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[House Report 107-194]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
 1st Session            HOUSE OF REPRESENTATIVES                107-194
_______________________________________________________________________

                                     

 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

                               __________

                              R E P O R T

                                 OF THE

                      COMMITTEE ON ARMED SERVICES

                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 2586

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]

                                     

                                     

 September 4, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                   HOUSE COMMITTEE ON ARMED SERVICES
                      One Hundred Seventh Congress

                      BOB STUMP, Arizona, Chairman
FLOYD D. SPENCE, South Carolina      IKE SKELTON, Missouri
DUNCAN HUNTER, California            JOHN SPRATT, South Carolina
JAMES V. HANSEN, Utah                SOLOMON P. ORTIZ, Texas
CURT WELDON, Pennsylvania            LANE EVANS, Illinois
JOEL HEFLEY, Colorado                GENE TAYLOR, Mississippi
JIM SAXTON, New Jersey               NEIL ABERCROMBIE, Hawaii
JOHN M. McHUGH, New York             MARTY MEEHAN, Massachusetts
TERRY EVERETT, Alabama               ROBERT A. UNDERWOOD, Guam
ROSCOE G. BARTLETT, Maryland         ROD R. BLAGOJEVICH, Illinois
HOWARD P. ``BUCK'' McKEON,           SILVESTRE REYES, Texas
    California                       THOMAS H. ALLEN, Maine
J.C. WATTS, Jr., Oklahoma            VIC SNYDER, Arkansas
MAC THORNBERRY, Texas                JIM TURNER, Texas
JOHN N. HOSTETTLER, Indiana          ADAM SMITH, Washington
SAXBY CHAMBLISS, Georgia             LORETTA SANCHEZ, California
VAN HILLEARY, Tennessee              JAMES H. MALONEY, Connecticut
JOE SCARBOROUGH, Florida             MIKE McINTYRE, North Carolina
WALTER B. JONES, North Carolina      CIRO D. RODRIGUEZ, Texas
LINDSEY GRAHAM, South Carolina       CYNTHIA A. McKINNEY, Georgia
JIM RYUN, Kansas                     ELLEN O. TAUSCHER, California
BOB RILEY, Alabama                   ROBERT A. BRADY, Pennsylvania
JIM GIBBONS, Nevada                  ROBERT E. ANDREWS, New Jersey
ROBIN HAYES, North Carolina          BARON P. HILL, Indiana
HEATHER WILSON, New Mexico           MIKE THOMPSON, California
KEN CALVERT, California              JOHN B. LARSON, Connecticut
ROB SIMMONS, Connecticut             SUSAN A. DAVIS, California
ANDER CRENSHAW, Florida              JAMES R. LANGEVIN, Rhode Island
MARK STEVEN KIRK, Illinois           RICK LARSEN, Washington
JO ANN DAVIS, Virginia
ED SCHROCK, Virginia
W. TODD AKIN, Missouri
J. RANDY FORBES, Virginia
                    Robert S. Rangel, Staff Director

                            C O N T E N T S

                              ----------                              
                                                                   Page

Explanation of the Committee Amendments..........................     1
Purpose..........................................................     2
Relationship of Authorization to Appropriations..................     2
Summary of Authorization in the Bill.............................     2
  Summary Table of Authorizations................................     3
Rationale for the Committee Bill.................................    12
Hearings.........................................................    18

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION..................    19

TITLE I--PROCUREMENT.............................................    19
  OVERVIEW.......................................................    19
    Aircraft Procurement, Army...................................    22
      Overview...................................................    22
      Items of Special Interest..................................    27
        AH-64 modifications......................................    27
        Air traffic control......................................    27
        Aircraft survivability equipment (ASE)...................    27
        CH-47 cargo helicopter modifications.....................    28
        Longbow..................................................    28
        UH-60 modifications......................................    28
    Missile Procurement, Army....................................    29
      Overview...................................................    29
      Items of Special Interest..................................    33
        Missile procurement army (MPA) transfers.................    33
    Weapons and Tracked Combat Vehicles, Army....................    33
      Overview...................................................    33
      Items of Special Interest..................................    38
        Abrams upgrade program...................................    38
        Bradley base sustainment.................................    38
    Ammunition Procurement, Army.................................    39
      Overview...................................................    39
      Items of Special Interest..................................    44
        Army ammunition procurement..............................    44
        Remote area denial artillery munition (RADAM)............    44
        White phosphorus production facility.....................    44
    Other Procurement, Army......................................    44
      Overview...................................................    44
      Items of Special Interest..................................    56
        Artillery accuracy equipment.............................    56
        Combat support medical...................................    56
        Combat training centers instrumentation support..........    56
        Deployable universal combat earthmovers (DEUCE)..........    57
        Earthmoving scrapers.....................................    57
        High mobility trailers...................................    57
        Improved high frequency radio (IHFR).....................    58
        Modification of in service equipment.....................    58
        Nonsystem training devices...............................    58
        Product improved combat vehicle crewman (PICVC)..........    59
        Reserve component automation system (RCAS)...............    59
        Ribbon bridge............................................    59
        Special equipment for user testing.......................    60
        Super high frequency (SHF) terminal......................    60
        Tactical unmanned aerial vehicle (TUAV)..................    61
        Water distributors.......................................    61
    Chemical Agents and Munitions Destruction, Army..............    61
      Overview...................................................    61
      Items of Special Interest..................................    63
        Chemical agents and munitions destruction................    63
    Aircraft Procurement, Navy...................................    63
      Overview...................................................    63
      Items of Special Interest..................................    69
        AV-8B modifications......................................    69
        Calibration test equipment...............................    69
        E-2 modifications........................................    69
        F/A-18E/F................................................    70
        HH/UH-1N reclamation and conversion program..............    70
        Joint primary air training system (JPATS)................    70
        SH-60 series modifications...............................    70
        T-45 training system (TS)................................    71
        Tactical air reconnaissance pod system (TARPS)-completely 
          digital (CD)...........................................    71
    Weapons Procurement, Navy....................................    71
      Overview...................................................    71
      Items of Special Interest..................................    76
        MK 46 Mod 0 lightweight machine gun......................    76
        Tomahawk missile.........................................    76
        Trident II missile.......................................    76
    Ammunition Procurement Navy/Marine Corps.....................    77
      Overview...................................................    77
    Shipbuilding and Conversion, Navy............................    81
      Overview...................................................    81
      Items of Special Interest..................................    85
        Completion of prior year shipbuilding programs...........    85
        Minehunter small waterplane area twin hull (SWATH).......    85
        Outfitting...............................................    85
        SSGN conversion..........................................    86
    Other Procurement, Navy......................................    86
      Overview...................................................    86
      Items of Special Interest..................................    97
        Operating forces industrial plant equipment..............    97
        Other navigation equipment...............................    97
        Other supply support equipment...........................    97
        Other training equipment.................................    98
        Radar support............................................    98
        Satellite communications systems.........................    98
    Procurement, Marine Corps....................................    99
      Overview...................................................    99
      Items of Special Interest..................................   105
        Container family.........................................   105
        Expeditionary warfare....................................   105
        Family of construction equipment.........................   106
        Night vision equipment...................................   106
    Aircraft Procurement, Air Force..............................   106
      Overview...................................................   106
      Items of Special Interest..................................   114
        B-2......................................................   114
        C-130....................................................   114
        C-17.....................................................   115
        CV-22....................................................   115
        Defense airborne reconnaissance program (DARP), line 55..   116
        F-15 modifications.......................................   116
        F-16 modifications.......................................   117
        Fixed aircrew standardized seats.........................   117
        MC-130 simulation training upgrades......................   118
        Predator unmanned aerial vehicle (UAV)...................   118
    Ammunition Procurement, Air Force............................   119
      Overview...................................................   119
    Missile Procurement, Air Force...............................   122
      Overview...................................................   122
    Other Procurement, Air Force.................................   126
      Overview...................................................   126
      Items of Special Interest..................................   133
        Air national guard air traffic control tower radio 
          upgrade................................................   133
        Combat arms training system (CATS).......................   133
        Laser eye protection.....................................   133
        Senior scout.............................................   134
        Supply asset tracking system (SATS)......................   134
        Theater air control system improvement (TACSI)...........   134
    Procurement, Defense-Wide....................................   135
      Overview...................................................   135
      Items of Special Interest..................................   141
        Chemical/biological defense procurement program..........   141
          Anthrax vaccination immunization program...............   141
          Chemical/biological defense collective protection 
              shelters...........................................   141
        Portable intelligence collection and relay capability 
            (PICRC)..............................................   141
    Chemical Agents and Munitions Destruction, Defense...........   141
      Overview...................................................   141
      Items of Special Interest..................................   144
        Chemical agents and munitions destruction................   144
          Review of program for destruction of lethal chemical 
              agents and munitions...............................   144
  LEGISLATIVE PROVISIONS.........................................   145
    Subtitle A--Authorization of Appropriations..................   145
      Sections 101-107--Authorization of Appropriations..........   145
    Subtitle B--Army Programs....................................   145
      Section 111--Extension of Multiyear Contract for Family of 
          Medium Tactical Vehicles...............................   145
      Section 112--Repeal of Limitation on Number of Bunker 
          Defeat Munitions that May Be Acquired..................   145
    Subtitle C--Air Force Programs...............................   145
      Section 121--Responsibility of Air Force for Contracts for 
          All Defense Space Launches.............................   145
      Section 122--Multiyear Procurement of C-17 Aircraft........   145
    Subtitle D--Chemical Munitions Destruction...................   146
      Section 141--Destruction of Existing Stockpile of Lethal 
          Chemical Agents and Munitions..........................   146

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION............   147
  OVERVIEW.......................................................   147
    Army RDT&E...................................................   149
      Overview...................................................   149
      Items of Special Interest..................................   160
        Advanced display technology..............................   160
        All Source Analysis System...............................   160
        Applied communications and information networking program   161
        Army missile defense systems integration.................   161
        Aviation engineering development.........................   161
        Brooks Air Force Base energy and sustainability 
            laboratory...........................................   161
        Collaboration in biotechnology research..................   162
        Combat ready food safety.................................   162
        Combustion-driven eye safe laser.........................   162
        Comanche.................................................   162
        Combat vehicle and automotive advance technology.........   163
        Crusader.................................................   163
        Dismounted situational awareness system..................   163
        Electronics and electronic devices.......................   164
        Electronic warfare (EW) development......................   164
        Environmental quality technology.........................   164
        Full authority digital engine control....................   164
        Funding transfers to support transformation..............   165
        High-energy laser-low aspect target tracking.............   165
        Hybrid track technology..................................   165
        Hyperspectral long-wave imager for the tactical 
            environment..........................................   166
        Infantry support weapons.................................   166
        International medical program global satellite system....   166
        Landmine warfare/barrier engineering development.........   167
        Lightweight x-band radar antenna.........................   167
        Medical advanced technology..............................   167
        Medical technology.......................................   167
        MedTeams.................................................   168
        Missile and rocket advanced technology...................   168
        Missile technology.......................................   168
        Night vision advanced technology.........................   169
        Passive millimeter-wave imaging..........................   169
        Silent sentry surveillance test..........................   169
        Soldier-Centered Design Tools for the Army Transformation   169
        Survival radios..........................................   170
        Tactical high energy laser...............................   170
        Tactical unmanned aerial vehicle.........................   170
        Weapons and munitions....................................   171
        Weapons and munitions advanced technology................   171
    Navy RDT&E...................................................   171
      Overview...................................................   171
      Items of Special Interest..................................   184
        Advanced anti-radiation guided munition (AARGM)..........   184
        Advanced composite sail phase II.........................   184
        Advanced multi-band surveillance systems.................   184
        Aegis combat systems engineering.........................   185
        Aviation-shipboard information technology initiative.....   185
        Combat systems integration...............................   185
          Common command and decision system.....................   186
          Wideband optically multiplexed beam-forming 
              architecture.......................................   186
        Common picture applied research..........................   186
          Hybrid fiber optic wireless communication..............   186
          SEADEEP................................................   187
        E2-C2 eight-blade composite propeller....................   187
        Electronic warfare (EW) development......................   187
        Electro optical framing reconnaissance...................   188
        Embedded software engineering research initiative........   188
        Expeditionary warfare testbed-supporting arms technology 
            insertion............................................   188
        Extending the littoral battlespace.......................   189
        F/A-18 improvements......................................   189
          Fuel cell second source................................   189
          Joint helmet mounted cueing system (JHMCS).............   189
        Force protection advanced technology.....................   190
          Advanced water jet AWJ-21..............................   190
          DC Homopolar Motor.....................................   190
          Direct ship service fuel cell..........................   190
          Electric propulsion/ship power systems distributed test 
              bed................................................   191
          Littoral support craft-experimental....................   191
          SEALs Mark V patrol craft modification.................   192
        Funding transfers to support transformation..............   192
        Land attack standard missile.............................   193
        Laser aim scoring system (LASS)..........................   193
        Laser welding and cutting................................   194
        Marine Corps ground combat/support system................   194
        Metrology Projects.......................................   195
        Multipurpose processor...................................   195
        Navy's intelligent agent security module.................   195
        Navy logistics productivity..............................   196
          Compatible processor upgrade program...................   196
          Rapid retargeting......................................   196
        Non-acoustic anti-submarine warfare......................   196
        Oceanographic survey of continental shelf beyond U.S. 
            exclusive economic zone..............................   197
        Organ transfer technology................................   197
        Photovoltaic energy savings initiative...................   198
        Power projection advanced technology.....................   198
          Affordable weapon......................................   198
          DP-2 thrust vectoring system concept demonstration.....   198
        Precision targeting systems modernization and enhancement   199
        Project Bear Trap........................................   199
        Radiation-hardened electronics applications..............   200
        SPAWAR enhanced modeling and simulation initiatives......   200
        Submarine electrical power...............................   200
        Supply Chain Best Practices..............................   201
        Surface navy integrated undersea tactical technology.....   201
        Surface ship torpedo defense.............................   201
        Telemedicine for minimally invasive surgery..............   201
        Titanium watertight door and hatch cover.................   202
        Torpedo rapid COTS insertion.............................   202
        Vacuum electronics.......................................   203
        VECTOR study and analysis................................   203
        Warfighter sustainment advanced technology...............   204
          Naval environmental compliance operations monitoring 
              system.............................................   204
          Real time heart rate variability monitor...............   204
        Warfighter sustainment applied research..................   204
          Commercial off-the-shelf (COTS) carbon fiber 
              qualification......................................   204
          Detection and identification of human pathogens........   204
          Formable aligned carbon thermo sets....................   205
          Knowledge-based ship system diagnosis and repair.......   205
    Air Force RDT&E..............................................   205
      Overview...................................................   205
      Items of Special Interest..................................   216
        Access to space..........................................   216
        Advanced aerospace sensors...............................   216
        Aerospace propulsion.....................................   216
        Aging landing gear life extension (ALGLE) program........   216
        Airborne reconnaissance systems..........................   217
        Assessment relating to gasoline and diesel engine fuel 
            systems..............................................   217
        Bipolar wafer cell nickel-metal hydride battery..........   217
        Commercial imagery strategy..............................   218
        Free electron laser......................................   218
        Funding transfers to support transformation..............   218
        GPS jammer detection and location system.................   219
        High Accuracy Network Demonstration System...............   219
        Joint precision approach landing system..................   219
        Joint STARS multi-platform radar technology insertion 
            program..............................................   220
        Joint strike fighter (JSF) alternate engine..............   220
        Low cost autonomous attack system........................   220
        Low cost launch technology...............................   221
        Major T&E investment.....................................   221
        Materials technologies for aging aircraft................   221
        Missile Technology demonstration-3B......................   221
        Non-space SIGINT architecture............................   222
        Precision location and identification (PLAID)............   222
        Satellite planning information network (SPIN)............   223
        Space and missile rocket propulsion......................   223
        Special aerospace metals and manufacturing processes.....   223
        Synthetic Theater Operations Research Model..............   224
        Texas regional institute for environmental studies.......   224
    Defense-Wide RDT&E...........................................   224
      Overview...................................................   224
      Items of Special Interest..................................   233
        Aircraft affordability initiative........................   233
        Backscatter mobile truck system..........................   233
        Ballistic Missile Defense Organization (BMDO)............   233
          Technology.............................................   234
          Ballistic missile defense system.......................   234
          Terminal defense segment...............................   234
          Midcourse defense segment..............................   235
          Boost defense segment..................................   235
          Sensors segment........................................   236
        Chemical/biological defense research, development, test 
            and evaluation program...............................   236
          Research in percutaneous, optical, and pulmonary 
              effects of mustard agent...........................   237
          Optical computing device materials for chemical sensors   237
          Chemical/biological regenerative air filtration systems   237
          Chemical and biological mass spectrometer..............   238
          Mobile chemical agent detector.........................   238
          Asymmetric protocols for biological defense............   238
        Complex systems design...................................   238
        Counterproliferation analysis and planning system........   239
        Defense imagery and mapping program......................   239
        Distributed common ground station/networking ISR assets..   239
        Distributed operational testing capabilities.............   240
        Electrostatic decontamination system.....................   240
        Facial recognition technology............................   241
        Funding transfers to support transformation DW...........   241
          DARPA ``Exoskeleton Project''..........................   241
        Global infrastructure data conversion initiative & 
            document exploitation................................   242
        High energy laser research and development...............   242
        Implantable cardioverter defibrillator...................   243
        Joint Technology Applications Analysis Pilot Program.....   243
        Medical free electron laser..............................   244
        Microelectromechanical systems (MEMS) sensors............   244
        More efficient science and technology investment.........   244
        Special operations forces acquisition....................   245
        Tactical missile recycling...............................   245
        Thermobaric warhead development..........................   245
        U.S.-Israel boost phase intercept........................   246
        Warfighter rapid acquisition programs....................   246
    Operational Test and Evaluation, Defense.....................   247
      Overview...................................................   247
  LEGISLATIVE PROVISIONS.........................................   250
    Subtitle A--Authorization of Appropriations..................   250
      Section 201--Authorization of Appropriations...............   250
      Section 202--Amount for Basic and Applied Research.........   250
    Subtitle B--Program Requirements, Restrictions, and 
        Limitations..............................................   250
      Section 211--Cooperative Department of Defense-Department 
          of Veterans Affairs Medical Research Program...........   250
      Section 212--Advanced Land Attack Missile Program..........   250
      Section 213--Collaborative Program for Development of 
          Advanced Radar Systems for Naval Applications..........   251
    Subtitle C--Ballistic Missile Defense........................   252
      Section 231--Transfer of Responsibility for Procurement for 
          Missile Defense Programs from Ballistic Missile Defense 
          Organization to Military Departments...................   252
      Section 232--Repeal of Program Element Requirements for 
          Ballistic Missile Defense Programs.....................   253
      Section 233--Support of Ballistic Missile Defense 
          Activities of the Department of Defense by the National 
          Laboratories of the Department of Energy...............   253
      Section 234--Missile Defense Testing Initiative............   253
      Section 235--Missile Defense System Test Bed Facilities....   254
    Subtitle D--Other Matters....................................   254
      Section 241--Establishment of unmanned aerial vehicle joint 
          operational test bed system............................   254
      Section 242--Demonstration Project to Increase Small 
          Business and University Participation in Office of 
          Naval Research Efforts to Extend Benefits of Science 
          and Technology Research to Fleet.......................   255
      Section 243--Management Responsibility for Navy Mine 
          Countermeasures Programs...............................   256
      Section 244--Program to Accelerate the Introduction of 
          Innovative Technology in Defense Acquisition Programs..   256

TITLE III--OPERATION AND MAINTENANCE.............................   258
  OVERVIEW.......................................................   258
  ITEMS OF SPECIAL INTEREST......................................   289
    Budget Request Adjustments...................................   289
      Department of the Army Adjustments: [in millions of 
          dollars]...............................................   289
      Department of the Navy Adjustments: [in millions of 
          dollars]...............................................   289
      Department of the Air Force Adjustments: [in millions of 
          dollars]...............................................   289
      Office, Secretary of Defense Adjustments: [in millions of 
          dollars]...............................................   289
      Defense-wide Activities Adjustments: [in millions of 
          dollars]...............................................   290
      Advisory and Assistance Services...........................   290
      Excess Foreign Currencies Reductions.......................   290
      Strategic Sourcing (A-76)..................................   290
    Other Items of Special Interest..............................   291
      Corrosion Prevention and Control...........................   291
      Information Systems........................................   292
      Enterprise Resource Planning...............................   292
    Environmental Issues.........................................   292
      Environmental Restoration Activities.......................   292
      Vernon Hills NIKE Missile Site.............................   293
    Morale, Welfare, and Recreation Issues.......................   293
      Access to Slot Machines....................................   293
      Military Exchange Private Label Manufacturers..............   293
    Other Issues.................................................   294
      Army's Capital Investment Program for Depot Facilities.....   294
      Army Workload and Performance System.......................   294
      Automated Document Conversion System Program...............   295
      Automatic Inventory Technology.............................   295
      Commercial Technologies for Maintenance Activities.........   295
      Distance Learning Implementation Program...................   296
      Hunter Tactical Unmanned Aerial Vehicle....................   296
      Navy-Marine Corps Intranet.................................   296
      Non-nuclear Ship Maintenance...............................   297
  LEGISLATIVE PROVISIONS.........................................   297
    Subtitle A--Authorization Of Appropriations..................   297
      Section 301--Operation and Maintenance Funding.............   297
      Section 302--Working Capital Funds.........................   297
      Section 303--Armed Forces Retirement Home..................   297
      Section 304--Transfer From National Defense Stockpile 
          Transaction Fund.......................................   297
    Subtitle B--Environmental Provisions.........................   298
      Section 311--Inventory of Explosive Risk Sites at Former 
          Military Ranges........................................   298
      Section 312--National Security Impact Statements...........   298
      Section 313--Reimbursement for Certain Costs in Connection 
          with Hooper Sands Site, South Berwick, Maine...........   298
      Section 314--River Mitigation Studies......................   298
      Section 315--Elimination of Annual Report on Contractor 
          Reimbursement for Costs of Environmental Response 
          Actions................................................   298
    Subtitle C--Commissaries and Nonappropriated Fund 
        Instrumentalities........................................   298
      Section 321--Reserve Component Commissary Benefits.........   298
      Section 322--Reimbursement for Noncommissary Use of 
          Commissary Facilities..................................   298
      Section 323--Civil Recovery for Nonappropriated Fund 
          Instrumentality Costs Related to Shoplifting...........   299
    Subtitle D--Workforce and Depot Issues.......................   299
      Section 331--Fiscal year 2002 Limitations on Workforce 
          Reviews................................................   299
      Section 332--Applicability of Core Logistics Capability 
          Requirements to Nuclear Aircraft Carriers..............   299
      Section 333--Continuation of Contractor Manpower Reporting 
          System in Department of the Army.......................   299
      Section 334--Limitation on Expansion of Wholesale Logistics 
          Modernization Program..................................   300
      Section 335--Pilot Project for Exclusion of Certain 
          Expenditures from Limitation on Private Sector 
          Performance of Depot-Level Maintenance.................   300
      Section 336--Protections for Purchasers of Articles and 
          Services Manufactured or Performed by Working-Capital 
          Funded Industrial Facilities of the Department of 
          Defense................................................   300
    Subtitle E--Defense Dependents Education.....................   300
      Section 341--Assistance to Local Educational Agencies that 
          Benefit Dependents of Members of the Armed Forces and 
          Department of Defense Civilian Employees...............   300
      Section 342--Availability of Auxiliary Services of Defense 
          Dependents' Education System for Dependents Who Are 
          Home School Students...................................   300
      Section 343--Report Regarding Compensation for Teachers 
          Employed in Teaching Positions in Overseas Schools 
          Operated by the Department of Defense..................   301
    Subtitle F--Other Matters....................................   301
      Section 351--Availability of Excess Defense Personal 
          Property to Support Department of Veterans Affairs 
          Initiative to Assist Homeless Veterans.................   301
      Section 352--Continuation of Limitations on Implementation 
          of Navy-Marine Corps Intranet Contract.................   301
      Section 353--Completion and Evaluation of Current 
          Demonstration Programs to Improve Quality of Personal 
          Property Shipments of Members..........................   301
      Section 354--Expansion of Entities Eligible for Loan, Gift, 
          and Exchange of Documents, Historical Artifacts, and 
          Obsolete Combat Materiel...............................   301
    Subtitle G--Service Contracting Reform.......................   302
      Section 361--Short Title...................................   302
      Section 362--Required Cost Savings Level for Change of 
          Function to Contractor Performance.....................   302
      Section 363--Applicability of Study and Reporting 
          Requirements to New Commercial or Industrial Type 
          Functions..............................................   302
      Section 364--Repeal of Waiver for Small Function...........   302
      Section 365--Requirement for Equity in Public-Private 
          Competitions...........................................   302
      Section 366--Reporting Requirements Regarding Department of 
          Defense's Service Contractor Workforce.................   302

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS......................   303
  LEGISLATIVE PROVISIONS.........................................   303
    Subtitle A--Active Forces....................................   303
      Section 401--End Strengths for Active Forces...............   303
      Section 402--Revision in Permanent End Strength Minimum 
          Levels.................................................   303
    Subtitle B--Reserve Forces...................................   303
      Section 411--End Strengths for Selected Reserve............   303
      Section 412--End Strengths for Reserves on Active Duty in 
          Support of the Reserves................................   304
      Section 413--End Strength for Military Technicians (Dual 
          Status)................................................   304
      Section 414--Fiscal Year 2002 Limitation on Non-Dual Status 
          Technicians............................................   304
      Section 415--Limitations on Numbers of Reserve Personnel 
          Serving on Active Duty or Full-Time National Guard Duty 
          in Certain Grades for Administration of Reserve 
          Components.............................................   305
    Subtitle C--Other Matters Relating to Personnel Strengths....   305
      Section 421--Increase in Percentage by Which Active 
          Component End Strengths for any fiscal year may be 
          increased..............................................   305
      Section 422--Active Duty End Strength Exemption for 
          National Guard and Reserve Personnel Performing Funeral 
          Honors Functions.......................................   305
      Section 423--Increase in Authorized Strengths for Air Force 
          Officers on Active Duty in the Grade of Major..........   305
    Subtitle D--Authorization of Appropriations..................   305
      Section 431--Authorization of Appropriations for Military 
          Personnel..............................................   305

TITLE V--MILITARY PERSONNEL POLICY...............................   307
  OVERVIEW.......................................................   307
  ITEMS OF SPECIAL INTEREST......................................   307
      Alternative Recruiting Media...............................   307
      Army Reserve Military Technician Positions.................   308
      Defense Prisoner of War/Missing in Action Office...........   308
      Improved Use of Existing Military Centers for Scientific 
          and Technological Education............................   309
      Review of General and Flag Officer Authorizations..........   309
      Uniting Through Reading....................................   309
  LEGISLATIVE PROVISIONS.........................................   310
    Subtitle A--General Personnel Management Authorities.........   310
      Section 501--Enhanced Flexibility for Management of Senior 
          General and Flag Officer Positions.....................   310
      Section 502--Original Appointments in Regular Grades for 
          Academy Graduates and Certain other New Officers.......   310
      Section 503--Temporary Reduction of the Time-in-Grade 
          Requirement for Eligibility for Promotion for Certain 
          Active-Duty List Officers in Grades of First Lieutenant 
          and Lieutenant (Junior Grade)..........................   310
      Section 504--Increase in Senior Enlisted Active Duty Grade 
          Limit for Navy, Marine Corps, and Air Force............   311
      Section 505--Authority for Limited Extension of Medical 
          Deferment of Mandatory Retirement or Separation........   311
      Section 506--Authority for Limited Extension on Active Duty 
          of Members Subject to Mandatory Retirement or 
          Separation.............................................   311
      Section 507--Clarification of Disability Severance Pay 
          Computation............................................   311
      Section 508--Officer in Charge of United States Navy Band..   311
      Section 509--One-Year Extension of Expiration Date for 
          Certain Force Management Authorities...................   311
    Subtitle B--Reserve Component Personnel Policy...............   311
      Section 511--Placement on Active-Duty List of Certain 
          Reserve Officers on Active Duty for a Period of Three 
          Years or Less..........................................   312
      Section 512--Expanded Application of Reserve Special 
          Selection Boards.......................................   312
      Section 513--Exception to Baccalaureate Degree Requirement 
          for Appointment of Reserve Officers to Grades Above 
          First Lieutenant.......................................   312
      Section 514--Improved Disability Benefits for Certain 
          Reserve Component Members..............................   312
      Section 515--Time-in-Grade Requirement for Reserve 
          Component Officers with a Non-Service Connected 
          Disability.............................................   312
      Section 516--Reserve Members Considered to be Deployed for 
          Purposes of Personnel Tempo Management.................   313
      Section 517--Funeral Honors Duty Performed by Reserve and 
          Guard Members to be Treated as Inactive-Duty Training 
          for Certain Purposes...................................   313
      Section 518--Members of the National Guard Performing 
          Funeral Honors Duty While in Non-Federal Status........   313
      Section 519--Use of Military Leave for Funeral Honors Duty 
          by Reserve Members and National Guardsmen..............   313
    Subtitle C--Joint Specialty Officers and Joint Professional 
        Military Education.......................................   313
      Section 521--Nominations for Joint Specialty...............   313
      Section 522--Joint Duty Credit.............................   314
      Section 523--Retroactive Joint Service Credit for Duty in 
          Certain Joint Task Forces..............................   315
      Section 524--Revision to Annual Report on Joint Officer 
          Management.............................................   315
      Section 525--Requirement for Selection for Joint Specialty 
          Before Promotion to General or Flag Officer Grade......   315
      Section 526--Independent Study of Joint Officer Management 
          and Joint Professional Military Education Reforms......   316
      Section 527--Professional Development Education............   316
      Section 528--Authority for National Defense University to 
          Enroll Certain Private Sector Civilians................   316
      Section 529--Continuation of Reserve Component Professional 
          Military Education Test................................   316
    Subtitle D--Military Education and Training..................   317
      Section 531--Defense Language Institute Foreign Language 
          Center.................................................   317
      Section 532--Authority for the Marine Corps University to 
          Award Degree of Master of Strategic Studies............   317
      Section 533--Increase in Number of Foreign Students 
          Authorized to be Admitted to the Service Academies.....   317
      Section 534--Increase in Maximum Age for Appointment as a 
          Cadet or Midshipman in Senior Reserve Officer Training 
          Corps Scholarship Programs.............................   317
      Section 535--Active Duty Participation as a Cadet or 
          Midshipman in Senior ROTC Advanced Training............   317
      Section 536--Authority to Modify the Service Obligation of 
          Certain ROTC Cadets in Military Junior Colleges 
          Receiving Financial Assistance.........................   317
      Section 537--Modification of Nurse Officer Candidate 
          Accession Program Restriction on Students Attending 
          Educational Institutions with Senior Reserve Officers' 
          Training Programs......................................   318
      Section 538--Repeal of Limitation on Number on Junior 
          Reserve Officers' Training Corps (JROTC) Units.........   318
      Section 539--Reserve Health Professionals Stipend Program 
          Expansion..............................................   318
      Section 540--Housing Allowance for the Chaplain for the 
          Corps of Cadets, United States Military Academy........   318
    Subtitle E--Decorations, Awards, and Commendations...........   318
      Section 541--Authority for Award of the Medal of Honor to 
          Humbert R. Versace for Valor During the Vietnam War....   318
      Section 542--Review Regarding Award of Medal of Honor to 
          Certain Jewish American and Hispanic American War 
          Veterans...............................................   318
      Section 543--Authority to Issue Duplicate Medal of Honor...   319
      Section 544--Authority to Replace Stolen Military 
          Decorations............................................   319
      Section 545--Waiver of Time Limitations for Award of Navy 
          Distinguished Flying Cross to Certain Persons..........   319
      Section 546--Korea Defense Service Medal...................   319
      Section 547--Cold War Service Medal........................   319
      Section 548--Option to Convert Award of Armed Forces 
          Expeditionary Medal Awarded for Operation Frequent Wind 
          to Vietnam Service Medal...............................   319
    Subtitle F--Matters Relating to Voting.......................   320
      Section 551--Voting Assessments and Assistance for Members 
          of the Uniformed Services..............................   320
      Section 552--Electronic Voting Demonstration Project.......   320
    Subtitle G--Matters Relating to Military Spouses and Family 
        Members..................................................   320
      Section 561--Improved Financial and Other Assistance to 
          Military Spouses for Job Training and Education........   320
      Section 562--Authority to Conduct Surveys of Dependents and 
          Survivors of Military Retirees.........................   321
      Section 563--Clarification of Treatment of Classified 
          Information Concerning Persons in a Missing Status.....   321
      Section 564--Transportation to Annual Meeting of Next-of-
          Kin of Persons Unaccounted for from Conflicts after 
          World War II...........................................   321
      Section 565--Amendments to Charter of Defense Task Force on 
          Domestic Violence......................................   321
    Subtitle H--Military Justice and Legal Matters...............   322
      Section 571--Requirement that Courts-Martial Consist of Not 
          Less than 12 Members in Capital Cases..................   322
      Section 572--Right of Convicted Accused to Request 
          Sentencing by Military Judge...........................   322
      Section 573--Codification of Requirement for Regulations 
          for Delivery of Military Personnel to Civil Authorities 
          When Charged with Certain Offenses.....................   323
      Section 574--Authority to Accept Voluntary Legal Services 
          for Members of the Armed Foces.........................   323
    Subtitle I--Other Matters....................................   323
      Section 581--Shipment of Privately Owned Vehicles When 
          Making Permanent Change of Station Moves Within the 
          United States..........................................   323
      Section 582--Payment of Vehicle Storage Costs in Advance...   323
      Section 583--Permanent Authority for Use of Military 
          Recruiting Funds for Certain Expenses at Department of 
          Defense Recruiting Functions...........................   323
      Section 584--Clarification of Military Recruiter Access to 
          Secondary School Directory Information About Students..   323
      Section 585--Repeal of Requirement for Final Comptroller 
          General Report Relating to Army end Strength 
          Allocations............................................   324
      Section 586--Posthumous Army Commission in the Grade of 
          Captain in the Chaplains corps to Ella E. Gibson for 
          Service as Chaplain of the First Wisconsin Heavy 
          Artillery Regiment During the Civil War................   324
      Section 587--National Guard Challenge Program..............   324
      Section 588--Payment of FEHBP Premiums for Certain 
          Reservists Called to Active Duty in Support of 
          Contingency Operations.................................   324
      Section 589--18-month Enlistment Pilot Program.............   324
      Section 590--Per Diem Allowance for Lengthy or Numerous 
          Deployments............................................   325
      Section 591--Congressional Review Period for Change in 
          Ground Combat Exclusion Policy.........................   326

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS..............   327
  OVERVIEW.......................................................   327
  ITEMS OF SPECIAL INTEREST......................................   328
      Additional Reporting Instructions Concerning the 
          Supplemental Subsistence Allowance for Low-Income 
          Members with Dependents................................   328
      Personal and Family Financial Management Programs..........   328
      The Right of Former Prisoners of War Forced to Work as 
          Slave Laborers During World War II to Sue Japanese 
          Corporations for Mistreatment..........................   329
  LEGISLATIVE PROVISIONS.........................................   329
    Subtitle A--Pay and Allowances...............................   329
      Section 601--Increase in Basic Pay for Fiscal Year 2002....   329
      Section 602--Basic Pay Rate for Certain Reserve 
          Commissioned Officers with Prior Service as an Enlisted 
          Member or Warrant Officer..............................   329
      Section 603--Subsistence Allowances........................   329
      Section 604--Eligibility for Basic Allowance for Housing 
          While Between Permanent Duty Stations..................   330
      Section 605--Uniform Allowance for Officers................   330
      Section 606--Family Separation Allowance for Certain 
          Members Electing to Serve Unaccompanied Tour of Duty...   330
    Subtitle B--Bonuses and Special and Incentive Pays...........   330
      Section 611--One-Year Extension of Certain Bonus and 
          Special Pay Authorities for Reserve Forces.............   330
      Section 612--One-Year Extension of Certain Bonus and 
          Special Pay Authorities for Nurse Officer Candidates, 
          Registered Nurses, and Nurse Anesthetists..............   331
      Section 613--One-Year Extension of Other Bonuses and 
          Special Pays Authorities...............................   331
      Section 614--Conforming Accession Bonus for Dental Officers 
          Authority with Authorities for Other Special Pay and 
          Bonuses................................................   331
      Section 615--Additional Type of Duty Resulting in 
          Eligibility for Hazardous Duty Incentive Pay...........   331
      Section 616--Equal Treatment of Reservists Performing 
          Inactive-Duty Training for Receipt of Aviation Career 
          Incentive Pay..........................................   331
      Section 617--Secretarial Discretion in Prescribing 
          Submarine Duty Incentive Pay Rates.....................   331
      Section 618--Imposition of Critical Wartime Skill 
          Requirement for Eligibility for Individual Ready 
          Reserve Bonus..........................................   332
      Section 619--Installment Payment Authority for 15-year 
          Career Status Bonus....................................   332
      Section 620--Accession Bonus for New Officers..............   332
    Subtitle C--Travel and Transportation Allowances.............   332
      Section 631--Minimum Per Diem Rate for Travel and 
          Transportation Allowance for Travel Performed Upon a 
          Change of Permanent Station and Certain Other Travel...   332
      Section 632--Payment or Reimbursement of Temporary 
          Subsistence Expenses...................................   332
      Section 633--Increased Weight Allowance for Transportation 
          of Baggage and Household Effects for Junior Enlisted 
          Members................................................   332
      Section 634--Reimbursement of Members for Mandatory Pet 
          Quarantine Fees for Household Pets.....................   333
      Section 635--Availability of Dislocation Allowance for 
          Married Member, Whose Spouse is a Member, Assigned to 
          Military Family Housing................................   333
      Section 636--Elimination of Prohibition on Receipt of 
          Dislocation Allowance by Members Ordered to First Duty 
          Station................................................   333
      Section 637--Partial Dislocation Allowance Authorized for 
          Housing Moves Ordered for Government Convenience.......   333
      Section 638--Allowances for Travel Performed in Connection 
          with Members Taking Authorized Leave Between 
          Consecutive Overseas Tours.............................   333
      Section 639--Funded Student Travel as Part of School-
          Sponsored Exchange Programs............................   334
    Subtitle D--Retirement and Survivor Benefit Matters..........   334
      Section 641--Contingent Authority for Concurrent Receipt of 
          Military Retired Pay and Veterans' Disability 
          Compensation...........................................   334
    Subtitle E--Other Matters....................................   334
      Section 651--Funeral Honors Duty Allowance for Retired 
          Members................................................   334

TITLE VII--HEALTH CARE PROVISIONS................................   335
  OVERVIEW.......................................................   335
  ITEMS OF SPECIAL INTEREST......................................   336
      Health Care Benefits for Members of the Reserve Components.   336
      Military Health Care System Information Management.........   336
      North Chicago Department of Veterans Affairs Medical Center 
          and Naval hospital, Great Lakes, Illinois..............   337
      TRICARE in Illinois........................................   337
  LEGISLATIVE PROVISIONS.........................................   338
    Subtitle A--TRICARE Program..................................   338
      Section 701--Implementing Cost-Effective Payment Rates 
          Under the TRICARE Program..............................   338
      Section 702--Waiver of Nonavailability Statement or 
          Preauthorization Requirement...........................   338
      Section 703--Improvements in Administration of the TRICARE 
          Program................................................   338
      Section 704--Sub-Acute and Long-Term Care Program Reform...   339
      Section 705--Reimbursement of Travel Expenses of a Parent, 
          Guardian or Responsible Family Member of a Minor 
          Covered Beneficiary....................................   339
    Subtitle B--Other Matters....................................   339
      Section 711--Prohibition Against Requiring Military 
          Retirees to Receive Health Care Solely Through the 
          Department of Defense..................................   339
      Section 712--Trauma and Medical Care Pilot Program.........   339
      Section 713--Enhancement of Medical Product Development....   340
      Section 714--Repeal of Obsolete Report Requirement.........   340
      Section 715--Clarifications and Improvements Regarding the 
          Department of Defense Medicare-Eligible Retiree Health 
          Care Fund..............................................   340

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND 
    RELATED MATTERS..............................................   341
  ITEMS OF SPECIAL INTEREST......................................   341
    Extraordinary Contractual Actions............................   341
  LEGISLATIVE PROVISIONS.........................................   341
    Subtitle A--Acquisition Policy and Management................   341
      Section 801--Acquisition Milestones........................   341
      Section 802--Acquisition Workforce Qualifications..........   341
      Section 803--Two-Year Extension of Program Applying 
          Simp342lified Procedures to Certain Commercial Items...   342
      Section 804--Contracts for Services to Be Performed Outside 
          the United States......................................   342
      Section 805--Codification and Modification of ``Berry 
          Amendment'' Requirements...............................   342
    Subtitle B--Erroneous Payments Recovery......................   342
      Section 811--Short Title...................................   342
      Section 812--Identification of Errors Made by Executive 
          Agencies in Payments to Contractors and Recovery of 
          Amounts Erroneously Paid...............................   342
      Section 813--Disposition of Recovered Funds................   343
      Section 814--Sources of Recovery Services..................   343
      Section 815--Management Improvement Programs...............   343
      Section 816--Reports.......................................   343
      Section 817--Relationship to Authority of Inspectors 
          General................................................   343
      Section 818--Privacy Protections...........................   343
      Section 819--Definition....................................   343

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANGEMENT.......   344
  ITEMS OF SPECIAL INTEREST......................................   344
      Regional Centers and China Center..........................   344
  LEGISLATIVE PROVISIONS.........................................   344
      Section 901--Further Reductions in Defense Acquisition and 
          Support Workforce......................................   344
      Section 902--Sense of Congress on Establishment of an 
          Office of Transformation in the Department of Defense..   345
      Section 903--Revised Joint Report On Establishment of 
          National Collaborative Information Analysis Capability.   346
      Section 904--Elimination of Triennial Report by Chairman of 
          the Joint Chiefs of Staff on Roles and Missions of the 
          Armed Forces...........................................   346
      Section 905--Repeal of Requirement for Semiannual Reports 
          Through March 2003 on Activities of Joint Requirements 
          Oversight Council......................................   346
      Section 906--Correction of References to Air Mobility 
          Command................................................   346
      Section 907--Organizational Alignment Change for Director 
          for Expeditionary Warfare..............................   347

TITLE X--GENERAL PROVISIONS......................................   348
  ITEMS OF SPECIAL INTEREST......................................   348
    Arms Control Implementation..................................   348
    Counter-Drug Activities......................................   348
      Overview...................................................   348
      Items of Special Interest..................................   349
        Counter-drug tanker operations...........................   349
        Operation Caper Focus....................................   349
        Peru support.............................................   349
        Southwest border fence...................................   349
        Tethered Aerostat Radar System...........................   349
  OTHER MATTERS..................................................   350
      Classification of Foreign Military Training Reports........   350
      Counter-Drug Forward Operating Locations...................   350
      Information Security Scholarship Program...................   350
      Potential Reallocation of Radio Frequency Spectrum for 
          Third Generation Mobile Wireless Communications........   350
  LEGISLATIVE PROVISIONS.........................................   352
    Subtitle A--Financial Matters................................   352
      Section 1001--Transfer Authority...........................   352
      Section 1002--Incorporation of Classified Annex............   352
      Section 1003--Limitation on Funds for Bosnia and Kosovo 
          Peacekeeping Operations for Fiscal Year 2002...........   352
      Section 1004--Increase in Limitations on Administrative 
          Authority of the Navy to Settle Admiralty Claims.......   353
    Subtitle B--Naval Vessels....................................   353
      Section 1011--Revision in Types of Excess Naval Vessels for 
          which Approval by Law Is Required for Disposal to 
          Foreign Nations........................................   353
    Subtitle C--Counter-Drug Activities..........................   353
      Section 1021--Extension of Reporting Requirement Regarding 
          Department of Defense Expenditures to Support Foreign 
          Counter-Drug Activities................................   353
      Section 1022--Authority to Transfer Tracker Aircraft 
          Currently Used by Armed Forces for Counter-Drug 
          Purposes...............................................   354
      Section 1023--Authority to Transfer Tethered Aerostat Radar 
          System Currently Used by Armed Forces for Counter-Drug 
          Purposes...............................................   354
    Subtitle D--Reports..........................................   354
      Section 1031--Requirement that Department of Defense 
          Reports to Congress be Accompanied by Electronic 
          Version................................................   354
      Section 1032--Report on Department of Defense Role in 
          Homeland Security Matters..............................   354
      Section 1033--Revision of Annual Report to Congress on 
          National Guard and Reserve Component Equipment.........   354
    Subtitle E--Other Matters....................................   355
      Section 1041--Department of Defense Gift Authorities.......   355
      Section 1042--Termination of Referendum Requirement 
          Regarding Continuation of Military Training on Island 
          of Vieques, Puerto Rico, and Imposition of Additional 
          conditions on closure of Live-Fire Training Range......   355
      Section 1043--Repeal of Limitation on Reductions in 
          Peacekeeper ICBM Missiles..............................   355
      Section 1044--Sense of Congress on the Importance of the 
          Kwajalein Missile Range/Ronald Reagan Defense 
          Initiative Test Site at Kwajalein Atoll................   355
      Section 1045--Transfer of Vietnam Era F-4 Aircraft to 
          Nonprofit Museum.......................................   356
      Section 1046--Bomber Force Structure.......................   356
      Section 1047--Technical and Clerical Amendments............   356

TITLE XI--CIVILIAN PERSONNEL.....................................   357
  LEGISLATIVE PROVISIONS.........................................   357
      Section 1101--Undergraduate Training Program for Employees 
          of the National Imagery and Mapping Agency.............   357
      Section 1102--Pilot Program for Payment of Retraining 
          Expenses...............................................   357
      Section 1103--Payment of Expenses to Obtain Professional 
          Credentials............................................   357
      Section 1104--Retirement Portability Elections for Certain 
          Department of Defense and Coast Guard Employees........   357
      Section 1105--Removal of Requirement that Granting Civil 
          Service Compensatory Time be Based on Amount of 
          Irregular or Occasional Overtime Work..................   357
      Section 1106--Applicability of Certain Laws to Certain 
          Individuals Assigned to Work in the Federal Government.   358
      Section 1107--Limitation on Premium Pay....................   358
      Section 1108--Use of Common Occupational and Health 
          Standards as a Basis for Differential Payments Made as 
          a Consequence of Exposure to Asbestos..................   358
      Section 1109--Authority for Designated Civilian Employees 
          Abroad to Act as a Notary..............................   358
      Section 1110--``Monroney Amendment'' Restored to its Prior 
          Form...................................................   358

TITLE XII--MATTERS RELATING TO OTHER NATIONS.....................   359
  LEGISLATIVE PROVISIONS.........................................   359
      Section 1201--Clarification of Authority to Furnish Nuclear 
          Test Monitoring Equipment to Foreign Governments.......   359
      Section 1202--Acquisition of Logistical Support for 
          Security Forces........................................   359
      Section 1203--Report on the Sale and Transfer of Military 
          Hardware, Expertise, and Technology from States of the 
          Former Soviet Union to the People's Republic of China..   360
      Section 1204--Limitation on Funding for Joint Data Exchange 
          Center.................................................   360
      Section 1205--Extension of Authority to Provide Assistance 
          Under Weapons of Mass Destruction Act for Support of 
          United Nations-Sponsored Efforts to Inspect and Monitor 
          Iraqi Weapons Activities...............................   360
      Section 1206--Repeal of Requirement for Reporting to 
          Congress on Military Deployments to Haiti..............   361
      Section 1207--Report by Comptroller General on Provision of 
          Defense Articles, Services, and Military Education and 
          Training to Foreign Countries and International 
          Organizations..........................................   361
      Section 1208--Limitation on Number of Military Personnel in 
          Colombia...............................................   361

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE 
    FORMER SOVIET UNION..........................................   362
  OVERVIEW.......................................................   362
  ITEMS OF SPECIAL INTEREST......................................   364
    Arms Elimination Projects in Russia..........................   364
    Arms Elimination Projects in Ukraine.........................   365
    Biological Weapons Proliferation Prevention in Russia........   365
    Chemical Weapons Destruction in Russia.......................   365
    Defense and Military Contacts................................   367
    Elimination of Plutonium Production in Russia................   367
    Fissile Material Processing and Packaging....................   368
    Fissile Material Storage Facility............................   368
    Nuclear Weapons Storage Security in Russia...................   368
    Nuclear Weapons Transportation Security......................   368
    Other Assessments and Administrative Support.................   368
    Weapons of Mass Destruction Infrastructure Elimination in 
        Kazakhstan...............................................   369
    Weapons of Mass Destruction Infrastructure Elimination in 
        Ukraine..................................................   369
  LEGISLATIVE PROVISIONS.........................................   369
      Section 1301--Specification of Cooperative Threat Reduction 
          Programs and Funds.....................................   369
      Section 1302--Funding Allocations..........................   369
      Section 1303--Prohibition Against Use of Funds Until 
          Submission of Reports..................................   369
      Section 1304--Report on Use of Revenue Generated by 
          Activities Carried Out Under Cooperative Threat 
          Reduction Programs.....................................   370
      Section 1305--Prohibition Against Use of Funds for Second 
          Wing of Fissile Material Storage Facility..............   370
      Section 1306--Prohibition on Use of Funds for Construction 
          or Refurbishment of Fossil Fuel Energy Plants..........   370
      Section 1307--Reports on Activities and Assistance Under 
          Cooperative Threat Reduction Programs..................   370
      Section 1308--Report on Responsibility for Carrying Out 
          Cooperative Threat Reduction Programs..................   370
      Section 1309--Chemical Weapons Destruction.................   370

TITLE XIV--DEFENSE SPACE REORGANIZATION..........................   371
  OVERVIEW.......................................................   371
  LEGISLATIVE PROVISIONS.........................................   371
      Section 1401--Short Title..................................   371
      Section 1402--Authority to Establish Position of Under 
          Secretary of Defense for Space, Intelligence, and 
          Information............................................   371
      Section 1403--Authority to Designate Under Secretary of the 
          Air Force as Acquisition Executive for Space of the 
          Department of Defense..................................   371
      Section 1404--Major Force Program Category for Space 
          Programs...............................................   371
      Section 1405--Comptroller General Assessment of 
          Implementation of Recommendations of Space Commission..   371
      Section 1406--Commander of Air Force Space Command.........   372
      Section 1407--Authority to Establish Separate Career Field 
          in the Air Force for Space.............................   372

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   373
  PURPOSE........................................................   373
  MILITARY CONSTRUCTION OVERVIEW.................................   373

TITLE XXI--ARMY..................................................   396
  SUMMARY........................................................   396
  ITEMS OF SPECIAL INTEREST......................................   396
    Planning and Design..........................................   396
  LEGISLATIVE PROVISIONS.........................................   396
      Section 2101--Authorized Army Construction and Land 
          Acquisition Projects...................................   396
      Section 2102--Family Housing...............................   396
      Section 2103--Improvements to Military Family Housing Units   396
      Section 2104--Authorization of Appropriations, Army........   396
      Section 2105--Modification of Authority to Carry Out 
          Certain Fiscal Year 2001 Project.......................   396

TITLE XXII--NAVY.................................................   398
  SUMMARY........................................................   398
  ITEMS OF SPECIAL INTEREST......................................   398
    Improvements to Military Family Housing......................   398
    Planning and Design..........................................   398
  LEGISLATIVE PROVISIONS.........................................   398
      Section 2201--Authorized Navy Construction and Land 
          Acquisition Projects...................................   398
      Section 2202--Family Housing...............................   398
      Section 2203--Improvements to Military Family Housing Units   398
      Section 2204--Authorization of Appropriations, Navy........   399
      Section 2205--Modification of Authority to Carry Out Fiscal 
          Year 2000 Project......................................   399

TITLE XXIII--AIR FORCE...........................................   400
  SUMMARY........................................................   400
  ITEMS OF SPECIAL INTEREST......................................   400
    Improvements to Military Family Housing......................   400
  LEGISLATIVE PROVISIONS.........................................   400
      Section 2301--Authorized Air Force Construction and Land 
          Acquisition Projects...................................   400
      Section 2302--Family Housing...............................   400
      Section 2303--Improvements to Military Family Housing Units   400
      Section 2304--Authorization of Appropriations, Air Force...   400
      Section 2305--Modification of Authority to Carry Out 
          Certain Fiscal Year 2001 Project.......................   401

TITLE XXIV--DEFENSE AGENCIES.....................................   402
  SUMMARY........................................................   402
  LEGISLATIVE PROVISIONS.........................................   402
      Section 2401--Authorized Defense Agencies Construction and 
          Land Acquisition Projects..............................   402
      Section 2402--Energy Conservation Project..................   402
      Section 2403--Authorization of Appropriations, Defense 
          Agencies...............................................   402
      Section 2404--Modification of Authority to Carry Out Fiscal 
          Year 2001 Project......................................   402
      Section 2405--Modification of Authority to Carry Out Fiscal 
          Year 2000 Project......................................   402
      Section 2406--Modification of Authority to Carry Out Fiscal 
          Year 1999 Project......................................   403
      Section 2407--Modification of Authority To Carry Out Fiscal 
          Year 1995 Project......................................   403
      Section 2408--Prohibition on Expenditures to Develop 
          Forward Operating Location on Aruba for United States 
          Southern Command Counter-Drug Detection and Monitoring 
          Flights................................................   403

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE.....   404
  SUMMARY........................................................   404
  LEGISLATIVE PROVISIONS.........................................   404
      Section 2501--Authorized NATO Construction and Land 
          Acquisition Projects...................................   404
      Section 2502--Authorization of Appropriations, NATO........   404

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES..................   405
  SUMMARY........................................................   405
  ITEMS OF SPECIAL INTEREST......................................   405
    Planning and Design, Air National Guard......................   405
    Unspecified Minor Construction, Army National Guard..........   405
  LEGISLATIVE PROVISIONS.........................................   405
      Section 2601--Authorized Guard and Reserve Construction and 
          Land Acquisition Projects..............................   405

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS..........   406
  LEGISLATIVE PROVISIONS.........................................   406
      Section 2701--Expiration of Authorizations and Amounts 
          Required to be Specified by Law........................   406
      Section 2702--Extensions of Authorizations of Certain 
          Fiscal Year 1999 Projects..............................   406
      Section 2703--Extension of Authorizations of Certain Fiscal 
          Year 1998 Projects.....................................   406
      Section 2704--Effective Date...............................   406

TITLE XXVIII--GENERAL PROVISIONS.................................   407
  LEGISLATIVE PROVISIONS.........................................   407
    Subtitle A--Military Construction Program and Military Family 
        Housing Changes..........................................   407
      Section 2801--Increase in Certain Unspecified Minor 
          Military Construction Project Thresholds...............   407
      Section 2802--Exclusion of Unforeseen Environmental Hazard 
          Remediation From Limitation on Authorized Cost 
          Variations.............................................   407
      Section 2803--Repeal of Annual Reporting Requirement on 
          Military Construction and Military Family Housing 
          Activities.............................................   407
      Section 2804--Permanent Authorization for Alternative 
          Authority for Acquisition and Improvement of Military 
          Housing................................................   407
    Subtitle B--Real Property and Facilities Administration......   407
      Section 2811--Use of Military Installations for Certain 
          Recreational Activities................................   407
      Section 2812--Base Efficiency Project at Brooks Air Force 
          Base, Texas............................................   408
    Subtitle C--Defense Base Closure and Realignment.............   408
      Section 2821--Lease Back of Base Closure Property..........   408
    Subtitle D--Land Conveyances Generally.......................   408
      Part I--Army Conveyances...................................   408
      Section 2831--Transfer of Jurisdiction, Rock Island 
          Arsenal, Illinois......................................   408
      Section 2832--Modification of Land Conveyance, Fort Dix, 
          New Jersey.............................................   408
      Section 2833--Lease Authority, Fort Derussy, Hawaii........   408
      Section 2834--Land Exchange and Consolidation, Fort Lewis, 
          Washington.............................................   409
      Section 2835--Land Conveyance, Whittier-Anchorage Pipeline 
          Tank Farm, Anchorage, Alaska...........................   409
      Part II--Navy Conveyances..................................   409
      Section 2841--Transfer of Jurisdiction, Centerville Beach 
          Naval Station, Humboldt County, California.............   409
      Section 2842--Land Conveyance, Naval Weapons Industrial 
          Reserve Plant, Toledo, Ohio............................   409
      Section 2843--Modification of Authority for Conveyance of 
          Naval Computer and Telecommunications Station, Cutler, 
          Maine..................................................   410
      Section 2844--Modification of Land Conveyance, Former 
          United States Marine Corps Air Station, Eagle Mountain, 
          Texas..................................................   410
      Section 2845--Land Transfer and Conveyance, Naval Security 
          Group Activity, Winter Harbor, Maine...................   410
      Part III--Air Force Conveyances............................   410
      Section 2851--Water Rights Conveyance, Andersen Air Force 
          Base, Guam.............................................   410
      Section 2852--Reexamination of Land Conveyance, Lowry Air 
          Force Base, Colorado...................................   411
    Subtitle E--Other Matters....................................   411
      Section 2861--Transfer of Jurisdiction for Development of 
          Armed Forces Recreational Facility, Park City, Utah....   411
      Section 2862--Selection of Site for United States Air Force 
          Memorial and Related Land Transfers for the Improvement 
          of Arlington Cemetery, Virginia........................   411
      Section 2863--Management of the Presidio of San Francisco..   412
      Section 2864--Effect of Limitation on Construction of Roads 
          or Highways, Marine Corps Base, Camp Pendleton, 
          California.............................................   412
      Section 2865--Establishment of World War II Memorial at 
          Additional Location on Guam............................   413

TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL..................   415
  LEGISLATIVE PROVISIONS.........................................   415
      Section 2901--Short Title..................................   415
      Section 2902--Withdrawal and Reservation of Lands for 
          National Training Center...............................   415
      Section 2903--Map and Legal Description....................   415
      Section 2904--Management of Withdrawn and Reserved Lands...   415
      Section 2905--Water Rights.................................   415
      Section 2906--Environmental Compliance and Environmental 
          Response Requirements..................................   415
      Section 2907--West Mojave Coordinated Management Plan......   415
      Section 2908--Release of Wilderness Study Areas............   415
      Section 2909--Training Activity Separation From Utility 
          Corridors..............................................   415
      Section 2910--Duration of Withdrawal and Reservation.......   415
      Section 2911--Extension of Initial Withdrawal and 
          Reservation............................................   415
      Section 2912--Termination and Relinquishment...............   416
      Section 2913--Delegation of Authority......................   416

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATION 
    AND OTHER AUTHORIZATIONS.....................................   417

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS......   417
  OVERVIEW.......................................................   417
    Environmental and Other Defense Activities...................   435
      Overview...................................................   435
      Items of Special Interest..................................   435
        Defense Environmental Management Privatization...........   435
        Hanford Site Operations, Richland, Washington............   435
        Plutonium Stabilization and Packaging....................   436
        Post 2006 Completion.....................................   436
    National Nuclear Security Administration.....................   436
      Overview...................................................   436
      Items of Special Interest..................................   436
        Budget Structure of the National Nuclear Security 
            Administration.......................................   436
        Computer Security........................................   438
        Critical Weapons Components..............................   438
        Defense Nuclear Counterintelligence Budget...............   438
        Directed Stockpile Work..................................   438
        Facilities and Infrastructure............................   439
        International Nuclear Safety.............................   439
        Initiatives for Proliferation Prevention and the Nuclear 
            Cities Initiative....................................   440
        National Ignition Facility...............................   440
        National Nuclear Security Administration's Planning, 
            Programming, and Budgeting System....................   441
        National Nuclear Security Administration's Reorganization 
            Plan.................................................   441
        Naval Reactors Program...................................   442
        Recruitment and Retention................................   442
  LEGISLATIVE PROVISIONS.........................................   442
    Subtitle A--National Security Programs Authorizations........   442
      Section 3101--National Nuclear Security Administration.....   442
      Section 3102--Defense Environmental Restoration and Waste 
          Management.............................................   443
      Section 3103--Other Defense Activities.....................   443
      Section 3104--Defense Environmental Management 
          Privatization..........................................   443
      Section 3105--Defense Nuclear Waste Disposal...............   443
    Subtitle B--Recurring General Provisions.....................   443
      Section 3121--Reprogramming................................   443
      Section 3122--Limits on General Plant Projects.............   443
      Section 3123--Limits on Construction Projects..............   443
      Section 3124--Fund Transfer Authority......................   443
      Section 3125--Authority for Conceptual and Construction 
          Design.................................................   444
      Section 3126--Authority for Emergency Planning, Design and 
          Construction Activities................................   444
      Section 3127--Funds Available for All National Security 
          Programs of the Department of Energy...................   444
      Section 3128--Availability of Funds........................   444
      Section 3129--Transfers of Defense Environmental Management 
          Funds at Field Offices of the Department of Energy.....   444
      Section 3130--Transfers of Weapons Activities Funds at 
          National Security Laboratories and Nuclear Weapons 
          Production Facilities..................................   444
    Subtitle C--Program Authorizations, Restrictions, and 
        Limitations..............................................   445
      Section 3131--Termination Date of Office of River 
          Protection, Richland, Washington.......................   445
      Section 3132--Organizational Modifications for National 
          Nuclear Security Administration........................   445
      Section 3133--Consolidation of Nuclear Cities Initiative 
          Program with Initiatives for Proliferation Prevention 
          Program................................................   445
      Section 3134--Disposition of Surplus Plutonium at Savannah 
          River Site, Aiken, South Carolina......................   445
      Section 3135--Support for Public Education in the Vicinity 
          of Los Alamos National Laboratory, New Mexico..........   446

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD.............   447
  LEGISLATIVE PROVISIONS.........................................   447
      Section 3201--Authorization................................   447

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE.........................   448
  LEGISLATIVE PROVISIONS.........................................   448
      Section 3301--Definitions..................................   448
      Section 3302--Authorized Uses of Stockpile Funds...........   448
      Section 3303--Disposal of Excess Materials from the 
          National Defense Stockpile.............................   448
      Section 3304--Expedited Implementation of Authority to 
          Dispose of Cobalt From National Defense Stockpile......   448

TITLE XXXIV--NAVAL PETROLEUM RESERVES............................   449
  LEGISLATIVE PROVISIONS.........................................   449
      Section 3401--Authorization of Appropriations..............   449

TITLE XXXV--MARITIME ADMINISTRATION..............................   450
  ITEMS OF SPECIAL INTEREST......................................   450
      Merchant Marine Academy....................................   450
      Ship Scrapping.............................................   450
      Title XI Loan Guarantee Program............................   451
      Transfer of the Maritime Security Program to the Department 
          of Defense.............................................   451
  LEGISLATIVE PROVISIONS.........................................   451
      Section 3501--Authorization of Appropriations for Fiscal 
          Year 2002..............................................   451
      Section 3502--Define ``War Risks'' to Vessels to Include 
          Confiscation, Expropriation, Nationalization, and 
          Deprivation of the Vessels.............................   451
      Section 3503--Holding Obligor's Cash as Collateral Under 
          Title XI of Merchant Marine Act, 1936..................   452

Departmental Data................................................   453
  Department of Defense Authorization Request....................   453
  Military Construction Authorization Request....................   453
Committee Position...............................................   454
Communications From Other Committees.............................   454
Fiscal Data......................................................   460
  Congressional Budget Office Estimate...........................   460
  Congressional Budget Office Cost Estimate......................   460
  Committee Cost Estimate........................................   483
Oversight Findings...............................................   483
General Performance Goals and Objectives.........................   484
Constitutional Authority Statement...............................   485
Statement of Federal Mandates....................................   485
Roll Call Votes..................................................   485
Changes in Existing Law Made by the Bill, as Reported............   493
Additional and Dissenting Views..................................   706
  Additional views of Lane Evans.................................   708
  Additional views of Tom Allen..................................   710
  Additional views of Ike Skelton, John Spratt, Lane Evans, 
    Silvestre Reyes, Tom Allen, John B. Larson, Loretta Sanchez, 
    James R. Langevin, Rick Larsen, Ellen O. Tauscher, Robert E. 
    Andrews, Cynthia A. McKinney, Adam Smith, Jim Turner, Rod R. 
    Blagojevich, Susan A. Davis, Solomon P. Ortiz, James H. 
    Maloney, Marty Meehan, Vic Snyder, Robert A. Brady, Mike 
    Thompson, Neil Abercrombie, Ciro D. Rodriguez, Baron P. Hill.   706
  Dissenting Views of Cynthia A. McKinney........................   713

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-194

======================================================================

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

                                _______
                                

 September 4, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Stump, from the Committee on Armed Services, submitted the 
                               following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 2586]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Armed Services, to whom was referred the 
bill (H.R. 2586) to authorize appropriations for fiscal year 
2002 for military activities of the Department of Defense, to 
prescribe military personnel strengths for fiscal year 2002, 
and for other purposes, having considered the same, report 
favorably thereon with amendments and recommend that the bill 
as amended do pass.
    The amendments are as follows:
    The amendment strikes all after the enacting clause of the 
bill and inserts a new text which appears in italic type in the 
reported bill.
    The title of the bill is amended to reflect the amendment 
to the text of the bill.

                EXPLANATION OF THE COMMITTEE AMENDMENTS

    The committee adopted an amendment in the nature of a 
substitute during the consideration of H.R. 2586. The title of 
the bill is amended to reflect the amendment to the text of the 
bill. The remainder of the report discusses the bill, as 
amended.

                                PURPOSE

    The bill would--(1) Authorize appropriations for fiscal 
year 2002 for procurement and for research, development, test 
and evaluation (RDT&E); (2) Authorize appropriations for fiscal 
year 2002 for operation and maintenance (O&M) and for working 
capital funds; (3) Authorize for fiscal year 2002: (a) the 
personnel strength for each active duty component of the 
military departments; (b) the personnel strength for the 
Selected Reserve for each reserve component of the armed 
forces; (c) the military training student loads for each of the 
active and reserve components of the military departments; (4) 
Modify various elements of compensation for military personnel 
and impose certain requirements and limitations on personnel 
actions in the defense establishment; (5) Authorize 
appropriations for fiscal year 2002 for military construction 
and family housing; (6) Authorize appropriations for fiscal 
year 2002 for the Department of Energy national security 
programs; (7) Modify provisions related to the National Defense 
Stockpile; and (8) Authorize appropriations for fiscal year 
2002 for the Maritime Administration.

            RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS

    The bill does not generally provide budget authority. The 
bill authorizes appropriations. Subsequent appropriation acts 
provide budget authority. The bill addresses the following 
categories in the Department of Defense budget: procurement; 
research, development, test and evaluation; operation and 
maintenance; working capital funds, military personnel; and 
military construction and family housing. The bill also 
addresses Department of Energy National Security Programs and 
the Maritime Administration.
    Active duty and reserve personnel strengths authorized in 
this bill and legislation affecting compensation for military 
personnel determine the remaining appropriation requirements of 
the Department of Defense. However, this bill does not provide 
authorization of specific dollar amounts for personnel.

                  SUMMARY OF AUTHORIZATION IN THE BILL

    The President requested budget authority of $343.3 billion 
for the national defense budget function for fiscal year 2002. 
Of this amount, the President requested $328.0 billion for the 
Department of Defense (including $10.0 billion for military 
construction and family housing) and $13.8 billion for 
Department of Energy national security programs and the Defense 
Nuclear Facilities Safety Board.
    The committee recommends an overall level of $343.2 billion 
in budget authority. This amount is consistent with the 
discretionary defense spending limitations imposed by the 
Balanced Budget Act of 1997 and it represents an increase of 
approximately $33.3 billion from the amount authorized for 
appropriation by the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398).

                    SUMMARY TABLE OF AUTHORIZATIONS

    The following table provides a summary of the amounts 
requested and that would be authorized for appropriation in the 
bill (in the column labeled ``Budget Authority Implication of 
Committee Recommendation'') and the committee's estimate of how 
the committee's recommendations relate to the budget totals for 
the national defense function. For purposes of estimating the 
budget authority implications of committee action, the table 
reflects the numbers contained in the President's budget for 
proposals not in the committee's legislative jurisdiction.

                    RATIONALE FOR THE COMMITTEE BILL

    To ``provide for the common defense'' is one of the most 
important responsibilities vested in the federal government. 
Article I, section 8, of the Constitution grants Congress the 
power ``to raise and support armies'' and ``to provide and 
maintain a navy,'' in order to provide for the common defense. 
It is a solemn responsibility Congress must exercise with 
diligence, wisdom, and foresight.
    The National Defense Authorization Act for Fiscal Year 2002 
continues the process of rebuilding America's defenses and 
restoring the health of the military. The policies, programs, 
and priorities it supports are intended to ensure continued 
U.S. military preeminence for decades to come and to provide 
America's men and women in uniform with the training and tools 
necessary to deal successfully with the security challenges of 
the future.
    The committee bill would authorize $343.3 billion for 
defense during fiscal year 2002--matching the President's 
amended budget request and marking the most significant 
increase to the defense budget since fiscal year 1986. 
Restoring the health of America's military will take years of 
work. Secretary of Defense Donald Rumsfeld, in testimony before 
the committee on June 28, 2001, noted that a one year increase 
in spending ``does not get us well. The underinvestment went on 
far too long, the gap is too great, and there is no way it can 
be fixed in a year or, in my view, even in six.''
    In the committee's view, significant increases in defense 
spending are long overdue. The committee is pleased with the 
new Administration's recognition that defense spending in the 
post-Cold War era has fallen too far too fast and applauds the 
Administration's commitment to reverse this trend. The U.S. 
military for too long has been living off the defense 
investments made in the 1980s. Military equipment is being 
utilized beyond its service life, weapons systems are becoming 
costlier to maintain, and military readiness has declined 
virtually across the board. The U.S. military has been called 
on to do more with less, deploying with increasing frequency 
around the globe. Morale and quality of life have suffered. 
This is the unfortunate legacy of years of underfunding.
    This year, the challenge facing the Administration and 
Congress is to ensure that the most immediate modernization, 
readiness, and personnel needs are met, while preparing to 
transition the armed forces into a more capable force prepared 
to meet emerging threats.

    The Strategic Defense Review and U.S. National Military Strategy

    The committee supports the efforts of the Department of 
Defense (DOD) to assess defense requirements in light of the 
potential and emerging threats to U.S. interests expected to 
materialize over the next decade and beyond. For the past 
several months, the Department of Defense has been conducting 
an extensive and multifaceted review of U.S. national military 
strategy. Secretary of Defense Donald Rumsfeld formed more than 
a dozen Task Forces to review the assumptions and strategic 
underpinnings of U.S. defense policy. Separate Task Forces were 
established on Strategy, Transformation, Acquisition Reform, 
Quality of Life, Nuclear Forces, Conventional Forces, 
Intelligence and Space, National Missile Defense, and a variety 
of other issues. The underlying premise of these reviews was 
that resources and force levels should flow from strategy, not 
the other way around.
    The results of the DOD strategy review will be incorporated 
into the next Quadrennial Defense Review (QDR), scheduled to be 
completed by September 30, 2001. The results of the QDR will, 
in turn, be factored into the Administration's defense budget 
request for fiscal year 2003. The committee expects that the 
2001 QDR will be strategy-based and not budget-driven. In the 
meantime, U.S. military strategy continues to be guided by the 
tenets outlined in the 1997 QDR. The 1997 QDR, building upon 
its predecessor, the 1993 Bottom-Up Review, postulated that the 
sizing and composition of U.S. military forces should be based 
on the requirement to fight two nearly simultaneous major 
theater wars. This force-sizing construct has been called into 
question by the Administration.
    The Administration has indicated that the two major theater 
war construct may need to be replaced with a different force 
sizing metric. Although Secretary Rumsfeld has cautioned that 
no final decision has been made, he has also noted that DOD is 
``looking carefully at an alternative.'' That alternative would 
be to replace the traditional ``threat-based'' military 
strategy with one that is ``capability-based'' and designed to 
deal with the kinds of asymmetric threats that might emerge in 
the future.
    The committee believes that the two major theater war 
standard has served as a useful planning tool and is concerned 
that its abandonment could be viewed as an attempt to scale 
back U.S. military strategy to conform to budgetary realities. 
Such an approach would be ill-advised. Jettisoning the two 
major theater war construct without an effective alternative 
would lead to acceptance of a greater than prudent level of 
risk. Indeed, Secretary Rumsfeld has stated that ``you don't 
tear down what is unless you have something better....'' The 
committee expects to work closely with the Administration in 
the coming year to ensure that any changes to U.S. military 
strategy are based on sound strategic principles and do not 
result in increased risk to U.S. national security.
    Although Department of Defense officials have emphasized 
the need for the U.S. armed forces to transform themselves into 
a more capable force able to successfully confront the more 
difficult challenges in the future, the Department's budget 
request for fiscal year 2002 is not a ``transformation'' 
budget. At minimum, it properly addresses many of the 
deficiencies that plague existing forces without laying the 
groundwork for significant structural changes. In his testimony 
before the committee on June 28, 2001, Secretary of Defense 
Rumsfeld stated that even a budget of nearly $350 million 
``would just be holding where we are'' and ``would not make a 
significant contribution to transformation.''
    As the Department of Defense wrestles with options for 
transforming the U.S. military in the long-term, the 
committee's approach this year has been guided by an effort to 
develop a defense budget that is more responsive to the post-
Cold War threats faced by the United States and commensurate 
with America's global responsibilities--and, in so doing, to 
ensure that U.S. forces can successfully execute their missions 
at the lowest possible level of risk.

              The Administration's Defense Budget Request

    The President's defense budget request for fiscal year 2002 
reflects the most significant real increase in defense funding 
since the mid-1980s. Nevertheless, despite the increases 
proposed by the Administration this year, serious problems 
continue to exist in readiness, modernization, and quality of 
life. The previous Administration significantly underfunded the 
defense budget and overcommitted U.S. military forces to a 
variety of peacekeeping andhumanitarian missions. The result 
was a high operating tempo, degraded morale, aging equipment, reduced 
training, and decaying infrastructure. General Henry Shelton, Chairman 
of the Joint Chiefs of Staff, testified before the committee on June 
28, 2001, that since 1995 there has been ``a 133 percent increase in 
the number of military personnel committed to joint operations. These 
are real-world events, not exercises, and we are doing it with nine 
percent fewer people.''
    Although the fiscal year 2002 defense budget request 
reflects nearly a $33 billion increase over the fiscal year 
2001 level, significant shortfalls remain unaddressed. In 
particular, the service chiefs have identified more than $32 
billion in critical unfunded requirements in fiscal year 2002, 
roughly twice the amount they identified last year. These 
shortfalls were not addressed in the fiscal year 2001 
supplemental appropriations bill recently passed by the 
Congress and signed by the President. Moreover, the Army is the 
smallest it has been since 1950, the Navy has shrunk to 317 
ships--more than 40 percent fewer than a decade ago and the 
smallest fleet since 1933, and the average age of the Air 
Force's aircraft is 22 years.
    With this in mind, the committee has sought to address in 
this year's budget the most serious aspects of the shortfalls 
in readiness, modernization, and quality of life.

     Restoring the Bond of Trust with Our Men and Women in Uniform

    Ensuring a decent quality of life for military personnel 
and their families remains one of the most important national 
defense priorities. America's military is only as good as the 
people who serve in it. Recruiting and retaining top-notch 
personnel remains vital to ensuring that the U.S. armed forces 
are the best in the world.
    With the efforts of Congress over the past six years, the 
quality of living for U.S. military personnel and their 
families has improved, and recruiting and retention trends have 
improved. Nevertheless, meeting the challenge of recruiting and 
retaining sufficient numbers of high quality personnel remains 
difficult, and the troublesome trend of the continued departure 
of many of the best and brightest mid-career enlisted and 
officer personnel continues.
    Continuing its effort to improve quality of life and ensure 
adequate military pay and bonuses, the committee recommends the 
largest single-year increase in military personnel funding 
since 1985--a total increase of $6.9 billion over the fiscal 
year 2001 level. The committee bill also would fund the largest 
military pay raise since 1982, thereby fully supporting the 
President's proposal to add $1.0 billion to military pay. This 
pay raise provides five to six percent across-the-board pay 
raises for all military personnel, as well as targeted pay 
increases for mid-career service members that range above 10 
percent. In addition, the bill would boost military special pay 
and enhance incentives to join the Reserve Officers Training 
Corps (ROTC). Moreover, the committee bill would improve the 
recruiting and retention efforts of the services and would 
provide for enlistment and re-enlistment bonuses. The committee 
bill also contains the increases for military housing contained 
in the budget request. Further, the committee bill recommends 
an additional effort: innovative programs to reduce the 
significant out-of-pocket costs experienced by military 
personnel as a result of permanent change of station moves. 
Importantly, the committee bill satisfies $95 million of the 
service chiefs' unfunded personnel requirements.
    The committee bill also would increase funding for defense 
medical programs of over $6 billion. With this authorization, 
the committee bill would provide the funding needed this coming 
fiscal year to implement fully the new TRICARE For Life program 
enacted last year.
    These actions follow up on the efforts of Congress last 
year to reform the military health care system and compensation 
practices. The quality of life improvements contained in the 
committee bill this year represent the most significant step 
toward making a real improvement in military quality of life in 
nearly two decades. However, this is just one step forward, and 
real progress in this area will require additional actions over 
the next several years.

                          Enhancing Readiness

    Restoring military readiness remains a key priority for the 
committee, as U.S. military readiness is essential to securing 
America's future as the world's sole superpower. Over the past 
six years, Congress has led the effort to identify and reverse 
the declining state of military readiness. Today, there is 
bipartisan agreement that U.S. military readiness has declined 
due to an increased pace of operations combined with inadequate 
funding and escalating maintenance costs of aging equipment. 
The committee bill would make real progress toward reversing 
this decline by providing significant increases to key 
operations, maintenance, and training accounts.
    Despite the increases in the Administration's fiscal year 
2002 defense budget request, readiness remains a serious 
concern. Existing readiness problems include a shortage of 
spare parts, aging equipment, decaying infrastructure, growing 
equipment and facilities' backlogs, insufficient training, and 
personnel shortages. In the past, essential modernization was 
deferred to provide for near-term readiness requirements. In 
addition, maintaining the readiness of ``first-to-fight'' 
forces has led to the diversion of resources from other 
operational support units, including strategic airlift, 
intelligence, surveillance and reconnaissance, combat service 
support units, and training bases. As General Henry Shelton, 
Chairman of the Joint Chiefs of Staff, testified before the 
committee on June 28, 2001, ``The bottom line is, I do not 
believe that we will be able to sustain our long-term readiness 
under these conditions.''
    Secretary of the Army, Thomas White, testifying before the 
committee on July 18, 2001, stated, ``After a decade of 
underfunding and overworking our force, we are clearly in a 
hole, and getting out will require a significant investment.'' 
Secretary of the Air Force James Roche and Air Force Chief of 
Staff General Michael Ryan, testified before the committee on 
July 11, 2001, that ``overall Air Force readiness is lower than 
any time since June 1987.'' The Chief of Naval Operations, 
Admiral Vern Clark, testified on July 12, 2001, ``The challenge 
of sustaining our current readiness while investing in key 
future capabilities remains a very difficult balancing act. . . 
. [T]his is an area where we do not meet the goals and the 
targets that we need in this budget.'' Despite this challenge, 
Admiral Clark stated, ``I believe this is the best readiness 
budget that we have seen in at least a decade.''
    The committee bill seeks to improve both the near-term and 
long-term readiness of U.S. military forces by addressing 
critical readiness priorities. Specifically, the committee bill 
would increase key readiness accounts by $7.5 billion above the 
fiscal year 2001 level. Unfortunately, the decision to halt 
combined arms naval training on the island of Vieques, Puerto 
Rico, beginning in 2003 will negatively impact the readiness of 
the armed forces. The committee billwould ensure that live-fire 
training could continue on the island until such time as an alternative 
site is found that would provide for at least an equivalent level of 
training.

           Modernizing and Equipping the Force of the Future

    Despite the end of the Cold War, the U.S. military has not 
fully adapted to meet the new challenges of the post-Cold War 
environment. For the United States to ensure that U.S. service 
members retain the technological edge on the battlefields of 
tomorrow--thereby saving lives and winning wars--the U.S. 
military must ensure that it has the weapons, equipment, and 
strategies to successfully meet future challenges.
    While the exact path for transforming the military to meet 
these future challenges is not yet clear, modernizing the force 
with new technologies and advanced capabilities to fight and 
win future conflicts is vital. Until this path is clear, the 
transformation effort must take place on two fronts--
maintaining the current force through a steady procurement 
program and developing revolutionary technologies through an 
aggressive research and development program.
    The committee notes that today's military is continuing to 
live off the investment in equipment made decades ago. In his 
testimony before the committee on June 28, 2001, Secretary 
Rumsfeld stated, ``We have been living off the substantial 
investments of the 1970s and 1980s.''
    Unfortunately, the Administration's request for procurement 
programs was the weakest aspect in an otherwise strong defense 
budget. Secretary White, in testimony before the committee on 
July 18, 2001, stated that ``there will continue to be 
shortfalls in a number of critical areas such as modernization 
and recapitalization of our current force.'' Secretary of the 
Navy, Gordon England, testifying on July 12, 2001, stated, 
``What this increase does not do, however, is adequately 
address our infrastructure and procurement shortfalls.''
    In effect, the fiscal year 2002 amended defense budget 
request for procurement would place modernization efforts on 
hold, pending completion of DOD's strategic review. Instead, 
the committee bill would provide $62 billion ($442.1 million 
more than the President's request) to procure weapons, 
ammunition, and equipment, while careful reprioritization of 
the budget enabled the committee to meet $253.4 million of the 
service chiefs' unfunded requirements. The resulting 
procurement budget will slow the erosion of the force while 
laying the foundation for transformation into the future 
military force.
    By contrast, the Administration's research and development 
(R&D) budget represents the first significant increase in the 
past decade and the first time in six years that the requested 
amount for R&D was greater than the amount provided by Congress 
in the previous year. This significant level of support for R&D 
programs will likely ensure rapid progress in developing 
innovative technologies, deploying ballistic missile defenses, 
and testing and evaluating transformation programs. Therefore, 
the committee bill would provide $47.7 billion ($228.5 million 
more than the President's request and $6.7 billion more than 
the fiscal year 2001 level) for research and development 
programs, including funds for ballistic missile defense 
programs.

           Defending Americans From Ballistic Missile Threats

    Today, Americans at home and abroad are within striking 
range of thousands of ballistic missile warheads. The risk of 
accidental or unauthorized launch of ballistic missiles remains 
real, and the proliferation of missile technology has allowed 
nations like North Korea to develop and test ballistic missiles 
capable of reaching U.S. soil.
    Furthermore, American military forces and allies around the 
world have no effective defense against the ballistic missile 
threat. Over 100,000 U.S. troops in South Korea and Japan live 
under the threat of ballistic missile attack, as do American 
forward-based air and naval forces in Northeast Asia, the 
Mediterranean, and the Persian Gulf. Even vital U.S. allies 
including South Korea, Japan, and Taiwan face known ballistic 
missile threats and have no effective defense.
    Unfortunately, ballistic missiles and weapons of mass 
destruction technology are proliferating faster than the U.S. 
ability to defend against them. Secretary Rumsfeld, in 
testimony before the committee on June 28, 2001, warned against 
underestimating the threat posed by ballistic missiles and the 
weapons they carry. ``We would be making a terrible mistake to 
not be attentive to the spread of weapons of mass destruction 
and the ability to deliver them,'' he stated. Deputy Secretary 
of Defense Paul Wolfowitz, testifying before the committee on 
July 19, 2001, explained the reason other states seek ballistic 
missile capabilities: ``To those who wonder why so many of the 
regimes hostile to the United States--many of them desperately 
poor--are investing such enormous sums of money to acquire 
ballistic missiles, I suggest this possible answer: They know 
we don't have any defenses.''
    Ten years after 28 U.S. service personnel lost their lives 
as a result of a single Iraqi Scud missile attack during the 
Persian Gulf War, Americans remain vulnerable to ballistic 
missile threats. For this reason, the committee supports 
efforts to accelerate research, development, and deployment of 
effective ballistic missile defenses.
    The committee believes that America's total vulnerability 
to ballistic missiles must end. Unfortunately, missile defense 
programs have never received the level of support and funding 
necessary to support such an important mission. As a result, 
the committee bill would support the Administration's request 
for a significant increase in funding for ballistic missile 
defense programs as the first step toward the day when all 
Americans are protected against ballistic missile attack. The 
committee endorses the President's approach to ballistic 
missile defense, and is encouraged that the proposed missile 
defense program includes plans for a layered defense system and 
realistic testing, and explores a full range of technologies. 
As such, the committee endorses the Administration's missile 
defense program, with modest adjustments, and recommends $8.2 
billion, $2.9 billion more than the fiscal year 2001 level, for 
the continued development of ballistic missile defenses.

   The Committee Bill: A Significant Step Forward on the Path Toward 
                    Ensuring U.S. National Security

    The National Defense Authorization Act for Fiscal Year 2002 
represents a significant step forward in the committee's 
efforts to ensure that U.S. national security is protected and 
that the U.S. armed forces are second-to-none. It contains 
significant improvements in personnel, readiness, and 
modernization designed to keep America's military on the 
cutting edge of technology and able to defeat any potential 
military challenge. This bill accomplishes much, but much more 
remains to be done.
    Modernizing and maintaining today's military forces--and 
transforming them to meet future challenges--will require a 
serious and sustained commitment of resources. The committee 
understands that in the current prolonged period of peace, 
additional investments in national defense are seen by some as 
unnecessary. However, the cost of keeping the peace is always 
less than the cost of failing to do so. Clearly, defense 
increases are not only affordable but also essential if the 
United States is to remain a superpower able to promote and 
protect its global interests.

                                HEARINGS

    Committee consideration of the National Defense 
Authorization Act for Fiscal Year 2002 results from hearings 
that began on March 22, 2001 and that were completed on July 
18, 2001. The full committee conducted 7 sessions. In addition, 
a total of 20 sessions were conducted by five different 
subcommittees and two panels of the committee on various titles 
of the bill.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION

                          TITLE I--PROCUREMENT

                                OVERVIEW

    The committee did not receive the Administration's 
amendment to its February 2001 ``Budget Blueprint'' for the 
Department of Defense (DOD) until the end of June. During this 
period, Secretary Rumsfeld initiated over twenty separate 
review panels to examine various topics, ranging from overall 
defense strategy to the size and shape of conventional forces. 
The recommendations of these panels are still being studied and 
are expected to be considered during the ongoing Quadrennial 
Defense Review (QDR), which is to be submitted to Congress 
September 30th. Consequently, no decisions were made with 
regard to major weapons systems in the fiscal year 2002 amended 
budget. Although the Administration has spoken of the need to 
transform the military to deal with new challenges of the 21st 
century, the transformation process is expected to be a lengthy 
one that cannot be implemented with a single fiscal year's 
budget. The Secretary's description of the fiscal year 2002 
procurement request concedes that there would be less real 
transformation-related change from fiscal year 2001 programs 
than previously thought, due to the overwhelming need to, as he 
put it, ``repair potholes.''
    The fiscal year 2002 DOD procurement request of $61.6 
billion is notably the weakest link in an otherwise strong 
defense budget. Many analysts, as well as prior DOD senior 
officials, have argued that an additional $20.0 to $30.0 
billion above this amount is necessary annually to ensure 
military capabilities are adequately modernized.
    The committee recommends a net increase of $442.1 million 
to the Department's procurement request, which includes an add 
of almost $525.0 million. While this amount is modest by 
comparison to committee actions over the past several years, 
it, nevertheless, represents the seventh consecutive year that 
the committee has provided an increase to the procurement 
accounts.

                       Aircraft Procurement, Army

                                Overview

    The budget request contained $1,925.5 million for Aircraft 
Procurement, Army in fiscal year 2002. The committee recommends 
authorization of $1,987.5 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

AH-64 modifications
    The budget request contained $38.5 million for AH-64 
modifications but included no funds to continue procurement of 
the oil debris detection system (ODDS) or the vibration 
management enhancement program (VMEP).
    The ODDS is an on-board detection system that alerts 
aircrews to the presence of metal chips in engines and 
propeller gear boxes, which allows flights to be terminated 
prior to catastrophic failure of critical components. The 
system also permits the clearing of smaller particles that 
routinely accumulate in engine oil and cause false impending 
engine failure alarms resulting in unnecessary termination of 
aircraft missions and costly engine diagnostics.
    The VMEP is an Army National Guard (ARNG) effort currently 
directed toward resolving vibration management problems on the 
ARNG's AH-64 Apache fleet.
    Since the ODDS, which has been successfully integrated into 
other Department of Defense aircraft, both reduces aircraft 
maintenance costs and enhances aircrew safety, the committee 
recommends an increase of $5.0 million to incorporate the ODDS 
on the AH-64 Apache. The committee also recommends an increase 
of $7.0 million to continue procurement of VMEP systems for the 
ARNG Apache fleet and to transition this technology to the UH-
60 Blackhawk and the CH-47 Chinook.
    In total, the committee recommends $50.5 million for AH-64 
modifications, an increase of $12.0 million.
Air traffic control
    The budget request contained $68.9 million to procure air 
traffic control systems but included no funds for the 
procurement of cold cathode portable landing lights.
    Cold cathode portable landing lights are commercial-off-
the-shelf items that provide airfield taxiway, runway, and 
heliport edge lighting for both permanent and temporary 
locations, thereby enhancing ground safety and flight 
operations. The committee understands that the Army has an 
unfunded requirement for 100 systems of this type of lighting 
and recommends $78.9 million for air traffic control systems, 
an increase of $10.0 million, for procurement of cold cathode 
portable landing lights.
Aircraft survivability equipment (ASE)
    The budget request contained $32.8 million for the 
procurement of ASE, but included no funds for AN/AVR-2A laser 
detecting sets (LDS). The LDS is the only device in the Army 
capable of providing warning to helicopter crews when they have 
been illuminated by a laser-targeted weapon. It detects, 
identifies, and characterizes threats 360-degrees-around and 
plus-or-minus 45 degrees above-and-below an aircraft.
    The committee continues to be concerned with the growing 
laser threat to helicopter aircrews and notes the limited 
fielding of this system to force package one aircraft only. The 
committee also notes the Army Chief of Staff's $28.3 million 
fiscal year 2002 unfunded requirement to continue LDS kit 
installation on AH-64A Apaches,AH-64D Apache Longbows, MH-47D 
Chinook and MH-60L Blackhawk Special Operations Aircraft. Based on a 
growing laser threat to Army helicopters, its desire to continue 
fielding this system beyond force package one units, and the Chief's 
unfunded requirement, the committee recommends $52.8 million for ASE, 
an increase of $20.0 million, for procurement of AN/AVR-2A LDS kits.

CH-47 cargo helicopter modifications

    The budget request contained $277.5 million for CH-47 cargo 
helicopter modifications, but included no funds for crashworthy 
cockpit seats.
    While existing pilot and co-pilot seats offer some 
protection in the event of a hard impact landing or a crash, 
crashworthy cockpit seats provide increased protection from the 
acceleration forces created by such a landing or crash, thereby 
avoiding serious injuries or, in extreme cases, fatalities to 
soldiers. Accordingly, the committee recommends $281.5 million 
for CH-47 modifications, an increase of $4.0 million, to 
procure crashworthy cockpit seats for CH-47 cargo helicopters.

Longbow

    The budget request contained $888.6 million to upgrade 60 
AH-64A aircraft to the AH-64D Longbow variant, including $70.2 
million for Apache Longbow recapitalization.
    The committee understands that the Army entered into a 
multiyear procurement contract in October 2000 for the 
remanufacture of 269 AH-64A analog variant aircraft to the 
digital Longbow variant. The committee notes that because of 
numerous problems over the last several years resulting in 
grounding of the Apache fleet, this contract was restructured 
to upgrade fewer aircraft and apply the resultant funds to meet 
recapitalization requirements. The committee also notes that 
the Army Chief of Staff identified a $47.0 million fiscal year 
2002 unfunded requirement for recapitalization of the Apache 
Longbow fleet.
    Accordingly, the committee recommends $898.6 million for 
Apache Longbow upgrades, an increase of $10.0 million, for 
Apache Longbow recapitalization.

UH-60 modifications

    The budget request contained $52.3 million for UH-60 
modifications, of which $17.3 million was for crashworthy 
external fuel systems. However, the budget request included no 
funds for these systems for Army National Guard (ARNG) UH-60 
combat search and rescue aircraft.
    UH-60 crashworthy external fuel systems are self-sealing, 
ballistically-tolerant tanks that replace existing 230 gallon 
non-crashworthy external fuel tanks originally intended only 
for ferry flights. However, expanding Army aviation missions 
have increasingly required these non-crashworthy tanks to be 
used to extend UH-60 tactical mission ranges, creating safety 
risks to flight crews, passengers, and aircraft, which require 
individual mission waivers by individual commands. As a result 
of the safety risks imposed by these existing systems and 
expanding ARNG search and rescue mission requirements, the 
committee recommends $58.3 million for UH-60 modifications, an 
increase of $6.0 million, for crashworthy external fuel systems 
for ARNG combat search and rescue aircraft.

                       Missile Procurement, Army

                                Overview

    The budget request contained $1,859.6 million for Missile 
Procurement, Army in fiscal year 2002. The committee recommends 
authorization of $1,097.3 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Missile procurement army (MPA) transfers

    The budget request contained $1,859.6 million for the 
procurement of Army missile systems.
    The committee recommends the following transfers from MPA 
to the program elements listed, as requested by the Army.

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  FY 2002                            FY 2002
                           Program                             authorization   Committee change     committee
                                                                  request        form request     recommendation
----------------------------------------------------------------------------------------------------------------
Stinger System Summary......................................          $45,890         ($22,500)          $23,390
Line Of Sight Anti-Tank System..............................           11,427           (2,000)            9,427
MLRS Launcher Systems.......................................          148,294          (10,250)          138,044
Army Tactical Missile System................................           34,263           (9,000)           25,263
Patriot Mods................................................           37,617          (12,510)           25,107
Avenger Mods................................................           17,991           (6,114)           11,877
ITAS/TOW Mods...............................................           96,204          (35,400)           60,804
MLRS Mods...................................................           23,599           (3,000)           20,599
Combat Vehicle Improvement Programs (PE 203735).............          195,602           20,000           215,602
Tractor Card (PE 203808)....................................            6,551            5,000            11,551
LOSAT (PE 603654)...........................................           57,384           13,072            70,456
Comanche (PE 604223)........................................          732,890           28,500           761,390
Brilliant Anti-Armor Submunition (PE 604768)................          123,899            9,000           132,899
Javelin (PE 604611).........................................              492            5,202             5,694
----------------------------------------------------------------------------------------------------------------

               Weapons and Tracked Combat Vehicles, Army

                                Overview

    The budget request contained $2,276.7 million for 
procurement of Weapons and Tracked Combat Vehicles, Army for 
fiscal year 2002. The committee recommends authorization of 
$2,367.0 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Abrams upgrade program

    The budget request contained $395.8 million for the upgrade 
of 104 M1 Abrams tanks to the M1A2 system enhancement program 
(SEP) variant.
    The committee notes that the Army's M1A2 SEP upgrades are 
currently obtained under a three-year multiyear procurement 
(MYP) contract at 104 SEP tank upgrades per year. Congress 
authorized a combined M1A2 SEP tank and Wolverine Heavy Assault 
Bridge (HAB) MYP contract in fiscal year 2000, a year earlier 
than the planned fiscal year 2001 contract award year, based 
upon the estimated $118.0 million in savings that could be 
accrued from the 80 percent commonality of SEP and HAB chassis 
and component upgrades and its belief that both of the vehicles 
met the stable design criteria to enter into a MYP contract. 
The committee is concerned, however, by the 74 percent increase 
requested for systems technical support in fiscal year 2002 for 
104 SEP upgrades, compared to the amount appropriated for 
fiscal year 2001 systems technical support for 100 SEP 
upgrades.
    The committee believes that the cost growth in systems 
technical support is unjustified and, therefore, recommends 
$385.8 million for the Abrams upgrade program, a decrease of 
$10.0 million.

Bradley base sustainment

    The budget request contained $400.8 million for the 
procurement of Bradley A3 fighting vehicle upgrades, including 
$1.7 million for fielding Army National Guard (ARNG) A2 
Operation Desert Storm (ODS) variants.
    The Bradley A2ODS is derived from upgrading the first-
generation Bradley A0's lethality, survivability, and mobility, 
as well as the situational awareness of its crew. Modifications 
include installation of a laser range finder, Global 
Positioning System navigation capability, a combat 
identification system, a driver's thermal viewer and a missile 
countermeasure device.
    When the Army completes all of its planned upgrades to the 
Bradley, the active fleet will include a mix of the most 
advanced A3 variant, along with A2 and A2ODS versions. The 
majority of the ARNG's Bradley fleet, on the other hand, will 
remain unmodified and be comprised mainly of first-generation 
A0 vehicles, which, because of major survivability 
deficiencies, were not mobilized during the Persian Gulf War. 
However, as part of the new ARNG enhanced brigades, the 
committee notes that some of these A0 vehicles will be required 
to deploy with active Army forces.
    Because ARNG enhanced brigades will comprise an increasing 
percentage of the Army's warfighting capability as a result of 
active force reductions, the committee recommends $460.8 
million for Bradley base sustainment, an increase of $60.0 
million, to upgrade an additional 45 Bradley A0 vehicles to the 
A2ODS variant for the ARNG.

                      Ammunition Procurement, Army

                                Overview

    The budget request contained $1,193.4 million for 
Ammunition Procurement, Army in fiscal year 2002. The committee 
recommends authorization of $1,208.6 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Army ammunition procurement

    The budget request contained $1,193.3 million for 
procurement of ammunition and production base support. The 
committee recommends $1,208.6 million, an increase of $15.2 
million, for the following types of ammunition programs:

                          [Dollars in millions]

Mortar Ammunition:
    81mm M816.....................................................  $8.0
    CTG 120mm Illum XM930 w/MTSQ Fuze (Production line upgrade)...   2.8
    CTG 120mm IR Illum XM983......................................   5.0
Rockets: Bunker Defeating Munition................................  10.0
Demolition Munitions, All Types: Modernization Demolition 
    Initiators....................................................   3.0
Signals, All Types: XM-211/XM-212 AIRCM...........................   6.2
Production Base Support: ARMS Initiative..........................   7.6

Remote area denial artillery munition (RADAM)

    The budget request contained $48.2 million for RADAM 
procurement. The committee understands that the Army does not 
plan to obligate $27.4 million of fiscal year 2001 funds for 
RADAM prior to the beginning of fiscal year 2002. As a result, 
the committee believes that these funds can be used to meet 
fiscal year 2002 requirements. Accordingly, the committee 
recommends $20.8 million for RADAM, a decrease of $27.4 
million.

White phosphorus production facility

    The budget request contained no funds to upgrade the white 
phosphorous production facility at the Pine Bluff Arsenal.
    The committee is aware of plans to upgrade the production 
line at the Pine Bluff Arsenal, the only production facility 
for white phosphorous ammunition in the western hemisphere. The 
committee views this as an important effort and recommends $2.8 
million for design work leading to replacement of the 
production line. The committee also directs the Secretary of 
the Army to examine and to refine further these plans in 
preparation for the submission of the fiscal year 2003 budget 
request.

                        Other Procurement, Army

                                Overview

    The budget request contained $3,961.7 million for Other 
Procurement, Army in fiscal year 2002. The committee recommends 
authorization of $4,144.0 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Artillery accuracy equipment

    The budget request contained $10.4 million to procure the 
artillery accuracy equipment, including $6.8 million for the 
procurement of seven Meteorological Measuring System (MMS) 
units for the Army National Guard (ARNG). The MMS provides 
weather data to field artillery units that improves the firing 
accuracy of those units.
    The committee is encouraged that the Army has budgeted for 
MMSs for the ARNG; however, it recognizes that accelerated 
fielding of MMS to the ARNG would benefit total Army mission 
requirements, since the ARNG provides nearly 70 percent of the 
total Army's artillery fire support. Therefore, the committee 
recommends $14.9 million for artillery accuracy equipment, an 
increase of $4.5 million, to accelerate procurement of the MMS 
for the ARNG.

Combat support medical

    The budget request contained $16.7 million to procure 
deployable medical systems and field medical equipment, of 
which $641 thousand was for surgical temper tents. However, the 
budget request included no funds for rapid intravenous (IV) 
infusion pumps.
    Surgical temper tents offer medical personnel and surgical 
teams shelter to provide medical and trauma care to soldiers in 
forward deployed sites. As a result of increased deployment of 
Army Reserve medical units, additional surgical temper tents 
are required to replace those that have been left behind in 
humanitarian missions.
    The rapid IV infusion pump is a miniature, portable, 
lightweight pump specifically designed for life-saving 
intravenous fluid resuscitation by a medic in the field to 
restore blood pressure of victims with severe blood loss or 
dehydration. The committee notes that it is estimated that up 
to 15 percent of the soldiers that died in Vietnam who were not 
immediate battlefield casualties would have survived their 
wounds if rapid infusion of fluids had been a possibility 
during that conflict.
    The committee understands the benefits of clean, sterile 
field medical treatment areas and, therefore, recommends an 
increase of $1.0 million for replacement of surgical temper 
tents for the Army Reserve. Also, the committee is impressed 
with the potential life saving capability that rapid IV 
infusion pumps offer and recommends an increase of $6.0 million 
to procure these pumps. In total, the committee recommends 
$23.7 million for combat support medical equipment.

Combat training centers instrumentation support

    The budget request contained $10.3 million for combat 
training centers instrumentation support but included no funds 
for the Army National Guard (ARNG) deployable force-on-force 
instrumented range system (DFIRST).
    Encouraged by the fact that the DFIRST system was chosen 
over all current force-on-force instrumentation systems by the 
All Service Combat IdentificationEvaluation Team (ASCIET) as 
the instrumentation system for the fiscal year 1999 Joint Exercise, in 
the committee report on H.R. 1401 (H. Rept. 106-162), the committee 
recommended a pilot program at two ARNG training sites to explore the 
capabilities and benefits of DFIRST systems to increase the readiness 
of ARNG units through more effective training with greater safety and 
at a lower cost. To continue this force-on-force, simulation-based 
training at regional training centers, the committee recommends $16.3 
million for combat training centers instrumentation support, an 
increase of $6.0 million, for additional DFIRSTs for the ARNG.

Deployable universal combat earthmovers (DEUCE)

    The budget request contained $5.3 million to procure 12 
DEUCEs for the interim brigade combat teams. The DEUCE is a 
military-unique, high speed, earthmoving tractor capable of 
clearing, leveling, and excavating operations for light and 
airborne divisions.
    Although, the committee understands that the DUECE will be 
a critical piece of equipment for the Army's interim medium 
brigades, it notes that the Army Chief of Staff has identified 
a $7.8 million unfunded requirement in fiscal year 2002 to 
procure 19 DEUCEs for Army war reserve requirements and to 
prevent a break in the production line.
    Accordingly, the committee recommends $21.3 million for 
DEUCE, an increase of $16.0 million, for additional war reserve 
DEUCEs and to address industrial base concerns.

Earthmoving scrapers

    The budget request contained $7.2 million to procure 17 
commercial, self-propelled elevating scrapers.
    This commercial, self-propelled elevating scraper is 
sectionalized into two pieces for external sling load 
helicopter transport. It will be used by airborne and air 
assault combat engineers for road and airfield construction and 
maintenance to support early entry forces. This new start 
program supports the Army's legacy-to-objective transformation 
campaign plan, enabling forces to more rapidly deploy and be 
sustained by quickly constructed infrastructure.
    Therefore, the committee recommends $13.2 million for 
earthmoving scrapers, an increase of $6.0 million, to 
accelerate the procurement of commercial, self-propelled 
elevating scrapers.

High mobility trailers

    The budget request contained no funds for safety 
modifications for high mobility trailers.
    The Army has procured 5,116 high mobility trailers since 
fiscal year 1994 is unable to field these trailers due to an 
inability to meet mobility and safety requirements. The 
committee understands that the Army has an ongoing program to 
correct these deficiencies that is scheduled to be completed in 
fiscal year 2002. The committee also understands that the Army 
plans to conduct a re-competition for these trailers in fiscal 
year 2003 and, in conducting its market survey for this 
competition, expects the Secretary of the Army to determine if 
there is a requirement for low cost, state-of-the-art, 
lightweight, detachable equipment storage and equipment 
transport carriers for non-combat missions, logistics support, 
and fire fighting services.

Improved high frequency radio (IHFR)

    The budget request contained no funds to procure IHFRs.
    The IHFR is the primary means of communications for 
maneuver battalions, combat support and combat service support 
units, the latter of which are comprised primarily of Army 
Reserve forces. The IHFR provides a versatile capability for 
short- and long-range communications, particularly important 
for highly mobile and geographically dispersed units not 
supported by active component communications units. The IHFR is 
also the only tactical radio that possesses a long-range 
communications capability independent of terrestrial or 
satellite relays and exceeds the range of the line-of-sight 
Single Channel Ground and Airborne Radio System. To date, only 
215 systems have been fielded to the Army Reserve due to budget 
constraints; consequently, the Army Reserve must continue to 
maintain a mixture of older and unsupportable HF communications 
radios. For this reason, the Chief of the Army Reserve has 
identified a $38.5 million fiscal year 2002 unfunded 
requirement for 1,003 IHFRs.
    Accordingly, the committee recommends an increase of $10.0 
million to procure IHFRs for the Army Reserve.

Modification of in service equipment

    The budget request contained $49.2 million for 
modifications of in service equipment, but included no funds 
for the procurement of a rubber wheel-to-track conversion 
system.
    The committee understands that there is an existing rubber 
track system, capable of converting both commercial and 
military four-wheel drive vehicles weighing up to 1.5 tons, 
such as the high mobility multi-purpose wheeled vehicle 
(HMMWV), into true all-terrain vehicles in about 30 minutes. 
The committee believes this track system could enable HMMWVs to 
greatly expand their operational domain into all types of off-
road conditions, such as soft sand, deep snow, and swampy 
areas.
    Based on the potential to expand the HMMWV's off-road 
capability, the committee recommends $59.2 million for 
modifications of in service equipment, an increase of $10.0 
million, to procure a wheel-to-track conversion system.

Nonsystem training devices

    The budget request contained $74.5 million to procure 
nonsystem training devices, but included no funds for Army 
Aviation Institutional Training Simulators (AAITS), BEAMHIT 
laser marksmanship training systems (LMTS) for the Army 
Reserve, or fire fighter training systems (FFTS).
    The committee understands that the AAITS provide full-
motion, reconfigurable cockpit simulation for AH-64 Apache, UH-
60 Blackhawk, and OH-58D Kiowa Warriorhelicopters and notes 
that a shortfall exists for the simulators at the Army Aviation Center. 
The committee notes that the Army Reserve lacks adequate BEAMHIT LMTS 
to maintain markmanship training skills, required to fulfill 
increasingly greater contingency operations and missions. Furthermore, 
the committee is aware that a shortfall of commercially-available, 
mobile FFTS remains, despite the increases for this system in prior 
fiscal years provided by the committee as well as the committee's prior 
recommendations that the Secretary of the Army adequately budget for 
this system.
    In view of these concerns, the committee recommends $111.7 
million for nonsystems training devices, an increase of $37.2 
million, including $20.0 million for AAITS, $14.2 million for 
BEAMHIT LMTS for the Army Reserve, and $3.0 million for FFTS.

Product improved combat vehicle crewman (PICVC) headset

    The budget request contained no funds to procure PICVC 
headsets.
    The committee is aware that loss of communications in CVC 
headsets was identified in late fiscal year 1998 during Force 
XXI Battle Command Brigade and Below (FBCB2) testing and 
evaluation in armored vehicles. This testing revealed that 
electromagnetic interference (EMI) generated by Single Channel 
Ground and Airborne Radio Systems installed in armored vehicles 
to transmit FBCB2 data created intermittent communication 
problems. The committee believes that intermittent 
communications caused by EMI could endanger crews as a result 
of not receiving complete command and control and targeting 
information in a high operational tempo or combat environment.
    Since the PICVC headset eliminates EMI communication 
losses, the committee recommends an increase of $9.0 million to 
procure PICVC headsets to address this safety issue.

Reserve component automation system (RCAS)

    The budget request contained $89.3 million for the 
procurement of RCAS components.
    The committee expects the Army to continue to provide 
adequate funding for the on-going information technology 
support to the National Guard and the Army Reserve. Currently, 
the RCAS program provides integrated support for mobilization 
and day-to-day management in both the Army National Guard 
(ARNG) and Army Reserve. In setting future priorities, the 
committee believes that funds should be provided to ensure that 
the ARNG and Army Reserve can continue to equip and support 
their full IT needs, including their requirements to upgrade 
the equipment originally installed under RCAS. Consequently, 
the committee expects the Army to provide funds for these 
requirements so that the ARNG and Army Reserve can meet their 
national security, homeland security, civil support, and 
national missile defense missions.

Ribbon bridge

    The budget request contained $48.2 million for ribbon 
bridge equipment, but included no funds to procure this 
equipment for Army National Guard (ARNG) multi-role bridge 
companies (MRBC). Ribbon bridge equipment consists of 10-ton, 
8-wheel drive M1977 Heavy Expanded Mobility Tactical Truck 
Common Bridge Transporters, M15 Bridge Adaptor Pallets, and M14 
Improved Boat Cradles.
    The committee understands that the ARNG will establish 
seven MRBCs in fiscal year 2001 and will equip them with 
existing engineer bridging equipment and older, lower-capacity, 
five-ton trucks. However, the committee also understands that 
without additional funds, these new MRBCs will not convert to 
the new equipment required for their mission until fiscal year 
2004.
    Therefore, the committee recommends $59.4 million for 
ribbon bridging equipment, an increase of $11.2 million, to 
accelerate the fielding of two ARNG MRBCs.

Special equipment for user testing

    The budget request contained $16.4 million for the 
procurement of special equipment for user testing, including 
$10.1 million for 1 XM Target Acquisition Radar--Agile Multi-
Beam (XMTARAMB) system, but included no funds for Target 
Receiver Injection Module (TRIM) threat simulators.
    The XMTARAMB is an advanced air defense acquisition and 
targeting radar which incorporates advanced frequency hopping, 
agile, multi-beam, three-dimensional targeting technology with 
an associated command, control, and communication facility. 
This system is critical to the ability of the United States and 
its allies to counter threats with enhanced technologies, as 
well as to develop proper tactics, techniques and procedures to 
ensure maximum protection for personnel and their weapon 
systems. Consequently, the committee recommends an increase of 
$12.0 million to procure an additional XMTARAMB system.
    The committee is also aware of the benefits of TRIM, which, 
when inserted in antenna cables of Army information collection, 
transmission, or dissemination systems, stimulate the system 
with threat signals. This capability will replace current open-
air radiations of radio frequency threats, which are becoming 
obsolete and prohibited by the Federal Communications 
Commission due to the growing number of threats now required to 
be simulated. Understanding the benefits derived from threat 
simulations, the committee recommends an increase of $4.0 
million for TRIM.
    In total, the committee recommends $32.4 million for 
special equipment for user testing, an overall increase of 
$16.0 million.

Super high frequency (SHF) terminal

    The budget request contained $17.0 million for the 
procurement of 8 SHF Tri-Band Advanced Range Extension 
Terminals (STAR-T).
    The committee is aware that this system has been plagued 
with cost overruns and technical and understands that, 
subsequent to the submission of the budget request to Congress, 
the Army terminated the program because of default by its 
contractor. The committee further understands that there are no 
program termination costs to the Army and that the service 
intends to recoup $24.0 million of unliquidated progress 
payments from the contractor.
    The committee outlined its concerns with STAR-T program 
delays in the committee report on H.R. 1401 (H. Rept. 106-162) 
and agrees with the Army's termination action. Because no 
contract termination fees are required, the committee 
recommends no funds for STAR-T, a decrease of $17.0 million.

Tactical unmanned aerial vehicle (TUAV)

    The budget request contained $84.3 million to procure 9 
TUAV systems and 5 attrition air vehicles.
    The TUAV system will provide Army maneuver commanders with 
dedicated reconnaissance, surveillance, and target recognition 
and battle damage assessment from information collected through 
its electro-optical and infrared sensor payloads down-linked to 
ground control units. The committee notes that the Army Chief 
of Staff has identified a $16.2 million fiscal year 2002 
unfunded requirement to upgrade low rate initial production 
TUAVs with a synthetic aperture radar/moving target indicator 
(SAR/MTI) all weather sensor, a digital tactical control data 
link (TCDL), and an improved avionics suite. The committee 
supports these enhancements to the TUAV despite the program's 
recent delays as a result of several crashes during testing. 
The committee therefore recommends $91.6 million for TUAV, an 
increase of $7.3 million for SAR/MTI, TCDL, and improved 
avionics upgrades.

Water distributors

    The budget request contained $1.0 million to procure four 
2,000-gallon capacity module water distributors for use by 
tactical fire fighting teams.
    These new distributors will replace currently fielded 
6,000-gallon water distributors, which suffer from poor 
mobility, safety issues when transported with partial loads, 
and maintenance problems. This new start program supports the 
Army's legacy-to-objective transformation campaign plan, 
enabling tactical fire fighting teams to rapidly deploy with 
enhanced cross country mobility.
    Therefore, the committee recommends $5.0 million for water 
distributors, an increase of $4.0 million, to accelerate 
procurement of 2,000-gallon capacity module water distributors.

            Chemical Agents and Munitions Destruction, Army

                                Overview

    The budget request contained $1,153.6 million for Chemical 
agents and Munitions Destruction, Army, for fiscal year 2002. 
The committee recommends no funds for fiscal year 2002.

                       Items of Special Interest

Chemical agents and munitions destruction

    The budget request contained $1,153.6 million for Chemical 
Agents and Munitions Destruction, Army.
    The committee notes that section 1412 of the National 
Defense Authorization Act for Fiscal Year 1986 (Public Law 99-
145), as amended, requires that funds for the destruction of 
the U.S. stockpile of lethal chemical agents and munitions, 
including funds for military construction projects necessary to 
carry out the demilitarization program, shall only be 
authorized and appropriated in the budget of the Department of 
Defense (DOD) as a separate program and shall not be included 
in the budget accounts for any military department. The 
committee notes that for the third year in a row, the 
Department's budget request contains authorization and 
appropriation of funds for the chemical demilitarization 
program in a budget account of the Department of the Army in 
contravention of direction provided by the law.
    The committee believes that the original legislation, which 
mandated that funds for the chemical demilitarization program 
be authorized and appropriated in a defense-wide budget account 
in order to emphasize that destruction of the chemical weapons 
stockpile was a national issue affecting all of the Department 
and not just a single military service was valid in 1986, when 
the estimated cost of the chemical stockpile demilitarization 
program was approximately $1.5 billion and is even more valid 
today, when the estimated cost of the program has grown more 
than ten-fold.
    Accordingly, the committee recommends no funds for Chemical 
Agents and Munitions Destruction, Army, a decrease of $1,153.6 
million. The committee recommends an increase of $1,078.6 
million for Chemical Agents and Munitions Destruction, Defense, 
as described elsewhere in this report.

                       Aircraft Procurement, Navy

                                Overview

    The budget request contained $8,252.5 million for Aircraft 
Procurement, Navy in fiscal year 2002. The committee recommends 
authorization of $8,337.2 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

AV-8B modifications

    The budget request contained $49.5 million for various AV-
8B modifications but included no funds for the Litening II, a 
precision targeting system that allows the AV-8B aircraft to 
autonomously detect and track targets and to deliver precision 
munitions.
    The committee understands that the Marine Corps has a 
requirement for 98 Litening II targeting pod systems but has 
thus far only procured 56. The committee also notes that the 
Commandant of the Marine Corps included this system among his 
unfunded requirements for fiscal year 2002. Consequently, the 
committee recommends $79.5 million for AV-8B modifications, an 
increase of $30.0 million, to procure additional Litening II 
targeting pods.

Calibration test equipment

    The budget request contained $18.2 million for aircraft 
industrial facilities, of which $8.8 million was included for 
calibration equipment.
    Calibration equipment provides the Navy with products and 
services to maintain accurate test equipment used for 
maintenance of weapons, aircraft, ships, submarines, and Marine 
Corps ground systems. The committee notes that without 
calibration equipment, test equipment drifts to inaccurate 
performance levels which could induce errors in weapons systems 
or result in serviceable components being removed for 
unnecessary maintenance or unserviceable components remaining 
in a system. The committee also notes that during the past 10 
years funding for the Navy's calibration test equipment has 
decreased by over 60 percent and that this situation has 
resulted in a corresponding decrease in the availability of 
calibrated equipment from 86 percent to 74 percent.
    Since the committee understands that the budget request for 
calibration test equipment funds only 59 percent of the fiscal 
year 2002 requirement, the committee recommends $22.7 million 
for aircraft industrial facilities, an increase of $4.5 
million, for additional calibration test equipment.

E-2 modifications

    The budget request contained $14.6 million for E-2 
modifications but included no funds to upgrade an E-2 mission 
computer test aircraft to the Hawkeye 2000 configuration.
    The Hawkeye 2000 configuration is an upgrade to older-model 
E-2 aircraft that integrates satellite communications, a 
commercial-off-the-shelf, high-capacity mission computer and 
associated workstations, and cooperative engagement capability 
equipment. The committee understands that the Navy's E-2 
aircraft inventory includes a mission computer test aircraft 
that can be economically upgraded to the Hawkeye 2000 
configuration and, therefore, recommends $39.6 million for E-2 
modifications, an increase of $25.0 million, to upgrade the 
Navy's mission computer E-2 test aircraft to the Hawkeye 2000 
configuration.

F/A-18E/F

    The committee notes that the F/A-18E/F aircraft is 
currently procured under a multiyear contract, but notes 
further that the aircraft's F414 propulsion system is not 
procured under either this contract or a separate multiyear 
contract.
    To promote further F/A-18E/F acquisition savings, the 
committee strongly urges that the Department of the Navy 
evaluate the benefits of a five-year multiyear procurement 
structure for the F414 propulsion system beginning in fiscal 
year 2002.

Joint primary air training system (JPATS)

    The budget request contained no funds for the Navy JPATS.
    The JPATS, consisting of both the T-6A aircraft and a 
ground-based training system, will be used by the Navy and Air 
Force for primary pilot training. The T-6A will replace both 
the Navy's T-34 and Air Force's T-37B fleets, providing safer, 
more economical and more effective training for future student 
pilots.
    The committee notes that, although the Navy has already 
procured 12 T-6A aircraft in fiscal year 2000 and 24 T-6As in 
fiscal year 2001, it plans to discontinue JPATS acquisition 
between fiscal years 2002 and 2007. Expressing concern about 
this decision, the committee also notes that the report 
accompanying H.R. 2216 (H. Rept. 107-148) directed the 
Secretary of the Navy to provide a report to the House and 
Senate Appropriations Committees detailing the business case 
for the Navy's deferring JPATS acquisition. The committee 
believes that JPATS procurement for the Navy would not only 
reduce procurement costs for both the Navy and the Air Force 
but would reduce operations and maintenance costs as well. The 
committee directs the Secretary of the Navy to report to the 
committee within 90 days after enactment of this Act his plan 
to begin full implementation of the JPATS program beginning in 
fiscal year 2003.

SH-60 series modifications

    The budget request contained $1.7 million for SH-60 series 
modifications but included no funds for the SH-60F's AN/AQS-13F 
dipping sonar upgrade or for the advanced helicopter emergency 
egress lighting system (ADHEELS).
    The SH-60F is the Navy's anti-submarine warfare helicopter 
based aboard aircraft carriers and uses the AN/AQS-13F as its 
principal dipping sonar to detect submarines near the aircraft 
carrier. The committee understands that a pre-planned product 
improvement program for the AN/AQS-13F could achieve improved 
shallow-water detection capability and provide increased system 
reliability. Accordingly, the committee recommends an increase 
of $11.0 million to upgrade the SH-60F's AN/AQS-13 dipping 
sonar.
    The ADHEELS provides crew escape lighting for H-60 series 
helicopters in the event of water impact. The committee 
understands that the Department of the Navy has selected 
ADHEELS as its future helicopter escape lighting system due to 
its superior performance, significantly increased operational 
reliability, and lower life-cycle costs.Consequently, the 
committee recommends an increase of $3.2 million to accelerate the 
installation of ADHEELS in the Navy's H-60 helicopter fleet.
    In total, the committee recommends $15.9 million, an 
increase of $14.2 million, for SH-60 series modifications.

T-45 training system (TS)

    The budget request contained $179.3 million to procure 6 T-
45C aircraft and associated ground-based training equipment but 
included no funds for T-45C operational flight trainers. The T-
45TS is an integrated training system that combines the T-45 
aircraft, simulators, and computer-based training for the 
Navy's intermediate-level undergraduate pilot training.
    The committee notes that the Navy is replacing older-model 
T-45As with new-production T-45Cs but understands that all 
bases planned for upgrade to the T-45C are not scheduled to 
receive T-45C operational flight trainers upon arrival of the 
new-production aircraft.
    Since the T-45C operational flight trainer will provide 
improved replication of the T-45C cockpit configuration and 
performance characteristics, he recommends $192.3 million, an 
increase of $13.0 million, for two additional T-45C operational 
flight trainers.

Tactical air reconnaissance pod system (TARPS)-completely digital (CD)

    The budget request contained $27.6 million for other 
production charges but included no funds for the TARPS-CD 
system, an electro-optic sensor upgrade designed to validate 
digital imaging technologies and to mitigate development risks 
for the next-generation shared reconnaissance pod (SHARP) 
system.
    Since the SHARP system remains in development, the 
committee understands that the Navy is upgrading several TARPS-
CD cameras with an 18-lens configuration which improves the 
system's standoff and survivability capabilities.
    To upgrade all remaining TARPS-CD systems to a common 18-
lens configuration, the committee recommends $30.6 million for 
other production charges, an increase of $3.0 million, for the 
TARPS-CD 18-lens configuration and for spares and support 
costs.

                       Weapons Procurement, Navy

                                Overview

    The budget request contained $1,433.5 million for Weapons 
Procurement, Navy in fiscal year 2002. The committee recommends 
authorization of $1,476.7 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

MK 46 Mod 0 lightweight machine gun

    The budget request contained $910 thousand for small arms 
and weapons but included no funds for the MK 46 Mod 0 
lightweight machine gun.
    The MK 46 Mod 0 lightweight machine gun is a variant of the 
existing M249 squad automatic weapon designed to meet the 
unique lower-weight and reliability requirements for the Navy's 
sea-air-land (SEAL) teams and other special operations forces.
    The committee understands that the Navy's SEAL teams and 
special operations forces require approximately 1875 MK 46 Mod 
0 lightweight machine guns and, consequently, recommends $6.1 
million for small arms and weapons, an increase of $5.2 
million, to procure MK 46 Mod 0 lightweight machine guns.

Tomahawk missile

    The budget request contained $50.1 million for the first 34 
block IV low-rate initial production tactical tomahawk (TACTOM) 
missiles but included no funds for special tooling and test 
equipment for rate production of the block IV TACTOM missile.
    The Tomahawk missile is a long-range, precision strike 
cruise missile launched from surface ships or submarines, and 
the block IV TACOM missile will provide improved performance at 
a lower unit cost than previous missile versions. The committee 
understands that subsequent to the block IV TACTOM contract 
award in 1998, the Navy has had to switch to a different engine 
manufacturer than originally planned and that this decision 
requires increased funding for special tooling and test 
equipment to accommodate rate production of the TACTOM missiles 
equipped with the newly-selected engine.
    Accordingly, the committee recommends $70.1 million for the 
tomahawk missile, an increase of $20.0 million, to procure the 
special tooling and test equipment necessary for rate 
production of the block IV TACTOM.

Trident II missile

    The budget request contained $559.0 million for Trident II 
missiles, including $143.7 million for D5 continuous production 
life extension.
    The Trident II D5 missile is carried on the Ohio class 
fleet ballistic missile submarines to provide a highly 
survivable strategic ballistic missile deterrent. The Trident 
II D5 continuous production life extension (CPLE) program 
sustains the production of Trident II D5 missile motors and 
other critical components. The committee views the Trident II 
as critically important strategic deterrence and strongly 
supports the fiscal year 2002 budget request for 12 Trident D5 
missiles and associated funding for the CPLE program.
    While the Navy has not provided the committee with its 
Trident II D5 CPLE program budget projections beyond fiscal 
year 2002, it notes that the Navy has recently extended the 
hull life of its Ohio class fleet ballistic missile submarines 
from 30 to 44years and is concerned that the CPLE program may 
not be fully funded in the future years defense program commensurate 
with the extended submarine hull life. Therefore, the committee urges 
the Department to include funds for the CPLE program in its fiscal year 
2003 budget and in the future years defense program to preclude both 
the loss of the critical missile motor production base and the 
possibility that expensive start-up costs may be incurred at a future 
date to regenerate Trident II missile production capability.

               Ammunition Procurement, Navy/Marine Corps

                                Overview

    The budget request contained $457.0 million for Ammunition 
Procurement, Navy/Marine Corps in fiscal year 2002. The 
committee recommends authorization of $463.5 million for fiscal 
year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                   Shipbuilding and Conversion, Navy

                                Overview

    The budget request contained $9,344.1 million for 
Shipbuilding and Conversion, Navy in fiscal year 2002. The 
committee recommends authorization of $9,321.1 million for 
fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Completion of prior year shipbuilding programs

    The budget request contained $800.0 million to cover 
increases in the costs to complete construction of certain 
ships for which Congress authorized and appropriated funds in 
prior fiscal years. Included in this amount was $248.0 million 
for the first of the San Antonio-class amphibious transport 
dock ships, the LPD-17.
    The committee notes that the Department of Defense 
requested a supplemental appropriation of $65.0 million in 
fiscal year 2001, in addition to the $248 million in the budget 
request, to cover the increased costs of the LPD-17. The 
committee also notes, Congress approved the $65.0 million 
supplemental request, but understanding that the fiscal year 
2002 budget request did not contain funds for construction of 
the fifth and sixth ships of the class, as had been 
anticipated, Congress rescinded $75.0 million of advance 
procurement funds for these two ships appropriated in fiscal 
year 2001 and applied the funds to the LPD-17. The committee 
does not believe such action would have been taken if it were 
going to result in a requirement to payback those funds at a 
later date.
    Since the LPD-17 received an additional $75.0 million in 
the Supplemental Appropriations Act, 2001 (Public Law 107-80), 
the committee concludes that $75.0 million of the $248.0 
million in the budget request is not required. Consequently, 
the committee recommends $725.0 million for prior year 
shipbuilding, a decrease of $75.0 million.

Minehunter small waterplane area twin hull (SWATH)

    The budget request contained no funds for the Minehunter 
SWATH.
    The Navy's minehunting fleet includes one Minehunter SWATH 
boat, which is its only surface mine warfare vessel capable of 
operating in very shallow water or capable of transport by C-5 
aircraft for operational deployment within 24 hours. The 
committee understands that, during the past two years, the 
Minehunter SWATH has completed highly successful testing in the 
Pacific theater and notes that senior naval officers support 
its immediate acquisition and deployment to meet shallow water 
minehunting requirements.
    Therefore, the committee recommends an increase of $2.0 
million for the procurement of the Minehunter SWATH.

Outfitting

    The budget request contained $307.2 million for outfitting, 
of which $208.6 million was for outfitting and $96.0 million 
was for post delivery. Outfitting funds are used to acquire 
items necessary in the pre-commissioning activities of ship 
construction, and post delivery funds are used to fix items for 
which the government is responsible after ship delivery.
    The committee believes that $3.2 million of outfitting 
funds budgeted for ships which are scheduled to begin 
construction in fiscal year 2002 and $6.8 million budgeted for 
ships which are planned for delivery in fiscal year 2003 are 
premature. Consequently, the committee recommends $297.2 
million for outfitting, a decrease of $10.0 million.

SSGN conversion

    The budget request contained $86.4 million for the advance 
procurement of products and materials necessary to refuel and 
convert two fleet ballistic missile carrying submarines (SSBN) 
to a conventional cruise missile carrying submarine (SSGN) 
configuration but included no funds for the advance planning 
necessary to refuel two additional SSBNs.
    Once refueled and converted, SSGNs will be capable of both 
delivering up to 154 Tomahawk cruise missiles and deploying 
special operations forces. Although four SSBNs are available 
for the SSGN refueling and conversion program, the Department 
of the Navy has only budgeted for the conversion of two. The 
committee strongly supports the SSGN conversion program and 
believes that all four SSBNs should be converted to the SSGN 
configuration.
    Accordingly, the committee recommends $137.4 million, an 
increase of $51.0 million, for the advance planning necessary 
to refuel the remaining two SSBNs in preparation for their 
conversion to the SSGN configuration.

                        Other Procurement, Navy

                                Overview

    The budget request contained $4,097.6 million for Other 
Procurement, Navy in fiscal year 2002. The committee recommends 
authorization of $4,157.3 million for fiscal year 2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Operating forces industrial plant equipment

    The budget request contained $27.5 million for operating 
forces industrial plant equipment but included no funds for 
expeditionary maintenance facilities (EMF).
    The committee is aware that the Navy is continuing to 
decommission its repair tenders, thereby limiting its ability 
to rapidly deploy a ship and equipment repair capability to 
support forward deployed forces. However, the committee is also 
aware that EMF, which are surface and air transportable, self-
contained facilities, can be operational within 72 hours of 
deployment, and can meet the service's needs for a rapidly 
deployable repair and maintenance capability.
    The committee fully supports the EMF concept and, 
accordingly, recommends $28.0 million for operating forces 
industrial plant equipment, an increase of $500 thousand, for 
procurement of EMF.

Other navigation equipment

    The budget request contained $45.9 million for the 
procurement of other navigation equipment but included no funds 
to procure force protection thermal imaging equipment for 
military sealift command ships.
    As a result of the committee's investigation into the 
attack on the U.S.S. Cole, the committee is keenly aware of the 
lack of force protection equipment and sensors on board Naval 
warships and supply ships to identify and counter 
unconventional threats. The committee is also aware of, and 
supports, the Navy's rapid request for emergency funds to meet 
many of these requirements for its warships. However, military 
sealift command ships, which often steam independently and make 
port calls in remote and hostile areas separate from battle 
groups, lack adequate thermal imaging sensors to identify 
potential threats and hazards at ranges that would allow a 
timely response to avoid a collision or counter a terrorist 
attack.
    Understanding new threats and vulnerabilities of U.S. ships 
while underway and at anchor, the committee recommends $55.9 
million for other navigation equipment, an increase of $10.0 
million, for the procurement of military sealift command force 
protection thermal imaging equipment.

Other supply support equipment

    The budget request contained $7.5 million for the 
procurement of other supply support equipment, of which $741 
thousand was for automatic identification technology (AIT) in 
support of the serial number tracking system (SNTS).
    The SNTS will use commercial AIT to provide web-based, 
cradle-to-grave, total asset visibility of individual 
components throughout the supply, maintenance, and 
transportation transfer process within Naval and Marine Corps 
aviation depots and will enhance the maintenance, 
remanufacture, and rebuild process of Navy and Marine Corps 
aircraft. The committee believes that streamlined business 
processes, such as SNTS, can be readily achieved by 
implementing AIT and has recommended increases for this 
technology for maintenance and ammunition tracking systems for 
other services in prior fiscal years.
    Accordingly, the committee recommends $13.5 million for 
other supply support equipment, an increase of $6.0 million, 
for the SNTS.

Other training equipment

    The budget request contained $37.2 million for other 
training equipment, of which $32.5 million was for the 
procurement to support the battle force tactical training 
(BFTT) program.
    The BFTT system allows surface combatants and aircraft 
carriers to conduct realistic coordinated training scenarios 
using ownship equipment instead of shore-based training 
simulators. The committee notes that Congress provided funds in 
fiscal years 2000 and 2001 to upgrade the BFTT system in order 
to provide an air traffic control (ATC) training capability for 
aircraft carrier crews. However, the committee understands that 
additional BFTT ATC upgrades are required on both landing 
helicopter assault (LHA) and landing helicopter dock (LHD) 
amphibious ships for integrated battle group training. Because 
of the enhanced benefits to ships' crews from integrated battle 
group training, the committee recommends $41.2 million for 
other training equipment, an increase of $4.0 million, to 
procure BFTT ATC upgrades for 5 LHAs and 7 LHDs.

Radar support

    The budget request contained no funds to procure radar 
support equipment.
    The committee understands that an upgrade to the Mk92 Mod 1 
system, which provides surveillance and gunfire control on 
medium-sized ships is required because the current system 
relies on obsolete components that are no longer manufactured, 
resulting in a spare parts inventory incapable of sustaining it 
beyond fiscal year 2002. The committee believes this situation 
should be avoided and, therefore, recommends an increase of 
$15.0 million to upgrade Mk92 Mod 1 radars to the Mod 2 
variant.

Satellite communications systems

    The budget request contained $198.1 million to procure 
satellite communication systems, of which $9.6 million is for 
the procurement of digital modular radios (DMR).
    The DMR is a software programmable radio which replaces AN/
WCS-3 transceivers and TD-1271 multiplexer modems that are not 
compliant with Joint Chiefs of Staff directives. The DMR is 
backward compatible with existing radios and cryptographic 
devices, while being 90 percent compatible with the next-
generation Joint Tactical Radio System (JTRS) common 
architecture. The committee understands that additional 
software development is required for DMRs to maintain 
compliance with JTRS software compliance architecture (SCA) 
and, therefore, recommends $213.1 million for satellite 
communications systems, an increase of $15.0 million, to 
migrate the DMR to the JTRS SCA version 2.0 software.

                       Procurement, Marine Corps

                                Overview

    The budget request contained $981.7 million for 
Procurement, Marine Corps in fiscal year 2002. The committee 
recommends authorization of $1,025.6 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Container family

    The budget request contained $5.9 million to procure 
container handling equipment but included no funds to conduct a 
service life extension program (SLEP) for the tractor, rubber 
tired, articulated steering, multi-purpose (TRAM).
    The TRAM, a multi-purpose material handling and earthmoving 
machine capable of lifting up to 10,000 pounds, provides the 
primary heavy lift and earth moving capability for the Marine 
Corps. Since this system has been heavily relied upon to 
facilitate expeditionary operations, it requires a SLEP to 
extend its service life for an additional 10 years. The 
committee notes that the Commandant of the Marine Corps has 
identified a $7.4 million fiscal year 2002 unfunded requirement 
to conduct a SLEP for 521 of the 617 TRAMs on hand. Because the 
committee understands the vital mobility requirements that this 
system fulfills, the committee recommends $13.3 million for 
container family equipment, an increase of $7.4 million, for 
TRAM SLEP.

Expeditionary warfare

    The committee supports the Department of the Navy's efforts 
in developing expeditionary warfare capabilities to address 
threats of the 21st century. The committee believes that an 
expeditionary force capable of rapid, sustained employment that 
possesses the ability to conduct forcible entry is a necessary 
military asset. However, the committee is concerned that 
programmed funding is inadequate to execute the full spectrum 
of expeditionary warfare operations. This disparity was 
highlighted in a recent General Accounting Office report, which 
concluded that it will be another 10 to 20 years before the 
Navy and the Marine Corps have the capabilities needed to 
successfully execute littoral warfare operations against 
competent enemy forces. The committee also notes that testimony 
provided by Navy and Marine Corps officials acknowledged that 
the nation's sea service lacks a number of key warfighting 
capabilities and that these deficiencies place at risk 
expeditionary warfare operations.
    Consequently, the committee directs the Secretary of the 
Navy to provide a report to the congressional defense 
committees by March 1, 2002, that examines the relationship 
between expeditionary warfare funding and mission requirements. 
At a minimum, the report shall contain the following 
information:
          (1) Identification of those missions which are 
        assigned to and can best be carried out by 
        expeditionary warfare forces;
          (2) Identification of major programs that directly 
        support execution of expeditionary warfare and a 
        comparison between required and actual funding for 
        these programs over the past three fiscal years as well 
        as a comparison between required and planned funding 
        for them as identified in the future years defense 
        program; and
          (3) An explanation of the risks of underfunding these 
        programs, including any impact on personnel morale, 
        retention and effectiveness.

