
The decision to involuntarily discharge or retire any officer
is one that must be reached only after careful deliberation.
The conferees do not intend that this authority be used
indiscriminately or to limit the career potential of individual
officers without compelling justification.
Federal status of service by National Guard members as honor guards at
 funerals of veterans (sec. 517)
 The Senate amendment contained a provision (sec. 514)
that would permit National Guard members who serve on funeral
details for veterans of the armed forces to receive credit as a
period of drill or training otherwise required.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees expect that participation of National Guard
personnel in a funeral detail or honor guard will be strictly
voluntary and that this authority will not be used as a basis
for justifying force structure, end strength, or
appropriations.

 Subtitle C--Military Technicians

Authority to retain on the reserve active-status list until age 60
 military technicians in the grade of brigadier general (sec.
 521)
 The House bill contained a provision (sec. 521) that
would restore the authority that existed prior to the enactment
of the Reserve Officer Personnel Management Act (ROPMA) that
permitted the Secretaries of the Army and Air Force to retain
brigadier general military technicians on the active-status
list up to age 60.
 The Senate amendment contained a similar provision (sec.
513).
 The Senate recedes.
Military technicians (dual status) (sec. 522)
 The House bill contained a provision (sec. 522) that
would define a military technician (dual status) as a federal
civilian employee who is hired in accord with titles 5 or 32,
United States Code, and who, as a condition of federal civilian
employment, must maintain military membership in the Selected
Reserve, and who also must be assigned to a position as a
technician in the administration and training of the Selected
Reserve, or to a position in the maintenance and repair of
supplies or equipment issued to the Selected Reserve or armed
forces and require that, unless exempted by law, all military
technicians hired on or after December 1, 1995, (the date of
enactment of Public Law 104-61) would be required to maintain
military membership in the Selected Reserve unit by which they
are employed as a military technician, or in a unit they are
employed as a military technician to support.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Non-dual status military technicians (sec. 523)
 The House bill contained a provision (sec. 523) that
would cap the numbers of non-dual status technicians permitted
in each of the reserve components in fiscal year 1998, and
require the service secretaries in future years to reduce the
number of non-dual status technicians by at least 10 percent
per year.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would authorize
the number of non-dual status technicians in each component,
and require the Secretary of Defense to report to the Congress,
not later than 90 days after enactment, the actual number of
non-dual status technicians in each component, and to submit to
Congress, not later than 180 days after enactment, a plan to
ensure that by the end of fiscal year 2007, and thereafter, all
military technician positions are only occupied by military
technicians (dual status).
Report on feasibility and desirability of conversion of AGR personnel
 to military technicians (dual status) (sec. 524)
 The House bill contained a provision (sec. 524) that
would require the Secretary of Defense to report to the
Congress on the feasibility and desirability of converting
active guard and reserve personnel to dual status military
technicians.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Subtitle D--Measures To Improve Recruit Quality and Reduce Recruit
 Attrition

Reform of military recruiting systems (sec. 531)
 The House bill contained a provision (sec. 531) that
would require the Secretary of Defense to undertake a series of
department-wide reforms to improve the efficiency and
effectiveness of military recruiting.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would include
the use of pre-enlistment waivers among those codes and systems
to be revised and updated.
Improvements in medical prescreening of applicants for military service
 (sec. 532)
 The House bill contained a provision (sec. 532) that
would direct the Secretary of Defense to undertake a number of
reforms, to include:
 (1) Requiring each applicant for military service
 to provide the name of the applicant's medical insurer,
 the names of past medical providers, and a release to
 obtain the applicant's medical records;
 (2) Revising the questions asked of applicants to
 tie the questions more directly to conditions that most
 frequently result in medical separations;
 (3) Assigning to a contractor or agency other than
 the Military Entrance Processing Command (MEPCOM) the
 responsibility for evaluating medical conditions of
 recruits that are missed during MEPCOM's accession
 processing; and
 (4) Requiring all applicants for military service
 be tested for use of illegal drugs at the MEPCOM
 station.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Improvements in physical fitness of recruits (sec. 533)
 The House bill contained a provision (sec. 533) that
would direct the Secretary of Defense to undertake a range of
measures to improve the level of physical fitness of new
recruits prior to the start of basic training, including the
use of incentives, monetary and otherwise, for new recruits in
the delayed entry program to voluntarily participate in
supervised conditioning activities.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
 The conferees expect that any activities developed to
improve the physical fitness of recruits will be organized,
formally scheduled, and supervised by personnel who have been
appropriately trained to conduct physical readiness training.
The conferees do not intend that recruits will be afforded
unescorted, unsupervised access to military fitness facilities.

 Subtitle E--Military Education and Training

 Part I--Officer Education Programs

Requirement for candidates for admission to United States Naval Academy
 to take oath of allegiance (sec. 541)
 The House bill contained a provision (sec. 543) that
would codify what now is implemented by policy--that persons
seeking admission to the United States Naval Academy take and
subscribe to an oath of allegiance to the United States as a
requirement for admission. This provision would make the
requirement for an oath consistent in law for all three service
academies.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Service academy foreign exchange program (sec. 542)
 The House bill contained a provision (sec. 546) that
would authorize the Air Force Academy to enter into agreements
with foreign governments in order to carry out a military
academy foreign exchange program.
 The Senate amendment contained a provision (sec. 521)
that would authorize exchange programs at each of the service
academies.
 The Senate recedes with an amendment that would authorize
exchange programs at all three service academies and would
establish cost and enrollment limits.
Reimbursement of expenses incurred for instruction at service academies
 of persons from foreign countries (sec. 543)
 The House bill contained a provision (sec. 544) that
would constrain the Secretary of Defense's waiver authority for
the cost of attendance for international students entering the
service academies after the date of enactment to no more than
25 percent of the per-person cost of attendance by an
international student, but would permit the Secretary, in
exceptional cases, to waive more than 25 per cent of the cost
for up to five international students at each of the service
academies, and would recommend a reduction in fiscal year 1998
of $4.2 million in Defense-wide Operations and Maintenance
accounts and a $1.0 million reduction in the amounts authorized
for military personnel in the Army, Navy and Air Force.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would establish
the amount of the cost of attendance for international students
at the service academies permitted to be waived at 35 percent,
but would permit the Secretary to waive more than 35 per cent
of the cost for up to five international students at each of
the service academies, would make the restrictions effective
for students entering the academies after May 1998, and would
restore the reductions to the military personnel and operations
and maintenance accounts.
Continuation of support to senior military colleges (sec. 544)
 The House bill contained a provision (sec. 567) that
would require that the Secretary of Defense continue support to
the senior military colleges (Texas A&M University, Norwich
University, TheVirginia Military Institute, The Citadel,
Virginia Polytechnic Institute and State University, and North Georgia
College and State University) in three principal ways: 1) retention of
the long-standing commitment by the Army to provide active duty service
for all graduates of the colleges who desire it and who are recommended
for it by their respective professors of military science; 2)
participation by the active duty personnel assigned to the Reserve
Officers' Training Corps (ROTC) detachments at each college in the
leadership, academic and military development of the corps of cadets,
beyond ROTC programs; and 3) continued operation of the ROTC program at
each of the colleges.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would ensure
active duty service for graduates of the senior military
colleges who request such service, who are medically and
physically qualified, and are recommended by the professor of
military science. Additionally, the amendment would ensure
continued operation of the ROTC program at each of the senior
military colleges.
Report on making United States nationals eligible for participation in
 Senior Reserve Officers' Training Corps (sec. 545)
 The House bill contained a provision (sec. 572) that
would require the Secretary of Defense to report to the
Congress on the utility of permitting United States nationals
to participate in the Senior Reserve Officers' Training Corps.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Coordination of establishment and maintenance of Junior Reserve
 Officers' Training Corps units to maximize enrollment and
 enhance efficiency (sec. 546)
 The Senate amendment contained a provision (sec. 525)
that would require the Secretary of Defense to coordinate the
establishment and maintenance of Junior Reserve Officers'
Training Corps in order to maximize enrollment and to take into
consideration openings of new schools and consolidation of
schools.
 The House bill contained no similar provision.
 The House recedes with an amendment that would change the
requirement from the Secretary of Defense to the secretaries of
the military departments and delete the requirement that the
Secretary of Defense seek additional funding from the local
educational agencies.

 Part II--Other Education Matters

United States Naval Postgraduate School (sec. 551)
 The House bill contained a provision (sec. 545) that
would amend the current authority governing admittance of
civilians at the Naval Postgraduate School, and create new
authority to admit enlisted personnel to the school. Thus, the
section would authorize the Secretary of the Navy to admit
civilians on a space-available basis, with reimbursement being
required either on an in-kind basis or on a cost-reimbursable
basis, and would also authorize enlisted members to attend
courses on a space-available basis.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would permit
enlisted personnel to attend courses on a space-available
basis.
Community College of the Air Force (sec. 552)
 The House bill contained a provision (sec. 573) that
would permit enlisted members of the Army, Navy, or Marine
Corps who are assigned as instructors in Air Force technical
schools and enlisted students in Air Force training programs to
participate in and receive associate degrees through the
Community College of the Air Force.
 The Senate amendment contained a provision (sec. 522)
that would permit enlisted members of the Army, Navy, or Marine
Corps who are assigned as instructors in Air Force technical
schools to participate in and receive associate degrees through
the Community College of the Air Force.
 The House recedes with a clarifying amendment.
Preservation of entitlement to educational assistance of members of the
 Selected Reserve serving on active duty in support of a
 contingency operation (sec. 553)
 The Senate amendment contained a provision (sec. 523)
that would ensure that members of the Selected Reserve who are
ordered to active duty in support of a contingency operation,
and required to discontinue a course of study under the GI Bill
benefit, would not have those months charged against their GI
Bill entitlement.
 The House bill contained no similar provision.
 The House recedes.

 Part III--Training of Army Drill Sergeants

Reform of Army drill sergeant selection and training process (sec. 556)
 The House bill contained a provision (sec. 542) that
would require the Secretary of the Army to institute a number
of reforms in the processes by which drill sergeants are
selected and trained.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Training in human relations matters for Army drill sergeant trainees
 (sec. 557)
 The House bill contained a provision (sec. 547) that
would require the Secretary of the Army to expand the human
relations instruction now provided to drill sergeant trainees
to at least two days of instruction.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.

 Subtitle F--Commission on Military Training and Gender-Related Issues

Commission on Military Training and Gender-Related Issues (secs. 561-
 566)
 The House bill contained a provision (sec. 541) that
would require the establishment of a panel to review the basic
training programs of the Army, Navy, Air Force, and Marine
Corps, and to make recommendations for improvements to these
programs.
 The Senate amendment contained a provision (sec. 552)
that would establish an 11-member commission to study issues
related to gender integration in the military services.
 The House recedes with an amendment that would integrate
the scope of the independent panel into that of the commission,
and reduce the membership of the commission to 10, five of
which would be appointed by the chairman and ranking member of
the Committee on Armed Services of the Senate and the remaining
five appointed by the chairman and ranking member of the
National Security Committee of the House of Representatives.
 The House bill contained a provision (sec. 548) that
would require each of the secretaries of military departments
to submit a report to the Committee on Armed Services of the
Senate and the National Security Committee of the House of
Representatives, within 180 days after the date of enactment,
on gender-segregated basic training.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would
incorporate the information required by the report into the
provision that would establish a commission for review of
gender integration in the military departments.

 Subtitle G--Military Decorations and Awards

Purple Heart to be awarded only to members of the Armed Forces (sec.
 571)
 The House bill contained a provision (sec. 552) that
would limit eligibility for the award of the Purple Heart to
members of the armed forces.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Eligibility for Armed Forces Expeditionary Medal for participation in
 Operation Joint Endeavor or Operation Joint Guard (sec. 572)
 The House bill contained a provision (sec. 553) that
would require the Secretary of Defense to designate
participation by service members in Operation Joint Endeavor or
Operation Joint Guard in the Republic of Bosnia and Herzegovina
as meeting the requirements for award of the Armed Forces
Expeditionary Medal.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Clarification of eligibility of members of Ready Reserve for award of
 service medal for heroism (sec. 574)
 The Senate amendment contained a provision (sec. 531)
that would authorize members of the Ready Reserve to be awarded
the service medal for heroism on the same basis as active duty
service members.
 The House bill contained no similar provision.
 The House recedes.
One-year extension of period for receipt of recommendations for
 decorations and awards for certain military intelligence
 personnel (sec. 575)
 The Senate amendment contained a provision (sec. 533)
that would extend, by one year, the time in which military
intelligence personnel could apply for consideration of an
award for service in the Cold War era.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Eligibility of certain World War II military organizations for award of
 unit decorations (sec. 576)
 The Senate amendment contained a provision (sec. 534)
that would authorize the service secretaries to award a unit
decoration to any unit or other organization of the armed
forces of the United States that supported the planning or
execution of combat operations during World War II.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Retroactivity of Medal of Honor special pension (sec. 577)
 The Senate amendment contained a provision (sec. 535)
that would authorize retroactive payment of the special pension
to which recipients of the Medal of Honor are entitled to those
African-American World War II soldiers who were awarded the
Medal of Honor as a result of legislation in the National
Defense Authorization Act for Fiscal Year 1996.
 The House bill contained no similar provision.
 The House recedes.

 Subtitle H--Military Justice Matters

Amendments to the Uniform Code of Military Justice (secs. 581 and 582)
 The House bill contained two provisions (secs. 569 and
570) that would amend the Uniform Code of Military Justice.
Section 569 would authorize a general court-martial to adjudge
a sentence of confinementfor life without eligibility for
parole. Section 570 would limit to the President or the Secretary
concerned, without delegation, the authority to grant parole to an
offender serving a life sentence on appeal from a denial of parole.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Subtitle I--Other Matters

Sexual harassment investigations and reports (sec. 591)
 The Senate amendment contained a provision (sec. 553)
that would establish rigorous reporting requirements and time
lines for completing investigations into allegations of sexual
harassment within the armed services.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Sense of the Senate regarding study of matters relating to gender
 equity in the Armed Forces (sec. 592)
 The Senate amendment contained a provision (sec. 551)
that would express the sense of the Congress that the
Comptroller General of the United States should conduct a study
on any inequality, or perception of inequality, in the
treatment of men and women in the armed forces and report to
Congress within one year of enactment of the National Defense
Authorization Act for Fiscal Year 1998.
 The House bill contained no similar provision.
 The House recedes with an amendment that would express
the sense of the Senate that the Comptroller General of the
United States should conduct a study on any inequality, or
perception of inequality, in the treatment of men and women in
the armed forces and report to the Senate within one year of
enactment of the National Defense Authorization Act for Fiscal
Year 1998.
Authority for personnel to participate in management of certain non-
 Federal entities (sec. 593)
 The House bill contained a provision (sec. 563) that
would authorize service secretaries to approve on a case-by-
case basis the limited service of military and civilian
personnel as directors, trustees, or officers of a military
welfare society, such as Army Emergency Relief, or other
designated entities.
 The Senate amendment contained a similar provision (sec.
555).
 The Senate recedes with an amendment that would require
that the approved non-Federal agencies be limited to not-for-
profit agencies and would not permit participation as part of
the service member's official duties.
 The conferees support the participation of military and
civilian personnel in the military welfare agencies and other
non-Federal, not-for-profit entities without compensation and
at no cost to the Federal Government.
Treatment of participation of members in Department of Defense civil
 military programs (sec. 594)
 The House bill contained a provision (sec. 566) that
would prohibit the secretary of a military department from
requiring or requesting a service member to submit, for
consideration by a selection board, evidence of the service
member's support and service to non-Department of Defense
organizations. In addition, the section would prohibit
promotion and selection boards from using involvement in civil-
military and community support programs as a special evaluation
criteria.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would permit
consideration by promotion boards of voluntarily submitted
information. The conferees recognize that there are currently
precise policies governing communication with and information
available to selection boards.
Comptroller General study of Department of Defense civil military
 programs (sec. 595)
 The House bill contained a provision (sec. 565) that
would require the Comptroller General to conduct a study to
evaluate the civil military programs of the military services.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Establishment of public affairs specialty in the Army (sec. 596)
 The House bill contained a provision (sec. 571) that
would establish public affairs as a special branch of the Army.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would establish
a public affairs speciality within the Army.
Grade of defense attache in France (sec. 597)
 The Senate amendment contained a provision (sec. 557)
that would require the Secretary of Defense and Chairman of the
Joint Chiefs of Staff to ensure that the defense attache in
France is an officer who holds or is promotable to the grade of
brigadier general or, in the case of the Navy, rear admiral
(lower half).
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Report on crew requirements of WC-130J aircraft (sec. 598)
 The House bill contained a provision (sec. 564) that
would preclude navigator and other manpower requirements of
units engaged in eyewall penetration of tropical cyclones from
being reduced below the requirements established as of October
1, 1997 until the end of a six-month period after the Secretary
of the Air Force reports to the Congress on the manpower
requirements for WC-130J aircraft.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would eliminate
the prohibition on reducing personnel levels in WC-130J units,
and would add a requirement that the Secretary of the Air Force
submit a plan to the Congress for assisting personnel in these
units transition to other units or job specialities.
Improvement of missing persons authorities applicable to Department of
 Defense (sec. 599)
 The House bill contained a provision (sec. 568) that
would restore provisions pertaining to U.S. prisoners of war,
those missing in action, and unaccounted for persons, enacted
in the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104-106) and subsequently repealed by the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201). Specifically, the section would expand the scope of
current law by:
 (1) Making it applicable to Department of Defense
 civilians and contractors accompanying armed forces in
 the field;
 (2) Establish a 48-hour suspense for the
 commander's initial report of a missing person's
 status;
 (3) Require the theater component commander's
 involvement in the initial assessment of a missing
 person's status;
 (4) Require the status of persons who were last
 known alive to be reviewed every 3 years for 30 years
 following initial report;
 (5) Re-establish criminal penalties for the knowing
 and willful withholding of information from a missing
 person's file;
 (6) Restore the requirement that a status review
 board (when making determinations of death) must
 provide a description of the location of body, if
 recovered, and, if the body is not identifiable, a
 certification by ``a practitioner of an appropriate
 forensic science that the body recovered is that of the
 missing person;'' and
 (7) Restore the ability of certain persons to
 request status reviews of a limited number of Korean
 War cases.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would expand
current law:
 (1) Making it applicable to certain Department of
 Defense civilians and contractors in direct support of
 or accompanying armed forces in the field;
 (2) Require that an advisory copy of a missing
 person report be provided to the theater component
 commander;
 (3) Require that if a body is recovered, and is not
 identifiable by visual means, a certification by a
 forensic pathologist that the body recovered is that of
 the missing person is required before the status may be
 changed;
 (4) For pre-enactment cases, define ``new
 information'' as information found or received by the
 primary next of kin, member of the immediate family or
 a previously designated person or information that is
 identified in records of the United States that is
 relevant to the case of one or more unaccounted for
 persons, and require that such information be credible
 before a new file is created;
 (5) Require that the identity of the counsel for
 the missing person be made known to the primary next of
 kin or the previously designated person, and permit the
 primary next of kin or the previously designated person
 to provide information to the counsel of the missing
 person in connection with the initial review board;
 (6) Require that an extract of any debriefing
 report be placed in the file of every missing person
 mentioned in the report; require that an extract of
 such debriefing reports be made available to family
 members of missing persons, or if the reports are
 withheld, notify the family that such information
 exists; and
 (7) Require that, if as allowed by law, classified
 information is withheld from the file of a missing
 person, the notice of that withholding be made
 reasonably available to the families of the missing
 person.

 Legislative Provisions Not Adopted

Time-in-grade requirements for reserve commissioned officers retired
 during the drawdown period
 The House bill contained a provision (sec. 514) that
would authorize the secretaries of the military departments to
reduce the required time in grade for a reserve officer to
retire in the highest grade held from three to not less than
two years.
 The Senate amendment contained no similar provision.
 The House recedes.
Grade requirement for officers eligible to serve on involuntary
 separation boards
 The House bill contained a provision (sec. 516) that
would reduce the grade required for officer separation board
members in the reserve components from 0-6 and above to 0-5 and
above.
 The Senate amendment contained no similar provision.
 The House recedes.
Study of new decorations for injury or death in line of duty
 The House bill contained a provision (sec. 551) that
would require the Secretary of Defense, in cooperation with the
secretaries of the military departments and the Secretary of
the Treasury with regard to the Coast Guard, to determine the
appropriate name, policy, award criteria, and design for two
new decorations.
 The Senate amendment contained no similar provision.
 The House recedes.
Suspension of temporary early retirement authority
 The House bill contained a provision (sec. 561) that
would suspend the authorization for the early retirement
program during fiscal year 1998.
 The Senate amendment contained no similar provision.
 The House recedes.
 Recognizing the savings that can be achieved by using
this authority early in the year, the conferees reduced the
amount authorized to be appropriated to the Air Force for this
program by $49.0 million.
Treatment of educational accomplishments of National Guard ChalleNGe
 program participants
 The House bill contained a provision (sec. 562) that
would deem a general education diploma certificate achieved as
a result of the individual's participation in a National Guard
ChalleNGe program the same as a high school diploma for the
purpose of determining the eligibility of the person for
enlistment in the armed forces.
 The Senate amendment contained no similar provision
 The House recedes.
Repeal of certain staffing and safety requirements for the Army Ranger
 Training Brigade
 The Senate amendment contained a provision (sec. 524)
that would repeal section 4303 of title 10, United States Code,
which specified minimum manning levels for the Ranger Training
Brigade and required the establishment of training safety
cells.
 The House bill contained no similar provision.
 The Senate recedes.

 Title VI--Compensation and Other Personnel Benefits

 Legislative Provisions Adopted

 Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 1998 (sec. 601)
 The House bill contained a provision (sec. 601) that
would provide a 2.8 percent military pay raise as proposed in
the President's budget request.
 The Senate amendment contained a provision (sec. 601)
that would waive section 1009 of title 37, United States Code,
and increase the rates of basic pay for members of the
uniformed services by 2.8 percent effective January 1, 1998.
 The Senate recedes with a clarifying amendment.
Reform of basic allowance for subsistence (sec. 602)
 The House bill contained a provision (sec. 603) that
would re-engineer the basic allowance for subsistence (BAS) by
providing the Secretary of Defense greater flexibility to
continue to pay BAS when rations in kind are available; index
the annual growth in the subsistence allowance to increases in
the cost of the moderate food plan of the U.S. Department of
Agriculture; and repeal the current process of increasing the
basic allowance for subsistence at the same rate as the
military pay raise.
 The Senate amendment contained three provisions (sec.
611-613) that would reform the BAS for all members of the
uniformed services by linking the BAS for officers and enlisted
members to the Department of Agriculture food plan indexes;
provide a transition period during which annual increases in
the current enlisted allowance would be limited to one percent
until such time as the transition period allowance equals the
new Department of Agriculture based allowance; and provide a
new, partial subsistence allowance for junior enlisted
personnel who are not currently eligible for any subsistence
allowance.
 The House recedes with an amendment that would merge the
provisions into one.
Consolidation of basic allowance for quarters, variable housing
 allowance, and overseas housing allowances (sec. 603)
 The House bill contained a provision (sec. 604) that
would consolidate the basic allowance for quarters and the
variable housing allowance; would authorize $35.0 million to
reduce out-of-pocket housing costs for individuals receiving
Basic Allowance for Quarters; would index the annual growth in
housing allowances to increases in the national average monthly
cost of housing; repeal the current process of increasing the
basic allowance for quarters at the same rate as the military
pay raise; incorporate the authorities for overseas station
housing allowance and family separation housing allowance; and
would protect service members from reductions in the rate of
overseas station allowance not attributable to fluctuations in
foreign currency rates, so long as the member's housing costs
have not been reduced.
 The Senate amendment contained six provisions (sec. 616,
617, 619-622) that would adopt a single, price-based housing
allowance based on a national index of housing costs and
authorize a housing allowance that would vary with pay grade
and dependency status and would be based on local private
sector housing costs.
 The Senate recedes with an amendment that would merge the
provisions into one, except that the conferees did not agree to
authorize $35.0 million to reduce out-of-pocket housing costs.
Revision of authority to adjust compensation necessitated by reform of
 subsistence and housing allowances (sec. 604)
 The Senate amendment contained a provision (sec. 626)
that would revise the authority to adjust compensation of
uniformed services personnel when federal civilian pay is
adjusted.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees direct the Secretary of Defense to study
the need for and cost effectiveness of establishing a locality
pay system for military personnel that is comparable to the
system in place for federal civilian employees, and to report
the results of the study to the Committee on Armed Services of
the Senate and the Committee on National Security of the House
of Representatives, not later than March 31, 1998.
Protection of total compensation of members while performing certain
 duty (sec. 605)
 The House bill contained a provision (sec. 602) that
would repeal the legislative link between military and federal
civilian pay raises and would require military pay raises to be
independently calculated using the Employment Cost Index and
would ensure that total pay and allowances of a service member
will not be reduced when assigned to field conditions at home
station or temporary duty away from home station.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would ensure
that the total pay and allowances of a service member will not
be reduced when the service member is assigned to field duty at
home station or to temporary duty away from home station and
would strike the remainder of the provision.

 Subtitle B--Bonuses and Special and Incentive Pays

One-year extension of certain bonuses and special pay authorities for
 reserve forces (sec. 611)
 The House bill contained a provision (sec. 611) that
would extend the authority for the selected reserve
reenlistment bonus, the selected reserve enlistment bonus, the
selected reserve affiliation bonus, the ready reserve
enlistment and reenlistment bonus, and the prior service
enlistment bonus until September 30, 1999.
 The Senate amendment contained a provision (sec. 631)
that would extend the authority to pay the special pay for
critically short wartime health specialists in the Selected
Reserve, the Selected Reserve reenlistment bonuses, the
Selected Reserve enlistment bonuses, the special pay for
enlisted members assigned to certain high priority units in the
Selected Reserve, the Selected Reserve affiliation bonus, the
Ready Reserve enlistment and reenlistment bonus, the repayment
of loans for certain health professionals who serve in the
Selected Reserve, and the prior service enlistment bonus until
September 30, 1999.
 The House recedes with a clarifying amendment.
One-year extension of certain bonuses and special pay authorities for
 nurse officer candidates, registered nurses, and nurse
 anesthetists (sec. 612)
 The House bill contained a provision (sec. 612) that
would extend the authority for the nurse officer candidate
accession program, the accession bonus for registered nurses,
and the incentive special pay for nurse anesthetists until
September 30, 1999.
 The Senate amendment contained a provision (sec. 632)
that would extend the authority to pay certain bonuses and
special pays for nurse officer candidates, registered nurses,
and nurse anesthetists until September 30, 1999.
 The Senate recedes.
One-year extension of authorities relating to payment of other bonuses
 and special pays (sec. 613)
 The House bill contained a provision (sec. 613) that
would extend the authority for the aviation officer retention
bonus, special pay for health care professionals who serve in
the selected reserve in critically short wartime specialties,
reenlistment bonus for active members, enlistment bonuses for
critical skills, special pay for enlisted members of the
selected reserve assigned to certain high priority units,
special pay for nuclear qualified officers extending the period
of active service, and nuclear career accession bonus to
September 30, 1999. The provision would also extend the
authority for repayment of educational loans for certain health
professionals who serve in the selected reserve and the nuclear
career annual incentive bonus until October 1, 1999.
 The Senate amendment contained a provision (sec. 633)
that would extend the authority to pay the aviation officer
retention bonus, the reenlistment bonus for active members, the
enlistment bonuses for critical skills, the special pay for
nuclear qualified officers extending the period of active
service, the nuclear career accession bonus, and the nuclear
career annual incentive bonus until September 30, 1999.
 The Senate recedes with a clarifying amendment.
Increase in minimum monthly rate of hazardous duty incentive pay for
 certain members (sec. 614)
 The House bill contained a provision (sec. 614) that
would increase the amount paid to service members engaged in
certain hazardous duties to $150 a month; would increase the
minimum amount paid to service members engaged in non-aviator
aircrew duties and air weapons controller aircrew duties to
$150 a month; and would increase the amount paid to service
members engaged in free fall parachute jumping to $225 a month.
 The Senate amendment contained no similar provision.
 The Senate recedes.
 To provide for the increases, the conferees recommend an
increase of $22.1 million in the military personnel accounts.
Increase in aviation career incentive pay (sec. 615)
 The Senate amendment contained a provision (sec. 634)
that would increase the aviation career incentive pay for
aviators with more than 14 years of service. The recommended
provision would be effectiveOctober 1, 1998.
 The House bill contained no similar provision.
 The House recedes with an amendment that would change the
effective date to January 1, 1999.
Modification of aviation officer retention bonus (sec. 616)
 The Senate amendment contained a provision (sec. 635)
that increase the maximum amount of the aviation officer
continuation pay from $12,000 to $25,000.
 The House bill contained no similar provision.
 The House recedes with an amendment that would change the
required years of commitment to receive a bonus.
Availability of multiyear retention bonus for dental officers (sec.
 617)
 The House bill contained a provision (sec. 615) that
would amend section 301d of title 37, United States Code, to
give the Secretary of Defense discretionary authority to
provide multi-year contracts to dental officers, particularly
critical specialists. These contracts would obligate dentists
for up to four years and would enhance retention and management
of the dental corps. The provision would require that dentists
with a specialty in oral and maxillofacial surgery with at
least eight years of service be automatically eligible for
these contracts.
 The Senate amendment contained a provision (sec. 636)
that would authorize multiyear retention bonuses for dental
officers similar to those authorized for medical officers.
 The Senate recedes.
Increase in variable and additional special pays for certain dental
 officers (sec. 618)
 The House bill contained a provision (sec. 616) that
would amend section 302b(a) of title 37, United States Code, to
increase special pay for dental officers with eight or more
years of service.
 The Senate amendment contained a provision (sec. 637)
that would increase the amount of the special pay for dental
officers of the armed forces and modify the number of years of
service required to qualify for certain levels of the special
pay.
 The Senate recedes.
Availability of special pay for duty at designated hardship duty
 locations (sec. 619)
 The House bill contained a provision (sec. 617) that
would authorize a hardship duty pay for service members serving
in locations that present quality of life hardships up to a
maximum of $300 per month.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Definition of sea duty for purposes of career sea pay (sec. 620)
 The House bill contained a provision (sec. 651) that
would authorize duty on a ship-based staff to be designated as
sea duty for the purpose of qualifying for career sea pay.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Modification of Selected Reserve reenlistment bonus (sec. 621)
 The House bill contained a provision (sec. 618) that
would restructure the payment options available to the
secretaries of the military departments for the Selected
Reserve reenlistment bonus, and would extend the period of
eligibility for the bonus from members with less than 10 years
total military service to members with less than 14 years
service.
 The Senate amendment contained a provision (sec. 638)
that would provide service secretaries discretionary authority
to determine the annual payment amounts for reserve
reenlistment bonuses. The initial payment would be limited to
not more than one-half of the total bonus. The recommended
provision would also permit a member to receive a bonus when
electing a three-year term of reenlistment twice in lieu of a
single six-year term.
 The House recedes with a clarifying amendment.
Modification of Selected Reserve enlistment bonus for former enlisted
 members (sec. 622)
 The House bill contained a provision (sec. 619) that
would restructure the payment options available to the
secretaries of the military departments for the Selected
Reserve enlistment bonus for former enlisted members, and would
extend the period of eligibility for the bonus from members
with less than 10 years total military service to those with
less than 14 years service.
 The Senate amendment contained a provision (sec. 639)
that would modify the Selected Reserve prior service enlistment
bonus to permit a member to receive a bonus for a three-year
term of enlistment and a subsequent three-year reenlistment in
lieu of a single six-year enlistment option.
 The Senate recedes with a clarifying amendment.
Expansion of reserve affiliation bonus to include Coast Guard Reserve
 (sec. 623)
 The House bill contained a provision (sec. 623) that
would extend the authority to pay a bonus for separating active
duty personnel who agree to serve in a reserve unit to the
Coast Guard Reserve.
 The Senate amendment contained a similar provision.
 The House recedes with a clarifying amendment.
Increase in special pay and bonuses for nuclear-qualified officers
 (sec. 624)
 The Senate amendment contained a provision (sec. 640)
that would increase the maximum authorized rate for three
nuclear special pays and bonuses for nuclear qualified officers
of the Navy.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Provision of bonuses in lieu of special pay for enlisted members
 extending tours of duty at designated locations overseas (sec.
 625)
 The House bill contained a provision (sec. 620) that
would authorize the payment of a bonus, as an alternative to a
monthly special pay, to enlisted members who extend their tours
of duty overseas.
 The Senate amendment contained a provision (sec. 641)
that would authorize the service secretaries to pay a lump sum
payment of up to $2,000 per year to qualified enlisted members
who extend their duty at designated overseas locations. The
recommended provision:
 (1) authorizes the service secretaries to fix the
 rate of payment as of the date of the extension
 agreement is accepted by the service;
 (2) establishes the government's ability to recover
 payments for which service agreements are not
 completed; and
 (3) removes the entitlement to such payment for
 those members who elect to receive government-funded
 rest and recuperative absences or transportation.
 The House recedes with a clarifying amendment.
Increase in amount of family separation allowance (sec. 626)
 The House bill contained a provision (sec. 621) that
would increase the amount of family separation allowance paid
to service members to $100 a month.
 The Senate amendment contained no similar provision.
 The Senate recedes.
 To provide for the increase, the conferees agree to
authorize an increase of $25.0 million in the military
personnel accounts.
Deadline for payment of Ready Reserve muster duty allowance (sec. 627)
 The House bill contained a provision (sec. 622) that
would authorize the payment of the muster duty allowance not
later than 30 days after the service member performs the duty.
 The Senate amendment contained a provision (sec. 627)
that would repeal the requirement that members of the Ready
Reserve be paid for muster duty on or before the date on which
they perform the duty, and would require that the allowance be
paid on or before, but not later than 30 days following the
date on which the duty is performed.
 The Senate recedes with a clarifying amendment.

 Subtitle C--Travel and Transportation Allowances

Travel and transportation allowances for dependents before approval of
 member's court-martial sentence (sec. 631)
 The House bill contained a provision (sec. 631) that
would remove the restrictions on authorizing travel and
transportation allowances to a dependent of a service member
who receives certain court-martial sentences.
 The Senate amendment contained a provision (sec. 662)
that would permit the service secretaries to move family
members when a crime has been committed by the military
sponsor.
 The Senate recedes with a clarifying amendment.
Dislocation allowance (sec. 632)
 The House bill contained a provision (sec. 632) that
would establish grade-based rates for dislocation allowances
and would index the annual growth of dislocation allowances to
increases in the national average monthly cost of housing.
 The Senate amendment contained a provision (sec. 618)
that would establish the amount of the dislocation allowance
for a service member to be equal to 160 percent of the national
average cost of housing determined for members of the same
grade and dependency status and for those service members
entitled to a second dislocation allowance, the second
allowance would be equal to 130 percent of the national average
cost of housing determined for members of the same grade and
dependency status.
 The Senate recedes with an amendment that would merge the
provisions into one.

 Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

One-year opportunity to discontinue participation in Survivor Benefit
 Plan (sec. 641)
 The Senate amendment contained a provision (sec. 651)
that would permit a participant in the Survivor Benefit Plan to
elect to discontinue participation at any time during a one-
year period beginning on the second year anniversary of the
date on which the member retired.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Time in which change in survivor benefit coverage from former spouse to
 spouse may be made (sec. 642)
 The House bill contained a provision (sec. 641) that
would remove the requirement that service members may change
the beneficiary for the Survivor Benefit Plan from a former
spouse to a spouse within one year of the date of remarriage.
 The Senate amendment contained a provision (sec. 652)
that would permit a military retiree to change the beneficiary
of his or her Survivor Benefit Plan from a former spouse to a
current spouse at anytime after the retiree remarries.
 The House recedes with a clarifying amendment.
Review of Federal former spouse protection laws (sec. 643)
 The Senate amendment contained a provision (sec. 1039)
that would require the Secretary of Defense to conduct a
comprehensive review of the Uniformed Services Former Spouse
Protection Act. The review would include other laws affecting
federal civil service retirement and current civil practices
regarding division of retirement pay or pensions in order to
assess whether the Uniformed Services Former Spouse Protection
Act should be amended. The recommended provision requires the
report to be provided to Congress by September 30, 1999.
 The House bill contained no similar provision.
 The House recedes with an amendment that would clarify
the areas to be considered during the review of the Uniformed
Services Former Spouse Protection Act.
Annuities for certain military surviving spouses (sec. 644)
 The Senate amendment contained a provision (sec. 654)
that would authorize an annuity of $165 a month for surviving
spouses of former active duty service members who died before
March 21, 1974, and were retired from active duty. The
recommended provision would also apply to surviving spouses of
service members retired from the reserves between September 21,
1972 and October 1, 1978. These surviving spouses, known as
``Forgotten Widows,'' are the survivors of retired military
personnel who died before any survivor benefit program was
enacted.
 The House bill contained no similar provision.
 The House recedes.
Administration of benefits for so-called minimum income widows (sec.
 645)
 The conferees agree to include a provision that would
clarify the authority of the Secretary of Veterans Affairs to
consolidate certain annuities currently paid by the Secretary
of Defense to the widows of military retirees into a single
payment.