Family of construction equipment

    The budget request contained $8.3 million for the 
remanufacture or product improvement of D-7G dozers, 621B 
scrapers, and 130G graders. The dozer/scraper/grader fleet is 
used throughout Marine Corps combat engineer and support units 
for airfield construction, as well as for combat clearing and 
debris excavation.
    The committee notes that the service's rapidly 
deteriorating dozer, scraper and grader fleet is over 15 years 
old and that the Commandant of the Marine Corps has identified 
a fiscal year 2002 unfunded requirement to accelerate 
remanufacture of this equipment. The committee also notes that 
the remanufacturing/product improvement program will extend the 
life of this equipment for an additional 10 years.
    Consistent with its actions in prior years, the committee 
recommends $25.3 million for the family of construction 
equipment, an increase of $17.0 million, to remanufacture/
product improve D-7G dozers, scrapers, and graders.

Night vision equipment

    The budget request contained $22.4 million to procure night 
vision equipment but included no funds to procure AN/PVS-17 
night vision sights.
    The AN/PVS-17 is a lightweight, rifle-mounted, generation 
III image intensification night vision sight that replaces 
obsolete, post-Vietnam era AN/PVS-4 sights. The committee notes 
that the Commandant of the Marine Corps has identified a $16.5 
million fiscal year 2002 unfunded requirement to procure 3,682 
AN/PVS-17 night vision sights, which would complete this 
system's acquisition objective. The committee recognizes the 
increased benefits of generation III technology, and, 
therefore, recommends $36.9 million for night vision equipment, 
an increase of $14.5 million, for AN/PVS-17 night vision 
sights.

                    Aircraft Procurement, Air Force

                                Overview

    The budget request contained $10,744.5 million for Aircraft 
Procurement, Air Force in fiscal year 2002. The committee 
recommends authorization of $10,705.7 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

B-2

    The budget request contained $11.9 million for B-2 
modifications, of which $11.3 million was included to upgrade 
one B-2 aircraft with satellite communications (SATCOM). The 
budget request also contained $155.0 million in PE 64240F but 
included no funds for the link 16, center instrument display 
and in-flight replanner (Link16/CID/IFR) upgrade, or for 
integration of the enhanced guided bomb unit (EGBU)-28 weapon. 
The B-2 is the Department of Defense's most advanced long-range 
strike aircraft, capable of global force projection in a highly 
defended target environment.
    The B-2 SATCOM upgrade provides beyond-line-of-sight secure 
voice and data communications that will ensure global command 
and control of this aircraft, and the committee believes that 
the entire fleet of 21 B-2 aircraft should be upgraded with 
SATCOM. Accordingly, the committee recommends $44.9 million for 
B-2 modifications, an increase of $33.0 million, to upgrade all 
21 B-2s with SATCOM.
    The B-2 link 16 provides networked battlefield situational 
awareness for improved survivability and flexible targeting, 
while the center instrument display and in-flight replanner 
portions of this upgrade provide an improved tactical situation 
picture and a capability to adjust mission planning while 
enroute. The EGBU-28 weapon will replace the aging, B-2 unique 
GBU-37B with a common weapon to continue the B-2's capability 
to attack hard and deeply buried targets. The committee views 
the Link16/CID/IFR and EGBU-28 upgrades as critical to future 
B-2 effectiveness. Consequently, the committee recommends 
$245.0 million in PE 64240F, an increase of $90.0 million--
$63.0 million to accelerate the Link 16/CID/IFR upgrade and 
$27.0 million to complete engineering and manufacturing 
development activities for the EGBU-28 upgrade.
    Additionally, the committee notes that the Air Force's 
concept of a global strike task force includes F-22 and B-2 
aircraft and believes that its implementation may require 
procurement of additional B-2s. Accordingly, the committee 
directs the Secretary of the Air Force to provide a report to 
the congressional defense committees with the submission of the 
fiscal year 2003 budget request that describes the number and 
type of aircraft required to implement this concept and the 
acquisition strategy to procure these aircraft.

C-130

    The committee notes that the Air Force has developed a 
long-range plan called the ``C-130 Roadmap,'' to assist in the 
planning, budgeting and beddown of the newest aircraft in the 
C-130 fleet. The C-130 aircraft has been the workhorse of the 
military's tactical airlift fleet supporting operations around 
the globe for over four decades. The committee strongly 
supports the beddown of C-130Js as depicted in the ``C-130 
Roadmap.'' The committee expects the Air Force to continue to 
work closely with Congress on its beddown plan for the C-130J 
fleet and on the proposed C-130J-30 multiyear procurement. The 
committee encourages the Air Force to use similar roadmaps as 
the baseline to plan, budget, and beddown other aircraft in 
order to modernize and replace aging systems.

C-17

    The budget request contained $2,875.8 million to procure 15 
C-17 aircraft and $228.1 million for advance procurement of 12 
aircraft in fiscal year 2003. The C-17 aircraft is currently 
procured under a seven-year multiyear procurement contract that 
ends in fiscal year 2003.
    The committee notes that the recent Mobility Requirements 
Study-2005 concluded that the currently programmed airlift 
fleet is not adequate to meet requirements for the existing 
national military strategy. While the Department of Defense's 
on-going strategic review and upcoming Quadrennial Defense 
Review may change strategy or requirements for combat force 
structure, the committee believes that fiscal year 2003 
procurement of C-17s will need to be maintained at current 
levels to replace the aging C-141 aircraft fleet scheduled for 
retirement. Accordingly, the committee recommends a transfer of 
$36.0 million from C-17 procurement to C-17 advance procurement 
in order to provide for the more efficient production rate of 
15 C-17s in fiscal year 2003, rather than the 12 now planned.
    Therefore, the committee recommends $2,839.8 million for 
the procurement of 15 C-17s, a decrease of $36.0 million, and 
$264.1 million, an increase of $36.0 million for the advance 
procurement for 15 C-17s in fiscal year 2003.
    The committee has included a provision that would authorize 
the Secretary of Defense to proceed with a follow-on C-17 
multiyear procurement contract if the Secretary certifies the 
necessity to do so prior to enactment of the National Defense 
Authorization Act for Fiscal Year 2002.

CV-22

    The budget request contained $95.1 million for CV-22 
engineering and support costs, $15.0 million for the advance 
procurement for three CV-22 tiltrotor aircraft in fiscal year 
2003, and $26.4 million for CV-22 spares. The budget request 
also contained $28.2 million, In Procurement, Defense-Wide, to 
procure Special Operations Forces (SOF)-unique CV-22 long-lead 
items, peculiar training equipment, publications, and technical 
data. Additionally, the budget request contained $546.7 million 
in PE 64262N, of which $100.0 million was included to continue 
the development of two CV-22 aircraft for initial operational 
test and evaluation (IOT&E) activities.
    The V-22 is a tilt-rotor vertical takeoff and landing 
aircraft that is being developed first for the Marine Corps as 
an MV-22 variant, followed by a CV-22 variant for the Air 
Force's SOF, and an HV-22 variant for the Navy. The committee 
notes that following two mishaps involving the MV-22 last year, 
the Marine Corps grounded its fleet pending a review of the 
program by a panel appointed by the Secretary of Defense. In 
April 2001, the panel recommended a near-term decrease in V-22 
production along with increased design and re-engineering 
efforts to improve the aircraft's safety and reliability. These 
actions have delayed both the full-rate MV-22 production 
decision and the development activities of the CV-22 variant. 
The committee further notes that thereport accompanying H.R 
2216 (H. Rept. 107-148) included the rescission of a portion of the 
fiscal year 2001 funds for MV-22 and CV-22 production and for CV-22 
test articles pending the correction of the MV-22 deficiencies.
    Consequently, the committee believes that CV-22 procurement 
funds and CV-22 test article development funds are not required 
in fiscal year 2002 and recommends the following amounts: no 
funds for CV-22 procurement, a decrease of $95.1 million; no 
funds for CV-22 advance procurement, a decrease of $15.0 
million; no funds for CV-22 spare parts, a decrease of $26.4 
million; no funds in Procurement, Defense-Wide to procure SOF-
unique CV-22 long-lead items, a decrease of $28.2 million; and 
$446.7 million for PE 64262N, a decrease of $100.0 million for 
development of two CV-22 aircraft for IOT&E activities.

Defense airborne reconnaissance program (DARP), line 55

    The budget request contained $195.0 million for various RC-
135, U-2 and C-130 aircraft modifications but included no funds 
to modify the RC-135S Cobra Ball to a dual-sided, three-channel 
optics and signal collection configuration.
    The RC-135S Cobra Ball fleet consists of three aircraft 
configured for airborne measurement and signature intelligence 
(MASINT) and signals intelligence (SIGINT) collection missions 
to monitor and verify treaty agreements and to provide 
ballistic missile defense information to theater commanders. 
The committee notes that, of the RC-135S three-aircraft fleet, 
only one is configured with the dual-sided, three-channel 
optics and signal collection modification that allows it to 
collect MASINT and SIGINT on both sides of the aircraft with 
improved accuracy. The committee believes that one additional 
RC-135S Cobra Ball aircraft should be upgraded with this 
capability.
    Consequently, the committee recommends $206.0 million for 
DARP, line 55, an increase of $11.0 million, to modify one RC-
135S Cobra Ball aircraft to the dual-sided three-channel optics 
and signal collection configuration.

F-15 modifications

    The budget request contained $212.2 million for F-15 
modifications, of which $24.4 million was included to convert 
the F100 engine to the F100-220E configuration and $39.9 
million was included for the ALQ-135 Band 1.5 countermeasures 
system modification. However, the budget request included no 
funds for F-15E fighter data link (FDL)-16 modification.
    Conversion kits for the F-15's F100 engine, also known as 
``E-kits,'' provide increased thrust, greater reliability, 
better fuel efficiency, and reduced operations and maintenance 
costs. For fiscal year 2001, the committee recommended a $70.0 
million increase to accelerate this modification and notes that 
$36.0 million was appropriated for this purpose.
    The committee continues to support this upgrade and, 
therefore, recommends an increase of $25.0 million to 
accelerate the conversion of the F-15 fleet's engines to the 
F100-220E configuration.
    The ALQ-135 Band 1.5 countermeasures system modification 
provides a self-protection jamming capability against modern 
surface-to-air enemy missiles and is integrated with the F-15's 
existing internal countermeasure set and its ALR-56C radar 
warning receiver to provide full threat coverage. The committee 
believes that improved self-protection capability such as the 
ALQ-135 Band 1.5 countermeasures system modification addresses 
deficiencies identified subsequent to Operation Allied Force in 
1999, as well as those in current combat operations.
    Accordingly, the committee recommends an increase of $8.0 
million for the ALQ-135 Band 1.5 countermeasures system 
modification. While the committee notes that the budget 
estimates for fiscal years 2003 to 2007 do not reflect the 
Department's strategic review results, the committee strongly 
urges the Air Force to establish a consistent funding approach 
for the ALQ-135 Band 1.5 countermeasures system that will 
complete production and installation of this modification on 
all F-15E aircraft by fiscal year 2005.
    The F-15E FDL-16 modification provides the F-15E with a 
tactical data link radio which significantly improves 
operational effectiveness by providing real-time, jam-resistant 
digital data and voice transfer capability. The committee 
understands that this continuous automated exchange of data 
between aircraft provides our pilots with a significant 
increase in situational awareness and improves survivability by 
four times. The committee notes that the final increment of F-
15E FDL-16 funding is currently planned for fiscal year 2004 
but believes that such timing will result in an F-15E FDL-16 
production break with a concomitant increase in costs to 
restart production and higher unit costs at the later date.
    Consequently, the committee recommends an increase of $19.5 
million to accelerate the final increment of F-15E FDL-16 
procurement. In total, the committee recommends $264.7 million 
for F-15 modifications, an increase of $52.5 million.

F-16 modifications

    The budget request contained $232.0 million for various F-
16 modifications but included no funds for advanced concept 
ejection seat (ACES) co-operative improvement program (CIP).
    The committee understands that, as a result of pilot 
demographic changes, 17 percent of the pilot population is 
outside the weight threshold for existing ejection seats, and 
that the ACES CIP will address this safety concern by improving 
seat stability and limb restraint to accommodate a wider range 
of pilot sizes.
    Consequently, the committee recommends $234.0 million for 
F-16 modifications, an increase of $2.0 million, to begin the 
incorporation of ACES CIP safety improvements and expects the 
Department of the Air Force to budget for this upgrade in its 
future years defense program.

Fixed aircrew standardized seats

    The budget request contained $51.0 million for other 
modifications but included no funds for fixed aircrew 
standardized seats (FASS).
    FASS would provide crewmembers and passengers on C-130, C-
135, C-141, C-5, E-3, KC-10, C-17, and E-8 aircraft protection 
against aircraft crash loads up to 16 times the force of 
gravity. In prior years, the committee has supported the 
development of theFASS and continues to believe that its 
implementation will not only increase safety, but also reduce supply 
and maintenance costs through the commonality and interchangeability of 
its parts.
    Accordingly, the committee recommends $55.8 million for 
other modifications, an increase of $4.8 million, to begin 
procurement of FASS.

MC-130 simulation training upgrades

    The budget request contained $1.4 million for C-130 post-
production support but included no funds for an MC-130P weapon 
system trainer (WST) software upgrade or for an MC-130H 
simulator visual scene and sensor display.
    The committee notes that the MC-130P simulator software is 
three versions behind the software installed on MC-130P 
aircraft and fails to properly interface with critical 
navigation and defensive avionics systems. The committee 
understands that this training limitation results in the 
development of poor MC-130P student aircrew habits that 
negatively affect mission accomplishment. Consequently, the 
committee recommends an increase of $1.5 million for an MC-130P 
WST software upgrade to correct this deficiency.
    The committee also understands that the current MC-130H 
simulator uses a visual display system that limits the 
aircrew's cockpit field of view, resulting in poor night vision 
training. Accordingly, the committee recommends an increase of 
$1.3 million to upgrade the MC-130H simulator's visual scene 
and sensor display to improve aircrew night vision training. In 
total, the committee recommends $4.2 million for C-130 post-
production support, an increase of $2.8 million.

Predator unmanned aerial vehicle (UAV)

    The budget request contained $19.6 million for procurement 
of six Predator UAV systems but included no funds for the 
Predator B, a larger, faster variant with increased payload 
capacity. Each Predator UAV system consists of four air 
vehicles, one ground control station, a communications suite, 
and associated ground support equipment. The budget request 
also contained $10.4 million for Predator modifications but 
included no funds for a structured reliability and 
maintainability program.
    The Predator UAV system provides long-dwell, real-time 
intelligence information to Joint Task Force Commanders. The 
committee notes that following the accomplishments of the 
Predator UAV system in its reconnaissance role, the system has 
also successfully demonstrated its capability to be weaponized 
to deliver Hellfire missiles. As missions for the Predator UAV 
system expand, the committee believes that improved speed and 
payload capacity are necessary.
    Accordingly, the committee recommends $39.6 million for 
Predator procurement, an increase of $20.0 million, for the 
acquisition of the follow-on Predator B variant.
    However, the committee notes that the Predator UAV system 
is accumulating significant flying hours and believes that the 
long-term sustainment of current reliability and 
maintainability levels is imperative. Consequently, the 
committee recommends $16.4 million for Predator modifications, 
an increase of $6.0 million, to facilitate the implementation 
of a structured reliability and maintainability program.

                   Ammunition Procurement, Air Force

                                Overview

    The budget request contained $865.3 million for Ammunition 
Procurement, Air Force in fiscal year 2002. The committee 
recommends authorization of $871.3 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                     Missile Procurement, Air Force

                                Overview

    The budget request contained $3,233.5 million for Missile 
Procurement, Air Force in fiscal year 2002. The committee 
recommends authorization of $3,226.3 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                      Other Procurement, Air Force

                                Overview

    The budget request contained $8,159.5 million for Other 
Procurement, Air Force in fiscal year 2002. The committee 
recommends authorization of $8,250.8 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Air national guard air traffic control tower radio upgrade

    The budget request contained $4.7 million for air traffic 
control and landing systems but included no funds to upgrade 
the air traffic control tower radio systems at McEntire Air 
National Guard Base (ANGB).
    The committee notes that current plans for this new air 
traffic control tower anticipate the continued use of outdated 
radio systems and believes that flight safety will be 
significantly enhanced with the installation of modern digital 
radios.
    Consequently, the committee recommends $5.2 million for air 
traffic control and landing systems, an increase of $500 
thousand, to upgrade the air traffic control tower radio system 
at McEntire ANGB.

Combat arms training system (CATS)

    The budget request contained $12.0 million for base 
procured equipment but included no funds for CATS. CATS is a 
computer-based simulation system that provides marksmanship 
training for security force personnel as well as training to 
deal with less-than-lethal judgmental scenarios.
    The committee notes that the Air Force has also recognized 
the value of CATS and has authorized Air Force reserve 
component category ``C'' personnel to qualify on this trainer 
instead of conducting live-fire training, which saves 
substantial live training ammunition costs. The committee also 
notes the need for additional CATS for Air National Guard (ANG) 
security force units to meet the demanding training requirement 
for both their wartime and peacetime missions. These units must 
be capable of performing both combat and police missions, which 
requires that they be fully trained to respond to situations of 
varying levels of threat, including anti-terrorism training, to 
protect the 72 ANG sites located throughout the United States. 
Since the Air Force increasingly relies on ANG security forces 
for overseas deployments and for anti-terrorism missions, the 
committee views the training proficiency provided by CATS to be 
imperative.
    Therefore, the committee recommends $17.0 million for base 
procured equipment, an increase of $5.0 million, for the CATS.

Laser eye protection

    The budget request contained $7.7 million for items less 
than $5.0 million, of which $2.8 million was included for clear 
laser eye protection for infrared (CLEPIR) spectacles.
    CLEPIR spectacles reflect infrared laser energy wavelengths 
away from the eye while allowing the transmission of other 
light wavelengths such that CLEPIR spectacles can be used day 
or night and in conjunction with night vision goggles. The 
committee understands that the Air Force requires additional 
CLEPIR spectacles for use in Europe and Southwest Asia and 
notes that increased CLEPIR spectacle production in fiscal year 
2002 would provide for a more economic production rate.
    Accordingly, the committee recommends $11.7 million for 
items less than $5.0 million, an increase of $4.0 million, for 
CLEPIR spectacles.

Senior scout

    The budget request contained $2.0 million for intelligence 
communications equipment but included no funds to upgrade 
Senior Scout equipment. Senior Scout is an intelligence, 
surveillance, and reconnaissance suite of equipment, configured 
in a shelter capable of installation on C-130E or C-130H 
aircraft, that provides communications and electronic signals 
intelligence collection.
    The committee notes that Senior Scout mission data 
management processors currently use 16-year old technology and 
are not compatible with modern data storage or retrieval 
systems. Consequently, the committee recommends an increase of 
$820 thousand to update the Senior Scout data management 
processor.
    The committee also notes that joint tactical information 
dissemination system (JTIDS) capability is not fully 
implemented in the Senior Scout suite and recommends an 
increase of $3.6 million to procure and install JTIDS 
connectivity equipment.
    The committee understands that of the three existing Senior 
Scout shelters, one is an older configuration and requires 
updating to avoid the future operating costs of maintaining two 
different configurations. Accordingly, the committee recommends 
an increase of $2.8 million to modernize the third Senior Scout 
shelter.
    Finally, the committee has learned that the Senior Scout 
ground data reduction (GDR) system, used to refine emitter 
location data, contains legacy computer equipment that is no 
longer commercially supportable. Therefore, the committee 
recommends an increase of $1.6 million to modernize the GDR 
system.
    In total, the committee recommends $10.8 million for 
intelligence communications equipment, an increase of $8.8 
million, to upgrade Senior Scout equipment.

Supply asset tracking system (SATS)

    The budget request contained $14.4 million for mechanized 
material handling equipment but included no funds for SATS.
    SATS provides total asset visibility and reduces 
documentation at the base level by incorporating radio 
frequency terminals and smart cards that electronically confirm 
each transaction and eliminate documentation in the delivery 
process.
    The committee notes that Congress has provided additional 
funds for SATS installation over the past two years and, 
consistent with these actions, recommends $22.4 million for 
mechanized material handling equipment, an increase of $8.0 
million, to continue the installation of this system at Air 
Force bases worldwide.

Theater air control system improvement (TACSI)

    The budget request contained $15.1 million for TACSI, but 
included no funds to initiate a technology insertion and 
sustainment program for the Air National Guard's (ANG) AN/TYQ-
23 modular control equipment (MCE) operations modules.
    The AN/TYQ-23 MCE operations module is used to manage air 
operations in a deployed location. The committee notes that the 
Marine Corps also uses the AN/TYQ-23 MCE and has embarked on a 
technology insertion program to replace their operations 
modules with new software and hardware that improves 
performance and is more sustainable. The committee understands 
that this technology insertion and sustainment upgrade program 
will ensure that the AN/TYQ-23 MCE operations modules are 
viable to perform contingency operational deployment missions 
for at least 10 additional years.
    Consequently, the committee recommends $30.1 million for 
TACSI, an increase of $15.0 million, to initiate a technology 
insertion and sustainment program for the ANG's AN/TYQ-23 MCE 
operations modules.

                       Procurement, Defense-Wide

                                Overview

    The budget request contained $1,604.0 million for 
Procurement, Defense-Wide in fiscal year 2002. The committee 
recommends authorization of $2,267.3 million for fiscal year 
2002.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.

                       Items of Special Interest

Chemical/biological defense procurement program

    The budget request also contained a total of $348.7 million 
for chemical/biological defense (CBD) procurement, including 
$114.3 million for procurement of individual protection 
equipment, $15.2 million for decontamination, $155.9 million 
for the joint biological defense program, $38.9 million for 
collective protection, and $24.3 million for contamination 
avoidance.
            Anthrax vaccination immunization program
    The committee is concerned with the lack of progress in the 
completion of the contractor submitting a Biologic License 
Application Supplement for production of Anthrax Vaccine 
Adsorbed (AVA). Accordingly, if by February 1, 2002, the 
Secretary of Defense determines that the contractor has failed 
to submit to the U.S. Food and Drug Administration (FDA) a 
completed Biologic License Application Supplement for 
production of AVA, then the committee directs that the 
Secretary review all contracts for the production, fill and 
packaging of the AVA and report to the congressional defense 
committees the results of this review no later than April 1, 
2002. If based on that review, or at the conclusion of FDA's 
review of the Biologic License Application Supplement, 
discrepancies are found that cannot be resolved in a fiscally 
prudent manner then the Secretary should not request funds to 
continue the current production contract in future budget 
submissions, but should take action to procure a suitable 
vaccine from an alternative source.
            Chemical/biological defense collective protection shelters
    The committee recommends $51.9 million for procurement of 
collective protection equipment, an increase of $13.0 million, 
for procurement of CBD collective protection shelters.

Portable intelligence collection and relay capability (PICRC)

    The budget request contained $8.1 million for special 
operations forces (SOF) intelligence systems but included no 
funds for the PICRC.
    The PICRC integrates commercial-off-the-shelf, full-
dimensional mapping and display software; desktop computers; 
hand-held computing devices; and wireless communications to 
provide SOF operators with high-resolution imagery for 
precision navigation, annotation of real-time visual 
observations, and relaying information to command elements.
    The committee understands that this system would 
significantly enhance SOF capabilities to accurately collect, 
quickly report, and promptly act upon real-time intelligence 
data. Therefore, the committee recommends $13.1 million for SOF 
intelligence systems, an increase of $5.0 million, for 
procurement of PICRC systems.

           Chemical Agents and Munitions Destruction, Defense

                                Overview

    As described elsewhere in this report, the committee 
recommends transferring the budget request of $1,153.6 million 
for Chemical Agents and Munitions Destruction, Army (CAMD, A) 
to Chemical Agents and Munitions Destruction, Defense (CAMD, 
D), and recommends a total of $1,078.6 million for Chemical 
Agents and Munitions Destruction, Defense, including $192.9 
million for research, development, test, and evaluation, $157.2 
million for procurement, and $728.5 for operations and 
maintenance. Unless otherwise specified, adjustments are 
without prejudice and based on affordability consideration.

                       Items of Special Interest

Chemical agents and munitions destruction

    The committee notes that chemical demilitarization 
facilities for 95 percent of the stockpile at eight stockpile 
storage sites in the continental United States are either in 
operation, under construction, or have had permits granted. To 
date, 22 percent of the total U.S. stockpile has been destroyed 
in operational demilitarization facilities at Johnston Atoll 
and Tooele, Utah. Stockpile demilitarization operations at the 
former facility have been completed and shutdown of that 
facility begun. Construction of the Anniston, Alabama, facility 
was completed in June 2001 and systematization operations have 
begun at that location, while construction of the Umatilla, 
Oregon, facility is 98 percent complete and the Pine Bluff, 
Arkansas, facility is 53 percent complete. Only facilities at 
the Pueblo Chemical Depot, Colorado, and Lexington-Blue Grass 
Army Depot, Kentucky, which are being addressed by the 
Assembled Chemical Weapons Assessment (ACWA), are not yet 
covered. Current law requires the Secretary of Defense to 
provide recommendations on alternative disposal technologies 
for these two facilities by the end of the calendar year. The 
ACWA program evaluation of potential alternative technologies 
for assembled weapons has been completed and a Defense 
Acquisition Board review of the program is underway that is 
expected to provide the basis for Secretary of Defense decision 
in December 2001, and report to Congress on the 
demilitarization technologies that will be used at Pueblo and 
Blue Grass. The review will also assess the overall management 
and funding of the program and the ability of the program to 
complete destruction of the stockpile by April 29, 2007, as 
required by the Chemical Weapons Convention.
            Review of program for destruction of lethal chemical agents 
                    and munitions
    Section 141(a) of the National Defense Authorization Act 
for Fiscal Year 2000 (Public Law 106-65) required the Secretary 
of Defense to conduct an assessment of the current program for 
destruction of the United States stockpile of chemical agents 
and munitions, including the Assembled Chemical Weapons 
Assessment, for the purposes of significantly reducing the cost 
of the program and ensuring its completion in accordance with 
the obligations of the United States under the Chemical Weapons 
Convention while maintaining maximum protection of the general 
public, the personnel involved in the program, and the 
environment. The provision required the Secretary of Defense to 
report the results of the assessment to Congress by March 1, 
2000, including those actions taken, or planned to be taken by 
the Secretary and any recommendations for additional 
legislation required to achieve the purposes of the assessment 
and of the chemical agents and munitions destruction program.
    The committee notes that the Secretary of Defense has 
initiated a Defense Acquisition Board review of the chemical 
agents and munitions destruction program to assess the results 
of the Assembled Chemical Weapons Assessment, to make 
recommendations for the possible use of alternative 
technologies for destruction of the stockpile, and to review 
the overall management and conduct of the program. As a part of 
this review, the committee directs the Secretary of Defense to 
update the assessmentrequired by Public Law 106-65 and to 
report the results of that updated assessment to the congressional 
defense committees by March 1, 2002.

                         LEGISLATIVE PROVISIONS

              Subtitle A--Authorization of Appropriations

           Sections 101-107--Authorization of Appropriations

    These sections would authorize the recommended fiscal year 
2002 funding levels for all procurement accounts.

                       Subtitle B--Army Programs

   Section 111--Extension of Multiyear Contract for Family of Medium 
                           Tactical Vehicles

    This section would amend Section 112 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85) to authorize the Secretary of the Army to extend the 
existing multiyear procurement contract for one year to 
continue procuring ``A1'' variants of the Family of Medium 
Tactical Vehicles if the Secretary determines that it is 
necessary to do so in order to prevent a break in production.

Section 112--Repeal of Limitation on Number of Bunker Defeat Munitions 
                          that May Be Acquired

    This section would repeal Section 116 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337).

                     Subtitle C--Air Force Programs

Section 121--Responsibility of Air Force for Contracts for All Defense 
                             Space Launches

    This section would require the Secretary of the Air Force 
to prepare, negotiate, execute, and manage all Department of 
Defense contracts for space launch vehicles and space launch 
services and to report to the congressional defense and 
intelligence committees on the implementation of this 
requirement.

          Section 122--Multiyear Procurement of C-17 Aircraft

    This section would, beginning in fiscal year 2002, 
authorize the Secretary of Defense to enter into a follow-on 
multi-year contract or extend the current multi-year contract 
in order to procure up to 60 additional C-17 aircraft if the 
Secretary certifies to the congressional defense committees 
prior to the enactment of the National Defense Authorization 
Act for Fiscal Year 2002 that it is in the interest of the 
Department of Defense to proceed with either of these two 
options.

               Subtitle D--Chemical Munitions Destruction

   Section 141--Destruction of Existing Stockpile of Lethal Chemical 
                          Agents and Munitions

    This section would amend section 152 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 50 U.S.C. note) to add to the requirements that must be 
satisfied before the Secretary of Defense may initiate 
destruction of the chemical munitions stockpile stored at a 
chemical stockpile destruction site the requirement that 
emergency preparedness and response capabilities have been 
established at the site and in the surrounding communities. The 
section would require the Under Secretary of Defense 
(Acquisition, Technology, and Logistics) to convene an 
independent oversight board to make a recommendation to the 
Under Secretary, no later than six months after the board is 
convened, whether the destruction of the chemical munitions 
stockpile should be initiated at a particular chemical 
stockpile destruction site. Finally, the section would require 
that the Under Secretary, after considering a negative 
recommendation of the board, may not recommend beginning 
destruction of the chemical munitions stockpile at a site until 
90 days after the Under Secretary notifies the Congress of his 
intent to recommend initiation of live agents and munitions 
destruction operations.
    The committee notes that the live chemical agents and 
munitions destruction operations are scheduled to begin at 
Anniston Chemical Activity, Alabama, in the third quarter of 
fiscal year 2002 and encourages the Under Secretary to convene 
the oversight board for the Anniston site immediately upon 
enactment of this act. For the other sites for which live agent 
and munitions destruction operations are scheduled to begin 
upon completion of construction and systematization operations 
at the site, the committee recommends that the Under Secretary 
convene the oversight board no later than nine months prior to 
the date scheduled for beginning live agents and munitions 
destruction operations. The committee also recommends the Under 
Secretary to establish as a goal for the panel appointed for 
each site the completion of the panel's review of the readiness 
to begin live agents and munitions destruction operations at 
the site no later that 120 days prior to the scheduled 
initiation of such operations.

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

                                OVERVIEW

    The budget request contained $47,429.4 million for 
research, development, test, and evaluation (RDT&E), 
representing an increase to the amount of $41,008.6 million 
provided for fiscal year 2001. The committee recommends 
$47,735.2 million, an increase of $230.5 million to the budget 
request. The committee also recommends $65.3 million, the 
requested amount, for Defense Health Program RDT&E funding.
    The committee notes that the fiscal year 2002 request for 
RDT&E funding represents the first significant increase in the 
past decade, and the first time in six years that the requested 
amount for RDT&E was greater than the amount provided by 
Congress in the previous year.
    The committee strongly supports this much needed increase 
and notes that the Department of Defense and the military 
services have all initiated major efforts to transform military 
warfighting capabilities to better prepare for future threats 
and challenges. While supportive of these transformation 
efforts, the committee remains concerned that the largest 
portion of the total RDT&E request is contained in the fielded 
system development category, the area primarily dedicated to 
upgrades of existing systems. The committee reviewed these 
program increases and recommended a number of funding transfers 
specified in the report from mature systems development 
accounts to science & technology programs which are more 
representative of transformation.
    The committee believes that the amount requested for RDT&E 
for fiscal year 2002 represents an appropriate level of funding 
to support initial transformation efforts, but this level of 
funding is insufficient to support both transformation of the 
services and continued modernization of legacy capabilities. 
The committee urges the Secretary of Defense to outline clearly 
the priorities for RDT&E investment strategies in consonance 
with the results of the Quadrennial Defense Review results and 
in coordination with Congress.

                               Army RDT&E

                                Overview

    The budget request contained $6,693.9 million for Army 
RDT&E. The committee recommends authorization of $6,749.0 
million, an increase of $235.8 million and the transfer of 
$180.7 million for missile defense programs from Army RDT&E to 
Defense-wide RDT&E.
    The committee recommendations for the fiscal year 2002 Army 
RDT&E program are identified in the table below. Major changes 
to the Army request are discussed following the table.

                       Items of Special Interest

Advanced display technology
    The budget request contained $27.8 million in PE 62705A for 
applied research in electronics and electronic devices; $71.3 
million in PE 62236N for warfighter sustainment applied 
research; and $69.1 million in PE 62202F for human 
effectiveness applied research, including $4.4 million for 
applied research in advanced visual displays. No funds were 
included for advanced high definition displays in the budget 
request for the Defense Advanced Research Project Agency 
(DARPA).
    The committee notes that the responsibility for supporting 
the development of advanced high definition display 
technologies for military applications, which cannot be met by 
commercial industry, has transitioned from DARPA to the 
research and development programs of the military departments. 
The committee report on H. R. 4205 (H. Rept. 106-616) directed 
the Secretary of Defense to develop a strategy for meeting the 
Department's requirement for advanced high definition displays 
and to report the proposed strategy and budget requirements to 
the congressional defense committees with the submission of the 
fiscal year 2002 budget request. The Secretary's report 
indicated that the Department of Defense will make use of 
global industrial capability where it is available, relying on 
an highly competitive and rapidly evolving global market. 
Research and development investments within the Department will 
be focused on those needs where industry is not yet leading the 
way and a military advantage is foreseen. DARPA funding for 
large area, high definition displays ends in fiscal year 2001. 
Service-funded work in micro-displays for cockpits and 
immersive head-mounted systems continues through 2005. New 
initiatives in 25 megapixel and true three-dimensional displays 
will support transition of the technology for both commercial 
and military applications.
    The committee recommends an increase of $4.0 million in PE 
62705A, an increase of $4.0 million in PE 62236N, and an 
increase of $5.0 million in PE 62202F for applied research in 
advanced high definition displays for military applications.
All source analysis system
    The budget request included $42.2 million in PE 64321A for 
the All Source Analysis System (ASAS), but included no funds to 
develop a multi-discipline capability for the Army's stability 
and support operations.
    The committee strongly endorses the Army's objective force 
concept and supports the effort to transform the current force 
to a lighter, leaner, stealthier, more lethal, and more mobile 
one. Further, the committee supports the plan to transition to 
the objective force by initially fielding interim brigade 
combat teams. However, the committee is concerned with the 
Department's lack of commitment to concurrently develop an 
open-architecture data-exchange capability suitable for both 
the interim and objective forces at all echelons of command. 
The committee is aware of the stated plans to develop ASAS-
Light as the baseline automated support system for intelligence 
and electronic warfare for the interim brigades and the First 
Digitized Division. To maintain interoperability between ASAS-
Light and other automated battle management systems, the 
committee encourages the Army to develop a multi-discipline 
capability for the Army's stability and support operations.
    Therefore, the committee recommends $45.7 million in PE 
64321A, an increase of $3.5 million, to develop this 
capability.
Applied communications and information networking program
    The budget request contained no funds in PE 64805A for the 
Applied Communications and Information Networking (ACIN) 
program.
    The committee understands that the ACIN program includes 
projects aimed at integrating commercial off-the-shelf 
components and adapting commercial technologies to fulfill 
military communications applications for 21st century warfare. 
Consistent with its prior years actions to promote increased 
partnering with commercial industry, the committee recommends 
an increase of $15.0 million in PE 64805A for ACIN.
Army missile defense systems integration
    The budget request contained $19.5 million in PE 63308A for 
Army missile defense systems integration, but did not include 
funds for super-cluster memory technology, or P3 micro-power 
devices. The committee notes that designing defensive missile 
systems requires sophisticated, powerful simulations that 
accurately characterize missile flight. The committee is aware 
that super-cluster distributed memory technology holds promise 
as a low-cost means to run required simulations quickly.
    The committee is also aware that missile defense systems 
require micro-power devices for autonomous and remote 
applications.
    The committee recommends $31.5 million in PE 63308A, an 
increase of $4.0 million for the Army Space and Missile Defense 
Command supervised super-cluster distributed memory technology 
demonstration, $3.0 million for P3 micro power devices, $3.0 
million for family of systems simulators, $3.0 million for 
thermionics technology, and a decrease of $1.0 million for 
management savings.
Aviation engineering development
    The budget request contained $2.3 million in PE 64801A for 
aviation engineering development but included no funds for the 
development of the cockpit air bag system (CABS) for CH-47 
Chinook aircraft.
    The committee is highly supportive of technological 
advances that contribute to improved aircraft crashworthiness 
and aircrew safety, and, therefore, recommends $4.8 million in 
PE 64801A, an increase of $2.5 million, for the integration of 
the CABS into the CH-47 Chinook upgrade program.
Brooks Air Force Base energy and sustainability laboratory
    The budget request contained $42.9 million in PE 62784A for 
military engineering technology, but included no funds for the 
Energy and Sustainability Laboratory (ESL) at Brooks Air Force 
Base.
    The laboratory is a consortium of Air Force and university 
partners working to improve life-cycle effectiveness of real 
assets and the infrastructure on the base.
    The committee recommends $45.9 million in PE 62784A, an 
increase of $3.0 million for Army Corps of Engineers' 
Construction Research Laboratory collaboration with the ESL.

Collaboration in biotechnology research

    The budget request contained $69.1 million in PE 61104A for 
university and industry research, including federated 
laboratories.
    The committee notes that the federated laboratories program 
is a very successful peer reviewed program. The committee is 
aware that biotechnology is increasingly important and offers 
many potential applications in support of the Army's transition 
to the objective force, such as casualty reduction, improved 
nutrition, protection from infectious diseases, and chemical/
biological agents.
    The committee supports effective collaboration between the 
government, industry and academia and recommends $79.1 million 
in PE 61104A, an increase of $10.0 million for biotechnology 
collaborative research.

Combat ready food safety

    The budget request contained $27.1 million in PE 62786A for 
warfighter technology, and included $5.0 million for joint 
service combat feeding technology.
    The committee notes that continued improvement in food 
processing is important to ensure the safety of ready-to-eat 
meals.
    The committee recommends $30.1 million in PE 62786A, an 
increase of $3.0 million for research and development of 
improved meal ready-to-eat processing.

Combustion-driven eye safe laser

    The budget request contained $20.6 million in PE 62709A for 
night vision, but included no funds for combustion-driven eye-
safe laser.
    The committee is aware that eye-safe lasers are important 
for military applications, and that the combustion-driven eye-
safe laser has potential to meet requirements for several 
applications.
    The committee recommends $22.6 million in PE 2709A, an 
increase of $2.0 million to complete development of the 
combustion-driven eye-safe laser.

Comanche

    The budget request contained $787.9 million in PE 64223A 
for Comanche.
    The committee notes that the Comanche armed reconnaissance 
helicopter is the only new Army aviation system under 
development. The committee further notes that Comanche will 
provide key capability for the objective force with its state-
of-the-art stealthy platform, multiple sensors, and advanced 
weapons.
    The committee continues to support Comanche and recommends 
the budget request and increases described elsewhere in this 
report.

Combat vehicle and automotive advanced technology

    The budget request contained $193.9 million in PE 63005A 
for combat vehicle and automotive advanced technology, but 
included no funds for standardized exchange of product data, 
document conversion, or the medium brigade composite bridge.
    The committee notes that standardized exchange of product 
data has the potential to increase efficiency and reduce costs 
of parts, and is aware that the National Automotive Center 
standardized exchange of product data (N-STEP) initiative is 
intended to fill this void. The committee is aware that many 
existing documents require conversion to 2-dimension/3-
dimension computer aided design format.
    The committee is aware of the need for a lightweight bridge 
for medium brigades.
    The committee recommends $201.9 million in PE 63005A, an 
increase of $7.0 million for N-STEP, an increase of $9.0 
million for Army medium brigade composite bridge, an increase 
of $2.0 million for conversion of technical manuals, and an 
undistributed decrease of $10.0 million.

Crusader

    The budget request contained $447.9 million in PE 63854A 
for Crusader.
    The committee is aware that the Army considers the Crusader 
self-propelled howitzer an essential war fighting capability as 
it transforms itself to a lighter, more lethal, and more 
logistically efficient force.
    The committee notes that developmental firing testing has 
clearly demonstrated a significantly increased capability. The 
committee further notes that many attributes such as the high 
degree of automation, imbedded diagnostics, and improved 
mobility are clearly technology carriers for future autonomous 
and semi-autonomous vehicles. The committee is concerned that 
funds allocated to management appear to be excessive, and 
directs that $17.9 million of the funds allocated within the 
program for management be redirected within the Crusader 
program to develop technology, in particular, to reduce 
Crusader weight and production costs.
    The committee strongly supports continued Crusader 
development and recommends the budget request.

Dismounted situational awareness system

    The budget request contained $29.3 million for digitization 
in PE 23758A, but included no funds for the dismounted 
situational awareness system.
    The committee is aware that situational awareness is 
critical for dismounted soldiers. The committee notes that the 
dismounted situational awareness system (DISM), the result of a 
very successful commercial-off-the-shelf technology-based small 
business innovative research effort, is being transitioned to 
the Army's force XXI battle command brigade and below (FBCB2) 
as a dismounted extension of the vehicle based system.
    The committee recommends $31.3 million in PE 23758A, an 
increase of $2.0 million, for full scale testing of DISM.

Electronics and electronic devices

    The budget request contained $27.8 million in PE 62705A for 
electronics and electronic devices.
    The committee notes that hybrid power systems and other 
fuel cell applications have the potential to provide more cost 
effective portable power for future military systems.
    The committee recommends an increase of $5.0 million in PE 
62705A for hybrid battery-fuel cell and other fuel cell power 
sources.

Electronic warfare (EW) development

    The budget request contained $57.0 million in PE 64270A for 
the development of EW equipment, of which $43.8 million was for 
continued development of the Advanced Threat Infrared 
Countermeasures/Common Missile Warning System (ATIRCM/CMWS).
    The ATIRCM system integrates defensive infrared (IR) 
countermeasures into currently fielded aircraft for more 
effective protection against a greater number of IR-guided 
missiles than is provided by currently fielded technology. The 
CMWS provides warning of a threat IR-guided missile on a 
variety of tactical aircraft and helicopters.
    The committee is aware of a critical requirement to upgrade 
Army test facilities in order to perform effective tests on 
integrated helicopter self-protection systems installed on the 
AH-64D Apache Longbow against multi-mode missile seekers.
    Accordingly, the committee recommends $66.0 million for PE 
64270A, an increase of $9.0 million, for this purpose.

Environmental quality technology

    The budget request contained $7.5 million in PE 63779A for 
environmental quality technology, but included no funds for 
either an asbestos removal pilot project or the Porta Bella 
environmental cleanup technology demonstration.
    The committee is aware that asbestos remediation remains a 
problem within the Department of Defense and notes the need for 
research to find better, more cost-effective means of 
remediation, including asbestos conversion.
    The committee also notes that while the cleanup of ordnance 
and explosive wastes at the Porta Bella site is important to 
the Army and the local community, it has much broader potential 
benefits because the new technology developed under this pilot 
program can be used at similar sites elsewhere.
    The committee recommends $14.0 million in PE 63779A, an 
increase of $2.0 million for asbestos conversion research and 
technology development, an increase of $7.0 million for 
completion of the Porta Bella environmental cleanup technology 
demonstration, and a general decrease of $2.5 million.

Full authority digital engine control

    The budget request contained $13.0 million in PE 23752A for 
aircraft engine component improvement, including $11.0 million 
for improvements to the T700 engine family.
    The committee notes that full authority digital engine 
control (FADEC) improves capability and reliability of aircraft 
engines. The committee further notes that development of a 
dual-channel FADEC will improve engine reliability and aircraft 
safety.
    The committee recommends $21.0 million in PE 23752A, an 
increase of $8.0 million for completion of FADEC development.

Funding transfers to support transformation

    The committee is concerned that the largest area of growth 
in Army research and development investments has occurred in 
the category of fielded system development and other mature 
technologies. While these programs are important, the committee 
does not believe they support the highest priority efforts 
directly related to Army transformation. Therefore, the 
committee recommends the following decreases to Army accounts, 
to be transferred to other programs within the Army that 
support higher transformation priorities:

63003A..................................................      $9,000,000
63639A..................................................       2,986,000
63747A..................................................       3,482,000
63774A..................................................       2,756,000
63782A..................................................       5,000,000
65103A..................................................       3,000,000
65326A..................................................      10,000,000
65801A..................................................       9,000,000
65803A..................................................       5,000,000
23735A..................................................      12,000,000
23744A..................................................       5,000,000
23802A..................................................       6,000,000
78045A..................................................      10,000,000

High energy laser--low aspect target tracking

    The budget request contained no funds for the high energy 
laser--low aspect target tracking HEL-LATT program.
    The committee is aware of the Navy's interest in high 
energy laser weapons systems for ship self defense. This 
application is particularly challenging because the inbound 
target presents a low aspect view to the defender, and the 
weapons system must track the target in the presence of intense 
laser reflection. The program will use an existing megawatt 
class high energy laser and beam director at the Department of 
Defense high energy laser test facility, and full size targets 
to verify that a small cross section low altitude target can be 
simultaneously engaged and tracked.
    The committee recommends a $10.0 million increase to PE 
65605A and a $10.0 million increase to PE 63114N to support 
this new start.

Hybrid track technology

    The budget request contained $89.0 million in PE 65712A for 
support of operational testing, but included no funds for 
testing hybrid track technologies.
    The committee is aware that the MATTRACKS program is a 
commercial version of a technologically advanced independent 
rubber track system. The committee notes MATTRACKS is a simple 
bolt-in-place replacement for wheels for vehicles, including 
the HMMWV, that provides increased traction.
    The committee recommends $99.0 million in PE 65712A, an 
increase of $10.0 million for continued testing and evaluation 
of hybrid track technology.

Hyperspectral long-wave imager for the tactical environment

    The budget request included $6.9 million for Airborne 
Reconnaissance Operational Systems Development in PE 35206A, 
but included no funds for hyperspectral long wave imager.
    The committee notes the potential benefits of imagery 
intelligence, measurement and signature intelligence 
applications, and supports further development of hyperspectral 
sensors for these uses. The committee is aware of the unique 
day/night, all-terrain capability offered by the hyperspectral 
long wave imagery, and supports additional development of 
enhanced target detection algorithms and improved target 
detection hardware. The committee further notes the potential 
tactical applications of long wave infrared and medium wave 
infrared hyperspectral technology as a means for augmenting U-2 
and Global Hawk platforms.
    Accordingly, the committee authorizes $14.9 million in PE 
35206A, an increase of $8 million for hyper-spectral long wave 
imager.

Infantry support weapons

    The budget request contained no funds in PE 64601A for the 
development of infantry support weapons.
    The XM303 prototype is a lightweight, multi-shot, magazine-
fed, semi-automatic delivery system that attaches under both M-
16 series and M-4 carbine barrels and launches a variety of 
non-lethal blunt-force, dye-marking, malodorant, or 
illuminating projectiles.
    The committee understands that this system was initially 
developed by the Marine Corps, the Department of Defense's 
executive agent for non-lethal weapons development, but that 
the Army is now interested in the system's capabilities. 
Accordingly, the committee recommends an increase of $5.0 
million in PE 64601A for accelerated development of the XM303 
for Army units and so that it may enter into low-rate initial 
production sooner.

International medical program global satellite system

    The budget request contained $15.5 million in PE 63807A 
medical systems, and included $1.6 million for telemedicine.
    The committee is aware that the International Medical 
Program Global Satellite System (IMPGSS) successfully 
demonstrated the medical education component of its program in 
the Republic of Georgia. The integration of commercially 
reliable telecommunication capabilities, particularly `spot-
casting', with the education component, however, has yet to be 
proven.
    As a result, the committee recommends $18.5 million in PE 
63807A, an increase of $3.0 million for IMPGSS integrated 
development and delivery concept in at least two countries and 
strongly recommends that IMPGSS continue to be managed by the 
Telemedicine and Advanced Technology Research Center at Fort 
Detrick, Maryland.

Landmine warfare/barrier engineering development

    The budget request contained $89.2 million in PE 64808A for 
landmine warfare/barrier engineering development, of which 
$21.2 million was for non-self-destruct anti-personnel landmine 
alternatives (NSD-A).
    The committee understands that the Army does not plan to 
obligate $37.2 million of fiscal year 2001 NSD-A funds prior to 
the beginning of fiscal year 2002. As a result, the committee 
believes that these funds can be used to meet fiscal year 2002 
requirements.
    Accordingly, the committee recommends $69.2 million in PE 
64808A for fiscal year 2002, a decrease of $20.0 million.

Lightweight x-band radar antenna

    The budget request contained $30.4 million in PE 12419A for 
the Aerostat Joint Project, but included no funds for micro-
mechanical electronics systems (MEMS) based lightweight radar 
antenna.
    The committee is aware that development of a lightweight, 
MEMS based, electronically steerable x-band radar antenna has 
the potential to improve performance while reducing weight and 
power requirements for the joint elevated netted sensor 
(JLENS).
    The committee recommends $32.4 million in PE 12419A, an 
increase of $2.0 million for design of a lightweight, MEMS 
based, and electronically steerable antenna.

Medical advanced technology

    The budget request contained $17.5 million in PE 63002A for 
medical advanced technology, but included no funds for special 
operations medical diagnostic system (SOMDS), or volumetrically 
controlled manufacturing (VCM).
    The committee is aware that the clinical assessment and 
recording environment (CARE) is being adapted to support 
special operations forces. The committee notes that the first 
SOMDS, a beta version of CARE, has undergone successful 
testing.
    The committee also notes that VCM offers the potential to 
eliminate the current mode of failure in composites, de-
lamination, and polymer-fiber interface breakdown, and may also 
improve composite applications in aerospace and other 
manufacturing
    The committee recommends $23.5 million in PE 63002A, an 
increase of $1.0 million for SOMDS, and an increase of $5.0 
million for VCM. The committee further recommends an increase 
of $3.5 million in PE 63313A for aerospace applications of VCM.

Medical technology

    The budget request contained $82.5 million in PE 62787A for 
medical technology, but included no funds for hemoglobin-based 
oxygen carrier.
    The committee notes that the military has identified a need 
for an oxygen carrier capability that is both readily and 
easily employed in the treatment of combat casualties, and 
stable at room temperature. The committee is aware that a 
recent Department of Defense (DOD) Inspector General audit of 
the Armed Services Blood program indicated that the DOD blood 
program cannot currently meet its stated requirements, and 
noted specifically that a hemoglobin-based oxygen carrier would 
minimize or eliminate the storage and transportation problems 
identified in the report. The committee is also aware that 
unlike human blood, a hemoglobin-based oxygen carrier has an 
extended life, making it more adaptive to a wide range of 
military deployment conditions. The committee believes that a 
hemoglobin-based oxygen carrier offers significant potential 
benefits for the military.
    The committee is also aware that a need exists to develop 
technologies that would permit the long-term storage of cells 
and tissues needed to treat battlefield casualties.
    The committee recommends $91.5 million in PE 62787A, an 
increase of $7.0 million for room temperature stable oxygen 
therapeutic drugs, in particular hemoglobin-based oxygenated 
carriers, and an increase of $2.0 million for metabolically 
engineered tissues for trauma care.

MedTeams

    The budget request contained $16.5 million in PE 62716A for 
human factors engineering, but included no funds for the 
Emergency Team Coordination program (MedTeams).
    The committee notes that the Army MedTeams research in 
emergency departments showed an 80 percent reduction in 
clinically significant errors. The committee recognizes that 
MedTeams research has significant life saving potential in a 
broader base of medical settings.
    The committee recommends an increase of $7.8 million in PE 
62716A for MedTeams.

Missile and rocket advanced technology

    The budget request contained $59.5 million in PE 63313A for 
missile and rocket advanced technology, but included no funds 
for the Army composites manufacturing program.
    The committee notes that many existing weapon systems are 
being extended beyond their planned life. The committee is 
aware of new manufacturing and materials technologies that are 
being developed that have potential use to cost-effectively 
extend existing systems lives.
    The committee recommends an increase of $5.0 million in PE 
63313A for composites manufacturing and maintenance technology.

Missile technology

    The budget request contained $40.1 million in PE 62303A for 
missile technology, including funds for integrated guidance 
systems, but no funds for short-range missile defense with 
optimized radar distribution (SWORD).
    The committee notes that the Army has initiated a 
competitive development program for highly integrated, jam-
proof, micro-electromechanical systems (MEMS) based inertial 
measurement unit-geo positioning systems (IMU-GPS) that is 
essential to achieving the goal of affordable precision 
weapons. The committee also notes that development of these 
technologies including deep integration have the potential to 
reduce the cost of precision weapons and other devices, thereby 
saving billions of dollars for the Department of Defense.
    The committee is also aware that the Army over the last ten 
years has investigated interferometry to develop a highly 
accurate radar system. The committee notes that the current 
SWORD concept uses this technology to support the counter air 
munitions defense mission to protect against saturation 
attacks.
    Therefore, the committee recommends $65.1 million in PE 
62303A, an increase of $20.0 million for continued development 
of a fully integrated IMU-GPS, and an increase of $5.0 million 
for continued evaluation of SWORD.

Night vision advanced technology

    The budget request contained $37.1 million in PE 63710A for 
night vision.
    The committee notes that superiority in night vision is 
fundamental to successful warfighting. The committee is aware 
that recent advances in digital fusion of image intensification 
and infrared have been demonstrated to significantly improve 
night vision.
    The committee is also aware that the Army prototype helmet 
mounted infrared sensor has direct applicability to Department 
of Defense and civilian firefighting personnel, and increases 
safety in smoke and other obscurants.
    The committee recommends $49.1 million in PE 63710A, an 
increase of $9.0 million for continued development of digital 
night vision fusion technology, and an increase of $3.0 million 
for helmet mounted infrared sensor.

Passive millimeter-wave imaging

    The budget request contained $25.8 million in PE 62120A for 
sensors and electronic survivability, but included no funds for 
passive millimeter-wave (PMW) imaging.
    The committee is aware that PMW imaging has demonstrated 
the potential to improve airborne remote sensing capability in 
the dark and obscurant environments such as smoke and fog. The 
committee notes that terrain and obstacle avoidance benefits 
have also been demonstrated.
    The committee recommends $30.8 million in PE 62120A, an 
increase of $5.0 million for continued development of PMW 
advanced imaging technology.

Silent sentry surveillance test

    The budget request contained $27.8 million in PE 65604A for 
survivability/lethality analysis, but included no funds for 
Silent Sentry, a passive medium range surveillance technology 
that exploits commercial radio and television signals.
    The committee recommends $32.8 million in PE 65604A, an 
increase of $5.0 million for Silent Sentry surveillance 
testing.

Soldier-centered design tools for the Army transformation

    The budget request included $16.5 million for Human Factors 
Engineering Technology in PE 62716A, but included no funding 
for the Army's manpower and personnel integration (MANPRINT) 
program.
    The committee views MANPRINT modeling technologies as an 
excellent initiative for reducing the Department's operations 
and maintenance costs through improvements in weapon systems 
design integrated of manpower, personnel, training, health 
hazard, safety, human factors and soldier survivability 
concerns. The committee further believes that MANPRINT modeling 
successes on the Comanche weapon system can serve as a basis 
for optimizing the performance of the Army's anticipated 
objective force. The committee encourages the Army to examine 
the full potential of MANPRINT's soldier-centered design that 
may enhance and improve objective force performance during a 
wider range of operations and in extreme environments.
    Therefore, the committee recommends $19.5 million in PE 
62716A, an increase of $3.0 million for MANPRINT.

Survival radios

    The budget request contained $9.1 million in PE 63801A for 
aviation system improvement, but included no funds to continue 
improvement of survival radios.
    The committee notes that the combat survivor evader locator 
(CSEL) is not yet fielded. The committee is aware that until 
CSEL is operational, the PRC-112 survival radio capability must 
be maintained to support the warfighter. The committee supports 
the Army's Sustainment Center program to provide reliability, 
supportability, and commercial technology insertion 
enhancements to improve the functionality of the PRC-112 
survival radio until the replacement is fully fielded.
    The committee therefore recommends $19.1million in PE 
63801A, an increase of $10.0 million for the PRC-112 survival 
radio.

Tactical high energy laser

    The budget request included no funds to the Tactical High 
Energy Laser (THEL), a high energy chemical laser system 
jointly developed by the United States and Israel, and designed 
to demonstrate the feasibility of defeating short range rockets 
using directed energy.
    The committee is aware of THEL test activities at White 
Sands Missile Range, New Mexico, which have recently culminated 
in the simultaneous engagement of two targets. The committee 
understands that the original scope of work for THEL is 
complete, but believes options to develop a mobile version 
should be explored.
    The committee recommends a $10.0 million increase to PE 
65605A for THEL in fiscal year 2002, and urges the Secretary of 
Defense to continue cooperative development efforts with Israel 
for this important new capability.

Tactical unmanned aerial vehicle

    The budget request contained $38.2 million in PE 35204A for 
tactical unmanned aerial vehicles.
    The committee notes that despite a thorough competitive 
selection of a commercial-off-the-shelf tactical unmanned 
aerial vehicle (TUAV), development has been slowed by a series 
of seemingly unrelated mishaps. The committee is aware that an 
independent review panel, created to assess the program, is 
expected to make recommendations soon, and a six-month to a 
year delay in fielding is expected.
    Therefore the committee recommends $18.2 million in PE 
35204A, a reduction of $20 million, without prejudice.

Weapons and munitions

    The budget request contained $7.0 million in PE 64802A for 
the development of weapons and munitions but included no funds 
for airworthiness testing and development and flight safety 
certification of M240D helicopter door-mounted machine guns.
    The committee understands that the Army has a new 
requirement for M240D door guns for UH-60 Blackhawks. The 
committee also understands that the cost to complete the 
necessary airworthiness and flight safety certifications for 
the ``D'' variant to enter into low rate initial production is 
$3.5 million, and that without these funds a three to four year 
delay in fielding this weapon could occur.
    In order to complete flight testing, airworthiness 
certification, and begin procuring new M240D helicopter door-
mounted machine guns at low-rate initial production sooner, the 
committee recommends $10.5 million in PE 64802A, an increase of 
$3.5 million.

Weapons and munitions advanced technology

    The budget request contained $29.7 million in PE 63004A for 
weapons and munitions advanced technology, but included no 
funds for a large caliber training round or the trajectory 
correctable munition.
    The committee is aware that past efforts to develop large 
caliber training rounds with reduced explosive charges has been 
difficult due to production costs for small quantities of such 
rounds. The committee believes that new technology may offer a 
potential solution to this problem.
    The committee is aware that the trajectory correctable 
munition being developed through the memorandum of 
understanding between the United States and Sweden has made 
significant progress and met key milestones. The committee 
notes that precision weapons are essential for the objective 
force.
    The committee recommends $51.7 million in PE 63004A, an 
increase of $5.0 million in PE 63004A for development of 
affordable, low explosive 120mm and 155mm training rounds and 
an increase of $17.0 million for TCM.

                               Navy RDT&E

                                Overview

    The budget request contained $11,123.4 million for Navy 
RDT&E. The committee recommends authorization of $10,863.3 
million, an increase of $128.4 million, and the transfer of 
$388.5 million for missile defense programs from Navy RDT&E to 
Defense-wide RDT&E.
    The committee recommendations for the fiscal year 2002 Navy 
RDT&E program are identified in the table below. Major changes 
to the Navy request are discussed following the table.

                       Items of Special Interest

Advanced anti-radiation guided munition (AARGM)

    The budget request contained $13.6 million in PE 25601N for 
improvements in the High-speed Anti-radiation Missile, but 
included no funds for the advanced anti-radiation guided 
munition (AARGM) program.
    The committee notes the AARGM program development of 
advanced seeker, guidance and control technologies that, when 
integrated on the existing High-speed Anti-Radiation Missile 
(HARM) airframe, should provide a significant improvement in 
the U.S. capability for suppression of enemy air defenses 
(SEAD). The committee understands that AARGM test firings 
indicate substantial progress to date and that four additional 
test firings in 2001 will complete the demonstration program. 
The committee further understands that the AARGM program will 
compete for funding and entry into the system design and 
development phase in the Navy's fiscal year 2003 program 
objective memorandum.
    The committee has strongly supported the development and 
demonstration of AARGM and believes that this Small Business 
Innovative Research (SBIR) program and the Quick Bolt Advanced 
Concept Technology Demonstration program utilizing AARGM both 
offer the potential to satisfy critical military requirements 
for lethal SEAD and attack of time-critical targets. The 
committee recommends $23.6 million in PE 25601N, an increase of 
$10.0 million for continuation of the risk reduction and 
productibility phase of the AARGM program.

Advanced composite sail phase II

    The budget request contained $110.8 million in PE 63561N 
for advanced submarine system development, demonstration, and 
validation, including $6.1 million for continued development of 
the advanced composite sail.
    The committee notes that the Navy's technology insertion 
plan for the Virginia class submarine includes installation of 
an advanced sail on the seventh Virginia class submarine. The 
advanced sail program is intended to provide substantial 
additional payload capacity and stealth improvements over 
conventional submarine sails. Program milestones include 
completion of advanced composite sail development and 
transition of the project to the Virginia class submarine 
program. The committee understands that the results of the 
program and lessons learned from other Navy composites programs 
have identified the need for a phase II advanced composite sail 
development program that will incorporate full-scale design 
features and meet the complete spectrum of full-scale load 
specifications that were not addressed in phase I of the 
program.
    The committee recommends an increase of $15.0 million in PE 
63561N for Phase II of the Advanced Composite Sail development 
program.

Advanced multi-band surveillance systems

    The budget request contained $29.2 million in PE 35207N for 
manned reconnaissance systems operational systems development.
    The committee recommends $34.2 million in PE 35207N, an 
increase of $5.0 million to accelerate the development of 
advanced multi-band surveillance systems as discussed in the 
classified annex.

Aegis combat systems engineering

    The budget request contained $262.0 million in PE 64307N 
for Aegis combat systems engineering, of which $345 thousand 
was included for continued development of the operational 
readiness test system (ORTS) on Aegis combat systems.
    The ORTS is the primary testing and condition assessment 
system for the Aegis SPY 1 radar and the Aegis Mk99 fire 
control radar system.
    The committee also notes the need for system engineering 
and development of equipment upgrades and replacements for 
major Aegis weapon system computer peripheral subsystems. For 
example, Aegis Baselines 1-6, Phase III, utilize several types 
and variants of obsolete peripheral equipment to upload 
computer programs to the critical UYK-7 and UYK-43 tactical 
computers used for command and decision, weapons control, and 
fire control processing. The committee believes that technology 
refreshment and consolidation of this peripheral equipment will 
ensure the continued operational integrity of the Aegis weapon 
system, as well as reduce its ownership cost.
    Therefore, the committee recommends $276.9 million in PE 
64307N, an increase of $6.0 million to accelerate ORTS upgrades 
for the Aegis SPY 1 radar and Mk99 fire control radar system, 
and an increase of $8.9 million for additional computer 
peripheral technology refreshment and consolidation in the 
Aegis weapon system. In total, the committee recommends an 
increase of $14.9 million for Aegis combat systems engineering.

Aviation-shipboard information technology initiative

    The budget request contained $16.4 million in PE 64512N for 
shipboard aviation systems development but included no funds 
for development of the integrated aviation-shipboard 
information technology initiative (IAS/ITI), which would 
upgrade and integrate aircraft carrier information systems to 
improve the effectiveness of carrier aircraft launch and 
recovery operations.
    The committee notes that the Navy views the IAS/ITI as a 
promising technology for both its next-generation aircraft 
carriers and those currently in service which can enhance 
accuracy and minimize latency of information, distribute 
information where required, improve shipboard aircraft sortie 
rates and safety, and reduce carrier operating costs.
    Accordingly, the committee recommends $21.4 million in PE 
64512N, an increase of $5.0 million, for development of the 
IAS/ITI.

Combat systems integration

    The budget request contained $42.9 million in PE 63582N for 
combat systems integration demonstration and validation.
            Common command and decision system
    The common command and decision (CC&D) program is a pre-
planned product improvement (P3I) to the Aegis Weapon System 
(AWS) and the Ship Self Defense System (SSDS) Mk2 that replaces 
the command and decision capability presently in these systems 
with a common set of application computer programs and 
associated supporting software infrastructure which will 
perform selected command and decision functions in an identical 
manner across multiple Surface Navy ships. The committee report 
on H.R. 4205 (H. Rept. 106-616) directed the Secretary of the 
Navy to report to the congressional defense committees on the 
Navy's program plan and funding for the CC&D P3I program.
    The committee notes that the Navy has established a 
collaborative development program involving the AWS and SSDS Mk 
2 combat systems integrators, innovative small business experts 
in the use of middleware, and Navy combat system development 
experts all working together in an integrated process team. The 
phased program will build on the Advanced Processor Build 
techniques developed and proven in the Submarine Acoustic Rapid 
Commercial-off-the-shelf Insertion (A-RCI) program. The program 
of record would result in initial introduction of the CC&D 
system in the fleet in 2010. The Secretary's report, however, 
notes that it is technically and programmatically possible to 
develop an executable CC&D capability by early calendar year 
2005 but funding constraints do not currently support this 
timeline.
    The committee strongly believes that the Navy should 
accelerate the program for upgrade and insertion of advanced 
technology in combat systems of legacy surface ships of the 
battle fleet. Accordingly, the committee recommends an increase 
of $25.9 million in PE 63582N to accelerate development of the 
CC&D system.
            Wideband optically multiplexed beam-forming architecture
    The committee notes that Congress previously provided funds 
for a cooperative program for research, development, and 
demonstration of a prototype optically multiplexed, wideband, 
radar beam-forming array that uses optical wavelength-division 
multiplexing (WDM). The committee also notes that the use of 
optical WDM is expected to reduce hardware complexity and 
system cost in a wideband electronically-steered active radar 
antenna that has high instantaneous bandwidth and the 
resolution necessary for theater ballistic missile defense and 
ship self defense in a littoral environment.
    The committee recommends an increase of $4.0 million in PE 
63582N to complete the demonstration project for the wideband 
optically multiplexed beam-forming architecture.

Common picture applied research

    The budget request contained $83.6 million in PE 62235N for 
common picture applied research.
            Hybrid fiber optic wireless communication
    The committee notes the progress in the development of an 
advanced hybrid fiber optic/wireless communication system with 
very high bandwidth, mobility, and low probability of 
intercept. The overall goal of the program is to develop a 
versatile, mobile, secure communication system for military and 
commercial use, which combines the most desirable features of 
fiber optic and wireless communications technologies. The first 
year effort resulted in production of critical components of 
the system and a proof of concept demonstration.
    The committee recommends an increase of $2.0 million in PE 
62235N to continue the program for applied research in hybrid 
fiber optic wireless communications.
            SEADEEP
    The committee recognizes that integration of the submarine 
into emerging naval tactical missions requires a rapid transfer 
of large volumes of data that is not currently available to 
submarines operating at speed and depth in the ocean. This 
limitation severely constrains the submarine's tactical 
operational role in support of expeditionary and strike 
operations. The committee believes that the advent of new 
technology and new communications architectures presents the 
opportunity to revisit the concept of submarine laser 
communications.
    The committee recommends an increase of $3.0 million in PE 
62235N for SEADEEP, a project to develop a system concept of 
operations and demonstrate the feasibility of high-speed data 
transmission using laser communications between a high altitude 
aircraft and submarine.

E-2/C-2 eight-blade composite propeller

    The budget request contained $20.6 million in PE 24152N for 
E-2 squadrons operational systems development, including $7.1 
million for E-2C improvements, but included no funds for 
completion of an eight-blade composite propeller for E-2C and 
C-2A aircraft.
    The committee notes that the Navy is seeking solutions to 
operational limitations encountered with the propeller systems 
used on E-2C and C-2A aircraft. In response to directions 
contained in the committee report on H.R. 1110 (H. Rept. 105-
132) the Navy began a program for design, development, test, 
and production of the eight-blade composite propeller for the 
E-2C and C-2A. Congress provided an additional $4.0 million for 
the program in fiscal year 2001 to flight test the new 
propeller system on the C-2A aircraft sequentially with the E-
2C flight test program.
    The committee recommends $30.6 million in PE 24152N, an 
increase of $10.0 million to complete the program for 
development and evaluation of an eight bladed composite 
propeller system for the E-2C and C-2A aircraft.

Electronic warfare (EW) development

    The budget request contained $112.5 million in PE 64270N 
for electronic warfare development, but included no funds to 
evaluate the location of global positioning system interferers 
(LOCO GPSI) system in fleet operations or for follow-on support 
jamming aircraft pre-engineering and manufacturing development 
(EMD) risk reduction activities.
    LOCO GPSI is a state-of-the-art precision surveillance and 
targeting system for location of global positioning systems 
interferers that is designed to protect global positioning 
system-guided weapons against jamming and interference. The 
committee understands that naval operational fleet commanders 
have requested that the LOCO GPSI system participate in several 
fleet exercises in fiscal year 2002 to demonstrate and evaluate 
the military utility of this system. Accordingly, the committee 
recommends an increase of $4.0 million to evaluate LOCO GPSI 
capabilities in fleet operations.
    The committee understands that the Airborne Electronic 
Attack Analysis of Alternatives is scheduled to be complete in 
December 2001 and believes that this analysis will conclude 
that development of a follow-on support jamming aircraft will 
be required to replace the aging EA-6B. To accelerate the 
development of an EA-6B successor, the committee recommends an 
increase of $10.0 million for pre-EMD risk reduction 
activities.
    In total, the committee recommends $126.5 million in PE 
64270N, an increase of $14.0 million.

Electro optical framing reconnaissance

    The budget request contained $5.7 million in PE 35206N for 
airborne reconnaissance, but included no funds for electro-
optical (EO) framing.
    The committee is aware of developmental EO framing 
processing techniques that will provide real-time precision 
strike targeting capability.
    The committee recommends an increase of $9.5 million in PE 
35206N for continuation of F-14 TARPS/CD precision strike 
hardware development, continued development of integrated 
electronic shutter upgrade to SHARP sensors, and evaluation and 
systems engineering of cellular neural network technology in 
support of EO framing processing techniques.

Embedded software engineering research initiative

    The budget request contained $66.3 million in PE 62114N for 
power projection applied research.
    The committee notes that a majority of all current computer 
applications are embedded systems and almost all defense 
systems have one or more embedded computers. While embedded 
software is becoming increasingly large and complex, advances 
in technology for development of embedded software systems is 
lagging, resulting in high development costs, long development 
cycles, and error-prone products.
    The committee recommends $70.3 million in PE 62114N, an 
increase of $4.0 million to begin an initiative in Embedded 
Software Engineering Research, focused on the development of 
structured design and manufacturing capabilities for the 
deployment, control, integration and utilization of embedded 
software systems.

Expeditionary warfare testbed--supporting arms technology insertion

    The budget request contained $24.4 million in PE 24413N for 
amphibious tactical support units operational systems 
development.
    The committee recognizes the need for better integration 
and interoperability of expeditionary forces. Force commanders 
have identified the need for additional development and 
integration in the supporting arms coordinating center (SACC) 
of the force headquarters. The committee understands that the 
Naval Sea Systems Command's expeditionary warfare test bed will 
be used to develop applications of new technologies and refine 
technology requirements for SACC systems used in expeditionary 
operations.
    To support this initiative the committee recommends an 
increase of $10.0 million in PE 24413N for supporting arms 
technology insertion in the expeditionary warfare testbed.
    The committee encourages the Assistant Secretary of the 
Navy (Research, Development, and Acquisition) to oversee and 
guide this expeditionary warfare program and to use the Navy's 
National Technology Alliance in support of technology 
development.

Extending the littoral battlespace

    The budget request contained $48.6 million in PE 63235N for 
common picture advanced technology development, including $1.0 
million for the extended littoral battlespace project.
    The committee notes that the Office of Naval Research 
sponsored the Extending The Littoral Battlespace Advanced 
Concept Technology Demonstration (ELB ACTD) to provide command, 
control, communications and intelligence in an extended 
littoral battlespace. The ELB ACTD integrates commercial-off-
the-shelf and government-furnished technology in a military 
setting to showcase the benefits of advanced networking, global 
positioning systems, and other information technology 
applications. The committee notes that the budget request 
supports the transition of technologies, hardware, and software 
to the military user; demonstration/post-demonstration analysis 
and assessment of the military utility of the ELB system 
concept; and residual support of equipment fielded with the 
Amphibious Ready Group/Marine Expeditionary Unit that 
participated in the ACTD.
    The committee recommends $50.6 million in PE 63235N, an 
increase of $2.0 M for support and upgrade/technical 
refreshment of the ELB ACTD equipment fielded with the ARG/MEU.

F/A-18 improvements

    The budget request contained $253.3 million in PE 24136N 
for F/A-18 squadrons operational systems development.
            Fuel cell second source
    The committee understands that the Navy currently has only 
a single vendor that is qualified to manufacture polyurethane 
fuel cells for the F/A-18 aircraft. Due to the increased demand 
for fuel cells for the aircraft and insufficient production 
capacity, the Navy is not able to meet all operational 
requirements and is investigating additional manufacturing 
capability for F/A-18 fuel cells.
    The committee recommends an increase of $1.0 million in PE 
24136N for qualification of an additional production source for 
F/A-18 fuel cells.
            Joint helmet mounted cueing system (JHMCS)
    The budget request included $0.4 million to complete 
development of the Joint Helmet Mounted Cueing System.
    The committee notes that the joint helmet mounted cueing 
system, when combined with state of the art missile systems 
currently in development provides a significant improvement in 
air-to-air combat capability and survivability. The committee 
is also aware that this improved capability is essential to the 
success of the Navy's F/A-18 E/F strike fighter aircraft 
currently being deployed. For fiscal year 2001, Congress 
provided $3.5 million for continued development of the joint 
helmet mounted cueing systems for the F/A-18C/D fighter.
    The committee recommends an increase of $10.0 million in PE 
24136N to accelerate the completion of development, evaluation, 
and fielding of the Joint Helmet Mounted Cueing System for the 
F/A-18 and other aircraft.

Force protection advanced technology

    The budget request contained $85.3 million in PE 63123N for 
force protection advanced technology development.
            Advanced water jet AWJ-21
    The committee notes that the advanced waterjet propulsor 
(AWJ-21) was originally developed in a three-year industry/
government cost-shared project under the Maritime Technology 
(MARITECH) program. The committee also notes that potential 
applications of the advanced water jet propulsor technology are 
being considered for the Navy's small combat craft program. The 
committee understands that the AWJ-21 has the potential for 
being a low-cost/high-performance propulsor option for future 
ships that require reduced signature and increased operational 
maneuverability. The committee also understands that additional 
testing at a one-fourth-scale level demonstrator at sea and 
testing in the large cavitation tunnel will be required to 
validate analytical predictions of critical performance 
parameters.
    The committee recommends an increase of $6.0 million in PE 
63123N for continuation of the AWJ-21 development and 
demonstration project.
            DC Homopolar Motor
    The budget request included $60.3 million for advanced 
development of surface ship and submarine hull, mechanical, and 
electrical technology that includes the development of 
superconducting and permanent magnetic ship-propulsion electric 
motors.
    The committee understands that the Office of Naval Research 
has initiated a project for development of a 5000 shaft-
horsepower superconducting, direct current, homopolar motor 
that may be used in the experimental littoral support craft 
program.
    The committee recommends an increase of $4.0 million in PE 
63123N to complete development and at-sea testing of the DC 
homopolar motor.
            Direct ship service fuel cell
    The committee recommends an increase of $7.0 million in PE 
63123N for development of a direct ship service fuel cell 
technology demonstrator for technology validation and training 
of ship systems engineers, designers, system integrators, 
operators and engineering students.
            Electric propulsion/ship power systems distributed test bed
    The committee notes that the Navy's next generation surface 
combatants will rely heavily on the use of electrical power and 
its applications to naval ship systems including integrated 
power systems, electric drive, and configurable zonal systems. 
New technologies, manufacturing processes, innovative 
approaches, techniques and method, and advanced materials will 
be on the critical path for the development and integration of 
these high power, electricity-based systems. The committee 
notes that an understanding of these factors and the 
interactions of the various components, and the ability to 
design and evaluate the performance of the system, both in 
simulation and with hardware-in-the-loop will be critical to 
the design of efficient and cost-effective electrical 
propulsion systems that meet naval requirements and of the all-
electric ship itself. As a part of the Navy's program leading 
to the development of an all-electric ship, the committee 
continues to support the development of a virtual, distributed 
test bed which will provide the software and hardware modeling 
tools for shipboard machinery design and allow government and 
industry ship designers and engineers to evaluate machinery 
alternatives in a virtual prototype before committing to full-
scale development.
    The committee recommends an increase of $10.0 million in PE 
63123N to continue the program for advanced development of a 
distributed test bed for electric propulsion and ship power 
systems.
            Littoral support craft--experimental
    The budget request in PE 63123N contained $85.3 million for 
force protection advanced technology development, including 
$20.0 million for the development and demonstration of 
experimental craft for littoral support operations.
    The committee notes progress made by the Office of Naval 
Research in the development of designs and operational concepts 
for a littoral support craft: a fast (above 40 knots), high 
performance, low cost platform that could be an effective 
adjunct to the major surface combatant and carrier battle 
group. The craft would be compliant with the Navy concept for 
operations in the littoral and would fulfill fleet requirements 
for providing supporting command, control, communications and 
combat systems in the region from the shore to other surface 
combatants operating 75 miles or greater from theshore. The 
committee also notes the progress that ONR has made in the development 
and evaluation of important components and sub-systems that might be 
used on a littoral support craft. The committee strongly supports ONR 
proposals for a phased program for development of an experimental 
littoral support craft demonstrator (LSC-X) that would provide the 
basis for operational experiments on the contribution that such a craft 
and its variants could make to naval operations in the littoral.
    Accordingly, the committee recommends a total of $39.0 
million in PE 63123N for development and demonstration of the 
LSC-X, including an increase of $19.0 million to the ONR 
program for development and demonstration of experimental craft 
for littoral support operations.
            SEALs Mark V patrol craft modification
    The committee report on H.R. 4205 (H. Rept. 106-616) 
directed the Secretary of the Navy to report to the 
congressional defense committees on the Navy's plan for 
transition of Project M (an active noise and vibration 
cancellation system developed in the advanced submarine 
technology program) from the Navy's science and technology base 
to potential applications in Navy propulsion and other 
machinery systems. Subsequently, the Office of Naval Research 
advised the committee that a project had been established to 
evaluate the ability of Project M technology to mitigate the 
high shock and vibration experienced by the Navy SEALs Mark V 
patrol craft crew and passengers in high-speed special 
operations.
    The committee recommends an increase of $6.0 million in PE 
63123N for continuation of the program for application of 
Project M technology to mitigate physical shock to crew and 
passengers in the Mark V patrol craft.

Funding transfers to support transformation

    The committee is concerned that the largest area of growth 
in Navy research and development investments has occurred in 
the category of fielded system development and other mature 
technologies. While these programs are important, the committee 
does not believe they support the highest priority efforts 
directly related to Navy transformation. In light of the delay 
in the program down-select decision, the committee also notes 
its concerns about the ability of the Navy to execute the DD-21 
land attack destroyer. Finally, the committee notes that no 
justification was provided for an apparent new program start in 
PE 63237N.
    Therefore, the committee recommends the following decreases 
to Navy accounts to be transferred to other programs within the 
Navy that support higher transformation priorities.

62235N..................................................      $1,912,000
62805N..................................................       8,000,000
63114N..................................................      10,000,000
63123N..................................................       5,297,000
63236N..................................................       5,000,000
63271N..................................................      15,000,000
63216N..................................................      17,900,000
63237N..................................................      50,000,000
63382N..................................................       3,458,000
63513N..................................................      25,000,000
63561N..................................................      10,457,000
63563N..................................................       1,949,000
63564N..................................................      10,000,000
63570N..................................................       2,100,000
63582N..................................................       4,900,000
63611M..................................................      23,066,000
63851M..................................................      10,000,000
64262N..................................................     100,000,000
65152N..................................................       2,679,000
65853N..................................................       3,000,000
65864N..................................................       7,414,000
11402N..................................................       4,205,000
24136N..................................................      50,000,000
24163N..................................................      10,900,000
24229N..................................................       2,222,000
24413N..................................................      10,000,000
24575N..................................................       2,300,000
25604N..................................................       7,700,000
25620N..................................................       3,900,000
27163N..................................................       1,000,000
33109N..................................................      10,000,000
35160N..................................................       1,900,000
35188N..................................................      13,618,000
72207N..................................................       4,972,000

Land attack standard missile

    The budget request contained $131.0 million in PE 63795N 
for Land Attack Technology, including $34.5 million for 
development of the Land Attack Standard Missile (LASM). The 
committee recommends the budget request for LASM. As addressed 
elsewhere in this report, the committee notes that the 
Department of Defense has decided to endorse the Navy's 
proposal to acquire LASM as an interim capability for the Navy 
land attack mission and to develop an Advanced Land Attack 
Missile (ALAM) as soon as possible for the DD-21 land attack 
destroyer and for other Navy combatants. LASM, an adaptation of 
the Navy's Standard Missile, entered engineering and 
manufacturing development in July 2000, completed a preliminary 
design review in December 2000, and also conducted a successful 
warhead test in February 2001. Initial operational capability 
for LASM is planned in fiscal year 2004. The committee also 
notes a number of informal proposals for development of more 
advanced warheads for LASM.
    The committee has strongly supported the LASM program, as 
well as the development of ALAM. Elsewhere in this report, the 
committee has recommended alegislative provision (Sec. 212) 
that would require the Secretary of Defense to establish a competitive 
program for the development of ALAM, would provide $20.0 million for 
that program, and would require the Secretary to report the program 
plan, schedule, and funding required for the Advanced Land Attack 
Missile program to the congressional defense committees with the 
submission of the fiscal year 2003 budget request. The committee 
directs that the Secretary also provide a report that describes the 
operational requirement for LASM and the program plan, schedule, and 
funding for development and acquisition of LASM with the submission of 
the fiscal year 2003 budget request.

Laser aim scoring system (LASS)

    The budget request contained $64.4 million in PE 64212N for 
anti-submarine warfare (ASW) and other helicopter development 
but included no funds for the sea-target LASS.
    The sea-target LASS would be mounted on a Navy remote-
controlled target boat, which, when lased by a pilot practicing 
delivery of a Hellfire missile, would provide immediate aiming 
feedback to the pilot that would inform where the missile would 
have hit or why it would have missed. The committee understands 
that combat delivery of the Hellfire missile requires 
considerable pilot laser aiming skill since it is conducted in 
a moving helicopter and directed at a moving at-sea target. The 
committee further understands that the Navy's SH-60 and HH-60 
pilots have limited proficiency in this skill since Hellfire 
pilot laser aiming training is accomplished in a ground-based 
flight trainer which lacks the both the helicopter and target 
motion and the ability to determine why a missile would have 
been ineffective against its intended target. The committee 
notes that Army helicopter pilots maintain Hellfire laser 
aiming proficiency by using a stationary LASS on their target 
practice ranges, and believes that a similar sea-target LASS 
could address the Navy training deficiency by allowing in-
flight practice laser designation against a moving at-sea 
target while also providing immediate laser aiming result 
feedback to the pilot.
    Accordingly, the committee recommends $66.4 million in 
64212N, an increase of $2.0 million, to develop the sea-target 
LASS.

Laser welding and cutting

    The budget request contained $62.1 million in PE 62271N for 
radio frequency systems applied research.
    The committee understands that the technology of laser 
welding and cutting applied to ship construction is anticipated 
to reduce ship construction costs significantly and afford 
greater design flexibility. The committee encourages the 
development of laser welding technologies that have 
demonstrated the potential to provide higher quality and lower 
costs for building Navy ships.
    The committee recommends an increase of $4.3 million in PE 
62271N for the development and application to naval ship 
construction of laser welding and cutting technology and 
techniques.

Marine Corps ground combat/support system

    The budget request contained $26.0 million in PE 63635M 
combat supporting arms systems and included $18.2 million for 
the lightweight 155mm towed howitzer, but no funds for the 
Marine Corps urban environmental laboratory for low observable 
signature ejection technology.
    The committee continues to support development of the 
lightweight 155mm towed howitzer for the Marine Corps and Army. 
The committee is aware that a Marine Corps urban environmental 
laboratory has been established to provide assessment, analysis 
and remediation of capabilities to ensure predictable and 
minimum environmental damage from traditional and non-
traditional capabilities used in urban missions. The committee 
also notes that the Marine Corps needs weapons with low 
observable ejection signatures.
    The committee recognizes that the Marine Corps will require 
a capability non-explosive fire from enclosures in order to 
operate effectively in military operations in urbanized terrain 
engagements. Innovative standoff door-breaching munition (ISOD) 
technology will enable forces engaged in the urban battleground 
to breach doors and other similar structures from a standoff 
distance of up to 100 meters without exposing Marines to direct 
hostile fire. The committee is encouraged by the Marine Corps' 
pursuit of this technology and supports the Marine Corps' 
efforts to examine the broad application of ISOD to both 
regular and special operations forces. The committee requests 
that the Commandant of the Marine Corps keep the defense 
committees informed of the progress of this initiative.
    The committee recommends $41.0 million in PE 63635M, an 
increase of $5.0 million for the lightweight 155mm towed 
howitzer, an increase of $5.0 million for the urban 
environmental laboratory, and an increase of $5.0 million for 
low observable signature ejection technology.

Metrology projects

    The budget request contained $120.6 million in PE 64215N 
for standards development, but included no funds for the Navy 
metrology program. The budget request also included $1.5 
million in PE 72207F for Air Force metrology program research 
and development. The metrology program develops new measurement 
standards and capabilities to support the development, test, 
evaluation, and maintenance of the leading-edge technology 
deployed in emerging military systems.
    The committee understands that shortfalls in metrology 
budgets have led to the erosion of critical calibration 
standards development and measurement services and that this 
situation negatively affects the development and support of new 
weapons systems.
    Consequently, the committee recommends $127.1 million in PE 
64215N, an increase of $6.5 million for the Navy metrology 
program. The committee also recommends $5.5 million in PE 
72207F, an increase of $4.0 million for the Air Force metrology 
program.

Multipurpose processor

    The budget request contained $43.7 million in PE 64503N for 
submarine system equipment development, including $36.0 million 
for submarine sonar improvements that also included the 
acoustic rapid commercial-off-the-shelf insertion (A-RCI) 
program.
    The A-RCI program upgrades current submarine sonar systems 
with open architecture commercial-off-the-shelf computer 
technology that uses advanced processing builds (APB) and 
multipurpose processor (MPP) middleware architecture developed 
under small business innovative research to provide continued 
upgrades as technology develops. Full implementation is 
currently planned for fiscal year 2008, but conversion of all 
submarines can be accelerated to fiscal year 2004 with 
additional funds.
    The committee notes that the Chief of Naval Operations 
identified $225.0 million in fiscal year 2002 unfunded 
requirements for A-RCI in submarine sonar systems. The 
committee believes that this technology upgrade is essential 
for the submarine fleet and, therefore, recommends $68.7 
million in PE 64503N, an increase of $25.0 million to 
accelerate the A-RCI program for application of the APB/MPP 
technology insertion process in submarine and other naval sonar 
systems.

Navy's intelligent agent security module

    The budget request contained $20.9 million in PE 33140N for 
the Navy's information systems security program.
    The committee notes the progress being made in the 
development of intelligent agent security modules (IASM) in the 
Navy's information systems security program, but also notes the 
need to improve IASM system capability to identify and respond 
to attacks on the information network. The Navy has stated that 
the IASM is intended for deployment at the tactical network 
operations center, shipboard, and at the fleet information 
warfare center. The IASM will enhance network security by 
correlating information from multiple security products; derive 
a concise, accurate assessment of malicious actions and 
unauthorized use; and recommend actions to respond to and 
terminate an attack to network administrators.
    Accordingly, the committee recommends $45.9 million in PE 
33140N, an increase of $25.0 million to increase the capability 
of the IASM system to identify and respond to attacks on the 
network, expand the period through which attack trends can be 
assessed, and provide enhanced countermeasures to respond to a 
specific type of attack.

Navy logistics productivity

    The budget request contained $11.7 million in PE 63739N for 
Navy logistics productivity demonstration and validation.
            Compatible processor upgrade program
    The committee understands that compatible processor upgrade 
program (CPUP) system-on-a-chip processor products are used to 
modernize existing computer systems while preserving legacy 
software and infrastructure, adapt commercial designs for high 
radiation environments, and optimize system designs. Congress 
provided $3.5 million in fiscal year 2001 to initiate a program 
for the development of application-specific CPUP processors to 
upgrade the capability of the Navy's AN/AYK-14, AN/AYK-44, and 
AN/UYK-20 computers at a fraction of the cost and time required 
to reengineer legacy software for new computer systems.
    The committee recommends an increase of $6.5 million in PE 
63739N for continuation of the compatible processor upgrade 
program (CPUP).
            Rapid retargeting
    The committee notes that, within the logistics productivity 
program, the Navy has implemented a rapid retargeting project 
to address obsolete designs in electronic systems.
    The project provides the technology to eliminate obsolete 
components and reduce multiple electronic modules to single 
programmable designs. The committee understands that the rapid 
retargeting process is also being employed to replace different 
types of standard electronic modules with programmable 
commercial-off-the-shelf components, thereby reducing the 
requirements for spare parts on board naval vessels.
    The committee recommends an increase of $5.0 million in PE 
63739N to continue the rapid retargeting project.

Non-acoustic anti-submarine warfare

    The budget request contained $76.5 million in PE 62747N for 
undersea warfare applied research and $56.3 million in PE 
63747N for undersea warfare advanced technology development.
    The committee recommends $86.5 million in PE 62747N, an 
increase of $10.0 million for applied research in non-acoustic 
anti-submarine warfare technology and $66.3 million in PE 
63747N, an increase of $10.0 million for advanced development 
in non-acoustic anti-submarine warfare technology. Elsewhere in 
this report the committee has recommended an increase of $10.0 
million to investigate the ability of the JSTARS radar to image 
the ocean surface.

Oceanographic survey of continental shelf beyond U.S. exclusive 
        economic zone

    The committee notes that Articles 76 and 77 of the United 
Nations Convention on the Law of the Sea secure coastal States' 
sovereign rights over the natural resources of the continental 
shelf and establish a formula for determining whether and how a 
State may claim an outer shelf limit beyond the State's 
exclusive economic zone (EEZ). The United Nations Commission on 
the Limits of the Continental Shelf has established guidelines 
on the scientific and technical evidence, including undersea 
bathymetric and seismic data from the continental shelf, that 
will be considered with respect to coastal State submissions. 
The outer limits based on the commission's recommendations will 
be final and binding under the Convention. The committee also 
notes that, although the United States is not now a party to 
the Convention, should it accede to the treaty in the future, 
it should be able to establish final and binding limits to two 
areas adjacent to its EEZ off the coast of Alaska, the Chukchi 
Cap and part of the Donut Hull, and smaller areas in the Gulf 
of Mexico and the Atlantic Ocean. The committee believes that 
the United Statesshould have the data available that would be 
necessary to determine whether claims from other coastal States might 
overlap with potential U.S. claims.
    The committee encourages the Secretary of the Navy, in 
conjunction with the Administrator of the National Oceanic and 
Atmospheric Administration, to identify the scope of the 
bathymetric, seismic, and other data that would need to be 
gathered to support United States' claims for establishment of 
outer shelf limits under the Convention, develop a plan for 
gathering that data, and determine the surface and subsurface 
oceanographic survey resources that would need to be committed 
to the effort.

Organ transfer technology

    The budget request contained $17.7 million in PE 63729N for 
warfighter protection advanced technology development.
    The committee notes developments in immune therapies by 
investigators at the Naval Medical Research Center that have 
been shown to prevent the rejection of tissue and organ 
transplants without the need for continuous use of 
immunosuppressive drugs. The committee believes that the 
ability to transplant massive tissue segments without rejection 
could revolutionize the treatment of combat casualties who 
suffer significant tissue loss or organ damage from blast, 
missile fragments, or burns. In fiscal year 2001, the Chief of 
Naval Research initiated a program to capitalize on these newly 
developed methods of treatment and Congress provided $3.0 
million to initiate a clinical trials program.
    The committee recommends $21.7 million in PE 63729N, an 
increase of $4.0 million to continue the program for clinical 
trials in organ transplant and transfer technology. The 
committee urges the Chief of Naval Research to include funding 
for completion of the clinical trials program in future budget 
requests.

Photovoltaic energy savings initiative

    The budget request contained $1.7 million in PE 63725N for 
demonstration and validation of improvements in naval 
facilities.
    The committee notes that rising energy costs and increased 
concerns among the military services about the effect of 
gaseous emissions on the environment have sparked greater 
interest in developing renewable energy sources. The committee 
understands that proposals have been made for development of a 
multi-megawatt photovoltaic energy park on naval installations 
to generate electricity from the sun for this purpose. Under 
the proposal, a cooperative agreement would be established 
between industry and the federal government that would result 
in fuel savings under the federally funded share of the program 
being returned to the federal government.
    The committee recommends $4.1 million in PE 63725N, 
including an increase of $2.4 million in PE 63725N for 
demonstration of the photovoltaic energy savings initiative.

Power projection advanced technology

    The budget request contained $76.4 million in PE 63114N for 
power projection advanced technology development.
            Affordable weapon
    The Office of Naval Research (ONR) affordable weapons 
program is an advanced technology demonstration to design, 
develop and build a 600 mile range, 200lbs. payload, precision 
strike missile with global positioning system/inertial 
navigation system guidance and control and a data link. The 
missile is built using commercial-off-the-shelf components 
(COTS) and will have an estimated cost in production of 
approximately $30,000 per missile and fly within two years of 
contract initiation. The objective of the ONR program is to 
demonstrate the breakthroughs in (1) technology and systems 
integration that permit the development of a low-cost, 
precision guided missile using primarily COTS components and 
(2) acquisition reform that permits definition of costs within 
the first ten production units and manufacturing changes that 
can be accomplished at low cost with small unit buys. The 
committee notes that ONR initiated the program in July 1999 and 
accomplished air vehicle first flight in September 2000. The 
committee believes that, if successful, the ONR affordable 
missile program will establish a new paradigm for the 
development and production of precision strike missile systems.
    The committee recommends an increase of $10.0 million in PE 
63114N for advanced technology development and demonstration of 
the affordable weapon.
            DP-2 thrust vectoring system concept demonstration
    The budget request contained no funds for continuation of 
the DP-2 thrust vectoring system proof-of-concept 
demonstration.
    DP-2 is a proof-of-concept program to demonstrate the use 
of thrust vector control to achieve vertical takeoff and 
conventional takeoff capabilities in a one-half scale flight 
test vehicle. The technology offers the potential for a low 
cost, medium range aircraft of advanced composite construction.
    The committee notes the progress to date in the DP-2 
program in the design and fabrication of large, precise 
composite structures, the design of the flight control system, 
and ground test of the system leading to the initial hover test 
in June 2001. The committee also notes technical issues that 
were encountered during the hover test that will necessitate 
additional analysis and potential redesign before a successful 
hover test can be accomplished. The committee believes that the 
potential of the DP-2 proof-of-concept program justifies these 
efforts.
    Accordingly, the committee recommends an increase of $8.0 
million in PE 63114N to continue the project for development 
and demonstration of the DP-2 thrust vectoring system in an 
affordable airframe.

Precision targeting systems modernization and enhancement

    The budget request contained $4.5 million in PE 35208N for 
distributed ground systems operational systems development.
    The committee notes that the Joint Service Imagery 
Processing System--Navy (JSIPS-N), the Navy's portion of the 
distributed common ground system, is being installed on 
aircraft carriers, amphibious assault ships, selected fleet 
flagships, and shore sites to receive and exploit imagery 
reports from multiple sensors and assist strike and amphibious 
operations planners and tactical aviators in planning the 
delivery of precision weapons. The committee understands that 
the digital imagery workstation suite (DIWS) component of 
JSIPS-N should be upgraded to provide a state-of-the-art 
targeting capability, smaller equipment footprint aboard ship, 
and increased reliability.
    The committee recommends $5.5 million in PE 35208N, an 
increase of $1.0 million to accelerate the program for 
development, testing, and integration of the upgraded DIWS.

Project Bear Trap

    The budget request contained $12.9 million in PE 63254N for 
anti-submarine warfare systems demonstration and validation, 
including support for Project Bear Trap.
    The budget request supports hardware and software 
development for the rapid prototyping of advanced capability 
acoustic and non-acoustic ASW sensors, as well as data 
collection and analysis for threat assessment and environmental 
characterization. The committee notes the progress being made 
in the evaluation and development of the phenomena of nonlinear 
dynamics and stochastic resonance (NDSR) for acoustic, 
magnetic, and other ASW sensor and signal processing 
applications.
    The committee recommends $17.9 million in PE 63254N, an 
increase of $5.0 million for Project Beartrap to continue the 
development, demonstration, and evaluation of NDSR technology 
for ASW applications and to continue the Beartrap environmental 
characterization program.

Radiation-hardened electronics applications

    The budget request contained $43.3 million in PE 11221N for 
strategic submarine and weapons systems support.
    Radiation-hardened integrated circuits are necessary for 
systems such as the guidance system for the Trident missile. 
The radiation-hardened electronics application program (RHEAP) 
is a Navy-sponsored initiative to improve the efficiency of 
production of critical, radiation-hardened integrated circuits 
through the use of advanced simulation and modeling tools. The 
program addresses the transition between the science and 
technology that develops more capable integrated circuit chips 
and the commercial production of those next generation chips. 
Benefits of RHEAP include improving the return on the science 
and technology investment in the development of advanced 
microelectronics, reducing the cost of production by commercial 
laboratories, and reducing the time and effort required to 
mature a research and development semi-conductor wafer 
prototype to a production-ready product
    The committee recommends $53.1 million in PE 11221N, 
including an increase of $9.8 million for development of 
advanced RHEAP tools for modeling, simulation and fabrication 
of radiation-hardened circuits.

SPAWAR enhanced modeling and simulation initiatives

    The budget request contained $7.8 million in PE 38601N for 
support of Navy modeling and simulation.
    The committee notes continued advances in modeling and 
simulation for command, control, communications, computers, 
intelligence, surveillance, and reconnaissance (C4ISR) systems. 
These advances demonstrate the use of efficient systems 
engineering and business practices and leverage simulation-
based acquisition applied to the assessment, planning, testing, 
and technology insertion for C4ISR systems. The committee also 
notes continuing progress in modeling and simulation systems 
engineering initiatives that aid operations analysis, and 
engineering assessment. The committee supports the development 
and understanding of new modeling and simulation tools that 
will assist in more effective decision-making and in the design 
of C4ISR systems and information architectures.
    Accordingly, the committee recommends $10.8 million in PE 
38601N, an increase of $3.0 million to continue initiatives for 
the development of improvements in C4ISR modeling and 
simulation.

Submarine electrical power

    The budget request contained $117.1 million in PE 62123N 
for force protection applied research.
    The committee notes that some nuclear submarines, which are 
nearing the end of their hull service life and being 
decommissioned may still have significant life remaining in the 
submarine nuclear reactor core that could, with appropriate 
modification to the steam generating system, provide a source 
of power for on-shore activities when connected to the on-shore 
power grid. Such a capability would be useful in augmenting the 
power grid in an area where there is a submarine basing and 
support capability.
    The committee recommends $117.4 million in PE 62123N, an 
increase of $300 thousand to initiate a study on the potential 
utility and application of submarine-generated steam and 
electrical power for augmentation of on-shore power grids.

Supply chain best practices

    The budget request contained $1.0 million in PE 65804N for 
technical information services that support cooperative 
advanced technology initiatives between the Navy and U.S. 
industry with the goals of improving affordability and reducing 
life cycle costs of new and modernized Navy systems.
    The committee recommends an increase of $6.0 million in PE 
654804N to continue the program for development and adoption of 
industrial and logistical best business and management 
practices among government and industry in support of defense 
systems. The committee expects that the Office of Naval 
Research will include funding for this program in future Navy 
budgets.

Surface navy integrated undersea tactical technology

    The budget request contained $135.3 million in PE 63502N 
for surface and shallow water mine countermeasures systems 
demonstration and validation.
    The committee understands that in order to effectively 
conduct the Navy's core anti-submarine warfare (ASW) and mine 
warfare (MIW) missions, naval forces must be able to reliably 
detect, locate, and target mines and enemy submarines, respond 
rapidly and decisively to these hostile contacts, and provide 
all commanders with a common picture of the undersea 
battlespace. The committee notes the need for development of a 
common undersea picture that would incorporate input data from 
existing and enhanced undersea warfare systems.
    The committee recommends $147.3 million in PE 63502N, an 
increase of $12.0 million for the Surface Navy Integrated 
Undersea Tactical Technology project. The committee expects 
that this effort will be coordinated with other Navy and joint 
programs for development of technology and systems to provide a 
common picture of the tactical undersea battlespace.

Surface ship torpedo defense

    The budget request contained $4.8 million in PE 63506N for 
surface ship torpedo defense (SSTD) demonstration and 
validation.
    The committee understands that the fiscal year 2002 plan 
for the SSTD program includes continued development of the 
tripwire torpedo defense system for large deck ships and DDG-51 
Flight IIA ships and continued development of the anti-torpedo 
torpedo countermeasure for surface ships.
    The committee recommends $9.8 million in PE 63506N, an 
increase of $5.0 million to accelerate the program for 
development and fielding of SSTD systems to the fleet.

Telemedicine for minimally invasive surgery

    The committee notes the progress made in the application of 
telemedicine to surgical procedures that allow an experienced 
surgeon to perform a procedure from a remote location using 
telecommunications technology and sophisticated robotic 
systems. The committee believes that the technology has the 
potential to increase significantly the availability of 
specialized surgical skills to deployed military personnel and 
the civilian community throughout the world. The committee 
directs the Secretary of the Navy, in consultation with the 
Secretary of Health and Human Services, to review the 
telemedicine program and consider the establishment of a pilot 
project for further application of telemedicine technology to 
minimally invasive surgical procedures. The committee believes 
that such a project would provide valuable data on human 
subject outcomes, equipment use and set-up, the quality of data 
transmission for remote applications, and the infrastructure 
required to support such telesurgery. The committee directs 
that the Secretary of the Navy report the results of the review 
and recommendations regarding the establishment of such a pilot 
project with the submission of the fiscal year 2003 budget 
request.

Titanium watertight door and hatch cover

    The budget request contained $130.4 million in PE 64567N 
for ship contract design/live fire test and evaluation but 
included no funds for evaluating a watertight door or hatch 
cover made from titanium.
    The committee is concerned about the continuing high cost 
to maintain weather decks of surface combatants and notes that 
the use of titanium, rather than steel, to construct these 
decks could produce potentially significant life-cycle cost 
savings, since titanium is lighter, stronger, and easier to 
maintain than steel, as well non-corrosive in seawater. 
Therefore, from within the funds requested, which the committee 
recommends, the committee strongly urges the Secretary of the 
Navy to use $1.0 million to initiate a pilot program, using 
titanium, to produce a watertight door and hatch cover on a 
flight 2A DDG-51 destroyer.

Torpedo rapid COTS insertion

    The budget request contained $17.1 million in PE 25632N for 
MK-48 Advanced Capability Torpedo operational systems 
development, but included no funding for insertion of advanced 
commercial-off-the-shelf (COTS) technology into the Mk 48 ADCAP 
torpedo.
    The committee is concerned that the performance of the MK-
48 submarine-launched torpedo in littoral waters is far less 
than desired. The committee is that the advanced rapid COTS 
insertion (A-RCI) program, which uses advanced processing 
builds (APB) and a multi-purpose processor (MPP) hardware 
architecture developed under small business innovative 
research, has successfully and very cost effectively improved 
the performance of submarine sonar systems. The committee 
believes that a similar A-RCI program for the MK-48 torpedo, 
which leverages the experience gained in the submarine sonar 
program, could have significant potential to cost effectively 
improve performance of the MK-48 torpedo in the demanding 
littoral waters sonar environment.
    Therefore, the committee recommends $27.1 million in PE 
25632N, an increase of $10.0 million to extend the application 
of the advanced processing build/multipurpose processor 
technology insertion process to the MK-48 ADCAP torpedo.

Vacuum electronics

    The budget request contained $62.1 million in PE 62271N for 
applied research in radio frequency technology, including $6.5 
million for vacuum electronics; and $76.9 million in PE 63271N 
for radio frequency advanced technology development.
    The committee report on H.R. 1402 (H. Rept. 106-162) noted 
the committee's support for a robust vacuum electronics 
research and development program in the Department of Defense 
and other federal agencies. The committee has reviewed the 
results of the Secretary of the Navy's recent report to 
Congress on the DOD vacuum electronics program and the DOD's 
April 2001 Technology Area Review and Assessment (TARA) on 
creating a balanced tri-service investment strategy for RF 
vacuum electronics and solid state power technologies. The 
committee endorses the TARA views on the criticality of support 
for both vacuum electronics and solid-state power technologies. 
The committee notes the TARA review's recommendations for 
increased funding in thetri-service vacuum electronics program 
and for establishment of a combined tri-service initiative to rapidly 
advance wide bandgap semiconductor device technology to enable advanced 
military radar and other systems requiring power electronics in the 
mid-to-long term.
    The committee recommends $16.5 million in PE 62271N for 
applied research in vacuum electronics, an increase of $10.0 
million; and an increase of $5.0 million in PE 63271N for 
vacuum electronics advanced technology development. The 
committee has recommended a legislative provision (Section 244) 
that would accelerate the program for development of advanced 
solid state, wide bandgap semiconductor technology. The 
committee expects the Under Secretary of Defense (Acquisition, 
Technology, and Logistics) through the Director of Defense 
Research and Engineering to ensure a balanced investment 
strategy for vacuum electronics and solid state power 
technologies that will meet DOD requirements for current and 
future systems that use radio frequency power electronics.

VECTOR study and analysis

    The budget request contained $11.6 million in PE 63790N for 
the cooperative NATO research and development program.
    The committee is aware that a funding shortfall has 
developed in the VECTOR program, which is due in large part to 
a lower-than-expected contribution provided by the Federal 
Republic of Germany for fiscal year 2002. The committee is 
concerned with the numerous executability problems experienced 
in this program and remains concerned about the feasibility and 
follow-on applications of this technology.
    The committee recommends that the Secretary of the Navy 
review VECTOR's technological feasibility, assess its potential 
follow-on applications in accordance with the Navy's future 
force structure plans, and examine in particular the possible 
incorporation of VECTOR technology applied to manned and 
unmanned naval aircraft in the inventory.
    The committee recommends $11.6 million in PE 63790 N, 
including $1.0 million for the VECTOR study and analysis 
program.

Warfighter sustainment advanced technology

    The budget request contained $48.6 million in PE 63236N for 
warfighter sustainment advanced technology development.
            Naval environmental compliance operations monitoring system
    The committee understands that proposals have been made for 
establishment of a naval environmental compliance operations 
monitoring system (NECOSM), a two-pronged effort to increase 
capabilities for situational awareness and pollution 
prevention. The first effort would involve implementing 
monitoring and control technology modules that were identified 
during a previously funded baseline survey and cost analysis. 
The second effort would use environmental analysis, cost, and 
compliance driven needs assessment to identify high priority 
projects for implementation of NECOSM. The committee recommends 
an increase of $6.0 million in PE 63236N for development and 
application of advanced technology leading to a Naval 
Environmental Compliance Operations Monitoring System.
            Real time heart rate variability monitor
    The committee understands that real time heart rate 
variability technology has the potential for enhancing on-site 
assessment of disease and trauma by enabling physiological 
measurement of nervous system functioning and balance. The 
committee believes that improvements in these areas can lead to 
improved treatment and victim survivability. The committee also 
believes that the technology may permit the early detection and 
treatment of the effects of weapons of mass destruction.
    The committee recommends an increase of $8.9 million in PE 
63236N for advanced development and demonstration of 
applications for real time heart rate variability technology.

Warfighter sustainment applied research

    The budget request contained $71.3 million in PE 62236N for 
warfighter sustainment applied research.
            Commercial off-the-shelf (COTS) carbon fiber qualification
    The committee notes that Navy and other DOD aircraft and 
weapons systems must use a high-priced carbon fiber available 
only from a single source to reinforce composite structures. As 
a result of the development of a new qualification protocol, 
the Navy and the Joint Strike Fighter program now have the 
means to qualify new commercially available fibers for use in 
advanced composite structures.
    The committee recommends an increase of $2.0 million in PE 
62236N for qualification of commercially available carbon 
fibers for aircraft and missile applications.
            Detection and identification of human pathogens
    Recent advances and maturing of design and technology have 
enabled portable, cost-effective fabrication and demonstration 
of high-sensitivity, high spectral-resolution sensors for the 
detection and identification of spectral signatures emitted by 
pathogens. The committee believes that such sensors provide the 
potential for the development of active, high-resolution, 
broadband spectral sensing instruments for real-time in vivo 
detection and identification of human pathogens.
    The committee recommends an increase of $2.0 million in PE 
62236N for applied research in the detection and identification 
of human pathogens.
            Formable aligned carbon thermo sets
    The committee understands that a new composite technology 
known as formable aligned carbon thermo sets (FACTS) has the 
potential for markedly reducing the cost ofcomposites and for 
enabling the production of more complex composite structures in 
aircraft structures and other applications where flexibility in design 
and fabrication of the structure is needed. Successful development of 
the technology will lead to reductions in the cost of production of 
existing composite structures, increase the percentage of composites in 
the system design, and significantly reduce operations and maintenance 
costs.
    The committee recommends an increase of $4.0 million in PE 
62236N to accelerate the Navy's program research and 
development program in formable aligned carbon thermo sets.
            Knowledge-based ship system diagnosis and repair
    The committee notes the establishment by the Navy of a 
collaborative program for the development of a new system to 
remotely monitor Navy ships and enable off-board technical 
experts to assist on-board technicians that are part of the 
ship's crew in ship maintenance and repair. The committee 
believes that successful development and implementation of this 
new approach to knowledge-based system diagnosis and repair 
could be increasingly important as the Navy make the transition 
to ships with reduced number of personnel and as electronic 
equipment and other ships systems continues to be more complex 
and powerful.
    The committee recommends an increase of $3.0 million in PE 
62236N for applied research in knowledge-based ship system 
diagnosis and repair.

                            Air Force RDT&E

                                Overview

    The budget request contained $14,344.0 million for Air 
Force RDT&E. The committee recommends authorization of 
$14,455.6 million, an increase of $111.7 million.
    The committee recommendations for the fiscal year 2002 Air 
Force RDT&E program are identified in the table below. Major 
changes to the Air Force request are discussed following the 
table.

                       Items of Special Interest

Access to space

    The budget request included $26.3 million for the 
demonstration and transition of Aerospace Structures in PE 
63211F.
    The committee recognizes the growing significance of space 
operational capability and that dependable and low-cost access 
to space may require the use of highly-specialized aerospace 
vehicles and structures. To address these evolving challenges, 
the committee urges the Secretary of the Air Force to establish 
a joint program office with Army and Navy representation to 
define required technology investments for access-to-space, to 
perform current and future Air Force capability assessments, to 
develop an integrated plan for low-cost access to space, and 
initiate studies and development activities in support of such 
a plan. Further, the committee strongly urges coordination 
between the Aeronautical Systems Center, the Space and Missile 
Center, the Air Force Research Laboratory, and the National 
Aeronautics and Space Administration (NASA).
    Accordingly, the committee authorizes $28.3 million in PE 
63211F, an increase of $2.0 million to address this access-to-
space priority.

Advanced aerospace sensors

    The budget request contained $55.8 million in PE 63203F for 
advanced aerospace sensors.
    The committee believes that advanced sensors are essential 
to support future warfighter requirements and therefore 
recommends $60.8 million in PE 63203F, an increase of $5.0 
million for advanced aerospace sensors.

Aerospace propulsion

    The budget request contained $149.2 million in PE 62203F 
for aerospace propulsion.
    The committee notes the recent efforts by the Department of 
Defense to ensue adequate funding in this critical Air Force 
applied research account. The committee is aware of a small 
business innovative research effort, the Pulse Detonation 
Engine (PDE), which has been in development for several years 
and appears ready for fabrication and test of a flight-worthy 
PDE. The committee recommends an increase of $6.0 million in PE 
62203F to contain PDE efforts.
    The committee also continues to support Air Force 
investments in Integrated High Payoff Rocket Propulsion 
Technology (IHPRPT) and recommends an increase of $9.5 million 
in PE 62203F and an increase of $6.5 million on PE 63302F for 
continued investments in IHPRPT.

Aging landing gear life extension (ALGLE) program

    The budget request contained $20.1 million in PE 65011F for 
development of products and services to improve the performance 
of aging aircraft systems but included no funds for the ALGLE 
program.
    The ALGLE program addresses the operational, safety and 
maintenance consequences of increased mishaps resulting from 
landing gear failures as well as unacceptable mission incapable 
rates for KC-135, C-130, C-5 and F-16 aircraft that are 
attributable to either unavailable or unreliable landing gear 
assets. The committee notes that the ALGLE program is 
prototyping new landing gear component modifications, 
developing new repair techniques, and exploiting new 
technologies. The committee understands that these efforts have 
already resulted in life cycle cost reductions of over $46.0 
million and believes that this program should continue to 
address the Air Force's aging landing gear problems in fiscal 
year 2002 and in subsequent years.
    Accordingly, the committee recommends $35.1 million in PE 
65011F, an increase of $15.0 million, for continuation of the 
ALGLE program.

Airborne reconnaissance system

    The budget request contained $77.8 million in PE 35206F for 
airborne systems, but included no funds for theater airborne 
reconnaissance system (TARS) or Combat Sent passive airborne 
ranging.
    The committee recommends $97.3 million in PE 35206F, an 
increase of $4.5 million for Combat Sent passive airborne 
ranging and an increase of $15.0 million for TARS development.

Assessment relating to gasoline and diesel engine fuel systems

    The committee encourages the Secretary of Defense to assess 
the potential for developing a program that would require all 
military services to maintain gasoline and diesel engine fuel 
systems using engine decarbonizing systems. The assessment 
should address the costs and benefits of a requirement that the 
equipment and cleaning agents used in decarbonizing engines be 
tested and approved by entities such as the Management and 
Equipment Evaluation Program (MEEP) of the Department of the 
Air Force or similar testing entities in the other military 
services. Consideration should be given to requirements that 
cleaning agents are non-carcinogenic, non-flammable, and non-
hazardous, as documented by the Material Safety Data Sheets 
(MSDS) required by the U.S. Environmental Protection Agency, 
and that the use of transmission fluid exchange equipment that 
is capable of exchanging virtually all contaminated automatic 
transmission fluid (ATF) with new ATF.

Bipolar wafer cell nickel-metal hydride battery

    The budget request contained $53.8 million in PE 78011F for 
the Air Force's manufacturing technology program.
    The committee notes that the Air Force has been developing 
a bipolar wafer-cell nickel-metal hydride (NiMH) replacement 
battery for the F-16 aircraft that has the potential to provide 
significantly higher power than nickel-cadmium batteries. The 
committee understands that the use of bipolar wafer-cell NiMH 
batteries could lead to significant savings from reduced 
procurement and maintenance of existing nickel-cadmium 
batteries.
    The committee recommends an increase of $2.5 million in PE 
78011F for to complete manufacturing technology development and 
testing of a bipolar wafer-cell NiMH battery for the F-16 
aircraft.

Commercial imagery strategy

    The committee believes that the United States should 
prioritize the use of commercial remote sensing as envisioned 
in Presidential Decision Directive-23. Moreover, the committee 
believes that allocating certain imagery requirements to the 
U.S. commercial remote sensing industry will permit National 
Technical Means to focus on high priority intelligence 
requirements. Thus, the committee continues to support use of 
commercial satellite imagery and geo-spatial products and 
services to satisfy the non-time-critical low and medium 
resolution requirements of the Secretary of Defense, including 
the regional Commanders-in-Chief, and the Intelligence 
Community.
    The committee also understands that the Administration is 
developing a commercial imagery strategy to support these 
requirements and strongly endorses the development and 
implementation of such a strategy. The committee believes, 
however, that the U.S. government must become a reliable, long-
term customer of commercial imagery if the strategy is to be 
successful. The committee recognizes that there are budgetary 
and contract authority issues, but does not believe they are 
beyond solution.
    Therefore, the committee directs the Secretary of Defense, 
in consultation with the Director of Central Intelligence, to 
plan and carry out a program to purchase a majority of their 
non-time-critical low and medium resolution imagery 
requirements from the U.S. commercial remote sensing industry 
by 2005.

Free electron laser

    The budget request contained $77.2 million in PE 62102F for 
Materials, but included no funds for free electron laser.
    The committee notes the progress achieved in Navy free 
electron laser (FEL) development and urges the Secretary of the 
Air Force to continue collaborative efforts including the 
addition of ultra violet capability to the Navy's FEL 
demonstration to examine aerospace applications.
    The committee recommends an increase of $5.5 million in PE 
62102F for FEL.

Funding transfers to support transformation

    The committee is concerned that the largest area of growth 
in Air Force research and development (R&D) investments has 
occurred in the category of fielded system development and 
other mature technologies. Other areas included increases 
greater than previously forecast, apparently excessive 
management funding, or un-obligated prior year funding. The 
committee believes that the highest priority for R&D 
investments should be to fund efforts directly related to 
transformation and future capabilities. Therefore, thecommittee 
recommends the following decreases to Air Force accounts, to be 
transferred to other programs within the Air Force that support 
transformation and future system development:

62204F..................................................     $14,100,000
62605F..................................................       5,700,000
62702F..................................................       5,200,000
63605F..................................................       5,000,000
63430F..................................................      27,000,000
63432F..................................................       5,000,000
63438F..................................................      10,000,000
63850F..................................................       3,000,000
63856F..................................................       4,433,000
63859F..................................................       2,688,000
65101F..................................................       5,000,000
65807F..................................................      13,600,000
99980F..................................................      10,000,000
27028F..................................................      29,400,000
27133F..................................................      30,000,000
27134F..................................................      25,500,000
27138F..................................................      15,100,000
27268F..................................................      25,500,000
27277F..................................................       1,961,000
27410F..................................................      10,000,000
35910F..................................................      20,000,000
41119F..................................................      30,000,000
41134F..................................................      22,500,000

GPS jammer detection and location system

    The budget request contained $10.8 million in 27247F for 
Air Force tactical exploitation of national capabilities, but 
included no funds for GPS jammer detection and location system 
(GPS-JLOC).
    The committee notes that mission planning tools, tactics, 
and procedures must be developed for countering jamming of GPS. 
The committee is aware that a GPS jammer detection and location 
system has been developed under a Phase II small business 
innovative research (SBIR) program and further notes that GPS-
JLOC appears ready to transition to an operational capability 
under SBIR Phase III.
    The committee recommends $3.8 million in PE 27247F, an 
increase of $3.0 million for GPS-JLOC.

High accuracy network demonstration system

    The budget program included $50.5 million in PE 65864F for 
the Space Test Program (STP).
    The committee supports the STP initiative as an effort for 
advancing space technology and enabling future U.S. space 
superiority in a cost effective manner. The committee is aware 
of an orbit-identification and determination capability that 
may reduce errors and costs in the current space-object 
maintenance catalog. The technology may improve ephemeris 
determination for Defense Support Program satellites by as much 
as 50 percent through the use of highly accurate angular 
observations from a family of low-cost optical sensors called 
the High Accuracy Network Determination System (HANDS). The 
committee notes the expected low-cost nature of HANDS and 
encourages the Air Force to pursue opportunities in this area.
    Accordingly, the committee authorizes $55.5 million in PE 
65864F for HANDS, an increase of $5.0 million over the request.

Joint precision approach landing system

    The budget request contained $9.6 million in PE 63860F for 
joint precision approach landing systems (JPALS).
    The committee is aware that the basic requirement for joint 
precision approach landing system is to provide a rapidly 
deployable, adverse weather and terrain, survivable, 
maintainable, interoperable precision approach and landing 
system for land and sea. The committee notes that JPALS will 
replace existing, obsolete landing systems in the fleet and 
ashore.
    The committee recommends $14.6 million in PE 63860F for 
JPALS.

Joint STARS multi-platform radar technology insertion program

    The budget request contained $147.8 million in PE 27581F 
for Joint STARS system development, but contained no funds for 
Multi-Platform Radar Technology Insertion Program (RTIP).
    The committee notes the tremendous contributions of Joint 
STARS aircraft to ground warfare and warfighter situational 
awareness and fully supports the planned improvements inherent 
in the RTIP effort that will enhance ground surveillance, 
precision targeting, and battlefield coordination. However, the 
committee is concerned with the operational limitations 
experienced by the Joint STARS fleet refurbished airframes and 
believes that the Air Force should thoroughly assess 
utilization of RTIP technology on other, more modern, 
airframes.
    Therefore, the committee recommends $246.8 million in PE 
27581F, an increase of $89.0 million for Multi-Platform RTIP 
and an increase of $10.0 million for Joint STARS ocean 
surveillance capability testing.

Joint strike fighter (JSF) alternate engine

    The budget request contained $769.5 million in PE 64800F to 
begin the engineering and manufacturing development phase of 
the JSF program, but included no funds to reduce development 
schedule risk of the alternate engine common hardware 
components.
    The JSF program will develop and field a family of aircraft 
that meets the needs of the Navy, Air Force, Marine Corps, and 
allies with commonality among the variants to minimize life 
cycle costs. The committee notes that the JSF joint program 
office (JPO) has encouraged two engine manufacturers to work 
together on the co-development of propulsion components which 
are common to both the JSF's current F-119 engine and the F-120 
alternate engine and understands that this effort will develop 
two interchangeable propulsion systems while preserving the 
proprietary interests of each manufacturer. The committee also 
understands that the JPO supports production of the F-120 
alternate engine as part of the low-rate initial JSF production 
scheduled for fiscal year 2009 but believes that increased 
funding in fiscal year 2002 is required to reduce development 
schedule risk of the common hardware components.
    Accordingly, the committee recommends $779.5 million in PE 
64800F, an increase of $10.0 million, to reduce development 
schedule risk of the JSF alternate engine common hardware 
components.

Low cost autonomous attack system

    The budget request contained $37.6 million in PE 63601F, 
including $8.0 million for the Low Cost Autonomous Attack 
System (LOCAAS).
    The committee supports continued development of precision 
guided munitions (PGMs) such as LOCAAS and notes that the 
LOCAAS program is preparing for final development to address 
the PGM requirements for area search weapons not addressed by 
the Air Force Small Diameter Bomb development program.
    The committee recommends an increase of $8.0 million in PE 
63601F to continue LOCAAS development.

Low cost launch technology

    The budget request contained $54.5 million in PE 63401F for 
advanced spacecraft technology, but included no funds for low 
cost launch technology. The committee is aware of several low 
cost launch concepts and technologies that offer the potential 
to reduce space launch costs tremendously. The committee notes 
that the Scorpius program has successfully demonstrated reduced 
cost launch capabilities.
    The committee recommends $69.5 million in PE 63401F, an 
increase of $15.0 million for low cost launch technologies, 
including Scorpius.

Major T&E investment

    The budget request contained $49.9 million in PE 64759F for 
test & evaluation investments, but included no funds for the 
Propulsion Wind Tunnel (PWT) Upgrade project or the Laser 
Induced Surface Improvement (LISI) project.
    The committee notes that previous year budget requests by 
the Air Force included funding to initiate the PWT Upgrade 
project, but sufficient funding has not yet been committed to 
complete this project. The committee also notes that the Air 
Force has explored the cost savings and improved wear and 
corrosion resistance demonstrated by components treated with 
the LISI process.
    Therefore, the committee recommends $59.9 million in PE 
64759F, an increase of $4.0 million, for completion of the PWT 
Upgrade project and an increase of $6.0 million for continued 
development of the LISI project.

Materials technologies for aging aircraft

    The budget request included $32.7 million in PE 63112F for 
Advanced Materials for Weapon Systems.
    The committee recognizes that future aeronautical 
capability will largely depend on significant improvements in 
advanced materials technologies that promise to extend the 
lifespan and reduce the total life cycle costs of future 
aerospace vehicles. While the committee notes that the Air 
Force has experienced some success in developing and 
implementing new aging aircraft technologies, it encourages the 
service to increase overall effort in this area.
    Therefore, the committee recommends an increase of $4.0 
million in PE 63112F to address this priority.

Missile Technology demonstration-3B

    The budget request contained $8.5 million in PE 65860F for 
rocket systems launch programs, but included no funds for the 
Missile Technology Demonstration (MTD)-3B.
    The committee notes that the MTD effort represents the 
primary high-speed weapon system technology platform within the 
Department of Defense and urges the Secretary of the Air Force 
to reassess funding priorities giving full weight to the 
importance of the MTD program.
    The committee recommends an increase of $11.0 million to PE 
65860F for continued support of MTD-3B.

Non-space SIGINT architecture

    The committee notes that the programs that make up the 
Joint SIGINT Architecture Family (JSAF) continue to experience 
significant programmatic setbacks despite the efforts of 
program officials and their industry partners. The Low Band 
Subsystem (LBSS) program was recently terminated after a 
seemingly endless series cost, schedule and performance 
difficulties and the High Band Subsystem program is reportedly 
facing similar difficulties with eventual termination possible. 
Moreover, the reported ability of the JSAF programs to allow 
full interoperability within emerging Department of Defense 
command, control, communications and intelligence architectures 
as originally envisioned was never realized and was not even 
possible without coordinated wide-band communications 
improvements throughout all the ISR platforms. The committee is 
concerned that the JSAF efforts have drained funding from 
reasonable alternatives for the near term.
    The committee believes the JSAF program has failed with 
respect to its original objectives. The committee believes that 
this is not just another case of poor program performance, but 
indeed, this was a management approach failure that has denied 
theDepartment an achievable joint SIGINT architecture and the 
very objectives it was to solve. As a result, an adequate joint SIGINT 
architecture is still not available, critical SIGINT modernization 
efforts have not occurred, and interoperability is limited. The 
committee is convinced a joint architecture, replete with the ability 
to share system upgrades is achievable. But, it will have to be done by 
the platform program offices working together in a collaborative set of 
efforts. The committee believes that this cannot be realized by a 
program office independent of the platform developers, nor can it be 
done without a plan for achieving system-level interoperability.
    Accordingly, the committee directs that Secretary of the 
Air Force, as principal acquisition executive for JSAF 
programs, to develop a comprehensive, non-space SIGINT system 
architecture plan for the post 2007 time frame. This plan shall 
provide for a digital, open architecture that uses only non-
proprietary commercial standards and standardized, well-defined 
interfaces. Further, the systems in this architecture must 
include the ability to be reprogrammed through software changes 
to be periodically upgraded as well as to meet emerging time-
critical requirements. The non-space SIGINT architecture plan 
shall be provided to the congressional defense and intelligence 
committees not later than May 31, 2002.

Precision location and identification (PLAID)

    The budget request contained $41.3 million in PE 64270F for 
electronic warfare (EW) development, of which $1.8 million was 
included for the PLAID technology program.
    The PLAID technology program will enhance aircrew 
situational awareness by providing accurate ground emitter 
location and unambiguous identification. The committee 
understands that the Air Force plans to conduct a competition 
to advance the engineering manufacturing and development (EMD) 
phase of the PLAID technology program and further understands 
that, upon completion of the EMD phase, the PLAID upgrade will 
be installed on over 1,800 Air Force aircraft. Due to its 
successful flight and ground test evaluations, the committee 
believes that the PLAID technology EMD phase should be 
accelerated.
    Therefore, the committee recommends $54.6 million in PE 
64270F, an increase of $13.3 million, to accelerate the PLAID 
technology EMD phase.

Satellite planning information network (SPIN)

    The budget request contained $232.1 million in PE 64479F 
for development of the military strategic and tactical relay 
(MILSTAR) communications satellite, but included no funds for 
the SPIN development.
    The SPIN is a web-based satellite communications management 
technology that utilizes the Department's existing secret 
internet protocol router to expand the flexibility and 
efficiency of military satellite communications. The committee 
notes that the demand for military satellite communications 
continues to rise, and believes that development efforts of 
programs such as the SPIN should be undertaken to more 
efficiently use these resources.
    Consequently, the committee recommends $238.6 million in PE 
64479F, an increase of $6.5 million, to develop the SPIN 
technology.

Space and missile rocket propulsion

    The budget request contained no funds in PE 63302F for 
Space and Missile Rocket Propulsion.
    The committee notes the importance of continued investments 
in advanced space and missile propulsion technology and 
recommends an increase of $12.6 million in PE 63302F to 
modernize Air Force Research Laboratory large rocket test 
stands for higher pressure requirements and improved 
instrumentation.

Special aerospace metals and manufacturing processes

    The budget request contained $77.2 million in PE 62102F for 
applied research and $32.7 million in PE 63122F for advanced 
development of materials technologies for aerospace systems and 
$53.8 million in PE 78011F for the Air Force's manufacturing 
technology program.
    The committee continues to support the need for advances in 
special aerospace metals and metal alloys for aircraft and 
space vehicle structures, propulsion, components, and weapon 
systems. The Department of Defense needs materials that are 
lightweight, high strength, high performance, and capable of 
withstanding the stressing environments that are experienced by 
terrestrial and aerospace systems, and for the development and 
optimization of manufacturing processes for these materials.
    The committee recommends increases of $4.5 million in PE 
62102F, $4.5 million in PE 63112F, and $3.5 million in PE 
78011F to continue the program for the development and 
demonstration of special aerospace materials and materials 
manufacturing processes.

Synthetic Theater Operations Research Model

    The budget request included $25.3 million in PE 27601F for 
Modeling and Simulation, but included no funding for the 
Synthetic Theater Operations Research Model (STORM).
    The committee supports the Air Force Modeling and 
Simulation program and recognizes the potential savings and 
enhanced training levels associated with these initiatives. As 
training costs escalate, the committee continues to encourage 
alternative cost-saving training techniques particularly as 
potential threats continue to evolve. The committee is aware 
that STORM, a program in its fifth year of development, is a 
next generation simulation designed specifically to meet needs 
for a greater understanding of the impact of information 
technology on force structure and operational concepts.
    Therefore, the committee recommends $27.3 million in PE 
27601F, an increase of $2.0 million for the continued 
development of STORM.

Texas regional institute for environmental studies

    The budget request contained no funds in PE 63723F for 
environmental engineering technology.
    The committee continues to support the ongoing Texas 
regional institute for environmental studies (TRIES) research 
and development demonstration program, and recommends $3.0 
million in PE 63723F for a joint TRIES--Brooks Air Force Base 
Institute of Environment, Safety and Occupational Health Risk 
environmental demonstration program addressing environmental 
issues unique to the southwest border region.

                           Defense-Wide RDT&E

                                Overview

    The budget request contained $15,050.8 million for Defense-
Wide RDT&E. The committee recommends authorization of $15,374.6 
million, a decrease of $245.2 million and the transfer of 
$569.2 million for missile defense programs from Army and Navy 
RDT&E to Defense-wide RDT&E.
    The committee recommendations for the fiscal year 2002 
Defense-Wide RDT&E program are identified in the table below. 
Major changes to the Defense-Wide request are discussed 
following the table.

                       Items of Special Interest

Aircraft affordability initiative

    The budget request contained $10.8 million in PE 64805D8Z 
for the Department of Defense Commercial Operations and Support 
Savings Initiative (COSSI).
    The committee notes that the stated goal of COSSI is to 
adapt commercial technologies to reduce operations and support 
(O&S) costs and improve overall weapons systems performance.
    The committee is aware of a promising technology for 
improving electronic warfare (EW) performance and reducing the 
overall cost of future and existing aircraft. Initiated in 
fiscal year 2001, the digital EW product improvement program 
(EW PIP) has utilized recent technological advancements to 
permit the conversion of analogue-based EW receivers to digital 
electronics. The committee understands that digital receivers 
will substantially decrease the supportability cost and risk of 
an aircraft's EW system and simultaneously increase combat 
performance. The committee further understands that if 
introduced to the F-22 fighter, the digital EW PIP should 
reduce aircraft weight by more than 30 pounds and power 
consumption by more than 600 watts. The committee is encouraged 
by these anticipated gains and improvements and urges the 
Department to also consider the introduction of digital EW PIP 
on other aircraft, such as the Joint Strike Fighter, F-15s, and 
as well as other military and space platforms.
    The committee recommends $17.0 million in PE 6480D8Z to 
complete requisite systems software development and to design, 
build, and bench-test the F-22 RW/DF Digital Receiver and two 
associated modules.

Backscatter mobile truck system

    The budget request contained $33.5 million in PE 63228D8Z 
for demonstration and validation of physical security 
equipment.
    The committee notes the requirement for deployed forces to 
be capable of detecting explosives, weapons, or other systems 
or items of potential use in acts of terrorism. The committee 
also notes that there are commercial-off-the-shelf (COTS) 
mobile truck-mounted systems capable of detecting organic 
materials in confused and cluttered operational environments 
using both backscatter and standard transmission x-ray 
technology, that, if successful and cost-effective in 
comparison to other cargo screening and surveillance systems, 
could be used to improve the anti-terrorism posture of U.S. 
military bases and forces.
    The committee recommends $49.5 million in PE 63228D8Z, an 
increase of $16.0 million to test and evaluate COTS mobile 
truck-mounted cargo screening and surveillance systems that 
employ backscatter and standard transmission x-ray technology.