 Subtitle E--Other Matters

Loan repayment program for commissioned officers in certain health
 professions (sec. 651)
 The House bill contained a provision (sec. 652) that
would amend chapter 109 of title 10, United States Code, to
establish an education loan repayment program for specific
health professions.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Conformance of NOAA commissioned officers separation pay to separation
 pay for members of other uniformed services (sec. 652)
 The House bill contained a provision (sec. 653) that
would remove the limitations on the amount of separation pay
that may be paid to commissioned officers of the National
Oceanic and Atmospheric Administration (NOAA) and would exclude
that portion of separation pay withheld for income taxes from
the amount that must be repaid before becoming eligible for
disability payments from the Department of Veterans Affairs.
This section would conform the separation pay authority for
NOAA commissioned officers with the separation pay authority
for members of the armed services.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Eligibility of Public Health Service officers and NOAA commissioned
 corps officers for reimbursement of adoption expenses (sec.
 653)
 The House bill contained a provision (sec. 654) that
would authorize officers of the Commissioned Corps of the
Public Health Service to receive reimbursement for adoption
expenses in the same manner as members of the armed forces.
 The Senate amendment contained a provision (sec. 663)
that would extend the authorization for reimbursement of
adoption expenses in effect for the armed forces to the Public
Health Service and the National Oceanic and Atmospheric
Administration.
 The House recedes with a clarifying amendment.
Payment of back quarters and subsistence allowances to World War II
 veterans who served as guerrilla fighters in the Philippines
 (sec. 654)
 The House bill contained a provision (sec. 655) that
would authorize the payment of quarters and subsistence
allowances to qualified individuals who served as guerilla
fighters during the period from January 1942 through February
1945.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Subsistence of members of the Armed Forces above the poverty level
 (sec. 655)
 The House bill contained a provision (sec. 657) that
would direct the Secretary of Defense to conduct a study of
members of the armed forces and their dependents who subsist
at, near, or below the poverty line.
 The Senate amendment contained a similar provision (sec.
664).
 The House recedes with a clarifying amendment.
 The conferees do not intend that implementation of this
provision would cause current recipients of supplemental food
benefits within the United States to be removed from the
program. The conferees encourage the committees of jurisdiction
to examine the need for a supplemental food program for members
of the armed services and eligible civilians living overseas
and provide the funding needed to operate the overseas program
while sustaining the program within the United States. The
conferees note that the Secretary of Defense mayuse Department
of Defense funds to conduct this program until funding is received from
the Secretary of Agriculture.

 Legislative Provisions Not Adopted

Space available travel for members of Selected Reserve
 The House bill contained a provision (sec. 656) that
would provide authority for members of the Selected Reserve and
their accompanying dependents to receive transportation on
Department of Defense aircraft on a space available basis under
the same terms and conditions that apply to active duty members
of the armed forces and their dependents.
 The Senate amendment contained no similar provision.
 The House recedes.
Implementation of Department of Defense Supplemental Food Program for
 military personnel outside the United States
 The House bill contained a provision (sec. 658) that
would authorize the Secretary of Defense to use operations and
maintenance funding to operate the program until funding is
received from the Secretary of Agriculture.
 The Senate amendment contained a similar provision within
section 664.
 The House recedes.
Paid-up coverage under Survivor Benefit Plan
 The Senate amendment contained a provision (sec. 653)
that would terminate Survivor Benefit Plan payments following
30 years of payments and attaining the age of 70.
 The House bill contained no similar provision.
 The Senate recedes.

 Title VII--Health Care Provisions

 Legislative Provisions Adopted

 Subtitle A--Health Care Services

Expansion of retiree dental insurance plan to include surviving spouse
 and child dependents of certain deceased members (sec. 701)
 The House bill contained a provision (sec. 701) that
would amend section 1076c(b)(4) of title 10, United States
Code, to allow the survivors of members who died while on
active duty to participate in the retiree dental insurance
plan.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Provision of prosthetic devices to covered beneficiaries (sec. 702)
 The House bill contained a provision (sec. 702) that
would amend section 1077(a) of title 10, United States Code, to
allow for prosthetic devices to be provided to CHAMPUS
beneficiaries for significant conditions, as determined by the
Secretary of Defense.
 The Senate amendment contained a similar provision (sec.
707).
 The Senate recedes.
Study concerning the provision of comparative information (sec. 703)
 The Senate amendment contained a provision (sec. 711)
that would require the Secretary of Defense to conduct a study
concerning the provision of information to TRICARE
beneficiaries and report the results to the Congress.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.

 Subtitle B--TRICARE Program

Addition of definition of TRICARE program to title 10 (sec. 711)
 The House bill contained a provision (sec. 711) that
would amend section 1072 of title 10, United States Code, to
include a definition of the TRICARE Program.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Plan for expansion of managed care option of TRICARE program (sec. 712)
 The House bill contained a provision (sec. 712) that
would require the Secretary of Defense to prepare a plan for
expanding the managed care option of TRICARE--TRICARE Prime--
into areas located outside the catchment areas of military
treatment facilities where the Department determines it is cost
effective to do so.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.

 Subtitle C--Uniformed Services Treatment Facilities

Implementation of designated provider agreements for Uniformed Services
 Treatment Facilities (sec. 721)
 The House bill contained a provision (sec. 721) that
would amend section 722(c) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201) to
clarify the implementation date of the designated provider
program of the Uniformed Services Treatment Facilities (USTFs),
and allow the USTFs to begin delivery of health care services
as a designated provider within six months of signing the new
designated provider agreement with the Department of Defense,
or upon implementation of TRICARE in the USTFs region,
whichever date is later.
 The Senate amendment contained a provision (sec. 731)
that wouldclarify the implementation date of the designated
provider program of the Uniformed Services Treatment Facilities
(USTFs); allow the USTFs to begin delivery of health care services as a
designated provider within six months of signing the new designated
provider agreement with the Department of Defense, or upon
implementation of TRICARE in the USTFs region, whichever date is later;
require the Secretary of Defense to submit to binding arbitration;
impose limits on contracting out primary care services and permit
flexibility on the date on which the uniform benefit must be
implemented.
 The Senate recedes.
Continued acquisition of reduced-cost drugs (sec. 722)
 The House bill contained a provision (sec. 723) that
would allow the Uniform Services Treatment Facilities to
continue to purchase pharmaceuticals under the preferred
pricing levels applicable to government agency purchases.
 The Senate amendment contained a similar provision (sec.
733).
 The House recedes.
Limitation on total payments (sec. 723)
 The House bill contained a provision (sec. 722) that
would clarify the limitation on total program payments
established in section 726(b) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201).
 The Senate amendment contained a similar provision (sec.
732).
 The House recedes.

 Subtitle D--Other Changes to Existing Laws Regarding Health Care
 Management

Improvements in health care coverage and access for members assigned to
 certain duty locations far from sources of care (sec. 731)
 The Senate amendment contained a provision (sec. 701)
that would make active duty service members assigned to certain
remote duty locations eligible for health care under the
Civilian Health and Medical Program of the Uniformed Services
(CHAMPUS), and would direct the secretaries of the military
departments to waive the annual fees, deductibles, and
copayments associated with CHAMPUS.
 The House bill contained no similar amendment.
 The House recedes with an amendment that would retain the
Senate provision and would direct the Secretary of Defense to
improve the supplemental care program consistent with the
TRICARE program in order to provide care to active duty
personnel who are assigned to duty locations more than 50 miles
from a military treatment facility.
Waiver or reduction of copayments under overseas dental program (sec.
 732)
 The House bill contained a provision (sec. 731) that
would amend section 1076a(h) of title 10, United States Code,
to waive the dental copayment requirements for family members
of active-duty members stationed overseas when they receive
host-nation dental care under the Overseas Dental Program.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Premium collection requirements for medical and dental insurance
 programs; extension of deadline for implementation of dental
 insurance program for military retirees (sec. 733)
 The House bill contained a provision (sec. 732) that
would amend section 1076b(b) and 1076c(c) of title 10, United
States Code, to change the premium collection method prescribed
for the Selected Reserve Dental Program and the Retiree Dental
Program.
 The Senate amendment contained a similar provision (sec.
705).
 The Senate recedes with an amendment that would modify
the date on which the retiree dental plan must be effective.
 The conferees continue to insist that the Secretary of
Defense provide comprehensive dental insurance programs for the
Selected Reserve and for retirees and their families at the
lowest possible cost.
 The conferees expect the Secretary of Defense to use the
allotment or payroll deduction process to the maximum extent
possible for dental insurance premium collection. The conferees
urge the Secretary to review the feasibility of including
electronic funds transfer as an alternative means of premium
collection. The conferees expect the Secretary to forward a
legislative proposal if it is determined that electronic funds
transfer is a viable alternative and that legislation is
required to facilitate that method of premium collection.
 The conferees urge the Secretary of Defense to develop a
regional premium similar to the common practices of the
commercial insurance industry to ensure that those who live in
low-cost areas do not subsidize those in higher cost areas. The
conferees note that it is common commercial practice to limit
the availability of certain benefits for some period of time
after the beneficiary enrolls in the program, or to require a
minimum enrollment period. The conferees urge the Secretary of
Defense to consider including these commercial practices in the
retiree dental plan.
Dental insurance plan coverage for retirees of the Public Health
 Service and NOAA (sec. 734)
 The Senate amendment contained a provision (sec. 706)
that would extend eligibility for the retiree dental plan of
the Department of Defense to retirees of the Public Health
Service and the National Oceanic and Atmospheric
Administration.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Consistency between CHAMPUS and Medicare in payment rates for services
 (sec. 735)
 The House bill contained a provision (sec. 733) that
would amend section 1079(h) of title 10, United States Code, to
provide for greater consistency between CHAMPUS reimbursement
rates for health care services and Medicare reimbursement
rates.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Use of personal services contracts for provision of health care
 services and legal protection for providers (sec. 736)
 The House bill contained a provision (sec. 734) that
would clarify that personal services contract employees
providing health care services, including fee-basis physicians,
are covered by the same malpractice litigation rules as other
Department of Defense health care providers and would enable
the Secretary of Defense the authority to provide for
reasonable attorney's fees in any litigation in which
government attorneys do not provide representation.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would sunset
the provision after one year, would require the Secretary of
Defense to report to the Congress on alternative methods to
provide medical screening to the Military Entrance and
Processing stations, including use of the TRICARE Managed
Support contracts and outsourcing, and would extend the
authority to the Secretary of Transportation for the Coast
Guard.
Portability of State licenses for Department of Defense health care
 professionals (sec. 737)
 The House bill contained a provision (sec. 735) that
would amend section 1094 of title 10, United States Code, to
authorize members of the armed forces licensed to practice
medicine and other health professions to practice such
professions in any state, the District of Columbia, or a
territory or possession of the United States while performing
authorized duties for the Department of Defense.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Standard form and requirements regarding claims for payment for
 services (sec. 738)
 The House bill contained a provision (sec. 736) that
would amend section 1106 of title 10, United States Code, to
eliminate the requirement for non-participating providers who
provide services to Civilian Health and Medical Program of the
Uniformed Services (CHAMPUS) beneficiaries to submit claims for
payment for services on behalf of the beneficiary.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
 The conferees believe that this provision will improve
access to health care by reducing the administrative burden on
health care providers which should make providing care under
the CHAMPUS system more attractive to these providers.
Increasing the number of CHAMPUS providers, especially in rural
and under served areas, should enhance the health care options
for Department of Defense health care beneficiaries.
Beneficiaries who elect to receive care from a non-
participating health care provider may have to file a claim for
reimbursement from the CHAMPUS system. The conferees note that
eliminating the requirement for non-participating providers to
submit claims for payment for services on behalf of the
beneficiary does not apply to health care providers who
participate in the TRICARE network.
Chiropractic health care demonstration program (sec. 739)
 The Senate amendment contained a provision (sec. 709)
that would increase the number of sites and extend the length
of the chiropractic health care demonstration authorized by the
National Defense Authorization Act for Fiscal Year 1995.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.

 Subtitle E--Other Matters

Continued admission of civilians as students in physician assistant
 training program of Army Medical Department (sec. 741)
 The House bill contained a provision (sec. 741) that
would amend chapter 407 of title 10, United States Code, to
provide permanent authority for a demonstration program
established by the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337) to allow students from
civilian accredited institutions of higher education to attend
physician assistant training at the Academy of Health Sciences
at Fort Sam Houston, Texas, in return for the provision of
certain academic services from the respective civilian
institutions.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Payment for emergency health care overseas for military and civilian
 personnel of the On-Site Inspection Agency (sec. 742)
 The House bill contained a provision (sec. 742) that
would amend chapter 152 of title 10, United States Code, to
authorize the Secretary of Defense to pay for emergency health
care services obtained by a military member, civilian employee,
or contractor employee of the On-Site Inspection Agency while
on permanent or temporary duty in a former Soviet Union or
former Warsaw Pact state.
 The Senate amendment contained a provision (sec. 702)
that would provide authority for the Secretary of Defense to
pay for emergency health care costs of military and civilian
personnel assigned to the On-Site Inspection Agency, while
participating in arms control inspections overseas, from funds
available to the On-Site Inspection Agency (OSIA).
 The House recedes with a clarifying amendment.
Authority for agreement for use of medical resource facility,
 Alamogordo, New Mexico (sec. 743)
 The Senate amendment contained a provision (sec. 710)
that would permit the Secretary of the Air Force to enter into
an agreement, the contents of which are specified in the
provision, with Gerald Champion Hospital in Alamogordo, New
Mexico in which the hospital would provide health care services
at a discount, provided that the facility is constructed in
part with funds provided by the Secretary of the Air Force.
 The House bill contained no similar amendment.
 The House recedes with an amendment that would retain the
essence of the Senate provision but would require that the
funds be provided from Air Force Operations and Maintenance
funds; would include additional information in the agreement;
and would require the Secretary of Defense to review the
proposed agreement and provide comments to the Congress before
the agreement could be signed.
Disclosures of cautionary information on prescription medications (sec.
 744)
 The Senate amendment contained a provision (sec. 703)
that would require that each prescription dispensed through the
Military Health Care System, including the TRICARE and CHAMPUS
programs, be accompanied by information containing cautions
about use, possible side effects, and potential negative
interaction with food or beverages.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Competitive procurement of certain ophthalmic services (sec. 745)
 The House bill contained a provision (sec. 1405) that
would require the Secretary of Defense to competitively
procure, from the private sector, all ophthalmic services
unless it is more cost effective or is necessary to meet
readiness requirements to perform these services within the
armed services.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Comptroller General study of adequacy and effect of maximum allowable
 charges for physicians under CHAMPUS (sec. 746)
 The House bill contained a provision (sec. 743) that
would require the Comptroller General of the United States to
study the adequacy of the CHAMPUS reimbursement rates, and the
effect of these rates on the participation of physicians in the
CHAMPUS program.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Comptroller General study of Department of Defense pharmacy programs
 (sec. 747)
 The House bill contained a provision (sec. 744) that
wouldrequire the Comptroller General of the United States to
evaluate the pharmacy programs of the Department of Defense. The
required study would examine the merits and feasibility of establishing
a uniform formulary for military treatment facility pharmacies and
civilian contractor pharmacies.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
that the study include a review of the merits and feasibility
of using private sector cost control mechanisms and the
existence of any barriers to the use of such mechanisms.
Comptroller General study of Navy graduate medical education program
 (sec. 748)
 The House bill contained a provision (sec. 745) that
would require the Comptroller General of the United States to
evaluate recommendations made by the Medical Education Policy
Council of the Navy Bureau of Medicine and Surgery to
restructure the Navy's graduate medical education program.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Study of expansion of pharmaceuticals by mail program to include
 additional Medicare-eligible covered beneficiaries (sec. 749)
 The House bill contained a provision (sec. 746) that
would require the Secretary of Defense to provide a report to
Congress, within six months of enactment of this Act, on the
feasibility, advisability and cost of extending the current
mail-order pharmacy program for Medicare-eligible beneficiaries
in areas affected by base closures to all Medicare-eligible
beneficiaries who do not reside near a military medical
treatment facility.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Comptroller General study of requirement for military medical
 facilities in the National Capital Region (sec. 750)
 The House bill contained a provision (sec. 747) that
would require the Comptroller General to conduct a study to
evaluate the requirement for Army, Navy, and Air Force medical
facilities in the National Capital Region.
 The Senate amendment contained no similar amendment.
 The Senate recedes.
Report on policies and programs to promote healthy lifestyles for
 members of the Armed Forces and their dependents (sec. 751)
 The Senate amendment contained a provision (sec. 1042)
that would require the Secretary of Defense to report to the
Congress on the effectiveness of the policies and programs
intended to promote healthy lifestyles among members of the
armed forces and their families.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Sense of Congress regarding quality health care for retirees (sec. 752)
 The Senate amendment contained a provision (sec. 708)
that would express the sense of the Congress that the United
States has a moral obligation to provide quality health care to
military retirees and their families.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.

 Subtitle F--Persian Gulf Illness

Plan for health care services for Persian Gulf veterans (sec. 762)
 The House bill contained a provision (sec. 752) that
would require the Secretary of Defense and the Secretary of
Veterans Affairs to prepare a joint plan to provide appropriate
health care to Persian Gulf veterans who suffer from a Gulf War
illness.
 The Senate amendment contained a similar amendment (sec.
752).
 The Senate recedes with a clarifying amendment.
Comptroller General study of revised disability criteria for physical
 evaluation boards (sec. 763)
 The House bill contained a provision (sec. 753) that
would require the Comptroller General to conduct a study
evaluating the revisions made by the Secretary of Defense to
the criteria used by Physical Evaluation Boards to set
disability ratings for members of the armed forces who are no
longer medically qualified for continuaton on active duty.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Medical care for certain reserves who served in Southwest Asia during
 the Persian Gulf War (sec. 764)
 The Senate amendment contained a provision (sec. 704)
that would entitle a member of a reserve component who is a
Persian Gulf War veteran, registers a symptom or illness in the
Persian Gulf War Veterans Health Surveillance System of the
Department of Defense, and is not otherwise entitled to medical
and dental care from the Military Health Care System to medical
and dental care to the same extent and under the same
conditions as a member on active duty.
 The House bill contained no similar provision.
 The House recedes with an amendment that would entitle a
member of a reserve component who is a Persian Gulf War
veteran, registers a symptom or illness in the Persian Gulf War
Veterans Health Surveillance System of the Department of
Defense, and is not otherwise entitled to medical and dental
care from the Military Health Care System or the Veterans
Affairs medical system to medical care to the same extent and
under the same conditions as a member on active duty.
Improved medical tracking system for members deployed overseas in
 contingency or combat operations (sec. 765)
 The House bill contained a provision (sec. 754) that
would require the Secretary of Defense to establish a system to
assess the medical condition of members of the armed forces who
are deployed outside the United States as part of a contingency
operation.
 The Senate amendment contained a similar provision (sec.
753).
 The Senate recedes with a clarifying amendment.
Notice of use of investigational new drugs or drugs unapproved for
 their applied use (sec. 766)
 The House bill contained a provision (sec. 757) that
would require the Secretary of Defense to notify a member of
the armed forces before the member is administered an
investigational new drug or a drug unapproved for its applied
use.
 The Senate amendment contained a similar provision (sec.
756).
 The Senate recedes with a clarifying amendment.
Sense of Congress regarding the deployment of specialized units for
 detecting and monitoring chemical, biological, and similar
 hazards in a theater of operations (sec. 768)
 The House bill contained a provision (sec. 756) that
would require the Secretary of Defense to submit a plan to the
Congress regarding the deployment of a specialized unit of the
armed forces with the capability and expertise to detect and
monitor the presence of chemical, biological, and similar
hazards.
 The Senate amendment contained a similar provision (sec.
755).
 The House recedes with an amendment that would express
the Sense of Congress that the Secretary of Defense, in
conjunction with the Chairman of the Joint Chiefs of Staff,
should take such actions as are necessary to ensure that units
of the armed forces deployed in a theater of operations for a
contingency operation include specialized units with the
capability to detect and monitor the presence of chemical,
biological, and similar hazards.
Sense of Congress concerning Gulf War illness (sec. 771)
 The House bill contained a provision (sec. 760) that
would express the sense of the Congress that all promising
technology and treatments related to Gulf War illness should be
fully explored and tested to facilitate treatment for members
of the armed forces who are stricken with Persian Gulf illness.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Legislative Provisions Not Adopted

Medical personnel conscience clause
 The House bill contained a provision (sec. 737) that
would require the Secretary of Defense to establish a uniform
policy with regard to a conscience clause for abortion and
family planning services. Under this policy, medical personnel
who, for moral, ethical, or religious reasons, object to
performing an abortion or to providing family planning services
would not be required to perform such procedures unless their
refusal to do so poses life-threatening risks to the patient.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees believe that the service policies with
regard to conscience clauses should be uniform. The conferees
note that the Army has proposed a policy change that would make
their policy consistent with that of the other services. Once
the change is promulgated, the Secretary of the Army is
directed to provide a copy of the regulation to the Committee
on Armed Services of the Senate and the Committee on National
Security of the House of Representatives.

 Title VIII--Acquisition Policy, Acquisition Management, and Related
 Matters

 items of special interest

Cost accounting standards board
 The conferees believe that much progress has been made
over the past several years to bring needed reform and
streamlining to the federal acquisition process. However, the
conferees note that concerns have been raised that the cost
accounting standards governing the allocation of direct and
indirect costs on government contracts, as promulgated by the
Cost Accounting Standards Board (CAS), are an impediment to
acquisition streamlining.
 The conferees endorse the House report (H. Rept. 105-
132), which requires the General Accounting Office (GAO) to
conduct a study that would analyze and assess the mission of
the CAS Board. The conferees believe that such a study, in
which all views are represented, would help the Congress to
determine the best way to balance the interest of taxpayers and
the need for greater acquisition streamlining.

 Legislative Provisions Adopted

Subtitle A--Amendments to General Contracting Authorities, Procedures,
 and Limitations

Expansion of authority to enter into contracts crossing fiscal years to
 all severable service contracts not exceeding a year (sec. 801)
 The House bill contained a provision (sec. 802) that
would broaden the current limited authority of the Department
of Defense to expend appropriated funds for severable service
contracts that cross fiscal years.
 The Senate amendment contained a similar provision (sec.
803).
 The House recedes with an amendment clarifying that the
current authority of the Coast Guard to expend funds for such
contracts is intended to be unaffected by the provision.
 The conferees direct that the Secretary of Defense review
the Department's operations under this provision and no later
than 30 days after the end of both fiscal years 1998 and 1999
submit reports to the congressional defense committees
containing the following information for each fiscal year:
 (1) the total amount and sources of funds obligated
 under the provision;
 (2) the types of services procured under the
 provision;
 (3) when the services were ordered and when
 provided; and
 (4) the reasons in each case why the authority
 under the section was required to be used.
 A copy of each report shall be provided simultaneously to
the Comptroller General.
 No later than 180 days after receipt of the report of the
Department of Defense for fiscal year 1999, the Comptroller
General shall submit a report to the congressional defense
committees addressing:
 (1) any abuses of the provision, such as efforts to
 circumvent year-end spending limitations; and
 (2) recommendations for legislative or
 administrative changes to the authority under the
 section that the Comptroller General may believe to be
 appropriate.
Vesting of title in the United States under contracts paid under
 progress payment arrangements or similar arrangements (sec.
 802)
 The House bill contained a provision (sec. 803) that
would establish in statute the title vesting provisions
currently used by the Department of Defense in contractual
agreements involving certain forms of contract financing.
 The Senate amendment contained a similar provision (sec.
812).
 The House recedes.
Restriction on undefinitized contract actions (sec. 803)
 The House bill contained a provision (sec. 804) that
would add disaster relief, humanitarian, and peacekeeping
operations to the types of operations for which the head of an
agency may waive limitations on the use of undefinitized
contracts.
 The Senate amendment contained a similar provision (sec.
802).
 The House recedes.
Limitation and report on payment of restructuring costs under defense
 contracts (sec. 804)
 The House bill contained a provision (sec. 805) that
would codify in title 10, United States Code, the policy
restrictions in section 8115 of the Omnibus Appropriations Act
for Fiscal Year 1997 (Public Law 104-208) relating to the
allowability of restructuring costs under defense contracts.
The House provision would also consolidate the requirements of
section 818 of the National Defense Authorization Act for
Fiscal Year 1995 (Public 103-337) into a codifed provision.
 The Senate amendment contained a provision (sec. 841)
that would extend for two years the reporting requirements
under section 818 and would require a report from the General
Accounting Office on the effects of defense business
combinations on competition and on contract weapon system
prices.
 The House recedes with an amendment combining the two
provisions.
Multiyear procurement contracts (sec. 806)
 The House bill contained a provision (sec. 807) that
would provide that no future multiyear procurement contract may
be entered into by the Secretary of Defense unless such
contract is specifically authorized by law in an act other than
an appropriations act. The House provision would also codify
various requirements that the Secretary of Defense must meet in
order to enter into or to terminate a multiyear procurement
contract.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would limit the
requirement that future multiyear procurement contracts be
authorized in law to contracts in amounts over $500.0 million.
Audit of procurement of military clothing and clothing-related items by
 military installations in the United States (sec. 807)
 The House bill contained a provision (sec. 810) that
would require the Department of Defense Inspector General to
carry out a random audit of procurements of goods by the
military installations in fiscal years 1996 and 1997 to
determine the extent to which such installations procured goods
made in countries other than the United States.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would limit the
audit to a determination of the extent to which military
installations procured military clothing and clothing-related
items in procurements above $2,500 in violation of the Buy
American Act.
Limitation on allowability of compensation for certain contractor
 personnel (sec. 808)
 The Senate amendment contained a provision (sec. 804)
that, for the purpose of determining the allowability of costs
under section 2324 of title 10, United States Code, and section
306 of the Federal Property and Administrative Services Act of
1949, would:
 (1) limit the reimbursement of senior executive
 salaries to the median of salary of senior executives
 in all public corporations with annual sales in excess
 of $50.0 million, regardless of the size of the
 company;
 (2) define executive compensation to include the
 total amount of wages, salary, bonuses, and deferred
 compensation that is recorded in the contractor's cost
 accounting records for the year; and
 (3) apply the limitations applicable to the five
 most highly-paid executives of a contractor, or any
 division of a contractor.
 The House bill contained no similar provision.
 The House recedes with an amendment that would provide
that the limitation applies to costs incurred after January 1,
1998. In addition to making other clarifying changes, the
amendment would also provide that no other limitation on the
reimbursement of senior executive salaries covered under this
section shall apply after that date.
Elimination of certification requirement for grants (sec. 809)
 The Senate amendment contained a provision (sec. 807)
that would eliminate the drug-free workplace certification
requirements in relation to federal grants in a similar manner
provided for federal contracts in section 4301(a)(3) of the
National Defense Authorization Act for Fiscal Year 1996.
 The House bill contained no similar provision.
 The House recedes.
 The conferees strongly support the continued requirement
that persons accept and enforce the drug-free workplace laws as
a condition for the award of a contract or grant with a federal
agency.
Repeal of limitation on adjustment of shipbuilding contracts (sec. 810)
 The Senate amendment contained a provision (sec. 808)
that would repeal section 2405 of title 10, United States Code,
and apply the current six-year limitation for the submission of
claims in the Contract Disputes Act as the sole limitation on
shipbuilding claims.
 The House bill contained no similar provision.
 The House recedes.
Item-by-item and country-by-country waivers of domestic source
 limitations (sec. 811)
 The House bill contained a provision (sec. 801) that
would require the Secretary of Defense to apply the waiver
authority with respect to section 2534 of title 10, United
States Code only on a case-by-case basis on specific
procurements.
 The Senate amendment contained a provision (sec. 809)
that would provide the Secretary of Defense with blanket waiver
authority for the domestic source restrictions in section 2534.
 The Senate recedes with an amendment that would provide
the Secretary with the authority to grant waivers to the
restrictions in section 2534 for a particular item and a
particular foreign country. Each such waiver would be effective
for up to one year, as determined by the Secretary. The
provision would require the Secretary, 15 days before the
effective date of a waiver, to notify the congressional defense
committees and to publish in the Federal Register a notice of
the determination to exercise the waiver.

 Subtitle B--Acquisition Assistance Programs

One-year extension of pilot mentor-protege program (sec. 821)
 The Senate amendment contained a provision (sec. 822)
that would extend the period in which mentor firms may incur
costs for furnishing developmental assistance under the
Department of Defense mentor-protege program until September
30, 2000. The provision would also extend the period during
which new agreements under the program may be entered into
until September 30, 1999.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the General Accounting Office to review the implementation of
the mentor-protege program and report on the extent to which
the program is achieving the purposes established under this
section.
 The conferees intend to use the results of this report in
reassessing the long-term viability of the mentor-protege
program during the next legislative cycle.
Test program for negotiation of comprehensive subcontracting plans
 (sec. 822)
 The Senate amendment contained a provision (sec. 823)
that would extend from September 30, 1998 to September 30, 2000
the expiration date for the current test program for
negotiating comprehensive subcontracting plans with Department
of Defense (DOD) contractors. The provision would also address
participating contractors acting as subcontractors under a DOD
prime contract by allowing them to include their major
subcontracts within their subcontracting plans.
 The House bill contained no similar provision.
 The House recedes.
 The conferees believe that the DOD should expand the
program in a manner that would encourage prime contractors to
enter the program on a plant or facility basis.

 Subtitle C--Administrative Provisions

Retention of expired funds during the pendency of contract litigation
 (sec. 831)
 The Senate amendment contained a provision (sec. 831)
that would permit federal agencies to retain amounts collected
pursuant to the Contract Disputes Act of 1978 to satisfy a
settlement reached between parties or a judgment rendered in
favor of a contractor through the Federal Courts or the Armed
Services Board of Contract Appeals. The provision would also
require the Comptroller of the Department of Defense to provide
an annual report to Congress on the amounts available for
obligation under the authority of this provision.
 The House bill contained no similar provision.
 The House recedes with an amendment that would limit the
authority under the provision to the military services and
defense agencies, as well as make other clarifying changes.
Protection of certain information from disclosure (sec. 832)
 The Senate amendment contained a provision (sec. 832)
that would amend section 2371 of title 10, United States Code,
to clarify that certain information submitted by outside
parties in transactions governed by the authority under that
section is protected from disclosure under section 552 of title
5, United States Code.
 The House bill contained no similar provision.
 The House recedes.
Unit cost reports (sec. 833)
 The Senate amendment contained a provision (sec. 834)
that would eliminate duplicative reporting requirements on unit
costs of major defense acquisition programs.
 The House bill contained no similar provision.
 The House recedes.
Plan for providing contracting information to general public and small
 business (sec. 834)
 The Senate amendment contained a provision (sec. 835)
that would require the Under Secretary of Defense (Acquisition
and Technology) to designate an official in his office to serve
as a central point of contact for persons seeking information
about how and where to respond to contract solicitations,
procedures for being included on approved suppliers lists, and
other contracting information.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the Secretary of Defense to develop a plan for improving the
responsiveness of the Department of Defense to persons from the
general public and small businesses seeking information on
contracting and technology development opportunities with the
Department of Defense. Such plan is to include an assessment of
the designation of a single point of contact within the Office
of the Secretary of Defense for that purpose.
Two-year extension of crediting of certain purchases toward meeting
 subcontracting goals (sec. 835)
 The conferees agree to include a provision that would
extend for an additional two years the authority to credit
purchases from qualified nonprofit agencies for the blind or
other severely handicapped toward meeting subcontracting goals
of defense contractors.

 Subtitle D--Other Matters

Repeal of certain acquisition requirements and reports (sec. 841)
 The House bill contained a provision (sec. 821) that
would repeal a number of miscellaneous acquisition reporting
requirements.
 The Senate amendment contained similar repeals (secs. 801
and 833).
 The Senate recedes with an amendment that would combine
certain elements from both provisions.
Use of major range and test facility installations by commercial
 entities (sec. 842)
 The House bill contained a provision (sec. 822) that
would amend section 2681 of title 10, United States Code, to
delay for two years the expiration of existing authority
allowing the Department of Defense test and evaluation
facilities to make excess capacity available to the commercial
sector.
 The Senate amendment contained a similar provision (sec.
232) that would delay the expiration of the authority in
section 2681 for three years.
 The House recedes with an amendment that would delay the
expiration of the authority for four years.
Requirement to develop and maintain list of firms not eligible for
 defense contracts (sec. 843)
 The House bill contained a provision (sec. 823) that
would amend section 2327 of title 10, United States Code, to
require the Secretary of Defense to develop and maintain a list
of all firms and subsidiaries of firms that, for the preceding
five years, have been prohibited from entering into contracts
with the Department of Defense because of substantial ownership
by a foreign government supporting acts of international
terrorism. The House provision would also prohibit defense
contractors from providing any equipment, parts, or services to
the Department of Defense from such listed firms.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would allow
individuals to request the Secretary of Defense to have firms
included on the list. The provision would also exclude listed
firms from receiving subcontracts under contracts with the
Department of Defense in a manner similar to firms that are
suspended or debarred under subpart 9.4 of the Federal
Acquisition Regulation.
Sense of Congress regarding allowability of costs of employee stock
 ownership plans (sec. 844)
 The House bill contained a provision (sec. 824) that
would prohibit the Secretary of Defense from making a
determination of the allowability of costs of employee stock
ownership plans (ESOP), in accordance with a rule that had been
proposed and withdrawn in prior years.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would express
the sense of Congress that the Defense Contract Audit Agency
(DCAA) should not disallow interest costs associated with ESOPs
incurred before January 1, 1994. It also states that the
Department of Defense should not disallow costs related to ESOP
debt, control premiums, or marketability discounts associated
with the valuation of ESOP stock of closely held companies that
were incurred before January 1, 1995.
 The conferees have been informed that retroactive
application of changes to DCAA policy on these issues could
have severe economic consequences for ESOP defense contractors.
Therefore, the conferees have included a provision that would
address retroactivity. The provision is not intended to pass
judgment on the changes. The conferees do not intend that the
provision supercede any agreement that a contractor may have
entered into with the Department of Defense that provides for a
different treatment of ESOP costs.
 The conferees understand that a number of other federal
agencies may have an interest in the accounting rules
applicable to ESOP costs. The conferees direct the Secretary to
consult with the Office of Management and Budget, the General
Accounting Office, and accounting experts in such other federal
agencies to determine whether a consistent, government-wide
approach to the relevant accounting and policy issues can be
developed. Any interagency process addressing these issues
should provide for public comment.
Expansion of personnel eligible to participate in demonstration project
 relating to acquisition workforce (sec. 845)
 The House bill contained a provision (sec. 825) that
would expand the personnel eligible to participate in the
workforce demonstration project authorized in section 4308 of
the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104-106).
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would limit to
95,000 the total number of persons who may participate in the
demonstration project.
Time for submission of annual report relating to Buy American Act (sec.
 846)
 The House bill contained a provision (sec. 826) that
would reduce the time for the Department of Defense to prepare
and submit the annual report relating to the Buy American Act
required under section 827 of the National Defense
Authorization Act for Fiscal Year 1997 from 120 to 60 days
after the end of each fiscal year.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require a
report 90 days after the end of each fiscal year.
Repeal of requirement for contractor guarantees on major weapon systems
 (sec. 847)
 The House bill contained a provision (sec. 1503) that
would repeal section 2403 of title 10, United States Code,
requiring the Secretary of Defense to obtain contractor
guarantees on major weapon systems contracts.
 The Senate amendment contained a provision (sec. 811)
that wouldmodify the requirements in section 2403 to provide
flexibility to the Secretary of Defense and the secretaries of the
military services to decide the appropriate use of such contractor
guarantees.
 The Senate recedes.
 The conferees direct the Secretary of Defense to issue
regulations to ensure that program managers actively and
thoroughly examine the value and utility of contractor
guarantees on major systems and pursue such guarantees where
appropriate and cost effective.
Requirements relating to micro-purchases (sec. 848)
 The House bill contained a provision (sec. 1504) that
would require the use of micro-purchase methods for contracts
below the micro-purchase threshold unless a member of the
Senior Executive Service or a general or flag officer makes a
written determination that such procedures should not apply for
specified reasons.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary of Defense to ensure that 60 percent of all
eligible purchases of goods or services for an amount less than
the micro-purchase threshold will be made through streamlined
micro-purchase procedures by October 1, 1998 and that 90
percent of such purchases be made through streamlined
procedures by October 1, 2000. The provision would require the
Secretary of Defense to define ``eligible purchases'' for the
purposes of this requirement and to exclude those categories of
purchases determined not to be appropriate or practicable for
streamlined micro-purchase procedures. The provision would also
require the Secretary of Defense to provide a plan implementing
the requirements under this section by March 1, 1998, and to
annually report through March 1, 2001 on procurement actions by
the Department of Defense for amounts less than the micro-
purchase threshold.
Promotion rate for officers in an acquisition corps (sec. 849)
 The Senate amendment contained a provision (sec. 843)
that would require the Under Secretary of Defense for
Acquisition and Technology to report annually through October
1, 2000 on the extent to which each military service is
complying with promotion opportunity requirement in section
1731(b) of title 10, United States Code.
 The House bill contained no similar provision.
 The House recedes.
Use of electronic commerce in federal procurement (sec. 850)
 The Senate amendment contained a provision (sec. 844)
that would allow federal agencies greater flexibility in
implementing uniformly the electronic commerce capability
requirements in the Federal Acquisition Streamlining Act of
1994.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the heads of agencies to give due consideration to the use or
partial use of existing electronic commerce systems, such as
the Federal Acquisition Computer Network (FACNET), before
developing new systems using this authority. The amendment
would also require the Administrator for Federal Procurement
Policy to submit annual reports to the Congress detailing
progress made in implementing this section.
Conformance of policy on performance based management of civilian
 acquisition programs with policy established for defense
 acquisition programs (sec. 851)
 The Senate amendment contained a provision (sec. 845)
that would conform the policy on performance based management
of civilian acquisition programs with the similar policy
applicable to defense acquisition programs under the Federal
Acquisition Streamlining Act of 1994 (Public Law 103-355).
 The House bill contained no similar provision.
 The House recedes.
Modification of process requirements for the solutions-based
 contracting pilot program (sec. 852)
 The Senate amendment contained a provision (sec. 846)
that would amend the solutions-based contracting pilot program
established in section 5312 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
 The House bill contained no similar provision.
 The House recedes.
Guidance and standards for defense acquisition workforce training
 requirements (sec. 853)
 The Senate amendment contained a provision (sec. 847)
that would extend for an additional two years the authority of
the Department of Defense to use alternative fulfillment
standards for purposes of the training requirements in the
Defense Acquisition Workforce Improvement Act (title XII of
Public Law 101-510).
 The House bill contained no similar provision.
 The House recedes with an amendment that would direct the
Secretary of Defense to develop appropriate guidance and
standards to ensure that the Department will continue to
contract out the training of acquisition personnel in
appropriate cases while maintaining necessary control over the
content and quality of such training.
Study and report to Congress assessing dependence on foreign sources
 for resistors and capacitors (sec. 854)
 The House bill contained a provision (sec. 1061) that
would require the Secretary of Defense to conduct a study of
the capacitor and resistor industries in the United States to
determine the importance of the industry to national security
and the impact on the industry of the removal of tariffs under
the Information Technology Agreement.
 The Senate amendment contained a similar provision (sec.
1048).
 The House recedes with an amendment.
 The conferees believe that, in preparing the study, the
Secretary of Defense should consider industries involved with
the development and manufacture of the full spectrum of
capacitors and resistors, including fixed resistors, wirewound
resistors, film resistors, solid tantalum capacitors, multi-
layer ceramic capacitors, wet tantalum capacitors, disc ceramic
capacitors, aluminum electrolytic capacitors, film capacitors,
and oil-filled capacitors.
Department of Defense and Federal Prison Industries joint study (sec.
 855)
 The Senate amendment contained a provision (sec. 848)
that would require the Department of Defense (DOD) and Federal
Prison Industries (FPI) to jointly conduct a study of the
existing procedures that govern procurement transactions
between DOD and FPI, and to make recommendations to improve the
efficiency and reduce the cost of such transactions.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.