Ballistic Missile Defense Organization (BMDO)

    The budget request contained $7,036.5 million for the RDT&E 
program elements of BMDO.
    The committee recommends $7,470.7 million, an increase of 
$434.2 million. The increase results from disapproving the 
requested transfer of RDT&E activities for Patriot Advanced 
Capability-3 (PAC-3), Medium Extended Air Defense System 
(MEADS), and Navy Area to the military departments.
            Technology
    The budget request contained $112.0 million in PE 63175C 
for advanced technology development.
    The committee recommends the budget request for technology. 
The committee strongly believes that a robust technology 
development program is the key to enhanced future capabilities 
to counter more sophisticated threats. The committee notes that 
BMDO investment in technology is only 1.5 percent of the total 
budget request, and strongly recommends significantly 
increasing this investment in future budget cycles.
            Ballistic missile defense system
    The budget request contained $779.6 million in PE 63880C 
for ballistic missile defense (BMD) system development.
    The committee recommends $754.6 million, a decrease of 
$25.0 million. The committee believes that two systems 
engineering and integration fourth quarter starts, for updates 
to the manufacturing technology program and the threat systems 
engineering library, can be deferred to fiscal year 2003.
    The committee notes that the BMD system segment 
consolidates activities conducted under a number of program 
elements in previous years. They include battle management 
command and control development, family of systems integration 
activities, threat representative target development, and 
countermeasures programs. The committee is especially 
encouraged by the increased priority given to assessment of 
countermeasures, and specifically the Hercules project, which 
provides a venue for vetting potential countermeasures against 
projected system capabilities.
    The committee observes that this program element, which 
includes target development and countermeasures assessment, is 
essential to the implementation of an operationally realistic 
test capability.
            Terminal defense segment
    The budget request contained $988.2 million in PE 63881C 
for the terminal defense segment.
    The committee recommends $1,577.4 million, an increase of 
$589.2 million. This increase reflects incorporation of RDT&E 
activities for PAC-3, MEADS, and Navy Area into this program 
element as a result of the committee's recommendation to 
disapprove the transfer of those programs to the services. The 
committee also recommends an increase of $30.0 million to 
accelerate development of the Arrow System Improvement Program 
to counter advanced threats to the national security of Israel 
posed by emerging systems, as represented by the Shahab series 
of ballistic missiles. The committeebelieves that technical 
development of missile defense by the Department of Defense benefits 
from continued cooperation with the government of Israel.
    The budget request included $73.6 million for MEADS in Army 
research and development. The committee recommends transfer of 
MEADS back to BMDO, but supports the objective of providing a 
mobile theater defense capability for the U.S. and the allies, 
and encourages greater participation in the program by the 
members of North Atlantic Treaty Organization.
    The committee is concerned by the significant projected 
cost overrun and schedule slip recently announced in the Navy 
Area program. Production delivery of the Navy Area interceptor 
appears to be delayed by approximately 20 months until fiscal 
year 2007. The committee notes that Navy Area is the Navy's 
``first to field'' antiballistic missile capability and first 
unit equipped was to have closely followed the fielding 
schedule of PAC-3. Further, the committee is disturbed by the 
absence of Navy commitment to vigorously pursue this effort 
given other demands on its budget, and disapproves the transfer 
of Navy Area from BMDO to the Navy. The committee recommends a 
decrease of $10.0 million for this program.
            Midcourse defense segment
    The budget request contained $3,940.5 million in PE 63882C 
for the midcourse defense segment.
    The committee recommends $3,910.5 million for the midcourse 
defense segment, including a decrease of $30.0 million to the 
sea-based midcourse project. Within the sea-based mid-course 
project, the committee recommends the budget request of $260.0 
million for the Aegis LEAP Interceptor demonstration program, 
the precursor to a Navy theater wide capability to defeat 
ballistic missiles. The committee recommends $30.0 million, a 
decrease of $30.0 million, for concept definition studies 
related to a new sea-based midcourse capability against 
intermediate and long range threats. The committee believes 
that ongoing, competitive radar development activities will 
greatly influence the course this effort will take.
    The committee recommends $3,230.7 million, the budget 
request, for the ground based midcourse project, including 
$786.5 million for the fiscal year 2004 Pacific missile defense 
test bed, including infrastructure upgrades and construction at 
Fort Greely, Kodiak Island, Shemya Island, and Kwajelein Atoll. 
The committee believes that such improvements to the 
infrastructure that add operational realism to testing, coupled 
with an aggressive test program, are crucial to the expeditious 
development and demonstration of a viable ground-based 
midcourse defense. The committee notes that the upgraded test 
infrastructure will also, in the near term, support testing of 
sea-based and integrated ``family of systems'' concepts.
            Boost defense segment
    The budget request contained $685.4 million in PE 63883C 
for the boost phase defense segment.
    The committee recommends $610.4 million, a decrease of 
$75.0 million, for this program element. The committee 
recommends $25.0 million, a decrease of $25.0 million, for the 
sea-based boost project, reflecting the committee's view that 
concept definition and operational assessment should precede 
hardware design, development, and testing. The committee 
recommends $400.0 million for the air-based boost project 
(airborne laser), a decrease of $10.0 million. The block 2008 
full power optics for the airborne laser are not required for 
the fiscal year 2003 half power shoot down demonstration, which 
the committee sees as a critical indicator of the continued 
viability of the effort. The committee recommends $152.0 
million, a decrease of $38.0 million, for the space-based boost 
defense project. The committee is concerned that the space-
based laser (SBL) integrated flight experiment, has requested 
funding of $200 million this year, with the experiment a decade 
or more out. The committee recommends a decrease of $28.0 
million to hold SBL to the level of the original fiscal year 
2002 program of record, and suggests that BMDO consider other, 
more near term space-based demonstrations. The committee 
recommends $5.0 million for space-based kinetic energy boost 
phase intercept concept definition, a decrease of $10.0 
million, and believes $2.0 million in savings can be found in 
program operations savings in this program element.
            Sensors segment
    The budget request contained $495.6 million in PE 63884C 
for sensor development.
    The committee recommends $470.6 million, a decrease of 
$25.0 million from the budget request. The committee notes that 
the Space-based Infrared System-low (SBIRS) has experienced 
significant growth over the level forecast for fiscal year 
2001. The committee fully supports SBIRS-low, but places lower 
near term priority on SBIRS than other elements in the budget 
request as the first satellites will not be available to begin 
supporting test activities until fiscal year 2007.
    The committee recommends the budget request of $75.3 
million to complete detailed design for the Russian-American 
Observation Satellite program. The committee believes that 
cooperative threat reduction should include missile defense 
activities that reduce the risk of an undetected launch event.

Chemical/biological defense research, development, test and evaluation 
        program

    The budget request contained a total of $507.7 million for 
chemical/biological defense, including $39.1 million in PE 
61384BP for basic research, $125.5 million in PE 62384BP for 
applied research, $69.2 million in PE 63384BP for advanced 
technology development, $82.6 million in PE 63884BP for 
demonstration/validation, $159.9 million in PE 64384BP for 
engineering and manufacturing development, and $31.3 million in 
PE 65384BP for RDT&E management support. The budget request 
also contained $140.1 million in PE 62383E for the Defense 
Advanced Research Projects Agency (DARPA) biological defense 
research program.
    The committee recommends a total of $502.7 million for 
chemical/biological defense RDT&E, a decrease of $5.0 million 
to the budget request. The committee also recommends a total of 
$150.1 million in PE 62383E for the DARPA biological warfare 
defense program, an increase of $10.0 million. Elsewhere in 
this report the committee has recommended an increase of $13.0 
million for the procurement of collectiveprotection shelters, 
and has also provided guidance regarding the contracts for procurement 
of anthrax vaccine.
    In order to insure an integrated chemical/biological 
defense program within the Department of Defense (DOD), section 
1793 of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160) mandated the coordination and 
integration of all DOD chemical/biological defense programs and 
the funding of these programs in a defense-wide account, 
separate from the accounts of the military departments. The 
committee believes that the Department has made considerable 
progress in improving cooperation among the military 
departments. The committee has previously noted a growing 
tendency to fund individual chemical/biological defense 
projects within the military services and again emphasizes that 
this practice violates the intent and purpose of Congress in 
establishing the consolidated program.
    The committee also emphasizes the necessity for the 
objectives of the DARPA biological defense program to be 
coordinated closely and integrated with the overall Department 
of Defense chemical and biological defense program, and expects 
the Secretary of Defense to ensure that such an integrated 
program is established and maintained.
    The committee continues to support initiatives for 
research, development, and demonstration of advanced chemical 
and biological defense technologies and systems. These 
initiatives should compete for funding within the appropriate 
program elements of the joint chemical and biological defense 
program and the DARPA biological defense program on the basis 
of technical merit and the anticipated ability of the 
technology or system to meet joint and service unique needs.
            Research in percutaneous, optical, and pulmonary effects of 
                    mustard agent
    The committee notes that the United States concentrated its 
research in the effects of mustard agent on the human body on 
the percutaneous effects of mustard on the skin, while U.S. 
allies focused on the effects of mustard agent and agent vapors 
on the eyes and on the pulmonary system. The committee 
understands that the research activities of U.S. allies in 
these areas have been reduced and that the U.S. research 
program in the effects of mustard agent now focuses on all 
three areas: percutaneous, optical, and pulmonary. The 
committee encourages a balanced, threat-focused research effort 
on the effects of mustard and other chemical agents on the 
human body and the identification and development of promising 
technologies for protection and treatment against such agents.
            Optical computing device materials for chemical sensors
    The committee recommends $41.1 million in PE 61384BP, an 
increase of $2.0 million to continue the basic research program 
in organic and inorganic optical computing device materials for 
use in standoff sensors for detection and identification of 
chemical agents.
            Chemical/biological regenerative air filtration systems
    The committee recommends an increase of $4.0 million in PE 
62384BP to accelerate the program for applied research in 
chemical/biological regenerative air filtration technology.
            Chemical and biological mass spectrometer
    The committee understands that the Army's Chemical and 
Biological Mass Spectrometer (CBMS II) upgrade project will 
provide the capability to detect and identify chemical and 
biological warfare agents in very low concentrations. The 
committee recommends an increase of $10.0 million in PE 63884BP 
to continue the capability assessment, system optimization, and 
enhanced field-testing the chemical and biological agent mass 
spectrometer upgrade.
            Mobile chemical agent detector
    The committee notes the progress made in the development of 
a mobile chemical agent detector (MCAD) for the Marine Corps' 
Chemical/Biological Incident Response Force (CBIRF) and the 
recent testing of the system. The committee also notes the 
Marine Corps Systems Command's efforts to integrate, test and 
develop concepts for an aerial chemical agent detection system 
for manned and unmanned air platforms in support of the CBIRF 
and strongly recommends that the technology be assessed for 
application to the operational requirements for standoff 
chemical and biological agent detectors for all the military 
services as an integral part of the Defense-wide chemical/
biological defense program.
    The committee recommends an increase of $9.0 million in PE 
63884BP for continued development, demonstration, and 
validation of the MCAD for support of the Marine Corps CBIRF 
and for the other military services.
            Asymmetric protocols for biological defense
    The committee recommends $150.1 million in PE 62383E for 
the DARPA biological defense research program, including $10.0 
million for research, development, and demonstration of 
asymmetric protocols for biological defense with emphasis on 
enhancing individual non-specific immunities to and blocking 
pathogens from biological threat agents.

Complex systems design

    The budget request contained $11.0 million in PE 63704D8Z 
for special technical support, but included no funds for 
complex systems design.
    The committee notes that the effort to develop an 
integrated digital environment for complex systems design has 
progressed significantly and remains ahead of schedule. The 
committee is aware that this development is fundamental to 
improving the acquisition process and minimizing life-cycle 
costs for future systems. The committee further notes that 
manpower, personnel, training, health hazard, human factors, 
andpersonnel survivability (MANPRINT) are among important 
factors to be addressed during the complex design process.
    The committee strongly supports improvements in the 
acquisition process and recommends $21.0 million in PE 
63704D8Z, an increase of $10.0 million for complex systems 
design, and an increase of $2.5 million in PE 65326A for 
MANPRINT activities within complex system design.

Counterproliferation analysis and planning system

    The budget request contained $89.8 million in PE 63160BR 
for advanced development of counterproliferation technologies, 
including $9.0 million for the counterproliferation and 
analysis system (CAPS).
    The CAPS program responds to the need for a comprehensive 
and timely counterproliferation target planning tool to assist 
combatant commanders in the conduct of their contingency plan 
targeting responsibilities and provides a thorough description 
of nuclear, biological, chemical, and means of delivery 
proliferation program in countries of specific concern to the 
combatant commanders. The budget request would complete 
detailed analysis on the first group of countries identified by 
the combatant commanders and begin analysis on the second group 
of countries.
    The committee recommends $92.8 million in PE 63160BR, an 
increase of $3.0 million to the budget request and providing a 
total of $12.0 million for continued development of the CAPS 
program to meet the requirements of the combatant commanders.

Defense imagery and mapping program

    The budget request contained $115.2 million in PE 35102BQ 
for the Defense imagery and mapping program, but included no 
funds for the commercial joint mapping and visualization 
toolkit, or for the geographic synthetic aperture radar 
(GeoSAR).
    The committee is aware that applying commercial technology 
to defense and intelligence applications, has potential to 
reduce costs and while increasing performance. The committee is 
also aware that software commonality also offers many potential 
savings.
    The committee is aware that the airborne GeoSAR is being 
developed to provide a dual band interferometric radar that is 
able to provide the military high resolution, three dimensional 
maps of the earth, above, through, and below the vegetation 
canopy.
    The committee recommends $139.4 million in PE 35102BQ, an 
increase of $15 million for development of a common commercial 
technology-based joint mapping toolkit interface to enhance and 
customize intelligence, navigation and mission planning 
functions, and an increase of $9.2 million for completion of 
GeoSAR development and demonstration.

Distributed common ground station/networking ISR assets

    The budget request included $85.2 million in PE 35208A, 
$131.0 million in PE 63795N, and $11.4 million in PE 35208F for 
continued development of the Services' efforts with respect to 
networking Intelligence Surveillance and Reconnaissance (ISR) 
assets, especially the Distributed Common Ground Station 
(DCGS).
    The committee strongly supports network-centric ISR 
developments that lead to the objective of network-centric 
warfare. The committee believes that a fully networked ISR 
enterprise will allow the more effective use of existing ISR 
platforms and systems, dramatically reducing the time required 
to prosecute time critical targets. The committee believes the 
technologies and techniques pursued under efforts such as the 
Network-Centric Collaborative Targeting (NCCT) initiative, the 
Naval Fires Network (NFN), the Dynamic Time Critical War 
Capability ``5 Minute War,'' and the Command and Control, 
Sensor and Reconnaissance Tasking System (CSMARTS) are some of 
the most critical developments for the Department's 
transformation activities. Each of these initiatives use 
existing platforms to produce a more capable effects-based 
warfighting outcome. Therefore, the committee believes these 
network-centric approaches must be given highest priority.
    The committee recommends that funding requested within the 
foregoing program elements be focused on developing the 
infrastructure for network-centric ISR solutions and 
prototyping these solutions. The committee directs the Service 
Secretaries to provide the congressional defense and 
intelligence committees a report no later that February 1, 2002 
on how each plans to prioritize DCGS developmental efforts on 
network-centric ISR warfare.
    The committee recommends an increase of $25.2 million in PE 
63795N for rapidly transitioning the Naval Fires Network, or a 
similar capability, from an experimental system to a float 
prototype aboard the USS LINCOLN and/or the USS STENNIS. 
Further, the committee recommends $33.9 million in PE 35208F, 
an increase of $22.5 million, for the development and 
deployment of the NCCT functionality in the Air Force's DCGS to 
promote network-centric ISR capabilities for use within the Air 
Operations Center.

Distributed operational testing capabilities

    The committee is concerned that resurgence in acquisition 
spending over the next decade will place unacceptable pressure 
on an already downsized Test & Evaluation infrastructure. The 
committee is aware of the potential of a small investment on 
distributed testing capabilities to significantly increase the 
capacity and responsiveness of Department of Defense major test 
facilities in meeting new demands for operational testing for 
concept development and experimentation, and to ensure 
interoperability, suitability, and effectiveness of deployed 
systems. The committee urges the Secretary of Defense to 
request increased funds in Defense-wide Central Test and 
Evaluation Investment Development (CTEIP) in fiscal year 2003 
for distributed operational test infrastructure. This increase 
in funding should support standards and protocols being 
developed in the Army's Virtual Proving Ground, the Navy's 
Distributed Engineering Plant, and the Joint Synthetic Battle 
Space and Foundation Initiatives 2010.

Electrostatic decontamination system

    The budget request contained $42.2 million in PE 63122D8Z 
for advanced technology development under the interagency 
combating terrorism technology support program.
    The committee notes the progress being made in the 
development and limited evaluation of an initial laboratory 
prototype electrostatic decontamination system that could 
provide an environmentally-safe, non-corrosive, and affordable 
chemical and biological agent decontamination capability for 
the military services.
    The committee recommends an increase of $8.0 million in PE 
63122D8Z to complete advanced technology development of the 
electrostatic decontamination system, including testing against 
chemical and live biological warfare agents, independent 
laboratory confirmation of performance, and delivery of a field 
prototype system for testing and evaluation by Department of 
Defense and interagency users.

Facial recognition technology

    The budget request contained $42.2 million in PE 63122D8Z 
for combating terrorism technology support (CTTS).
    The committee supports aggressive development of advanced 
technology to control access to critical facilities, in 
particular biometric technology such as the principal component 
method of facial recognition.
    The committee recommends an increase of $2.0 million in PE 
63122D8Z for facial recognition.

Funding transfers to support transformation DW

    The committee is concerned that the largest area of growth 
in Defense-wide research and development (R&D) investments, far 
exceeding increases proposed by the military services, has 
occurred in the Defense Threat Reduction Agency and in the 
Defense Advanced Research Project Agency. Several other 
defense-wide programs appear to have excessive management 
funding, non-specific programs, or support fielded system 
development and other mature technologies. Other programs 
included un-forecast increases, apparently excessive management 
funding or unobligated prior year funding. The committee 
believes that the highest priority for R&D investments in 
fiscal year is 2002 to fund activities directly related to 
transformation and future capabilities. Therefore, the 
committee recommends the following decreases to Defense-wide 
accounts, to be transferred to other programs within the 
Services that support transformation and future system 
development:

62301E..................................................     $70,000,000
62302E..................................................       5,000,000
62384BP.................................................      20,000,000
62702E..................................................       9,000,000
62712E..................................................      18,000,000
62715BR.................................................      35,000,000
63285E..................................................      25,000,000
63384BP.................................................      10,000,000
63716D8Z................................................      30,000,000
63739E..................................................       8,000,000
63750D8Z................................................      20,000,000
63755D8Z................................................      20,000,000
63762E..................................................       4,000,000
63765E..................................................       5,000,000
63851D8Z................................................       3,000,000
63923D8Z................................................       3,000,000
65104D8Z................................................       3,000,000
65116D8Z................................................       5,000,000
65124D8Z................................................      10,000,000
64805D8Z................................................      10,805,000
            DARPA ``Exoskeleton Project''
    The committee recommends that $4.0 million of the decrease 
in PE 62712E be assessed against the DARPA exoskeleton project 
for enhancement of soldier physical performance. The committee 
finds the project of questionable value and largely duplicative 
of work done in the 1950s and the 1970s that was subsequently 
discarded because of limited operational utility and adverse 
impact on the human body.

Global infrastructure data conversion initiative & document 
        exploitation

    The committee is aware that the Department of Defense (DOD) 
has a substantial requirement to standardize document 
exploitation material that is resident at various DOD 
departments and agencies. This legacy material, which includes 
foreign languageand analytical reports, is currently in non-
useable form, and needs to be normalized into a formatted database. The 
committee believes the Department should move forward to convert 
sensitive, legacy Document Exploitation (Doc Ex) material into a 
standard useable format, database, and media construct for use within 
the Department.
    In addition, the committee encourages the Department to 
continue with its Global Infrastructure Data Conversion 
initiative, which converts engineering data into a digital form 
to ensure that critical worldwide infrastructure information 
can be utilized by military analysts, mission planners, and 
counterintelligence specialists in support of the warfighter. 
The committee recommends that the Department continue this 
effort, which supports Technology Protection and Counter-
Intelligence communities.

High energy laser research and development

    The committee recognizes the potential of directed energy 
in general, and high energy lasers (HEL) in particular, for 
future military applications across the services. The committee 
is encouraged by the progress shown by the technical community, 
but also understands some of the shortfalls of currently 
proposed concepts, and believes it is necessary to proceed on a 
broad and coordinated front to develop a wide range of 
technologies for weapons applications.
    Accordingly, Subtitle D of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398) included a number of provisions governing the funding, 
organization, management, and oversight of the high energy 
laser programs of the Department of Defense. Among them, 
section 242 directed implementation of the High Energy Laser 
Master Plan establishing a Joint Technology Office (JTO). 
Section 243 directed designation of a single senior civilian 
official in the Office of the Secretary of Defense (the 
``designated official'') with broad authority and 
responsibility for management of high energy laser research. 
Section 248 required an annual report assessing management 
structure, funding, technical progress, and performance. 
Section 250 directed the Secretary of Defense, in consultation 
with the Deputy Undersecretary of Defense for Science and 
Technology, to evaluate the expansion of the HEL management 
structure to encompass directed energy programs based on other 
physics principals.
    In response to section 250 of Public Law 106-398, the 
Deputy Undersecretary of Defense for Science and Technology 
(also the ``designated official'') provided to the 
congressional defense committees the Report of the Directed 
Energy Review Panel, dated March 15, 2001, which recommended 
that HEL JTO not be expanded at this time to encompass directed 
energy programs based on other physics principals, citing 
scarce resources and a potentially detrimental diffusion of 
focus. The Panel also recommended revisiting this issue on a 
regular basis.
    The committee concurs, believing that it is valuable to 
continue to assess the potential of other directed energy 
technologies for military applications as they develop, and to 
reconsider inclusion of those programs in the HEL management 
structure. Therefore, the committee directs the Secretary of 
Defense to revise the Panel's recommendations on an annual 
basis, and include those recommendations in the annual report 
required under section 248 of Public Law 106-398. In addition, 
the committee encourages the ``designated official'' to 
coordinate HEL programs with those overseeing other directed 
energy programs, including the High Power Microwave Steering 
Group.

Implantable cardioverter defibrillator

    The budget request contained no funds in PE 63738D8Z for 
cooperative medical research between the Department of Defense 
and the Department of Veterans Affairs.
    The committee notes that implantation of cardioverter 
defibrillators was pioneered by clinical research in 
conjunction with veterans centers, where trials using the 
defibrillators have reduced cardiac death by a factor of five. 
The committee is aware that additional research is required on 
the efficacy of antiarrhythmic drugs with implantable 
cardioverter defibrillators.
    The committee recommends an increase of $5.0 million and 
directs that it only be used for a joint research program on 
efficacy of antiarrythmic drugs with implantable cardioverter 
defibrillators conducted at the Washington, D.C. Veterans 
Center.

Joint technology applications analysis pilot program

    The budget request contained $33.8 million in PE 65104D8Z 
for technical studies, support, and analysis.
    The committee notes that the National Defense University 
has established a Center for National Security Policy to 
investigate the implications of technological innovation on 
U.S. national security policy and military plans. The committee 
also notes the findings of a recent study conducted by the 
Center for Strategic and International Studies that concluded 
that the Department of Defense can ``no longer depend on a 
dedicated defense industrial base, but will need to find ways 
to link advanced commercial technologies to improved military 
capabilities.'' To meet these goals the President of the 
National Defense University has indicated that the military 
services and defense agencies will need to rely more directly 
on the commercial information technology industry to gain 
prompt access to leading-edge capabilities and has proposed a 
pilot program between the university and the commercial 
information technology industry. The purpose of the program is 
to find practical ways in which the defense information 
technology community can gain a mutual understanding of defense 
needs and industry capabilities and identify opportunities to 
integrate information technology innovations into the U.S. 
military strategy.
    The committee recommends an increase of $1.0 million in PE 
65104D8Z for a pilot program in joint technology applications 
analysis to establish a pilot program to enhance communications 
between the Department of Defense and the information 
technology industry.

Medical free electron laser

    The budget request contained $14.7 million in PE 62227D8Z 
for the medical free electron laser (MFEL).
    The committee is aware that the MFEL program is a peer-
reviewed program that has continued to make significant 
advances in medical applications ranging from painless burn 
debreeding to bone cutting and improved cancer detection.
    The committee supports the MFEL program and recommends 
$19.7 million in PE 62227D8Z, an increase of $5.0 million for 
MFEL.

Microelectromechanical systems (MEMS) sensors

    The budget request contained $240.4 million in PE 61103D8Z 
for university research initiatives.
    The committee notes that the ability to accurately estimate 
temperature, vibration, strain and angular rotation in a 
bearing during the operation of the machine in which the 
bearing is installed would provide the capability for 
identifying inordinate wear, operating anomalies, or impending 
failure of a critical bearing assembly and permit replacement 
of the assembly before the bearing failed or adversely affected 
the performance of the machine. Such a capability in critical 
roller bearing assemblies in aircraft engines, tank 
transmissions, and ship and submarine propulsors should result 
in increased performance, extended life, and reduced life cycle 
maintenance and support costs for the weapon system in which 
the bearing assemblies would be installed. The committee 
believes that roller bearings with integrated sensors that 
incorporate microelectromechanical systems technology have 
great potential for providing such a capability.
    The committee recommends $243.4 million in PE 61103D8Z, an 
increase of $3.0 million for the development of integrated MEMS 
sensors for the determination of temperature, vibration, 
strain, and angular rotation in rolling element bearings.

More efficient science and technology investment

    The committee is aware that defense science & technology 
(S&T) investment is critical to maintaining U.S. military 
superiority. The committee notes that an efficient investment 
strategy, especially in view of the diversity of the technology 
challenges and fiscally constrained S&T funding, should focus 
on those technologies that are identified as critical to 
defense transformation. The committee that S&T originated by 
the Department of Defense must avoid duplication of efforts 
ongoing in the private sector as well as unnecessary 
duplication of effort between government laboratories and 
research centers.
    Therefore, the committee directs the secretaries of the 
military departments to assess their S&T investments in service 
laboratories and research centers, as well as industry and 
academia, to ensure that these investments fully support the 
ongoing transformation of the force. The committee further 
directs the Secretary of Defense to assess/integrate the 
findings of the service secretaries and to report to the 
congressional defense committees upon submission of the 
President's budget, the results of the assessments and how 
investments judged inappropriate have been redirected within 
the S&T programs of the Department of Defense for the budget 
request for fiscal year 2003.

Special operations forces acquisition

    The budget request contained $252.3 million in PE 116444BB 
for SOF acquisition programs, but included no funds for several 
important development efforts. The committee notes that low-
cost solid-state synthetic aperture radar is to be optimized to 
meet special operations requirements for target detection in 
high sea states and high ground clutter environments. The 
committee is also aware of a radar development to automatically 
detect and locate enemy mortar firing positions. Additionally, 
the committee is aware that the Special Operations Command 
(SOCOM) is developing a reconnaissance tool kit to allow 
special operations forces (SOF) to tailor communications and 
other capabilities to specific mission requirements.
    The committee recommends $266.0 million PE 116444BB, an 
increase of $7.5 million for solid-state synthetic aperture 
radar, an increase of $3.0 million for lightweight counter-
mortar radar, and an increase of $3.2 million for the special 
reconnaissance tool kit.

Tactical missile recycling

    The budget request contained $8.8 million in PE 63104D8Z 
for advanced development of explosives demilitarization 
technology.
    The committee notes the development by the Army's Aviation 
and Missile Command of technologies for recycling of tactical 
missiles, including: disassembly, energetics removal, warhead 
processing, energetics size reduction, energetics processing, 
slurry explosive manufacturing, hardware decontamination, and 
shipping and receiving modules. The committee believes that the 
missile recycling capabilities (MRC) efforts should be 
transitioned to establish an organic MRC at an appropriate Army 
depot with a tactical missile disposal and recycling mission.
    The committee recommends $13.8 million in PE 63104D8Z, an 
increase of $5.0 million to support the transition of the 
tactical missile recycling capabilities developed by the Army's 
Aviation and Missile Command to an appropriate Army depot.

Thermobaric warhead development

    The budget request contained $295.1 million in PE 62715BR 
for applied research in nuclear sustainment and 
counterproliferation technologies, including $40.5 million for 
applied research in technologies including thermobaric warheads 
defeat hard targets. The budget request also contained $2.9 
million in PE 63609N for the Navy's insensitive munitions 
advanced development program.
    The committee notes that the Russians developed thermobaric 
materials and have weaponized thermobaric explosive 
formulations that demonstrate impressive capabilities to 
generate pressure and thermal effects much greater than 
conventional high explosives. Parallel work in research and 
development of these materials has been proceeding in the 
United States. Defense Threat Reduction Agency (DTRA) applied 
research for fiscal year 2002 focuses on the development of a 
thermobaric warhead payload that is optimized for hard and 
deeply buried targets and destruction of weapons of mass 
destruction.
    The committee believes that thermobaric warheads offer the 
potential for greater performance and lower cost than 
conventional high explosives while providing a more insensitive 
warhead and therefore a safer option to conventional warheads.
    The committee recommends an increase of $5.0 million in PE 
62715BR in applied research for thermobaric warheads. The 
committee recommends coordination of the DTRA program with the 
Navy's insensitive munitions program.

U.S.-Israel boost phase intercept

    The committee considers boost phase intercept programs to 
be of the highest importance for the protection of the United 
States, our forces overseas, and American allies and friends. 
In previous years, Congress provided funds for a U.S.-Israel 
boost phase intercept study, and in fiscal year 2000, the 
Director of the Ballistic Missile Defense Organization (BMDO) 
reported positively on the technical and operational 
feasibility of a joint U.S.-Israel boost phase intercept 
program utilizing unmanned aerial vehicles to destroy ballistic 
missile launchers following a missile launch. The Director has 
indicated that a decision on whether to fund the U.S. share of 
such a cooperative program with Israel would be made in 
conjunction with preparation of the fiscal year 2003 budget.
    The committee encourages the Department of Defense to 
negotiate an agreement with and undertake a joint-Boost Phase 
Launcher Intercept program with Israel at the earliest possible 
date and to consider other cooperative programs involving sea-
based or space-based programs. The committee believes this 
program and other joint cooperative programs would make an 
important contribution to Israel and the security of American 
forces deployed in the Middle East. It would also enhance 
regional deterrence. The lessons of such a program could be 
applied to other American missile defense efforts.
    The committee also urges the Secretary of Defense to 
examine whether we can include American allies and Russia in 
future joint missile defense programs. This cooperation could 
both enhance protection to our forces overseas and build 
international support and understanding for our ballistic 
missile defense efforts.

Warfighter rapid acquisition programs

    The budget request contained $23.6 million in PE 23761A for 
Rapid Acquisition Program for Transformation (RAPT), $51.3 
million in PE 63640M for Marine Corps Advanced Technology 
Demonstration, $43.3 million in PE 63758N for Navy Warfighting 
Experiments and Demonstrations, $50.2 million in PE 23761F for 
the Warfighter Rapid Acquisition Process (WRAP) rapid 
transition fund, and $25.0 million in PE 63826D8Z for Quick 
Reaction Projects.
    The committee notes the significant funding commitments for 
rapid acquisition programs by the military services and 
strongly supports the efforts of the Secretary of Defense and 
the service secretaries of the military departments to 
accelerate the delivery of new technologies and increased 
capability to the warfighter. Although all of the rapid 
acquisition programs share similar goals of shortening 
acquisition time and rapid fielding of new technologies, the 
committee notes variations in approaches and believes that all 
of the programs should contain several common but essential 
elements. Candidates for rapid acquisition programs should be 
reviewed at the secretariat and service chief level, using 
competitive selection criteria, and assessed on business-based 
analyses including cost savings and impact on current 
acquisition programs, as well as improved capability. If 
selected for transition to acquisition, the services must 
ensure that sufficient funding is programmed to fully develop 
and acquire the selected candidates.
    The committee supports the tremendous potential for cost 
savings and increased capability through the use of the Army 
RAPT and recommends $86.4 million in PE 63001A, an increase of 
$2.5 million and a transfer of $23.6 million from PE 23761A. 
The committee urges the Secretary of the Army to review the 
following projects for consideration as candidates for the Army 
RAPT:
          Hybrid Battery-Fuel Cell
          Joint Service Metrology R&D Support
          Trajectory Optimized High Altitude Targeting (Top 
        Hat)
          Warfighter Advanced Technology Expandable Shelter
    The committee also supports the Marine Corps Advanced 
Technology Demonstration and recommends $72.3 million in PE 
63640M, an increase of $21.0 million. The committee urges the 
Commandant to review the following projects for consideration 
as candidates:
          Fast Refueling System
          Improved Long Range Rifle
          Mobile Counter Fire System
          Modular Ride-Along Air Filter Cleaning System
          Quadrupole Resonance/Landmine Detection
    The committee supports the initiation of the Navy 
Warfighting Experiments and Demonstrations and recommends 
authorization of $85.3 million in PE 63758N, an increase of 
$42.0 million. The committee urges the Secretary of the Navy to 
review the following projects for consideration as candidates 
for the Navy Warfighting Experiments and Demonstrations 
program:
          Air Crane
          Geotrak Positioning Technology
          Interrogator for High-Speed Retro-Reflectometer 
        Communication
          Transportable Anti-Intrusion Pontoon Barrier System 
        (TABS)
          Web Centric ASW Net
    The committee supports the pursuit of cost savings and 
increased capability through the use of the Air Force WRAP 
rapid transition funding and recommends authorization of $74.2 
million in PE 63XXXF, an increase of $24.0 million and a 
transfer of $50.2 million from PE 23761F. The committee urges 
the Secretary of the Air Force to review the following projects 
for consideration as candidates for the Air Force WRAP:
          Imaging and Target Support
          TechSat 21/MicroSat
    The committee believes that each of the service programs 
should conduct reviews of candidate projects using procedures 
defined for the defense-wide Challenge Program outlined in the 
legislative provision Sec. 244 described elsewhere in this 
report. The committee directs the service secretaries to 
provide a report outlining their rapid acquisition candidate 
review process, plan for transition of selected candidates, 
level of leadership represented on the review panel, and plan 
to ensure that sufficient funding is programmed to support 
acquisition. The reports shall be submitted with budget request 
justification materials accompanying the fiscal year 2003 
defense budget request.

                Operational Test and Evaluation, Defense

                                Overview

    The budget request contained $217.4 million for Operational 
Test and Evaluation RDT&E. The committee recommends 
authorization of $217.4 million.
    The committee recommendations for the fiscal year 2002 
Operational Test and Evaluation RDT&E program are identified in 
the table below. Major changes to the Operational Test and 
Evaluation request are discussed following the table.

                         LEGISLATIVE PROVISIONS

              Subtitle A--Authorization of Appropriations

              Section 201--Authorization of Appropriations

    This section would establish RDT&E funding levels for the 
Department of Defense for fiscal year 2002.

           Section 202--Amount for Basic and Applied Research

    This section would establish basic and applied research 
funding levels for the Department of Defense for fiscal year 
2002.

    Subtitle B--Program Requirements, Restrictions, and Limitations

 Section 211--Cooperative Department of Defense-Department of Veterans 
                    Affairs Medical Research Program

    This section would require that of the funds authorized to 
be appropriated by Section 201(4), $5,000,000 shall be 
available only for Cooperative Department of Defense-Department 
of Veterans Affairs medical research program. This section 
would also require the Secretary of Defense to transfer such 
amount to the Secretary of Veterans Affairs for such purposes 
after 30 days of the date of enactment of this Act.

           Section 212--Advanced Land Attack Missile Program

    This provision would direct the Secretary of Defense to 
establish a competitive program for the development of an 
advanced land attack missile (ALAM) for the DD-21 Land Attack 
Destroyer and other naval combatants and would recommend 
authorization of $20.0 million in PE 63795 for that purpose. 
The provision would also direct the Secretary of Defense to 
submit to the congressional defense committees with the fiscal 
year 2003 budget request a report providing the program plan, 
schedule and funding required for the ALAM program.
    The committee notes the letter from the Under Secretary of 
Defense (Acquisition and Technology) to the Chairman, House 
Armed Services Committee, dated August 25, 1999, that endorsed 
the Navy's proposal to acquire the Land Attack Standard Missile 
(LASM) as an interim capability and to develop an ALAM as soon 
as possible. The letter also stated that the Navy would pursue 
a multi-team industry competition for development of ALAM. The 
committee also notes the Milestone 0 Acquisition Decision 
Memorandum, dated February 22, 2000, that designated the ALAM 
as a major defense acquisition program. The committee further 
notes that the Navy's ALAM program plan and funding included in 
the fiscal year 2001 budget request provided for completion of 
an ALAM analysis of alternatives and entry into the program 
risk and reduction phase in fiscal year 2001, competition and 
early prototyping by three to four contractors leading to an 
ALAM down-select/``fly-off'' by the end of fiscal year 2003, 
with delivery of the ALAM system to the fleet in early fiscal 
year 2009.
    In the statement of managers that accompanied the 
conference report on H.R. 4205 (H. Rept. 106-945), the 
conferees placed a high priority on completing the analysis of 
alternatives to determine the appropriate course of action for 
providing Naval fire support and directed the Secretary of the 
Navy to report to the congressional defense committees with the 
submission of the fiscal year 2002 budget request on 
recommended revisions to the ALAM program. The committee is 
concerned that the report has not been received.
    The committee further notes that in April 2002 the 
Comptroller of the Navy executed a below-threshold 
reprogramming which redirected funds authorized and 
appropriated for ALAM and effectively halted the ALAM program.
    The committee believes that in the absence of a program 
review appropriate to a major defense acquisition program the 
Navy's redirection of fiscal year 2001 funding for ALAM and 
failure to request funding to continue the program in the 
fiscal year 2002 budget request contravenes the direction 
previously provided to the Navy and reported to Congress by the 
Under Secretary of Defense (Acquisition, Technology, and 
Logistics) to develop ALAM as soon as possible and pursue a 
multi-team industry competition for that development.

 Section 213--Collaborative Program for Development of Advanced Radar 
                     Systems for Naval Applications

    This section would require the Secretary of Defense to 
carry out a program to develop and demonstrate advanced 
technologies and concepts leading to advanced radar systems for 
naval and other applications. The program would be carried out 
under a memorandum of agreement between the Director of Defense 
Research and Engineering (DDR&E), the Secretary of the Navy, 
and the Director of the Defense Advanced Research Projects 
Agency (DARPA), and would include activities needed to develop 
and deploy advanced electronics materials needed to extend the 
range and sensitivity of naval radars. The joint effort would 
place particular emphasis on the development and maturation of 
high frequency and high power wide bandgap semi-conductor 
materials and devices and the identification of the weapon and 
sensor systems that would use the new technology.
    The committee notes that the Navy's June 2000 report to the 
congressional defense committees on the Surface Navy Radar 
Roadmap identified increased demands on radar performance and 
performance goals to meet the operational requirements expected 
in 2015 and cited advances in wide bandgap semi-conductor 
materials, such as silicon carbide and gallium nitride, that 
would be required to achieve increased range, advanced 
discrimination, and signal processing capabilities needed for 
advanced theater ballistic missile defense radars. The 
committee understands that the March 2001 Technology Assessment 
for the Surface Navy Radar Roadmap concluded that to achieve 
these capabilities in fiscal year 2009 to meet the 2015 
operational capability requires a generational change in high 
power amplifiers, device and array thermal management, digital 
radar, processing algorithms, and processor independent system 
software. The committee notes that advances in wide bandgap 
semi-conductor materials and devices arekey to that technology 
development. The committee also understands that the December 2000 
Special Technology Review on RF Applications for Wide Bandgap 
Technology by the Office of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics recommended an increased science 
and technology investment in wide bandgap materials, devices, circuits, 
and packaging that would total approximately $50 million per year over 
a five-year period beginning in fiscal year 2002.
    The budget request contained $41.0 million in PE 62712E for 
the DARPA applied research program in high frequency wide 
bandgap semiconductor electronics and high power wide bandgap 
semiconductor electronics. The committee understands that the 
budget request contained $5.0 million in PE 61153N and $3.5 
million in PE 62271N for the Navy's applied research program in 
wide bandgap semiconductor technology. The provision would 
authorize $41.0 million for DARPA for research and maturation 
of high frequency and high power wide bandgap semiconductor 
electronics technology to carry out the collaborative program 
established under the memorandum of agreement and $15.5 million 
for the Navy to carry out its responsibilities under the 
memorandum of agreement for the collaborative program, an 
increase of $7.0 million to the budget request.
    Finally, the committee encourages the Director of the 
Ballistic Missile Defense Organization to become a party to the 
memorandum of agreement for the collaborative program and to 
identify the BMDO's contribution to the program in the joint 
report to be submitted to the congressional defense committees 
by January 31, 2002.

                 Subtitle C--Ballistic Missile Defense

  Section 231--Transfer of Responsibility for Procurement for Missile 
    Defense Programs from Ballistic Missile Defense Organization to 
                          Military Departments

    The section would amend section 224 of title 10, United 
States Code to require that the budget submitted to Congress by 
the Department of Defense for research, development, test and 
evaluation (RDT&E) of any Department of Defense missile defense 
program be set forth under the account for Defense-wide RDT&E, 
and within that account, under the sub-account for BMDO.
    This section would further require the Secretary of Defense 
to establish, and submit to Congress, criteria for transferring 
missile defense programs from BMDO to the military departments. 
The criteria would be developed to ensure the viability of the 
program as it passes to the military departments.
    The section would also require the Secretary of Defense to 
notify the congressional defense committees of the Secretary's 
intent to transfer a missile defense program to the military 
departments 60 days in advance of such action.

   Section 232--Repeal of Program Element Requirements for Ballistic 
                        Missile Defense Programs

    This section would strike section 223 of title 10, United 
States Code, which defines the statutory program element 
structure for budget justification materials submitted to 
Congress by the Department of Defense for activities of the 
Ballistic Missile Defense Organization (BMDO).

  Section 233--Support of Ballistic Missile Defense Activities of the 
Department of Defense by the National Laboratories of the Department of 
                                 Energy

    This section would, at the discretion of the director of 
BMDO, make available from funds authorized to be appropriated 
pursuant to section 201(4) up to $25.0 million for research, 
development, and demonstration activities at the national 
laboratories of the Department of Energy (DOE) in support of 
missions of BMDO. The provision would make available to the 
Director of BMDO, acting in consultation with the Administrator 
of the Nuclear National Security Administration (NNSA), the 
resources of the national laboratories of the DOE to address 
critical missile defense needs. The availability of the funds 
would be subject to provision of matching funds by NNSA. 
Activities would be conducted under the terms of a memorandum 
of understanding between the Secretary of Defense and the 
Secretary of Energy for the use of national laboratories for 
ballistic missile defense programs.
    The committee believes that the national laboratories of 
the National Nuclear Security Administration present a largely 
untapped source of experience and expertise relevant to one of 
the nation's highest priorities, ballistic missile defense. The 
committee further believes that activities in support of 
missile defense are consistent with the laboratories' national 
security mission, will not significantly impede the 
laboratories in carrying out their important role of 
guaranteeing the safety, reliability and performance of nuclear 
weapons, and may in fact present new opportunities as the 
strategic stockpile draws down. The committee is disturbed by 
the apparent lack of interest shown by the laboratories in the 
last several years, especially given their unique 
qualifications to address certain aspects of missile defense. 
The committee strongly urges the Departments of Defense and the 
Department of Energy to move beyond the negotiation of 
memoranda, and begin to apply the resources of the national 
laboratories to this great challenge in a meaningful way.

            Section 234--Missile Defense Testing Initiative

    This section would require the Secretary of Defense to 
develop necessary infrastructure and to implement a rigorous 
test regimen for ballistic missile defense programs. This 
section would require testing in as realistic a manner as is 
practicable, taking into consideration the planned operational 
concepts for each system, and continued testing after 
deployment.
    The committee is aware of shortfalls in testing of 
ballistic missile defense systems, including those recently 
expressed by the Director of Operational Test and Evaluation 
and the Panel on Reducing Risk in Ballistic Missile Defense 
Flight Test Programs. The committee is similarly concerned 
about both the realism of the geometry that the current test 
infrastructure can support, as well as the limited range of 
engagement conditions (speed, altitude, crossing angle, etc.) 
accommodated. The committee also believes that test planning 
and infrastructure has not been adequate to support 
operationally realistic testing of the ground-based midcourse 
system, such as engagementof a single target with multiple 
interceptors (``shoot-look-shoot'') or engagement of multiple targets 
with multiple interceptors, nor has it fully exploited opportunities 
for demonstration of interoperability (``family of systems'') concepts. 
The committee notes that much more can, and must, be accomplished prior 
to flight testing, and strongly endorses ground testing at the highest 
level of integration as possible.
    While recognizing the necessity of extensive testing, the 
committee places a high priority on value and believes that 
approaches, such as ``campaign testing'' where multiple tests 
are conducted in rapid succession, can significantly reduce the 
average cost per test, delivering more realistic data for less 
cost. Historically, missile systems have required extensive and 
rigorous testing to ensure performance and reliability, often 
suffering high failure rates initially. Rigorous testing is 
especially crucial in missile defense due to the magnitude of 
the technical challenges and the complexity of the systems 
required to meet those challenges. The committee expects that 
there will be failures in a rigorous test program, and cautions 
against placing great significance on either the success or 
failure of any single event.

        Section 235--Missile Defense System Test Bed Facilities

    This section would clarify section 2353 of title 10, United 
States Code governing the use of Research, Development, Test, 
and Evaluation (RDT&E) funds in fiscal year 2002 for the 
specific purpose of construction of a missile defense test bed. 
This section would authorize the Secretary of Defense to use 
funds made available to the Department of Defense for RDT&E to 
acquire, improve, or construct missile defense system test bed 
facilities that also have general utility. The provision limits 
the total cost of such activities to not more than $500.0 
million. The section would also authorize the use of RDT&E 
funds to mitigate the impact on local community services or 
facilities resulting from the construction or operation of 
missile defense system test bed facilities, provided that the 
Secretary of Defense determines that there is an immediate and 
substantial need as a direct result of such activities.

                       Subtitle D--Other Matters

Section 241--Establishment of Unmanned Aerial Vehicle Joint Operational 
                            Test Bed System

    This section would require the Secretary of the Defense to 
establish of a Joint Forces Command (JFCOM) Unmanned Aerial 
Vehicle (UAV) Joint Operational Test Bed System (JOTBS) and to 
transfer two Predator UAVs, tactical control system (TCS) 
ground station and assorted equipment from the Navy to JFCOM 
within 90 days of enactment of this Act. This section would 
further provide for the transfer of two Predator UAVs from 
JFCOM to the Air Force when no longer required for the JFCOM 
JOTBS.
    The committee notes that the report accompanying the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 
2001 (Public Law 106-398), directed the Secretary of the Navy 
to transfer custody of two Predator unmanned aerial vehicles 
(UAV) and the associated TCS ground station to the Joint Forces 
Command (JFCOM) for use in the joint operational test bed 
system (JOTBS).
    The committee is seriously concerned that the Secretary has 
not carried out this transfer. Therefore, the committee 
recommends a provision (Sec. 241) that would require that this 
transfer be made promptly, and that the Commander-in-Chief, 
JFCOM complete establishment of an independent JOTBS. The 
committee is aware that JFCOM promulgated a JOTBS Strategic 
Plan May 2000 that provides clear direction for such an 
independent test bed.
    The committee observes that Congress established JFCOM 
because the services do not inherently have a joint perspective 
and that joint interoperability of intelligence, reconnaissance 
and surveillance (ISR) and other systems is essential for an 
enhanced future military capability. Therefore, the committee 
believes that in order to be fully successful, the JOTBS must 
be independent of the services.
    The committee further observes that CINC JFCOM's failure to 
complete establishment of the independent JOTBS raises 
questions over the ability of JFCOM to effectively carry out 
its mission in the face of resistance by a service. The 
Predator UAV is an Air Force platform and therefore, when and 
if Joint Forces Command no longer requires the two Predator 
UAVs, the committee directs that custody shall be transferred 
to the Air Force.

   Section 242--Demonstration Project to Increase Small Business and 
University Participation in Office of Naval Research Efforts to Extend 
          Benefits of Science and Technology Research to Fleet

    This section would authorize that the Secretary of the 
Navy, acting through the Chief of Naval Research, to carry out 
a demonstration project to explore ways to increase and expand 
small business and university participation in research efforts 
beneficial to the fleet. This section would require that the 
Secretary establish a Navy Technology Extension Center at a 
location to be selected and would permit participants in the 
Small Business Innovation Research Program (SBIR) and Small 
Business Technology Transfer Program (STTR) that are awarded 
contracts by the Office of Naval Research to access and use 
Navy facilities without charge for the purpose of carrying out 
those contracts. This section would also permit universities, 
institutions of higher learning, and Federally Funded Research 
and Development Centers collaborating with SBIR and STTR 
participants to use Navy facilities.
    The committee notes a number of initiatives to encourage 
small business and university participation in the Department 
of Defense (DOD) program to extend the benefits of research in 
science and technology to the military components. However, the 
committee is concerned that there is no overall program to 
develop a comprehensive science and technology partnership 
between small businesses, universities, and Department of 
Defense research facilities. The committee believes that there 
is much that could be gained by all participants in such 
partnerships, and that the lesson learned in the demonstration 
project might be applied to other DOD research programs to the 
benefit of all the military departments and defense agencies.

 Section 243--Management Responsibility for Navy Mine Countermeasures 
                                Programs

    This section would amend section 216 of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190), and would extend the implementation of 
the Management Responsibility for Navy Mine Countermeasures 
Programs through fiscal year 2008.
    The committee believes that the requirement that the 
Secretary of Defense and the Chairman of the Joint Chiefs of 
Staff provide an annual certification of the adequacy of the 
Navy's mine countermeasures program has had a positive impact 
on the program, increasing the visibility of and attention paid 
to the program by officials in the Department of Defense and 
the Department of the Navy. The committee notes the direction 
contained in the committee report on H.R. 3616 (H. Rept. 105-
532) that the annual certification by the Secretary of Defense 
and the Chairman of the Joint Chiefs of Staff address the 
adequacy of funding for the mine countermeasures program for 
the budget year through the end of the future years defense 
program and also include objective measures against which the 
Navy's progress in enhancing its mine countermeasures 
capabilities can be evaluated.

   Section 244--Program to Accelerate the Introduction of Innovative 
               Technology in Defense Acquisition Programs

    This section would direct the Secretary of Defense to 
establish a program to provide increased opportunities for the 
introduction of innovative technology in acquisition programs 
of the Department of Defense and would provide $40.0 million in 
PE 63826D8Z for the program.
    The committee notes the actions taken by the Department in 
response to section 818 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261) and 
initial improvements in facilitating the rapid transition into 
Defense acquisition programs of technologies developed in 
successful Small Business Innovative Research (SBIR) phase two 
projects. The committee also notes the initial actions taken by 
the Department in response to section 812 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65) with the objective of fostering competition wherever 
possible to create incentives for the development and rapid 
insertion into Defense acquisition programs of technological 
innovations developed by commercial firms, including small 
technology companies.
    This section would place increased emphasis on the program 
for introduction of innovative and cost-saving technology into 
Defense acquisition programs by requiring the Secretary of 
Defense to establish a ``Challenge Program'' to provide 
individuals or activities within or outside the Department of 
Defense the opportunity to propose alternatives (``challenge 
proposals'') at the component, subsystem, or system level of an 
existing Defense acquisition program that would result in 
improvements in the program. This section would also require 
the Secretary to establish a panel of highly qualified 
scientists and engineers to review and evaluate challenge 
proposals and make recommendations to the Under Secretary of 
Defense (Acquisition, Technology, and Logistics) regarding the 
incorporation of the challenge proposal in the challenged 
Defense acquisition program. This section would also require 
that, in the event the panel finds that the challenge proposal 
will result in improvements in performance, affordability, 
manufacturability, or operational capability at the component, 
subsystem, or system level of the challenged acquisition 
program, which are substantially superior to the incumbent 
component, subsystem, or system, the Secretary would carry out 
a plan to acquire and implement the challenge proposal. This 
section would also require the Secretary to ensure the 
elimination of conflicts of interest in carrying out each 
review and evaluation of challenge proposals that are submitted 
to the panel. Finally, the provision would require the 
Secretary to submit a report to Congress on the implementation 
of the ``Defense Challenge'' program.
    The budget request contained $25.0 million in PE 63826D8Z 
for the Quick Reaction Projects initiative. The committee 
recommends $66.0 million in PE63826D8Z, including $40.0 million 
for the Defense Challenge program. The committee believes that 
the introduction of innovative technology into Defense systems 
through the Defense Challenge program and the Quick Reaction 
Projects Initiative possess a tremendous potential for 
achievement of cost-savings and increased operational 
capability for U.S. armed forces. The committee urges the Under 
Secretary of Defense (Acquisition, Technology, and Logistics) 
to review the following projects for consideration as 
candidates for the Quick Reaction Projects and Defense 
Challenge program:
          Microwave Ferrite Components
          Miniature Interceptor Technology
          Pacific Fleet Force Protection Technology Testbed
          Radio Frequency Vulnerability
          ``Spray Cooling'' Optimizing Electronics for Advanced 
        Controlled Environment Systems

                  TITLE III--OPERATION AND MAINTENANCE

                                OVERVIEW

    The budget request for operation and maintenance represents 
an increase of $17.8 billion (38.4 percent) over spending 
levels authorized and appropriated for fiscal year 2001. 
Although the committee is encouraged by this increased level of 
attention to the critical readiness accounts, the committee is 
concerned that savings assumptions presented in the amended 
budget request are unattainable. As an example, of the nearly 
$1.0 billion in savings assumed through the enacting of 
management reforms, $140.0 million is based on a change in the 
operation of the maintenance and repair depots, and $190.0 
million is based on a change to section 276a of title 40, 
United States Code, (46 Stat. 1494) commonly referred to as the 
Davis-Bacon Act. Both of these proposals would require 
legislation that has been historically unsuccessful. The 
committee is troubled by the decision to assume substantial 
savings associated with proposed legislation, prior to Congress 
being afforded an opportunity to debate and enact into law the 
requested proposals. The legislative changes assumed in the 
amended budget request are significant policy changes that need 
complete and thorough debate within Congress. The committee 
believes that these proposed savings initiatives are premature 
and, therefore, recommends an undistributed reduction of $330.0 
million in the operation and maintenance accounts to offset 
these assumed savings. The committee further expects the 
Secretary of Defense to apply this reduction within the 
defense-wide operation and maintenance accounts and not to the 
individual military services.
    The committee understands that a significant portion of the 
proposed increases for operation and maintenance funding is 
related to increased fuel, spare parts, energy costs, along 
with an attempt at arresting the decline in military 
installation infrastructure. In addition, the committee notes 
that even with the increases recommended in the amended budget 
request, the chiefs of the military services reported nearly a 
$10.0 billion shortfall in operation and maintenance funding 
for fiscal year 2002. Despite increased funding, there is no 
significant increase in planned operations by the military 
services in fiscal year 2002. In fact, the Department of the 
Army is decreasing its normal operation tempo for its combat 
vehicles. Although the budget request provided increased 
funding for the historically under-funded real property 
maintenance accounts, this increase merely arrests the decline 
that has occurred over many years. The committee believes that 
the Department of Defense must sustain this offset by devoting 
significant resources over a multi-year program to facility 
sustainment and renovations.
    The committee conducted a series of hearings in an effort 
to obtain a more accurate and detailed assessment of current 
and near-term readiness and to determine to what extent the 
amended budget request supports readiness requirements. As in 
the past recent years, the evidence received during the 
hearings was of an overextended force struggling to maintain 
acceptable readiness levels in an environment of declining 
human and budgetary resources. The committee continues to hear 
significant complaints about lack of spare parts, aging 
equipment, decaying infrastructure, growing equipment and 
facilities' backlogs, and the difficulties of conducting 
quality training and operational deployments with significant 
personnel shortages.
    The committee continues to believe that DOD must continue 
to take steps to reduce costs in non-readiness related 
accounts. At the same time, DOD must provide more aggressive 
oversight of the military departments' proposals to reduce 
costs through contracting out and privatization. The committee 
fully supports well developed and justified programs that will 
reduce costs; but, at a time when readiness shortfalls continue 
to grow, the committee does not believe that poorly developed 
and uncoordinated new programs, or funding for administrative 
and support activities, such as headquarters management, should 
be increasing. As an example, the committee believes the Navy-
Marine Corps Intranet (NMCI) program to be a well-intentioned 
and potentially beneficial program. However, again this year, 
the Department of the Navy has failed to adequately provide the 
committee with the specific funding and budgetary data 
necessary for the committee to provide full approval of this 
program. Consistent with past practice, the committee has 
identified spending that does not directly support military 
readiness and has reprioritized it into other areas.

                       ITEMS OF SPECIAL INTEREST

                       Budget Request Adjustments

    The committee recommends the following adjustments to the 
fiscal year 2002 amended budget request:

Department of the Army Adjustments:s of dollars]
    Automated Identification Technology (AIT/RFID)............     +$9.0
    M-Gators..................................................      +6.6
    Replacement Containers, Fort Drum.........................      +1.0
    Electronic Maintenance and Point to Point Wiring..........      +4.0
    Wage Grade Employees......................................     +4.36
    BA-4 Administration.......................................     -30.0
    BA-4 International Military Headquarters..................     -47.0
    BA-4 Servicewide Transportation...........................     -21.0
    BA-4 Servicewide Communications...........................     -12.6
    BA-4 Manpower Management..................................      -6.4
    BA-4 Other Servicewide Support............................     -11.8
    BA-4 Base Operations Support..............................     -19.2
    Reduction in Strategic Sourcing (A-76 Studies)............     -8.36
    Advisory and Assistance Services..........................     -25.0
    Information Technology Automated Information System.......     -20.0
    Army Reserve Controlled Humidity Preservation.............     +25.0
    Army Reserve Cold Weather Clothing (ECWCS)................      +2.0
    Army National Guard Cold Weather Clothing (ECWCS).........      +6.0
    Army National Guard Special Training......................      +2.0
Department of the Navy Adjustments:
    BA-3 Depot Apprenticeship Program.........................      +2.0
    Wage Grade Employees......................................     +3.56
    ATC Corrosion Control.....................................      +2.0
    BA-4 Administration.......................................     -40.0
    BA-4 Acquisition and Program Management...................     -43.0
    BA-4 Planning, Engineering and Design.....................      -6.6
    Reduction in Strategic Sourcing (A-76 Studies)............    -53.56
    NMCI Reduction............................................    -125.0
    Information Technology Center.............................     -35.0
    Enterprise Resource Planning..............................     -33.0
    Advisory and Assistance Services..........................     -25.0
    Information Technology Automated Information System.......     -20.0
    USMC Full Spectrum Battle Equipment.......................       6.8
    USMC Reduction in Strategic sourcing (A-76)...............      -1.0
Department of the Air Force Adjustments:
    SPARES Information System.................................      +7.0
    Aging Propulsion Systems Life Extension...................     +10.0
    SCOT Life Support System..................................      +6.0
    Wage Grade Employees......................................     +4.32
    BA-4 Administration.......................................     -53.0
    BA-4 Servicewide Communications...........................     -40.0
    BA-4 Servicewide Transportation...........................     -41.0
    BA-4 Other Servicewide Activities.........................     -11.4
    BA-4 Security Programs....................................     -62.9
    BA-4 Personnel Programs...................................     -18.0
    BA-4 International Support................................      -8.0
    Military Personnel Underexecution Support.................     -75.0
    Reduction in Strategic Sourcing (A-76 Studies)............     -8.32
    Advisory and Assistance Services..........................     -25.0
    Information Technology Automated Information System.......     -20.0
    Air Force Reserve Military Personnel Underexecution.......     -12.0
    Air National Guard, Continued B-1B Operations.............    +100.0
Office, Secretary of Defense Adjustments:
    Impact Aid................................................     +30.0
    Legacy Program............................................      +2.0
    Wage Grade Employees......................................     +1.26
    OSD Program Growth........................................     -19.4
Defense-wide Activities Adjustments:
    Washington Headquarters Service...........................     -44.0
    Defense Human Resources Activity..........................     -24.0
    Defense Contract Audit Agency.............................      -7.4
    Defense Contract Management Agency........................      -6.9
    Defense Information Systems Agency........................     -41.0
    Defense Logistics Agency..................................      -3.5
    Commercial Technology for Maint. Activities (CTMA)........     +20.0
    Defense Security Cooperation Agency.......................      -7.1
    Defense Threat Reduction Agency...........................      -4.9
    BA-4 Joint Chiefs of Staff................................      -9.5
    Information Technology Automated Information System.......     -20.0
    Reductions in Strategic Sourcing (A-76 Studies)...........     -5.26
    Advisory and Assistance Services..........................     -25.0
    Unrealized Savings........................................    -330.0

                    Advisory and Assistance Services

    The committee continues to believe that funding for 
Advisory and Assistance Services is in excess of the needs of 
the Department of Defense. Therefore, the committee recommends 
the following decreases for this function:

                        [In millions of dollars]

Army..........................................................     $25.0
Navy..........................................................      25.0
Air Force.....................................................      25.0
Defense Agencies..............................................      25.0

                  Excess Foreign Currencies Reductions

    Since the submission of the budget request, the U.S. dollar 
has increased in value compared to various foreign currencies. 
As a result, the committee believes that the budget request is 
overstated. Therefore, the committee recommends a reduction in 
this account of $104.8 million to be apportioned to the 
military services by the Department of Defense.

                       Strategic Sourcing (A-76)

    The committee has expressed for several years concerns over 
the process by which government positions are analyzed for 
possible conversion to a contractor position pursuant to Office 
of Management and Budget Circular A-76. One concern with the 
process is the cost of the studies. The Secretary of Defense 
recommended that an additional 3,200 positions be studied in 
fiscal year 2002 over that which the services planned to study. 
The Department provided to the defense agencies and military 
services $16 million or $5,000 for each position to be studied. 
The committee does not believe it is appropriate to increase 
the number of positions to be studied. The committee, 
therefore, recommends those additional 3,200 positions not be 
studied and the funding for these studies be reduced. In 
addition, in light of the Department's belief that for each 
position to be studied the services and agencies require 
$5,000, the committee is reducing the number of positions the 
Department of Army and Department of Air Force can study to 
reflect the funding the services requested to conduct A-76 
studies. The number of positions that can be studied in the 
Department of Navy and by defense agencies is limited to the 
number of positions identified to be studied in the 
Department's program budget decision. The committee recommends 
the following reductions due to reduced A-76 studies:

                        [In millions of dollars]

Army..........................................................     $8.36
Navy..........................................................     53.56
Air Force.....................................................      8.32
Marine Corps..................................................       1.0
Defense Activities............................................      5.26

                    Other Items of Special Interest

                    Corrosion Prevention and Control

    The committee understands recent Department of Defense 
(DOD) studies reveal that corrosion prevention costs roughly 
$10 billion per year. As an example, the Army's Tank and 
Automotive Command found that corrosion damage annually costs 
$850 per truck. The committee is concerned that the cost of 
damage caused by corrosion to the department's vehicle fleet 
and facilities needs to be significantly reduced or the 
military services will continue to shoulder an unneeded 
economic burden, which will adversely affect readiness and 
equipment availability and reliability.
    The committee continues to monitor with interest the 
efforts within the military services to reduce the related 
costs to control corrosion, and is particularly encouraged by 
the recent increased emphasis on finding ways to cut the cost 
of maintaining their massive amounts of equipment, facilities 
and infrastructure. The committee is concerned, however, that 
the efforts within DOD continues to be disjointed and it 
appears there is no office within DOD solely responsible to 
collect, review, validate, and distribute information on proven 
corrosion prevention methods and products. The absence of 
leadership on this issue means that no single comprehensive 
plan exists and adequate program management and funding 
specifically for the eradication of the problems associated 
with corrosion is not planned in future budgeting. Moreover, 
decisions concerning corrosion prevention and control are left 
to unit commanders, or more likely, to service maintenance 
personnel. The committee believes that the military services 
are in need of programmatic and technical leadership if DOD is 
to reduce its corrosion related costs and the resultant adverse 
impact on readiness.
    The committee is aware of many existing efforts within 
private industry to perfect products and methods to be used to 
successfully fight corrosion and infrastructure degradation. 
The committee is particularly interested in the unique 
capabilities of Ambient Temperature Cure (ATC) glass coating. 
These coatings cost little to produce and apply, are 
environmentally safe, have the potential for enormous savings 
in cost avoidance in both energy savings and infrastructure 
degradation, and are particularly beneficial to those units 
that must perform their assigned missions in a heavy salt 
environment on or near the sea.
    The committee believes that DOD should do more to take 
advantage of new technologies, such as ATC, and recommends an 
increase of $2.0 million for the Department of the Navy to a 
conduct pilot project at Naval Air Station, Jacksonville, 
Florida utilizing ATC technology. In addition, the committee 
strongly urges the Secretary of Defense to establish a single 
office within DOD to coordinate corrosion prevention and 
control issues with the military services and with the overall 
responsibility to develop and execute a department wide action 
plan for how to combat corrosion.

                          Information Systems

    The committee continues to be concerned with the control 
and oversight the chief information officers (CIOs) of the 
Department of Defense and the military services are exercising 
over development and fielding of information systems. The 
committee believes that CIOs must exercise their authority and 
promote and endorse joint and interoperable systems that meet 
validated requirements, but also limit or haltdevelopment of 
systems that do not comply with the requirements of section 811 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106-398). For example, the committee is concerned that each 
of the services are developing their own version of the Global Command 
Support System (GCSS). The committee is equally concerned with the 
Defense Integrated Military Human Resources System, which has received 
almost $200 million in funding, yet the requirements for this system 
are still being developed without even an initial fielding of a system.
    Therefore, the committee recommends a reduction in funding 
for information systems as follows:

                        [In millions of dollars]

Army..........................................................     $20.0
Navy..........................................................      20.0
Air Force.....................................................      20.0
Defense Agencies..............................................      20.0

                      Enterprise Resource Planning

    The committee believes that enterprise resource planning 
could be a valuable tool to the Department of the Navy. 
Unfortunately, despite repeated requests by the committee, the 
Navy did not provide the committee with the basic information 
required to support this initiative. Therefore, the committee 
recommends a reduction of $33.0 million in the Navy account.

                          Environmental Issues

                  Environmental Restoration Activities

    For the sustainable future use of land that contains 
unexploded ordnance (UXO) and discarded military equipment that 
has aged, there must be proper site planning, investigation, 
cleanup, and finally site closeout. The committee recognizes 
this can be a complex process with difficult technical 
challenges. Yet, the committee is concerned with the Department 
of Defense's (DOD) slow pace of progress and level of effort 
toward restoring and preserving property on Guam, and other 
areas, where extensive military activities occurred during the 
various phases of World War II. The committee strongly 
encourages DOD to be more aggressive in the management and 
clearance of UXOs and other DOD-related weaponry at former 
military sites, especially in Guam.

                     Vernon Hills NIKE Missile Site

    The committee is concerned with reports of toxic 
contamination at a former NIKE missile battery site located in 
Vernon Hills, Illinois. The committee understands that the 
Department of the Navy is transferring ownership of the land to 
the Village of Vernon Hills where the land will be used to 
provide recreation and athletic facilities, a veterans' 
memorial, and a storm water retention area. The committee 
recommends that the Secretary of the Navy review the current 
land transfer plan and ensure that remediation is completed in 
accordance with all applicable federal and state laws.

                 Morale, Welfare, and Recreation Issues

                        Access to Slot Machines

    The committee understands that the Secretary of Defense is 
preparing the report on the impact of slot machines on military 
communities overseas required by section 336 of the National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398). The committee intends to review the report carefully and 
take appropriate action based on the information provided. In 
the interim, the committee is disturbed to learn of several 
instances in Germany and Italy where unmonitored slot machines 
are easily accessible by children. The committee found one case 
where slot machines were placed in an unobserved hallway in a 
club located in a military housing area and another instance 
where several slot machines were located in a snack bar where 
military high school students ate lunch. The committee does not 
need the forthcoming report to determine that slot machines 
should not be accessible by children. The committee therefore 
directs the Secretary of Defense to review the locations at 
which slot machines are installed and ensure that no machines 
are accessible by minors.

             Military Exchange Private Label Manufacturers

    The committee believes that the three military exchange 
systems perform a vital mission in bringing an array of 
products and services to military members and their families 
serving throughout the world. Part of that mission is providing 
a touch of home, and is represented by the many brand name 
products sold by military exchanges. Another part of that 
mission is savings, which are provided to some degree by 
private label goods sold by the exchanges. Private label 
programs are increasing, with Army and Air Force Exchange 
private label goods manufactured in some 70 factories located 
in 18 countries and with sales approaching $50.0 million 
annually. The committee is concerned that the exchanges have no 
knowledge of worker conditions at these widespread factories. 
While the committee understands that no national standard 
exists under which worker conditions at these factories may be 
judged, the committee believes that the exchanges should at 
minimum be able to assure its patrons that none of its products 
are manufactured with child or forced labor. The committee also 
does not wish the exchanges to lag behind the generally 
accepted practices of responsible domestic retailers. The 
committee believes that the exchanges may rely upon the 
manufacturers of brand name products to monitor the production 
of their own goods, but believes the exchanges should have 
visibility of the conditions under which their private label 
goods are produced. Accordingly, the committee directs the 
Secretary of Defense to ensure the military exchanges implement 
a program that assures that private label exchange merchandise 
is not produced by child or forced labor.

                              Other Issues

         Army's Capital Investment Program for Depot Facilities

    The committee is pleased with the Army's initiative to 
increase funds for the sustainment, restoration, and 
modernization of its facilities. The committee is also pleased 
with the Army's Capital Investment Program for its depot 
facilities. The committee directs the Secretary of the Army to 
submit a comprehensive plan for implementing the Army's Capital 
Investment Program to the House Committee on Armed Services and 
the Senate Committee on Armed Services by March 1, 2002. The 
plan should include the following:
          (1) The core logistics capabilities, competencies, 
        and components necessary for current and future weapons 
        systems;
          (2) The current state of existing facilities and 
        equipment; and
          (3) A capital needs plan to upgrade the depots to 
        meet current and future core requirements, continue 
        technology infusion in the production process, and an 
        estimate of the total investment costs required to 
        implement the plan.

                  Army Workload and Performance System

    The committee has consistently endorsed the Army Workload 
and Performance System (AWPS) as an initiative to correct 
systemic problems in the Army's manpower requirements 
determination process. The committee remains concerned that 
AWPS system requirements, which would allow command-level cost 
management capabilities, have not been achieved. The committee 
also notes with concern that the installation of the AWPS 
Decision Support System--which would allow Army management to 
evaluate the efficiency of its maintenance depots, the actual 
cost of depot-level repair, and develop a best-value 
determination model to examine the economics of depot versus 
private-sector repair--is two years behind schedule. Therefore, 
the committee directs the Secretary of the Army not to 
reallocate depot maintenance workload from the public to the 
private sector until the Army has achieved full implementation 
of the Army Workload and Performance System in the depots as 
detailed in the AWPS Master Plan dated June 8, 2001. This 
restriction on workload allocation would remain in place until 
the Secretary of the Army certifies to Congress that the Army 
Workload and Performance System is fully implemented in the 
depots and the General Accounting Office has reviewed the 
certification.

              Automated Document Conversion System Program

    The committee understands that the Department of Defense 
(DOD) has a continuing requirement for data capture and 
conversion support for its weapons systems and logistics 
databases, and the Automated Document Conversion System (ADCS) 
effort in fiscal year 2002 will collect, digitize and 
electronically warehouse systems engineering data, technical 
manuals, and acquisition information, that will allow the 
warfighter to request weapon's systems support and logistics 
services on a near real-time basis. This program supports the 
efforts to bring the DOD into a paperless environment by the 
end of fiscal year 2002. Further, the digitizing of logistics 
data supports a CJCS requirement to improve logistics services 
necessary to deploy forces quickly.

                     Automatic Inventory Technology

    The committee recognizes the long-standing and continuous 
issue of inventory control within the Department of Defense, 
and that the Department of the Army has made significant 
strides in controlling ammunition inventories using Automatic 
Inventory Technology/Radio Frequency Identification (AIT/RFID) 
for ammunition. Further, the recent test and evaluation of the 
AIT/RFID for Maintenance conducted at Corpus Christi Army 
Aviation Depot, Texas, demonstrated the real time capability of 
the system for locating parts and components in a production 
line environment, thereby, significantly reducing down time for 
major combat equipment during the recapitalization process. The 
results of the Corpus Christi pilot program concluded that 
using Maintenance AIT/RFID equipment significantly enhanced 
productivity within the depot. The committee strongly believes 
that the Department of the Army should increase the utilization 
of AIT/RFID to provide this capability for other Army 
maintenance depots and recommends an increase of $9.0 million 
for this purpose.

           Commercial Technologies for Maintenance Activities

    The committee continues to believe that the Commercial 
Technologies for Maintenance Activities (CTMA) program, created 
by the Department of Defense (DOD) in 1998 to bring the most 
modern and advanced manufacturing capabilities from commercial 
industry to depot and related maintenance activities, is 
valuable as a technology resource which will have a positive 
effect on the efficiency and effectiveness of the Department's 
industrial activities. The CTMA program is a by-product of 
section 361 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) that required DOD to re-
engineer industrial processes and adopt best-business practices 
at their depot-level activities. Therefore, the committee 
recommends the addition of $20.0 million for the Defense 
Logistics Agency to pursue strategies for re-engineering at 
depot-level activities that will lower operations and 
sustainment costs. The committee believes the addition of these 
funds will allow depot-level activities to participate in 
manufacturing technology demonstration projects in 
collaboration with more than 220 of the leading U.S. 
manufacturers.

                Distance Learning Implementation Program

    The committee remains concerned that insufficient resources 
are being applied to exploit the potential that distance 
learning technology offers to enhance training and readiness. 
There is wide acceptance that distance learning technologies 
have the potential to deliver training to military members and 
support the delivery of ``learner centric'' quality training 
when and where the training is needed. More importantly, 
distance learning improves readiness by providing greater 
access to military training and education at a lower cost. The 
committee is aware of the initiatives under consideration in 
the Army's Total Army Distance Learning Program (TADLP) and the 
National Guard Distributive Training Technology Program (DTTP). 
However, the resources presently allocated for these programs 
are not sufficient to meet future needs in a responsivemanner. 
The committee anticipates that the Department of the Army will use 
funds authorized for distance learning to develop a comprehensive and 
executable implementation plan that will more expeditiously exploit 
distance learning technologies. The committee believes that a high 
priority should be given to those programs focused on enhancing 
training and development in the reserve components, especially in the 
National Guard.

                Hunter Tactical Unmanned Aerial Vehicle

    The committee believes that the Hunter Tactical Unmanned 
Aerial Vehicle (TUAV) system has demonstrated that it is 
effective and reliable in supporting Army and joint combat 
operations, warfighter exercises, and unmanned aerial vehicle 
tactics, techniques and procedures development. The committee 
also noted that user demands on the Hunter system exceed 
current availability and are expected to grow. Therefore, the 
committee strongly urges that the Army maintain the Hunter 
system in an operational status by continuing to adequately 
fund the system until a replacement which meets the Army TUAV 
objective requirements is available.

                       Navy-Marine Corps Intranet

    This section would permanently exclude the Marine Corps 
from the Navy's initiative known as the Navy-Marine Corps 
Internet (NMCI). This section would also continue the exclusion 
of the shipyards and naval aviation depots from the NMCI in 
fiscal year 2002.
    The committee continues to support the Department of the 
Navy's intention to use a cohesive and coordinated computer 
network and supports initiatives that promote interoperability, 
as well as effective and efficient communications. The 
Department of the Navy has presumed and budgeted large savings 
with the implementation of NMCI, which the committee believes 
cannot be achieved and puts this program at risk. The committee 
continues to receive conflicting, vague, and unsupportable 
funding data on this program. In addition, despite repeated 
requests, the Department of the Navy has failed to provide 
funding information relating to depots. In light of these 
concerns the committee directs the Secretary of Defense to 
analyze NMCI funding documents with particular focus on the 
savings the Navy anticipates, and to include an analysis of 
whether those savings have been achieved or are achievable. The 
results of this review shall be provided to the Secretary of 
the Navy along with the analysis required by section 814 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106-398).

                      Non-nuclear Ship Maintenance

    The committee understands that the Department of the Navy 
maintains a policy that large non-nuclear ship maintenance on 
the west coast of the United States is assigned primarily to 
non-nuclear capable private shipyards in an effort to reduce 
the overall cost for ship maintenance. This policy enables the 
Navy to focus its nuclear ship repair requirements in its 
nuclear capable shipyards with a specially trained and 
experienced workforce. The committee also understands that the 
Department of the Navy does not apply this policy to the 
assignment of ship maintenance on the east coast of the United 
States. Although it may be necessary to occasionally balance 
ship maintenance requirements in nuclear capable Naval 
shipyards by the assignment of non-nuclear ship maintenance, 
the committee questions whether the increased cost of this work 
is fully justified. Therefore, the committee directs the 
Secretary of the Navy to apply the west coast non-nuclear ship 
maintenance policy to the east coast, or provide the House 
Committee on Armed Services and the Senate Committee on Armed 
Services by January 31, 2002, with a report specifying why this 
policy cannot be implemented.

                         LEGISLATIVE PROVISIONS

              Subtitle A--Authorization of Appropriations

             Section 301--Operation and Maintenance Funding

    This section would authorize $124,024.0 million in 
operations and maintenance funding for the Armed Forces and 
other activities and agencies of the Department of Defense.

                   Section 302--Working Capital Funds

    This section would authorize $2,359.7 million for Working 
Capital Funds of the Department of Defense.

               Section 303--Armed Forces Retirement Home

    This section would authorize $71.44 million from the Armed 
Forces Retirement Trust Fund for the operation of the Armed 
Forces Retirement Home, including the U.S. Soldiers' and 
Airmen's Home and the Naval Home.

 Section 304--Transfer from National Defense Stockpile Transaction Fund

    This section would authorize the Secretary of Defense to 
transfer not more than $150.0 million from the amounts received 
from sales in the National Defense Stockpile Transaction Fund 
to the operation and maintenance accounts of the military 
services.

                  Subtitle B--Environmental Provisions

   Section 311--Inventory of Explosive Risk Sites at Former Military 
                                 Ranges

    This section would require the Secretary of Defense to 
develop and maintain an inventory of current and former 
military ranges that are known or suspected to contain 
abandoned military munitions.

            Section 312--National Security Impact Statements

    This section would require the Secretary of Defense to 
examine the impact a proposed action could have on national 
security when the Secretary is required to conduct an 
environment impact statement (EIS), environmental assessment 
(EA), or to comment on EIS or EA developed by another federal 
agency.

Section 313--Reimbursement for Certain Costs in Connection with Hooper 
                    Sands Site, South Berwick, Maine

    This section would authorize the Secretary of the Navy to 
reimburse the Environmental Protection Agency approximately 
$1.0 million for the cleanup of a former Navy facility in South 
Berwick, Maine.

                 Section 314--River Mitigation Studies

    This section would authorize the Secretary of Defense to 
conduct studies of the Sabine River and the Delaware River in 
order to identify the level of effort and funding necessary to 
remove debris left in the rivers from the shipbuilding 
industry.

 Section 315--Elimination of Annual Report on Contractor Reimbursement 
              for Costs of Environmental Response Actions

    This section would eliminate the requirement for an annual 
report on payments the Secretary of Defense made to contractors 
for costs of environmental response actions.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

           Section 321--Reserve Component Commissary Benefits

    This section would authorize immediate eligibility for 
commissary benefits for members of the reserve components. 
Currently, reserve members are not eligible to shop in 
commissaries until they have served a year in a reserve unit. 
The committee believes that in light of the reserve components' 
increased participation in all manner of military operations, 
reserve members should be entitled to commissary benefits upon 
entry into reserve service.

    Section 322--Reimbursement for Noncommissary Use of Commissary 
                               Facilities

    This section would amend section 2685 of title 10, United 
States Code, to require the secretary of a military department 
to reimburse the commissary surcharge account for the residual 
value of any commissary facility constructed in whole or in 
part with commissary surcharge funds when that facility is 
converted to military use. Since commissary surcharge funds are 
generated by patron purchases, the committee believes that 
capital assets purchased with those funds properly belong to 
the patrons and not to the military departments.

 Section 323--Civil Recovery for Nonappropriated Fund Instrumentality 
                      Costs Related to Shoplifting

    This section would authorize the military exchanges to 
pursue federal debt collection remedies against shoplifters in 
the military exchange stores. The exchanges currently have no 
effective means to recover the cost of shoplifting and security 
expenses, amounting to more than $25.0 million annually. This 
section would provide a mechanism outside formal judicial 
proceedings that would permit the exchanges to recover some 
shoplifting losses.

                 Subtitle D--Workforce and Depot Issues

     Section 331--Fiscal Year 2002 Limitations on Workforce Reviews

    This section would limit the number of full time 
equivalents that can be studied for possible conversion from 
the government workforce to the contractor workforce. The 
committee is increasingly concerned with the outsourcing 
process and believes the agencies and services have not 
properly funded or properly trained personnel involved in the 
effort needed to conduct a proper analysis. The committee does 
not support the Department's initiative to study an additional 
3,200 full time equivalents for possible outsourcing in fiscal 
year 2002. In addition, the committee does not support the 
agencies and the services initiating more studies than are 
properly funded.

Section 332--Applicability of Core Logistics Capability Requirements to 
                       Nuclear Aircraft Carriers

    This section would amend section 2464 of title 10, United 
States Code, to clarify that the exclusion from maintaining 
core logistics capabilities for nuclear aircraft carriers, as 
specified in section 2464, is meant solely for the process of 
refueling nuclear aircraft carriers. This section is necessary 
to clarify that nuclear aircraft carriers are to maintain the 
same core logistics capabilities as all other ships of the 
United States Navy.

 Section 333--Continuation of Contractor Manpower Reporting System in 
                         Department of the Army

    This section would amend section 343 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65) to require the Secretary of the Army to report annually on 
the size of the contractor workforce. The section would also 
require the Comptroller General of the U.S. to provide Congress 
with an evaluation of each report submitted by the Secretary of 
the Army.

      Section 334--Limitation on Expansion of Wholesale Logistics 
                         Modernization Program

    This section would prohibit the Secretary of the Army from 
expanding the Wholesale Logistics Modernization Program beyond 
the original legacy systems included in the scope of the 
contract awarded in December 1999 until the Secretary of the 
Armycertifies to Congress that the original legacy systems have 
been successfully replaced. The section would also require the General 
Accounting Office to provide Congress with an evaluation of the 
certification provided by the Secretary of the Army.

 Section 335--Pilot Project for Exclusion of Certain Expenditures from 
  Limitation on Private Sector Performance of Depot-Level Maintenance

    This section would amend section 2474 of title 10, United 
States Code, to authorize a pilot project, applicable only to 
three Air Force depots, that would exclude work performed in a 
public depot under a public-private partnership from the 
restrictions on private sector work established by that 
section.

   Section 336--Protections for Purchasers of Articles and Services 
    Manufactured or Performed by Working-Capital Funded Industrial 
                Facilities of the Department of Defense

    This section would amend section 2563 of title 10, United 
States Code to permit a private sector entity that has 
contracted with the public sector in a working-capital funded 
activity of the Department of Defense, to file a claim if the 
public sector fails to comply with quality, schedule, or cost 
performances required in the contract. This section would also 
apply to section 2474 of title 10, United States Code.

                Subtitle E--Defense Dependents Education

  Section 341--Assistance to Local Educational Agencies that Benefit 
  Dependents of Members of the Armed Forces and Department of Defense 
                           Civilian Employees

    This section would authorize $30.0 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.

Section 342--Availability of Auxiliary Services of Defense Dependents' 
      Education System for Dependents Who Are Home School Students

    This section would require the Department of Defense (DOD) 
to provide support for home-schooled students overseas who are 
otherwise eligible to attend DOD schools. This support would 
include participation in extracurricular activities such as 
sports teams, clubs, and music programs, as well as attendance 
in individual academic classes.

  Section 343--Report Regarding Compensation for Teachers Employed in 
 Teaching Positions in Overseas Schools Operated by the Department of 
                                Defense

    This section would require the Secretary of Defense to 
evaluate the method by which compensation is fixed for teachers 
employed by Department of Defense overseas schools. Section 903 
of title 20, United States Code, requires that these salaries 
be based on the average range of salaries paid for similar 
positions in large urban school systems. This section would 
require the Secretary to report to Congress on the results of 
his evaluation and would also require him to recommend whether 
this compensation should be based upon the average range of 
salaries paid for similar positions by Washington, D.C., area 
school systems.

                       Subtitle F--Other Matters

   Section 351--Availability of Excess Defense Personal Property to 
 Support Department of Veterans Affairs Initiative to Assist Homeless 
                                Veterans

    This section would permit the Secretary of Defense to make 
excess clothing, shoes, sleeping bags, and related non-lethal 
excess supplies available, without reimbursement, to the 
Secretary of Veterans Affairs for distribution to homeless 
veterans and programs assisting homeless veterans.

  Section 352--Continuation of Limitations on Implementation of Navy-
                     Marine Corps Intranet Contract

    This section would exclude the Marine Corps from the Navy's 
initiative known as the Navy-Marine Corps Intranet. This 
section would also continue the exclusion of the shipyards and 
naval aviation depots from the Navy Marine Corps Intranet in 
fiscal year 2002.

    Section 353--Completion and Evaluation of Current Demonstration 
 Programs to Improve Quality of Personal Property Shipments of Members

    This section would require the Secretary of Defense to 
complete all demonstration programs in the Department of 
Defense that were designed to improve the movement of household 
goods of members of the Armed Forces that were being conducted 
on or after October 1, 2000. The section would also require the 
Secretary of Defense to submit to Congress an evaluation not 
later than August 31, 2002.

    Section 354--Expansion of Entities Eligible for Loan, Gift, and 
   Exchange of Documents, Historical Artifacts, and Obsolete Combat 
                                Materiel

    This section would authorize the exchange of defense relics 
to a greater number of local authorities.

                 Subtitle G--Service Contracting Reform

                        Section 361--Short Title

    This section would identify this subtitle as the 
``Department of Defense Service Contracting Reform Act of 
2001''.

  Section 362--Required Cost Savings Level for Change of Function to 
                         Contractor Performance

    This section would amend section 2461 of title 10, United 
States Code, to require that a contractor's cost must be at 
least 10 percent less expensive than the federal government's 
most efficient organization to be successful in a public/
private competition under Office of Management and Budget 
Circular A-76.

 Section 363--Applicability of Study and Reporting Requirements to New 
                Commercial or Industrial Type Functions

    This section would require the Secretary of Defense to 
conduct an A-76 study for each new function the Department of 
Defense intends to establish in order to determine whether the 
function should be performed by a government employee or a 
contractor employee.

           Section 364--Repeal of Waiver for Small Functions

    This section would repeal section 2461 of title 10, United 
States Code that currently waives the applicability of Office 
of Management and Budget Circular A-76 or functions with 50 
employees or less.

   Section 365--Requirement for Equity in Public-Private Competitions

    This section would require that for each government held 
position studied under Office of Management and Budget Circular 
A-76, approximately the same number of contractor held 
positions must also be studied for possible conversion to the 
public sector.

 Section 366--Reporting Requirements Regarding Department of Defense's 
                      Service Contractor Workforce

    This section would require Department of Defense (DOD) 
contractors and subcontractors to report to a secure DOD 
website, direct and indirect man-hour cost information, and 
would require the Secretary of Defense and the military 
secretaries to submit to Congress a report on the cost 
information data collected. The section would also require the 
Comptroller General of the United States to review this data. 
This section would require the Secretary of Defense and the 
secretaries of the military departments to publish for the 
public the non-proprietary data from these reports.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                         LEGISLATIVE PROVISIONS

                       Subtitle A--Active Forces

              Section 401--End Strengths for Active Forces

    This section would authorize the following end strengths 
for active duty personnel of the armed forces as of September 
30, 2002.

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2002                   Change from
                                                FY 2001   ------------------------------------------------------
                   Service                     authorized                  Committee      FY 2002      FY 2001
                                               and floor     Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army........................................      480,000      480,000        480,000             0            0
Navy........................................      372,642      376,000        376,000             0        3,358
USMC........................................      172,600      172,600        172,600             0            0
Air Force...................................      357,000      358,800        358,800             0        1,800
                                             -------------------------------------------------------------------
      DOD Total.............................    1,382,242    1,387,400      1,387,400             0        5,158
----------------------------------------------------------------------------------------------------------------

     Section 402--Revision in Permanent End Strength Minimum Levels

    This section would amend section 691 of title 10, United 
States Code, by establishing end strength floors for the active 
forces at the end strengths contained in the budget request.

                       Subtitle B--Reserve Forces

            Section 411--End Strengths for Selected Reserve

    This section would authorize the following end strengths 
for the selected reserve personnel, including the end strength 
for reserves on active duty in support of the reserves, as of 
September 30, 2002:

----------------------------------------------------------------------------------------------------------------
                                                                    FY 2002                   Change from
                                               FY 2001   -------------------------------------------------------
                  Service                     authorized                  Committee      FY 2002       FY 2001
                                                            Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard........................      350,526      350,000        350,000             0         (526)
Army Reserve...............................      205,300      205,000        205,000             0         (300)
Naval Reserve..............................       88,900       87,000         87,000             0       (1,900)
Marine Corps Reserve.......................       39,558       39,558         39,558             0            0
Air National Guard.........................      108,022      108,400        108,400             0          378
Air Force Reserve..........................       74,358       74,700         74,700             0          342
      DOD Total............................      866,664      864,658        864,658             0       (2,006)
                                            --------------------------------------------------------------------
Coast Guard Reserve........................        8,000        8,000          8,000             0            0
----------------------------------------------------------------------------------------------------------------

 Section 412--End Strengths for Reserves on Active Duty in Support of 
                              the Reserves

    This section would authorize the following end strengths 
for reserves on active duty in support of the reserves as of 
September 30, 2002:

----------------------------------------------------------------------------------------------------------------
                                                                    FY 2002                   Change from
                                               FY 2001   -------------------------------------------------------
                  Service                     authorized                  Committee      FY 2002       FY 2001
                                                            Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard........................       22,974       22,974         22,974             0            0
Army Reserve...............................       13,106       13,108         13,108             0            2
Naval Reserve..............................       14,649       14,811         14,811             0          162
Marine Corps Reserve.......................        2,261        2,261          2,261             0            0
Air National Guard.........................       11,170       11,591         11,591             0          421
Air Force Reserve..........................        1,336        1,437          1,437             0          101
                                            --------------------------------------------------------------------
      DOD Total............................       65,496       66,182         66,182             0          686
----------------------------------------------------------------------------------------------------------------

   Section 413--End Strengths for Military Technicians (Dual Status)

    This section would authorize the following end strengths 
for military technicians (dual status) as of September 30, 
2002:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2002                   Change from
                                                FY 2001   ------------------------------------------------------
                   Service                     authorized                  Committee
                                                (floor)      Request    recommendation    FY 2002      FY 2001
                                                                            (floor)       request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.........................       23,128       23,128         23,128             0            0
Army Reserve................................        5,921        5,999          5,999             0           78
Air National Guard..........................       22,247       22,422         22,422             0          175
Air Force Reserve...........................        9,785        9,818          9,818             0           33
                                             -------------------------------------------------------------------
      DOD Total.............................       61,081       61,367         61,367             0          286
----------------------------------------------------------------------------------------------------------------

Section 414--Fiscal Year 2002 Limitation on Non-Dual Status Technicians

    This section would establish the following limits on the 
numbers of non-dual status technicians as of September 30, 
2002:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2002                   Change from
                                                          ------------------------------------------------------
                   Service                      FY 2001                    Committee
                                                 limit       Request    recommendation    FY 2002      FY 2001
                                                                            (limit)       request       limit
----------------------------------------------------------------------------------------------------------------
Army National Guard.........................        1,600        1,600          1,600             0            0
Army Reserve................................        1,195        1,095          1,095             0        (100)
Air National Guard..........................          326          350            350             0           24
Air Force Reserve...........................           10            0             90            90           80
      DOD Total.............................        3,131        3,045          3,135            90            4
----------------------------------------------------------------------------------------------------------------

    The committee's recommended increase in the number of Air 
Force Reserve non-dual status technicians results from revised 
data provided by that component subsequent to the committee's 
receipt of the budget request. The committee is concerned about 
the growth. Noting that the Army Reserve and the Air Force 
Reserve are required by section 10217 of title 10, United 
States Code, to reduce the total number of non-dual status 
technicians in both components to no more than 175 by September 
30, 2007, the committee urges both components to coordinate 
their efforts to reach that objective.

  Section 415--Limitations on Numbers of Reserve Personnel Serving on 
  Active Duty or Full-Time National Guard Duty in Certain Grades for 
                  Administration of Reserve Components

    This section would authorize new grade tables for all 
reserve components of the military departments to limit the 
number of officers and senior enlisted members serving on 
active duty or full-time national guard duty for administration 
of reserves or national guard in the pay grades of 0-6, 0-5, 0-
4, E-9, and E-8. The tables would allow the limits for each 
grade to be adjusted as the total number of such reserve 
members on active duty increases or decreases.

       Subtitle C--Other Matters Relating to Personnel Strengths

   Section 421--Increase in Percentage by Which Active Component End 
             Strengths for any fiscal year may be increased

    This section would authorize the Secretary of Defense to 
increase active duty end strength of a military service up to 
two percent above the authorized end strength for that service. 
The committee notes that current law authorizes the Secretary 
to increase a service's end strength by one percent. The 
committee recommends this expanded authority to assist the 
Secretary in managing dynamic strength fluctuations occurring 
in the military services as a result of hard-to-predict 
recruiting and retention variables, as well as variables 
induced by the movement of reserve component personnel on and 
off active duty.

Section 422--Active Duty End Strength Exemption for National Guard and 
         Reserve Personnel Performing Funeral Honors Functions

    This section would permit members of the reserve components 
on active duty and members on full-time national guard duty to 
prepare for and perform funeral honors functions without 
counting against the active duty end strengths of the armed 
forces.

Section 423--Increase in Authorized Strengths for Air Force Officers on 
                   Active Duty in the Grade of Major

    This section would authorize a seven percent increase in 
the maximum number of officers serving on active duty in the 
grade of major.

              Subtitle D--Authorization of Appropriations

  Section 431--Authorization of Appropriations for Military Personnel

    This section would authorize $82,279.1 million to be 
appropriated for military personnel.
    This authorization of appropriations reflects both 
reductions and increases to the budget request that are 
itemized below.

                          [Dollars in millions]
------------------------------------------------------------------------
                                                     Military
                                                    personnel     O&M
                                                     accounts   accounts
------------------------------------------------------------------------
               RECOMMENDED INCREASES

Increase TLE to $180 per day and Authorize TLE for       43.0  .........
 Officer First Duty Station.......................
Authorize Annual Travel for Families of Korean/     .........        1.0
 Cold War Missing.................................
Electronic Voting Demonstration Project...........  .........        2.0
Travel Expenses for Guardian of Minor Child.......  .........        5.0
Equalize Reservists' Aviation Career Incentive Pay       10.0  .........
 with Active Duty Aviators When on Active Duty....
Authorize and Fund Full Pet Quarantine                    1.0  .........
 Reimbursement....................................
Funding for Uniting Through Reading (Navy)........  .........       0.18
FY 2002 Effect of Navy FY 2001 Overstrength.......       13.0  .........
Navy PCS Bow Wave from FY 2001....................       15.0  .........
Fund Army National Guard FY 2002 Military Techs     .........       20.0
 (Dual Status)....................................
Army Reserve Component Duty Training Pay..........       25.0  .........
USMC New Camouflage Utility Uniforms..............       20.8  .........
                                                   ---------------------
      Total Recommended Additions.................      127.8      28.18

              RECOMMENDED REDUCTIONS

Air Force Active Strength and Grade Underexecution     145.00  .........
Air Force Reserve Strength, Grade and Drill             10.98
 Underexecution...................................
                                                   ---------------------
      Total Recommended Reductions................     155.98  .........
------------------------------------------------------------------------

                   TITLE V--MILITARY PERSONNEL POLICY

                                OVERVIEW

    The committee believes that the Secretary of Defense, the 
secretaries of the military departments, and the uniformed 
military leadership must have effective, current, and flexible 
personnel management programs and guidance. Accordingly, the 
committee recommends a variety of initiatives to improve the 
personnel management systems of the military services.
    The committee, which was deeply disappointed that military 
absentee voters were not offered consistently high quality 
voting information and assistance during the 2000 election, 
recommends a series of voting initiatives designed to improve 
the ability of the Department of Defense managers to comply 
with the requirements of the Federal Voting Assistance Program 
and related law. These initiatives are consistent with the 
findings of post-election reviews conducted by the Comptroller 
General of the United States and the Department of Defense 
Inspector General. Included among the initiatives is the 
testing of electronic voting systems that aim to solve the time 
and distance challenges that have plagued military voters, 
particularly those residing at overseas duty locations.
    To improve operation of the system created by the Secretary 
of Defense to provide funeral honors to military veterans and 
retirees, the committee would include a series of initiatives 
designed to facilitate the Secretary's program and provide more 
flexible management tools.
    Finally, to ensure that members of the armed services 
receive the recognition they so richly deserve for serving the 
nation with dedication and valor, the committee recommends a 
new Cold War Medal, and a new Korea Defense Service Medal, and 
a waiver of the time limits for award of decorations. The 
committee also recommends a review of the decorations awarded 
to Jewish and Hispanic veterans for possible upgrading to the 
Medal of Honor.

                       ITEMS OF SPECIAL INTEREST

                      Alternative Recruiting Media

    The committee is aware that the services are seeking 
innovative ways to recruit a quality force in the face of 
increased college attendance, reduced youth population, and a 
competitive job market. The committee notes that today's youth 
are more receptive to information from non-traditional media 
and recommends the services employ these media as recruiting 
tools where financially feasible. The committee suggests the 
services explore the use of 3-D film, which can support the 
fast-moving action style commonly employed in recruiting 
presentations.

               Army Reserve Military Technician Positions

    The committee believes that the reserve full time manning 
program is essential to reserve component readiness and that 
dual status military technicians are critically important to 
unit level full time military presence in the Army Reserve. 
Consequently, the committee has exercised keen oversight in 
recent years of the Army Reserve's dual status technician 
program in an effort to ensure that Army Reserve units are 
staffed with fully qualified dual status military technicians. 
The committee understands, however, that Army Reserve personnel 
authorization documents prescribe that numerous headquarters 
staff positions be filled by military technicians (dual 
status). This practice results in military technicians (dual 
status) filling clerical and administrative positions in 
headquarters, performing exactly the same functions as federal 
civilian employees. The effect of such authorizations is to 
undercut congressional intent by maintaining higher than 
necessary numbers of military technicians (dual status) in 
headquarters billets that should more properly be filled by 
civilian employees. Another effect of such authorizations is to 
create personnel inequities. For example, the military 
technicians filling these headquarters positions are required 
to maintain their reserve status while civilian civil service 
employees filling like jobs in the same organization are not. 
Therefore, the committee directs the Secretary of the Army to 
review the Army Reserve's military technician authorizations 
with the goal of reallocating military technician positions at 
headquarters staff level to unit level.

            Defense Prisoner of War/Missing in Action Office

    The committee believes that the Defense Prisoner of War/
Missing in Action Office (DPMO) performs a critical mission for 
the Department of Defense (DOD). The work of this office 
continues to ensure substantial progress toward the fullest 
possible accounting for those missing in the nation's past 
conflicts, coordination and preparation of the effort to locate 
and recover those missing in future conflicts, and, through its 
work, stands as a tangible commitment to American families that 
the fate of Americans missing in the nation's conflicts will be 
relentlessly pursued. In order to perform effectively its range 
of missions, DPMO must be adequately resourced. Since its 
establishment, the DPMO accounting workload has grown 
dramatically beyond the initial emphasis on the Vietnam War to 
now encompass World War II, the Korean War, and the Cold War. 
In addition, it has assumed new missions for all aspects of 
future recovery operations. Even though the demands upon DPMO 
have escalated, the committee is disturbed to learn that both 
civilian and military personnel strengths have steadily 
declined. The committee notes that since DPMO was established, 
the organization's civilian billets have decreased by 45 
spaces, a 40 percent reduction, and 27 of DPMO's 46 military 
spaces are temporary billets. The committee believes that 
increased DPMO personnel resources are required in order for 
the office to address effectively its assigned missions. The 
committee therefore directs the Secretary of Defense to 
increase resources in the fiscal year 2003 budget request and 
beyond that will assure that DPMO's requirements to meet its 
entire range of missions are fully met.

     Improved Use of Existing Military Centers for Scientific and 
                        Technological Education

    The committee continues to be concerned that the military 
services are not adequately addressing the challenge of 
producing sufficient numbers of officers with the requisite 
education in science, engineering, and technology to meet the 
demands of the environment described in Joint Vision 2020. 
Reflecting the committee's concerns, theFloyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public Law 
106-398) required the Secretary of the Air Force to examine how the Air 
Force Institute of Technology could be more effectively employed to 
meet the needs of that service for officers with technical education. 
The committee also believes that the Naval Postgraduate School should 
have a larger role to play in meeting future Navy requirements for 
officers educated in the technical, engineering, and scientific 
disciplines. To that end, the committee directs the Secretary of the 
Navy to review future officer education requirements and to determine 
ways in which the Naval Postgraduate School can be more effectively 
used to meet those requirements.

           Review of General and Flag Officer Authorizations

    The committee notes that the advocates of increasing the 
total number of general and flag officers, or exempting general 
and flag officers from current grade limits, have presented at 
least six proposals for the committee's consideration. The 
Secretary of Defense did not request any of these proposals as 
part of his unified legislative package for the fiscal year 
2002 defense authorization bill. These six proposals are only 
the latest in a long line of similar unsanctioned proposals 
presented piecemeal to the committee year after year. The 
committee notes that section 1213 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201) 
required the Secretary of Defense to conduct a comprehensive 
review of active and reserve component general and flag officer 
authorizations and management. The committee still awaits the 
results of the mandated review. In the absence of such results, 
the committee spends an inordinate effort each year trying to 
sort through the merits of the many individual proposals. 
Acceptance of one simply leads to the proliferation of more the 
following year. To end this cycle, and to see to it that the 
Secretary of Defense fulfills the standing requirement of the 
law, the committee directs the Secretary to conduct the review 
required by section 1213 of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201) and deliver the 
final results of that review to Congress no later than one year 
after the date of enactment of this act.

                        Uniting Through Reading

    The committee strongly encourages programs that strengthen 
military families and improve their quality of life. The Navy's 
Uniting Through Reading program allows deployed parents and 
children to communicate during separations, boosts family 
morale, eases children's fears about a parent's absence, and 
reduces anxiety upon reunion. Deployed participants videotape 
themselves reading aloud and the videos and books are sent back 
to the families to enable children to watch the video and read 
along with their parent. The program also encourages 
videotaping the child's reading and reaction to enable those 
deployed to see the positive impact they are having on their 
child's development. The program is expanding to naval bases 
across the country and the committee recommends that an 
additional $180,000 be provided to this commendable program.

                         LEGISLATIVE PROVISIONS

          Subtitle A--General Personnel Management Authorities

Section 501--Enhanced Flexibility for Management of Senior General and 
                         Flag Officer Positions

    This section would repeal the current limit on the total 
number of four-star general officers allowed to be on active 
duty in order to provide the increased flexibility in the 
assignment and utilization of senior general officers that is 
required to improve oversight and control of joint and military 
service operations in space.

   Section 502--Original Appointments in Regular Grades for Academy 
                Graduates and Certain Other New Officers

    This section would require that graduates of the service 
academies, as well as Reserve Officer Training Corps 
distinguished graduates, and distinguished graduates of other 
officer commissioning programs like officer candidate schools, 
be given an initial appointment as an officer in the Regular 
Army, Navy, Marine Corps and Air Force, as long as they meet 
the criteria for such appointment.

 Section 503--Temporary Reduction of the Time-in-Grade Requirement for 
  Eligibility for Promotion for Certain Active-Duty List Officers in 
        Grades of First Lieutenant and Lieutenant (Junior Grade)

    This section would authorize the service secretaries to 
reduce the time-in-grade requirement for promotion to the pay 
grade of 0-3 from 24 to 18 months during the period ending 
September 30, 2005. The committee recognizes the need, 
particularly in the Army, to balance the number of officers 
serving in the grade of 0-3 with the number of positions where 
an officer in that grade is required. However, the committee 
remains concerned that junior officers receive adequate 
training and experience before being promoted to the grade of 
0-3. The committee also expects the service secretaries to 
address the retention problems believed to be the source of the 
current grade mismatches and to resume promoting to the grade 
of 0-3 with 24 months time-in-grade during fiscal year 2006.

 Section 504--Increase in Senior Enlisted Active Duty Grade Limit for 
                   Navy, Marine Corps, and Air Force

    This section would increase the limitation on the 
authorized daily average number of enlisted members serving on 
active duty within an armed force in the pay grade of E-8 from 
two percent to two and one half percent of the total number of 
enlisted members of that armed force on active duty on the 
first day of that fiscal year.

 Section 505--Authority for Limited Extension of Medical Deferment of 
                   Mandatory Retirement or Separation

    This section would authorize the secretaries of the 
military departments to extend for an additional 30 days the 
deferment of mandatory retirement or separation for medical 
reasons to provide the member additional time to prepare for 
retirement or separation.

Section 506--Authority for Limited Extension on Active Duty of Members 
             Subject to Mandatory Retirement or Separation

    This section would authorize the secretaries of the 
military departments to extend for an additional 90 days the 
deferment of mandatory retirement or separation due to the 
implementation of stop loss authority to provide the military 
member additional time to prepare for retirement or separation.

   Section 507--Clarification of Disability Severance Pay Computation

    This section would authorize disability severance pay to be 
computed based on the grade to which a member would be promoted 
regardless of the purpose of the physical examination that 
identifies the disqualifying physical disability.

       Section 508--Officer in Charge of United States Navy Band

    This section would permit a Navy limited duty officer who 
holds the rank of at least lieutenant commander to be detailed 
to serve in the rank of captain while holding the position of 
officer in charge of the United States Navy Band.

 Section 509--One-Year Extension of Expiration Date for Certain Force 
                         Management Authorities

    This section would extend through December 31, 2002, 
certain force drawdown transition authorities. These 
authorities would include:
          (1) Active duty early retirement authority;
          (2) Special separation benefit authority;
          (3) Voluntary separation incentive authority;
          (4) Increased flexibility in the management of 
        selective early retirement boards;
          (5) Reduction in time-in-grade requirement for 
        retention of grade upon voluntary retirement;
          (6) Reduction of length of commissioned service for 
        voluntary retirement as an officer;
          (7) Enhanced travel and transportation allowances and 
        storage of baggage and household effects for certain 
        involuntary separated members;
          (8) Increased flexibility for granting educational 
        leave relating to continuing public and community 
        service;
          (9) Enhanced health, commissary and family housing 
        benefits;
          (10) Increased flexibility in the management of 
        enrollments of dependents in the Defense Dependents' 
        Education System;
          (11) Definition of the force reduction transition 
        period for reserve forces;
          (12) Force reduction period for reserve retirement 
        authority;
          (13) Reduction of length of non-regular service 
        requirements for reserve retirements;
          (14) Reserve early retirement authority;
          (15) Reduction of time-in-grade requirement for 
        retention of grade upon voluntary reserve retirement;
          (16) Increased flexibility in the management of the 
        affiliation of active duty personnel with reserve 
        units; and
          (17) Increased flexibility in the management of 
        eligibility for reserve educational assistance.

             Subtitle B--Reserve Component Personnel Policy

Section 511--Placement on Active-Duty List of Certain Reserve Officers 
           on Active Duty for a Period of Three Years or Less

    This section would clarify section 641 of title 10, United 
States Code, to require members recalled to active duty for 
three years or less to be placed on the active-duty list unless 
the service secretary specifies in the service member's orders 
that the member will be retained on the reserve active-status 
list.

 Section 512--Expanded Application of Reserve Special Selection Boards

    This section would authorize reserve special selection 
boards to consider officers from below the promotion zone who 
were either not considered for promotion because of 
administrative error, or were considered but not selected for 
promotion because of material error. The section would afford 
reserve officers the same special selection board access as 
provided to active duty officers.

    Section 513--Exception to Baccalaureate Degree Requirement for 
    Appointment of Reserve Officers to Grades Above First Lieutenant

    This section would exempt enlisted members commissioned 
under the Army Officer Candidate School from the requirement to 
possess a baccalaureate degree before being promoted to the pay 
grade of captain.

Section 514--Improved Disability Benefits for Certain Reserve Component 
                                Members

    This section would remove the requirement that reservists 
must be performing inactive-duty for training at a site that is 
outside normal commuting distance before being eligible for 
disability benefits and programs if they incur or aggravate an 
injury, illness, or disease in the line of duty when remaining 
overnight at training locations before or between inactive-duty 
training periods.

 Section 515--Time-in-Grade Requirement for Reserve Component Officers 
                with a Non-Service Connected Disability

    This section would authorize retirement eligible reserve 
officers with non-service connected physical disabilities that 
disqualify the officer from continued service to be retired in 
the highest grade held by the officer for six months, 
regardless of other time-in-grade requirements. The section 
would afford officers with non-service connected disabilities 
the same retired grade determination process as officers with 
service connected disabilities.

Section 516--Reserve Members Considered to be Deployed for Purposes of 
                       Personnel Tempo Management

    This section would amend the definition of deployment for 
reservists to make it consistent with the definition of 
deployment applied to active duty members.

Section 517--Funeral Honors Duty Performed by Reserve and Guard Members 
      to be Treated as Inactive-Duty Training for Certain Purposes

    This section would authorize reserve and national guard 
members performing funeral honor duty the same rights, 
benefits, and protections that would be provided members 
performing inactive-duty training.

 Section 518--Members of the National Guard Performing Funeral Honors 
                    Duty While in Non-Federal Status

    This section would specify that national guard members when 
serving on funeral honors details shall be considered members 
of the armed forces for the purpose of meeting requirements for 
the minimum number of service members and service affiliation 
on a funeral honors detail.

 Section 519--Use of Military Leave for Funeral Honors Duty by Reserve 
                     Members and National Guardsmen

    This section would amend section 6323 of title 5, United 
States Code, to authorize federal employees who are members of 
the reserve components to use military leave to perform funeral 
honors duty.

 Subtitle C--Joint Specialty Officers and Joint Professional Military 
                               Education

              Section 521--Nominations for Joint Specialty

    This section would provide for the automatic nomination of 
any officer who, before or after the enactment of this 
provision, meets the statutory education and service 
requirements for nomination as a joint specialty officer (JSO). 
The Secretary of Defense, with the advice of the Chairman of 
the Joint Chiefs of Staff, would remain responsible for the 
actual selection of JSOs from the pool of nominated officers. 
The committee has heard the concerns of joint staff personnel 
that there will soon not be enough qualified officers to fill 
operational joint duty positions. The committee also has 
learned that there are more than 3,000 officers serving on 
active duty who, although they have met the joint professional 
military education and joint service requirements established 
by the Goldwater-Nichols Department of Defense Reorganization 
Act of 1986 (Goldwater-Nichols Act), (Public Law 99-433), have 
not been nominated by their respective military services for 
selection as joint specialty officers. The committee 
understands that the reluctance of the military services to 
nominate these officers is related to concerns that such 
nomination and subsequent selection of these officers by the 
Secretary of Defense to be JSOs would adversely affect the 
ability of the services to meet the promotion standards for 
JSOs that were established by the Goldwater-Nichols Act. The 
committee believes that the current policies of the military 
services to withhold nomination from qualified officers is 
unfair to those officers and places improper emphasis on 
meeting a statistical standard rather than producing sufficient 
numbers of JSOs.

                     Section 522--Joint Duty Credit

    This section would set out the standards and requirements 
for the Secretary of Defense to award joint duty credit to 
officers serving in temporary joint task force headquarters 
that are not engaged in combat or near combat operations. 
Following Desert Storm, Congress addressed issues related to 
the proliferating use of temporary joint task forces and the 
increasing numbers of officers serving abbreviated tours of 
duty in the headquarters of those joint task forces. The 
fundamental question was whether service in joint task force 
headquarters should be credited towards the statutory 
requirements for qualification as a joint specialty officer. In 
resolving the issue, Congress amended the Goldwater-Nichols Act 
to permit service of at least 90 days duration in a joint task 
force headquarters to be credited, as long as the joint task 
force was engaged in combat, or near combat, operations. Since 
Desert Storm, the Department of Defense has employed more than 
240 temporary joint task forces that do not meet the combat, or 
near combat, criteria. In view of this history, as well as the 
certainty that many officers would likely serve in future 
temporary joint task force headquarters engaged in military 
operations other than war, the Chairman of the Joint Chiefs of 
Staff asked the committee to consider ways in which service in 
temporary joint task forces engaged in operations other than 
war might be credited towards joint duty service requirements. 
In general, the committee does not believe that the intensity 
and complexity of most military operations other than war rise 
to the standard for creditestablished following Desert Storm. 
However, under certain limited conditions, the committee recognizes 
that service may be credited when it is in the headquarters of a 
temporary joint task engaged in peacekeeping or peace enforcement 
operations where an extremely fragile state of peace and a high 
potential for hostilities coexist.

Section 523--Retroactive Joint Service Credit for Duty in Certain Joint 
                              Task Forces

    This section would authorize the Secretary of Defense, 
after a case-by-case review, to award joint service credit to 
an officer who served in the headquarters of a temporary joint 
task force employed by the United States during one or more of 
nine specific joint operations that began during the period 
August 1, 1992, and June 11, 1999. The committee believes that 
the awarding of retroactive joint service credit to officers 
for these operations is consistent with the new authority 
granted to the Secretary of Defense in section 522 to award 
joint duty credit for certain military operations other than 
war.

   Section 524--Revision to Annual Report on Joint Officer Management

    This section would change some annual reporting 
requirements to reflect the committee's recommended amendments 
to the joint officer management system.

   Section 525--Requirement for Selection for Joint Specialty Before 
               Promotion to General or Flag Officer Grade

    This section would require that after September 30, 2007, 
officers promoted to brigadier general or rear admiral (lower 
half) must be selected as a joint specialty officer (JSO) prior 
to their promotion.
    The Goldwater-Nichols Act intended that future combat 
leaders of the armed forces would be drawn from the ranks of 
JSOs. To that end, the Goldwater-Nichols Act established that 
the proper qualification of an officer for effective service as 
a JSO required both formal education (joint professional 
military education) and completion of one ``full tour'' of 
joint duty. However, as a precondition for promotion to 
brigadier general, or rear admiral (lower half), the Goldwater-
Nichols Act established a less demanding standard, requiring 
the completion of one ``full tour'' of joint duty, but no joint 
professional military education. Fifteen years after the 
enactment of the Goldwater-Nichols Act, the committee believes 
that it is appropriate to move forward to secure the goal that 
future leaders of the armed forces, especially those entering 
general officer rank, should be drawn from the ranks of JSOs. 
The committee holds this view for the following reasons:
          (1) Involvement in joint operations is a fact of life 
        for general and flag officers today, and such 
        involvement will be increasingly so in the future. 
        Future standards for qualifying those general and flag 
        officers to operate effectively in the joint 
        environment should not differ from the rest of the 
        officers in the military services.
          (2) In the 15 years since enactment of the Goldwater-
        Nichols Act, the experience of thousands of officers 
        who were educated in the joint professional military 
        education (JPME) system and served in joint duty 
        assignments confirms that the JPME experience is 
        essential, and enhances performance in joint 
        operations.
          (3) Requiring future officers to be JSOs as a 
        condition of promotion to brigadier general, or rear 
        admiral (lower half), would, in effect, add a twelve-
        week attendance at JPME to the current service 
        requirement.

 Section 526--Independent Study of Joint Officer Management and Joint 
                Professional Military Education Reforms

    This section would require that the Secretary of Defense 
commission an independent study of issues related to joint 
officer management, joint professional military education, and 
the roles of the Secretary and the Chairman of the Joint Chiefs 
of Staff in managing and educating joint officers. The section 
would require the study to be completed by June 30, 2002. The 
Chairman of the Joint Chiefs of Staff presented the committee 
with a set of fundamental reforms in the joint officer 
management and joint officer professional military education 
systems. The committee, believing that the proposed reforms 
would have significant implications for joint service, the 
individual military services, and every officer, wants to move 
cautiously before making systemic changes. Such was the 
approach used by this committee when it developed the joint 
officer management initiatives contained in the Goldwater-
Nichols Act, and when it subsequently instituted joint 
professional military education reforms.

            Section 527--Professional Development Education

    This section would make the Secretary of Defense the 
executive agent for funding professional development education 
operations at the National Defense University, beginning in 
fiscal year 2003. At present, such funding is split between the 
Army and the Navy. By taking this action to consolidate the 
funding responsibility, the committee intends to strengthen the 
role of the Secretary of Defense in joint professional military 
education and improve the support of the National Defense 
University.

   Section 528--Authority for National Defense University to Enroll 
                    Certain Private Sector Civilians

    This section would permit up to 10 private sector employees 
of organizations relevant to national security to receive 
instruction at the National Defense University. The committee 
believes such enrollments will strengthen the educational 
experience of all military students at the National Defense 
University.

 Section 529--Continuation of Reserve Component Professional Military 
                             Education Test

    This section would require the Secretary of Defense to 
continue the concept validation test of the joint professional 
military education (JPME) course for reserve component officers 
in fiscal year 2002, and would authorize a broader pilot 
program in fiscal year 2003 for reserve component JPME, if the 
Secretary determines that the resultsof the concept validation 
merit test it. During fiscal year 2001, the National Defense University 
undertook a limited concept validation test of a JPME course for 
reserve component officers. The committee believes that the results of 
this concept validation are promising and that further testing of the 
concept should continue.

              Subtitle D--Military Education and Training

    Section 531--Defense Language Institute Foreign Language Center

    This section would authorize the commandant of the Defense 
Language Institute to award an associate of arts degree in a 
foreign language to graduates of the Institute's Foreign 
Language Center who meet the requirements for the degree.

Section 532--Authority for the Marine Corps University to Award Degree 
                     of Master of Strategic Studies

    This section would authorize the president of the Marine 
Corps University to award the degree of master of strategic 
studies upon graduates of the Marine Corps War College who meet 
the requirements for that degree.

 Section 533--Increase in Number of Foreign Students Authorized to be 
                   Admitted to the Service Academies

    This section would increase from 40 to 60 the number of 
foreign students who may attend each of the service academies 
at any one time. This section would also give the Secretary of 
Defense greater authority to waive some or all of the cost of 
that attendance.

  Section 534--Increase in Maximum Age for Appointment as a Cadet or 
    Midshipman in Senior Reserve Officer Training Corps Scholarship 
                                Programs

    This section would increase the maximum allowable age for 
the senior Reserve Officer Training Corps scholarship program 
from age 27 on June 30 of the year in which the officer 
candidate is expected to be commissioned to age 35 on December 
31 of the year in which the officer candidate is expected to be 
commissioned.

  Section 535--Active Duty Participation as a Cadet or Midshipman in 
                     Senior ROTC Advanced Training

    This section would authorize active duty enlisted members 
to participate in the senior Reserve Officer Training Corps.

Section 536--Authority to Modify the Service Obligation of Certain ROTC 
   Cadets in Military Junior Colleges Receiving Financial Assistance

    This section would authorize the Secretary of the Army to 
permit military junior college cadets who sign future 
Guaranteed Reserve Forces Duty (GRFD) contracts to satisfy 
their service obligation through either active duty service or 
reserve service in a troop program unit. This section would 
also permit those military junior college students who signed 
GRFD contracts between January 1, 1991, and July 11, 2000, to 
satisfy their service obligation through active duty service 
rather than service in the reserve component troop units.

Section 537--Modification of Nurse Officer Candidate Accession Program 
Restriction on Students Attending Educational Institutions with Senior 
                  Reserve Officers' Training Programs

    This section would remove the restriction on officer 
candidates from receiving financial assistance while training 
to be nurses at institutions where Reserve Officer Training 
Corps (ROTC) programs are present when the officer candidates 
are ineligible to participate in the ROTC program.

Section 538--Repeal of Limitation on Number on Junior Reserve Officers' 
                      Training Corps (JROTC) Units

    This section would repeal the current statutory cap of 
3,500 Junior Reserve Officers' Training Corps (JROTC) units. 
The committee notes that this repeal was contained in the 
budget request and is consistent with the long-standing 
committee view that JROTC expansion is in the nation's 
interest.

  Section 539--Reserve Health Professionals Stipend Program Expansion

    This section would expand the stipend program for reserve 
health professionals by authorizing medical and dental school 
students to receive stipends and authorizing continuing 
compensation for medical and dental school graduates 
participating in residency programs involving critical wartime 
specialties.

   Section 540--Housing Allowance for the Chaplain for the Corps of 
                 Cadets, United States Military Academy

    This section would amend the authority of the Secretary of 
the Army to provide a housing allowance to the Chaplain for the 
Corps of Cadets at the United States Military Academy to 
specify that the allowance should be consistent with the 
allowance provided to a lieutenant colonel.

           Subtitle E--Decorations, Awards, and Commendations

 Section 541--Authority for Award of the Medal of Honor to Humbert R. 
                Versace for Valor During the Vietnam War

    This section would waive the statutory time limitation for 
the award of the Medal of Honor to Humbert R. Versace for valor 
while interned as a prisoner-of-war by the Vietnamese Communist 
National Liberation Front (Viet Cong) in the Republic of 
Vietnam.

Section 542--Review Regarding Award of Medal of Honor to Certain Jewish 
              American and Hispanic American War Veterans

    This section would require the secretaries of the military 
departments to review the service records of Jewish and 
Hispanic veterans from World War II and later periods to 
determine if the award of the Medal of Honor is appropriate. 
The secretaries would be obligated to review the records of 
veterans who were previously awarded the Distinguished Service 
Cross, the Navy Cross, and the Air Force Cross, and names of 
veterans submitted to the secretaries during the one-year 
period beginning with the date of enactment of this provision. 
In those cases where the secretaries determine that service 
records support the award of Medals of Honor, the section would 
also waive the statutory time limitations for award.

        Section 543--Authority to Issue Duplicate Medal of Honor

    This section would authorize the service secretaries to 
issue one duplicate Medal of Honor to recipients for display 
purposes.

     Section 544--Authority to Replace Stolen Military Decorations

    This section would clarify that the service secretaries are 
authorized to replace decorations that are considered stolen in 
addition to those decorations considered lost or destroyed.

Section 545--Waiver of Time Limitations for Award of Navy Distinguished 
                    Flying Cross to Certain Persons

    This section would waive the statutory time limitations for 
the award of the Distinguished Flying Cross to individuals 
recommended for award of the Distinguished Flying Cross by the 
secretaries of the military departments.

                Section 546--Korea Defense Service Medal

    This section would require the secretaries of the military 
departments to issue a campaign medal, to be known as the Korea 
Defense Service Medal, to members who served in the Republic of 
Korea or adjacent waters during the period beginning on July 
28, 1954, and ending on a future date to be determined by the 
Secretary of Defense. Members who served in the Republic of 
Korea and adjacent waters prior to the date of enactment of 
this provision would be required to apply for award of the 
medal.

                  Section 547--Cold War Service Medal

    This section would require the secretaries of the military 
departments to issue a Cold War service medal to persons who 
served honorably on active duty in the armed forces during the 
period beginning on September 2, 1945 and ending on December 
26, 1991. In order to qualify as an enlisted member, a person 
would have had to serve a full term of enlistment in an armed 
force, and reenlisted as an enlisted member or have been 
appointed an officer. In order to qualify as an officer, a 
person would have had to complete an initial service obligation 
as an officer and have served in an armed force after 
completing the initial service obligation. The secretaries 
would be authorized to waive the service requirements in the 
case of disability or hardship separation, or other deserving 
circumstance.

  Section 548--Option to Convert Award of Armed Forces Expeditionary 
   Medal Awarded for Operation Frequent Wind to Vietnam Service Medal

    This section would authorize participants in Operation 
Frequent Wind, the evacuation of Vietnam conducted on April 29 
and 30, 1975, to return the award of the Armed Forces 
Expeditionary Medal and to receive the Vietnam Service Medal in 
its place.

                 Subtitle F--Matters Relating to Voting

   Section 551--Voting Assessments and Assistance for Members of the 
                           Uniformed Services

    This section would require the Department of Defense (DOD) 
Inspector General to conduct annual random and unannounced 
assessments of the compliance with the requirements of the 
Uniformed and Overseas Citizens Absentee Voting Act (Public Law 
99-410), DOD regulations regarding the Federal Voting 
Assistance Program, and other requirements of law at 15 
Department of Defense installations. The section would also 
require the secretaries of the military departments to include 
an assessment of compliance with the requirements of the 
Uniformed and Overseas Citizens Absentee Voting Act and DOD 
regulations regarding the Federal Voting Assistance Program on 
the list of issues and programs to be reviewed during all 
management effectiveness reviews and inspections. Additionally, 
the section would require voting assistance officers appointed 
under DOD regulations to be appointed with the expectation of 
serving a minimum of 30 months. Performance evaluation reports 
pertaining to service members who have been appointed voting 
assistance officers would be required to include comments on 
the performance of the individual as a voting assistance 
officer. Finally, the section would require the Secretary of 
Defense, during the four months preceding the month during 
which congressional elections are conducted, to poll all units 
and ships at sea responsiblefor collecting and shipping mail to 
determine if voting materials are awaiting shipment and the length of 
time that the materials have been held at that location.

          Section 552--Electronic Voting Demonstration Project

    This section would require the Secretary of Defense to 
carry out a demonstration project to allow military absentee 
voters to vote using an electronic voting system. This section 
would require the Secretary to coordinate with state officials 
to facilitate the demonstration project. The committee expects 
the Secretary to actively encourage state election officials to 
participate in the demonstration project and to take all 
prudent steps to expand the demonstration project to reach as 
many military voters as possible. The committee believes that 
the method for absentee voting that holds the most promise for 
protecting the voting rights of military members in the future 
is electronic voting using computers.

  Subtitle G--Matters Relating to Military Spouses and Family Members

   Section 561--Improved Financial and Other Assistance to Military 
                 Spouses for Job Training and Education

    The section would require the Secretary of Defense to 
examine existing Department of Defense and other federal, state 
and non-governmental programs with the objective of improving 
retention of military personnel by increasing the employability 
of military spouses and helping those spouses gain access to 
financial and other assistance for training and education. The 
section would also require the Secretary to assess whether the 
Department should begin a program of direct financial 
assistance to military spouses for education, job training and 
related assistance like child care and job-related 
transportation. The section would also authorize the 
secretaries of the military departments to make available space 
in military facilities for non-Department of Defense entities 
to provide employment-related training for military spouses.

 Section 562--Authority to Conduct Surveys of Dependents and Survivors 
                          of Military Retirees

    This section would expand the authority of the Secretary of 
Defense to survey families of military members to determine the 
adequacy of facilities and services provided by the Department 
of Defense. The section would authorize the Secretary to survey 
families of retired members in addition to families of active 
duty members.

   Section 563--Clarification of Treatment of Classified Information 
                 Concerning Persons in a Missing Status

    This section would amend section 1506 of title 10, United 
States Code, to require the Secretary of Defense to maintain a 
separate file available for review by next-of-kin that would 
provide notice of the existence of classified information which 
may pertain to one or more missing persons. The committee 
believes that as much information as possible should be 
provided to the next-of-kin of persons missing from past 
conflicts.

Section 564--Transportation to Annual Meeting of Next-of-Kin of Persons 
           Unaccounted for from Conflicts after World War II

    This section would authorize the Secretary of Defense to 
provide transportation for the next-of-kin of persons who are 
unaccounted from the Korean War, the Cold War, the Vietnam War, 
and the Persian Gulf Conflict to an annual meeting concerning 
ongoing efforts to resolve the fate of their missing family 
member.

 Section 565--Amendments to Charter of Defense Task Force on Domestic 
                                Violence

    This section would extend the original three-year 
authorization of the Defense Task Force on Domestic Violence 
from October 5, 2002, to April 24, 2003. The section also would 
authorize reimbursement to be paid to task force members who 
are not Department of Defense or federal civilian employees. 
The task force was established by section 591 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65).

             Subtitle H--Military Justice and Legal Matters

 Section 571--Requirement that Courts-Martial Consist of Not Less than 
                      12 Members in Capital Cases

    This section would amend chapter 47 of title 10, United 
States Code, to increase the number of required courts-martial 
members to 12 in cases in which the death penalty may be 
adjudged as a sentence. The fact that a general court-martial 
presently may adjudge death with as few as five members 
contributes to the unfortunate public perception that service 
members have fewer constitutional protections than civilians 
and undermines the legitimacy of verdicts in such cases.
    The Manual for Courts-Martial requires special procedures 
in capital cases, and the Court of Appeals for the Armed Forces 
has recognized the unique status of death penalty cases and 
attendant systemic burdens in its jurisprudence. Requiring 12 
court-members in capital courts-martial would ensure that 
service members receive the same procedural protections that 
exist in other death penalty cases, with one exception. Because 
the military has unique operational considerations not found in 
civilian society, this section would provide that the convening 
authority could reduce the number of court members serving in 
capital cases to no fewer than five members when 12 members are 
not reasonably available because of physical conditions or 
military exigencies. In such circumstances, the convening 
authority would be required to make a written statement of the 
reasons 12 members could not be obtained. This statement would 
be appended to the record of trial.

   Section 572--Right of Convicted Accused To Request Sentencing by 
                             Military Judge

    This section would amend chapter 47 of title 10, United 
States Code, to permit the sentencing phase of trial in courts-
martial to be conducted by a military judge sitting alone, 
rather than by court members.
    Under the present court-martial process a military judge 
alone may not sentence an accused if the accused elects to be 
tried with court members. Such a result, however, has 
disadvantages. Sentencing trials involving members may be more 
lengthy and more complicated than judge-alone proceedings, 
costing the government time and expense and keeping court 
members away from their regular duties for extended periods. 
Moreover, military judges generally have as sound a sense of 
community and disciplinary norms and mores as court members 
because they typically preside over many cases at a single 
installation.
    This section would permit a separate choice of forum 
decision to be made following announcement of findings of guilt 
or innocence by the court but before evidence on sentencing is 
received. A request for sentencing by judge alone could be made 
orally on the record or in writing. Consistent with article 18 
of the Uniform Code of Military Justice, section 818 of title 
10, United States Code, and Rule for Courts-Martial 
201(f)(1)(C), judge-alone sentencing would not be permitted in 
capital cases.

 Section 573--Codification of Requirement for Regulations for Delivery 
 of Military Personnel to Civil Authorities When Charged With Certain 
                                Offenses

    This section would codify existing regulations by amending 
section 814 of title 10, United States Code. The section would 
require the Secretary of Defense to prescribe regulations to 
provide for the delivery to the appropriate civil authority for 
trial, a member accused by civil authority of parental 
kidnapping or a similar offense.

 Section 574--Authority To Accept Voluntary Legal Services for Members 
                          of the Armed Forces

    This section would improve the availability of legal 
assistance services to members of the armed forces by amending 
section 1588 of title 10, United States Code, and would 
expressly authorize the service secretaries to accept voluntary 
legal services. This section would also protect these 
volunteers from legal malpractice actions by extending to them 
the protections of section 1054 of title 10, United States 
Code.

                       Subtitle I--Other Matters

Section 581--Shipment of Privately Owned Vehicles When Making Permanent 
            Change of Station Moves Within the United States

    This section would authorize the service secretaries to 
ship a vehicle at government expense from one permanent station 
inside the continental United States to another permanent 
station inside the continental United States when such shipment 
is found to be advantageous and cost effective to the 
government.

        Section 582--Payment of Vehicle Storage Costs in Advance

    This section would authorize the secretaries of the 
military departments to pay vehicle storage costs in advance.

 Section 583--Permanent Authority for Use of Military Recruiting Funds 
   for Certain Expenses at Department of Defense Recruiting Functions

    This section would make permanent the authority for the 
secretaries of the military departments to conduct social 
functions involving recruit candidates and recruits awaiting 
active duty entry, and other persons known to influence the 
career decisions of recruitment-age youth.

 Section 584--Clarification of Military Recruiter Access to Secondary 
              School Directory Information About Students

    This section would specify that secondary schools shall 
provide directory information to recruiters in the same way 
that such information is provided to institutions of higher 
education when the student has indicated a desire or intent to 
enroll in that institution.

Section 585--Repeal of Requirement for Final Comptroller General Report 
               Relating to Army End Strength Allocations

    This section would repeal the requirement for the last 
report by the Comptroller General of the United States on the 
Total Army Analysis (TAA) process--the modeling process used by 
the Army to determine its combat support and combat service 
support force structure.

Section 586--Posthumous Army Commission in the Grade of Captain in the 
Chaplains Corps to Ella E. Gibson for Service as Chaplain of the First 
        Wisconsin Heavy Artillery Regiment During the Civil War

    This section would authorize and request the President to 
posthumously appoint Ella E. Gibson to the grade of captain for 
her service as a chaplain in the First Wisconsin Heavy 
Artillery Regiment during the Civil War.

             Section 587--National Guard Challenge Program

    This section, effective October 1, 2002, would eliminate 
the $62.5 million statutory limit on Department of Defense 
spending for the National Guard Youth Challenge program, and 
revise the Department of Defense cost share for each state's 
program from 60 percent to 75 percent. The section would also 
repeal section 2033 of title 10, United States Code, which 
requires that any funding appropriated to the Challengeprogram 
above the Department's statutory limit be provided to the Junior 
Reserve Officers' Training Program.

Section 588--Payment of FEHBP Premiums for Certain Reservists Called to 
            Active Duty in Support of Contingency Operations

    This section would authorize federal agencies to pay the 
employee portion of Federal Employee Health Benefit Program 
(FEHBP) premiums for federal employees who are members of the 
reserve component who are called to active duty for more than 
30 days. This authority would provide continuity of medical 
care for the families of reserve component members who are 
called to active duty for extended periods and will encourage 
federal employees to volunteer for extended active duty 
missions.

             Section 589--18-month Enlistment Pilot Program

    This section would authorize, during the period beginning 
on October 1, 2003 and ending on December 31, 2007, an 18-month 
enlistment pilot program to increase the participation of prior 
service persons in the Selected Reserve and increase the pool 
of participants in the Individual Ready Reserve. The section 
would authorize the Secretary of the Army to enlist up to 
10,000 soldiers under this program and provide enlistment 
bonuses and student loan repayments to recruits. Soldiers 
enlisted under this program will be eligible for assignment to 
overseas locations. This section would require the Secretary of 
the Army to report the results of the program to the Senate 
Committee on Armed Services and the House Committee on Armed 
Services not later than December 31, 2007 and December 31, 
2012.

  Section 590--Per Diem Allowance for Lengthy or Numerous Deployments

    This section would amend section 574 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398) to expand the scope of the report from the 
Secretary of Defense that is due not later than March 31, 2002. 
The Secretary would be required to review section 991 of title 
10, United States Code, and section 436 of title 37, United 
States Code, and include in the report:
          (1) A discussion of the experience in tracking and 
        recording deployment of members, and paying members 
        subject to lengthy and numerous deployments a $100 per 
        diem after exceeding 400 days deployed out of the 
        previous 730.
          (2) Specific comments regarding the effect on the 
        readiness of the Navy and the Marine Corps of the two 
        provisions given the deployment intensive mission of 
        these services.
          (3) Any recommendation for revision of the two 
        provisions.
    The committee is aware of concerns expressed by the Chief 
of Naval Operations and the Commandant of the Marine Corps that 
the law establishing a management system and per diem payment 
authority for service members subjected to lengthy and numerous 
deployments will have unintended fiscal and readiness 
consequences for the deployment intensive sea services during 
fiscal year 2002. On the other hand, the committee has heard 
the Under Secretary of Defense for Personnel and Readiness 
testify that the fiscal impact of the law can be managed in 
fiscal year 2002 and the law should be allowed to operate until 
the services are able to provide data to determine how the law 
is working.
    The committee is concerned that the law should not impose 
unintended consequences on the services and is committed to 
understanding what changes to the law may be required. However, 
the committee is equally concerned that the members of the 
armed services be spared excessive deployments that are known 
to stress members and their families and erode the quality of 
life that is critical to good retention.
    This section would also amend section 436 of title 37, 
United States Code, to require high-deployment per diem be paid 
from operations and maintenance accounts.
    The committee notes that, contrary to guidance included in 
the statement of managers accompanying section 574 of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 
2001 (Public Law 106-398), the services intend to pay high-
deployment per diem out of military personnel accounts. The 
committee strongly believes that deploying service members in 
excess of 400 days out of any 730-day period is fundamentally 
an operational decision driven by operational requirements. As 
such, the committee considers high-deployment per diem an 
operational cost that should be paid from operations and 
maintenance accounts.

 Section 591--Congressional Review Period for Change in Ground Combat 
                            Exclusion Policy

    This section would amend section 542 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160) to change the congressional notification period required 
of the Secretary of Defense before implementing revised 
policies concerning the assignment of women to ground combat 
units or positions. Currently, the Secretary must provide 
Congress with 90 calendar days notice before making any changes 
to the ground combat exclusion policy that would either close 
to female members of the armed services a position or unit that 
was previously open to them, or open to female members of the 
armed services a position or unit that was previously closed to 
them. This section would change the notification period to 60 
days of continuous session of Congress.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                                OVERVIEW

    The committee continues to believe that compensation 
programs are critical to successful recruiting and retention. 
Accordingly, the committee recommends a pay raise that combines 
both across-the-board and targeted increases for mid-grade 
noncommissioned officers and officers, a new officer accession 
bonus, and a number of enhancements to special and incentive 
pays and bonuses.
    In addition, the committee recognizes that the rate of 
reimbursement for the cost of permanent changes of station 
(PCS) has dropped to 62 cents for every dollar expended by 
service members and their families. The committee is committed 
to improving PCS reimbursement rates and to that end proposes a 
series of initiatives in this bill. These measures include:
          (1) An increase in the maximum amount for temporary 
        lodging expense (TLE) from $110 to $180 per day and 
        authorization for officers to receive TLE at their 
        first duty stations.
          (2) Advanced payment of vehicle storage costs.
          (3) Shipment of privately owned vehicles inside the 
        United States.
          (4) Family separation allowances for members serving 
        unaccompanied overseas tours because family members 
        have been medically disqualified from overseas 
        assignment.
          (5) A $500 partial dislocation allowance when ordered 
        out of government quarters.
          (6) More flexible allowances for travel performed by 
        members between consecutive overseas services.
          (7) An increase in the reimbursement rate for the 
        cost of pet quarantine services.
    Because the Under Secretary of Defense for Personnel and 
Readiness testified that he will seek to reform further the PCS 
reimbursement system, the committee recommends a series of 
additional measures but delays their implementation date for 
one year, until January 1, 2003. The committee expects the 
Secretary of Defense, following completion of the Department of 
Defense review of the PCS reimbursement system, will make 
recommendations with regard to the implementation of the 
following initiatives:
          (1) Authority to pay dislocation allowance (DLA) at a 
        member's first duty station.
          (2) Increased weight allowance for transportation of 
        household goods for junior enlisted personnel.
          (3) Increasing the PCS reimbursement rate for 
        military personnel to the same rate as paid federal 
        civilian employees.
          (4) Payment of housing allowance to junior enlisted 
        personnel while traveling between PCS stations.
          (5) Dislocation allowance for military couples moving 
        into government quarters.
    Finally, the committee would authorize uniformed service 
retirees to receive disability compensation from the Department 
of Veterans Affairs without reducing retired pay. 
Implementation of the provision would be contingent on the 
President submitting offsets for the increased entitlement 
spending in a budget request and Congress enacting legislation 
to provide those specific offsets.

                       ITEMS OF SPECIAL INTEREST

     Additional Reporting Instructions Concerning the Supplemental 
      Subsistence Allowance for Low-Income Members with Dependents

    Section 402a of title 37, United States Code, as amended by 
section 604 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398), 
directs the Secretary of Defense to submit to Congress annual 
reports specifying the number of members of the armed forces 
who received the supplemental subsistence allowance during the 
preceding year. The first report is required on March 1, 2002 
and the last report is required on March 1, 2006. The committee 
is concerned that the reports include sufficient information 
about the recipients to allow the merits of the program to be 
evaluated.
    Accordingly, the committee directs the Secretary of Defense 
to include in the first annual report and all reports that 
follow, statistical analyses of the recipient population 
regarding rank, family size, non-dependent family members, job 
specialties, and service. The report shall also make 
distinctions among recipients based on duty locations being in 
the United States or overseas (including Alaska and Hawaii), 
residences being government housing, privatized government 
housing, or private sector housing, and family income including 
or not including wage earners in addition to the service 
member.

           Personal and Family Financial Management Programs

    The committee is concerned that the secretaries of the 
military departments are not providing service members 
sufficient training on the management of personal and family 
finances, and when personal financial problems do occur, the 
secretaries are not providing adequate supervision to ensure 
that service members and their families regain financial 
security.
    Accordingly, the committee directs the secretaries of the 
military departments to conduct a comprehensive examination of 
the personal financial management programs operated within 
their respective departments. The examination shall include at 
a minimum an assessment of the severity and type of personal 
financial challenges confronting service members, the magnitude 
of personal debt accumulated by service members, the adequacy 
of training and assistance programs available to service 
members, and the merits of other programs recommended to meet 
the needs of service members.
    The committee further directs the Secretary of Defense to 
consolidate and review the examinations conducted by the 
secretaries of the military departments, identify the best 
practices from each examination, and assess the need to improve 
and standardize the programs operated by the secretaries of the 
military departments. The committee directs the Secretary of 
Defense to report the findings of his review to the Senate 
Committee on Armed Services and the House Committee on Armed 
Services by March 31, 2002.

 The Right of Former Prisoners of War Forced to Work as Slave Laborers 
   During World War II to Sue Japanese Corporations for Mistreatment

    The committee believes that the inhumane treatment of U.S. 
prisoners of war (POWs) at the hands of Japanese corporations 
that benefited from their efforts as slave laborers during 
World War II is a matter that requires new attention by the 
United States Government. The committee believes that these 
POWs are deserving of the opportunity to seek a just settlement 
from the Japanese corporations in the courts. The committee 
believes that the success of other claimants in gaining 
reparations from the Japanese nation for World War II 
misconduct signals a new era of reconciliation that must now 
include the U.S. POWs forced to work as slave laborers. The 
committee believes that the United States government should 
reconsider its formal opposition to the court actions filed by 
the U.S. POW slave laborers from World War II and apply the 
resources of the Department of State and the Department of 
Justice to the task of assisting these deserving former POWs to 
obtain proper settlements to their claims.

                         LEGISLATIVE PROVISIONS

                     Subtitle A--Pay and Allowances

        Section 601--Increase in Basic Pay for Fiscal Year 2002

    This section would increase basic pay a minimum of six 
percent for all enlisted members of the uniformed services and 
a minimum of five percent for all officers effective January 1, 
2002. The section would provide additional increases to mid-
grade and senior noncommissioned officers, and mid-grade 
officers to maintain incentives to serve throughout the 
enlisted career and to increase incentives to retain junior 
officers and highly skilled enlisted members in a competitive 
private sector economy.
    This raise fulfills the President's commitment to add $1.0 
billion to pay for the uniformed services. The combined across-
the-board and targeted raise would be the equivalent of a 6.9 
percent across-the-board raise and would reduce the pay gap 
between military and private sector pay increases over time 
from 10.4 percent to 7.5 percent.

 Section 602-Basic Pay Rate for Certain Reserve Commissioned Officers 
      with Prior Service as an Enlisted Member or Warrant Officer

    This section would authorize reserve component officers in 
pay grades 0-1, 0-2, or 0-3 who are not on active duty but have 
accumulated a minimum of 1,460 points credited toward reserve 
retirement while serving as a warrant officer or as a warrant 
officer and enlisted member to be paid at the same rate as 
active duty officers credited with at least four years of 
service as a warrant officer or as a warrant officer and 
enlisted member.

                  Section 603--Subsistence Allowances

    This section would make clarifying changes of an 
administrative nature to the basic allowance for subsistence 
(BAS) program to facilitate the termination of the transitional 
BAS program effective January 1, 2002.

Section 604--Eligibility for Basic Allowance for Housing While Between 
                        Permanent Duty Stations

    This section would require the secretaries of the military 
departments to pay members of the uniformed services in pay 
grades below E-4 (with less than 4 years of service) a 
temporary housing allowance while on travel or leave status 
between permanent duty stations.

              Section 605--Uniform Allowance for Officers

    This section would clarify that an additional allowance of 
$200 for uniforms may be paid to an officer so long as any 
previous allowance received did not exceed $400.

 Section 606--Family Separation Allowance for Certain Members Electing 
                  to Serve Unaccompanied Tour of Duty

    This section would require the secretaries of the military 
departments to pay family separation allowance to members of 
the uniformed services who elect to serve unaccompanied tours 
of duty because the movement of dependents of the member to the 
permanent duty station is denied for certified medical reasons.

           Subtitle B--Bonuses and Special and Incentive Pays

   Section 611--One-Year Extension of Certain Bonus and Special Pay 
                     Authorities for Reserve Forces

    This section would extend the authority for the special pay 
for health care professionals who serve in the selected reserve 
in critically short wartime specialties, the selected reserve 
reenlistment bonus, the selected reserve enlistment bonus, 
special pay for enlisted members of the selected reserve 
assigned to certain high priority units, the selected reserve 
affiliation bonus, the ready reserve enlistment and 
reenlistment bonus, and the prior service enlistment bonus 
until December 31, 2002. The provision would also extend the 
authority for repayment of educational loans for certain health 
care professionals who serve in the selected reserve until 
January 1, 2003.

   Section 612--One-Year Extension of Certain Bonus and Special Pay 
Authorities for Nurse Officer Candidates, Registered Nurses, and Nurse 
                              Anesthetists

    This section 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 December 31, 2002.

    Section 613--One-Year Extension of Other Bonus and Special Pay 
                              Authorities

    This section would extend the authority for the aviation 
officer retention bonus, reenlistment bonus for active members, 
enlistment bonus for active members, special pay for nuclear 
qualified officers extending the period of active service, 
nuclear career accession bonus, the nuclear career annual 
incentive bonus, and the retention bonus for members with 
critical skills to December 31, 2002.

 Section 614--Conforming Accession Bonus for Dental Officers Authority 
           with Authorities for Other Special Pay and Bonuses

    This section would conform the expiration date of the 
accession bonus for dental officers with the expiration dates 
of other special pays and bonuses. The section would extend the 
authority to pay accession bonuses to dental officers until 
December 31, 2002.

   Section 615--Additional Type of Duty Resulting in Eligibility for 
                      Hazardous Duty Incentive Pay

    This section would authorize members of the uniformed 
services to be paid hazardous duty incentive pay for duties 
involving regular participation as a member of a team 
conducting visit, board, search, and seizure aboard vessels in 
support of maritime interdiction operations.

  Section 616--Equal Treatment of Reservists Performing Inactive-Duty 
         Training for Receipt of Aviation Career Incentive Pay

    This section would entitle qualified reserve aviators to be 
paid the full amount of monthly Aviation Career Incentive Pay 
in the same amount as paid to active duty aviators with the 
same number of years of aviation service.

   Section 617--Secretarial Discretion in Prescribing Submarine Duty 
                          Incentive Pay Rates

    This section would authorize the Secretary of the Navy to 
prescribe the amount of submarine duty incentive pay by grade 
and years of service within a maximum of $1,000 per month. The 
committee believes this new flexibility will allow the 
Secretary to respond more quickly to recruiting and retention 
problems within the submarine force.

   Section 618--Imposition of Critical Wartime Skill Requirement for 
             Eligibility for Individual Ready Reserve Bonus

    This section would amend the eligibility criteria for 
payment of a bonus to individuals enlisting, reenlisting, or 
extending an enlistment in the individual ready reserve. The 
bonus would no longer be paid to individuals with combat or 
combat support skills, but would be paid to individuals with a 
skill or specialty designated by the service secretary as 
critically short to meet wartime requirements.

 Section 619--Installment Payment Authority for 15-Year Career Status 
                                 Bonus

    This section would authorize members of the uniformed 
services to elect to be paid the 15-year career status bonus in 
a lump sum or one of a series of annual installment options. 
Section 322 of title 37, United States Code, requires the 15-
year career status bonus for military members entering service 
on or after August 1, 1986, to be paid in a lump sum of 
$30,000. The options for annual installment payments would be 
$15,000 per year over two years, $10,000 per year over three 
years, $7,500 per year over four years, or $6,000 per year over 
five years.

             Section 620--Accession Bonus for New Officers

    This section would authorize the service secretaries to pay 
an accession bonus of up to $100,000 to officer candidates who 
enter into written service agreements to accept commissions as 
officers.

            Subtitle C--Travel and Transportation Allowances

   Section 631--Minimum Per Diem Rate for Travel and Transportation 
 Allowance for Travel Performed Upon a Change of Permanent Station and 
                          Certain Other Travel

    This section would require the service secretaries to pay 
members of the uniformed services ordered to change permanent 
duty stations the per diem rate established in the federal 
travel regulation for civilian employees authorized per diem 
while changing permanent duty stations.

Section 632--Payment or Reimbursement of Temporary Subsistence Expenses

    This section would increase from $110 to $180 per day the 
maximum amount that may be paid to members of the uniformed 
services as reimbursement for temporary lodging and subsistence 
expenses incurred in the United States as result of a permanent 
change of station. The section would also authorize payment for 
temporary lodging and subsistence expenses to officers 
reporting to their first permanent duty station.

 Section 633--Increased Weight Allowance for Transportation of Baggage 
           and Household Effects for Junior Enlisted Members

    This section would increase the maximum weight allowance 
for shipment of household effects for enlisted military members 
in grades E-4 and below. The new allowance for members in pay 
grade E-4 with less than two years of service would be 8,000 
pounds for members with dependents, and 7,000 pounds for 
members without dependents. The new allowance for members in 
pay grades E-1 through E-3 would be 8,000 pounds for members 
with dependents, and 5,000 pounds for members without 
dependents.

Section 634--Reimbursement of Members for Mandatory Pet Quarantine Fees 
                           for Household Pets

    This section would authorize an increase from $275 to $675 
per change of station in the amount of reimbursement for pet 
quarantine fees the service secretaries may pay to members of 
the uniformed services.

Section 635--Availability of Dislocation Allowance for Married Member, 
     Whose Spouse is a Member, Assigned to Military Family Housing

    This section would require service secretaries to pay 
members of the uniformed services who are married to other 
members and have no dependents a dislocation allowance when the 
members are assigned to military family housing at a new 
permanent duty station. The section would specify that only one 
member of the married couple may receive such a dislocation 
allowance.

   Section 636--Elimination of Prohibition on Receipt of Dislocation 
           Allowance by Members Ordered to First Duty Station

    This section would authorize the payment of dislocation 
allowance to members of the uniformed services ordered from 
their homes to their first duty stations.

Section 637--Partial Dislocation Allowance Authorized for Housing Moves 
                   Ordered for Government Convenience

    This section would authorize the service secretaries to pay 
a $500 partial dislocation allowance to members of the 
uniformed services who are ordered to occupy or vacate 
government family housing to permit privatization, renovation, 
or other reason unrelated to changes in permanent station.

Section 638--Allowances for Travel Performed in Connection with Members 
       Taking Authorized Leave Between Consecutive Overseas Tours

    This section would authorize the service secretaries to 
designate the locations to which members of the uniformed 
services may travel at government expense while on leave 
between consecutive overseas tours. Section 411b of title 37, 
United States Code, specifies that the distance that a member 
of the uniformed services may travel at government expense when 
authorized leave tours may not exceed the distance from the 
overseas duty location to the member's home of record. The 
committee believes the service secretaries can best determine 
the travel destination that is most advantageous to the member 
and cost effective to the government.

Section 639--Funded Student Travel as Part of School-Sponsored Exchange 
                                Programs

    This section would expand the circumstances for which the 
service secretaries may pay service members stationed overseas 
a transportation allowance for dependent students. The section 
would authorize a transportation allowance for students 
participating in programs of less than one year located outside 
the continental United States and approved by the institution 
in the continental United States normally attended. The section 
would allow the allowance to be paid so long as the cost of 
that transportation does not exceed the cost of roundtrip 
transportation to the institution normally attended.

          Subtitle D--Retirement and Survivor Benefit Matters

 Section 641--Contingent Authority for Concurrent Receipt of Military 
           Retired Pay and Veterans' Disability Compensation

    This section would authorize retirement qualified members 
of the uniformed services to receive Department of Veterans 
Affairs (VA) disability compensation without a reduction in 
retired pay. In the case of a member who receives a disability 
retirement, the section would allow the retired pay to be 
reduced, but only to the extent that the member's retired pay 
exceeds the amount of retired pay to which the member would 
have been entitled based solely on the member's years of 
service. The effective date of the section would be contingent 
upon completing both of the actions outlined below.
          (1) The President must submit a legislative proposal 
        in an annual budget request that fully offsets the 
        ``PayGo'' costs of the initiative.
          (2) Following the submission of the legislative 
        initiative by the President, Congress must enact 
        legislation with the express purpose of offsetting the 
        ``PayGo'' costs of the initiative.
    The committee is opposed to reducing military members' 
retired pay to offset the receipt of compensation for service 
connected disabilities paid by the VA. The committee believes 
that retirees are entitled to receive both the retired pay for 
which they contributed years of faithful service and the VA 
compensation for a service connected disability intended to 
recognize a lifelong limitation on earning potential.

                       Subtitle E--Other Matters

     Section 651--Funeral Honors Duty Allowance for Retired Members

    This section would authorize the secretaries of the 
military departments to pay retired members an allowance for 
performing funeral honors duty.

                   TITLE VII--HEALTH CARE PROVISIONS

                                OVERVIEW

    Enactment of the Floyd D. Spence National Defense 
Authorization Act of Fiscal Year 2001 (Public Law 106-398), 
brought with it the most significant expansion of health care 
benefits since implementation, in 1965, of the Civilian Health 
And Medical Program of the Uniformed Services. The committee 
commends the Secretary of Defense for the smooth implementation 
of the TRICARE Senior Pharmacy benefit, which will bring 
critically important prescription drugs to Medicare eligible 
military retirees and their eligible family members. The 
committee is aware that in fiscal year 2002 the Department of 
Defense must achieve an equally smooth implementation of the 
new benefits provided to Medicare eligible military retirees 
and their eligible beneficiaries under the TRICARE For Life 
program. With this in mind, the committee limited its 
recommended changes to TRICARE in fiscal year 2002 to only 
those needed to facilitate implementation of TRICARE For Life 
or to significantly improve already existing programs.
    The committee was gratified that the President's defense 
health budget request for fiscal year 2002 was based on more 
realistic cost and budgeting assumptions. This combined with a 
commitment to fully fund the Defense Health Program (DHP), 
including the significantly improved benefit, led to a $6 
billion, one-year increase in the DHP funding. Nevertheless, 
the committee remains concerned that funds appropriated for the 
DHP are disproportionately allocated toward purchasing care in 
the private sector while the direct care system of military 
treatment facilities continues to languish from a lack of 
investment in maintenance and repair of facilities. As a 
consequence, fewer eligible beneficiaries are able to receive 
the care they need in the venue they prefer, the military 
hospitals and clinics of the direct care system. The committee 
is concerned that this dearth of funding for the direct care 
system forces patients into the private sector further driving 
up the cost of the defense health program and severely limiting 
the resources available for treating patients in the direct 
care system. At the behest of the Under Secretary of Defense 
for Personnel and Readiness, the committee has, for the time 
being, refrained from segregating DHP funds authorized for the 
operations of military treatment facilities from those funds 
required to purchase care in the private sector. The committee 
expects to be kept informed of the Under Secretary's efforts to 
allocate defense health resources in a manner that will 
maximize the effectiveness of the entire DHP.
    The committee is pleased with the extent to which the 
defense health personnel in the office of the Secretary of 
Defense engaged the private non-governmental groups 
representing the interests of the beneficiaries of the military 
health care system during deliberations on the implementation 
of the TRICARE Senior Pharmacy and TRICARE For Life programs. 
The committee encourages the Secretary to continue to reach out 
to beneficiaries of the military health care system and to 
begin to seek similar participation from other key stakeholders 
including the Department of Defense's managed care support 
contractors. Early participation of the managed care support 
contractors could help avoid the unexpected budget overruns 
experienced for the last few years.
    The committee also notes the relatively minuscule efforts 
made by the Department of Defense and the Department of 
Veterans Affairs toward increasing medical resource sharing. 
While the committee requires some specific actions to improve 
sharing, the committee expects the Secretary of Defense to 
increase efforts with the Secretary of Veterans Affairs to seek 
more opportunities to maximize the use of all health care 
resources in providing services to beneficiaries of the two 
health care delivery systems keeping in mind the missions of 
the two Departments.

                       ITEMS OF SPECIAL INTEREST

       Health Care Benefits for Members of the Reserve Components

    The committee is aware that the TRICARE health benefits 
program is a valuable active component recruitment and 
retention tool and might be a useful tool in the recruitment 
and retention of national guard and reserve members. Therefore, 
the committee directs the Secretary of Defense to conduct a 
study of options for providing TRICARE benefits to all national 
guard and reserve personnel and their families. The study 
should evaluate, at a minimum, permitting national guard and 
reserve personnel to buy into the TRICARE standard level of 
benefits. In addition to determining the annual premium amount 
if national guard and reserve members paid the entire amount, 
the study should also consider the option of cost sharing the 
annual premium charge between the government and the military 
member and, alternatively, between the employer and the 
military member. The committee expects the Secretary of Defense 
to consider the views of national guard and reserve personnel 
and their families, the non-governmental groups representing 
the interests of members of the national guard and reserves, 
and the employers of national guard and reserve members. For 
each cost sharing option, the study should evaluate the 
propensity of both military members and employers to 
participate in the program. The report shall be submitted to 
the Senate Committee on Armed Services and the House Committee 
on Armed Services by March 31, 2002.

           Military Health Care System Information Management

    The committee notes and applauds the efforts made by the 
Department of Defense (DOD) to establish and modernize its 
medical-related clinical, cost, budget, and management 
information systems. The committee also notes that medicine and 
the unique missions of military medicine are changing rapidly 
and is interested in learning the state of the Department's 
information systems, any gaps or shortcomings in the data 
collected or its accuracy and timeliness, and new initiatives 
that need to be established to correct shortcomings identified. 
The committee directs the Secretary of Defense to undertake a 
comprehensive study of DOD medical data systems that are 
designed to facilitate and/or track management, clinical 
treatment, system performance evaluation, costs, manpower, and 
enrollment. The study should examine the capability of present 
and planned systems to meet stated goals and objectives, 
progress on implementing systems, shortcomings in existing 
systems, data systems necessary to implement the new TRICARE 
For Life benefit, and an assessment of the ability of the 
Department of Defense to exchange clinical and management 
information with other federal and state agencies and private 
sector health services providers in a timely and reliable 
manner. The committee directs the Secretary of Defense to 
undertake the study by engaging afederally funded research and 
development center with experience and expertise in information 
systems, military health care systems, and military affairs. The 
committee directs the Secretary of Defense to submit an interim report 
to the Senate Committee on Armed Services and the House Committee on 
Armed Services by March 29, 2002, and a final report to the Senate 
Committee on Armed Services and the House Committee on Armed Services 
by March 31, 2003.

 North Chicago Department of Veterans Affairs Medical Center and Naval 
                    Hospital, Great Lakes, Illinois

    The committee notes the current resource sharing agreement 
between the North Chicago Veterans Affairs Medical Center 
(NCVAMC) and the Naval Hospital, Great Lakes, Illinois (NHGL). 
These two facilities are in close proximity and offer 
significant additional opportunities to share services, 
programs, and facilities. The Department of the Navy is engaged 
in conducting an economic analysis of the potential requirement 
for a modern facility to replace the aging NHGL. The Department 
of Veterans Affairs has an underused inpatient facility at the 
NCVAMC. The committee directs the Secretary of the Navy and the 
Secretary of Veterans Affairs to develop a plan to jointly make 
maximum use of the NCVAMC. The Secretary of the Navy and the 
Secretary of Veterans Affairs shall consult on further 
development of joint health care delivery infrastructure, 
including any future option to replace the NHGL, or to renovate 
the NCVAMC to better accommodate needs of the Navy to support 
the Great Lakes Naval Training Station's health care needs. If 
the two Secretaries determine to further renovate the NCVAMC or 
propose construction of a new facility, the committee expects 
these future health care facilities to be jointly operated by 
the Department of Veterans Affairs and the United States Navy.

                          TRICARE in Illinois

    The committee notes that many TRICARE beneficiaries 
enrolled for their care in the area of Naval Training Center, 
Great Lakes, Illinois, are having difficulty securing specialty 
care under TRICARE. The committee is concerned that many 
beneficiaries must resort to seeking care outside of the state 
of Illinois because of the lack of a robust network of 
specialty care providers willing to provide services under 
TRICARE in Illinois. The committee directs the Secretary of 
Defense to report to the Senate Committee on Armed Services and 
the House Committee on Armed Services by March 31, 2002, on 
actions taken to augment the Northern Illinois TRICARE provider 
network and the extent to which the dearth of network specialty 
providers has been relieved.

                         LEGISLATIVE PROVISIONS

                      Subtitle A--TRICARE Program

   Section 701--Implementing Cost-Effective Payment Rates Under the 
                            TRICARE Program

    This section would implement reforms of TRICARE payment 
methods to bring consistency of payment methods to all TRICARE 
programs. The section would require the Secretary of Defense to 
base TRICARE program payment rates on payment rates used by the 
Medicare program, or similar rates based on Medicare payment 
methods. The payment rates would apply to health care services 
for civilian sector institutional and other non-institutional 
providers, except where the Secretary of Defense determines the 
rates to be impractical. The section would also prohibit 
balance billing of beneficiaries by institutional providers for 
any amount in excess of the CHAMPUS/TRICARE payment amount, and 
limit balance billing by non-institutional providers to the 15% 
rate allowed by Medicare.

 Section 702--Waiver of Nonavailability Statement or Preauthorization 
                              Requirement

    This section would amend section 721 of the National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398) by requiring the Secretary of Defense to notify the Senate 
Committee on Armed Services and the House Committee on Armed 
Services at least sixty days prior to implementing a prior 
authorization requirement under section 721 and mandating a 
maximum period for exception decisions made under the 
authority. The section would also prescribe the geographic 
limits affected by any specific prior authorization 
requirement.

   Section 703--Improvements in Administration of the TRICARE Program

    This section would authorize the Secretary of Defense to 
enter into new contracts for support of delivery of health care 
under TRICARE by providing flexibility in the choice of 
contract vehicle. The section would also permit the Secretary 
of Defense to reduce the minimum nine-month start-up for new 
contracts. The committee recognizes that the health care 
environment in the United States has changed significantly 
since the first managed care support contracts were awarded in 
1994 and that, as a result, the Secretary of Defense may 
require more flexibility in selecting the most effective 
contract type for future managed care support contracts.

        Section 704--Sub-Acute and Long-Term Care Program Reform

    This section would reform the Department of Defense Program 
for care provided in skilled nursing facilities or at home. 
Full implementation of the new TRICARE For Life benefits makes 
it essential to coordinate the benefits structure provided in 
skilled nursing facilities and through home health programs. 
The committee is also aware of the unique challenges faced by 
active duty families supporting a severely disabled family 
memberand includes a subsection which would significantly 
enhance active duty families' ability to care for these family members, 
especially when the active duty sponsor is deployed. The committee is 
also interested in the future relationship between the TRICARE sub-
acute care benefit and benefits offered under the Long Term Care 
Security Act (Public Law 106-265). The section would require the 
Secretary of Defense to report to the Senate Committee on Armed 
Services and the House Committee on Armed Services on the feasibility 
and desirability of establishing direct benefit linkages between 
TRICARE and the Long Term Care Security Act.

Section 705--Reimbursement of Travel Expenses of a Parent, Guardian or 
        Responsible Family Member of a Minor Covered Beneficiary

    This section would amend section 1074i of title 10, United 
States Code, by requiring the Secretary of Defense to reimburse 
the reasonable travel expenses of a parent or guardian of a 
minor who is required to travel for specialty care services 
outside the limits specified in section 1074i of title 10, 
United States Code. The committee is concerned that the 
original provision could be interpreted in a way that would not 
authorize reimbursement for the reasonable travel expenses of a 
parent or guardian of a minor eligible beneficiary.

                       Subtitle B--Other Matters

Section 711--Prohibition Against Requiring Military Retirees to Receive 
          Health Care Solely Through the Department of Defense

    This section would prohibit the Secretary of Defense from 
implementing a policy of forced choice enrollment by military 
retirees who are eligible for care in the health care 
facilities and programs of both the Department of Defense and 
the Department of Veterans Affairs. The committee was pleased 
with the establishment of the President's Task Force to Improve 
Health Care Delivery for Our Nation's Veterans (Task Force) and 
expects the Task Force to address the issue of mandatory 
enrollment during its deliberations and in the final report. 
Therefore, the committee believes any mandatory enrollment 
policy implemented prior to the Task Force's deliberations and 
report would be premature.

           Section 712--Trauma and Medical Care Pilot Program

    This section would direct the Secretary of Defense to 
conduct a pilot program under which the Brooke Army Medical 
Center and the Wilford Hall Air Force Medical Center in San 
Antonio, Texas, (the medical centers) may charge civilians who 
are not covered TRICARE beneficiaries, fees representing the 
actual costs of trauma and other medical care provided. The 
section would also permit the medical centers to use the funds 
collected under the program for various activities related to 
trauma training and operation of the medical centers.

        Section 713--Enhancement of Medical Product Development

    This section would amend section 980 of title 10, United 
States Code, by authorizing the Secretary of Defense to waive 
the prohibition against the use of human subjects in research 
in order to advance research into the treatment of combat 
casualties. The committee is concerned that current 
restrictions on the use of human subjects in medical research 
severely limits the ability to conduct focused trauma treatment 
research. As a result, many products with direct applicability 
to the treatment of battle casualties are precluded from the 
kinds of tests required for approval of the Food and Drug 
Administration.

           Section 714--Repeal of Obsolete Report Requirement

    This section would repeal a reporting requirement in the 
National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 1-U.S.C. 1074g note) by striking subsection 701(d). 
The committee notes that the reporting requirement was 
superseded by enactment of the TRICARE Senior Pharmacy program.

 Section 715--Clarifications and Improvements Regarding the Department 
         of Defense Medicare-Eligible Retiree Health Care Fund

    This section would clarify that the Department of Defense 
Medicare-Eligible Retiree Health Care Fund (Fund) covers all 
health care programs and activities of the Department of 
Defense through which health care services are provided to 
Medicare-eligible military retirees and their eligible 
dependents, including those programs and activities purchased 
in the private sector and the programs and activities through 
which health care services are provided in the direct care 
system of military treatment facilities. The section would also 
clarify the applicability of the Fund to the Coast Guard, the 
commissioned corps of the Public Health Service, and the 
commissioned corps of the National Oceanic and Atmospheric 
Administration. The section would also authorize the Secretary 
of Defense to enter into agreements with the service 
secretaries responsible for the other uniformed services to 
arrange for contributions into the Fund by the other service 
secretaries.

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

                       ITEMS OF SPECIAL INTEREST

                   Extraordinary Contractual Actions

    The committee is concerned with the Department of Defense 
(DOD) use of the authority granted in section 1431 of title 50, 
United States Code, to enter into contracts when it is deemed 
that such contract would facilitate the national defense. 
Executive Order 10789, expands upon the statutory authority by 
stating that contractual provisions which provide that the 
United States will hold harmless and indemnify the contractor 
against any claims or losses shall apply only to claims or 
losses arising out of risks that the contract defines as 
unusually hazardous or nuclear in nature. In December 2000, DOD 
entered into an indemnification contract with an entity 
providing satellite communications and agreed to indemnify the 
contractor against claims for damages from unusually hazardous 
risk associated with certain satellites. It is the committee's 
understanding that the unusually hazardous risk is the concern 
that some satellites would to fall out of orbit and descend 
into the Earth's atmosphere. The committee questions whether 
this concern meets the required standard of an unusually 
hazardous or nuclear risk. In addition, the committee notes 
that the contractor relies upon the same satellite 
constellation to provide military and commercial 
communications. In other words, the DOD is providing 
indemnification to a contractor for work that is not unique or 
solely provided to DOD. The committee expects that DOD will, in 
the future, use the available statutory discretion with greater 
prudence.

                         LEGISLATIVE PROVISIONS

             Subtitle A--Acquisition Policy and Management

                  Section 801--Acquisition Milestones

    This section would amend various sections of title 10, 
United States Code, to update references to the phases of 
acquisition to reflect changes in Department of Defense 
acquisition policy.

           Section 802--Acquisition Workforce Qualifications

    This section would amend section 1724 of title 10, United 
States Code, to authorize the Secretary of Defense to hire an 
individual into the acquisition workforce on a three-year 
probationary period if the individual has a college degree or 
24 semester credit hours in business. This probationary period 
would allow the individual to complete the education 
requirements defined in title 10, United States Code. This 
section would also provide an additional exception to the 
education requirements for those individuals in the contingency 
contracting force. This section would also clarify the 
committee's original intent to grandfather all employment 
qualifications in effect prior to enactment of section 808 of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398).

    Section 803--Two-Year Extension of Program Applying Simplified 
                 Procedures to Certain Commercial Items

    This section would extend for two years a pilot program 
authorizing the Secretary of Defense to use simplified 
acquisition procedures for the purchase of commercial items not 
greater than $5.0 million.

Section 804--Contracts for Services to Be Performed Outside the United 
                                 States

    This section would authorize the Secretary of Defense to 
contract with individuals or organizations to perform services 
in countries with which the United States has no Status of 
Forces Agreement (SOFA). In nations with which the United 
States has negotiated a SOFA, that agreement establishes the 
procedures by which the Secretary of Defense employs foreign 
nationals in support of the armed forces. This provision would 
provide the Secretary of Defense with the authority to contract 
for local national labor in the absence of a SOFA.

   Section 805--Codification and Modification of ``Berry Amendment'' 
                              Requirements

    This section would codify the Department of Defense (DOD) 
domestic source requirements commonly known as the ``Berry 
Amendment''. The provision would also require DOD to notify 
Congress and the public of a decision to waive the domestic 
source requirement. The waiver would not come into effect until 
30 days after congressional notification.

                Subtitle B--Erroneous Payments Recovery

                        Section 811--Short Title

    This section would name the subtitle as the ``Erroneous 
Payments Recovery Act of 2001.''

  Section 812--Identification of Errors Made by Executive Agencies in 
    Payments to Contractors and Recovery of Amounts Erroneously Paid

    This section would require executive agencies to conduct a 
program to recover erroneously made payments. Each agency may 
determine the types of contracts for which recovery activities 
are most appropriate, based on policy guidelines and procedures 
the Office of Management and Budget issues.

               Section 813-Disposition of Recovered Funds

    This section would authorize funds collected under a 
recovery audit to be available to reimburse executive agencies' 
and auditors' costs. This section would also authorize a 
portion of the returned funds to be available to support a 
management improvement program.

               Section 814--Sources of Recovery Services

    This section would ensure that executive agencies consider 
various auditing services within both government and the 
private sector when carrying out a recovery audit program.

              Section 815--Management Improvement Programs

    This section would provide an executive agency the option 
to carry out a management improvement program in order to 
address problems that contribute to the occurrence of erroneous 
payments.

                          Section 816--Reports

    This section would require the Director of the Office of 
Management and Budget to submit an annual report to Congress 
evaluating executive agencies' recovery audits, the costs the 
agencies have incurred, and the amount actually recovered.

      Section 817--Relationship to Authority of Inspectors General

    This section would ensure that nothing in this subtitle 
impairs the authority of an inspector general.

                    Section 818--Privacy Protections

    This section would prohibit a nongovernmental entity from 
disclosing the identity of an individual for any purpose other 
than auditing activity.

                        Section 819--Definition

    This section would define an executive agency.

      TITLE IX--DEPARMTENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       ITEMS OF SPECIAL INTEREST

                   Regional Centers and China Center

    The committee notes the interest of the Department of 
Defense in consolidating the legislative authorities under 
which it operates five regional centers for security studies. 
However, the Department's proposal would go beyond merely 
consolidating existing authorities and would broaden and expand 
the authority to operate some of these centers by allowing DOD 
to absorb additional costs that are currently not borne by the 
Department. The committee does not support this action.
    Moreover, the committee is concerned about the policy 
guidance given to the Asia-Pacific Center for Security Studies 
on the status of Taiwanese nationals participating in 
conferences with representatives from the People's Republic of 
China. Accordingly, the committee directs the Secretary to 
report to the committee no later than December 31, 2001 on the 
guidance issued by the Department to the Asia-Pacific Center 
for Security Studies regarding contact with officials from 
Taiwan and the People's Republic of China and the participation 
of Chinese and Taiwanese nationals in conferences, symposia, 
and other activities of the center. In addition, the report 
should include a description of how the Department's guidance 
is being implemented by the center.
    Finally, the committee notes that the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) 
established a Center for the Study of Chinese Military Affairs 
and required the Department to submit a report to the committee 
by February 1, 2001 detailing the proposed budget and timetable 
for initial and full operations of the center. This report has 
not yet been submitted. The committee is concerned that the 
Department has not acted expeditiously to implement the 
requirements established in Public Law 106-65. Consequently, 
the committee directs the Secretary to submit the required 
report expeditiously, along with an explanation of the reasons 
for the delay and any recommendations the Secretary has for 
ensuring the viability of the center.

                         LEGISLATIVE PROVISIONS

  Section 901--Further Reductions in Defense Acquisition and Support 
                               Workforce

    This section would reduce the number of personnel assigned 
to the defense acquisition and support workforce by 13,000 in 
fiscal year 2002.
    The committee continues to believe that the Department of 
Defense must significantly reorganize and streamline its 
acquisition structure for a number of reasons. First, the 
military services' priorities of interoperability and jointness 
and the increasing sophistication of systems will require 
advances in the way weapons systems are acquired. Second, at a 
time of tightening budget constraints, the Department must 
ensure that combat needs are not crowded out by bloated support 
costs, including excessive overhead costs from the acquisition 
workforce.
    The committee believes that personnel reductions must be a 
significant part of any effort to bring the acquisition support 
costs of the Department in line with the resources dedicated to 
its combat missions. However, the committee is also concerned 
with the trend since the mid-1990s to outsource acquisition 
functions while reducing the number of personnel in acquisition 
organizations. According to the report required by section 343 
of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65), the Department paid 734,000 full-time 
contractors in fiscal year 1999 to perform many acquisition 
functions at the same time it maintained over 300,000 civilian 
and military employees in acquisition assignments. The 
committee is disturbed by this trend and believes it must be 
addressed as part of a fundamental effort to reform the defense 
acquisition system.

    Section 902--Sense of Congress on Establishment of an Office of 
              Transformation in the Department of Defense

    This section would express the sense of Congress on the 
Administration's decision to establish an Office of 
Transformation within the Department of Defense (DOD). The 
committee believes the armed services must implement 
transformation to meet operational challenges and exploit 
opportunities resulting from changes in the threat environment 
and the emergence of new technologies. The committee notes and 
supports steps that the services have taken so far to promote 
transformation. However, the committee also notes that the 
findings of a 1999 Defense Science Board report on 
transformation concluded that there was no overall DOD vision 
for transformation, no ``road map'', no metrics to measure 
progress, and little sense of urgency. The establishment of an 
Office of Transformation will begin to address these 
shortfalls.
    To assure the effectiveness of the Office of 
Transformation, the committee believes three key elements must 
be in place: The mission and functions of the office must be 
adequately defined; the Director of Transformation must have 
direct access to the Secretary of Defense; and the Director 
should have control of sufficient funding to sponsor key 
transformation efforts.
    The committee believes that the mission of the Director of 
Transformation should be to develop force transformation 
strategies ensuring linkage to the military strategic functions 
of preparing the future military and dissuading potential 
military competitors. The Director should make recommendations 
to the Secretary for ensuring a continuous and broadly focused 
transformation process. The Director should also collaborate on 
service and joint acquisition and experimentation efforts, 
selectively fund experimentation efforts, identify promising 
operational concepts and technologies, and sponsor other 
transformation activities as appropriate.
    The committee believes the Director should have control of 
funding adequate for sponsoring selective prototyping efforts, 
wargames, and studies and analyses, as well as for appropriate 
staffing of the Office of Transformation. To accomplish these 
tasks, the committee believes that it is critical that this 
office be provided sufficient budgetary resources to accomplish 
its mission.

    Section 903--Revised Joint Report On Establishment of National 
             Collaborative Information Analysis Capability

    This section would require the Secretary of Defense and the 
Director of Central Intelligence to submit a revised joint 
report assessing the alternatives for the establishment of a 
national collaborative information analysis capability. The 
report, which would include draft legislation required to 
establish the preferred architecture, would be required to be 
submitted coincident with the submission of the budget request 
for fiscal year 2003.

 Section 904--Elimination of Triennial Report by Chairman of the Joint 
       Chiefs of Staff on Roles and Missions of the Armed Forces

    This section would amend title 10 to consolidate reporting 
requirements related to the roles of the Chairman of the Joint 
Chiefs of Staff and missions of the armed forces. The current 
law requires that the Chairman review the assignment of the 
roles and missions of the armed forces every three years, or at 
the request of the President or the Secretary of Defense, and 
to prepare a separate report, which is not required to be 
submitted to Congress. This section would eliminate the current 
reporting requirement, and require that the Department of 
Defense's assessment of the roles and missions of the armed 
services be conducted as part of the Quadrennial Defense Review 
(QDR) process. The results of the assessment would be included 
in the final report of the QDR and submitted to Congress.

Section 905--Repeal of Requirement for Semiannual Reports Through March 
       2003 on Activities of Joint Requirements Oversight Council

    This section would repeal section 916 of the National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398) that requires the Chairman of the Joint Chiefs of Staff to 
submit a semiannual report to the Senate Committee on Armed 
Services and the House Committee on Armed Services on specific 
activities of the Joint Requirements Oversight Council through 
March 1, 2003.

     Section 906--Correction of References to Air Mobility Command

    This section would change all references to ``Military 
Airlift Command'' contained in title 10 and title 37, United 
States Code, to ``Air Mobility Command.''

     Section 907--Organizational Alignment Change for Director for 
                         Expeditionary Warfare

    This section would amend section 5038(a) of title 10, 
United States Code, with respect to the specific office of the 
Deputy Chief of Naval Operations within which the Director for 
Expeditionary Warfare shall be located.

                      TITLE X--GENERAL PROVISIONS

                       ITEMS OF SPECIAL INTEREST

                      Arms Control Implementation

    The budget request contained $228.5 million for arms 
control implementation activities, representing a slight 
increase from the fiscal year 2001 appropriated level of $223.6 
million. The committee recommends $223.6 million, a decrease of 
$4.9 million from the budget request.
    The budget request contained an increase in the operations 
and maintenance accounts for the Defense Threat Reduction 
Agency's arms control implementation program of $18.7 million 
over the fiscal year 2001 appropriated level. This reflects a 
30 percent increase. The committee recommends a $4.9 million 
reduction to the request without prejudice.

                        Counter-Drug Activities

                                Overview

    The Department of Defense budget request for fiscal year 
2002 for counter-drug activities sustains the Department's 
level of effort in this important area by providing aircraft 
and ships for detection and monitoring, military personnel, 
intelligence support, communications systems, and training to 
domestic and foreign law enforcement agencies. The committee is 
aware that the Department is currently considering significant 
changes to its counter-drug program as part of a broader 
assessment of non-traditional activities. While the committee 
continues to support a robust counter-drug role for the 
Department, the committee believes that such a review is 
appropriate. However, the committee directs the Secretary of 
Defense to report in advance of any reorganization initiatives 
in this area proposed to be implemented during fiscal year 
2002.
    The Department of Defense budget request for fiscal year 
2002 contained $820.4 million for drug interdiction and 
counter-drug activities, in addition to $166.8 million for 
operational tempo, which is included within the operating 
budgets of the military services. This represents a net 
decrease of $161.2 million from the fiscal year 2001 budget in 
execution primarily as a result of $184.1 million provided to 
the Department in emergency supplemental appropriations for 
Colombia contained in the Emergency Supplemental Act, 2000 
(Public Law 106-246), which was largely obligated in fiscal 
year 2001.
    The committee recommends an authorization for fiscal year 
2002 Department of Defense counter-drug activities as follows:

                         [Dollars in thousands]

FY02 Drug Interdiction & Counter-Drug Request.................  $820,381
    Educate America's Youth...................................    25,262
    Increase Safety of Citizens...............................    78,489
    Reduce Health & Social Costs..............................    77,650
    Shield America's Frontiers................................   334,459
    Break Drug Sources of Supply..............................   304,521
    Recommended Decreases:....................................
    Tethered Aerostat Radar System............................     5,900
    Peru Support..............................................     4,000
    Counter-Drug Tanker Operations............................     1,800
    Recommended Increases:....................................
    Operation Caper Focus.....................................     5,000
    Southwest Border Fence....................................     6,700
Recommendation................................................  $820,381

                       Items of Special Interest

Counter-drug tanker operations

    The budget request contained $2.0 million for KC-135 tanker 
operations in support of counter-drug E-3 Airborne Early 
Warning and Control System (AWACS) missions. The committee 
notes that the prior year budget request was only $200,000 for 
this activity. Accordingly, the committee recommends a decrease 
of $1.8 million for this activity.

Operation Caper Focus

    The committee is aware that the fiscal year 2002 budget 
request does not fully support Operation Caper Focus, an 
important initiative to disrupt maritime narcotics trafficking 
in the Eastern Pacific. The committee continues to support this 
important operation and, therefore, recommends an increase of 
$5.0 million for this purpose.

Peru support

    The budget request contained $9.2 million for Peru for 
counter-drug support under section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85). The 
committee is aware that not more than $5.0 million will be 
obligated in fiscal year 2001 for Peru support under section 
1033 and, therefore, recommends a decrease of $4.0 million. The 
committee also notes that the authority under section 1033 with 
respect to Peru expires at the end of fiscal year 2002.

Southwest border fence

    The Southwest border continues to be a heavily utilized 
drug trafficking corridor into the United States. The committee 
continues to support fence and road-building activities in this 
area. Accordingly, the committee recommends an increase of $6.7 
million for this purpose.

Tethered Aerostat Radar System

    The budget request contained $42.9 million for the Tethered 
Aerostat Radar System (TARS). The committee supports the 
transfer of the TARS program to another federal agency in 
fiscal year 2002 and, therefore, directs that no fiscal year 
2002 funding be used for purposes of facility enhancement or 
aerostat modernization. Accordingly, the committee recommends a 
decrease of $5.9 million in the TARS program.

                             OTHER MATTERS

          Classification of Foreign Military Training Reports

    The committee is aware that the reports required by section 
2011 of title 10, United States Code, and section 2416 of title 
22, United States Code, concerning Department of Defense 
training of foreign military personnel are classified due to 
the increasing amount of detail with respect to the U.S. 
military units involved. The committee understands the basis 
for a certain level of classification but also believes that 
the information contained in these reports regarding foreign 
military units trained is important and should, where 
appropriate, be made available in an unclassified form to the 
general public.

                Counter-Drug Forward Operating Locations

    The committee is aware that the requirement for two 
Caribbean forward operating locations (FOLs) at Curacao and 
Aruba, Netherlands Antilles, has been impacted by the decision 
of the Department of Defense to no longer support Air National 
Guard F-16 deployments to Curacao. The Emergency Supplemental 
Act, 2000 (Public Law 106-246) contained $43.9 million for 
infrastructure improvements at Curacao including airfield 
pavement improvements, installation of aircraft rinse 
facilities, and construction of a maintenance hanger. As a 
result of the departure of Air National Guard aircraft from 
Curacao, the committee believes the Curacao FOL will be 
sufficient to accommodate Customs Service aircraft and 
personnel that currently operate from Aruba. Consequently, the 
committee recommends a provision (sec. 2408) that would 
prohibit military construction expenditures to develop Aruba as 
a Forward Operating Location.

                Information Security Scholarship Program

    The committee is concerned that the Department of Defense 
has not developed criteria to evaluate the information 
assurance programs at institutions of higher education not 
designated as Centers of Academic Excellence in Information 
Assurance Education. The Department currently requires 
individuals who have computer and network security skills 
necessary to meet specific information security assurance 
requirements. Increasing the number of eligible schools will 
result in additional qualified individuals. The committee urges 
the Department to develop the criteria necessary to allow 
qualified institutions of higher education to participate in 
the Information Security Scholarship Program.

Potential Reallocation of Radio Frequency Spectrum for Third Generation 
                     Mobile Wireless Communications

    Section 1062 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) amended the National 
Telecommunications and Information Administration Act (section 
901 et. seq. of title 47 United States Code) to provide that 
the DOD shall not surrender the use of a band of frequencies 
for which it is the primary user unless an alternative band or 
bands of frequencies is provided as a replacement and the 
Secretaries of Commerce and Defense, and the Chairman of the 
Joint Chiefs of Staff certify that the alternative band or 
bands provides comparable technical characteristics to maintain 
essential military capability. Section 1064 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105-261) requires the private sector to pay 
relocation costs, in advance, to incumbent Federal entities 
required to relocate to accommodate commercial uses.
    The committee notes the growth of mobile wireless 
telecommunications and the development of third generation (3G) 
mobile wireless communications services. An October 2000 
Presidential executive memorandum stated the need and urgency 
for the United States to select radio frequency spectrum (from 
frequency bands previously identified for consideration by the 
World Radiocommunication Conference 2000) to satisfy the future 
needs of citizens and business for mobile voice, high-speed 
data, and Internet-accessible wireless capability and directed 
Federal agencies to carry out the selection of the spectrum. 
The National Telecommunications and Information Administration 
(NTIA) and the Federal Communications Commission have 
identified the 1755-1850 MHz and 2500-2690 MHz bands as 
candidates.
    The committee notes that the telecommunications and 
Internet industry has launched a campaign for reassignment of 
the frequency bands in question from primary use by the federal 
government to primary use (if not exclusive use) by the private 
sector. The industry is particularly interested in the 1755-
1850 MHz band because of action by European countries to begin 
3G operations in this band. A potential business base of as 
much as $500 billion is anticipated. Draft legislation that has 
been proposed that would call for the federal government to 
vacate at least 60 MHz of the 1755-1850 MHz band by 2004 and 
the remainder of the band by 2008.
    The committee also notes that the Department of Defense 
(DOD) uses the 1755-1780 MHz band for critical national defense 
systems, including satellite control, precision guided weapons 
data links, tactical radio relay, precision guided munitions 
and combat training systems. The Department argues that 
uncoordinated sharing of the frequency band with other users is 
not feasible. The costs of relocating DOD systems from the band 
to another suitable band (if such a band could be identified) 
are estimated at $2-4 billion and relocation could not be 
accomplished until 2010 and beyond for most DOD non-space 
systems and until 2017 and beyond for legacy space systems (as 
late as 2030 for some satellites).
    The committee further notes the General Accounting Office 
report ``Defense Spectrum Management: More Analysis Needed to 
Support Spectrum Use Decision for the 1755 to 1850 MHz Band,'' 
GAO-01-795, July 2001. The report makes recommendations to the 
Secretary of Defense and the Secretary of Commerce to more 
accurately assess the potential impact of reallocation of 
frequency band and provide thetime and guidance to complete the 
required planning and analysis before any decision on reallocation of 
the band might be made.
    The committee recognizes the competing issues of national 
security and economic interest that affect the proposals for 
potential reallocation of radio frequency spectrum currently 
reserved for use by the Department of Defense and other Federal 
agencies to 3G mobile wireless communication services. However, 
the committee believes that the first priority for the federal 
government is to ensure the national security of the United 
States and its people.
    The committee reemphasizes the requirement contained in 
Section 1062 of Public Law 106-65 that alternate radio 
frequency spectrum with comparable technical characteristics to 
maintain essential military capability operational capabilities 
must be available for use by the DOD, before frequency 
currently reserved for use by the DOD can be reallocated. 
Noting the GAO report that a decision to reallocate the 1755-
1850 MHz band is premature and that more adequate information 
is required before such a decision might be made, the committee 
intends to carefully review this matter and take further 
legislative action as necessary to ensure that national 
security interests are not compromised in this critical area.

                         LEGISLATIVE PROVISIONS

                     Subtitle A--Financial Matters

                    Section 1001--Transfer Authority

    This section would provide fiscal year 2002 transfer 
authority to the Department of Defense for amounts up to $2.0 
billion.

            Section 1002--Incorporation of Classified Annex

    This section would incorporate the classified annex into 
the National Defense Authorization Act for Fiscal Year 2002.

 Section 1003--Limitation on Funds for Bosnia and Kosovo Peacekeeping 
                    Operations for Fiscal Year 2002

    This section would limit the amount of funds available for 
peacekeeping operations in Bosnia and Kosovo to the amounts 
contained in the budget request, $1,315,600,000 for operations 
in Bosnia and $1,528,600,000 for operations in Kosovo. This 
section would authorize the president to waive the limitation 
after submitting to the Congress a written certification that 
the waiver is necessary to the national security interests of 
the United States. This section would also require a written 
certification that the exercise of the waiver will not 
adversely affect the readiness of U.S. military forces; a 
report setting forth the reasons for the waiver, a discussion 
of the impact of the involvement of U.S. military forces in 
Balkans peacekeeping operations on U.S. military readiness; and 
a supplemental appropriations request for the Department of 
Defense for fiscal year 2002 costs associated with U.S. 
military forces participating in, or supporting, Bosnia or 
Kosovo peacekeeping operations.

 Section 1004--Increase in Limitations on Administrative Authority of 
                  the Navy to Settle Admiralty Claims

    This section would increase the administrative authority of 
the Navy to settle admiralty claims. It would authorize the 
Secretary of the Navy to settle, or compromise, and pay any and 
all admiralty claims against the United States amounting to not 
more than $15 million. Any claim exceeding $15 million would 
require the Navy to certify that claim to Congress. This 
section would further authorize the Secretary of the Navy to 
delegate his authority to settle claims to any person he 
designates when the amount paid is not more than $1 million. 
This section would also increase the amount the United States 
might receive from an admiralty claim to $15 million. It would 
further allow the Secretary of the Navy to delegate his 
authority to receive claims when that amount is not more than 
$1 million.

                       Subtitle B--Naval Vessels

   Section 1011--Revision in Types of Excess Naval Vessels for which 
      Approval by Law Is Required for Disposal to Foreign Nations

    This section would amend Section 7307 of title 10, United 
States Code to revise and clarify the circumstances under which 
the Navy must seek statutory authority in order to transfer or 
dispose of excess naval vessels. Current law requires Congress 
to enact legislation specifically authorizing a transfer to 
another nation of any ship exceeding 3,000 tons in weight or 
less than 20 years of age. If the ship is less than 3,000 tons 
in weight or over 20 years of age, the Secretary of the Navy is 
required to notify the Senate Committee on Armed Services and 
the House Committee on Armed Services of the proposed transfer 
and wait 30 in-session days before making the transfer. This 
section would permit the transfer of non-combatant naval 
vessels, as well as leased or loaned vessels previously 
authorized by Congress for transfer to a foreign nation without 
the requirement for a statutory enactment. The committee, for 
the purposes of this section, considers a combatant naval 
vessel to be a large, heavily armed ship that is designed 
primarily to engage enemy forces on the high seas. This would 
include battleships, cruisers, destroyers, frigates, 
submarines, and aircraft carriers. The committee considers non-
combatants to include logistics and combat support ships such 
as T-AO's (oilers), LST's, YTB's, and T-AGOS. This change will 
provide the Navy with greater flexibility in transferring 
surplus and excess ships, thereby reducing the Navy's cost of 
maintenance and safe stowage.

                  Subtitle C--Counter-Drug Activities

 Section 1021--Extension of Reporting Requirement Regarding Department 
   of Defense Expenditures to Support Foreign Counter-Drug Activities

    This section would extend the reporting requirement 
contained in section 1022 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398) that requires the Secretary of Defense to submit a report 
to the congressional defense committees on the total amount, 
type and legal basis for foreign counter-drug assistance 
provided by the Department of Defense. This section would 
require the Secretary to report to Congress by April 15, 2002, 
on expenditures made during fiscal year 2001.

Section 1022--Authority to Transfer Tracker Aircraft Currently Used by 
                 Armed Forces for Counter-Drug Purposes

    This section would authorize the Secretary of Defense to 
transfer all Tracker aircraft to another federal agency in 
fiscal year 2002. Should the Secretary not exercise the 
transfer authority provided in this section by September 30, 
2002, this section would prohibit the Department of Defense 
from using the Tracker aircraft for counter-drug purposes after 
that date.

  Section 1023--Authority to Transfer Tethered Aerostat Radar System 
        Currently Used by Armed Forces for Counter-Drug Purposes

    This section would provide the authority for the Secretary 
of Defense to transfer all Tethered Aerostat Radar System 
(TARS) assets to another federal agency in fiscal year 2002. 
Should the Secretary not exercise the transfer authority 
provided in this section by September 30, 2002, this section 
would prohibit the Department of Defense from using the 
Tethered Aerostat Radar System for counter-drug purposes after 
that date.

                          Subtitle D--Reports

    Section 1031--Requirement that Department of Defense Reports to 
             Congress be Accompanied by Electronic Version

    This section would amend chapter 23 of title 10, United 
States Code, to require the Department of Defense to submit to 
Congress electronic versions of all unclassified required 
reports, to include certifications, notifications, or other 
written communications. The committee believes that this 
requirement is consistent with the Department's intention to 
make greater use of electronic media and will facilitate 
broader dissemination of, and wider access to, official DOD 
information.

Section 1032--Report on Department of Defense Role in Homeland Security 
                                Matters

    This section would require the Secretary of Defense to 
conduct a study on the appropriate role of the Department of 
Defense in homeland security matters and to submit the results 
of that study to Congress at the same time the President 
submits the budget request for fiscal year 2003.

 Section 1033--Revision of Annual Report to Congress on National Guard 
                    and Reserve Component Equipment

    This section would amend section 10541 of title 10, United 
States Code, to modify the timing and contents of the Secretary 
of Defense's annual report to Congress on national guard and 
reserve equipment.

                       Subtitle E--Other Matters

          Section 1041--Department of Defense Gift Authorities

    This section would clarify items which may be loaned or 
given under section 7545 of title 10, United States Code.

     Section 1042--Termination of Referendum Requirement Regarding 
 Continuation of Military Training on Island of Vieques, Puerto Rico, 
    and Imposition of Additional Conditions on Closure of Live-Fire 
                             Training Range

    This section would repeal the requirement, contained in 
sections 1503, 1504, and 1505 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398), for a referendum on the future of U.S. military training 
on the island of Vieques, Puerto Rico. This section would also 
allow the Secretary of the Navy to cease training exercises on 
Vieques provided the Chief of Naval Operations and Commandant 
of the Marine Corps certify that an alternative training 
facility is available. This section would require that the new 
facility be available and fully capable of supporting pre-
deployment training immediately upon the cessation of 
operations on Vieques. In order to make the certification, this 
section would also require that the new facility be able to 
support an equivalent or superior level of training for U.S. 
Navy and Marine Corps units on the east coast. This training is 
defined as the ability to support, at a single location, 
coordinated live-fire operations including the simultaneous use 
of large-scale tactical airstrikes, naval surface fire support, 
artillery, and amphibious landing operations, as were conducted 
on Vieques prior to April 19, 1999. This section would also 
require that if training operations cease on Vieques, the Navy 
retain the facility on the eastern end of the island in the 
event it must be reactivated for use as a training range in 
time of national emergency, and allow the Navy to enter into an 
agreement with the Department of the Interior for the 
management of that land.

 Section 1043--Repeal of Limitation on Reductions in Peacekeeper ICBM 
                                Missiles

    This section would modify section 1302 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85), as amended, to allow for the retirement of the Peacekeeper 
ICBM force.

  Section 1044--Sense of Congress on the Importance of the Kwajalein 
 Missile Range/Ronald Reagan Defense Initiative Test Site at Kwajalein 
                                 Atoll

    This section would express the sense of Congress that the 
missile defense range and test site on Kwajalein Atoll is of 
vital importance to the security of the United States and that 
the Department of Defense should work to continue its long-term 
relationship with this test site.

 Section 1045--Transfer of Vietnam Era F-4 Aircraft to Nonprofit Museum

    This section would permit the Secretary of the Air Force to 
convey, without consideration, one surplus F-4 aircraft to a 
nonprofit museum. This section would also require that any 
aircraft transferred under this authority would be completely 
demilitarized prior to transfer and that the conveyance would 
be at no cost to the United States.

                  Section 1046--Bomber Force Structure

    This section would prohibit the Department of Defense from 
retiring, dismantling, transferring, or reassigning any of the 
93 B-1B Lancer bombers in service as of June 1, 2001, until 
Congress has received a series of studies and reports. These 
reports include, the National Security Strategy, the 
Quadrennial Defense Review, the Secretary of Defense Annual 
Report to the President and the Congress, the Revised Nuclear 
Posture Review, a report from the Secretary of Defense on 
changes to the 1992 and 1995 bomber studies that warrant 
changes to the bomber fleet and plans regarding new missions 
for decommissioned B-1 units, a new Secretary of Defense bomber 
study on the role, force structure and cost effectiveness of 
the manned bomber in the future national security environment, 
and a General Accounting Office study on the same issues as the 
Secretary of Defense bomber study.
    The committee believes that the Department's request to 
reduce the B-1 fleet from 93 aircraft to 60 and consolidate the 
remaining B-1Bs at two operating bases was premature. This 
section would restore $100 million to the Air National Guard 
Operations and Maintenance Account, Budget Activity 1, Aircraft 
Operations line to keep the Air National Guard B-1s operational 
into fiscal year 2002 until the results of the various reports 
and studies have been analyzed. The committee expects that any 
bomber force structure modifications will be made in the 
context of the emerging security environment as outlined in 
these various documents.

            Section 1047--Technical and Clerical Amendments

    This section would make a number of technical and clerical 
amendments to existing law of a non-substantive basis.

                      TITLE XI--CIVILIAN PERSONNEL

                         LEGISLATIVE PROVISIONS

   Section 1101--Undergraduate Training Program for Employees of the 
                  National Imagery and Mapping Agency

    This section would authorize the National Imagery and 
Mapping Agency (NIMA) to establish an undergraduate training 
program to recruit employees with critical skills. The 
committee notes that the National Security Agency has had 
success with a similar program and expects that NIMA would use 
this new authority to recruit highly talented new personnel to 
the agency.

     Section 1102--Pilot Program for Payment of Retraining Expenses

    This section would authorize the Department of Defense 
(DOD) to establish a pilot program to pay retraining expenses 
for DOD employees scheduled for involuntary separation. Under 
the pilot program, the Secretary of Defense may pay retraining 
incentives to encourage private industry to hire and retrain 
displaced DOD employees.

  Section 1103--Payment of Expenses to Obtain Professional Credentials

    This section would authorize federal agencies to pay for 
employee credentials, professional licenses, and professional 
certification. The committee believes this new authority will 
enable federal agencies to assist involuntarily separated 
employees to qualify for new employment and will also provide 
agencies with an important new recruiting and retention 
incentive.

 Section 1104--Retirement Portability Elections for Certain Department 
                  of Defense and Coast Guard Employees

    This section would amend sections 8347 and 8461 of title 5, 
United States Code, to repeal the requirement that an employee 
who transfers between appropriated fund and nonappropriated 
fund employment be vested in the retirement system of the 
position the employee is vacating before the employee is 
permitted to choose to remain in that retirement system.

   Section 1105--Removal of Requirement that Granting Civil Service 
    Compensatory Time be Based on Amount of Irregular or Occasional 
                             Overtime Work

    This section would amend section 5543 of title 5, United 
States Code, to repeal the requirement that compensatory time 
only be granted to federal employees if the overtime performed 
is categorized as irregular or occasional. Removal of these 
restrictions will provide federal managers and employees with 
more flexibility in the use of compensatory time.

  Section 1106--Applicability of Certain Laws to Certain Individuals 
               Assigned to Work in the Federal Government

    This section would amend section 3374 of title 5, United 
States Code, to clarify that state and local government 
officials detailed to work in federal agencies are subject to 
the same standards of official conduct that apply to other 
federal employees.

                Section 1107--Limitation on Premium Pay

    This section would amend section 5547 of title 5, United 
States Code, to change the period used for limiting the amount 
of overtime pay an employee may earn from a biweekly to an 
annual basis, permitting more flexibility in scheduling 
overtime across the federal government.

  Section 1108--Use of Common Occupational and Health Standards as a 
 Basis for Differential Payments Made as a Consequence of Exposure to 
                                Asbestos

    This section would amend sections 5343 and 5545 of title 5, 
United States Code, to establish a common standard for payment 
of hazardous duty differential pay for reason of exposure to 
asbestos for prevailing rate and general schedule federal 
employees.

Section 1109--Authority for Designated Civilian Employees Abroad to Act 
                              as a Notary

    This section would amend section 1044a of title 10, United 
States Code, to authorize certain Department of Defense 
civilian employees serving abroad to act as notaries. This 
change will provide better legal assistance services for 
military members, civilian employees, and their families 
assigned overseas.

    Section 1110--``Monroney Amendment'' Restored to its Prior Form

    This section would amend section 5343 of title 5, United 
States Code, to require the Department of Defense to establish 
wage schedules and rates for prevailing wage employees based on 
the nearest wage area that is most similar to the wage area for 
which wage rates are being established when there are 
insufficient positions in the local industry upon which to 
establish wage schedules and rates.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                         LEGISLATIVE PROVISIONS

   Section 1201--Clarification of Authority to Furnish Nuclear Test 
              Monitoring Equipment to Foreign Governments

    This section would amend section 2565 of title 10, United 
States Code, to authorize the transfer of title to foreign 
governments of U.S. nuclear test monitoring equipment on the 
territory of other countries.

  Section 1202--Acquisition of Logistical Support for Security Forces

    This section would amend the Multinational Force and 
Observers (MFO) Participation Resolution (Public Law 97-132) 
that authorizes the United States to deploy peacekeepers and 
observers to the Sinai to assist Egypt and Israel fulfill the 
Camp David Accords. This section would authorize the President 
to approve contracting out the logistical and aviation support 
for the MFO mission currently performed by United States 
soldiers. This section would also provide that U.S. sponsored 
contract support could be provided to the MFO mission without 
reimbursement by the MFO organization if the President 
determines that such action enhances or supports the national 
security of the United States. The committee believes that 
approving contract support for the MFO will enhance the 
operational capabilities of the MFO force. The committee 
intends that the replacement of U.S. forces by contractors 
should not be viewed as a lessening of U.S. support for the MFO 
mission.
    Currently, administrative and technical support is provided 
by the Army's 1st Support Battalion pursuant to international 
agreements with both Israel and Egypt. The agreements stipulate 
the type of unit functions to be performed by the MFO in order 
to comply with its treaty verification mission, particularly 
aviation and logistical support. Ninety-nine U.S. soldiers 
flying ten UH-1H helicopters provide aviation support for the 
MFO. One hundred and fifty soldiers assigned to the U.S. 
Logistical Support Unit provide general logistical support. The 
United States Army intends to retire all UH-1H helicopters 
during fiscal year 2003. Procuring and operating UH-60 
Blackhawk helicopters would significantly increase the cost of 
conducting the MFO mission and no replacement helicopters are 
currently in the Army's future year defense plan for the MFO. 
Approving contractor support for the MFO will allow that 
mission to continue to operate UH-1H helicopters at reduced 
cost without any impact in mission accomplishment.

  Section 1203--Report on the Sale and Transfer of Military Hardware, 
Expertise, and Technology from States of the Former Soviet Union to the 
                       People's Republic of China

    This section would amend section 1202 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65) to require the Secretary of Defense to submit, as part of 
the existing report requirement, a one-time report to the 
Congress no later than March 1, 2002 on the transfer of 
equipment, expertise, and technology from former Soviet states 
to the People's Republic of China.
    The committee notes the strengthening political and 
military relationship between Russia and China and is concerned 
that growing military cooperation between these two countries 
may adversely affect U.S. national security interests. The 
committee is also troubled by reports regarding the 
proliferation of military technologies from other former Soviet 
states.
    Accordingly, the committee believes it important for the 
Secretary to assess the nature and scope of military 
cooperation between China and the states of the former Soviet 
Union and to assess the impact of such cooperation on the 
ability of China's People's Liberation Army to modernize and 
strengthen its military capabilities and to pose a threat to 
U.S. national security interests, particularly in Asia.

   Section 1204--Limitation on Funding for Joint Data Exchange Center

    This section would prohibit the obligation or expenditure 
of fiscal year 2002 funds for activities associated with the 
Joint Data Exchange Center in Moscow, Russia, until 30 days 
after the Secretary of Defense submits to Congress the 
agreement required by section 1231 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398) and an agreement exempting the United States from 
Russian taxes and liability.
    The committee is concerned by Russia's apparent 
unwillingness to move forward expeditiously with this project 
by agreeing to the same kinds of tax and liability exemptions 
that apply to other U.S.-Russia cooperative programs. The 
committee urges the Department of Defense to redouble its 
efforts to seek Russia's agreement to such exemptions.

   Section 1205--Extension of Authority to Provide Assistance Under 
Weapons of Mass Destruction Act for Support of United Nations-Sponsored 
        Efforts to Inspect and Monitor Iraqi Weapons Activities

    This section would extend the authority under section 1505 
of the Weapons of Mass Destruction Control Act of 1992 (section 
5859a of title 22, United States Code) for the Department of 
Defense to expend up to $15.0 million in fiscal year 2002 in 
support of the United Nations organization established for the 
purpose of comprehensively accounting for all Iraqi weapons of 
mass destruction items, facilities, and capabilities. The 
section would also change the requirement for quarterly reports 
by the Department of Defense under section 1505 to an annual 
report.

   Section 1206--Repeal of Requirement for Reporting to Congress on 
                     Military Deployments to Haiti

    This section would repeal the report required by section 
1232 of the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65) concerning military deployments to 
Haiti.

  Section 1207--Report by Comptroller General on Provision of Defense 
  Articles, Services, and Military Education and Training to Foreign 
               Countries and International Organizations

    This section would require the Comptroller General of the 
United States to study the benefits, costs, and readiness 
impact to U.S. Armed Forces with regard to defense articles, 
services, or military education and training provided under the 
authority of sections 506, 516, and 552 of the Foreign 
Assistance Act of 1961 (sections 2318, 2321j, 2348a of title 
22, United States Code) or any similar provision of law. The 
provision would require the Comptroller General to submit to 
Congress an interim report no later than April 15, 2002, and a 
final report by August 1, 2002, on the findings of the study.
    The committee is concerned with the increasing amount of 
foreign assistance provided by the Department of Defense under 
sections 506, 516, and 552 of the Foreign Assistance Act of 
1961 (sections 2318, 2321j, 2348a of title 22, United States 
Code) and other statutory drawdown authorities that furnish 
defense articles, services, and education and training to 
foreign countries or international organizations. The committee 
understands that the Department has executed 45 drawdowns from 
1992 to 1999 with a total cost to the Department of $1.0 
billion. While the committee recognizes the Department must 
continue to support legitimate emergency assistance through the 
drawdown process, the committee is concerned with the trend of 
annual drawdowns compensating for a diminished foreign military 
financing (FMF) program. The committee believes that a 
comprehensive assessment and report to Congress by the 
Comptroller General on the topic will provide insight as to the 
merit of the various drawdown activities.

  Section 1208--Limitation on Number of Military Personnel in Colombia

    This section would restrict funds available to the 
Department of Defense to support or maintain more than 500 U.S. 
military personnel on duty in Colombia at any time. This 
section would exclude from the numerical limitation any U.S. 
military personnel who are in Colombia for a period of not more 
than 30 days, unless expressly authorized by law, for the 
purpose of rescuing or retrieving U.S. military or governmental 
personnel. This section would also exempt from the limitation 
U.S. military personnel assigned to the U.S. Embassy in 
Colombia as an attache, as part of the security assistance 
office, or the Marine Corps security contingent; service 
members participating in natural disaster relief efforts; and 
non-operational transient military personnel.

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

                                OVERVIEW

    The budget request contained $403.0 million for cooperative 
threat reduction (CTR) activities, representing a decrease of 
$39.7 million from the amounts appropriated for fiscal year 
2001. The request included $246.9 million for destruction and 
dismantlement, $65.5 million for fissile materials and nuclear 
weapons safety and storage, $41.7 million for plutonium reactor 
shutdown activities in Russia, $17.0 million for biological 
weapons proliferation prevention in the former Soviet Union, 
$18.7 million for defense and military contacts, and $13.2 
million for other program support, including administrative and 
management costs.
    The committee recommends the budget request.
    The committee has traditionally supported the overriding 
goal of the CTR program to reduce the threat to the United 
States posed by the former Soviet Union's residual weapons of 
mass destruction. Nevertheless, in recent years the committee 
has raised numerous concerns. These include: the expansion in 
the program's scope; the Department's willingness--especially 
in the absence of prior congressional consultation--to absorb 
project costs that Russia, in particular, has not funded; the 
difficulty in determining whether assistance provided is 
accomplishing intended objectives; the lack of appropriate 
transparency agreements; the challenge of ensuring that 
assistance provided is not directly or indirectly facilitating 
the process of arms modernization; possible duplication and 
redundancies in similar projects executed by multiple federal 
agencies; and whether CTR activities are more appropriately 
funded outside the Department of Defense.
    The committee continues to believe that the focus of the 
CTR program should be the elimination of those weapons that 
pose the most serious and direct threat to U.S. security--first 
and foremost, strategic nuclear weapons and associated 
infrastructure. The committee notes that the CTR program was 
originally envisioned as a short-term emergency effort to 
reduce the threat posed to the United States by the thousands 
of nuclear weapons and their delivery vehicles left behind 
after the demise of the Soviet Union. However, the original 
focus of the CTR program has expanded significantly in scope 
since its inception. As a result, some CTR activities fall more 
appropriately outside the purview of the Department of Defense, 
particularly those activities that serve a broader 
nonproliferation or foreign policy goal. Two years ago, in the 
National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65), Congress restricted the obligation of fiscal year 
2000 CTR funds pending a report by the Secretary of Defense on 
whether DOD is the appropriate executive agency to implement 
various CTR projects and, if not, to propose a plan for 
migrating responsibility for those projects to other agencies. 
The committee has yet to receive this report.
    With this in mind, the committee believes it is time to 
take a fresh look at the CTR program and how to execute it. As 
a DOD program, CTR activities compete for scarce resources with 
the numerous other, more traditional, defense programs pursued 
by the Department. In light of this competition, the committee 
believes the Department must provide a rationale for the 
execution of CTR programs under DOD and options for 
transitioning responsibility for these programs to another 
federal agency or agencies, as appropriate. Accordingly, the 
committee recommends a provision (section 1308) that would 
require the Secretary of Defense to submit a report to Congress 
no later than March 15, 2002, explaining the rationale for 
DOD's oversight and management of the CTR program; providing 
justification for each CTR project that the Department believes 
should remain within the funding and management responsibility 
of DOD; and detailing the various transition options and how 
the Department proposes to implement them, as appropriate.
    If the Department of Defense is to retain funding and 
management responsibility for the overall CTR program or any of 
the projects contained within, the committee believes the 
Secretary must seek to ensure that the program is subject to 
the same kinds of stringent management, accountability, and 
results-oriented standards that apply to other defense 
programs. The committee believes that the oversight provided by 
Congress since the program's inception has served to improve 
the overall management of the program and to increase its 
effectiveness. Nevertheless, the committee remains troubled 
that the Department has not complied with the various reporting 
requirements mandated by law that are designed to enhance 
congressional visibility and oversight of the CTR program. In 
particular, the committee is troubled by the Department's 
failure to submit a number of reports required by title XIII of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398). The committee recalls 
that last year Congress agreed to consolidate a variety of 
reporting requirements into a single report on the basis of DOD 
assurances that the consolidated report would be submitted to 
Congress in a timely manner and in accordance with the 
statutory mandate. The committee has not yet received this 
report. Accordingly, the committee recommends a provision (sec. 
1303) that would prohibit the obligation or expenditure of 
fiscal year 2002 CTR funds until 30 days after the consolidated 
report is submitted.
    The committee's support for the CTR program has been 
predicated upon a belief that the assistance provided would 
produce the desired national security benefits. Unfortunately, 
in an increasing number of cases, the achievement of these 
benefits is difficult or impossible to quantify. Moreover, as a 
June 2001 General Accounting Office report concluded, the CTR 
program now provides a significantly greater percentage of 
assistance in the form of services rather than equipment. 
Therefore, the Department's traditional audit and examination 
procedures are insufficient to assist Congress in determining 
whether this assistance is being used as intended and achieving 
the desired objectives. In addition, a March 2001 report by the 
DOD Inspector General found that the lack of adequate 
performance goals for the CTR program meant that program 
managers ``could not successfully demonstrate that the CTR 
Directorate was executing the CTR program efficiently and 
effectively or identifying opportunities to improve program 
effectiveness.'' Consequently, the committee recommends a 
provision (sec. 1307) that would amend section 1308 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106-398) to provide for more complete and 
effective oversight of the CTR program.
    Finally, the committee understands that, with the change in 
Administrations and the delay in staffing key policy positions 
within DOD, the Department has had little opportunity to focus 
on and evaluate many of the policy assumptions underpinning the 
programmatic decisions reflected in the Department's fiscal 
year 2002 CTR proposal.Consequently, many of the proposals 
contained in the Department's budget submission are essentially 
unchanged from those of the previous Administration. The committee 
expects the Department to consider carefully and fully the concerns the 
committee has identified with respect to the CTR program as the 
Department prepares its budget and program request for fiscal year 
2003.

                       ITEMS OF SPECIAL INTEREST

                  Arms Elimination Projects in Russia

    The budget request contained $133.4 million for strategic 
offensive arms elimination projects in Russia, a 33 percent 
decrease from the fiscal year 2001 appropriated amount of 
$177.8 million. The committee recommends the budget request.
    The committee remains concerned that Russia may convert SS-
18 ICBM silos to support the deployment of modern SS-27 
``Topol'' ICBMs and that SS-18 missile elimination activities 
may facilitate Russia's ability to convert these silos. Last 
year, the committee directed the Secretary of Defense ``to 
focus the Department's SS-18 elimination effort at locations 
where missile silos are to be eliminated, not converted, to 
ensure that CTR assistance is not used in support of Russia's 
strategic modernization program.'' Although DOD policy does not 
support conversion activities, the CTR program has assisted in 
the removal of SS-18 ICBMs from silos at locations where the 
silos may be converted. The committee reiterates its view that 
CTR assistance should be targeted at those sites where SS-18 
missiles, silos, and related infrastructure will be eliminated.
    The committee also notes that the March 2001 report on the 
CTR program by the DOD Inspector General concluded that more 
than $64.5 million in program funds was used ``to facilitate 
the removal of weapons of mass destruction by enhancing the 
value of salvageable materials and developing commercial by-
products for Russia and Ukraine.'' The report notes, ``As a 
result of those efforts, Russia and Ukraine could generate 
revenue of about $72.8 million without agreements on how the 
revenue should be used.'' The committee believes the Department 
should seek to negotiate agreements regarding the use of these 
revenues in order to prevent them from being used for purposes 
that run contrary to the objectives of the CTR program. 
Accordingly, the committee recommends a provision (section 
1304) that would require the Secretary of Defense to submit a 
report on DOD's plans for monitoring the use of such revenues.

                  Arms Elimination Projects in Ukraine

    The budget request contained $51.5 million for strategic 
offensive arms elimination projects in Ukraine, a 77 percent 
increase from the fiscal year 2001 appropriated amount of $29.1 
million. The committee recommends the budget request.
    The committee notes the successful completion of the Tu-26 
Blackjack bomber elimination project and the initiation of 
efforts to eliminate Tu-22 Backfire bombers. The committee 
supports these efforts, along with accelerated efforts to 
eliminate Ukraine's remaining ICBMs, silos, and associated 
infrastructure.

              Biological Weapons Proliferation Prevention

    The budget request contained $17.0 million for biological 
weapons proliferation prevention activities in the former 
Soviet Union, a 42 percent increase from the fiscal year 2001 
appropriated level of $12.0 million. The committee recommends 
the budget request.
    Although generally supportive of efforts to prevent the 
proliferation of biological weapons expertise, the committee 
remains concerned over the lack of transparency with respect to 
Russia's biological weapons programs, the risks that 
collaborative research on ``defensive'' biotechnology can be 
applied to offensive weapons purposes, the perpetuation of a 
knowledge and skills base among Russian scientists that may 
increase their attractiveness to foreign states seeking to 
develop biological weapons, the difficulty of verifying that 
assistance provided is not being diverted to illicit purposes, 
and the lack of an ``exit strategy'' for this activity. The 
committee does not believe DOD should finance the activities of 
former Soviet biological weapons scientists on a permanent 
basis, and calls upon the Department to establish criteria for 
the completion of this program.

                 Chemical Weapons Destruction in Russia

    The budget request contained $50.0 million for chemical 
weapons elimination activities in Russia, including $15.0 
million for the elimination of chemical weapons production 
facilities and $35.0 million for construction of a chemical 
weapons destruction facility in Shchuch'ye, Russia. The request 
also contained a provision that would repeal section 1305 of 
Public Law 106-65, which prohibits any funding for activities 
related to the Shchuch'ye facility. This is the second 
consecutive year the Department has requested a repeal of the 
existing prohibition and a restart of funding for this 
activity.
    The committee recommends the budget request.
    Although the committee approves the budget request for 
activities related to the construction of a chemical weapons 
destruction facility in Russia, the committee remains concerned 
about the relative priority of this project within the overall 
CTR program. Moreover, the committee continues to have serious 
reservations about the wisdom of proceeding with the Shchuch'ye 
project in light of ongoing cost, schedule, and other concerns.
    The committee recognizes Russia's declared intention to 
place greater priority on its chemical weapons elimination 
effort, in accordance with its commitments under the Chemical 
Weapons Convention, and Russia's effort to increase its 
financial commitment to this effort. In addition, the committee 
notes that Russia is seeking to make it possible to use the 
Shchuch'ye facility to eliminate nerve agents currently stored 
at other stockpile sites. However, the committee notes that 
under section 1309 of Public Law 106-398 the Department was 
required to submit a report in January 2001, regarding Russian 
and international funding for chemical weapons elimination 
activities in Russia. This report has not yet been provided.
    The committee notes that U.S. commitments to date have 
involved funding for the construction of the Shchuch'ye pilot 
destruction facility, not for its scale-up, operation, or 
maintenance. These costs are to be assumed by Russia. However, 
the committeeremains skeptical regarding Russia's ability to 
absorb these costs. In the view of the committee, the United States 
will likely be compelled to absorb additional costs, beyond the nearly 
$900 million estimated for the U.S. share of funding, to eliminate 
chemical weapons at Shchuch'ye if Russia is unwilling or unable to do 
so.
    With this in mind, the committee believes that U.S. funding 
for this activity should be conditioned on a variety of actions 
that demonstrate Russia's commitment to the elimination of its 
chemical weapons stockpile. Accordingly, the committee 
recommends a provision (sec. 1309) that would require the 
Secretary of Defense to certify to Congress that Russia: (1) 
has made a full and accurate disclosure of its chemical weapons 
stockpile; (2) has committed to invest at least $25.0 million 
annually in chemical weapons elimination; (3) has developed a 
practical plan for chemical weapons elimination; (4) has 
provided legal authority for the elimination of all nerve 
agents at a single site; and (5) has agreed to destroy its 
chemical weapons production facilities at Volgograd and 
Novocheboksarsk.
    The committee acknowledges that the National Security 
Council (NSC)--after conducting a review of U.S. 
nonproliferation assistance programs with Russia--has 
recommended moving ahead with the Shchuch'ye project. The 
committee believes the NSC's recommendation is based, in part, 
on commitments to the project made to Russia by the prior 
Administration. The committee notes that political commitments 
by the Executive Branch to support projects in Russia must be 
premised on congressional approval and funding. For this 
reason, the committee is troubled by the fact that the 
Department concluded an agreement with Russia in November 2000 
reiterating its commitment to the Shchuch'ye project after 
Congress had prohibited funding for it in 1999 and reaffirmed 
this prohibition earlier in 2000. The committee believes the 
Department's action was inappropriate and contrary to the 
clearly expressed position of Congress.
    The committee is also aware of the Department's desire to 
use unobligated fiscal year 1999 CTR funds to initiate 
construction of the Shchuch'ye facility and understands that a 
DOD notification to this effect has been prepared for 
transmittal to Congress. The committee does not support using 
prior year funds to initiate an action, the completion of which 
is precluded by existing law, unless and until the existing 
prohibition is lifted or modified.

                     Defense and Military Contacts

    The budget request contained $18.7 million for defense and 
military contacts with the states of the former Soviet Union, a 
108 percent increase over the fiscal year 2001 appropriated 
level of $9.0 million. The committee recommends the budget 
request.
    Last year, the CTR program funded approximately 350 defense 
and military contacts with the states of the former Soviet 
Union. This year's budget request would support 500 events. 
However, the committee believes the utility of these activities 
is difficult to quantify and expects the Department to address 
this issue in the report required by section 1308 of this 
title.

             Elimination of Plutonium Production in Russia

    The budget request contained $41.7 million for the 
elimination of plutonium production in Russian nuclear 
reactors, a 30 percent increase from the fiscal year 2001 
appropriated level of $32.1 million. The committee recommends 
the budget request, subject to the prohibition described below.
    The committee notes that the Department has decided to 
abandon its support for core conversion. The Department 
believes the goal of eliminating weapons-grade plutonium 
production is best served by the construction of fossil fuel 
plants, including the refurbishment of coal-burning boilers, as 
a less expensive substitute for the energy needs of the local 
communities in Russia. Although the committee supports the goal 
of shutting down Russia's nuclear power plants, the committee 
believes this goal serves broader U.S. nonproliferation and 
foreign policy objectives and should be funded through sources 
external to the Department of Defense. In addition, the 
committee notes that the budget request would be targeted 
exclusively for the building and refurbishment of fossil fuel 
plants and not for any activities directly related to shutting 
down Russia's plutonium producing nuclear reactors. The 
committee does not believe that the construction of fossil fuel 
plants in Russia is an activity appropriate for DOD to fund. 
This view led Congress to pass section 1307 of Public Law 106-
398, which prohibited fiscal year 2001 CTR funds from being 
used for this activity. Accordingly, the committee recommends a 
provision (sec. 1306) that would make permanent the fiscal year 
2001 prohibition on using CTR funds for this purpose.
    The committee is also troubled by the Department's failure 
to submit the report required by section 1307 of Public Law 
106-398 that would identify the costs of building fossil fuel 
plants, as well as other non-CTR funding sources that could be 
used for carrying out this activity. Consequently, the 
committee lacks the requisite information to determine how the 
Department arrived at its conclusion regarding the comparative 
costs of core conversion vis-a-vis fossil fuel plants and the 
reasons why DOD believes it should be involved in this 
activity.

               Fissile Material Processing and Packaging

    The budget request did not contain funding for this 
activity. The committee understands that Russia, after 
initially requesting U.S. assistance in the dismantlement and 
processing of fissile material removed from nuclear warheads, 
refused to agree to the necessary safeguards to ensure the 
material could not be re-fabricated for use in other nuclear 
weapons. Consequently, this project has been terminated. The 
committee understands that unobligated prior year funds for 
this activity have been re-obligated for other projects.

                   Fissile Material Storage Facility

    The budget request did not contain funding for this 
activity. The committee notes that Russia is no longer seeking 
assistance to build a second wing at the Mayak storage facility 
and that sufficient funds remain to complete activity on the 
first wing. Accordingly, the committee supports the 
Department's action in refusing to seekadditional funds for 
this activity and recommends a provision (section 1306) that would 
prohibit CTR funds from being used for the design, planning, or 
construction of a second wing. The committee notes that Russia has 
consistently refused to agree to transparency measures that would allow 
the United States to verify that the fissile material stored at the 
facility in Mayak, Russia, is from dismantled nuclear weapons and 
reiterates its view that the Department should continue to seek an 
agreement with Russia on this issue.

               Nuclear Weapons Storage Security in Russia

    The budget request contained $56.0 million for nuclear 
weapons storage security in Russia, a 38 percent decrease from 
the fiscal year 2001 appropriated level of $89.7 million. The 
committee recommends the budget request, but reiterates the 
need for the Secretary of Defense to seek an agreement with 
Russia allowing appropriate U.S. access to nuclear weapons 
storage sites for which CTR assistance is provided.

                Nuclear Weapons Transportation Security

    The budget request contained $9.5 million for nuclear 
weapons transportation security in Russia, a 32 percent 
decrease from the fiscal year 2001 appropriated level of $14.0 
million. The committee recommends the budget request. The 
committee notes that these costs were previously paid by Russia 
and again urges the Department to seek an agreement that would 
once again shift the burden of financial responsibility for 
this activity back to Russia.

              Other Assessments and Administrative Support

    The budget request contained $13.2 million for other 
program support, including management and administrative costs, 
project development, and audits and examinations, a slight 
increase over the fiscal year 2001 appropriated level of $13.0 
million. The committee recommends the budget request.
    The committee notes that a portion of these funds has 
traditionally been applied to new initiatives in the concept 
development stage. The committee understands that Russia has 
proposed various initiatives for CTR consideration, including 
initiatives involving conventional weapons or delivery 
platforms. The committee believes that the statutory language 
of section 1303 of Public Law 106-398, which prohibits the use 
of CTR funds for conventional elimination purposes--including, 
for example, general purpose submarines--should be strictly 
adhered to and that CTR funds should not be expended on concept 
development studies designed to assess the viability of 
elimination projects specifically prohibited under the 
statutory prohibition.

  Weapons of Mass Destruction Infrastructure Elimination in Kazakhstan

    The budget request contained $6.0 million for weapons of 
mass destruction infrastructure elimination activities in 
Kazakhstan. This would include funding for activities related 
to the elimination of facilities used to support the deployment 
and operation of weapons of mass destruction, including 
infrastructure at former bomber bases. The committee recommends 
the budget request.

   Weapons of Mass Destruction Infrastructure Elimination in Ukraine

    The budget request contained $6.0 million for weapons of 
mass destruction infrastructure elimination activities in 
Ukraine. This would include funding for activities related to 
the elimination of facilities used to support the deployment 
and operation of weapons of mass destruction, including 
facilities for storage and maintenance of nuclear weapons. The 
committee recommends the budget request.

                         LEGISLATIVE PROVISIONS

Section 1301--Specification of Cooperative Threat Reduction Program and 
                                 Funds

    This section would specify the kinds of programs to be 
funded under this title and would make fiscal year 2002 
Cooperative Threat Reduction (CTR) funds available for 
obligation for three years.

                   Section 1302--Funding Allocations

    This section would allocate fiscal year 2002 funding for 
various CTR purposes and activities.

  Section 1303--Prohibition Against Use of Funds Until Submission of 
                                Reports

    This section would prohibit the obligation or expenditure 
of fiscal year 2002 CTR funds until 30 days after reports 
required by section 1308 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398) are submitted.

Section 1304--Report on Use of Revenue Generated by Activities Carried 
            Out Under Cooperative Threat Reduction Programs

    This section would require the Secretary of Defense to 
submit a report describing plans to monitor the use of revenue 
generated by CTR activities in Russia and Ukraine.

   Section 1305--Prohibition Against Use of Funds for Second Wing of 
                   Fissile Material Storage Facility

    This section would prohibit the use of CTR funds for the 
design, planning, or construction of a second wing for the 
fissile material storage facility in Mayak, Russia.

     Section 1306--Prohibition on Use of Funds for Construction or 
               Refurbishment of Fossil Fuel Energy Plants

    This section would prohibit the use of CTR funds for 
construction or refurbishment of fossil fuel energy plants in 
Russia.

 Section 1307--Reports on Activities and Assistance Under Cooperative 
                       Threat Reduction Programs

    This section would amend section 1308 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106-398) to modify the report on activities and 
assistance under CTR programs in order to provide for more 
complete and effective oversight of the CTR program.

  Section 1308--Report on Responsibility for Carrying Out Cooperative 
                       Threat Reduction Programs

    This section would require the Secretary of Defense to 
submit a report containing an assessment of CTR projects 
currently under the auspices of DOD and describing options for 
transferring responsibility for CTR projects to other agencies, 
as appropriate.

               Section 1309--Chemical Weapons Destruction

    This section would modify the existing prohibition on the 
use of CTR funds for construction of a chemical weapons 
destruction facility in Russia by requiring the Secretary of 
Defense to certify that Russia has met various requirements 
prior to the obligation or expenditure of funds for this 
activity.

                TITLE XIV--DEFENSE SPACE REORGANIZATION

                                OVERVIEW

    The committee commends the efforts of the Commission to 
Assess United States National Security Space Management and 
Organization, and has reviewed the contents of the report to 
Congress as required by section 1623 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65). The 
committee believes that many of the recommendations contained 
in the commission report are significant and should be 
considered for implementation. The committee believes, 
therefore, that the President and the Secretary of Defense 
should have specific discretionary authority to impose new 
organizational and programmatic arrangements with regard to 
space matters.

                         LEGISLATIVE PROVISIONS

                       Section 1401--Short Title

    This section would refer to this title as the ``Defense 
Space Reorganization Act of 2001.''

  Section 1402--Authority to Establish Position of Under Secretary of 
            Defense for Space, Intelligence, and Information

    This section would authorize the President, through 
December 31, 2003, to establish the position of Under Secretary 
of Defense for Space, Intelligence, and Information with 
specific duties as prescribed by the Secretary of Defense.

 Section 1403--Authority to Designate Under Secretary of the Air Force 
    as Acquisition Executive for Space of the Department of Defense

    This section would authorize the Secretary of Defense to 
designate the Under Secretary of the Air Force as the 
acquisition executive for all space-related programs in the 
Department of Defense.

     Section 1404--Major Force Program Category for Space Programs

    This section would authorize the Secretary of Defense to 
create a major force program category for space under section 
221 of title 10, United States Code.

   Section 1405--Comptroller General Assessment of Implementation of 
                  Recommendations of Space Commission

    This section would require the Comptroller General of the 
United States to assess the actions taken by the Secretary of 
Defense to implement the recommendations of the Commission to 
Assess United States National Security Space Management and 
Organization and report to Congress by February 15 in both 2002 
and 2003.

           Section 1406--Commander of Air Force Space Command

    This section would authorize the Secretary of Defense to 
require that the officer serving as commander of Air Force 
Space Command not serve simultaneously as commander of United 
States Space Command or as commander of the United States 
element of the North American Air Defense Command.

 Section 1407--Authority to Establish Separate Career Field in the Air 
                            Force for Space

    This section would authorize the Secretary of the Air Force 
to establish a separate career field for officers in space 
doctrine, space operations, and management of space systems for 
the Air Force.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

                                PURPOSE

    The purpose of Division B is to provide military 
construction authorizations and related authority in support of 
the military departments during fiscal year 2002. As approved 
by the committee, Division B would authorize appropriations in 
the amount of $10,324,712,000 for construction in support of 
the active forces, reserve components, defense agencies for 
fiscal year 2002.

                     MILITARY CONSTRUCTION OVERVIEW

    The Department of Defense requested authorization of 
appropriations of $5,904,795,000 for fiscal year 2002 for 
military construction, including $532,200,000 for activities 
associated with base closure and realignment, and 
$4,066,517,000 for family housing construction and support. The 
committee recommends $6,359,343,000 for military construction, 
including $532,200,000 for activities associated with base 
closure and realignment, and $3,965,369,000 for family housing 
construction and support for fiscal year 2002.
    The committee remains concerned about the condition of the 
Nation's military installations and facilities and their effect 
on military readiness. The committee is pleased, however, that 
the Administration's fiscal year 2002 budget request contained 
a 13 percent increase from the program enacted by Congress for 
fiscal year 2001 and contained a 24.5 percent increase in the 
amount requested by the previous Administration for fiscal year 
2001. The committee is encouraged that the fiscal year 2002 
budget request would begin to reverse the trend of underfunding 
critical military infrastructure and expects it to represent 
sustained investment rather than a momentary spike. The 
committee recommends an increase in new budget authority for 
these programs of $353,400,000.
    In an effort to continue to improve the quality of life for 
military personnel and their families, the committee reiterates 
its support for the authorities provided in subchapter IV, 
chapter 169 of title, 10, United States Code. The Military 
Housing Privatization Initiative remains a central component of 
the ultimate resolution of the military housing crisis. The 
committee recommends permanent authority for this program.
    A tabular summary of the authorizations provided in 
Division B for fiscal year 2002 follows:

                            TITLE XXI--ARMY

                                SUMMARY

    The budget request contained $1,760,541,000 for Army 
military construction and $1,400,533,000 for family housing for 
fiscal year 2002. The committee recommends authorization of 
$1,686,601,000 for military construction and $1,321,357,000 for 
family housing for fiscal year 2002.

                       ITEMS OF SPECIAL INTEREST

                          Planning and Design

    The committee recommends that, within authorized amounts 
for planning and design, the Secretary of the Army complete 
planning and design activities for the following projects: 
$225,000 for a training center at Tobyhanna Army Depot, 
Pennsylvania.

                         LEGISLATIVE PROVISIONS

    Section 2101--Authorized Army Construction and Land Acquisition 
                                Projects

    This section contains the list of authorized Army 
construction projects for fiscal year 2002. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is intended to be the 
binding list of the specific projects authorized at each 
location.

                      Section 2102--Family Housing

    This section would authorize new construction and planning 
and design of family housing units for the Army for fiscal year 
2002.

      Section 2103--Improvements to Military Family Housing Units

    This section would authorize improvements to existing units 
of family housing for fiscal year 2002.

          Section 2104--Authorization of Appropriations, Army

    This section would authorize specific appropriations for 
each line item contained in the Army's budget for fiscal year 
2002. This section also provides an overall limit on the amount 
the Army may spend on military construction projects.

  Section 2105--Modification of Authority to Carry Out Certain Fiscal 
                           Year 2001 Project

    This section would amend the table in section 2101 of the 
Military Construction Authorization Act for Fiscal Year 2001 
(division B of Public Law 106-398) to provide for an increase 
in the amounts authorized for military construction at Fort 
Leonard Wood, Missouri, at Fort Drum, New York, and at Fort 
Hood Texas.

                            TITLE XXII--NAVY

                                SUMMARY

    The budget request contained $1,071,408,000 for Navy 
military construction and $1,222,495,000 for family housing for 
fiscal year 2002. The committee recommends authorization of 
$1,159,654,000 for military construction and $1,233,351,000 for 
family housing for fiscal year 2002.

                       ITEMS OF SPECIAL INTEREST

                Improvements to Military Family Housing

    The committee recommends that, within authorized amounts 
for improvements to military family housing and facilities, the 
Secretary of the Navy execute the following projects: 
$11,840,000 for Whole-site Revitalization (69 units) at Pacific 
Missile Range Facility Barking Sands, Hawaii, and $6,940,000 
for Whole House Revitalization (124 units) at Westover Air 
Reserve Base, Massachusetts.

                          Planning and Design

    The committee recommends that, within authorized amounts 
for planning and design, the Secretary of the Navy complete 
planning and design activities for the following project: 
$420,000 for an undersea network centric laboratory at Naval 
Underwater Systems Newport, Rhode Island.

                         LEGISLATIVE PROVISIONS

    Section 2201--Authorized Navy Construction and Land Acquisition 
                                Projects

    This section contains the list of authorized Navy 
construction projects for fiscal year 2002. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is intended to be the 
binding list of the specific projects authorized at each 
location.

                      Section 2202--Family Housing

    This section would authorize new construction and planning 
and design of family housing units for the Navy for fiscal year 
2002.

      Section 2203--Improvements to Military Family Housing Units

    This section would authorize improvements to existing units 
of family housing for fiscal year 2002.

          Section 2204--Authorization of Appropriations, Navy

    This section would authorize specific appropriations for 
each line item in the Navy's budget for fiscal year 2002. This 
section also provides an overall limit on the amount the Navy 
may spend on military construction projects.

 Section 2205--Modification of Authority to Carry Out Fiscal Year 2000 
                                Project

    This section would amend the table in section 2201 of the 
Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65) to provide for an increase in 
the amounts authorized for military construction at Camp H.M. 
Smith, Hawaii.

                         TITLE XXIII--AIR FORCE

                                SUMMARY

    The budget request contained $1,068,250,000 for Air Force 
military construction and $1,387,358,000 for family housing for 
fiscal year 2002. The committee recommends authorization of 
$1,171,504,000 for military construction and $1,354,530,000 for 
family housing for fiscal year 2002.

                       ITEMS OF SPECIAL INTEREST

                Improvements to Military Family Housing

    The committee recommends that, within authorized amounts 
for improvements to military family housing and facilities, the 
Secretary of the Air Force execute the following project: 
$18,000,000 for Whole Neighborhood Revitalization (164 units) 
at Whiteman Air Force Base, Missouri.

                         LEGISLATIVE PROVISIONS

 Section 2301--Authorized Air Force Construction and Land Acquisition 
                                Projects

    This section contains the list of authorized Air Force 
construction projects for fiscal year 2002. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is intended to be the 
binding list of the specific projects authorized at each 
location.

                      Section 2302--Family Housing

    This section would authorize new construction and planning 
and design of family housing units for the Air Force for fiscal 
year 2002.

      Section 2303--Improvements to Military Family Housing Units

    This section would authorize improvements to existing units 
of family housing for fiscal year 2002.

        Section 2304--Authorization of Appropriations, Air Force

    This section would authorize specific appropriations for 
each line item in the Air Force's budget for fiscal year 2002. 
This section also would provide an overall limit on the amount 
the Air Force may spend on military construction projects.

  Section 2305--Modification of Authority to Carry Out Certain Fiscal 
                           Year 2001 Project

    This section would amend the table in section 2301 of the 
Military Construction Authorization Act for Fiscal Year 2001 
(division B of Public Law 106-398) to provide for an increase 
in the amounts authorized for military construction at McGuire 
Air Force Base, New Jersey.

                      TITLE XXIV--DEFENSE AGENCIES

                                SUMMARY

    The budget request contained $694,558,000 for defense 
agencies military construction and $250,000, for family housing 
construction for fiscal year 2002. The committee recommends 
authorization of $838,957,000 for military construction and 
$250,000 for family housing for fiscal year 2002.

                         LEGISLATIVE PROVISIONS

    Section 2401--Authorized Defense Agencies Construction and Land 
                          Acquisition Projects

    This section contains the list of authorized defense 
agencies construction projects for fiscal year 2002. The 
authorized amounts are listed on an installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.

               Section 2402--Energy Conservation Projects

    This section would authorize the Secretary of Defense to 
carry out energy conservation projects

    Section 2403--Authorization Of Appropriations, Defense Agencies

    This section would authorize specific appropriations for 
each line item in the Defense Agencies' budget for fiscal year 
2002. This section also would provide an overall limit on the 
amount the Defense Agencies may spend on military construction 
projects.

 Section 2404--Modification of Authority to Carry Out Fiscal Year 2001 
                                Project

    This section would amend the table in section 2401 of the 
Military Construction Authorization Act for Fiscal Year 2001 
(division B of Public Law 106-398) to provide for an increase 
in the amounts authorized for construction at Marine Corps 
Base, Camp Pendleton, California.

 Section 2405--Modification of Authority to Carry Out Fiscal Year 2000 
                                Project

    This section would amend the table in section 2401 of the 
Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65) to provide for an increase in 
the amounts authorized for construction at Naval Air Station, 
Whidbey Island, Washington.

 Section 2406--Modification of Authority to Carry Out Fiscal Year 1999 
                                Project

    This section would amend the table in section 2401 of the 
Military Construction Authorization Act for Fiscal Year 1999 
(division B of Public Law 105-261) to provide for an increase 
in the amounts authorized for military construction projects to 
support chemical weapons and munitions destruction at Aberdeen 
Proving Ground, Maryland.

 Section 2407--Modification of Authority to Carry Out Fiscal Year 1995 
                                Project

    This section would amend the table in section 2401 of the 
Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337), as amended to provide for 
an increase in the amounts authorized for military construction 
projects to support chemical weapons and munitions destruction 
at Pine Bluff Arsenal, Arkansas.

Section 2408--Prohibition on Expenditures to Develop Forward Operating 
   Location on Aruba for United States Southern Command Counter-Drug 
                    Detection and Monitoring Flights

    This section would prohibit funds appropriated in chapter 3 
of title III of the Emergency Supplemental Act, 2000 (Public 
Law 106-246) to be used by the Secretary of Defense to develop 
any forward operating location of the island of Aruba.

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

                                SUMMARY

    The budget request contained $162,600,000 for the NATO 
infrastructure fund (NATO Security Investment Program) for 
fiscal year 2002. The committee recommends $162,600,000 for the 
NATO infrastructure fund for fiscal year 2002.

                         LEGISLATIVE PROVISIONS

    Section 2501--Authorized NATO Construction and Land Acquisition 
                                Projects

    This section would authorize the Secretary of Defense to 
make contributions to the North Atlantic Treaty Organization 
security investment program in an amount equal to the sum of 
the amount specifically authorized in section 2502 of this bill 
and the amount of recoupment due to the United States for 
construction previously financed by the United States.

          Section 2502--Authorization of Appropriations, NATO

    This section would authorize appropriations of $162,600,000 
as the U.S. contribution to the NATO security investment 
program.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

                                SUMMARY

    The budget request contained $615,238,000 for fiscal year 
2002 for guard and reserve facilities. The committee recommends 
authorization for fiscal year 2002 of $807,827,000 to be 
distributed as follows:

Army National Guard.....................................    $304,915,000
Air National Guard......................................     197,472,000
Army Reserve............................................     173,017,000
Naval and Marine Corps Reserve..........................      53,291,000
Air Force Reserve.......................................      79,132,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................     807,827,000

                       ITEMS OF SPECIAL INTEREST

                Planning and Design, Air National Guard

    The committee recommends that, within authorized amounts 
for planning and design, the Secretary of the Air Force execute 
the following project: $1,331,000 for a joint headquarters 
building at McEntire Air National Guard Base, South Carolina.

          Unspecified Minor Construction, Army National Guard

    The committee recommends that, within authorized amounts 
for unspecified minor construction, the Secretary of the Army 
execute the following project: $500,000 for security 
improvements at Johnstown Airport, Pennsylvania.

                         LEGISLATIVE PROVISIONS

   Section 2601--Authorized Guard and Reserve Construction and Land 
                          Acquisition Projects

    This section would authorize appropriations for military 
construction for the guard and reserve by service component for 
fiscal year 2002. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

                         LEGISLATIVE PROVISIONS

 Section 2701--Expiration of Authorizations and Amounts Required To Be 
                            Specified by Law

    This section would provide that authorizations for military 
construction projects, repair of real property, land 
acquisition, family housing projects and facilities, 
contributions to the North Atlantic Treaty Organization 
infrastructure program, and guard and reserve projects will 
expire on October 1, 2004 or the date of enactment of an Act 
authorizing funds for military construction for fiscal year 
2005, whichever is later. This expiration would not apply to 
authorizations for which appropriated funds have been obligated 
before October 1, 2004 or the date of enactment of an Act 
authorizing funds for these projects, whichever is later.

Section 2702--Extensions of Authorizations of Certain Fiscal Year 1999 
                                Projects

    This section would provide for selected extension of 
certain fiscal year 1998 military construction authorizations 
until October 1, 2001, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 
2003, whichever is later.

 Section 2703--Extension of Authorizations of Certain Fiscal Year 1998 
                                Projects

    This section would provide for selected extension of 
certain fiscal year 1998 military construction authorizations 
until October 1, 2002, or the date of the enactment of the Act 
authorizing funds for military construction for fiscal year 
2003, whichever is later.

                      Section 2704--Effective Date

    This section would provide that Titles XXI, XXII, XXIII, 
XXIV, and XXVI of this bill shall take effect on October 1, 
2001, or the date of the enactment of this Act, whichever is 
later.

                    TITLE XXVIII--GENERAL PROVISIONS

                         LEGISLATIVE PROVISIONS

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

     Section 2801--Increase in Certain Unspecified Minor Military 
                    Construction Project Thresholds

    This section would amend section 2805 of title 10, United 
States Code, to increase the threshold for notice and wait 
requirements for unspecified minor construction from $500,000 
to $750,000.

Section 2802--Exclusion of Unforeseen Environmental Hazard Remediation 
             From Limitation on Authorized Cost Variations

    This section would amend section 2853 of title 10, United 
States Code, to exclude legally required remediation of certain 
environmental hazards from limitations on authorized cost 
variations.

   Section 2803--Repeal of Annual Reporting Requirement on Military 
          Construction and Military Family Housing Activities

    This section would amend section 2861 of title 10, United 
States Code, to repeal the annual reporting requirement on 
military construction and military family housing activities.

  Section 2804--Permanent Authorization for Alternative Authority for 
            Acquisition and Improvement of Military Housing

    This section would amend section 2885 of title 10, United 
States Code, to make permanent the authorities contained in 
subchapter 169 of title 10, United States Code.

        Subtitle B--Real Property and Facilities Administration

 Section 2811--Use of Military Installations for Certain Recreational 
                               Activities

    This section would amend section 2671 of title 10, United 
States Code, to permit certain recreation activities on 
military installations. This section would provide flexibility 
to military installation commanders to manage resources without 
adhering to State law, when necessary, if determined to be in 
interest of public safety.

 Section 2812--Base Efficiency Project at Brooks Air Force Base, Texas

    This section would amend section 136 of the Military 
Construction Appropriations Act, 2001 (division A of Public Law 
106-246) to authorize the Secretary of the Air Force to provide 
environmental indemnification to the San Antonio community and 
other persons. No indemnification may be provided unless the 
person or entity making the claim provides certain 
documentation. This section would authorize the Secretary to 
settle or defend a claim if it is determined that the 
Department of Defense may be required to make indemnification 
payments.

            Subtitle C--Defense Base Closure and Realignment

           Section 2821--Lease Back of Base Closure Property

    This section would amend section 204 of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526) and section 2905 of the Defense Base 
Closure and Realignment Act of 1990 (Part A of Title XXIX of 
Public Law 101-510) to authorize the secretary concerned to 
transfer real property at a closed or realigned military 
installation to the redevelopment authority for the 
installation if the redevelopment authority agrees, directly 
upon transfer, to lease one or more portions of the property 
transferred to the secretary or to the head of another 
department or agency of the Federal Government. Such leases 
shall not exceed 50 years and may not require rental payments 
by the United States. This section would permit the use of the 
leased property by the same or another department or agency of 
the Federal Government if the original department concerned 
ceases requiring the use of the lease.

                 Subtitle D--Land Conveyances Generally

                        Part I--Army Conveyances

 Section 2831--Transfer of Jurisdiction, Rock Island Arsenal, Illinois

    This section would amend section 2832 of the Military 
Construction Authorization Act for Fiscal Year 2001 (division B 
of Public Law 106-398) by authorizing the Secretary of the Army 
to transfer a parcel of real property approximately .513 acres 
to the City. As consideration for the transfer, the City would 
convey to the Secretary, a parcel of real property 
approximately .063 acres to construct a new access ramp for the 
Rock Island Arsenal, Illinois.

  Section 2832--Modification of Land Conveyance, Fort Dix, New Jersey

    This section would amend section 2835 of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B 
of Public Law 105-85) to authorize the exchange between the 
Borough of Wrightstown and the New Hanover Board of Education, 
without the consent of the Secretary, of all or any portion of 
the property conveyed so long as the property continues to be 
used for economic or educational purposes.

          Section 2833--Lease Authority, Fort Derussy, Hawaii

    This section would authorize the Secretary of the Army to 
enter into a lease with the City of Honolulu, Hawaii, for the 
purpose of making available to the City a parcel of real 
property for the construction of a parking facility.

 Section 2834--Land Exchange and Consolidation, Fort Lewis, Washington

    This section would authorize the Secretary of the Army to 
convey two parcels of real property, with improvements, 
consisting of approximately 138 acres at Fort Lewis, 
Washington, to the Nisqually Tribe. As consideration for the 
exchange, the Tribe shall acquire from Thurston County, 
Washington, several parcels of real property consisting of 
approximately 416 acres and convey fee title to the Secretary. 
This section would also authorize the Secretary to convey to 
the Bonneville Power Administration a right-of-way to permit 
the Administration to use the real property at Fort Lewis as a 
route for the Grand Coulee-Olympia and Olympia-White River 
electrical transmission lines. The cost of any survey shall be 
borne by the recipient of the property.

 Section 2835--Land Conveyance, Whittier-Anchorage Pipeline Tank Farm, 
                           Anchorage, Alaska

    This section would authorize the Secretary of the Army to 
convey, without consideration, two adjoining parcels of real 
property, including improvements, of approximately 48 acres and 
known as the Whittier-Anchorage Pipeline Tank Farm, to the Port 
of Anchorage, an entity of the Municipality of Anchorage, 
Alaska. The cost of any survey shall be borne by the recipient 
of the real property.

                       Part II--Navy Conveyances

    Section 2841--Transfer of Jurisdiction, Centerville Beach Naval 
                  Station, Humboldt County, California

    This section would authorize the Secretary of the Navy to 
transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of the Interior the real property 
with improvements consisting of the closed Centerville Beach 
Naval Station, Humboldt County, California, for the purpose of 
permitting the Secretary of the Interior to manage the real 
property as open space or for other public purposes. The cost 
of any survey necessary for the transfer would be borne by the 
Secretary of the Interior.

Section 2842--Land Conveyance, Naval Weapons Industrial Reserve Plant, 
                              Toledo, Ohio

    This section would authorize the Secretary of the Navy to 
convey, without consideration, a parcel of real property, 
consisting of approximately 29 acres comprising the Naval 
Weapons Industrial Reserve Plant, Toledo, Ohio, to the Toledo-
Lucas County Port Authority. Until the property is conveyed, 
the Secretary may lease the real property, together with any 
improvements, facilities, equipment, fixtures, and other 
personal property, to the Port Authority in exchange for 
security services, and maintenance services provided by the 
Port Authority. The conveyance and any lease shall be subject 
to certain specified conditions. The cost of any survey shall 
be borne by the Port Authority.

    Section 2843--Modification of Authority for Conveyance of Naval 
         Computer and Telecommunications Station, Cutler, Maine

    This section would amend section 2853 of the Military 
Construction Authorization Act for Fiscal Year 2001 (division B 
of Public Law 106-398) by inserting ``any or'' before ``all 
right'' in order to permit the Department of the Navy to convey 
parcels of the real property to recently identified federal 
entities.

  Section 2844--Modification of Land Conveyance, Former United States 
            Marine Corps Air Station, Eagle Mountain, Texas

    This section would amend section 5 of Public Law 85-258, to 
permit the Texas Military Facilities Commission to use funds 
acquired through the leasing of Eagle Mountain Lake National 
Guard Training Site for other Texas National Guard facilities.

   Section 2845--Land Transfer and Conveyance, Naval Security Group 
                     Activity, Winter Harbor, Maine

    This section would authorize the Secretary of the Navy to 
transfer, without consideration, a parcel of real property, 
including improvements, of approximately 26 acres to the 
Secretary of the Interior. The transfer would occur concurrent 
with the reversion of administrative jurisdiction of a parcel 
of real property consisting of approximately 71 acres from the 
Secretary of the Navy to the Secretary of the Interior as 
authorized by Public Law 80-260. This section would authorize 
the Secretary of the Navy to convey, without consideration, any 
of the parcels of real property, including improvements, of 
approximately 485 acres and comprising the former facilities of 
the Naval Security Group Activity, Winter Harbor, Maine to the 
State of Maine, any subdivision of the State of Maine, or any 
tax-supported agency of the State of Maine. The Secretary of 
the Navy would transfer, without consideration, certain 
personal property associated with such real property. The 
Secretary of the Navy would maintain any real property until 
the earlier of the date of conveyance or September 30, 2003. 
The Secretary of the Navy may lease such parcels to certain 
persons or entities. The Secretary of the Navy may require each 
recipient of real property to reimburse the Secretary for 
certain costs. The cost of any survey shall be borne by the 
recipient or the real property.

                    Part III--Air Force Conveyances

  Section 2851--Water Rights Conveyance, Andersen Air Force Base, Guam

    This section would authorize the Secretary of the Air Force 
to convey water rights related to the Air Force properties Andy 
South, also known as the Andersen Administrative Annex, 
Marianas Bonis Base Command, and Andersen Water Supply Annex, 
also known as the Tumon Water Well or the Tumon Maui Well, 
located on Guam. The Secretary may exercise authority under 
certain specified conditions. This section would authorize the 
Secretary to require that the United States have the primary 
right to all water produced from Andy South and Anderson Water 
Supply Annex until a replacement water system is in working 
condition satisfactory to the Secretary. The Secretary may 
authorize the conveyee of the water system to sell to public or 
private entities such water from Andersen Air Force Base as the 
Secretary determines to be excess to the needs of the United 
States.

 Section 2852--Reexamination of Land Conveyance, Lowry Air Force Base, 
                                Colorado

    This section would direct the Secretary of the Air Force to 
reevaluate the terms and conditions of the pending negotiated 
sale agreement at Lowry Air Force Base, Colorado, with the 
Lowry Redevelopment Authority for certain real property in 
light of changed circumstances regarding the property. The 
reexamination shall determine whether changed circumstances 
warrant a reduction in the amount of consideration otherwise 
required under the agreement or other modifications to the 
agreement.

                       Subtitle E--Other Matters

Section 2861--Transfer of Jurisdiction for Development of Armed Forces 
                 Recreational Facility, Park City, Utah

    This section would authorize the Secretary of the Interior 
to transfer, without reimbursement, the administrative 
jurisdiction of a parcel of real property, including 
improvements, consisting of approximately 35 acres located in 
Park City, Utah and designated as parcel 3 by the Bureau of 
Land Management to the Secretary of the Air Force. The transfer 
would be completed no later than one year after the date of the 
enactment of this Act. This section would authorize the 
Secretary of the Air Force to use the real property as the 
location for an armed forces recreational facility to be 
developed using non-appropriated funds. The Secretary of the 
Air Force may return the transferred property to the 
administrative jurisdiction of the Secretary of the Interior 
upon certifying that development of the recreational facility 
would not be in the best interest of the United States. In lieu 
of developing the recreational facility, the Secretary of the 
Air Force may convey or lease the property to certain entities 
under certain specific alternative development authority. The 
cost of any survey shall be borne by the Secretary of the Air 
Force.

 Section 2862--Selection of Site for United States Air Force Memorial 
 and Related Land Transfers for the Improvement of Arlington Cemetery, 
                                Virginia

    This section would require the Secretary of Defense to 
offer, within 60 days after the date of the enactment of this 
Act, to the Air Force Memorial Foundation, an option to use, 
without reimbursement, up to three acres of the Arlington Naval 
Annex as the site within which the Foundation will construct 
the Air Force Memorial. Within 90 days after the date on which 
the Secretary of Defense makes the offer, the Foundation shall 
provide written notice to the Secretary of the decision of the 
Foundation to accept or decline the offer. If the Foundation 
accepts the offer, the Foundation shall relinquish all claims 
to the previously approved location of the memorial. If the 
Foundation declines the offer, the Foundation may resume its 
efforts to construct the memorial on the Arlington Ridge tract 
from the farthest point of progress. Not later than two years 
after the date on which the Foundation accepts the offer, and 
has made sufficient funds available to construct the memorial, 
the Secretary, in coordination with the Foundation, shall 
remove all structures and prepare the Arlington Naval Annex for 
use to permit construction and access of the memorial. Upon 
removal of structures and preparation of the property for use, 
the Secretary of Defense shall permit the Foundation to 
commence construction. This section would authorize the 
Secretary of Defense exclusive authority in all matters 
relating to the approval of the siting, design, and 
construction of the memorial. Within 30 days after the date of 
enactment of this Act, the Secretary of the Interior shall 
transfer, without reimbursement, to the Secretary of the Army 
administrative jurisdiction over the Arlington Ridge tract. 
This section would amend section 2902 of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B 
of Public Law 106-65) to prohibit consideration of the 
Arlington Naval Annex property as a possible site for a 
national military museum.

       Section 2863--Management of the Presidio of San Francisco

    This section would amend the Omnibus Parks and Public Lands 
Management Act of 1996 (Public Law 104-333) to authorize the 
Trust to make available to lease certain housing units to 
persons designated by the Secretary of the Army, within the 
Presidio of San Francisco, California. The monthly amount 
charged by the Trust for the lease of a housing units, 
including utilities and municipal services, shall not exceed 
the monthly rate of the basic allowance for housing. This 
section would also increase the borrowing authority authorized 
by section 104 of Public Law 104-333 from $50,000,000 to 
$150,000,000.

    Section 2864--Effect of Limitation on Construction of Roads or 
        Highways, Marine Corps Base, Camp Pendleton, California

    This section would amend section 2851 of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B 
of Public Law 105-261), as amended, to limit the effect of 
State law enacted after January 1, 2001, that would directly or 
indirectly prohibit or restrict the construction or approval of 
a road or highway within the easements granted under this 
section at Marine Corps Base, Camp Pendleton, California.

  Section 2865--Establishment of World War II Memorial at Additional 
                            Location on Guam

    This section would amend section 2886 of the Military 
Construction Authorization Act for Fiscal Year 2001 (division B 
of Public Law 106-398) by authorizing the establishment of an 
additional World War II Memorial on Federal lands near Yigo, 
Guam.

            TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

                         LEGISLATIVE PROVISIONS

                       Section 2901--Short Title

    This section would designate Title XXIX of this Act as the 
``Fort Irwin Military Land Withdrawal Act of 2001''.

Section 2902--Withdrawal and Reservation of Lands for National Training 
                                 Center

    This section would authorize the transfer of approximately 
110,000 acres in San Bernardino, California to the Secretary of 
the Army for certain specific purposes.

                Section 2903--Map and Legal Description

    This section would require the Secretary of the Interior to 
publish in the Federal Register a notice containing the legal 
description of the lands withdrawn and reserved by this title. 
This section requires the Secretary to file a map and legal 
description of the lands withdrawn and reserved by this title 
with the Committee on Energy and Natural Resources of the 
Senate and the Committee on Resources of the House of 
Representatives. Copies of the map and legal description shall 
be available at certain specific offices. The Secretary of the 
Army would reimburse the Secretary of the Interior for the 
costs incurred by implementing this section.

        Section 2904--Management of Withdrawn and Reserved Lands

    This section would require the Secretary of the Army, 
during the period of the withdrawal and reservation, to manage 
the lands withdrawn and reserved for the purposes specified in 
section 2902. This section would prohibit military use of the 
lands withdrawn and reserved that result in ground 
disturbances, as determined by the Secretary of the Army and 
the Secretary of the Interior until the Secretary of the Army 
and the Secretary of the Interior certify to Congress that 
there has been full compliance with respect to certain 
specified laws. This section would authorize the Secretary of 
the Army to post appropriate warning notices and take other 
steps as necessary to close any road, trail, or other portion 
of the lands withdrawn and reserved. This section would require 
the Secretary of the Army to prepare and implement an 
integrated natural resources management plan for the lands 
withdrawn and reserved.

                       Section 2905--Water Rights

    This section would prohibit the establishment of a 
reservation in favor of the United States with respect to any 
water or water right on the lands withdrawn or reserved. This 
section would not affect any water rights acquired or reserved 
by the United States before the date of enactment of this Act.

   Section 2906--Environmental Compliance and Environmental Response 
                              Requirements

    This section would authorize the Secretary of the Army and 
the Secretary of the Interior to enter into such agreements 
concerning the environment and public health as necessary, 
appropriate, and in the public interest to carry out the 
purposes of this title. This section would also provide that 
nothing in this section shall be construed to alter the rights, 
responsibilities, and obligations of the Secretary of the Army 
and the Secretary of the Interior under the Comprehensive 
Environmental Response, Compensation and Liability Act of 1980 
or any other environmental laws applicable to the lands 
withdrawn and reserved by this title.

         Section 2907--West Mojave Coordinated Management Plan

    This section would urge the Secretary of the Interior to 
complete the West Mojave Coordinated Management Plan not later 
than two years after the date of enactment of this Act. This 
section would require the Secretary of the Interior to consult 
with the Secretary of the Army and the Administrator of the 
National Aeronautics and Space Administration on the 
development of the plan.

            Section 2908--Release of Wilderness Study Areas

    This section would authorize that Congress finds and 
directs that lands withdrawn and reserved have been adequately 
studied for wilderness designation pursuant to the Federal Land 
Policy and Management Act of 1976.

   Section 2909--Training Activity Separation From Utility Corridors

    This section would require all military ground activity 
training on the lands withdrawn and reserved remain at least 
500 meters from any utility system in Utility Corridor D.

          Section 2910--Duration of Withdrawal and Reservation

    This section would, unless determined otherwise, terminate 
the withdrawal and reservation made by this title 25 years 
after the enactment of this Act. This section would, at the 
time of termination of the withdrawal and reservation, require 
the Secretary of the Interior to publish in the Federal 
Register an appropriate order that would state the date upon 
which the lands shall be restored to the public domain and 
open.

     Section 2911--Extension of Initial Withdrawal and Reservation

    This section would require the Secretary of the Army, no 
later than three years before the termination date, to notify 
Congress and the Secretary of the Interior concerning the 
military needs of the Army. If the Secretary of the Army 
determines that there will be a continuing military need, the 
Secretary would file with the Secretary of the Interior, within 
one year after the notification, an application for extension 
of the withdrawal and reservation. This section would authorize 
the Secretary of the Interior and the Secretary of the Army to 
submit to Congress a legislative proposal for the extension of 
the withdrawal and reservation made by this title.

              Section 2912--Termination and Relinquishment

    This section authorizes that if the Secretary of the Army 
determines within the first 22 years of the withdrawal and 
reservation that there is no continuing military need, the 
Secretary would submit to the Secretary of the Interior a 
notice of intent to relinquish jurisdiction over the lands. If 
the Secretary of the Interior accepts jurisdiction over any of 
the lands, the Secretary would publish in the Federal Register 
an appropriate order. All function under this section would be 
made on a parcel-by-parcel basis.

                 Section 2913--Delegation of Authority

    This section would authorize the Secretary of the Army and 
the Secretary of the Interior to delegate such functions 
determined appropriate to carry out this title.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AND AUTHORIZATION 
                        AND OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

                                OVERVIEW

    The budget request contained $13,355.2 million for the 
national security activities of the Department of Energy. Of 
this amount, $6,776.8 million is for the programs of the 
National Nuclear Security Administration and $6,578.4 million 
for defense environmental management and other defense 
activities. The committee recommends $13,355.2 million, the 
requested amount. The following table summarizes the budget 
request and the committee recommendations:

               Environmental and Other Defense Activities

                                Overview

    The budget request contained $6,578.4 million for 
environmental and other defense activities. The committee 
recommends $6,635.3, an increase of $56.9 million.

                       Items of Special Interest

Defense Environmental Management Privatization
    The budget request contained $141.5 million for Defense 
Environmental Management Privatization. This amount included 
funds for two new starts: $13.3 million for the Paducah 
Disposal Facility Privatization, Paducah, Kentucky; and $2.0 
million for the Portsmouth Disposal Facility, Portsmouth, Ohio. 
Both of these projects are for nuclear waste disposal at 
gaseous diffusion plants leased from the Department of Energy 
by the United States Enrichment Corporation.
    The committee notes that environmental management 
activities at the nation's three gaseous diffusion plants is 
carried out under the Uranium Enrichment Decontamination and 
Decommissioning Fund, which was established in 1992 to address 
the cleanup liabilities at those plants attributable to 
historical Department of Energy operations for weapons and 
commercial fuel production. The committee also notes that the 
Uranium Enrichment Decontamination and Decommissioning Fund is 
not budgeted within the national defense budget function. 
Therefore, the committee recommends no funds for these two new 
starts, a decrease of $15.3 million for Defense Environmental 
Management Privatization, since it believes they should be 
accomplished using the Uranium Enrichment Decontamination and 
Decommissioning Fund.
Hanford site operations, Richland, Washington
    The budget request contained $500.0 million for the Waste 
Treatment and Immobilization Plant Construction project within 
the Office of River Protection, Richland, Washington. The 
committee recommends an increase of $20.0 million in order to 
meet compliance deadlines. While the budget request for this 
project represents an increase from fiscal year 2001, the 
committee is concerned that it is insufficient to meet the 
contractual obligations contained in the Tri-Party Agreement. 
The committee continues to support full funding for this 
project in order to insure that the federal government meets 
its legally binding commitment to the State of Washington and 
urges the Department of Energy to provide adequate funding in 
future years to ensure that the schedule for the River 
Protection projects is maintained.
    The committee also supports the proposal by the Richland 
Operations Office to move forward with an accelerated river 
protection project as set forth in the Hanford Site Columbia 
River Corridor Cleanup Report. The committee urges the 
Department of Energy to focus its efforts on moving forward 
with a closure contract in fiscal year 2002 with a goal of 
completing critical work by fiscal year 2012. The committee 
believes thatadherence to this schedule will allow for the 
overall reduction in the size of the Hanford site and ultimately save 
the federal government hundreds of millions of dollars annually.

Plutonium stabilization and packaging

    The budget request contained $4.0 million for Project 
Engineering and Design work on the 235-F Packaging and 
Stabilization project at the Savannah River Site, Aiken, South 
Carolina. The project was to design the modification of 
Building 235-F for the installation of stabilization furnaces 
and packaging equipment to stabilize and package plutonium at 
the Savannah River Site. The Defense Nuclear Facilities Safety 
Board (DNFSB) has placed a high priority on stabilizing, 
packaging, and safely storing these legacy materials while they 
await final disposition.
    In mid-June 2001, the Department of Energy informed the 
committee that the budget request for Project Engineering and 
Design work on the 235-F project would not be required, because 
the project was being terminated due to a projected, 
unaffordable cost. Subsequently, the Department has decided to 
stabilize and package the plutonium by processing it within the 
FB-Line at Savannah River.
    To accomplish this new project, the committee recommends 
the establishment of a construction line, 02-D-420, FB Line 
Plutonium Stabilization and Packaging, and recommends $20.0 
million for the project. The committee hopes this new project 
will move expeditiously to complete stabilization and packaging 
of all plutonium at Savannah River by June 2008 in accordance 
with the Department's commitment to the DNFSB.

Post 2006 completion

    The budget request contained $586.0 million for post 2006 
environmental cleanup activities at the Savannah River Site, 
Aiken, South Carolina, $116.7 million less than was enacted for 
fiscal year 2001. The committee is disturbed by this situation 
and the disruption it will cause to current cleanup schedules. 
Consequently, the committee recommends $667.0 million, an 
increase of $81.0 million, for post 2006 cleanup activities at 
the Savannah River Site.

                National Nuclear Security Administration

                                Overview

    The budget request contained $6,776.8 million for the 
National Nuclear Security Administration for fiscal year 2002. 
The committee recommends $6,859.9 million, an increase of $83.1 
million.

                       Items of Special Interest

Budget structure of the National Nuclear Security Administration

    The committee notes that section 3253 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65), as amended by section 3154 of the National 
Defense Authorization Act of 2001 (Public Law 106-398), 
requires the Administrator of the National Nuclear Security 
Administration to submit to Congress each year, at or about the 
time of the Department of Energy's budget submission to 
Congress, a future years nuclear security program. The future 
years program shall cover the fiscal year for which the budget 
is submitted and at least the four succeeding years and shall 
specify proposed budget authority and describe in detail how 
the funds will be used to support the mission of the NNSA. The 
committee observes that it has still not received the future 
years nuclear security program that was to have been submitted 
with the fiscal year 2002 budget request, although it 
understands that such a document has been prepared. The 
committee expects to receive this document not later than the 
submission date of the fiscal year 2003 budget request.

Computer security

    The committee recommends $448.9 million, the budget 
request, for Safeguards and Security. The authorization 
includes $30.0 million for the Integrated Cyber Security 
Initiative (ICSI) program, which when combined with the base 
program, doubles funding for cyber security over the fiscal 
year 2001 level. At the same time, the committee notes the 
Administrator's concern that the current budget does not allow 
the National Nuclear Security Administration to address the 
long-term solutions set forth in the ICSI plan submitted to 
Congress in March 2001. The committee understands the need to 
prioritize requirements, but given events of the past several 
years, is highly sensitized to computer security issues, and 
intends to closely monitor this topic in future budget cycles.

Critical weapons components

    The committee understands that certain materials and 
components are absolutely critical to the functioning of 
nuclear weapons, that these items have little or no application 
outside the nuclear weapons complex, and that it is therefore 
incumbent upon the Department of Energy to take all steps 
necessary to ensure their future availability in sufficient 
quantity and quality to meet the needs of the enduring 
stockpile. Of special interest are tritium, which has not been 
produced since 1988, and plutonium pits, which have not been 
manufactured since 1989. To a significant extent, the success 
of the National Nuclear Security Administration will hinge on 
its ability to solve these long-standing deficiencies.
    The committee recommends $139.5 million for the tritium 
readiness campaign. This includes an increase of $15.0 million 
to support preliminary design activities and engineering 
development and demonstration work for the back-up technology, 
accelerator production of tritium (APT). The committee urges 
the NNSA to complete these APT activities as soon as possible 
to make resources available for other critical needs.
    Using the primary technology, the tritium campaign appears 
on schedule to begin irradiation of tritium-producing rods in 
commercial light water reactors in fiscal year 2003 and to 
begin production extraction in fiscal year 2006. If the 
Strategic Defense Review does not lead to new reductions in the 
nuclear weapons stockpile, the committee notes that this 
schedule may lead to a one-year draw down in the five-year 
tritiumreserve. However, the committee believes replenishment 
of this reserve can be made up in future production.
    Production and certification of plutonium pits remain 
congressional interest items. For the pit manufacturing and 
certification campaign, the committee recommends the budget 
request of $128.5 million, including $122.5 million for W88 pit 
manufacturing and certification, $4.0 million to begin the task 
of understanding manufacturing and certification requirements 
for other stockpile warheads, and $2.0 million to support pre-
conceptual design activities in support of a modern pit 
facility.
    The committee understands that only one W88 warhead 
surveillance pit remains for destructive testing purposes but 
notes good progress toward establishing a limited manufacturing 
capability at Los Alamos National Laboratory, with production 
of certifiable pits scheduled to begin in fiscal year 2003.
    In contrast, W88 pit certification has slipped from fiscal 
year 2007 to fiscal year 2009, with no commitment to meeting 
the latter date. The committee understands both the difficulty 
of certifying a pit with extremely high confidence in the 
absence of nuclear testing, as well as the potential national 
security consequences of a failure in this area. The committee 
is concerned that the budget request woefully under funds this 
important activity and urges the NNSA to place higher priority 
on pit certification in future budget submissions.
    Finally, the committee notes that it still has not received 
the report required by the conference report accompanying the 
Energy and Water Development Appropriations Act for Fiscal Year 
2001 (H. Rept. 106-907), which contains current project 
schedules and cost estimates for production and certification 
of W88 pits. The committee understands that the report is 
complete and requests its expeditious submission.

Defense Nuclear Counterintelligence budget

    The budget request contained $46.4 million for the 
Department of Energy's counterintelligence activities. The 
committee notes that section 3232 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) 
established the Office of Defense Nuclear Counterintelligence 
within the National Nuclear Security Administration (NNSA). The 
committee also notes that section 3251 of Public Law 106-65 
required that the budget request for offices of the NNSA be set 
forth separately from other elements of the Department. The 
committee expects that the Department will comply with section 
3251 of Public Law 106-65 in the future and that budget 
requests for the NNSA's Office of Defense Nuclear 
Counterintelligence will be set forth separately from the 
requests for the Department's Office of Counterintelligence.

Directed stockpile work

    Of the various activities performed by the National Nuclear 
Security Administration, directed stockpile work has arguably 
the most immediate impact on maintaining the safety, 
reliability, and performance of the enduring nuclear weapons 
stockpile. The committee recommends the budget request of 
$1,043.8 million for this important effort.
    The committee notes the continuing progress of the W87 
Peacekeeper intercontinental ballistic missile warhead life 
extension program, the first major retrofit of a nuclear 
warhead in a decade. The committee further notes that 
preparatory activities leading up the to the refurbishment of 
the B61 gravity bomb are on schedule for a first production 
unit in fiscal year 2004.
    The committee is somewhat concerned, however, that the 
budget request does not support the scope and schedule of 
refurbishment activities on the W76 submarine launched 
ballistic missile warhead and the W80 cruise missile warhead 
that were agreed in the Nuclear Weapons Council in fiscal year 
2000. The committee expects to be apprised of the 
Administration's preferred path forward as the results of the 
ongoing Strategic Defense Review are finalized.

Facilities and infrastructure

    The committee notes that almost half of the structures in 
the nuclear weapons complex are more than 50 years old and 
understands the magnitude of the problem to revitalize the 
complex as currently sized. The committee is aware of the 
Department of Energy's ongoing assessment and planning 
activities to address this problem but, given the total funding 
requirement, is concerned that the Department is not yet 
prepared to efficiently execute this infrastructure 
revitalization effort. The committee directs the Administrator 
of the Nuclear National Security Administration to provide a 
semi-annual report to Congress on the status of the facilities 
and infrastructure program. The report should include the 
current priority list of proposed facilities and infrastructure 
projects, including cost and schedule requirements. For each 
site, the report should include: a current 10-year site plan 
that demonstrates the reconfiguration of its facilities and 
infrastructure to meet its missions and to address its long-
term operational costs and return on investment; the current 
budget for all facilities and infrastructure funding in this 
program as well as all funding for maintenance and 
infrastructure upgrades funded through other parts of the 
budget; and the current status of each facilities and 
infrastructure project compared to the original baseline cost, 
schedule, and scope.
    The committee recommends $50.6 million to establish a new 
program line for infrastructure maintenance and re-
capitalization. In order to ensure the future operational 
readiness of the weapons complex, the committee directs that 
these funds should be used to begin to the revitalization of 
the Pantex and Y12 plants in the amounts of $40.0 million and 
$10.6 million, respectively.