 Legislative Provisions Not Adopted

Domestic source limitation amendments
 The House bill contained a provision (sec. 808) that
would amend section 2534 of title 10, United States Code, to
add shipboard work stations to the list of naval vessel
components required to be procured from domestic sources. The
provision would also make permanent the expired requirement to
procure certain valves and machine tools from domestic sources.
 The Senate amendment contained no similar provision.
 The House recedes.
Repeal of expiration of domestic source limitation for certain naval
 vessel propellers
 The House bill contained a provision (sec. 809) that
would amend section 2534 of title 10, United States Code, to
make the existing limitation on the procurement of naval vessel
propellers permanent.
 The Senate amendment contained no similar provision.
 The House recedes.
Availability of simplified procedures to commercial item procurements
 The House bill contained a provision (sec. 1505) that
would revise the authority in section 2304 of title 10, United
States Code, and in section 303 of title 41, United States
Code, to test simplified procedures for commercial item
procurements. The provision would allow such test procedures to
be used in cases where a contracting officer reasonably expects
that offers will include other than commercial items.
 The Senate amendment contained no similar provision.
 The House recedes.
Price preference for small and disadvantaged businesses
 The Senate amendment contained a provision (sec. 824)
that would condition the use of the 10 percent price preference
in section 2323 of title 10, United States Code, on the failure
of the Department of Defense to meet in the prior fiscal year
the five percent goal specified in section 2323.
 The House bill contained no similar provision.
 The Senate recedes.
 The Senate conferees intend to review the need for
continuing the price preference authority during hearings next
year and may include in a future defense bill a provision
similar to that contained in the Senate amendment.

 Title IX--Department of Defense Organization and Management

 Legislative Provisions Adopted

Subtitle A--Department of Defense Positions and Organizations and Other
 General Matters

Assistants to the Chairman of the Joint Chiefs of Staff for National
 Guard Matters and for Reserve Matters (sec. 901)
 The Senate amendment contained a provision (sec. 905)
that would establish the position of Senior Representative of
the National Guard Bureau in the grade of general and would add
this position as a member of the Joint Chiefs of Staff.
 The House bill contained no similar provision.
 The House recedes with an amendment that would establish
two positions on the Joint Staff. There would be an Assistant
to the Chairman of the Joint Chiefs of Staff for National Guard
Matters and an Assistant to the Chairman of the Joint Chiefs of
Staff for Reserve Matters. These positions would be established
in the grade of major general, or in the case of the Navy, rear
admiral. The provision would establish the term of office as
two years and incumbents may be reappointed for one additional
term. In time of war, the term limit would be suspended.
 The provision would establish a procedure for appointing
the Assistant to the Chairman of the Joint Chiefs of Staff for
National Guard Matters in which the Governors would recommend
National Guard officers to fill the position. The conferees
appreciate the necessity for the Governors to participate in
the selection process for this important position. The
procedure for appointing the Assistant to the Chairman of the
Joint Chiefs of Staff for Reserve Matters requires the
secretaries of the military departments to recommend officers
from their respective reserve force. As in the case of the
National Guard, the conferees believe that the participation of
the secretaries of the military departments is an essential
element of the selection process for the Assistant to the
Chairman of the Joint Chiefs of Staff for Reserve Matters.
 The conferees recognize that there currently is a Reserve
Mobilization Assistant position, filled by a National Guard
major general, assigned to the Office of the Director of the
Joint Staff. The conferees established the two new positions in
lieu of the current position to ensure that the Chairman and
the Joint Staff have the benefit of the best advice with regard
to all the reserve forces, in particular as it pertains to
their unique capabilities and requirements.
 The conferees urge the Chairman of the Joint Chiefs of
Staff to ensure that these assistants have access to the Joint
Staff and that they are included in discussions pertaining to
resource matters, employment of National Guard or reserve
forces, and war plans. The conferees expect that the Secretary
of Defense and the Chairman of the Joint Chiefs will ensure
that these assistants are able to participate, at the
appropriate level, in the Defense Resources Board.
 The provision would also require that the Secretary of
Defense, in consultation with the Chairman, develop appropriate
guidance to ensure that the level of reserve component officer
representation on the Joint Staff is commensurate to the
significant and important role assigned to reserve components
in the total force. The conferees are convinced that reserve
component officers are an excellent resource of expertise and
experience that would add a valuable perspective to the
increasingly complex mission of the Joint Staff.
 The conferees note that the requirements of this
provision are intended to be implemented within the clearly
established principles of the Goldwater-Nichols Department of
Defense Reorganization Act of 1986 (Public Law 99-433), which
vests the Chairman with unequivocal control over the selection
and management of all officers assigned to the Joint Staff.
While the conferees find it appropriate to establish these two
positions to ensure that advice on reserve component matters
provided to the Chairman is of the highest quality and value,
in no way are these positions intended to operate independently
from or in conflict with the direction of the Chairman.
 The common purpose of protecting U.S. national security
interests must remain the paramount concern for all components
of the total force. The mission must not be undermined by
continued feuding over resources, bureaucratic standing, and
attempts to enhance political equities. The conferees are
dismayed and frustrated with the animosity and mistrust that
exists between the Army and the National Guard. The conferees
expect the Secretary of Defense, the Secretary of the Army, and
the Chief of Staff of the Army to work with the Chief of the
National Guard Bureau and The Adjutants General to resolve the
divisive sentiments and suspicion that exists on both sides.
The Secretary of Defense must ensure that the Secretary of the
Army does not treat the National Guard in a cavalier manner,
ignoring valid requirements and intentionally under-resourcing
the National Guard, with the assumption that Congress will make
up the shortfalls. The National Guard must work within the
existing systems and processes to ensure that National Guard
units are able to complement the active force and are ready to
meet the wartime or contingency requirements they may be
deployed to meet.
Use of CINC Initiative Fund for force protection (sec. 902)
 The Senate amendment contained a provision (sec. 903)
that would provide the commanders-in-chief (CINCs) with the
authority to utilize funding from the CINC Initiative Fund to
provide for any force protection requirements that emerge in
their respective areas of operation.
 The House bill contained no similar provision.
 The House recedes.
Revision to required frequency for provision of policy guidance for
 contingency plans (sec. 903)
 The House bill contained a provision (sec. 906) that
would amend section 113(g)(2) of title 10, United States Code,
to permit policy guidance for contingency plans to be given
every two years or more frequently, as needed, rather than
annually.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Annual justification for Department of Defense advisory committees
 (sec. 904)
 The House bill contained a provision (sec. 1508) that
would terminate existing advisory committees, would prohibit
any future advisory committee, board, or commission, unless
established in law, and would require the Secretary of Defense
to submit an annual report justifying any advisory committee
the Secretary proposes to support in the next fiscal year.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary of Defense to submit an annual report justifying
any advisory committee the Secretary proposes to support in the
next fiscal year.
Defense Airborne Reconnaissance Office (sec. 905)
 The House bill contained a provision (sec. 907) that
would terminate the Defense Airborne Reconnaissance Office
(DARO) and transfer its oversight responsibilities to the
Defense Intelligence Agency (DIA).
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would transfer
the airborne reconnaissance systems acquisition and program
management responsibilities from the DARO and the unmanned
aerial vehicle joint program office (UAV JPO) back to the
military services and retains Office of the Secretary of
Defense (OSD)-level oversight responsibilities for airborne
reconnaissance architecture determination and systems interface
requirements within the DARO. The conferees direct the
Secretary of Defense to ensure that the Task Force on Defense
Reform makes specific recommendations for the distribution of
authority to carry out legitimate management oversight
responsibilities for airborne reconnaissance programs within
the OSD and the UAV JPO. The conferees do not intend to make
any changes within the cruise missile activities of the UAV
JPO. The confereesunderstand that a principal focus of the Task
Force is ensuring that program management-like responsibilities within
OSD are shifted to the Service or Defense Agencies. The conferees
expect that the Task Force recommendations will address this specific
issue, as well as the appropriate organizational relationships for
overseeing airborne reconnaissance programs within OSD.
 The conferees agree with the concerns that led to the
House provision. The congressional defense committees have
repeatedly stated concerns with respect to both manned and
unmanned airborne reconnaissance, yet there has been little
improvement noted. The conferees note the Hicks & Associates
report, which recommends that the OSD should focus
``exclusively on top leadership and management tasks, assigning
program management and execution tasks and lower priority tasks
elsewhere in DOD.'' This report goes on to say that ``OSD is a
staff and advisory component . . .'' that should divest itself
of hands-on management. The conferees agree.
 The conferees believe there is a very different
environment with respect to joint operations and developments
in the Pentagon today than existed when the Congress first
directed creation of the DARO in 1993. The changes include:
strengthened oversight by the Joint Requirements Oversight
Council (JROC); the Chairman of the JROC (or the Director for
Force Structure, Resources, and Assessment) participation as a
member of the Defense Acquisition Board, and the Defense
Airborne Reconnaissance Steering Committee to monitor joint
reconnaissance issues. The conferees believe this senior
oversight can provide sufficient direction, control, and
monitoring of service efforts to ensure joint interoperability
of reconnaissance systems.
 The conferees also believe that there should be a
coordinating management function within OSD specifically
charged with oversight of service airborne reconnaissance
systems and their development. Whatever the final repository of
the airborne reconnaissance management oversight function
within the OSD organization, the conferees intend that the
responsibilities of the position be limited to coordinating
budget developments, ensuring adherence to standards and
interoperability requirements, and avoiding unnecessary
duplication of effort. The conferees believe that:
 (1) a streamlined DARO can provide the proper OSD
 management oversight, coupled with the necessary JROC
 requirements direction, while devolving the authorities
 and responsibilities for equipping the military forces
 to the services; and
 (2) legitimate management oversight does not
 include either controlling execution year obligation of
 operations and maintenance funding, or acting as the
 acquisition agent for airborne reconnaissance systems.
 The conferees direct the Secretary of Defense to provide
the Congress with a plan to implement the directed
reorganization and transfers of authority, based on the Task
Force report, no later than March 1, 1998. The conferees direct
the Secretary to complete implementation of the plan not later
than September 30, 1998.
Termination of Armed Services Patent Advisory Board (sec. 906)
 The House bill contained a provision (sec. 1506) that
would terminate the Armed Services Patent Advisory Board and
transfer the functions of the board to the Defense Technology
Security Administration.
 The Senate amendment contained no similar provision.
 The Senate recedes.
 The conferees direct the Department of Defense to provide
adequate staff resources to the Defense Technology Security
Agency to support the functions of the agency including those
transferred from the Armed Services Patent Advisory Board under
this provision.
Coordination of Department of Defense criminal investigations and
 audits (sec. 907)
 The House bill contained a provision (sec. 1507) that
would create two new statutory boards in the Department of
Defense: a Board on Criminal Investigations, consisting of the
Assistant Secretary of Defense for Command, Control,
Communications, and Intelligence and the heads of the three
military criminal investigative organizations; and a Board on
Audits, consisting of the Under Secretary of Defense
(Comptroller), the Auditors General of the military
departments, and the Director of the Defense Contract Audit
Agency. The Department of Defense Inspector General would be a
nonvoting member of both boards. These boards would be charged
with providing for cooperation among the military departments'
criminal investigative and audit organizations to avoid
duplication of effort and maximize resources.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the heads of the military departments' criminal investigative
and auditing organizations to take such actions as may be
practicable to conserve limited resources by sharing personnel,
expertise, infrastructure, training, equipment, software, and
other resources. These officials are to meet on a regular basis
to determine the manner and extent to which such resources will
be shared. The Secretary of Defense shall submit, by December
31, 1997, a plan to maximize the resources available to these
organizations.
 This provision is not intended to affect the
responsibility of the Under Secretary of Defense (Comptroller);
the Assistant Secretary of Defense for Command, Control,
Communications, and Intelligence; or the secretaries of the
military departments for determining resource allocation and
related policies for audit and investigative organizations in
the Department of Defense. In addition, it is not intended to
affect the existing authority of the Inspector General of the
Department of Defense regarding the coordination of audit and
investigative functions within the Department of Defense.

 Subtitle B--Department of Defense Personnel Management

Reduction in personnel assigned to management headquarters and
 headquarters support activities (sec. 911)
 The House bill contained a provision (sec. 1301) that
would require the Secretary of Defense to reduce the number of
personnel assigned to management headquarters and headquarters
support activities by 25 percent over four years.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require a
25 percent reduction in the number of personnel assigned to
management headquarters and headquarters support activities
over five years, would direct a five percent reduction in the
number of personnel assigned to management headquarters and
headquarters support activities during fiscal year 1998, would
direct a five percent reduction in the number of personnel
assigned to management headquarters and headquarters support
activities within the United States Transportation Command
during fiscal year 1998, and would direct the Secretary of
Defense to require the Task Force on Defense Reform to include
an examination of the missions, functions, and responsibilities
of various headquarters activities and management headquarters
support activities and to submit a report on the results of the
examination by the Task Force on Defense Reform to the Congress
not later than March 1, 1998.
 The conferees intend that the reductions in the United
States Transportation Command made during fiscal year 1998
count towards the aggregate Department-wide reduction of five
percent.
Additional reduction in defense acquisition workforce (sec. 912)
 The House bill contained a provision (sec. 1302) that
would mandate a reduction in the size of the defense
acquisition workforce by 124,000 individuals by October 1,
2001. The provision would require a phased implementation of
the reduction and include a requirement to reduce the size of
the workforce by 40,000 individuals in fiscal year 1998.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require a
reduction of 25,000 in the number of defense acquisition
personnel positions in fiscal year 1998. The provision would
provide authority for the Secretary of Defense to waive up to
15,000 of that number based on a determination that a greater
reduction would be inconsistent with cost-effective management
of the defense acquisition system to obtain best value
equipment and would adversely affect military readiness. The
provision would also require a report on the reduction in the
number of acquisition positions in the Department of Defense
since 1989 and a definition of the defense acquisition
workforce that can be uniformly applied throughout the
Department of Defense. With regard to the definition, the
conferees are encouraged by the foundational analysis of the
issue recently completed for the Department of Defense by an
outside contractor.
 The provision would also require a review of acquisition
organizations and functions by both the Secretary of Defense
and the Task Force on Defense Reform. The conferees expect that
these reviews will be conducted in a thorough manner and that
the reports by the Secretary of Defense on these reviews will
be submitted to Congress in a timely fashion.

 Subtitle C--Department of Defense Schools and Centers

Professional military education schools (sec. 921)
 The House bill contained a provision (sec. 902) that
would modify the definition of the National Defense University
by adding the Information Resources Management College, and
would also clarify the authority of the Secretary of Defense to
hire professors, lecturers, and instructors for the Information
Resources Management College.
 The Senate amendment contained a provision (sec. 902)
that would designate the Information Resources Management
College as a component of the National Defense University. The
recommended provision would also make a technical change to the
name of the Institute for National Strategic Study to read the
Institute for National Strategic Studies, and would include the
Marine Corps University among professional military education
schools.
 The House recedes with an amendment that would meld the
two provisions into one.
Center for Hemispheric Defense Studies (sec. 922)
 The Senate amendment contained a provision (sec. 906)
that would include the Center for Hemispheric Defense Studies
as a component of the National Defense University.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Correction to reference to George C. Marshall European Center for
 Security Studies (sec. 923)
 The Senate amendment contained a provision (sec. 1106)
that would permit employees of the George C. Marshall European
Center for Security Studies to qualify for naturalization by
waiving the permanent residency requirements.
 The House bill contained no similar provision.
 The House recedes with an amendment that would provide
employees of the George C. Marshall European Center for
Security Studies the same status as was provided for employees
of the United States Army Russian Institute, the former name of
the George C. Marshall Center. The amendment would not waive
the permanent residency requirements.

 Subtitle D--Department of Defense Intelligence-Related Matters

Transfer of certain military department programs from TIARA budget
 aggregation (sec. 931)
 The Senate amendment contained a provision (sec. 904)
that would transfer specified programs from the Tactical
Intelligence and RelatedActivities (TIARA) aggregation to other
accounts of the military services.
 The House bill contained no similar provision.
 The House recedes with an amendment that would: (1)
retain the directed TIARA program transfers as specified in the
original Senate provision; (2) require an assessment by the
Secretary of Defense as to the adequacy and currency of current
criteria for judging which programs belong in the TIARA
aggregation; and (3) provide the Secretary with discretion to
defer any directed transfer based on the outcome of his
assessment.
Report on coordination of access of commanders and deployed units to
 intelligence collected and analyzed by the intelligence
 community (sec. 932)
 The Senate amendment contained a provision (sec. 1061)
that would require the Secretary of Defense to report to the
Congress regarding the specific steps taken or that are being
taken to ensure adequate coordination of operational
intelligence support for combatant commanders and deployed
units.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Protection of imagery, imagery intelligence, and geospatial information
 and data (sec. 933)
 The Senate amendment contained a provision (sec. 1062)
that would amend sections 455 and 467 of title 10, United
States Code, to clarify the authority of the Secretary of
Defense to permit selective releases of geospatial information
representing little military value while protecting the most
sensitive information.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
POW/MIA intelligence analysis (sec. 934)
 The Senate amendment contained a provision (sec. 1067)
that would direct the Director of Central Intelligence, in
consultation with the Secretary of Defense, to provide
intelligence analytical support on matter concerning missing
persons to all departments and agencies of the Federal
Government involved in such matters.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.

 Legislative Provisions Not Adopted

Limitation on operation and support funds for the Office of the
 Secretary of Defense
 The House bill contained a provision (sec. 901) that
would reduce the funding associated with the operation and
support activities of the Office of the Secretary of Defense
(OSD) by twenty percent, and would restrict the obligation of
ten percent of funding authorized in fiscal year 1998 until the
Department conforms to the requirements of section 901 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106) and section 904 of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201).
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees remain concerned with the Department's non-
compliance with section 901 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106)
that requires a report on specific plans for improving
organizational efficiency and effectiveness of the Office of
the Secretary (OSD). In addition, the conferees note that OSD
failed to implement personnel reductions at a rate sufficient
to achieve the statutory requirement by October 1, 1997, as
specified in section 903 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104-201).
Center for the Study of Chinese Military Affairs
 The House bill contained a provision (sec. 904) that
would require the Department of Defense to establish a Center
for the Study of Chinese Military Affairs.
 The Senate amendment contained no similar provision.
 The House recedes.
White House Communications Agency
 The House bill contained a provision (sec. 905) that
would limit funding for the White House Communications Agency
(WHCA) to $55.0 million, an amount slightly below fiscal year
1997 levels.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees believe that Department of Defense funds
for WHCA should only be spent on telecommunication support for
the President, and the Department should be reimbursed for non-
telecommunication support services.
 The WHCA is staffed with approximately eight civilians
and 908 military personnel. Of those 908 military positions,
103 are for the provision of non-telecommunications support
services. The conferees believe that there is little
justification to provide non-telecommunications support
services to the President with military personnel assigned to
WHCA. In an era when the administration is calling for further
reductions in military end-strength, the conferees believe that
the military billets dedicated to non-telecommunications
support for WHCA could be better used elsewhere within the
Department of Defense to perform missions that are truly in
support of national defense. The conferees believe that non-
telecommunications support services provided by WHCA can, and
should, be provided by civilian personnel.
 Furthermore, the conferees note that the WHCA budget
incorrectly included the WHCA procurement items in the
Operation and Maintenance (O&M) budget request. Therefore, the
conferees agree to transfer the $7.2 million for WHCA
procurement from the O&M account to theprocurement account.
Personnel reductions in the United States Transportation Command
 The House bill contained a provision (sec. 1304) that
would mandate a 1,000 person reduction in the United States
Transportation Command during fiscal year 1998.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees note that another section of the conference
agreement directs a reduction in the number of personnel
assigned to management headquarters and headquarters support
activities within the United States Transportation Command of
five percent during fiscal year 1998.
Commission on Defense Organization and Streamlining
 The House bill contained a series of provisions (sec.
1601-1609) that would establish a Commission on Defense
Organization and Streamlining. The purpose of the commission
would be to examine the missions, functions, and
responsibilities of the Office of the Secretary of Defense, the
management headquarters and headquarters support activities of
the military departments and defense agencies, and the various
acquisition organizations of the Department of Defense; to
propose alternative organizational structures; and to identify
areas of duplication and recommend options to eliminate the
duplications.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees note that other provisions of the
conference agreement direct the Secretary of Defense to require
a Task Force on Defense Reform to examine the missions,
functions, and responsibilities of the Department's acquisition
organizations and its various headquarters activities and
management headquarters support activities; and to submit
reports on the results of the examinations by the Task Force to
the Congress in early 1998.
Principal duty of Assistant Secretary of Defense for Special Operations
 and Low Intensity Conflict
 The Senate amendment contained a provision (sec. 901)
that would revise the original legislation concerning the
principal duty of the Assistant Secretary of Defense for
Special Operations and Low Intensity Conflict to put the
emphasis on the Assistant Secretary's supervision of the
budgetary, development, and acquisition activities of the
Commander in Chief of the Special Operations Command.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees are aware that the Secretary of Defense has
established a Task Force on Defense Reform that is, inter alia,
focusing on the reform of the Office of the Secretary of
Defense (OSD). In another section, the conference agreement
would require the Secretary of Defense to submit the Task
Force's report with the comments and recommendations of the
Secretary of Defense to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives. The conferees believe that any changes to the
duties of senior OSD officials should take into account the
recommendations contained in that report.

 Title X--General Provisions

 items of special interest

Global Positioning System alternate master control station
 The Global Positioning System (GPS) has become or soon
will be fully integrated into most facets of U.S. military
planning and operational capabilities. GPS has also been
integrated significantly into civil and commercial navigation
planning. As such, the conferees recognize the expanding
importance of GPS as a national asset, one that is critical to
U.S. national security and economic interests. The conferees
are aware of potential command and control vulnerabilities
associated with the GPS master control station at Falcon Air
Force Base, Colorado. The conferees understand that GPS is the
only critical national satellite system that does not have an
adequate, separate, and secure backup control station. The
conferees believe that the Department of Defense and the Air
Force should pursue, as an urgent priority, a secure backup GPS
system operations facility that is geographically separate from
the existing facility.
 Therefore, the conferees direct the Secretary of the Air
Force to proceed in fiscal year 1998 with the development of an
alternate master control station at a location outside the
Colorado Springs area. The conferees expect this new alternate
master control station to be operational by fiscal year 2001.
The conferees further direct the Secretary of the Air Force to
submit a report to the congressional defense committees on this
issue not later than February 15, 1998.

 Legislative Provisions Adopted

 Subtitle A--Financial Matters

Transfer authority (sec. 1001)
 The House bill contained a provision (sec. 1001) that
would permit the transfer of $2.0 billion of amounts made
available in Division A of the bill for any fiscal year to any
other authorization made available in Division A upon
determination by the Secretary of Defense that such a transfer
would be in the national interest.
 The Senate amendment contained a similar provision (sec.
1001) that would authorize the budget request level of $2.5
billion in transfer authority.
 The Senate recedes.
Incorporation of classified annex (sec. 1002)
 The House bill contained a provision (sec. 1002) that
would incorporate the classified annex prepared by the
Committee on National Security into this act.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment providing
that the classified annex prepared by the committee of
conference is incorporated into this act.
Authority for obligation of unauthorized fiscal year 1997 defense
 appropriations (sec. 1003)
 The House bill contained a provision (sec. 1003) that
would authorize fiscal year 1997 programs that received
appropriations but no authorization.
 Senate amendment contained a similar provision (sec.
1002).
 The Senate recedes.
Authorization of prior emergency supplemental appropriations for fiscal
 year 1997 (sec. 1004)
 The House bill contained a provision (sec. 1004) that
would extend authorization to those items appropriated by the
fiscal year 1997 emergency supplemental appropriations
legislation.
 The Senate amendment contained a similar provision (sec.
1003).
 The House recedes.
Increase in fiscal year 1996 transfer authority (sec. 1005)
 The House bill contained a provision (sec. 1005) that
would provide an increase in authorization transfer authority
provided by section 1001 of the National Defense Authorization
Act for Fiscal Year 1996.
 The Senate amendment contained a similar provision (sec.
1004).
 House recedes with a technical amendment.
Revision of authority for Fisher House trust funds (sec. 1006)
 The Senate amendment contained a provision (sec. 1006)
that would amend section 914 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106) to
require the Secretary of the Air Force to deposit an
appropriate amount of funds to establish the corpus of the
Fisher House Trust Fund, Department of the Air Force.
 The House bill contained no similar provision.
 The House recedes.
Flexibility in financing closure of certain outstanding contracts for
 which a small final payment is due (sec. 1007)
 The House bill contained a provision (sec. 1007) that
would permit the Secretary of Defense to establish an account
to transfer funds into for the purpose of making small final
payments on certain outstanding contracts for which funds
appropriated for that purpose have expired.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment that
clarifies that the total amount of all transfers into the
account may not exceed $1.0 million without additional
congressional authority.
Biennial financial management improvement plan (sec. 1008)
 The Senate amendment contained a provision (sec. 1005)
that would require a strategic financial management plan within
the Department of Defense to determine goals for improving and
reengineering the finance and accounting functions.
 The House bill contained no similar provision.
 The House recedes with an amendment that would clarify
the intent of the report.
Estimates and requests for procurement and military construction for
 the reserve components (sec. 1009)
 The House bill contained a provision (sec. 122) that
would require the Secretary of Defense to submit an annual
report to Congress that describes the measures taken within the
Department of Defense to ensure that the reserve components are
appropriately funded and lists the major weapons and items of
equipment provided for these components. The section would also
require the Secretary of Defense to display in all future years
defense program updates the amounts programmed for the
procurement of equipment for the reserve components.
 The Senate amendment contained a provision (sec. 1008)
that would require the Department of Defense to specify
estimated expenditures and proposed appropriations for reserve
component modernization at the same level of detail as the
active forces in the annexes provided with the Future Years
Defense Program (FYDP).
 The House recedes.
Sense of Congress regarding funding for reserve component modernization
 not requested in the President's budget (sec. 1010)
 The Senate amendment contained a provision (sec. 1059)
that would require the Congress, to the extent practicable, to
consider authorization of appropriation for reserve component
modernization activities not included in the budget request if
certain criteria are met:
 (1) There is a Joint Requirements Oversight Council
 validated requirement for the equipment;
 (2) The equipment is included for reserve component
 modernization in the modernization plan of the military
 department concerned and is incorporated into the
 future years defense program;
 (3) The equipment is consistent with the use of
 reserve component forces; and
 (4) The funds can be obligated in the fiscal year.
 The provision also calls for Congress to obtain the views
of the Chairman, Joint Chiefs of Staff on whether equipment not
included inthe budget request is appropriate for the employment
of reserve component forces in Department of Defense warfighting plans.
 The House bill contained no similar provision.
 The House recedes.
Management of working-capital funds (sec. 1011)
 The Senate amendment contained a provision (sec. 370)
that would modify section 2208 of title 10, United States Code,
the authority under which the working capital funds are now
being managed, to make contract authority available for
obtaining capital assets. The Senate amendment also contained a
provision (Sec. 361) that would limit the use of advance
billing and establish procedures to notify the congressional
defense committees within 30 days of advance billings being
posted to the working capital funds.
 The House bill contained no similar provisions.
 The House recedes with an amendment that would continue
to restrict the Department of the Navy and establish procedures
for the Department of Defense to notify the congressional
defense committees in a timely manner when advance billing
occurs. The conferees are concerned that excessive advance
billing has continued, despite congressional guidance and
initiatives to limit the practice. Advance billing has become a
normal operating practice rather than an unusual exception. In
the case of Navy Working Capital Funds, advance billing is
continually used without any plans for significant reductions.
Failure to properly budget for these activities and allowing
these activities to operate by deficit spending each year is
not consistent with good business practices and puts the future
force readiness at risk.
 The conferees further agree that the removal of
activities from the working capital funds, use of direct
appropriations to fund these activities, or allowing working
capital activities to change rates in the year of execution are
not viable solutions to problems in the working capital funds.
Proper budgeting and the use of full costing policies allow for
the proper financial management of working capital fund
activities.
Authority of Secretary of Defense to settle claims relating to pay,
 allowances, and other benefits (sec. 1012)
 The Senate amendment contained a provision (sec. 1060)
that would provide the Secretary of Defense authority, upon
request of a secretary of a military department, to waive the
time limits in the case of a claim for pay and allowances up to
a maximum of $25,000. The recommended provision that would
modify and clarify the authority granted by section 607 of the
National Defense Authorization Act for Fiscal Year 1997 to
ensure that the Department of Defense has adequate authority to
address these claims.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Payment of claims by members for loss of personal property due to
 flooding in Red River Basin (sec. 1013)
 The Senate amendment contained a provision (sec. 1081)
that would authorize the secretary of a military department to
pay claims for loss and damage to personal property suffered as
a direct result of the flooding in the Red River Basin during
April and May 1997.
 The House bill contained no similar provision.
 The House recedes with an amendment that would add a
requirement that the Secretary of Defense report to the
Congress on the Department's policy regarding the payment of
claims for loss or damage to personal property as a result of a
natural disaster by members of the armed forces who are not
assigned to quarters of the United States.
Advances for payment of public services (sec. 1014)
 The House bill contained a provision (sec. 1509) that
would allow the Department of Defense to pay utility expenses
on a budget billing basis.
 The Senate amendment contained no similar provision.
 The Senate recedes.
United States Man and the Biosphere Program limitation (sec. 1015)
 The House bill contained a provision (sec. 1008) that
would prohibit the use of funds appropriated for fiscal year
1998 to support the United States Man and the Biosphere Program
or any related project.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment.

 Subtitle B--Naval Vessels and Shipyards

Procedures for sale of vessels stricken from the Naval Vessel Register
 (sec. 1021)
 The Senate amendment contained a provision (sec. 1012)
that would authorize the sale of vessels stricken from the
Naval Vessel Register using negotiation as an alternative to
the sealed-bid process. This authority would allow such issues
as environmental concerns to be addressed more effectively in
the process of the sale.
 The House bill contained no similar provision.
 The House recedes.
Authority to enter into a long-term charter for a vessel in support of
 the Surveillance Towed-Array Sensor (SURTASS) program (sec.
 1022)
 The House bill contained a provision (sec. 1022) that
would authorize the Secretary of the Navy to enter into a
contract in accordance with section 2401 of title 10, United
States Code, for the charter of the vessel RV CORY CHOUEST
through fiscal year 2003 in support of the SURTASS program.
 The Senate amendment contained a provision (sec. 1011)
that would authorize the Navy to enter into a long-term lease
for a vessel to support the surveillance towed array sensor and
low frequency active programs through fiscal year 2004.
 The Senate recedes.
Transfer of two specified obsolete tugboats of the Army (sec. 1023)
 The House bill contained a provision (sec. 1023) that
would allow the Secretary of the Army to transfer two obsolete
tugboats to the Brownsville Navigation District, Brownsville,
Texas.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Congressional review period with respect to transfer of the ex-U.S.S.
 Midway (CV-41) and ex-U.S.S. Hornet (CV-12) (sec. 1024)
 The House bill contained a provision (sec. 1025) that
would allow for a 30 calendar day congressional review period
with respect to the transfer of the decommissioned aircraft
carrier ex-U.S.S. Midway (CV-41).
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would
substitute 30 days for 60 days of continuous session of
Congress when applying section 7603 of title 10 to ex-U.S.S.
Midway (CV-41) and ex-U.S.S. Hornet (CV-12). If only one
qualified entity applies for transfer of ex-U.S.S. Midway (CV-
41) or ex-U.S.S. Hornet (CV-12), the amendment would also allow
the Secretary of the Navy to transfer the vessel after 10 days
of continuous session of Congress
Transfers of naval vessels to certain foreign countries (sec. 1025)
 The Senate amendment contained a provision (sec. 1013)
that would transfer on a sale basis one Hunley class submarine
tender, one Kaiser class oiler, seven Knox class frigates, two
Oliver Hazard Perry class guided missile frigates, and three
Newport class tank landing ships to various countries.
 The House bill contained no similar provision.
 The House recedes.
Reports relating to export of vessels that may contain polychlorinated
 biphenyls (sec. 1026)
 The House bill contained a provision (sec. 1021) that
would amend three sections of the United States Code in order
to permit the sale of obsolete vessels that contain
polychlorinated biphenyl compounds: section 7305 of title 10,
to eliminate Toxic Substances Control Act restrictions on
export of vessels for disposal; section 7306a of title 10, to
provide that a sinking of a military vessel does not qualify as
a prohibited export or disposal under Toxic Substances Control
Act; and section 1160 of title 46 App., to resume the practice
of selling ships in approved foreign markets under the Merchant
Marine Act of 1936.
 The Toxic Substances Control Act (TSCA) (15 U.S.C.
1605(e)) prohibits the manufacture, processing, use, or
distribution in commerce of polychlorinated biphenyls (PCBs)
that are not ``totally enclosed.'' The term ``totally
enclosed'' means any manner that ensures ``insignificant''
human health and environmental exposures to PCBs, as determined
by the Environmental Protection Agency (EPA). TSCA directed the
EPA to promulgate rules for the disposal of PCBs. In vessels
identified for sale, scrap, transfer, or sinking, the Navy has
discovered minute quantities of PCBs that the Navy has
concluded are bound and non-leachable. The existing EPA
regulations make it difficult for the Navy and the Maritime
Administration to dispose of these vessels.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary of the Navy, the Administrator of the Maritime
Administration, and the Administrator of the EPA to report to
Congress on the implementation of an agreement that has been
reached between the Navy and the EPA on PCB vessel disposal
issues. The conferees understand that this agreement is in
effect and is not contingent upon a new rule to be published
later this year, which will incorporate the agreement between
the Navy and EPA. The amendment would also make technical
modifications to the provisions of the National Maritime
Heritage Act of 1994 (16 U.S.C. 5405) that address the
scrapping and sale of obsolete vessels.
 The conferees understand that the purpose of section 9 of
the Shipping Act of 1916 (46 U.S.C. App. 808) is to enable the
Maritime Administration to manage the fleet of privately-owned
United States-flag commercial vessels capable of meeting
national security needs and not to enforce the environmental
laws. The conferees expect that any agreement between the
Maritime Administration and the EPA concerning the export of
such vessels for scrapping outside the United States will
respect the role of the Maritime Administration by not
requiring it to play any greater role in the enforcement of the
environmental laws than it currently plays. The conferees
acknowledge that it may be appropriate for the Maritime
Administration to inform the EPA of export applications
received pursuant to section 9(c) of the Shipping Act of 1916
(46 U.S.C. App. 808(3)).
 The provisions concerning the Maritime Administration,
the disposal of National Defense Reserve Fleet vessels, and the
National Maritime Heritage Act (16 U.S.C. 5404) were resolved
through consultations among the House and Senate conferees, the
Committees on Commerce, Science, and Transportation of the
Senate, and the Committees on Commerce, Transportation and
Infrastructure, and Resources of the House of Representatives.
Conversion of defense capability preservation authority to Navy
 shipbuilding capability preservation authority (sec. 1027)
 The Senate amendment contained a provision (sec. 806)
that would amend section 808 of the National Defense
Authorization Act for Fiscal Year 1996 to restrict its
application to shipbuilding and to vest the Secretary of the
Navy with the authority to enter into modified capability
preservation agreements. The provision would also
limitapplicability of the agreements to costs incurred after the date
of enactment of this Act for commercial contracts that became effective
on or after January 26, 1996.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.

 Subtitle C--Counter-Drug Activities

 The budget request for drug interdiction and other
counter-drug activities of the Department of Defense totals
$808.6 million. That amount includes the $652.6 million in the
drug interdiction account and $156.0 million in the operating
budgets of the military services for authorized counter-drug
operations. These amounts compare with the $957.4 million
authorized for these activities during fiscal year 1997; $796.5
million for the drug interdiction account and $160.9 million in
the services' operating budgets. The reduction of $148.8
million equates to a real decline of 17.5 percent after
accounting for inflation. The conferees recommend an additional
$14.3 million for the counter-drug activities of the Department
of Defense.

 Drug Interdiction & Counter-drug Activities Operations and Maintenance

 (In thousands of dollars; may not add due to rounding)

Fiscal Year 1998 Drug and Counterdrug Request................. $808,588
 Source Nation Support..................................... 183,031
 Detection and Monitoring.................................. 238,149
 Disruption of Drug Mafia Organizations.................... 54,306
 Law Enforcement Agency.................................... 249,864
 Demand Reduction.......................................... 83,238
 Increases:
 Riverine Interdiction Initiative.......................... $4,200
 Gulf States Counterdrug Initiative........................ 4,100
 Multi-Jurisdictional Task Force........................... 1,000
 Southwest Border Fence Project............................ 5,000
Recommendation................................................ $822,888
Ongoing initiatives
 In fiscal year 1997, the Congress authorized additional
funding for three counter-drug initiatives: the Mexico-
Southwest Border Initiative; the Caribbean and South American
Initiative; and the Domestic Counter-Narcotics Initiative.
These initiatives were intended to provide enhanced
capabilities to stem the flow of drugs into the United States
and disrupt narcotics operations within our own borders.
 Although, the conferees are pleased with the initial
progress that has been made with these initiatives, the
conferees are concerned about the early difficulties in
fulfilling some of the goals of the Mexico-Southwest Border
Initiative. Due to the delay caused by these difficulties, the
administration has requested an extension of the authority to
provide assistance to the Government of Mexico. That authority
was originally provided for a single year with the
understanding that future support would be provided from funds
available to the Department of State pursuant to the Foreign
Assistance Act of 1961. Unfortunately, the administration
failed to provide the necessary funds within the fiscal year
1998 budget request of the Department of State. If it is the
intent of the administration to turn such international
counter-drug activities of the United States over to the
Department of Defense for execution, the conferees believe that
this intent should be demonstrated within the budget request by
shifting funds from the State Department's counternarcotics
budget to that of the Department of Defense. However, because
the conferees understand the value of this particular
assistance and the need to explore all available options to
stem the flow of drugs across the Southwest border, the
conferees agree to a provision (sec. 1032), that would extend
for one year the authority to provide additional support for
counter-drug activities of the government of Mexico. The total
amount of support provided pursuant to this authority would be
limited to $8.0 million for the two year period from fiscal
year 1997 to 1998. In providing this support, the Secretary of
Defense would be required to consult with the Secretary of
State.
 The conferees continue to support the Gulf States
Counter-drug Initiative (GSCI) and are pleased to note that the
budget request included $3.4 million for this program. However,
the conferees are concerned that this funding level does not
adequately cover the costs for required software maintenance,
training, and network support. Therefore, the conferees agree
to authorize an increase of $4.1 million to fund these
activities.
 The conferees agree to authorize an additional $1.0
million for the Multi-Jurisdictional Task Force and an
additional $5.0 million for border fence construction.
Riverine interdiction initiative
 The conferees agree to authorize an increase of $4.2
million to the Department's counterdrug program for riverine
operations and include a provision (sec. 1033), that would
grant a five year authorization to the Secretary of Defense, in
consultation with the Secretary of State, to assist the
Peruvian and Colombian governments with the acquisition of the
requisite equipment to actively engage riverine counter-drug
activities. The amount of support that could be provided
pursuant to this authority would be limited to $9.0 million in
fiscal year 1998 and $20.0 million during any of the fiscal
years 1999 through 2002. Funds would be restricted from initial
obligation until 60 days after the Secretary of Defense, in
consultation with the Secretary of State, submits a detailed
riverine counter-drug plan to congressional defense committees.
The Secretary would also be required to submit any revisions to
this plan before obligating any funds for this initiative in
the subsequent years.
 The conferees direct the Department of Defense, in
coordination with other federal agencies involved in counter-
narcotic activities, to develop an integrated regional plan to
establish a riverine program that can be sustained by the
source nations at the end of the five-year period. The
Department would be required to provide the details of this
plan to the Committees on Armed Services and Foreign
Relationsof the Senate and the Committees on National Security and
International Relations of the House of Representatives before any
assistance is provided pursuant to this authority. This plan would
provide details as to how the riverine program fits into the overall
national drug strategy.
Use of National Guard for State drug interdiction and counterdrug
 activities (sec. 1031)
 The House bill contained a provision (sec. 1031) that
would amend section 112 of title 32, United States Code, to
prohibit the use of counter-drug funding for National Guard
Civil-Military Activities.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would ensure
that National Guard participation in counter-drug activities is
directly related to military training and readiness in
accordance with section 2012(d) of title 10, United States
Code, and could support youth and charitable organizations
designated as eligible to receive such support by section 508
of title 32, United States Code. In addition, the provision
would direct the Secretary of Defense to submit an annual
report to congressional defense committees regarding the
assistance provided, and activities conducted, under State drug
interdiction and counter-drug activities plan.
Authority to provide additional support for counter-drug activities of
 the Government of Mexico (sec. 1032)
 The Senate amendment contained a provision (sec. 1021)
that would extend for one year the authority to provide
additional support for counterdrug activities of the Government
of Mexico.
 The House bill contained no similar provision.
 The House recedes with an amendment that would extend for
one year the authority to provide additional support for
counter-drug activities of the Government of Mexico. The total
amount of support provided pursuant to this authority would be
limited to $8.0 million for the two year period from fiscal
year 1997 to 1998. In providing this support, the Secretary of
Defense would be required to consult with the Secretary of
State.
Authority to provide additional support for counter-drug activities of
 Peru and Colombia (sec. 1033)
 The Senate amendment contained a provision (sec. 1022)
which would grant a five year authorization to the Secretary of
Defense to assist the Peruvian and Colombian governments with
the acquisition of the requisite equipment to actively engage
in the Riverine Operations.
 The House bill contained no similar provision.
 The House recedes with an amendment that would grant a
five year authorization to the Secretary of Defense, in
consultation with the Secretary of State, to assist the
Peruvian and Colombian governments with the acquisition of the
requisite equipment to actively engage riverine counter-drug
activities. The amount of support that could be provided
pursuant to this authority would be limited to $9.0 million in
fiscal year 1998 and $20.0 million during any of the fiscal
years 1999 through 2002.
Annual report on development and deployment of narcotics detection
 technology (sec. 1034)
 The House bill contained a provision (sec. 1033) that
would require the Director of the Office of National Drug
Control Policy to submit a report to the Congress and the
President regarding the development and deployment of narcotics
detection technologies by federal agencies.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Subtitle D--Miscellaneous Report Requirements and Repeals

Repeal of miscellaneous reporting requirements (sec. 1041)
 The House bill contained a provision (sec. 1041) that
would repeal certain obsolete reporting requirements imposed
upon the Department of Defense.
 The Senate amendment contained a similar provision (sec.
1031).
 The House recedes with an amendment.
Study of transfer of modular airborne fire fighting system (sec. 1042)
 The House bill contained a provision (sec. 1063) that
would require the Secretary of Defense to consult with the
Secretary of Agriculture and submit a report that would
evaluate the feasibility of transferring jurisdiction over
units of modular firefighting equipment from the Department of
Agriculture to the Department of Defense.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Overseas infrastructure requirements (sec. 1043)
 The Senate amendment contained a provision (sec. 1036)
that would require the Secretary of Defense to provide a report
to the Committee on Armed Services of the Senate and the
National Security Committee of the House of Representatives
outlining the current and future forward-basing requirements of
the Department of Defense along with the international
agreements necessary to provide these facilities.
 The House bill contained no similar provision.
 The House recedes.
Additional matters for annual report on activities of the General
 Accounting Office (sec. 1044)
 The Senate amendment contained a provision (sec. 1040)
that wouldrequire the General Accounting Office to include
within its annual report to Congress the amount of work performed at
the request of members of Congress, the amount of work performed to
fulfill a specific legislative requirement, and the amount of work
initiated by the Comptroller General in performance of his general
responsibilities.
 The House bill contained no similar provision.
 The House recedes.
Eye safety at small arms firing ranges (sec. 1045)
 The Senate amendment contained a provision (sec. 1041)
that would require the Secretary of Defense to conduct a study
of eye safety at small arms firing ranges, and report to the
Congress on the development of a protocol for reporting eye
injuries incurred during small arms firing activities.
 The House bill contained no similar provision.
 The House recedes with an amendment that would change the
date on which the study is to begin.
Reports on Department of Defense procedures for investigating military
 aviation accidents and for notifying and assisting families of
 victims (sec. 1046)
 The Senate amendment contained a provision (sec. 1044)
that would require the Secretary of Defense to provide a series
of reports to the Congress related to investigations of
military aviation accidents; assistance provided to families of
casualties; and a review of the Federal Aviation Administration
and the National Transportation Safety Board procedures for
providing information and assistance to families of casualties
of non-military aviation accidents.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees believe that military families deserve the
best possible care, attention, and information, especially at a
time of tragic personal loss. Breakdowns in the implementation
of the established family notification procedures that are
applicable in case of armed forces and Department of Defense
civilian personnel casualties can cause significant distress
and mistrust. The conferees believe that Department of Defense
representatives involved in casualty notifications should have
the training and experience to provide meaningful information
about any investigations. The notification personnel should
have access to persons qualified to provide effective grief
counseling. Procedures for civilian family notification that
have been adopted by the Federal Aviation Administration and
National Transportation Safety Board might serve as a useful
model for improvements to Department of Defense procedures.
 The requirement for the report on aviation accident
investigation procedures is not intended to create the
perception that the current procedures are inadequate. Rather
the requirement is an opportunity to assess proposals to
combine the two investigations into a single, public
investigation process in order to clarify possible
misconceptions or misunderstandings related to the current
Department of Defense procedures. The conferees recognize that,
although the Department of Defense provides much needed
logistical support, including transportation and care of
remains, survivor counseling, and other benefits for tragedies
like the crash of the C-130 aircraft on November 22, 1996, this
support may be insufficient to meet the immediate emotional and
personal needs of affected family members. It is important that
the flow of information to surviving family members be accurate
and timely, and, to the extent possible, be provided to family
members in advance of media reports. Therefore, the conferees
believe the Department of Defense should give a high priority,
to the extent practicable, to providing family members with all
relevant information about an accident as soon as it becomes
available, consistent with the national security interests of
the United States, and to allowing the family members full
access to any public hearings or public meetings about the
accident.

 Subtitle E--Matters Relating to Terrorism

Oversight of counterterrorism and antiterrorism programs and activities
 of the United States (sec. 1051)
 The House bill contained a provision (sec. 1064) that
would direct the Office of Management and Budget to establish a
reporting system and collect information from executive
agencies on their counterterrorism and antiterrorism programs,
activities, budgets, and expenditures; to provide a report on
executive branch activities and programs from 1995 through 1997
and submit the information to Congress. The provision would
also require an annual report to Congress on this information.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would modify
the requirement to report to Congress on executive branch
activities and programs from 1995 through 1997, and require an
annual report on prospective U.S. government counterterrorism
and antiterrorism activities, programs, budgets, and
expenditures.
Report on policies and practices relating to the protection of members
 of the armed forces abroad from terrorist attack (sec. 1052)
 The House bill contained a provision (sec. 1043) that
would require the Secretary of Defense to report on
antiterrorism activities and programs of the Department of
Defense, to include a description of the various programs,
deficiencies in the programs, and actions taken by the
Secretary to improve implementation of those programs.
 The Senate amendment contained two provisions regarding
the policies and practices of the Department of Defense (DOD)
in protecting members of the armed forces against terrorist
attack; one provision (sec. 1043) that would require the
Secretary of Defense to submit a report to Congress that would
assess the policies and practices of the Department to protect
U.S. Armed Forces from terrorist attack and assess the
procedures for determining accountability in the chain of
command in the event a terroristincident results in loss of
life at a U.S. military facility abroad; another provision (sec. 1053)
that would direct the Secretary of Defense to take appropriate actions
to ensure that units of the U.S. Armed Forces engaged in peace
operations have adequate troop protection equipment for such
operations.
 The conferees agree to a single provision that would
direct the Secretary of Defense to take appropriate actions to
ensure that U.S. Armed Forces engaged in peace operations have
the necessary equipment to adequately protect themselves; would
direct the Secretary to designate a DOD official with
responsibility for oversight of troop protection equipment;
would require the Secretary of Defense to submit a report to
Congress on antiterrorism programs and actions conducted by
DOD, and the roles of the chain of command in providing force
protection guidance and support to U.S. Armed Forces deployed
overseas before and after the two terrorist bombings against
U.S. Armed Forces in Saudi Arabia in 1995 and 1996.

 Subtitle F--Matters Relating to Defense Property

Lease of nonexcess personal property of the military departments (sec.
 1061)
 The House bill contained a provision (sec. 1058) that
would require the military departments to compete any lease in
excess of one year for personal property valued over $100,000
and notify the Congress 45 days prior to entering into such a
lease.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment.
Lease of nonexcess property of defense agencies (sec. 1062)
 The Senate amendment contained a provision (sec. 842)
that would extend to the directors of defense agencies
authority currently granted to the service secretaries to lease
nonexcess property under certain circumstances.
 The House bill contained no similar provision.
 The House recedes with an amendment that would
incorporate portions in the Senate provision regarding fair
market value and competition requirements for such lease
agreements.
Donation of excess chapel property to churches damaged or destroyed by
 arson or other acts of terrorism (sec. 1063)
 The Senate amendment contained a provision (sec. 1078)
that would allow the Department of Defense to donate excess
Army chapel property to churches that were destroyed or damaged
by an act of arson or terrorism.
 The House bill contained no similar provision.
 The House recedes with an amendment that would expand the
authority to apply to all excess chapel property within the
Department of Defense.
Authority of the Secretary of Defense concerning disposal of assets
 under cooperative agreements on air defense in Central Europe
 (sec. 1064)
 The Senate amendment contained a provision (sec. 1089)
that would provide authority for the Secretary of Defense,
pursuant to amendments to the European air defense agreements
agreed to on December 6, 1983 and July 12, 1984, to provide
defense articles owned and acquired by the United States to the
Federal Republic of Germany.
 The House bill contained no similar provision.
 The House recedes.
 The conferees note that pursuant to amendments to the
European Air Defense Agreements agreed to on December 6, 1983
and July 12, 1984, the Patriot-Roland Cooperative Agreement
(section 1007, Public Law 98-525, and section 132, Public Law
99-83) enabled the United States and the Federal Republic of
Germany to enhance central European air defenses by utilizing
Patriot batteries and the Roland short range air defense
systems, which are owned by the United States but operated by
the Federal Republic of Germany.
 Since January 1996, negotiations between the United
States and the Federal Republic of Germany have been underway
to modify and extend the current agreement. The Department of
Defense (DOD) has informed the conferees that the current
proposal would allow the transfer of ownership for 12 Patriot
batteries and 27 Roland short range air defense systems to the
Federal Republic of Germany in exchange for equitable
compensation. The DOD has further informed the conferees that
modifying the current agreements to provide for this transfer
of ownership would be an equitable solution with regard to the
assets involved in the original agreement, and would enable
continued cooperation in the air defense mission area. The
conferees understand that legislation is necessary to
accomplish these transfers as the original agreements do not
provide the required transfer authority and this particular
transfer would fall outside of the coverage of the more
traditional authorities contained in the Arms Export Control
Act, 22 U.S.C. 2751.
 The conferees direct the Secretary of Defense to provide
a report to Congress on the status of the negotiations on the
Patriot-Roland Follow-On Implementing Agreement (FOIA). The
conferees further direct that prior to the transfer of title
for any Patriot or Roland systems, the Secretary of Defense
shall provide the congressional defense committees with a
report on the financial and non-financial benefits to the
United States of the transfer of the equipment, the mission
value of the FOIA compensation components, the terms of the
equipment transfer (including the use of mission value as
compensation), the ability of the United States to meet its
NATO obligations, and any potential obstacles to the
performance of FOIA missions.
Sale of excess, obsolete, or unserviceable ammunition and ammunition
 components (sec. 1065)
 The Senate amendment contained a provision (sec. 365)
that would authorize the Secretary of the Army to competitively
sell excess, obsolete, or unserviceable ammunition and
ammunition components to licensed manufacturers that have the
capability to modify, reclaim,transport, and either store or
sell ammunition or ammunition components. The ammunition or ammunition
components purchased under this authority would be required to be
demilitarized or used in such a way as the Secretary of the Army
determines is consistent with the public interest.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
all receipts to be deposited into the Federal Treasury and
would require an Army Audit Agency report during the first
three years on the effect of this authorization.
Transfer of B-17 aircraft to museum (sec. 1066)
 The Senate amendment contained a provision (sec. 1070)
that would authorize the Secretary of the Air Force to transfer
the B-17 aircraft known as Picadilly Lilly to the Planes of
Fame Museum in Chino, California. The provision would require
that the plane be demilitarized and that the cost of the
demilitarization be paid by the museum.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees note that the particular circumstances
surrounding this case, including the museum's possession of a
bill of sale transferring this plane from the Federal
Government to the museum, are unique and that this provision
does not establish any precedent regarding the transfer of
aircraft.
Report on disposal of excess and surplus materials (sec. 1067)
 The Senate amendment contained a provision (sec. 1038)
that would require the Secretary of Defense to submit a report
to the Congress outlining the actions required to ensure that
the Department better manages the Defense Reutilization and
Marketing System so as to eliminate, or at least minimize, the
problems.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment that would
incorporate the reporting requirements contained in the House
report language regarding this issue.

 Subtitle G--Other Matters

Authority for special agents of the Defense Criminal Investigative
 Service to execute warrants and make arrests (sec. 1071)
 The House bill contained a provision (sec. 1051) that
would grant the Secretary of Defense authority to authorize
special agents of the Defense Criminal Investigative Service
(DCIS) to execute and serve warrants and other process issued
under the authority of the United States, and to authorize them
to make warrantless arrests in certain situations. The
authority of a special agent under this provision could only be
exercised in accordance with guidelines prescribed by the
Attorney General.
 The Senate amendment contained a similar provision (sec.
1065).
 The Senate recedes with a clarifying amendment.
 Since the authority granted by this provision is to be
exercised in accordance with guidelines prescribed by the
Inspector General of the Department of Defense and approved by
the Attorney General, proposed guidelines should be submitted
by the Inspector General to the Attorney General as
expeditiously as possible.
Study of investigative practices of military criminal investigative
 organizations relating to sex crimes (sec. 1072)
 The House bill contained a provision (sec. 1052) that
would require the Secretary of Defense to commission from the
National Academy of Public Administration an independent study
of the policies, procedures, and practices of the military
criminal investigative organizations in investigating sex
crimes and other criminal sexual misconduct in the armed
forces.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Technical and clerical amendments (sec. 1073)
 The House bill contained a provision (sec. 1053) that
would make various technical and clerical amendments to
existing law.
 The Senate amendment contained a provision (sec. 556)
that would make a technical correction to a cross-reference in
section 14317(d) of title 10, United States Code.
 The conferees agree to a provision that would incorporate
portions of these technical amendments.
Sustainment and operation of the Global Positioning System (sec. 1074)
 The Senate amendment contained a provision (sec. 1064)
that would endorse and enact into law the presidential policy
on the sustainment and operation of the Global Positioning
System (GPS) issued in March 1996.
 The House bill contained no similar provision.
 The House recedes with an amendment that would provide
that the Interagency GPS Executive Board, established pursuant
to the presidential GPS policy, be the forum for interagency
review of any proposed international agreement on the civil use
of GPS. The amendment would also direct the Secretary of
Defense not to accept any restriction on the GPS system
proposed by the head of any other department or agency in the
exercise of that official's regulatory authority that would
adversely affect the military potential of GPS.
Protection of safety-related information voluntarily provided by air
 carriers (sec. 1075)
 The House bill contained a provision (sec. 1056) that
would protect from disclosure certain air safety information
voluntarily submitted to the Department of Defense by an air
carrier providing charter air transportation to the Department.
 The Senate amendment contained a similar provision (sec.
1063).
 The Senate recedes with an amendment.
National Guard ChalleNGe Program to create opportunities for civilian
 youth (sec. 1076)
 The House bill contained a provision (sec. 1057) that
would provide the Secretary of Defense, acting through the
Chief of the National Guard Bureau, authority to conduct a
program known as the National Guard ChalleNGe Program and would
authorize the Department of Defense to provide up to $50.0
million in funding to support the program. The section would
also limit the Department of Defense share of the costs of
operating a program in each state to 75 percent in fiscal year
1998--with that share decreasing by 5 percent each year, to 60
percent in fiscal year 2001. Finally, the section would
increase by $30.0 million the $20.0 million included in the
budget request. To pay for the increase, the committee would
reallocate to the ChalleNGe program the $15.0 million that it
had intended to add to the Army National Guard military
personnel accounts for initial entry and military skill
training. In addition, the committee recommends a reduction in
the amounts requested in the President's budget for Army and
Air National Guard operations and maintenance funding by $7.5
million each.
 The Senate amendment contained a provision (sec. 1052)
that would extend the authorization for the National Guard
Civilian Youth Opportunities Pilot Program until September 30,
1998. The provision would limit the number of programs to 15,
would limit the amount which may be obligated in support of the
program during fiscal year 1998 to $20.0 million, and would
require non-Federal funding to match the Federal Government
contribution to the program in each state.
 The Senate recedes.
Disqualification from certain burial-related benefits for persons
 convicted of capital crimes (sec. 1077)
 The House bill contained a provision (sec. 1060) that
would prohibit the Secretary of Defense from providing military
honors at the funeral of a person who has been convicted of a
crime under state or federal law for which death is a possible
punishment and for which the person was sentenced to death or
life imprisonment without parole.
 The Senate amendment contained a provision (sec. 1076)
that would disqualify persons convicted of a capital offense
under Federal law from burial in cemeteries administered by the
Secretary of Defense and the Secretary of Veterans Affairs and
would prohibit such a person from receiving other burial
benefits prescribed by federal law.
 The House recedes with an amendment that would
incorporate the House provision and would prohibit a person
convicted of a capital offense from being buried in any
cemetery administered by the Secretary of Defense, as well as
Arlington National Cemetery.
Restrictions on the use of human subjects for testing of chemical or
 biological agents (sec. 1078)
 The Senate amendment contained a provision (sec. 1086)
that would prohibit the United States government from using
human subjects for chemical or biological tests or experiments.
The provision would not apply to research, tests, or
experiments related to medical, therapeutic, pharmaceutical,
agricultural, and industrial activities, or research, tests, or
experiments directly related to protection against toxic
chemicals, or to protection against chemical or biological
agents, U.S. military purposes not related to the use of
chemical weapons, and law enforcement activities, including
domestic riot control and the imposition of capital punishment.
The provision would also require the Department of Defense to
report to Congress annually on the conduct of chemical and
biological tests involving human subjects, with a certification
by the Secretary of Defense that informed consent was obtained
from each subject, prior to testing, and would repeal section
808 of the Department of Defense Appropriation Authorization
Act for Fiscal Year 1978 (50 U.S.C. 1520).
 The House bill contained no similar provision.
 The House recedes with an amendment that would prohibit
the Secretary of Defense, either directly or by contract, from
conducting tests or experiments using chemical or biological
agents on human subjects and would require the Secretary of
Defense to report to Congress thirty days prior to date that
the Department of Defense intends to conduct a chemical or
biological test or experiment involving human subjects.
Treatment of military flight operations (sec. 1079)
 The Senate amendment contained a provision (sec. 1072)
that would modify section 303(c) of title 49, United States
Code, the Department of Transportation Act of 1966. Section
303(c) currently requires the Department of Transportation to
review transportation programs or projects that use parks,
refuges, or historic sites and to determine that no alternative
to the public land use is available and that harm to the public
land is minimized. The Senate provision specifies that a
military airspace proposal for national security-related
activities is not a ``transportation program or project'' to
which section 303(c) applies.
 The House bill contained no similar provision.
 The House recedes.
Naturalization of certain foreign nationals who serve honorably in the
 Armed Forces during a period of conflict (sec. 1080)
 The Senate amendment contained a provision (sec. 1073)
that would modify the Immigration and Naturalization Act, title
8, United States Code, to permit foreign national service
members who reenlist on board U.S. public vessels to qualify
for naturalization without regard to the location of the
vessel. The effective date of the provision would be
retroactive to cover those foreign nationals who reenlisted on
board U.S. vessels since January 1, 1990.
 The House bill contained no similar provision.
 The House recedes with an amendment that would remove a
portion of the Senate provision waiving certain provisions of
the ImmigrationAct of 1990 pertaining to processing
applications for naturalization.
Applicability of certain pay authorities to members of specified
 independent study organizations (sec. 1081)
 The Senate amendment contained a provision (sec. 1069)
that would exempt retired federal employees and retired
military personnel who have been appointed as members of the
Commission on Servicemembers and Veterans Transition Assistance
from limitations pertaining to receiving federal pay while
concurrently receiving a federal retirement annuity.
 The House bill contained no similar provision.
 The House recedes with an amendment that would exempt
retired Federal employees and retired military personnel who
have been appointed as members of the National Defense Panel as
well as those appointed to the Commission on Servicemembers and
Veterans Transition Assistance.
Display of POW/MIA flag (sec. 1082)
 The House bill contained a provision (sec. 1054) that
would expand the dates on which the POW/MIA flag must be flown,
as well as the locations where it must be flown on the
prescribed dates. In addition, the section would repeal
existing law that terminates the requirement to display the
POW/MIA flag upon the President's determination that the
fullest possible accounting has been made of all members of the
armed forces and civilian employees of the United States who
have been identified as prisoner of war or missing in action in
Southeast Asia.
 The Senate amendment contained a similar provision (sec.
1077).
 The Senate recedes with a clarifying amendment.
Program to commemorate 50th anniversary of the Korean conflict (sec.
 1083)
 The House bill contained a provision (sec. 374) that
would authorize the Secretary of Defense, to begin to plan,
coordinate, and execute a program to commemorate the 50th
anniversary of the Marshall Plan and the Korean Conflict.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would authorize
the Department of Defense to expend up to $100,000 for the
planning, coordination, and execution of a program to
commemorate the 50th anniversary of the Korean conflict.
Commendation of members of the Armed Forces and Government civilian
 personnel who served during the cold war; certificate of
 recognition (sec. 1084)
 The House bill contained a provision (sec. 1059) that
would recognize the service and sacrifices of military and
civilian personnel who served during the Cold War era.
 The Senate amendment contained a provision (sec. 536)
that would authorize the secretaries of the military
departments to award a medal to military personnel who served
honorably during the Cold War era.
 The Senate recedes with an amendment that would require
the Secretary of Defense to develop a certificate recognizing
service during the Cold War era and to make the certificate
available upon request by qualified personnel.
Sense of Congress on granting of statutory Federal charters (sec. 1085)
 The conferees agree to include a provision that would
express the sense of Congress that no statutory federal charter
should be enacted unless the charter is approved by the
Congress upon a favorable report by the committees of
jurisdiction of the respective houses.
Sense of Congress regarding military voting rights (sec. 1086)
 The Senate amendment contained three provisions (sec.
541-543) that would establish a short title of ``Military
Voting Rights Act of 1997'', amend the Soldiers' and Sailors'
Civil Relief Act of 1940 to preclude a military member from
losing a claim to State residency for the purpose of voting in
federal and state elections because of absence due to military
orders, and amend the Uniformed and Overseas Citizens Absentee
Voting Act to require each State to permit absent military
voters to use absentee registration procedures and to vote by
absentee ballot in elections for state and local offices, in
addition to federal offices as provided in current law.
 The House bill contained no similar provision.
 The House recedes with an amendment that would substitute
the sense of Congress that would affirm the absolute right of
military members to vote in federal, state, and local
elections; state that a military member's extended absence from
a place of residency or domicile due to military orders would
not be grounds for loss or change of residency or domicile; and
call for legislation to confirm the voting rights of military
personnel following a review of the need for legislation and
the impact of such legislation on the right of states to set
voter registration requirements.
 The conferees are concerned that, in the absence of
legislation that would guarantee military voting rights in
state and local elections, such rights are subject to
challenge. Accordingly, the conferees direct that the Secretary
of Defense, in consultation with the Attorney General, study
the issue, determine the need for legislation, assess the
consequences of such legislation for the right of states to set
voter registration requirements, and recommend a course of
action for the Congress, to include proposed legislation, if
appropriate. The conferees direct that a report on the matters
outlined above be submitted to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives not later than March 1, 1998. The
conferees anticipate that both Committees will hold hearings to
consider the need for such legislation in the coming year.
Designation of Bob Hope as an honorary veteran of the Armed Forces of
 the United States (sec. 1087)
 The Senate amendment contained a provision (sec. 1074)
that would designate Mr. Bob Hope as an honorary veteran of the
Armed Forces of the United States.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees recognize that Bob Hope has contributed
many years of service to enhancing the morale and welfare of
members of the Armed Forces of the United States. He has
traveled to virtually every post, camp, and station where
military personnel are assigned overseas, including those in
war zones, bringing entertainment, laughter, cheer, and a touch
of home, sometimes at great personal risk.
 Thanks for the memories, Bob.
Five-year extension of aviation insurance program (sec. 1088)
 The Senate amendment contained a provision (sec. 1071)
that would extend through September 30, 2002 the aviation
insurance program authorized in section 44310 of title 49,
United States Code.
 The House bill contained no similar provision.
 The House recedes.

 Legislative Provisions Not Adopted

Naming of a DDG-51 class destroyer the U.S.S. Thomas F. Connolly
 The House bill contained a provision (sec. 1024) that
would express the sense of Congress that the Secretary of the
Navy should name one of the ships of the DDG-51 class of
destroyers the U.S.S. Thomas F. Connolly in honor of Vice
Admiral Connolly.
 The Senate amendment contained no similar provision.
 The House recedes.
Assignment of Department of Defense personnel to assist immigration and
 naturalization service and custom service
 The House bill contained a provision (sec. 1032) that
would authorize the Secretary of Defense to assign up to 10,000
U.S. military personnel to assist the Immigration and
Naturalization Service and the U.S. Customs Service in their
border enforcement duties at the request of the Attorney
General or the Secretary of the Treasury.
 The Senate amendment contained no similar provision.
 The House recedes.
Repeal of annual report requirement relating to training of special
 operations forces with friendly foreign forces
 The House bill contained a provision (sec. 1042) that
would amend section 2011 of title 10, United States Code, to
repeal the requirement that the Department of Defense prepare
an annual report relating to training of U.S. Special
Operations Forces with the forcesof friendly foreign
governments.
 The Senate bill contained no similar provision.
 The House recedes.
Armament retooling and manufacturing support initiative
 The House bill contained a provision (sec. 1065) that
would expand the purpose of the Armament Retooling and
Manufacturing Support Initiative to allow for the use of
ammunition manufacturing facilities by other entities for the
purpose of modernization, development, and restoration of the
facilities. The authority would also allow the government to
enter into 99 year leases with private entities that want to
operate on these facilities.
 The Senate amendment contained no similar provision.
 The House recedes.
Long-term charter contracts for acquisition of auxiliary vessels for
 the Department of Defense
 The House bill contained a provision (sec. 1501) that
would authorize the Secretary of the Navy to enter into long-
term lease agreements for the procurement of combat logistics
force (CLF) ships.
 The Senate amendment contained no similar provision.
 The House recedes.
Availability of certain fiscal year 1991 funds for payment of contract
 claim
 The Senate amendment contained a provision (sec. 1007)
that would authorize the Secretary of the Army to reimburse the
Treasury judgment fund out of a certain fiscal year 1991
appropriation for any judgment against the United States that
might be rendered in the case Appeal of McDonnell Douglas
Company, Number 48029, presently before the Armed Services
Board of Contract Appeals.
 The House bill contained no similar provision.
 The Senate recedes.
Psychotherapist-patient privilege in the Military Rules of Evidence
 The Senate amendment contained a provision (sec. 1051)
that would require the Secretary of Defense to submit to the
President, for consideration for promulgation under article 36
of the Uniform Code of Military Justice (10 U.S.C. 836), a
recommended amendment to the Military Rules of Evidence that
would recognize a testimonial privilege regarding disclosure by
a psychotherapist of confidential communications with a
patient. The privilege was to be applicable to patients who are
not subject to the Uniform Code of Military Justice and, upon a
determination by the Secretary of Defense, to individuals
subject to the Code.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees note that the Department of Defense has
already made significant progress toward drafting a recommended
amendment to the Military Rules of Evidence incorporating the
above-described privilege. The conferees urge the Department of
Defense to submit the proposed amendment to the President at
the earliest opportunity.
Acceptance and use of landing fees for use of overseas military
 airfields by civil aircraft
 The Senate amendment contained a provision (sec. 1055)
that would authorize a military service to accept and retain
fees for the use of foreign-based military airfields by civil
aircraft.
 The House bill contained no similar provision.
 The Senate recedes.
Protection of employees from retaliation for certain disclosures of
 classified information
 The Senate amendment contained a provision (sec. 1068)
that would amend the Whistleblower Protection Act to protect
certain government employees from reprisal for disclosing
classified information to certain members or employees of
Congress in the course of providing evidence of violations of
law or other wrongdoing.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees note that existing law prohibits reprisals
against covered employees for disclosing information--whether
classified or not--to the Congress, if that information relates
to violations of law or regulation, gross mismanagement or
waste, abuses of authority, or dangers to public health or
safety. The conferees direct the Secretary of Defense to report
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives
not later than March 1, 1998, on the following:
 (1) the mechanisms presently in law or regulation
 under which federal or contractor employees may report
 violations of law, fraud, waste, or abuse to the
 Congress or within the executive branch where
 classified information is involved;
 (2) the steps the Department of Defense has taken
 to ensure that such employees are aware of those
 mechanisms; and
 (3) the protections in effect in law or regulation
 to ensure that the employees who use these mechanisms
 are protected against reprisal.
Criminal prohibition on the distribution of certain information
 relating to explosives, destructive devices, and weapons of
 mass destruction
 The Senate amendment contained a provision (sec. 1075)
that would amend section 842 of title 18, United States Code,
to make it a crime for a person to teach, demonstrate the
making of explosives, destructive devices or weapons of mass
destruction, or to distribute information on the manufacture or
use of explosives, destructive devices, and weapons of mass
destruction.
 The House bill contained no similar provision.
 The Senate recedes.
Restrictions on quantities of alcoholic beverages available for
 personnel overseas through Department of Defense sources
 The Senate amendment contained a provision (sec. 1090)
that would require the Secretary of Defense to prescribe
regulations relative to the quantity of alcoholic beverages
that are available to service members assigned overseas through
the Department of Defense, including alcoholic beverages
available through nonappropriated fund instrumentalities. The
regulations would be required to be consistent with the goal of
preventing the blackmarket sale of American alcoholic beverages
at overseas locations.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees remain concerned about the problem of the
blackmarket resale of American products overseas, particularly
alcoholic beverages in countries such as Korea. However, the
conferees understand that the Department of the Army has taken
administrative steps to reduce the opportunities for black
marketing of alcoholic beverages in Korea and other overseas
locations. Therefore, the conferees direct the Secretary of
Defense to submit to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives a report that would describe the rules that
govern the quantities of alcoholic beverages available to
service members overseas and the administrative actions taken
by each of the military departments to control the illegal
resale of alcoholic beverages at overseas military
installations. The report shall identify circumstances that
contribute to the problem of blackmarket resale of products
sold in exchanges in South Korea, and shall include an
assessment of the extent to which South Korean trade
restrictions on beer and other products are a contributing
factor. The report should be submitted no later than March 31,
1998.