International nuclear safety

    The committee is aware that the International Nuclear 
Safety program is designed to improve the safety of the 
Chernobyl-generation, Russian-designed nuclear reactors located 
in the countries of the former Soviet Union. The program is 
funded by the U.S. Department's of Energy and State with 
contributions by European countries located in proximity to the 
states of the former Soviet Union.
    The committee believes that it would be more appropriate 
for the International Nuclear Safety program to be funded as a 
foreign assistance effort by the Department of State. 
Consequently, the committee recommends that the funding 
responsibility for theInternational Nuclear Safety program be 
assumed by the Department of State in the budget for fiscal year 2003. 
If Department of State officials require Department of Energy technical 
assistance, such assistance should be provided as ``work for others'' 
and funded by the Department of State.

Initiatives for proliferation prevention and the Nuclear Cities 
        Initiative

    The budget request contained $22.1 million for the 
Initiatives for Proliferation Prevention (IPP) and $6.6 million 
for the Nuclear Cities Initiatives (NCI). The objective of each 
of these programs is to provide gainful employment in the 
commercial sector for former Russian nuclear weapons 
scientists, engineers, and technicians to avert the risk of 
these scientists accepting employment offers by nuclear 
programs of countries of proliferation concern. NCI is also 
designed to assist the Russian Ministry of Atomic Energy 
(MINATOM) in the restructuring and closure of portions of the 
Russian nuclear complex through local economic development.
    In May 2001, the General Accounting Office (GAO) reported 
on these programs and found that the NCI program insufficiently 
reviewed potential projects for commercial viability and 
sustainability. GAO reported that too often the NCI programs 
were directed to community development and infrastructure 
improvement instead of economic development designed to employ 
former nuclear scientists. Conversely, GAO reports that the IPP 
program has a strengthened project review and selection process 
that focuses on the commercialization of projects and job 
creation. GAO recommended that since IPP and NCI share a common 
goal and, in many cases, are implementing similar types of 
projects, the National Nuclear Security Administration should 
consider consolidating them into one effort. The committee 
agrees with this recommendation and directs such consolidation 
in section 3133.
    In addition, the committee is concerned that, according to 
GAO, only 30 percent of the NCI funds have been spent for 
projects and activities in Russia and that two-thirds of NCI 
funds were spent at the Department's national laboratories. Of 
that amount, 34 percent paid for labor at the laboratories, and 
41 percent was spent on overhead costs. The committee believes 
that the Administrator of the NNSA should work to reduce the 
portion of funds spent on overhead at the national laboratories 
for these nonproliferation activities and transfer that funding 
to the projects in Russia that the programs are designed to 
support.

National Ignition Facility

    The budget request contained $467.9 million for the 
Inertial Confinement Fusion and High Yield campaign: $222.9 
million for operations and maintenance (O&M) and $245.0 million 
for National Ignition Facility (NIF) construction (96-D-111).
    The committee recommends the budget request for NIF 
construction and $232.9 million for O&M, an increase of $10.0 
million, to be used to compensate for funding shortfalls in the 
NIF demonstration program, which supports risk reduction and 
technology development activities. The committee notes 
significant improvements in NIF program oversight, management, 
and planning but is concerned about the remaining technical 
challenges the program faces. The committee expects to be 
expeditiously informed of any further schedule delays or cost 
overruns.
    Although NIF provides exciting opportunities in basic and 
applied research for a broader user community, the committee 
believes that its primary focus must be meeting the 
requirements of the Stockpile Stewardship Program to guarantee 
the safety, reliability, and performance of the nuclear weapons 
stockpile, and that it should be managed accordingly.

National Nuclear Security Administration's planning, programming, and 
        budgeting system

    The committee notes that several independent observers have 
criticized the lack of a unified planning, programming, and 
budgeting process within the nuclear weapons complex. The 
committee further notes that the Administrator of the National 
Nuclear Security Administration has pledged to implement such a 
system and to begin developing multiyear budgets and program 
plans. However, the committee is concerned that the 
Administrator has delayed his target date for implementing such 
a system until the fiscal year 2004 budget cycle and urges him 
to take steps necessary to ensure that there are no further 
delays in implementing this system.

National Nuclear Security Administration's reorganization plan

    The committee notes that section 3153 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 
(Public Law 106-398) required the Administrator for Nuclear 
Security to submit by May 1, 2001, a plan for assigning roles 
and responsibilities among the National Nuclear Security 
Administration's headquarters and field units. The report 
should describe any downsizing, consolidations, or eliminations 
of headquarters and field elements needed to enhance the 
Administration's efficiency. The committee observes that 
independent reviewers have criticized the defense nuclear 
complex's fragmented lines of authority, confused roles and 
responsibilities, and reliance on a large federal workforce to 
oversee its contractors.
    The committee notes that on May 3, 2001, the Administrator 
submitted an ``initial'' report outlining plans to realign the 
Administration's headquarters units into programmatic and 
support components and to transfer responsibility for the field 
elements to a newly-created support component. The committee is 
concerned that the report did not: (1) define field element 
roles and responsibilities; (2) describe in detail how field 
elements would interact with realigned headquarters units; or 
(3) describe potential consolidations or eliminations, as 
called for by section 3153 of Public Law 106-398. The committee 
is also concerned that the new organization would not be 
demonstrably flatter than the Administration's current 
structure and that it might create new sources of confusion by 
requiring field elements to report to a support office while 
overseeing projects for a program office. Consequently, the 
committee urges the Administrator to comply fully with section 
3153 of Public Law 106-398 and submit, as soon as possible, a 
detailed plan for redefining and streamlining the 
Administration's entire organization.

Naval Reactors Program

    The committee recommends the budget request of $688.0 
million for the Naval Reactors program. The committee notes 
that the Navy currently operates 102 nuclear reactors, nearly 
identical to the number of U.S. commercial power generating 
reactors, and that over 40 percent of major combatants rely on 
nuclear propulsion. The committee continues to be impressed by 
the professional execution of the Naval Reactors program, as 
well as its remarkable safety record and overall value to the 
nation.

Recruitment and retention

    The committee is acutely aware of the problem of recruiting 
and retaining a properly skilled work force that the National 
Nuclear Security Administration faces in both the contractor 
and the federal work forces. The complex is losing talent at a 
steady rate through the retirement of senior scientists, 
engineers, and technicians with underground test experience, as 
well as through the separation of mid-career professionals 
leaving for other opportunities. In addition, the Report of the 
US Commission on National Security/21st Century (known commonly 
as the Hart-Rudman Report) recently ``. . . found broad 
consensus that the [national] labs are no longer competitive in 
attracting and keeping new scientific talent'', citing a 
combination of factors that include lack of a compelling post 
Cold War sense of mission, the negative impact on morale of 
recent highly public controversies, and superior private sector 
opportunities. The committee strongly advises the Department of 
Energy to make retention a top priority.
    In part, the recruitment problem stems from the dwindling 
pool of new university graduates trained in disciplines 
relevant to stockpile stewardship that also meet security 
clearance requirements for positions of great trust. The 
committee strongly supports programs at our nation's 
universities that endeavor to reverse the decline of U.S. 
leadership in a number critical science and engineering fields, 
including high energy density physics, plasma physics, high 
field physics, the science of extreme ultraviolet/soft x-ray 
light sources, pulsed power engineering, and inertial 
confinement fusion research. University programs in these areas 
support, in a cost effective manner, the research and training 
of our national laboratories' future stockpile stewards. 
However, the committee believes that the Department should 
pursue innovative approaches to recruitment, such as offering 
graduate scholarships in critical science and engineering 
disciplines in exchange for a commitment to a period of 
national service, as suggested in the Hart-Rudman Report.

                         LEGISLATIVE PROVISIONS

         Subtitle A--National Security Programs Authorizations

         Section 3101--National Nuclear Security Administration

    This section would authorize funds for the National Nuclear 
Security Administration for fiscal year 2002.

  Section 3102--Defense Environmental Restoration and Waste Management

    This section would authorize funds for environmental 
restoration and waste management activities of the Department 
of Energy for fiscal year 2002.

                 Section 3103--Other Defense Activities

    This section would authorize funds for other defense 
activities of the Department of Energy for fiscal year 2002.

      Section 3104--Defense Environmental Management Privatization

    This section would authorize funds for defense 
environmental management privatization activities of the 
Department of Energy for fiscal year 2002.

              Section 3105--Defense Nuclear Waste Disposal

    This section would authorize funds for defense nuclear 
waste disposal activities of the Department of Energy for 
fiscal year 2002.

                Subtitle B--Recurring General Provisions

                      Section 3121--Reprogramming

    This section would prohibit the reprogramming of funds in 
excess of the amount authorized for the program until the 
Secretary of Energy has notified the congressional defense 
committees and a period of 30 days has elapsed after the date 
on which the notification is received.

             Section 3122--Limits on General Plant Projects

    This section would limit the initiation of general plant 
projects if the current estimated cost for any project exceeds 
$5.0 million and would require the Secretary of Energy to 
notify the congressional defense committees in the event the 
estimated cost of any project exceeds $5.0 million and the 
reasons for the cost variation.

             Section 3123--Limits on Construction Projects

    This section would permit the initiation and continuation 
of any construction project only if the estimated cost for the 
project does not exceed 125 percent of the higher of: (1) the 
amount authorized for the project; or (2) the most recent total 
estimated cost presented to Congress as justification for such 
project. To exceed this limit, the Secretary of Energy must 
report in detail the reason therefore to the congressional 
defense committees and the report must be before the committees 
for 30 legislative days. Thissection would also specify that 
the 125 percent limitation would not apply to projects estimated to 
cost under $5.0 million.

                 Section 3124--Fund Transfer Authority

    This section would authorize the Secretary of Energy to 
transfer funds 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 funds made available to the agency to which they 
are transferred.

     Section 3125--Authority for Conceptual and Construction Design

    This section would require the Secretary of Energy to 
certify that a conceptual design for a construction project has 
been completed prior to requesting funding for that project, 
except in the case of emergencies.

Section 3126--Authority for Emergency Planning, Design and Construction 
                               Activities

    This section would authorize the Secretary of Energy to 
perform planning and design for construction activities 
utilizing available funds for any Department of Energy national 
security program construction project whenever the Secretary 
determines that the design must proceed expeditiously to 
protect the public health and safety, to meet the needs of 
national defense, or to protect property.

Section 3127--Funds Available for All National Security Programs of the 
                          Department of Energy

    This section would authorize, subject to section 3121 of 
this Act, amounts appropriated for management and support 
activities and for general plant projects to be made available 
for use in connection with all national security programs of 
the Department of Energy.

                  Section 3128--Availability of Funds

    This section would allow funds authorized for the various 
activities of the National Nuclear Security Administration and 
environmental management activities of the Department of Energy 
to remain available until expended, except for program 
direction funds, which would remain available until the end of 
fiscal year 2003.

 Section 3129--Transfers of Defense Environmental Management Funds at 
               Field Offices of the Department of Energy

    This section would provide the manager of each field office 
of the Department of Energy with limited authority to transfer 
defense environmental management funds from a program or 
project under the jurisdiction of the office to another such 
program or project.

    Section 3130--Transfers of Weapons Activities Funds at National 
    Security Laboratories and Nuclear Weapons Production Facilities

    This section would provide the head of each national 
security laboratory and each nuclear weapons production 
facility with limited authority to transfer weapons activities 
funds from a program under the jurisdiction of the national 
security laboratory or production facility to another such 
program of the national security laboratory or production 
facility.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Section 3131--Termination Date of Office of River Protection, Richland, 
                               Washington

    This section would extend the statutory termination date of 
the Office of River Protection, Richland Washington, from 
September 30, 2004, to the later of September 30, 2010, or upon 
the determination that continuation of the Office is no longer 
necessary to carry out the Department's responsibilities under 
the Hanford Federal Facility Agreement and Consent Order 
entered into among the Department of Energy, the Environmental 
Protection Agency, and the State of Washington Department of 
Ecology.

    Section 3132--Organizational Modifications for National Nuclear 
                        Security Administration

    This section would establish, within the National Nuclear 
Security Administration, a Principal Deputy Administrator who 
would be appointed by the President with the advice and consent 
of the Senate to perform such duties as the Administrator of 
the National Nuclear Security Administration may prescribe and 
act for the Administrator when the Administrator is disabled or 
the office of the Administrator is vacant. This section would 
also eliminate: (1) a statutory requirement that the heads of 
the national security laboratories and nuclear weapons 
production facilities report to the Administration's Deputy 
Administrator for Defense Programs; and (2) a duplicative 
statutory prohibition on the ability of non-Administration 
employees of the Department to serve concurrently in the 
Administration.

 Section 3133--Consolidation of Nuclear Cities Initiative Program with 
            Initiatives for Proliferation Prevention Program

    This section would require the Administrator for Nuclear 
Security to consolidate the Nuclear Cities Initiative program 
with the Initiatives for Proliferation Prevention program not 
later than July 1, 2002, as described elsewhere in this report.

Section 3134-Disposition of Surplus Defense Plutonium at Savannah River 
                      Site, Aiken, South Carolina

    This section would require the Secretary of Energy to 
consult with the Governor of South Carolina on any decisions or 
plans regarding the disposition of surplus defense plutonium at 
the Savannah River Site and to submit a plan to Congress by 
February 1, 2002, for the disposal of surplus defense plutonium 
currently located at the site, as well as for defense plutonium 
that may be shipped there in the future. The plan shall review 
each option considered for such disposal, identify the 
preferred option, and state the cost of construction and 
operation of the facilities required by the Department's Record 
of Decision dated January 14, 1997. The plan shall also specify 
a schedule for the expeditious construction of such facilities 
and the means by which all such plutonium will be removed from 
the Savannah River Site. This section would further require the 
Secretary to modify the design of the Mixed Oxide Fuel 
Fabrication facility to provide immobilization capability if 
the Secretary determines that construction of the Plutonium 
Immobilization facility at the Savannah River site is not 
feasible. If the plan is not submitted by February 1, 2002, the 
Secretary would be prohibited from shipping plutonium to the 
Savannah River Site from that date forward until the plan is 
submitted.

Section 3135-Support for Public Education in the Vicinity of Los Alamos 
                    National Laboratory, New Mexico

    This section would authorize the Secretary of Energy to pay 
$5.0 million to the Los Alamos National Laboratory Foundation 
and an $8.0 million extension of the contract between the 
Department of Energy and the Los Alamos Public Schools. For 
fiscal year 2003, the section would authorize the Secretary of 
Energy to take similar actions subject to the availability of 
appropriations.
    The section would also require the Secretary to submit to 
the congressional defense committees, no later than March 1, 
2002, an evaluation of the need for continued payments beyond 
fiscal year 2003.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

                         LEGISLATIVE PROVISIONS

                       Section 3201-Authorization

    This section would authorize $18.5 million for the Defense 
Nuclear Facilities Safety Board for fiscal year 2002.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

                         LEGISLATIVE PROVISIONS

                        Section 3301-Definitions

    This section would provide the definitions used in this 
title.

            Section 3302-Authorized Uses Of Stockpile Funds

    This section would authorize $65.2 million from the 
National Defense Stockpile Transaction Fund for the operation 
and maintenance of the National Defense Stockpile for fiscal 
year 2002. The provision would also permit the use of 
additional funds for extraordinary or emergency conditions 45 
days after a notification to Congress

 Section 3303--Disposal of Excess Materials from the National Defense 
                               Stockpile

    This section would provide authorization for the Department 
of Defense to dispose of materials in the National Defense 
Stockpile that are no longer needed for national security 
purposes.

   Section 3304--Expedited Implementation of Authority to Dispose of 
                 Cobalt From National Defense Stockpile

    This section would amend section 3305(a)(1) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85) to permit the sale of cobalt from the National Defense 
Stockpile during fiscal year 2002.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                         LEGISLATIVE PROVISIONS

             Section 3401--Authorization of Appropriations

    This section would authorize $17.4 million for fiscal year 
2002 for the operation of the Naval Petroleum and Oil Shale 
Reserves.

                  TITLE XXXV--MARITIME ADMINISTRATION

                       ITEMS OF SPECIAL INTEREST

                        Merchant Marine Academy

    The budget request contained $47.8 million for the U.S. 
Merchant Marine Academy (USMMA). The committee remains 
concerned that health and safety hazards to the cadets and 
staff continue due to the appalling condition of the physical 
plant and infrastructure at the institution. The budget request 
included $13.0 million for needed capital improvements. This 
funding level will begin to buy down the backlog of deferred 
maintenance and facilities replacement. The committee urges the 
Maritime Administration to pursue aggressively funding levels 
that will insure that the physical plant at the Academy is 
brought up to safe and appropriate commercial standards as 
quickly as practicable.

                             Ship Scrapping

    The budget request contained $10.0 million for the disposal 
of three obsolete vessels. Section 3502 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398) required the Administrator of the Maritime 
Administration to dispose of all vessels in the National 
Defense Fleet that are not assigned to the Ready Reserve Force 
or otherwise designated for a specific purpose by September 30, 
2006. The committee understands that the Maritime 
Administration will need to scrap over 30 vessels per year to 
meet the goal of scrapping 140 vessels by the statutorily 
imposed deadline. The cost to accomplish this goal will exceed 
$350.0 million based on current estimates. While $10.0 million 
may be sufficient to develop an initial disposal program in 
fiscal year 2002, the committee notes that substantial 
additional resources must be provided in future years to meet 
the deadlines. The committee strongly urges the Maritime 
Administration to present funding levels in the next fiscal 
years for this program that are more appropriate to the task 
facing the agency. The committee notes that the Navy has had a 
ship disposal program since 1999 and has made a number of 
refinements in that program that enhance efficiency and at the 
same time protect health, safety, and the environment. The 
committee expects the Maritime Administration to administer its 
ship disposal program in a way that obtains the best value to 
the government while providing the same level of protection for 
health, safety, and the environment as the Navy program. 
Finally, the committee expects that there will be no 
discrimination among domestic scrapping facilities and that 
domestic scrapping facilities are selected based on criteria 
that will result the scrapping of vessels at the least cost to 
the government, in a timely way, and in a manner that provides 
the requisite level of protection for health, safety, and the 
environment.

                    Title XI Loan Guarantee Program

    The budget request contained $3.9 million to fund 
administrative expenses associated with the management of the 
title XI loan guarantee program. The budget request contained 
no funds for costs, as defined in section 502 of the Federal 
Credit Reform Act of 1990 (Public Law 93-344). The committee 
recommends $103.9 million for the Title XI program, an increase 
of $100.0 million above the budget request.

 Transfer of the Maritime Security Program to the Department of Defense

    The committee notes the proposal of the administration to 
transfer the funding and management of the Maritime Security 
Program from the Department of Transportation to the Department 
of Defense. The committee has not received sufficient 
justification to transfer a program that by all accounts is 
managed effectively and efficiently at the Department of 
Transportation, nor has the committee received any information 
that would suggest that DOD operational requirements 
necessitate a transfer. In addition, the committee has not been 
presented with any evidence that such a transfer would result 
in cost savings. The committee is therefore not recommending a 
transfer of the Maritime Security Program to the Department of 
Defense's National Defense Sealift Fund. To reflect this 
decision, the committee has transferred $98.7 million from the 
National Defense Sealift Fund (budget function 051) to the 
Maritime Administration within the Department of Transportation 
(budget function 054).

                         LEGISLATIVE PROVISIONS

   Section 3501--Authorization of Appropriations for Fiscal Year 2002

    This section would authorize a total of $203.0 million for 
fiscal year 2002, an increase of $100 million above the budget 
request, for the Maritime Administration. Of the funds 
authorized, $89.0 million would be for operations and training 
programs, $100.0 million would be for the costs as defined in 
section 502 of the Federal Credit Reform Act of 1990 (Public 
Law 93-344), of loan guarantees authorized by Title XI of the 
Merchant Marine Act, 1936, as amended, $3.9 million would be 
for administrative expenses related to providing these loan 
guarantees, and $10.0 million would be for the disposal of 
obsolete ships in the National Defense Reserve Fleet.

Section 3502--Define ``War Risks'' to Vessels to Include Confiscation, 
     Expropriation, Nationalization, and Deprivation of the Vessels

    This section would clarify and expand the authority of the 
Maritime Administration to issue war risk insurance coverage 
for losses from hostile acts including confiscation, 
expropriation, nationalization, and deprivation. As a result of 
several recent seizures, commercially available insurance has 
become unreasonably expensive, particularly as it relates to 
salvage ships. Without insurance, private salvage operators 
under contract to the Navy are unable to fulfill their 
obligations. This change also expands the coverage to 
circumstances that might arguably not fall within the context 
of a traditionally defined ``war risk.''

 Section 3503--Holding Obligor's Cash as Collateral Under Title XI of 
                       Merchant Marine Act, 1936

    This section would amend Title XI of the Merchant Marine 
Act, 1936, as amended by establishing a new section that will 
allow the Maritime Administration to hold and invest cash 
collateral derived from Title XI proceeds in the U.S. Treasury. 
It will further relieve obligors and the Maritime 
Administration from spending substantial time and money 
associated with negotiating depository agreements and preparing 
legal opinions in Title XI transactions.

                           DEPARTMENTAL DATA

    The Department of Defense requested legislation, in 
accordance with the program of the President, as illustrated by 
the correspondence set out below:

              DEPARTMENT OF DEFENSE AUTHORIZATION REQUEST

                             Department of Defense,
                                 Office of General Counsel,
                                     Washington, DC, June 29, 2001.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: The Department of Defense proposes the 
enclosed draft legislation, ``To authorize appropriations for 
fiscal year 2002 for military activities of the Department of 
Defense, to prescribe military personnel strengths for fiscal 
year 2002, and for other purposes.''
    This legislative proposal is part of the Department of 
Defense Legislative Program for the First Session of the 107th 
Congress and is necessary to carry out the President's budget 
plans for fiscal year 2002. The Office of Management and Budget 
advises that there is no objection to the presentation of this 
proposal to the Congress, and that its enactment would be in 
accord with the program of the President.
            Sincerely,
                                      William J. Haynes II,
                                                   General Counsel.
    Enclosures.

              MILITARY CONSTRUCTION AUTHORIZATION REQUEST

                             Department of Defense,
                                 Office of General Counsel,
                                   Washington, DC, August 16, 2001.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: The Department of Defense proposes the 
enclosed legislation relating to the operation and management 
of the Department of Defense. These proposals are part of the 
legislative program for the Department of Defense for the First 
Session of the 107th Congress and we urge their enactment.
    Enclosed is legislation to authorize military construction 
and facility management for the military departments, the 
defense agencies, the North Atlantic Treaty Organization 
Security Investment program, and the National Guard and Reserve 
components. We propose that the successful pilot program, the 
alternative authority for acquisition and improvement of 
military housing, be made permanent. We seek your authority to 
authorize the Secretaries of the military departments to convey 
surplus property, when appropriate, to state or local 
governments for conservation of natural resources. We propose a 
pilot program in which we can assign certain private sector 
personnel to the Department for a limited period so that we can 
take advantage of their skills while providing them knowledge 
of our processes and methods. We also propose that limitations 
on contracting for fire fighting and security guard services be 
eliminated so that the Department may contract for such support 
when appropriate for our military installations.
    We seek the repeal of any limitations on the retirement or 
dismantlement of strategic nuclear delivery systems. This will 
enhance the President's flexibility to set strategic force 
structure for the defense of the United States. We propose the 
inclusion of government contractors in chemical weapons 
inspections at government-owned facilities under the Chemical 
Weapons Convention. We also request authority for the Secretary 
of a military department to promote fully-qualified officers to 
the grade of captain in the Army, Air Force or Marine Corps or 
Lieutenant in the Navy without convening a selection board.
    The Office of Management and Budget advises that there is 
no objection, from the standpoint of the Administration's 
program, to the presentation of these initiatives for your 
consideration and the consideration of the Congress.
            Sincerely,
                                               Daniel J. Dell'Orto,
                                  Principal Deputy General Counsel.
    Enclosures.

                           COMMITTEE POSITION

    On August 1, 2001 the Committee on Armed Services, a quorum 
being present, approved H.R. 2586, as amended, by a vote of. 
58-1.

                  COMMUNICATIONS FROM OTHER COMMITTEES

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                   Washington, DC, August 14, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: This letter concerns the jurisdictional 
interest of the Committee on Transportation and Infrastructure 
in H.R. 2586, the Department of Defense Authorization Act for 
Fiscal Year 2002.
    H.R. 2586, as ordered reported by the Committee on Armed 
Services, contains many provisions over which the Committee on 
transportation and Infrastructure has jurisdiction. As in 
previous bills, these include all sections that affect the pay, 
benefits, and personnel of the United States Coast Guard and 
the United States Coast Guard Reserve.
    Our committee recognizes the importance of H.R. 2586 and 
the need for this legislation to move expeditiously. While we 
have a valid claim to jurisdiction over a number of provisions 
in the bill, including many that affect the United States Coast 
Guard, I do not intend to request a sequential referral of the 
bill. This is, of course, conditional on our mutual 
understanding that nothing in this legislation waives or 
affects the jurisdiction of the Transportation Committee, that 
every effort will be made to include any agreements worked out 
by our staffs as the bill is taken to the Floor, and that a 
copy of this letter and your response will be included in the 
Committee Report and as part of the record during consideration 
of the bill by the House.
    The Committee on Transportation and Infrastructure also 
requests to be included as conferees on the provisions over 
which we have jurisdiction.
    Thank you for your cooperation in this matter.
            Sincerely,
                                               Don Young, Chairman.
                                ------                                

                          House of Representatives,
                               Committee on Armed Services,
                                   Washington, DC, August 29, 2001.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of August 14, 
2001 regarding H.R. 2586, the National Defense Authorization 
Act for Fiscal Year 2002.
    I agree that the Committee on Transportation and 
Infrastructure has valid jurisdictional claims to certain 
provisions in this important legislation, and I am most 
appreciative of your decision not to request such a referral in 
the interest of expediting consideration of the bill. I agree 
that by foregoing a sequential referral, the Committee on 
Transportation and Infrastructure is not waiving its 
jurisdiction. Further, as you requested, this exchange of 
letters will be included in the Committee report on the bill.
    Thank you for your cooperation in this matter.
            Sincerely,
                                               Bob Stump, Chairman.
                                ------                                

                          House of Representatives,
                  Committee on Education and the Workforce,
                                   Washington, DC, August 28, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: Thank you for working with me in your 
development of H.R. 2586, the ``National Defense Authorization 
Act for Fiscal Year 2002,'' specifically:
          1. Section 341, ``Assistance to Local Educational 
        Agencies the Benefit Dependents of Members of the Armed 
        Forces and Department of Defense Civilian Employees;
          2. Section 342, ``Availability of Auxiliary Services 
        of Defense Dependents Education System for Dependents 
        who are Home School Students'';
          3. Section 343, ``Report Regarding Compensation for 
        Teachers Employed in Teaching Positions in Overseas 
        Schools Operated by the Department of Defense'';
          4. Section 509, ``One-year Extension of Expiration 
        Date for Certain Force Management Authorities'';
          5. Section 584, ``Clarification of Military Recruiter 
        Access to Secondary School Directory Information About 
        Students.''
    As you know, these provisions are within the jurisdiction 
of the Education and the Workforce Committee. While I do not 
intend to seek sequential referral of H.R. 2586, the Committee 
does hold an interest in preserving its future jurisdiction 
with respect to issues raised in the aforementioned provisions 
and its jurisdictional prerogatives should the provisions of 
this bill or any Senate amendments thereto be considered in a 
conference with the Senate. We would expect to be appointed as 
conferees on these provisions should a conference with the 
Senate arise.
    Again, I thank you for working with me in developing the 
amendments to H.R. 2586 and look forward to working with you on 
these issues in the future.
            Sincerely,
                                            John Boehner, Chairman.
                                ------                                

                          House of Representatives,
                                Committee on the Judiciary,
                                   Washington, DC, August 31, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: Thank you for working with me regarding 
H.R. 2586, the ``National Defense Authorization Act for Fiscal 
Year 2002,'' which was referred to the Committee on Armed 
Services. As you know, the Committee on the Judiciary has a 
jurisdictional interest in this legislation, and I appreciate 
your acknowledgement of that jurisdictional interest. While the 
bill would be sequentially referred to the Judiciary Committee, 
I understand the desire to have this legislation considered 
expeditiously by the House; therefore, I do not intend to hold 
a hearing or markup on this legislation.
    In agreeing to waive consideration by our Committee, I 
would expect you to agree that this procedural route should not 
be construed to prejudice the Committee on the Judiciary's 
jurisdictional interest and prerogatives on this or any similar 
legislation and will not be considered as precedent for 
consideration of matters of jurisdictional interest to my 
Committee in the future. The Committee on the Judiciary takes 
this action with the understanding that the Committee's 
jurisdiction over the provisions within the Committee's 
jurisdiction is in no way diminished or altered, and that the 
Committee's right to the appointment of conferees during any 
conference on the bill is preserved. I would also expect your 
support in my request to the Speaker for the appointment of 
conferees from my Committee with respect to matters within the 
jurisdiction of my Committee should a conference with the 
Senate be convened on this or similar legislation.
    Again, thank you for your cooperation on this important 
matter. I would appreciate your including our exchange of 
letters in your Committee's report to accompany H.R. 2586.
            Sincerely,
                               F. James Sensenbrenner, Jr.,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                               Committee on Armed Services,
                                   Washington, DC, August 31, 2001.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on the Judiciary, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of August 31, 
2001 regarding H.R. 2586, the National Defense Authorization 
Act for Fiscal Year 2002.
    I agree that the Committee on the Judiciary has valid 
jurisdictional claims to certain provisions in this important 
legislation, and I am most appreciative of your decision not to 
request such a referral in the interest of expediting 
consideration of the bill. I agree that by foregoing a 
sequential referral, the Committee on the Judiciary is not 
waiving its jurisdiction. Further, as you requested, this 
exchange of letters will be included in the Committee report on 
the bill.
    Thank you for your cooperation in this matter.
            Sincerely,
                                               Bob Stump, Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                   Washington, DC, August 31, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: Thank you for an opportunity to review 
the text of H.R. 2586,the National Defense Authorization Act of 
2002, for provisions which are within the jurisdiction of the Committee 
on Resources. Among these provisions are those dealing with benefits 
for the National Oceanic and Atmospheric Administration Corps, 
environmental review, public lands, and territories of the United 
States.
    Because of the continued cooperation and consideration you 
have afforded me and my staff in developing these provisions, I 
will not seek a sequential referral of H.R. 2586 based on their 
inclusion in the bill. Of course, this waiver is not intended 
to prejudice any future jurisdictional claims over these 
provisions or similar language. I also reserve the right to 
seek to have conferees named from the Committee on Resources on 
these provisions, should such a conference become necessary.
    Once again, I appreciate working with you and your staff on 
these matters, and look forward to urging my colleagues to 
support and pass H.R. 2586.
            Sincerely,
                                         James V. Hansen, Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                 Washington, DC, September 4, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: On August 1, 2001, the Committee on 
Armed Services ordered reported H.R. 2586, the National Defense 
Authorization Act for Fiscal Year 2002. As ordered reported by 
the Committee on Armed Services, this legislation contains a 
number of provisions that fall within the jurisdiction of the 
Committee on Energy and Commerce. These provisions include the 
following:
          Section 509, one-year extension of expiration date 
        for certain force management authorities.
          Section 514, improved disability benefits for certain 
        reserve component members.
    Subtitle A of title 6--Pay and Allowances.
          Section 611, one-year extension of certain bonus and 
        special pay authorities for reserve forces.
          Section 612, one-year extension of certain bonus and 
        special pay authorities for nurse officer candidates, 
        registered nurses, and nurse anesthetists.
          Section 2906, environmental compliance and 
        environmental response requirements.
          Section 3131, termination date of Office of River 
        Protection, Richland, Washington.
          Section 3132, organizational modifications for 
        National Nuclear Security Administration.
          Section 3201, Defense Nuclear Facilities Safety Board 
        Authorization.
    I understand that two provisions within my jurisdiction 
that are in the bill as ordered reported will be deleted in the 
reported version of H.R. 2586: (1) section 316, concerning the 
authority of the Department of Defense to accept and store 
mercury and (2) section 712, listing requirements regarding a 
Presidential task force. Further, I understand that section 
3134, dealing with the disposition of surplus plutonium at the 
Savannah River Site in Aiken, South Carolina, will be modified 
to make clear that it only deals with military surplus 
plutonium, and therefore will not fall within my Committee's 
jurisdiction.
    Recognizing your interest in bringing this legislation 
before the House expeditiously, the Committee on Energy and 
Commerce agrees not to seek a sequential referral of the bill 
based on the provisions listed above. By agreeing not to seek a 
sequential referral, the Committee on Energy and Commerce does 
not waive its jurisdiction over these provisions or any other 
provisions of the bill that may fall within its jurisdiction. 
In addition, the Committee on Energy and Commerce reserves its 
right to seek conferees on any provisions within its 
jurisdiction which are considered in the House-Senate 
conference, and asks for your support in being accorded such 
conferees.
    I request you include this letter as part of the report on 
H.R. 2586 and as part of the Record during consideration of 
this bill by the House.
            Sincerely,
                                   W.J. ``Billy'' Tauzin, Chairman.

                              FISCAL DATA

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the committee attempted to ascertain 
annual outlays resulting from the bill during fiscal year 2002 
and the following four years. The results of such efforts are 
reflected in the cost estimate prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974, which is included in this 
report pursuant to clause 3(c)(3).

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    In compliance with clause 3(c)(3) of rule XIII of the House 
of Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:
                                                   August 22, 2001.
Hon. Bob Stump,
Chairman, Committee on Armed Services, House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2586, the National 
Defense Authorization Act for Fiscal Year 2002.
    The CBO staff contact is Kent Christensen. If you wish 
further details on this estimate, we will be pleased to provide 
them.
            Sincerely,
                                                    Dan L. Crippen.

               Congressional Budget Office Cost Estimate

    Summary: H.R. 2586 would authorize appropriations totaling 
$343 billion for fiscal year 2002 for the military functions of 
the Department of Defense (DoD) and the Department of Energy. 
It also would prescribe personnel strengths for each active 
duty and selected reserve component of the U.S. armed forces. 
CBO estimates that appropriation of the authorized amounts for 
2002 would result in additional outlays of $338 billion over 
the 2002-2006 period.
    The bill also contains provisions that would raise the 
costs of discretionary defense programs over the 2003-2006 
period. CBO estimates that those provisions would require 
appropriations of $9 billion over those four years.
    The bill contains provisions that would reduce direct 
spending, primarily through revised payment rates for some 
services offered under the Tricare for Life program and certain 
asset sales. We estimate that the direct spending savings 
resulting from provisions of H.R. 2586 would total $384 million 
over the 2002-2006 period and $355 million over the 2002-2011 
period. Those totals include estimated net receipts from asset 
sales of $44 million over the next five years and $20 million 
over 10 years. Because it would affect direct spending, the 
bill would be subject to pay-as-you-go procedures.
    The bill contains several intergovernmental mandates as 
defined by the Unfunded Mandates Reform Act (UMRA). CBO 
estimates, however, that the costs of complying with those 
mandates would not be significant and would not exceed the 
threshold as specified in UMRA. The bill also contains 
provisions that affect DoD's Tricare long-term care program and 
would increase costs in state Medicaid programs. The remaining 
provisions of the bill are either excluded under Section 4 of 
UMRA, which excludes from the application of that act any 
legislative provisions that are necessary for the national 
security, or contain no mandates.
Estimated Cost to the Federal Government
    The estimated budgetary impact of H.R. 2586 is shown in 
Table 1. Most of the costs of this legislation fall within 
budget function 050 (national defense).

      TABLE 1.--BUDGETARY IMPACT OF H.R. 2586, THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2001      2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Defense Programs:
    Budget Authority \1\............................   316,051         0         0         0         0         0
    Estimated Outlays...............................   301,602   107,667    36,099    13,839     6,256     3,308
Proposed Changes:
    Estimated Authorization Level...................         0   342,945         0         0         0         0
    Estimated Outlays...............................         0   226,158    77,322    23,645     8,199     3,000
Spending Under H.R. 2586 for Defense Programs:
    Estimated Authorization Level \1\...............   316,051   342,945         0         0         0         0
    Estimated Outlays...............................   301,602   333,825   113,421    37,484    14,455     6,308

                               CHANGES IN DIRECT SPENDING (EXCLUDING ASSET SALES)

Estimated Budget Authority..........................         0         9      -320        -4        -9         1
Estimated Outlays...................................         0         4      -340       -12         6         2

                                                 ASSET SALES \2\

Estimated Budget Authority..........................         0       -22       -32       -16        -5        31
Estimated Outlays...................................         0        22       -32       -16        -5       31
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for programs authorized by the bill.
\2\ Asset sale receipts are a credit against direct spending.

  Note.--This table excludes estimated authorizations of appropriations for years after 2002. (Those additional
  authorizations are shown in Table 3.)

Basis of estimate
            Spending Subject to Appropriation
    The bill would authorize appropriations totaling $343 
billion in 2002 (see Table 2). Most of those costs would fall 
within budget function 050 (national defense). H.R. 2586 also 
would authorize appropriations of $100 million for the Presidio 
Trust Fund (function 300--natural resources and environment), 
$99 million for the Maritime Administration (function 400--
transportation), $71 million for the Armed Forces Retirement 
Home (function 600--income security), and $17 million for the 
Naval Petroleum Reserves (function 270--energy).
    The estimate assumes that the amounts authorized for 2002 
will be appropriated near the start of fiscal year 2002. 
Outlays are estimated based on historical spending patterns.
    The bill also contains provisions that would affect various 
costs, mostly for personnel, that would be covered by the 
fiscal year 2002 authorization and by authorizations in future 
years. Table 3 contains estimates of those amounts. In addition 
to the costs covered by the authorizations in the bill for 
2002, these provisions would raise estimated costs by $9 
billion over the 2003-2006 period. The following sections 
describe the provisions identified in Table 3 and provide 
information about CBO's cost estimates for those provisions.
    Multiyear Procurement.--In most cases, purchases of weapon 
systems are authorized annually, and as a result, DoD 
negotiates a separate contract for each annual purchase. In a 
small number of cases, the law permits multiyear procurement; 
that is, it allows DoD to enter into a contract to buy 
specified annual quantities of a system for up to five years. 
In those cases, DoD can negotiate lower prices because its 
commitment to purchase the weapons gives the contractor an 
incentive to find more economical ways to manufacture the 
weapon, including cost-saving investments. Funding would 
continue tobe provided on an annual basis for these multiyear 
contracts, but potential termination costs would be covered by an 
initial appropriation.
    Section 111 would authorize DoD to extend the authorization 
of multiyear procurement for the Family of Medium Tactical 
Vehicles by one year through 2002, if the department determines 
that it is necessary to do so to prevent a break in production 
of the vehicles. Currently, these vehicles are purchased under 
a multiyear contract administered by the Army covering a four-
year period ending in 2001. The contract allows for an option 
year in 2002 leading to a new multiyear contract. CBO estimates 
that the savings from buying the vehicles under the extension 
would have little or no budgetary impact because the Army 
assumed that the vehicles planned for purchase in 2002 would be 
bought at prices similar to prices under the existing multiyear 
contract.

                                 TABLE 2.--SPECIFIC AUTHORIZATIONS IN H.R. 2586
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                           Category                            -------------------------------------------------
                                                                  2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
Military Personnel:
    Authorization Level.......................................    82,224         0         0         0         0
    Estimated Outlays.........................................    76,995     4,605       164        82         0
Operation and Maintenance:
    Authorization Level.......................................   124,357         0         0         0         0
    Estimated Outlays.........................................    93,200    24,264     4,041     1,679       501
Procurement:
    Authorization Level.......................................    62,036         0         0         0         0
    Estimated Outlays.........................................    16,208    22,452    13,333     5,013     1,988
Research, Development, Test, and Evaluation:
    Authorization Level.......................................    47,660         0         0         0         0
    Estimated Outlays.........................................    25,441    17,990     3,138       674       189
Military Construction and Family Housing:
    Authorization Level.......................................    10,325         0         0         0         0
    Estimated Outlays.........................................     2,624     3,987     2,303       776       334
Atomic Energy Defense Activities:
    Authorization Level.......................................    13,514         0         0         0         0
    Estimated Outlays.........................................     9,162     3,643       709         0         0
Other Accounts:
    Authorization Level.......................................     2,746         0         0         0         0
    Estimated Outlays.........................................     2,173       433        77        35         8
General Transfer Authority:
    Authorization Level.......................................         0         0         0         0         0
    Estimated Outlays.........................................       280       -60      -120       -60       -20
                                                               -------------------------------------------------
Total
    Authorization Level \1\...................................   342,862         0         0         0         0
    Estimated Outlays.........................................   226,083    77,314    23,645     8,199    3,000
----------------------------------------------------------------------------------------------------------------
\1\ These amounts comprise nearly all of the proposed changes for authorizations shown in Table 1; they do not
  include the estimated authorization of $83 million for the Coast Guard Reserve, which is shown in Table 3.

            TABLE 3.--ESTIMATED AUTHORIZATIONS OF APPROPRIATIONS FOR SELECTED PROVISIONS IN H.R. 2586
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                           Category                            -------------------------------------------------
                                                                  2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                              MULTIYEAR PROCUREMENT

C-17 Aircraft.................................................         0      -117      -293      -272      -252

                                                 FORCE STRUCTURE

DoD Military Endstrengths.....................................       230       475       490       504       519
Coast Guard Reserve Endstrengths..............................        83         0         0         0         0
Grade Structure...............................................        31        68        84        95        97
18-Month Enlistment Pilot.....................................         0         0        12        12        12

                                         COMPENSATION AND BENEFITS (DoD)

Military Pay Raises...........................................     1,026     1,420     1,490     1,558     1,624
Expiring Bonuses and Allowances...............................       616       478       277       171       114
Travel and Transportation Allowances..........................        51       274       351       359       367
Increase Incentive Pay and Bonuses............................        70        99       103       109       115
Housing Allowances............................................         0        27        36        38        39
New Officer Accession Bonus...................................        18        18        18        20        20
Subsistence Allowances........................................         6        15         8         3         0
Uniform Allowances............................................         4         4         4         4         4
Education and Training........................................         1         6         8        10        13
Other Compensation Provisions.................................       -25         8         3         8         7

                                             DEFENSE HEALTH PROGRAM

Payment Rates.................................................      -144       -90         0         0         0
Long-Term Care Rules..........................................       -44         0         0         0         0
Non-Availability Statements...................................         0         0        10        10        10
Other Provisions..............................................         8         5         6         6         6

                                                OTHER PROVISIONS

Limitations on Workforce Reviews..............................       -11       -11       -11         1       105
Service Contracting Reform....................................        15        26        33        27        24
National Guard Challenge Program..............................         0         9        11        13        15
War Medals....................................................         0         4         4         5         5
Acquisition Workforce Reduction...............................       -25      -236      -246      -256      -266
Asbestos Differential Pay.....................................      -110      -110      -110      -110      -110
Civilian Wage Board Schedule..................................         3        10        10        11        11
Strategic Forces..............................................       -20       -70      -140      -200      -220

                                         TOTAL ESTIMATED AUTHORIZATIONS

Estimated Authorization Level.................................     1,783     2,312     2,159     2,126    2,260
----------------------------------------------------------------------------------------------------------------
Note.--For every item in this table except the authorization for the Coast Guard, the 2002 levels are included
  in the amounts specifically authorized to be appropriated in the bill. Those amounts are shown in Table 2.
  Amounts shown in this table for 2003 through 2006 are not included in Table 1.

    Section 122 would authorize DoD to enter into a new 
multiyear procurement contract (or extend the current multiyear 
contract) to buy up to 60 additional C-17 aircraft if the 
Secretary of Defense certifies to the Congressional defense 
committees, before the enactment of this bill, that it is in 
the interest of the department to proceed with follow-on 
multiyear procurement of the C-17. Under the current multiyear 
contract, the Air Force will buy 15 aircraft in 2002 and 
another 8 aircraft in 2003. Assuming the Secretary certifies 
that it is in the interest of the department to proceed with 
follow-on multiyear procurement of up to 60 additional C-17s, 
CBO estimates that savings from buying 60 additional C-17s 
under this contract arrangement would total $934 million or an 
average of about $250 million a year over the 2003-2006 period. 
Funding requirements would total just under $8.3 billion 
instead of the almost $9.2 billion needed under annual 
contracts. This estimate assumes that the Air Force would 
purchase the 60 additional aircraft starting in 2003 at a rate 
of 15 a year.
    Force Structure.--The bill contains various sections that 
affect endstrength, personnel grade structure, and periods of 
enlistment.
    Military Endstrength. The bill would authorize active and 
reserve endstrengths for 2002 and would raise the minimum 
endstrength authorization in permanent law. The authorized 
endstrengths for active-duty personnel and personnel in the 
selected reserve would total about 1,387,000 and 865,000, 
respectively. Of those selected reservists, about 66,000 would 
serve on active duty in support of the reserves. The bill would 
specifically authorize appropriations of $82.2 billion for the 
discretionary costs of military pay and allowances in 2002. The 
authorized endstrength represents a net increase of 3,152 
servicemembers that would boost costs for salaries and other 
expenses by $230 million in the first year and about $500 
million annually in subsequent years, compared to the 
authorized strengths for 2001.
    The bill also would authorize an endstrength of 8,000 in 
2002 for the Coast Guard Reserve. This authorization would cost 
about $83 million and would fall under budget function 400 
(transportation).
    Grade Structure. Sections 415, 423, 503, and 504 would 
increase the number of service-members in certain grades. 
Section 415 would change the grade structure of active-duty 
personnel in support of the reserves and section 423 would 
increase the number of Air Force officers in the grade of 
major. Section 503 would reduce the time-in-grade required for 
promotion to captain in the Army, Air Force, and Marine Corps, 
and lieutenant in the Navy when service staffing needs require. 
Under section 504, the number of servicemembers in pay grade E-
8 in the Navy, the Marine Corps, and the Air Force would 
increase. These changes would not increase the overall 
endstrength, but would result in more promotions to these 
ranks. CBO estimates these provisions would cost $31 million in 
2002, rising to about $100 million by 2006.
    18-Month Enlistment Pilot Program. Section 589 would create 
a pilot program for 18-month enlistments. CBO estimates that 
implementing this section would cost $36 million over the 2004-
2006 period because of the increased recruitment and training 
activities needed to accommodate the higher military personnel 
turnover rate and maintain endstrength levels. CBO estimates 
that implementing this section would increase turnover by 
approximately 1,000 positions in the 2004-2006 period, and that 
the cost to recruit and train these troops would be about 
$34,000 per person.
    Compensation and Benefits.--H.R. 2586 contains several 
provisions that would affect military compensation and 
benefits.
    Military Pay Raises. Section 601 would raise basic pay by 5 
percent across-the-board and authorize additional targeted pay 
raises, ranging from 1 percent to 10 percent, for individuals 
with specific ranks and years of service at a total cost of 
about $3.1 billion in 2002. Because the pay raises would be 
above those projected under current law, CBO estimates that the 
incremental costs associated with the larger pay raise would be 
about $1 billion in 2002 and total $7.1 billion over the 2002-
2006 period.
    Expiring Bonuses and Allowances. Several sections would 
extend DoD's authority to pay certain bonuses and allowances to 
current personnel. Under current law, most of these authorities 
are scheduled to expire in December 2001, or three months into 
fiscal year 2002. The bill would extend these authorities 
through December 2002. CBO estimates that the costs of these 
extensions would be as follows:
          Payment of reenlistment bonuses for active-duty 
        personnel would cost $327 million in 2002 and $174 
        million in 2003; enlistment bonuses for active-duty 
        personnel would cost $91 million in 2002 and $140 
        million in 2003;
          Various bonuses for the Selected and Ready Reserve 
        would cost $64 million in 2002 and $73 million in 2003;
          Special payments for aviators and nuclear-qualified 
        personnel would cost $52 million in 2002 and $55 
        million in 2003;
          Retention bonuses for officers and enlisted members 
        with critical skills would cost $23 million in 2002 and 
        cost $13 million in 2003;
          Authorities to make special payments to nurse officer 
        candidates, registered nurses, and nurse anesthetists 
        would cost $7 million in 2002 and $2 million in 2003;
          Accession bonuses for dental officers would have no 
        cost in 2002 and cost $1 million in 2003. (This 
        provision authorizes a three-month extension of the 
        current authority which expires on September 30, 2002); 
        and
          Extension of transition authorities for active and 
        reserve members, including temporary early retirement 
        authority, special separation benefit, voluntary 
        separation incentive, and certain other contingent 
        benefits would cost $52 million in 2002, and $20 
        million in 2003.
    Most of these changes would result in additional, smaller 
costs in subsequent years because payments are made in 
installments.
    Travel and Transportation Allowances. Sections 631 through 
637 would affect travel and transportation allowances by 
expanding eligibility or increasing benefits. CBO estimates 
that the cost of these changes would be as follows:
    Setting minimum per diem rates equal to the standard rates 
established for federal civilian travel would have no cost in 
2002, but would cost $142 million in 2003 and $731 million over 
the 2003-2006 period;
    Increasing the maximum daily payment rate from $110 to $180 
for temporary subsistence allowances and expanding eligibility 
to officers would cost $45 million in 2002 and $287 million 
over the 2002-2006 period;
    Increasing the maximum weight allowances for junior 
enlisted members would have no cost in 2002, but would cost $20 
million in 2003 and $98 million over the 2003-2006 period;
    Raising the pet quarantine fee reimbursement from $275 to 
$675 would cost $1 million in 2002 and $5 million over the 
2002-2006 period;
    Authorizing dislocation allowances (DLA) for married 
servicemembers without dependents where the spouse is a member 
of the military, would have no cost in 2002, but would cost $3 
million in 2003. Expanding eligibility to receive DLA to 
members moving to their first duty station would have no cost 
in 2002, but would cost $39 million in 2003. Authorizing a $500 
allowance to compensate members who must move for government 
convenience (e.g., because of privatization or renovation) 
would cost $5 million in 2002. CBO estimates that combined 
these three provisions would cost $280 million over the 2002-
2006 period.
    In total, these provisions affecting travel and 
transportation allowances would cost $51 million in 2002 and 
$1.4 billion over the 2002-2006 period. Those provisions with 
no cost in 2002 reflect an effective date of January 1, 2003.
    Increases in Incentive Pay and Bonuses. Sections 539, 616, 
and 617 would expand eligibility for bonuses and increase pay 
for personnel with special skills. Section 539 would expand the 
population eligible to receive stipends under the Health 
Professional Stipend Program to include medical and dental 
school students. Assuming the number of participants would 
increase gradually, at about 5 percent a year, CBO estimates 
section 539 would cost less than $500,000 in 2002 and $7 
million over the 2002-2006 period.
    Under section 616, certain reservists on inactive-duty 
training would be entitled to a full month of aviation career 
incentive pay for performing flying duty. Under current law, 
reservists receive aviation career incentive pay based on a 
daily rate for only the days they perform flying duty. Section 
617 would raise the maximum pay rates for servicemembers 
performing submarine duty. CBO estimates these pay increases, 
effective January 1, 2002, would cost $70 million in 2002 and 
$489 million over the 2002-2006 period. Together, these 
increases in incentive pay and bonuses would cost $70 million 
in 2002 and $496 million over the 2002-2006 period.
    Housing Allowances. Section 604 would expand eligibility to 
receive the basic allowance for housing (BAH) to junior 
enlisted members in grades E-3 and below whoare on leave or 
traveling between permanent duty stations. Currently, only members in 
grades E-4 and above are eligible to receive BAH under these 
conditions. Using DoD's estimate of enlisted accessions, and adjusting 
for losses during training, CBO expects that about 175,000 enlisted 
members in grades E-3 and below would be eligible to receive BAH while 
traveling between permanent duty stations. Assuming members would, on 
average, be between duty stations for ten days, and applying the BAH 
rates for members with and without dependents, CBO estimates the 
average cost per member with and without dependents would be about $210 
and $180, respectively. Based on an effective date of January 1, 2003, 
CBO estimates expanding eligibility to these servicemembers would have 
no cost in 2002, but would cost $27 million in 2003 and $140 million 
over the 2003-2006 period.
    New Officer Accession Bonus. Section 620 would authorize a 
new accession bonus for officers. The amount of the bonus, 
limited to $100,000, could be paid in a lump sum or 
installments. Based on information from DoD, CBO expects that 
the Air Force and the Navy would use this authority starting in 
2002, and that the provision would cost $18 million in 2002 and 
$94 million over the 2002-2006 period.
    Subsistence Allowances. Section 603 would extend the 
current authority to provide an additional subsistence payment 
when rations-in-kind are not available. DoD plans to prescribe 
this incremental subsistence allowance until payments may be 
fully offset by the annual increases in basic allowance for 
subsistence (BAS). CBO estimates that under DoD's plan, 
additional subsistence payments would end in 2005. This section 
also would delay the termination of BAS transition authority by 
three months, making termination effective on January 1, 2002, 
and saving an estimated $15 million in 2002. CBO estimates the 
combined effects of implementing these provisions would cost $6 
million in 2002 and $32 million over the 2002-2006 period, 
assuming appropriation of the necessary amounts.
    Uniform Allowances. Section 605 would loosen restrictions 
on eligibility of officers to receive an additional $200 
clothing allowance by doubling the cap on the dollar amount a 
member may receive in an initial clothing allowance over the 
prior two years. Under current law, officers are ineligible to 
receive the additional allowance if they have received more 
than $200 in an initial clothing allowance during the past two 
years. Raising the cap would increase the number of officers 
eligible for the additional $200 allowance. CBO estimates that 
implementing this provision would cost $4 million in 2002 and 
$20 million over the 2002-2006 period, subject to appropriation 
of the necessary amounts. Because this provision would have an 
effective date of October 1, 2000, section 605 would authorize 
retroactive payments of this additional $200 allowance and 
would thus increase direct spending. Those costs are discussed 
later in this estimate under the heading of ``Direct 
Spending.''
    Education and Training. Section 529 would direct the 
National Defense University (NDU) to continue its concept 
validation test of joint professional military education for 
the reserves and to conduct a pilot program in 2003. The scope 
of the pilot program is undefined, but based on information 
from NDU, CBO estimates the program will eventually involve 
about 500 students at a cost of $10,500 per student per year. 
CBO expects that most of the costs in 2003 would be associated 
with program startup. CBO estimates minimal cost in 2002 
because the validation program would still be ongoing. Overall, 
CBO estimates that this section would cost $23 million over the 
2002-2006 period.
    Section 538 would remove the cap on the number of Junior 
Reserve Officers' Training Corps (JROTC) units. The services 
plan to have 3,185 units in 2002, less than the current cap of 
3,500 units. Based on recent growth rates, CBO expects the 
number of units would exceed 3,500 in 2005. CBO estimates 
implementing section 538 would increase JROTC costs by $2 
million in 2005, rising to $5 million in 2006.
    Under section 535, servicemembers on regular active-duty 
status could participate in the Senior Reserve Officers 
Training Corps (ROTC). Under current law, participation in 
Senior ROTC is limited to members of the reserves. Based on 
information from the military services, CBO expects that the 
Air Force and the Army would implement this new authority. 
Because the Air Force indicates that it would provide the same 
benefits to active-duty Senior ROTC participants as are paid to 
those in the Airman Education and Commissioning Program, CBO 
estimates no cost impact for the Air Force. The Army indicates, 
however, that it would not pay tuition or provide stipends or 
scholarships for about 200 active-duty Senior ROTC 
participants. Because the Army would save the expense of 
Officer Candidate School or ROTC scholarships and stipends for 
members who would receive officer training under this section, 
CBO estimates savings of $1 million in 2002 and $9 million over 
the 2002-2006 period. CBO expects that these members would use 
Montgomery GI Bill (MGIB) benefits to fund their education. 
Therefore, this provision would increase direct spending. Those 
costs are discussed later in this estimate under the heading of 
``Direct Spending.''
    Section 533 would increase the number of international 
students authorized to be admitted to the service academies and 
would eliminate the restrictions on full tuition waivers. CBO 
estimates that this section would cost $17 million over the 
2002-2006 period. Removing the restrictions on tuition waivers 
would allow about 70 additional international students to 
receive full tuition assistance each year. This figure includes 
students admitted because of the higher number of international 
slots made available under this section, as well as slots that 
are currently receiving only partial tuition assistance. The 
current cost of tuition for an international student is about 
$62,000 a year, and the annual cost of implementing this 
section would be about $4 million.
    Other Compensation Provisions. Section 619 would allow 
servicemembers electing to receive the 15-year career status 
bonus to have this bonus paid in installments. Currently this 
$30,000 bonus is offered as a lump-sum payment. CBO assumes 
that about 10 percent of those electing to receive the bonus 
would, on average, choose to receive two payments of $15,000 
spread over two years. Because these decisions would shift some 
payments from one year into the next, CBO estimates section 619 
would save $30 million in 2002 and about $25 million over the 
2002-2006 period. The somewhat lower total savings over the 
five-year period reflects small costs in some years that result 
from the estimated yearly change in the number of 
servicemembers with 15 years of service.
    Section 507 would allow an active-duty servicemember who is 
being separated from the armed services because of a physical 
disability to have his separation pay based on the rank to 
which he would have been promoted had he not been separated. 
Based on current pay tables and information from DoD, about 17 
percent of such members would have been approved for promotion 
and, under section 507, would be entitled to a 17percent pay 
increase in separation pay. CBO estimates implementing section 507 
would increase separation pay by about 3 percent or $5 million a year.
    Defense Health Program.--Title VII contains several 
provisions that would affect DoD health care and benefits. 
Tricare is the name of DoD's health care program and the 
spending under Tricare for beneficiaries under age 65 is 
subject to appropriation. Spending under Tricare for 
beneficiaries age 65 and over, often called Tricare for Life 
(TFL), is subject to appropriation in 2002, but beginning in 
2003 this spending will be paid out of a trust fund and will 
not be subject to appropriation.
    Payment Rates. Under current law, DoD has the regulatory 
authority to set maximum allowable rates for medical services 
to limit how much the Tricare program pays to health care 
providers. Although DoD has set maximum rates for many 
services, it has not yet set rates for hospital outpatient 
diagnostic services, including clinical lab work and radiation 
services, and long-term care services such as skilled nursing 
and home health care services. As a result, Tricare currently 
pays 75 percent of billed charges for these services. DoD has 
started the regulatory process to establish maximum rates for 
the services listed here and estimates it will take upwards of 
two years to implement the changes by regulation.
    Section 701 would require DoD to implement these rates by 
January 1, 2002. Under this provision, DoD would be able to 
lower its costs for both hospital outpatient and long-term care 
services over the 2002-2003 period before the regulations would 
have been implemented. These savings would affect spending 
subject to appropriation as well as direct spending for 
retirees of the other uniformed services in 2002 and 2003 and 
the TFL trust fund that starts operation in 2003. CBO estimates 
that the total savings in spending subject to appropriation for 
hospital outpatient and long-term care services would be about 
$230 million over the 2002-2003 period, assuming appropriations 
are reduced by the estimated amounts. Section 701 would affect 
two different programs: Tricare (under 65) and Tricare for 
Life. Those two effects are discussed below.
    By lowering payment rates for hospital outpatient 
diagnostic services, DoD would be able to reduce spending on 
its beneficiaries under age 65. (This portion of the provision 
would not affect beneficiaries age 65 and over because Medicare 
is first payer for these services and TFL would only be 
responsible for the Medicare deductible and copayments.) Using 
data from DoD, CBO estimates that making payment rates for 
hospital outpatient diagnostic services equivalent to Medicare 
rates would lower Tricare spending for these services by about 
30 percent. CBO estimates that lowering the payment rates for 
hospital outpatient services would save about $150 million over 
the 2002-2003 period, assuming appropriations are reduced by 
the estimated amounts.
    Under section 701, DoD also would lower the rates paid for 
skilled nursing and home health care. This change would 
primarily affect the TFL program since beneficiaries under age 
65 do not use much long-term care (DoD spent only $10 million 
on long-term care for those under 65 in 2000). Savings arise 
because Tricare's skilled nursing benefit has no time limit 
while Medicare's benefit expires after 100 days. The change in 
payment rates would have no impact on Tricare for the first 100 
days because Tricare would only be liable for the deductibles 
and copayments charged under Medicare. However, this provision 
would lower the amount that Tricare would pay for those 
beneficiaries who need more than 100 days of skilled nursing 
care. Additionally, Tricare would reduce its costs for 
providing skilled nursing and home health care to those 
beneficiaries who use these services without a prior hospital 
stay and are thus not Medicare-eligible.
    CBO estimates the savings to Tricare would initially be low 
because the Tricare for Life program does not actually begin 
operation until the start of fiscal year 2002 and CBO expects 
that it will take about a year before all beneficiaries take 
full advantage of the program. CBO estimates that lowering 
payment rates for skilled nursing and home health care would 
save DoD about $80 million in 2002, assuming appropriations are 
reduced by the estimated amounts. (There also would be direct 
spending savings of about $7 million over the 2002-2003 period 
for the other uniformed services, and about $215 million in 
2003 for DoD when the trust fund begins operation. CBO's 
estimates of those savings is discussed below under the heading 
of ``Direct Spending.'')
    Long-Term Care Rules. Tricare does not currently require a 
hospital stay prior to using long-term care services such as 
skilled nursing and home health care. Requiring prior 
hospitalizations would reduce the number of beneficiaries who 
use long-term care. DoD has started the regulatory process to 
require such prior hospitalizations and expects to complete the 
process by the start of fiscal year 2004.
    Section 704 would require DoD to structure the Tricare 
long-term care program to resemble Medicare, which requires 
prior hospitalization before being eligible for skilled nursing 
and home health care. Under section 704, DoD would be required 
to implement this provision on October 1, 2001. Requiring prior 
hospitalization under Tricare's long-term care program would 
reduce the benefit for those beneficiaries that would otherwise 
have used long-term care and would save DoD the cost of 
providing this care over the 2002-2003 period before the DoD's 
the new long-term care rules would have gone into effect under 
DoD's plan. CBO estimates that some of those beneficiaries 
would likely be able to get a prior hospitalization before 
seeking care. In those instances, Medicare would become the 
first payer while a few beneficiaries would end up using 
Medicaid. Thus the savings to DoD would be partially offset by 
increased costs to both Medicare and Medicaid (discussed 
below).
    Using data from DoD and the Agency for Healthcare Research 
and Quality, CBO estimates that about 3,500 beneficiaries, who 
would have used skilled nursing without a hospital stay, would 
be affected by these new rules along with about 24,000 
beneficiaries who would have used home health care. CBO 
estimates that some of those beneficiaries would pay for the 
long-term care through Medicare or Medicaid, while others would 
pay the costs themselves, use other insurance, or do without 
the long-term care. For those beneficiaries who would be 
covered by Medicare, DoD would not save the full cost because 
Tricare would be liable for all deductibles and copayments. 
Taking this information into account, CBO estimates that, under 
section 704, Tricare spending would be reduced by about $40 
million in 2002, assuming appropriations are reduced by the 
estimated amounts. (There would also be direct spending savings 
of about $120 million for both the trust fund and the other 
uniformed services in 2003 and Medicare and Medicaid costs in 
both 2002 and 2003.)
    Non-Availability Statements. Under current law, users of 
military health care have the option of enrolling in Tricare 
Prime, an HMO-like plan that centers its provision of services 
around military treatment facilities. Users who do not enroll 
in Tricare Prime have the option of using Tricare Extra, a 
preferred provider network, or Tricare Standard, a traditional 
fee-for-service insurance plan. Beneficiaries who live within 
40 miles of amilitary hospital must get a statement from the 
hospital that it cannot provide the requested care before the 
beneficiary may use Tricare Standard or Extra. Absent that statement, 
Tricare does not have to pay for the care received at a nonmilitary 
facility.
    Section 702 would prohibit the requirement of such 
statements beginning sometime in fiscal year 2004 (two years 
after the enactment of this bill), unless the Secretary of 
Defense certifies that they are still needed for each medical 
procedure. Based on information from DoD, CBO expects that the 
Secretary of Defense would certify that these statements are 
necessary in most cases, although not in all cases. For those 
cases where a statement would no longer be necessary, CBO 
estimates that this provision would cost about $10 million in 
2004 and $30 million over the 2004-2006 period, assuming 
appropriation of the estimated amounts.
    Other Defense Health Care Provisions. H.R. 2586 also 
contains two proposals that would cost relatively little over 
the 2002-2006 period. CBO estimates that implementing these two 
additional health care provisions would cost $8 million in 2002 
and $31 million over the 2002-2006 period.
    Section 705 would allow DoD to reimburse the parent or 
guardian of minors for travel costs associated with the minor 
receiving care at a military treatment facility more than 100 
miles away from the minor's home. CBO estimates that this 
proposal would cost about $5 million a year.
    Section 588 would allow government agencies to pay the 
employee's share of the insurance premium paid under the 
Federal Employee Health Benefits program, if the employee is 
involuntarily called to active duty for a contingency 
operation. It also would allow the agencies to reimburse past 
premium payments for employees called up after December 8, 
1995. CBO estimates that this provision would cost about $3 
million in 2002 (primarily for reimbursements), less than 
$500,000 in 2003, and $1 million a year beginning in 2004.
    Limitations on Workforce Reviews.--Section 331 would limit 
the ability of DoD to conduct outsourcing studies to only 3,053 
civilian positions in fiscal year 2002. CBO estimates that this 
section would cost about $70 million over the 2002-2006 period, 
assuming appropriation of the necessary amounts.
    DoD currently plans to conduct outsourcing studies on 
approximately 13,000 civilian positions in 2002. Under section 
331, DoD would review 10,000 fewer positions than planned. 
Based on information from the General Accounting Office (GAO) 
and DoD, CBO estimates that each outsourcing study takes three 
years to accomplish and costs approximately $3,500 per position 
studied. CBO estimates that reducing the number of positions 
reviewed in 2002 would result in a savings of approximately $34 
million over the 2002-2004 period. CBO also estimates that an 
additional $51 million would be saved in 2005 because the 
department would not have to pay the involuntary separation 
costs associated with the workforce reductions resulting from 
the reviews. CBO estimates that separation costs would average 
$5,200 for each position studied. While actual separation costs 
range between $20,000 to $25,000 for each position, the average 
cost per position studied considers the fact that only half of 
the civilian positions reviewed would result in job 
eliminations, and that many of the civilians whose jobs were 
eliminated would be transferred to other positions within the 
department.
    The costs associated with section 331 would result from DoD 
having to reduce future savings estimates for the years 2005 
and beyond. Based on information from DoD and GAO, CBO 
estimates that recurring savings would be approximately $10,500 
for each position studied. CBO estimates that, under it's 
current plan, DoD would begin to realize savings from 
outsourcing studies begun in 2002 in the second half of 2005 
and that the annual savings under DoD's current plan would be 
approximately $140 million in 2006 and every year thereafter. 
Under the proposed limits in this provision, CBO estimates that 
DoD would realize savings of only $33 million in 2006 and 
thereafter. The reduction in savings for the 2005-2006 period 
would be approximately $155 million.
    Service Contracting Reform.--Subtitle G of title III would 
extend workforce review studies to new requirements and work 
previously outsourced to the private sector. CBO estimates that 
implementing these sections would cost approximately $125 
million over the 2002-2006 period.
    Section 383 would require workforce studies on all new 
requirements not previously performed by DoD or contractor 
personnel that result in contracts greater than $1 million. 
Based on information from DoD, CBO estimates that this 
provision would affect approximately 10,000 contractor 
positions each year and that the cost to review each position 
would be approximately $3,500. Because the requirements of this 
provision would be phased in over a four-year period so that 
only 30 percent of the requirement would need to be met by 
2005, CBO estimates that implementing this provision would cost 
$20 million over the 2002-2006 period.
    Section 385 would require DoD to subject an equivalent 
number of contractor positions to workforce reviews for each 
civilian position review planned. Based on information from DoD 
and GAO, CBO estimates that DoD would study approximately 
34,000 contractor positions at a cost of $105 million over the 
2002-2006 period.
    CBO estimates no significant savings as a result of these 
reviews. Although some evidence suggests that subjecting 
contractors to competition could reduce costs in some 
instances, most estimated savings from workforce reviews are 
due to reductions of government personnel and overhead. It is 
also uncertain as to what extent government organizations could 
organize themselves to formally compete for work currently 
performed by the private sector.
    National Guard Challenge Program.--Section 587 would 
eliminate the spending cap on the National Guard Challenge 
Program beginning in fiscal year 2003, and would also increase 
the federal contributions to state programs from 60 percent to 
75 percent. CBO estimates that implementing this section would 
cost $48 million over the 2003-2006 period. CBO estimates that 
increasing the federal contributions to 75 percent would 
increase the annual cost for each space by about $1,000. 
Applying this cost to the 6,600 spaces in the program and 
allowing program costs to increase with inflation would result 
in an average annual cost for the program of about $10 million 
over the 2003-2006 period.
    War Medals.--Sections 546 and 547 would establish two new 
service medals. Section 546 would create a Korea Defense 
service medal for those servicemembers who served in the 
Republic of Korea or the adjacent waters at any time during the 
period beginning July 28, 1954, and ending at a time to be 
determined by the Secretary of Defense. CBO expects that on 
average about 200,000 medals would be awarded each year. 
Section 547 would authorize a Cold War service medal for 
members who served on active duty between September 2, 1945, 
and December 26, 1991. CBO estimates that about 500,000 
eligible members, or their survivors, would apply each year. 
CBOestimates that these provisions would have no cost in 2002, 
but would cost $18 million over the 2003-2006 period. CBO estimates no 
cost in 2002 to account for the delay in designing and minting these 
medals, and processing applications.
    Reductions in Defense Acquisition Workforce.--Section 901 
would limit the size of the defense acquisition workforce by 
requiring a reduction of at least 13,000 military and civilian 
personnel during fiscal year 2002. Because the total number of 
military personnel is determined by endstrength requirements, 
CBO assumes that the provision would lead to their transfer to 
other activities rather than separation from the services. 
Separations of civilian personnel, who comprise about 80 
percent of the acquisition workforce, would account for the 
remaining reductions. Because these civilian reductions would 
exceed those expected under current law, CBO estimates savings 
of $25 million in 2002, $236 million in 2003, and $1 billion 
over the 2002-2006 period. Savings would be relatively small 
during the first year because the cost of separation payments 
would offset most of the initial savings in salaries.
    Asbestos Differential Pay.--Under section 1108, federal 
wage-grade employees would be subject to the same standards as 
general schedule employees when determining eligibility for 
environmental differential pay (EDP), based on exposure to 
asbestos. Under current law, general schedule employees are 
entitled to 8 percent hazard differential pay if they are 
exposed to asbestos that exceeds the Occupational Safety and 
Health Administration (OSHA) permissible exposure limits. The 
current EDP standard for wage-grade employees entitles them to 
the same 8 percent of pay, but does not set an objective 
measure for determining the level of asbestos exposure 
necessary to qualify for EDP. In several instances where wage-
grade employees have sought back pay for EDP, arbitrators found 
in favor of the employees when asbestos levels were below those 
consistent with OSHA standards. Based on information from DoD 
on prior and pending arbitration rulings, CBO expects that 
implementing section 1108 would reduce the amount of back pay 
federal agencies would be required to pay for EDP based on 
asbestos exposure. Assuming these cases would be handled 
administratively, CBO estimates establishing OSHA standards for 
asbestos EDP would save $110 million in 2002 and $550 million 
over the 2002-2006 period, assuming appropriations are reduced 
by the estimated amounts.
    DoD Civilian Wage-Grade Schedule.--Section 1110 would 
establish the same guidelines for determining the pay schedule 
for DoD wage-grade employees as those in place, under current 
law, for non-DoD wage-grade employees when there are an 
insufficient number of comparable positions in the local 
private industry to generate the wage schedule. Under current 
law, DoD may only consider local private-industry rates when 
constructing the wage schedules for various wage areas across 
the country. This section would instruct DoD to consider 
private-industry rates in both the local area and a similar 
wage area, with more comparable private-sector positions. Based 
on information from the Office of Personnel Management, CBO 
estimates that section 1110 would increase the wages of DoD 
wage-grade employees in certain wage areas and would cost $3 
million in 2002 and $45 million over the 2002-2006 period, 
assuming appropriation of the estimated amounts. The lower cost 
in the first year reflects CBO's assumption that the 
adjustments to the wage schedules would occur at the same time 
of year that the wage schedule would normally be adjusted.
    Strategic Forces.--Section 1044 would repeal subparagraph 
(D) of section 1302(a)(1) of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85), as amended by 
section 1501(a) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65), to allow DoD to initiate 
actions to retire or dismantle the Peacekeeper intercontinental 
ballistic missile force. CBO estimates that the provision would 
save about $600 million over the 2002-2006 period. Those 
savings would come from eliminating the cost to operate the 
missiles starting immediately in 2002, eventually saving about 
$200 million a year. These savings would be partially offset by 
the costs of removing the missiles and warheads from the silos 
and the costs of monitoring the silos. CBO assumes that the 
retirement process would take about three years and that the 
missiles would be completely retired by the end of 2004. CBO 
estimates missile retirement costs would total about $100 
million over the 2002-2004 period.
    Military Housing Privatization Initiative (MHPI).--Section 
2804 would permanently extend special authorities to finance 
the construction and renovation of military family housing. 
Those authorities, which expire on December 31, 2004, allow DoD 
to use direct loans, loan guarantees, long-term leases, rental 
guarantees, barter, direct government investment, and other 
financial arrangements to encourage private-sector 
participation in building military housing. Funding for those 
activities derives from the Family Housing Improvement Fund and 
consists of appropriations to the fund, transfers from other 
accounts, receipts from property sales and rents, returns on 
any capital, and other income from operations or transactions 
connected with the program. Currently the amounts in the fund 
are available to acquire housing using the various techniques 
mentioned above, but the total value of budget authority for 
all contracts and investments undertaken is limited to $1 
billion.
    Based on how the Office of Management and Budget (OMB) has 
treated recent use of the authority, CBO does not estimate any 
budgetary impact from extending the authorities. (This bill 
authorizes the appropriation of $2 million to the fund for 
fiscal year 2002, and that amount is included in the budget 
estimates.) However, CBO believes that OMB's current accounting 
for MHPI initiatives is at odds with government-wide standards 
for recording obligations and outlays. Those standards call for 
different treatments depending on the character of the 
transaction. The OMB accounting treats certain initiatives 
primarily as credit transactions that have relatively little 
cost in terms of recorded obligations and outlays. In contrast, 
CBO considers those initiatives as having the characteristics 
of lease-purchases, which call for recording higher levels of 
up-front obligations and outlays. The Administration's approach 
will allow DoD to obligate significantly more federal resources 
than the $1 billion limitation for such projects.
    Management of the Presidio of San Francisco.--Section 2863 
would increase from $50 million to $150 million the amount that 
the Presidio Trust may borrow, subject to appropriation, from 
the U.S. Treasury. Based on recent spending patterns of the 
Trust (which is a wholly owned government corporation that 
manages the Presidio in California), CBO estimates that this 
money would be borrowed and spent slowly over the next five 
years.
            Direct Spending
    The bill contains provisions that would reduce direct 
spending, primarily through revision to payments rates for 
certain defense health care program services and certain asset 
sales from the National Defense Stockpile. The bill also 
contains a few provisions with small direct spending costs. On 
balance, CBO estimates that enacting H.R. 2586 would result in 
net savings in direct spending totaling $384 million over the 
2002-2006 period.

             TABLE 4.--ESTIMATED DIRECT SPENDING FROM HEALTH CARE AND OTHER PROVISIONS IN H.R. 2586
----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                               CHANGES IN DIRECT SPENDING (EXCLUDING ASSET SALES)

Section 535--Active-Duty Participation in Senior ROTC:
    Estimated Budget Authority.....................................        1        1        1        1        1
    Estimated Outlays..............................................        1        1        1        1        1
Section 605--Retroactive Uniform Allowances:
    Estimated Budget Authority.....................................        3        0        0        0        0
    Estimated Outlays..............................................        3        0        0        0        0
Medical Care Trust Fund:
    Section 701--Payment Rates:
        Estimated Budget Authority.................................       -2     -220        0        0        0
        Estimated Outlays..........................................       -2     -220        0        0        0
    Section 704--Long-Term Care Rules:
        Estimated Budget Authority.................................       21      -47        0        0        0
        Estimated Outlays..........................................       21      -47        0        0        0
Section 811--Recovery Audits:
    Estimated Budget Authority.....................................      -11      -55       -6      -10        0
    Estimated Outlays..............................................      -16      -75      -14        5        1
Section 2845--Land Conveyance of Navy Property in Maine:
    Estimated Budget Authority.....................................        0        1        1        0        0
    Estimated Outlays..............................................        0        1        1        0        0
Subtotal:..........................................................
    Estimated Budget Authority.....................................        9     -320       -4       -9        1
    Estimated Outlays..............................................        4     -340      -12        6        2

                                                 ASSET SALES \1\

National Defense Stockpile--New Sales:
    Estimated Budget Authority.....................................       -2       -2       -2       -2       -2
    Estimated Outlays..............................................       -2       -2       -2       -2       -2
National Defense Stockpile--Accelerated Cobalt Sales:
    Estimate Budget Authority......................................      -20      -30      -14       -3       33
    Estimated Outlays..............................................      -20      -30      -14       -3       33
Subtotal:..........................................................
    Estimated Budget Authority.....................................      -22      -32      -16       -5       31
    Estimated Outlays..............................................      -22      -32      -16       -5       31

                                        TOTAL CHANGES IN DIRECT SPENDING

Estimated Budget Authority.........................................      -13     -352      -20      -14       32
Estimated Outlays..................................................      -18     -372      -28        1      33
----------------------------------------------------------------------------------------------------------------
\1\ Asset sale receipts are a credit against direct spending.

    Active-Duty Participation in Senior ROTC.--Section 535 
would allow servicemembers to participate in the Senior Reserve 
Officers Training Corps (ROTC) while on regular active-duty 
status. Under current law, participation in Senior ROTC is 
limited to members of the reserves. Based on information from 
the military services, the Army would allow about 200 active-
duty enlisted members a year to enroll in college under this 
program. While the Army would not pay for their education, 
these members would continue to receive pay and benefits during 
their college career. CBO expects that these members would use 
Montgomery GI Bill benefits to fund their education. Under 
current law, CBO assumes that half of these members would not 
use their MGIB benefits. Therefore, CBO estimates that section 
535 would increase MGIB outlays by $1 million a year, starting 
in 2002.
    Retroactive Uniform Allowances.--Section 605 would 
authorize retroactive payments of an additional $200 clothing 
allowance for certain officers who were ineligible during 
fiscal year 2001 because they had received more than $200 in an 
initial uniform allowance over the prior two-year period. CBO 
estimates that these retroactive payments would cost $3 million 
in 2002.
    Medical Care Trust Fund.--Sections 701 and 704 would change 
the way DoD administers long-term care and the way it pays for 
that care under the Tricare for Life program. DoD has the 
regulatory authority to make the changes that are directed in 
these sections but thinks it will take upwards of two years to 
implement the changes by regulation. Section 701 would require 
that the changes be implemented by January 1, 2002, and section 
704 would take effect on October 1, 2001. Accordingly, DoD 
would save money over the roughly two-year period before the 
regulations would have been implemented. The Tricare for Life 
program will begin on October 1, 2001, but the trust fund will 
not begin operation until one year later, so only the savings 
to DoD in fiscal year 2003 would be considered direct spending 
savings. There also would be some minor savings in 2002 for 
retirees of the other uniformed services.
    Payment Rates. Under current regulations, the Tricare for 
Life program will pay all deductibles and copayments associated 
with Medicare's skilled nursing benefit andwill pay for skilled 
nursing care in excess of the Medicare benefit (100 days). 
Additionally, Tricare will pay for skilled nursing and home health care 
even if the beneficiary does not have a prior hospital admission. 
(Tricare will pay 75 percent of billed charges, with no maximum charge, 
until the beneficiary has paid $3,000 in out-of-pocket costs and then 
will pay 100 percent of billed charges after that point.) Section 701 
would require DoD to set maximum allowable charges for skilled nursing 
and home health care, which would lower its cost of providing long-term 
care. CBO estimates that implementing new charges based on Medicare 
rates would lower what DoD pays for skilled nursing and home health 
care by about 30 percent. Under section 701, CBO estimates that direct 
spending from the trust fund for DoD retirees would decline by about 
$215 million in 2003. (The discretionary savings for 2002 are discussed 
earlier in the ``Spending Subject to Appropriation'' section under the 
heading of ``Defense Health Program.'')
    The Tricare for Life program also covers retired members of 
the Coast Guard and retired uniformed members of the Public 
Health Service and the National Oceanic and Atmospheric 
Administration. Health care spending for these retirees is 
considered direct spending. Under section 701, CBO estimates 
that the other uniformed services would save about $2 million 
in 2002 and $5 million in 2003.
    Long-Term Care Rules. Under current law, Medicare will not 
pay for skilled nursing and home health care unless the 
beneficiary has been hospitalized before receiving that care. 
Tricare, on the other hand, will pay for long-term care without 
a prior hospitalization. For those cases, Tricare becomes the 
primary insurance because Medicare will not pay. Section 704 
would require DoD to structure its long-term care benefit to 
resemble Medicare's, which requires prior hospitalization. 
Implementing this provision would lower DoD's costs because 
fewer beneficiaries would be eligible for skilled nursing and 
home health care. CBO estimates that under section 704, direct 
spending from the trust fund would decline by about $120 
million in 2003. CBO also estimates that, under section 704, 
the other uniformed services would save less than $500,000 in 
2002 and about $1 million in 2003. (There would also be 
discretionary savings of about $40 million, as discussed 
earlier.)
    The Tricare for Life program would be able to lower costs 
by shifting many of those costs to their beneficiaries and 
other government programs, primarily Medicare. CBO estimates 
that about 50 percent of individuals who would have used long-
term care without a prior hospital stay would be able to 
qualify under the Medicare rules (about 1,600 for skilled 
nursing and about 12,000 for home health care). CBO further 
estimates that the average cost of skilled nursing is about 
$250 a day, and for home health care about $2,300 for 60 days 
of care, which is the Medicare benefit. Accordingly, CBO 
estimates that under section 704 direct spending for Medicare 
benefits would increase by $20 million in 2002 and $70 million 
in 2003. In addition, a few beneficiaries would eventually 
become eligible for Medicaid, which also provides long-term 
care benefits. CBO estimates that Medicaid costs under section 
704 would be $1 million in 2002 and $3 million in 2003.
    Recovery Audits.--Subtitle B of title VIII would require 
federal agencies to conduct specialized audits of those 
accounts that purchase at least $500 million of goods and 
services from the private sector. The goal of these audits 
would be to find and recover sums erroneously paid to private 
vendors. The legislation also would allow agencies to retain 
and spend some of the funds recovered under certain conditions. 
Recovered funds that still would be available for obligation 
could be spent on the original purposes of those funds, and 25 
percent of all other funds could be spent on management 
improvement projects.
    CBO estimates that implementing this program would reduce 
net direct spending by about $100 million over the 2002-2006 
period, by increasing the federal government's recovery of 
erroneous payments made in prior years. For this estimate, we 
assume that most agencies would audit at least three years of 
such payments. Implementing the bill could yield additional 
savings from payments made after 2001, but such savings would 
depend on future appropriations. In addition, CBO estimates 
that the Office of Management and Budget would spend less than 
$500,000 a year to oversee and report on the bill's 
implementation, subject to be availability of appropriated 
funds. The savings from this legislation fall within multiple 
budget functions.
    CBO expects that the requirement to audit payments would 
apply to about $60 billion in annual payments. This total 
excludes those accounts that we expect to be audited under 
current law and those that OMB would probably exempt from the 
bill's requirements, including accounts that fund research, 
testing, and procurement of military weapons, finance federal 
law enforcement activities, and involve medical records. On 
average, CBO assumes the federal government would recover about 
0.1 percent of the $60 billion audited, or $60 million a year. 
That rate takes into account the difficulty in collecting 
overpayments that are more than one year old and the likelihood 
that federal agencies will settle for less than full payment on 
some of these debts.
    CBO estimates that agencies would spend about 45 percent of 
recovered funds, which is our estimate of the maximum that 
could be spent under this provision. First, we assume that 
agencies would spend all of the recovered funds that still 
would be available for obligation (i.e., funds that were 
provided under multiyear obligation authority). In addition, we 
assume that agencies would spend the allowed 25 percent of all 
other recovered funds (i.e., those recoveries for which the 
original obligation authority has expired). Based on the 
obligation authority provided in appropriations for fiscal year 
2001, and accounting for certain exclusions that would be 
allowed under the bill, CBO estimates that agencies could spend 
at most about 45 percent of recovered funds.
    Land Conveyance and Other Property Transactions.--Titles 
XXVIII and XXIX would authorize a variety of property 
transactions involving both large and small parcels of land.
    The bill would result in direct spending by authorizing a 
conveyance that would reduce offsetting receipts collected by 
the federal government. Under section 2845, the Navy would be 
authorized to convey 485 acres of property to the state of 
Maine or other governmental jurisdictions. Under current law, 
however, the Navy will declare that property excess to its 
needs and transfer it to the General Services Administration 
(GSA) for disposal. Under normal procedures, GSA sells property 
not needed by other federal agencies or by non-federal entities 
in need of property for public-use purposes such as parks or 
educational facilities. Information from GSA indicates that 
portions of the land will likely be sold under current law 
after the entire parcel is screened for other uses in 2002. As 
a result, CBO estimates that the conveyance in the bill would 
result in forgone receipts totaling about $1 million in 2003 
and $1 million in 2004.
    Section 2861 would direct the Secretary of the Interior to 
transfer administrative jurisdiction over 35 acres of federal 
lands in Park City, Utah, to the Secretary of the Air Force, 
for purposes of building a recreational facility. Title XXIX 
also would direct the Secretary of the Interior to transfer 
administrative jurisdiction over approximately 110,000 acres of 
federal lands in San Bernardino County, California, to the 
Secretary of the Army. Based on information from the Department 
of the Interior (DOI), CBO estimates that those transfers would 
not significantly affect the federal budget. According to DOI, 
the lands currently generate no significant receipts, and the 
agency does not expect the lands to generate significant 
receipts over the next 10 years.
    CBO estimates that other provisions would not result in 
significant costs to the federal government because they would 
either authorize DoD to exchange one piece of property for 
another or would authorize DoD to convey land that under 
current law is likely to be given away.
    Concurrent Receipt.--Upon passage of qualifying, offsetting 
legislation, section 641 would allow total or partial 
concurrent payment of retirement annuities together with 
veterans' disability compensation to retirees from the 
military, the Coast Guard, the Public Health Service, and the 
National Oceanic and Atmospheric Administration who have 
service-connected disabilities. The provision also would 
discontinue special compensation for certain severely disabled 
uniformed services retirees.
    Under current law, disabled veterans who are retired from 
the uniformed services cannot receive both full retirement 
annuities and disability compensation from the Department of 
Veterans Affairs. Because of this prohibition on concurrent 
receipt, such veterans forgo a portion of their retirement 
annuity equal to the nontaxable veterans' benefit.
    Section 641 would become effective only upon passage of 
legislation that would fully offset its costs in each of the 
first 10 fiscal years after passage of the offsetting 
legislation. If qualifying, offsetting legislation were enacted 
in 2001, CBO estimates that implementing this section in 2002 
would increase direct spending for retirement payments and 
veterans' disability compensation by about $3 billion in 2002, 
$17 billion over the 2002-2006 period, and $41 billion over the 
2002-2011 period. Because those effects are contingent upon 
subsequent legislation, they are not included in Table 4.
    In addition, the military retirement system is financed in 
part by an annual payment from appropriated funds to the 
military retirement trust fund, based on an estimate of the 
system's accruing liabilities. If section 641 were implemented, 
the yearly contribution to the military retirement trust fund 
(an outlay in budget function 050) would increase to reflect 
the added liability from the expected increase in annuities to 
future retirees. CBO estimates that implementing this provision 
would increase such payments by about $1 billion in 2002, and 
$6 billion over the 2002-2006 period, assuming appropriation of 
the necessary amounts.
    Other Provisions.--The following provisions would have an 
insignificant budgetary impact on direct spending:
    Section 514 would allow officers, whose mandatory 
retirement has been deferred for medical reasons, to further 
postpone their retirement for up to 30 days.
    Section 512 would allow the Service Secretaries to hold 
special selection boards to consider reserve officers from 
below the promotion zone who, through error, were either not 
considered for promotion or were passed over on or after 
October 1, 1996. Under current law, special selection boards 
may only consider members who were in or above the promotion 
zone. Because members would be entitled to back pay if they 
receive retroactive promotions, enacting this provision would 
increase direct spending. CBO expects the number of retroactive 
promotions to be small and we estimate that outlays would 
increase by less than $500,000 a year.
    Section 514 would allow disability retirement for 
reservists whose disability was incurred or aggravated while 
remaining overnight before inactive-duty training, or between 
successive periods of such training. Currently, reservists are 
only covered during overnight stays for such periods if they 
are outside reasonable commuting distance of their residences.
    Section 515 would reduce the time-in-grade requirement for 
certain reserve officers who are retired because of a non-
service-connected disability. In order to retire at a given 
grade, they would have to have served six months in that grade, 
rather than the three years required under current law.
    Section 528 would allow the National Defense University 
(NDU) to collect and spend tuition receipts for up to 10 
civilian students from the private sector at any one time. 
Currently, NDU accepts about 3 civilian students a year, on 
average, and their tuition is paid to the Treasury. CBO 
estimates this section would result in a negligible loss of 
receipts to the Treasury.
    Section 542 would require the military to review the 
records of certain Jewish American and Hispanic American war 
veterans to determine if any of these veterans should be 
awarded the Medal of Honor. A $600 a month pension is available 
to living Medal of Honor recipients. Based on similar reviews 
in the past, CBO estimates that a small number of awards would 
be presented (many posthumously), resulting in an increase in 
direct spending of less than $500,000 a year.
    Section 574 would allow DoD to accept voluntary legal 
services as a way to provide legal help to DoD beneficiaries. 
Although the service is voluntary, in the event of a legal 
malpractice suit the government would be liable for any claims 
against the legal volunteer. Payment of those claims is 
considered direct spending, but CBO estimates that this 
provision would cost less than $500,000 each year.
    Section 713 would establish a pilot program to allow 
certain hospitals to provide trauma and other medical care to 
individuals who are not currently eligible for care at military 
treatment facilities. The hospital would bill the individuals 
based on private rates and would have the authority to spend 
the receipts collected without the requirement for annual 
appropriations. Based on information provided by DoD, CBO 
estimates that the department would collect and spend less than 
$500,000 a year.
    Section 1104 would provide greater pension portability for 
certain civilian employees who have been employed by a 
Nonappropriated Fund Instrumentality (NAFI) and then become 
federal workers or vice versa. The provision would make it 
easier for workers who move between a NAFI employer and the 
civil service to transfer any accrued service credits from one 
retirement system to another. Based on information from DoD 
indicating relatively few workers would be affected by this 
provision, CBO estimates that section 1104 would change direct 
spending by less than $500,000 a year.
            Asset sales
    The bill would authorize DoD to sell certain materials 
contained in the National Defense Stockpile that are obsolete 
or excess to stockpile requirements. CBO estimates that DoD 
would be able to sell the materials authorized for disposal and 
achieve receipts totaling about $2 million in 2002, $10 million 
over the 2002-2006 period, and $20 million over the 2002-2011 
period.
    The bill also would accelerate by one year the disposal of 
cobalt that was previously authorized for sale in the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85). The 1998 bill authorized the sale of all remaining cobalt 
starting in 2003. The sales of cobalt authorized for disposal 
under earlier bills are projected to be completed this year. 
This bill would allow all remaining cobalt to be sold starting 
in 2002, thus avoiding a one-year gap in sales. CBO estimates 
that DoD would be able to expedite that disposal without 
impacting current market prices, resulting in more receipts 
from asset sales over the next five years but no net budgetary 
impact over the 2002-2011 period.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in direct spending that are subject to pay-as-you-go 
procedures are shown in Table 5. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

                                         TABLE 5.--ESTIMATED IMPACT OF H.R. 2586 ON DIRECT SPENDING AND RECEIPTS
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          By fiscal year, in millions of dollars
                                                                ----------------------------------------------------------------------------------------
                                                                  2001    2002     2003    2004    2005    2006    2007    2008    2009    2010    2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays.............................................       0     -18     -372     -28       1      33      33      -1      -1      -1      -1
Changes in receipts............................................                                       Not applicable
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: Section 4 of 
UMRA excludes from the application of that act any legislative 
provisions that are necessary for the national security. Many 
of the provisions in this bill would fall under that exclusion.
    Other sections of HR 2586 contain several intergovernmental 
mandates, including two preemptions of state law. None of the 
mandates would impose significant costs; therefore, the 
threshold established by UMRA ($56 million for 
intergovernmental mandates in 2001, adjusted annually for 
inflation) would not be exceeded. The bill also would provide 
for several land conveyances between the federal government and 
state, local, and tribal governments and includes provisions 
that would protect those governments from unnecessary cleanup 
costs should an environmental hazard be discovered on that 
land.
    A provision in title 5 (Military Personnel Policy) would 
require public secondary schools to provide military recruiters 
with access to students and to student information in the same 
manner that such access and information is provided to 
employers and institutions of higher education. The requirement 
to provide access and information to the military would be a 
mandate as defined by UMRA. Because this information is already 
provided to other parties, the costs of complying with this 
mandate would be minimal.
    The two preemptions in this bill deal with land management. 
Section 2811 (Use of Military Installations for Certain 
Recreational Activities) would amend current law to allow the 
Secretary of Defense to waive compliance with state or 
territorial fish and game laws at a military installation or 
facility if the Secretary determines that those laws could 
result in undesirable consequences for public safety or adverse 
effects on morale. Under current law, the Secretary must 
require each military installation or facility under the 
jurisdiction of any military department to adhere to the 
appropriate fish and game laws. Such a preemption of state law 
would be a mandate. However, the costs of complying with this 
mandate would be minimal, since the states would not be 
required to take any specific action or spend any money to 
comply.
    Section 2864 (Effect of Limitation on Construction of Roads 
or Highways, Marine Corps Base, Camp Pendleton, California) 
would preempt any California state law passed after January 1, 
2001, that directly or indirectly prohibits or restricts the 
construction or approval of a road or highway within an 
easement granted by the Secretary of the Navy on the Camp 
Pendleton Marine Corps Base. The costs of complying with this 
mandate also would be minimal since the state would not be 
required to take any specific action or spend any money to 
comply.
    Finally, the changes to DoD's Tricare long-term care 
program would result in additional Medicaid costs to states of 
about $1 million in 2002 and over $2 million in 2003. Because 
states have sufficient flexibility in the Medicaid program to 
alter their programmatic and financial responsibilities, these 
additional costs would not result from intergovernmental 
mandates as defined in UMRA.
    Previous CBO estimate: On May 22, 2001, CBO prepared a cost 
estimate for S. 170 and H.R. 303, identical bills titled the 
Retired Pay Restoration Act of 2001. S. 170 and H.R. 303 would 
provide identical benefits to those specified in Section 641 of 
H.R. 2586. If section 641 is implemented by October 1, 2001, 
the costs would be identical to those estimate for S. 170 and 
H.R. 303. As noted above, however, the provisions of section 
641 cannot be implemented until additional legislation is 
enacted (to offset the section's costs). S. 170 and H.R. 303 do 
not contain such a contingency requirement.
    Estimate prepared by: Federal costs: Military Construction 
and Other Defense: Kent Christensen; Military and Civilian 
Personnel: Dawn Regan; Civilian Retirement: Geoffrey Gerhardt; 
Stockpile Sales and Strategic Forces: Raymond Hall. Military 
Retirement: Sarah Jennings; Health Programs: Sam Papenfuss; 
Multiyear Procurement: Jo Ann Vines; Maritime Administration: 
Deborah Reis; Naval Petroleum Reserves: Lisa Cash Driskill; 
Operations and Maintenance: Matthew A. Schmit. Impact on State, 
local, and tribal governments: Elyse Goldman. Impact on the 
private sector: R. William Thomas.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the committee generally concurs with 
the estimates as contained in the report of the Congressional 
Budget Office.

                           OVERSIGHT FINDINGS

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, this legislation results from 
hearings and other oversight activities conducted by the 
committee pursuant to clause 2(b)(1) of rule X.
    With respect to clause 3(c)(2) of rule XIII of the Rules of 
the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, this legislation does not 
include any new spending or credit authority, nor does it 
provide for any increase or decrease in tax revenues or 
expenditures. The bill does, however, authorize appropriations. 
Other fiscal features of this legislation are addressed in the 
estimate prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974.
    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the committee has not received a 
report from the Committee on Government Reform and Oversight 
pertaining to the subject matter of H.R. 2586.

                GENERAL PERFORMANCE GOALS AND OBJECTIVES

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, this legislation would address 
several general and outcome-related performance goals and 
objectives. The general goal and objective of this legislation 
is to improve the quality of life for military personnel and 
their families, military readiness, the modernization and 
eventual transformation of the armed forces, to enhance the 
development of ballistic missile defenses, and to improve the 
condition of military housing and facilities.
    With respect to the outcome-related goal of improving the 
quality of life for military personnel and their families, the 
objective of this legislation is to:
          (1) ensure the largest military pay raise since 
        fiscal year 1982 that would provide every service 
        member, after pay table adjustments contained in this 
        legislation, with a pay raise between 5 and 10 percent 
        effective on January 1, 2002;
          (2) reduce out-of-pocket housing costs for military 
        personnel to less than 12 percent;
          (3) reduce the financial burden of permanent-change-
        of-station moves on families by providing increased 
        reimbursement of temporary lodging and subsistence 
        expenses;
          (4) eliminate unfair provisions in current law that 
        cause military retirees eligible for veteran's 
        disability compensation to have their military retired 
        pay reduced; and (5) satisfy $95 million of the 
        unfunded personnel requirements identified by the 
        service chiefs.
    With respect to the outcome-related goal of improving 
military readiness, the objective of this legislation is to:
          (1) increase funding for key readiness accounts by 
        $7.5 billion above the fiscal year 2001 level; and (2) 
        improve readiness through recruitment and retention by 
        boosting military special pays, enhancing incentives 
        for individuals to join Reserve Officer Training Corps 
        programs, and extending numerous enlistment and 
        reenlistment bonuses.
    With respect to the outcome-related goal of improving the 
modernization and eventual transformation of the armed forces 
and enhancing the development of ballistic missile defenses, 
the objective of this legislation is to:
          (1) increase funding for military procurement 
        accounts by $442.1 million;
          (2) satisfy more than $250 million of the unfunded 
        procurement requirements identified by the service 
        chiefs;
          (3) increase funding for military research and 
        development accounts by $228.5 above the budget 
        request, for a total increase of $6.7 billion above the 
        fiscal year 2001 level; and (4) support the approach of 
        the President's ballistic missile defense program and 
        to increase funding for ballistic missile defense 
        programs by $2.9 billion above the fiscal year 2001 
        level.
    With respect to the outcome-related goal of improving 
military housing and facilities, the objective of this 
legislation is to:
          (1) increase funding for military construction and 
        military family housing programs by $1.8 billion more 
        than the fiscal year 2001 level; and (2) make permanent 
        the authority provided by current law to privatize 
        military housing.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to Rule XIII, clause 3(d)(1) of the Rules of the 
House of Representatives, the committee finds the authority for 
this legislation in Article I, Section 8 of the United States 
Constitution.

                     STATEMENT OF FEDERAL MANDATES

    Pursuant to section 423 of Public Law 104-4, this 
legislation contains no federal mandates with respect to state, 
local, and tribal governments, nor with respect to the private 
sector. Similarly, the bill provides no federal 
intergovernmental mandates.

                              RECORD VOTES

    In accordance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, record and voice votes were taken 
with respect to the committee's consideration of H.R. 2586. The 
record of these votes is attached to this report.
    The committee ordered H.R. 2586 reported to the House with 
a favorable recommendation by a vote of 58-1, a quorum being 
present.

         Changes in Existing Law Made by the Bill, as Reported

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

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1995

           *       *       *       *       *       *       *

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

           *       *       *       *       *       *       *

Subtitle B--Army Programs

           *       *       *       *       *       *       *

[SEC. 116. BUNKER DEFEAT MUNITION ACQUISITION PROGRAM.

  [The Secretary of the Army, in acquiring munitions under the 
bunker defeat munition weapons acquisition program--
          [(1) may acquire only those munitions that are 
        designated as ``type classified, limited procurement 
        for contingency operations''; and
          [(2) may not acquire more than 8,500 such munitions.]

           *       *       *       *       *       *       *

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

           *       *       *       *       *       *       *

Subtitle B--Professional Military Education

           *       *       *       *       *       *       *

[SEC. 912. BOARD OF ADVISORS FOR MARINE CORPS UNIVERSITY.

  [The Secretary of the Navy shall establish a board of 
advisors for the Marine Corps University. The Secretary shall 
ensure that the board is established so as to meet all 
requirements of the appropriate regional accrediting 
association.]

           *       *       *       *       *       *       *

                              ----------                              

TITLE 10, UNITED STATES CODE

           *       *       *       *       *       *       *

                    Subtitle A--General Military Law

            PART I--ORGANIZATION AND GENERAL MILITARY POWERS

Chap.                                                               Sec.
      Definitions....................................................101
     * * * * * * *

                           PART II--PERSONNEL

     * * * * * * *
      Department of Defense Medicare-Eligible Retiree Health Care1111[.]
     * * * * * * *

                PART IV--SERVICE, SUPPLY, AND PROCUREMENT

     * * * * * * *
      Space Programs................................................2271
     * * * * * * *

PART I--ORGANIZATION AND GENERAL MILITARY POWERS

           *       *       *       *       *       *       *

CHAPTER 2--DEPARTMENT OF DEFENSE

           *       *       *       *       *       *       *

Sec. 115. Personnel strengths: requirement for annual authorization

  (a) * * *

           *       *       *       *       *       *       *

  (c) Upon determination by the Secretary of Defense that such 
action is in the national interest, the Secretary may--
          (1) increase the end strength authorized pursuant to 
        subsection (a)(1)(A) for a fiscal year for any of the 
        armed forces by a number equal to not more than [1] 2 
        percent of that end strength;

           *       *       *       *       *       *       *

  (d) In counting active-duty personnel for the purpose of the 
end-strengths authorized pursuant to subsection (a)(1), persons 
in the following categories shall be excluded:
          (1) * * *

           *       *       *       *       *       *       *

          (10) Members of reserve components on active duty to 
        prepare for and to perform funeral honors functions for 
        funerals of veterans in accordance with section 1491 of 
        this title.
          (11) Members on full-time National Guard duty to 
        prepare for and perform funeral honors functions for 
        funerals of veterans in accordance with section 1491 of 
        this title.

           *       *       *       *       *       *       *

Sec. 118. Quadrennial defense review

  (a) * * *

           *       *       *       *       *       *       *

  (e) CJCS Review.--(1) Upon the completion of each review 
under subsection (a), the Chairman of the Joint Chiefs of Staff 
shall prepare and submit to the Secretary of Defense the 
Chairman's assessment of the review, including the Chairman's 
assessment of risk.
  (2) As part of his assessment under paragraph (1), the 
Chairman shall provide his assessment of the assignment of 
functions (or roles and missions) to the armed forces and such 
recommendations for changes thereto as the Chairman considers 
necessary to achieve maximum efficiency of the armed forces. In 
preparing such assessment, the Chairman shall consider (among 
other matters) the following:
          (A) Unnecessary duplication of effort among the armed 
        forces.
          (B) Changes in technology that can be applied 
        effectively to warfare.
  (3) The Chairman's assessment shall be submitted to the 
Secretary in time for the inclusion of the assessment in the 
report. The Secretary shall include the Chairman's assessment, 
together with the Secretary's comments, in the report in its 
entirety.

           *       *       *       *       *       *       *

Sec. 119. Special access programs: congressional oversight

  (a) * * *

           *       *       *       *       *       *       *

  (g) In this section, the term ``defense committees'' means--
          (1) * * *
          (2) the Committee on Armed Services and the Committee 
        on Appropriations, and the [National Security 
        Subcommittee] Subcommittee on Defense of the Committee 
        on Appropriations, of the House of Representatives.

           *       *       *       *       *       *       *

CHAPTER 3--GENERAL POWERS AND FUNCTIONS

           *       *       *       *       *       *       *

Sec. 123. Authority to suspend officer personnel laws during war or 
                    national emergency

  (a) * * *

           *       *       *       *       *       *       *

  (d) Upon the termination of a suspension made under the 
authority of subsection (a) of a provision of law otherwise 
requiring the separation or retirement of officers on active 
duty because of age, length of service or length of service in 
grade, or failure of selection for promotion, the Secretary 
concerned shall extend by up to 90 days the otherwise required 
separation or retirement date of any officer covered by the 
suspended provision whose separation or retirement date, but 
for the suspension, would have been before the date of the 
termination of the suspension or within 90 days of the date of 
such termination.

           *       *       *       *       *       *       *

Sec. 130c. Nondisclosure of information: certain sensitive information 
                    of foreign governments and international 
                    organizations

  (a) * * *
  (b) Information Eligible for Exemption.--For the purposes of 
this section, information is sensitive information of a foreign 
government only if the national security official concerned 
makes each of the following determinations with respect to the 
information:
          (1) * * *

           *       *       *       *       *       *       *

          (3) That any of the following conditions are met:
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) The information is an item of 
                information, or is in a category of 
                information, that the national security 
                official concerned has specified in regulations 
                prescribed under subsection [(f )] (g) as being 
                information the release of which would have an 
                adverse effect on the ability of the United 
                States Government to obtain the same or similar 
                information in the future.

           *       *       *       *       *       *       *

  (d) Limitations.--(1) If a request for disclosure covers any 
sensitive information of a foreign government (as described in 
subsection (b)) that came into the possession or under the 
control of the United States Government before [the date of the 
enactment of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001] October 30, 2000, and more than 25 
years before the request is received by an agency, the 
information may be withheld only as set forth in paragraph (3).

           *       *       *       *       *       *       *

             CHAPTER 4--OFFICE OF THE SECRETARY OF DEFENSE

Sec.
131.  Office of the Secretary of Defense.
     * * * * * * *
[137.  Director of Defense Research and Engineering.]
137.  Under Secretary of Defense for Space, Intelligence, and 
          Information.
     * * * * * * *
139a.  Director of Defense Research and Engineering.
     * * * * * * *

Sec. 131. Office of the Secretary of Defense

  (a) * * *
  (b) The Office of the Secretary of Defense is composed of the 
following:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The Under Secretary of Defense for Space, 
        Intelligence, and Information.
          [(6)] (7) The Director of Defense Research and 
        Engineering.
          [(7)] (8) The Assistant Secretaries of Defense.
          [(8)] (9) The Director of Operational Test and 
        Evaluation.
          [(9)] (10) The General Counsel of the Department of 
        Defense.
          [(10)] (11) The Inspector General of the Department 
        of Defense.
          [(11)] (12) Such other offices and officials as may 
        be established by law or the Secretary of Defense may 
        establish or designate in the Office.

           *       *       *       *       *       *       *

Sec. 133a. Deputy Under Secretary of Defense for Acquisition and 
                    Technology

  (a) * * *
  (b) The Deputy Under Secretary of Defense for Acquisition and 
Technology [shall assist the Under Secretary of Defense for 
Acquisition and Technology] shall assist the Under Secretary of 
Defense for Acquisition, Technology, and Logistics in the 
performance of the Under Secretary's duties relating to 
acquisition and technology.

           *       *       *       *       *       *       *

Sec. 137. Under Secretary of Defense for Space, Intelligence, and 
                    Information

  (a) There is an Under Secretary of Defense for Space, 
Intelligence, and Information, appointed from civilian life by 
the President, by and with the advice and consent of the 
Senate.
  (b) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Space, 
Intelligence, and Information shall perform such duties and 
exercise such powers relating to the space, intelligence, and 
information programs and activities of the Department of 
Defense as the Secretary of Defense may prescribe.
  (c) The Secretary of Defense shall designate the Under 
Secretary of Defense for Space, Intelligence, and Information 
as the Chief Information Officer of the Department of Defense 
under section 3506(a)(2)(B) of title 44.
  (d) The Under Secretary of Defense for Space, Intelligence, 
and Information takes precedence in the Department of Defense 
after the Under Secretary of Defense for Personnel and 
Readiness.

           *       *       *       *       *       *       *

Sec. 138. Assistant Secretaries of Defense

  (a) There are [nine] eleven Assistant Secretaries of Defense, 
appointed from civilian life by the President, by and with the 
advice and consent of the Senate.
  (b)(1) * * *

           *       *       *       *       *       *       *

  (3) Not more than three of the Assistant Secretaries may be 
assigned duties under the authority of the Under Secretary of 
Defense for Space, Intelligence, and Information and shall 
report to that Under Secretary.

           *       *       *       *       *       *       *

Sec. 139. Director of Operational Test and Evaluation

  (a) * * *

           *       *       *       *       *       *       *

  (c) The Director may communicate views on matters within the 
responsibility of the Director directly to the Secretary of 
Defense and the Deputy Secretary of Defense without obtaining 
the approval or concurrence of any other official within the 
Department of Defense. The Director shall consult closely with, 
but the Director and the Director's staff are independent of, 
the [Under Secretary of Defense for Acquisition and Technology] 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics and all other officers and entities of the Department 
of Defense responsible for acquisition.

           *       *       *       *       *       *       *

  (f) The Director shall prepare an annual report summarizing 
the operational test and evaluation activities (including live 
fire testing activities) of the Department of Defense during 
the preceding fiscal year. Each such report shall be submitted 
concurrently to the Secretary of Defense, the [Under Secretary 
of Defense for Acquisition and Technology] Under Secretary of 
Defense for Acquisition, Technology, and Logistics, and the 
Congress not later than 10 days after the transmission of the 
budget for the next fiscal year under section 1105 of title 31. 
If the Director submits the report to Congress in a classified 
form, the Director shall concurrently submit an unclassified 
version of the report to Congress. The report shall include 
such comments and recommendations as the Director considers 
appropriate, including comments and recommendations on 
resources and facilities available for operational test and 
evaluation and levels of funding made available for operational 
test and evaluation activities. The Secretary may comment on 
any report of the Director to Congress under this subsection.

           *       *       *       *       *       *       *

Sec. [137.] 139a. Director of Defense Research and Engineering

  (a) There is a Director of Defense Research and Engineering, 
appointed from civilian life by the President, by and with the 
advice and consent of the Senate.
  (b) Except as otherwise prescribed by the Secretary of 
Defense, the Director of Defense Research and Engineering shall 
perform such duties relating to research and engineering as the 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics may prescribe.

           *       *       *       *       *       *       *

CHAPTER 5--JOINT CHIEFS OF STAFF

           *       *       *       *       *       *       *

Sec. 153. Chairman: functions

  (a) * * *
  [(b) Report on Assignment of Roles and Missions.--(1) Not 
less than once every three years, or upon the request of the 
President or the Secretary of Defense, the Chairman shall 
submit to the Secretary of Defense a report containing such 
recommendations for changes in the assignment of functions (or 
roles and missions) to the armed forces as the Chairman 
considers necessary to achieve maximum effectiveness of the 
armed forces. In preparing each such report, the Chairman shall 
consider (among other matters) the following:
          [(A) Changes in the nature of the threats faced by 
        the United States.
          [(B) Unnecessary duplication of effort among the 
        armed forces.
          [(C) Changes in technology that can be applied 
        effectively to warfare.
  [(2) The Chairman shall include in each such report 
recommendations for such changes in policies, directives, 
regulations, and legislation as may be necessary to achieve the 
changes in the assignment of functions recommended by the 
Chairman.]

           *       *       *       *       *       *       *

CHAPTER 7--BOARDS, COUNCILS, AND COMMITTEES

           *       *       *       *       *       *       *

Sec. 171. Armed Forces Policy Council

  (a) There is in the Department of Defense an Armed Forces 
Policy Council consisting of--
          (1) * * *

           *       *       *       *       *       *       *

          (3) the [Under Secretary of Defense for Acquisition 
        and Technology] Under Secretary of Defense for 
        Acquisition, Technology, and Logistics;

           *       *       *       *       *       *       *

Sec. 176. Armed Forces Institute of Pathology

  (a)(1) * * *

           *       *       *       *       *       *       *

  (3) The Board of Governors shall consist of the Assistant 
Secretary of Defense for Health Affairs, who shall serve as 
chairman of the Board of Governors, the Assistant Secretary of 
Health and Human Services for Health, the Surgeons General of 
the Army, Navy, and Air Force, the [Chief Medical Director] 
Under Secretary for Health of the Department of Veterans 
Affairs, and a former Director of the Institute, as designated 
by the Secretary of Defense, or the designee of any of the 
foregoing.

           *       *       *       *       *       *       *

Sec. 179. Nuclear Weapons Council

  (a) There is a Joint Nuclear Weapons Council (hereinafter in 
this section referred to as the ``Council'') composed of three 
members as follows:
          (1) The [Under Secretary of Defense for Acquisition 
        and Technology] Under Secretary of Defense for 
        Acquisition, Technology, and Logistics.

           *       *       *       *       *       *       *

Sec. 184. Department of Defense regional centers for security studies

  (a) Advance Notification to Congress of the Establishment of 
New Regional Centers.--After [the date of the enactment of this 
section,] October 30, 2000, a regional center for security 
studies may not be established in the Department of Defense 
until--
          (1) the Secretary of Defense submits to Congress a 
        notification of the intent of the Secretary to 
        establish the center, including a description of the 
        mission and functions of the proposed center and a 
        justification for the proposed center; and
          (2) a period of 90 days has elapsed after the date on 
        which that notification is submitted.

           *       *       *       *       *       *       *

                   CHAPTER 9--DEFENSE BUDGET MATTERS

Sec.
221.  Future-years defense program: submission to Congress; consistency 
          in budgeting.
     * * * * * * *
[223.  Ballistic missile defense programs: program elements.
[224.  Ballistic missile defense programs: display of amounts for 
          procurement.]
224.  Ballistic missile defense programs: display of amounts for 
          research, development, test, and evaluation.
     * * * * * * *

[Sec. 223. Ballistic missile defense programs: program elements

  [(a) Program Elements Specified.--In the budget justification 
materials submitted to Congress in support of the Department of 
Defense budget for any fiscal year (as submitted with the 
budget of the President under section 1105(a) of title 31), the 
amount requested for activities of the Ballistic Missile 
Defense Organization shall be set forth in accordance with the 
following program elements:
          [(1) The Patriot system.
          [(2) The Navy Area system.
          [(3) The Theater High-Altitude Area Defense system.
          [(4) The Navy Theater Wide system.
          [(5) The Medium Extended Air Defense System.
          [(6) Joint Theater Missile Defense.
          [(7) National Missile Defense.
          [(8) Support Technologies.
          [(9) Family of Systems Engineering and Integration.
          [(10) Ballistic Missile Defense Technical Operations.
          [(11) Threat and Countermeasures.
          [(12) International Cooperative Programs.
  [(b) Treatment of Major Defense Acquisition Programs.--
Amounts requested for Theater Missile Defense and National 
Missile Defense major defense acquisition programs shall be 
specified in individual, dedicated program elements, and 
amounts appropriated for those programs shall be available only 
for Ballistic Missile Defense activities.
  [(c) Management and Support.--The amount requested for each 
program element specified in subsection (a) shall include 
requests for the amounts necessary for the management and 
support of the programs, projects, and activities contained in 
that program element.]

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

Sec. 224. Ballistic missile defense programs: display of amounts for 
                    research, development, test, and evaluation

  (a) Requirement.--Any amount in the budget submitted to 
Congress under section 1105 of title 31 for any fiscal year for 
[procurement] research, development, test, and evaluation 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] research, 
development, test, and evaluation 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).]
  (b) Covered Programs.--Subsection (a) applies to any 
ballistic missile defense program for which research, 
development, test, and evaluation is carried out by the 
Ballistic Missile Defense Organization.

           *       *       *       *       *       *       *

CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

           *       *       *       *       *       *       *

                  SUBCHAPTER III--PERSONNEL MANAGEMENT

Sec.
461.  Management rights.
462.  Undergraduate training program.
     * * * * * * *

Sec. 462. Undergraduate training program

  (a) Authority To Carry Out Program.--The Secretary of Defense 
may authorize the Director of the National Imagery and Mapping 
Agency to establish an undergraduate training program under 
which civilian employees of the National Imagery and Mapping 
Agency may be assigned as students at accredited professional, 
technical, and other institutions of higher learning for 
training at the undergraduate level in skills critical to 
effective performance of the mission of the National Imagery 
and Mapping Agency. Such training may lead to the award of a 
baccalaureate degree.
  (b) Purpose.--The purpose of the program authorized by 
subsection (a) is to facilitate the recruitment of individuals, 
particularly minority high school students, with a demonstrated 
capability to develop skills critical to the mission of the 
National Imagery and Mapping Agency, including skills in 
mathematics, computer science, engineering, and foreign 
languages.
  (c) Requirements.--(1) To be eligible for assignment under 
subsection (a), an employee of the National Imagery and Mapping 
Agency must agree in writing--
          (A) to continue in the service of the National 
        Imagery and Mapping Agency for the period of the 
        assignment and to complete the educational course of 
        training for which the employee is assigned;
          (B) to continue in the service of the National 
        Imagery and Mapping Agency following completion of the 
        assignment for a period of one-and-a-half years for 
        each year of the assignment or part thereof;
          (C) to reimburse the United States for the total cost 
        of education (excluding the employee's pay and 
        allowances) provided under this section to the employee 
        if, before the employee's completing the educational 
        course of training for which the employee is assigned, 
        the assignment or the employee's employment with the 
        National Imagery and Mapping Agency is terminated 
        either by the National Imagery and Mapping Agency due 
        to misconduct by the employee or by the employee 
        voluntarily; and
          (D) to reimburse the United States if, after 
        completing the educational course of training for which 
        the employee is assigned, the employee's employment 
        with the National Imagery and Mapping Agency is 
        terminated either by the National Imagery and Mapping 
        Agency due to misconduct by the employee or by the 
        employee voluntarily, before the employee's completion 
        of the service obligation period described in 
        subparagraph (B), in an amount that bears the same 
        ratio to the total cost of the education (excluding the 
        employee's pay and allowances) provided to the employee 
        as the unserved portion of the service obligation 
        period described in subparagraph (B) bears to the total 
        period of the service obligation described in 
        subparagraph (B).
  (2) Subject to paragraph (3), the obligation to reimburse the 
United States under an agreement described in paragraph (1), 
including interest due on such obligation, is for all purposes 
a debt owing the United States.
  (3)(A) A discharge in bankruptcy under title 11, United 
States Code, shall not release a person from an obligation to 
reimburse the United States required under an agreement 
described in paragraph (1) if the final decree of the discharge 
in bankruptcy is issued within five years after the last day of 
the combined period of service obligation described in 
subparagraphs (A) and (B) of paragraph (1).
  (B) The Secretary of Defense may release a person, in whole 
or in part, from the obligation to reimburse the United States 
under an agreement described in paragraph (1) when, in his 
discretion, the Secretary determines that equity or the 
interests of the United States so require.
  (C) The Secretary of Defense shall permit an employee 
assigned under this section who, before commencing a second 
academic year of such assignment, voluntarily terminates the 
assignment or the employee's employment with the National 
Imagery and Mapping Agency, to satisfy his obligation under an 
agreement described in paragraph (1) by reimbursing the United 
States according to a schedule of monthly payments which 
results in completion of reimbursement by a date five years 
after the date of termination of the assignment or employment 
or earlier at the option of the employee.
  (d) Disclosure Required.--(1) When an employee is assigned 
under this section to an institution, the Secretary shall 
disclose to the institution to which the employee is assigned 
that the National Imagery and Mapping Agency employs the 
employee and that the National Imagery and Mapping Agency funds 
the employee's education.
  (2) Efforts by the Secretary to recruit individuals at 
educational institutions for participation in the undergraduate 
training program established by this section shall be made 
openly and according to the common practices of universities 
and employers recruiting at such institutions.
  (e) Appropriation of Funds Required.--The Secretary may pay, 
directly or by reimbursement to employees, expenses incident to 
assignments under subsection (a), in any fiscal year only to 
the extent that appropriated funds are available for such 
purpose.
  (f) Inapplicability of Certain Laws.--Chapter 41 of title 5 
and subsections (a) and (b) of section 3324 of title 31 shall 
not apply with respect to this section.
  (g) Regulations.--The Secretary of Defense may prescribe such 
regulations as may be necessary to implement this section.

           *       *       *       *       *       *       *

             CHAPTER 23--MISCELLANEOUS STUDIES AND REPORTS

Sec.
480.  Department of Defense reports: submission in electronic form.
     * * * * * * *

Sec. 480. Department of Defense reports: submission in electronic form

  (a) Requirement.--Whenever the Secretary of Defense or any 
other official of the Department of Defense is required by law 
to submit a report to Congress (or any committee of either 
House of Congress), the Secretary or other official shall 
provide to Congress (or each such committee) a copy of the 
report in an electronic medium.
  (b) Exception.--Subsection (a) does not apply to a report 
submitted in classified form.
  (c) Definition.--In this section, the term ``report'' 
includes any certification, notification, or other 
communication in writing.

           *       *       *       *       *       *       *

                           PART II--PERSONNEL

Chap.                                                               Sec.
      Enlistments....................................................501
     * * * * * * *
      Department of Defense Medicare-Eligible Retiree Health Care1111[.]
     * * * * * * *

CHAPTER 31--ENLISTMENTS

           *       *       *       *       *       *       *

  The text of existing law for section 503(c) is shown to reflect the 
 amendments made to that section by Public Law 106-398, effective July 
                                1, 2002.

Sec. 503. Enlistments: recruiting campaigns; compilation of directory 
                    information

  (a) * * *

           *       *       *       *       *       *       *

  (c) Access to Secondary Schools.--(1) Each local educational 
agency shall (except as provided under paragraph (5)) provide 
to the Department of Defense, upon a request made for military 
recruiting [purposes, the same access to secondary school 
students, and to directory information concerning such 
students, as is provided generally to post-secondary 
educational institutions or to prospective employers of those 
students.] purposes--
          (A) the same access to secondary school students as 
        is provided generally to post-secondary educational 
        institutions or to prospective employers of those 
        students; and
          (B) the same access to directory information 
        concerning those students as is provided to a post-
        secondary educational institution upon an indication by 
        a secondary school student that the student seeks to 
        enroll or intends to enroll at that institution.

           *       *       *       *       *       *       *

  (6) In this subsection:
          (A) The term ``local educational agency'' means--
                  (i) a local educational agency, within the 
                meaning of that term in section 14101[(18)] of 
                the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 8801[(18)]); and

           *       *       *       *       *       *       *

Sec. 517. Authorized  daily  average:  members  in  pay  grades  E-8 
                    and E-9

  (a) The authorized daily average number of enlisted members 
on active duty (other than for training) in an armed force in 
pay grades E-8 and E-9 in a fiscal year may not be more than [2 
percent (or, in the case of the Army, 2.5 percent)] 2.5 percent 
and 1 percent, respectively, of the number of enlisted members 
of that armed force who are on active duty (other than for 
training) on the first day of that fiscal year. In computing 
the limitations prescribed in the preceding sentence, there 
shall be excluded enlisted members of an armed force on active 
duty (other than for training) in connection with organizing, 
administering, recruiting, instructing, or training the reserve 
component of an armed force.

           *       *       *       *       *       *       *

Sec. 520c. Recruiting functions: use of funds

  (a) Provision of Meals and Refreshments.--Under regulations 
prescribed by the Secretary concerned, funds appropriated to 
the Department of Defense for recruitment of military personnel 
may be expended for small meals and refreshments during 
recruiting functions for the following persons:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Members of the armed forces and Federal employees 
        when attending [recruiting events] recruiting functions 
        in accordance with a requirement to do so.
          (5) Other persons whose presence at [recruiting 
        efforts] recruiting functions will contribute to 
        recruiting efforts.

           *       *       *       *       *       *       *

  [(c) Termination of Authority.--The authority in subsection 
(a) may not be exercised after September 30, 2001.]

         CHAPTER 32--OFFICER STRENGTH AND DISTRIBUTION IN GRADE

Sec.
521.  Authority to prescribe total strengths of officers on active duty 
          and officer strengths in various categories.
     * * * * * * *
[528.  Limitation on number of officers on active duty in grades of 
          general and admiral.]

           *       *       *       *       *       *       *

Sec. 523. Authorized strengths: commissioned officers on active duty in 
                    grades of major, lieutenant colonel, and colonel 
                    and Navy grades of lieutenant commander, commander, 
                    and captain

  (a)(1) Except as provided in subsection (c), of the total 
number of commissioned officers serving on active duty in the 
Army, Air Force, or Marine Corps at the end of any fiscal year 
(excluding officers in categories specified in subsection (b)), 
the number of officers who may be serving on active duty in 
each of the grades of major, lieutenant colonel, and colonel 
may not, as of the end of such fiscal year, exceed a number 
determined in accordance with the following table:
      

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on
                                                                           active duty in the grade of:
  Total number of commissioned officers (excluding officers in   -----------------------------------------------
     categories specified in subsection (b)) on active duty:                        Lieutenant
                                                                       Major          Colonel         Colonel
----------------------------------------------------------------------------------------------------------------
Army:
  20,000........................................................           6,848           5,253        1,613
                          *         *         *         *         *         *         *
Air Force:
  35,000........................................................   [9,216] 9,861           7,090        2,125
  40,000........................................................        [10,025]           7,478        2,306
                                                                          10,727
  45,000........................................................        [10,835]           7,866        2,487
                                                                          11,593
  50,000........................................................        [11,645]           8,253        2,668
                                                                          12,460
  55,000........................................................        [12,454]           8,641        2,849
                                                                          13,326
  60,000........................................................        [13,264]           9,029        3,030
                                                                          14,192
  65,000........................................................        [14,073]           9,417        3,211
                                                                          15,058
  70,000........................................................        [14,883]           9,805        3,392
                                                                          15,925
  75,000........................................................        [15,693]          10,193        3,573
                                                                          16,792
  80,000........................................................        [16,502]          10,582        3,754
                                                                          17,657
  85,000........................................................        [17,312]          10,971        3,935
                                                                          18,524
  90,000........................................................        [18,121]          11,360        4,115
                                                                          19,389
  95,000........................................................        [18,931]          11,749        4,296
                                                                          20,256
  100,000.......................................................        [19,741]          12,138        4,477
                                                                          21,123
  105,000.......................................................        [20,550]          12,527        4,658
                                                                          21,989
  110,000.......................................................        [21,360]          12,915        4,838
                                                                          22,855
  115,000.......................................................        [22,169]          13,304        5,019
                                                                          23,721
  120,000.......................................................        [22,979]          13,692        5,200
                                                                          24,588
  125,000.......................................................        [23,789]          14,081        5,381
                                                                          25,454
                          *         *         *         *         *         *         *
----------------------------------------------------------------------------------------------------------------

           *       *       *       *       *       *       *
[Sec. 528. Limitation on number of officers on active duty in grades of 
                    general and admiral

  [(a) Limitation.--The total number of officers on active duty 
in the Army, Air Force, and Marine Corps in the grade of 
general and in the Navy in the grade of admiral may not exceed 
32.
  [(b) Exceptions.--(1) The limitation in subsection (a) does 
not apply in the case of an officer serving in the grade of 
general or admiral in a position that is specifically exempted 
by law from being counted for purposes of limitations by law on 
the total number of officers that may be on active duty in the 
grades of general and admiral or the number of officers that 
may be on active duty in that officer's armed force in the 
grade of general or admiral.
  [(2) An officer continuing to hold the grade of general or 
admiral under section 601(b)(4) of this title after relief from 
the position of Chairman of the Joint Chiefs of Staff, Chief of 
Staff of the Army, Chief of Naval Operations, Chief of Staff of 
the Air Force, or Commandant of the Marine Corps shall not be 
counted for purposes of this section.]

 CHAPTER 33--ORIGINAL APPOINTMENTS OF REGULAR OFFICERS IN GRADES ABOVE 
                         WARRANT OFFICER GRADES

Sec.
531.  Original appointments of commissioned officers.
     * * * * * * *
542.  Distinguished Graduates of officer commissioning programs other 
          than service academies and ROTC.
     * * * * * * *

Sec. 532. Qualifications for original appointment as a commissioned 
                    officer

  (a) * * *

           *       *       *       *       *       *       *

  [(e) After September 30, 1996, no person may receive an 
original appointment as a commissioned officer in the Regular 
Army, Regular Navy, Regular Air Force, or Regular Marine Corps 
until that person has completed one year of service on active 
duty as a commissioned officer (other than a warrant officer) 
of a reserve component.]

           *       *       *       *       *       *       *

Sec. 542. Distinguished Graduates of officer commissioning programs 
                    other than service academies and ROTC

  A person who is selected for an original appointment as a 
commissioned officer in the Army, Navy, Air Force, or Marine 
Corps as a result of satisfactory completion of an officer 
commissioning program other than the course of instruction at 
one of the service academies named in section 541 of this title 
or the Senior Reserve Officers' Training Corps program and who, 
under regulations prescribed by the Secretary of the military 
department concerned, is designated or selected as a 
Distinguished Graduate of that program (or the equivalent) 
shall be appointed as a regular officer.

           *       *       *       *       *       *       *

   CHAPTER 36--PROMOTION, SEPARATION, AND INVOLUNTARY RETIREMENT OF 
OFFICERS ON THE ACTIVE-DUTY LIST

           *       *       *       *       *       *       *

SUBCHAPTER II--PROMOTIONS

           *       *       *       *       *       *       *

Sec. 619. Eligibility for consideration for promotion: time-in-grade 
                    and other requirements

  [(a)(1)] (a) Time-in-Grade Requirements.--(1) An officer who 
is on the active-duty list of the Army, Air Force, or Marine 
Corps and holds a permanent appointment in the grade of second 
lieutenant or first lieutenant or is on the active-duty list of 
the Navy and holds a permanent appointment in the grade of 
ensign or lieutenant (junior grade) may not be promoted to the 
next higher permanent grade until he has completed the 
following period of service in the grade in which he holds a 
permanent appointment:
          (A) * * *
          (B) Two years, in the case of an officer holding a 
        permanent appointment in the grade of first lieutenant 
        or lieutenant (junior grade), or such shorter period as 
        may be in effect under paragraph (6).

           *       *       *       *       *       *       *

  (4) The Secretary of the military department concerned may 
waive paragraph (2) to the extent necessary to assure that 
officers described in [clause (A)] subparagraph (A) of such 
paragraph have at least two opportunities for consideration for 
promotion to the next higher grade as officers below the 
promotion zone.

           *       *       *       *       *       *       *

  (6)(A) When the needs of the service require, the Secretary 
of the military department concerned may reduce to eighteen 
months the period of service in grade applicable for purposes 
of paragraph (1)(B) in the case of officers who are serving in 
a position that is authorized for officers in the grade of 
captain or, in the case of the Navy, lieutenant.
  (B) If the Secretary of the military department concerned 
uses the authority provided in subparagraph (A), the number of 
captains or, in the case of the Navy, lieutenants on the 
active-duty list may not exceed the number of positions for 
which officers in that grade are authorized by more than one 
percent.
  (C) The authority under subparagraph (A) and the limitation 
under subparagraph (B) expire on September 30, 2005.
  [(b)(1)] (b) Continued Eligibility for Consideration for 
Promotion of Officers Who Have Previously Failed of 
Selection.--(1) Except as provided in paragraph (2), an officer 
who has failed of selection for promotion to the next higher 
grade remains eligible for consideration for promotion to that 
grade as long as he continues on active duty in other than a 
retired status and is not promoted.

           *       *       *       *       *       *       *

  [(c)(1)] (c) Officers To Be Considered by Promotion Boards.--
(1) Each time a selection board is convened under section 
611(a) of this title for consideration of officers in a 
competitive category for promotion to the next higher grade, 
each officer in the promotion zone (except as provided under 
paragraph (2)), and each officer above the promotion zone, for 
the grade and competitive category under consideration shall be 
considered for promotion.

           *       *       *       *       *       *       *

  (d) Certain Officers Not To Be Considered.--A selection board 
convened under section 611(a) of this title may not consider 
for promotion to the next higher grade any of the following 
officers:
          (1) * * *

           *       *       *       *       *       *       *

Sec. 619a. Eligibility for consideration for promotion: joint duty 
                    assignment required before promotion to general or 
                    flag grade; exceptions

  (a) General Rule.--An officer on the active-duty list of the 
Army, Navy, Air Force, or Marine Corps may not be appointed to 
the grade of brigadier general or rear admiral (lower half) 
[unless the officer has completed a full tour of duty in a 
joint duty assignment (as described in section 664(f) of this 
title).] unless--
          (1) the officer has completed a full tour of duty in 
        a joint duty assignment (as described in section 664(f) 
        of this title); and
          (2) for appointments after September 30, 2007, the 
        officer has been selected for the joint specialty in 
        accordance with section 661 of this title.
  (b) Exceptions.--Subject to subsection (c), the Secretary of 
Defense [may waive subsection (a) in the following 
circumstances:] may waive paragraph (1) or paragraph (2) of 
subsection (a), or both paragraphs (1) and (2) of subsection 
(a), in the following circumstances (except that paragraph (2) 
of subsection (a) may not be waived by reason of paragraph 
(4)):
          (1) * * *

           *       *       *       *       *       *       *

    SUBCHAPTER IV--CONTINUATION ON ACTIVE DUTY AND SELECTIVE EARLY 
RETIREMENT

           *       *       *       *       *       *       *

Sec. 638a. Modification to rules for continuation on active duty; 
                    enhanced authority for selective early retirement 
                    and early discharges

  (a) The Secretary of Defense may authorize the Secretary of a 
military department, during the period beginning on October 1, 
1990, and ending on December 31, [2001] 2002, to take any of 
the actions set forth in subsection (b) with respect to 
officers of an armed force under the jurisdiction of that 
Secretary.

           *       *       *       *       *       *       *

Sec. 640. Deferment of retirement or separation for medical reasons

  [The Secretary of the military department concerned may defer 
the retirement or separation under this title of any officer if 
the evaluation of the physical condition of the officer and 
determination of the officer's entitlement to retirement or 
separation for physical disability require hospitalization or 
medical observation that cannot be completed before the date on 
which the officer would otherwise be required to retire or be 
separated under this title.]
  (a) If the Secretary of the military department concerned 
determines that the evaluation of the physical condition of an 
officer and determination of the officer's entitlement to 
retirement or separation for physical disability require 
hospitalization or medical observation and that such 
hospitalization or medical observation cannot be completed with 
confidence in a manner consistent with the member's well being 
before the date on which the officer would otherwise be 
required to retire or be separated under this title, the 
Secretary may defer the retirement or separation of the officer 
under this title.
  (b) A deferral of retirement or separation under subsection 
(a) may not extend for more than 30 days after completion of 
the evaluation requiring hospitalization or medical 
observation.