 Title XI--Department of Defense Civilian Personnel

 Legislative Provisions Adopted

Use of prohibited constraints to manage Department of Defense personnel
 (sec. 1101)
 The Senate amendment contained a provision (sec. 1101)
that would require the secretaries of the military departments
and heads of defense agencies to certify directly to the
Committee on Armed Services of the Senate and the Committee on
National Security of the House of Representatives that the
civilian workforce under their jurisdiction is not and has not
during the preceding six months been the subject of any
constraint or limitation in terms of man years, full-time
equivalent positions, or maximum number of employees.
 The House bill contained no similar provision.
 The House recedes with an amendment that would change the
reporting requirement to an annual report.
Veterans' preference status for certain veterans who served on active
 duty during the Persian Gulf War (sec. 1102)
 The House bill contained a provision (sec. 323) that
would permit veterans preference to be awarded to military
personnel who served on active duty during the Persian Gulf
War.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Repeal of deadline for placement consideration of involuntarily
 separated military reserve technicians (sec. 1103)
 The Senate amendment contained a provision (sec. 1104)
that would eliminate the time limitation within which
involuntarily separated military reserve technicians would be
given priority placement consideration.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Rate of pay of Department of Defense overseas teachers upon transfer to
 General Schedule position (sec. 1104)
 The House bill contained a provision (sec. 321) that
would provide the Secretary of Defense authority to adjust a
Department of Defense Dependents Schools educator's salary up
to 20 percent when that person is moved from a position under
the Teaching Position (TP) pay system to a position under the
General Schedule (GS) pay system.
 The Senate amendment contained a provision (sec. 1105)
that would authorize the Secretary of Defense to prescribe
regulations to control the amount of salary increase awarded to
certain overseas professional educators who transfer from
positions compensated under the ``Teaching Pay'' system to
positions compensated under the ``General Schedule'' pay
system.
 The House recedes with an amendment that would clarify
the Senate provision.
Garnishment and involuntary allotment (sec. 1105)
 The Senate amendment contained a provision (sec. 1107)
that would restore the requirement that the cost of garnishment
or involuntary allotments be borne by the federal employee.
 The House bill contained no similar provision.
 The House recedes.
Extension and revision of voluntary separation incentive pay authority
 (sec. 1106)
 The Senate amendment contained a provision (sec. 1103)
that would extend the authority for the Voluntary Separation
Incentive Pay Program for the Department of Defense until
September 30, 2001.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Use of approved fire-safe accommodations by Government employees on
 official business (sec. 1107)
 The House bill contained a provision (sec. 322) that
would require that each government agency ensure that not less
than 90 percent of the commercial-lodging room nights for
employees of that agency be booked at approved accommodations
and would require that each government agency establish
explicit procedures to meet this requirement.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would retain
the 90 percent standard; require the Federal Emergency
Management Agency to prepare an accurate fire-safe hotel list;
and require the General Services Administration to submit a
one-time report on implementation of the requirements.
Navy higher education pilot program regarding administration of
 business relationships between Government and private sector
 (sec. 1108)
 The Senate amendment contained a provision (sec. 1108)
that would establish a pilot program of higher education at the
Naval Undersea Warfare Center and would authorize $2.5 million
to be appropriated to fund the program.
 The House bill contained no similar amendment.
 The House recedes with an amendment that would provide
the Secretary of the Navy the authority to establish and fund a
pilot program of higher education available to employees of the
Naval Undersea Warfare Center, employees of the Naval Sea
Systems Command, and employees of the Acquisition Center for
Excellence of the Navy.
Authority for Marine Corps University to employ civilian faculty
 members (sec. 1109)
 The House bill contained a provision (sec. 903) that
would authorize the Secretary of the Navy to employ civilian
professors at any of the seven colleges within the Marine Corps
University whose principal course of instruction is 10-months
or more long.
 The Senate amendment contained a similar provision (sec.
1102).
 The Senate recedes with a clarifying amendment.

 Title XII--Matters Relating to Other Nations

 Legislative Provisions Adopted

 Subtitle A--United States Armed Forces in Bosnia and Herzegovina

Limitation on the use of funds for the deployment of U.S. forces in
 Bosnia beyond June 30, 1998 (secs. 1201-1206)
 The House bill contained provisions (secs. 1201, 1210-
1212) on Bosnia that would require the Secretary of Defense to
submit a report to Congress identifying the non-military tasks
performed by U.S. armed forces participating in the NATO
Stabilization Force (SFOR) in Bosnia; would direct the
President to report on the political and military conditions in
Bosnia and the costs associated with the continued presence of
U.S. armed forces in Bosnia, and would limit the expenditure of
a portion of the fiscal year 1998 defense funds authorized and
appropriated for operations in Bosnia until such time as the
report is submitted to Congress. In addition, a provision in
the House bill would limit the use of fiscal year 1998 defense
funds for the deployment of U.S. armed forces in Bosnia after
June 30, 1998.
 The Senate amendment contained a provision (sec. 1083)
that would express the sense of the Senate that U.S. ground
combat forces should be withdrawn from Bosnia by June 30, 1998
and should not participate in a follow-on force; that a Western
European Union-led, or a NATO-led, force without U.S. ground
combat forces are suitable for a follow-on force after June 30;
that, if necessary, the United States may appropriately provide
support, including command and control, intelligence, logistics
and, if required, a ready reserve force in the region; and that
the President should inform European allies of the views
expressed by the Congress, strongly urging them to take
appropriate steps to prepare a follow-on force to maintain
peace in Bosnia, and consult with Congress on any support
provided by the United States to a WEU-led or NATO-led follow-
on force after June 30, 1998.
 The conferees agree to a series of provisions that would
express findings of the Congress regarding the deployment of
U.S. armed forces in Bosnia and express the sense of Congress
that a WEU-led or NATO-led force without participation of U.S.
ground combat forces may be suitable for a follow-on force to
the SFOR, and that the United States may decide to provide
appropriate support to such a follow-on force. Another
provision would limit the use of fiscal year 1998 funds
authorized for the Department of Defense after June 30, 1998
for the deployment of U.S. ground combat forces in Bosnia,
unless the President certifies to the Congress that the
continued presence of U.S. ground combat forces is in the
national security interests, and that it will remain the policy
of the United States that U.S. ground forces will not be used
as civil police in Bosnia. Concurrent with this certification,
the President would be required to submit a report on the
rationale for a continued U.S. armed forces presence, the
number of U.S. military personnel to be deployed in and around
Bosnia, the expected duration of the deployment, the mission
and objectives of the U.S. armed forces deployed in and around
Bosnia after June 30, 1998, the exit strategy and incremental
costs associated with the deployment of the U.S. military in
and around Bosnia after June 30, 1998, and other issues
associated with extending the presence of the U.S. military
forces in and around Bosnia. In addition, the conferees agree
to a provision that would require the President to submit
concurrently with the certification and report, a supplemental
appropriations request for such amounts as are necessary to
continue the deployment of U.S. military forces in and around
Bosnia after June 30, 1998.
 Another provision (sec. 1204) would require the Secretary
ofDefense to submit two reports to Congress regarding
activities and tasks carried out by U.S. forces assigned to the
Stabilization Force (SFOR), or any successor force to SFOR.
 Lastly, the conferees agree to a provision (sec. 1205)
that would require the President to submit a report to Congress
by February 1, 1998 on the political and military conditions in
Bosnia, that would include, but not be limited to, an
assessment of progress made in implementing the Dayton Peace
Agreement, other matters related to a follow-on force to SFOR,
the possible involvement of U.S. military forces supporting
peacekeeping activities in Bosnia following the withdrawal of
U.S. ground combat forces from Bosnia, and a detailed
explanation and timetable for withdrawing U.S. ground combat
forces from Bosnia by June 30, 1998.

 Subtitle B--Export Controls on High Performance Computers

Export controls on high performance computers (secs. 1211-1215)
 The House bill contained provisions (secs. 1231-1234)
that would express concerns about recent reports that United
States-origin supercomputers were obtained by countries of
proliferation concern for possible use in weapons-related
activities and that these countries have refused to allow the
United States to conduct post-shipment verification of the
supercomputers to ensure that they are not being used for
military purposes. The provision would prohibit the export, or
re-export, of supercomputers with a composite theoretical
performance of more than 2,000 millions of theoretical
operations per second (MTOPS) to any Tier III country without
the prior written approval of the Secretary of Commerce, the
Secretary of Defense, the Secretary of Energy, the Secretary of
State, and the Director of the Arms Control and Disarmament
Agency. It would also require the President to report to
Congress on all supercomputers with a computational capability
of over 2,000 MTOPS that have been exported to all countries
since January 1996. Finally, it would require post-shipment
verification of U.S. origin supercomputers that exceed 2,000
MTOPS that have been exported to Tier III countries and require
a report on the results of post-shipment verification.
 The Senate amendment contained a provision (sec. 1080)
that would require the General Accounting Office (GAO) to
conduct a study on the national security risks of selling
supercomputers with a computational capability of 2,000-7,000
MTOPS to end-users in Tier III countries and to conduct an
assessment of foreign availability of supercomputers in the
2,000-7,000 MTOPS range. The provision would require the
Secretary of Commerce to publish a list of military and nuclear
end-users and establish procedures by which U.S. exporters may
seek information on questionable end-users.
 The conferees agree to a series of provisions. One
provision (sec. 1211) would require that no computer with a
composite theoretical performance of more than 2,000 MTOPS, or
such other composite theoretical performance level established
by the President, may be exported or re-exported to covered
countries without a license if the sale without a license is
objected to in writing by the Secretary of Commerce, the
Secretary of Defense, the Secretary of Energy, the Secretary of
State, or the Director of the Arms Control and Disarmament
Agency. Such objection would have to be made within ten days of
receiving the notice of proposed export, or re-export. The
provision would allow the President, after consultation with
the same department and agency heads, to change the threshold
of the composite theoretical performance levels that would
require the aforementioned ten day review before being exported
without license to covered countries. However, the provision
would delay implementation of such a threshold adjustment for
180 days after receipt by Congress of a report that justifies
the change of the threshold. In addition, the provision would
allow the President to add or delete countries from the list of
covered countries, after consultation with the same department
and agency heads, but would delay implementation of deletions
from the list for 120 days after receipt by Congress of a
report that justifies the deletion, and would preclude the
deletion of certain countries of proliferation concern from
this list. Another provision (sec. 1212) would require a report
to Congress on the sales of high performance computers to Tier
III countries since January 1996. The conferees also agree to a
provision (sec. 1213) that would require post-shipment
verification of high performance computers sold to covered
countries and an annual report on the results of post-shipment
verification. Lastly, the conferees direct the GAO to study the
national security risks of exporting high performance computers
to Tier III countries and to provide an analysis of the foreign
availability of high performance computers (sec. 1214).

 Subtitle C--Other Matters

Temporary use of general purpose vehicles and nonlethal military
 equipment under acquisition and cross servicing agreements
 (sec. 1222)
 The House bill contained a provision (sec. 1204) that
would amend section 2350(1) of title 10, United States Code, to
clarify the conditions under which the Department of Defense
may enter into acquisition and cross servicing agreements, and
define certain provisions of the United States Munitions List
to apply under those conditions in order to permit the
Department of Defense to use general purpose vehicles and
nonlethal military equipment in contingency military
operations.
 The Senate amendment contained no similar provision.
 The conferees direct the Secretary of Defense to provide
a report to the congressional defense committees by May 1, 1998
on the Department's use of this authority to enter acquisition
and cross servicing agreements that would permit the temporary
use of general purpose vehicles and nonlethal military
equipment in contingency military operations.
Sense of Congress and reports regarding financial costs of enlargement
 of the North Atlantic Treaty Organization (sec. 1223)
 The House bill contained a provision (sec. 1207) that
would limit the amount spent by the United States on enlarging
the membership of the North Atlantic Treaty Organization (NATO)
to ten percent of the cost of expansion, or a total of $2.0
billion, whichever is less, for fiscal years 1998 through 2010.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would include
findings on the differing assessments of the costs of enlarging
NATO in reports submitted to Congress by the Department of
Defense, the Congressional Budget Office and the RAND
Corporation, and the General Accounting Office; would express
the sense of Congress that the costs associated with enlarging
the Alliance will be major factors during Senate consideration
of the instruments of ratification, and the congressional
authorization and appropriation of funds. The provision would
require the Secretary of Defense to provide to Congress by
March 31, 1998, an assessment of the NATO analysis of the
military requirements and the estimated financial costs to the
Alliance of integrating Poland, the Czech Republic, and Hungary
into NATO. In addition, the provision would require the
Secretary of Defense to submit with the fiscal year 1999 budget
a report on the costs of NATO enlargement reflected in the
Department of Defense budget and with appropriate detail in the
budget justification materials submitted to Congress.
Sense of Congress regarding expansion of the North Atlantic Treaty
 Organization (sec. 1224)
 The Senate amendment contained a provision (sec. 1087)
that would express the sense of the Senate commending the North
Atlantic Treaty Organization (NATO) for its commitment to
review the prospect of further enlarging the Alliance in 1999,
and for its recognition of progress made by Romania and
Slovenia in meeting the guidelines for prospective membership
in NATO.
 The House bill contained no similar provision.
 The House recedes with a technical and clarifying
amendment.
Sense of the Congress relating to level of United States military
 personnel in the East Asia and Pacific region (sec. 1225)
 The House bill contained a provision (sec. 1208) that
would express the sense of Congress that the United States
should maintain at least approximately 100,000 U.S. military
personnel in the East Asia-Pacific region to ensure stability
in that critical area.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Report on future military capabilities and strategy of the People's
 Republic of China (sec. 1226)
 The House bill contained a provision (sec. 1203) that
would require the Department of Defense to prepare an
assessment of thefuture military capabilities and strategy of
the People's Republic of China.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Sense of Congress on need for Russian openness on the Yamantau Mountain
 Project (sec. 1227)
 The House bill contained a provision (sec. 1209) that
would express the sense of Congress for the need for more
openness on the part of the Russian government on the purpose
of a massive underground facility at Yamantau Mountain.
 The Senate amendment did not contain a similar provision.
 The Senate recedes with a clarifying amendment.
 The United States and Russia have been working to
establish a new strategic relationship based on cooperation and
openness, which has resulted in the conclusion of several far-
reaching arms control agreements designed to further reduce
bilateral threats and to limit the proliferation of weapons of
mass destruction. Despite good faith efforts on both sides to
comply with the letter and spirit of these agreements, the
conferees are concerned about reports that a massive
underground facility is currently under construction at
Yamantau Mountain. In seeking answers to questions about the
purpose of the project at Yamantau Mountain, it appears that
the Russian Federation has deliberately misled the United
States about the purpose of this facility on a number of
occasions. The facility appears to be designed to survive a
nuclear war and appears to exceed reasonable defense
requirements.
 The Russian Federation has offered numerous stories about
the construction activities at Yamantau Mountain and the city
of Mezhgorye and the purpose of such activities. In 1991 and
1992, the commandant of Beloretsk-15 and Beloretsk-16, People's
Deputy Leonid A. Tskirkunov told two stories about these
activities. First, he said they were building a mining and ore-
processing complex. Later, he changed that explanation to one
of constructing an underground food and clothing warehouse. In
1992, a former communist official in the region, M.Z.
Shakiorov, alleged that the Russian Federation was building a
shelter for its national leadership, in case of war.
 In 1996, sources from the Russian newspaper Segodnya
claimed that the facility was associated with a nuclear
retaliatory command and control system for strategic missiles
known as ``Dead Hand.'' This claim was denied by General Igor
Sergeyev, the Commander-in-Chief of the Strategic Rocket
Forces. In that same year, a Deputy of the State Assembly, R.
Zhukov, claimed the facility at Yamantau Mountain belonged to
the ``atomic scientists.''
 The United States has learned that Russia's 1997 budget
lists the Yamantau Mountain project as a Ministry of Defense
installation on a closed territory. However, First Deputy of
Defense Andre Kokoshin denied Ministry of Defense involvement
with the activity.
 The conferees are concerned that the Russian Federation
should be more forthcoming in providing the United States with
more information on the Yamantau Mountain Project. The sense of
Congress expressed the need for the Federation to provide the
United States with a detailed explanation of the purpose of the
Yamantau Mountain Project, and that the Russian Government
allow the United States Delegations to visit the facility, and
facilities in the southern and northern settlements located
near Yamantau.
Assessment of the Cuban threat to United States national security (sec.
 1228)
 The Senate amendment contained a provision (sec. 1046)
that would require the Department of Defense to submit a report
on an assessment of the threat posed by Cuba to U.S. national
security.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Report on Helsinki Joint Statement (sec. 1229)
 The Senate amendment contained a provision (sec. 1045)
that would require the President to submit a report to Congress
on the agreement reached by the United States and the Russian
Federation on future reductions in nuclear forces and the
United States approach to implementing the Helsinki Joint
Statement, to include verification implications.
 The House bill contained no similar provision.
 The House recedes.
Commendation of Mexico on free and fair elections (sec. 1230)
 The Senate amendment contained a provision (sec. 3601)
that would express a sense of Congress that Mexico is to be
commended for its holding of free and fair elections on July 6,
1997.
 The House bill contained no similar provision.
 The House recedes.
Sense of Congress regarding Cambodia (sec. 1231)
 The Senate amendment contained a provision (sec. 3602)
that would express a sense of Congress that the conditions that
existed in Cambodia prior to the actions of Hun Sen, who ousted
his democratically-elected co-Prime Minister Prince Ranariddh,
should be restored, and that assistance by the United States
and other donor nations to Cambodia should be suspended until
that time.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Congratulating Governor Christopher Patten of Hong Kong (sec. 1232)
 The Senate amendment contained a provision (sec. 3603)
that would express a sense of Congress that Christopher Patten,
British governor of Hong Kong until the time the British colony
was turned over to the People's Republic of China, is to be
commended for his leadership of Hong Kong under British rule.
 The House bill contained no similar provision.
 The House recedes.

 Title XIII--Arms Control and Related Matters

 Legislative Provisions Adopted

Presidential report concerning detargeting of Russian strategic
 missiles (sec. 1301)
 The House bill contained a provision (sec. 1206) that
would require the President to certify to Congress by January
1, 1998 whether the United States is able to verify by
technical means that Russian intercontinental ballistic
missiles (ICBMs) are not targeted at the United States; the
length of time it would take for a detargeted Russian ICBM to
be retargeted against a site in the United States; and whether
a detargeted Russian ICBM would be automatically retargeted
against a site in the United States in the event of an
accidental launch.
 The Senate amendment contained no similar provision.
 The conferees note that the Secretary of Defense was
directed in the House report on H.R. 3230 (H. Rept. 104-563),
the National Defense Authorization Act for Fiscal Year 1997, to
provide a report on the verifiability and military significance
of the Moscow Declaration of January 14, 1994. On May 16, 1997,
the Secretary submitted a report to Congress which stated that
the United States could not independently verify that Russian
intercontinental ballistic missiles were no longer targeted at
the United States and that detargeted Russian ICBMs could be
quickly retargeted within minutes. With regard to detargeted
U.S. ICBMs, the report stated that these missiles could be
retargeted in a short time.
 The conferees believe that efforts between the United
States and the Russian Federation to lower the threat of a
massive nuclear exchange are laudable goals and encourage
measures that would make a substantive contribution toward
enhancing strategic stability. The conferees agree that it is
important to have a full understanding of what particular
agreements mean relative to achieving those goals. The
conferees support a careful analysis of the advantages and
limitations of the missile detargeting agreement. Therefore,
the conferees agree to a provision that would require the
President to submit a report to Congress that addresses issues
regarding the detargeting of Russian strategic missiles.
Limitation on retirement or dismantlement of strategic nuclear delivery
 systems (sec. 1302)
 The Senate amendment contained a provision (sec. 1054)
that would preclude the reduction of certain strategic delivery
systems unless the START II Treaty enters into force and the
President waives this prohibition. The provision would also
prohibit substantial early deactivation of strategic nuclear
delivery systems, such as warhead removal, unless the Secretary
of Defense meets certain requirements, as specified in the
provision. Finally, the provision would require the Secretary
of Defense to prepare a plan for the contingency sustainment of
a START I force beyond 1998, should START II not enter into
force by 2004.
 The House bill contained no similar provision.
 The House recedes with an amendment that would prohibit
the obligation of funds available to the Department of Defense
during fiscal year 1998 to implement an agreement that results
in substantial early deactivations of U.S. strategic forces
until the President makes certain determinations.
Assistance for facilities subject to inspection under the Chemical
 Weapons Convention (sec. 1303)
 The Senate amendment contained a provision (sec. 1057)
that would allow the Department of Defense (DOD), through the
On-Site Inspection Agency (OSIA), to provide technical
assistance to companies that are subject to routine or
challenge inspection under the terms of the Chemical Weapons
Convention (CWC), provided that OSIA is reimbursed for such
assistance by the U.S. National Authority established under the
CWC.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
 The conferees note that the CWC imposes new obligations
on private U.S. companies that may lead them to seek assistance
from DOD in preparing their facilities for inspections to be
carried out under the Convention's terms. The conferees
recognize that the On-Site Inspection Agency possesses the
technical experience to assist companies in this process.
However, this is not part of OSIA's mission and the DOD would
incur significant costs in providing such assistance. To this
end, the conferees agree that DOD may not provide any CWC-
related assistance to private companies unless the Secretary of
Defense determines that the Department will be reimbursed for
the costs incurred in providing such assistance.
 The conferees note that the CWC implementing legislation
passed by the Senate contains a similar provision. The
conferees expect DOD to adhere to the additional requirements
that govern the process by which the Department is to be
reimbursed.
Transfers of authorizations for high-priority counterproliferation
 programs (sec. 1304)
 The Senate amendment contained a provision (sec. 217)
that would authorize the Secretary of Defense to transfer up to
$50.0 million from funds authorized in fiscal year 1998 for the
Department of Defense to conduct counterproliferation programs,
projects, and activities that are identified as a high priority
by the Counterproliferation Review Committee.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.
Advice to the President and Congress regarding the safety, security,
 and reliability of United States nuclear weapons stockpile
 (sec. 1305)
 The Senate amendment contained a provision (sec. 1084)
that wouldextend to the directors of Department of Energy
nuclear weapons laboratories, the Commander in Chief of the U.S.
Strategic Command, and any member of the Joint Nuclear Weapons Council
protection against adverse action by employees of the Federal
Government in cases where those individuals gave advice or opinions to
the President or Congress relating to a safety, security, or
reliability issue with the nuclear weapons stockpile.
 The House bill contained no similar provision.
 The House recedes with an amendment that would modify
section 3159(b) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201) to require that reports
on problems with the nuclear weapons stockpile prepared by the
directors of the nuclear weapons laboratories be submitted to
the President, in addition to Congress, and to extend
protection to the Department of Energy nuclear weapons
production plant managers. Section 3159(b) would be modified to
require the Department of Energy Assistant Secretary for
Defense Programs to forward any such reports in their entirety,
with any comments the Assistant Secretary deems appropriate,
within ten days.
 The conferees note that the Congress has frequently
expressed its view that the stewards of the nuclear weapons
stockpile must freely give their best advice on the safety and
reliability of the stockpile. The conferees note that earlier
legislation has provided for reports on such advice.
Reconstitution of Commission to Assess the Ballistic Missile Threat to
 the United States (sec. 1306)
 The conferees agree to include a provision that would
extend by one year the time for the Commission to Assess the
Ballistic Missile Threat to the United States, established
pursuant to Subtitle B of Title XIII of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201), to
complete its original charter.
Sense of Congress regarding the relationship between environmental laws
 and United States obligations under the Chemical Weapons
 Convention (sec. 1307)
 The Senate amendment contained a provision (sec. 1058)
that would express the sense of the Senate that the President
should use the authority available under existing law to ensure
that the United States is able to construct and operate the
facilities necessary to destroy the United States stockpile of
lethal chemical agents and munitions within the time allowed by
the Chemical Weapons Convention (CWC) and that the President
should encourage negotiations between appropriate Federal
Government officials and officials of the State and local
governments concerned to attempt to meet their concerns about
the actions being taken to carry out the obligations of the
United States under the convention.
 The House bill contained no similar provision.
 The House recedes with an amendment that would modify the
provision to express the sense of Congress regarding
obligations of the United States under the CWC and would add
findings from a February 1997 General Accounting Office study
regarding matters that affect the schedule and costs of the
chemical demilitarization program.
Extension of counterproliferation authorities for support of United
 Nations Special Commission on Iraq (sec. 1308)
 The House bill contained a provision (sec. 1202) that
would extend the authority through fiscal year 1998 for the
Department of Defense (DOD) to continue to provide support to
the United Nations Special Commission on Iraq (UNSCOM).
 The Senate amendment contained a similar provision (sec.
1056).
 The Senate recedes with a technical amendment.
 The conferees support the extension of this authority
given ongoing concerns over Iraq's continued possession of
weapons of mass destruction and missile delivery systems.
However, the conferees are concerned that the DOD role in
providing assistance has transitioned from a short-term
requirement to a semi-permanent element of the effort to
contain Iraq.
 Pursuant to United Nations Security Council Resolutions
986 and 1111, which took effect December 10, 1996 and June 8,
1997, respectively, Iraq is authorized to sell limited
quantities of oil with most of the proceeds going to pay for
humanitarian needs and to support UNSCOM activities. In
addition, UNSCOM activities are also funded by frozen Iraqi
assets and from direct and indirect contributions from other
nations. The conferees would note that the Department of
Defense is the primary source of U.S. government funding for
the UNSCOM mission, providing specialized equipment and
services otherwise unavailable to UNSCOM.
 The conferees believe that continued vigilance is
warranted to ensure that Iraq does not acquire or maintain
proscribed military capabilities. However, the conferees do not
believe that the costs of providing specialized support to
UNSCOM should be permanently borne by the Department of
Defense. To this end, the conferees support efforts by the
Department to seek reimbursement for expenses incurred in
providing support to UNSCOM and encourage the administration to
negotiate formal agreements to this effect.
Annual report on moratorium on use by Armed Forces of antipersonnel
 landmines (sec. 1309)
 The House bill contained a provision (sec. 1055) that
would require the Secretary of Defense, after consultation with
the Chairman of the Joint Chiefs of Staff, to certify to
Congress prior to the implementation of any moratorium by law
on the use of antipersonnel landmines (APL) by U.S. Armed
Forces, that any such moratorium would not adversely affect the
ability of U.S. Armed Forces to defend themselves, until such
time as effective substitutes exist to replace antipersonnel
landmines.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would contain
findings describing the actions and decisions by the President
relating to U.S. policy regarding antipersonnel landmines and
the status of current law; express the sense of Congress
regarding implementation of a landmine moratorium and support
for development of alternatives toantipersonnel landmines. The
provision would also require the Secretary of Defense to submit an
annual report describing the military utility of the continued U.S.
deployment of antipersonnel landmines, progress in developing and
fielding systems that are effective substitutes for antipersonnel
landmines, their costs and an estimated timetable for developing and
fielding those systems, the number and type of pure antipersonnel and
mixed anti-tank mine systems, the cost and effect of the elimination of
the former and the impact of their elimination on the deterrence and
warfighting ability of U.S. forces, and the benefits to U.S. military
and civilian personnel of an international treaty banning the
production, use, transfer and stockpiling of antipersonnel landmines.
 The conferees endorse the President's September 17, 1997
pledge to increase U.S. support for worldwide demining efforts.
 Further, the conferees believe that international
support, and increased funding, for practical efforts such as
clearing landmines and providing medical assistance and
rehabilitation to the wounded, could be highly effective in
reducing the landmine casualty count and reclaiming land for
its intended use.

 Title XIV--Cooperative Threat Reduction With States of Former Soviet
 Union

 Legislative Provisions Adopted

Cooperative threat reduction (CTR) program (secs. 1401-1410)
 The budget request included $382.2 million for the
Cooperative Threat Reduction (CTR) program.
 The House bill contained provisions (secs. 1101-1111)
that would: authorize $284.7 million for the Cooperative Threat
Reduction (CTR) program, a $97.5 million reduction to the
budget request; specify CTR programs; allocate fiscal year 1998
funding for the various CTR programs and activities; prohibit
the use of CTR funds for specific purposes; prohibit the
obligation of CTR funds until various reports, notifications,
and certifications are submitted to the Congress; make prior
year unobligated CTR balances available for three fiscal years;
and make fiscal year 1998 CTR funds available for three fiscal
years. The House bill would also add funds for the Department
of Energy (DOE) budget to carry out nuclear reactor core
conversion activities in Russia under the auspices of the CTR
program.
 The Senate amendment contained provisions (secs. 1009 and
1085) that would authorize the budget request of $382.2
million; would make funds authorized in fiscal year 1997 for
international border security activities available for three
years; and would provide the Secretary of Defense authority to
exceed the sublimits established in fiscal years 1996 and 1997
for CTR activities. The provisions would also limit the
obligation or expenditure of certain fiscal year 1998 funds
until receipt of either a certification by the President
regarding Russian progress in solving outstanding compliance
issues under bilateral chemical weapons agreements, or a
presidential certification that U.S. national security
interests would be undermined if CTR chemical weapons
destruction activities were not carried out.
 The conferees agree to a series of provisions that would
authorize $382.2 million for the CTR program, establish
sublimits for CTR activities and would provide the Secretary of
Defense with authority to exceed the established sublimits in
fiscal years 1996, 1997, and 1998 for strategic elimination
activities in Russia and Ukraine. The obligation of fiscal year
1998 CTR funds is contingent upon the submission of various
reports, notifications, and certifications to the Congress. The
use of the word ``agreements'' in these provisions does not
preclude the possibility that the conditions set forth can be
met by the implementing agreements routinely entered into
between the Department of Defense (DOD) and the CTR partner for
specific projects.
 The conferees reiterate their traditional support for CTR
assistance in the elimination of strategic nuclear weapons
systems in Russia and Ukraine. However, given the economic and
financial conditions in Russia, the conferees are concerned
about Russia's willingness to contribute its share of the costs
of eliminating its strategic offensive arms and its declared
stockpile of chemical weapons. As noted in recent U.S.
resolutions of ratification of arms control agreements, the
U.S. believes that Russia must contribute its share of the
costs of complying with its arms control commitments.
 The conferees note that the Department of Defense is
seeking congressional approval of fiscal year 1998 funds for
certain projects where fiscal year 1997 funds have not yet been
fully obligated because of the lack of the necessary
implementing agreements. As a general management principle, the
conferees believe that fiscal year 1998 funds should not be
obligated for those projects until the fiscal year 1997 CTR
funds have been obligated.
 The conferees are also concerned about recent reports
that Russia has applied taxes, duties, overhead charges, and
other arbitrary assessments on U.S. assistance. The conferees
agree to a provision that would require the Secretary of
Defense to report to the Congress on the impact of these
charges on the CTR program, and what can be done to reduce or
eliminate such charges.
 Finally, the conferees maintain their belief that the
proliferation of weapons of mass destruction, delivery systems,
components, materials, and related technologies, represents a
growing threat to the United States and to U.S. interests. In
this regard, the conferees note that section 1424 of the
National Defense Authorization Act for Fiscal Year 1997 (Public
Law 104-201) authorized $15.0 million of CTR funds for
international border security. This program would provide
assistance to customs officials and border guard officials in
the independent states of the former Soviet Union, such as
Azerbaijan, Armenia, Georgia, the Baltic states, and other
countries in Eastern Europe. The conferees understand that
funds authorized for this activity have not been obligated or
expended. The conferees note the continued congressional
support for this activity and direct the Department to take
appropriate actions to establish this activity and to obligate
the funds available as soon as possible. These activities
provide an early line of defense by improving the detection and
interdiction of such weapons, materials, and technologies
before they cross international borders.

 Title XV--Federal Charter for the Air Force Sergeants

 Legislative Provisions Adopted

Federal Charter for the Air Force Sergeants Association (secs. 1501-
 1516)
 The Senate amendment contained a series of provisions
(sec. 1201-1216) that would grant a federal charter for the Air
Force Sergeants Association.
 The House bill contained no similar provision.
 The House recedes.
 The leadership of the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives recognize the current moratorium on granting of
federal charters and agree that, in the future, amendments to
the National Defense Authorization Bill that would grant a
federal charter should not be included in a conference
agreement unless favorably recommended by the committees of
jurisdiction.

 DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

 overview

 The budget request for fiscal year 1998 included
$8,383,248,000 for military construction and family housing.
 The House bill would authorize $9,123,748,000 for
military construction and family housing.
 The Senate amendment would provide $9,077,061,000 for
this purpose.
 The conferees recommend authorization of appropriations
of $9,173,748,000 for military construction and family housing,
including general reductions and termination of prior year
projects.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

 FY 1998/1999 BUDGET ESTIMATES--FY 1998 BRAC MILITARY CONSTRUCTION
 PROJECTS
 [In thousands of dollars]
------------------------------------------------------------------------
 State and installation/location Description Amount
------------------------------------------------------------------------
 Army: BRAC III Construction, Fiscal Year 1998

 Texas:
 Fort Bliss................... Repair Aircraft Hanger 3,650
 (46865) III.
 ------------
 Subtotal Army Texas... 3,650
 Total for Army BRAC III 3,650
 Construction, FY 1998.

 Army BRAC IV Construction, Fiscal Year 1998

 Alaska:
 Fort Wainwright.............. Missile Test Facility 600
 (46159) IV.
 ------------
 Subtotal Army Alaska.. 600
 California:
 Camp Parks................... Army Reserve Center 9,500
 Facility (46206) IV.
 Sierra Army Depot............ Consolidated Security 900
 (45872) IV.
 Travis Air Force Base........ Administrative Facility 2,250
 (47187) IV.
 ------------
 Subtotal Army 12,650
 California.
 Colorado:
 Fitzsimons Army Medical Ctr.. Sanitary Sewer (46341) 2,100
 IV.
 Fort Carson.................. Readiness Group Admin 2,500
 Facility (46413) IV.
 ------------
 Subtotal Army Colorado 4,600
 District of Columbia:
 Walter Reed AMC.............. Nurse Training Facility 1,500
 (463342).
 ------------
 Subtotal Army District 1,500
 of Columbia.
 Maryland:
 Fort Detrick................. Health Clinic (46329) IV 650
 Fort Meade................... Administrative Facility 6,300
 (47237) IV.
 ------------
 Subtotal Army Maryland 6,950
 Michigan:
 Detroit Arsenal.............. Storage Facility (46300) 5,900
 IV.
 ------------
 Subtotal Army Michigan 5,900
 Missouri:
 Fort Leonard Wood............ Range Modifications 17,500
 (46094) IV.
 Military Operations in 6,900
 Urbanized Terrain
 Facility (45892) IV.
 ------------
 Subtotal Army Missouri 24,400
 New York:
 Fort Totten.................. Storage Facility (46258) 1,900
 IV.
 ------------
 Subtotal Army New York 1,900
 Nevada:
 Hawthorne Army Ammo Pit...... Warehouse (46217) IV.... 1,550
 Nellis Air Force Base........ Administrative Facility 3,850
 (46291) IV.
 ------------
 Subtotal Army Nevada.. 5,400
 South Carolina:
 Fort Jackson................. DoD Polygraph 4,600
 Instructional Fac
 (45839) IV.
 ------------
 Subtotal Army South 4,600
 Carolina.
 Virginia:
 Fort Pickett................. Reserve Center Building 3,100
 (46354) IV.
 ------------
 Subtotal Army Virginia 3,100
 Washington:
 Fort Lewis................... CHPPM Ctr for Health 3,150
 Promotion (46354) IV.
 ------------
 Subtotal Army 3,150
 Washington.
Various Locations................ Program Management IV... 3,750
 Total for Army BRAC IV 78,500
 Construction, FY 1998.

 Navy BRAC III Construction, FY 1998

 California:
 NAS, Lemoore................. Administrative Office 2,586
 (186T) III.
 MCAS, Miramar................ Support Facilities 48,773
 (007T) III.
 Pacific Fleet AWTC, San Diego Gym (387T) III.......... 3,501
 NSB, San Diego............... Pier Renovation (124T) 891
 III.
 PWC, San Diego............... Public Works Shop (175T) 1,821
 III.
 ------------
 Subtotal Navy 57,572
 California.
 Florida:
 NAD, Jacksonville............ Administrative Building 5,074
 (220T) III.
 NAS, Jacksonville............ Aviation Physiology 3,383
 Training Building
 (831T) III.
 NTC, Orlando................. Facility Modifications 2,686
 (001T) III.
 ------------
 Subtotal Navy Florida. 111,143
 Georgia:
 NAS, Atlanta................. Marine Reserve Training 9,053
 Facility (906T) III.
 ------------
 Subtotal Navy Georgia. 9,053
 Hawaii:
 PMRF, Barking Sands.......... Ordnance Facilities 612
 (297T) III.
 MCAS, Kaneohe Bay............ Aviation Supply 1,491
 Facilities (274T) III.
 Utilities Upgrade (504T) 2,168
 III.
 Ordnance Facilities 1,160
 (508T) III.
 NS, Pearl Harbor............. Fleet Imaging Center 1,005
 (524T) III.
 PWC, Pearl Harbor............ Utility System 1,492
 Modifications (539T)
 III.
 ------------
 Subtotal Navy Hawaii.. 7,928
 Virginia:
 NS, Norfolk.................. Administrative Facility 995
 (360T) III.
 ------------
 Subtotal Navy Virginia 995
 Washington:
 Navy Hospital, Bremerton..... Outpatient Clinic (019T) 10,409
 III.
 ------------
 Subtotal Navy 10,409
 Washington.
 Wisconsin:
 Fort McCoy................... Equipment Maintenance 2,295
 Facility (701T) III.
 ------------
 Subtotal Navy 2,295
 Wisconsin.
 Total for Navy BRAC III 99,395
 Construction, FY 1998.

 Navy BRAC IV Construction, Fiscal Year 1998

 California:
 MCAS, Miramar................ Administrative/Training 1,403
 Spaces (020U) IV.
 NAS, North Island............ Operational Facility and 28,750
 Parking (820U) IV.
 Intermediate Maintenance 1,273
 Facility (822U) IV.
 ------------
 Subtotal Navy 31,426
 California.
 District of Columbia:
 Commandant, Naval District Naval Sea Systems Cmd 86,045
 Washington. Hdq Relocation (088U)
 IV.
 ------------
 Subtotal Navy District 86,045
 of Columbia.
 Florida:
 NAS, Jacksonville............ Medical/Dental Additions 2,985
 (231U) IV.
 S-3 Naval Maintenance 1,329
 Trng Grp Mods (239U) IV.
 ------------
 Subtotal Navy Florida. 4,314
 Guam:
 Naval Activities............. Building Renovation 597
 (416U) IV.
 ------------
 Subtotal Navy Guam.... 597
 Pennsylvania:
 NSWC, Philadelphia........... Accoustics R&D Facility 6,151
 (185U) IV.
 ------------
 Subtotal Navy 6,151
 Pennsylvania.
 Virginia:
 NAS, Oceana.................. Flight Simulator 8,998
 Building Addition
 (160U) IV.
 Corrosion Control Hangar 4,775
 (576U) IV.
 Hangar Utilities 1,244
 Improvements (165U) IV.
 F/A 18 Aviation 2,686
 Maintenance Additions
 (164U) IV.
 Renovate/Addition 5,671
 Training Facility
 (161U) IV.
 FISC, Williamsburg........... Building Renovation 2,437
 (028U) IV.
 Cargo Staging Area 1,443
 (029U) IV.
 ------------
 Subtotal Navy Virginia 27,254
 Total Navy BRAC IV 155,787
 Construction, FY 1998.

 Air Force BRAC III Construction, Fiscal Year 1998

 California:
 Travis AFB................... Land Purchase 2,055
 (XDAT973300) III.
 Total for Air Force BRAC 2,055
 III Construction, FY
 1998.

 Air Force BRAC III Family Housing, FY 1998

 California:
 Travis AFB................... Improve Family Housing 46,010
 (XDAT950000) III.
 Total for Air Force BRAC 46,010
 III Family Housing, FY
 1998.

 Air Force BRAC IV Construction, FY 1998

 California:
 Beale AFB.................... Dining Facility 2,100
 (PRJ891009R1) IV.
 938 Engineering Install 8,100
 Sqd (PRJY911023R2) IV.
 Enlisted Dormitory 9,000
 (PRJY93103R2) IV.
 Add to Child Development 2,100
 Center (PRJY95301R1) IV.
 Vehicle Maintenance 1,450
 Facility (PRJY953009R1)
 IV.
 Air Force Res KC-135 1,700
 Flight Sim
 (PRJY953046R1) IV.
 Palmdale Plant 42............ Add/Alt QLA Secure 580
 Warehouse
 (PRJY953008R2) IV.
 ------------
 Subtotal Air Force 25,030
 California.
 Colorado:
 Falcon AFB................... Satellite Control 16,000
 Facility (GLEN973008A)
 IV.
 Add to Dining Facility 500
 (GLEN973009) IV.
 Technical Support 6,400
 Facility (GLEN973010)
 IV.
 Alter Operations Support 760
 Facility (GLEN973020)
 IV.
 Add to Fitness Center 300
 (GLEN983023) IV.
 Peterson AFB................. Enlisted Dormitory 1,200
 (TDKA963004) IV.
 ------------
 Subtotal Air Force 25,160
 Colorado.
 New York:
 Fort Drum.................... Vehicle OPS Heated 1,700
 Parking (WOXG959613) IV.
 Add to Fire Station 300
 (FPBB969510) IV.
 ------------
 Subtotal Air Force New 2,000
 York.
 Ohio:
 Wright-Patterson AFB......... Renovte QLA Support 2,500
 Facility (PRJY921012R1)
 IV.
 ------------
 Subtotal Air Force 2,500
 Ohio.
 Oklahoma:
 Vance AFB.................... Add to Child Development 330
 Center (XTLF983303) IV.
 ------------
 Subtotal Air Force 330
 Oklahoma.
 Texas:
 Brooks....................... Add/Alter YAD/textile 3,900
 Laboratory (CNBC993000)
 IV.
 Kelly AFB.................... Comm Infrastructure 2,500
 Support (MBPB993225R1)
 IV.
 Lackland AFB................. 838th Engineer 5,600
 Installation Sqd
 (MBPB993201R1) IV.
 Child Development Center 480
 (MBPB993209R2) IV.
 Add to Auto Hobby Shop 1,100
 (MBPB993222R1) IV.
 Laughlin AFB................. Engine Staging Facility 2,950
 (MXDP973004R2) IV.
 ------------
 Subtotal Air Force 16,530
 Texas.
Various Locations................ Planning and Design 4,157
 (BCL98RD4) IV.
 Total for Air Force BRAC 75,707
 IV Construction, FY
 1998.

 Air Force BRAC IV Family Housing, FY 1998

 Texas:
 Lackland AFB................. General Officers 790
 Quarters (MBPB993203R2)
 IV.
 Total for Air Force BRAC 790
 IV Family Housing, FY
 1998.
------------------------------------------------------------------------

 DLA and DISA had no projects relating to any BRAC round
requested in FY 1998.

 Title XXI--Army

 Fiscal Year 1998

Overview
 The House bill would authorize $2,055,364,000 for Army
military construction and family housing programs for fiscal
year 1998.
 The Senate amendment would authorize $1,951,478,000 for
this purpose.
 The conferees recommend authorization of appropriations
of $2,010,466,000 for Army military construction and family
housing for fiscal year 1998.
 The conferees agree to a general reduction of $36,600,000
in the authorization of appropriations for the Army military
construction account. The general reduction is to be offset by
savings from adjustments to foreign currency exchange rates for
military construction projects and the support of military
family housing outside the United States. The general reduction
shall not cancel any military construction authorized by of
this Act.

 ITEMS OF SPECIAL INTEREST

Planning and design, Army
 The Senate report on S. 924 (S. Rept. 105-29) directed
that, of the amount authorized for appropriations for Army
planning and design, not more than $1,000,000 may be directed
toward the design of the gymnasium at the United States
Military Academy, New York.
 The conferees direct that from the funds authorized for
appropriations for planning and design, the Secretary of the
Army may use funds as necessary to initiate planning and design
activities for the renovation of the gymnasium at the United
States Military Academy, New York and authorize $3,100,000 for
planning and design activities for the construction of the
National Ground Intelligence Center, Charlottesville, Virginia.
Improvements of military family housing, Army
 The conferees recommend that, within authorized amounts
for improvements of military family housing and facilities, the
Secretary of the Army execute the following projects:
$9,600,000 for Whole Neighborhood Revitalization (52 units) at
Fort Richardson, Alaska; $8,300,000 for Whole Neighborhood
Revitalization (32 units) at Fort Wainwright, Alaska;
$7,000,000 for Whole Neighborhood Revitalization (106 units) at
Fort Riley, Kansas; $6,000,000 for Whole Neighborhood
Revitalization, Phase IV (60 units) at Fort Campbell, Kentucky;
$5,400,000 for Whole Neighborhood Revitalization (56 units) at
the United States Military Academy, New York; and $5,000,000
for Whole Neighborhood Revitalization (48 units) at Fort
Belvoir, Virginia.

 Legislative Provisions Adopted

Correction in authorized uses of funds, Fort Irwin, California (sec.
 2105)
 The Senate amendment contained a provision (sec. 2105)
that would authorize the Secretary of the Army to construct a
heliport at Fort Irwin, California, using funds authorized and
appropriated in fiscal years 1995 and 1996 for construction of
the National Training Center Airfield, Fort Irwin, California.
The provision would make available $20.0 million for the
construction of the heliport.
 The House bill contained a similar provision (sec. 2105).
 The House recedes with a technical amendment.

 Title XXII--Navy

Overview
 The House bill would authorize $2,053,025,000 for Navy
military construction and family housing programs for fiscal
year 1998.
 The Senate amendment would authorize $1,898,924,000 for
this purpose.
 The conferees recommend authorization of appropriations
of $2,027,339,000 for Navy military construction and family
housing for fiscal year 1998.
 The conferees agree to a general reduction of $17,163,000
in the authorization of appropriations for the Navy military
construction account. $8,463,000 of the reduction is to be
offset by savings from favorable bids, reduction in overhead
costs, and cancellation of projects due to force structure
changes. $8,700,000 of the reduction is to be offset by savings
from adjustments to foreign currency exchange rates for
military construction projects and the support of military
family housing outside the United States. The general reduction
shall not cancel any military construction authorized by title
XXII of this Act.

 ITEMS OF SPECIAL INTEREST

Improvements of military family housing, Navy
 The conferees recommend that, within authorized amounts
for improvements to military family housing and facilities, the
Secretary of the Navy execute the following projects:
$4,193,000 for Whole House Revitalization (120 units) at Naval
Air Warfare Center China Lake, California; $7,700,000 for Whole
House Revitalization (64 units) at Public Works Center Great
Lakes, Illinois; $9,000,000 for Whole House Revitalization (90
units) at Naval Air Warfare Center Patuxent River, Maryland;
$2,863,000 for Whole House Revitalization (37 units) at Camp
Lejeune, North Carolina; and $6,000,000 for Whole House
Revitalization (83units) at Marine Corps Air Station Cherry
Point, North Carolina.

 Legislative Provisions Adopted

Authorization of military construction project at Naval Station,
 Pascagoula, Mississippi, for which funds have been appropriated
 (sec. 2205)
 The House bill contained a provision (sec. 2205) that
would authorize $4,900,000 to extend the west quaywall at Naval
Station, Pascagoula, Mississippi, for which funds were
previously appropriated pursuant to the Military Construction
Appropriations Act for Fiscal Year 1997 (Public Law 104-196).
 The Senate amendment contained a similar provision (sec.
2205).
 The Senate recedes with a technical amendment.
Increase in authorization for military construction projects at Naval
 Station Roosevelt Roads, Puerto Rico (sec. 2206)
 The Senate amendment contained a provision (sec. 2206)
that would amend section 2201(b) of the Military Construction
Act for Fiscal Year 1997 (Division B of Public Law 104-201) to
increase the authorization for the construction of a barracks
at Naval Station Roosevelt Roads, Puerto Rico from $23.6
million to $24.1 million. The section would also make certain
conforming changes.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.

 Title XXIII--Air Force

 Fiscal Year 1998

Overview
 The House bill would authorize $1,810,120,000 for Air
Force military construction and family housing programs for
fiscal year 1998.
 The Senate amendment would authorize $1,793,949,000 for
this purpose.
 The conferees recommend authorization of appropriations
of $1,791,640,000 for Air Force military construction and
family housing for fiscal year 1998.
 The conferees agree to a general reduction of $36,158,000
in the authorization of appropriations for the Air Force
military construction account. $23,858,000 of the reduction is
to be offset by savings from favorable bids, reduction in
overhead costs, and cancellation of projects due to force
structure changes. $12,300,000 of the reduction is to be offset
by savings from adjustments to foreign currency exchange rates
for military construction projects and the support of military
family housing outside the United States. The general reduction
shall not cancel any military construction authorized by title
XXIII of this Act.

 ITEMS OF SPECIAL INTEREST

Improvements of military family housing, Air Force
 The conferees recommend that, within authorized amounts
for improvements of military family housing and facilities, the
Secretary of the Air Force execute the following projects:
$5,000,000 for family housing improvements (72 units) at Cannon
Air Force Base, New Mexico; $4,600,000 for family housing
improvements (60 units) at Tinker Air Force Base, Oklahoma;
$7,000,000 for family housing improvements (78 units) at
Charleston Air Force Base, South Carolina; and $5,000,000 for
family housing improvements (50 units) at Shaw Air Force Base,
South Carolina.

 Legislative Provisions Adopted

Authorization of military construction project at McConnell Air Force
 Base, Kansas, for which funds have been appropriated (sec.
 2305)
 The House bill contained a provision (sec. 2305) that
would authorize $6,700,000 for a consolidated education center
at McConnell Air Force Base, Kansas, for which funds were
previously appropriated pursuant to the Military Construction
Appropriations Act, 1997 (Public Law 104-196).
 The Senate amendment contained a similar provision (sec.
2305).
 The House recedes with a technical amendment.

 Title XXIV--Defense Agencies

 Fiscal Year 1998

Overview
 The House bill would authorize $650,907,000 for Defense
Agencies military construction and family housing programs for
fiscal year 1998.
 The Senate amendment would authorize $717,677,000 for
this purpose.
 The conferees recommend authorization of appropriations
of $684,016,000 for Defense Agencies military construction and
family housing for fiscal year 1998. The conferees agree to a
general reduction of $1,200,000 in the authorization of
appropriations for the Defense Agencies military construction
account. The general reduction is to be offset by savings from
adjustments to foreign currency exchange rates for military
construction projects and the support of military family
housing outside the United States. The general reduction shall
not cancel any military constructions authorized by title XXIV
of this Act.

 Legislative Provisions Adopted

Clarification of authority relating to fiscal year 1997 project at
 Naval Station, Pearl Harbor, Hawaii (sec. 2406)
 The Senate amendment contained a provision (sec. 2406)
that would amend the table in section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1997 (Division B
of Public Law 104-201), to change the location of the Special
Operations Command military construction project from Ford
Island, Pearl Harbor, Hawaii, to Naval Station, Pearl City
Peninsula, Pearl Harbor, Hawaii.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Correction in authorized uses of funds, McClellan Air Force Base,
 California (sec. 2407)
 The Senate amendment contained a provision (sec. 2407)
that would authorize the Secretary of Defense to use funds
appropriated and authorized in fiscal year 1995 for life saving
improvements at McClellan Air Force Base Hospital. The funds
would be authorized for use in the following manner: (1) $3.7
million for the construction of an addition to the Aeromedical
Clinic, Anderson Air Force Base, Guam; and (2) $6.5 million for
the construction of an occupational health clinic, Tinker Air
Force Base, Oklahoma.
 The House bill contained a similar provision (sec. 2406).
 The House recedes with a technical amendment.
Modification of authority to carry out fiscal year 1995 projects (sec.
 2408)
 The Senate amendment contained a provision (sec. 2408)
that would amend section 2401 of the Military Construction
Authorization Act for Fiscal Year 1995, as amended. The
provision would authorize an increase of funding for the
construction of the Chemical Demilitarization Facilities at
Pine Bluff Arsenal, Arkansas, from $115.0 million to $134.0
million, and at Umatilla Army Depot, from $186.0 million to
$187.0 million, due to cost increases resulting from a delay in
receiving the appropriate permits.
 The House bill contained a similar provision (sec. 2407).
 The House recedes with a technical amendment.

 Title XXV--North Atlantic Treaty Organization Security Investment
 Program

 Fiscal Year 1998

Overview
 The House bill would authorize $166,300,000 for the U.S.
contribution to the NATO Security Investment Program for fiscal
year 1998.
 The Senate amendment would authorize $152,600,000 for
this purpose.
 The conferees agree to authorize $152,600,000 for the
United States contribution to the NATO Security Investment
Program.

 Title XXVI--Guard and Reserve Forces Facilities

 Fiscal Year 1998

Overview
 The House bill would authorize $327,208,000 for military
construction and land acquisition for fiscal year 1998 for the
Guard and Reserve components.
 The Senate amendment would authorize $507,279,000 for
this purpose.
 The conferees recommend authorization of appropriations
of $448,033,000 for military construction and land acquisition
for fiscal year 1998. This authorization would be distributed
as follows:

Army National Guard..................................... $113,750,000
Army Reserve............................................ 66,267,000
Naval/Marine Corps Reserve.............................. 47,329,000
Air National Guard...................................... 190,444,000
Air Force Reserve....................................... 30,243,000

 The conferees agree to a general reduction of $7,900,000
in the authorization of appropriations for the Air Force
Reserve military construction account. The general reduction is
to be offset by savings from favorable bids, reduction in
overhead costs, and cancellation of projects due to force
structure changes. The general reduction shall not cancel any
military constructions authorized by title XXVI of this Act.

 items of special interest

Reserve construction project, Oakdale, Pennsylvania
 The conference agreement provides $6.0 million for phase
I construction of a reserve center with an organizational
maintenance shop and area maintenance support center at
Oakdale, Pennsylvania to support the Army Reserve. The
conferees urge the Secretary of the Army to make every effort
to include the appropriate level of funding for the remaining
phases of construction in the fiscal year 1999 budget request.

 Legislative Provisions Adopted

Authorization of military construction projects for which funds have
 been appropriated (sec. 2602)
 The House bill contained a provision (sec. 2602) that
would authorize $5,900,000 for the Army National Guard for
additions and alterations to an aviation support facility at
Hilo, Hawaii, and$4,800,000 for the Naval Reserve for a
bachelor enlisted quarters at Naval Air Station, New Orleans,
Louisiana, for which funds were previously appropriated pursuant to the
Military Construction Appropriations Act, 1997 (Public Law 104-196).
 The Senate amendment contained a similar provision (sec.
2602).
 The Senate recedes.
Army Reserve construction project, Camp Williams, Utah (sec. 2603)
 The House bill contained a provision (sec. 2603) that
would authorize the Secretary of the Army to accept financial
or in-kind contributions from the State of Utah for land
acquisition, site preparation, and relocation, in connection
with the construction of a reserve center and organization
maintenance shop in Salt Lake City, Utah.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary and the State to enter into an agreement under
which the State would provide financial or in-kind
contributions for land acquisition, site preparation,
relocation, and other costs in connection with the construction
of a reserve center and organization maintenance shop at Camp
Williams, Utah.

 Title XXVII--Expiration and Extension of Authorizations

 Legislative Provisions Adopted

Extension of authorizations of certain fiscal year 1995 projects (sec.
 2702)
 The House bill contained a provision (sec. 2702) that
would provide for selected extension of certain fiscal year
1994 military construction authorizations until October 1,
1998, or the date of the enactment of the Act authorizing funds
for military construction for fiscal year 1999, whichever is
later.
 The Senate amendment contained a similar provision (sec.
2702).
 The House recedes with a technical amendment.
Extension of authorizations of certain fiscal year 1994 projects (sec.
 2703)
 The Senate amendment contained a provision (sec. 2703)
that would provide for selected extension of certain fiscal
year 1994 military construction authorizations until October 1,
1998, or the date of the enactment of the Act authorizing funds
for military construction for fiscal year 1998, whichever is
later.
 The House bill contained a similar provision (sec. 2703).
 The House recedes with a technical amendment.
Extension of authorizations of certain fiscal year 1993 projects (sec.
 2704)
 The House bill contained a provision (sec. 2704) that
would provide for selected extension of certain fiscal year
1993 military construction authorizations until October 1,
1998, or the date of the enactment of the Act authorizing funds
for military construction for fiscal year 1999, whichever is
later.
 The Senate amendment contained a similar provision (sec.
2704).
 The Senate recedes.
Extension of availability of funds for construction of relocatable
 over-the-horizon radar, Naval Station Roosevelt Roads, Puerto
 Rico (sec. 2706)
 The House bill contained a provision (sec. 2706) that
would provide for an extension of authority to construct a
relocatable over-the-horizon radar at Naval Station Roosevelt
Roads, Puerto Rico authorized by the Defense Appropriations
Act, 1995 (Public Law 103-335) until October 1, 1998, or the
date of the enactment of the Act authorizing funds for military
construction for fiscal year 1999, whichever is later.
 The Senate amendment contained a similar provision (sec.
2409).
 The Senate recedes with a technical amendment.

 Title XXVIII--General Provisions

 Legislative Provisions Adopted

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

Use of mobility enhancement funds for unspecified minor construction
 (sec. 2801)
 The House bill contained a provision (sec. 2801) that
would authorize the use of funds made available for mobility
enhancement for unspecified minor construction. Under the
provision, mobility enhancement funds could not be used for
unspecified minor construction if the cost of the construction
project would exceed $1,500,000.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Limitation on the use of operation and maintenance funds for facility
 repair projects (sec. 2802)
 The House bill contained a provision (sec. 2802) that
would clarify the definition of repair of facilities using
operations and maintenance funds.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Leasing of military family housing, United States Southern Command,
 Miami, Florida (sec. 2803)
 The House bill contained a provision (sec. 2803) that
would amend section 2828 of title 10, United States Code, to
authorize the Secretary of the Army to lease not more than
eight housing units in the vicinity of Miami, Florida, for key
and essential personnel of United States Southern Command, as
determined by the Secretary, for which the annual rental of
such units would exceed the expenditure limitations established
by law. This section would establish certain new expenditure
limitations related to such housing units.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Use of financial incentives provided as part of energy savings and
 water conservation activities (sec. 2804)
 The Senate amendment contained a provision (sec. 2804)
that would amend section 2865 of title 10, United States Code,
to authorize the Secretary of Defense to credit financial
incentives received from gas or electric utilities to an
appropriation designated by the Secretary. The impact of this
authority would be reflected in the Secretary's annual energy
report. The provision would also include a conforming
amendment.
 The House bill contained a similar provision (sec. 2804).
 The House recedes with a technical amendment.
Congressional notification requirements regarding use of Department of
 Defense housing funds for investments in nongovernmental
 entities (sec. 2805)
 The House bill contained a provision (sec. 2805) that
would provide for a 30-day notice-and-wait requirement on
requests to use funds appropriated or otherwise made available
under the authority of subchapter IV of chapter 169 of title
10, United States Code, as a cash contribution by the
Department of Defense toward the investment cost in any project
entered into under those authorities.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Subtitle B--Real Property and Facilities Administration

Increase in ceiling for minor land acquisition projects (sec. 2811)
 The House bill contained a provision (sec. 2811) that
would increase the maximum limit for minor land acquisitions
from $200,000 to $500,000.
 The Senate amendment contained a similar provision (sec.
2801).
 The Senate recedes.
Permanent authority regarding conveyance of utility systems (sec. 2812)
 The House bill contained a provision (sec. 1423) that
would authorize the secretary of a military department to
convey, with or without consideration, a utility system, or
part of a utility system, to a municipal, private, regional,
district, or cooperative utility company or other entity. Such
utility systems could include electrical generation and supply
systems, water supply and treatment systems, waste water
collection and treatment system, steam, hot or chilled water
generation and supply systems, natural gas supply systems, and
sanitary landfills or lands to be used for sanitary fills. The
provision would require the secretary concerned to submit a 21-
day notice-and-wait announcement, to include a report
containing an economic analysis of the proposed conveyance, to
Congress prior to entering into any agreement to convey a
utility.
 The Senate amendment contained a provision (sec. 2802)
that would authorize the service secretaries to convey all or
part of government utility systems located on military
installations to commercial or public utilities. The utilities
that may be conveyed include, but are not limited to:
electrical generation and supply; water treatment; water
supply; wastewater collection and treatment; steam, hot,
chilled water generation and supply, and natural gas supply.
The conveyance would be for fair market value, either as a
lump-sum payment or as a reduction in utility charges,
consistent with applicable Federal and State laws or
regulations, for a period sufficient to amortize the monetary
value of the utility system, including any conveyed real
property. Any lump sum payment received would be credited to an
appropriation available for the purchase of like utility
services or to an appropriation for the construction of energy
and water conservation projects or improvements to other
utility systems at the installation. The provision would waive
the cost comparison study between civilian and government
workers required by chapter 146 of title 10, United States
Code. The secretaries would not be authorized to enter an
agreement to convey until 21 days after the service secretaries
submit an economic analysis to the congressional defense
committees.
 The House recedes with an amendment that would strike the
waiver of a cost comparison study between civilian and
government workers required by chapter 146 of title 10, United
States Code. The amendment would add the authority to convey a
system for the transmission of telecommunications and would
require that if the payment for the utility is in the form of
reduced utility rates, that these rates be consistent with
Federal and state regulations. The amendment would also make
certain technical corrections.
Administrative expenses for certain real property transactions (sec.
 2813)
 The House bill contained a provision (sec. 2812) that
would authorize the secretary of a military department to
accept reimbursement from non-federal entities for the cost of
certain real estate services and transactions, including real
estate exchanges, grants, and licenses, done at the request of,
and for the benefit of, those entities.
 The Senate amendment contained a similar provision (sec.
2803).
 The Senate recedes with an amendment that would delete
the conveyances of real property as a transaction covered by
this authority.
Screening of real property to be conveyed by the Department of Defense
 (sec. 2814)
 The Senate amendment contained a provision (sec. 2805)
that would require the Administrator of the General Services
Administration (GSA) to screen for federal interest any real
property whose conveyance is authorized by the Congress. The
Administrator would be required to complete a screen of the
property within 30 days of enactment. If the Administrator
establishes a federal interest, the property would be conveyed
pursuant to the Federal Property and Administrative Services
Act of 1949. If it is determined that there is no other federal
interest and the property is surplus to the United States
Government, the Secretary of the appropriate military
department would be authorized to transfer the real property to
the designated recipient.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the Administrator to screen the property authorized for
conveyance for federal interest. Upon notification by the
Administrator of the interest of a Federal agency in the
property, the Secretary concerned would be required to notify
the Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives. The
notification shall include the name of the agency, the proposed
use of the property, and the estimated fair market value of the
property and improvements. The Secretary shall take no further
action for 180 days. If, after that period, the Congress has
not rescinded the conveyance, the Secretary may convey the
property as specified in the legislation. This requirement
would apply to any conveyances of real property enacted in any
legislation after December 31, 1997.
Disposition of proceeds from sale of Air Force Plant 78, Brigham City,
 Utah (sec. 2815)
 The Senate amendment contained a provision (sec. 2831)
that would authorize the Secretary of the Air Force to use the
funds deposited by the Administrator of General Services in the
account established under section 204(h)(2)(A) of the Federal
Property and Administrative Services Act of 1949 from the sale
of Air Force Plant 78, Brigham City, Utah, for maintenance and
repair of facilities, or environmental restoration, at other
industrial plants of the Air Force.
 The House bill contained a similar provision (sec. 2813).
 The House recedes with a technical amendment.
Fire protection and hazardous materials protection at Fort Meade,
 Maryland (sec. 2816)
 The Senate amendment contained a provision (sec. 1047)
that would require the Secretary of the Army to submit a plan
to the congressional defense committees outlining requirements
for fire protection services and hazardous materials protection
services at Fort Meade, Maryland. The report would also outline
a schedule for the implementation of the plan and a detailed
list of the funding options available.
 The House bill contained no similar provision.
 The House recedes.

 Subtitle C--Defense Base Closure and Realignment

Consideration of military installations as sites for new Federal
 facilities (sec. 2821)
 The House bill contained a provision (sec. 2821) that
would require the head of a federal agency to consult with the
Secretary of Defense on the availability of federal property or
facilities at military installations to be closed or realigned
prior to acquiring non-federal real property.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the head of the federal agency to consult with and obtain the
concurrence of the redevelopment authority regarding the
availability and suitability of a former military installation
as the location for a new or replacement federal facility. This
requirement would expire on July 31, 2001.
Adjustment and diversification assistance to enhance performance of
 military family support services by private sector sources
 (sec. 2822)
 The Senate amendment contained a provision (sec. 368)
that would amend section 2391(b)(5) of title 10, United States
Code, to authorize the Secretary of Defense, through the Office
of Economic Development, to make grants, conclude cooperative
agreements, and supplement other federal funds to assist state
or local governments in supporting the efforts of the
Department of Defense in privatizing family support activities.
These support services would include, but would not be limited
to, privatization and outsourcing of military family housing,
family housing referrals, child development centers, and
library services.
 The House bill contained no similar provision.
 The House recedes.
Security, fire protection, and other services at property formerly
 associated with Red River Army Depot, Texas (sec. 2823)
 The Senate amendment contained a provision (sec. 1088)
that would authorize the Secretary of the Army to enter into an
agreement to provide the local redevelopment authority at Red
River Army Depot, fire, security, and hazardous material
response services on a reimbursable basis.
 The House bill contained no similar provision.
 The House recedes.
Report on closure and realignment of military installations (sec. 2824)
 The Senate amendment contained a provision (sec. 2832)
that would require the Secretary of Defense to submit to the
congressional defense committees a report on the costs and
savings attributable to the four base closure rounds conducted
under the base closure laws and on the need, if any, for
additional base closure rounds. The report would have to be
submitted not later than the fiscal year 2000 budget. The
Congressional Budget Office and the Comptroller General would
be required to conduct a review of the report. The provision
would express a sense of Congress urging the Secretary to
develop a system to quantify costs and savings attributable to
the closure and realignment of military installations under the
base closure process.
 The House bill contained no similar provision.
 The House recedes with an amendment that would include an
assessment of the effect of previous base closure rounds on the
military capabilities and the ability of the Armed Forces to
fulfill the National Military Strategy. The amendment would
also make certain technical corrections.
Sense of Senate regarding utilization of savings derived from base
 closure process (sec. 2825)
 The Senate amendment contained a provision (sec. 2833)
that would make it the sense of the Senate that the savings
identified from base closure be made available to the
Department of Defense solely for the purpose of modernization
of weapons systems.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.
Prohibition against conveyance of property at Long Beach Naval Station
 to China Ocean Shipping Company (sec. 2826)
 The House bill contained a provision (sec. 2822) that
would prohibit the Secretary of Defense from conveying, by
sale, lease, or other method, any portion of real property to
be disposed under the Defense Base Closure and Realignment Act
of 1990 (part A of title XXIX of Public Law 101-510) to a
state-owned shipping company. The section would also preclude
the Secretary, as a condition on each conveyance of real
property, from subsequently conveying the property to a state-
owned shipping company. The section would provide for a
reversionary interest of the United States in such property in
the event of a conveyance to, or use by, a state-owned shipping
company.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would specify
that the Secretary of Navy may not convey property at the
former Naval Station, Long Beach, California under the Defense
Base Closure and Realignment Act of 1990 (part A of title XXIX
of Public Law 101-510) to the China Ocean Shipping Company
(COSCO) or any successor of the company. The section would also
preclude the Secretary, as a condition on each conveyance of
real property, from subsequently conveying that property to
that company. The section would provide for a reversionary
interest of the United States in such property in the event of
a conveyance to, or use by, COSCO. The provision would require
the Secretary of Defense and the Director of the Federal Bureau
of Investigations to separately prepare a report on the
potential national security implications of transferring the
property to COSCO. It would also include the authority for the
President to waive the restriction if it is determined that the
transfer would not adversely impact national security or
significantly increase the counter intelligence burden on the
United States intelligence community. The waiver would be
effective 30 days after the President notifies the Speaker of
the House and the President of the Senate.

 Subtitle D--Land Conveyances

 Part I--Army Conveyances

Land conveyance, Army Reserve Center, Greensboro, Alabama (sec. 2831)
 The Senate amendment contained a provision (sec. 2820)
that would authorize the Secretary of the Army to convey,
without consideration, to Hale County, Alabama approximately
5.17 acres located at the Army Reserve Center, Greensboro,
Alabama. The property was conveyed to the United States by
warranty deed dated September 12, 1988, for the purpose of
constructing a reserve center which is no longer required.
 The House bill amendment contained no similar provision.
 The House recedes.
Land Conveyance, James T. Coker Army Reserve Center, Durant, Oklahoma
 (sec. 2832)
 The House bill contained a provision (sec. 2831) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of real property with improvements in
Durant, Oklahoma to Big Five Community Services, Incorporated.
The property is to be used for educational purposes. The cost
of any surveys necessary for the conveyance shall be borne by
Big Five Community Services, Incorporated.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Land conveyance, Gibson Army Reserve Center, Chicago, Illinois (sec.
 2833)
 The House bill contained a provision (sec. 2838) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of real property with improvements in
Chicago, Illinois, to the Lawndale Business and Local
Development Corporation. The cost of any surveys necessary for
the conveyance shall be borne by the Lawndale Business and
Local Development.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would make the
conveyance subject to the condition that the corporation use
the property conveyed for economic development purposes.
Land conveyance, Fort A.P. Hill, Virginia (sec. 2834)
 The House bill contained a provision (sec. 2832) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of unimproved real property at Fort
A.P. Hill, Virginia, to Caroline County, Virginia. The property
is to be used for a waste transfer station. The costs of any
surveys necessary for the conveyance shall be borne by the
County.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment that would
specify that the County shall permit the Army, at no cost, to
dispose of not less than 1,800 tons of solid waste annually at
the facility established on the conveyed property.
Land conveyances, Fort Dix, New Jersey (sec. 2835)
 The House bill contained a provision (sec. 2839) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of real property with improvements at
Fort Dix, New Jersey, to the Borough of Wrightstown, New Jersey
and a parcel with improvements to the Board of Education of New
Hanover, New Jersey. The property is to be used for educational
and economic purposes. The cost of any surveys necessary for
the conveyance shall be borne by the Borough.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would include a
reversionary clause in the event the Secretary determines that
the conveyed property is not being utilized in accordance with
the conditions and purposes of the conveyance.
Land conveyances, Fort Bragg, North Carolina (sec. 2836)
 The House bill contained a provision (sec. 2837) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of unimproved real property at Fort
Bragg, North Carolina, to the Town of Spring Lake, North
Carolina. The property is to be used for improved access to a
waste treatment facility and to permit economic development.
The cost of any surveys necessary for the conveyance shall be
borne by the Town.
 The Senate amendment contained a provision (sec. 2823)
that would authorize the conveyance, without consideration, of
157 acres of land at Fort Bragg, North Carolina to Harnett
County, North Carolina for educational and economic development
purposes. The provision would also authorize the conveyance, at
fair market value, of a parcel of land in the amount of 137
acres at Fort Bragg, North Carolina to Harnett County. The
provisions would explicitly transfer any environmental
liability from the United States government to the county.
 The conference agreement includes both provisions. The
Senate recedes with an amendment that would require the real
property conveyed to the Town of Spring Lake be subject to the
reversionary clause contained in the Senate provision. The
House recedes with an amendment that would strike the transfer
of liability from the UnitedStates government to the county.
The conferees understand that this transfer is not required.
Land conveyance, Hawthorne Army Ammunition Depot, Mineral County,
 Nevada (sec. 2837)
 The Senate amendment contained a provision (sec. 2813)
that would authorize the Secretary of the Army to convey,
without reimbursement, to Mineral County, Nevada, approximately
33.1 acres of real property and improvements that constitute
the Schweer Drive Housing Area. The conveyance would be
contingent upon the County's acceptance of the property subject
to such easements or rights of way as the Secretary considers
appropriate. The provision would also require the County to
reimburse the United States in the event the property is sold
within 10 years. The reimbursement would be equal to the lesser
of the amount of the sale of the property sold, or the fair
market value of the property sold, excluding the value of any
improvements made by the County.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Expansion of land conveyance authority, Indiana Army Ammunition Plant,
 Charlestown, Indiana (sec. 2838)
 The House bill contained a provision (sec. 2833) that
would amend section 2858 of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of Public
Law 104-106) to provide for the additional conveyance of 500
acres of real property to the State of Indiana.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Modification of land conveyance, Lompoc, California (sec. 2839)
 The House bill contained a provision (sec. 2834) that
would modify the purpose of the conveyance authorized by
section 834(b)(1) of the Military Construction Authorization
Act, 1985 (Public Law 98-407). The modification would permit
the real property to be conveyed by the Secretary of the Army
to the City of Lompoc, California, to be used for educational
or recreational purposes.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Modification of land conveyance, Rocky Mountain Arsenal, Colorado (sec.
 2840)
 The House bill contained a provision (sec. 2835) that
would permit the Administrator of General Services to enter
into a negotiated sale of 815 acres of real property at Rocky
Mountain Arsenal, Colorado, to Commerce City, Colorado.
 The Senate amendment contained a provision (sec. 2819)
that would authorize the conveyance of the 815 acres at fair
market value, as determined jointly by the Administrator and
Commerce City.
 The House recedes with a clarifying amendment.
Correction of land conveyance authority, Army Reserve Center, Anderson,
 South Carolina (sec. 2841)
 The House bill contained a provision (sec. 2836) that
would correct the name of the conveyee in the conveyance
authorized by section 2824 of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public
Law 104-201). The correction would permit the conveyance to be
made by the Secretary of the Army to the Board of Education,
Anderson County, South Carolina.
 The Senate amendment contained a similar provision (sec.
2812).
 The House recedes with a technical amendment.