SUBCHAPTER V--ADDITIONAL PROVISIONS RELATING TO PROMOTION, SEPARATION, 
AND RETIREMENT

           *       *       *       *       *       *       *

Sec. 641. Applicability of chapter

  Officers in the following categories are not subject to this 
chapter (other than section 640 and, in the case of warrant 
officers, section 628):
          (1) Reserve officers--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(D) on the reserve active-status list who 
                are on active duty under section 12301(d) of 
                this title, other than as provided in 
                subparagraph (C), under a call or order to 
                active duty specifying a period of three years 
                or less;]
                  (D) on active duty under section 12301(d) of 
                this title, other than as provided under 
                subparagraph (C), if the call or order to 
                active duty, under regulations prescribed by 
                the Secretary concerned, specifies a period of 
                three years or less and continued placement on 
                the reserve active-status list;

           *       *       *       *       *       *       *

CHAPTER 38--JOINT OFFICER MANAGEMENT

           *       *       *       *       *       *       *

Sec. 661. Management policies for joint specialty officers

  (a) * * *
  (b) Numbers and Selection.--(1) * * *
  (2) Officers shall be selected for the joint specialty by the 
Secretary of Defense with the advice of the Chairman of the 
Joint Chiefs of Staff. [The Secretaries of the military 
departments shall nominate officers for selection for the joint 
specialty. Nominations shall be made from among officers--] 
Each officer on the active-duty list on the date of the 
enactment of the National Defense Authorization Act for Fiscal 
Year 2002 who has not before that date been nominated for the 
joint specialty by the Secretary of a military department, and 
each officer who is placed on the active-duty list after such 
date, who meets the requirements of subsection (c) shall 
automatically be considered to have been nominated for the 
joint specialty. From among those officers considered to be 
nominated for the joint specialty, the Secretary may select for 
the joint specialty only officers--
          (A) * * *

           *       *       *       *       *       *       *

Sec. 663. Education

  (a) * * *

           *       *       *       *       *       *       *

  (e) Duration of Principal Course of Instruction at [Armed 
Forces Staff College] Joint Forces Staff College.--(1) The 
duration of the principal course of instruction offered at the 
[Armed Forces Staff College] Joint Forces Staff College may not 
be less than three months.

           *       *       *       *       *       *       *

Sec. 664. Length of joint duty assignments

  (a) * * *

           *       *       *       *       *       *       *

  (i) Joint Duty Credit for Certain Joint Task Force 
Assignments.--(1) * * *

           *       *       *       *       *       *       *

  (4) The Secretary of Defense shall prescribe by regulation 
criteria for determining whether an officer may be granted 
credit under paragraph (1) with respect to service in a 
qualifying temporary joint task force assignment. The criteria 
shall apply uniformly among the armed forces and shall include 
the following requirements:
          (A) * * *

           *       *       *       *       *       *       *

          (E) [The] Except as provided in subparagraph (F), the 
        joint task force must conduct combat or combat-related 
        operations in a unified action under joint or 
        multinational command and control.
          (F) Service in a temporary joint task force 
        assignment not involved in combat or combat-related 
        operations may not be credited for the purposes of 
        joint duty, unless, and only if--
                  (i) the service of the officer and the nature 
                of the joint task force not only meet all 
                criteria of this section, except subparagraph 
                (E), but also any additional criteria the 
                Secretary may establish;
                  (ii) the Secretary has specifically approved 
                the operation conducted by the joint task force 
                as one that qualifies for joint service credit, 
                and notifies Congress upon each approval, 
                providing the criteria that led to that 
                approval; and
                  (iii) the operation is conducted by the joint 
                task force in an environment where an extremely 
                fragile state of peace and high potential for 
                hostilities coexist.

           *       *       *       *       *       *       *

Sec. 667. Annual report to Congress

  The Secretary of Defense shall include in the annual report 
of the Secretary to Congress under section 113(c) of this 
title, for the period covered by the report, the following 
information (which shall be shown for the Department of Defense 
as a whole and separately for the Army, Navy, Air Force, and 
Marine Corps):
          (1)(A) The number of officers selected for the joint 
        specialty and their education and experience.
          (B) The number of officers who meet the criteria for 
        selection for the joint specialty but were not 
        selected, together with the reasons why.
          [(2) The military occupational specialties within 
        each of the armed forces that have been designated as 
        critical occupational specialties under section 
        661(c)(2) of this title, separately identifying those 
        specialties for which there is a severe shortage of 
        trained officers, together with an explanation of how 
        those specialties meet the criteria for that 
        designation in section 661(c)(2)(B) of this title.]
          (2) The number of officers with the joint specialty, 
        shown by grade and branch or specialty and by 
        education.
          (3) The number of officers on the active-duty list 
        with a military occupational specialty designated under 
        section 661(c)(2) of this title as a critical 
        occupational specialty who--
                  (A) have been [nominated] selected for the 
                joint specialty;
                  (B) have been [nominated] selected for the 
                joint specialty and are serving in a joint duty 
                assignment;

           *       *       *       *       *       *       *

                  (D) have completed an appropriate program at 
                a joint professional military education school; 
                and
                  [(E) have been selected for the joint 
                specialty; and]
                  [(F)] (E) have served, or are serving in, a 
                second joint duty assignment after being 
                selected for the joint specialty, with the 
                number of such officers who have served, or are 
                serving, in a critical joint duty assignment 
                shown separately for general and flag officers, 
                and for all other officers.
          (4) For each fiscal year--
                  (A) the number of officers [nominated] 
                selected for the joint specialty and, of those, 
                the number who have a military occupational 
                specialty designated as a critical occupational 
                specialty; and

           *       *       *       *       *       *       *

          (14)(A) An analysis of the extent to which the 
        Secretary of each military department is providing 
        officers to fill that department's share (as determined 
        by law or by the Secretary of Defense) of Joint Staff 
        and other joint duty assignments, including the reason 
        for any significant failure by a military department to 
        fill its share of such positions and a discussion of 
        the actions being taken to correct the shortfall.
          (B) An assessment of the extent to which the 
        Secretary of each military department is assigning 
        personnel to joint duty assignments in accordance with 
        this chapter and the policies, procedures, and 
        practices established by the Secretary of Defense under 
        section 661(a) of this title.

           *       *       *       *       *       *       *

          (16) The number of officers granted credit for 
        service in joint duty assignments under [section 
        664(i)] subparagraphs (E) and (F) of section 664(i)(4) 
        of this title and--
                  (A) * * *
                  (B) the identity of each operation for which 
                an officer has been granted credit pursuant to 
                [section 664(i)] subparagraphs (E) and (F) of 
                section 664(i)(4) of this title and a brief 
                description of the mission of the operation.
          (17) With regard to each time the principal course of 
        instruction at the [Armed Forces Staff College] Joint 
        Forces Staff College is offered--
                  (A) * * *
                  (B) the number of those officers as a 
                percentage of all officers who attended that 
                course of instruction at the [Armed Forces 
                Staff College] Joint Forces Staff College;

           *       *       *       *       *       *       *

CHAPTER 39--ACTIVE DUTY

           *       *       *       *       *       *       *

Sec. 691. Permanent end strength levels to support two major regional 
                    contingencies

  (a) * * *
  (b) Unless otherwise provided by law, the number of members 
of the armed forces (other than the Coast Guard) on active duty 
at the end of any fiscal year shall be not less than the 
following:
          (1) * * *
          (2) For the Navy, [372,000] 376,000.

           *       *       *       *       *       *       *

          (4) For the Air Force, [357,000] 358,800.

           *       *       *       *       *       *       *

CHAPTER 47--UNIFORM CODE OF MILITARY JUSTICE

           *       *       *       *       *       *       *

SUBCHAPTER II--APPREHENSION AND RESTRAINT

           *       *       *       *       *       *       *

Sec. 814. Art. 14. Delivery of offenders to civil authorities

  (a) * * *

           *       *       *       *       *       *       *

  (c) The Secretary of Defense shall ensure that the 
Secretaries of the military departments prescribe regulations 
under subsection (a) and that those regulations are uniform 
throughout the armed forces under the jurisdiction of the 
Secretary of Defense. Those regulations shall--
          (1) specifically provide for the delivery to the 
        appropriate civil authority for trial, in any 
        appropriate case, of a member accused by civil 
        authority of parental kidnapping or a similar offense, 
        including criminal contempt arising from any such 
        offense or from child custody matters; and
          (2) specifically address the special needs for the 
        exercise of the authority contained in this section 
        (article) in a case in which a member of the armed 
        forces assigned overseas is accused of an offense by 
        civil authority.

SUBCHAPTER IV--COURT-MARTIAL JURISDICTION

           *       *       *       *       *       *       *

Sec. 816. Art. 16. Courts-martial classified

  The three kinds of courts-martial in each of the armed forces 
are--
          (1) general courts-martial, consisting of--
                  (A) a military judge and not less than five 
                members or, in a case in which the accused may 
                be sentenced to a penalty of death, the number 
                of members determined under section 825a of 
                this title (article 25a); or

           *       *       *       *       *       *       *

              SUBCHAPTER V--COMPOSITION OF COURTS-MARTIAL

                                  Sec.

Art.

                                  822.

22.

Who may convene general courts-martial.

          * * * * * * *

                                 825a.

25a.

Number of members in capital cases.

          * * * * * * *

Sec. 825a. Art. 25a. Number of members in capital cases

  In a case in which the accused may be sentenced to a penalty 
of death, the number of members shall be not less than 12, 
unless 12 members are not reasonably available because of 
physical conditions or military exigencies, in which case the 
convening authority shall specify a lesser number of members 
not less than five, and the court may be assembled and the 
trial held with not less than the number of members so 
specified. In such a case, the convening authority shall make a 
detailed written statement, to be appended to the record, 
stating why a greater number of members were not reasonably 
available.

           *       *       *       *       *       *       *

Sec. 829. Art. 29. Absent and additional members

  (a) * * *
  (b)(1) Whenever a general court-martial, other than a general 
court-martial composed of a military judge only, is reduced 
below [five members] the applicable minimum number of members, 
the trial may not proceed unless the convening authority 
details new members sufficient in number to provide not less 
than [five members] the applicable minimum number of members. 
The trial may proceed with the new members present after the 
recorded evidence previously introduced before the members of 
the court has been read to the court in the presence of the 
military judge, the accused, and counsel for both sides.
  (2) In this section, the term ``applicable minimum number of 
members'' means five members or, in a case in which the death 
penalty may be adjudged, the number of members determined under 
section 825a of this title (article 25a).

           *       *       *       *       *       *       *

                    SUBCHAPTER VII--TRIAL PROCEDURE

                                 Sec. 

Art. 

                                 836. 

36. 

President may prescribe rules.

          * * * * * * *

                                 852a. 

52a. 

Right of accused to request sentencing by military judge rather than by 
members.

          * * * * * * *

Sec. 852a. Art. 52a. Right of accused to request sentencing by military 
                    judge rather than by members

  (a) In the case of an accused convicted of an offense by a 
court-martial composed of a military judge and members, the 
sentence shall be tried before and adjudged by the military 
judge rather than the members if, after the findings are 
announced and before evidence in the sentencing proceeding is 
introduced, the accused, knowing the identity of the military 
judge and after consultation with defense counsel, requests 
orally on the record or in writing that the sentence be tried 
before and adjudged by the military judge rather than the 
members.
  (b) This section shall not apply with respect to an offense 
for which the death penalty may be adjudged unless the case has 
been previously referred to trial as a noncapital case.

           *       *       *       *       *       *       *

SUBCHAPTER IX--POST-TRIAL PROCEDURE AND REVIEW OF COURTS-MARTIAL

           *       *       *       *       *       *       *

Sec. 874. Art. 74. Remission and suspension

  (a) The Secretary concerned and, when designated by him, any 
Under Secretary, Assistant Secretary, Judge Advocate General, 
or commanding officer may remit or suspend any part or amount 
of the unexecuted part of any sentence, including all 
uncollected forfeitures other than a sentence approved by the 
President. However, in the case of a sentence of confinement 
for life without eligibility for parole that is adjudged for an 
offense committed after October 29, 2000, after the sentence is 
ordered executed, the authority of the Secretary concerned 
under the preceding sentence (1) may not be delegated, and (2) 
may be exercised only after the service of a period of 
confinement of not less than 20 years.

           *       *       *       *       *       *       *

CHAPTER 49--MISCELLANEOUS PROHIBITIONS AND PENALTIES

           *       *       *       *       *       *       *

Sec. 980. Limitation on use of humans as experimental subjects

  (a) Funds appropriated to the Department of Defense may not 
be used for research involving a human being as an experimental 
subject unless--
          (1) * * *

           *       *       *       *       *       *       *

  (b) The Secretary of Defense may waive the prohibition in 
this section with respect to a specific research project to 
advance the development of a medical product necessary to the 
armed forces if the research project is carried out in 
accordance with all other applicable laws.

           *       *       *       *       *       *       *

Sec. 986. Security clearances: limitations

  (a) Prohibition.--After [the date of the enactment of this 
section,] October 30, 2000, the Department of Defense may not 
grant or renew a security clearance for a person to whom this 
section applies who is described in subsection (c).

           *       *       *       *       *       *       *

CHAPTER 50--MISCELLANEOUS COMMAND RESPONSIBILITIES

           *       *       *       *       *       *       *

Sec. 991. Management of deployments of members

  (a) * * *
  (b) Deployment Defined.--(1) For the purposes of this 
section, a member of the armed forces shall be considered to be 
deployed or in a deployment on any day on which, pursuant to 
orders, the member is performing active service in a training 
exercise or operation at a location or under circumstances that 
make it impossible or infeasible for the member to spend off-
duty time in the housing in which the member resides when on 
garrison duty at the member's permanent duty station or 
homeport, as the case may be. For the purpose of applying the 
preceding sentence to a member of a reserve component 
performing active service, the housing in which the member 
resides when on garrison duty at the member's permanent duty 
station or homeport, as the case may be, shall be considered to 
be either the housing the member normally occupies when on 
garrison duty or the member's permanent civilian residence.
  [(2) In the case of a member of a reserve component 
performing active service, the member shall be considered 
deployed or in a deployment for the purposes of paragraph (1) 
on any day on which, pursuant to orders that do not establish a 
permanent change of station, the member is performing the 
active service at a location that--
          [(A) is not the member's permanent training site; and
          [(B) is--
                  [(i) at least 100 miles from the member's 
                permanent residence; or
                  [(ii) a lesser distance from the member's 
                permanent residence that, under the 
                circumstances applicable to the member's 
                travel, is a distance that requires at least 
                three hours of travel to traverse.]
  [(3)] (2) For the purposes of this section, a member is not 
deployed or in a deployment when the member is--
          (A) * * *

           *       *       *       *       *       *       *

  [(4)] (3) The Secretary of Defense may prescribe a definition 
of deployment for the purposes of this section other than the 
definition specified [in paragraphs (1) and (2)] in paragraph 
(1). Any such definition may not take effect until 90 days 
after the date on which the Secretary notifies the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives of the revised 
standard definition of deployment.

           *       *       *       *       *       *       *

CHAPTER 53--MISCELLANEOUS RIGHTS AND BENEFITS

           *       *       *       *       *       *       *

Sec. 1044a. Authority to act as notary

  (a) * * *
  (b) Persons with the powers described in subsection (a) are 
the following:
          (1) * * *
          (2) All civilian attorneys serving as [legal 
        assistance officers] legal assistance attorneys.

           *       *       *       *       *       *       *

          (4) All other members of the armed forces, including 
        reserve members when not in a duty status, and, when 
        outside the United States, all civilian employees of 
        the Department of Defense, who are designated by 
        regulations of the armed forces or the Department of 
        Defense or by statute to have those powers.

           *       *       *       *       *       *       *

Sec. 1056. Relocation assistance programs

  (a) * * *

           *       *       *       *       *       *       *

  (c) Military Relocation Assistance Programs.--(1) * * *
  (2) The Secretary shall ensure that[, not later than 
September 30, 1991,] information available through each 
military relocation assistance program shall be managed through 
a computerized information system that can interact with all 
other military relocation assistance programs of the military 
departments, including programs located outside the continental 
United States.

           *       *       *       *       *       *       *

              CHAPTER 54--COMMISSARY AND EXCHANGE BENEFITS

Sec.
1061.  Survivors of certain Reserve and Guard members.
     * * * * * * *
[1063.  Use of commissary stores: members of Ready Reserve with at least 
          50 creditable points.]
1063.  Use of commissary stores: members of Ready Reserve.
     * * * * * * *

[Sec. 1063. Use of commissary stores: members of Ready Reserve with at 
                    least 50 creditable points

  [(a) Eligibility of Members of Ready Reserve.--A member of 
the Ready Reserve who satisfactorily completes 50 or more 
points creditable under section 12732(a)(2) of this title in a 
calendar year shall be eligible to use commissary stores of the 
Department of Defense. The Secretary concerned shall authorize 
the member to have 24 days of eligibility for any calendar year 
that the member qualifies for eligibility under this 
subsection.]

Sec. 1063. Use of commissary stores: members of Ready Reserve

  (a) Eligibility.--Subject to subsection (c), the Secretary 
concerned shall authorize members of the Ready Reserve 
described in subsection (b) to have 24 days of eligibility to 
use commissary stores of the Department of Defense for any 
calendar year.
  (b) Covered Members.--Subsection (a) applies with respect to 
the following members of the Ready Reserve:
          (1) A member of the Selected Reserve who is 
        satisfactorily participating in required training as 
        prescribed in section 10147(a)(1) of this title or 
        section 502(a) of title 32 in that calendar year.
          (2) A member of the Ready Reserve (other than a 
        member described in paragraph (1)) who satisfactorily 
        completes 50 or more points credible under section 
        12732(a)(2) of this title in that calendar year.
  (c) Reduced Number of Commissary Visits for New Members.--The 
number of commissary visits authorized for a member of the 
Selected Reserve described in subsection (b)(1) who enters the 
Selected Reserve after the beginning of the calendar year shall 
be equal to twice the number of full months remaining in the 
calendar year.
  [(b)] (d) Effect of Compensation or Type of Duty.--Subsection 
(a) shall apply without regard to whether, during the calendar 
year, the member receives compensation for the duty or training 
performed by the member or performs active duty for training.
  [(c)] (e) Regulations.--The Secretary concerned shall 
prescribe regulations, subject to the approval of the Secretary 
of Defense, to carry out this section.

           *       *       *       *       *       *       *

                  CHAPTER 55--MEDICAL AND DENTAL CARE

Sec.

1071.  Purpose of this chapter.
     * * * * * * *
1074j.  Sub-acute care program.
1074k.  Long-term care insurance.
     * * * * * * *

Sec. 1072. Definitions

  In this chapter:
          (1) * * *

           *       *       *       *       *       *       *

          (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.
          (8) The term ``custodial care'' means treatment or 
        services, regardless of who recommends such treatment 
        or services or where such treatment or services are 
        provided, that--
                  (A) can be rendered safely and reasonably by 
                a person who is not medically skilled; or
                  (B) is or are designed mainly to help the 
                patient with the activities of daily living.
          (9) The term ``domiciliary care'' means care provided 
        to a patient in an institution or homelike environment 
        because--
                  (A) providing support for the activities of 
                daily living in the home is not available or is 
                unsuitable; or
                  (B) members of the patient's family are 
                unwilling to provide the care.

           *       *       *       *       *       *       *

Sec. 1074a. Medical and dental care: members on duty other than active 
                    duty for a period of more than 30 days

  (a) Under joint regulations prescribed by the administering 
Secretaries, the following persons are entitled to the benefits 
described in subsection (b):
          (1) * * *

           *       *       *       *       *       *       *

          (3) Each member of the armed forces who incurs or 
        aggravates an injury, illness, or disease in the line 
        of duty 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 from the member's 
        residence].

           *       *       *       *       *       *       *

Sec. 1074g. Pharmacy benefits program

  (a) Pharmacy Benefits.--(1) * * *

           *       *       *       *       *       *       *

  (8) In carrying out this subsection, the Secretary shall 
ensure that an eligible covered beneficiary may continue to 
receive coverage for any maintenance pharmaceutical that is not 
on the uniform formulary and that was prescribed for the 
beneficiary before [the date of the enactment of this section] 
October 5, 1999, and stabilized the medical condition of the 
beneficiary.

           *       *       *       *       *       *       *

Sec. 1074i. Reimbursement for certain travel expenses

  In any case in which a covered beneficiary is referred by a 
primary care physician to a specialty care provider who 
provides services more than 100 miles from the location in 
which the primary care provider provides services to the 
covered beneficiary, the Secretary shall provide reimbursement 
for reasonable travel expenses for the covered beneficiary. In 
any case in which reimbursement of travel expenses of a covered 
beneficiary who is a minor and dependent is required under this 
section, the Secretary also shall provide reimbursement for 
reasonable travel expenses of the parent or guardian of, or the 
family member responsible for, such covered beneficiary.

Sec. 1074j. Sub-acute care program

  (a) Establishment.--The Secretary of Defense shall establish 
an effective, efficient, and integrated sub-acute care benefits 
program under this chapter (hereinafter referred to in this 
section as the ``program''). Except as otherwise provided in 
this section, the types of health care authorized under the 
program shall be the same as those provided under section 1079 
of this title. The Secretary, after consultation with the other 
administering Secretaries, shall promulgate regulations to 
carry out this section.
  (b) Benefits.--(1) The program shall include a uniform 
skilled nursing facility benefit that shall be provided in the 
manner and under the conditions described in section 1861(h) 
and (i) of the Social Security Act (42 U.S.C. 1395x(h) and 
(i)), except that the limitation on the number of days of 
coverage under section 1812(a) and (b) of such Act (42 U.S.C. 
1395d(a) and (b)) shall not be applicable under the program. 
Skilled nursing facility care for each spell of illness shall 
continue to be provided for as long as medically necessary and 
appropriate.
  (2) In this subsection:
          (A) The term ``skilled nursing facility'' has the 
        meaning given such term in section 1819(a) of the 
        Social Security Act (42 U.S.C. 1395i-3(a)).
          (B) The term ``spell of illness'' has the meaning 
        given such term in section 1861(a) of such Act (42 
        U.S.C. 1395x(a)).
  (3) The program shall include a comprehensive, intermittent 
home health care benefit that shall be provided in the manner 
and under the conditions described in section 1861(m) of the 
Social Security Act (42 U.S.C. 1395x(m)).

Sec. 1074k. Long-term care insurance

  Provisions regarding long-term care insurance for members and 
certain former members of the uniformed services and their 
families are set forth in chapter 90 of title 5.

           *       *       *       *       *       *       *

Sec. 1076. Medical and dental care for dependents: general rule

  (a)(1) * * *
  (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) * * *

           *       *       *       *       *       *       *

          (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].

           *       *       *       *       *       *       *

Sec. 1079. Contracts for medical care for spouses and children: plans

  (a) To assure that medical care is available for dependents, 
as described in subparagraphs (A), (D), and (I) of section 
1072(2) of this title, of members of the uniformed services who 
are on active duty for a period of more than 30 days, the 
Secretary of Defense, after consulting with the other 
administering Secretaries, shall contract, under the authority 
of this section, for medical care for those persons under such 
insurance, medical service, or health plans as he considers 
appropriate. The types of health care authorized under this 
section shall be the same as those provided under section 1076 
of this title, except as follows:
          (1) * * *

           *       *       *       *       *       *       *

          [(17)(A) The Secretary of Defense may establish a 
        program for the individual case management of a person 
        covered by this section or section 1086 of this title 
        who has extraordinary medical or psychological 
        disorders and, under such a program, may waive benefit 
        limitations contained in paragraphs (5) and (13) of 
        this subsection or section 1077(b)(1) of this title and 
        authorize the payment for comprehensive home health 
        care services, supplies, and equipment if the Secretary 
        determines that such a waiver is cost-effective and 
        appropriate.
          [(B) The total amount expended under subparagraph (A) 
        for a fiscal year may not exceed $100,000,000.]

           *       *       *       *       *       *       *

  [(d) Under joint regulations to be prescribed by the 
administering Secretaries, in the case of a dependent, as 
described in subparagraph (A), (D), or (I) of section 1072(2) 
of this title, of a member of the uniformed services on active 
duty for a period of more than 30 days, who is moderately or 
severely mentally retarded or who has a serious physical 
handicap, the plans covered by subsection (a) shall, with 
respect to the retardation or handicap of such dependent, 
include the following:
          [(1) Diagnosis.
          [(2) Inpatient, outpatient, and home treatment.
          [(3) Training, rehabilitation, and special education.
          [(4) Institutional care in private nonprofit, public 
        and State institutions and facilities and, when 
        appropriate, transportation to and from such 
        institutions and facilities.
  [(e) Members shall be required to share in the cost of any 
benefits provided their dependents under subsection (d) as 
follows:
          [(1) Except as provided in clause (3), members in the 
        lowest enlisted pay grade shall be required to pay the 
        first $25 incurred each month and members in the 
        highest commissioned pay grade shall similarly be 
        required to pay $250 per month. The amounts to be 
        similarly paid by members in all other pay grades shall 
        be determined under joint regulations to be prescribed 
        by the administering Secretaries.
          [(2) Except as provided in clause (4), the 
        Government's share of the cost of any benefits provided 
        in a particular case under subsection (d) shall not 
        exceed $1,000 per month.
          [(3) Members shall also be required to pay each month 
        that amount, if any, remaining after the Government's 
        maximum share has been reached.
          [(4) A member who has more than one dependent 
        incurring expenses in a given month under a plan 
        covered by subsection (d) shall not be required to pay 
        an amount greater than he would be required to pay if 
        he had but one such dependent.
  [(f) To qualify for the benefits provided by subsection (d), 
members shall be required to use public facilities to the 
extent they are available and adequate as determined under 
joint regulations of the administering Secretaries.]
  (d)(1) The Secretary of Defense shall establish a program to 
provide extended benefits for eligible dependents, which may 
include the provision of comprehensive health care services, 
including case management services, to assist in the reduction 
of the disabling effects of a qualifying condition of an 
eligible dependent. Registration shall be required to receive 
the extended benefits.
  (2) The Secretary of Defense, after consultation with the 
other administering Secretaries, shall promulgate regulations 
to carry out this subsection.
  (3) In this subsection:
          (A) The term ``eligible dependent'' means a dependent 
        of a member of the uniformed services on active duty 
        for a period of more than 30 days, as described in 
        subparagraph (A), (D), or (I) of section 1072(2) of 
        this title, who has a qualifying condition.
          (B) The term ``qualifying condition'' means the 
        condition of a dependent who is moderately or severely 
        mentally retarded, has a serious physical disability, 
        or has an extraordinary physical or psychological 
        condition.
  (e) Extended benefits for eligible dependents under 
subsection (d) may include comprehensive health care services 
with respect to the qualifying condition of such a dependent, 
and include, to the extent such benefits are not provided under 
provisions of this chapter other than under this section, the 
following:
          (1) Diagnosis.
          (2) Inpatient, outpatient, and comprehensive home 
        health care supplies and services.
          (3) Training, rehabilitation, and special education.
          (4) Institutional care in private nonprofit, public, 
        and State institutions and facilities and, if 
        appropriate, transportation to and from such 
        institutions and facilities.
          (5) Custodial care, notwithstanding the prohibition 
        in section 1077(b)(1) of this title.
          (6) Respite care for the primary caregiver of the 
        eligible dependent.
          (7) Such other services and supplies as determined 
        appropriate by the Secretary, notwithstanding the 
        limitations in subsection (a)(13).
  (f) Members shall be required to share in the cost of any 
benefits provided to their dependents under subsection (d) as 
follows:
          (1) Members in the lowest enlisted pay grade shall be 
        required to pay the first $25 incurred each month, and 
        members in the highest commissioned pay grade shall be 
        required to pay the first $250 incurred each month. The 
        amounts to be paid by members in all other pay grades 
        shall be determined under regulations to be prescribed 
        by the Secretary of Defense in consultation with the 
        administering Secretaries.
          (2) A member who has more than one dependent 
        incurring expenses in a given month under a plan 
        covered by subsection (d) shall not be required to pay 
        an amount greater than would be required if the member 
        had only one such dependent.

           *       *       *       *       *       *       *

  (h)(1) * * *
  (2) The Secretary of Defense, in consultation with the other 
administering Secretaries, shall prescribe regulations to 
provide for such exceptions to the payment limitations under 
paragraph (1) as the Secretary determines to be necessary to 
assure that covered beneficiaries retain adequate access to 
health care services. Such exceptions may include the payment 
of amounts higher than the amount allowed under paragraph (1) 
when enrollees in managed care programs obtain covered services 
from nonparticipating providers. To provide a suitable 
transition from the payment methodologies in effect before [the 
date of the enactment of this paragraph] February 10, 1996, to 
the methodology required by paragraph (1), the amount allowable 
for any service may not be reduced by more than 15 percent 
below the amount allowed for the same service during the 
immediately preceding 12-month period (or other period as 
established by the Secretary of Defense).

           *       *       *       *       *       *       *

Sec. 1095c. TRICARE program: facilitation of processing of claims

  (a) * * *
  (b) Requirement to Provide Start-Up Time For Certain 
Contractors.--(1) [The] Except as provided in paragraph (3), 
the Secretary of Defense shall not require that a contractor 
described in paragraph (2) begin to provide managed care 
support pursuant to a contract to provide such support under 
the TRICARE program until at least nine months after the date 
of the award of the [contract. In such case the contractor may 
begin to provide managed care support pursuant to the contract 
as soon as practicable after the award of the] contract, but in 
no case later than one year after the date of such award.

           *       *       *       *       *       *       *

  (3) The Secretary may reduce the nine-month start-up period 
required under paragraph (1) if--
          (A) the Secretary--
                  (i) determines that a shorter period is 
                sufficient to ensure effective implementation 
                of all contract requirements; and
                  (ii) submits notification to the Committees 
                on Armed Services of the House of 
                Representatives and the Senate of the 
                Secretary's intent to reduce the nine-month 
                start-up period; and
          (B) 60 days have elapsed since the date of such 
        notification.

           *       *       *       *       *       *       *

Sec. 1097a. TRICARE Prime: automatic enrollments; payment options

  (a) * * *

           *       *       *       *       *       *       *

  (e) No Copayment for Immediate Family.--No copayment shall be 
charged a member for care provided under TRICARE Prime to a 
dependent of a member of the uniformed services described in 
subparagraph (A), (D), or (I) of section [1072] 1072(2) of this 
title.

           *       *       *       *       *       *       *

CHAPTER 56--DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
                                  FUND

Sec.
[1111.  Establishment and purpose of Fund; definitions.]
1111.  Establishment and purpose of Fund; definitions; authority to 
          enter into agreements.
     * * * * * * *

[Sec. 1111. Establishment and purpose of Fund; definitions]

Sec. 1111. Establishment and purpose of Fund; definitions; authority to 
                    enter into agreements

  (a) There is established on the books of the Treasury a fund 
to be known as the Department of Defense Medicare-Eligible 
Retiree Health Care Fund ([hereafter] hereinafter in this 
chapter referred to as the ``Fund''), which shall be 
administered by the Secretary of the Treasury. The Fund shall 
be used for the accumulation of funds in order to finance on an 
actuarially sound basis liabilities of the Department of 
Defense under designated Department of Defense retiree health 
care programs for medicare-eligible beneficiaries.
  [(b) In this chapter:
          [(1) The term ``Department of Defense retiree health 
        care programs for medicare-eligible beneficiaries'' 
        means the provisions of this title or any other 
        provision of law creating entitlement to health care 
        for a medicare-eligible member or former member of the 
        uniformed services entitled to retired or retainer pay, 
        or a medicare-eligible dependent of a member or former 
        member of the uniformed services entitled to retired or 
        retainer pay.
          [(2) The term ``medicare-eligible'' means entitled to 
        benefits under part A of title XVIII of the Social 
        Security Act (42 U.S.C. 1395c et seq.).
          [(3) The term ``dependent'' means a dependent (as 
        such term is defined in section 1072 of this title) 
        described in section 1076(b)(1) of this title.]
  (b) In this chapter:
          (1) The term ``Department of Defense retiree health 
        care programs'' means the provisions of this title or 
        any other provision of law creating an entitlement to 
        or eligibility for health care under a Department of 
        Defense or uniformed services program for a member or 
        former member of a participating uniformed service who 
        is entitled to retired or retainer pay, and an eligible 
        dependent under such program.
          (2) The term ``designated Department of Defense 
        health care program'' means a program described in 
        paragraph (1) of this subsection that is designated 
        under section 1113(c).
          (3) The term ``eligible dependent'' means a dependent 
        (as such term is defined in section 1072(2)) described 
        in section 1076(a)(2) (other than a dependent of a 
        member on active duty), 1076(b), 1086(c)(2), or 
        1086(c)(3)).
          (4) The term ``medicare-eligible'', with respect to 
        any person, means entitled to benefits under part A of 
        title XVIII of the Social Security Act (42 U.S.C. 1395c 
        et seq.).
          (5) The term ``participating uniformed service'' 
        means the Army, Navy, Air Force, and Marine Corps, and 
        any other uniformed service that is covered by an 
        agreement entered into under subsection (c).
  (c) The Secretary of Defense may enter into an agreement with 
any other administering Secretary for participation in the Fund 
by a uniformed service under the jurisdiction of that 
Secretary. Any such agreement shall require that Secretary to 
make contributions to the Fund on behalf of the members of the 
uniformed service under the jurisdiction of that Secretary 
comparable to the contributions to the Fund made by the 
Secretary of Defense under section 1116.

Sec. 1112. Assets of Fund

  There shall be deposited into the Fund the following, which 
shall constitute the assets of the Fund:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Amounts paid into the Fund pursuant to section 
        1111(c).

Sec. 1113. Payments from the Fund

  [(a) There shall be paid from the Fund amounts payable for 
Department of Defense retiree health care programs for 
medicare-eligible beneficiaries.]
  (a) There shall be paid from the Fund amounts payable for the 
costs of designated Department of Defense retiree health care 
programs for the benefit of members or former members of a 
participating uniformed service who are entitled to retired or 
retainer pay and are medicare-eligible, and eligible dependents 
described in section 1111(b)(3) who are medicare-eligible.

           *       *       *       *       *       *       *

  (c) For purposes of payments from the Fund under subsection 
(a), the Secretary of Defense shall designate the program 
authorized by section 1086 of this title.

Sec. 1114. Board of Actuaries

  (a)(1) There is established in the Department of Defense a 
Department of Defense Medicare-Eligible Retiree Health Care 
Board of Actuaries ([hereafter] hereinafter in this chapter 
referred to as the ``Board''). The Board shall consist of three 
members who shall be appointed by the Secretary of Defense from 
among qualified professional actuaries who are members of the 
Society of Actuaries.

           *       *       *       *       *       *       *

Sec. 1115. Determination of contributions to the Fund

  (a) The Board shall determine the amount that is the present 
value (as of October 1, 2002) of future benefits payable from 
the Fund that are attributable to service in the participating 
uniformed services performed before October 1, 2002. That 
amount is the original unfunded liability of the Fund. The 
Board shall determine the period of time over which the 
original unfunded liability should be liquidated and shall 
determine an amortization schedule for the liquidation of such 
liability over that period. Contributions to the Fund for the 
liquidation of the original unfunded liability in accordance 
with such schedule shall be made as provided in section 1116(b) 
of this title.
  (b)(1) The Secretary of Defense shall determine each year, in 
sufficient time for inclusion in budget requests for the 
following fiscal year, the total amount of Department of 
Defense contributions to be made to the Fund during that fiscal 
year under section 1116(a) of this title. That amount shall be 
the sum of the following:
          (A) The product of--
                  (i) * * *
                  (ii) the expected average force strength 
                during that fiscal year for members of the 
                uniformed services under the jurisdiction of 
                the Secretary of Defense on active duty (other 
                than active duty for training) and full-time 
                National Guard duty (other than full-time 
                National Guard duty for training only).
          (B) The product of--
                  (i) * * *
                  (ii) the expected average force strength 
                during that fiscal year for members of the 
                Ready Reserve of the uniformed services under 
                the jurisdiction of the Secretary of Defense 
                (other than members on full-time National Guard 
                duty other than for training) who are not 
                otherwise described in subparagraph (A)(ii).

           *       *       *       *       *       *       *

Sec. 1116. Payments into the Fund

  (a) The Secretary of Defense shall pay into the Fund at the 
end of each month as the Department of Defense contribution to 
the Fund for that month the amount that is the sum of the 
following:
          (1) The product of--
                  (A) * * *
                  (B) the total end strength for that month for 
                members of the uniformed services under the 
                jurisdiction of the Secretary of Defense on 
                active duty (other than active duty for 
                training) and full-time National Guard duty 
                (other than full-time National Guard duty for 
                training only).
          (2) The product of--
                  (A) * * *
                  (B) the total end strength for that month for 
                members of the Ready Reserve of the uniformed 
                services under the jurisdiction of the 
                Secretary of Defense other than members on 
                full-time National Guard duty (other than for 
                training) who are not otherwise described in 
                paragraph (1)(B). Amounts paid into the Fund 
                under this subsection shall be paid from funds 
                available for the Defense Health Program.
  (b)(1) * * *
  (2) At the beginning of each fiscal year the Secretary of 
Defense shall determine the sum of the following:
          (A) * * *

           *       *       *       *       *       *       *

          (D) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        [111(c)(4)] 1115(c)(4) of this title for the 
        amortization of any cumulative actuarial gain or loss 
        to the Fund resulting from actuarial experience.

           *       *       *       *       *       *       *

                   CHAPTER 57--DECORATIONS AND AWARDS

Sec.
1121.  Legion of Merit: award.
     * * * * * * *
1134.  Cold War service medal.
     * * * * * * *

Sec. 1134. Cold War service medal

  (a) Medal Authorized.--The Secretary concerned shall, upon 
application, issue the Cold War service medal to a person 
eligible to receive that medal. The Cold War service medal 
shall be of an appropriate design approved by the Secretary of 
Defense, with ribbons, lapel pins, and other appurtenances.
  (b) Eligibility.--(1) A person is eligible to receive the 
Cold War service medal if the person--
          (A) served on active duty during the Cold War;
          (B) has not been released from active duty with a 
        characterization of service less favorable than 
        honorable and has not received a discharge less 
        favorable than an honorable discharge; and
          (C) except as provided under paragraph (3), meets the 
        service requirements of paragraph (2).
  (2) The service requirements of this paragraph are--
          (A) in the case of a person who served on active duty 
        during the Cold War as an enlisted member, that the 
        person have completed that person's initial term of 
        enlistment and after the end of that initial term of 
        enlistment have reenlisted for an additional term of 
        enlistment or have been appointed as an officer; and
          (B) in the case of a person who served on active duty 
        during the Cold War as an officer, that the person have 
        completed that person's initial service obligation as 
        an officer and have served in the armed forces after 
        completing that initial service obligation.
  (3) The Secretary concerned, under regulations prescribed 
under this section, may waive the service requirements of 
paragraph (2)--
          (A) in the case of any person discharged or released 
        from active duty for a disability incurred or 
        aggravated in line of duty;
          (B) in the case of any person discharged for hardship 
        under section 1173 of this title; and
          (C) under any other circumstance for which the 
        Secretary determines that such a waiver is warranted.
  (c) One Award Authorized.--Not more than one Cold War service 
medal may be issued to any person.
  (d) Issuance to Representative of Deceased.--If a person who 
is eligible for the Cold War service medal dies before being 
issued that medal, the medal may, upon application, be issued 
to the person's representative, as designated by the Secretary 
concerned.
  (e) Replacement.--Under regulations prescribed by the 
Secretary concerned, a Cold War service medal that is lost, 
destroyed, or rendered unfit for use without fault or neglect 
on the part of the person to whom it was issued may be replaced 
without charge.
  (f) Uniform Regulations.--The Secretary of Defense shall 
ensure that regulations prescribed by the Secretaries of the 
military departments under this section are uniform so far as 
is practicable.
  (g) Cold War Defined.--In this section, the term ``Cold War'' 
means the period beginning on September 2, 1945, and ending at 
the end of December 26, 1991.

   CHAPTER 58--BENEFITS AND SERVICES FOR MEMBERS BEING SEPARATED OR 
RECENTLY SEPARATED

           *       *       *       *       *       *       *

Sec. 1144. Employment assistance, job training assistance, and other 
                    transitional services: Department of Labor

  (a) In General.--(1) * * *

           *       *       *       *       *       *       *

  (3) The Secretaries referred to in paragraph (1) shall enter 
into a detailed agreement to carry out this section. [The 
agreement shall be entered into no later than 60 days after the 
date of the enactment of this section.]

           *       *       *       *       *       *       *

  [(e) Funding.--(1) There is authorized to be appropriated to 
the Department of Labor to carry out this section $11,000,000 
for fiscal year 1993 and $8,000,000 for each of fiscal years 
1994 and 1995.
  [(2) There is authorized to be appropriated to the Department 
of Veterans Affairs to carry out this section $6,500,000 for 
each of fiscal years 1993, 1994, and 1995.]

Sec. 1145. Health benefits

  (a) Transitional Health Care.--(1) For the applicable time 
period described in paragraph (2), a member of the armed forces 
who is involuntarily separated from active duty during the 
period beginning on October 1, 1990, and ending on December 31, 
[2001] 2002 (and the dependents of the member), shall be 
entitled to receive--
          (A) * * *

           *       *       *       *       *       *       *

  (c) Health Care For Certain Separated Members Not Otherwise 
Eligible.--(1) Consistent with the authority of the Secretary 
concerned to designate certain classes of persons as eligible 
to receive health care at a military medical facility, the 
Secretary concerned should consider authorizing, on an 
individual basis in cases of hardship, the provision of that 
care for a member who is separated from the armed forces during 
the period beginning on October 1, 1990, and ending on December 
31, [2001] 2002, and is ineligible for transitional health care 
under subsection (a) or does not obtain a conversion health 
policy (or a dependent of the member).

           *       *       *       *       *       *       *

  (e) Coast Guard.--The provisions of this section shall apply 
to members of the Coast Guard (and their dependents) 
involuntarily separated from active duty during the period 
beginning on October 1, 1994, and ending on December 31, [2001] 
2002. The Secretary of Transportation shall implement this 
section for the Coast Guard.

Sec. 1146. Commissary and exchange benefits

  The Secretary of Defense shall prescribe regulations to allow 
a member of the armed forces who is involuntarily separated 
from active duty during the period beginning on October 1, 
1990, and ending on December 31, [2001] 2002, to continue to 
use commissary and exchange stores during the two-year period 
beginning on the date of the involuntary separation of the 
member in the same manner as a member on active duty. The 
Secretary of Transportation shall implement this provision for 
Coast Guard members involuntarily separated during the period 
beginning on October 1, 1994, and ending on December 31, [2001] 
2002.

Sec. 1147. Use of military family housing

  (a) Transition for Involuntarily Separated Members.--(1) The 
Secretary of a military department may, pursuant to regulations 
prescribed by the Secretary of Defense, permit individuals who 
are involuntarily separated during the period beginning on 
October 1, 1990, and ending on December 31, [2001] 2002, to 
continue for not more than 180 days after the date of such 
separation to reside (along with other members of the 
individual's household) in military family housing provided or 
leased by the Department of Defense to such individual as a 
member of the armed forces.
  (2) The Secretary of Transportation may prescribe regulations 
to permit members of the Coast Guard who are involuntarily 
separated during the period beginning on October 1, 1994, and 
ending on December 31, [2001] 2002, to continue for not more 
than 180 days after the date of such separation to reside 
(along with others of the member's household) in military 
family housing provided or leased by the Coast Guard to the 
individual as a member of the armed forces.

           *       *       *       *       *       *       *

Sec. 1150. Affiliation with Guard and Reserve units: waiver of certain 
                    limitations

  (a) Preference for Certain Persons.--A person who is 
separated from the armed forces during the period beginning on 
October 1, 1990, and ending on December 31, [2001] 2002, and 
who applies to become a member of a National Guard or Reserve 
unit within one year after the date of such separation shall be 
given preference over other equally qualified applicants for 
existing or projected vacancies within the unit to which the 
member applies.

           *       *       *       *       *       *       *

CHAPTER 59--SEPARATION

           *       *       *       *       *       *       *

Sec. 1174a. Special separation benefits programs

  (a) * * *

           *       *       *       *       *       *       *

  (h) Termination of Program.--(1) Except as provided in 
paragraph (2), the Secretary concerned may not conduct a 
program pursuant to this section after December 31, [2001] 
2002.

           *       *       *       *       *       *       *

Sec. 1175. Voluntary separation incentive

  (a) * * *

           *       *       *       *       *       *       *

  (d)(1) * * *

           *       *       *       *       *       *       *

  (3) After December 31, [2001] 2002, the Secretary may not 
approve a request.

           *       *       *       *       *       *       *

CHAPTER 61--RETIREMENT OR SEPARATION FOR PHYSICAL DISABILITY

           *       *       *       *       *       *       *

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

  Upon a determination by the Secretary concerned that a member 
of the armed forces not covered by section 1201, 1202, or 1203 
of this title is unfit to perform the duties of his office, 
grade, rank, or rating because of physical disability, the 
Secretary may retire the member with retired pay computed under 
section 1401 of this title, if the Secretary also determines 
that--
          (1) * * *
          (2) the disability--
                  (A) * * *
                  (B) is a result of an injury, illness, or 
                disease incurred or aggravated in line of duty 
                after September 23, 1996--
                          (i) * * *

           *       *       *       *       *       *       *

                          (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]; or

           *       *       *       *       *       *       *

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

  Upon a determination by the Secretary concerned that a member 
of the armed forces not covered by section 1201, 1202, or 1203 
of this title is unfit to perform the duties of his office, 
grade, rank, or rating because of physical disability, the 
member may be separated from his armed force, with severance 
pay computed under section 1212 of this title, if the Secretary 
also determines that--
          (1) * * *
          (2) the disability is a result of an injury, illness, 
        or disease incurred or aggravated in line of duty--
                  (A) * * *
                  (B) while the member--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) remained overnight at or in the 
                        vicinity of that place immediately 
                        before so serving[, if the place is 
                        outside reasonable commuting distance 
                        from the member's residence];

           *       *       *       *       *       *       *

          (5) the disability is less than 30 percent under the 
        standard schedule of rating disabilities in use by the 
        Department of Veterans Affairs at the time of the 
        determination, and, in the case of a disability 
        incurred before [the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 
        2000,] October 5, 1999, was the proximate result of 
        performing active duty or inactive-duty training or of 
        traveling directly to or from the place at which such 
        duty is performed.

           *       *       *       *       *       *       *

Sec. 1212. Disability severance pay

  (a) Upon separation from his armed force under section 1203 
or 1206 of this title, a member is entitled to disability 
severance pay computed by multiplying (1) his years of service, 
but not more than 12, computed under section 1208 of this 
title, by (2) the highest of the following amounts:
          (A) * * *

           *       *       *       *       *       *       *

          (C) Twice the amount of monthly basic pay to which he 
        would be entitled if serving (i) on active duty on the 
        date when his name was placed on the temporary 
        disability retired list or, if his name was not carried 
        on that list, on the date when he is separated, and 
        (ii) in the permanent regular or reserve grade to which 
        he would have been promoted had it not been for the 
        physical disability for which he is separated and which 
        was found to exist as a result of a physical 
        examination [for promotion].
          (D) Twice the amount of monthly basic pay to which he 
        would be entitled if serving (i) on active duty on the 
        date when his name was placed on the temporary 
        disability retired list or, if his name was not carried 
        on that list, on the date when he is separated, and 
        (ii) in the temporary grade or rank to which he would 
        have been promoted had it not been for the physical 
        disability for which he is separated and which was 
        found to exist as a result of a physical examination 
        [for promotion], if his eligibility for promotion was 
        required to be based on cumulative years of service or 
        years in grade.

           *       *       *       *       *       *       *

CHAPTER 69--RETIRED GRADE

           *       *       *       *       *       *       *

Sec. 1370. Commissioned officers: general rule; exceptions

  (a) Rule for Retirement in Highest Grade Held 
Satisfactorily.--(1) * * *
  (2)(A) In order to be eligible for voluntary retirement under 
any provision of this title in a grade above major or 
lieutenant commander, a commissioned officer of the Army, Navy, 
Air Force, or Marine Corps must have served on active duty in 
that grade for not less than three years, except that the 
Secretary of Defense may authorize the Secretary of a military 
department to reduce such period to a period not less than two 
years in the case of retirements effective during the period 
beginning on October 1, 1990, and ending on December 31, [2001] 
2002.

           *       *       *       *       *       *       *

  (d) Reserve Officers.--(1) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *
  [(B) A person covered by subparagraph (A) who has completed 
at least six months of satisfactory service in grade and is 
transferred from an active status or discharged as a reserve 
commissioned officer solely due to the requirements of a 
nondiscretionary provision of law requiring that transfer or 
discharge due to the person's age or years of service may be 
credited with satisfactory service in the grade in which 
serving at the time of such transfer or discharge, 
notwithstanding failure of the person to complete three years 
of service in that grade.]
  (B) A person covered by subparagraph (A) who has completed at 
least six months of satisfactory service in grade may be 
credited with satisfactory service in the grade in which 
serving at the time of transfer or discharge, notwithstanding 
failure of the person to complete three years of service in 
that grade, if that person--
          (i) is transferred from an active status or 
        discharged as a reserve commissioned officer solely due 
        to the requirements of a nondiscretionary provision of 
        law requiring that transfer or discharge due to the 
        person's age or years of service; or
          (ii) is retired under chapter 1223 of this title 
        because the person no longer meets the qualification 
        for membership in the Ready Reserve solely because of a 
        physical disability, as determined, at a minimum, by a 
        medical evaluation board.

           *       *       *       *       *       *       *

  (5) The Secretary of Defense may authorize the Secretary of a 
military department to reduce the 3-year period required by 
paragraph (3)(A) to a period not less than 2 years in the case 
of retirements effective during the period beginning on October 
17, 1998, and ending on December 31, [2001] 2002. The number of 
reserve commissioned officers of an armed force in the same 
grade for whom a reduction is made during any fiscal year in 
the period of service-in-grade otherwise required under this 
paragraph may not exceed the number equal to 2 percent of the 
strength authorized for that fiscal year for reserve 
commissioned officers of that armed force in an active status 
in that grade.

           *       *       *       *       *       *       *

                 CHAPTER 71--COMPUTATION OF RETIRED PAY

Sec.
1401.  Computation of retired pay.
     * * * * * * *
1414.  Members eligible for retired pay who have service-connected 
          disabilities: payment of retired pay and veterans' disability 
          compensation; contingent authority.
     * * * * * * *

Sec. 1405. Years of service

  (a) * * *

           *       *       *       *       *       *       *

  (c) Exclusion of Time Required To Be Made Up or Excluded.--
(1) Time required to be made up by an enlisted member of the 
Army or Air Force under section 972(a) of this title, or 
required to be made up by an enlisted member of the Navy, 
Marine Corps, or Coast Guard under that section with respect to 
a period of time after [the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1995,] 
October 5, 1994, may not be counted in determining years of 
service under subsection (a).

           *       *       *       *       *       *       *

Sec. 1407. Retired pay base for members who first became members after 
                    September 7, 1980: high-36 month average

  (a) * * *

           *       *       *       *       *       *       *

  (f) Exception for Enlisted Members Reduced in Grade and 
Officers Who Do Not Serve Satisfactorily in Highest Grade 
Held.--
          (1) * * *
          (2) Affected members.--A member or former member 
        referred to in paragraph (1) is a member or former 
        member who by reason of conduct occurring after [the 
        date of the enactment of this subsection--] October 30, 
        2000--
                  (A) * * *

           *       *       *       *       *       *       *

Sec. 1408. Payment of retired or retainer pay in compliance with court 
                    orders

  (a) * * *

           *       *       *       *       *       *       *

  (d) Payments by Secretary Concerned to (or for Benefit of) 
Spouse or Former Spouse.--(1) * * *

           *       *       *       *       *       *       *

  (6) In the case of a court order for which effective service 
is made on the Secretary concerned on or after [the date of the 
enactment of this paragraph] August 22, 1996, and which 
provides for payments from the disposable retired pay of a 
member to satisfy the amount of child support set forth in the 
order, the authority provided in paragraph (1) to make payments 
from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply 
to payment of any amount of child support arrearages set forth 
in that order as well as to amounts of child support that 
currently become due.

           *       *       *       *       *       *       *

Sec. 1413. Special compensation for certain severely disabled uniformed 
                    services retirees

  (a) Authority.--The Secretary concerned shall pay to each 
eligible disabled uniformed services retiree a monthly amount 
determined under subsection (b). If the provisions of 
subsection (a) of section 1414 of this title become effective 
in accordance with subsection (f) of that section, payments 
under this section shall be terminated effective as of the 
month beginning on the effective date specified in subsection 
(e) of that section.

           *       *       *       *       *       *       *

Sec. 1414. Members eligible for retired pay who have service-connected 
                    disabilities: payment of retired pay and veterans' 
                    disability compensation; contingent authority

  (a) Payment of Both Retired Pay and Compensation.--Subject to 
subsection (b), a member or former member of the uniformed 
services who is entitled to retired pay (other than as 
specified in subsection (c)) and who is also entitled to 
veterans' disability compensation is entitled to be paid both 
without regard to sections 5304 and 5305 of title 38, subject 
to the enactment of qualifying offsetting legislation as 
specified in subsection (f).
  (b) Special Rule for Chapter 61 Career Retirees.--The retired 
pay of a member retired under chapter 61 of this title with 20 
years or more of service otherwise creditable under section 
1405 of this title at the time of the member's retirement is 
subject to reduction under sections 5304 and 5305 of title 38, 
but only to the extent that the amount of the member's retired 
pay under chapter 61 of this title exceeds the amount of 
retired pay to which the member would have been entitled under 
any other provision of law based upon the member's service in 
the uniformed services if the member had not been retired under 
chapter 61 of this title.
  (c) Exception.--Subsection (a) does not apply to a member 
retired under chapter 61 of this title with less than 20 years 
of service otherwise creditable under section 1405 of this 
title at the time of the member's retirement.
  (d) Definitions.--In this section:
          (1) The term ``retired pay'' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.
          (2) The term ``veterans' disability compensation'' 
        has the meaning given the term ``compensation'' in 
        section 101(12) of title 38.
  (e) Effective Date.--If qualifying offsetting legislation (as 
defined in subsection (f)) is enacted, the provisions of 
subsection (a) shall take effect on--
          (1) the first day of the first month beginning after 
        the date of the enactment of such qualifying offsetting 
        legislation; or
          (2) the first day of the fiscal year that begins in 
        the calendar year in which such legislation is enacted, 
        if that date is later than the date specified in 
        paragraph (1).
  (f) Effectiveness Contingent on Enactment of Offsetting 
Legislation.--(1) The provisions of subsection (a) shall be 
effective only if--
          (A) the President, in the budget for any fiscal year, 
        proposes the enactment of legislation that, if enacted, 
        would be qualifying offsetting legislation; and
          (B) after that budget is submitted to Congress, there 
        is enacted qualifying offsetting legislation.
  (2) For purposes of this subsection:
          (A) The term ``qualifying offsetting legislation'' 
        means legislation (other than an appropriations Act) 
        that includes provisions that--
                  (i) offset fully the increased outlays to be 
                made by reason of the provisions of subsection 
                (a) for each of the first 10 fiscal years 
                beginning after the date of the enactment of 
                such legislation;
                  (ii) expressly state that they are enacted 
                for the purpose of the offset described in 
                clause (i); and
                  (iii) are included in full on the PayGo 
                scorecard.
          (B) The term ``PayGo scorecard'' means the estimates 
        that are made by the Director of the Congressional 
        Budget Office and the Director of the Office of 
        Management and Budget under section 252(d) of the 
        Balanced Budget and Emergency Deficit Control Act of 
        1985 (2 U.S.C. 902(d)) with respect to the ten fiscal 
        years following the date of the enactment of the 
        legislation that is qualifying offsetting legislation 
        for purposes of this section.

           *       *       *       *       *       *       *

CHAPTER 75--DECEASED PERSONNEL

           *       *       *       *       *       *       *

SUBCHAPTER II--DEATH BENEFITS

           *       *       *       *       *       *       *

Sec. 1481. Recovery, care, and disposition of remains: decedents 
                    covered

  (a) The Secretary concerned may provide for the recovery, 
care, and disposition of the remains of the following persons:
          (1) * * *
          (2) A member of a reserve component of an armed force 
        who dies while--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) remaining overnight immediately before 
                the commencement of inactive-duty training, or 
                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 from the member's 
                residence];

           *       *       *       *       *       *       *

Sec. 1491. Funeral honors functions at funerals for veterans

  (a) * * *
  (b) Composition of Funeral Honors Details.--(1) * * *

           *       *       *       *       *       *       *

  (3) A member of the Army National Guard of the United States 
or the Air National Guard of the United States who serves as a 
member of a funeral honors detail while in a duty status 
authorized under State law shall be considered to be a member 
of the armed forces for the purposes of the first sentence of 
paragraph (2).

           *       *       *       *       *       *       *

CHAPTER 76--MISSING PERSONS

           *       *       *       *       *       *       *

Sec. 1506. Personnel files

  (a) * * *
  (b) Classified Information.--(1) * * *
  (2)(A) 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[.] 
of all missing persons from the conflict or period of war to 
which the classified information pertains.
  (B) For purposes of subparagraph (A), information shall be 
considered to be made reasonably available if placed in a 
separate and distinct file that is available for review by 
persons specified in subparagraph (A) upon the request of any 
such person either to review the separate file or to review the 
personnel file of the missing person concerned.

           *       *       *       *       *       *       *

Sec. 1511. Return alive of person declared missing or dead

  (a) * * *
  (b) Effect on Gratuities Paid as a Result of Status.--
Subsection (a) shall not be interpreted to invalidate or 
otherwise affect the receipt by any person of a death gratuity 
or other payment from the United States on behalf of a person 
referred to in subsection (a) before [the date of the enactment 
of this chapter.] February 10, 1996.

           *       *       *       *       *       *       *

 CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

Sec.
1561.  Complaints of sexual harassment: investigation by commanding 
          officers.
     * * * * * * *
1566.  Voting assistance: compliance assessments and assistance.
     * * * * * * *

Sec. 1566. Voting assistance: compliance assessments and assistance

  (a) Inspector General Assessments.--(1) The Department of 
Defense Inspector General shall each calendar year conduct a 
random and unannounced assessment at a minimum of 15 Department 
of Defense installations of the compliance at those 
installations with--
          (A) the requirements of the Uniformed and Overseas 
        Citizens Absentee Voting Act (42 U.S.C. 1973ff et 
        seq.);
          (B) Department of Defense regulations regarding that 
        Act and the Federal Voting Assistance Program carried 
        out under that Act; and
          (C) other requirements of law regarding voting by 
        members of the armed forces.
  (2) Each assessment under paragraph (1) shall include a 
review of such compliance--
          (A) within units to which are assigned, in the 
        aggregate, not less than 20 percent of the personnel 
        assigned to duty at that installation;
          (B) within a representative survey of members of the 
        armed forces assigned to that installation and their 
        dependents; and
          (C) within unit voting assistance officers to measure 
        program effectiveness.
  (b) Regular Military Department Assessments.--The Secretary 
of each military department shall include in the set of issues 
and programs to be reviewed during any management effectiveness 
review or inspection an assessment of compliance with the 
Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 
1973ff et seq.) and with Department of Defense regulations 
regarding the Federal Voting Assistance Program.
  (c) Voting Assistance Officers.--Voting assistance officers 
appointed or assigned under Department of Defense regulations 
regarding the Federal Voting Assistance Program shall be 
appointed or assigned with the expectation of serving in that 
capacity for a minimum of 30 months. A member of the armed 
forces assigned to such a position may not be assigned other 
duties that would not be considered part of the member's 
primary military duties, except when a unit commander 
determines that insufficient personnel are available to fulfill 
all additional duty requirements. Performance evaluation 
reports pertaining to a member who has been assigned to serve 
as a voting assistance officer shall comment on the performance 
of the member as a voting assistance officer.
  (d) Delivery of Mail From Overseas Preceding Federal 
Elections.--(1) During the four months preceding a general 
Federal election month, the Secretary of Defense shall 
periodically conduct surveys of all overseas locations and 
vessels at sea with military units responsible for collecting 
mail for return shipment to the United States and all port 
facilities in the United States and overseas where military-
related mail is collected for shipment to overseas locations or 
to the United States. The purpose of each survey shall be to 
determine if voting materials are awaiting shipment at any such 
location and, if so, the length of time that such materials 
have been held at that location. During the fourth and third 
months before a general Federal election month, such surveys 
shall be conducted biweekly. During the second and first months 
before a general Federal election month, such surveys shall be 
conducted weekly.
  (2) The Secretary shall ensure that voting materials are 
transmitted expeditiously by military postal authorities at all 
times.
  (3) In this section, the term ``general Federal election 
month'' means November in an even-numbered year.

           *       *       *       *       *       *       *

CHAPTER 81--CIVILIAN EMPLOYEES

           *       *       *       *       *       *       *

Sec. 1581. Foreign National Employees Separation Pay Account

  (a) * * *
  (b) Deposits Into Account.--[(1) The Secretary of the 
Treasury shall deposit into the account all amounts that were 
obligated by the Secretary of Defense before December 5, 1991, 
and that remain unexpended for separation pay for foreign 
nationals referred to in subsection (e).
  [(2) The Secretary of Defense shall deposit] The Secretary of 
Defense shall deposit into the account from applicable 
appropriations all amounts obligated [on or after December 5, 
1991,] for separation pay for foreign nationals referred to in 
subsection (e).

           *       *       *       *       *       *       *

Sec. 1588. Authority to accept certain voluntary services

  (a) Authority To Accept Services.--Subject to subsection (b) 
and notwithstanding section 1342 of title 31, the Secretary 
concerned may accept from any person the following services:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Voluntary legal assistance services under section 
        1044 of this title.

           *       *       *       *       *       *       *

  (d) Status of Persons Providing Services.--(1) Subject to 
paragraph (3), while providing voluntary services accepted 
under subsection (a) or receiving training under subsection 
(c), a person, other than a person referred to in paragraph 
(2), shall be considered to be an employee of the Federal 
Government only for purposes of the following provisions of 
law:
          (A) * * *

           *       *       *       *       *       *       *

          (E) Section 1054 of this title (relating to defense 
        of certain suits arising out of legal malpractice), in 
        the case of persons providing voluntary legal 
        assistance services under subsection (a)(5).

           *       *       *       *       *       *       *

CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

           *       *       *       *       *       *       *

SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

           *       *       *       *       *       *       *

Sec. 1611. Postemployment assistance: certain terminated intelligence 
                    employees

  (a) * * *

           *       *       *       *       *       *       *

  (d) Duration of Assistance.--Assistance may not be provided 
under this section in the case of any individual after the end 
of the five-year period beginning on the date of the 
termination of the employment of the individual [with] in a 
defense intelligence position.

           *       *       *       *       *       *       *

CHAPTER 87--DEFENSE ACQUISITION WORKFORCE

           *       *       *       *       *       *       *

         SUBCHAPTER I--GENERAL AUTHORITIES AND RESPONSIBILITIES

Sec.
1701.  Management policies.
[1702.  Under Secretary of Defense for Acquisition and Technology: 
          authorities and responsibilities.]
1702.  Under Secretary of Defense for Acquisition, Technology, and 
          Logistics: authorities and responsibilities.
     * * * * * * *

[Sec. 1702. Under Secretary of Defense for Acquisition and Technology: 
                    authorities and responsibilities]

Sec. 1702. Under Secretary of Defense for Acquisition, Technology, and 
                    Logistics: authorities and responsibilities

  Subject to the authority, direction, and control of the 
Secretary of Defense, the [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall carry out all 
powers, functions, and duties of the Secretary of Defense with 
respect to the acquisition workforce in the Department of 
Defense. The Under Secretary shall ensure that the policies of 
the Secretary of Defense established in accordance with this 
chapter are implemented throughout the Department of Defense. 
The Under Secretary shall prescribe policies and requirements 
for the educational programs of the defense acquisition 
university structure established under section 1746 of this 
title.

Sec. 1703. Director of Acquisition Education, Training, and Career 
                    Development

  The [Under Secretary of Defense for Acquisition and 
Technology] Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall appoint a Director of 
Acquisition Education, Training, and Career Development within 
the office of the Under Secretary to assist the Under Secretary 
in the performance of his duties under this chapter.

           *       *       *       *       *       *       *

Sec. 1707. Personnel in the Office of the Secretary of Defense and in 
                    the Defense Agencies

  (a) Policies.--The Secretary of Defense, acting through the 
[Under Secretary of Defense for Acquisition and Technology] 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall establish and implement, in such manner as the 
Secretary considers appropriate, policies and procedures for 
the effective management, including accession, education, 
training, and career development, of persons serving in 
acquisition positions in the Office of the Secretary of Defense 
and the Defense Agencies. Such policies and procedures shall 
include (1) the establishment of one or more Acquisition Corps 
with respect to such persons, and (2) the establishment of an 
acquisition career program board (and any appropriate 
subordinate board structure) with respect to such persons. The 
Secretary shall ensure that, to the maximum extent practicable, 
such policies and procedures are as uniform as practicable with 
the policies established under this chapter for the military 
departments.

           *       *       *       *       *       *       *

SUBCHAPTER II--DEFENSE ACQUISITION POSITIONS

           *       *       *       *       *       *       *

Sec. 1722. Career development

  (a) Career Paths.--The Secretary of Defense, acting through 
the [Under Secretary of Defense for Acquisition and Technology] 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall ensure that appropriate career paths for 
civilian and military personnel who wish to pursue careers in 
acquisition are identified in terms of the education, training, 
experience, and assignments necessary for career progression of 
civilians and members of the armed forces to the most senior 
acquisition positions. The Secretary shall make available 
published information on such career paths.
  (b) Limitation on Preference for Military Personnel.--(1) * * 
*
  (2)(A) * * *
  (B) Not later than December 15 of each year, the [Under 
Secretary of Defense for Acquisition and Technology] Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
shall submit to the Secretary a report that lists each 
acquisition position that is restricted to members of the armed 
forces under such policy and the recommendation of the Under 
Secretary as to whether such position should remain so 
restricted.

           *       *       *       *       *       *       *

  [(e) Management of Workforce.--The Secretary of Defense shall 
ensure that the acquisition workforce is managed such that, for 
each fiscal year from October 1, 1991, through September 30, 
1996, there is a substantial increase in the proportion of 
civilians (as compared to armed forces personnel) serving in 
critical acquisition positions in general, in program manager 
positions, and in division head positions over the proportion 
of civilians (as compared to armed forces personnel) in such 
positions on October 1, 1990.]

           *       *       *       *       *       *       *

Sec. 1724. Contracting positions: qualification requirements

  [(a) Contracting Officers.--The Secretary of Defense shall 
require that in order to qualify to serve in an acquisition 
position as a contracting officer with authority to award or 
administer contracts for amounts above the simplified 
acquisition threshold referred to in section 2304(g) of this 
title, a person must--]
  (a) Contracting Officers.--The Secretary of Defense shall 
require that, in order to qualify to serve in an acquisition 
position as a contracting officer with authority to award or 
administer contracts for amounts above the simplified 
acquisition threshold referred to in section 2304(g) of this 
title, an employee of the Department of Defense or member of 
the armed forces (other than the Coast Guard) must, except as 
provided in subsections (c) and (d)--
          (1) have completed all [mandatory] contracting 
        courses required for a contracting officer [at the 
        grade level, or in the position within the grade of the 
        General Schedule (in the case of an employee), that the 
        person is serving in;] (A) in the case of an employee, 
        serving in the position within the grade of the General 
        Schedule in which the employee is serving, and (B) in 
        the case of a member of the armed forces, in the 
        member's grade;

           *       *       *       *       *       *       *

          (3)(A) have received a baccalaureate degree from an 
        accredited educational institution authorized to grant 
        baccalaureate degrees, and (B) have completed at least 
        24 semester credit hours (or the equivalent) of study 
        from an accredited institution of higher education in 
        any of the following disciplines: accounting, business, 
        finance, law, contracts, purchasing, economics, 
        industrial management, marketing, quantitative methods, 
        and organization and management; and

           *       *       *       *       *       *       *

  [(b) GS-1102 Series Positions and Similar Military 
Positions.--The Secretary of Defense shall require that a 
person meet the requirements set forth in paragraph (3) of 
subsection (a), but not the other requirements set forth in 
that subsection, in order to qualify to serve in a position in 
the Department of Defense in--
          [(1) the GS-1102 occupational series; or
          [(2) a similar occupational specialty if the position 
        is to be filled by a member of the armed forces.
  [(c) Exception.--The requirements imposed under subsection 
(a) or (b) shall not apply to a person for the purpose of 
qualifying to serve in a position in which the person is 
serving on September 30, 2000.
  [(d) Waiver.--The acquisition career program board of a 
military department may waive any or all of the requirements of 
subsections (a) and (b) with respect to an employee or member 
of that military department if the board certifies that the 
employee or member possesses significant potential for 
advancement to levels of greater responsibility and authority, 
based on demonstrated job performance and qualifying 
experience. With respect to each waiver granted under this 
subsection, the board shall set forth in a written document the 
rationale for its decision to waive such requirements. The 
document shall be submitted to and retained by the Director of 
Acquisition Education, Training, and Career Development.]
  (b) GS-1102 Series Positions and Similar Military 
Positions.--(1) The Secretary of Defense shall require that in 
order to qualify to serve in a position in the Department of 
Defense that is in the GS-1102 occupational series an employee 
or potential employee of the Department of Defense meet the 
requirements set forth in paragraph (3) of subsection (a). The 
Secretary may not require that in order to serve in such a 
position an employee or potential employee meet any of the 
requirements of paragraphs (1) and (2) of that subsection.
  (2) The Secretary of Defense shall require that in order for 
a member of the armed forces to be selected for an occupational 
specialty within the armed forces that (as determined by the 
Secretary) is similar to the GS-1102 occupational series a 
member of the armed forces meet the requirements set forth in 
paragraph (3) of subsection (a). The Secretary may not require 
that in order to be selected for such an occupational specialty 
a member meet any of the requirements of paragraphs (1) and (2) 
of that subsection.
  (c) Exceptions.--The qualification requirements imposed by 
the Secretary of Defense pursuant to subsections (a) and (b) 
shall not apply to an employee of the Department of Defense or 
member of the armed forces who--
          (1) served as a contracting officer with authority to 
        award or administer contracts in excess of the 
        simplified acquisition threshold on or before September 
        30, 2000;
          (2) served, on or before September 30, 2000, in a 
        position either as an employee in the GS-1102 series or 
        as a member of the armed forces in similar occupational 
        specialty;
          (3) is in the contingency contracting force; or
          (4) is described in subsection (e)(1)(B).
  (d) Waiver.--The acquisition career program board concerned 
may waive any or all of the requirements of subsections (a) and 
(b) with respect to an employee of the Department of Defense or 
member of the armed forces if the board certifies that the 
individual possesses significant potential for advancement to 
levels of greater responsibility and authority, based on 
demonstrated job performance and qualifying experience. With 
respect to each waiver granted under this subsection, the board 
shall set forth in a written document the rationale for its 
decision to waive such requirements. Such document shall be 
submitted to and retained by the Director of Acquisition 
Education, Training, and Career Development.
  (e) Developmental Opportunities.--(1) The Secretary of 
Defense may--
          (A) establish or continue one or more programs for 
        the purpose of recruiting, selecting, appointing, 
        educating, qualifying, and developing the careers of 
        individuals to meet the requirements in subparagraphs 
        (A) and (B) of subsection (a)(3);
          (B) appoint individuals to developmental positions in 
        those programs; and
          (C) separate from the civil service after a three-
        year probationary period any individual appointed under 
        this subsection who, as determined by the Secretary, 
        fails to complete satisfactorily any program described 
        in subparagraph (A).
  (2) To qualify for any developmental program described in 
paragraph (1)(A), an individual shall have--
          (A) been awarded a baccalaureate degree from an 
        accredited institution of higher education authorized 
        to grant baccalaureate degrees; or
          (B) completed at least 24 semester credit hours or 
        the equivalent of study from an accredited institution 
        of higher education in any of the disciplines of 
        accounting, business, finance, law, contracts, 
        purchasing, economics, industrial management, 
        marketing, quantitative methods, or organization and 
        management.
  (f) Contingency Contracting Force.--The Secretary shall 
establish qualification requirements for the contingency 
contracting force consisting of members of the armed forces 
whose mission is to deploy in support of contingency operations 
and other operations of the Department of Defense, including--
          (1) completion of at least 24 semester credit hours 
        or the equivalent of study from an accredited 
        institution of higher education or similar educational 
        institution in any of the disciplines of accounting, 
        business, finance, law, contracts, purchasing, 
        economics, industrial management, marketing, 
        quantitative methods, or organization and management; 
        or
          (2) passage of an examination that demonstrates 
        skills, knowledge, or abilities comparable to that of 
        an individual who has completed at least 24 semester 
        credit hours or the equivalent of study in any of the 
        disciplines described in paragraph (1).

           *       *       *       *       *       *       *

                   SUBCHAPTER III--ACQUISITION CORPS

Sec.
1731.  Acquisition Corps: in general.
     * * * * * * *
[1736.  Applicability.]
     * * * * * * *

Sec. 1732. Selection criteria and procedures

  (a) Selection Criteria and Procedures.--Selection for 
membership in an Acquisition Corps shall be made in accordance 
with criteria and procedures established by the Secretary of 
Defense. [Such criteria and procedures shall be in effect on 
and after October 1, 1993.]

           *       *       *       *       *       *       *

  (c) Exceptions.--(1) * * *
  (2) The requirements of subsections (b)(2)(A) and (b)(2)(B) 
shall not apply to any employee who is serving in an 
acquisition position on October 1, 1991, and who does not have 
10 years of experience as described in paragraph (1) if the 
employee passes an examination considered by the Secretary of 
Defense to demonstrate skills, knowledge, or abilities 
comparable to that of an individual who has completed at least 
24 semester credit hours (or the equivalent) of study from an 
accredited institution of higher education from among the 
following disciplines: accounting, business, finance, law, 
contracts, purchasing, economics, industrial management, 
marketing, quantitative methods, and organization and 
management. The Secretary of Defense shall submit examinations 
to be given to civilian employees under this paragraph to the 
Director of the Office of Personnel Management for approval. If 
the Director does not disapprove an examination within 30 days 
after the date on which the Director receives the examination, 
the examination is deemed to be approved by the Director.

           *       *       *       *       *       *       *

Sec. 1734. Career development

  (a) * * *
  (b) Assignment Period for Program Managers.--(1) The 
Secretary of Defense shall prescribe in regulations--
          (A) * * *
          (B) a requirement that, [on and after October 1, 
        1991,] to the maximum extent practicable, a program 
        manager who is the replacement for a reassigned program 
        manager arrive at the assignment location before the 
        reassigned program manager leaves.
Except as provided in subsection (d), the Secretary concerned 
may not reassign a program manager or deputy program manager 
from such an assignment until after such major milestone has 
occurred.

           *       *       *       *       *       *       *

  (e) Rotation Policy.--(1) * * *
  (2) The Secretary of Defense shall establish a procedure 
under which the assignment of each person assigned to a 
critical acquisition position shall be reviewed on a case-by-
case basis, by the acquisition career program board of the 
department concerned, for the purpose of determining whether 
the Government and such person would be better served by a 
reassignment to a different position. Such a review shall be 
carried out with respect to each such person not later than 
five years after that person is assigned to a critical 
position. [Reviews under this subsection shall be carried out 
after October 1, 1995, but may be carried out before that 
date.]

           *       *       *       *       *       *       *

Sec. 1735. Education, training, and experience requirements for 
                    critical acquisition positions

  (a) * * *

           *       *       *       *       *       *       *

  (c) Program Executive Officers.--Before being assigned to a 
position as a program executive officer, a person--
          (1) must have completed the program management course 
        at the Defense Systems Management College or a 
        management program at an accredited educational 
        institution in the private sector determined to be 
        comparable by the Secretary of Defense, acting through 
        the [Under Secretary of Defense for Acquisition and 
        Technology] Under Secretary of Defense for Acquisition, 
        Technology, and Logistics;

           *       *       *       *       *       *       *

[Sec. 1736. Applicability

  [(a) In General.--Except as provided in subsections (b) and 
(c), the qualification requirements prescribed pursuant to 
section 1735 shall apply to all critical acquisition positions 
not later than October 1, 1992.
  [(b) Program Managers.--The qualification requirements 
prescribed pursuant to section 1735 shall apply with respect to 
program manager positions not later than October 1, 1991.
  [(c) Exceptions.--The qualification requirements prescribed 
pursuant to sections 1733(a) and 1735(a) shall not apply--
          [(1) to an employee who is serving in a critical 
        acquisition position on October 1, 1992, for purposes 
        of qualifying to continue to serve in such position; or
          [(2) to a person who is serving in a program manager 
        position on October 1, 1991, for purposes of qualifying 
        to continue to serve in such position.]

Sec. 1737. Definitions and general provisions

  (a) * * *

           *       *       *       *       *       *       *

  (c) Waiver.--(1) The Secretary of each military department 
(acting through the service acquisition executive for that 
department) or the Secretary of Defense (acting through the 
[Under Secretary of Defense for Acquisition and Technology] 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics) for Defense Agencies and other components of the 
Department of Defense may waive, on a case-by-case basis, the 
requirements established under this subchapter with respect to 
the assignment of an individual to a particular critical 
acquisition position. Such a waiver may be granted only if 
unusual circumstances justify the waiver or if the Secretary 
concerned (or official to whom the waiver authority is 
delegated) determines that the individual's qualifications 
obviate the need for meeting the education, training, and 
experience requirements established under this subchapter.
  (2) The authority to grant such waivers may be delegated--
          (A) * * *
          (B) in the case of the [Under Secretary of Defense 
        for Acquisition and Technology] Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, 
        only to the Director of Acquisition Education, 
        Training, and Career Development.

           *       *       *       *       *       *       *

SUBCHAPTER IV--EDUCATION AND TRAINING

           *       *       *       *       *       *       *

Sec. 1741. Policies and programs: establishment and implementation

  (a) * * *
  (b) Funding Levels.--The [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics each year shall 
recommend to the Secretary of Defense the funding levels to be 
requested in the defense budget to implement the education and 
training programs under this subchapter. The Secretary of 
Defense shall set forth separately the funding levels requested 
for such programs in the Department of Defense budget 
justification documents submitted in support of the President's 
budget submitted to Congress under section 1105 of title 31.

           *       *       *       *       *       *       *

Sec. 1746. Defense acquisition university structure

  (a) Defense Acquisition University Structure.--The Secretary 
of Defense, acting through the [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall establish and 
maintain a defense acquisition university structure to provide 
for--
          (1) * * *

           *       *       *       *       *       *       *

              SUBCHAPTER V--GENERAL MANAGEMENT PROVISIONS

Sec.
1761.  Management information system.
     * * * * * * *
[1762.  Report to Secretary of Defense.]
     * * * * * * *
[1764.  Authority to establish different minimum experience 
          requirements.]

Sec. 1761. Management information system

  (a) * * *
  (b) Minimum Information.--The management information system 
shall, at a minimum, provide for--
          (1) * * *

           *       *       *       *       *       *       *

          (4) collection of the information necessary for the 
        [Under Secretary of Defense for Acquisition and 
        Technology] Under Secretary of Defense for Acquisition, 
        Technology, and Logistics and the Secretary of Defense 
        to comply with the requirements of section 1762 for the 
        years in which that section is in effect.

[Sec. 1762. Report to Secretary of Defense

  [(a) Report of Under Secretary of Defense for Acquisition and 
Technology.--Each year the Under Secretary of Defense for 
Acquisition and Technology shall transmit to the Secretary of 
Defense a report on the status of the defense acquisition 
workforce. Each annual report shall include, for each military 
department and Defense Agency and the Office of the Secretary 
of Defense, information on each category of information 
referred to in subsection (c).
  [(b) Inclusion of Information in Annual Report.--The 
Secretary of Defense shall include in the annual report of the 
Secretary to Congress under section 113(c) of this title the 
information in the report transmitted to the Secretary under 
subsection (a).
  [(c) Information.--The following information shall be 
included in the report transmitted to the Secretary under 
subsection (a) for the period covered by the report (which 
shall be shown for the Department of Defense as a whole and, 
with respect to paragraphs (1) through (12), separately for the 
Army, Navy, Air Force, Marine Corps, Defense Agencies, and 
Office of the Secretary of Defense):
          [(1) The number of acquisition positions specified 
        under the policy established under section 1722(b)(2) 
        of this title as being available, as of December 1 of 
        the period covered by the report, only to members of 
        the armed forces, set forth separately under each 
        criterion established in the policy, together with a 
        discussion of the types of positions that are so 
        specified.
          [(2) The total number of persons serving in the 
        Acquisition Corps as of December 1 of the period 
        covered by the report, set forth separately for members 
        of the armed forces and civilian employees, by grade 
        level and by functional specialty.
          [(3) The total number of critical acquisition 
        positions held as of December 1 of the period covered 
        by the report, set forth separately for members of the 
        armed forces and civilian employees, by grade level and 
        by other appropriate categories (including by program 
        manager, deputy program manager, and division head 
        positions). For each such category, the report shall 
        specify the number of civilians holding such positions 
        compared to the total number of positions filled.
          [(4)(A) The promotion rate for officers in an 
        acquisition corps considered for promotion from within 
        the promotion zone, compared with the promotion rate 
        for other officers considered for promotion from within 
        the promotion zone in the same pay grade, shown for all 
        officers of the same armed force and for all line (or 
        the equivalent) officers of the same armed force.
          [(B) The promotion rate for officers in an 
        acquisition corps considered for promotion from below 
        the promotion zone, compared in the same manner as 
        specified in subparagraph (A).
          [(C) If the promotion rates fail to meet the 
        objective of section 1731(b) of this title, the 
        Secretary of Defense shall notify Congress of such 
        failures and of what actions the Secretary has taken or 
        plans to take in reaction to such failures.
          [(5) The number of employees who met the requirement 
        of section 1724(a)(3) or section 1724(b) of this title 
        by passing an exam as described in section 
        1724(a)(3)(C), set forth separately for contracting 
        officers and persons in the GS-1102 occupational 
        series.
          [(6) The number of employees to whom the requirements 
        of subsections (b)(2)(A) and (b)(2)(B) of section 1732 
        of this title did not apply because of the exceptions 
        provided in paragraphs (1) and (2) of section 1732(c) 
        of this title, set forth separately by type of 
        exception.
          [(7) The number of employees certified by an 
        acquisition career program board under section 
        1732(b)(2)(A)(ii) of this title.
          [(8) The number of program managers and deputy 
        program managers who were reassigned after completion 
        of a major milestone occurring closest in time to the 
        date on which the person has served in the position for 
        four years (as required under section 1734(b) of this 
        title), and the proportion of those reassignments to 
        the total number of reassignments of program managers 
        and deputy program managers, set forth separately for 
        program managers and deputy program managers. The 
        Secretary also shall include the average length of 
        assignment served by program managers and deputy 
        program managers so reassigned.
          [(9) The number of persons, excluding those reported 
        under paragraph (8), in critical acquisition positions 
        who were reassigned after a period of three years or 
        longer (as required under section 1734(a) of this 
        title), and the proportion of those reassignments to 
        the total number of reassignments of persons, excluding 
        those reported under paragraph (8), in critical 
        acquisition positions.
          [(10) The number of times a waiver authority was 
        exercised under section 1724(d), 1732(d), 1734(d), or 
        1736(c) of this title or any other provision of this 
        chapter (or other provision of law) which permits the 
        waiver of any requirement relating to the acquisition 
        workforce, and in the case of each such authority, the 
        reasons for exercising the authority. The Secretary may 
        present the information provided under this paragraph 
        by category or grouping of types of waivers and 
        reasons.
          [(11) The number of persons reviewed for reassignment 
        pursuant to section 1734(e)(2) of this title and the 
        number of persons reassigned as a result of such 
        reviews, together with a discussion of the criteria 
        used to determine reassignments.
          [(12) The number of persons participating in each of 
        the programs described in sections 1742 through 1745 of 
        this title, as of December 1 of the period covered by 
        the report.
          [(13) The number of persons paid a bonus under 
        section 317 of title 37 and the number of years of 
        service agreed to, for each such bonus, by category.
          [(14) Such other information and comparative data as 
        the Secretary of Defense considers appropriate to 
        demonstrate the performance of the Department of 
        Defense and the performance of each military department 
        in carrying out this chapter.
  [(d) Effective Date.--The requirements of this section shall 
apply to the years 1991 through 1998.]

Sec. 1763. Reassignment of authority

  The Secretary of Defense may assign the responsibilities 
under this chapter of the [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics to any other civilian 
official in the Office of the Secretary of Defense who is 
appointed by the President by and with the advice and consent 
of the Senate. If the Secretary takes action under the 
preceding sentence, he may authorize the Secretaries of the 
military departments to assign the responsibilities of a senior 
acquisition executive under this chapter to any other civilian 
official in the military department who is appointed by the 
President by and with the advice and consent of the Senate.

[Sec. 1764. Authority to establish different minimum experience 
                    requirements

  [(a) Authority.--During the six-year period beginning on 
October 1, 1992, and ending on September 30, 1998, the 
Secretary of Defense may prescribe a different minimum number 
of years of experience to be required for eligibility for 
appointment to an acquisition position referred to in 
subsection (b) than is required for such position under or 
pursuant to any provision of this chapter. Any requirement 
prescribed under this section for a position referred to in any 
paragraph of subsection (b) shall be applied uniformly to all 
positions referred to in such paragraph.
  [(b) Applicability.--This section applies to the following 
acquisition positions in the Department of Defense:
          [(1) Contracting officer.
          [(2) Program executive officer.
          [(3) Senior contracting official.
  [(c) OPM Approval.--The Secretary of Defense shall submit any 
requirement with respect to civilian employees that is 
prescribed under this section to the Director of the Office of 
Personnel Management for approval if the Director does not 
disapprove the requirement within 30 days after the date on 
which the Director receives the requirement, the requirement is 
deemed to be approved by the Director.
  [(d) Report.--The Secretary of Defense shall notify Congress 
of each requirement prescribed under subsection (a) together 
with his reasons for prescribing such requirement.]

           *       *       *       *       *       *       *

CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

           *       *       *       *       *       *       *

SUBCHAPTER I--MILITARY FAMILY PROGRAMS

           *       *       *       *       *       *       *

Sec. 1782. Surveys of military families

  [(a) Authority.--The Secretary of Defense may conduct surveys 
of members of the armed forces on active duty or in an active 
status, members of the families of such members, and retired 
members of the armed forces to determine the effectiveness of 
Federal programs relating to military families and the need for 
new programs.]
  (a) Authority.--The Secretary of Defense, in order to 
determine the effectiveness of Federal programs relating to 
military families and the need for new programs, may conduct 
surveys of--
          (1) members of the armed forces who are on active 
        duty, in an active status, or retired;
          (2) family members of such members; and
          (3) survivors of retired members.

           *       *       *       *       *       *       *

  (c) Federal Recordkeeping Requirements.--With respect to such 
surveys, [family members of members of the armed forces and 
reserve and retired members of the armed forces] persons 
covered by subsection (a) shall be considered to be employees 
of the United States for purposes of section 3502(3)(A)(i) of 
title 44.

           *       *       *       *       *       *       *

Sec. 1784. Employment opportunities for military spouses

  (a) * * *

           *       *       *       *       *       *       *

  (d) Space-Available Use of Facilities for Spouse Training 
Purposes.--Under regulations prescribed by the Secretary of 
Defense, the Secretary of a military department may make 
available to a non-Department of Defense entity space in non-
excess facilities controlled by that Secretary for the purpose 
of the non-Department of Defense entity providing employment-
related training for military spouses.
  (e) Employment by Other Federal Agencies.--The Secretary of 
Defense shall work with the Director of the Office of Personnel 
Management and the heads of other Federal departments and 
agencies to expand and facilitate the use of existing Federal 
programs and resources in support of military spouse 
employment.
  (f) Private-Sector Employment.--The Secretary of Defense--
          (1) shall seek to develop partnerships with firms in 
        the private sector to enhance employment opportunities 
        for spouses of members of the armed forces and to 
        provide for improved job portability for such spouses, 
        especially in the case of the spouse of a member of the 
        armed forces accompanying the member to a new 
        geographical area because of a change of permanent duty 
        station of the member; and
          (2) shall work with the United States Chamber of 
        Commerce and other appropriate private-sector entities 
        to facilitate the formation of such partnerships.
  (g) Employment With DOD Contractors.--The Secretary of 
Defense shall examine and seek ways for incorporating hiring 
preferences for qualified spouses of members of the armed 
forces into contracts between the Department of Defense and 
private-sector entities.

           *       *       *       *       *       *       *

PART III--TRAINING AND EDUCATION

           *       *       *       *       *       *       *

          CHAPTER 102--JUNIOR RESERVE OFFICERS' TRAINING CORPS

Sec.
2031.  Junior Reserve Officers' Training Corps.
     * * * * * * *
[2033.  Contingent funding increase.]

Sec. 2031. Junior Reserve Officers' Training Corps

  (a)(1) The Secretary of each military department shall 
establish and maintain a Junior Reserve Officers' Training 
Corps, organized into units, at public and private secondary 
educational institutions which apply for a unit and meet the 
standards and criteria prescribed pursuant to this section. 
[The total number of units which may be established and 
maintained by all of the military departments under authority 
of this section, including those units already established on 
October 13, 1964, may not exceed 3,500.] The President shall 
promulgate regulations prescribing the standards and criteria 
to be followed by the military departments in selecting the 
institutions at which units are to be established and 
maintained and shall provide for the fair and equitable 
distribution of such units throughout the Nation, except that 
more than one such unit may be established and maintained at 
any military institute.

           *       *       *       *       *       *       *

[Sec. 2033. Contingent funding increase

  [If for any fiscal year the amount appropriated directly to 
the Secretary of Defense for the National Guard Challenge 
Program under section 509 of title 32 is in excess of 
$62,500,000, the Secretary of Defense shall (notwithstanding 
any other provision of law) make the amount in excess of 
$62,500,000 available for the Junior Reserve Officers' Training 
Corps program under section 2031 of this title, and such excess 
amount may not be used for any other purpose.]

CHAPTER 103--SENIOR RESERVE OFFICERS' TRAINING CORPS

           *       *       *       *       *       *       *

Sec. 2104. Advanced training; eligibility for

  (a) * * *
  (b) To be eligible for continuation, or initial enrollment, 
in the program for advanced training, a person must--
          (1) * * *

           *       *       *       *       *       *       *

          (3) enlist in [a reserve component of] an armed force 
        under the jurisdiction of the Secretary of the military 
        department concerned for the period prescribed by the 
        Secretary;

           *       *       *       *       *       *       *

Sec. 2106. Advanced training; commission on completion

  (a) Upon satisfactorily completing the academic and military 
requirements of the program of advanced training, a member of 
the program who was selected for advanced training under 
section 2104 of this title may be appointed as a regular or 
reserve officer in the appropriate armed force in the grade of 
second lieutenant or ensign, even though he is under 21 years 
of age. However, a member of the program selected for an 
appointment under this section who, under regulations 
prescribed by the Secretary of the military department 
concerned, is designated or selected as a Distinguished 
Graduate (or the equivalent) shall be appointed as a regular 
officer.

           *       *       *       *       *       *       *

Sec. 2107. Financial assistance program for specially selected members

  (a) The Secretary of the military department concerned may 
appoint as a cadet or midshipman, as appropriate, in the 
reserve of an armed force under his jurisdiction any eligible 
member of the program who will be under [27 years of age on 
June 30] 35 years of age on December 31 of the calendar year in 
which he is eligible under this section for appointment as an 
ensign in the Navy or as a second lieutenant in the Army, Air 
Force, or Marine Corps, as the case may be[, except that the 
age of any such member who has served on active duty in the 
armed forces may exceed such age limitation on such date by a 
period equal to the period such member served on active duty, 
but only if such member will be under 30 years of age on such 
date].

           *       *       *       *       *       *       *

Sec. 2107a. Financial assistance program for specially selected 
                    members: Army Reserve and Army National Guard

  (a)(1) The Secretary of the Army may appoint as a cadet in 
the Army Reserve or Army National Guard of the United States 
any eligible member of the program who is enrolled in the 
Advanced Course of the Army Reserve Officers' Training Corps at 
a military college, military junior college, or civilian 
institution and who will be under [27 years of age on June 30] 
35 years of age on December 31 of the calendar year in which he 
is eligible under this section for appointment as a second 
lieutenant in the Army Reserve or Army National Guard[, except 
that the age of any such member who has served on active duty 
in the armed forces may exceed such age limitation on such date 
by a period equal to the period such member served on active 
duty, but only if such member will be under 30 years of age on 
such date].

           *       *       *       *       *       *       *

  (b)(1) To be eligible for appointment as a cadet under this 
section, a member of the program must--
          [(1)] (A) be a citizen of the United States;
          [(2)] (B) be specially selected for the financial 
        assistance program under this section under procedures 
        prescribed by the Secretary of the Army;
          [(3)] (C) enlist in a reserve component of the Army 
        for the period prescribed by the Secretary of the Army;
          [(4)] (D) contract, with the consent of his parent or 
        guardian if he is a minor, with the Secretary of the 
        Army to serve for the period required by the program;
          [(5)] (E) agree in writing that he will accept an 
        appointment, if offered, as a commissioned officer in 
        the Army Reserve or the Army National Guard of the 
        United States; and
          [(6)] (F) agree in writing that he will serve in a 
        troop program unit of the Army Reserve or Army National 
        Guard for not less than eight years.
  (2) Performance of duty under an agreement under this 
subsection shall be under such terms and conditions as the 
Secretary of the Army may prescribe and may include periods of 
active duty, active duty for training, and other service in an 
active or inactive status in the reserve component in which 
appointed.
  (3) In the case of a cadet under this section at a military 
junior college, the Secretary may, at any time and with the 
consent of the cadet concerned, modify an agreement described 
in paragraph (1)(F) submitted by the cadet to reduce or 
eliminate the troop program unit service obligation specified 
in the agreement and to establish, in lieu of that obligation, 
an active duty service obligation. Such a modification may be 
made only if the Secretary determines that it is in the best 
interests of the United States to do so.

           *       *       *       *       *       *       *

  (h) The Secretary of the Army shall appoint not more than 208 
cadets each year under this section, to include not less than 
10 cadets at each military junior college at which there are 
not less than 10 members of the program eligible under 
subsection (b) for such an appointment. At any [military 
college] military junior college at which in any year there are 
fewer than 10 such members, the Secretary shall appoint each 
such member as a cadet under this section.

           *       *       *       *       *       *       *

CHAPTER 104--UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES

           *       *       *       *       *       *       *

Sec. 2112. Establishment

  (a) There is hereby authorized to be established within 25 
miles of the District of Columbia a Uniformed Services 
University of the Health Sciences (hereinafter in this chapter 
referred to as the ``University''), at a site or sites to be 
selected by the Secretary of Defense, with authority to grant 
appropriate advanced degrees. It shall be so organized as to 
graduate not less than 100 medical students annually[, with the 
first class graduating not later than September 21, 1982].

           *       *       *       *       *       *       *

   CHAPTER 105--ARMED FORCES HEALTH PROFESSIONS FINANCIAL ASSISTANCE 
PROGRAMS

           *       *       *       *       *       *       *

SUBCHAPTER II--NURSE OFFICER CANDIDATE ACCESSION PROGRAM

           *       *       *       *       *       *       *

Sec. 2130a. Financial assistance: nurse officer candidates

  (a) Bonus Authorized.--(1) A person described in subsection 
(b) who, during the period beginning on November 29, 1989, and 
ending on December 31, [2001] 2002, executes a written 
agreement in accordance with subsection (c) to accept an 
appointment as a nurse officer may, upon the acceptance of the 
agreement by the Secretary concerned, be paid an accession 
bonus of not more than $5,000. The bonus shall be paid in 
periodic installments, as determined by the Secretary concerned 
at the time the agreement is accepted, except that the first 
installment may not exceed $2,500.
  (2) In addition to the accession bonus payable under 
paragraph (1), a person selected under such paragraph shall be 
entitled to a monthly stipend of not more than $500 for each 
month the individual is enrolled as a full-time student in an 
accredited baccalaureate degree program in nursing at a 
civilian educational institution [that does not have a Senior 
Reserve Officers' Training Program established under section 
2102 of this title]. The continuation bonus may be paid for not 
more than 24 months.
  (b) Eligible Students.--A person eligible to enter into an 
agreement under subsection (a) is a person who--
          (1) is enrolled as a full-time student in an 
        accredited baccalaureate degree program in nursing at a 
        civilian educational institution that does not have a 
        Senior Reserve Officers' Training Program established 
        under section 2102 of this title or that has a Senior 
        Reserve Officers' Training Program for which the 
        student is ineligible;

           *       *       *       *       *       *       *

               CHAPTER 108--DEPARTMENT OF DEFENSE SCHOOLS

Sec.
2161.  Joint Military Intelligence College: academic degrees.
     * * * * * * *
2167.  National Defense University: admission of private sector 
          civilians to professional military education program.
2168.  Defense Language Institute Foreign Language Center: degree of 
          Associate of Arts in foreign language.

           *       *       *       *       *       *       *

Sec. 2162. Preparation of budget requests for operation of professional 
                    military education schools

  (a) * * *
  (b) Preparation of Budget Requests.--(1) * * *
  (2) As executive agent for funding professional development 
education at the National Defense University, including the 
Joint Forces Staff College, the Secretary of Defense, with the 
advice of the Chairman of the Joint Chiefs of Staff, shall 
prepare the annual budget for professional development 
education operations at the National Defense University and set 
forth that request as a separate budget request in the 
materials submitted to Congress in support of the budget 
request for the Department of Defense. Nothing in the preceding 
sentence affects policies in effect on the date of the 
enactment of this paragraph with respect to budgeting for the 
funding of logistical and base operations support for 
components of the National Defense University through the 
military departments.
  [(2)] (3) The Secretary of a military department preparing a 
budget request for a professional military education school 
shall carefully consider the views of the Chairman of the Joint 
Chiefs of Staff, particularly with respect to the amount of the 
request for the operation of the schools of the National 
Defense University and the joint professional military 
education curricula of the other professional military 
education schools.

           *       *       *       *       *       *       *

Sec. 2165. National Defense University: component institutions

  (a) * * *

           *       *       *       *       *       *       *

  (d) Source of Funds for Professional Development Education 
Operations.--Funding for the professional development education 
operations of the National Defense University shall be provided 
from funds made available to the Secretary of Defense from the 
annual appropriation ``Operation and Maintenance, Defense-
wide''.

Sec. 2166. Western Hemisphere Institute for Security Cooperation

  (a) * * *

           *       *       *       *       *       *       *

  (e) Board of Visitors.--(1) * * *

           *       *       *       *       *       *       *

  (9) The Federal Advisory Committee Act (5 U.S.C. App. [2]), 
other than section 14 (relating to termination after two 
years), shall apply to the Board.

           *       *       *       *       *       *       *

Sec. 2167. National Defense University: admission of private sector 
                    civilians to professional military education 
                    program

  (a) Authority for Admission.--The Secretary of Defense may 
permit eligible private sector employees who work in 
organizations relevant to national security to receive 
instruction at the National Defense University in accordance 
with this section. No more than 10 full-time equivalent private 
sector employees may be enrolled at any one time. Upon 
successful completion of the course of instruction in which 
enrolled, any such private sector employee may be awarded an 
appropriate diploma or degree under section 2165 of this title.
  (b) Eligible Private Sector Employees.--For purposes of this 
section, an eligible private sector employee is an individual 
employed by a private firm that is engaged in providing to the 
Department of Defense or other Government departments or 
agencies significant and substantial defense-related systems, 
products, or services or whose work product is relevant to 
national security policy or strategy. A private sector employee 
admitted for instruction at the National Defense University 
remains eligible for such instruction only so long as that 
person remains employed by the same firm.
  (c) Annual Certification by Secretary of Defense.--Private 
sector employees may receive instruction at the National 
Defense University during any academic year only if, before the 
start of that academic year, the Secretary of Defense 
determines, and certifies to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives, that providing instruction to private sector 
employees under this section during that year will further 
national security interests of the United States.
  (d) Program Requirements.--The Secretary of Defense shall 
ensure that--
          (1) the curriculum for the professional military 
        education program in which private sector employees may 
        be enrolled under this section is not readily available 
        through other schools and concentrates on national 
        security relevant issues; and
          (2) the course offerings at the National Defense 
        University continue to be determined solely by the 
        needs of the Department of Defense.
  (e) Tuition.--The President of the National Defense 
University shall charge students enrolled under this section a 
rate--
          (1) that is at least the rate charged for employees 
        of the United States outside the Department of Defense, 
        less infrastructure costs, and
          (2) that considers the value to the school and course 
        of the private sector student.
  (f) Standards of Conduct.--While receiving instruction at the 
National Defense University, students enrolled under this 
section, to the extent practicable, are subject to the same 
regulations governing academic performance, attendance, norms 
of behavior, and enrollment as apply to Government civilian 
employees receiving instruction at the university.
  (g) Use of Funds.--Amounts received by the National Defense 
University for instruction of students enrolled under this 
section shall be retained by the university to defray the costs 
of such instruction. The source, and the disposition, of such 
funds shall be specifically identified in records of the 
university.

Sec. 2168. Defense Language Institute Foreign Language Center: degree 
                    of Associate of Arts in foreign language

  (a) Subject to subsection (b), the Commandant of the Defense 
Language Institute may confer an Associate of Arts degree in a 
foreign language upon any graduate of the Foreign Language 
Center of the Institute who fulfills the requirements for that 
degree.
  (b) A degree may be conferred upon a student under this 
section only if the Provost of the Center certifies to the 
Commandant that the student has satisfied all the requirements 
prescribed for the degree.
  (c) The authority provided by subsection (a) shall be 
exercised under regulations prescribed by the Secretary of 
Defense.

           *       *       *       *       *       *       *

               PART IV--SERVICE, SUPPLY, AND PROCUREMENT

Chap.                                                               Sec.
      Planning and Coordination.....................................2201
     * * * * * * *
      Space Programs................................................2271
     * * * * * * *

CHAPTER 131--PLANNING AND COORDINATION

           *       *       *       *       *       *       *

Sec. 2218. National Defense Sealift Fund

  (a) * * *

           *       *       *       *       *       *       *

  (d) Deposits.--There shall be deposited in the Fund the 
following:
          (1) All funds appropriated to the Department of 
        Defense [for fiscal years after fiscal year 1993] for--
                  (A) * * *

           *       *       *       *       *       *       *

                      CHAPTER 135--SPACE PROGRAMS

Sec.
2271.  Executive agent.

Sec. 2271. Executive agent

  (a) Secretary of the Air Force.--The Secretary of the Air 
Force may be designated as the executive agent of the 
Department of Defense--
          (1) for the planning of the acquisition programs, 
        projects, and activities of the Department that relate 
        to space; and
          (2) for the execution of those programs, projects, 
        and activities.
  (b) Acquisition Executive.--The Secretary may designate the 
Under Secretary of the Air Force as the acquisition executive 
of the Air Force for the programs, projects, and activities 
referred to in subsection (a).

CHAPTER 137--PROCUREMENT GENERALLY

           *       *       *       *       *       *       *

Sec. 2302c. Implementation of electronic commerce capability

  (a) Implementation of Electronic Commerce Capability.--(1) * 
* *
  (2) The Secretary of Defense shall act through the [Under 
Secretary of Defense for Acquisition and Technology] Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
to implement the capability within the Department of Defense.

           *       *       *       *       *       *       *

Sec. 2304. Contracts: competition requirements

  (a) * * *

           *       *       *       *       *       *       *

  (f)(1) Except as provided in paragraph (2), the head of an 
agency may not award a contract using procedures other than 
competitive procedures unless--
          (A) * * *
          (B) the justification is approved--
                  (i) * * *

           *       *       *       *       *       *       *

                  (iii) in the case of a contract for an amount 
                exceeding $50,000,000, by the senior 
                procurement executive of the agency designated 
                pursuant to section 16(3) of the Office of 
                Federal Procurement Policy Act (41 U.S.C. 
                414(3)) (without further delegation) or in the 
                case of the [Under Secretary of Defense for 
                Acquisition and Technology] Under Secretary of 
                Defense for Acquisition, Technology, and 
                Logistics, acting in his capacity as the senior 
                procurement executive for the Department of 
                Defense, the Under Secretary's delegate 
                designated pursuant to paragraph (6)(B); and

           *       *       *       *       *       *       *

  (6)(A) * * *
  (B) The authority of the [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics under paragraph 
(1)(B)(iii) may be delegated only to--
          (i) * * *

           *       *       *       *       *       *       *

Sec. 2311. Assignment and delegation of procurement functions and 
                    responsibilities

  (a) * * *

           *       *       *       *       *       *       *

  (c) Approval of Terminations and Reductions of Joint 
Acquisition Programs.--(1) The Secretary of Defense shall 
prescribe regulations that prohibit each military department 
participating in a joint acquisition program approved by the 
[Under Secretary of Defense for Acquisition and Technology] 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics from terminating or substantially reducing its 
participation in such program without the approval of the Under 
Secretary.
  (2) The regulations shall include the following provisions:
          (A) * * *
          (B) A provision that authorizes the [Under Secretary 
        of Defense for Acquisition and Technology] Under 
        Secretary of Defense for Acquisition, Technology, and 
        Logistics to require a military department whose 
        participation in a joint acquisition program has been 
        approved for termination or substantial reduction to 
        continue to provide some or all of the funding 
        necessary for the acquisition program to be continued 
        in an efficient manner.

           *       *       *       *       *       *       *

Sec. 2323. Contract goal for small disadvantaged businesses and certain 
                    institutions of higher education

  (a) Goal.--(1) Except as provided in subsection (d), a goal 
of 5 percent of the amount described in subsection (b) shall be 
the objective of the Department of Defense, the Coast Guard, 
and the National Aeronautics and Space Administration in each 
fiscal year for the total combined amount obligated for 
contracts and subcontracts entered into with--
          (A) * * *

           *       *       *       *       *       *       *

          (C) minority institutions (as defined in section 
        [1046(3)] 365(3) of the Higher Education Act of 1965 
        ([20 U.S.C. 1135d-5(3)] 20 U.S.C. 1067k))[, which, for 
        the purposes of this section, shall include Hispanic-
        serving institutions (as defined in section 316(b)(1) 
        of such Act (20 U.S.C. 1059c(b)(1)))].

           *       *       *       *       *       *       *

    CHAPTER 138--COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER 
COUNTRIES

           *       *       *       *       *       *       *

SUBCHAPTER II--OTHER COOPERATIVE AGREEMENTS

           *       *       *       *       *       *       *

Sec. 2350a. Cooperative research and development projects: allied 
                    countries

  (a) * * *
  (b) Requirement That Projects Improve Conventional Defense 
Capabilities.--(1) * * *
  (2) The authority of the Secretary to make a determination 
under paragraph (1) may only be delegated to the Deputy 
Secretary of Defense or the [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics.

           *       *       *       *       *       *       *

  (e) Cooperative Opportunities Document.--(1)(A) In order to 
ensure that opportunities to conduct cooperative research and 
development projects are considered at an early point during 
the formal development review process of the Department of 
Defense in connection with any planned project of the 
Department, the [Under Secretary of Defense for Acquisition and 
Technology] Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall prepare an arms cooperation 
opportunities document with respect to that project for review 
by the Defense Acquisition Board at formal meetings of the 
Board.

           *       *       *       *       *       *       *

  (2) An arms cooperation opportunities document referred to in 
paragraph (1) shall include the following:
          (A) * * *
          (B) If a project similar to the one under 
        consideration by the Department of Defense is in 
        development or production by one or more major allies 
        of the United States or NATO organizations, an 
        assessment by the [Under Secretary of Defense for 
        Acquisition and Technology] Under Secretary of Defense 
        for Acquisition, Technology, and Logistics as to 
        whether that project could satisfy, or could be 
        modified in scope so as to satisfy, the military 
        requirements of the project of the United States under 
        consideration by the Department of Defense.

           *       *       *       *       *       *       *

  (f) Reports to Congress.--(1) Not later than March 1 of each 
year, the [Under Secretary of Defense for Acquisition and 
Technology] Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to the Speaker of the 
House of Representatives and the Committees on Armed Services 
and Appropriations of the Senate a report on cooperative 
research and development projects under this section. Each such 
report shall include--
          (A) * * *

           *       *       *       *       *       *       *

CHAPTER 139--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *

Sec. 2366. Major systems and munitions programs: survivability and 
                    lethality testing required before full-scale 
                    production

  (a) * * *

           *       *       *       *       *       *       *

  (c) Waiver Authority.--(1) The Secretary of Defense may waive 
the application of the survivability and lethality tests of 
this section to a covered system, munitions program, missile 
program, or covered product improvement program if the 
Secretary, before the system or program enters [engineering and 
manufacturing development] system development and 
demonstration, certifies to Congress that live-fire testing of 
such system or program would be unreasonably expensive and 
impractical.
  (2) In the case of a covered system (or covered product 
improvement program for a covered system), the Secretary may 
waive the application of the survivability and lethality tests 
of this section to such system or program and instead allow 
testing of the system or program in combat by firing munitions 
likely to be encountered in combat at components, subsystems, 
and subassemblies, together with performing design analyses, 
modeling and simulation, and analysis of combat data. Such 
alternative testing may not be carried out in the case of any 
covered system (or covered product improvement program for a 
covered system) unless the Secretary certifies to Congress, 
before the system or program enters [engineering and 
manufacturing development] system development and 
demonstration, that the survivability and lethality testing of 
such system or program otherwise required by this section would 
be unreasonably expensive and impracticable.

           *       *       *       *       *       *       *

CHAPTER 140--PROCUREMENT OF COMMERCIAL ITEMS

           *       *       *       *       *       *       *

Sec. 2375. Relationship of commercial item provisions to other 
                    provisions of law

  (a) * * *
  (b) List of Laws Inapplicable to Contracts for the 
Acquisition of Commercial Items.--No contract for the 
procurement of a commercial item entered into by the head of an 
agency shall be subject to any law properly listed in the 
Federal Acquisition Regulation (pursuant to section 34 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 430)).

           *       *       *       *       *       *       *

Sec. 2376. Definitions

  In this chapter:
          (1) The terms ``commercial item'', ``nondevelopmental 
        item'', ``component'', and ``commercial component'' 
        have the meanings provided in section 4 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403).

           *       *       *       *       *       *       *

           CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS

Sec.
2381.  Contracts: regulations for bids.
2382.  Contracts for services to be performed outside the United States.
     * * * * * * *

Sec. 2382. Contracts for services to be performed outside the United 
                    States

  The Secretary of Defense may enter into contracts to employ 
individuals or organizations to perform services in countries 
other than the United States without regard to laws regarding 
the negotiation, making, and performance of contracts and 
performance of work in the United States. Individuals employed 
by contract to perform such services shall not by virtue of 
such employment be considered to be employees of the United 
States Government for purposes of any law administered by the 
Office of Personnel Management, but the Secretary may determine 
the applicability to such individuals of any other law 
administered by the Secretary concerning the employment of such 
individuals in countries other than the United States.

           *       *       *       *       *       *       *

Sec. 2399. Operational test and evaluation of defense acquisition 
                    programs

  (a) * * *
  (b) Operational Test and Evaluation.--(1) * * *

           *       *       *       *       *       *       *

  (3) The Director shall submit each report under paragraph (2) 
to the Secretary of Defense, the [Under Secretary of Defense 
for Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics, and the congressional 
defense committees. Each such report shall be submitted to 
those committees in precisely the same form and with precisely 
the same content as the report originally was submitted to the 
Secretary and Under Secretary and shall be accompanied by such 
comments as the Secretary may wish to make on the report.

           *       *       *       *       *       *       *

Sec. 2400. Low-rate initial production of new systems

  (a) Determination of Quantities To Be Procured for Low-Rate 
Initial Production.--(1) In the course of the development of a 
major system, the determination of what quantity of articles of 
that system should be procured for low-rate initial production 
(including the quantity to be procured for preproduction 
verification articles) shall be made--
          (A) when the milestone [II] B decision with respect 
        to that system is made; and

           *       *       *       *       *       *       *

  (2) In this section, the term ``milestone [II] B decision'' 
means the decision to approve the [engineering and 
manufacturing development] system development and demonstration 
of a major system by the official of the Department of Defense 
designated to have the authority to make that decision.

           *       *       *       *       *       *       *

  (4) The quantity of articles of a major system that may be 
procured for low-rate initial production may not be less than 
one operationally configured production unit unless another 
quantity is established at the milestone [II] B decision.
  (5) The Secretary of Defense shall include a statement of the 
quantity determined under paragraph (1) in the first SAR 
submitted with respect to the program concerned after that 
quantity is determined. If the quantity exceeds 10 percent of 
the total number of articles to be produced, as determined at 
the milestone [II] B decision with respect to that system, the 
Secretary shall include in the statement the reasons for such 
quantity. For purposes of this paragraph, the term ``SAR'' 
means a Selected Acquisition Report submitted under section 
2432 of this title.

           *       *       *       *       *       *       *

Sec. 2410f. Debarment of persons convicted of fraudulent use of ``Made 
                    in America'' labels

  (a) If the Secretary of Defense determines that a person has 
been convicted of intentionally affixing a label bearing a 
``Made in America'' inscription, or another inscription with 
the same meaning, to any product sold in or shipped to the 
United States that is not made in America, the Secretary shall 
determine, not later than 90 days after determining that the 
person has been so convicted, whether the person should be 
debarred from contracting with the Department of Defense.

           *       *       *       *       *       *       *

CHAPTER 144--MAJOR DEFENSE ACQUISITION PROGRAMS

           *       *       *       *       *       *       *

Sec. 2432. Selected Acquisition Reports

  (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) The Secretary of Defense may waive the requirement for 
submission of Selected Acquisition Reports for a program for a 
fiscal year if--
          (i) the program has not entered [engineering and 
        manufacturing development] system development and 
        demonstration;

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  (3) In addition to the material required by paragraphs (1) 
and (2), each Selected Acquisition Report for the first quarter 
of a fiscal year shall include the following:
          (A) A full life-cycle cost analysis for each major 
        defense acquisition program included in the report that 
        is in the [engineering and manufacturing development] 
        system development and demonstration stage or has 
        completed that stage. The Secretary of Defense shall 
        ensure that this subparagraph is implemented in a 
        uniform manner, to the extent practicable, throughout 
        the Department of Defense.

           *       *       *       *       *       *       *

  (h)(1) Total program reporting under this section shall apply 
to a major defense acquisition program when funds have been 
appropriated for such and the Secretary of Defense has decided 
to proceed to [engineering and manufacturing development] 
system development and demonstration of such program. Reporting 
may be limited to the development program as provided in 
paragraph (2) before a decision is made by the Secretary of 
Defense to proceed to [engineering and manufacturing 
development] system development and demonstration if the 
Secretary notifies the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives of the intention to submit a limited report 
under this subsection not less than 15 days before a report is 
due under this section.

           *       *       *       *       *       *       *

Sec. 2434. Independent cost estimates; operational manpower 
                    requirements

  (a) Requirement for Approval.--The Secretary of Defense may 
not approve the [engineering and manufacturing development] 
system development and demonstration, or the production and 
deployment, of a major defense acquisition program unless an 
independent estimate of the full life-cycle cost of the program 
and a manpower estimate for the program have been considered by 
the Secretary.

           *       *       *       *       *       *       *

Sec. 2435. Baseline description

  (a) * * *
  (b) Funding Limit.--No amount appropriated or otherwise made 
available to the Department of Defense for carrying out a major 
defense acquisition program may be obligated after the program 
enters [engineering and manufacturing development] system 
development and demonstration without an approved baseline 
description unless such obligation is specifically approved by 
the [Under Secretary of Defense for Acquisition and Technology] 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics.
  (c) Schedule.--A baseline description for a major defense 
acquisition program shall be prepared under this section--
          (1) before the program enters [demonstration and 
        validation] system development and demonstration;
          (2) before the program enters [engineering and 
        manufacturing development] production and deployment; 
        and
          (3) before the program enters [production and 
        deployment] full rate production.
  (d) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the following:
          (1) * * *
          (2) The submission to the Secretary of the military 
        department concerned and the [Under Secretary of 
        Defense for Acquisition and Technology] Under Secretary 
        of Defense for Acquisition, Technology, and Logistics 
        by the program manager for a program for which there is 
        an approved baseline description under this section of 
        reports of deviations from the baseline of the cost, 
        schedule, performance, supportability, or any other 
        factor of the program.

           *       *       *       *       *       *       *

  CHAPTER 146--CONTRACTING FOR PERFORMANCE OF CIVILIAN COMMERCIAL OR 
                       INDUSTRIAL TYPE FUNCTIONS

Sec.
2460.  Definition of depot-level maintenance and repair.
[2461.  Commercial or industrial type functions: required studies and 
          reports before conversion to contractor performance.]
2461.  Commercial or industrial type functions: required studies and 
          reports before conversion to, or initiation of, contractor or 
          civilian employee performance.
     * * * * * * *
2461b.  Use of private sector to perform commercial or industrial type 
          function: contractor reporting requirements.
     * * * * * * *
[2468.  Military installations: authority of base commanders over 
          contracting for commercial activities.]
     * * * * * * *

[Sec. 2461. Commercial or industrial type functions: required studies 
                    and reports before conversion to contractor 
                    performance]

Sec. 2461. Commercial or industrial type functions: required studies 
                    and reports before conversion to, or initiation of, 
                    contractor or civilian employee performance

  (a) Reporting and Analysis Requirements as Precondition to 
[Change in Performance.--] Change in or Initiation of 
Performance.--(1) A commercial or industrial type function of 
the Department of Defense that, as of October 1, 1980, was 
being performed by Department of Defense civilian employees may 
not be changed to performance by the private sector until the 
Secretary of Defense fully complies with the reporting and 
analysis requirements specified in subsections (b) and (c).
  (2) In the case of a commercial or industrial type function 
of the Department of Defense not previously performed by 
Department of Defense civilian employees or a contractor, the 
performance of the function by the private sector may not be 
initiated until--
          (A) the Secretary of Defense conducts a cost 
        comparison examination that employs the most efficient 
        organization process described in Office of Management 
        and Budget Circular A-76, and its supplemental handbook 
        or any successor administrative regulation or policy; 
        and
          (B) a determination is made that performance of the 
        function by the private sector would be less costly 
        over the term of the contract than performance by 
        Department of Defense civilian employees during that 
        same period.
  (3) This subsection does not apply to the following 
contracts:
          (A) A contract between the Department of Defense and 
        the private sector for work with a contract value of 
        less than $1,000,000 so long as the work was not 
        divided, modified, or in any way changed for the 
        purpose of avoiding the requirements of this section.
          (B) A contract for special studies and analyses, 
        construction services, architectural services, 
        engineering services, medical services, scientific and 
        technical services related to (but not in support of) 
        research and development, and depot-level maintenance 
        and repair services.
  (4) The Secretary of Defense may waive the applicability of 
this section if--
          (A) the written waiver is prepared by the Secretary 
        of Defense, or the relevant Assistant Secretary or 
        agency head; and
          (B) the written waiver is accompanied by a detailed 
        determination that--
                  (i) there is no reasonable expectation that 
                civilian employees would win a public-private 
                competition for the function; and
                  (ii) the issuance of a waiver would not serve 
                to reduce significantly the level of or quality 
                of competition in the future award or 
                performance of work.
  (5) The Secretary of Defense shall publish a copy of the 
waiver in the Federal Register.
  (b) Notification and Elements of Analysis.--(1) * * *

           *       *       *       *       *       *       *

  (5)(A) A commercial or industrial type function of the 
Department of Defense may not be changed to performance by the 
private sector unless, as a result of the cost comparison 
examination required under paragraph (3)(A), that employed the 
most efficient organization process described in Office of 
Management and Budget Circular A-76 or any successor 
administrative regulation or policy, at least a 10-percent cost 
savings would be achieved by performance of the function by the 
private sector over the term of the contract.
  (B) The cost savings requirement specified in subparagraph 
(A) does not apply to any contracts for special studies and 
analyses, construction services, architectural services, 
engineering services, medical services, scientific and 
technical services related to (but not in support of) research 
and development, and depot-level maintenance and repair 
services.
  (C) The Secretary of Defense may waive the cost savings 
requirement if--
          (i) the written waiver is prepared by the Secretary 
        of Defense, or the relevant Assistant Secretary or 
        agency head; and
          (ii) the written waiver is accompanied by a detailed 
        determination that national security interests are so 
        compelling as to preclude compliance with the 
        requirement for a cost comparison examination.
  (D) The Secretary of Defense shall publish a copy of the 
waiver in the Federal Register.

           *       *       *       *       *       *       *

  [(d) Waiver for Small Functions.--Subsections (a) through (c) 
and subsection (g) shall not apply to a commercial or 
industrial type function of the Department of Defense that is 
being performed by 50 or fewer Department of Defense civilian 
employees.]
  (d) Equity in Public-Private Competition.--(1) For any fiscal 
year in which commercial or industrial type functions of the 
Department of Defense performed by Department of Defense 
civilian employees are studied for possible change to private 
sector performance, the Secretary of Defense shall subject 
approximately the same number of positions held by non-Federal 
employees under contracts with the Department of Defense to the 
same cost comparison examination described in subsection 
(b)(3), subject to the completion of the terms of those 
contracts.
  (2) To the extent possible, the Secretary of Defense should, 
in complying with this subsection, select those contract 
positions held by non-Federal employees under contracts with 
the Department of Defense that are associated with commercial 
or industrial type functions that are, or have been, performed 
at least in part by Department of Defense civilian employees at 
any time on or after October 1, 1980.
  (3) Notwithstanding any limitation on the number of 
Department of Defense civilian employees established by law, 
regulation, or policy, the Department of Defense may continue 
to employ, or may hire, such civilian employees as are 
necessary to perform functions acquired through the public-
private competitions required by this subsection or any other 
provision of this section.

           *       *       *       *       *       *       *

Sec. 2461a. Development of system for monitoring cost savings resulting 
                    from workforce reductions

  (a) Workforce Review Defined.--In this section, the term 
``workforce review'', with respect to a function of the 
Department of Defense performed by Department of Defense 
civilian employees, means a review conducted under Office of 
Management and Budget Circular A-76 (or any successor 
administrative regulation or policy), the Strategic Sourcing 
Program Plan of Action (or any successor Department of Defense 
guidance or directive), or any other authority to determine 
whether the function--
          (1) * * *
          (2) should be reorganized or otherwise reengineered 
        to improve the [effeciency] efficiency or effectiveness 
        of the performance of the function, with a resulting 
        decrease in the number of Department of Defense 
        civilian employees performing the function.
  (b) System for Monitoring Performance.--(1) The Secretary of 
Defense shall establish a system for monitoring the 
performance, including the cost of performance, of each 
function of the Department of Defense that, after [the date of 
the enactment of this section,] October 30, 2000, is the 
subject of a workforce review.

           *       *       *       *       *       *       *

Sec. 2461b. Use of private sector to perform commercial or industrial 
                    type function: contractor reporting requirements

  (a) Definitions.--In this section:
          (1) Contractor.--The term ``contractor'' includes a 
        subcontractor.
          (2) Secretary concerned.--The term ``Secretary 
        concerned'' includes the Secretary of Defense with 
        respect to matters concerning the Defense Agencies.
  (b) General Reporting Requirement.--The Secretary concerned 
shall require each defense contractor to report to secure 
websites established and maintained by the Defense Agencies and 
military departments the same contractor direct and indirect 
manhour and cost information collected by the Department of the 
Army pursuant to part 668 of title 32, Code of Federal 
Regulations, as in effect on December 26, 2000, in terms of 
functions performed, appropriations funding the contract, and 
identification of the subordinate organizational elements 
within the Defense Agency or military department directly 
overseeing the contractor performance. The indirect information 
reported may comprise annualized rates for an entire company, 
which are not apportioned by specific contracts.
  (c) Assignment of Reporting Responsibility.--The Defense 
Agency or military department containing the major 
organizational element receiving or reviewing the work 
performed by a defense contractor shall be responsible for 
collecting the data required by this section, even where all or 
part of the contracted work is funded by appropriations not 
controlled by the Secretary concerned. If the Defense Agency or 
military department containing the major organizational element 
receiving or reviewing the work performed by the contractor is 
different from the Defense Agency or military department 
containing the contracting activity, the Secretary concerned 
shall ensure that the contractor reports the required 
information to the Defense Agency or military department 
containing the major organizational element receiving or 
reviewing the work performed by the contractor.
  (d) Timing of Contractor Reporting to Assure Data Quality.--
The Secretary concerned shall require contractors to report the 
information described in subsection (c) to the secure web-site 
contemporaneous with submission of a request for payment (for 
example, voucher, invoice, or request for progress payment) or 
not later than quarterly.
  (e) Contract Requirement Effective Date.--The Secretary 
concerned shall include the reporting requirement described in 
this section in each contract solicitation issued, contract 
awarded, and bilateral modification of an existing contract 
executed, by the Secretary concerned after October 1, 2001.
  (f) Contractor Self-Exemption.--The Secretary concerned shall 
exempt a contractor from the data collection requirement 
imposed by this section if the contractor certifies in writing 
that the contractor does not have an internal system for 
aggregating billable hours in the direct or indirect pools, or 
an internal payroll accounting system, and does not otherwise 
have to ever provide this information to the Government. A 
contractor may not claim an exemption on the sole basis that 
the contractor is a foreign contractor, that services are 
provided pursuant to a firm fixed price or time and materials 
contract or similar instrument, that the payroll system of the 
contractor is performed by another person, or that the 
contractor has too many subcontractors. The validity of this 
certification is the only requirement in this section subject 
to audit and verification by the Secretary concerned.
  (g) Report to Congress and Comptroller General Actions.--The 
Secretary concerned shall submit the information collected 
under subsection (c) to Congress not later than October 1 of 
each year for the prior fiscal year. Not later than April 1 of 
each year, the Comptroller General will review the information 
submitted for the prior fiscal year to assess compliance with 
this section and the effectiveness of Department of Defense 
initiatives to integrate this information into its budgeting 
process.
  (h) Publication of Reports.--After completion of the 
Comptroller General review under subsection (h), the Secretary 
concerned shall take steps to make the nonproprietary 
compilations of the data public on web sites, using the 
publication standard expressed by the Department of the Army in 
part 668 of title 32, Code of Federal Regulations.

           *       *       *       *       *       *       *

Sec. 2464. Core logistics capabilities

  (a) Necessity for Core Logistics Capabilities.--(1) * * *

           *       *       *       *       *       *       *

  (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] nuclear refueling of 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 
forces to fulfill the strategic and contingency plans prepared 
by the Chairman of the Joint Chiefs of Staff under section 
153(a) of this title.

           *       *       *       *       *       *       *

Sec. 2467. Cost comparisons: inclusion of retirement costs; 
                    consultation with employees; waiver of comparison

  (a) Requirement To Include Retirement Costs.--(1) * * *
  (2) The retirement system costs of the Department of Defense 
shall include (to the extent applicable) the following:
          (A) The cost of the Federal Employees' Retirement 
        System, valued by using the normal-cost percentage (as 
        defined by section 8401(23) of title 5[, United States 
        Code]).
          (B) The cost of the Civil Service Retirement System 
        under subchapter III of chapter 83 of [such] title 5.
          (C) The cost of the thrift savings plan under 
        subchapter III of chapter 84 of [such] title 5.

           *       *       *       *       *       *       *

  (b) Requirement To Consult DOD Employees.--(1) * * *
  (2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 
of title 5, [United States Code,] consultation with 
representatives of that labor organization shall satisfy the 
consultation requirement in paragraph (1).

           *       *       *       *       *       *       *

[Sec. 2468. Military installations: authority of base commanders over 
                    contracting for commercial activities

  [(a) Authority of Base Commander.--The Secretary of Defense 
shall direct that the commander of each military installation 
shall have the authority and the responsibility to enter into 
contracts in accordance with this section for the performance 
of a commercial activity on the military installation.
  [(b) Yearly Duties of Base Commander.--To enter into a 
contract under subsection (a) for a fiscal year, the commander 
of a military installation shall--
          [(1) prepare an inventory for that fiscal year of 
        commercial activities carried out by Government 
        personnel on the military installation;
          [(2) decide which commercial activities shall be 
        reviewed under the procedures and requirements of 
        Office of Management and Budget Circular A-76 (or any 
        successor administrative regulation or policy); and
          [(3) conduct a solicitation for contracts for the 
        performance of those commercial activities selected for 
        conversion to contractor performance under the Circular 
        A-76 process.
  [(c) Limitations.--(1) The Secretary of Defense shall 
prescribe regulations under which the commander of each 
military installation may exercise the authority and 
responsibility provided under subsection (a).
  [(2) The authority and responsibility provided under 
subsection (a) are subject to the authority, direction, and 
control of the Secretary.
  [(d) Assistance to Displaced Employees.--If the commander of 
a military installation enters into a contract under subsection 
(a), the commander shall, to the maximum extent practicable, 
assist in finding suitable employment for any employee of the 
Department of Defense who is displaced because of that 
contract.
  [(e) Military Installation Defined.--In this section, the 
term ``military installation'' means a base, camp, post, 
station, yard, center, or other activity under the jurisdiction 
of the Secretary of a military department which is located 
within the United States, the Commonwealth of Puerto Rico, or 
Guam.
  [(f) Termination of Authority.--The authority provided to 
commanders of military installations by subsection (a) shall 
terminate on September 30, 1995.]

           *       *       *       *       *       *       *

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

  (a) * * *

           *       *       *       *       *       *       *

  (e) Availability of Excess Equipment to Private-Sector 
Partners.--Equipment or facilities of a Center of Industrial 
and Technical Excellence may be made available for use by a 
private-sector entity under this section only if--
          (1) * * *
          (2) the private-sector entity agrees--
                  (A) * * *
                  (B) to hold harmless and indemnify the United 
                States from--
                          (i) any claim for damages or injury 
                        to any person or property arising out 
                        of the use of the equipment or 
                        facilities, except [in a case of 
                        willful conduct or gross negligence] 
                        under the circumstances described in 
                        section 2563(c)(3) of this title; and

           *       *       *       *       *       *       *

  (g) Pilot Project for the Exclusion of Certain Expenditures 
From Limitation on Private Sector Performance of Depot-Level 
Maintenance.--
          (1) Amounts excluded.--Amounts expended out of funds 
        described in paragraph (2) for the performance of a 
        depot-level maintenance and repair workload by non-
        Federal Government personnel at a Center of Industrial 
        and Technical Excellence named in paragraph (4) shall 
        not be counted for the purposes of section 2466(a) of 
        this title if the personnel are provided by private 
        industry pursuant to a public-private partnership 
        undertaken by the Center under subsection (b).
          (2) Funds for fiscal years 2002 through 2006.--The 
        funds referred to in paragraph (1) are funds available 
        to the Air Force for depot-level maintenance and repair 
        workloads for fiscal year 2002, 2003, 2004, 2005, or 
        2006, and shall not exceed 10 percent of the total 
        funds available in any single year.
          (3) Reporting requirements.--All funds covered by 
        paragraph (1) shall be included as a separate item in 
        the reports required under paragraphs (1), (2), and (3) 
        of section 2466(e) of this title.
          (4) Covered centers.--(A) The Centers of Industrial 
        and Technical Excellence referred to in paragraph (1) 
        are the following:
                  (i) Oklahoma City Air Logistics Center, 
                Oklahoma.
                  (ii) Ogden Air Logistics Center, Utah.
                  (iii) Warner-Robins Air Logistics Center, 
                Georgia.
          (B) The Secretary of the Air Force shall designate as 
        a Center of Industrial and Technical Excellence under 
        this section any of the air logistics centers named in 
        subparagraph (A) that have not previously been so 
        designated and shall specify the core competencies for 
        which the designation is made.

           *       *       *       *       *       *       *

 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
REINVESTMENT, AND DEFENSE CONVERSION

           *       *       *       *       *       *       *

SUBCHAPTER II--POLICIES AND PLANNING

           *       *       *       *       *       *       *

Sec. 2503. National defense program for analysis of the technology and 
                    industrial base

  (a) * * *
  (b) Supervision of Program.--The Secretary of Defense shall 
carry out the program through the [Under Secretary of Defense 
for Acquisition] Under Secretary of Defense for Acquisition, 
Technology, and Logistics. In carrying out the program, the 
Under Secretary shall consult with the Secretary of Energy, the 
Secretary of Commerce, and the Secretary of Labor.

           *       *       *       *       *       *       *

SUBCHAPTER IV--MANUFACTURING TECHNOLOGY

           *       *       *       *       *       *       *

Sec. 2521. Manufacturing Technology Program

  (a) Establishment.--The Secretary of Defense shall establish 
a Manufacturing Technology Program to further the national 
security objectives of section 2501(a) of this title through 
the development and application of advanced manufacturing 
technologies and processes that will reduce the acquisition and 
supportability costs of defense weapon systems and reduce 
manufacturing and repair cycle times across the life cycles of 
such systems. The Secretary shall use the joint planning 
process of the directors of the Department of Defense 
laboratories in establishing the program. The [Under Secretary 
of Defense for Acquisition and Technology] Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall 
administer the program.

           *       *       *       *       *       *       *

   SUBCHAPTER V--MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

Sec.
2531.  Defense memoranda of understanding and related agreements.
     * * * * * * *
2533a.  Requirement to buy certain articles from American sources; 
          exceptions.
     * * * * * * *

Sec. 2533a. Requirement to buy certain articles from American sources; 
                    exceptions

  (a) Requirement.--Except as provided in subsections (c) 
through (g), funds appropriated or otherwise available to the 
Department of Defense may not be used for the procurement of an 
item described in subsection (b) if the item is not grown, 
reprocessed, reused, or produced in the United States.
  (b) Covered Items.--An item referred to in subsection (a) is 
any of the following:
          (1) An article or item of--
                  (A) food;
                  (B) clothing;
                  (C) tents, tarpaulins, parachutes, or covers;
                  (D) cotton and other natural fiber products, 
                woven silk or woven silk blends, spun silk yarn 
                for cartridge cloth, synthetic fabric or coated 
                synthetic fabric (including all textile fibers 
                and yarns that are for use in such fabrics), 
                canvas products, or wool (whether in the form 
                of fiber or yarn or contained in fabrics, 
                materials, or manufactured articles); or
                  (E) any item of individual equipment 
                manufactured from or containing such fibers, 
                yarns, fabrics, or materials.
          (2) Specialty metals, including stainless steel 
        flatware.
          (3) Hand or measuring tools.
  (c) Exception.--The Secretary of Defense or the Secretary of 
the military department concerned may waive the requirement in 
subsection (a) if--
          (1) such Secretary determines that satisfactory 
        quality and sufficient quantity of any such article or 
        item described in subsection (b)(1) or specialty metals 
        (including stainless steel flatware) grown, 
        reprocessed, reused, or produced in the United States 
        cannot be procured as and when needed at United States 
        market prices;
          (2) such Secretary has provided notice to the public 
        regarding the waiver;
          (3) such Secretary has notified the Committees on 
        Appropriations, Armed Services, and Small Business of 
        the House of Representatives and the Senate regarding 
        the waiver and provided a justification to such 
        committees for the waiver; and
          (4) 30 days have elapsed since the date of the 
        notification of such committees.
  (d) Exception for Certain Procurements Outside the United 
States.--Subsection (a) does not apply to the following:
          (1) Procurements outside the United States in support 
        of combat operations.
          (2) Procurements by vessels in foreign waters.
          (3) Emergency procurements or procurements of 
        perishable foods by an establishment located outside 
        the United States for the personnel attached to such 
        establishment.
  (e) Exception for Specialty Metals and Chemical Warfare 
Protective Clothing.--Subsection (a) does not preclude the 
procurement of specialty metals or chemical warfare protective 
clothing produced outside the United States if--
          (1) such procurement is necessary--
                  (A) to comply with agreements with foreign 
                governments requiring the United States to 
                purchase supplies from foreign sources for the 
                purposes of offsetting sales made by the United 
                States Government or United States firms under 
                approved programs serving defense requirements; 
                or
                  (B) in furtherance of agreements with foreign 
                governments in which both such governments 
                agree to remove barriers to purchases of 
                supplies produced in the other country or 
                services performed by sources of the other 
                country; and
          (2) any such agreement with a foreign government 
        complies, where applicable, with the requirements of 
        section 36 of the Arms Export Control Act (22 U.S.C. 
        2776) and with section 2457 of this title.
  (f) Exception for Certain Foods.--Subsection (a) does not 
preclude the procurement of foods manufactured or processed in 
the United States.
  (g) Exception for Small Purchases.--Subsection (a) does not 
apply to purchases for amounts not greater than the simplified 
acquisition threshold referred to in section 2304(g) of this 
title.
  (h) Applicability to Contracts and Subcontracts for 
Procurement of Commercial Items.--This section is applicable to 
contracts and subcontracts for the procurement of commercial 
items notwithstanding section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430).
  (i) Geographic Coverage.--In this section, the term ``United 
States'' includes the commonwealths, territories, and 
possessions of the United States.
  (j) Exception for Commissaries, Exchanges, and Other 
Nonappropriated Fund Instrumentalities.--Subsection (a) does 
not apply to items purchased for resale purposes in 
commissaries, military exchanges, or nonappropriated fund 
instrumentalities operated by the military departments or the 
Department of Defense.