 Part II--Navy Conveyances

Land conveyance, Topsham Annex, Naval Air Station, Brunswick, Maine
 (sec. 2851)
 The Senate amendment contained a provision (sec. 2815)
that would authorize the Secretary of the Navy to convey,
without consideration, to the Maine School Administrative
District No. 75, Topsham, Maine, a parcel of real property,
consisting of approximately 40 acres located at the Topsham
Annex, Navy Air Station, Brunswick, Maine. The provision would
require the district to use the conveyed property for
educational purposes. It would further provide for an interim
lease of the property until the property is conveyed. As
compensation for the lease, the district would provide security
and maintenance.
 The House bill contained no similar provision.
 The House recedes with a clarifying amendment.
Land conveyance, Naval Weapons Industrial Reserve Plant No. 464, Oyster
 Bay, New York (sec. 2852)
 The Senate amendment contained a provision (sec. 2816)
that would authorize the Secretary of the Navy to convey,
without consideration, to the County of Nassau, New York, all
right, title, and interest of the United States in and to a
parcel of real property consisting of approximately 110 acres
and improvements comprising the Naval Weapons, Industrial
Reserve Plant No. 464, Oyster Bay, New York. The purpose of the
conveyance would be for economic development and would include
equipment, fixtures, and other personal property located on the
parcel as the Secretary determines not to be required by the
Navy. The provision would authorize the Navy to enter into an
interim lease with the County. The County would provide
security services, fire protection, and maintenance work, as
specified by the Secretary. The provision would specify that,
if the Secretary determines within a 5-year period after the
conveyance that the property is not used in accordance with the
condition of the conveyance, the property would revert to the
United States.
 The House amendment contained no similar provision.
 The House recedes with a clarifying amendment.
Correction of lease authority, Naval Air Station, Meridian, Mississippi
 (sec. 2853)
 The House bill contained a provision (sec. 2851) that
would change the name of the conveyee in the conveyance
authorized by section 2837 of the Military Construction
Authorization Act for Fiscal Year 1997 (division B of Public
Law 104-201). The correction would permit the conveyance to be
made by the Secretary of the Navy to the County of Lauderdale,
Mississippi.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Part III--Air Force Conveyances

Land transfer, Eglin Air Force Base, Florida (sec. 2861)
 The House bill contained a provision (sec. 2861) that
would authorize the Secretary of Transportation to transfer,
without reimbursement, to the administrative jurisdiction of
the Secretary of the Air Force a parcel of real property with
improvements at Cape San Blas, Gulf County, Florida, previously
withdrawn for use as the location of a lighthouse. The
Secretary of the Air Force would incorporate the property as
part of Eglin Air Force Base, Florida.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Land conveyance, March Air Force Base, California (sec. 2862)
 The House bill contained a provision (sec. 2863) that
would authorize the Secretary of the Air Force to convey a
parcel of real property at March Air Force Base, California, to
Air Force Village West, Incorporated, of Riverside, California.
As consideration for the parcel to be conveyed, the Corporation
shall pay to the United States an amount equal to the fair
market value of the real property, as determined by the
Secretary. The section would also make technical modifications
to section 835 of the Military Construction Authorization Act,
1985 (Public Law 98-407).
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment.
Land conveyance, Hancock Field, Syracuse, New York (sec. 2864)
 The Senate amendment contained a provision (sec. 2821)
that would authorize the conveyance, without consideration, of
approximately 15 acres of excess real property located at
Hancock Field, Syracuse, New York. The provision would include
a reversionary clause in the event the property is not used for
economic redevelopment.
 The House bill contained no similar provision.
 The House recedes with a technical amendment.
Land conveyance, Havre Air Force Station, Montana, and Havre Training
 Site, Montana (sec. 2865)
 The Senate amendment contained a provision (sec. 2822)
that would authorize the Secretary of the Air Force to convey,
without consideration, two parcels of real property in the
amount of 94 acres comprising the former Havre Air Force
Station and the former Havre Training Site, Montana. The
purpose of the conveyance would be for housing and economic
development.
 The House bill contained no similar provision.
 The House recedes.
Land conveyance, Charleston Family Housing Complex, Bangor, Maine (sec.
 2866)
 The Senate amendment contained a provision (sec. 2817)
that would authorize the Secretary of the Air Force to convey,
without consideration, to the City of Bangor, Maine, a parcel
of real property consisting of approximately 19 acres and
improvements located in Bangor, Maine and known as the
Charleston Family Housing Complex. The purpose of the
conveyance would be for economic development. The provision
would require the city to reimburse the United States in the
event the property is sold within 10 years. The reimbursement
would be equal to the lesser of the amount of the sale of the
property sold, or, the fair market value of the property sold
excluding the value of any improvements made by the city.
 The House bill contained no similar provision.
 The House recedes.
Study of land exchange options, Shaw Air Force Base, South Carolina
 (sec. 2867)
 The House bill contained a provision (sec. 2862) that
would amend section 2874 of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of Public
Law 104-106) to require the Secretary of the Air Force to
conduct a study to identify real property suitable for exchange
to affect the land exchange at Shaw Air Force Base, South
Carolina, authorized pursuant to that law.
 The Senate amendment contained no similar provision.
 The Senate recedes.

 Subtitle E--Other Matters

Repeal of requirement to operate Naval Academy Dairy Farm (sec. 2871)
 The House bill contained a provision (sec. 2881) that
would repeal section 810 of the Military Construction
Authorization Act of 1968 (Public Law 90-110), which prohibits
the Department of the Navy from taking any action to close,
dispose, or phase out the operation of the Naval Academy Dairy
Farm.
 The Senate amendment contained a similar provision (sec.
1066).
 The Senate recedes with a clarifying amendment.
Long-term lease of property, Naples, Italy (sec. 2872)
 The House bill contained a provision (sec. 2882) that
wouldpermit the Secretary of the Navy to enter into a long-term
lease, not to exceed twenty years, for structures and real property
relating to a regional hospital complex in Naples, Italy, that the
Secretary determines to be necessary for purposes of the Naples
Improvements Initiative.
 The Senate amendment contained a similar provision (sec.
2814).
 The Senate recedes.
Designation of military family housing at Lackland Air Force Base,
 Texas, in honor of Frank Tejeda, a former Member of the House
 of Representatives (sec. 2873)
 The House bill contained a provision (sec. 2883) that
would authorize the Secretary of the Air Force to designate
military family housing developments to be constructed at
Lackland Air Force Base, Texas, in honor of the late Frank
Tejeda, a Representative in Congress from the State of Texas.
 The Senate amendment contained no similar provision.
 The Senate recedes with a technical amendment.
Fiber-optics based telecommunications linkage of military installations
 (sec. 2874)
 The House bill contained a provision (sec. 1502) that
would require the Department of Defense to install a fiber-
optics based telecommunications network to link the military
installations in a metropolitan area.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would provide
sufficient time for the competition of such a contract and
would allow the Department to tailor the network to its
requirements. The conferees note that the Secretary could build
on and expand ongoing Department of the Navy initiatives to
meet these requirements. The conferees also encourage the
Secretary to have a signed contract to implement this provision
by December 1, 1998.

 Legislative Provisions Not Adopted

Modification of authority for disposal of certain real property, Fort
 Belvoir, Virginia
 The Senate amendment contained a provision (sec. 2811)
that would repeal section 2821 of the Military Construction Act
for Fiscal Years 1990 and 1991, as amended by section 2854 of
the Military Construction Authorization Act for Fiscal Year
1996. These provisions would have authorized the conveyance of
the parcel of real property, including improvements thereon, at
Fort Belvoir, Virginia, consisting of approximately 820 acres
known as the Engineer Proving Ground.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees direct the Secretary of the Army to provide
to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives
a report on the status of the conveyance and redevelopment of
the Engineer Proving Ground. The report shall be coordinated
with the appropriate officials in Fairfax County and shall be
submitted six months after enactment of this Act and annually
thereafter until the redevelopment is completed.

 Title XXIX--Sikes Act Improvement

Sikes Act Improvement (secs. 2901-2914)
 The House bill contained several provisions (secs. 2901-
2914) that would amend and reauthorize the Sikes Act, which was
last amended in 1986, and had an authorization that expired in
1993. In its current form, the Sikes Act authorizes the
Secretary of Defense to enter into cooperative plans with the
Secretary of Interior and the appropriate State fish and
wildlife agencies. The House provisions would require the
secretary of each military department to develop a more
comprehensive integrated natural resources plan for each
military installation. Each plan must be consistent with the
use of military lands to ensure military preparedness, and
cannot result in any net loss in the capability to support the
military mission.
 The Senate amendment (secs. 381-392) and the House bill
(secs. 2901-2914) contained similar provisions. However, the
Senate amendment (sec. 383) would require the completion of
integrated natural resources management plans three years after
the date of the initial report to Congress, rather than the two
years provided for in the House bill (sec. 2905). There is also
a difference between the House bill (sec. 2911) and the Senate
amendment (sec. 386) reference to the funds underlying
cooperative agreements. The House bill provides for the use of
``funds appropriated'' and the Senate amendment provides for
the use of ``funds made available'' for the cost of goods and
services covered under cooperative agreements.
 The House recedes with an amendment that would require
the completion of integrated natural resources management plans
three years following the submission of the initial report to
Congress. The provision would specify that goods and services
provided under a cooperative agreement would be paid for with
``funds appropriated.'' The provision would also include minor
legislative drafting modifications.
 The conferees note that the reauthorization of the Sikes
Act would directly affect the nearly 25 million acres managed
by the Department of Defense. The conferees agree that
reauthorization of the Sikes Act is not intended to expand the
management authority of the U.S. Fish and Wildlife Service or
the State fish and wildlife agencies in relation to military
lands. Moreover, it is expected that integrated natural
resources management plans shall be prepared to facilitate
installation commanders' conservation and rehabilitation
efforts that support the use of military lands for readiness
and training of the armed forces.
 The conferees note that the military departments will
have completed approximately 60 percent of the required
integrated natural resources management plans by October 1,
1997. The conferees understand that most of these plans have
been prepared consistent with the criteria established under
this provision. In addition, the conferees note the significant
investment made by the military departments in the completion
of current integrated natural resources management plans. The
conferees intend that the plans that meet the criteria
established under this provision should not be subject to
renegotiation and reaccomplishment.
 Finally, the conferees understand that approximately $5.0
million is programmed for the preparation of integrated natural
resources management plans on an annual basis. The conferees
have been assured by the Department of Defense that the
reauthorization of the Sikes Act will not result in increased
funds for the plans. Based on the Department's assurances as to
the programmed funding level, the conferees expect that each of
the military departments will have sufficient funds in fiscal
year 1998 and subsequent fiscal years to complete plans by the
statutory deadline.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
 OTHER AUTHORIZATIONS

 Title XXXI--Department of Energy National Security Programs

Overview
 The budget request for fiscal year 1998 contained an
authorization of $13,597.6 million for the Defense Nuclear
Activities. The House bill would authorize $10,951.9 million.
The Senate amendment would authorize $11,204.4 million. The
conferees recommended an authorization of $11,502.8 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

 Legislative Provisions Adopted

 Subtitle A--National Security Programs Authorizations

Weapons activities (sec. 3101)

 The House bill contained a provision (sec. 3101) that
would authorize $4.0 billion for the Department of Energy (DOE)
weapons activities.
 The Senate amendment contained a similar provision (sec.
3101) that would authorize $4.0 billion for DOE weapons
activities.
 The Senate recedes with an amendment that would authorize
$4.1 billion for this account for the following activities:
$1.9 billion for stockpile stewardship; $2.0 billion for
stockpile management; and $250.0 million for program direction.
The authorization includes a general reduction of $22.6
million. The conferees recommend a reduction of $53.5 million
to the budget request for program direction. The conferees note
that recent independent assessments from the Institute for
Defense Analysis and the General Accounting Office have
identified a number of recommendations regarding how best to
streamline the management structure within the Office of
Defense Programs. The conferees believe that implementing such
recommendations would reduce management costs and increase the
effectiveness of the Department's weapons programs.
 The budget request included $15.7 million for the
incremental component of the construction upgrades at the
Chemistry and Metallurgy Research Facility at Los Alamos
National Laboratory. Because of cost overruns and pending the
outcome of the Department's ongoing review into this project,
the conferees recommend $5.0 million for this activity. The
conferees adopt this position, without prejudice.
 The conferees recommend $217.0 million, the amount
requested, for the inertial confinement fusion operating
program. Within the total amount authorized for this activity,
the conferees recommend that $26.1 million be made available
for the University of Rochester's Laboratory for Laser
Energetics, an increase of $2.5 million.
 The conferees recommend an additional $10.0 million for a
surety program to improve waste minimization efforts related to
the Department's stockpile management program and an additional
$8.0 million to continue tritium facility upgrades initiated in
fiscal year 1997 at the Savannah River Site.
 The conferees recommend $65.3 million for technology
transfer and education. Of this amount, the conferees recommend
that $10.0 million be made available for the American Textiles
Partnership program.

Environmental restoration and waste management (sec. 3102)

 The House bill contained a provision (sec. 3102) that
would authorize $5.3 billion for Department of Energy (DOE)
environmental restoration and waste management activities.
 The Senate amendment contained a similar provision (sec.
3102) that would authorize $5.1 billion for DOE environmental
restoration and waste management activities. The Senate
amendment authorized $274.7 million for Defense Environmental
Management Privatization projects in a separate provision.
 The Senate recedes with an amendment that would authorize
$5.5 billion for Environmental Management activities,
including: $1.0 billion for environmental restoration; $1.6
billion for waste management; $220.0 million for technology
development; $1.3 billion for nuclear material and facility
stabilization; $20.0 million for policy and management; $55.0
million for the Environmental Management science program;
$875.0 million for closure projects; $345.8 million for program
direction; and $224.7 million for defense Environmental
Management privatization. The authorization includes a general
reduction of $50.0 million.
 The conferees recommend an additional $10.0 million for
environmental restoration. Of this increase, the conferees
recommend an additional $5.0 million to accelerate closure of
the Hanford 100 Area in Richland, Washington.
 The conferees recommend an additional $35.3 million for
waste management. Of the funds available for waste management,
the conferees recommend an additional $12.0 million for the
Savannah River site to increase production at the Defense Waste
Processing Facility (DWPF) and $8.2 million to support high-
level waste research and development work at the Idaho National
Engineering and Environmental Laboratory. The conferees direct
the Department to make available an additional $25.0 million to
allow the consolidated incineration facility to operate at full
capacity, as originally intended, to assure that the DWPF
operates at its designed capacity, and that the site has
sufficient funds to accelerate the disposal of transuranic
waste.
 The conferees urge the Department to assess the cost
savings that may be available if it is able to develop a
successful spent fuel or high level waste storage cask system
using high density concrete. Of the waste management funds
authorized in section 3102 of this title, no more than $3.0
million may be made available for this demonstration project.
 The conferees recommend an increase of $58.0 million to
nuclear material and facility stabilization to be allocated as
follows: $47.0 million for nuclear material stabilization
operations at the F- and H-canyon facilities and $11.0 million
for the National Spent Fuel Program.
 The conferees recommend $220.0 million for technology
development, a $37.9 million reduction. This reduction reflects
the Department's proposed reduction to the Technology
Deployment Initiative and greater cost-sharing with technology
user organizations within the Department. The conferees are
supportive of the Office of Science and Technology's efforts to
move technologies from the late stages of research and
development into use. The conferees believe that Environmental
Management line organizations should place a greater emphasis
on innovative technical approaches when executing records of
decision, meeting tri-party agreement milestones, or selecting
clean up and waste management approaches. The Department has a
poor record in deploying DOE-developed cleanup and waste
management technologies. The conferees believe that senior
management attention will be required if the Department is to
benefit from thosetechnologies that have already been developed
by the Department, but have not been applied at DOE facilities.
 The conferees recommend $55.0 million for the
Environmental Management science program, an increase of $5.0
million.
 The conferees recommend $20.0 million for the Office of
Policy, a $3.1 million reduction.
 The conferees recommend $345.8 million for program
direction, a $42.5 million reduction.
 The conferees recommend $875.0 million for the project
closure account, an increase of $860.0 million. The increase to
this account has been derived from the following sources: a
transfer of $743.6 million from environmental restoration, a
transfer of $45.2 million from the operations and maintenance
account within the stockpile management program, and an
additional $71.2 million. The conferees recommend allocating
closure project account funds as follows: $648.4 million for
the Rocky Flats Environmental Technology Site and $226.6
million for the Fernald Environmental Management Project. The
conferees strongly support the efforts of the adjacent
communities to close these two sites within the next ten years.
 The transfer of $45.2 million from stockpile management
represents the costs associated with the provision of security
at the Rocky Flats Site and the Fernald Site. The conferees are
aware that this transfer of funds will also require the Office
of Environmental Management to accept custodial responsibility
of weapons grade special nuclear material, which constitutes a
change in current practice.
Other defense activities (sec. 3103)
 The budget request included $1.606 billion for Other
Defense Activities of the Department of Energy (DOE) for fiscal
year 1998.
 The House bill contained a provision (sec. 3103) that
would authorize $1.5 billion for Other Defense Activities, a
reduction of $93.4 million to the budget request.
 The Senate amendment contained a provision (sec. 3103)
that would authorize $1.6 billion for Other Defense Activities,
an increase of $28.0 million to the budget request.
 The conferees agree to a provision that would authorize
$1.636 billion for Other Defense Activities.
Verification and control technology
 The conferees agree to authorize $478.2 million for
verification and control technology.
 The conferees are concerned by recent reports that a
substantial portion of the aid intended for Russian scientists
under the Initiatives for Proliferation Prevention (IPP)
program is being siphoned off by duties, regional taxes,
overhead charges and other assessments by Russian entities. The
conferees direct the Secretary of Energy to report to the
Congress by March 31, 1998 on the impact of these charges on
the program and to provide detailed recommendations on how
these problems can be corrected.
 To close gaps identified in DOE's nuclear smuggling
program, the conferees agree to provide $16.0 million for
nuclear smuggling activities, a $3.0 million increase, from
funds available in verification and control technology, to
enhance further and accelerate the Department's nuclear
forensic analytical capability. The conferees have been
supportive of efforts by the Department of Defense (DOD) and
DOE to respond to any domestic terrorist use of weapons of mass
destruction. From the funds authorized for verification and
control technology, $2.0 million is available for training and
related activities to prepare federal, state, and local first
responders to work effectively as part of the domestic
emergency response program. The conferees understand that
nuclear training curriculum for local first responders has been
prepared by the DOE defense programs, and that this program is
coordinated with the DOD, the agency responsible for preparing
the chemical and biological training and exercise programs. In
order to maximize the number of participants in the exercises,
and to take advantage of cost savings, the conferees recommend
that DOE continue to coordinate the activities of its exercises
with the executive agent and program manager for the DOD
domestic emergency preparedness program in order to integrate
mixed scenarios of chemical, biological and nuclear incidents
in the exercises.
 The Secretary of Energy was directed in the statement of
managers accompanying the conference report for the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 102-
201) to provide an annual evaluation to the Congress of the
expected powers and expected limits that define the extent to
which science and technology can aid the nonproliferation
effort. The conferees direct the Secretary to submit the first
annual report on February 1, 1998. The conferees continue to
believe that advances in science and technology will improve
the ability to detect the presence, transportation, and use of
weapons of mass destruction. The ability of such advanced
technologies to be developed and used may, however, be impeded
or otherwise affected by regional powers and interests. The
evaluation to be conducted should include an analysis of
regional and local situations, requirements, and power
structures that can either aid or deter deployment of new
technology for nonproliferation efforts.
International nuclear safety
 The conferees agree to provide $47.0 million for nuclear
energy, including $35.0 million for international nuclear
safety activities.
 The conferees were recently notified that the DOE fiscal
year 1999 funding for these activities will not be included in
DOE national security programs. The conferees appreciate the
administration's intent to comply with congressional guidance
and to seek funding for these activities from sources other
than the defense accounts.
Naval reactors
 The conferees recommend an increase of $44.5 million to
the budget request for naval reactors to expedite
decommissioning and decontamination activities at surplus
training facilities.
 The conferees consider the naval reactors program to be a
critical defense activity. The conferees are concerned that the
DOEhas demonstrated a pattern of consistently underestimating
funding requirements for this program in budget requests. The conferees
strongly encourage the Department to request adequate funding for this
program in future fiscal year budget requests to allow this program to
accomplish the stated objectives in an efficient manner.
Declassification productivity initiative
 The conferees continue to support the Declassification
Productivity Initiative. The conferees are concerned that the
Department of Energy lacks both the appropriate technical
personnel and integrating components required to carry out
successfully this program. Recognizing the complexities
surrounding the development of a computer-aided system to
improve the efficiency and security of the declassification
process, the conferees are concerned that the limited funds
provided to this program are being allocated among numerous
laboratories, universities, and industry without clear
technical direction or coordination by the Department. The
conferees direct the Director of the Office of Declassification
to begin to develop a management and integration strategy to
coordinate and streamline the various initiatives carried out
within the Declassification Productivity Initiative. In
addition, the conferees strongly discourage any shifting of
funds from the Declassification Productivity Initiative to
other declassification activities.
Environment, safety and health
 The conferees recommend $94.0 million for environment,
safety and health (ES&H) activities, an increase of $40.0
million to the budget request. Of the amount authorized, the
conferees recommend $20.0 million for ES&H program direction.
The conferees believe that costs associated with implementing
and conducting oversight of the ES&H program should be
reflected in the same programmatic activity.
Independent cost assessment
 The conferees recommend $15.0 million to be used by the
Department of Energy to provide for external reviews of the
Department's individual construction and privatization
projects. The conferees direct the Secretary of Energy to
provide the congressional defense committees with all reports
generated in the process of conducting this assessment, and to
consult with the committees regarding all aspects of this
review, including contractor selection.

 Subtitle B--Recurring General Provisions

Limits on general plant projects (sec. 3122)
 The House bill contained a provision (sec. 3122) that
would authorize the Secretary of Energy to carry out any
construction project authorized under general plant projects if
the total estimated cost would not exceed $2.0 million. The
provision would require the Secretary to submit a report to
Congress if the cost of the project is revised to exceed $2.0
million. The report would fully explain the reasons for the
cost variation.
 The Senate amendment contained a similar provision (sec.
3122) that would authorize a construction project as a general
plant project if the current estimated cost for that project
would exceed $5.0 million. If the Secretary of Energy
determines that the estimated cost of any project will exceed
$5.0 million, the congressional defense committees must be
notified of the reasons for the cost variation.
 The House recedes.
 The conferees note that the report required by section
3122 of the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104-201) to support increasing the threshold
for general plant projects was submitted late. The conferees
urge the Department to submit reports on or before the required
due dates in the future.
Fund transfer authority (sec. 3124)
 The House bill contained a provision (sec. 3124) that
would permit funds authorized by the bill to be transferred to
other agencies of the government for performance of work for
which the funds were authorized and appropriated. The provision
would permit the merger of such funds with the authorizations
of the agency to which they are transferred. This provision
would also limit, to no more than five percent, the amount of
such funds that may be transferred between authorization
accounts in the Department of Energy that were authorized
pursuant to this act.
 The Senate amendment contained a similar provision (sec.
3124).
 The Senate recedes with a clarifying amendment.
Authority for conceptual and construction design (sec. 3125)
 The House bill contained a provision (sec. 3125) that
would limit the Secretary of Energy's authority to request
construction funding until the Secretary certifies that a
conceptual design has been completed, except in the case of
emergencies. This limitation would apply to construction
projects with a total estimated cost in excess of $2.0 million.
If the estimated cost of the design exceeds $3.0 million, the
provision would require the Secretary to request funds for the
design before requesting funds for the construction project.
The provision would also require the Secretary to submit to
Congress a report on each conceptual design completed under
this paragraph.
 The Senate amendment contained a similar provision (sec.
3125) that would apply to construction projects with a total
estimated cost in excess of $5.0 million.
 The Senate recedes with an amendment that would limit the
Secretary's authority to request construction funding for
projects with an estimated cost in excess of $5.0 million until
the Secretary has certified a conceptual design has been
completed, except in emergencies.
Availability of funds (sec. 3128)
 The Senate amendment contained a provision (sec. 3128)
that would authorize amounts appropriated for operating
expenses or for plant and capital equipment to remain available
until expended.
 The House bill contained no similar provision.
 The House recedes with an amendment that would direct
that funds authorized to be appropriated for program direction
activities in fiscal year 1998 would be available to be
expended until the end of fiscal year 2000.
Transfers of defense environmental management funds (sec. 3129)
 The House bill contained a provision (sec. 3128) that
would provide the manager of each field office of the
Department of Energy (DOE) with the limited authority to
transfer fiscal year 1998 defense environmental management
funds from one program or project under the jurisdiction of the
office to another such program or project, once in the fiscal
year.
 The Senate amendment contained a similar provision (sec.
3137) that would extend and make permanent the limited
authority to transfer defense environmental management funds
originally authorized in section 3139 of the National Defense
Authorization Act for Fiscal Year 1997.
 The Senate recedes with a clarifying amendment.

 Subtitle C--Program Authorizations, Restrictions, and Limitations

Memorandum of understanding for use of national laboratories for
 Ballistic Missile Defenses programs (sec. 3131)
 The House bill contained a provision (sec. 3131) that
would establish a program within the Department of Energy
weapons laboratories for the purpose of assisting the
Department of Defense in the testing and development of a
ballistic missile defense program.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would direct
the Secretary of Energy and the Secretary of Defense to enter
into a memorandum of understanding as to how the Department of
Energy national laboratories could be utilized more fully to
support the ballistic missile defense program.
Defense environmental management privatization projects (sec. 3132)
 The Senate amendment contained a provision (sec. 3131)
that would establish criteria for the initiation of Department
of Energy Defense Environmental Management Privatization
contracts.
 The provision would prohibit the Department from
incurring any contractual obligations for a privatization
contract until 30 days after the date on which the Department
submits to the congressional defense committees a report on
that privatization project that describes the Department's
anticipated contractual commitments for such project, the cost
of the proposed project versus the baseline cost, any
assumptions underlying cost savings estimates, and a discussion
of the Department's plans to maintain financial and
programmatic accountability under such contracts.
 The provision would direct the Department to report on
the Secretary's ability to enter into privatization contracts
in the absence of sufficient appropriations to meet obligations
under such contracts.
 The House bill contained a provision (sec. 3145) that
would place similar restrictions on the tank waste remediation
system project.
 The House recedes with an amendment that would provide
the Secretary discretionary authority to use a privatization
contract to carry out a project for which funds are authorized
pursuant to section 3102 of this Act. The provision would also
require the Department of Energy to provide a detailed
justification and analysis of the comparative costs to the
United States of constructing two nuclear waste vitrification
plants under the tank waste remediation system project, should
the Secretary of Energy choose to do so.
 The conferees direct the Secretary of Energy to examine
and report to the congressional defense committees on the
Department's authority to create an escrow account to offset
any reasonably foreseeable costs to the government that may
arise if any privatization contracts are canceled or terminated
for the convenience of the government. The report should also
recommend any legislation needed to eliminate any potential
conflicts arising from the anti-deficiency provisions found in
section 3191 of title 31, United States Code.
International cooperative stockpile stewardship programs (sec. 3133)
 The Senate amendment contained a provision (sec. 3132)
that would prohibit the Department of Energy (DOE) from
pursuing cooperative stockpile stewardship and management
activities with certain nations.
 The House bill contained no similar provision.
 The House recedes.
 The conferees remain concerned that initiation of an
ongoing international cooperative stockpile stewardship and
management program could have unintended detrimental effects on
U.S. national security interests. This provision would extend
for one year the prohibition established by section 3138 of the
National Defense Authorization Act for Fiscal Year 1997. The
intent of this provision is to prohibit establishment of a
permanent program of international cooperative stockpile
stewardship, with an exception for activities that might be
undertaken with the United Kingdom and France. The provision
would not apply to activities carried out by DOE under
cooperative threat reduction programs with nations of the
former Soviet Union, or to the Department of Energy materials
protection, control, and accounting or the initiatives for
proliferation prevention programs. The prohibition would apply
to all other DOE activities, including but not limited to
laboratory directed research and development funds.
 The conferees do not intend this prohibition to prevent
the President's ability to respond to developments which might
threaten the national security of the United States. The
conferees believe that the President has sufficient flexibility
to address such specificincidents should they arise and the
provision would not prohibit such action.
Modernization of enduring nuclear weapons complex (sec. 3134)
 The House bill contained a provision (sec. 3101) that
would provide an increase of $85.0 million for the Department
of Energy's (DOE) stockpile management program to be used for
weapons production plants infrastructure upgrades and the
Stockpile Life Extension, Enhanced Surveillance, and Advanced
Development Programs carried out at DOE production plants.
 The Senate amendment contained a provision (sec. 3133)
that would provide an additional $15.0 million to support
modernization efforts being carried out at the Department of
Energy's four nuclear weapons production plants (Pantex, Kansas
City, Y-12, and Savannah River). The provision would require
the Department to submit, not later than 30 days after
enactment of this provision, a report describing the
Department's plans to allocate the funds authorized by this
section and the relevance of each allocation to implementing
the decisions in the Final Programmatic Environmental Impact
Statement for Stockpile Stewardship and Management. The funds
authorized for this activity could not be obligated until 30
days after the congressional defense committees receive the
Department's proposed allocation report as required by this
provision.
 The House recedes with an amendment that would increase
funding for the stockpile management account to provide an
additional $85.0 million for these activities.
 The conferees direct that the funds be allocated as
follows: $25.0 million for the Pantex Plant for basic
infrastructure needs including roof repair, electric power
service upgrades, steam and condensate piping upgrades, fire
enunciation systems, and Enhanced Surveillance Program
activities; $25.0 million for the Kansas City Plant for basic
infrastructure needs including roof repair, installation of
advanced manufacturing equipment, and Advanced Manufacturing
Program activities; and $35.0 million for the Y-12 plant for
basic infrastructure needs, W-87 work load requirements,
Advanced Manufacturing Program activities, and Stockpile Life
Extension Program activities. Of the amounts made available by
this provision, not more than five percent shall be allocated
collectively to management overhead, program direction, and
technical budgetary, accounting, and other analytical support
to the DOE. The remainder shall be expended by the four
production plants exclusively for the programs described.
 The conferees concur with the Department's goal to
implement advanced manufacturing technology at DOE plants and
laboratories to improve production efficiencies and maintain
core competencies within the DOE nuclear weapons production
complex. The conferees understand that such modernization
upgrades will require coordination among the four production
plants and the three design laboratories.
 The conferees remain concerned with the Department's
plans to maintain the capability and capacity to refurbish and,
when necessary, remanufacture nuclear weapons components in the
Nation's nuclear weapons stockpile. The committee is concerned
that the Department may be overly relying on new, ``science-
based'' stockpile stewardship and management approaches at the
risk of losing manufacturing capabilities and expertise.
 The conferees are deeply troubled that the Department has
failed to meet fully the intent of section 3137 of the National
Defense Authorization Act for Fiscal Year 1996 and section 3132
of the National Defense Authorization Act for Fiscal Year 1997
calling for modernization of the four nuclear weapons
production plants.
 The conferees believe that the Department did not fully
meet the requirements or intent of these sections and related
guidance provided in conference reports accompanying these Acts
and the 1996 and 1997 Energy and Water Development
Appropriations Acts. The conferees note that the General
Accounting Office has identified certain Nuclear Weapons
Stockpile Memorandum requirements that may not be met by the
Department due to insufficient resources being allocated to the
four traditional production plants. The conferees believe that
the manufacturing facilities must be modernized as directed in
the National Defense Authorization Act for Fiscal Year 1996 and
the National Defense Authorization Act for Fiscal Year 1997, or
these problems will continue.
Tritium production (sec. 3135)
 The Senate amendment contained a provision (sec. 3134)
that would make available $262.0 million for the Department of
Energy (DOE) tritium production program. The provision would
require DOE to select a tritium production technology not later
than June 30, 1998. The provision would also prohibit the
Department from obligating funds appropriated or otherwise made
available pursuant to this Act for exploration of any tritium
production technology option, other than those being examined
under the Department's ``dual track'' approach, until July 30,
1998, or 30 days after such time that the Department selects a
preferred technology option, whichever comes later. The
provision would also require the Secretary of Energy to submit
a report describing for each technology option any regulatory
barriers, licensing difficulties, potential for production rate
variability, scientific benefits, revenue generation and other
ancillary benefits.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the Department of Energy to select a tritium production
technology not later than December 31, 1998.
 The conferees continue to believe that the Department can
move faster to select a preferred technology option and acquire
a permanent new tritium production source capable of meeting
the requirements of the Nuclear Weapons Stockpile Memorandum,
which identifies a new tritium production date in the year 2005
in the case a reactor option is selected and 2007 if an
accelerator option is selected. While the conferees recognize
that future tritium requirements could change if the United
States enters into treaties that reduce the numbers of
strategic and tactical nuclear weapons, the production capacity
that the United States will need to maintain at START I and
START II levels will remain essentially constant.
Processing, treatment, and disposition of spent nuclear fuel rods and
 other legacy nuclear materials at the Savannah River Site (sec.
 3136)
 The Senate amendment contained a provision (sec. 3135)
that would make available an additional $47.0 million above the
budget request for the F-canyon and H-canyon facilities to
accelerate the stabilization of legacy materials at the
Savannah River Site. The provision would further require that
the Secretary of Energy maintain a high state of readiness of
the F-canyon and H-canyon facilities.
 The House bill contained no similar provision.
 The House recedes.
 The conferees note that the House bill recommended $41.0
million for similar activities.
Limitations on use of funds for laboratory directed research and
 development purposes (sec. 3137)
 The Senate amendment contained a provision (sec. 3136)
that would modify section 3136 of the National Defense
Authorization Act for Fiscal Year 1997 by requiring the annual
report on uses of Laboratory Directed Research and Development
(LDRD) funds be provided to the congressional defense
committees not later than February 1 of each year. The
provision would also prohibit the Department of Energy (DOE)
from obligating more than 30 percent of the funds appropriated
or otherwise made available to the DOE in fiscal year 1998 for
LDRD programs until the Department submits the annual report
for fiscal year 1997.
 The provision would limit the use of funds appropriated
or otherwise made available to the DOE under section 3101 of
this Act to LDRD and technology transfer activities that
support the weapons activities of the Department. The provision
would similarly limit use of funds appropriated or otherwise
made available to the DOE under section 3102 of this Act to
those activities that support the environmental restoration,
waste management, or materials stabilization activities of the
Department.
 The provision would require the Department to include in
the fiscal year 1998 annual report an assessment of the funding
required to carry out an effective LDRD program, including any
recommendations for the percentage of funds that should be
provided to the National Laboratories for LDRD activities by
the Federal Government.
 The House bill contained no similar provision.
 The House recedes.
 The conferees recognize that programs such as LDRD are
essential to maintaining the core competencies of the National
Laboratories. The conferees will assess the Department's
recommendations regarding the appropriate percentage of funds
to be provided to this program in conjunction with any existing
or future restrictions that might be considered for this
program.
Pilot program relating to use of proceeds of disposal or utilization of
 certain Department of Energy assets (sec. 3138)
 The Senate amendment contained a provision (sec. 3140)
that wouldpermit the Secretary of Energy to establish a pilot
program to promote the sale of certain real and personal property
surplus to the needs of the Federal government and allow the Department
of Energy (DOE) to retain in the DOE defense Environmental Restoration
and Waste Management accounts 50 percent of the net proceeds from such
sales. The retained funds would be available for use, subject to
appropriation acts, in the Environmental Restoration and Waste
Management programs. The provision would authorize the Department to
initiate six asset disposition pilots and would permit the Department
to deduct costs associated with preparing the asset for sale prior to
calculating the net proceeds from the sale.
 The House bill contained no similar provision.
 The House recedes with an amendment that would make clear
that all net proceeds from sales under the pilot program would
not be retained by the Department of Energy, but instead would
be returned to the Treasury as miscellaneous receipts.
Modification and extension of authority relating to appointment of
 certain scientific, engineering, and technical personnel (sec.
 3139)
 The House bill contained a provision (sec. 3144) that
would extend through fiscal year 1999 the authority of the
Secretary of Energy to appoint certain scientific, engineering,
and technical personnel to positions within the Department
without regard to the provisions governing the appointments in
the competitive service, and General Schedule classification
schedules and pay rates contained in title 5, United States
Code.
 The Senate amendment contained a similar provision (sec.
3152) that would also repeal the requirement for the
Administrator of the Environmental Protection Agency to submit
a report to Congress on the effects of this hiring authority on
the cleanup carried out at sites listed on the National
Priorities List (also known as ``Superfund'' sites).
 The House recedes.
Limitation on use of funds for subcritical nuclear weapons tests (sec.
 3140)
 The House bill contained a provision (sec. 3146) that
would require the submission of a detailed report on the manner
in which funds available to the Secretary of Energy for fiscal
years 1996 and 1997 to conduct subcritical experiments were
used. The provision would prohibit the Secretary from using any
funds authorized in fiscal year 1998 to conduct subcritical
experiments until 30 days after receipt of such report.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would allow the
Secretary to conduct subcritical experiments prior to submittal
of the report, if the Secretary determines that it is in the
national security interests of the United States to do so.
While the conferees strongly support these tests, they are
concerned that over $100.0 million has apparently been spent
with only two tests completed.
Limitation on use of certain funds until future use plans are submitted
 (sec. 3141)
 The House bill contained a provision (sec. 3147) that
would limit the ability of the Secretary of Energy to spend
funds authorized for the Office of Policy and Management within
the defense environmental management program until the draft
future use plans and the final future use plans required under
section 3153(f) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201) are submitted.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would allow the
Secretary to identify an alternative date for individual site
plans if the Secretary finds that a site cannot meet the
current due date of March 15, 1998 for submittal of its final
future use plan.

 Subtitle D--Other Matters

Plan for stewardship, management, and certification of warheads in the
 nuclear weapons stockpile (sec. 3151)
 The House bill contained a provision (sec. 3141) that
would require the Secretary of Energy to report annually on the
Department of Energy (DOE) plan for the Stockpile Stewardship
and Management Program. The report would describe the status
and condition of the U.S. nuclear weapons stockpile, based on
the requirements set forth in the Nuclear Weapons Stockpile
Memorandum. This report would be submitted in both a classified
and unclassified form and would be provided in lieu of a number
of other reporting requirements which have been superseded and
would be repealed by this section.
 The Senate amendment contained a similar provision (sec.
3153).
 The Senate recedes with an amendment that would
consolidate the repeal of obsolete reporting requirements in a
separate section in Title XXXI of this Act.
Repeal of obsolete reporting requirements (sec. 3152)
 The House bill contained a provision (sec. 3142) that
would repeal a number of obsolete reporting requirements.
 The Senate amendment contained a similar provision (sec.
3155).
 The House recedes.
Study and funding relating to implementation of workforce restructuring
 plans (sec. 3153)
 The House bill contained a provision (sec. 3143) that
would modify and repeal selected provisions of section 3161 of
the National Defense Authorization Act for Fiscal Year 1993
(Public Law 102-484). The provision would eliminate the
authority of the Department of Energy (DOE) to make assistance
grants without approval by the Secretary of Commerce and the
Secretary of Labor, as appropriate; reduce from 120 days, to 90
days the applicable notice periods provided to employees to be
separated; allow DOE to fund the programfrom available
unobligated balances; and require a study by an outside auditor to
assess the costs and benefits provided by this program since its
inception.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would change
the date of the required report from January 1, 1998 to March
31, 1998; restore the direction in current law for a 120-day
waiting period prior to implementation of a separation plan;
modify the requirement for the Secretaries of Commerce and
Labor to approve grants; and eliminate the use of uncosted
balances to offset the fiscal year 1998 budget for worker
transition activities.
 The conferees note that the direction found in section
3161 of the National Defense Authorization Act for Fiscal Year
1993 (Public Law 102-484) to give contract employees at DOE
sites a 120-day waiting period prior to separations of large
numbers of employees is a target only. The conferees further
note current law mandates only a 60-day waiting period prior to
large separations. The conferees encourage the Secretary of
Energy and the Secretary of Defense to identify and seek to
make available to the auditing firm conducting the study any
relevant documents in the possession of other federal agencies.
In encouraging access to all relevant documents, the conferees
do not anticipate any document that could interfere with or
jeopardize any ongoing investigation of the DOE Office of
Inspector General or other federal agencies would be made
available.
Plan for external oversight of national laboratories (sec. 3154)
 The House bill contained a provision (sec. 3148) that
would require the Secretary of Energy to develop a plan for the
external oversight of the national laboratories. The plan would
provide for the establishment of an external oversight
committee comprised of representatives of industry and academia
for the purpose of making recommendations to the Secretary of
Energy and to the congressional defense committees on the
productivity of the laboratories and on the excellence,
relevance, and appropriateness of the research conducted at the
laboratories. The plan also would provide for the establishment
of a competitive peer review process for funding basic research
at the laboratories.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary to prepare a report on existing and potential new
external oversight practices at the national laboratories. The
report would be due not later than July 1, 1999, and would
include any recommendations from the Secretary and a plan to
implement such recommendations.
University-based research collaboration program (sec. 3155)
 The House bill contained a provision (sec. 3149) that
would require the Secretary of Energy to establish a
university-based research center to coordinate the
collaboration among national laboratories, universities and
industry in support of scientific and engineering advancement
in key Department of Energy defense program areas.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Secretary to establish a university-based collaborative
program to coordinate national laboratory, university, and
industry cooperation in support of scientific and engineering
advancement in key Department of Energy defense program areas.
Stockpile stewardship program (sec. 3156)
 The House bill contained a provision (sec. 3150) that
would provide that, as a matter of U.S. policy, the Department
of Energy stockpile stewardship program shall be conducted in
conformity with the Non-Proliferation Treaty and the
Comprehensive Test Ban Treaty, if and when that treaty enters
into force. The provision would also state that it is the
policy of the United States to conduct a stockpile stewardship
and management program to ensure the safety, security,
effectiveness, and reliability of the U.S. nuclear weapons
stockpile, consistent with U.S. national security requirements.
 The Senate amendment contained no similar provision.
 The Senate recedes with a clarifying amendment.
Reports on advanced supercomputer sales to certain foreign nations
 (sec. 3157)
 The House bill contained a provision (sec. 3151) that
would require companies that participate in the Department of
Energy Accelerated Strategic Computing Initiative (ACSI)
program to report to the Secretary of Energy and the Secretary
of Defense, on a quarterly basis, the sale of each computer
that exceeds an operating speed of 2,000 million theoretical
operations per seconds (MTOPs) in which a Tier III country is
the purchaser. The provision would require the Secretary of
Energy to provide an annual report to Congress on the sales of
computers in excess of 2,000 MTOPs by companies participating
in the ACSI program the preceding year.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Transfers of real property at certain Department of Energy facilities
 (sec. 3158)
 The House bill contained a provision (sec. 3152) that
would direct the Secretary of Energy to issue guidelines for
the sale or lease of real or personal property at Department of
Energy (DOE) defense nuclear facilities. The provision would
also provide the Secretary discretionary authority to grant
indemnification for damage to real or personal property from
certain activities by DOE on the land to be transferred.
 The Senate contained no similar provision.
 The Senate recedes with an amendment that would direct
the Secretary to issue regulations governing the sale or
transfer of land at DOE defense nuclear facilities that is
excess to DOE needs. The regulations should address when it is
appropriate for the Department to transfer or lease real
property below fair market value or at fairmarket value. The
DOE should look for guidance from the regulations issued by the
Department of Defense governing transfers at closing military bases.
 Such leases and transfers would take place to enhance
economic redevelopment and reuse activities in the local
communities surrounding DOE defense facilities. As the DOE
downsizes and closes facilities, many of the local communities
in the vicinity of a DOE facility will need assistance to
transition away from a local economy focused largely on DOE
activities, to one based on private sector or other, non-DOE,
federal activities.
 The amendment would also provide discretionary authority
to the Secretary to indemnify transferees of real property at
DOE defense nuclear facilities. This provision would establish
procedures that are similar to authorities provided to the
Secretary of Defense at closing military bases by section 330
of the National Defense Authorization Act for Fiscal Year 1993.
The conferees urge the Secretary to exercise the discretionary
authority provided under this title only when it is deemed
essential for the purposes of facilitating local reuse or
redevelopment.
Requirement to delegate certain authorities to site manager of Hanford
 Reservation (sec. 3159)
 The House bill contained a provision (sec. 3153) that
would modify section 3173(b) of the National Defense
Authorization Act for Fiscal Year 1997 by making delegation of
authority to the manager of the Hanford Reservation in
Richland, Washington, described in that section, mandatory
rather than discretionary.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would limit the
mandatory transfer of authority to a period of one year.
Submittal of biennial waste management reports (sec. 3160)
 The Senate amendment contained a provision (sec. 3154)
that would amend section 3153 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 104-360) by
changing the future date for the next biennial Baseline
Environmental Management Report to 1999, rather than 1997.
 The House bill contained no similar provision.
 The House recedes.
Board on security functions of Department of Energy (sec. 3161)
 The Senate amendment contained a provision (sec. 3156)
that would establish a commission to review the sufficiency of
Department of Energy (DOE) nuclear weapons and materials
safeguards and security programs. This commission would review
threat determinations and assumptions, relevant DOE orders, and
other requirements governing safeguards and security of nuclear
weapons, weapons components, nuclear materials, and sensitive
nuclear weapons information at DOE facilities. The commission
would report its findings and any recommendations to the
Secretary of Energy and congressional defense committees not
later than February 15, 1998.
 The House bill contained no similar provision.
 The House recedes with an amendment that would create a
permanent Department of Energy Safeguards and Security
Oversight Board to review and assess the DOE safeguards and
security program. The Board would be comprised of the DOE
Secretary, Assistant Secretary for Defense Programs, Assistant
Secretary of Environment, Safety and Health, Director of Non-
proliferation and National Security, Director of Field
Management, and five additional members, who are not employees
of the Department of Energy or its contractors, to be appointed
as follows: three by the Secretary of Defense, one by the
Director of Central Intelligence, and one by the Director of
the Federal Bureau of Investigation.
Submittal of annual report on status of security functions at nuclear
 weapons facilities (sec. 3162)
 The Senate amendment contained a provision (sec. 3156)
that would establish a commission to review the sufficiency of
Department of Energy nuclear weapons and materials safeguards
and security programs. The provision would require the
commission to report annually to the Congress on its activities
and findings.
 The House bill contained no similar provision.
 The conferees agree to include a new provision that would
direct the Secretary of Energy to submit to the congressional
defense committees the annual report to the President on the
Status of Safeguards and Security of Domestic Nuclear Weapons
Facilities. For fiscal years 1998 through 2000, the Secretary
would include with the annual report any comments from
individual members of the Department of Energy Safeguards and
Security Oversight Board.
Modification of authority on commission on maintaining United States
 nuclear weapons expertise (sec. 3163)
 The Senate amendment contained a provision (sec. 3157)
that would extend by one year the due date for the report to be
prepared by the Commission on Maintaining United States Nuclear
Weapons Expertise. The provision would amend section 3162 of
the National Defense Authorization Act for Fiscal Year 1997,
which established the Commission. The provision would permit
the Senate Majority Leader to designate a chairman of the
Commission, after consultation with the Speaker of the House of
Representatives, upon appointment of the fifth member of the
Commission. The provision would allow the Commission to begin
its work when a chairman is appointed. The provision would also
extend the due date for the Commission's report from March 15,
1998 to March 15, 1999.
 The House bill contained no similar provision.
 The House recedes with an amendment that would permit the
Majority Leader of the Senate to appoint a chairman after
January 1, 1998.
Land transfer, Bandelier National Monument (sec. 3164)
 The Senate amendment contained a provision (sec. 3158)
that would direct the Secretary of Energy to transfer ownership
of approximately 4.5 acres of land at the Department of
Energy's Los Alamos National Laboratory site in Los Alamos
County, New Mexico, to the Department of the Interior.
 The House bill contained no similar provision.
 The House recedes.
 The Department of the Interior constructed and manages
sewage lagoons on this parcel of land. The transfer would allow
the Department of the Interior to manage the lagoons in a more
efficient manner.
Final settlement of Department of Energy community assistance
 obligations with respect to Los Alamos National Laboratory, New
 Mexico (sec. 3165)
 The Senate amendment contained a provision (sec. 3160)
that would require the Department of Energy (DOE) to identify
and transfer to the County of Los Alamos and the Secretary of
the Interior, in trust for the Pueblo San Ildefonso, those
lands that are part of the Los Alamos National Laboratory that
are surplus to the needs of the Federal government. The
provision establishes time deadlines for DOE to identify and
report to Congress on the recommended parcels of land to be
transferred, to conduct title searches on the parcels, to
complete environmental impact assessments, and to transfer
title or administrative control of the land. The provision
would prohibit the Department from making any further
assistance payments under sections 91 and 94 of the Atomic
Energy Community Act of 1955 to county or city governments in
the vicinity of the Los Alamos National Laboratory.
 The House bill contained no similar provision.
 The House recedes with clarifying amendments.
Sense of Congress regarding the Y-12 Plant in Oak Ridge, Tennessee
 (sec. 3166)
 The Senate amendment contained a provision (sec. 3161)
that would designate the Department of Energy Y-12 plant in Oak
Ridge, Tennessee as the National Prototype Center.
 The House bill contained no similar provision.
 The House recedes with an amendment that would express a
sense of Congress that the Y-12 plant should serve as a
national prototype center.
Support for public education in the vicinity of Los Alamos National
 Laboratory, New Mexico (sec. 3167)
 The Senate amendment contained a provision (sec. 3162)
that would authorize the Department of Energy (DOE) to make a
$5.0 million payment to a not-for-profit education foundation
in the area around the Los Alamos National Laboratory to enrich
educational activities of the local school system. DOE
contributions to this foundation would be used to establish a
fund, the corpus of which would remain in trust and the annual
revenue used to support the local school system.
 The House bill contained no similar provision.
 The House recedes with an amendment that would require
the DOE to report on how such payments would be terminated not
later than September 2002 and how such payments will satisfy
the Department's full obligation to provide education
assistance to the local school system.
 The conferees expect that the Secretary of Energy will
make no more than five total annual payments to this fund for a
total contribution of $25.0 million. The conferees further
expect that upon completion of the final payment, all such DOE
assistance to the local school system will have been provided.
Improvements to Greenville Road, Livermore, California (sec. 3168)
 The Senate amendment contained a provision (sec. 3163)
that would authorize the Department of Energy to pay $3.5
million and $3.8 million in fiscal years 1998 and 1999,
respectively, for improvements to Greenville Road, a road which
abuts the Lawrence Livermore National Laboratory in Livermore,
California.
 The House bill contained no similar provision.
 The House recedes with an amendment that would decrease
the payment authorized to be made in fiscal year 1999 from $3.8
million to $3.3 million, consistent with the Department's
request.
 The conferees agree with the Department's proposal to
collect these funds from indirect charges at the two
laboratories located at the Livermore Site, Lawrence Livermore
National Laboratory and Sandia National Laboratory-Livermore.
These payments will constitute the final contribution from the
Department of Energy to this project.
Report on alternative system for availability of funds (sec. 3169)
 The Senate amendment contained a provision (sec. 3128)
that would authorize amounts appropriated for operating
expenses or for plant and capital equipment to remain available
until expended.
 The House bill contained no similar provision.
 The conferees agree to include a new provision that would
direct the Secretary of Energy to submit to the congressional
defense committees a report setting forth a proposal to bring
the Department of Energy (DOE) more closely into line with
other federal agencies. In preparing the report, the Secretary
is instructed to look carefully at all of the DOE national
security program funds and determine the length of time, by
account, the funds should be available for obligation. The
conferees expect the plan would be incorporated into the
President's budget request for fiscal year 2000.
Report on remediation under the Formerly Utilized Sites Remedial Action
 Program (sec. 3170)
 The Senate amendment contained a provision (sec. 3138)
that would require the Secretary of Energy to prepare a report
on the progress, costs, and liability issues associated with
remediation activities carried out pursuant to the Formerly
Utilized Sites Remedial Action Program. The report would be due
not later than March 1, 1998.
 The House bill contained no similar provision.
 The House recedes.

 legislative provisions not adopted

Report on proposed contract for Hanford tank waste vitrification
 project
 The House bill contained a provision (sec. 3145) that
would require prior notice to the congressional defense
committees before entering into a contract for the Hanford tank
waste vitrification project. The provision would also require
the submission of a detailed report describing the activities
to be carried out under the contract, the contractual and
financial aspects of the contract, and an analysis of the cost
to the United States of the proposed contract over the life of
the project.
 The Senate amendment contained no similar provision.
 The House recedes.
 The conferees agree to include the substance of this
provision in another section in Title XXXI of this Act dealing
with defense environmental management privatization projects.
Defense environmental management privatization
 The Senate amendment contained a provision (sec. 3104)
that would authorize $274.0 million for the Defense
Environmental Management Privatization program.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees agree to authorize funding for these
projects in section 3102 of this Act.
Tritium production in commercial facilities
 The Senate amendment contained a provision (sec. 3139)
that would amend section 91 of the Atomic Energy Act (AEA) to
authorize the Secretary of Energy to produce tritium for
defense-related purposes in a commercial nuclear power reactor.
 The House bill contained no similar provision.
 The Senate recedes.
 Tritium gas, an isotope of hydrogen, is an essential
ingredient in all modern nuclear weapons. Tritium has a
radioactive half life of 12.3 years, and decays at a rate of
five percent per year. As a result, the tritium in weapons in
the U.S. nuclear weapons stockpile must be replaced
periodically. Based on current projections of the size of the
U.S. nuclear weapons stockpile, recycling tritium from weapons
eliminated from the stockpile cannot fulfill this requirement.
 In December 1995, the Department of Energy announced its
dual-track strategy for new tritium production. Utilizing the
dual-track strategy since that time, the Department has been
pursuing the two most promising tritium production
technologies: (1) the purchase of an operating or partially
complete commercial light-water reactor, or lease of a
completed reactor, or the purchase of irradiation services from
the owner or operator of such a reactor; and (2) the design,
construction, and testing of critical components of a proton
accelerator system for the production of tritium. The dual-
track strategy will enable the Department to select a primary
option for tritium production by December 1998, consistent with
current Department of Defense and nuclear weapons stockpile
requirements, policy, and life-cycle cost budgetary
considerations. The option not selected would serve as a backup
capability in the event of technical or other difficulties.
 Over the last 19 months, DOE has gained increased
confidence in the abilities of both options to produce an
assured supply of tritium.
 The accelerator program has made significant advances
through the use of superconducting and other design concepts to
reduce the cost and technical risks that have been identified
in conjunction with the accelerator. The commercial light water
reactor program has also made significant progress in designing
and producing tritium target rods. In the fall of 1997, DOE
will place these tritium target rods in a commercial reactor in
an effort to demonstrate the safety and reliability of tritium
production in a light water reactor.
 Each track has additional uncertainties that must be
addressed and answered to enable the Department to make its
primary tritium production decision by December 1998.
 The conferees agreed to withdraw the proposed amendment
to the AEA in order to allow a full and robust debate on the
policy and legal implications of producing tritium for nuclear
weapons in a commercial nuclear facility. While questions exist
as to whether or not current law prohibits production of
tritium in a commercial facility, and because concerns have
been raised regarding the effect that a decision to produce
tritium in this manner would have on U.S. non-proliferation
strategy, the conferees believe the policy, legal, and
regulatory issues that have been raised must be addressed in a
comprehensive manner prior to passage of any amendments to
facilitate such a choice.
 The commercial reactor track contains many sub-options
for tritium production. As a practical matter, each of the
different reactor sub-options has different legal and policy
issues associated with it. The conferees believe that it would
be helpful to the effort to secure necessary legislative
changes if DOE could identify the preferred commercial reactor
sub-option in advance of the final tritium production
technology decision, preferably by March 1, 1998.
 The conferees believe that it is essential for DOE to
identify and assess any policy issues associated with the
various reactor sub-options in conjunction with other federal
agencies including the Nuclear Regulatory Commission, the
Department of Defense, and the Department of State arms control
offices. The conferees direct the Secretary of Energy to
utilize a senior level, interagency process to review and
assess the issues associated with the commercial reactor
option. This assessment should be completed before DOE
identifies a preferred reactor sub-option.
 The conferees request the DOE propose to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives, by March 15, 1998,
any legislation necessary to resolve the issues associated with
either of the dual-track production technologies. This would
allow the legislation to be inplace in advance of the DOE's
final decision in December 1998. The conferees expect the Secretary of
Energy to include full funding to continue to evaluate each tritium
production technology in the dual-track strategy. The conferees will
continue to work closely with DOE to gain the knowledge necessary to
address and resolve issues associated with the dual-track tritium
production technologies in order to allow the Department to select the
tritium production option that best meets U.S. policy, national
security and budgetary requirements.
Administration of certain Department of Energy activities
 The Senate amendment contained a provision (sec. 3151)
that would amend sections 501 and 624 of the Department of
Energy Organization Act and repeal section 17 of the Federal
Energy Act. This provision would bring the Department of Energy
(DOE) under the full scope of the Federal Advisory Committee
Act and would bring DOE under the full scope of the
Administrative Procedure Act when issuing regulations dealing
with public property, loans, grants, or contracts.
 The House bill contained no similar provision.
 The Senate recedes.
 The conferees note that this provision was enacted into
law by ``The Department of Energy Standardization Act of 1997''
(Public Law 105-28).
Participation of the national security activities in Hispanic Outreach
 Initiative of the Department of Energy
 The Senate amendment contained a provision (sec. 3159)
that would direct the Secretary of Energy to ensure the
adequate participation of the Department of Energy (DOE)
national security activities in the National Hispanic Outreach
Initiative.
 The House bill contained no similar provision.
 The Senate recedes.
 The Secretary of Energy has established, for each DOE
program element, participation goals to utilize Hispanic and
other predominately or historically minority institutions, in
carrying out DOE missions. The defense programs have not
participated in a meaningful way in the Hispanic portions of
the initiative.
 The initiative was announced by the DOE with much fanfare
and yet, particularly in northern New Mexico, there has been
little indication that DOE is working to fulfill its promises
to utilize more fully Hispanic institutions in carrying out
defense program missions. The conferees encourage the Secretary
of Energy to seek uniform participation in this initiative.

 Ttitle XXXII--Defense Nuclear Facilities Safety Board

Overview
 The budget request for fiscal year 1998 contained an
authorization of $17.5 million for the Defense Nuclear
Facilities Safety Board. The House bill would authorize $17.5
million. The Senate amendment would authorize $17.5 million.
The conferees recommended an authorization of $17.5 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

 LEGISLATIVE PROVISIONS ADOPTED

Report on external regulation of defense nuclear facilities (sec. 3202)
 The House bill contained a provision (sec. 3202) that
would require the Defense Nuclear Facilities Safety Board
(DNFSB) to develop a plan, in consultation with the Secretary
of Energy and the Nuclear Regulatory Commission (NRC), for the
transfer of DNSFB's functions to the NRC.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would require
the Board to submit a report recommending which facilities
should be retained under the jurisdiction of the Board and
which facilities should be transferred to an external
regulatory agency; require the Board to assess regulatory
requirements and jurisdictional issues surrounding the defense
environmental management privatization initiative and the
proposed commercial light water reactor option for tritium
production; remove the repeal of section 210 of the Department
of Energy National Security and Military Applications of
Nuclear Energy Authorization Act of 1981 (42 U.S.C. 7272); and
require the Board to submit an interim report within 6 months
of the date of enactment of this section and a final report
within 12 months.

 Title XXXIII--National Defense Stockpile

 LEGISLATIVE PROVISIONS ADOPTED

Definitions (sec. 3301)
 The Senate amendment contained a provision (sec. 3301)
defining the National Defense Stockpile and National Defense
Stockpile Transaction Fund as those which are established under
the Strategic and Critical Materials Stock Piling Act.
 The House bill contained no similar provision.
 The House recedes.
Authorized uses of stockpile funds (sec. 3302)
 The House bill contained a provision (sec. 3301) that
would authorize $73.0 million from the National Defense
Stockpile Transaction Fund for the operation and maintenance of
the National Defense Stockpile for fiscal year 1998. This
provision would also permit the use of additional funds for
extraordinary or emergency conditions after a notification to
Congress.
 The Senate amendment contained a provision (sec. 3302)
that would authorize the Stockpile Manager to obligate $60.0
million from the National Defense Stockpile Transfer Fund
during fiscal year 1998 for the authorized uses of funds under
section 9(b)(2) of the Strategic and Critical Materials
Stockpiling Act.
 The Senate recedes.
Disposal of beryllium copper master alloy in National Defense Stockpile
 (sec. 3303)
 The House bill contained a provision (sec. 3302) that
would authorize the Department of Defense to dispose of all
beryllium copper master alloy from the National Defense
Stockpile, contingent upon certification by the National
Defense Stockpile Manager that any disposal of this material
will not adversely affect the strategic and critical material
needs of the United States.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Disposal of titanium sponge in the National Defense Stockpile (sec.
 3304)
 The House bill contained a provision (sec. 3303) that
would authorize the Department of Defense to dispose of 34,800
short tons of titanium sponge in the National Defense
Stockpile.
 The Senate amendment contained a provision (sec. 3303)
that would authorize the disposal of several materials from the
National Defense Stockpile including titanium sponge.
 The Senate recedes.
Disposal of cobalt in National Defense Stockpile (sec. 3305)
 The Senate amendment contained a provision (sec. 3303)
that would authorize the Department of Defense to dispose of 20
materials from the National Defense Stockpile and would
establish specific revenue targets that the Secretary of
Defense must meet in the disposal of these materials.
 The House bill contained no similar provision.
 The House recedes with an amendment that would authorize
the disposal of up to 14,058,014 pounds of cobalt, beginning in
fiscal year 2003, and would require specific revenue targets
for this disposal each year until fiscal year 2007 in order to
offset direct spending provisions elsewhere in this Act.
Required procedures for disposal of strategic and critical materials
 (sec. 3306)
 The House bill contained a provision (sec. 3306) that
would amend section 6(b) of the Strategic and Critical
Materials Stock Piling Act (50 U.S.C. 98e(b)) to clarify the
procedures used by the Department of Defense for the sale of
materials from the National Defense Stockpile.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Return of surplus platinum from the Department of the Treasury (sec.
 3307)
 The House bill contained a provision (sec. 3304) that
would establish conditions for the transfer of platinum
contained in the National Defense Stockpile to the United
States Treasury for minting of platinum coins.
 The Senate amendment contained a provision (sec. 3304)
that would require any platinum contained within the National
Defense Stockpile and loaned by the Department of Defense to
the Department of Treasury to be made available to the
Department of Defense upon request of the Secretary of Defense.
 The House recedes with an amendment that would preclude
the expenditure of any funds available to the Department of
Defense for the transfer of any platinum to the Treasury.

 LEGISLATIVE PROVISIONS NOT ADOPTED

Restrictions on disposal of certain manganese ferro
 The House bill contained a provision (sec. 3305) that
would repeal section 3304 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106), which placed
restrictions on the disposal of Manganese Ferro from the
National Defense Stockpile.
 The Senate amendment contained no similar provision.
 The House recedes.

 Title XXXIV--Naval Petroleum Reserves

 legislative provisions adopted

Price requirement on sale of certain petroleum during fiscal year 1998
 (sec. 3402)
 The House bill contained a provision (sec. 3402) that
would require the Secretary of Energy to sell petroleum
produced for the Naval Petroleum Reserves at not less than 90
percent of established prices.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Repeal of requirement to assign Navy officers to Office of Naval
 Petroleum and Oil Shale Reserves (sec. 3403)
 The House bill contained a provision (sec. 3403) that
would repeal section 2 of Public Law 96-137, which requires the
Secretary of the Navy to assign naval officers to the office of
Naval Petroleum and Oil Shale Reserves.
 The Senate amendment contained a similar provision (sec.
3403).
 The House recedes.
Transfer of jurisdiction, Naval Oil Shale Reserves numbered 1 and 3
 (sec. 3404)
 The House bill contained a provision (sec. 3404) that
would transfer the jurisdiction of the Naval Oil Shale Reserves
Numbered one and three to the Department of the Interior and
for lease pursuant tothe provisions of the Mineral Leasing Act,
which would provide for the sharing of the revenues between the State
of Colorado and the Federal Treasury.
 The Senate amendment contained a similar provision (sec.
3402) that would authorize the lease of these reserves through
the Department of Energy, which would allow 100 percent of the
proceeds to be returned to the Federal Treasury.
 The Senate recedes with an amendment that would require
that the Federal Treasury be reimbursed for all costs incurred
by the Federal Government related to these reserves, including
costs associated with capital improvements and environmental
cleanup, prior to the sharing of any revenues with the State of
Colorado.

 Title XXXV--Panama Canal Commission

Panama Canal Commission (secs. 3501-3550)
 The House bill contained provisions (secs. 3501-3504)
that would authorize the expenditure of funds by the Panama
Canal Commission to cover its operating, maintenance,
administrative, and capital improvement expenses, and to
purchase vehicles built in the United States. The House bill
also contained provisions (secs. 3511-3550) that would give the
Commission certain authorities to facilitate the transition of
the Canal to Panamanian control in December 1999.
 The Senate amendment contained identical provisions
(secs. 3501, 3502, 3504-3512, 3523, 3524, 3526, and 3528-3550)
and similar provisions (3503, 3521, 3522, 3525, and 3527).
 The conferees agree to include a series of provisions
that would authorize the operations of the Panama Canal
Commission. The provision in the House bill relating to the
purchase of vehicles (sec. 3503) required that the vehicles
purchased be built in the United States, while the provision in
the Senate amendment (sec. 3503) had no such requirement. The
provisions in the House bill and Senate amendment relating to
the administrator of the Panama Canal Authority (sec. 3521 in
both), post-transfer personnel authorities (sec. 3522 in both),
recruitment and retention authorities (sec. 3525 in both) and
labor-management relations (sec. 3527 in both) differed only
technically.
 The House recedes with respect to the provision relating
to the purchase of vehicles (sec. 3503). The conferees note,
however, that the Commission has in the past purchased only
vehicles built in the United States and encourage the
continuation of that practice.
 The House recedes with respect to the provision relating
to the administrator of the Panama Canal Authority (sec. 3521),
and recedes with technical amendments with respect to the
provisions relating to post-transfer personnel authorities
(sec. 3522) and labor-management relations (sec. 3527). The
Senate recedes with a technical amendment with respect to the
provision relating to enhanced recruitment and retention
authorities (sec. 3525).

 Title XXXVI--Maritime Administration

 Title XXXVI of the House bill contained a number of
provisions that would provide authorization for the Maritime
Administration and related matters. The conferees resolved
these matters through extensive consultations between the House
and Senate conferees and the Senate Committee on Commerce,
Science, and Transportation, which would normally exercise
jurisdiction within the Senate on these matters.

 LEGISLATIVE PROVISIONS ADOPTED

Authorization of appropriations for fiscal year 1998 (sec. 3601)
 The House bill contained a provision (sec. 3601) that
would authorize $109.0 million for fiscal year 1998, as
requested in the President's budget, for the United States
Maritime Administration.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Repeal of obsolete annual report requirement concerning relative cost
 of shipbuilding in the various coastal districts of the United
 States (sec. 3602)
 The House bill contained a provision (sec. 3602) that
would repeal the obsolete requirement for an annual report on
the relative cost of shipbuilding in the various coastal
districts contained in section 213 of the Merchant Marine Act,
1936, as amended (46 U.S.C. App. 1123).
 The Senate amendment contained no similar provision.
 The Senate recedes.
Provisions relating to maritime security fleet program (sec. 3603)
 The House bill contained a provision (sec. 3603) that
would amend section 656(b) of the Merchant Marine Act, 1936, as
amended (46 U.S.C. App. 1187e(b)) to make clear that it does
not restrict the operation or entry of U.S. flag self-propelled
tankers in the domestic trades. This provision would also amend
section 652(c) of the Merchant Marine Act, 1936, to eliminate
the 3-year delay in eligibility to carry certain preference
cargoes of vessels that are reflagged as U.S. flag vessels in
order to participate in the Maritime Security Fleet Program.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would amend
section 652(c) of the Act to exempt a vessel from the
restrictions concerning the building, rebuilding, or
documentation of a vessel in a foreign country referred to in
section 901(b) of the Act, 1936 (46 U.S.C. App. 1187a(c)) for
any day the operator of the vessel is receiving payments under
an operating agreement under the subtitle.
Authority to utilize replacement vessels and capacity (sec. 3604)
 The House bill contained a provision (sec. 3604) that
would amend section 653(d) of the Merchant Marine Act, 1936, as
amended (46 U.S.C. App. 1187b(d)(1)), to authorize a U.S. flag
operator to utilize a foreign flag replacement vessel for a
U.S. flag vessel that is activated by the Secretary of Defense
under the terms of an Emergency Preparedness Agreement or other
primary sealift readiness program approved by the Secretary of
Defense.
 The Senate amendment contained no similar provision.
 The Senate recedes.
Authority to convey National Defense Reserve Fleet vessel (sec. 3605)
 The House bill contained a provision (sec. 3605) that
would authorize the Secretary of Transportation to convey a
surplus National Defense Reserve Fleet vessel to the Artship
Foundation, a non-profit organization located in Oakland,
California.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would add two
required conditions to the terms of conveyance.
Determination of gross tonnage for purposes of tank vessel double hull
 requirements (sec. 3606)
 The House bill contained a provision (sec. 3606) that
would stop an industry practice of reducing the gross tonnage
of single-hull tank vessels in order to delay the phase-out
date of the vessels under the Oil Pollution Act of 1990.
 The Senate amendment contained no similar provision.
 The Senate recedes with an amendment that would clarify
the circumstances under which the House provision would apply.

 From the Committee on National Security, for
 consideration of the House bill and the Senate
 amendment, and modifications committed to
 conference:
 Floyd Spence,
 Bob Stump,
 Duncan Hunter,
 John R. Kasich,
 Herbert H. Bateman,
 James V. Hansen,
 Curt Weldon,
 Joel Hefley,
 Jim Saxton,
 Steve Buyer,
 Tillie K. Fowler,
 John M. McHugh,
 James M. Talent,
 Terry Everett,
 (except for sections 355,
 356, and 358-367),
 Roscoe G. Bartlett,
 Howard ``Buck'' McKeon,
 Ron Lewis,
 J.C. Watts, Jr.,
 Saxby Chambliss,
 Bob Riley,
 Ike Skelton,
 Norman Sisisky,
 John M. Spratt, Jr.,
 (except for the increase
 over the President's
 request for research and
 development of a space-
 based laser and the
 statement of managers on
 this program),
 Solomon P. Ortiz,
 Owen Pickett,
 Gene Taylor,
 Neil Abercrombie,
 Martin T. Meehan,
 Jane Harman,
 Paul McHale,
 Patrick J. Kennedy,
 Rod Blagojevich,
 Vic Snyder,
 As additional conferees from the Permanent
 Select Committee on Intelligence, for
 consideration of matters within the
 jurisdiction of that committee under clause 2
 of rule XLVIII:
 Porter J. Goss,
 Jerry Lewis,
 Norm Dicks,
 As additional conferees from the Committee on
 Commerce for consideration of sections 344,
 601, 654, 735, 1021, 3143, 3144, 3201, 3202,
 3402, and 3404 of the House bill, and sections
 338, 601, 663, 706, 1064, 2823, 3136, 3140,
 3151, 3160, 3201, and 3402 of the Senate
 amendment, and modifications committed to
 conference:
 Tom Bliley,
 Dan Schaefer,
 Provided that Mr. Oxley is appointed in lieu of
 Mr. Dan Schaefer of Colorado for consideration
 of sections 344 and 1021 of the House bill and
 section 2823 of the Senate amendment:
 Michael G. Oxley,
 Provided that Mr. Bilirakis is appointed in
 lieu of Mr. Dan Schaefer of Colorado for
 consideration of sections 601, 654, and 735 of
 the House bill, and sections 338, 601, 663, and
 706 of the Senate amendment:
 Mike Bilirakis,
 Provided that Mr. Tauzin is appointed in lieu
 of Mr. Dan Schaefer of Colorado for
 consideration of section 1064 of the Senate
 amendment:
 Billy Tauzin,
 As additional conferees from the Committee on
 Education and the Workforce, for consideration
 of sections 374, 658, and 3143 of the House
 bill, and sections 664 of the Senate amendment,
 and modifications committed to conference:
 Bill Goodling,
 Harris W. Fawell,
 Loretta Sanchez,
 Provided that Mr. Riggs is appointed in lieu of
 Mr. Fawell for consideration of section 658 of
 the House bill and section 664 of the Senate
 amendment:
 Frank Riggs,
 As additional conferees from the Committee on
 Government Reform and Oversight, for
 consideration of sections 322 and 3527 of the
 House bill, and sections 1068, 1107, 2811, and
 3527 of the Senate amendment, and modifications
 committed to conference:
 Dan Burton,
 Stephen Horn,
 As additional conferees from the Committee on
 House Oversight, for consideration of section
 543 of the Senate amendment, and modifications
 committed to conference:
 William M. Thomas,
 Bob Ney,
 As additional conferees from the Committee on
 the Judiciary, for consideration of sections
 374, 1057, 3521, 3522, and 3541 of the House
 bill, and sections 831, 1073, 1075, 1106, and
 1201-1216 of the Senate amendment, and
 modifications committed to conference:
 Henry J. Hyde,
 Lamar Smith,

 As additional conferees from the Committee on
 Resources for consideration of sections 214,
 601, 653, 1021, 2835, 2901-2914 and 3404 of the
 House bill, and sections 234, 381-392, 601,
 706, 2819, and 3158 of the Senate amendment,
 and modifications committed to conference:
 Don Young,
 Billy Tauzin,
 Provided that Mr. Delahunt is appointed in lieu
 of Mr. Miller of California for consideration
 of sections 2901-2914 of the House bill, and
 sections 381-392 of the Senate amendment:
 William Delahunt,
 As additional conferees from the Committee on
 Science for consideration of sections 214 and
 3148 of the House bill, and sections 234 and
 1064 of the Senate amendment, and modifications
 committed to conference:
 F. James Sensenbrenner, Jr.,
 Ken Calvert,
 George E. Brown, Jr.,
 Provided that Mr. Rohrabacher is appointed in
 lieu of Mr. Calvert for consideration of
 section 1064 of the Senate amendment:
 Dana Rohrabacher,
 As additional conferees from the Committee on
 Transportation and Infrastructure for
 consideration of sections 345, 563, 601, 1021,
 2861, and 3606 of the House bill, and section
 601 of the Senate amendment, and modifications
 committed to conference:
 Bud Shuster,
 Wayne T. Gilchrest,
 Robert A. Borski,
 As additional conferees from the Committee on
 Veterans' Affairs for consideration of sections
 751, 752, and 759 of the House bill, and
 sections 220, 542, 751, 752, 758, 1069, 1074,
 and 1076 of the Senate amendment, and
 modifications committed to conference:
 Christopher H. Smith,
 Mike Bilirakis,
 Joseph P. Kennedy,
 Managers on the Part of the House.

 Strom Thurmond,
 John Warner,
 John McCain,
 Dan Coats,
 Bob Smith,
 Dirk Kempthorne,
 Jim Inhofe,
 Rick Santorum,
 Olympia Snowe,
 Pat Roberts,
 Carl Levin,
 Ted Kennedy,
 Jeff Bingaman,
 John Glenn,
 Robert C. Byrd,
 Chuck Robb,
 Joe Lieberman,
 Max Cleland,
 Managers on the Part of the Senate.

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