Sec. 2534. Miscellaneous limitations on the procurement of goods other 
                    than United States goods

  (a) * * *

           *       *       *       *       *       *       *

  (i) Implementation of Certain Waiver Authority.--(1) * * *

           *       *       *       *       *       *       *

  (3) The waiver authority described in paragraph (2) may not 
be delegated below the [Under Secretary of Defense for 
Acquisition and Technology] Under Secretary of Defense for 
Acquisition, Technology, and Logistics.

           *       *       *       *       *       *       *

Sec. 2535. Defense Industrial Reserve

  (a) Declaration of Purpose and Policy.--It is the [intent of 
Congress] intent of Congress--
          (1) to provide a comprehensive and continuous program 
        for the future safety and for the defense of the United 
        States by providing adequate measures whereby an 
        essential nucleus of Government-owned industrial plants 
        and an industrial reserve of machine tools and other 
        industrial manufacturing equipment may be assured for 
        immediate use to supply the needs of the [Armed Forces] 
        armed forces in time of national emergency or in 
        anticipation thereof;
          (2) that such Government-owned plants and such 
        reserve shall not exceed in number or kind the minimum 
        requirements for immediate use in time of national 
        emergency, and that any such items which shall become 
        excess to such requirements shall be disposed of as 
        expeditiously as possible;
          (3) that to the maximum extent practicable, reliance 
        will be placed upon private industry for support of 
        defense production; and
          (4) that machine tools and other industrial 
        manufacturing equipment may be held in plant equipment 
        packages or in a general reserve to maintain a high 
        state of readiness for production of critical items of 
        defense materiel, to provide production capacity not 
        available in private industry for defense materiel, or 
        to assist private industry in time of national 
        disaster.
  (b) Powers and Duties of the Secretary of Defense.--(1) To 
execute the policy set forth [in this section, the Secretary is 
authorized and directed to--] in subsection (a), the Secretary 
of Defense shall--
          (A) determine which industrial plants and 
        installations (including machine tools and other 
        industrial manufacturing equipment) should become a 
        part of the [defense industrial reserve] Defense 
        Industrial Reserve;

           *       *       *       *       *       *       *

  (c) Definitions.--In this section:
          [(1) The term ``Secretary'' means Secretary of 
        Defense.]
          [(2)] (1) The term ``Defense Industrial Reserve'' 
        [means] means--
                  (A) a general reserve of industrial 
                manufacturing equipment, including machine 
                tools, selected by the Secretary of Defense for 
                retention for national defense or for other 
                emergency use;
                  (B) those industrial plants and installations 
                held by and under the control of the Department 
                of Defense in active or inactive status, 
                including Government-owned/Government-operated 
                plants and installations and Government-owned/
                contractor-operated plants and installations 
                which are retained for use in their entirety, 
                or in part, for production of military weapons 
                systems, munitions, components, or supplies; 
                and
                  (C) those industrial plants and installations 
                under the control of the Secretary which are 
                not required for the immediate need of any 
                department or agency of the Government and 
                which should be sold, leased, or otherwise 
                disposed of.
          [(3)] (2) The term ``plant equipment package'' means 
        a complement of active and idle machine tools and other 
        industrial manufacturing equipment held by and under 
        the control of the Department of Defense and approved 
        by the Secretary for retention to produce particular 
        defense materiel or defense supporting items at a 
        specific level of output in the event of emergency.

           *       *       *       *       *       *       *

SUBCHAPTER VII--CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

           *       *       *       *       *       *       *

Sec. 2541c. Transferability, additional limitations, and definition

  The following provisions of [subtitle] subchapter VI of this 
chapter apply to guarantees issued under this [subtitle] 
subchapter:
          (1) * * *

           *       *       *       *       *       *       *

        CHAPTER 152--ISSUE OF SUPPLIES, SERVICES, AND FACILITIES

Sec.
2551.  Equipment and barracks: national veterans' organizations.
     * * * * * * *
[2557.  Excess nonlethal supplies: humanitarian relief.]
2557.  Excess nonlethal supplies: availability for homeless veteran 
          initiatives and humanitarian relief.
     * * * * * * *
2564.  Provision of support for certain sporting events.
[2555.] 2565.  Nuclear test monitoring equipment: furnishing to foreign 
          governments.
     * * * * * * *

Sec. 2554. Equipment and other services: Boy Scout Jamborees

  (a) * * *

           *       *       *       *       *       *       *

  (d) The Secretary of Defense is hereby authorized under such 
regulations as he may prescribe, to provide, without expense to 
the United States Government, transportation from the United 
States or military commands overseas, and return, on vessels of 
the Military Sealift Command or aircraft of the [Military 
Airlift Command] Air Mobility Command for (1) those Boy Scouts, 
Scouters, and officials certified by the Boy Scouts of America, 
as representing the Boy Scouts of America at any national or 
world Boy Scout Jamboree, and (2) the equipment and property of 
such Boy Scouts, Scouters, and officials and the property 
loaned to the Boy Scouts of America, by the Secretary of 
Defense pursuant to this section to the extent that such 
transportation will not interfere with the requirements of 
military operations.

           *       *       *       *       *       *       *

Sec. 2555. Transportation services: international Girl Scout events

  (a) The Secretary of Defense is authorized, under such 
regulations as he may prescribe, to provide, without expense to 
the United States Government, transportation from the United 
States or military commands overseas, and return, on vessels of 
the Military Sealift Command or aircraft of the [Military 
Airlift Command] Air Mobility Command for (1) those Girl Scouts 
and officials certified by the Girl Scouts of the United States 
of America as representing the Girl Scouts of the United States 
of America at any International World Friendship Event or 
Troops on Foreign Soil meeting which is endorsed and approved 
by the National Board of Directors of the Girl Scouts of the 
United States of America and is conducted outside of the United 
States, (2) United States citizen delegates coming from outside 
of the United States to triennial meetings of the National 
Council of the Girl Scouts of the United States of America, and 
(3) the equipment and property of such Girl Scouts and 
officials, to the extent that such transportation will not 
interfere with the requirements of military operations.

           *       *       *       *       *       *       *

[Sec. 2557. Excess nonlethal supplies: humanitarian relief]

Sec. 2557. Excess nonlethal supplies: availability for homeless veteran 
                    initiatives and humanitarian relief

  (a)(1) The Secretary of Defense may make available for 
humanitarian relief purposes any nonlethal excess supplies of 
the Department of Defense.
  (2) The Secretary of Defense may make excess clothing, shoes, 
sleeping bags, and related nonlethal excess supplies available 
to the Secretary of Veterans Affairs for distribution to 
homeless veterans and programs assisting homeless veterans. The 
transfer of nonlethal excess supplies to the Secretary of 
Veterans Affairs under this paragraph shall be without 
reimbursement.

           *       *       *       *       *       *       *

Sec. 2563. Articles and services of industrial facilities: sale to 
                    persons outside the Department of Defense

  (a) * * *

           *       *       *       *       *       *       *

  (c) Conditions for Sales.--(1) A sale of articles or services 
may be made under this section only if--
          (A) * * *
          (B) the purchaser agrees to hold harmless and 
        indemnify the United States, except [in any case of 
        willful misconduct or gross negligence] as provided in 
        paragraph (3), from any claim for damages or injury to 
        any person or property arising out of the articles or 
        services;

           *       *       *       *       *       *       *

  (3) Paragraph (1)(B) does not apply in any case of willful 
misconduct or gross negligence or in the case of a claim by a 
purchaser of articles or services under this section that 
damages or injury arose from the failure of the Government to 
comply with quality, schedule, or cost performance requirements 
in the contract to provide the articles or services.

           *       *       *       *       *       *       *

[Sec. 2555.] Sec. 2565. Nuclear test monitoring equipment: furnishing 
                    to foreign governments

  (a) Authority To [Convey or] Transfer Title to or Otherwise 
Provide Nuclear Test Monitoring Equipment.--Subject to 
subsection (b), the Secretary of Defense may--
          (1) [convey] transfer title or otherwise provide to a 
        foreign government (A) equipment for the monitoring of 
        nuclear test explosions, and (B) associated equipment; 
        [and]
          (2) as part of any such conveyance or provision of 
        equipment, install such equipment on foreign territory 
        or in international waters[.]; and
          (3) inspect, test, maintain, repair, or replace any 
        such equipment.
  (b) Agreement Required.--Nuclear test explosion monitoring 
equipment may be [conveyed or otherwise provided] provided to a 
foreign government under subsection (a) only pursuant to the 
terms of an agreement between the United States and the foreign 
government receiving the equipment in which the recipient 
foreign government agrees--
          (1) to provide the United States with timely access 
        to the data produced, collected, or generated by the 
        equipment; and
          (2) to permit the Secretary of Defense to take such 
        measures as the Secretary considers necessary to 
        inspect, test, maintain, repair, or replace that 
        equipment, including access for purposes of such 
        measures[; and].
          [(3) to return such equipment to the United States 
        (or allow the United States to recover such equipment) 
        if either party determines that the agreement no longer 
        serves its interests.]

           *       *       *       *       *       *       *

CHAPTER 153--EXCHANGE OF MATERIAL AND DISPOSAL OF OBSOLETE, SURPLUS, OR 
                           UNCLAIMED PROPERTY

Sec.
2571.  Interchange of property and services.
     * * * * * * *
2582.  Military equipment identified on United States munitions list: 
          annual report of public sales.
[2582.] 2583.  Military working dogs: transfer and adoption at end of 
          useful working life.
     * * * * * * *

Sec. 2572. Documents, historical artifacts, and condemned or obsolete 
                    combat materiel: loan, gift, or exchange

  (a) The Secretary concerned may lend or give items described 
in subsection (c) that are not needed by the military 
department concerned (or by the Coast Guard, in the case of the 
Secretary of Transportation), to any of the following:
          (1) A municipal corporation, county, or other 
        political subdivision of a State.
          (2) A [soldiers' monument] servicemen's monument 
        association.

           *       *       *       *       *       *       *

          (4) An incorporated museum or memorial that is 
        operated and maintained for educational purposes only 
        and the charter of which denies it the right to operate 
        for profit.

           *       *       *       *       *       *       *

[Sec. 2582.] Sec. 2583. Military working dogs: transfer and adoption at 
                    end of useful working life

  (a) * * *

           *       *       *       *       *       *       *

                      CHAPTER 157--TRANSPORTATION

Sec.
2631.  Supplies: preference to United States vessels.
     * * * * * * *
2647.  Transportation to annual meeting of next-of-kin of persons 
          unaccounted for from conflicts after World War II.
     * * * * * * *

Sec. 2634. Motor vehicles: transportation or storage for members on 
                    change of permanent station or extended deployment

  (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  (4) Storage costs payable under this subsection may be paid 
in advance.

           *       *       *       *       *       *       *

  (h) In this section:
          (1) The term ``change of permanent station'' means 
        the transfer or assignment of a member of the armed 
        forces from a permanent station inside the continental 
        United States to a permanent station outside the 
        continental United States or from a permanent station 
        outside the continental United States to another 
        permanent station. It also includes an authorized 
        change in home port of a vessel, or a transfer or 
        assignment between two permanent stations in the 
        continental United States when the member cannot, 
        because of injury or the conditions of the order, drive 
        the motor vehicle between the permanent duty stations 
        or when the Secretary concerned determines that the 
        transport of a vehicle upon such a transfer is 
        advantageous and cost-effective to the United States.

           *       *       *       *       *       *       *

Sec. 2647. Transportation to annual meeting of next-of-kin of persons 
                    unaccounted for from conflicts after World War II

  The Secretary of Defense may provide transportation for the 
next-of-kin of persons who are unaccounted for from the Korean 
conflict, the Cold War, Vietnam War era, or the Persian Gulf 
War to and from an annual meeting in the United States. Such 
transportation shall be provided under such regulations as the 
Secretary of Defense may prescribe.

  CHAPTER 159--REAL PROPERTY; RELATED PERSONAL PROPERTY; AND LEASE OF 
                           NONEXCESS PROPERTY

Sec.
2661.  Miscellaneous administrative provisions relating to real 
          property.
     * * * * * * *
[2693.  Conveyance of certain property.]
2693.  Conveyance of certain property: Department of Justice 
          correctional options program.
     * * * * * * *

Sec. 2671. Military reservations and facilities: hunting, fishing, and 
                    trapping

  (a) * * *
  (b) Subsection (a) shall not apply with respect to all or 
certain specified hunting, fishing, or trapping at a military 
installation or facility if the Secretary of Defense determines 
that the application of the State or Territory fish and game 
laws to such hunting, fishing, or trapping without modification 
could result in undesirable consequences for public safety or 
adverse effects on morale, welfare, or recreation activities at 
the installation or facility. The Secretary may not waive or 
modify the requirements under subsection (a)(2) regarding a 
license for such hunting, fishing, or trapping or any fee 
imposed by a State or Territory to obtain such a license.

           *       *       *       *       *       *       *

  [(b)] (e) The Secretary of Defense shall prescribe 
regulations to carry out this section.

           *       *       *       *       *       *       *

Sec. 2685. Adjustment of or surcharge on selling prices in commissary 
                    stores to provide funds for construction and 
                    improvement of commissary store facilities

  (a) * * *

           *       *       *       *       *       *       *

  (f) Reimbursement for Noncommissary Use of Commissary 
Facilities.--(1) If the Secretary concerned uses for 
noncommissary purposes a commissary facility whose construction 
was financed (in whole or in part) using the proceeds of 
adjustments or surcharges authorized by subsection (a) or 
revenues referred to in subsection (e), the Secretary concerned 
shall reimburse the commissary surcharge account for the 
depreciated value of the investment made with such proceeds and 
revenues.
  (2) In paragraph (1), the term ``construction'' has the 
meaning given such term in subsection (d)(2).

           *       *       *       *       *       *       *

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

  (a) * * *

           *       *       *       *       *       *       *

  (d)(1) * * *
  (2) In the case of storage under this section authorized 
because of an imminent danger, the storage provided shall be 
temporary and shall cease once the imminent danger no longer 
exists. In the case of the storage of mercury under subsection 
(b)(12), the storage provided shall cease as soon as 
practicable after the Administrator of the Environmental 
Protection Agency certifies to the Secretary of Defense that a 
disposal method for mercury satisfying the criteria specified 
in such subsection has been developed. In all other cases of 
storage or disposal authorized under this section, the storage 
or disposal authorized shall be terminated as determined by the 
Secretary.

           *       *       *       *       *       *       *

[Sec. 2693. Conveyance of certain property]

Sec. 2693. Conveyance of certain property: Department of Justice 
                    correctional options program

  (a) Except as provided in subsection (b), before any real 
property or facility of the United States that is under the 
jurisdiction of any department, agency, or instrumentality of 
the Department of Defense is determined to be excess to the 
needs of such department, agency, or instrumentality, the 
Secretary of Defense shall--
          (1) * * *

           *       *       *       *       *       *       *

          (3) if the Attorney General certifies to the 
        Secretary of Defense that a determination has been made 
        by the Director of the Bureau of Justice Assistance 
        within the Department of Justice to utilize the real 
        property or facility under the correctional options 
        program carried out under section 515 of title I of the 
        Omnibus Crime Control and Safe Streets Act of 1968 (42 
        U.S.C. 3762a), convey the real property or facility, 
        without reimbursement, [to the public agencies referred 
        to in section 515(a)(1) or 515(a)(3) of title I of such 
        Act] to a public agency referred to in paragraph (1) or 
        (3) of subsection (a) of such section for such 
        utilization.

           *       *       *       *       *       *       *

                 CHAPTER 160--ENVIRONMENTAL RESTORATION

Sec.
2701.  Environmental restoration program.
     * * * * * * *
2710.  Former military ranges: inventory of explosive risk sites; use of 
          inventory; public safety issues.
2711.  Environmental impact statements and environmental assessments: 
          evaluation of national security impacts of proposed action and 
          alternatives.

           *       *       *       *       *       *       *

Sec. 2706. Annual reports to Congress

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Report on Contractor Reimbursement Costs.--(1) The 
Secretary of Defense shall submit to the Congress each year, 
not later than 45 days after the date on which the President 
submits to the Congress the budget for a fiscal year, a report 
on payments made by the Secretary to defense contractors for 
the costs of environmental response actions.
  [(2) Each such report shall include, for the fiscal year 
preceding the year in which the report is submitted, the 
following:
          [(A) An estimate of the payments made by the 
        Secretary to any defense contractor (other than a 
        response action contractor) for the costs of 
        environmental response actions at facilities owned or 
        operated by the defense contractor or at which the 
        defense contractor is liable in whole or in part for 
        the environmental response action.
          [(B) A statement of the amount and current status of 
        any pending requests by any defense contractor (other 
        than a response action contractor) for payment of the 
        costs of environmental response actions at facilities 
        owned or operated by the defense contractor or at which 
        the defense contractor is liable in whole or in part 
        for the environmental response action.]

           *       *       *       *       *       *       *

Sec. 2710. Former military ranges: inventory of explosive risk sites; 
                    use of inventory; public safety issues

  (a) Definitions.--In this section:
          (1) The term ``former military range'' means a 
        military range presently located in the United States 
        that--
                  (A) is or was owned by, leased to, or 
                otherwise possessed or used by the Federal 
                Government;
                  (B) is designated as a closed, transferred, 
                or transferring military range (rather than as 
                an active or inactive range); or
                  (C) is or was used as a site for the disposal 
                of military munitions or for the use of 
                military munitions in training or research, 
                development, testing, and evaluation.
          (2) The term ``abandoned military munitions'' means 
        unexploded ordnance and other abandoned military 
        munitions, including components thereof and chemical 
        weapons materiel, that pose a threat to human health or 
        safety.
          (3) The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, and the 
        territories and possessions.
          (4) The term ``United States'', in a geographic 
        sense, includes the Commonwealth of Puerto Rico and the 
        territories and possessions.
  (b) Inventory Required.--(1) The Secretary of Defense shall 
develop and maintain an inventory of former military ranges 
that are known or suspected to contain abandoned military 
munitions.
  (2) The information for each former military range in the 
inventory shall include, at a minimum, the following:
          (A) A unique identifier for the range and its current 
        designation as either a closed, transferred, or 
        transferring range.
          (B) An appropriate record showing the location, 
        boundaries, and extent of the range, including 
        identification of the State and political subdivisions 
        of the State in which the range is located and any 
        Tribal lands encompassed by the range.
          (C) Known persons and entities, other than a military 
        department, with any current ownership interest or 
        control of lands encompassed by the range.
          (D) Any restrictions or other land use controls 
        currently in place that might affect the potential for 
        public and environmental exposure to abandoned military 
        munitions.
  (c) Site Prioritization.--(1) With respect to each former 
military range included on the inventory, the Secretary of 
Defense shall assign the range a relative priority for response 
activities based on the overall conditions at the range. The 
level of response priority assigned the range shall be included 
with the information required by subsection (b)(2) to be 
maintained for the range.
  (2) In assigning the response priority for a former military 
range, the Secretary of Defense shall primarily consider 
factors relating to safety and environmental hazard potential, 
such as the following:
          (A) Whether there are known, versus suspected, 
        abandoned military munitions on all or any portion of 
        the range and the types of munitions present or 
        suspected to be present.
          (B) Whether public access to the range is controlled, 
        and the effectiveness of these controls.
          (C) The potential for direct human contact with 
        abandoned military munitions at the range and evidence 
        of people entering the range.
          (D) Whether a response action has been or is being 
        undertaken at the range under the Formerly Used Defense 
        Sites program or other programs.
          (E) The planned or mandated dates for transfer of the 
        range from military control.
          (F) The extent of any documented incidents involving 
        abandoned military munitions at or from the range. In 
        this subparagraph, the term ``incidents'' means any or 
        all of the following: explosions, discoveries, 
        injuries, reports, and investigations.
          (G) The potential for drinking water contamination or 
        the release of weapon components into the air.
          (H) The potential for destruction of sensitive 
        ecosystems and damage to natural resources.
  (d) Updates and Availability.--(1) The Secretary of Defense 
shall annually update the inventory and site prioritization 
list to reflect new information that becomes available. The 
inventory shall be available in published and electronic form.
  (2) The Secretary of Defense shall work with adjacent 
communities to provide information concerning conditions at the 
former military range and response activities, and shall 
respond to inquiries. At a minimum, the Secretary shall notify 
immediately affected individuals, appropriate State, local, 
tribal, and Federal officials, and, when appropriate, civil 
defense or emergency management agencies.

Sec. 2711. Environmental impact statements and environmental 
                    assessments: evaluation of national security 
                    impacts of proposed action and alternatives

  (a) Agency Action.--Whenever an environmental impact 
statement or environmental assessment is required under section 
102 of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332) to be prepared in connection with a proposed Department 
of Defense action, the Secretary of Defense shall include as a 
part of the environmental impact statement or environmental 
assessment a detailed evaluation of the impact of the proposed 
action, and each alternative to the proposed action considered 
in the statement or assessment, on national security, including 
the readiness, training, testing, and operations of the armed 
forces.
  (b) Agency Input.--The Secretary of Defense shall also 
include the evaluation required by subsection (a) in any input 
provided by the Department of Defense as a cooperating agency 
to a lead agency preparing an environmental impact statement or 
environmental assessment.

           *       *       *       *       *       *       *

CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *

SUBCHAPTER I--MILITARY CONSTRUCTION

           *       *       *       *       *       *       *

Sec. 2805. Unspecified minor construction

  (a) * * *
  (b)(1) An unspecified minor military construction project 
costing more than [$500,000] $750,000 may not be carried out 
under this section unless approved in advance by the Secretary 
concerned. 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.

           *       *       *       *       *       *       *

  (c)(1) Except as provided in paragraphs (2) and (3), the 
Secretary concerned may spend from appropriations available for 
operation and maintenance amounts necessary to carry out an 
unspecified minor military construction project costing not 
more than--
          (A) [$1,000,000] $1,500,000, in the case of an 
        unspecified minor military construction project 
        intended solely to correct a deficiency that is life-
        threatening, health-threatening, or safety-threatening; 
        or
          (B) [$500,000] $750,000, in the case of any other 
        unspecified minor military construction project.

           *       *       *       *       *       *       *

Sec. 2814. Special authority for development of Ford Island, Hawaii

  (a) * * *

           *       *       *       *       *       *       *

  (j) Inapplicability of Certain Property Management Laws.--
Except as otherwise provided in this section, transactions 
under this section shall not be subject to the following:
          (1) * * *
          (2) Section 501 of the [Stewart B. McKinney Homeless 
        Assistance Act] McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411).

           *       *       *       *       *       *       *

SUBCHAPTER II--MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *

Sec. 2832. Homeowners assistance program

  [(a)] The Secretary of Defense may exercise the authority 
provided in section 1013 of the Demonstration Cities and 
Metropolitan Development Act of 1966 (42 U.S.C. 3374).
  [(b)(1) Subject to paragraph (2) and notwithstanding 
subsection (i) of section 1013 of the Act referred to in 
subsection (a)--
          [(A) the Secretary of Defense may transfer not more 
        than $31,000,000 from the Department of Defense Base 
        Closure Account, established by section 207 of the 
        Defense Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 102 Stat. 2627), 
        to the fund established pursuant to subsection (d) of 
        such section 1013 for use as part of such fund; and
          [(B) any funds so transferred shall be available for 
        obligation and expenditure for the same purposes that 
        funds appropriated to such fund are available, except 
        that such funds may not be obligated after September 
        30, 1991.
  [(2) Amounts may be transferred under paragraph (1) only 
after the date on which the appropriate committees of Congress 
receive from the Secretary written notice of, and justification 
for, the transfer.]

           *       *       *       *       *       *       *

 SUBCHAPTER III--ADMINISTRATION OF MILITARY CONSTRUCTION AND MILITARY 
                             FAMILY HOUSING

Sec.
2851.  Supervision of military construction projects.
     * * * * * * *
[2861.  Annual report to Congress.]
     * * * * * * *

Sec. 2853. Authorized cost variations

  (a) * * *

           *       *       *       *       *       *       *

  [(d) The limitation on cost increases in subsection (a) does 
not apply to the settlement of a contractor claim under a 
contract.]
  (d) The limitation on cost increases in subsection (a) does 
not apply--
          (1) to the settlement of a contractor claim under a 
        contract; or
          (2) to the costs associated with the required 
        remediation of an environmental hazard in connection 
        with a military construction project or military family 
        housing project, such as asbestos removal, radon 
        abatement, lead-based paint removal or abatement, or 
        any other legally required environmental hazard 
        remediation, if the required remediation could not have 
        reasonably been anticipated at the time the project was 
        approved originally by Congress.

           *       *       *       *       *       *       *

Sec. 2854a. Conveyance of damaged or deteriorated military family 
                    housing; use of proceeds

  (a) * * *

           *       *       *       *       *       *       *

  (d) Inapplicability of Certain Property Disposal Laws.--The 
following provisions of law do not apply to the conveyance of a 
family housing facility under this section:
          (1) * * *
          (2) Title V of the [Stewart B. McKinney Homeless 
        Assistance Act] McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411 et seq.).

           *       *       *       *       *       *       *

[Sec. 2861. Annual report to Congress

  [(a) The Secretary of Defense shall submit a report to the 
appropriate committees of Congress each year with respect to 
military construction activities and military family housing 
activities. Each such report shall be submitted at the same 
time that the annual request for military construction 
authorization is submitted for that year. Except where 
otherwise provided in this section, information required by 
this section to be provided in the report shall be provided for 
the two most recent fiscal years and for the fiscal year for 
which the budget request is made.
  [(b) Each report under subsection (a) shall include the 
following:
          [(1) A statement of the construction status and a 
        fiscal summary of the military construction projects 
        undertaken under, and the amounts authorized and 
        appropriated for, contingency construction under 
        section 2804 of this title.
          [(2) Information to enable the committees to evaluate 
        the relationships between budget requests for 
        appropriations for unspecified minor construction 
        projects under section 2805 of this title and 
        obligations of appropriated funds for projects under 
        such section. Such information shall include 
        comparisons of budget requests and obligations using 
        military construction appropriations and using 
        operations and maintenance appropriations, maintenance 
        and repair backlog, and obligations for maintenance and 
        repair.
          [(3) Information to enable the committees to monitor 
        trends in construction started using funds contributed 
        by the United States under section 2806 of this title 
        to the North Atlantic Treaty Organization Security 
        Investment program and the status of recoupments under 
        that program.
          [(4) Information to enable the committees to evaluate 
        trends in contracting for architect and engineering 
        services and construction design, and trends in 
        accomplishing design of construction projects by 
        Government employees, under the authority of section 
        2807 of this title.
          [(5) Information to enable the committees to evaluate 
        trends in supervision, inspection, and overhead costs 
        for the dollar amount of military construction 
        accomplished during a fiscal year by a military 
        construction department or agency under the authority 
        of section 2851 of this title.
          [(6) A summary of military construction projects 
        (other than a military construction project for an 
        amount less than the amount specified by section 
        2805(a)(1) of this title as the maximum amount for a 
        minor military construction project) placed under 
        contract during the preceding fiscal year with respect 
        to which a cost variation or scope reduction report was 
        supplied to the appropriate committees of Congress 
        under section 2853 of this title. There shall also be 
        included an analysis to indicate whether the cost 
        variation was the result of a lack of competition, 
        quality of plans and specifications, or quality of 
        budget estimates, or of other factors.
          [(7) Information to enable the committees to evaluate 
        the use of the authority provided under section 2858 of 
        this title to expedite a military construction project 
        when such expediting is required to protect the 
        national interest.
          [(8) Information in sufficient detail to enable the 
        committees to monitor trends in design, construction, 
        performance goals, and progress.
          [(9) With respect to each contract awarded during the 
        preceding fiscal year on other than a competitive basis 
        to the lowest responsible bidder, the name of the 
        contractor, the original amount of the contract, and 
        the reason for the award of the contract on other than 
        a competitive basis.]

           *       *       *       *       *       *       *

SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                            MILITARY HOUSING

Sec.
2871.  Definitions.
     * * * * * * *
[2885.  Expiration of authority.]

           *       *       *       *       *       *       *

Sec. 2878. Conveyance or lease of existing property and facilities

  (a) * * *

           *       *       *       *       *       *       *

  (d) Inapplicability of Certain Property Management Laws.--The 
conveyance or lease of property or facilities under this 
section shall not be subject to the following provisions of 
law:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Section 501 of the [Stewart B. McKinney Homeless 
        Assistance Act] McKinney-Vento Homeless Assistance Act 
        (42 U.S.C. 11411).

           *       *       *       *       *       *       *

[Sec. 2885. Expiration of authority

  [The authority to enter into a contract under this subchapter 
shall expire on December 31, 2004.]

           *       *       *       *       *       *       *

                            Subtitle B--Army

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 303--DEPARTMENT OF THE ARMY

           *       *       *       *       *       *       *

Sec. 3014. Office of the Secretary of the Army

  (a) * * *

           *       *       *       *       *       *       *

  (f)(1) * * *

           *       *       *       *       *       *       *

  (3) The total number of general officers assigned or detailed 
to permanent duty in the Office of the Secretary of the Army 
and on the Army Staff may not exceed [the number equal to 85 
percent of the number of general officers assigned or detailed 
to such duty on the date of the enactment of this subsection.] 
67.

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                        CHAPTER 333--ENLISTMENTS

Sec.
3251.  Definition.
     * * * * * * *
3264.  18-month enlistment pilot program.
     * * * * * * *

Sec. 3264. 18-month enlistment pilot program

  (a) During the pilot program period, the Secretary of the 
Army shall carry out a pilot program with the objective of 
increasing participation of prior service persons in the 
Selected Reserve and providing assistance in building the pool 
of participants in the Individual Ready Reserve.
  (b) Under the program, the Secretary may, notwithstanding 
section 505(c) of this title, accept persons for original 
enlistment in the Army for a term of enlistment consisting of 
18 months service on active duty, to be followed by three years 
of service in the Selected Reserve and then service in the 
Individual Ready Reserve to complete the military service 
obligation.
  (c) No more than 10,000 persons may be accepted for 
enlistment in the Army through the program under this section.
  (d) A person enlisting in the Army through the program under 
this section is eligible for an enlistment bonus under section 
309 of title 37, notwithstanding the enlistment time period 
specified in subsection (a) of that section.
  (e) For purposes of the program under this section, the pilot 
program period is the period beginning on October 1, 2003, and 
ending on December 31, 2007.
  (f) Not later than December 31, 2007, and December 31, 2012, 
the Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the 
program under this section. In each such report, the Secretary 
shall set forth the views of the Secretary on the success of 
the program in meeting the objectives stated in subsection (a) 
and whether the program should be continued and, if so, whether 
it should be modified or expanded.

           *       *       *       *       *       *       *

                  CHAPTER 357--DECORATIONS AND AWARDS

Sec.
3741.  Medal of honor: award.
     * * * * * * *
3754.  Medal of honor: duplicate medal.
3755.  Korea Defense Service Medal.
     * * * * * * *

Sec. 3747. Medal of honor; distinguished-service cross; distinguished-
                    service medal; silver star: replacement

  Any medal of honor, distinguished-service cross, 
distinguished-service medal, or silver star, or any bar, 
ribbon, rosette, or other device issued for wear with or in 
place of any of them, that is [lost or destroyed] stolen, lost, 
or destroyed, or becomes unfit for use, without fault or 
neglect of the person to whom it was awarded, shall be replaced 
without charge.

           *       *       *       *       *       *       *

Sec. 3754. Medal of honor: duplicate medal

  A person awarded a medal of honor shall, upon written 
application of that person, be issued, without charge, one 
duplicate medal of honor with ribbons and appurtenances. Such 
duplicate medal of honor shall be marked, in such manner as the 
Secretary of the Army may determine, as a duplicate or for 
display purposes only.

Sec. 3755. Korea Defense Service Medal

  (a) The Secretary of the Army shall issue a campaign medal, 
to be known as the Korea Defense Service Medal, to each person 
who while a member of the Army served in the Republic of Korea 
or the waters adjacent thereto during the KDSM eligibility 
period and met the service requirements for the award of that 
medal prescribed under subsection (c).
  (b) In this section, the term ``KDSM eligibility period'' 
means the period beginning on July 28, 1954, and ending on such 
date after the date of the enactment of this section as may be 
determined by the Secretary of Defense to be appropriate for 
terminating eligibility for the Korea Defense Service Medal.
  (c) The Secretary of the Army shall prescribe service 
requirements for eligibility for the Korea Defense Service 
Medal. Those requirements shall not be more stringent than the 
service requirements for award of the Armed Forces 
Expeditionary Medal for instances in which the award of that 
medal is authorized.

           *       *       *       *       *       *       *

CHAPTER 367--RETIREMENT FOR LENGTH OF SERVICE

           *       *       *       *       *       *       *

Sec. 3911. Twenty years or more: regular or reserve commissioned 
                    officers

  (a) * * *
  (b) The Secretary of Defense may authorize the Secretary of 
the Army, during the period beginning on October 1, 1990, and 
ending on December 31, [2001] 2002, to reduce the requirement 
under subsection (a) for at least 10 years of active service as 
a commissioned officer to a period (determined by the Secretary 
of the Army) of not less than eight years.

           *       *       *       *       *       *       *

CHAPTER 373--CIVILIAN EMPLOYEES

           *       *       *       *       *       *       *

Sec. 4021. Army War College and United States Army Command and General 
                    Staff College: civilian faculty members

  (a) * * *

           *       *       *       *       *       *       *

  (c) Application to Certain Faculty Members.--(1) Except as 
provided in paragraph (2), this section shall apply with 
respect to persons who are selected by the Secretary for 
employment as professors, instructors, and lecturers at the 
Army War College or the United States Army Command and General 
Staff College after the end of the 90-day period beginning on 
[the date of the enactment of this section.] November 29, 1989.

           *       *       *       *       *       *       *

PART III--TRAINING

           *       *       *       *       *       *       *

CHAPTER 403--UNITED STATES MILITARY ACADEMY

           *       *       *       *       *       *       *

Sec. 4337. Chaplain

  There shall be a chaplain at the Academy, who must be a 
clergyman, appointed by the President for a term of four years. 
[The chaplain is entitled to the same allowances for public 
quarters as are allowed to a captain, and to fuel and light for 
quarters in kind.] Notwithstanding any other provision of law, 
the chaplain is entitled to the same basic allowance for 
housing allowed to a lieutenant colonel, and to fuel and light 
for quarters in kind. The chaplain may be reappointed.

           *       *       *       *       *       *       *

Sec. 4344. Selection of persons from foreign countries

  (a)(1) The Secretary of the Army may permit not more than 
[40] 60 persons at any one time from foreign countries to 
receive instruction at the Academy. Such persons shall be in 
addition to the authorized strength of the Corps of the Cadets 
of the Academy under section 4342 of this title.

           *       *       *       *       *       *       *

  (b)(1) * * *
  (2) Each foreign country from which a cadet is permitted to 
receive instruction at the Academy under this section shall 
reimburse the United States for the cost of providing such 
instruction, including the cost of pay, allowances, and 
emoluments provided under paragraph (1) unless a written waiver 
of some or all reimbursement is granted by the Secretary of 
Defense. The Secretary of the Army shall prescribe the rates 
for reimbursement under this paragraph, 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.
  [(3) The amount of reimbursement waived under paragraph (2) 
may not exceed 50 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 20 persons 
receiving instruction at the Academy under this section at any 
one time.]

           *       *       *       *       *       *       *

Sec. 4353. Cadets: degree and commission on graduation

  (a) * * *
  [(b) Notwithstanding any other provision of law, a cadet who 
completes the prescribed course of instruction may, upon 
graduation, be appointed a second lieutenant in the Regular 
Army under section 531 of this title.]
  (b) A cadet who completes the prescribed course of 
instruction, is qualified for an original appointment in a 
regular component under section 532 of this title, and meets 
such other criteria for appointment as a commissioned officer 
in the Army as may be prescribed by the Secretary of the Army 
shall, upon graduation, be appointed a second lieutenant in the 
Regular Army under section 531 of this title, unless appointed 
under that section in a regular component of one of the other 
armed forces in accordance with section 541 of this title.

           *       *       *       *       *       *       *

                   Subtitle C--Navy and Marine Corps

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 503--DEPARTMENT OF THE NAVY

           *       *       *       *       *       *       *

Sec. 5014. Office of the Secretary of the Navy

  (a) * * *

           *       *       *       *       *       *       *

  (f)(1) * * *

           *       *       *       *       *       *       *

  (3) The total number of general and flag officers assigned or 
detailed to permanent duty in the Office of the Secretary of 
the Navy, the Office of the Chief of Naval Operations, and the 
Headquarters, Marine Corps, may not exceed [the number equal to 
85 percent of the number of general and flag officers assigned 
or detailed to such duty on the date of the enactment of this 
subsection.] 74.

           *       *       *       *       *       *       *

CHAPTER 505--OFFICE OF THE CHIEF OF NAVAL OPERATIONS

           *       *       *       *       *       *       *

Sec. 5038. Director for Expeditionary Warfare

  (a) One of the Directors within the [Office of the Deputy 
Chief of Naval Operations for Resources, Warfare Requirements, 
and Assessments] office of the Deputy Chief of Naval Operations 
with responsibility for warfare requirements and programs shall 
be the Director for Expeditionary Warfare who shall be detailed 
from officers on the active-duty list of the Marine Corps.

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                           CHAPTER 565--BANDS

Sec.
[6221.  United States Navy Band.]
6221.  United States Navy Band; officer in charge.
     * * * * * * *

[Sec. 6221. United States Navy Band

  [There is a Navy band known as the United States Navy Band.]

Sec. 6221. United States Navy Band; officer in charge

  (a) There is a Navy band known as the United States Navy 
Band.
  (b) An officer of the Navy designated for limited duty under 
section 5589 or 5596 of this title who is serving in a grade 
not below lieutenant commander may be detailed by the Secretary 
of the Navy as Officer in Charge of the United States Navy 
Band. While so serving, an officer so detailed shall hold the 
grade of captain if recommended by the Secretary of the Navy 
for appointment to that grade and appointed to that grade by 
the President, by and with the advice and consent of the 
Senate. Such an appointment may be made notwithstanding section 
5596(d) of this title.

           *       *       *       *       *       *       *

                  CHAPTER 567--DECORATIONS AND AWARDS

Sec.
6241.  Medal of honor.
     * * * * * * *
6256.  Medal of honor: duplicate medal.
6257.  Korea Defense Service Medal.
     * * * * * * *

Sec. 6253. Replacement

  The Secretary of the Navy may replace without charge any 
medal of honor, Navy cross, distinguished-service medal, silver 
star medal, or Navy and Marine Corps Medal, or any associated 
bar, emblem, or insignia awarded under this chapter that is 
[lost or destroyed] stolen, lost, or destroyed or becomes unfit 
for use without fault or neglect on the part of the person to 
whom it was awarded.

           *       *       *       *       *       *       *

Sec. 6256. Medal of honor: duplicate medal

  A person awarded a medal of honor shall, upon written 
application of that person, be issued, without charge, one 
duplicate medal of honor with ribbons and appurtenances. Such 
duplicate medal of honor shall be marked, in such manner as the 
Secretary of the Navy may determine, as a duplicate or for 
display purposes only.

Sec. 6257. Korea Defense Service Medal

  (a) The Secretary of the Navy shall issue a campaign medal, 
to be known as the Korea Defense Service Medal, to each person 
who while a member of the Navy or Marine Corps served in the 
Republic of Korea or the waters adjacent thereto during the 
KDSM eligibility period and met the service requirements for 
the award of that medal prescribed under subsection (c).
  (b) In this section, the term ``KDSM eligibility period'' 
means the period beginning on July 28, 1954, and ending on such 
date after the date of the enactment of this section as may be 
determined by the Secretary of Defense to be appropriate for 
terminating eligibility for the Korea Defense Service Medal.
  (c) The Secretary of the Navy shall prescribe service 
requirements for eligibility for the Korea Defense Service 
Medal. Those requirements shall not be more stringent than the 
service requirements for award of the Armed Forces 
Expeditionary Medal for instances in which the award of that 
medal is authorized.

           *       *       *       *       *       *       *

CHAPTER 571--VOLUNTARY RETIREMENT

           *       *       *       *       *       *       *

Sec. 6323. Officers: 20 years

  (a)(1) * * *
  (2) The Secretary of Defense may authorize the Secretary of 
the Navy, during the period beginning on October 1, 1990, and 
ending on December 31, [2001] 2002, to reduce the requirement 
under paragraph (1) for at least 10 years of active service as 
a commissioned officer to a period (determined by the 
Secretary) of not less than eight years.

           *       *       *       *       *       *       *

Sec. 6328. Computation of years of service: voluntary retirement

  (a) Enlisted Members.--Time required to be made up under 
section 972(a) of this title after [the date of the enactment 
of this section] February 10, 1996, may not be counted in 
computing years of service under this chapter.

           *       *       *       *       *       *       *

PART III--EDUCATION AND TRAINING

           *       *       *       *       *       *       *

CHAPTER 603--UNITED STATES NAVAL ACADEMY

           *       *       *       *       *       *       *

Sec. 6957. Selection of persons from foreign countries

  (a)(1) The Secretary of the Navy may permit not more than 
[40] 60 persons at any one time from foreign countries to 
receive instruction at the Academy. Such persons shall be in 
addition to the authorized strength of the midshipmen under 
section 6954 of this title.

           *       *       *       *       *       *       *

  (b)(1) * * *
  (2) Each foreign country from which a midshipman is permitted 
to receive instruction at the Academy under this section shall 
reimburse the United States for the cost of providing such 
instruction, including the cost of pay, allowances, and 
emoluments provided under paragraph (1) unless a written waiver 
of some or all reimbursement is granted by the Secretary of 
Defense. The Secretary of the Navy shall prescribe the rates 
for reimbursement under this paragraph, 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.
  [(3) The amount of reimbursement waived under paragraph (2) 
may not exceed 50 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 20 persons 
receiving instruction at the Naval Academy under this section 
at any one time.]

           *       *       *       *       *       *       *

Sec. 6967. Degree on graduation

  (a) Under regulations prescribed by the Secretary of the 
Navy, the Superintendent of the Naval Academy may confer the 
degree of bachelor of science upon graduates of the Academy.
  (b) A midshipman who completes the prescribed course of 
instruction, is qualified for an original appointment in a 
regular component under section 532 of this title, and meets 
such other criteria for appointment as a commissioned officer 
in the naval service as may be prescribed by the Secretary of 
the Navy shall, upon graduation, be appointed an ensign in the 
Regular Navy or a second lieutenant in the Regular Marine Corps 
under section 531 of this title, unless appointed under that 
section in a regular component of one of the other armed forces 
in accordance with section 541 of this title.

           *       *       *       *       *       *       *

          CHAPTER 609--PROFESSIONAL MILITARY EDUCATION SCHOOLS

Sec.
7101.  Naval War College: master of arts in national security and 
          strategic studies.
[7102.  Marine Corps University: master of military studies.]
7102.  Marine Corps University: masters degrees; board of advisors.
     * * * * * * *

[Sec. 7102. Marine Corps University: master of military studies]

Sec. 7102. Marine Corps University: masters degrees; board of advisors

  (a) Authority.--Upon the recommendation of the Director and 
faculty of the Command and Staff College of the Marine Corps 
University, the President of the Marine Corps University may 
confer the degree of master of military studies [upon graduates 
of the college who fulfill the requirements for the degree.] 
upon graduates of the Command and Staff College who fulfill the 
requirements for that degree.
  (b) Marine Corps War College.--Upon the recommendation of the 
Director and faculty of the Marine Corps War College of the 
Marine Corps University, the President of the Marine Corps 
University may confer the degree of master of strategic studies 
upon graduates of the Marine Corps War College who fulfill the 
requirements for that degree.
  [(b)] (c) Regulations.--The authority provided by [subsection 
(a)] subsections (a) and (b) shall be exercised under 
regulations prescribed by the Secretary of the Navy.
  (d) Board of Advisors.--The Secretary of the Navy shall 
establish a board of advisors for the Marine Corps University. 
The Secretary shall ensure that the board is established so as 
to meet all requirements of the appropriate regional 
accrediting association.

           *       *       *       *       *       *       *

PART IV--GENERAL ADMINISTRATION

           *       *       *       *       *       *       *

CHAPTER 633--NAVAL VESSELS

           *       *       *       *       *       *       *

Sec. 7307. Disposals to foreign nations

  (a) [Larger or Newer] Certain Combatant Vessels.--[A naval 
vessel] Except as provided in subsection (b), a combatant naval 
vessel that is in excess of 3,000 tons or that is less than 20 
years of age may not be disposed of to another nation (whether 
by sale, lease, grant, loan, barter, transfer, or otherwise) 
unless the disposition of that vessel is [approved by law 
enacted after August 5, 1974] specifically approved by law. A 
lease or loan of such a vessel under such a law may be made 
only in accordance with the provisions of chapter 6 of the Arms 
Export Control Act (22 U.S.C. 2796 et seq.) or chapter 2 of 
part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2311 
et seq.).
  (b) Treatment of Vessels Held by Foreign Nations by Loan or 
Lease.--Subsection (a) shall not apply to the disposal to 
another nation of a vessel described in that subsection that, 
at the time of the disposal, is held by the nation to which the 
disposal is to be made pursuant to a loan or lease arrangement 
made under section 61 of the Arms Export Control Act (22 U.S.C. 
2796) or any other provision of law.
  [(b)] (c) Other Vessels.--(1) * * *

           *       *       *       *       *       *       *

  (d) Inapplicability of Vessel Disposals to Aggregate Annual 
Value Limitations.--The value of a vessel transferred to 
another country under an applicable provision of law as 
described in subsection (c) shall not be counted for the 
purposes of any aggregate limit on the value of articles 
transferred to other countries under that provision of law 
during any year (or other applicable period of time).

           *       *       *       *       *       *       *

CHAPTER 641--NAVAL PETROLEUM RESERVES

           *       *       *       *       *       *       *

Sec. 7430. Disposition of products

  (a) * * *
  (b)(1) * * *
  (2) The Secretary may not sell any part of the United States 
share of petroleum produced from Naval Petroleum Reserves 
Numbered 2 and 3 [at a price less than the higher of--
          [(A) the current sales price] at a price less than 
        the current sales price, as estimated by the Secretary, 
        of comparable petroleum in the same area[; or].
          [(B) the price of petroleum being purchased for the 
        Strategic Petroleum Reserve, minus the cost of 
        transporting petroleum from the naval petroleum reserve 
        concerned to the nearest storage area of the Strategic 
        Petroleum Reserve, with adjustments for the difference 
        in the quality of the petroleum being purchased for the 
        Strategic Petroleum Reserve and petroleum being 
        produced from the naval petroleum reserve concerned.]

           *       *       *       *       *       *       *

Sec. 7439. Certain oil shale reserves: transfer of jurisdiction and 
                    petroleum exploration, development, and production

  (a) Transfer Required.--(1) * * *
  (2) Not later than [one year after the date of the enactment 
of this section,] November 18, 1998, 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.

           *       *       *       *       *       *       *

  (b) Authority To Lease.--(1) Beginning on [the date of the 
enactment of this section,] November 18, 1997, 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.] November 18, 1998.

           *       *       *       *       *       *       *

  (f) Treatment of Receipts.--(1) * * *
  (2) The period referred to in this subsection is the period 
beginning on [the date of the enactment of this section] 
November 18, 1997, 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) * * *

           *       *       *       *       *       *       *

CHAPTER 647--DISPOSAL OF OBSOLETE OR SURPLUS MATERIAL

           *       *       *       *       *       *       *

Sec. 7545. Obsolete material and articles of historical interest: loan 
                    or gift

  (a) [Subject to regulations under section 205 of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
486), the Secretary of the Navy, under regulations prescribed 
by him,] Authority To Make Loans and Gifts.--The Secretary of 
the Navy may lend or give, without expense to the United 
States, [captured, condemned, or obsolete ordnance material, 
books, manuscripts, works of art, drawings, plans, and models, 
other condemned or obsolete material, trophies, and flags, and 
other material of historic interest not needed by the 
Department of the Navy, to--] items described in subsection (b) 
that are not needed by the Department of the Navy to any of the 
following:
          (1) [a] A State, Territory, Commonwealth, or 
        possession of the United States, or political 
        subdivision or municipal corporation thereof[;].
          (2) [the] The District of Columbia[;].
          (3) [a] A library[;].
          (4) [a] A historical society[;].
          (5) [an] An educational institution whose graduates 
        or students fought in [World War I or World War II;] a 
        foreign war.
          (6) [a soldiers' monument] A servicemen's monument 
        association[;].
          (7) [a] A State museum[;].
          (8) [a] A museum or memorial operated and maintained 
        for educational purposes only, whose charter denies it 
        the right to operate for profit[;].
          (9) [a] A post of the Veterans of Foreign Wars of the 
        United States[;].
          (10) [a] A post of the American Legion[;].
          (11) [any] Any other recognized war veterans' 
        association[; or].
          (12) [a] A post of the Sons of Veterans Reserve.
  (b) Items Eligible for Disposal.--This section applies to the 
following types of property held by the Department of the Navy:
          (1) Captured, condemned, or obsolete ordnance 
        material.
          (2) Captured, condemned, or obsolete combat or 
        shipboard material.
  (c) Regulations.--A loan or gift made under this section 
shall be subject to regulations prescribed by the Secretary of 
the Navy and to regulations under section 205 of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
486).
  [(b)] (d) Maintenance of the Records of the Government.--
Records of the Government as defined in section 3301 of title 
44 may not be disposed of under this section.
  [(c)] (e) Alternative Authorities To Make Gifts or Loans.--If 
any disposition is authorized by this section and section 2572 
of this title, the Secretary may make the gift or loan under 
either section.
  (f) Authority To Transfer a Portion of a Vessel.--The 
Secretary may lend, give, or otherwise transfer any portion of 
the hull or superstructure of a vessel stricken from the Naval 
Vessel Register and designated for scrapping to a qualified 
organization specified in subsection (a). The terms and 
conditions of an agreement for the transfer of a portion of a 
vessel under this section shall include a requirement that the 
transferee will maintain the material conveyed in a condition 
that will not diminish the historical value of the material or 
bring discredit upon the Navy.

           *       *       *       *       *       *       *

CHAPTER 653--CLAIMS

           *       *       *       *       *       *       *

Sec. 7622. Admiralty claims against the United States

  (a) The Secretary of the Navy may settle, or compromise, and 
pay in an amount not more than [$1,000,000] $15,000,000 an 
admiralty claim against the United States for--
          (1) * * *

           *       *       *       *       *       *       *

  (b) If a claim under this section is settled or compromised 
for more than [$1,000,000] $15,000,000, the Secretary shall 
certify it to Congress.
  (c) In any case where the amount to be paid is not more than 
[$100,000] $1,000,000, the Secretary may delegate his authority 
under this section to any person designated by him.

           *       *       *       *       *       *       *

Sec. 7623. Admiralty claims by the United States

  (a) The Secretary of the Navy may settle, or compromise, and 
receive payment of a claim by the United States for damage to 
property under the jurisdiction of the Department of the Navy 
or property for which the Department has assumed an obligation 
to respond for damage, if--
          (1) * * *
          (2) the net amount to be received by the United 
        States is not more than [$1,000,000] $15,000,000.

           *       *       *       *       *       *       *

  (c) In any case where the amount to be received by the United 
States is not more than [$100,000] $1,000,000, the Secretary 
may delegate his authority under this section to any person 
designated by him.

           *       *       *       *       *       *       *

                         Subtitle D--Air Force

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 803--DEPARTMENT OF THE AIR FORCE

           *       *       *       *       *       *       *

Sec. 8014. Office of the Secretary of the Air Force

  (a) * * *

           *       *       *       *       *       *       *

  (f)(1) * * *

           *       *       *       *       *       *       *

  (3) The total number of general officers assigned or detailed 
to permanent duty in the Office of the Secretary of the Air 
Force and on the Air Staff may not exceed [the number equal to 
85 percent of the number of general officers assigned or 
detailed to such duty on the date of the enactment of this 
subsection.] 60.

           *       *       *       *       *       *       *

                       CHAPTER 807--THE AIR FORCE

Sec.
8061.  Regulations.
     * * * * * * *
8063.  Contracts for space launches: responsibility of Air Force for all 
          Department of Defense elements.
     * * * * * * *

Sec. 8063. Contracts for space launches: responsibility of Air Force 
                    for all Department of Defense elements

  The Secretary of the Air Force shall ensure that contracts 
for space launch vehicles and space launch services for all 
elements of the Department of Defense are prepared, negotiated, 
executed, and managed in a manner that maximizes launch 
effectiveness, minimizes cost of launch services, provides 
clear visibility to all elements into contract costs and 
functions, and, where practicable, takes advantage of 
commercial space launch capabilities.

           *       *       *       *       *       *       *

Sec. 8074. Commands: territorial organization

  (a) * * *

           *       *       *       *       *       *       *

  [(c) The Military Air Transport Service is redesignated as 
the Military Airlift Command.]

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                     CHAPTER 845--RANK AND COMMAND

Sec.
8572.  Rank: commissioned officers serving under temporary appointments.
     * * * * * * *
8584.  Commander of Air Force Space Command.
     * * * * * * *

Sec. 8584. Commander of Air Force Space Command

  The Secretary of Defense may require that the officer serving 
as commander of the Air Force Space Command not serve 
simultaneously as commander of the United States Space Command 
(or any successor combatant command with responsibility for 
space) or as commander of the United States element of the 
North American Air Defense Command.

           *       *       *       *       *       *       *

                  CHAPTER 857--DECORATIONS AND AWARDS

Sec.
8741.  Medal of honor: award.
     * * * * * * *
8754.  Medal of honor: duplicate medal.
8755.  Korea Defense Service Medal.
     * * * * * * *

Sec. 8747. Medal of honor; Air Force cross; distinguished-service 
                    cross; distinguished-service medal; silver star: 
                    replacement

  Any medal of honor, Air Force cross, distinguished-service 
cross, distinguished-service medal, or silver star, or any bar, 
ribbon, rosette, or other device issued for wear with or in 
place of any of them, that is [lost or destroyed] stolen, lost, 
or destroyed, or becomes unfit for use, without fault or 
neglect of the person to whom it was awarded, shall be replaced 
without charge.

           *       *       *       *       *       *       *

Sec. 8754. Medal of honor: duplicate medal

  A person awarded a medal of honor shall, upon written 
application of that person, be issued, without charge, one 
duplicate medal of honor with ribbons and appurtenances. Such 
duplicate medal of honor shall be marked, in such manner as the 
Secretary of the Air Force may determine, as a duplicate or for 
display purposes only.

Sec. 8755. Korea Defense Service Medal

  (a) The Secretary of the Air Force shall issue a campaign 
medal, to be known as the Korea Defense Service Medal, to each 
person who while a member of the Air Force served in the 
Republic of Korea or the waters adjacent thereto during the 
KDSM eligibility period and met the service requirements for 
the award of that medal prescribed under subsection (c).
  (b) In this section, the term ``KDSM eligibility period'' 
means the period beginning on July 28, 1954, and ending on such 
date after the date of the enactment of this section as may be 
determined by the Secretary of Defense to be appropriate for 
terminating eligibility for the Korea Defense Service Medal.
  (c) The Secretary of the Air Force shall prescribe service 
requirements for eligibility for the Korea Defense Service 
Medal. Those requirements shall not be more stringent than the 
service requirements for award of the Armed Forces 
Expeditionary Medal for instances in which the award of that 
medal is authorized.

           *       *       *       *       *       *       *

CHAPTER 867--RETIREMENT FOR LENGTH OF SERVICE

           *       *       *       *       *       *       *

Sec. 8911. Twenty years or more: regular or reserve commissioned 
                    officers

  (a) * * *
  (b) The Secretary of Defense may authorize the Secretary of 
the Air Force, during the period beginning on October 1, 1990, 
and ending on December 31, [2001] 2002, to reduce the 
requirement under subsection (a) for at least 10 years of 
active service as a commissioned officer to a period 
(determined by the Secretary of the Air Force) of not less than 
eight years.

           *       *       *       *       *       *       *

PART III--TRAINING

           *       *       *       *       *       *       *

CHAPTER 903--UNITED STATES AIR FORCE ACADEMY

           *       *       *       *       *       *       *

Sec. 9344. Selection of persons from foreign countries

  (a)(1) The Secretary of the Air Force may permit not more 
than [40] 60 persons at any one time from foreign countries to 
receive instruction at the Academy. Such persons shall be in 
addition to the authorized strength of the Air Force Cadets of 
the Academy under section 9342 of this title.

           *       *       *       *       *       *       *

  (b)(1) * * *
  (2) Each foreign country from which a cadet is permitted to 
receive instruction at the Academy under this section shall 
reimburse the United States for the cost of providing such 
instruction, including the cost of pay, allowances, and 
emoluments provided under paragraph (1) unless a written waiver 
of some or all reimbursement is granted by the Secretary of 
Defense. The Secretary of the Air Force shall prescribe the 
rates for reimbursement under this paragraph, 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.
  [(3) The amount of reimbursement waived under paragraph (2) 
may not exceed 50 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 20 persons 
receiving instruction at the Air Force Academy under this 
section at any one time.]

           *       *       *       *       *       *       *

Sec. 9353. Cadets: degree and commission on graduation

  (a) * * *
  [(b) Notwithstanding any other provision of law, a cadet who 
completes the prescribed course of instruction may, upon 
graduation, be appointed a second lieutenant in the Regular Air 
Force under section 531 of this title.]
  (b) A cadet who completes the prescribed course of 
instruction, is qualified for an original appointment in a 
regular component under section 532 of this title, and meets 
such other criteria for appointment as a commissioned officer 
in the Air Force as may be prescribed by the Secretary of the 
Air Force shall, upon graduation, be appointed a second 
lieutenant in the Regular Air Force under section 531 of this 
title, unless appointed under that section in a regular 
component of one of the other armed forces in accordance with 
section 541 of this title.

           *       *       *       *       *       *       *

PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *

CHAPTER 949--REAL PROPERTY

           *       *       *       *       *       *       *

Sec. 9783. Johnston Atoll: reimbursement for support provided to civil 
                    air carriers

  (a) * * *

           *       *       *       *       *       *       *

  (e) Definitions.--In this section:
          (1) The term ``civil air carrier'' means an air 
        carrier (as defined in section [40101(a)(2)] 
        40102(a)(2) of title 49) that is issued a certificate 
        of public convenience and necessity under section 41102 
        of such title.

           *       *       *       *       *       *       *

                     Subtitle E--Reserve Components

PART I--ORGANIZATION AND ADMINISTRATION

           *       *       *       *       *       *       *

CHAPTER 1013--BUDGET INFORMATION AND ANNUAL REPORTS TO CONGRESS

           *       *       *       *       *       *       *

Sec. 10541. National Guard and reserve component equipment: annual 
                    report to Congress

  [(a) The Secretary of Defense shall submit to the Congress 
each year, not later than February 15, a written report 
concerning the equipment of the National Guard and the reserve 
components of the armed forces for each of the three succeeding 
fiscal years.
  [(b) Each report under this section shall include the 
following:
          [(1) Recommendations as to the type and quantity of 
        each major item of equipment which should be in the 
        inventory of the Selected Reserve of the Ready Reserve 
        of each reserve component of the armed forces.
          [(2) A statement of the quantity and average age of 
        each type of major item of equipment which is expected 
        to be physically available in the inventory of the 
        Selected Reserve of the Ready Reserve of each reserve 
        component as of the beginning of each fiscal year 
        covered by the report.
          [(3) A statement of the quantity and cost of each 
        type of major item of equipment which is expected to be 
        procured for the Selective Reserve of the Ready Reserve 
        of each reserve component from commercial sources or to 
        be transferred to each such Selected Reserve from the 
        active-duty components of the armed forces.
          [(4) A statement of the quantity of each type of 
        major item of equipment which is expected to be 
        retired, decommissioned, transferred, or otherwise 
        removed from the physical inventory of the Selected 
        Reserve of the Ready Reserve of each reserve component 
        and the plans for replacement of that equipment.
          [(5) A listing of each major item of equipment 
        required by the Selected Reserve of the Ready Reserve 
        of each reserve component indicating--
                  [(A) the full war-time requirement of that 
                component for that item, shown in accordance 
                with deployment schedules and requirements over 
                successive 30-day periods following 
                mobilization;
                  [(B) the number of each such item in the 
                inventory of the component;
                  [(C) a separate listing of each such item in 
                the inventory that is a deployable item and is 
                not the most desired item;
                  [(D) the number of each such item projected 
                to be in the inventory at the end of the third 
                succeeding fiscal year; and
                  [(E) the number of nondeployable items in the 
                inventory as a substitute for a required major 
                item of equipment.
          [(6) A narrative explanation of the plan of the 
        Secretary concerned to provide equipment needed to fill 
        the war-time requirement for each major item of 
        equipment to all units of the Selected Reserve, 
        including an explanation of the plan to equip units of 
        the Selected Reserve that are short of major items of 
        equipment at the outset of war.
          [(7) For each item of major equipment reported under 
        paragraph (3) in a report for one of the three previous 
        years under this section as an item expected to be 
        procured for the Selected Reserve or to be transferred 
        to the Selected Reserve, the quantity of such equipment 
        actually procured for or transferred to the Selected 
        Reserve.
          [(8) A statement of the current status of the 
        compatibility of equipment between the Army reserve 
        components and active forces of the Army, the effect of 
        that level of incompatibility on combat effectiveness, 
        and a plan to achieve full equipment compatibility.
  [(c) Each report under this section shall be expressed in the 
same format and with the same level of detail as the 
information presented in the annual Five Year Defense Program 
Procurement Annex prepared by the Department of Defense.]
  (a) Requirement.--The Secretary of Defense shall submit to 
Congress each year, not later than March 1, a written report 
concerning the equipment of the National Guard and the reserve 
components of the armed forces. Each such report shall cover 
the current fiscal year and the three succeeding years.
  (b) Matters To Be Included in Report.--Each report under this 
section shall include the following (shown in the aggregate and 
separately for each reserve component):
          (1) A list of major items of equipment required and 
        on-hand in the inventories of the reserve components.
          (2) A list of major items of equipment that are 
        expected to be procured from commercial sources or 
        transferred from the active component to the reserve 
        components.
          (3) A statement of major items of equipment in the 
        inventories of the reserve components that are 
        substitutes for a required major item of equipment.
          (4) A narrative explanation of the plan of the 
        Secretary concerned to equip each reserve component, 
        including an explanation of the plan to equip units of 
        the reserve components that are short major items of 
        equipment at the outset of war or a contingency 
        operation.
          (5) A narrative discussing the current status of the 
        compatibility and interoperability of equipment between 
        the reserve components and the active forces and the 
        effect of that level of compatibility or 
        interoperability on combat effectiveness, together with 
        a plan to achieve full equipment compatibility and 
        interoperability.
          (6) A narrative discussing modernization shortfalls 
        and maintenance backlogs within the reserve components 
        and the effect of those shortfalls on combat 
        effectiveness.
          (7) A narrative discussing the overall age and 
        condition of equipment currently in the inventory of 
        the reserve components.
  (c) Major Items of Equipment.--In this section, the term 
``major items of equipment'' includes ships, aircraft, combat 
vehicles, and key combat support equipment.
  (d) Format and Level of Detail.--Each report under this 
section shall be expressed in the same format and with the same 
level of detail as the information presented in the Future-
Years Defense Program Procurement Annex prepared by the 
Department of Defense.

           *       *       *       *       *       *       *

PART II--PERSONNEL GENERALLY

           *       *       *       *       *       *       *

CHAPTER 1201--AUTHORIZED STRENGTHS AND DISTRIBUTION IN GRADE

           *       *       *       *       *       *       *

Sec. 12011. Authorized strengths: reserve officers on active duty or on 
                    full-time National Guard duty for administration of 
                    the reserves or the National Guard

  [(a) The number of reserve officers of the Army, Air Force, 
and Marine Corps who may be on active duty or full-time 
National Guard duty in each of the grades of major, lieutenant 
colonel, and colonel, and of the Navy who may be on active duty 
in each of the grades of lieutenant commander, commander, and 
captain, as of the end of any fiscal year for duty described in 
subclauses (B) and (C) of section 523(b)(1) of this title or 
full-time National Guard duty (other than for training) under 
section 502(f) of title 32 may not exceed the number for that 
grade and armed force in the following table:

------------------------------------------------------------------------
                                                          Air     Marine
                [Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,316    1,071      948      140
Lieutenant Colonel or Commander.....    1,759      520      852       90
Colonel or Navy Captain.............      529      188      317       30
------------------------------------------------------------------------

      
  [(b) Whenever the number of officers serving in any grade is 
less than the number authorized for that grade under this 
section, the difference between the two numbers may be applied 
to increase the number authorized under this section for any 
lower grade.
  [(c) Whenever under section 527 of this title the President 
may suspend the operation of any provision of section 523, 525, 
or 526 of this title, the Secretary of Defense may suspend the 
operation of any provision of this section. Any such suspension 
shall, if not sooner ended, end in the manner specified in 
section 527 for a suspension under that section.
  [(d) Upon increasing under subsection (c)(2) of section 115 
of this title the end strength that is authorized under 
subsection (a)(1)(B) of that section for a fiscal year for 
active-duty personnel and full-time National Guard duty 
personnel of an armed force who are to be paid from funds 
appropriated for reserve personnel, the Secretary of Defense 
may increase for that fiscal year the limitation that is set 
forth in subsection (a) of this section for the number of 
officers of that armed force serving in any grade if the 
Secretary determines that such action is in the national 
interest. The percent of the increase may not exceed the 
percent by which the Secretary increases that end strength.]
  (a) Limitations.--(1) Of the total number of members of a 
reserve component who are serving on full-time reserve 
component duty at the end of any fiscal year, the number of 
those members who may be serving in each of the grades of 
major, lieutenant colonel, and colonel may not, as of the end 
of that fiscal year, exceed the number determined in accordance 
with the following table:

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers of that reserve component who may be
                                                                        serving in the grade of:
Total number of members of a reserve component serving ---------------------------------------------------------
         on full-time reserve component duty:                                  Lieutenant
                                                              Major             Colonel             Colonel
----------------------------------------------------------------------------------------------------------------
Army Reserve:
10,000................................................              1,390                740             230
11,000................................................              1,529                803             242
12,000................................................              1,668                864             252
13,000................................................              1,804                924             262
14,000................................................              1,940                984             272
15,000................................................              2,075              1,044             282
16,000................................................              2,210              1,104             291
17,000................................................              2,345              1,164             300
18,000................................................              2,479              1,223             309
19,000................................................              2,613              1,282             318
20,000................................................              2,747              1,341             327
21,000................................................              2,877              1,400              336

Army National Guard:
20,000................................................              1,500                850             325
22,000................................................              1,650                930             350
24,000................................................              1,790              1,010             370
26,000................................................              1,930              1,085             385
28,000................................................              2,070              1,160             400
30,000................................................              2,200              1,235             405
32,000................................................              2,330              1,305             408
34,000................................................              2,450              1,375             411
36,000................................................              2,570              1,445             411
38,000................................................              2,670              1,515             411
40,000................................................              2,770              1,580             411
42,000................................................              2,837              1,644             411

Marine Corps Reserve:
1,100.................................................                106                 56              20
1,200.................................................                110                 60              21
1,300.................................................                114                 63              22
1,400.................................................                118                 66              23
1,500.................................................                121                 69              24
1,600.................................................                124                 72              25
1,700.................................................                127                 75              26
1,800.................................................                130                 78              27
1,900.................................................                133                 81              28
2,000.................................................                136                 84              29
2,100.................................................                139                 87              30
2,200.................................................                141                 90              31
2,300.................................................                143                 92              32
2,400.................................................                145                 94              33
2,500.................................................                147                 96              34
2,600.................................................                149                 98              35

Air Force Reserve:
500...................................................                 83                 85              50
1,000.................................................                155                165              95
1,500.................................................                220                240             135
2,000.................................................                285                310             170
2,500.................................................                350                369             203
3,000.................................................                413                420             220
3,500.................................................                473                464             230
4,000.................................................                530                500             240
4,500.................................................                585                529             247
5,000.................................................                638                550             254
5,500.................................................                688                565             261
6,000.................................................                735                575             268
7,000.................................................                770                595             280
8,000.................................................                805                615             290
10,000................................................                835                635             300

Air National Guard:
5,000.................................................                333                335             251
6,000.................................................                403                394             260
7,000.................................................                472                453             269
8,000.................................................                539                512             278
9,000.................................................                606                571             287
10,000................................................                673                630             296
11,000................................................                740                688             305
12,000................................................                807                742             314
13,000................................................                873                795             323
14,000................................................                939                848             332
15,000................................................              1,005                898             341
16,000................................................              1,067                948             350
17,000................................................              1,126                998             359
18,000................................................              1,185              1,048             368
19,000................................................              1,235              1,098             377
20,000................................................              1,283              1,148              380.
----------------------------------------------------------------------------------------------------------------

  (2) Of the total number of members of the Naval Reserve who 
are serving on full-time reserve component duty at the end of 
any fiscal year, the number of those members who may be serving 
in each of the grades of lieutenant commander, commander, and 
captain may not, as of the end of that fiscal year, exceed the 
number determined in accordance with the following table:

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving in the grade of:
  Total number of members of Naval Reserve serving on  ---------------------------------------------------------
           full-time reserve component duty                 Lieutenant
                                                            commander          Commander            Captain
----------------------------------------------------------------------------------------------------------------
10,000................................................                807                447             141
11,000................................................                867                467             153
12,000................................................                924                485             163
13,000................................................                980                503             173
14,000................................................              1,035                521             183
15,000................................................              1,088                538             193
16,000................................................              1,142                555             203
17,000................................................              1,195                565             213
18,000................................................              1,246                575             223
19,000................................................              1,291                585             233
20,000................................................              1,334                595             242
21,000................................................              1,364                603             250
22,000................................................              1,384                610             258
23,000................................................              1,400                615             265
24,000................................................              1,410                620              270.
----------------------------------------------------------------------------------------------------------------

  (b) Determinations by Interpolation.--If the total number of 
members of a reserve component serving on full-time reserve 
component duty is between any two consecutive numbers in the 
first column of the appropriate table in paragraph (1) or (2) 
of subsection (a), the corresponding authorized strengths for 
each of the grades shown in that table for that component are 
determined by mathematical interpolation between the respective 
numbers of the two strengths. If the total number of members of 
a reserve component serving on full-time reserve component duty 
is more or less than the highest or lowest number, 
respectively, set forth in the first column of the appropriate 
table in paragraph (1) or (2) of subsection (a), the Secretary 
concerned shall fix the corresponding strengths for the grades 
shown in that table at the same proportion as is reflected in 
the nearest limit shown in the table.
  (c) Reallocations to Lower Grades.--Whenever the number of 
officers serving in any grade for duty described in subsection 
(a) is less than the number authorized for that grade under 
this section, the difference between the two numbers may be 
applied to increase the number authorized under this section 
for any lower grade.
  (d) Secretarial Waiver.--(1) Upon determining that it is in 
the national interest to do so, the Secretary of Defense may 
increase for a particular fiscal year the number of reserve 
officers that may be on full-time reserve component duty for a 
reserve component in a grade referred to in a table in 
subsection (a) by a number that does not exceed the number 
equal to 5 percent of the maximum number specified for the 
grade in that table.
  (2) Whenever the Secretary exercises the authority provided 
in paragraph (1), the Secretary shall submit to the Committee 
on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives notice in writing of 
the adjustment made.
  (e) Full-Time Reserve Component Duty Defined.--In this 
section, the term ``full-time reserve component duty'' means 
the following duty:
          (1) Active duty described in sections 10211, 10302, 
        10303, 10304, 10305, 12310, or 12402 of this title.
          (2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32.
          (3) Active duty described in section 708 of title 32.

Sec. 12012. Authorized strengths: senior enlisted members on active 
                    duty or on full-time National Guard duty for 
                    administration of the reserves or the National 
                    Guard

  [(a) The number of enlisted members in pay grades E-8 and E-9 
who may be on active duty (other than for training) or on full-
time National Guard duty under the authority of section 502(f) 
of title 32 (other than for training) as of the end of any 
fiscal year in connection with organizing, administering, 
recruiting, instructing, or training the reserve components or 
the National Guard may not exceed the number for that grade and 
armed force in the following table:
      

------------------------------------------------------------------------
                                                          Air     Marine
                [Grade                  Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................      764      202      502       20
E-8.................................    2,821      429    1,117       94
------------------------------------------------------------------------

  [(b) Whenever the number of members serving in pay grade E-9 
for duty described in subsection (a) is less than the number 
authorized for that grade under subsection (a), the difference 
between the two numbers may be applied to increase the number 
authorized under such subsection for pay grade E-8.
  [(c) Whenever under section 527 of this title the President 
may suspend the operation of any provision of section 523, 525, 
or 526 of this title, the Secretary of Defense may suspend the 
operation of any provision of this section. Any such suspension 
shall, if not sooner ended, end in the manner specified in 
section 527 for a suspension under that section.
  [(d) Upon increasing under subsection (c)(2) of section 115 
of this title the end strength that is authorized under 
subsection (a)(1)(B) of that section for a fiscal year for 
active-duty personnel and full-time National Guard duty 
personnel of an armed force who are to be paid from funds 
appropriated for reserve personnel, the Secretary of Defense 
may increase for that fiscal year the limitation that is set 
forth in subsection (a) of this section for the number of 
enlisted members of that armed force serving in any grade if 
the Secretary determines that such action is in the national 
interest. The percent of the increase may not exceed the 
percent by which the Secretary increases that end strength.]
  (a) Limitations.--Of the total number of members of a reserve 
component who are serving on full-time reserve component duty 
at the end of any fiscal year, the number of those members in 
each of pay grades of E-8 and E-9 who may be serving on active 
duty under section 10211 or 12310, or on full-time National 
Guard duty under the authority of section 502(f) of title 32 
(other than for training) in connection with organizing, 
administering, recruiting, instructing, or training the reserve 
components or the National Guard may not, as of the end of that 
fiscal year, exceed the number determined in accordance with 
the following table:

------------------------------------------------------------------------
                                     Number of members of that reserve
   Total number of members of a     component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          E-8                 E-9
------------------------------------------------------------------------
Army Reserve:
10,000...........................              1,052             154
11,000...........................              1,126             168
12,000...........................              1,195             180
13,000...........................              1,261             191
14,000...........................              1,327             202
15,000...........................              1,391             213
16,000...........................              1,455             224
17,000...........................              1,519             235
18,000...........................              1,583             246
19,000...........................              1,647             257
20,000...........................              1,711             268
21,000...........................              1,775             278

Army National Guard:
20,000...........................              1,650             550
22,000...........................              1,775             615
24,000...........................              1,900             645
26,000...........................              1,945             675
28,000...........................              1,945             705
30,000...........................              1,945             725
32,000...........................              1,945             730
34,000...........................              1,945             735
36,000...........................              1,945             738
38,000...........................              1,945             741
40,000...........................              1,945             743
42,000...........................              1,945             743

Naval Reserve:
10,000...........................                340             143
11,000...........................                364             156
12,000...........................                386             169
13,000...........................                407             182
14,000...........................                423             195
15,000...........................                435             208
16,000...........................                447             221
17,000...........................                459             234
18,000...........................                471             247
19,000...........................                483             260
20,000...........................                495             273
21,000...........................                507             286
22,000...........................                519             299
23,000...........................                531             312
24,000...........................                540             325

Marine Corps Reserve:
1,100............................                 50              11
1,200............................                 55              12
1,300............................                 60              13
1,400............................                 65              14
1,500............................                 70              15
1,600............................                 75              16
1,700............................                 80              17
1,800............................                 85              18
1,900............................                 89              19
2,000............................                 93              20
2,100............................                 96              21
2,200............................                 99              22
2,300............................                101              23
2,400............................                103              24
2,500............................                105              25
2,600............................                107              26

Air Force Reserve:
500..............................                 75              40
1,000............................                145              75
1,500............................                208             105
2,000............................                270             130
2,500............................                325             150
3,000............................                375             170
3,500............................                420             190
4,000............................                460             210
4,500............................                495             230
5,000............................                530             250
5,500............................                565             270
6,000............................                600             290
7,000............................                670             330
8,000............................                740             370
10,000...........................                800             400

Air National Guard
5,000............................              1,020             405
6,000............................              1,070             435
7,000............................              1,120             465
8,000............................              1,170             490
9,000............................              1,220             510
10,000...........................              1,270             530
11,000...........................              1,320             550
12,000...........................              1,370             570
13,000...........................              1,420             589
14,000...........................              1,470             608
15,000...........................              1,520             626
16,000...........................              1,570             644
17,000...........................              1,620             661
18,000...........................              1,670             678
19,000...........................              1,720             695
20,000...........................              1,770              712.
------------------------------------------------------------------------

  (b) Determinations by Interpolation.--If the total number of 
members of a reserve component serving on full-time reserve 
component duty is between any two consecutive numbers in the 
first column of the table in subsection (a), the corresponding 
authorized strengths for each of the grades shown in that table 
for that component are determined by mathematical interpolation 
between the respective numbers of the two strengths. If the 
total number of members of a reserve component serving on full-
time reserve component duty is more or less than the highest or 
lowest number, respectively, set forth in the first column of 
the table in subsection (a), the Secretary concerned shall fix 
the corresponding strengths for the grades shown in the table 
at the same proportion as is reflected in the nearest limit 
shown in the table.
  (c) Reallocations to Lower Grade.--Whenever the number of 
officers serving in pay grade E-9 for duty described in 
subsection (a) is less than the number authorized for that 
grade under this section, the difference between the two 
numbers may be applied to increase the number authorized under 
this section for pay grade E-8.
  (d) Secretarial Waiver.--(1) Upon determining that it is in 
the national interest to do so, the Secretary of Defense may 
increase for a particular fiscal year the number of reserve 
enlisted members that may be on active duty or full-time 
National Guard duty as described in subsection (a) for a 
reserve component in a pay grade referred to in a table in 
subsection (a) by a number that does not exceed the number 
equal to 5 percent of the maximum number specified for that 
grade and reserve component in the table.
  (2) Whenever the Secretary exercises the authority provided 
in paragraph (1), the Secretary shall submit to the Committee 
on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives notice in writing of 
the adjustment made.
  (e) Full-Time Reserve Component Duty Defined.--In this 
section, the term ``full-time reserve component duty'' has the 
meaning given the term in section 12011(e) of this title.

           *       *       *       *       *       *       *

CHAPTER 1205--APPOINTMENT OF RESERVE OFFICERS

           *       *       *       *       *       *       *

Sec. 12205. Commissioned officers: appointment; educational requirement

  (a) * * *
  (b) Exceptions.--Subsection (a) does not apply to the 
following:
          (1) * * *

           *       *       *       *       *       *       *

          (4) The appointment to a grade in the Army Reserve of 
        a person whose original appointment as an officer in 
        the Army Reserve was through the Officer Candidate 
        School program and who immediately before that original 
        appointment was an enlisted member on active duty.
          [(4)] (5) The appointment to or recognition in a 
        higher grade of any person who was appointed to, or 
        federally recognized in, the grade of captain or, in 
        the case of the Navy, lieutenant before October 1, 
        1995.
          [(5)] (6) Recognition in the grade of captain or 
        major in the Alaska Army National Guard of a person who 
        resides permanently at a location in Alaska that is 
        more than 50 miles from each of the cities of 
        Anchorage, Fairbanks, and Juneau, Alaska, by paved road 
        and who is serving in a Scout unit or a Scout 
        supporting unit.

           *       *       *       *       *       *       *

CHAPTER 1209--ACTIVE DUTY

           *       *       *       *       *       *       *

Sec. 12305. Authority of President to suspend certain laws relating to 
                    promotion, retirement, and separation

  (a) * * *

           *       *       *       *       *       *       *

  (c) Upon the termination of a suspension made under the 
authority of subsection (a) of a provision of law otherwise 
requiring the separation or retirement of officers on active 
duty because of age, length of service or length of service in 
grade, or failure of selection for promotion, the Secretary 
concerned shall extend by up to 90 days the otherwise required 
separation or retirement date of any officer covered by the 
suspended provision whose separation or retirement date, but 
for the suspension, would have been before the date of the 
termination of the suspension or within 90 days of the date of 
such termination.

           *       *       *       *       *       *       *

CHAPTER 1213--SPECIAL APPOINTMENTS, ASSIGNMENTS, DETAILS, AND DUTIES

           *       *       *       *       *       *       *

Sec. 12503. Ready Reserve: funeral honors duty

  (a) Order to Duty.--A member of the Ready Reserve may be 
ordered to funeral honors duty, with the consent of the member, 
in preparation for or to perform funeral honors functions at 
the funeral of a veteran as defined in section 1491 of this 
title. Performance of funeral honors duty by a Reserve not on 
active duty shall be treated as inactive-duty training 
(including with respect to travel to and from such duty) for 
purposes of any provision of law other than sections 206 and 
435 of title 37.

           *       *       *       *       *       *       *

CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

           *       *       *       *       *       *       *

Sec. 12533. Termination of program

  (a) * * *
  (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.] November 18, 1997.
  (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.] November 18, 1997. 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] November 18, 1997, 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] November 18, 1997, 
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.

           *       *       *       *       *       *       *

CHAPTER 1223--RETIRED PAY FOR NON-REGULAR SERVICE

           *       *       *       *       *       *       *

Sec. 12731. Age and service requirements

  (a) * * *

           *       *       *       *       *       *       *

  (f) In the case of a person who completes the service 
requirements of subsection (a)(2) during the period beginning 
on October 5, 1994, and ending on December 31, [2001] 2002, the 
provisions of subsection (a)(3) shall be applied by 
substituting ``the last six years'' for ``the last eight 
years''.

Sec. 12731a. Temporary special retirement qualification authority

  (a) * * *
  (b) Period of Authority.--The period referred to in 
subsection (a)(1) is the period beginning on October 23, 1992, 
and ending on December 31, [2001] 2002.

           *       *       *       *       *       *       *

Sec. 12733. Computation of retired pay: computation of years of service

  For the purpose of computing the retired pay of a person 
under this chapter, the person's years of service and any 
fraction of such a year are computed by dividing 360 into the 
sum of the following:
          (1) * * *

           *       *       *       *       *       *       *

          (3) One day for each point credited to the person 
        under clause (B), (C), or (D) of section 12732(a)(2) of 
        this title, but not more than--
                  (A) * * *
                  (B) 75 days in the year of service that 
                includes September 23, 1996, and in any 
                subsequent year of service before the year of 
                service that includes [the date of the 
                enactment of the Floyd D. Spence National 
                Defense Authorization Act for Fiscal Year 
                2001;] October 30, 2000; and
                  (C) 90 days in the year of service that 
                includes [the date of the enactment of the 
                Floyd D. Spence National Defense Authorization 
                Act for Fiscal Year 2001] October 30, 2000, and 
                in any subsequent year of service.

           *       *       *       *       *       *       *

Sec. 12741. Retirement from active reserve service performed after 
                    regular retirement

  (a) Election of Reserve Retired Pay.--A person who, after 
becoming entitled to retired or retainer pay under chapter 65, 
367, 571, or 867 of this title, serves in an active status in a 
reserve component is entitled to retired pay under this chapter 
if--
          (1) * * *
          (2) the person elects under this section to 
        [received] receive retired pay under this chapter; and

           *       *       *       *       *       *       *

  PART III--PROMOTION AND RETENTION OF OFFICERS ON THE RESERVE ACTIVE-
STATUS LIST

           *       *       *       *       *       *       *

   CHAPTER 1407--FAILURE OF SELECTION FOR PROMOTION AND INVOLUNTARY 
SEPARATION

           *       *       *       *       *       *       *

Sec. 14502. Special selection boards: correction of errors

  (a) Officers Not Considered Because of Administrative 
Error.--(1) In the case of an officer or former officer who the 
Secretary of the military department concerned determines was 
not considered for selection for promotion [from in or above 
the promotion zone] by a mandatory promotion board convened 
under section 14101(a) of this title because of administrative 
error, the Secretary concerned shall convene a special 
selection board under this subsection to determine whether such 
officer or former officer should be recommended for promotion. 
Any such board shall be convened under regulations prescribed 
by the Secretary of Defense and shall be appointed and composed 
in accordance with section 14102 of this title and shall 
include the representation of competitive categories required 
by that section. The members of a board convened under this 
subsection shall be required to take an oath in the same manner 
as prescribed in section 14103 of this title.

           *       *       *       *       *       *       *

  (3) If a special selection board convened under paragraph (1) 
does not recommend for promotion an officer or former officer 
in a grade below the grade of colonel or, in the case of an 
officer or former officer of the Navy, captain, whose name was 
referred to it for consideration for selection for promotion 
from in or above the promotion zone, the officer or former 
officer shall be considered to have failed of selection for 
promotion.
  (b) Officers Considered But Not Selected; Material Error.--
(1) In the case of an officer or former officer who was 
eligible for promotion and was considered for selection for 
promotion [from in or above the promotion zone under this 
chapter by a selection board] by a promotion board convened 
under section 14101(a) of this title but was not selected, the 
Secretary of the military department concerned may, under 
regulations prescribed by the Secretary of Defense, convene a 
special selection board under this subsection to determine 
whether the officer or former officer should be recommended for 
promotion, if the Secretary determines that--
          (A) the action of the selection board that considered 
        the officer or former officer was contrary to law or 
        involved material error of fact or material 
        administrative error; or
          (B) the selection board did not have before it for 
        its consideration material information.

           *       *       *       *       *       *       *

  PART IV--TRAINING FOR RESERVE COMPONENTS AND EDUCATIONAL ASSISTANCE 
PROGRAMS

           *       *       *       *       *       *       *

   CHAPTER 1606--EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE SELECTED 
RESERVE

           *       *       *       *       *       *       *

Sec. 16133. Time limitation for use of entitlement

  (a) * * *
  (b)(1) In the case of a person--
          (A) * * *
          (B) who, on or after the date on which such person 
        became entitled to educational assistance under this 
        chapter ceases to be a member of the Selected Reserve 
        during the period beginning on October 1, 1991, and 
        ending on December 31, [2001] 2002, by reason of the 
        inactivation of the person's unit of assignment or by 
        reason of involuntarily ceasing to be designated as a 
        member of the Selected Reserve pursuant to section 
        10143(a) of this title,

           *       *       *       *       *       *       *

CHAPTER 1608--HEALTH PROFESSIONS STIPEND PROGRAM

           *       *       *       *       *       *       *

Sec. 16201. Financial assistance: health-care professionals in reserve 
                    components

  (a) Establishment of Program.--For the purpose of obtaining 
adequate numbers of commissioned officers in the reserve 
components who are qualified in health professions [specialties 
critically needed in wartime], the Secretary of each military 
department may establish and maintain a program to provide 
financial assistance under this chapter to persons engaged in 
[training in such specialties] training that leads to a degree 
in medicine or dentistry or training in a health professions 
specialty that is critically needed in wartime. Under such a 
program, the Secretary concerned may agree to pay a financial 
stipend to persons engaged in [training in certain health care 
specialties] health care education and training in return for a 
commitment to subsequent service in the Ready Reserve.
  (b) Medical and Dental School Students.--(1) Under the 
stipend program under this chapter, the Secretary of the 
military department concerned may enter into an agreement with 
a person who--
          (A) is eligible to be appointed as an officer in a 
        reserve component;
          (B) is enrolled or has been accepted for enrollment 
        in an institution in a course of study that results in 
        a degree in medicine or dentistry;
          (C) signs an agreement that, unless sooner separated, 
        the person will--
                  (i) complete the educational phase of the 
                program;
                  (ii) accept a reappointment or redesignation 
                within the person's reserve component, if 
                tendered, based upon the person's health 
                profession, following satisfactory completion 
                of the educational and intern programs; and
                  (iii) participate in a residency program; and
          (D) if required by regulations prescribed by the 
        Secretary of Defense, agrees to apply for, if eligible, 
        and accept, if offered, residency training in a health 
        profession skill which has been designated by the 
        Secretary of Defense as a critically needed wartime 
        skill.
  (2) Under the agreement--
          (A) the Secretary of the military department 
        concerned shall agree to pay the participant a stipend, 
        in the amount determined under subsection (f), for the 
        period or the remainder of the period the student is 
        satisfactorily progressing toward a degree in medicine 
        or dentistry while enrolled in an accredited medical or 
        dental school;
          (B) the participant shall not be eligible to receive 
        such stipend before appointment, designation, or 
        assignment as an officer for service in the Ready 
        Reserve;
          (C) the participant shall be subject to such active 
        duty requirements as may be specified in the agreement 
        and to active duty in time of war or national emergency 
        as provided by law for members of the Ready Reserve; 
        and
          (D) the participant shall agree to serve, upon 
        successful completion of the program, one year in the 
        Selected Reserve for each six months, or part thereof, 
        for which the stipend is provided. In the case of a 
        participant who enters into a subsequent agreement 
        under subsection (c) and successfully completes 
        residency training in a specialty designated by the 
        Secretary of Defense as a specialty critically needed 
        by the military department in wartime, the requirement 
        to serve in the Selected Reserve may be reduced to one 
        year for each year, or part thereof, for which the 
        stipend was provided while enrolled in medical or 
        dental school.
  [(b)] (c) Physicians and Dentists in Critical Wartime 
Specialties.--(1) Under the stipend program under this chapter, 
the Secretary of the military department concerned may enter 
into an agreement with a person who--
          (A) * * *
          (B) is eligible for appointment, designation, or 
        assignment as a medical officer or dental officer in 
        the Reserve of the armed force concerned or has been 
        appointed as a medical or dental officer in the Reserve 
        of the armed force concerned; and

           *       *       *       *       *       *       *

  (2) Under the agreement--
          (A) the Secretary shall agree to pay the participant 
        a stipend, in an amount determined under subsection 
        [(e)] (f), for the period or the remainder of the 
        period of the residency program in which the 
        participant enrolls or is enrolled;

           *       *       *       *       *       *       *

          (D) the participant shall agree to serve, upon 
        successful completion of the program, [two years in the 
        Ready Reserve for each year,] one year in the Ready 
        Reserve for each six months, or part thereof, for which 
        the stipend is provided, to be served in the Selected 
        Reserve or in the Individual Ready Reserve as specified 
        in the agreement.
  [(c)] (d) Registered Nurses in Critical Specialties.--(1) * * 
*
  (2) Under the agreement--
          (A) the Secretary shall agree to pay the participant 
        a stipend, in an amount determined under subsection 
        [(e)] (f), for the period or the remainder of the 
        period of the nursing program in which the participant 
        enrolls or is enrolled;

           *       *       *       *       *       *       *

          (D) the participant shall agree to serve, upon 
        successful completion of the program, [two years in the 
        Ready Reserve for each year,] one year in the Ready 
        Reserve for each six months, or part thereof, for which 
        the stipend is provided, to be served in the Selected 
        Reserve or in the Individual Ready Reserve as specified 
        in the agreement.
  [(d)] (e) Baccalaureate Students in Nursing or Other Health 
Professions.--(1) * * *

           *       *       *       *       *       *       *

  [(e)] (f) Amount of Stipend.--The amount of a stipend under 
an agreement under subsection (b) or (c) shall be--
          (1) the stipend rate in effect for participants in 
        the Armed Forces Health Professions Scholarship Program 
        under section 2121(d) of this title, if the participant 
        has agreed to serve in the Selected Reserve; or
          (2) one-half of that rate, if the participant has 
        agreed to serve in the Individual Ready Reserve.

           *       *       *       *       *       *       *

CHAPTER 1609--EDUCATION LOAN REPAYMENT PROGRAMS

           *       *       *       *       *       *       *

Sec. 16302. Education loan repayment program: health professions 
                    officers serving in Selected Reserve with wartime 
                    critical medical skill shortages

  (a) * * *

           *       *       *       *       *       *       *

  (d) The authority provided in this section shall apply only 
in the case of a person first appointed as a commissioned 
officer before January 1, [2002] 2003.

           *       *       *       *       *       *       *

                              ----------                              

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996

           *       *       *       *       *       *       *

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

           *       *       *       *       *       *       *

Subtitle E--Chemical Demilitarization Program

           *       *       *       *       *       *       *

SEC. 152. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS 
                    AND MUNITIONS.

  (a) * * *
  (b) Initiation of Demilitarization Operations.--The Secretary 
of Defense may not initiate destruction of the chemical 
munitions stockpile stored at a site until the following 
support measures are in place for that site:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Emergency preparedness and response capabilities 
        have been established at the site and in the 
        surrounding communities to respond to emergencies 
        involving risks to public health or safety that are 
        identified by the Secretary of Defense as being risks 
        resulting from the storage or destruction of lethal 
        chemical agents and munitions at the site.
          (5) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics recommends initiation of 
        destruction at the site after considering the 
        recommendation by the board established by subsection 
        (g).

           *       *       *       *       *       *       *

  (g) Oversight Boards.--(1) The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall convene, for each 
site at which the chemical munitions stockpile is stored, an 
independent oversight board composed of--
          (A) the Secretary of the Army;
          (B) the Director of the Federal Emergency Management 
        Agency;
          (C) the Administrator of the Environmental Protection 
        Agency;
          (D) the President of the National Academy of 
        Sciences;
          (E) the Governor of the State in which the site is 
        located; and
          (F) one individual designated by the Under Secretary 
        from a list of three local representatives of the area 
        in which the site is located, prepared jointly by the 
        Member of the House of Representatives who represents 
        the Congressional District in which the site is located 
        and the Senators representing the State in which the 
        site is located.
  (2) Not later than six months after each such board is 
convened, the board shall make a recommendation to the Under 
Secretary whether the destruction of the chemical munitions 
stockpile should be initiated at the site.
  (3) The Under Secretary may not recommend initiation of 
destruction of the chemical munitions stockpile at a site after 
considering a negative recommendation of the board until 90 
days after the Under Secretary provides notice to Congress of 
the intent to recommend initiation of destruction.

           *       *       *       *       *       *       *

TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

Subtitle E--Miscellaneous Reviews, Studies, and Reports

           *       *       *       *       *       *       *

[SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END STRENGTH 
                    ALLOCATIONS.

  [(a) In General.--During fiscal years 1996 through 2001, the 
Comptroller General of the United States shall analyze the 
plans of the Secretary of the Army for the allocation of 
assigned active component end strengths for the Army through 
the requirements process known as Total Army Analysis 2003 and 
through any subsequent similar requirements process of the Army 
that is conducted before 2002. The Comptroller General's 
analysis shall consider whether the proposed active component 
end strengths and planned allocation of forces for that period 
will be sufficient to implement the national military strategy. 
In monitoring those plans, the Comptroller General shall 
determine the extent to which the Army will be able during that 
period--
          [(1) to man fully the combat force based on the 
        projected active component Army end strength for each 
        of fiscal years 1996 through 2001;
          [(2) to meet the support requirements for the force 
        and strategy specified in the report of the Bottom-Up 
        Review, including requirements for operations other 
        than war; and
          [(3) to streamline further Army infrastructure in 
        order to eliminate duplication and inefficiencies and 
        replace active duty personnel in overhead positions, 
        whenever practicable, with civilian or reserve 
        personnel.
  [(b) Access to Documents, Etc.--The Secretary of the Army 
shall ensure that the Comptroller General is provided access, 
on a timely basis and in accordance with the needs of the 
Comptroller General, to all analyses, models, memoranda, 
reports, and other documents prepared or used in connection 
with the requirements process of the Army known as Total Army 
Analysis 2003 and any subsequent similar requirements process 
of the Army that is conducted before 2002.
  [(c) Annual Report.--Not later than March 1 of each year 
through 2002, the Comptroller General shall submit to Congress 
a report on the findings and conclusions of the Comptroller 
General under this section.]

           *       *       *       *       *       *       *

                              ----------                              

SECTION 216 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS 
                             1992 AND 1993

SEC. 216. MANAGEMENT OF NAVY MINE COUNTERMEASURES PROGRAMS.

  (a) Responsibility.--Subject to the authority, direction, and 
control of the Secretary of Defense, the Under Secretary of 
Defense for Acquisition and Technology shall have the primary 
responsibility for developing and testing naval mine 
countermeasures systems during fiscal years 1996 through [2003] 
2008.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 3701 OF TITLE 31, UNITED STATES CODE

Sec. 3701. Definitions and application

  (a) * * *
  (b)(1) In subchapter II of this chapter and subsection (a)(8) 
of this section, the term ``claim'' or ``debt'' means any 
amount of funds or property that has been determined by an 
appropriate official of the Federal Government to be owed to 
the United States by a person, organization, or entity other 
than another Federal agency. A claim includes, without 
limitation--
          (A) * * *
          (B) expenditures of nonappropriated funds, including 
        actual and administrative costs related to shoplifting, 
        theft detection, and theft prevention,

           *       *       *       *       *       *       *

                              ----------                              

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000

           *       *       *       *       *       *       *

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *

TITLE III--OPERATION AND MAINTENANCE

           *       *       *       *       *       *       *

Subtitle E--Performance of Functions by Private-Sector Sources

           *       *       *       *       *       *       *

SEC. 343. REPORT ON USE OF EMPLOYEES OF NON-FEDERAL ENTITIES TO PROVIDE 
                    SERVICES TO DEPARTMENT OF DEFENSE.

  [(a) Report Required.--Not later than March 1, 2001, the 
Secretary of Defense shall submit to Congress a report 
describing the use during the previous fiscal year of non-
Federal entities to provide services to the Department of 
Defense.]
  (a) Reporting Requirement for Department of the Army.--(1) 
Not later than March 1 of each fiscal year, the Secretary of 
the Army shall submit to Congress a report describing the use 
during the previous fiscal year of non-Federal entities to 
provide services to the Department of the Army.
  (2) The data collection required to prepare the report is 
deemed to be in compliance with the requirements of chapter 35 
of title 44, United States Code, commonly known as the 
Paperwork Reduction Act.
  (3) The report required by this section is needed to comply 
with sections 115a and 129a of title 10, United States Code, 
and is not a procurement action.
  (b) Content of Report.--To the extent practicable using 
information available from existing data collection and 
reporting systems available to the [Department of Defense] 
Department of the Army and the non-Federal entities referred to 
in subsection (a), the report shall--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Limitation on Requirement for Non-Federal Entities To 
Provide Information.--For the purposes of meeting the 
requirements set forth in subsection (b), the Secretary may not 
require the provision of information beyond the information 
that is currently provided to the Department by the non-Federal 
entities referred to in subsection (a), except for the number 
of direct and indirect work year equivalents associated with 
[Department of Defense] Department of the Army contracts, 
identified by contract number, to the extent this information 
is available to the contractor from existing data collection 
systems.
  (d) GAO Evaluation.--Not later than 60 days after the 
Secretary submits to Congress the report required under 
subsection (a) for a fiscal year, the Comptroller General shall 
submit to Congress an evaluation of the report.

           *       *       *       *       *       *       *

TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

                     Subtitle D--Service Academies

SEC. 531. STRENGTH LIMITATIONS AT THE SERVICE ACADEMIES.

  (a) * * *
  (b) Reenactment of Limitation; Authorized Variance.--(1) * * 
*
  (2) Section 6954 of such title is amended--
          (A) in subsection (a), by striking the matter 
        preceding paragraph (1) and inserting the following:
                  (i) * * *

           *       *       *       *       *       *       *

Subtitle E--Education and Training

           *       *       *       *       *       *       *

SEC. 549. RECODIFICATION AND CONSOLIDATION OF STATUTES DENYING FEDERAL 
                    GRANTS AND CONTRACTS BY CERTAIN DEPARTMENTS AND 
                    AGENCIES TO INSTITUTIONS OF HIGHER EDUCATION THAT 
                    PROHIBIT SENIOR ROTC UNITS OR MILITARY RECRUITING 
                    ON CAMPUS.

  (a) Recodification and Consolidation for Limitations on 
Federal Grants and Contracts.--(1) * * *
  (2) The item relating to section 983 in the table of sections 
at the beginning of [such chapter] chapter 49 of title 10, 
United States Code, is amended to read as follows:

           *       *       *       *       *       *       *

Subtitle I--Matters Relating to Missing Persons

           *       *       *       *       *       *       *

SEC. 576. RECOVERY AND IDENTIFICATION OF REMAINS OF CERTAIN WORLD WAR 
                    II SERVICEMEN LOST IN PACIFIC THEATER OF 
                    OPERATIONS.

  (a) Recovery of Remains.--(1) * * *

           *       *       *       *       *       *       *

  (3) Not later than September 30, 2000, the Secretary shall 
submit to Congress a report setting forth the efforts made to 
accomplish the objectives specified in paragraph (1). The 
Secretary shall include in the report a statement of the 
backlog of cases at the Central Identification Laboratory, 
Hawaii, shown by conflict, and the status of the joint manning 
plan required by section 566(c) of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261; 112 Stat. 2029).

           *       *       *       *       *       *       *

                       Subtitle J--Other Matters

SEC. 577. AUTHORITY FOR SPECIAL COURTS-MARTIAL TO IMPOSE SENTENCES TO 
                    CONFINEMENT AND FORFEITURES OF PAY OF UP TO ONE 
                    YEAR.

  (a) Maximum Punishments That May Be Adjudged by a Special 
Court-Martial.--Section 819 of title 10, United States Code 
(article 19 of the Uniform Code of Military Justice), is 
amended--
          (1) * * *
          (2) in the third sentence, by inserting after ``A 
        [bad conduct] bad-conduct discharge'' the following: 
        ``, confinement for more than six months, or forfeiture 
        of pay for more than six months''.

           *       *       *       *       *       *       *

SEC. 591. DEFENSE TASK FORCE ON DOMESTIC VIOLENCE.

  (a) * * *

           *       *       *       *       *       *       *

  (h) Administrative Support.--(1) Each member of the task 
force who is a member of the Armed Forces or civilian officer 
or employee of the United States shall serve without 
compensation (other than the compensation to which entitled as 
a member of the Armed Forces or an officer or employee of the 
United States, as the case may be)[, but 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 
the member's home or regular places of business in the 
performance of services for the task force]. Other members of 
the task force shall be appointed in accordance with, and 
subject to, section 3161 of title 5, United States Code.

           *       *       *       *       *       *       *

  (j) Termination.--The task force shall terminate [three years 
after the date of the enactment of this Act] on April 24, 2003.

           *       *       *       *       *       *       *

TITLE VII--HEALTH CARE PROVISIONS

           *       *       *       *       *       *       *

                    Subtitle A--Health Care Services

SEC. 701. PHARMACY BENEFITS PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  [(d) Study for Design of Pharmacy Benefit for Certain Covered 
Beneficiaries.--(1) Not later than April 15, 2001, the 
Secretary of Defense shall prepare and submit to Congress--
          [(A) a study on a design for a comprehensive pharmacy 
        benefit for covered beneficiaries under chapter 55 of 
        title 10, United States Code, who are entitled to 
        benefits under part A, and enrolled under part B, of 
        title XVIII of the Social Security Act; and
          [(B) an estimate of the costs of implementing and 
        operating such design.
  [(2) The design described in paragraph (1)(A) shall 
incorporate the elements of the pharmacy benefits program 
required to be established under section 1074g of title 10, 
United States Code (as added by subsection (a)).]

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                       Subtitle B--Other Matters

SEC. 811. MENTOR-PROTEGE PROGRAM IMPROVEMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Reports and Reviews.--(1) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *
  (B) The study shall include the following:
          (i) * * *

           *       *       *       *       *       *       *

          (v) A review of the relationship between the results 
        of the [Mentor-Protegee] Mentor-Protege Program and the 
        objectives established in section 2323 of title 10, 
        United States Code.

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle F--Memorial Objects and Commemorations

           *       *       *       *       *       *       *

SEC. 1052. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

  (a) * * *
  (b) Change of Name.--(1) Subsection (c) of such section, as 
amended by section 1067 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
Stat. 2134), is amended by striking `` [`The Department] the 
`Department of Defense Korean War Commemoration' '' and 
inserting `` `The United States of America Korean War 
Commemoration' ''.

           *       *       *       *       *       *       *

SEC. 1053. COMMEMORATION OF THE VICTORY OF FREEDOM IN THE COLD WAR.

  (a) Findings.--Congress makes the following findings:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Tens of thousands of United States soldiers, 
        sailors, airmen, and Marines paid the ultimate price 
        during the Cold War in order to preserve the freedoms 
        and liberties enjoyed in democratic countries.

           *       *       *       *       *       *       *

TITLE XII--MATTERS RELATING TO OTHER NATIONS

           *       *       *       *       *       *       *

Subtitle A--Matters Relating to the People's Republic of China

           *       *       *       *       *       *       *

SEC. 1202. ANNUAL REPORT ON MILITARY POWER OF THE PEOPLE'S REPUBLIC OF 
                    CHINA.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Report on Sales and Transfers From States of the Former 
Soviet Union to China.--(1) The report to be submitted under 
this section not later than March 1, 2002, shall include in a 
separate section a report describing the sales and transfer of 
military hardware, expertise, and technology from states of the 
former Soviet Union to the People's Republic of China. The 
report shall set forth the history of such sales and transfers 
since 1990, forecast possible future sales and transfers, and 
address the implications of those sales and transfers for the 
security of the United States and its friends and allies in 
Asia.
  (2) The report shall include analysis and forecasts of the 
following matters related to military cooperation between 
states of the former Soviet Union and the People's Republic of 
China:
          (A) The policy of each of those states with respect 
        to arms sales to, and military cooperation with, the 
        People's Republic of China.
          (B) Any laws or regulations of those states that 
        could prohibit or limit such sales or cooperation.
          (C) The extent in each of those states of government 
        knowledge, cooperation, or condoning of sales or 
        transfers of military hardware, expertise, or 
        technology to the People's Republic of China.
          (D) An itemization of sales or transfers of military 
        hardware, expertise, or technology from any of those 
        states to the People's Republic of China that have 
        taken place since 1990, with a particular focus on 
        command, control, communications, and intelligence 
        systems.
          (E) A description of any sale or transfer of military 
        hardware, expertise, or technology from any of those 
        states to the People's Republic of China that is 
        currently under negotiation or contemplation through 
        the end of 2005.
          (F) Identification of Chinese defense industries in 
        which technicians from states of the former Soviet 
        Union are working and of defense industries of those 
        states in which Chinese technicians are working and a 
        description in each case of the extent and the nature 
        of the work performed by such technicians.
          (G) The extent of assistance by any of those states 
        to key research and development programs of China, 
        including programs for development of weapons of mass 
        destruction and delivery vehicles for such weapons, 
        programs for development of advanced conventional 
        weapons, and programs for development of unconventional 
        weapons.
          (H) The extent of assistance by any of those states 
        to information warfare or electronic warfare programs 
        of China.
          (I) The extent of assistance by any of those states 
        to manned and unmanned space operations of China.
          (J) The extent to which arms sales by any of those 
        states to the People's Republic of China are a source 
        of funds for military research and development or 
        procurement programs in the selling state.
  (3) The report under paragraph (1) shall include, with 
respect to each area of analysis and forecasts specified in 
paragraph (2)--
          (A) an assessment of the military effects of such 
        sales or transfers to entities in the People's Republic 
        of China;
          (B) an assessment of the ability of the People's 
        Liberation Army to assimilate such sales or transfers, 
        mass produce new equipment, or develop doctrine for 
        use; and
          (C) the potential threat of developments related to 
        such effects on the security interests of the United 
        States and its friends and allies in Asia.

           *       *       *       *       *       *       *

Subtitle D--Other Matters

           *       *       *       *       *       *       *

SEC. 1232. LIMITATION ON DEPLOYMENT OF ARMED FORCES IN HAITI DURING 
                    FISCAL YEAR 2000 AND CONGRESSIONAL NOTICE OF 
                    DEPLOYMENTS TO HAITI.

  (a) * * *
  [(b) Report.--Whenever there is a deployment of United States 
Armed Forces to Haiti after May 31, 2000, the President shall, 
not later than 96 hours after such deployment begins, transmit 
to Congress a written report regarding the deployment. In any 
such report, the President shall specify (1) the purpose of the 
deployment, and (2) the date on which the deployment is 
expected to end.]

           *       *       *       *       *       *       *

                   TITLE XIII--COOPERATIVE THREAT RE-
                    DUCTION WITH STATES OF THE FOR-
MER SOVIET UNION

           *       *       *       *       *       *       *

SEC. 1305. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION.

  No fiscal year 2000 Cooperative Threat Reduction funds, and 
no funds appropriated for Cooperative Threat Reduction programs 
after the date of the enactment of this Act, may be obligated 
or expended for planning, design, or construction of a chemical 
weapons destruction facility in Russia until the Secretary of 
Defense submits to Congress a certification that there has 
been--
          (1) full and accurate disclosure by Russia of the 
        size of its existing chemical weapons stockpile;
          (2) a demonstrated annual commitment by Russia to 
        allocate at least $25,000,000 to chemical weapons 
        elimination;
          (3) development by Russia of a practical plan for 
        destroying its stockpile of nerve agents;
          (4) enactment of a law by Russia that provides for 
        the elimination of all nerve agents at a single site; 
        and
          (5) an agreement by Russia to destroy its chemical 
        weapons production facilities at Volgograd and 
        Novocheboksark.

           *       *       *       *       *       *       *

TITLE XIV--PROLIFERATION AND EXPORT CONTROLS

           *       *       *       *       *       *       *

SEC. 1402. ANNUAL REPORT ON TRANSFERS OF MILITARILY SENSITIVE 
                    TECHNOLOGY TO COUNTRIES AND ENTITIES OF CONCERN.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Definition.--As used in this section, the term 
``countries and entities of concern'' means--
          (1) * * *
          (2) any country that--
                  (A) has detonated a nuclear explosive device 
                (as defined in section 830(4) of the Nuclear 
                Proliferation Prevention Act of 1994 (22 U.S.C. 
                [3201 note] 6305(4))); and

           *       *       *       *       *       *       *

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

           *       *       *       *       *       *       *

TITLE XXIX--COMMISSION ON NATIONAL MILITARY MUSEUM

           *       *       *       *       *       *       *

SEC. 2902. DUTIES OF COMMISSION.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Requirements for Location on Navy Annex Property.--In the 
case of a recommendation under subsection (c)(1) to authorize 
construction of a national military museum on the Navy Annex 
property authorized for reservation for such purpose by section 
[2871(b)] 2881(b), the design of the national military museum 
on such property shall be subject to the following 
requirements:
          (1) * * *

           *       *       *       *       *       *       *

                              ----------                              

     SECTION 1407 OF THE DEFENSE DEPENDENTS' EDUCATION ACT OF 1978

             school system for dependents in overseas areas

  Sec. 1407. (a) * * *

           *       *       *       *       *       *       *

  (c) Continuation of Enrollment for Certain Dependents of 
Members of the Armed Forces Involuntarily Separated.--(1) A 
member of the Armed Forces serving on active duty on September 
30, 1990, who is involuntarily separated during the period 
beginning on October 1, 1990, and ending on December 31, [2001] 
2002, and who has a dependent described in paragraph (2) who is 
enrolled in a school of the defense dependents' education 
system (or a school for which tuition is provided under 
subsection (b)) on the date of that separation shall be 
eligible to enroll or continue the enrollment of that dependent 
at that school (or another school serving the same community) 
for the final year of secondary education of that dependent in 
the same manner as if the member were still on active duty.

           *       *       *       *       *       *       *

  (d) Auxiliary Services Available to Home School Students.--
(1) A dependent who is educated in a home school setting, but 
who is eligible to enroll in a school of the defense 
dependents' education system, shall be permitted to use or 
receive auxiliary services of that school without being 
required to either enroll in that school or register for a 
minimum number of courses offered by that school. The dependent 
may be required to satisfy other eligibility requirements 
applicable to students actually enrolled in that school who use 
or receive the same auxiliary services.
  (2) For purposes of paragraph (1), the term ``auxiliary 
services'' includes registration in individual courses, use of 
academic resources, access to the library of the school, after 
hours use of school facilities, and participation in music, 
sports, and other extracurricular and interscholastic 
activities.
  [(d)] (e)(1)(A) Chapter 7 of title 37, United States Code, 
relating to allowances authorized for members of the uniformed 
services, is amended by adding after section 428 the following 
new section:
          (i) * * *

           *       *       *       *       *       *       *

                              ----------                              

FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001

           *       *       *       *       *       *       *

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *

TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

Subtitle B--Reserve Component Personnel Policy

           *       *       *       *       *       *       *

SEC. 525. EXTENSION OF INVOLUNTARY CIVIL SERVICE RETIREMENT DATE FOR 
                    CERTAIN RESERVE TECHNICIANS.

  (a) * * *
  (b) Transition Provision.--(1) An individual who before the 
date of the enactment of this Act was involuntarily separated 
or retired from employment as an Army Reserve or Air Force 
Reserve technician under section 10218 of title 10, United 
States Code, and who would not have been so separated if the 
provisions of [subsection (c)] subsections (a) and (b) of that 
section, as amended by subsection (a), had been in effect at 
the time of such separation may, with the approval of the 
Secretary concerned, be reinstated to the technician status 
held by that individual immediately before that separation. The 
effective date of any such reinstatement is the date the 
employee resumes technician status.

           *       *       *       *       *       *       *

Subtitle G--Other Matters

           *       *       *       *       *       *       *

SEC. 574. MANAGEMENT AND PER DIEM REQUIREMENTS FOR MEMBERS SUBJECT TO 
                    LENGTHY OR NUMEROUS DEPLOYMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Review of Management of Deployments of Individual 
Members.--Not later than March 31, 2002, the Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
administration of section 991 of title 10, United States Code, 
during fiscal year 2001. The report shall include--
          [(1) a discussion of the experience in tracking and 
        recording the deployments of members of the Armed 
        Forces; and
          [(2) any recommendations for revision of such section 
        that the Secretary considers appropriate.]
          (1) a discussion of the experience in tracking and 
        recording the deployments of members of the Armed 
        Forces and the payment of the per diem allowance for 
        lengthy or numerous deployments in accordance with 
        section 436 of title 37, United States Code;
          (2) specific comments regarding the effect of section 
        991 of title 10, United States Code, and section 436 of 
        title 37, United States Code, on the readiness of the 
        Navy and Marine Corps given the deployment intensive 
        mission of these services; and
          (3) any recommendations for revision of section 991 
        of title 10, United States Code, or section 436 of 
        title 37, United States Code, that the Secretary 
        considers appropriate.

           *       *       *       *       *       *       *

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

           *       *       *       *       *       *       *

Subtitle A--Pay and Allowances

           *       *       *       *       *       *       *

SEC. 603. REVISED METHOD FOR CALCULATION OF BASIC ALLOWANCE FOR 
                    SUBSISTENCE.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Early Termination of BAS Transitional Authority.--
Effective [October 1, 2001] January 1, 2002, subsections (c) 
through (f ) of section 602 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 37 
U.S.C. 402 note) are repealed.

           *       *       *       *       *       *       *

TITLE VII--HEALTH CARE PROVISIONS

           *       *       *       *       *       *       *

                      Subtitle C--TRICARE Program

SEC. 721. IMPROVEMENT OF ACCESS TO HEALTH CARE UNDER THE TRICARE 
                    PROGRAM.

  (a) Waiver of Nonavailability Statement or 
Preauthorization.--In the case of a covered beneficiary under 
chapter 55 of title 10, United States Code, who is enrolled in 
TRICARE Standard, the Secretary of Defense may not require with 
regard to authorized health care services (other than mental 
health services) under any [new] contract for the provision of 
health care services under such chapter that the beneficiary--
          (1) * * *

           *       *       *       *       *       *       *

  [(c) Exceptions.--Subsection (a) shall not apply if--
          [(1) the Secretary demonstrates significant costs 
        would be avoided by performing specific procedures at 
        the affected military medical treatment facilities;
          [(2) the Secretary determines that a specific 
        procedure must be provided at the affected military 
        medical treatment facility to ensure the proficiency 
        levels of the practitioners at the facility; or
          [(3) the lack of nonavailability statement data would 
        significantly interfere with TRICARE contract 
        administration.]
  (c) Exceptions.--(1) Subject to paragraph (2), the Secretary 
may provide that subsection (a) shall not apply for a period of 
up to one year if--
          (A) the Secretary--
                  (i) demonstrates significant costs would be 
                avoided by performing specific procedures at 
                the affected military medical treatment 
                facility or facilities;
                  (ii) determines that a specific procedure 
                must be provided at the affected military 
                medical treatment facility or facilities to 
                ensure the proficiency levels of the 
                practitioners at the facility or facilities; or
                  (iii) determines that the lack of 
                nonavailability statement data would 
                significantly interfere with TRICARE contract 
                administration;
          (B) the Secretary provides notification of the 
        Secretary's intent to make an exception under this 
        subsection to covered beneficiaries who receive care at 
        the military medical treatment facility or facilities 
        that will be affected by the decision to make an 
        exception under this subsection;
          (C) the Secretary provides notification to the 
        Committees on Armed Services of the House of 
        Representatives and the Senate of the Secretary's 
        intent to make an exception under this subsection, the 
        reason for making an exception, and the date that a 
        nonavailability statement will be required; and
          (D) 60 days have elapsed since the date of the 
        notification described in subparagraph (C).
  (2)(A) Except as provided in subparagraph (B), the Secretary 
may make an exception under this subsection with respect to--
          (i) one or more services performed at a military 
        medical treatment facility or facilities; or
          (ii) one or more services performed in a TRICARE 
        region.
  (B) With respect to maternity care, the Secretary may make an 
exception under this subsection with respect to a military 
medical treatment facility.
  (3) In the case of health care provided in conjunction with a 
graduate medical education program, the period of 
nonapplicability described in paragraph (1) shall be, instead 
of one year, the period for which a residency review committee 
has approved the program.
  (d) Effective Date.--This section shall take effect on 
[October 1, 2001] two years after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 2002.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                   Subtitle B--Information Technology

SEC. 811. ACQUISITION AND MANAGEMENT OF INFORMATION TECHNOLOGY.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Milestone Approval for Major Automated Information 
Systems.--The revised directive required by subsection (b) 
shall prohibit [Milestone I] Milestone B approval, [Milestone 
II] Milestone C approval, or [Milestone III] full rate 
production approval (or the equivalent) of a major automated 
information system within the Department of Defense until the 
Chief Information Officer has determined that--
          (1) * * *

           *       *       *       *       *       *       *

SEC. 814. NAVY-MARINE CORPS INTRANET.

  (a) * * *
  (b) Phased Implementation.--(1) * * *

           *       *       *       *       *       *       *

  (4) No increment of the Navy-Marine Corps Intranet that is 
implemented during fiscal year [2001] 2002 may include any 
activities of the [Marine Corps, the naval shipyards, or] naval 
shipyards or the naval aviation depots. Funds available for 
fiscal year [2001] 2002 for activities of the [Marine Corps, 
the naval shipyards, or] naval shipyards or the naval aviation 
depots may not be expended for any contract for the Navy-Marine 
Corps Intranet.
  (c) [Prohibition on Increase of Rates Charged.--] 
Prohibitions.--(1) The Secretary of the Navy shall ensure that 
rates charged by a working capital funded industrial facility 
of the Department of the Navy for goods or services provided by 
such facility are not increased during fiscal year [2001] 2002 
for the purpose of funding the Navy-Marine Corps Intranet 
contract.
  (2) The Navy Intranet contract may not include any activities 
of the Marine Corps.

           *       *       *       *       *       *       *

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

           *       *       *       *       *       *       *

Subtitle B--Department of Defense Organizations

           *       *       *       *       *       *       *

[SEC. 916. SEMIANNUAL REPORT ON JOINT REQUIREMENTS OVERSIGHT COUNCIL 
                    REFORM INITIATIVE.

  [(a) Semiannual Report.--The Chairman of the Joints Chiefs of 
Staff shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a series of five semiannual reports, as 
prescribed by subsection (b), on the activities of the Joint 
Requirements Oversight Council. The principal focus of each 
such report shall be on the progress made on the initiative of 
the Chairman to reform and refocus the Joint Requirements 
Oversight Council.
  [(b) Submission of Reports.--Reports under this section shall 
be submitted not later than March 1, 2001, September 1, 2001, 
March 1, 2002, September 1, 2002, and March 1, 2003. Each 
report shall cover the half of a fiscal year that ends five 
months before the date on which the report is due.
  [(c) Content.--In the case of any report under this section 
after the first such report, if any matter to be included is 
unchanged from the preceding report, that matter may be 
included by reference to the preceding report. Each such report 
shall include, to the extent practicable, the following:
          [(1) A listing of each of the capability areas 
        designated by the Chairman of the Joints Chiefs of 
        Staff as being within the principal domain of the Joint 
        Requirements Oversight Council and a justification for 
        each such designation.
          [(2) A listing of the joint requirements developed, 
        considered, or approved within each of the capability 
        areas listed pursuant to paragraph (1).
          [(3) A listing and explanation of the decisions made 
        by the Joint Requirements Oversight Council and, to the 
        extent appropriate, a listing of each of the 
        recommendations to the Council made by the commander of 
        the United States Joint Forces Command.
          [(4) An assessment of--
                  [(A) the progress made in shifting the Joint 
                Requirements Oversight Council to having a more 
                strategic focus on future war fighting 
                requirements;
                  [(B) the progress made on integration of 
                requirements; and
                  [(C) the progress made on development of 
                overarching common architectures for defense 
                information systems to ensure that common 
                defense information systems are fully 
                interoperable.
          [(5) A description of any actions that have been 
        taken to improve the Joint Requirements Oversight 
        Council.]

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle C--Counter-Drug Activities

           *       *       *       *       *       *       *

SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE EXPENDITURES TO SUPPORT 
                    FOREIGN COUNTER-DRUG ACTIVITIES.

  Not later than January 1, 2001, and April 15, 2002, the 
Secretary of Defense shall submit to the congressional defense 
committees a report detailing the expenditure of funds by the 
Secretary during [fiscal year 2000] the preceding fiscal year 
in direct or indirect support of the counter-drug activities of 
foreign governments. The report shall include the following for 
each foreign government:
          (1) * * *

           *       *       *       *       *       *       *

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

           *       *       *       *       *       *       *

  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
Authority

           *       *       *       *       *       *       *

SEC. 1152. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT 
                    AUTHORITY.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Conforming Amendments.--(1) * * *
  (2) Section 8464(a)(1)(A)(i) of such title is amended by 
striking out ``or (b)(1)(B)'' and inserting ``, (b)(1)(B), or 
(d)''.

           *       *       *       *       *       *       *

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
SOVIET UNION

           *       *       *       *       *       *       *

[SEC. 1304. LIMITATIONS ON USE OF FUNDS FOR FISSILE MATERIAL STORAGE 
                    FACILITY.

  [(a) Limitations.--No fiscal year 2001 Cooperative Threat 
Reduction funds may be used--
          [(1) for construction of a second wing for the 
        storage facility for Russian fissile material referred 
        to in section 1302(a)(5); or
          [(2) for design or planning with respect to such 
        facility until 15 days after the date that the 
        Secretary of Defense submits to Congress notification 
        that Russia and the United States have signed a written 
        transparency agreement that provides for verification 
        that material stored at the facility is of weapons 
        origin.
  [(b) Establishment of Funding Cap for First Wing of Storage 
Facility.--Out of funds authorized to be appropriated for 
Cooperative Threat Reduction programs for fiscal year 2001 or 
any other fiscal year, not more than $412,600,000 may be used 
for planning, design, or construction of the first wing for the 
storage facility for Russian fissile material referred to in 
section 1302(a)(5).]

SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL STORAGE 
                    FACILITY.

  Out of funds authorized to be appropriated for Cooperative 
Threat Reduction programs for fiscal year 2001 or any other 
fiscal year, not more than $412,600,000 may be used for 
planning, design, or construction of the first wing for the 
storage facility for Russian fissile material referred to in 
section 1302(a)(5).

           *       *       *       *       *       *       *

[SEC. 1307. LIMITATION ON USE OF FUNDS FOR CONSTRUCTION OF FOSSIL FUEL 
                    ENERGY PLANTS; REPORT.

  [(a) In General.--No fiscal year 2001 Cooperative Threat 
Reduction funds may be used for the construction of a fossil 
fuel energy plant intended to provide power to local 
communities that already receive power from nuclear energy 
plants that produce plutonium.]

SEC. 1307. PROHIBITION AGAINST USE OF FUNDS FOR CONSTRUCTION OR 
                    REFURBISHMENT OF FOSSIL FUEL ENERGY PLANTS; REPORT.

  (a) Prohibition.--No funds appropriated for Cooperative 
Threat Reduction programs for any fiscal year may be used for 
the construction or refurbishment of a fossil fuel energy plant 
intended to provide power to local communities that receive 
power from nuclear energy plants that produce plutonium.

           *       *       *       *       *       *       *

SEC. 1308. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE 
                    THREAT REDUCTION PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Matters To Be Included.--The report under subsection (a) 
in a year shall set forth the following:
          (1) * * *

           *       *       *       *       *       *       *

          (4) A description of the [audits, examinations, and 
        other efforts, such as on-site inspections, conducted] 
        means (including program management, audits, 
        examinations, and other means) used by the United 
        States during the fiscal year ending in the year 
        preceding the year of the report to ensure that 
        assistance provided under Cooperative Threat Reduction 
        programs is fully accounted for [and that such 
        assistance is being used for its intended purpose], 
        that such assistance is being used for its intended 
        purpose, and that such assistance is being used 
        efficiently and effectively, including--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) a determination whether the assistance 
                described in subparagraphs (A) and (B) has been 
                used for its intended purpose and an assessment 
                of whether the assistance being provided is 
                being used effectively and efficiently; and
                  (D) a description of the [audits, 
                examinations, and other] efforts planned to be 
                carried out during the fiscal year beginning in 
                the year of the report to ensure that 
                Cooperative Threat Reduction assistance 
                provided during such fiscal year is fully 
                accounted for and is used for its intended 
                purpose.

           *       *       *       *       *       *       *

TITLE XV--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

           *       *       *       *       *       *       *

[SEC. 1503. DETERMINATION REGARDING CONTINUATION OF NAVY TRAINING.

  [(a) Referendum.--
          [(1) Requirement.--Except as provided in paragraph 
        (2), the President shall provide for a referendum to be 
        conducted on the island of Vieques, Puerto Rico, to 
        determine by a majority of the votes cast in the 
        referendum by the Vieques electorate whether the people 
        of Vieques approve or disapprove of the continuation of 
        the conduct of live-fire training, and any other types 
        of training, by the Armed Forces at the Navy's training 
        sites on the island under the conditions described in 
        subsection (d).
          [(2) Exception.--If the Chief of Naval Operations and 
        the Commandant of the Marine Corps jointly submit to 
        the congressional defense committees, after the date of 
        the enactment of this Act and before the date set forth 
        in subsection (c), their certification that the Vieques 
        Naval Training Range is no longer needed for training 
        by the Navy and the Marine Corps, then the requirement 
        for a referendum under paragraph (1) shall cease to be 
        effective on the date on which the certification is 
        submitted.
  [(b) Prohibition of Other Propositions.--In the referendum 
under this section, no proposition or option may be presented 
as an alternative to the propositions of approval and of 
disapproval of the continuation of the conduct of training as 
described in subsection (a)(1).
  [(c) Time for Referendum.--The referendum required under this 
section shall be held on May 1, 2001, or within 270 days before 
such date or 270 days after such date. The Secretary of the 
Navy shall publicize the date set for the referendum 90 days 
before that date.
  [(d) Required Training Conditions.--For the purposes of the 
referendum under this section, the conditions for the 
continuation of the conduct of training are those that are 
proposed by the Secretary of the Navy and publicized on the 
island of Vieques in connection with, and for a reasonable 
period in advance of, the referendum. The conditions shall 
include the following:
          [(1) Live-fire training.--A condition that the 
        training may include live-fire training.
          [(2) Maximum annual days of use.--A condition that 
        the training may be conducted on not more than 90 days 
        each year.
  [(e) Proclamation of Outcome.--Promptly after the referendum 
is completed under this section, the President shall determine, 
and issue a proclamation declaring, the outcome of the 
referendum. The President's determination shall be final, and 
the outcome of the referendum (as so determined) shall be 
binding.
  [(f ) Vieques Electorate Defined.--
          [(1) Registered voters.--In this section, the term 
        ``Vieques electorate'', with respect to a referendum 
        under this section, means the residents of the island 
        of Vieques, Puerto Rico, who, on both dates specified 
        in paragraph (2), are registered to vote in a general 
        election held for casting ballots for the election of 
        the Resident Commissioner of the Commonwealth of Puerto 
        Rico.
          [(2) Registration dates.--The dates referred to in 
        paragraph (1) are as follows:
                  [(A) November 7, 2000.
                  [(B) The date that is 180 days before the 
                date of the referendum under this section.

[SEC. 1504. ACTIONS IF TRAINING IS APPROVED.

  [(a) Condition for Effectiveness.--This section shall take 
effect on the date on which the President issues a proclamation 
under subsection (e) of section 1503 declaring that the 
continuation of the conduct of training (including live-fire 
training) by the Armed Forces at the Navy's training sites on 
the island of Vieques, Puerto Rico, under the conditions 
described in subsection (d) of such section, has been approved 
in the referendum conducted under such section.
  [(b) Authorization of Appropriations for Additional Economic 
Assistance.--There is authorized to be appropriated to the 
President $50,000,000 to provide economic assistance for the 
people and communities of the island of Vieques. This 
authorization of appropriations is in addition to the amount 
authorized to appropriated to provide economic assistance under 
section 1501.
  [(c) Training Range To Remain Open.--The Vieques Naval 
Training Range shall remain available for the use of the Armed 
Forces, including for live-fire training.

[SEC. 1505. REQUIREMENTS IF TRAINING IS NOT APPROVED OR MANDATE FOR 
                    REFERENDUM IS VITIATED.

  [(a) Conditions for Effectiveness.--This section shall take 
effect on the date on which either of the following occurs:
          [(1) The President issues a proclamation under 
        subsection (e) of section 1503 declaring that the 
        continuation of the conduct of training (including 
        live-fire training) by the Armed Forces at the Navy's 
        training sites on the island of Vieques, Puerto Rico, 
        under the conditions described in subsection (d) of 
        such section, has not been approved in the referendum 
        conducted under such section.
          [(2) The requirement for a referendum under section 
        1503 ceases to be effective pursuant to subsection 
        (a)(2) of such section.
  [(b) Actions Required of Secretary of Defense.--
          [(1) Termination of operation.--Not later than May 1, 
        2003, the Secretary of Defense shall--
                  [(A) terminate all Navy and Marine Corps 
                training operations on the island of Vieques; 
                and
                  [(B) terminate all Navy and Marine Corps 
                operations at Naval Station Roosevelt Roads, 
                Puerto Rico, that are related exclusively to 
                the use of the training range on the island of 
                Vieques by the Navy and the Marine Corps.
          [(2) Relocation of units.--The Secretary of Defense 
        may relocate the units of the Armed Forces (other than 
        those of the reserve components) and activities of the 
        Department of Defense (including nonappropriated fund 
        activities) at Fort Buchanan, Puerto Rico, to Naval 
        Station Roosevelt Roads, Puerto Rico, to ensure maximum 
        utilization of capacity.
          [(3) Closure of installations and facilities.--The 
        Secretary of Defense shall close the Department of 
        Defense installations and facilities on the island of 
        Vieques, other than properties exempt from conveyance 
        and transfer under section 1506.
  [(c) Actions Required of Secretary of the Navy.--The 
Secretary of the Navy shall transfer, without reimbursement, to 
the administrative jurisdiction of the Secretary of the 
Interior--
          [(1) the Live Impact Area on the island of Vieques;
          [(2) all Department of Defense real properties on the 
        eastern side of the island that are identified as 
        conservation zones; and
          [(3) all other Department of Defense real properties 
        on the eastern side of the island.
  [(d) Actions Required of Secretary of the Interior.--
          [(1) Retention and administration.--The Secretary of 
        the Interior shall retain, and may not dispose of any 
        of, the properties transferred under paragraphs (2) and 
        (3) of subsection (c) and shall administer such 
        properties as wildlife refuges under the National 
        Wildlife Refuge System Administration Act of 1966 (16 
        U.S.C. 668dd et seq.) pending the enactment of a law 
        that addresses the disposition of such properties.
          [(2) Responsibility for Live Impact Area.--Upon a 
        termination of Navy and Marine Corps training 
        operations on the island of Vieques under subsection 
        (b)(1), the Secretary of the Interior shall assume 
        responsibility for the administration of the Live 
        Impact Area, administer that area as a wilderness area 
        under the Wilderness Act (16 U.S.C. 1131 et seq.), and 
        deny public access to the area.
          [(3) Live Impact Area Defined.--In this section, the 
        term ``Live Impact Area'' means the parcel of real 
        property, consisting of approximately 900 acres (more 
        or less), on the island of Vieques that is designated 
        by the Secretary of the Navy for targeting by live 
        ordnance in the training of forces of the Navy and 
        Marine Corps.
  [(e) GAO Review.--
          [(1) Requirement for review.--The Comptroller General 
        shall review the requirement for the continued use of 
        Fort Buchanan, Puerto Rico, by active Army forces and 
        shall submit to the congressional defense committees a 
        report containing--
                  [(A) the findings resulting from the review; 
                and
                  [(B) recommendations regarding the closure of 
                Fort Buchanan and the consolidation of units of 
                the Armed Forces to Naval Station Roosevelt 
                Roads, Puerto Rico.
          [(2) Time for submittal of report.--The Comptroller 
        General shall submit the report under paragraph (1) not 
        later than one year after the date on which the 
        referendum under section 1503 is conducted or one year 
        after the date on which a certification is submitted to 
        the congressional defense committees under subsection 
        (a)(2) of such section, as the case may be.]

SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING RANGE.

  (a) Required Certification.--The Secretary of the Navy may 
close the Vieques Naval Training Range on the island of 
Vieques, Puerto Rico, and discontinue live-fire training at 
that range only if--
          (1) the Chief of Naval Operations and the Commandant 
        of the Marine Corps jointly certify that there is an 
        alternative training facility that provides an 
        equivalent or superior level of training for units of 
        the Navy and the Marine Corps stationed or deployed in 
        the eastern United States; and
          (2) the new facility is available and fully capable 
        of supporting such training immediately upon cessation 
        of live-fire training on Vieques.
  (b) Equivalent or Superior Level of Training Defined.--In 
this section, the term ``equal or superior level of training'' 
refers to an ability by the Armed Forces to conduct at a single 
location coordinated live-fire training, including simultaneous 
large-scale tactical air strikes, naval surface fire support 
and artillery, and amphibious landing operations, as was 
conducted at Vieques Naval Training Range before April 19, 
1999.

SEC. 1504. NAVY RETENTION OF CLOSED VIEQUES NAVAL TRAINING RANGE.

  (a) Retention.--If the conditions specified in section 
1503(a) are satisfied and the Secretary of the Navy terminates 
all Navy and Marine Corps training operations on the island of 
Vieques, the Secretary of the Navy shall retain administrative 
jurisdiction over the Live Impact Area and all other Department 
of Defense real properties on the eastern side of the island 
for possible reactivation for training use, including live-fire 
training, in the event a national emergency.
  (b) Administration.--The Secretary of the Navy may enter into 
a cooperative agreement with the Secretary of the Interior to 
provide for management of the property described in subsection 
(a), pending reactivation for training use, by appropriate 
agencies of the Department of the Interior as follows:
          (1) Management of the Live Impact Area as a 
        wilderness area under the Wilderness Act (16 U.S.C. 
        1131 et seq.), including a prohibition on public access 
        to the area.
          (2) Management of the remaining property as wildlife 
        refuges under the National Wildlife Refuge System 
        Administration Act of 1966 (16 U.S.C. 668dd et seq.).
  (c) Live Impact Area Defined.--In this section, the term 
``Live Impact Area'' means the parcel of real property, 
consisting of approximately 900 acres (more or less), on the 
island of Vieques that is designated by the Secretary of the 
Navy for targeting by live ordnance in the training of forces 
of the Navy and Marine Corps.

           *       *       *       *       *       *       *

SEC. 1507. MORATORIUM ON IMPROVEMENTS AT FORT BUCHANAN.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Termination.--This section shall cease to be effective 
upon [the issuance of a proclamation described in section 
1504(a) or] the enactment of a law, after the date of the 
enactment of this Act, that authorizes any acquisition, 
construction, conversion, rehabilitation, extension, or 
improvement of any facility at Fort Buchanan, Puerto Rico.

           *       *       *       *       *       *       *

                              ----------                              

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993

           *       *       *       *       *       *       *

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

           *       *       *       *       *       *       *

                  Subtitle E--Defense Nuclear Workers

SEC. 3161. DEPARTMENT OF ENERGY DEFENSE NUCLEAR FACILITIES WORK FORCE 
                    RESTRUCTURING PLAN.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Objectives.--In preparing the plan required under 
subsection (a), the Secretary shall be guided by the following 
objectives:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The Department of Energy should provide local 
        impact assistance to communities that are affected by 
        the restructuring plan and coordinate the provision of 
        such assistance with--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) programs carried out by the Department of 
                Commerce pursuant to [title IX of the Public 
                Works and Economic Development Act of 1965 (42 
                U.S.C. 3241 et seq.)] title II of the Public 
                Works and Economic Development Act of 1965 (42 
                U.S.C. 3141 et seq.).

           *       *       *       *       *       *       *

DIVISION D--DEFENSE CONVERSION, REINVESTMENT, AND TRANSITION ASSISTANCE

           *       *       *       *       *       *       *

   TITLE XLIV--PERSONNEL ADJUSTMENT, EDUCATION, AND TRAINING PROGRAMS

Subtitle A--Active Forces Transition Enhancements

           *       *       *       *       *       *       *

SEC. 4403. TEMPORARY EARLY RETIREMENT AUTHORITY.

  (a) * * *

           *       *       *       *       *       *       *

  (i) Active Force Drawdown Period.--For purposes of this 
section, the active force drawdown period is the period 
beginning on the date of the enactment of this Act and ending 
on December 31, [2001] 2002.

           *       *       *       *       *       *       *

          Subtitle B--Guard and Reserve Transition Initiatives

SEC. 4411. FORCE REDUCTION TRANSITION PERIOD DEFINED.

  In this subtitle, the term ``force reduction transition 
period'' means the period beginning on October 1, 1991, and 
ending on December 31, [2001] 2002.

           *       *       *       *       *       *       *

SEC. 4416. FORCE REDUCTION PERIOD RETIREMENTS.

  (a) * * *
  (b) Temporary Special Authority.--During the force reduction 
transition period, the Secretary concerned may grant a member 
of the Selected Reserve under the age of 60 years the annual 
payments provided for under this section if--
          (1) as of October 1, 1991, that member has completed 
        at least 20 years of service computed under section 
        1332 of title 10, United States Code, or after that 
        date and before the end of the [force reduction period] 
        force reduction transition period, such member 
        completes 20 years of service computed under that 
        section or section 12732;

           *       *       *       *       *       *       *

 Subtitle F--Job Training and Employment and Educational Opportunities

SEC. 4461. IMPROVED COORDINATION OF JOB TRAINING AND PLACEMENT PROGRAMS 
                    FOR MEMBERS OF THE ARMED FORCES.

  The Secretary of Defense shall consult with the Secretary of 
Labor, the Secretary of Education, the Secretary of Veterans 
Affairs, and the Economic Adjustment Committee to improve the 
coordination of, and eliminate duplication between, the 
following job training and placement programs available to 
members of the Armed Forces who are discharged or released from 
active duty:
          (1) * * *

           *       *       *       *       *       *       *

          (5) The Wagner-Peyser Act (29 U.S.C. 49 et seq.).

           *       *       *       *       *       *       *

SEC. 4463. PROGRAM OF EDUCATIONAL LEAVE RELATING TO CONTINUING PUBLIC 
                    AND COMMUNITY SERVICE.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Expiration.--The authority to grant a leave of absence 
under subsection (a) shall expire on December 31, [2001] 2002.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 37, UNITED STATES CODE

           *       *       *       *       *       *       *

CHAPTER 3--BASIC PAY

           *       *       *       *       *       *       *

Sec. 203. Rates

  (a) * * *

           *       *       *       *       *       *       *

  (d)(1) The basic pay of a commissioned officer who is in pay 
grade O-1, O-2, or O-3 and [who is credited with a total of 
over four years' active service as warrant officer or as a 
warrant officer and enlisted member] is described in paragraph 
(2) shall be computed in the same manner as the basic pay of a 
commissioned officer in the same pay grade who has been 
credited with over four years' active service as an enlisted 
member.
  (2) Paragraph (1) applies with respect to a commissioned 
officer in pay grade O-1, O-2, or O-3 who--
          (A) is credited with a total of over four years' 
        active service as warrant officer or as a warrant 
        officer and enlisted member; or
          (B) earned a total of more than 1,460 points credited 
        under section 12732(a)(2) of title 10 while serving as 
        a warrant officer or enlisted member.

           *       *       *       *       *       *       *

Sec. 204. Entitlement

  (a) * * *

           *       *       *       *       *       *       *

  (g)(1) A member of a reserve component of a uniformed service 
is entitled, to the pay and allowances provided by law or 
regulation for a member of a regular component of a uniformed 
service of corresponding grade and length of service whenever 
such member is physically disabled as the result of an injury, 
illness, or disease incurred or aggravated--
          (A) * * *

           *       *       *       *       *       *       *

          (D) in line of duty 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 from the member's residence]; or

           *       *       *       *       *       *       *

  (h)(1) A member of a reserve component of a uniformed service 
who is physically able to perform his military duties, is 
entitled, upon request, to a portion of the monthly pay and 
allowances provided by law or regulation for a member of a 
regular component of a uniformed service of corresponding grade 
and length of service for each month for which the member 
demonstrates a loss of earned income from nonmilitary 
employment or self-employment as a result of an injury, 
illness, or disease incurred or aggravated--
          (A) * * *

           *       *       *       *       *       *       *

          (D) in line of duty 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 from the member's residence]; or

           *       *       *       *       *       *       *

Sec. 206. Reserves; members of National Guard: inactive-duty training

  (a) Under regulations prescribed by the Secretary concerned, 
and to the extent provided for by appropriations, a member of 
the National Guard or a member of a reserve component of a 
uniformed service who is not entitled to basic pay under 
section 204 of this title, is entitled to compensation, at the 
rate of \1/30\ of the basic pay authorized for a member of a 
uniformed service of a corresponding grade entitled to basic 
pay--
          (1) * * *

           *       *       *       *       *       *       *

          (3) for a regular period of instruction that the 
        member is scheduled to perform but is unable to perform 
        because of physical disability resulting from an 
        injury, illness, or disease incurred or aggravated--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) in line of duty while while remaining 
                overnight immediately before the commencement 
                of inactive-duty training, or 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 from the member's residence].

           *       *       *       *       *       *       *

Sec. 209. Members of precommissioning programs

  (a) * * *

           *       *       *       *       *       *       *

  (c) Pay While Attending Training or Practice Cruise.--Each 
cadet or midshipman in the Senior Reserve Officers' Training 
Corps, while he is attending training or practice cruises under 
chapter 103 of title 10 if the training or cruise is of at 
least four weeks duration and must be completed before the 
cadet or midshipman is commissioned, and each applicant for 
membership in the Senior Reserve Officers' Training Corps, 
while he is attending field training or practice cruises to 
satisfy the requirements of section 2104(b)(6)(B) of title 10 
for admission to advanced training, is entitled, while so 
attending, to pay at the rate prescribed for cadets and 
midshipmen at the United States Military, Naval, and Air Force 
Academies under section 203(c) of this title unless the cadet 
or midshipman is serving on active duty.

           *       *       *       *       *       *       *

                 CHAPTER 5--SPECIAL AND INCENTIVE PAYS

Sec.

301.  Incentive pay: hazardous duty.
     * * * * * * *
324.  Special pay: accession bonus for new officers.

Sec. 301. Incentive pay: hazardous duty

    (a) Subject to regulations prescribed by the President, a 
member of a uniformed service who is entitled to basic pay is 
also entitled to incentive pay, in the amount set forth in 
subsection (b) or (c), for the performance of hazardous duty 
required by orders. In this section, the term, ``hazardous 
duty'' means duty--
          (1) * * *

           *       *       *       *       *       *       *

          (10) involving (A) the servicing of aircraft or 
        missiles with highly toxic fuels or propellants, (B) 
        the testing of aircraft or missile systems (or 
        components of such systems) during which highly toxic 
        fuels or propellants are used, or (C) the handling of 
        chemical munitions (or components of such munitions); 
        [or]
          (11) involving regular participation as a member of a 
        team conducting visit, board, search, and seizure 
        operations aboard vessels in support of maritime 
        interdiction operations; or
          [(11)] (12) involving frequent and regular 
        participation in aerial flight by a member who is 
        serving as an air weapons controller crew member (as 
        defined by the Secretary concerned) aboard an airborne 
        warning and control system aircraft (as designated by 
        such Secretary) and who is not entitled to incentive 
        pay under section 301a of this title.

           *       *       *       *       *       *       *

  (c)(1) For the performance of hazardous duty described in 
clauses (2) through [(10)] (11) of subsection (a), a member is 
entitled to $150 a month. However, a member performing 
hazardous duty described in clause (3) of that subsection who 
also performs as an essential part of such duty parachute 
jumping in military free fall operations involving parachute 
deployment by the jumper without the use of a static line is 
entitled to $225 a month.
  (2)(A) For the performance of hazardous duty described in 
clause [(11)] (12) of subsection (a), a member is entitled to 
monthly incentive pay based upon his years of service as an air 
weapons controller as follows:

           *       *       *       *       *       *       *

Sec. 301a. Incentive pay: aviation career

    (a) * * *

           *       *       *       *       *       *       *

  [(d) Under regulations prescribed by the President and to the 
extent provided for by appropriations, when a member of a 
reserve component of a uniformed service, or of the National 
Guard, who is entitled to compensation under section 206 of 
this title, performs, under orders, duty described in 
subsection (a) for members entitled to basic pay, he is 
entitled to an increase in compensation equal to \1/30\ of the 
monthly incentive pay authorized by subsection (b) for the 
performance of that duty by a member with corresponding years 
of aviation service who is entitled to basic pay. Such member 
is entitled to the increase for as long as he is qualified for 
it, for each regular period of instruction, or period of 
appropriate duty, at which he is engaged for at least two 
hours, including that performed on a Sunday or holiday, or for 
the performance of such other equivalent training, instruction, 
duty or appropriate duties, as the Secretary may prescribe 
under section 206(a) of this title. This subsection does not 
apply to a member who is entitled to basic pay under section 
204 of this title.]
  (d) Members Performing Inactive-Duty Training.--Under 
regulations prescribed by the President and to the extent 
provided for by appropriations, in the case of a member of a 
reserve component of a uniformed service, or of the National 
Guard, who is entitled to compensation under section 206 of 
this title, and who performs, under orders, duty described in 
subsection (a), the member is also entitled to monthly 
incentive pay under subsection (b) for the performance of that 
duty in the same manner as a member with corresponding years of 
aviation service who is entitled to basic pay. Such member is 
entitled to the incentive pay for as long as the member remains 
qualified for it, as provided in subsection (a). This 
subsection does not apply to a member who is entitled to basic 
pay under section 204 of this title.

           *       *       *       *       *       *       *

Sec. 301b. Special pay: aviation career officers extending period of 
                    active duty

    (a) Bonus Authorized.--An aviation officer described in 
subsection (b) who, during the period beginning on January 1, 
1989, and ending on December 31, [2001] 2002, executes a 
written agreement to remain on active duty in aviation service 
for at least one year may, upon the acceptance of the agreement 
by the Secretary concerned, be paid a retention bonus as 
provided in this section.

           *       *       *       *       *       *       *

Sec. 301c. Incentive pay: submarine duty

  (a)(1) Subject to regulations prescribed by the President, a 
member of the naval service who is entitled to basic pay, and 
(A) holds (or is in training leading to) a submarine duty 
designator, (B) is in and remains in the submarine service on a 
career basis, and (C) meets the requirements of paragraph (3), 
is entitled to continuous monthly submarine duty incentive pay 
in the amount [set forth in] prescribed pursuant to subsection 
(b).
  (2) Subject to regulations prescribed by the President, a 
member of the naval service who is entitled to basic pay but is 
not entitled to continuous monthly submarine duty incentive pay 
under paragraph (1) is entitled to submarine duty incentive pay 
in the amount [set forth in] prescribed pursuant to subsection 
(b) for any period during which such member performs frequent 
and regular operational submarine duty (as defined in paragraph 
(5)) required by orders.

           *       *       *       *       *       *       *

  (4) If upon completion of either 12 or 18 years of submarine 
service it is determined that a member has failed to perform 
the minimum prescribed operational submarine duty requirements 
during the prescribed periods of time, his entitlement to 
continuous monthly submarine duty incentive pay ceases. If 
entitlement to continuous monthly submarine duty incentive pay 
ceases upon completion of 12 years of submarine service, 
entitlement to that pay may again commence upon completion of 
18 years of submarine service if the minimum operational 
submarine duty requirements have been met, and such pay shall 
continue for the period of time prescribed in accordance with 
this section. However, if entitlement to continuous monthly 
submarine duty incentive pay ceases in the case of any member 
at the completion of either 12 or 18 years of submarine service 
or 26 years of service (as computed under section 205 of this 
title, but excluding, in the case of an officer, periods as an 
enlisted member before initial appointment as an officer), such 
member shall be entitled to that pay in the amount [set forth 
in] prescribed pursuant to subsection (b) for the performance 
of subsequent operational submarine duty, or for the 
performance of service as a member of a submarine operational 
command staff, if such member's duties require serving on a 
submarine during underway operations.

           *       *       *       *       *       *       *

  [(b) A member who meets the requirements prescribed in 
subsection (a) is entitled to monthly submarine duty incentive 
pay as follows:

                                                [ENLISTED MEMBERS
----------------------------------------------------------------------------------------------------------------
                                                                Years of service computed under section 205
                                                         -------------------------------------------------------
                        Pay grade                          2 or                                            Over
                                                           less   Over 2  Over 3  Over 4  Over 6  Over 8    10
----------------------------------------------------------------------------------------------------------------
E-9.....................................................    $225    $225    $225    $270    $295    $310    $315
E-8.....................................................     225     225     225     250     270     295     310
E-7.....................................................     225     225     225     250     255     265     275
E-6.....................................................     155     170     175     215     230     245     255
E-5.....................................................     140     155     155     175     190     195     195
E-4.....................................................      80      95     100     170     175     175     175
E-3.....................................................      80      90     100     170     175     175      90
E-2.....................................................      75      90      90      90      90      90      90
E-1.....................................................      75      75      75      75      75      75      75
                                                         -------------------------------------------------------
                                                           Over    Over    Over    Over    Over    Over    Over
                                                            12      14      16      18      20      22      26
                                                         -------------------------------------------------------
E-9.....................................................    $330    $345    $355    $355    $355    $355    $355
E-8.....................................................     315     330     330     345     345     345     345
E-7.....................................................     295     310     310     310     310     310     310
E-6.....................................................     265     265     265     265     265     265     265
E-5.....................................................     195     195     195     195     195     195     195
E-4.....................................................     175     175     175     175     175     175     175
E-3.....................................................      90      90      90      90      90      90      90
E-2.....................................................      90      90      90      90      90      90      90
E-1.....................................................      75      75      75      75      75      75      75
----------------------------------------------------------------------------------------------------------------

                                              COMMISSIONED OFFICERS
----------------------------------------------------------------------------------------------------------------
                                                                Years of service computed under section 205
                                                         -------------------------------------------------------
                        Pay grade                          2 or                                            Over
                                                           less   Over 2  Over 3  Over 4  Over 5  Over 6    10
----------------------------------------------------------------------------------------------------------------
O-10....................................................    $355    $355    $355    $355    $355    $355    $355
O-9.....................................................     355     355     355     355     355     355     355
O-8.....................................................     355     355     355     355     355     355     355
O-7.....................................................     355     355     355     355     355     355     355
O-6.....................................................     595     595     595     595     595     595     595
O-5.....................................................     595     595     595     595     595     595     595
O-4.....................................................     365     365     365     405     595     595     595
O-3.....................................................     355     355     355     390     595     595     595
O-2.....................................................     235     235     235     235     235     235     355
O-1.....................................................     175     175     175     175     175     175     355
                                                         -------------------------------------------------------
                                                           Over    Over    Over    Over    Over    Over    Over
                                                            12      14      16      18      20      22      26
                                                         -------------------------------------------------------
O-10....................................................    $355    $355    $355    $355    $355    $355    $355
O-9.....................................................     355     355     355     355     355     355     355
O-8.....................................................     355     355     355     355     355     355     355
O-7.....................................................     355     355     540     355     535     410     355
O-6.....................................................     595     595     595     595     595     595     595
O-5.....................................................     595     595     595     595     595     595     595
O-4.....................................................     595     595     595     595     595     595     595
O-3.....................................................     595     595     595     595     595     595     595
O-2.....................................................     355     355     355     355     355     355     355
O-1.....................................................     355     355     355     355     355     355     355
----------------------------------------------------------------------------------------------------------------

                                                WARRANT OFFICERS
----------------------------------------------------------------------------------------------------------------
                                                                Years of service computed under section 205
                                                         -------------------------------------------------------
                        Pay grade                          2 or                                            Over
                                                           less   Over 2  Over 3  Over 4  Over 6  Over 8    10
----------------------------------------------------------------------------------------------------------------
W-5.....................................................    $235    $310    $310    $355    $355    $355    $355
W-4.....................................................     235     310     310     355     355     355     355
W-3.....................................................     235     310     310     355     355     355     355
W-2.....................................................     235     310     310     355     355     355     355
W-1.....................................................     235     310     310     355     355     355     355
                                                         -------------------------------------------------------

                                                           Over    Over    Over    Over    Over    Over    Over
                                                            12      14      16      18      20      22      26
                                                         -------------------------------------------------------
W-5.....................................................    $355    $355    $355    $355    $355    $355    $355
W-4.....................................................     355     355     355     355     355     355     355
W-3.....................................................     355     355     355     355     355     355     355
W-2.....................................................     355     355     355     355     355     355     355
W-1.....................................................     355     355     355     355     355     355    355]
----------------------------------------------------------------------------------------------------------------

  (b) Monthly Rates.--(1) Subject to paragraph (2), a member 
who meets the requirements prescribed in subsection (a) is 
entitled to monthly submarine duty incentive pay in an amount 
prescribed by the Secretary of the Navy.
  (2) The monthly amount of submarine duty incentive pay may 
not exceed $1,000.

           *       *       *       *       *       *       *

  (d) Under regulations prescribed by the President and to the 
extent provided for by appropriations, when a member of the 
Naval Reserve who is entitled to compensation under section 206 
of this title, performs, under orders, duty on a submarine 
during underway operations, he is eligible for an increase in 
such compensation equal to one-thirtieth of the monthly 
incentive pay [authorized by] prescribed pursuant to subsection 
(b) for the performance of that duty by a member of a 
corresponding grade and years of service who is entitled to 
basic pay. Such a member is eligible for the increase for each 
day served, for as long as he is qualified for it, during each 
regular period of appropriate duty.

           *       *       *       *       *       *       *

Sec. 302d. Special pay: accession bonus for registered nurses

    (a) Accession Bonus Authorized.--(1) A person who is a 
registered nurse and who, during the period beginning on 
November 29, 1989, and ending on December 31, [2001] 2002, 
executes a written agreement described in subsection (c) to 
accept a commission as an officer and remain on active duty for 
a period of not less than four years may, upon the acceptance 
of the agreement by the Secretary concerned, be paid an 
accession bonus in an amount determined by the Secretary 
concerned.

           *       *       *       *       *       *       *

Sec. 302e. Special pay: nurse anesthetists

    (a) Special Pay Authorized.--(1) An officer described in 
subsection (b)(1) who, during the period beginning on November 
29, 1989, and ending on December 31, [2001] 2002, executes a 
written agreement to remain on active duty for a period of one 
year or more may, upon the acceptance of the agreement by the 
Secretary concerned, be paid incentive special pay in an amount 
not to exceed $15,000 for any 12-month period.

           *       *       *       *       *       *       *

Sec. 302g. Special pay: Selected Reserve health care professionals in 
                    critically short wartime specialties

  (a) * * *

           *       *       *       *       *       *       *

  (f) Termination of Agreement Authority.--No agreement under 
this section may be entered into after December 31, [2001] 
2002.

Sec. 302h. Special pay: accession bonus for dental officers

  (a) Accession Bonus Authorized.--(1) A person who is a 
graduate of an accredited dental school and who, during the 
period beginning on [the date of the enactment of this section, 
and ending on September 30, 2002] September 23, 1996, and 
ending on December 31, 2002, executes a written agreement 
described in subsection (c) to accept a commission as an 
officer of the armed forces and remain on active duty for a 
period of not less than four years may, upon the acceptance of 
the agreement by the Secretary concerned, be paid an accession 
bonus in an amount determined by the Secretary concerned.

           *       *       *       *       *       *       *

Sec. 308. Special pay: reenlistment bonus

  (a) * * *

           *       *       *       *       *       *       *

  (g) No bonus shall be paid under this section with respect to 
any reenlistment, or voluntary extension of an active-duty 
reenlistment, in the armed forces entered into after December 
31, [2001] 2002.

           *       *       *       *       *       *       *

Sec. 308b. Special pay: reenlistment bonus for members of the Selected 
                    Reserve

  (a) * * *

           *       *       *       *       *       *       *

  (f) Termination of Authority.--No bonus may be paid under 
this section to any enlisted member who, after December 31, 
[2001] 2002, reenlists or voluntarily extends his enlistment in 
a reserve component.

           *       *       *       *       *       *       *

Sec. 308c. Special pay: bonus for enlistment in the Selected Reserve

    (a) * * *

           *       *       *       *       *       *       *

  (e) No bonus may be paid under this section to any enlisted 
member who, after December 31, [2001] 2002, enlists in the 
Selected Reserve of the Ready Reserve of an armed force.

           *       *       *       *       *       *       *

Sec. 308d. Special pay: enlisted members of the Selected Reserve 
                    assigned to certain high priority units

    (a) * * *

           *       *       *       *       *       *       *

    (c) Additional compensation may not be paid under this 
section for inactive duty performed after December 31, [2001] 
2002.

Sec. 308e. Special pay: bonus for reserve affiliation agreement

  (a) * * *

           *       *       *       *       *       *       *

  (e) No bonus may be paid under this section to any person for 
a reserve obligation agreement entered into after December 31, 
[2001] 2002.

           *       *       *       *       *       *       *

Sec. 308h. Special pay: bonus for reenlistment, enlistment, or 
                    voluntary extension of enlistment in elements of 
                    the Ready Reserve other than the Selected Reserve

  (a)(1) An eligible person who is or has been a member of an 
armed force [and who], who is qualified in a skill or 
speciality designated by the Secretary concerned as critically 
short to meet wartime requirements, and who reenlists, enlists, 
or voluntarily extends an enlistment in [a combat or combat 
support skill of] an element (other than the Selected Reserve) 
of the Ready Reserve of an armed force for a period of three 
years, or for a period of six years, beyond any other period 
the person is obligated to serve may be paid a bonus as 
provided in subsection (b).

           *       *       *       *       *       *       *

  (g) A bonus may not be paid under this section to any person 
for a reenlistment, enlistment, or voluntary extension of an 
enlistment after December 31, [2001] 2002.

Sec. 308i. Special pay: prior service enlistment bonus

  (a) * * *

           *       *       *       *       *       *       *

  (f) Termination of Authority.--No bonus may be paid under 
this section to any person for an enlistment after December 31, 
[2001] 2002.

Sec. 309. Special pay: enlistment bonus

  (a) * * *

           *       *       *       *       *       *       *

  (e) Duration of Authority.--No bonus shall be paid under this 
section with respect to any enlistment in the armed forces made 
after December 31, [2001] 2002.

           *       *       *       *       *       *       *

Sec. 312. Special pay: nuclear-qualified officers extending period of 
                    active duty

  (a) * * *

           *       *       *       *       *       *       *

  (e) The provisions of this section shall be effective only in 
the case of officers who, on or before December 31, [2001] 
2002, execute the required written agreement to remain in 
active service.

           *       *       *       *       *       *       *

Sec. 312b. Special pay: nuclear career accession bonus

  (a) * * *

           *       *       *       *       *       *       *

  (c) The provisions of this section shall be effective only in 
the case of officers who, on or before December 31, [2001] 
2002, have been accepted for training for duty in connection 
with the supervision, operation, and maintenance of naval 
nuclear propulsion plants.

Sec. 312c. Special pay: nuclear career annual incentive bonus

  (a) * * *

           *       *       *       *       *       *       *

  (d) For the purposes of this section, a ``nuclear service 
year'' is any fiscal year beginning before December 31, [2001] 
2002.

           *       *       *       *       *       *       *

Sec. 318. Special pay: special warfare officers extending period of 
                    active duty

  (a) * * *

           *       *       *       *       *       *       *

  (h) Repayment.--(1) * * *

           *       *       *       *       *       *       *

  (3) A discharge in bankruptcy under title 11 that is entered 
less than five years after the termination of an agreement 
entered into under subsection [(a)] (b) does not discharge the 
officer signing the agreement from a debt arising under such 
agreement or under paragraph (1).

           *       *       *       *       *       *       *

Sec. 322. Special pay: 15-year career status bonus for members entering 
                    service on or after August 1, 1986

  (a) * * *

           *       *       *       *       *       *       *

  (d) Amount of Bonus; Payment.--(1) A bonus under this section 
shall be [paid in a single lump sum of] equal to $30,000.
  (2) A member electing to receive the bonus under this section 
shall elect one of the following payment options:
          (A) A single lump sum of $30,000.
          (B) Two installments of $15,000 each.
          (C) Three installments of $10,000 each.
          (D) Four installments of $7,500 each.
          (E) Five installments of $6,000 each.
  (3) If a member elects installment payments under paragraph 
(2), the second installment (and subsequent installments, as 
applicable) shall be paid on the earlier of the following 
dates:
          (A) The annual anniversary date of the payment of the 
        first installment.
          (B) January 15 of each succeeding calendar year.
  [(2) The bonus] (4) The lump sum payment of the bonus, and 
the first installment payment in the case of members who elect 
to receive the bonus in installments, shall be paid to an 
eligible career bonus member not later than the first month 
that begins on or after the date that is 60 days after the date 
on which the Secretary concerned receives from the member the 
election required under subsection (a)(1) and the written 
agreement required under subsection (a)(2), if applicable.

           *       *       *       *       *       *       *

Sec. 323. Special pay: retention incentives for members qualified in a 
                    critical military skill

  (a) * * *

           *       *       *       *       *       *       *

  (i) Termination of Bonus Authority.--No bonus may be paid 
under this section with respect to any reenlistment, or 
voluntary extension of an enlistment, in the armed forces 
entered into after December 31, [2001] 2002, and no agreement 
under this section may be entered into after that date.

Sec. 324. Special pay: accession bonus for new officers

  (a) Accession Bonus Authorized.--Under regulations prescribed 
by the Secretary concerned, a person who executes a written 
agreement to accept a commission as an officer of the armed 
forces and serve on active duty for the period specified in the 
agreement may, upon acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in an amount 
determined by the Secretary concerned.
  (b) Limitation on Amount of Bonus.--The amount of an 
accession bonus under subsection (a) may not exceed $100,000.
  (c) Payment Method.--Upon acceptance of a written agreement 
under subsection (a) by the Secretary concerned, the total 
amount of the accession bonus payable under the agreement 
becomes fixed. The agreement shall specify whether the 
accession bonus will be paid by the Secretary in a lump sum or 
installments.
  (d) Relation to Other Accession Bonus Authority.--An 
individual may not receive a accession bonus under this section 
and section 302d, 302h, 302j, or 312b of this title for the 
same period of service.
  (e) Repayment.--(1) If an individual who has entered into an 
agreement under subsection (a) and has received all or part of 
the accession bonus under the agreement fails to accept a 
commission as an officer or to commence or complete the total 
period of active duty service specified in the agreement, the 
Secretary concerned may require the individual to repay the 
United States, on a pro rata basis and to the extent that the 
Secretary determines conditions and circumstances warrant, any 
or all of the amount paid to the individual under the 
agreement.
  (2) An obligation to repay 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 that is entered 
less than five years after the termination of a written 
agreement entered into under subsection (a) does not discharge 
the individual signing the agreement from a debt arising under 
such agreement or under paragraph (1).

CHAPTER 7--ALLOWANCES

           *       *       *       *       *       *       *

Sec. 402. Basic allowance for subsistence

  (a) * * *
  (b) Rates of Allowance Based on Food Costs.--(1) * * *

           *       *       *       *       *       *       *

  (4) For purposes of implementing paragraph (2), the monthly 
rate of basic allowance for subsistence that was in effect for 
an enlisted member for calendar year 2001 shall be deemed to be 
$233.

           *       *       *       *       *       *       *

  [(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 in effect under 
paragraph (1) or (2) of subsection (b) 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.]
  (d) Special Rule for Enlisted Members Who Mess Separately.--
The Secretary of Defense may prescribe a basic allowance for 
subsistence for enlisted members at a rate higher than the rate 
provided for in subsection (b) when messing facilities of the 
United States are not available for the members.

           *       *       *       *       *       *       *

Sec. 402a. Supplemental subsistence allowance for low-income members 
                    with dependents

  (a) * * *
  (b) Members Entitled to Allowance.--(1) Subject to subsection 
(d), a member of the armed forces with dependents is entitled 
to receive the supplemental subsistence allowance if the 
Secretary concerned determines that the member's income, 
together with the income of the rest of the member's household 
(if any), is within the highest income standard of eligibility, 
as then in effect under section 5(c) of the Food Stamp Act of 
1977 (7 U.S.C. 2014(c)) and without regard to paragraph (1) of 
such section, for participation in the food stamp program.

           *       *       *       *       *       *       *

Sec. 403. Basic allowance for housing

  (a) * * *

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

Sec. 404. Travel and transportation allowances: general

  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Under uniform regulations prescribed by the 
Secretaries concerned and as provided in paragraph (2), a 
member who--
          (A) * * *

           *       *       *       *       *       *       *

          (C) is involuntarily separated from active duty 
        during the period beginning on October 1, 1990, and 
        ending on December 31, [2001] 2002,

           *       *       *       *       *       *       *

  (d)(1) * * *

           *       *       *       *       *       *       *

  (5) The per diem rates established under paragraph (2)(A) for 
travel performed in connection with a change of permanent 
station or for travel described in paragraph (2) or (3) of 
subsection (a) shall be equal to the standard per diem rates 
established in the Federal travel regulation for travel within 
the continental United States of civilian employees and their 
dependents, unless the Secretaries concerned determines that a 
higher rate for members is more appropriate.

           *       *       *       *       *       *       *

  (f)(1) * * *
  (2)(A) * * *
  (B) Subparagraph (A) does not apply to a member--
          (i) * * *

           *       *       *       *       *       *       *

          (v) who is involuntarily separated from active duty 
        during the period beginning on October 1, 1990, and 
        ending on December 31, [2001] 2002.

           *       *       *       *       *       *       *

Sec. 404a. Travel and transportation allowances: temporary lodging 
                    expenses

  (a) Payment or Reimbursement of Subsistence Expenses.--(1) * 
* *
  (2) Paragraph (1) applies to the following:
          (A) * * *

           *       *       *       *       *       *       *

          (C) In the case of [an enlisted member] a member who 
        is reporting to the member's first permanent duty 
        station, the change from the member's home of record or 
        initial technical school to that first permanent duty 
        station.

           *       *       *       *       *       *       *

  (e) Maximum Daily Payment.--A member may not be paid or 
reimbursed more that [$110] $180 a day under this section.

           *       *       *       *       *       *       *

Sec. 406. Travel and transportation allowances: dependents; baggage and 
                    household effects

  (a)(1) Except as provided in paragraph (2), a member of a 
uniformed service who is ordered to make a change of permanent 
station is entitled to transportation in kind, reimbursement 
therefor, or a monetary allowance in place of the cost of 
transportation, plus a per diem, for the member's dependents at 
rates prescribed by the Secretaries concerned, but not more 
than the rate authorized under section 404(d) of this title. 
The Secretary concerned may also reimburse the member for 
mandatory pet quarantine fees for household pets, but not to 
exceed [$275] $675 per change of station, when the member 
incurs the fees incident to such change of station.
  (2)(A) * * *
  (B) Subparagraph (A) does not apply to a member--
          (i) * * *

           *       *       *       *       *       *       *

          (v) who is involuntarily separated from active duty 
        during the period beginning on October 1, 1990, and 
        ending on December 31, [2001] 2002.

           *       *       *       *       *       *       *

  (b)(1)(A) * * *

           *       *       *       *       *       *       *

    (C) Under regulations prescribed by the Secretary of 
Defense, the weight allowance in pounds to which a member is 
entitled under subparagraph (A) is determined in accordance 
with the following table:

                                                    Without      With
                    Pay Grade                     Dependents  Dependents

O-10 to O-6.....................................      18,000      18,000
O-5.............................................      16,000      17,500
O-4.............................................      14,000      17,000
O-3.............................................      13,000      14,500
O-2.............................................      12,500      13,500
O-1.............................................      10,000      12,000
W-5.............................................      16,000      17,500
W-4.............................................      14,000      17,000
W-3.............................................      13,000      14,500
W-2.............................................      12,500      13,500
W-1.............................................      10,000      12,000
E-9.............................................      12,000      14,500
E-8.............................................      11,000      13,500
E-7.............................................      10,500      12,500
E-6.............................................       8,000      11,000
E-5.............................................       7,000       9,000
[E-4 \1\........................................       7,000       8,000
[E-4 \2\........................................       3,500       7,000
[E-3............................................       2,000       5,000
[E-2............................................       1,500       5,000
[E-1............................................       1,500       5,000

    [\1\ Member with more than two years of service computed under 
section 205 of this title.
    [\2\ Member with less than two years of service computed under 
section 205 of this title.]

                         .                              .          .

E-4...............................................      7,000      8,000
E-3...............................................      5,000      8,000
E-2...............................................      5,000      8,000
E-1...............................................      5,000      8,000

                                                               

           *       *       *       *       *       *       *
  (g)(1) Under uniform regulations prescribed by the 
Secretaries concerned, a member who--
          (A) * * *

           *       *       *       *       *       *       *

          (C) is involuntarily separated from active duty 
        during the period beginning on October 1, 1990, and 
        ending on December 31, [2001] 2002,

           *       *       *       *       *       *       *

Sec. 407. Travel and transportation allowances: dislocation allowance

  (a) Eligibility for Primary Dislocation Allowance.--(1) * * *
  (2) A member of the uniformed services referred to in 
paragraph (1) is any of the following:
          (A) * * *

           *       *       *       *       *       *       *

          (F) A member married to another member, both of whom 
        are without other dependents, who actually moves to a 
        new permanent duty station where the member is assigned 
        to family housing provided by the United States, except 
        that only one dislocation allowance may be paid to the 
        married couple with respect to the move.

           *       *       *       *       *       *       *

  (e) [First or Last Duty] Effect of Order From Last Duty 
Station.--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) Partial Dislocation Allowance.--(1) Under regulations 
prescribed by the Secretary concerned, a member ordered to 
occupy or vacate family housing provided by the United States 
to permit the privatization or renovation of housing or for any 
other reason (other than pursuant to a permanent change of 
station) may be paid a partial dislocation allowance of $500.
  (2) Effective on the same date that the monthly rates of 
basic pay for all members are increased under section 1009 of 
this title or another provision of law, the Secretary of 
Defense shall adjust the rate of the partial dislocation 
allowance authorized by this subsection by the percentage equal 
to the average percentage increase in the rates of basic pay.
  (3) Subsections (c) and (d) do not apply to the partial 
dislocation allowance authorized by this subsection.
  [(f)] (g) 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)] (h) Advance Payment.--A dislocation allowance payable 
under this section may be paid in advance.

           *       *       *       *       *       *       *

Sec. 411b. Travel and transportation allowances: travel performed in 
                    connection with leave between consecutive overseas 
                    tours

  (a)(1) Under uniform regulations prescribed by the 
Secretaries concerned, a member of a uniformed service 
stationed outside the 48 contiguous States and the District of 
Columbia who is ordered to a consecutive tour of duty at the 
same duty station or who is ordered to make a change of 
permanent station to another duty station outside the 48 
contiguous States and the District of Columbia may be paid 
travel and transportation allowances in connection with 
authorized leave from his last duty station to a place approved 
by the Secretary concerned[, or his designee, or to a place no 
farther distant than his home of record] and from that place to 
his designated post of duty. Such allowances may be paid for 
the member and for the dependents of the member who are 
authorized to, and do, accompany him at his duty stations.

           *       *       *       *       *       *       *

Sec. 416. Uniform allowance: officers; additional allowances

  (a) * * *
    (b) Subsection (a) does not apply to a tour of active duty 
if--
          (1) the officer, during that tour or within a period 
        of two years before entering on that tour, received, 
        under any law, an initial uniform reimbursement or 
        allowance of more than [$200] $400; or

           *       *       *       *       *       *       *

Sec. 427. Family separation allowance

  (a) * * *

           *       *       *       *       *       *       *

  (c) Effect of Election to Serve Unaccompanied Tour of Duty.--
[A member] (1) Except as provided in paragraph (2) or (3), a 
member who elects to serve a tour of duty unaccompanied by his 
dependents at a permanent station to which the movement of his 
dependents is authorized at the expense of the United States 
under section 406 of this title is not entitled to an allowance 
under subsection (a)(1)(A).
  (2) A member who elects to serve an unaccompanied tour of 
duty because the movement of a dependent of the member to the 
permanent station is denied for certified medical reasons is 
entitled to an allowance under subsection (a)(1)(A).
  (3) The Secretary concerned may waive the preceding sentence 
in situations in which it would be inequitable to deny the 
allowance to the member because of unusual family or 
operational circumstances.

           *       *       *       *       *       *       *

Sec. 430. Travel and transportation: dependent children of members 
                    stationed overseas

  (a) Under regulations to be prescribed by the Secretary of 
Defense, a member of a uniformed service who--
          (1) * * *

           *       *       *       *       *       *       *

          (3) has a dependent child who is under 23 years of 
        age attending a school in the continental United States 
        for the purpose of obtaining a formal education or is 
        attending a school outside the continental United 
        States, if the dependent is attending the school 
        outside the continental United States for less than one 
        year under a program approved by the school in the 
        continental United States at which the dependent is 
        enrolled,

           *       *       *       *       *       *       *

  (b)(1) A member described in subsection (a) may be paid a 
transportation allowance for each unmarried dependent child, 
who is under 23 years of age and is attending a school [in the 
continental United States for the purpose of obtaining a formal 
education] described in subsection (a)(3), of one annual trip 
between the school being attended and the member's duty station 
outside the continental United States and return. The allowance 
authorized by this section may be transportation in kind or 
reimbursement therefor, as prescribed by the Secretaries 
concerned. However, the transportation authorized by this 
section may not be paid a member for a child attending a school 
in the continental United States for the purpose of obtaining a 
secondary education if the child is eligible to attend a 
secondary school for dependents that is located at or in the 
vicinity of the duty station of the member and is operated 
under the Defense Dependents' Education Act of 1978 (20 U.S.C. 
921 et seq.).

           *       *       *       *       *       *       *

  (3) The transportation allowance under paragraph (1) for a 
dependent child who is attending a school outside the 
continental United States for less than one year under a 
program approved by the school in the continental United States 
at which the dependent is enrolled shall not exceed the 
allowance the member would be paid for a trip between the 
school in the continental United States and the member's duty 
station outside the continental United States and return.
  (c) Whenever possible, the [Military Airlift Command] Air 
Mobility Command or Military Sealift Command shall be used, on 
a space-required basis, for the travel authorized by this 
section.

           *       *       *       *       *       *       *

Sec. 432. Travel and transportation: members escorting certain 
                    dependents

  (a) * * *
  (b) Whenever possible, the [Military Airlift Command] Air 
Mobility Command or Military Sealift Command shall be used, on 
a space-required basis, for the travel authorized by this 
section.

           *       *       *       *       *       *       *

Sec. 435. Funeral honors duty: allowance

  (a) Allowance Authorized.--(1) The Secretary concerned may 
authorize payment of an allowance to a member of the Ready 
Reserve for any day on which the member performs at least two 
hours of funeral honors duty pursuant to section 12503 of title 
10 or section 115 of title 32.
  (2) The Secretary concerned may also authorize payment of an 
allowance under this section to a retired member of the armed 
forces who performs at least two hours of duty preparing for or 
performing honors at the funeral of a veteran.

           *       *       *       *       *       *       *

  (c) Concurrent Payment.--Notwithstanding any other provision 
of law, the allowance paid to a retired member of the armed 
forces under this section shall be in addition to any other 
compensation to which the retired member may be entitled under 
this title or titles 10 or 38.

Sec. 436. Per diem allowance for lengthy or numerous deployments

  (a) Per Diem Required.--The Secretary of the military 
department concerned shall pay a high-deployment per diem 
allowance to a member of the armed forces under the Secretary's 
jurisdiction for each day on which the member (1) is deployed, 
and (2) has, as of that day, been deployed 401 or more days out 
of the preceding 730 days. The Secretary shall pay the 
allowance from appropriations available for operation and 
maintenance for the armed force in which the member serves.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 503 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1991

SEC. 503. TRAVEL AND TRANSPORTATION ALLOWANCES RELATING TO MEMBERS 
                    INVOLUNTARILY SEPARATED

  (a) * * *

           *       *       *       *       *       *       *

  (c) Storage of Household Effects.--(1) The Secretary of a 
military department shall exercise the authority provided by 
section 406 of title 37, United States Code, to provide 
nontemporary storage of baggage and household effects for a 
period not longer than one year in the case of individuals who 
are involuntarily separated during the period beginning on 
October 1, 1990, and ending on December 31, [2001] 2002.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 32, UNITED STATES CODE

           *       *       *       *       *       *       *

CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *

Sec. 115. Funeral honors duty performed as a Federal function

  (a) Order to Duty.--A member of the Army National Guard of 
the United States or the Air National Guard of the United 
States may be ordered to funeral honors duty, with the consent 
of the member, to prepare for or perform funeral honors 
functions at the funeral of a veteran under section 1491 of 
title 10. However, a member of the Army National Guard of the 
United States or the Air National Guard of the United States 
may not be ordered to perform funeral honors functions under 
this section without the consent of the Governor or other 
appropriate authority of the State concerned. Performance of 
funeral honors duty by such a member not on active duty or 
full-time National Guard duty shall be treated as inactive-duty 
training (including with respect to travel to and from such 
duty) for purposes of any provision of law other than sections 
206 and 435 of title 37.

           *       *       *       *       *       *       *

CHAPTER 5--TRAINING

           *       *       *       *       *       *       *

Sec. 509. National Guard Challenge Program of opportunities for 
                    civilian youth

  (a) * * *
  (b) Conduct of the Program.--(1) 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.
  (2) The Secretary shall carry out the National Guard 
Challenge Program using--
          (A) funds appropriated directly to the Secretary of 
        Defense for the program, except that the amount of 
        funds appropriated directly to the Secretary and 
        expended for the program [in a fiscal year] in fiscal 
        year 2001 or 2002 may not exceed $62,500,000; and

           *       *       *       *       *       *       *

  (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.]
          (1) for fiscal years 2001 and 2002, 60 percent of the 
        costs of operating the State program during that fiscal 
        year; and
          (2) for fiscal year 2003 and each subsequent fiscal 
        year, 75 percent of the costs of operating the State 
        program during that fiscal year.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *

CHAPTER 33--EXAMINATION, SELECTION, AND PLACEMENT

           *       *       *       *       *       *       *

SUBCHAPTER VI--ASSIGNMENTS TO AND FROM STATES

           *       *       *       *       *       *       *

Sec. 3374. Assignments of employees from State or local governments

  (a) * * *

           *       *       *       *       *       *       *

  (c) During the period of assignment, a State or local 
government employee on detail to a Federal agency--
          (1) is not entitled to pay from the agency, except to 
        the extent that the pay received from the State or 
        local government is less than the appropriate rate of 
        pay which the duties would warrant under the applicable 
        pay provisions of this title or other applicable 
        authority;
          (2) is deemed an employee of the agency for the 
        purpose of chapter 73 of this title, the Ethics in 
        Government Act of 1978, section 1043 of the Internal 
        Revenue Code of 1986, section 27 of the Office of 
        Federal Procurement Policy Act, sections 203, 205, 207, 
        208, 209, 602, 603, 606, 607, 643, 654, 1905, and 1913 
        of title 18, sections 1343, 1344, and 1349(b) of title 
        31, and the Federal Tort Claims Act and any other 
        Federal tort liability statute; and

           *       *       *       *       *       *       *

CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *

SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

           *       *       *       *       *       *       *

Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.

           *       *       *       *       *       *       *

          Principal Deputy Administrator, National Nuclear 
        Security Administration.
          Additional Deputy Administrators of the National 
        Nuclear Security Administration (3), but if the Deputy 
        Administrator for Naval Reactors is an officer of the 
        Navy on active duty, (2).

           *       *       *       *       *       *       *

SUBCHAPTER IV--PREVAILING RATE SYSTEMS

           *       *       *       *       *       *       *

Sec. 5343. Prevailing rate determinations; wage schedules; night 
                    differentials

  (a) * * *

           *       *       *       *       *       *       *

  (c) The Office of Personnel Management, by regulation, shall 
prescribe practices and procedures for conducting wage surveys, 
analyzing wage survey data, developing and establishing wage 
schedules and rates, and administering the prevailing rate 
system. The regulations shall provide--
          (1) * * *

           *       *       *       *       *       *       *

          (4) for proper differentials, as determined by the 
        Office, for duty involving unusually severe working 
        conditions or unusually severe hazards (and for any 
        hardship or hazard related to asbestos, such 
        differentials shall be determined by applying 
        occupational safety and health standards consistent 
        with the permissible exposure limit promulgated by the 
        Secretary of Labor under the Occupational Safety and 
        Health Act of 1970);

           *       *       *       *       *       *       *

  (d)(1) * * *
  [(2) When the lead agency determines that there is a number 
of comparable positions in private industry insufficient to 
establish the wage schedules and rates, such agency shall--
          [(A) establish the wage schedules and rates to be 
        applicable to prevailing rate employees other than 
        prevailing rate employees of the Department of Defense 
        on the basis of--
                  [(i) local private industry rates; and
                  [(ii) rates paid for comparable positions in 
                private industry in the nearest wage area that 
                such agency determines is most similar in the 
                nature of its population, employment, manpower, 
                and industry to the local wage area for which 
                the wage survey is being made; and
          [(B) establish the wage schedules and rates to be 
        applicable to prevailing rate employees of the 
        Department of Defense only on the basis of local 
        private industry rates.]
  (2) When a lead agency determines that there is a number of 
comparable positions in private industry insufficient to 
establish the wage schedules and rates, such agency shall 
establish those schedules and rates on the basis of--
          (A) local private industry rates; and
          (B) rates paid for comparable positions in private 
        industry in the nearest wage area that such agency 
        determines is most similar in the nature of its 
        population, employment, manpower, and industry to the 
        local wage area for which the wage survey is being 
        made.

           *       *       *       *       *       *       *

CHAPTER 55--PAY ADMINISTRATION

           *       *       *       *       *       *       *

SUBCHAPTER V--PREMIUM PAY

           *       *       *       *       *       *       *

Sec. 5543. Compensatory time off

  (a) The head of an agency may--
          (1) on request of an employee, grant the employee 
        compensatory time off from his scheduled tour of duty 
        instead of payment under section 5542 or section 7 of 
        the Fair Labor Standards Act of 1938 for an equal 
        amount of time spent in [irregular or occasional] 
        overtime work; and
          (2) provide that an employee whose rate of basic pay 
        is in excess of the maximum rate of basic pay for GS-10 
        (including any applicable locality-based comparability 
        payment under section 5304 or similar provision of law 
        and any applicable special rate of pay under section 
        5305 or similar provision of law) shall be granted 
        compensatory time off from his scheduled tour of duty 
        equal to the amount of time spent in [irregular or 
        occasional] overtime work instead of being paid for 
        that work under section 5542 of this title.
  (b) The head of an agency may, on request of an employee, 
grant the employee compensatory time off from the employee's 
scheduled tour of duty instead of payment under section 5544 or 
section 7 of the Fair Labor Standards Act of 1938 for an equal 
amount of time spent in [irregular or occasional] overtime 
work. An agency head may not require an employee to be 
compensated for overtime work with an equivalent amount of 
compensatory time-off from the employee's tour of duty.

           *       *       *       *       *       *       *

Sec. 5545. Night, standby, irregular, and hazardous duty differential

  (a) * * *

           *       *       *       *       *       *       *

  (d) The Office shall establish a schedule or schedules of pay 
differentials for duty involving unusual physical hardship or 
hazard (and for any hardship or hazard related to asbestos, 
such differentials shall be determined by applying occupational 
safety and health standards consistent with the permissible 
exposure limit promulgated by the Secretary of Labor under the 
Occupational Safety and Health Act of 1970). Under such 
regulations as the Office may prescribe, and for such minimum 
periods as it determines appropriate, an employee to whom 
chapter 51 and subchapter III of chapter 53 of this title 
applies is entitled to be paid the appropriate differential for 
any period in which he is subjected to physical hardship or 
hazard not usually involved in carrying out the duties of his 
position. However, the pay differential--
          (1) * * *

           *       *       *       *       *       *       *

Sec. 5547. Limitation on premium pay

  [(a) An employee may be paid premium pay under sections 5542, 
5545 (a), (b), and (c), 5545a, and 5546 (a) and (b) of this 
title only to the extent that the payment does not cause his 
aggregate rate of pay for any pay period to exceed the maximum 
rate for GS-15 (including any applicable locality-based 
comparability payment under section 5304 or similar provision 
of law and any applicable special rate of pay under section 
5305 or similar provision of law). The first sentence of this 
subsection shall not apply to any employee of the Federal 
Aviation Administration or the Department of Defense who is 
paid premium pay under section 5546a of this title.
  [(b)(1) Subject to regulations prescribed by the Office of 
Personnel Management, the first sentence of subsection (a) 
shall not apply to an employee who is paid premium pay by 
reason of work in connection with an emergency which involves a 
direct threat to life or property, including a forest wildfire 
emergency.
  [(2) Notwithstanding paragraph (1), no employee referred to 
in such paragraph may be paid premium pay under the provisions 
of law cited in the first sentence of subsection (a) if, or to 
the extent that, the aggregate of such employee's basic pay and 
premium pay under those provisions would, in any calendar year, 
exceed the maximum rate payable for GS-15 in effect at the end 
of such calendar year.]
  (a) An employee may be paid premium pay under sections 5542, 
5545 (a), (b), and (c), 5545a, and 5546 (a) and (b) of this 
title only to the extent that the aggregate of such employee's 
basic pay and premium pay under those provisions would, in any 
calendar year, exceed the maximum rate payable for GS-15 in 
effect at the end of such calendar year.
  (b) Subsection (a) shall not apply to any employee of the 
Federal Aviation Administration or the Department of Defense 
who is paid premium pay under section 5546a of this title.
  (c)(1) [Subsections (a) and (b)] Subsection (a) shall not 
apply to a law enforcement officer.
  (2) A law enforcement officer may be paid premium pay under 
the provisions of law cited in the first sentence of subsection 
(a) only to the extent that the payment does not cause the 
officer's aggregate rate of pay for any [pay period] calendar 
year to exceed the lesser of--
          (A) * * *

           *       *       *       *       *       *       *

CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

           *       *       *       *       *       *       *

                 SUBCHAPTER IV--MISCELLANEOUS PROVISIONS

5751.  Travel expenses of witnesses.
     * * * * * * *
5757.  Payment of expenses to obtain professional credentials.
     * * * * * * *

SUBCHAPTER IV--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

Sec. 5757. Payment of expenses to obtain professional credentials

  (a) An agency may use appropriated funds or funds otherwise 
available to the agency to pay for--
          (1) expenses for employees to obtain professional 
        credentials, including expenses for professional 
        accreditation, State-imposed and professional licenses, 
        and professional certification; and
          (2) examinations to obtain such credentials.
  (b) The authority under subsection (a) may not be exercised 
on behalf of any employee occupying or seeking to qualify for 
appointment to any position that is excepted from the 
competitive service because of the confidential, policy-
determining, policy-making, or policy-advocating character of 
the position.

           *       *       *       *       *       *       *

CHAPTER 63--LEAVE

           *       *       *       *       *       *       *

SUBCHAPTER II--OTHER PAID LEAVE

           *       *       *       *       *       *       *

Sec. 6323. Military leave; Reserves and National Guardsmen

  (a)(1) Subject to paragraph (2) of this subsection, an 
employee as defined by section 2105 of this title or an 
individual employed by the government of the District of 
Columbia, permanent or temporary indefinite, is entitled to 
leave without loss in pay, time, or performance or efficiency 
rating for active duty, inactive-duty training (as defined in 
section 101 of title 37), funeral honors duty (as described in 
section 12503 of title 10 and section 115 of title 32), or 
engaging in field or coast defense training under sections 502-
505 of title 32 as a Reserve of the armed forces or member of 
the National Guard. Leave under this subsection accrues for an 
employee or individual at the rate of 15 days per fiscal year 
and, to the extent that it is not used in a fiscal year, 
accumulates for use in the succeeding fiscal year until it 
totals 15 days at the beginning of a fiscal year.

           *       *       *       *       *       *       *

CHAPTER 83--RETIREMENT

           *       *       *       *       *       *       *

SUBCHAPTER III--CIVIL SERVICE RETIREMENT

           *       *       *       *       *       *       *

Sec. 8336. Immediate retirement

  (a) * * *

           *       *       *       *       *       *       *

  (d) An employee who--
          (1) * * *
          (2) except in the case of an employee who is 
        separated from the service under a program carried out 
        under subsection [(o)] (p), while serving in a 
        geographic area designated by the Office of Personnel 
        Management, is separated from the service voluntarily 
        during a period in which the Office determines that--

           *       *       *       *       *       *       *

  [(o)] (p)(1) The Secretary of Defense may, during fiscal 
years 2002 and 2003, carry out a program under which an 
employee of the Department of Defense may be separated from the 
service entitled to an immediate annuity under this subchapter 
if the employee--
          (A) * * *

           *       *       *       *       *       *       *

Sec. 8347. Administration; regulations

  (a) * * *

           *       *       *       *       *       *       *

  (q)(1) Under regulations prescribed by the Office of 
Personnel Management, an employee who--
          (A) * * *
          (B) [has 5 or more years of civilian service 
        creditable under] is employed subject to this 
        subchapter; and
  (2) Under regulations prescribed by the Office of Personnel 
Management, an employee of a nonappropriated fund 
instrumentality of the Department of Defense or the Coast 
Guard, described in section 2105(c), who--
          (A) * * *
          (B) is a [vested] participant in a retirement system 
        established for employees described in section 
        2105(c)[, as the term ``vested participant'' is defined 
        by such system];

           *       *       *       *       *       *       *

CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM

           *       *       *       *       *       *       *

          SUBCHAPTER VI--GENERAL AND ADMINISTRATIVE PROVISIONS

Sec. 8461. Authority of the Office of Personnel Management

  (a) * * *

           *       *       *       *       *       *       *

  (n)(1) Under regulations prescribed by the Office, an 
employee who--
          (A) * * *
          (B) [has 5 more years of civilian service creditable 
        under] is employed subject to this chapter; and

           *       *       *       *       *       *       *

  (2) Under regulations prescribed by the Office, an employee 
of a nonappropriated fund instrumentality of the Department of 
Defense or the Coast Guard described in section 2105(c), who--
          (A) * * *
          (B) is a [vested] participant in a retirement system 
        established for employees described in section 
        2105(c)[, as the term ``vested participant'' is defined 
        by such system];

           *       *       *       *       *       *       *

CHAPTER 89--HEALTH INSURANCE

           *       *       *       *       *       *       *

Sec. 8906. Contributions

  (a) * * *

           *       *       *       *       *       *       *

  (e)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) An employing agency may pay both the employee and 
Government contributions, and any additional administrative 
expenses otherwise chargeable to the employee, with respect to 
health care coverage for an employee described in subparagraph 
(B) and the family of such employee.
  (B) An employee referred to in subparagraph (A) is an 
employee who--
          (i) is enrolled in a health benefits plan under this 
        chapter;
          (ii) is a member of a reserve component of the armed 
        forces;
          (iii) is called or ordered to active duty in support 
        of a contingency operation (as defined in section 
        101(a)(13) of title 10);
          (iv) is placed on leave without pay or separated from 
        service to perform active duty; and
          (v) serves on active duty for a period of more than 
        30 consecutive days.
  (C) Notwithstanding the one-year limitation on coverage 
described in paragraph (1)(A), payment may be made under this 
paragraph for a period not to exceed 18 months.
  [(f) The Government contributions for health benefits for an 
employee shall be paid--]
  (f) The Government contribution, and any additional payments 
under subsection (e)(3)(A), for health benefits for an employee 
shall be paid--
          (1) in the case of employees generally, from the 
        appropriation or fund which is used to pay the 
        employee;

           *       *       *       *       *       *       *

CHAPTER 90--LONG-TERM CARE INSURANCE

           *       *       *       *       *       *       *

Sec. 9001. Definitions

  For purposes of this chapter:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Member of the uniformed services.--The term 
        ``member of the uniformed services'' means a member of 
        the uniformed services, other than a retired member of 
        the uniformed services, who is--
                  (A) on active duty or full-time National 
                Guard duty for a period of more than 30 days; 
                [and] or
                  (B) a member of the Selected Reserve.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 14, UNITED STATES CODE

           *       *       *       *       *       *       *

   CHAPTER 13--PAY, ALLOWANCES, AWARDS, AND OTHER RIGHTS AND BENEFITS

Sec.
461.  Remission of indebtedness of enlisted members upon discharge.
     * * * * * * *
504.  Medal of honor: duplicate medal.
     * * * * * * *

Sec. 501. Replacement of medals

  In those cases where a medal, or a bar, emblem, or insignia 
in lieu thereof, awarded pursuant to this chapter has been 
stolen, lost, destroyed, or rendered unfit for use without 
fault or neglect on the part of the person to whom it was 
awarded, such medal, or bar, emblem, or insignia in lieu 
thereof, shall be replaced without charge, or, in the 
discretion of the Secretary, upon condition that the Government 
is reimbursed for the cost thereof.

           *       *       *       *       *       *       *

Sec. 504. Medal of honor: duplicate medal

  A person awarded a medal of honor shall, upon written 
application of that person, be issued, without charge, one 
duplicate medal of honor with ribbons and appurtenances. Such 
duplicate medal of honor shall be marked, in such manner as the 
Secretary may determine, as a duplicate or for display purposes 
only.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 704 OF TITLE 18, UNITED STATES CODE

Sec. 704. Military medals or decorations

  (a) * * *
  (b) Congressional Medal of Honor.--
          (1) * * *
          (2) Definitions.--(A) * * *
          [(B) As used in this subsection, ``Congressional 
        Medal of Honor'' means a medal awarded under section 
        3741, 6241, or 8741 of title 10.]
          (B) As used in this subsection, ``Congressional Medal 
        of Honor'' means--
                  (i) a medal of honor awarded under section 
                3741, 6241, or 8741 of title 10 or section 491 
                of title 14;
                  (ii) a duplicate medal of honor issued under 
                section 3754, 6256, or 8754 of title 10 or 
                section 504 of title 14; or
                  (iii) a replacement of a medal of honor 
                provided under section 3747, 6253, or 8747 of 
                title 10 or section 501 of title 14.
                              ----------                              

SECTION 721 OF THE NATIONAL DEFENSE AUTHORIZATION ACT, FISCAL YEAR 1989

[SEC. 721. REGULATIONS FOR DELIVERY OF MILITARY PERSONNEL TO CIVIL 
                    AUTHORITIES WHEN CHARGED WITH CERTAIN OFFENSES

  [(a) Not later than 90 days after the date of enactment of 
this Act, the Secretary of Defense shall ensure that the 
Secretaries of the military departments have issued uniform 
regulations pursuant to section 814 of title 10, United States 
Code, to provide for the delivery of members of the Armed 
Forces to civilian authority when such members have been 
accused of offenses against civil authority. Such regulations 
shall specifically provide for the delivery of such members to 
civilian authority, in appropriate cases, when such members are 
accused of parental kidnapping and other similar offenses, 
including criminal contempt arising from such offenses and from 
child custody matters, and shall specifically address the 
special needs for the exercise of the authority contained in 
section 814 of title 10, United States Code, when members of 
the Armed Forces assigned overseas are accused of offenses by 
civilian authorities.
  [(b) Not later than 120 days after the enactment of this Act, 
the Secretary of Defense shall transmit to the Committees on 
Armed Services of the Senate and House of Representatives a 
copy of all regulations promulgated under section 814 of title 
10, United States Code, as a result of this section and any 
recommendations that the Secretary may have concerning the need 
for additional legislation related to the amenability of 
members of the Armed Forces to civil authority.]
                              ----------                              

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1994

           *       *       *       *       *       *       *

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *

TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

Subtitle D--Women in the Service

           *       *       *       *       *       *       *

SEC. 542. NOTICE TO CONGRESS OF PROPOSED CHANGES IN COMBAT ASSIGNMENTS 
                    TO WHICH FEMALE MEMBERS MAY BE ASSIGNED.

  (a) * * *
  (b) Special Rule for Ground Combat Exclusion Policy.--(1) If 
the Secretary of Defense proposes to make any change described 
in paragraph (2) to the ground combat exclusion policy, the 
Secretary shall, [not less than 90 days] before any such change 
is implemented, submit to Congress a report providing notice of 
the proposed change. Such a change may then be implemented only 
after the end of a period of 60 days of continuous session of 
Congress (excluding any day on which either House of Congress 
is not in session) following the date on which the report is 
received.

           *       *       *       *       *       *       *

  (5) For purposes of this subsection, the continuity of a 
session of Congress is broken only by an adjournment of the 
Congress sine die.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Subtitle E--Other Matters

           *       *       *       *       *       *       *

SEC. 845. AUTHORITY OF THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY TO 
                    CARRY OUT CERTAIN PROTOTYPE PROJECTS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Appropriate Use of Authority.--(1) The Secretary of 
Defense shall ensure that no official of an agency enters into 
a transaction (other than a contract, grant, or cooperative 
agreement) for a prototype project under the authority of this 
section unless--
          (A) * * *
          (B) no nontraditional defense contractor is 
        participating to a significant extent in the prototype 
        project, but at least one of the following 
        circumstances exists:
                  (i) * * *
                  (ii) The senior procurement executive for the 
                agency (as designated for the purposes of 
                section 16(3) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 414(3))) 
                determines in writing that exceptional 
                circumstances justify the use of a transaction 
                that provides for innovative business 
                arrangements or structures that would not be 
                feasible or appropriate under a contract.

           *       *       *       *       *       *       *

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

           *       *       *       *       *       *       *

            TITLE XXIX--DEFENSE BASE CLOSURE AND REALIGNMENT

Subtitle A--Base Closure Community Assistance

           *       *       *       *       *       *       *

SEC. 2915. TRANSITION COORDINATORS FOR ASSISTANCE TO COMMUNITIES 
                    AFFECTED BY THE CLOSURE OF INSTALLATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Responsibilities.--A transition coordinator designated 
with respect to an installation shall--
          (1) * * *

           *       *       *       *       *       *       *

          (10) assist the Secretary of Defense in identifying 
        real property or personal property at the installation 
        that may be utilized to meet the needs of the homeless 
        by consulting with the Secretary of Housing and Urban 
        Development and the local lead agency of the homeless, 
        if any, referred to in section 210(b) of the [Stewart 
        B. McKinney Homeless Assistance Act] McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11320(b)) for the 
        State in which the installation is located.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 8102 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2001

  Sec. 8102. (a) * * *
  (b) Certifications as to Compliance With Clinger-Cohen Act.--
(1) During the current fiscal year, a major automated 
information system may not receive [Milestone I] Milestone B 
approval, [Milestone II] Milestone C approval, or [Milestone 
III] full rate production approval, or their equivalent, within 
the Department of Defense until the Chief Information Officer 
certifies, with respect to that milestone, that the system is 
being developed in accordance with the Clinger-Cohen Act of 
1996 (40 U.S.C. 1401 et seq.). The Chief Information Officer 
may require additional certifications, as appropriate, with 
respect to any such system.

           *       *       *       *       *       *       *

                              ----------                              

             SECTION 4202 OF THE CLINGER-COHEN ACT OF 1996

SEC. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN COMMERCIAL 
                    ITEMS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Effective Date.--The authority to issue solicitations for 
purchases of commercial items in excess of the simplified 
acquisition threshold pursuant to the special simplified 
procedures authorized by section 2304(g)(1) of title 10, United 
States Code, section 303(g)(1) of the Federal Property and 
Administrative Services Act of 1949, and section 31(a) of the 
Office of Federal Procurement Policy Act, as amended by this 
section, shall expire January 1, [2002] 2004. Contracts may be 
awarded pursuant to solicitations that have been issued before 
such authority expires, notwithstanding the expiration of such 
authority.
                              ----------                              

   SECTION 9005 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1993

  [Sec. 9005. During the current fiscal year and hereafter, no 
part of any appropriation or any other funds available to the 
Department of Defense, except for purchases for amounts not 
greater than the simplified acquisition threshold covered by 
section 2304(g) of title 10, United States Code, shall be 
available for the procurement of any article or item of food, 
clothing, tents, tarpaulins, covers, cotton and other natural 
fiber products, woven silk or woven silk blends, spun silk yarn 
for cartridge cloth, synthetic fabric or coated synthetic 
fabric, canvas products, or wool (whether in the form of fiber 
or yarn or contained in fabrics, materials, or manufactured 
articles), or any item of individual equipment manufactured 
from or containing such fibers, yarns, fabrics, or materials, 
or specialty metals including stainless steel flatware, or hand 
or measuring tools, not grown, reprocessed, reused, or produced 
in the United States or its possessions, except to the extent 
that the Secretary of the Department concerned shall determine 
that satisfactory quality and sufficient quantity of any 
articles or items of food, individual equipment, tents, 
tarpaulins, covers, or clothing or any form of cotton or other 
natural fiber products, woven silk and woven silk blends, spun 
silk yarn for cartridge cloth, synthetic fabric or coated 
synthetic fabric, canvas products, wool, or specialty metals 
including stainless steel flatware, grown, reprocessed, reused, 
or produced in the United States or its possessions cannot be 
procured as and when needed at United States market prices and 
except procurements outside the United States in support of 
combat operations, procurements by vessels in foreign waters, 
and emergency procurements or procurements of perishable foods 
by establishments located outside the United States for the 
personnel attached thereto: Provided, That nothing herein shall 
preclude the procurement of specialty metals or chemical 
warfare protective clothing produced outside the United States 
or its possessions when such procurement is necessary to comply 
with agreements with foreign governments requiring the United 
States to purchase supplies from foreign sources for the 
purposes of offsetting sales made by the United States 
Government or United States firms under approved programs 
serving defense requirements or where such procurement is 
necessary in furtherance of agreements with foreign governments 
in which both governments agree to remove barriers to purchases 
of supplies produced in the other country or services performed 
by sources of the other country, so long as such agreements 
with foreign governments comply, where applicable, with the 
requirements of section 36 of the Arms Export Control Act and 
with section 2457 of title 10, United States Code: Provided 
further, That nothing herein shall preclude the procurement of 
foods manufactured or processed in the United States or its 
possessions.]
                              ----------                              

   SECTION 8109 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1997

    [Sec. 8109. In applying section 9005 of the Department of 
Defense Appropriations Act, 1993, Public Law 102-396 (10 U.S.C. 
2241 note), during the current fiscal year and thereafter--
          [(1) the term ``synthetic fabric and coated synthetic 
        fabric'' shall be deemed to include all textile fibers 
        and yarns that are for use in such fabrics; and
          [(2) such section shall be treated, notwithstanding 
        section 34 of Public Law 93-400 (41 U.S.C. 430), as 
        being applicable to contracts and subcontracts for the 
        procurement of commercial items that are articles or 
        items, specialty metals, or tools covered by that 
        section 9005.]
                              ----------                              

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

           *       *       *       *       *       *       *

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle G--Other Matters

           *       *       *       *       *       *       *

SEC. 1083. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

  (a) * * *

           *       *       *       *       *       *       *

  (c) [Names] Name and Symbols.--The Secretary of Defense shall 
have the sole and exclusive right to use the name ``The United 
States of America Korean War 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.

           *       *       *       *       *       *       *

TITLE XIII--ARMS CONTROL AND RELATED MATTERS

           *       *       *       *       *       *       *

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
                    NUCLEAR DELIVERY SYSTEMS.

  (a) Funding Limitation.--(1) Except as provided in paragraph 
(2), funds available to the Department of Defense may not be 
obligated or expended for retiring or dismantling, or for 
preparing to retire or dismantle, any of the following 
strategic nuclear delivery systems below the specified levels:
          (A) * * *

           *       *       *       *       *       *       *

          [(D) 50 Peacekeeper intercontinental ballistic 
        missiles.]

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

TITLE XXXIII--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] the two-
        fiscal year period ending September 30, 2003;

           *       *       *       *       *       *       *

                              ----------                              

DEFENSE BASE CLOSURE AND REALIGNMENT ACT OF 1990

           *       *       *       *       *       *       *

SEC. 2905. IMPLEMENTATION

  (a) * * *
  (b) Management and Disposal of Property.--(1) * * *

           *       *       *       *       *       *       *

  (4)(A) * * *

           *       *       *       *       *       *       *

  (E)(i) * * *

           *       *       *       *       *       *       *

  (v) Notwithstanding clause (iii) or chapter 137 of title 10, 
United States Code, if a lease under clause (i) involves a 
substantial portion of the installation, the department or 
agency concerned may obtain facility services for the leased 
property and common area maintenance from the redevelopment 
authority or the redevelopment authority's assignee as a 
provision of the lease. The facility services and common area 
maintenance shall be provided at a rate no higher than the rate 
charged to non-Federal tenants of the transferred property. 
Facility services and common area maintenance covered by the 
lease shall not include--
          (I) municipal services that a State or local 
        government is required by law to provide to all 
        landowners in its jurisdiction without direct charge; 
        or
          (II) firefighting or security-guard functions.

           *       *       *       *       *       *       *

  (6)(A) Except as provided in this paragraph, nothing in this 
section shall limit or otherwise affect the application of the 
provisions of the [Stewart B. McKinney Homeless Assistance Act] 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et 
seq.) to military installations closed under this part. For 
procedures relating to the use to assist the homeless of 
buildings and property at installations closed under this part 
after the date of the enactment of this sentence, see paragraph 
(7).

           *       *       *       *       *       *       *

SEC. 2910. DEFINITIONS

  As used in this part:
          (1) * * *

           *       *       *       *       *       *       *

          (11) The term ``representative of the homeless'' has 
        the meaning given such term in section 501(i)(4) of the 
        [Stewart B. McKinney Homeless Assistance Act] McKinney-
        Vento Homeless Assistance Act (42 U.S.C. 11411(i)(4)).

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 204 OF THE DEFENSE AUTHORIZATION AMENDMENTS AND BASE CLOSURE 
                          AND REALIGNMENT ACT

SEC. 204. IMPLEMENTATION

  (a) * * *
  (b) Management and Disposal of Property.--(1) * * *

           *       *       *       *       *       *       *

  (4)(A) * * *

           *       *       *       *       *       *       *

  (E)(i) The Secretary may transfer real property at an 
installation approved for closure or realignment under this 
title (including property at an installation approved for 
realignment which will be retained by the Department of Defense 
or another Federal agency after realignment) to the 
redevelopment authority for the installation if the 
redevelopment authority agrees to lease, directly upon 
transfer, one or more portions of the property transferred 
under this subparagraph to the Secretary or to the head of 
another department or agency of the Federal Government. 
Subparagraph (B) shall apply to a transfer under this 
subparagraph.
  (ii) A lease under clause (i) shall be for a term of not to 
exceed 50 years, but may provide for options for renewal or 
extension of the term by the department or agency concerned.
  (iii) A lease under clause (i) may not require rental 
payments by the United States.
  (iv) A lease under clause (i) shall include a provision 
specifying that if the department or agency concerned ceases 
requiring the use of the leased property before the expiration 
of the term of the lease, the remainder of the lease term may 
be satisfied by the same or another department or agency of the 
Federal Government using the property for a use similar to the 
use under the lease. Exercise of the authority provided by this 
clause shall be made in consultation with the redevelopment 
authority concerned.
  (v) Notwithstanding clause (iii) or chapter 137 of title 10, 
United States Code, if a lease under clause (i) involves a 
substantial portion of the installation, the department or 
agency concerned may obtain facility services for the leased 
property and common area maintenance from the redevelopment 
authority or the redevelopment authority's assignee as a 
provision of the lease. The facility services and common area 
maintenance shall be provided at a rate no higher than the rate 
charged to non-Federal tenants of the transferred property. 
Facility services and common area maintenance covered by the 
lease shall not include--
          (I) municipal services that a State or local 
        government is required by law to provide to all 
        landowners in its jurisdiction without direct charge; 
        or
          (II) firefighting or security-guard functions.
  [(E)] (F) The transfer of personal property under 
subparagraph (A) shall not be subject to the provisions of 
sections 202 and 203 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 483, 484) if the Secretary 
determines that the transfer of such property is necessary for 
the effective implementation of a redevelopment plan with 
respect to the installation at which such property is located.
  [(F)] (G) The provisions of section 120(h) of the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9620(h)) shall apply to any 
transfer of real property under this paragraph.
  [(G)] (H)(i) In the case of an agreement for the transfer of 
property of a military installation under this paragraph that 
was entered into before April 21, 1999, the Secretary may 
modify the agreement, and in so doing compromise, waive, 
adjust, release, or reduce any right, title, claim, lien, or 
demand of the United States, if--
          (I) * * *

           *       *       *       *       *       *       *

  [(H)] (I) In the case of an agreement for the transfer of 
property of a military installation under this paragraph that 
was entered into during the period beginning on April 21, 1999, 
and ending on the date of enactment of the National Defense 
Authorization Act for Fiscal Year 2000, at the request of the 
redevelopment authority concerned, the Secretary shall modify 
the agreement to conform to all the requirements of 
subparagraphs (B), (C), and (D). Such a modification may 
include the compromise, waiver, adjustment, release, or 
reduction of any right, title, claim, lien, or demand of the 
United States under the agreement.
  [(I)] (J) The Secretary may require any additional terms and 
conditions in connection with a transfer under this paragraph 
as such Secretary considers appropriate to protect the 
interests of the United States.

           *       *       *       *       *       *       *

  (6)(A) Except as provided in this paragraph, nothing in this 
section shall limit or otherwise affect the application of the 
provisions of the [Stewart B. McKinney Homeless Assistance Act] 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et 
seq.) to military installations closed under this title.

           *       *       *       *       *       *       *

                              ----------                              

  SECTION 2 OF THE BASE CLOSURE COMMUNITY REDEVELOPMENT AND HOMELESS 
                         ASSISTANCE ACT OF 1994

SEC. 2. DISPOSAL OF BUILDINGS AND PROPERTY AT MILITARY INSTALLATIONS 
                    APPROVED FOR CLOSURE.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Applicability to Installations Approved for Closure 
Before Enactment of Act.--(1) * * *

           *       *       *       *       *       *       *

  (4)(A) The Secretary of Housing and Urban Development and the 
Secretary of Health and Human Services shall not, during the 
60-day period beginning on the date of the enactment of this 
Act, carry out with respect to any military installation 
approved for closure under the 1988 base closure Act or the 
1990 base closure Act before such date any action required of 
such Secretaries under the 1988 base closure Act or the 1990 
base closure Act, as the case may be, or under section 501 of 
the [Stewart B. McKinney Homeless Assistance Act] McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11411).

           *       *       *       *       *       *       *

                              ----------                              

SECTION 1053 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1997

SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT OF 
                    COLUMBIA.

  (a) Disposal Authorized.--Notwithstanding title II the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 481 et seq.), title VIII of such Act (40 U.S.C. 531 et 
seq.), section 501 of the [Stewart B. McKinney Homeless 
Assistance Act] McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11411), or any other provision of law relating to the 
management and disposal of real property by the United States, 
the Armed Forces Retirement Home Board may convey, by sale or 
otherwise, all right, title, and interest of the United States 
in a parcel of real property, including improvements thereon, 
consisting of approximately 49 acres located in Washington, 
District of Columbia, east of North Capitol Street, and 
recorded as District Parcel 121/19.

           *       *       *       *       *       *       *

                              ----------                              

SECTION 1123 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS 
                             1990 AND 1991

SEC. 1123. PROFESSIONAL MILITARY EDUCATION IN JOINT MATTERS

  (a) * * *
  (b) Statement of Congressional Policy.--As part of the 
efforts of the Secretary of Defense to improve professional 
military education, Congress urges, as a matter of policy, and 
fully expects the Secretary to establish the following:
          (1) * * *
          (2) A two-phase approach to strengthening the focus 
        on joint matters, as follows:
                  (A) * * *
                  (B) Phase II instruction consisting of a 
                follow-on, solely joint curriculum taught at 
                the [Armed Forces Staff College] Joint Forces 
                Staff College to officers who are expected to 
                be selected for the joint specialty. The 
                curriculum should emphasize multiple ``hands 
                on'' exercises and must adequately prepare 
                students to perform effectively from the outset 
                in what will probably be their first exposure 
                to a totally new environment, an assignment to 
                a joint, multiservice organization. Phase II 
                instruction should be structured so that 
                students progress from a basic knowledge of 
                joint matters learned in Phase I to the level 
                of expertise necessary for successful 
                performance in the joint arena.
          (3) A sequenced approach to joint education in which 
        the norm would require an officer to complete Phase I 
        instruction before proceeding to Phase II instruction. 
        An exception to the normal sequence should be granted 
        by the Chairman of the Joint Chiefs of Staff only on a 
        case-by-case basis for compelling cause. Officers 
        selected to receive such an exception should be 
        required to demonstrate a basic knowledge of joint 
        matters and other aspects of the Phase I curriculum 
        that qualifies them to meet the minimum requirements 
        established for entry into Phase II instruction without 
        first completing Phase I instruction. The number of 
        officers selected to attend an offering of the 
        principal course of instruction at the [Armed Forces 
        Staff College] Joint Forces Staff College who have not 
        completed Phase I instruction should comprise only a 
        small portion of the total number of officers selected.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 1412 OF THE DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986

SEC. 1412. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS 
                    AND MUNITIONS

  (a) * * *

           *       *       *       *       *       *       *

  (g) Periodic Reports.--(1) * * *
  (2) Each annual report shall include the following:
          (A) * * *

           *       *       *       *       *       *       *

          (C) An accounting of all funds expended (during such 
        fiscal year) for activities carried out under this 
        section, with a separate accounting for amounts 
        expended for--
                  (i) * * *

           *       *       *       *       *       *       *

                  (vii) grants to State and local governments 
                to assist those governments in carrying out 
                functions relating to emergency preparedness 
                and response in accordance with subsection 
                [(c)(3)] (c)(4).

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 3695 OF TITLE 38, UNITED STATES CODE

Sec. 3695. Limitation on period of assistance under two or more 
                    programs

  (a) The aggregate period for which any person may receive 
assistance under two or more of the provisions of law listed 
below may not exceed 48 months (or the part-time equivalent 
thereof):
          (1) * * *

           *       *       *       *       *       *       *

          (5) Chapters 107, 1606, and [1610] 1611 of title 10.

           *       *       *       *       *       *       *

                              ----------                              

                   SECTION 13 OF THE PEACE CORPS ACT

                        experts and consultants

  Sec. 13. (a) * * *
  (b) Service of an individual as a member of the Council 
authorized to be established by section 12 of this Act or as an 
expert or consultant under subsection (a) of this section shall 
not be considered as employment or holding of office or 
position bringing such individual within the provisions of 
sections 3323(b) and 8344 of title 5, United States Code, 
section 824 of the Foreign Service Act of 1980 or any other law 
limiting the reemployment of retired officers or employees or 
governing the simultaneous receipt of compensation and retired 
pay or annuities[, subject to section 5532 of title 5, United 
States Code].
                              ----------                              

         SECTION 127 OF THE TRADE DEFICIT REVIEW COMMISSION ACT

                    Trade Deficit Review Commission

  Sec. 127. (a) * * *

           *       *       *       *       *       *       *

  (g) Commission Personnel Matters.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Applicability of certain pay [authorities.--
                  [(A) In general.--An individual] 
                authorities.--An individual who is a member of 
                the Commission and is an annuitant or otherwise 
                covered by section 8344 or 8468 of title 5, 
                United States Code, by reason of membership on 
                the Commission is not subject to the provisions 
                of section 8344 or 8468 (whichever is 
                applicable) with respect to such membership.
                  [(B) Uniformed service.--An individual who is 
                a member of the Commission 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, United States Code, 
                with respect to membership on the Commission.]

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 28 OF THE ATOMIC ENERGY ACT OF 1954

  Sec. 28. Appointment of Army, Navy, or Air Force Officers.--
Notwithstanding the provisions of any other law, the officer of 
the Army, Navy, or Air Force serving as Assistant General 
Manager for Military Application shall serve without prejudice 
to his commissioned status as such officer. Any such officer 
serving as Assistant General Manager for Military Application 
shall receive in addition to his pay and allowances, including 
special and incentive pays, for which pay and allowances the 
Commission shall reimburse his service, an amount equal to the 
difference between such pay and allowances, including special 
and incentive pays, and the compensation established for this 
position. Notwithstanding the provisions of any other law, any 
active or retired officer of the Army, Navy, or Air Force may 
serve as Chairman of the Military Liaison Committee without 
prejudice to his active or retired status as such officer. Any 
such active officer serving as Chairman of the Military Liaison 
Committee shall receive, in addition to his pay and allowances, 
including special and incentive pays, an amount equal to the 
difference between such pay and allowances, including special 
and incentive pays, and the compensation fixed for such 
Chairman. Any such retired officer serving as Chairman of the 
Military Liaison Committee shall receive the compensation fixed 
for such Chairman and his retired pay[, subject to section 201 
of the Dual Compensation Act].
                              ----------                              

NATIONAL NUCLEAR SECURITY ADMINISTRATION ACT

           *       *       *       *       *       *       *

               Subtitle A--Establishment and Organization

Sec. 3211. Establishment and mission.
     * * * * * * *
Sec. 3213A. Principal Deputy Administrator.

           *       *       *       *       *       *       *

Subtitle A--Establishment and Organization

           *       *       *       *       *       *       *

SEC. 3212. ADMINISTRATOR FOR NUCLEAR SECURITY.

  (a) * * *

           *       *       *       *       *       *       *

  [(e)] (f) Reorganization Authority.--Except as provided by 
subsections (b) and (c) of section 3291:
          (1) * * *

           *       *       *       *       *       *       *

SEC. 3213A. PRINCIPAL DEPUTY ADMINISTRATOR.

  (a) In General.--(1) There is in the Administration a 
Principal Deputy Administrator, who is appointed by the 
President, by and with the advice and consent of the Senate.
  (2) The Principal Deputy Administrator shall be appointed 
from among persons who--
          (A) have extensive background in national security, 
        organizational management, and appropriate technical 
        fields; and
          (B) are well qualified to manage the nuclear weapons, 
        nonproliferation, and materials disposition programs of 
        the Administration in a manner that advances and 
        protects the national security of the United States.
  (b) Duties.--Subject to the authority, direction, and control 
of the Administrator, the Principal Deputy Administrator shall 
perform such duties and exercise such powers as the 
Administrator may prescribe, including the coordination of 
activities among the elements of the Administration. The 
Principal Deputy Administrator shall act for, and exercise the 
powers of, the Administrator when the Administrator is disabled 
or the position of Administrator is vacant.

           *       *       *       *       *       *       *

SEC. 3214. DEPUTY ADMINISTRATOR FOR DEFENSE PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Relationship to Laboratories and Facilities.--The head 
of each national security laboratory and nuclear weapons 
production facility shall, consistent with applicable 
contractual obligations, report to the Deputy Administrator for 
Defense Programs.]

           *       *       *       *       *       *       *

[SEC. 3245. PROHIBITION ON PAY OF PERSONNEL ENGAGED IN CONCURRENT 
                    SERVICE OR DUTIES INSIDE AND OUTSIDE 
                    ADMINISTRATION.

  [(a) Except as otherwise expressly provided by statute, no 
funds authorized to be appropriated or otherwise made available 
for the Department of Energy may be obligated or utilized to 
pay the basic pay of an officer or employee of the Department 
of Energy who--
          [(1) serves concurrently in a position in the 
        Administration and a position outside the 
        Administration; or
          [(2) performs concurrently the duties of a position 
        in the Administration and the duties of a position 
        outside the Administration.
  [(b) The provision of this section shall take effect 60 days 
after the date of enactment of this section.]
                              ----------                              

   SECTION 5 OF THE MULTINATIONAL FORCE AND OBSERVERS PARTICIPATION 
                               RESOLUTION

                          nonreimbursed costs

  Sec. 5. (a) * * *

           *       *       *       *       *       *       *

  (d)(1) The United States may use contractors to provide 
logistical support to the Multinational Force and Observers 
under this section in lieu of providing such support through a 
logistical support unit comprised of members of the United 
States Armed Forces.
  (2) Notwithstanding subsections (a) and (b) and section 7(b), 
support by a contractor under this subsection may be provided 
without reimbursement, whenever the President determines that 
such action enhances or supports the national security 
interests of the United States.
                              ----------                              

  SECTION 1505 OF THE WEAPONS OF MASS DESTRUCTION CONTROL ACT OF 1992

SEC. 1505. INTERNATIONAL NONPROLIFERATION INITIATIVE.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Quarterly Report.--(1) Not later than 30 days after the 
end of each [quarter of a] fiscal year during which the 
authority of the Secretary of Defense to provide assistance 
under this section is in effect, the Secretary of Defense shall 
transmit to the committees of Congress named in paragraph (2) a 
report of the activities to reduce the proliferation threat 
carried out under this section. Each report shall set forth 
[(for the preceding quarter and cumulatively)] for the 
preceding fiscal year--
          (A) * * *

           *       *       *       *       *       *       *

  (f) Termination of Authority.--The authority of the Secretary 
of Defense to provide assistance under this section terminates 
at the close of fiscal year [2001] 2002.
                              ----------                              

MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL YEAR 2001

           *       *       *       *       *       *       *

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

           *       *       *       *       *       *       *

                            TITLE XXI--ARMY

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.           $39,000,000
Alaska.........................  Fort Richardson..            $3,000,000
Arizona........................  Fort Huachuca....            $4,600,000
Arkansas.......................  Pine Bluff                   $2,750,000
                                  Arsenal.
California.....................  Fort Irwin.......           $31,000,000
                                 Presidio,                    $2,600,000
                                  Monterey.
Georgia........................  Fort Benning.....           $15,800,000
                                 Fort Gordon......            $2,600,000
Hawaii.........................  Pohakoula                   $32,000,000
                                  Training
                                  Facility.
                                 Schofield                   $43,800,000
                                  Barracks.
Kansas.........................  Fort Riley.......           $22,000,000
Kentucky.......................  Fort Knox........              $550,000
Maryland.......................  Fort Meade.......           $19,000,000
Missouri.......................  Fort Leonard Wood         [$65,400,000]
                                                             $69,400,000
New Jersey.....................  Picatinny Arsenal            $5,600,000
New York.......................  Fort Drum........         [$18,000,000]
                                                             $21,000,000
North Carolina.................  Fort Bragg.......          $222,200,000
                                 Sunny Point Army             $2,300,000
                                  Terminal.
Ohio...........................  Columbus.........            $1,832,000
Pennsylvania...................  Carlisle Barracks           $10,500,000
                                 New Cumberland               $3,700,000
                                  Army Depot.
Texas..........................  Fort Bliss.......           $26,000,000
                                 Fort Hood........         [$36,492,000]
                                                             $39,492,000
                                 Red River Army                 $800,000
                                  Depot.
Virginia.......................  Fort Evans.......            $4,450,000
                                                   ---------------------
                                   Total:.........        [$615,974,000]
                                                            $623,074,000
------------------------------------------------------------------------

                                                    

           *       *       *       *       *       *       *
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

  (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2000, for military construction, land acquisition, and military 
family housing functions of the Department of the Army in the 
total amount of [$1,925,344,000] $1,935,744,000, as follows:
          (1) * * *

           *       *       *       *       *       *       *

  (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 variations 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
          (1) * * *
          (2) [$22,600,000] $27,000,000 (the balance of the 
        amount authorized under section 2101(a) for the 
        construction of a Basic Training Complex at Fort 
        Leonard Wood, Missouri);
          (3) [$10,000,000] $13,000,000 (the balance of the 
        amount authorized under section 2101(a) for 
        construction of a Multipurpose Digital Training Range 
        at Fort Hood, Texas);

           *       *       *       *       *       *       *

          (6) [$6,000,000] $9,000,000 (the balance of the 
        amount authorized under section 2101(a) for the 
        construction of a battle simulation center at Fort 
        Drum, New York); and

           *       *       *       *       *       *       *

                         TITLE XXIII--AIR FORCE

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               $3,825,000
                               Base.
Alaska......................  Cape Romanzof.......            $3,900,000
      *         *         *         *         *         *         *
New Jersey..................  McGuire Air Force            [$29,772,000]
                               Base.                         $32,972,000
      *         *         *         *         *         *         *
Wyoming.....................  F.E. Warren Air                $25,720,000
                               Force Base.
                                                   ---------------------
                                Total:............        [$745,755,000]
                                                            $748,955,000
------------------------------------------------------------------------

                                                    

           *       *       *       *       *       *       *
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

  (a) * * *
  (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--
          (1) * * *
          (2) [$9,400,000] $12,600,000 (the balance of the 
        amount authorized under section 2301(a) for the 
        construction of an air freight terminal and base supply 
        complex at McGuire Air Force Base, New Jersey).

           *       *       *       *       *       *       *

                      TITLE XXIV--DEFENSE AGENCIES

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 
2403(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
------------------------------------------------------------------------
Chemical Demilitarization...  Aberdeen Proving                $3,100,000
                               Ground.............
      *         *         *         *         *         *         *
TRICARE Management Activity.  Edwards Air Force              $17,900,000
                               Base, California...
                              Marine Corps Base,           [$14,150,000]
                               Camp Pendleton,               $15,300,000
                               California.........
                              Eglin Air Force                $37,600,000
                               Base, Florida......
                              Fort Drum, New York.            $1,400,000
                              Patrick Air Force               $2,700,000
                               Base, Florida......
                              Tyndall Air Force               $7,700,000
                               Base, Florida......
                              William Beaumont                $4,200,000
                               Medical Center,
                               Texas..............
                                                   ---------------------
                                Total:............        [$256,906,000]
                                                            $258,056,000
------------------------------------------------------------------------

                                                    

           *       *       *       *       *       *       *
Subtitle D--Land Conveyances

           *       *       *       *       *       *       *

Part II--Navy Conveyances

           *       *       *       *       *       *       *

SEC. 2853. LAND CONVEYANCE, NAVAL COMPUTER AND TELECOMMUNICATIONS 
                    STATION, CUTLER, MAINE.

  (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the State of Maine, any 
political subdivision of the State of Maine, or any tax-
supported agency in the State of Maine, any or all right, 
title, and interest of the United States in and to a parcel of 
real property, including any improvements thereon, consisting 
of approximately 263 acres located in Washington County, Maine, 
and known as the Naval Computer and Telecommunications Station, 
Cutler, Maine.

           *       *       *       *       *       *       *

Subtitle E--Other Matters

           *       *       *       *       *       *       *

SEC. 2886. ESTABLISHMENT OF WORLD WAR II MEMORIAL ON GUAM.

  (a) Establishment Required.--The Secretary of Defense shall 
establish on Federal lands near the Fena Caves, and on Federal 
lands near Yigo, in Guam a suitable memorial intended to honor 
those Guamanian civilians who were killed during the occupation 
of Guam during World War II and to commemorate the liberation 
of Guam by the United States Armed Forces in 1944.
  (b) Maintenance of [Memorial] Memorials.--The Secretary of 
Defense shall be responsible for the maintenance of the 
[memorial] memorials established pursuant to subsection (a).
  (c) Consultation.--In designing and building the [memorial] 
memorials and selecting the specific location for the 
[memorial] memorials, the Secretary of Defense shall consult 
with the American Battle Monuments Commission established under 
chapter 21 of title 36, United States Code.

           *       *       *       *       *       *       *

                              ----------                              

MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL YEAR 2000

           *       *       *       *       *       *       *

                            TITLE XXII--NAVY

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
----------------------------------------------------------------------------------------------------------------
                     State                               Installation or location                  Amount
----------------------------------------------------------------------------------------------------------------
Arizona.......................................  Marine Corps Air Station, Yuma............           $17,020,000
                                                Navy Detachment, Camp Navajo..............            $7,560,000
                          *         *         *         *         *         *         *
Hawaii........................................  Camp H.M. Smith...........................         [$86,050,000]
                                                                                                     $89,050,000
                          *         *         *         *         *         *         *
Washington....................................  Naval Ordnance Center Pacific Division                $3,440,000
                                                 Detachment, Port Hadlock.................
                                                Naval Undersea Warfare Center, Keyport....            $6,700,000
                                                Puget Sound Naval Shipyard, Bremerton.....           $15,610,000
                                                Strategic Weapons Facility Pacific,                   $6,300,000
                                                 Bremerton................................
                                                                                           ---------------------
                                                  Total...................................        [$817,230,000]
                                                                                                    $820,230,000
----------------------------------------------------------------------------------------------------------------

                                                                                            

           *       *       *       *       *       *       *
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

  (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1999, for military construction, land acquisition, and military 
family housing functions of the Department of the Navy in the 
total amount of [$2,108,087,000] $2,111,087,000 as follows:
          (1) * * *

           *       *       *       *       *       *       *

  (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--
          (1) * * *

           *       *       *       *       *       *       *

          (3) [$70,180,000] $73,180,000 (the balance of the 
        amount authorized under section 2201(a) for the 
        construction of the Commander-in-Chief Headquarters, 
        Pacific Command, Camp H.M. Smith, Hawaii).

           *       *       *       *       *       *       *

                      TITLE XXIV--DEFENSE AGENCIES

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
----------------------------------------------------------------------------------------------------------------
                    Agency                               Installation or location                  Amount
----------------------------------------------------------------------------------------------------------------
Chemical Demilitarization.....................  Blue Grass Army Depot, Kentucky...........        [$206,800,000]
                                                                                                    $254,030,000
                          *         *         *         *         *         *         *
TRICARE Management Agency.....................  Andrews Air Force Base, Maryland..........            $3,000,000
                                                Cheatham Annex, Virginia..................            $1,650,000
                                                Davis-Monthan Air Force Base, Arizona.....           $10,000,000
                                                Fort Lewis, Washington....................            $5,500,000
                                                Fort Riley, Kansas........................            $6,000,000
                                                Fort Sam Houston, Texas...................            $5,800,000
                                                Fort Wainwright, Alaska...................          $133,000,000
                                                Los Angeles Air Force Base, California....           $13,600,000
                                                Marine Corps Air Station, Cherry Point,               $3,500,000
                                                 North Carolina...........................
                                                Moody Air Force Base, Georgia.............            $1,250,000
                                                Naval Air Station, Jacksonville, Florida..            $3,780,000
                                                Naval Air Station, Norfolk, Virginia......            $4,050,000
                                                Naval Air Station, Patuxent River,                    $4,150,000
                                                 Maryland.................................
                                                Naval Air Station, Pensacola, Florida.....            $4,300,000
                                                Naval Air Station, Whidbey Island,                  [$4,700,000]
                                                 Washington...............................            $6,600,000
                                                Patrick Air Force Base, Florida...........            $1,750,000
                                                Travis Air Force Base, California.........            $7,500,000
                                                Wright-Patterson Air Force Base, Ohio.....            $3,900,000
                                                                                           ---------------------
                                                  Total...................................        [$587,420,000]
                                                                                                    $636,550,000
----------------------------------------------------------------------------------------------------------------

                                                                                            

           *       *       *       *       *       *       *
SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

  (a) * * *
  (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--
          (1) * * *

           *       *       *       *       *       *       *

          (3) [$184,000,000] $231,230,000 (the balance of the 
        amount authorized under section 2401(a) for the 
        construction of a chemical demilitarization facility at 
        Blue Grass Army Depot, Kentucky).

           *       *       *       *       *       *       *

TITLE XXVIII--GENERAL PROVISIONS

           *       *       *       *       *       *       *

                      Subtitle D--Land Conveyances

Part I--Army Conveyances

           *       *       *       *       *       *       *

SEC. 2832. LAND EXCHANGE, ROCK ISLAND ARSENAL, ILLINOIS.

  (a) Conveyance Authorized.--(1) The Secretary of the Army may 
convey to the City of Moline, Illinois (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, 
including improvements thereon, consisting of approximately .3 
acres at the Rock Island Arsenal for the purpose of permitting 
the City to construct a new entrance and exit ramp for the 
bridge that crosses the southeast end of the island containing 
the Arsenal.
  (2) The Secretary may convey to the City all right, title, 
and interest of the United States in and to an additional 
parcel of real property, including improvements thereon, at the 
Rock Island Arsenal consisting of approximately .513 acres.
  (b) Consideration.--(1) As consideration for the conveyance 
under subsection (a)(1), the City shall convey to the Secretary 
all right, title, and interest of the City in and to a parcel 
of real property consisting of approximately .2 acres and 
located in the vicinity of the parcel to be conveyed under 
subsection (a)(1).
  (2) As consideration for the conveyance under subsection 
(a)(2), the City shall convey to the Secretary all right, 
title, and interest of the City in and to a parcel of real 
property consisting of approximately .063 acres and construct 
on the parcel, at the City's expense, a new access ramp to the 
Rock Island Arsenal.

           *       *       *       *       *       *       *

          Subtitle F--Expansion of Arlington National Cemetery

SEC. 2881. TRANSFER FROM NAVY ANNEX, ARLINGTON, VIRGINIA.

  (a) * * *
  (b) Use of Land.--[(1) Subject to paragraph (2), the] The 
Secretary of the Army shall incorporate the Navy Annex property 
transferred under subsection (a) into Arlington National 
Cemetery.
  [(2) The Secretary of Defense may reserve not to exceed 10 
acres of the Navy Annex property (of which not more than six 
acres may be north of the existing Columbia Pike) as a site 
for--
          [(A) a National Military Museum, if such site is 
        recommended for such purpose by the Commission on the 
        National Military Museum established under section 
        2901; and
          [(B) such other memorials that the Secretary of 
        Defense considers compatible with Arlington National 
        Cemetery.]

           *       *       *       *       *       *       *

  [(d) Establishment of Master Plan.--(1) The Secretary of 
Defense shall establish a master plan for the use of the Navy 
Annex property transferred under subsection (a).
  [(2) The master plan shall take into account (A) the report 
submitted by the Secretary of the Army on the expansion of 
Arlington National Cemetery required at page 787 of the Joint 
Explanatory Statement of the Committee of Conference to 
accompany the bill H.R. 3616 of the One Hundred Fifth Congress 
(House Report 105-436 of the 105th Congress), and (B) the 
recommendation (if any) of the Commission on the National 
Military Museum to use a portion of the Navy Annex property as 
the site for the National Military Museum.
  [(3) The master plan shall be established in consultation 
with the National Capital Planning Commission and only after 
coordination with appropriate officials of the Commonwealth of 
Virginia and of the County of Arlington, Virginia, with respect 
to matters pertaining to real property under the jurisdiction 
of those officials located in or adjacent to the Navy Annex 
property, including assessments of the effects on 
transportation, infrastructure, and utilities in that county by 
reason of the proposed uses of the Navy Annex property under 
subsection (b).
  [(4) Not later than 180 days after the date on which the 
Commission on the National Military Museum submits to Congress 
its report under section 2903, the Secretary of Defense shall 
submit to Congress the master plan established under this 
subsection.
  [(e) Implementation of Master Plan.--The Secretary of Defense 
may implement the provisions of the master plan at any time 
after the Secretary submits the master plan to Congress.
  [(f) Legal Description.--In conjunction with the development 
of the master plan required by subsection (d), the Secretary of 
Defense shall determine the exact acreage and legal description 
of the portion of the Navy Annex property reserved under 
subsection (b)(2) and of the portion transferred under 
subsection (a) for incorporation into Arlington National 
Cemetery.]
  [(g)] (d) Reports.--(1) * * *

           *       *       *       *       *       *       *

  [(h)] (e) Deadline.--The Secretary of Defense shall complete 
the transfer of administrative jurisdiction required by 
subsection (a) not later than the earlier of--
          (1) January 1, 2010; or
          (2) the date when the Navy Annex property is no 
        longer required (as determined by the Secretary) for 
        use as temporary office space due to the renovation of 
        the Pentagon.

           *       *       *       *       *       *       *

           TITLE XXIX--COMMISSION ON NATIONAL MILITARY MUSEUM

           *       *       *       *       *       *       *
SEC. 2902. DUTIES OF COMMISSION.

  (a) * * *

           *       *       *       *       *       *       *

  [(d) Requirements for Location on Navy Annex Property.--In 
the case of a recommendation under subsection (c)(1) to 
authorize construction of a national military museum on the 
Navy Annex property authorized for reservation for such purpose 
by section 2871(b), the design of the national military museum 
on such property shall be subject to the following 
requirements:
          [(1) The design shall be prepared in consultation 
        with the Superintendent of Arlington National Cemetery.
          [(2) The design may not provide for access by 
        vehicles to the national military museum through 
        Arlington National Cemetery.]
  (d) Prohibition on Consideration of Arlington Naval Annex.--
The Commission may not consider any portion of the Navy Annex 
property described in section 2881 as a possible site for a 
national military museum.

           *       *       *       *       *       *       *

                              ----------                              

MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL YEAR 1999

           *       *       *       *       *       *       *

                      TITLE XXIV--DEFENSE AGENCIES

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 
2404(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
------------------------------------------------------------------------
Chemical Demilitarization...  Aberdeen Proving            [$186,350,000]
                               Ground, Maryland...          $223,950,000
                              Newport Army Depot,           $191,550,000
                               Indiana............
      *         *         *         *         *         *         *
Special Operations Command..  Eglin Auxiliary                 $7,310,000
                               Field 3, Florida...
                              Eglin Auxiliary                 $2,400,000
                               Field 9, Florida...
                              Fort Campbell,                 $15,000,000
                               Kentucky.
                              MacDill Air Force               $8,400,000
                               Base, Florida......
                              Naval Amphibious                $3,600,000
                               Base, Coronado,
                               California.........
                              Stennis Space                   $5,500,000
                               Center, Mississippi
                                                   ---------------------
                                  Total...........        [$690,016,000]
                                                            $727,616,000
------------------------------------------------------------------------

                                                    

           *       *       *       *       *       *       *
SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

  (a) * * *
  (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 variation 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed--
          (1) * * *

           *       *       *       *       *       *       *

          (3) [$158,000,000] $195,600,000 (the balance of the 
        amount authorized under section 2401(a) for the 
        construction of the Ammunition Demilitarization 
        Facility at Aberdeen Proving Ground, Maryland).

           *       *       *       *       *       *       *

Subtitle D--Land Conveyances

           *       *       *       *       *       *       *

                       PART II--NAVY CONVEYANCES

SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP PENDLETON, 
                    CALIFORNIA.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Limitation on Construction of Roads or Highways.--If a 
State law enacted after January 1, 2001, directly or indirectly 
prohibits or restricts the construction or approval of a road 
or highway within the easement granted under this section, the 
State law shall not be effective with respect to such 
construction or approval.

           *       *       *       *       *       *       *

                              ----------                              

SECTION 2401 OF THE MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL 
                               YEAR 1995

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

  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
----------------------------------------------------------------------------------------------------------------
                    Agency                               Installation or location                  Amount
----------------------------------------------------------------------------------------------------------------

Chemical Agents and Munitions Destruction....  Anniston Army Depot, Alabama...............            $5,000,000
                                               Pine Bluff Arsenal, Arkansas...............        [$154,400,000]
                                                                                                    $177,400,000
                                               Tooele Army Depot, Utah....................            $4,000,000
                                               Umatilla Army Depot, Oregon................          $193,377,000

                          *         *         *         *         *         *         *

----------------------------------------------------------------------------------------------------------------

                              ----------                              

SECTION 2835 OF THE MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL 
                               YEAR 1998

SEC. 2835. LAND CONVEYANCES, FORT DIX, NEW JERSEY.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Reversion.--(1) * * *

           *       *       *       *       *       *       *

  (3) Notwithstanding paragraphs (1) or (2), the Borough and 
Board may exchange between each other, without the consent of 
the Secretary, all or any portion of the property conveyed 
under subsection (a) so long as the property continues to be 
used by the grantees for economic development or educational 
purposes.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 136 OF THE MILITARY CONSTRUCTION APPROPRIATIONS ACT, 2001

  Sec. 136. (a) * * *

           *       *       *       *       *       *       *

  (m) Indemnification of Transferees.--(1) With respect to the 
disposal of real property under subsection (e) at the Base as 
part of the Project, the Secretary shall hold harmless, defend, 
and indemnify in full the Community and other persons and 
entities described in paragraph (2) from and against any suit, 
claim, demand or action, liability, judgment, cost or other fee 
arising out of any claim for personal injury or property damage 
(including death, illness, or loss of or damage to property or 
economic loss) that results from, or is in any manner 
predicated upon, the release or threatened release of any 
hazardous substance, pollutant or contaminant, or petroleum or 
petroleum derivative as a result of Department of Defense 
activities at the Base.
  (2) The persons and entities referred to in paragraph (1) are 
the following:
          (A) The Community (including any officer, agent, or 
        employee of the Community) that acquires ownership or 
        control of any real property at the Base as described 
        in paragraph (1).
          (B) The State of Texas or any political subdivision 
        of the State (including any officer, agent, or employee 
        of the State or political subdivision) that acquires 
        such ownership or control.
          (C) Any other person or entity that acquires such 
        ownership or control.
          (D) Any successor, assignee, transferee, lender, or 
        lessee of a person or entity described in subparagraphs 
        (A) through (C).
  (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.
  (4) No indemnification may be afforded under this subsection 
unless the person or entity making a claim for 
indemnification--
          (A) notifies the Department of Defense in writing 
        within two years after such claim accrues or 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 Department of Defense;
          (B) furnishes to the Department of Defense copies of 
        pertinent papers the entity receives;
          (C) furnishes evidence or proof of any claim, loss, 
        or damage covered by this subsection; and
          (D) provides, upon request by the Department of 
        Defense, access to the records and personnel of the 
        entity for purposes of defending or settling the claim 
        or action.
  (5) In any case in which the Secretary determines that the 
Department of Defense may be required to make indemnification 
payments to a person under this subsection for any suit, claim, 
demand or action, liability, judgment, cost or other fee 
arising out of any claim for personal injury or property damage 
referred to in paragraph (1), the Secretary may settle or 
defend, on behalf of that person, the claim for personal injury 
or property damage. If the person to whom the Department of 
Defense may be required to make indemnification payments does 
not allow the Secretary to settle or defend the claim, the 
person may not be afforded indemnification with respect to that 
claim under this subsection.
  (6) For purposes of paragraph (4)(A), the date on which a 
claim accrues is the date on which the plaintiff knew (or 
reasonably should have known) that the personal injury or 
property damage referred to in paragraph (1) was caused or 
contributed to by the release or threatened release of a 
hazardous substance, pollutant or contaminant, or petroleum or 
petroleum derivative as a result of Department of Defense 
activities at the Base.
  (7) Nothing in this subsection 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)).
  (8) In this subsection, the terms ``facility'', ``hazardous 
substance'', ``release'', and ``pollutant or contaminant'' have 
the meanings given such terms in section 101 of the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980, respectively (42 U.S.C. 9601).
  [(m)] (n) Definitions.--In this section:
          (1) * * *

           *       *       *       *       *       *       *

          (9) The term ``Secretary'' means the Secretary of the 
        Air Force or the Secretary's designee[, who shall be a 
        civilian official of the Department appointed by the 
        President with the advice and consent of the Senate].
          (10) The term ``State'' means the State of Texas.
  [(n) Effective Date.--This section becomes effective 
immediately upon enactment of this Act.]

           *       *       *       *       *       *       *

                              ----------                              

               SECTION 5 OF THE ACT OF SEPTEMBER 2, 1957

                          (PUBLIC LAW 85-258)

AN ACT To direct the Secretary of the Navy or his designee to convey a 
two thousand four hundred seventy-seven and forty-three one-hundredths 
acre tract of land, avigation, and sewer easements in Tarrant and Wise 
 Counties, Texas, situated about twenty miles northwest of the city of 
               Fort Worth, Texas, to the State of Texas.

  Sec. 5. Nothing in this Act shall prevent the State of Texas 
from disposing of or salvaging buildings and improvements now 
located on the land to be conveyed, or leasing, licensing or 
granting easements into and on the lands and improvements, 
except that the exercise of such rights shall not impair the 
use of the lands and improvements for the purpose set forth in 
section 4 of this Act, including preservation of the aviation 
potential of the property and that any revenues derived from 
such disposal, salvaging, leasing, licensing, or granting of 
easements shall be expended solely by the State of Texas for 
the protection, maintenance, and operation of the facility as a 
training center or for the protection, maintenance, and 
operation of other Texas National Guard facilities.

           *       *       *       *       *       *       *

                              ----------                              

OMNIBUS PARKS AND PUBLIC LANDS MANAGEMENT ACT OF 1996

           *       *       *       *       *       *       *

                               DIVISION I

TITLE I--THE PRESIDIO OF SAN FRANCISCO

           *       *       *       *       *       *       *

SEC. 104. DUTIES AND AUTHORITIES OF THE TRUST.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Financial Authorities.--(1) To augment or encourage the 
use of non-Federal funds to finance capital improvements on 
Presidio properties transferred to its jurisdiction, the Trust, 
in addition to its other authorities, shall have the following 
authorities subject to the Federal Credit Reform Act of 1990 (2 
U.S.C. 661 et seq.):
          (A) * * *

           *       *       *       *       *       *       *

          (3) The aggregate amount of obligations issued under 
        [paragraph (3) of] paragraph (2) of this subsection 
        which are outstanding at any one time may not exceed 
        [$50,000,000] $150,000,000.

           *       *       *       *       *       *       *

SEC. 107. AUTHORITY TO LEASE CERTAIN HOUSING UNITS WITHIN THE PRESIDIO.

  (a) Availability of Housing Units for Army Lease.--The Trust 
shall make available for lease, to those persons designated by 
the Secretary of the Army, housing units specified in 
subsection (b).
  (b) Housing Units.--The housing units referred to in this 
section are identified as follows:
          (1) Liggett 715 A&B, 716 A&B, 717 A&B, 718 A&B, 719 
        A&B, and 720 A&B.
          (2) West Washington 1401 A&B, 1403 A&B, and 1405 B.
          (3) Infantry Terrace 340, 341, 342, and 343.
          (4) Wright Loop 1332.
  (c) Replacement of Damaged or Destroyed Housing Units.--In 
the event of significant damage to or destruction of a housing 
unit specified in subsection (b), the Trust shall provide a 
substitute housing unit of equal size and accommodation.
  (d) Lease Amount.--The monthly amount charged by the Trust 
for the lease of a housing unit, including utilities and 
municipal services, under this section shall not exceed the 
monthly rate of the basic allowance for housing that the 
occupant of the housing unit is entitled to receive under 
section 403 of title 37, United States Code. The Department of 
the Army shall have no other fiscal obligations with regard to 
the housing units specified in subsection (b) or housing units 
replaced pursuant to subsection (c).
  (e) Relations to Trust Funding Limitations.--The Trust shall 
comply with this section without regard to the requirement of 
section 105(b) that the Trust achieve financial self-
sufficiency.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 3139 OF THE STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT 
                          FOR FISCAL YEAR 1999

SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.

  (a) * * *

           *       *       *       *       *       *       *

  [(f ) Termination.--(1) The Office shall terminate 5 years 
after the commencement of operations under this section unless 
the Secretary determines that termination on that date would 
disrupt effective management of the Hanford Tank Farm 
operations.
  [(2) The Secretary shall notify, in writing, the committees 
referred to in subsection (d) of a determination under 
paragraph (1).]
  (f) Termination.--(1) The Office shall terminate on the later 
to occur of the following dates:
          (A) September 30, 2010.
          (B) The date on which the Assistant Secretary of 
        Energy for Environmental Management determines, in 
        consultation with the head of the Office, that 
        continuation of the Office is no longer necessary to 
        carry out the responsibilities of the Department of 
        Energy under the Tri-Party Agreement.
  (2) The Assistant Secretary shall notify, in writing, the 
committees referred to in subsection (d) of a determination 
under paragraph (1).
  (3) In this subsection, the term ``Tri-Party Agreement'' 
means the Hanford Federal Facility Agreement and Consent Order 
entered into among the Department of Energy, the Environmental 
Protection Agency, and the State of Washington Department of 
Ecology.

           *       *       *       *       *       *       *

                              ----------                              

MERCHANT MARINE ACT, 1936

           *       *       *       *       *       *       *

TITLE XI--FEDERAL SHIP MORTGAGE INSURANCE

           *       *       *       *       *       *       *

SEC. 1109. DEPOSIT FUND.

  (a) Establishment of Deposit Fund.--There is established in 
the Treasury a deposit fund for purposes of this section. The 
Secretary may, in accordance with an agreement under subsection 
(b), deposit into and hold in the deposit fund cash belonging 
to an obligor to serve as collateral for a guarantee under this 
title made with respect to the obligor.
  (b) Agreement.--
          (1) In general.--The Secretary and an obligor shall 
        enter into a reserve fund or other collateral account 
        agreement to govern the deposit, withdrawal, retention, 
        use, and reinvestment of cash of the obligor held in 
        the deposit fund established by subsection (a).
          (2) Terms.--The agreement shall contain such terms 
        and conditions as are required under this section and 
        such additional terms as are considered by the 
        Secretary to be necessary to protect fully the 
        interests of the United States.
          (3) Security interest of united states.--The 
        agreement shall include terms that grant to the United 
        States a security interest in all amounts deposited 
        into the deposit fund.
  (c) Investment.--The Secretary may invest and reinvest any 
part of the amounts in the deposit fund established by 
subsection (a) in obligations of the United States with such 
maturities as ensure that amounts in the deposit fund will be 
available as required for purposes of agreements under 
subsection (b). Cash balances of the deposit fund in excess of 
current requirements shall be maintained in a form of 
uninvested funds and the Secretary of the Treasury shall pay 
interest on these funds.
  (d) Withdrawals.--
          (1) In general.--The cash deposited into the deposit 
        fund established by subsection (a) may not be withdrawn 
        without the consent of the Secretary.
          (2) Use of income.--Subject to paragraph (3), the 
        Secretary may pay any income earned on cash of an 
        obligor deposited into the deposit fund in accordance 
        with the terms of the agreement with the obligor under 
        subsection (b).
          (3) Retention against default.--The Secretary may 
        retain and offset any or all of the cash of an obligor 
        in the deposit fund, and any income realized thereon, 
        as part of the Secretary's recovery against the obligor 
        in case of a default by the obligor on an obligation.

                     TITLE XII--WAR RISK INSURANCE

  Sec. 1201. As used in this title--
  (a) * * *

           *       *       *       *       *       *       *

  [(c) The term ``war risks'' includes to such extent as the 
Secretary may determine all or any part of those losses which 
are excluded from marine insurance coverage under a ``free of 
capture and seizure'' clause, or analogous clauses.]
  (c) The term ``war risks'' includes to such extent as the 
Secretary may determine--
          (1) all or any part of any loss that is excluded from 
        marine insurance coverage under a ``free of capture or 
        seizure'' clause, or under analogous clauses; and
          (2) other losses from hostile acts, including 
        confiscation, expropriation, nationalization, or 
        deprivation.

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    We all have our own views on specific issues relating to 
ballistic missile defense: the nature and urgency of the 
threat; the technological promise of ballistic missile defense 
(BMD) systems in development; the appropriate level of funding 
for these BMD systems; what changes, if any, to make to the ABM 
Treaty and what to do if such revisions are not agreed to 
mutually by the U.S. and Russia; and other issues as well.
    However, we all question the wisdom of increasing ballistic 
missile defense funding nearly 60 percent when so many other 
defense requirements also need to be addressed. The Service 
Chiefs have identified $32.5 billion in unfunded requirements 
for 2002 alone. The shipbuilding rate is about half of what it 
needs to be to sustain our current naval force. The National 
Guard and Reserve procurement accounts are well funded below 
the level needed to equip them properly. Army readiness is 
still below its objectives. Military housing across the country 
needs to be upgraded and military pay needs to be raised 
higher. The list goes on.
    The Spratt Amendment was offered on behalf of all Democrats 
to shift $985 million--one-third of the proposed $3 billion 
increase and 12% of the total request--from selected ballistic 
missile defense accounts and into items that meet shortfalls 
for the National Guard and Army Reserve, the Navy and Marine 
Corps, the Air Force, and Department of Energy nonproliferation 
programs. The amendment did not affect systems that counter 
theater ballistic missile threats or the ground-based national 
missile defense system, and it provided funding to improve 
flight testing as the Administration requested. The amendment 
thus provided for a $2.0 billion (37.5 percent) increase for 
BMD programs (compared to the Administration's request).
    The amendment did not fund the Administration's request to 
build and station five ``emergency'' interceptors at Ft. Greely 
or its proposal to upgrade the Cobra Dane radar. These requests 
are not related to flight testing, but rather for what appears 
to be pre-deployment operational non-flight testing. Given the 
early stages of development of the ground-based system and the 
controversial nature of deploying a system, we consider the 
request to fund these items premature.
    The amendment also cut $120 million in addition to the $40 
million the majority cut from space-based BMD programs, and 
reduced funding to transform the Navy Theater Wide system into 
a national missile defense system. The ability to sustain these 
efforts beyond 2002 is seriously in doubt, and we believe the 
items we identified to receive the funding cut for BMD are all 
higher priority defense needs.
    We are disappointed the Spratt amendment was not adopted, 
but we hope to continue to work together with the majority in a 
bipartisan fashion during the remainder of the legislative 
process to properly balance the need to defend against 
ballistic missiles with the other pressing funding requirements 
faced by our men and women in uniform.

                                   Ike Skelton.
                                   John Spratt.
                                   Lane Evans.
                                   Silvestre Reyes.
                                   Thomas H. Allen.
                                   John B. Larson.
                                   Loretta Sanchez.
                                   James R. Langevin.
                                   Rick Larsen.
                                   Ellen O. Tauscher.
                                   Robert E. Andrews.
                                   Cynthia A. McKinney.
                                   Adam Smith.
                                   Jim Turner.
                                   Rod R. Blagojevich.
                                   Susan A. Davis.
                                   Solomon P. Ortiz.
                                   James H. Maloney.
                                   Marty Meehan.
                                   Vic Snyder.
                                   Robert A. Brady.
                                   Mike Thompson.
                                   Neil Abercrombie.
                                   Ciro D. Rodriguez.
                                   Baron P. Hill.

                  ADDITIONAL VIEWS OF HON. LANE EVANS

    While I voted for the Committee's mark of the FY02 
Department of Defense Authorization Act, I was severely 
disappointed that the Subcommittee on Military Research and 
Development decided to add $5 million to the EMD phase of the 
155mm Lightweight Howitzer program. Considering the extensive 
mismanagement and technical difficulties this program has 
experienced, it is mystifying why this Committee decided to add 
funding to this program.
    Earlier this year, the bipartisan, Iowa/Illinois Quad 
Cities Congressional delegation called for the termination of 
the program. We called for this after becoming overwhelmingly 
convinced that this program will not result in the type of 
quality weapon that our soldiers will need. The evidence is 
overwhelming. Two consecutive GAO reports have shown that the 
program is over-budget, behind schedule and beset by serious 
technical problems.
    For example, GAO found that all key program milestones have 
slipped except one. The production milestone decision has 
slipped from March 2002 to September 2002. Initial Fielding by 
the USMC has slipped 8 months to July 2004 (28 months after the 
originally envisioned date). The cost of the program has also 
continued to grow. Due to technical problems and changes in the 
contractor overseeing the program, the estimated cost of the 
developmental contract has grown $20.2 million (over 50 
percent) since GAO's first report. The developmental contract 
has almost doubled since the start of the program (from an 
initial $33.5 million target price to a current estimate of 
$65.8 million.) I am especially troubled by this because the 
American taxpayer will pick up the bill for any more cost 
increases in developing the howitzer. This is due to the 
program office restructuring the contract. Under this 
agreement, BAE will only contribute $5 million towards 
development of two pre-production guns. The Committee's action 
will only reward mismanagement.
    However, the biggest challenge of the program continues to 
revolve around technical issues that have not been resolved and 
may not be fixable. Proposed fixes to the three original 
problems found by GAO--insufficient spade size, instability of 
the saddle and faulty titanium welds--remain to be conclusively 
proven effective in live fire testing. Welds have become so 
problematic that BAE is now considering casting titanium parts 
instead of welding them together, a major change in the 
production process and one that may lead to even more problems.
    Unfortunately, the second GAO review found new problems on 
top of these already serious technical challenges. 
Specifically, the spades cracked, could not be properly removed 
from the ground, and didn't always work properly in all soil 
types. In addition, the optical sight continued to break during 
test firings. Problems this extensive should not be found in 
the EMD stage of a major program. It is clearly a system that 
is far from any production milestone decision.
    The best thing we can do for our soldiers and Marines is to 
take the money the committee has added to the program and 
devote it to evaluating alternatives so that we may eventually 
have an answer for the pressing indirect fire-support needs of 
both the Army and the Marine Corps. I plan on offering an 
amendment during floor consideration of the FY02 DOD 
Authorization Act to do just that.

                                                        Lane Evans.

                   ADDITIONAL VIEWS OF HON. TOM ALLEN

                       strategic arms flexibility

    I am pleased that the Committee adopted my amendment to 
endorse the Administration's request for repeal of the 
prohibition on the retirement of the 50 Peacekeeper (MX) 
missiles that are required to be dismantled under the START II 
Treaty. President Bush has called for further reductions in the 
U.S. strategic arsenal and for taking nuclear weapons off high 
alert status. Since this is one aspect of strategic policy 
where there is general bipartisan agreement, we should give the 
Administration the flexibility to implement these goals.
    Even with the positive step the Committee took, I believe 
it is the right policy to repeal the entire provision 
prohibiting retirement of strategic nuclear delivery systems 
(section 1302 of the FY1998 National Defense Authorization 
Act). I am concerned that the President will be prevented from 
implementing his plan to take strategic weapons off high alert 
status with the rest of section 1302 in place. As we approach 
conference, I hope the Committee will discuss with 
Administration officials the budgetary and policy consequences 
of section 1302, given the President's policy statements and 
engagement with the Russians on a potential grand strategic 
agreement.

                            dd-21 destroyer

    I am pleased that the Committee provided $619 million for 
the DD-21 land attack destroyer, and expressed its support for 
moving forward with the program. While I was disappointed that 
the Committee cut the FY2002 budget request by $25 million, I 
note this action was taken by the Committee without prejudice 
for the program itself. The DD-21 was the top ship platform 
mentioned in the Chief of Naval Operation's testimony before 
this Committee. I strongly concur with his statement that ``the 
program is central to our transformational effort, including 
the introduction of the Integrated Power System, the Advanced 
Gun System, multi-function radar, and reduced manning concepts. 
Additionally, the DD-21 is another step toward the creation of 
a more integrated Navy/Marine Corps team. DD-21 will provide 
significantly enhanced fire support for Marines ashore.'' I 
believe the committee recognizes the importance of these 
technologies and the platform itself for future mission and 
fleet requirements. While the cut was explained because of the 
delay in the contact award decision, I understand that the 
program office would be able to execute these funds to make up 
for lost schedule time, in order to keep the program on track 
for planned initial production.

                        national missile defense

    I have previously expressed my views on the various aspects 
of national missile defense, and associate myself with the 
additional views submitted by Mr. Spratt. I take this 
opportunity to comment on the process by which the Committee 
arrived at its endorsement of the Administration proposal. 
Ballistic missile defense, as a concept, was a priority for 
this Administration from the beginning. But we did not get the 
actual defense budget request until just one month before 
committee mark-up. We weren't informed of the Ft. Greely 
deployment plan until three weeks before mark-up. We did not 
get the detailed Ballistic Missile Defense Organization (BMDO) 
budget documents until a couple of weeks before mark-up. 
Traditionally, the Committee has four months to review the 
budget request before it drafts the defense authorization bill. 
With a spending increase of this magnitude, containing several 
new start programs unfamiliar to the Committee, I believe we 
did not have sufficient time to review the BMDO request and 
consider the policy and budget ramifications.
    The Committee held only one hearing on the BMDO budget 
request. Personally, I found that Administration witnesses gave 
general or evasive answers to specific questions. I felt that 
the hearing record provided insufficient details and substance 
for the Committee to make a sound judgment on the massive BMDO 
expansion, and for the public to understand what is being 
proposed. Administration officials repeatedly cited actual and 
hypothetical threats to U.S. troops and allies from short- and 
medium-range missiles to justify the scrapping of the ABM 
Treaty, which does not constrain the development of any missile 
defenses for the cited threats. It's like watching a doctor 
prescribe chemotherapy to treat heart disease.
    In a departure from traditional practice, this Committee 
did not receive any out-year estimates for defense spending in 
the Future Years Defense Plan. Likewise, we were not provided 
with any long-range cost estimates for the BMDO missile defense 
systems. We have no idea if the programs in the BMDO request 
are affordable in the medium or long term. The BMDO increase is 
too big, and too controversial, to merit a rubber stamp.
    Lastly, I question whether it is appropriate for the 
Committee to ratify the radical new BMDO plan, in terms of 
budget, structure and policy, when every other major Pentagon 
decision is being deferred until after the Quadrennial Defense 
Review (QDR) process. Every time a Committee Member asked an 
Defense Department witness about the status of a major program, 
the answer was always: wait until the QDR. The lone exception 
was BMDO. The bill approved by the Committee makes no 
significant changes to any major weapons system, except BMD 
programs. I believe it is premature to approve the 57 percent 
increase for BMDO, given the impact this new initiative will 
have on other Defense Department funding priorities, on our 
national security strategy, and on our international security 
relationships.
    As we move forward with the budget process, I hope that the 
majority and minority can work together to get resolution on 
the many questions that have yet to be answered.

                                                         Tom Allen.

                            DISSENTING VIEWS

    Mr. Chairman, I appreciate the opportunity to comment on 
the National Defense Authorization Act of 2002. I have serious 
reservations with aspects of this bill, in both the funding 
levels and the policy focus. I respectively issue this dissent 
to include these concerns for the record.

                     budget increase and comparison

    The passage of H.R. 2586, the National Defense 
Authorization Act of 2002, by the House Armed Service Committee 
represents a near $33 billion dollar increase from fiscal year 
2001, and provides a total of $343.3 billion in budget 
authority to the Department of Defense for fiscal year 2002. 
For the sake of comparison, the House of Representatives has 
passed an appropriation totaling $7.7 billion for the 
Department of State for fiscal year 2002, and the appropriation 
for Foreign Operations was passed by the House at $15.2 
billion. The sum of these two appropriations--$22.9 billion--
representing the amount allocated to diplomacy, international 
aid and peace by the United States, rises only to seventy 
percent of the defense allocation increase and 6.7 percent of 
the entire defense budget.
    Such a budget level would be appropriate if our nation were 
at war or if it still faced the captive threat of the Cold War. 
However, since neither circumstance exists, budget levels for 
diplomacy and war should be balanced at a more compatible 
level. Moreover, with the financial mismanagement that 
continues to exist within the Department of Defense, increases 
should not be made to many programs until a system of financial 
responsibility is instituted to prevent future overspending, 
fiscal waste and the lack of accountability.

                            missile defense

    The single largest portion of the budget increase is 
dedicated to the development and proliferation of missile 
defense systems.
    The Committee's missile defense program is a carbon copy of 
the Bush administration proposal. It would dramatically 
increase the missile defense budget by $3 billion (57 percent) 
to $8.3 billion. This accelerated missile defense program is 
virtually certain to lead China to increase the number of 
nuclear weapons pointed at U.S. cities and may discourage 
Russia from making deep cuts in its arsenal. This program has 
also had seriously questionable success in operational tests to 
date, and functional operation of any missile defense is still 
in doubt.
    Expensive, high-tech weapons are no substitute for 
effective diplomacy, arms control, disarmament, and 
international cooperation. Cooperative international arms 
control and disarmament agreements will be far more effective 
in advancing peace and security in the years ahead and will 
cost far less than a missile shield.

                           nuclear reductions

    Although both Russia and the U.S. have ratified START II, 
its implementation has become entangled in contradictory 
conditions by the Russian Duma and the U.S. Senate over the 
Anti-Ballistic Missile (ABM) Treaty. I have been encouraged by 
President Bush's proposal to unilaterally reduce the U.S. 
strategic arsenal, beginning with the 50 Peacekeeper (MX) 
missiles, which contain 500 nuclear warheads.
    Unfortunately, current law (Section 1302 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85)) prohibits the President from reducing the nuclear arsenal, 
other than through START II ratification. Current law also 
places unnecessary restrictions on the ability of the President 
to de-alert, or take off high-alert status, our nuclear 
weapons. Currently the U.S. and Russia have over 4,000 nuclear 
weapons aimed at each other--poised to be launched within 
minutes.
    The Committee unfortunately rejected the amendment by Rep. 
Tom Allen to remove the restrictions in Section 1302. It did 
allow a second, narrower amendment to remove the restrictions 
on the MX missile retirements. However, the Committee denied 
the President the ability to negotiate deeper reductions with 
Russia by defeating the first Allen amendment.
    The President, Secretary of Defense Rumsfeld, and the Joint 
Chiefs of Staff have all called for reductions in our strategic 
arsenal. Yet the majority party on our Committee continues to 
cling to these weapons as Cold War relics.
    I was also disappointed that the Committee rejected the 
amendment by Rep. Ellen Tauscher that would have de-alerted the 
nuclear weapons in our arsenal that are already slated for 
retirement. The first President Bush de-alerted thousands of 
nuclear weapons in 1991 as the Warsaw pact disintegrated. The 
current President Bush has also supported the concept of taking 
nuclear weapons off hair-trigger alert. Unfortunately the 
Committee again missed an opportunity to demonstrate leadership 
in reducing the nuclear danger.

                       medical access and gender

    I regret that the Committee did not support changing 
current law to permit service women and female dependents who 
serve or reside overseas to access military hospitals and other 
facilities for the purpose of privately funded abortions. 
Similar women who serve or reside within the United States have 
constitutionally protected right to access to legal and safe 
facilities that provide abortions. Left with no other option 
than to either seek an abortion in a potentially unsafe, 
foreign medical facility or to forgo an abortion altogether, 
this legal provision is tantamount to gender discrimination and 
should be changed. Not only does this threaten the health of 
such women, such a policy is seemingly unconstitutional, and 
further, it threatens retention and recruitment of soldiers. It 
is my hope that this restriction will be corrected upon 
consideration in Committee of the Whole, and I urge the 
designated conferees from the House to support any such 
changes.

                          vieques, puerto rico

    I find it unfortunate that the Committee has sought to 
reduce the likelihood of the Navy's departure from the island 
of Vieques, Puerto Rico and that the Reyes amendment was 
defeated. The people of Vieques were provided last year with 
the opportunity to choose their own fate with regards to the 
Navy range, and through a non-binding referendum on June 29, 
2001, overwhelmingly issued their desire for the Navy to depart 
from their island. The continued bombing erodes the safety, 
environment and economy of this island and its people, and 
should cease. It is my hope that the Administration is 
permitted to proceed with the Navy's planned withdrawal from 
Vieques in 2003, and that the unlikely discovery of another 
``suitable'' alternate site not be held as prerequisite for 
this departure.

                      domestic use of intelligence

    There have been recent revelations about the use of 
military intelligence for domestic issues, specifically with 
respect to the surveillance of Dr. Martin Luther King, Jr. and 
Operation Lantern Spike. Evidence of such past activities give 
rise today to grave constitutional issues and concern about 
civil liberties. The 1975 Report written by the Select 
Committee to Study Governmental Operations with Respect to 
Intelligence Activities revealed practices ``abhorrent in a 
free society.'' The Church Committee, named after its Chairman, 
Frank Church of Idaho, exposed that in the name of state 
security a program of manipulation, infiltration, surveillance, 
harassment, disruption, and murder was carried out with the 
consent of those at the highest levels of the United States 
government and against domestic and international law.
    Proposals supporting the creation of a National Homeland 
Security Agency raise a specter of the return of the most 
egregious aspects of the domestic program that deprived too 
many Americans of their constitutional rights and in some cases 
their lives. The military has an appropriate role in protecting 
the United States from foreign threats, and should remain 
dedicated to preparing for those threats. Domestic uses of the 
military have long been prohibited for good reason, and the 
same should continue to apply to all military functions, 
especially any and all military intelligence and surveillance.

                 international assistance and programs

    The escalating war on drugs that the United States is 
fighting has me increasingly concerned. Though I appreciate a 
reduction of $4 million from the contributions to Peru for 
counter-drug support, the events surrounding the death of 
American missionary Veronica Bowers and her 7-month old 
daughter highlight the role our nation and military play in 
foreign affairs. Though it was private CIA contractors who were 
involved in this specific incident, our military resources are 
being used to train and support foreign nations in their 
efforts to curb drug production and distribution. As with the 
transgressions that resulted from training foreign militaries 
at the School of the Americas, human rights abuses can result 
from the training, arming and empowerment of developing 
nations' armed forces. Further, we should be cautious that such 
activity does not draw our nation into difficult regional 
conflicts, and in light of the apparent failure of the war on 
drugs, the entire concept of military-based drug interdiction 
and it's efficacy should be reconsidered.

                         quality of life issues

    Despite my reservations with this legislation, it includes 
positive aspects that I applaud.
    I would like to commend the Committee, and particularly 
Personnel Subcommittee Chairman McHugh for the increase in 
military pay and salaries. This is an appropriate step that not 
only provides our service men and women with sufficient 
compensation, but also achieves two other important goals: 
furthering the profession of the military and the 
responsibility inherent in the changing roles of the armed 
forces; and increasing the retention of service men and women. 
Similarly, increases in moving allowances, housing 
expenditures, provisions permitting concurrent receipt of 
retired pay and veteran's disability benefits, and efforts to 
protect voting rights of personnel are praiseworthy.
    Many of the nations that we perceive as a threat will 
respond to the expansion and proliferation of missile defense, 
the expanding role of military in drug interdiction, and 
prevention of reductions in nuclear missiles. It is uncertain 
how these nations will respond, but I am confident that 
diplomacy and engagement will have much more positive effects 
on our national security than will our expanding defense 
budget. Similarly, the Department of Defense should be urged to 
respond to the trust that is instilled in it by reforming its 
financial management, reducing the obstruction that has plagued 
its history, and by eschewing involvement in domestic issues. I 
urge the Committee to prudently consider its role in developing 
not only national policy, but also international relations, and 
to realize that as the global leader we have a role not only in 
preparing for war, but also in promoting peace.

                                                  Cynthia McKinney.

                                
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